Monday's Small-Cap Winners & Losers
Updated from 2:25 p.m. EDT with new stock prices
On a Monday marred by liquidity concerns in the financial sector, small-cap stocks took a pummeling along with the broader market. The Russell 2000 lost 1.9% to 650.52, and the S&P SmallCap 600 dropped 1.7% to 347.24.
Shares of Tempur-Pedic (TPX) sagged to new lows on revised first-quarter guidance based on a "challenging economic environment." In a press release, CEO Thomas Byrant expressed his belief that "the U.S. mattress industry is experiencing an unprecedented slowdown." The company expects domestic net sales to decrease by a percentage in the high teens and international sales to increase by a high single-digit percentage. The stock fell 37.8% to $10.49. Fellow small-cap bedmaker Select Comfort (SCSS) also hit a new 52-week low, falling 7.7% to $3.50.
Fort Lauderdale, Fla.-based Universal Insurance (UVE) tumbled 33.8% to $3.97 after reporting fourth-quarter income of $10.3 million, or 24 cents a share, vs. $8.1 million, or 20 cents a share, a year ago. However, gross premiums written decreased 17% year over year to $117.4 million.
Bear Stearns (BSC), formerly one of the Street's largest brokerage firms, became a small-cap company this week after liquidity concerns hammered it, forcing the company to agree Sunday to sell itself to JPMorgan Chase (JPM) for $2 a share. Shares were down 84% to $4.81. On the winning side, BladeLogic (BLOG) jumped 16% to $27.39 on news that BMC Software (BMC) will buy the Houston software company for $800 million, or $28 a share. In another merger-related pop, Iomega (IOM), a maker of portable data storage products, saw shares climb 11.7% to $3.64 after receiving an unsolicited bid of up to $3.75 a share from EMC (EMC). Finally, I-trax (DMX), a provider of integrated workplace medical, pharmacy, wellness and disease management services, rocketed up 34.1% to $5.23. Walgreen (WAG) is buying the Chadds Ford, Pa.-based company for $278 million, or $5.40 a share.Select the service that is right for you!
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