This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Small-Caps Reveal Real State of Economy

Stocks in this article: LSTR STLY SPTN

BOSTON ( TheStreet) -- The largest U.S. companies, including JPMorgan (JPM) and Intel (INTC), are projecting better days ahead, beating analysts' expectations and helping to drive the Dow past 10,000 points for the first time in year.

But small companies, which constitute a majority of the stock market and the economy, are still suffering, suggesting investors ought to temper their bullishness after the Dow surged more than 50% since March. The following are three lesser-known companies whose profits have been decimated by weak demand. As such, they represent a real portrait of corporate America. Each reported after the close of stock-market trading yesterday.

Jacksonville, Florida-based Landstar System (LSTR) is a transportation and logistics company. Third-quarter net income dropped 39% to $20 million and earnings per share fell 37% to 39 cents. Revenue descended 32% to $501 million.

Landstar posted a quarterly operating margin of 6.5% and a net margin of 4%. Chief Executive Officer Henry Gerkens noted that Landstar's revenue "continued to be negatively impacted by the recession in the domestic and global economies." A point of optimism: The number of loads hauled fell 11%, compared with a 16% drop in the second quarter.

Landstar's stock slumped as much as 3.3% today, putting the company in negative territory for 2009.

Stanley Furniture (STLY) fared worse. The Virginia-based company manufactures and sells wood furniture in the upper price range. Its third-quarter net loss widened 45% to $5.1 million, or $1.01 a share, as revenue fell 29% to $38 million. The company endured a gross, operating and net loss.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs