Shares of an airline climb on news of a continuing contract, while a health management company jumps after announcing its intention to go private.
Stockhouse U.S. Small and Micro-cap Stock Report for Friday, July 18, 2008
TORONTO (SHfn) – Shares of an airline climb on news of a continuing contract, while a health management company jumps after announcing its intention to go private.
Shares of Memphis-based Pinnacle Airlines Corp. (NASDAQ: PNCL, Stock Forum) jumped 35.3% to $4.90 Friday, after the company reported after market close Thursday that its Pinnacle Airlines, Inc. subsidiary will continue to fly for Delta Air Lines as a Delta Connection carrier under its existing contract, which expires in 2017. Delta previously served notice that it intended to terminate the contract, effective July 31.
Also, shares of Florida-based CareGuide, Inc. (OTCBB:CGDE, Stock Forum), soared 96.7% to 11.8 cents Friday after the health management company announced its intent to cease its public company status as well as a realignment of its executive management team. The company’s board of directors has approved plans to cease the registration of its common stock. In order to deregister its shares, CareGuide will reduce its number of stockholders of record to below 300. To accomplish this, the company says the board of directors approved an amendment to the company's certificate of incorporation to effect a 1-for-100,000 reverse stock split of its common stock.
Minnesota law firm Charles H. Johnson & Associates announced late Thursday afternoon that a class action has been started against California-based IndyMac Bancorp, Inc. (OTO:BB: IDMC, Stock Forum) for “violations of the Employee Retirement Income Security Act of 1974.” The complaint was filed in the U.S. District Court for the Central District of California on behalf of “a class of all persons who were participants in or beneficiaries of the IndyMac Bank, F.S.B. 401(k) Plan between December 31, 2006 and the present and whose accounts included investments in IndyMac common stock”, says the release. The complaint alleges that IndyMac and other administrators of the Plan “may have breached their ERISA mandated fiduciary duties of loyalty and prudence to participants and beneficiaries of the Plan.” Shares of IndyMac Bancorp were up 55.6% Friday to 14 cents.
Citizens Republic Bancorp (NASDAQ: CRBC, Stock Forum) reported results for the second quarter of 2008 late Thursday afternoon, which it says are in line with revised guidance from June. Last month, the company announced a non-cash goodwill impairment charge and a credit writedown that together totaled $220.5 million. Citizens Republic says the net loss of $201.6 million for the three months ended June 30 represents a decrease of $212.7 million from the first quarter net income of $11.1 million. The 30-89 day loan delinquencies at June 30 were essentially unchanged from March 31, says Citizens Republic, while nonperforming assets at June 30 totaled $285.9 million, a decrease of $40.7 million from March 31. Shares of Citizens Republic Bancorp climbed 15.1% to $3.12 Friday.
Shares of online retailer Overstock.com, Inc. (NASDAQ: OSTK, Stock Forum) tumbled 41.1% Friday to $16.31, after the company reported financial results for the second quarter of the year. Overstock.com reported that its total revenue for Q2 was $188.8 million compared with $149.0 million in the second quarter of 2007, with a gross profit of $34.1 million in the second quarter of this year versus $26.3 million in the same quarter last year and gross margins reaching an historical high of 18.1%. The company also reported a net loss for the quarter of $6.5 million or 28 cents loss a share vs. a loss of $13.8 million or 58 cents loss a share in the second quarter of 2007. Overstock.com’s operating loss for Q2 2007 was $13.5 million, including $6.2 million of restructuring, and $6.3 million in Q2 2008.
