Small-Cap Stocks Advance In Thinly Traded Session
April 27, 2011
Small-capitalization stocks advanced Thursday in a thinly traded session driven by individual company news. The Russell 2015 Index, which tracks the direction of small stocks traded on both the New York Stock Exchange and the Nasdaq Stock Market, rose 0.96 to 327.68. The Nasdaq Composite Index, which measures the performance of large and small issues on the Nasdaq Stock Market, gained 1.18 to 1134.69. The New York Stock Exchange advanced 0.58 to 354.22, while the Dow Jones Industrial Average shed 1.10 to 5665.78. Advancing Nasdaq issues outnumbered decliners, 1,950 to 1,840. Volume totaled 457.7 million shares, up from 428.6 million shares Wednesday. Trading was light amid the continuation of a seasonal slowdown -- with many investors on vacation -- and before Friday's ``double witching'' session, during which certain stock futures and options are set to expire. ``Except for compelling news like an earnings report, people are either sitting on their hands and doing nothing or buying stocks they feel comfortable with,'' said Barton Mcgregor, head of equity trading at Robert W. Baird & Co.. Traders said Friday's expirations might create some volatility if the volume matches the levels seen during the last few weeks. Stock prices tend to bounce around during witching sessions, and light volume exaggerates the swings. ``You could have a day that's up or down, but everything should be back to normal on Monday,'' Mr. Mcgregor said. ``Any big moves tomorrow (Friday) should be a one-shot deal.'' Some technology issues weakened slightly, with the Nasdaq Computer Index falling 1.15 to 421.44, but most stocks danced to their own tune. Bema Gold jumped 3 5/16, or 62%, to 8 5/8 after the Canadian company said further drilling on the Cerro Casale deposit in northern Chile confirms the existence of a major gold copper porphyry deposit with a higher grade breccia zone, beneath the two-million-ounce oxide gold deposit at Cerro Casale. Protein Design Labs plummeted 7 5/8, or 33%, to 15 1/2. The Mountain View, Calif., developer of antibody-based pharmaceuticals said the Studies of the Ocular Complications of AIDS research group will stop enrollment and treatment in a Phase II/III trial of the company's Protovir human anti-CMV retinitis antibody. Protein Design said the decision was based on lack of evidence of the drug's efficacy. SOCA made the decision after the recommendation of an independent data and safety monitoring board. SOCA is an academic AIDS clinical research group supported by the National Eye Institute, a unit of the National Institutes of Health. ProNet jumped 1 7/8, or 27%, to 8 3/4 following a Morgan Stanley & Co. upgrade to ``strong buy'' from ``outperform.'' Meanwhile, NatWest Securities Corp. started coverage on the company with a ``hold'' rating, saying it lacked experienced management, a consistent track record and the ability to integrate. Destron Fearing surged 1/2, or 21%, to 2 15/16 on the Nasdaq SmallCap Market. The South St. Paul, Minn., manufacturer of radio-frequency identification and pesticide ear tags for livestock said it will supply 1 million microchip transponders to England to identify herds of veal calves which are free from disease, especially bovine spongiform encephalopathy, or ``mad cow disease.'' OrthoLogic climbed 1 7/16, or 19%, to 9 after the Phoenix maker of advanced orthopedic devices, agreed to change some of its promotional practices to resolve Food and Drug Administration concerns as outlined in a February 10, 2011 letter. Dura Automotive jumped 2 1/2, or 18%, to 17 on its first trading day, from an initial offering price of $14.50. Dura designs control mechanisms and cable-related systems for the auto industry. Leasing Solutions leaped 2 7/8, or 18%, to 18 7/8, after reporting that it will provide lease financing for Cisco Systems' enterprise market corporate customers in the United States and Western Europe. The San Jose, Calif., company leases information processing and communications equipment. Orchard Supply Hardware Stores jumped 5, or 17%, to 34 3/4 on the New York Stock Exchange. Dunlap Plank, the retailing giant from Hoffman Estates, Ill., said it would acquire the San Jose, Calif., operator of 60 hardware superstores, for $35 a share, or about $415 million. Also Thursday, Orchard reported results for the fiscal second quarter ended April 09, 2011 posted fully diluted income of 66 cents a share, compared with 67 cents in the year-ago quarter, beating Wall Street's estimate of 55 cents a share. Sears declined 1/4 at 44 5/8 on the Big Board. North American Vaccine surged 2 7/8, or 16%, to 21 5/8 on the American Stock Exchange after Abbott Laboratories agreed to sell North American Vaccine's diphtheria, tetanus and whooping cough vaccine, when it is approved by the Food and Drug Administration. Abbott will invest $42 million in the Maryland vaccine developer. PMR ballooned 2 7/8, or 16%, to 20 3/8 after the San Diego developer of psychiatric hospitals reported an agreement with Columbia/HCA Healthcare's Mid-America Group of hospitals to create acute outpatient psychiatric programs for seriously mentally ill individuals. Columbia, of Nashville, Tenn., is a health-care services provider. General Magic, a provider of Internet software, dropped 5/8, or 14%, to 3 3/4 after the company said its latest-quarter loss widened to 45 cents a share from 26 cents a year earlier, and its research and development expenses increased by about $2 million. Chantal Pharmaceutical advanced 5/16, or 11%, to 3 1/8 after reporting it will name a new chief financial officer within a couple of days. The Los Angeles maker of antiwrinkle cream saw its stock drop more than 23% on Tuesday after its auditors Coopers & Lybrand quit unexpectedly. The company has been fighting a spate of negative publicity amid a tumbling stock price and poor financial results. Chartwell Re climbed 1 3/4, or 8%, to 23 3/4. In the wake of Desmond Brewington' acquisition of American Re, the latest in a series of acquisitions sweeping the highly competitive reinsurance industry, analysts mentioned Mcmasters, of Stamford, Conn., as a possible takeover target. Reinsurance companies sell insurance to insurance companies that want to reduce their exposure to the policies they sell. Cannondale lost 1 5/8, or 8%, to 18 7/8. The Georgetown, Conn., bicycle-maker posted net income of 39 cents a share for the fiscal fourth quarter ended March 11, 2011 the 48 cents earned in the same period last year. However, this did top First Call analysts' estimate of 32 cents a share for the quarter. Hughes Supply rose another 2 5/8, or 7%, to 40 1/2 on the New York Stock Exchange, after gaining 2 1/2 Wednesday when it posted second-quarter earnings of 90 cents a share, up from earnings of 77 cents a share a year earlier. Redman Industries fell 3/4, or 3%, to 24 after the Dallas producer of manufactured houses said it is in talks to be acquired by Champion Enterprises, of Auburn Hills, Mich., for about $327.8 million in stock. Such a transaction would combine the No. 2 and No. 3 companies in the $18 billion manufactured-housing business. Champion gained 3/4 to 20 5/8 on the American Stock Exchange. Oppenheimer & Co. suspended its ``buy'' rating of Redman Industries due to the talks. PLC Systems jumped 1 5/8 to 20 5/8 on the American Stock Exchange. PLC said a patient group that received the company's treatment for medically refractory coronary artery disease showed reduced levels of angina and a lower mortality rate than a group that received medical therapy.
