A talent management acquisition boosted a tiny holding company stock Tuesday, while some shareholders profited from a fertilizer distribution deal.
Stockhouse U.S. Small and Micro-cap Stock Report for Tuesday, August 26, 2008
TORONTO (SHfn) – A talent management acquisition boosted a tiny holding company stock Tuesday, while some shareholders profited from a fertilizer distribution deal.
Shares of New Century Equity Holdings (OTC:BB: NCEH, Stock Forum) soared 41.2% to 24 cents Tuesday after the company announced that it has executed a definitive agreement to acquire Wilhelmina International and its affiliated companies. Wilhelmina International’s affiliated companies include Wilhelmina Models, Wilhelmina Miami, Wilhelmina Film & TV and Wilhelmina Artist Management. At the closing of the transaction, New Century is expected to change its name to "Wilhelmina International, Inc.". Under the terms of the agreement, New Century will acquire Wilhelmina for $15 million in cash and $15 million in shares of New Century common stock. The transaction is expected to close in the fourth quarter.
Shares of Avatech Solutions (OTC:BB: AVSO, Stock Forum) climbed 14.9% to $1.00 after the professional services company for design and engineering technologies announced preliminary financial results for its fiscal fourth quarter and year ended June 30 Tuesday. For the fourth quarter of fiscal 2008, Avatech says it expects to report total revenue of approximately $11.5 million, compared to $11.5 million in the fourth quarter of fiscal 2007. Preliminary net income increased to $741,000, or three cents per fully diluted share, compared to a net loss of $873,000, or a loss of five cents per fully diluted share in the same period last year, says the company. Avatech plans to release its financial results for the fiscal fourth quarter and year on September 29.
Boston-based Converted Organics (NASDAQ:COIN, Stock Forum) shares climbed 14.2% to $4.10 Tuesday after the company announced that it will work with Gro Group as a manufacturing partner in 2009, supplying its organic granular fertilizer to seven of the company’s major distributors. Gro Group’s major distributors collectively service up to 15,000 lawn and garden retailers throughout the United States, and 90% of the independent lawn and garden retailers in the U.S. and Canada.
Philadelphia-based Radian Guaranty, a provider of mortgage insurance products and services and subsidiary of Radian Group (NYSE:RDN, Stock Forum) announced after market close Monday that the company has increased its field sales force by about 30% to date. Radian Guaranty recently expanded its sales force with the addition of 11 new account managers and also says it has plans for additional growth on both the local and national levels. Shares of Radian Group jumped 14.1% to $3.97 Tuesday afternoon, but by market close had fallen 6.9% to $3.24.
Shares of Kansas-based MGP Ingredients (NASDAQ: MGPI, Stock Forum) fell more than 17% to $4.91 Tuesday after the developer and producer of natural grain-based products reported its fourth quarter results Tuesday. MGP Ingredients recorded a net loss of $9,989,000, or diluted loss of 60 cents per share, for the fourth quarter of fiscal 2008. The loss for the quarter included $1 million net of tax, or six cents per share related to the write-off of fixed assets. This compares with net income of $1,668,000, or 10 cents in diluted earnings per share, for the fourth quarter of fiscal 2007. Total sales in the fourth quarter of fiscal 2008 were $104,227,000, an increase of 3% on the same quarter last year.
