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  • Small Cap Stocks HITK, NOVN, ININ, and AANB Post Significant Gains 0 comments
    Jul 14, 2009 1:52 PM | about stocks: AANB, ININ, NOVN, HITK

    HITK gains 25% on Quarterly and FYE Numbers, NOVN gains 22% on buy-out news and ININ sets a 52-week high.

    Today's release of wholesale and retail numbers sent the uneasy into 'inflationary anxiousness' while the rest of the market shook off the temptation and tried to pull a flat market into the black.

    There was a 1.8 percent jump in the Producer Price Index, which tracks the costs of goods before they reach store shelves. On the retail side, sales of autos and auto parts jumped by 2.3 percent, the best showing since January. Excluding autos, retail sales rose by 0.3 percent in June. The strength in retail outside of autos reflected the big jump in gasoline prices during the month, a rise that pushed sales at gasoline stations up by 5 percent. Excluding gasoline, retail sales would have risen by 0.3 percent last month, just half the overall gain. A gain is a gain.

    As I said, the bulls shrugged off the data, stayed focused, and began the day buying on good news coming out on a number of Small Caps.

    Hi Tech Pharamacl Co. Inc., (HITK) http://www.hitechpharm.com/ trading on the Nasdaq in the $12 range led the way with an early, 25% jump in share price ($2.43) and more than quadrupling its 3-Month average daily trading volume of 67,568 shares to post a new market cap of $137 million.

    HITK reported results today for the quarter and fiscal year ended April 30, 2009. These are some very impressive numbers...

    For the three months ended April 30, 2009, the Company reported net sales of $38.3 million, an increase of 83% from $21.0 million for the same period last year. During the quarter ended April 30, 2009, net sales of generic pharmaceutical products, including the Company's Midlothian division, were $33.3 million, an increase of 95% compared to $17.0 million for the same fiscal 2008 period.

    HITK reported quarterly net income of $5.1 million or $.45 per fully diluted share for the three months ended April 30, 2009, compared to a net income of $0.3 million or $.02 per fully diluted share for the same period in the prior year. Wow. And the fiscal year end numbers were just as strong: For the year ended April 30, 2009, HITK reported net sales of $108.7 million, an increase of 75% from net sales of $62.0 million for the year ended April 30, 2008.

    HITK develops, manufactures, markets, and sells generic, prescription, over-the-counter and nutritional products in liquid and semisolid dosage forms in the United States. If the company can put up numbers like that in a horrible recession and is only trading in the $12 range, I would call this a long-term buy and let the grandkids reap the benefits.

    At $12, HTIK will undoubtedly break its 52-week high today of $12.46 set on 08-04-08 and is far above its 52-week low of $3.46 set on 12-04-08. At $12, it's far above both its 50-day and 200-day moving average. HTIK's shares out versus float ratio is near-parity.

     

    A 3-MONTH CHART ON HTIK

    Another stock taking the market by storm today with an early 22% gain of $3 is Noven Pharmaceuticals (NOVN) http://www.noven.com/ that led pre-market Small Cap trading.

    The volume tells the story here: NOVN's average daily trading volume is 206,895 shares and in early trading today, more than 6,602,297 shares had been traded. The trading propelled the stock to the $16 range and NOVN's market cap is now $410 million.

    NOVN said today that it is being bought out in cash by Japan-based Hisamitsu Pharmaceutical Co. for about $428 million. The tender offer of $16.50 per share marks a 22.4 percent premium to NOVN's closing price of $13.48 Monday.

    NOVN makes a range of transdermal patch-based treatments for attention deficit hyperactivity disorder and hormone therapy. NOVN also focuses on the development of Mesafem, a non-hormonal therapy in Phase 2 clinical studies for the treatment of vasomotor symptoms associated with menopause.

    With a $16.50 tender offer, NOVN's 52-week high of $14.88 set on 07-01-09 has been eclipsed and its 52-week low of $7.54 set on 03-05-09 seems a distant memory. NOVN had trailing twelve month revenues of $144 million and its shares were at parity.

    A 3-MONTH CHART ON NOVN

    It's hard to out-do gains like that, but Interactive Intelleigence (ININ) http://www.inin.com/ trading in the $15 range on the Nasdaq was not to be left behind. Posting preliminary results for its second quarter, ended June 30, 2009, ININ picked up 16% in early trading ($2.14) to set a new market cap of $259 million and more than doubled its 3-Month average daily trading volume of 78,898 shares.

    Yesterday, ININ said it would report total revenues between $32.0 million and $34.0 million, net income between $4.0 million and $4.7 million, and diluted earnings per share between $0.22 and $0.26. That's what sparked the bulls this morning.

    ININ provides software application suites for voice over Internet protocol (VoIP) include: Interactive Intelligence Customer Interaction Center that provides contact centers and enterprises a single platform and a pre-integrated all-in-one application solution for IP telephony to manage phone calls, faxes, e-mails, and Web interactions.

    At $15, ININ will set a new 52-week today surpassing its previous benchmark of $13.85 set on 06-02-09 and sailing far above its 52-week low of $5.51 set on 12-30-08. At $15, ININ is above both its 50-day and 200-day moving average with trailing twelve month revenues of $121 million. I would like to see a few more shares in the float, but it isn't a red flag.

    A 3-MONTH CHART ON ININ

    Finally, a nice gainer today in share value (10% or $0.23) is regional bank Abigal Adams National Bancorp (AANB) http://www.adamsbank.com/ trading in the $2.74 on the Nasdaq with a market cap of $9.5 million. AANB easily surpassed its 3-Month average daily trading volume of 3,685 shares at the open. AANB recently announced that Premier Financial (NASDAQ:PFBI) and AANB have extended their merger agreement completion date to September 30, 2009. The extension will reduce the minimum amount of U.S. Treasury Department's Capital Purchase Program funds required to complete the merger to $20 million.

    AANB operates six full-service branches in the greater metropolitan Washington, D.C., area as well as two branches in Richmond and one branch in Hampton, Virginia.

    At $2.74, AANB is far below its 52-week high of $9.27 set on 08-06-08 and above its 52-week low of $1.30 set on 03-04-09. At $2.74, its right in line with both its 50-day and 200-day moving averages and its shares out versus float ratio is near-parity.

    A 3-MONTH CHART ON AANB

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    Stocks: AANB, ININ, NOVN, HITK
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