Tuesday's Small-Cap Winners & Losers
Small-cap stocks were lumbering upward with the broad market until the Federal Reserve's announcement that a key interest rate will remain unchanged dampened the gains. Among the stalwart soaring names, however, was Spectrum Brands (SPC).
The Atlanta-based maker of Rayovac batteries and other products leapt 17.8% after announcing plans to sell an "attractive strategic asset." The company also predicted a year-over-year improvement in fiscal fourth-quarter earnings before interest, taxes, depreciation and amortization. Despite simultaneously posting a wider-than-expected adjusted loss for the fiscal third quarter, shares traded up 74 cents to $4.89.
The stock helped to prop up both the Russell 2000 and the S&P SmallCap 600, which were respectively climbing 0.6% and 0.5%.
Valassis Communications (VCI) also lent support to the Russell 2000 after private-equity firm Delta Partners reported that it had dramatically upped its stake in the marketing-services firm to 9.1%, or some 4.3 million shares. Delta's prior Valassis ownership had been at 5.2%. Shares of the Livonia, Mich., company leapt 16% to $9.15.And Maryland's CompuDyne (CDCY) surged 27.2% after The Gores Group and Stuart Mackiernan agreed to take it private for $7 a share in cash -- a 32.3% premium to Monday's close. Shares of the security-systems company were up $1.44 at $6.73. Heavily on the downswing, however, was forest-products company Pope & Talbot (POP). Shares gave up 59.5% after the Portland, Ore., firm said it has failed to adhere to one of the covenants in its senior secured credit agreement -- a certain minimum in earnings before interest, taxes, depreciation and amortization. Consequently, it has entered into a six-week forbearance agreement "while it continues to explore options to improve its balance sheet." Shares traded down to 85 cents.
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