A Closer Look at Tuesday's Big Small Cap Gainers

On Tuesday, the Dow dropped another 0.47% afterwards dropping 1.19% on Monday nevertheless small cap stocks Orbitz Worldwide, eOn Communications Corporation and EntreMed were among the day's big gainers. Exactly, OWW rose 30.68%, EONC rose 29.63% and ENMD rose 18.27%. Still and given that the markets will likely get more turbulent ahead of debt negotiations both in the USA and Europe, will OWW, EONC and ENMD continue to hold their gains or will they start to sink back down to earth when the market opens on Wednesday? Here is a closer look at all three to help you decide whether you should be buying or shorting these small cap stocks:

eOn Communications Corporation is a provider of communications solutions that are built on open architectures just as Voice over Internet Protocol and Service Oriented Architectures. On Tuesday, eOn Communications Corporation rose 29.63% to $2.10 afterwards the company swung into profit. Exactly, eOn Communications Corporation reported that 3Q2011 revenue had increased 57% from $3,535,000 to $5,561,000 thanks to the inclusion of Cortelco Systems Puerto Rico revenue in which EONC had purchased a majority ownership stake in June 9, 2010. EONC's net income as well came in at $131,000 verses a $47,000 net loss for the same period last year. Digging deeper even though, investors should note that Cortelco Systems Puerto Rico is what is making money for eOn Communications Corporation as it other divisions are for all that operating at a loss. Hence, EONC might be a candidate for an investor with a long term time horizon if the company's financials continue to look up.

EntreMed is a clinical-stage pharmaceutical company in other words focused on developing ENMD-2076, an Aurora A and angiogenic kinase inhibitor for the treatment of cancer. On Tuesday, EntreMed rose 18.27% to $2.46 afterwards being on a downtrend since the end of last year. But, EntreMed reported back in May that it had no earnings for 1Q2011, cash and short-term investments of roughly $4.8 million and a net loss of $2.6 million verses $2.1 million for the prior year period. At the end of June even though, EntreMed announced a standby equity distribution agreement with YA Global Master SPV Ltd. where ENMD has the option to sell up to $7.5 million worth of common stock to YA Global. This should keep the company afloat - at least for the moment and like as not until it can get its clinical stage products to market. On the whole, ENMD could be a candidate for a trader to short as so then as a candidate for a long-term investor with significant risk tolerance.

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John Udovich is a paid contributor of the SmallCap Network. John Udovich's personal holdings should be disclosed above. You can as well view SmallCap Network's complete disclaimer and disclosure.

John Udovich is a paid contributor of the SmallCap Network. John Udovich's personal holdings should be disclosed. You can as well view SmallCap Network's complete disclaimer and disclosure.