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Small Stocks End Lower, Alternative Energy Sectors Down January 16, 2007

Posted by notapundit in Economic News.

NEW YORK (Dow Jones)–Small stocks dipped ahead of the key earnings and inflation data expected later this week.

Shares of alternative energy companies – which offer technology in areas like hydrogen power – were weak as crude futures continued to decline sharply. Among small stocks, Hydrogenics lost 7 cents, or 5.8%, to $1.13; and Ballard Power Systems declined 16 cents, or 2.8%, to 5.59.

Commodity sectors were once again the day’s worst performers. Precious metal stocks dipped as gold and silver futures fell. Coeur d’Alene Mines (NYSE) fell 15 cents, or 3.4%, to 4.30; and Canyon Resources (Amex) lost 3 cents, or 3.7%, to 79 cents.

The Russell 2000 index of small-cap stocks fell 2.76, or 0.35%, to 791.50. The Standard & Poor’s SmallCap 600 index declined 1.15, or 0.29%, to 401.46.

“No one wants to make a move in the event that a market-leading company were to disappoint (on earnings),” said Fred Dickson, chief market strategist at D.A. Davidson.

Smith & Wollensky Restaurant Group surged 2.26, or 45%, to 7.29, the biggest percentage gainer on the Nasdaq. Landry’s Restaurants offered to acquire the New York steakhouse chain for $7.50 a share in cash. Landry’s added 81 cents, or 2.7%, to 31 on the NYSE.

WCI Communities (NYSE) added 1.45 cents, or 6.9%, to 22.47. Financier Carl Icahn said he intends to help the Bonita Spring, Fla., real-estate developer “unlock the inherent value” of its shares. Icahn reported holding a 14.57% stake in WCI and said he acquired his positions believing the shares were “undervalued.”

Real-estate investment trust Mills (NYSE) gained 2.56, or 17%, to 17.77. Israeli real-estate company Gazit-Globe made a revised proposal to buy $500 million of Mills stock at an average price of $21 a share and to contribute another $600 million through a rights offering. Earlier, hedge fund Farallon Partners disclosed that it submitted a proposal to buy $499 million worth of Mills stock from the company at $20 a share.

Steven Madden fell 2.54, or 7.3%, to 32.44. CL King & Associates lowered its rating on the stock to neutral from accumulate and lowered its estimate for the footwear company’s fiscal 2007 earnings to $2.28 a share from $2.34.

Zevex International rose 3.39, or 36%, to 12.76. The Salt Lake City diversified medical systems company agreed to be acquired by Moog, a maker of precision control components, for $13 a share.

Genesis HealthCare gained 8.41, or 16%, to 61.26. The Kennett Square, Pa., provider of long-term health-care services agreed to be acquired for $63 a share by a joint venture between affiliates of private equity concerns Formation Capital and JER Partners.

CEL-SCI (Amex) gained 11 cents, or 19%, to 70 cents. The Food and Drug Administration cleared the launch of a Phase III clinical study designed to show the Vienna, Va., company’s Multikine drug increases the survival of head and neck cancer patients.

Omnova Solutions (NYSE) rose 89 cents, or 19%, to 5.60. The Fairlawn, Ohio, company’s fourth-quarter earnings rose sharply amid higher sales.

By Anjali Cordeiro; Dow Jones Newswires


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