LGND in WSJ again:
The Wall Street Journal Interactive Edition -- February 12, 1998
Small Cap Stocks Edge Higher
But Lag Rest of the Market
By LARRY BAUMAN
Dow Jones Newswires
NEW YORK -- A late-day rally helped small-capitalization stocks erase
their early losses and post modest gains, although the group still
underperformed the rest of the stock market.
The Russell 2000 Index, which
tracks the direction of small stocks
traded on both the New York Stock
Exchange and the Nasdaq Stock
Market, added 0.38 at 452.40.
The overall Nasdaq market,
however, was moderately higher,
bolstered by the strength of its
large-cap technology stocks. The
Nasdaq Composite Index, which
measures the performance of large
and small issues on the Nasdaq Stock Market, gained 5.79 to 1714.34.
The Dow Jones Industrial Average added 55.05 to 8369.60.
While the Dow Jones Industrial Average posted its third straight all-time
high, the Russell 2000 small-cap index and the Nasdaq Composite Index
continued to struggle their way back to their records set in October. The
Russell 2000 is 12.81, or 2.8% below its Oct. 13 peak, and the Nasdaq
composite stands 31.53, or 1.8% shy of its all-time high.
The slim gains posted by small-cap stocks reflect the tepid performance
put in by the group's two key industry groups: technology and financial
services. The Nasdaq computer index rose 0.3%, and the Nasdaq bank
and nonbank financial indexes each gained 0.1%.
Declining Nasdaq issues edged past advancers 2,098 to 2,076. Volume
was heavy at 767.6 million shares.
Triquint Semiconductor jumped 2 5/8, or 12%, to 24 3/4. The Hillsboro,
Ore., integrated-circuit company reported fourth-quarter earnings that
were below its year-earlier profit, but which matched analysts' projections.
Gehl jumped 2 1/4, or 12%, to 21 1/4. The West Bend, Wis.,
manufacturer of agricultural equipment posted fourth-quarter profit of 43
cents a diluted share, compared with 34 cents in the year-ago quarter.
Ligand Pharmaceuticals rose 1 1/8 to 14 1/2 after a new study found that
its drug Targretin caused a complete regression in 72% of breast-cancer
tumors in rats. The San Diego drug maker said the same study, published
in the current issue of Cancer Research, found that rival drug tamoxifen
resulted in complete regression in 33.3% of tumors in rats. Tamoxifen, the
most widely prescribed breast-cancer therapy, is sold generically under
the brand name Nolvadex.
OAO Technology Solutions pushed higher by 5/8 to 9 1/8. Wheat First
Union raised its rating on the Greenbelt, Md., provider of information
technology services to "buy" from "outperform." OAO Wednesday posted
fourth-quarter earnings of eight cents a share, up from its year-earlier six
cent pro-forma profit.
Pluma, an Eden, N.C., company that makes fleece and jersey activewear,
fell 7/8, or 10.7%, to 7 5/16 on the New York Stock Exchange. Pluma
posted a fourth-quarter loss of 25 cents a share, including charges,
compared with a 45 cent year-earlier profit, and said it expects the
amortization of goodwill related to its FLR and Stardust acquisitions will
be about 21 cents a share, in 1998. J.P. Morgan lowered its rating on
Pluma to "market perform" from "long-term buy."
SyQuest Technology sank 3/4, or 20%, to 2 9/16 on the Nasdaq
SmallCap Market. The Fremont, Calif., maker of removable-cartridge
hard drives reported a loss of 57 cents a diluted share for the first quarter
ended Dec. 31, compared with a loss of 86 cents in the year-ago period.
The company said the recent loss reflects production start-up costs and
higher advertising expenses related to the launch of SyQuest's
one-gigabyte SparQ product.
Casino Data Systems dropped 13/16, or 22%, to 3 1/4. The Las Vegas
developer of slot-accounting and player-tracking information systems
warned it will record a "significant" fourth-quarter charge, and that it is
working toward returning to profitability in 1998. Wall Street analysts'
expected a loss of seven cents a share, compared to a loss of 26 cents in
the year-ago quarter.
Cytyc tumbled 4 13/16, or 18%, to 21 11/16, after a Blue Cross/Blue
Shield cost-effectiveness study said the Marlborough, Mass., company's
cervical-cancer screening test offers only "modest improvements" in
current diagnostic accuracy. Cytyc maintains its test is 55% more
successful in detecting cervical cancer than a traditional pap smear.
Informix climbed 1 15/32, or 20%, to 8 27/32. The Menlo Park, Calif.,
developer of database-management systems posted fourth-quarter net
income of five cents a diluted share, compared with a loss of five cents a
share in the year-ago quarter. Analysts had expected a loss of 16 cents a
share, according to First Call.
Interpore International surrendered 1 13/16, or 22%, to 6 7/16. Interpore
agreed to merge with Cross Medical Products in a stock swap. Also, the
Irvine, Calif., maker of synthetic bone-graft material posted fourth-quarter
net of 25 cents a share, compared with three cents in the year-earlier
quarter. However, before a one-time gain, net income was only four cents
a share. After the news, Stephens Inc. lowered its investment rating on the
stock to "neutral" from "buy." Cross Medical fell 1 1/4, or 13%, to 8 1/2.
SangStat Medical leapt 3 3/8, or 14%, to 28. The Menlo Park, Calif.,
maker of pharmaceuticals received a letter from the Food and Drug
Administration containing a list of questions about the company's
marketing application for its cyclosporine immunosuppressive drug.
Receipt of the letter indicates that the FDA has completed its review of
SangStat's abbreviated drug application, including the company's
responses to questions during the review process. |
