| NEW YORK
NEW YORK Oct 25 Strong earnings and more
merger activity continued to boost small and midcap stocks on
Monday following six consecutive weeks of gains.
A top deal involved Carlyle Group [CYL.UL], which is in
talks to buy midcap CommScope Inc (CTV.N) for about $3 billion
in the latest sign of a resurgence of acquisitions by private
equity firms. For details see [ID:nSGE69O090].
CommScope shares soared more than 30 percent to $30.16.
Pre-Paid Legal Services Inc PPD.N said it was evaluating
a $592 million buyout offer from an unnamed private equity
firm, sending up its shares 11.8 percent to $62.74.
Earnings continued to surpass expectations.
Sohu.com Inc (SOHU.O), up 13.9 percent to $74.93, said its
quarterly profit rose more than analysts had forecast as its
online games continued to be popular among the Internet
portal's target audience. [ID:nSGE69O076].
"Earnings in general have been very favorable," said Ken
Farsalas, portfolio manager at Oberweis Asset Management in
"The performance of the small caps is indicative of (an
overall) strong market."
A. Schulman Inc (SHLM.O) also rose after posting results,
while Sykes Enterprises Inc (SYKE.O) raised its third-quarter
A. Schulman rose 6.9 percent to $22.27 and Sykes jumped
12.3 percent to $16.86.
The S&P MidCap 400 index .MID rose 0.54 percent while the
S&P SmallCap 600 index .SML advanced 0.48 percent. In
comparison, the benchmark S&P 500 .SPX gained 0.21 percent.
On Friday, both small and midcaps notched their sixth
straight week of gains.
Shares of Savient Pharmaceuticals Inc SVNT.O lost half
their value after the company said it is yet to make any
headway on its plan to sell itself.
Its shares dropped 44.4 percent to $12.07.
(Editing by Kenneth Barry)