Thursday's Small-Cap Winners & Losers
Small-cap stocks ultimately got locked in with the two trailing major indices -- the S&P 500 and the Dow Jones Industrial Average -- despite a number of upward-propelling deals and acquisitions.
Michigan's Tecumseh Products (TECUA), for example, catapulted 51.7% on late Tuesday's news it will sell most of its electrical-components business operations to Regal Beloit (RBC) for $220 million in cash. Proceeds are planned for substantial debt payoff; the transaction will probably close in the third quarter.
Tecumseh shares, up $8.17 to $23.97, lent support to the Russell 2000 along with Regal Beloit, which added 2.5% at $48.46 also as a member of the S&P SmallCap 600. Still, both indices spent most of the day underwater and were each virtually flat in recent trading.
Among other small-cap winners, ACR Group (BRR) was soaring after Watsco (WSO) agreed to buy the Houston-based distributor of air conditioning and related equipment for $6.75 a share in cash. Watsco says this is a 42% premium to ACR stock's prior 90-day average closing price. And restaurant operator Champps Entertainment (CMPP) agreed to a $5.60 per-share cash takeout by Fox & Hound Restaurant Group.ACR surged 43.7% to $6.61 as Watsco added 3.4%. Champps, whose deal is worth $74.8 million, jumped 16.6% to $5.40. Meanwhile, Local.com (LOCM) of Irvine, Calif., leapt 26% after media company Hearst Communications reported a 22.4% stake in the search-engine operator, or about 2.7 million shares. The stake newly reflects warrants to purchase around 1.2 million shares, which weren't included in Hearst's April ownership filing because they had replaced old warrants for an identical amount of shares. In a March filing, which reflected the old warrants, Hearst reported 22% ownership in the company. Local.com shares were changing hands at $11.18.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV