Pinnacle Data Systems (AMEX: PNS), Altair Nanotechnologies (NASDAQ: ALTI) and Summit Financial Group (NASDAQ: SMMF) were among the very few small cap stocks that topped the big boards for gains, Specifically, PNS rose 70.78%, ALTI rose 32% and SMMF rose 32.95%. However, investors should remember that soaring stocks, especially if they are small cap stocks, can just as easily come back down to earth if there is no real justification for the sudden rise in share price. Hence, here is a closer look at PNS, ALTI and SMMF to help you decide on an investing strategy:
Pinnacle Data Systems (AMEX: PNS) Inks an Agreement With IBM
Pinnacle Data Systems is a global provider of services and products for original equipment manufacturers (OEMs) of computer hardware products as well as products that contain computer hardware. On Tuesday, Pinnacle Data Systems announced that it had entered into an Original Equipment Manufacturer (OEM) agreement with IBM giving the company the ability to design and sell products that are based upon IBM’s System p and System x technologies. Hence and on Tuesday, Pinnacle Data Systems rose 70.78% to $2.35 (PNS has a 52 week trading range of $0.95 to $3.45 a share). However, investors should also note that Pinnacle Data Systems has an earnings call scheduled for Thursday, July 28, 2011 and last quarter, it had reported a slight rise in both revenue and net income.
Altair Nanotechnologies (NASDAQ: ALTI) Closes Its Share Agreement With Canon
Altair Nanotechnologies develops, manufactures and sells nano lithium titanate battery products as well as provides related design, installation and testing services. ALTI is primarily focused on marketing large-scale energy storage solutions to both power companies and electric grid operators around the world. On Monday, Altair Nanotechnologies announced that it had closed a Share Subscription Agreement with Canon Investment Holdings Limited via an affiliate, Energy Storage Technology (China) Group Limited (EST). According to the terms of the agreement, Altair Nanotechnologies issued 37,036,807 shares at $1.5528 per share to raise $57.5 million. On Tuesday, Altair Nanotechnologies rose 32% to $1.65 (ALTI has a 52 week trading range of $0.72 to $3.32 a share). However, investors should note that the entire battery sector has been thoroughly beaten up by the market. In the case of Altair Nanotechnologies, it reported a 1Q2011 revenue increase of 114% to $2.6 million and a net loss of $5.9 million verses $6.1 million for 1Q2010 – not the most exciting financial results for investors.
Summit Financial Group (NASDAQ: SMMF) Is Up But It Still Needs to Finish Cleaning Up Its Loan Portfolio
Summit Financial Group is a financial holding company providing community banking services in the Eastern Panhandle and South Central regions of West Virginia and the Northern region of Virginia. I am not seeing any news to immediately explain why on Tuesday, Summit Financial Group rose 32.95% to $3.51 (SMMF has a 52 week trading range of $2.48 to $5 a share) on a trading volume of 17,096 verses an average trading volume of 2,393. For 1 Q2011, Summit Financial Group had reported a net loss of $322,000 verses 1Q2010 net income of $46,000. SMMF also noted that it was working to reduce its portfolio of nonperforming assets – which was cited as the principal factor contributing to their lack of profits.
The Bottom Line. Depending upon how its earnings call goes on Thursday, PNS could be an interesting stock for long term investors to take a closer look at while ALTI and SMMF are probably better suited for more risk tolerant investors.
Source:http://www.smallcapnetwork.com/PNS-ALTI-and-SMMF-Tuesday-s-Big-Small-Cap-Gainers/s/via/3414/article/view/p/mid/1/id/106/
