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Small Cap Stocks JDA Software (JDAS), Hutchinson Technology (HTCH) Strengthen Tech Sector as Incyte (INCY) and China Sunergy (CSUN) Rally Faithful

|Includes: CSUN, HTCH, INCY, JDA Software Group, Inc. (JDAS)

JDAS Q2 report sets new 52-week high on 6 times normal volume and INCY reaches agreement with the FDA on Phase III trials.

 

JDA Software (NASDAQ:JDAS) released its second quarter numbers today and then Hutchinson Technology (NASDAQ:HTCH) said it would release its numbers on July 30th. That bolstered an already swelling number of tech buyers in early trading as Big Cap earnings began to lift the broad market by 10 a.m. EST.
Caterpillar (NYSE:CAT) came in with better than expected numbers and a hopeful 2009 revenue forecast while Coca-Cola (NYSE:KO) the world's largest beverage maker, posted a 43 percent increase in second-quarter profit. Those numbers, along with two other key factors: yesterday's six straight gain for the Dow and Bernanke telling Congress the stimulus is under control and will not cause inflation released the bulls in all the markets.
Coming off of last weeks Q2 news from China that it's GDP grew over 7 percent, China Sunergy (NASDAQ:CSUN) rallied the faithful to buy and buy and then, on resounding news, Small Cap Incyte (NASDAQ:INCY) boosted the entire pharma sector this morning by saying it had agreed with the FDA on Phase III trials procedures (a major accomplishment in any market).
 
It's all in the numbers...
S&P SmallCap 600 member JDA Software Group Inc., (JDAS) http://www.jda.com/ jumped past 32% ($5.12) in early trading on six times its 3-Month average daily trading volume of 287,794 shares. Now trading in the $21 range, JDAS set a new market cap of $671 million on over 1.7 million shares traded as of this writing.
JDAS reported today that it had $99 million in revenues in the second quarter and had nearly tripled its net income. JDAS had a net income increase of $8.9 million in the second quarter, about 26 cents pre share, compared with just over $3 million in the same quarter of 2008. Revenues were up approximately $8 million for the quarter. At the same time it released its numbers, JDAS also announced the appointment of a new CFO.
JDAS provides software in the U.S., Europe, and Asia that forecasts algorithms and methodologies; allocation, replenishment, and fulfillment solutions for planning and replenishment decision making for order management and execution processes. JDAS' primary customers are in the automotive, consumer goods, life sciences, high tech, and oil and gas businesses. JDAS also serves defense contractors and the travel, transportation, hospitality, and media sectors.
At $21, JDAS has set a new 52-week high and is far above its 52-week low of $9.04 set on 03-04-09. At $21, JDAS is above both its 50-day and 200-day moving averages. JDAS has trailing twelve month revenues of $379 million and its shares out versus float ratio is near-parity.
 
Another S&P SmallCap 600 member bursting out this morning is Hutchinson Technology (HTCH) http://www.htch.com/ now trading on the Nasdaq in the $2.90 range. HTCH picked up 16% ($0.40) in heavy trading of 190,066 shares by mid-morning (HTCH has a 3-Month average daily trading volume of 338,589 shares).
HTCH announced last Friday that it will report fiscal Q3 2009 financial results on Thursday, July 30, 2009, after the close of the market. That has run-up the stock as expectations are high among sentimental owners of the stock.
HTCH was founded in 1965 and is headquartered in Hutchinson, Minnesota. HTCH manufactures suspension assemblies for disk drives and sells its wares primarily in Thailand, Hong Kong, Japan, the United States, and the People's Republic of China.
At $2.90, HTCH is far, far below its 52-week high of $16.30 set on 08-15-08 and is more than double its 52-week low of $1.25 set on 03-04-09. At $2.90, HTCH is above both its 50-day and 200-day moving averages. HTCH has trailing twelve month revenues of $513 million and its shares out versus float ratio is near-parity.
 
Another nice gainer this morning on very good news is Incyte Corp., (INCY) http://www.incyte.com/ now trading on the Nasdaq in the $4.37 range. INCY picked up 9.25% ($0.37) in early trading on 1,600,762 shares traded to set a new market cap of $423 million.
What caused the surge this morning was news from INCY that it had reached an agreement with FDA regulators about how a late stage trial of INCY's myelofibrosis drug candidate INCB18424 will be run.  Myelofibrosis is a bone marrow disease. The agreement between Incyte and the FDA is called a special protocol assessment, and details how a clinical trial will be designed, and what data would prove the drug is effective is the target. The agreement reduces the risks in the regulatory process because it makes it more likely INCB18424 will get FDA approval if it meets its goals in the trial. It's the agreement all Pharma companies want ahead of the actual trial.
INCY also has proprietary, small molecule drugs to treat oncology, inflammation,
and diabetes. And what I really like about this company is its pipeline; please bare with with me, there's a point to all the following inforemation:
INCY has INCB28050, which is in Phase I trial for the treatment of rheumatoid arthritis. INCY also has INCB13739, which is in a Phase IIb clinical trial for the treatment of Type 2 Diabetes; and INCB20817, which is in a Phase I trial for the treatment of Type 2 Diabetes and INCB7839 in Phase IIa clinical trial for the treatment of solid tumors, and Phase II clinical trial for the treatment of breast cancer; INCB19602 in Phase IIa clinical trial for the treatment of Type 2 Diabetes; INCB8696 in Phase I clinical trial for the treatment of multiple sclerosis; INCB9471 in Phase II clinical trial for the treatment of HIV; and INCB15050 in Phase I clinical trial for the treatment of HIV.
As each trail moves forward, the stock will continue to rise and if each is successfully approved, the stock will jump. Buy this stock while it's inexpensive.
At $4.37, INCY is well below its 52-week high of $10.42 set on 08-06-08 and above its 52-week low of $1.85 set on 11-21-09. At $4.37, INCY is above both its 50-day and 200-day moving averages. Its shares out vs. float is near-parity.
 
Finally today, an impressive Small Cap gainer is China Sunergy Company (CSUN) http://www.n-pv.com/ now trading on the Nasdaq in the $4.84 range. CSUN picked up 12% ($0.52) in early trading on 740,772 shares traded. CSUN's 3-Month average daily trade volume is 1,006,450 shares. At $4.84, CSUN's new market cap is $215 million.
CSUN jumped today on the continuing impact the PRRC had on the world last week announcing its Q2 GDP had grown over 7%. While China's solar stocks have dipped over the last month because of downgrades, every stock in the sector has rebounded on the government news.
CSUN makes a specialized solar cell manufactured in Nanjing, China. CSUN will hold its Annual General Meeting on August 25, 2009 at 9:00 a.m. Again expectations run high with sentimental shareholders.
CSUN manufactures solar cells from silicon wafers utilizing crystalline silicon solar cell technology to convert sunlight directly into electricity through a process, known as the photovoltaic effect. CSUN sells solar cell products to Chinese and overseas module manufacturers and system integrators, who assemble its solar cells into solar modules and solar power systems for use in various markets.
At $4.84, CSUN is far below its 52-week high of $12.31 set on 08-25-08 and well above its 52-week low of $1.33 set on 11-21-08. At $4.84 CSUN is above both its 50-day and 200-day moving averages with trailing twelve month revenues of $310 million.
One thing in particular that I like about CSUN is that in its most recent quarter, it had $94 million in cash on hand and its total debt was only $138 million. That's a very reassuring comfort zone.