Stocks are up sharply as BofA raises capital
Stocks rose sharply Wednesday in response to news that the bank raised $13.47 billion through the sale of 1.25 billion shares. Financial stocks again led the market, lifting major stock indicators more than 1 percent and the Dow Jones industrials about 100 points.
The stock sale put Bank of America more than halfway toward raising the $33.9 billion in capital the government is requiring as a result of its stress test of 19 big banks. The company already raised $7.3 billion from the sale of a business in Asia since the government issued its report cards for banks on May 7.
Meanwhile, regional bank Regions Financial Corp. said Wednesday it plans to raise $1.25 billion in capital to meet the government’s requirement.
Getting banks on more stable footing could boost lending and help create a sustained recovery in the economy. Analysts said it is a welcome sign of stability in the stock market that banks have been able to raise capital by selling stock.
In midmorning trading, the Dow rose 102.26, or 1.2 percent, to 8,577.11. The Standard & Poor’s 500 index advanced 13.34, or 1.1 percent, to 921.47, and the Nasdaq composite index rose 25.95, or 1.5 percent, to 1,760.49.
Yesterday’s Top Performing Small Cap Stocks:
UOMO Media Inc. (OTC BB: UOMO) was a top performer moving up over 11% on trading volume of 12,701,659 shares.
UOMO Media Inc., a multi-channel entertainment company, celebrates the success of Terius “The-Dream” Nash’s second album “Love vs. Money”. The album co-produced by Tricky Stewart sold over 200,000 copies in its first two weeks and is quickly approaching Gold status. It debuted at #1 on the ‘Billboard R&B/Rap Album Chart’.
“The-Dream and Tricky Stewart have become the catalyst for change in music,” said Mr. Camara Alford, CEO and Chairman, UOMO Media Inc. “Every track on this album is a potential hit.”
The-Dream and Tricky Stewart of Redzone Entertainment, have worked with top music artists including Rihanna, Usher, Mariah Carey, Madonna, Britney Spears, J. Holiday, Ciara and LL Cool J. In 2008, Redzone Entertainment signed an exclusive international management agreement with UOMO Media Inc.
Merrimac Industries, Inc. (AMEX: MRM) was a top performer moving up over 4% on trading volume of 160,641 shares.
Merrimac Industries, Inc., a leader in the design and manufacture of RF Microwave components, subsystem assemblies and micro-multifunction modules (MMFM®), announced the results for the first quarter of 2009.
Net sales for the first quarter of 2009 increased $1,849,000 or 32.1% to $7,607,000, from the first quarter of 2008 net sales of $5,758,000. Net sales increased due to the higher level of orders received during 2008 resulting in a larger backlog of orders to fulfill in the first quarter of fiscal year 2009 including increased sales of Multi-Mix® products to defense industry related customers.
Chairman and CEO Mason N. Carter commented, “We are clearly executing our new strategy well as reflected in the Financial Highlights. Fiscal year 2009 has begun with a strong first quarter. New orders met our internal targets; operating performance, as measured by our gross profit margin of nearly 45%, exceeded our plan. We anticipate the second quarter to have both strong incoming orders and operating performance.”
Today’s SmallCapVoice.com Hot Stock to Watch:
Mantra Venture Group Ltd. (OTC BB: MVTG)
Mantra, through its group of sustainable energy, carbon reduction and consumer product subsidiaries, is active in the green technology marketplace with an innovative, multi-faceted approach focused on profitability through sustainability. By aggressively seeking out new technologies and innovating solutions for a cleaner earth for everyone, Mantra intends to provide a highly profitable and, more importantly, socially and environmentally responsible investment for its shareholders.
ZAGG Inc. (OTC BB: ZAGG)
ZAGG Inc designs, manufactures, and distributes protective clear coverings and accessories for consumer electronic and hand-held devices, worldwide under the brand names invisibleSHIELDTM and ZAGGaudioTM. The invisibleSHIELD is a protective, high-tech patented film covering, designed for iPods, laptops, cell phones, digital cameras, PDAs, watch faces, GPS systems, gaming devices, and other items. The patent-pending invisibleSHIELD application of clear protective film covering a device is the first scratch protection solution of its kind on the market, and has sold millions of units. Currently, ZAGG offers over 3,000 precision pre-cut designs with a lifetime replacement warranty through online channels, big box retailers like Best Buy, resellers, college bookstores, Mac stores and mall kiosks. The company continues to increase its product lines to offer additional electronic accessories and services to its tech-savvy customer base.
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