Four small caps on the move
Today's Financial News - Posted July 9, 2009
The overall markets may not be moving much today, but that has not stopped a handful of small caps from handing their investors big gains. If you are a fan of penny stocks, you don’t want to miss out on these four companies.
By Andrew Snyder, TodaysFinancialNews.com
Baltimore – (TFN): Thanks to diverging economic data, the equities market is treading water today.
While Washington slowly methodically leaks its thoughts on yet another stimulus package and tests the political waters, a dip in unemployment claims and Alcoa’s (NYSE:AA) better-than-expected results are fighting against news that retail sales were worse than expected last month.
Although, the major indices are unmoved so far today, there are plenty of companies making their investors piles of money.
Here are four small caps on the move:
YRC Worldwide (NYSE:YRCW) is up by double-digit proportions thanks to word the company has made a deal with the Teamsters.
This time yesterday, the Street was preparing for a potential bankruptcy filing, slashing share price down to less than a buck a share. But now that word has spread of a tentative deal, bankruptcy looks much less likely, allowing buyers to bid share price up to an intraday high of $1.97.
This is fantastic news for TFN Strategic Trader subscribers, as YRC is currently in our portfolio as a covered call position. It looks like we will be taking another round of profits on this one.
DRI Corporation (NASDAQ:TBUS) is up by more than 15% on news that the transportation information-technology provider scored a $6 million contract with several bus manufacturers in India.
For a company with a market value of just $17 million and total sales in 2008 of just $70.5 million, word of the contract is eagerly welcomed by the Street.
Potentially even more important was the news that the company is expecting its Q2 2009 results to be higher than the same period last year. That means investors can expect revenues of over $17 million.
With huge amounts of money spent on “green” initiatives across the globe, DRI’s products will remain in high demand.
Sino-Global Shipping America (NASDAQ:SINO) is showing its investors gains of close to 20% today as Wall Street learns China’s growth is expected to be stronger than expected over the next twelve months.
The New York-based company specializes in port services for the tankers and freighters entering China’s dozens of ports. As the country’s economy gets back on track and demand for Sino’s services improve, the company’s shareholders will continue to benefit.
Even as shares of the tiny $8 million company climb towards the $3 level, there is room left to climb. This time last year, investors were willing to pay $10 per share of the company.
VirtualScopics (NASDAQ:VSCP) rounds out our list. After all, what list of small-cap winners would be complete without at least one tiny biotech making the team?
Shares of the company were up by as much as 17% during the session thanks to yesterday’s news the company recorded record revenues of $2.5 million.
Even though the figure would be considered merely a day’s worth of interest payments for the big boys of Wall Street, the number represented a surge of more than 45% over the same period last year for the $27 million company.
As the maker of biomarker solutions for the nation’s healthcare industry, VirtualScopics is in the midst of a risky, but ever-changing industry. What could be a record-breaking report could be a paltry sum this time next year.
While the markets continue to await more telling economic data and earnings reports, the small-cap sector refuses to sit around and wait.
Like usual, some of the biggest profit opportunities are erupting from the nation’s smallest publicly traded companies.
Next Article: The debate is over. China wins!
Be the first to leave a reply.
Your comments are welcome
Follow TFN via RSS or Twitter |
 |
 |
 |
Advertisement
Latest Headlines
- The Big Picture for Sinobiopharma, Inc. (SNBP)
- Beazer Homes USA, Inc. (BZH) and Hovnanian Enterprises, Inc. (HOV) up despite horrid housing news
- The FDA catalyst: 2010 moves in MannKind (MNKD), Roche Holding (RHHBY), Acorda Therapeutics (ACOR) show it still works!
- Steepest drop since Feb. 2009: Here we go again!
- Is the silver run over? Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Alto Group (ALTO), Hecla Mining (HL), Endeavour Silver (EXK) close down