March 2007
March 30, 2007 –
Warned u on TGEN at $4.75 yesterday now $3.75, Warning stay away from USNA $46.77
March 30, 2007 –
USNA a strong short opinion video #2
http://www.youtube.com/watch?v=nUw-UbtORxc
March 30, 2007 –
FDI puts out video on Youtube about USNA
http://www.youtube.com/watch?v=OYB_E3n9q3U
March 30, 2007 –
Strong Short on USNA
http://www.frauddiscovery.net/
March 30, 2007 –
8:42 am Rio Narcea Target Upped To C$5.50 From C$4.25: At Haywood - Dow Jones Newswires
Rio Narcea Tgt Upped To C$5.25 From C$4.75 At UBS - Dow Jones Newswires
Rio Narcea Target Upped To C$5.40 From C$3.70: At BMO - Dow Jones Newswires
March 30, 2007 –
U.S. Farmers Plan Biggest Corn Plantings Since 1944, USDA Says
By Jeff Wilson
March 30 (Bloomberg) -- U.S. farmers will sow the most acres of corn since World War II and cut soybean plantings after record ethanol production boosted corn prices to a 10-year high, a government survey showed.
Corn acres will rise 15 percent from last year to 90.454 million, the most since 1944, the U.S. Department of Agriculture said today in its annual spring-plantings report. Soybean acres may fall 11 percent to 67.14 million, an 11-year low. Analysts in a Bloomberg News survey expected a 12 percent increase in corn acreage and an 8.4 percent drop in soybean plantings.
Farmers are shifting more acres to corn, the biggest U.S. crop, because the net profit per acre will exceed soybeans by about $150, said Jim Stephens, president of Farmers National Commodities Inc., an Omaha, Nebraska-based company with more than 1.1 million acres under management in 20 states.
``Economics dictated plans for the massive shift to corn but now we have to worry about weather'' for final planting decisions, Stephens said before the report. ``Saying you want to plant more acres is very different than actually planting the seed.''
Farmers Surveyed
The USDA report, released in Washington, is based on a survey of the planting intentions of more than 86,000 farmers during the first two weeks of March. Changes in weather, prices or demand may prompt farmers to alter their plans. Updated acreage numbers are scheduled to be issued June 29.
U.S. farmers harvested 10.535 billion bushels of corn last year, the third-largest crop ever, after planting 78.3 million acres. Soybean production rose 4.1 percent to a record 3.188 billion bushels in 2006 compared with 3.063 billion in 2005. The U.S. is the biggest producer and exporter of both crops.
For corn, ``expected acreage is up in nearly all states as high corn price are encouraging farmers to plant more acres,'' the USDA said in the report.
Corn for May delivery rose 6 cents, or 1.5 percent, to $3.945 a bushel yesterday on the Chicago Board. Futures have gained 76 percent in the past year, reaching a 10-year high of $4.5025 on Feb. 22 because of record demand to produce ethanol.
May soybeans rose 7.5 cents to $7.7825 a bushel, up 34 percent in the past year on expectations that farmers will plant corn where they normally sow soybeans.
Record Corn Harvest Likely
The increased acreage signals this year's corn harvest will likely rise to a record, topping the prior peak of 11.8 billion bushels in 2004, analysts said. The USDA on March 2 forecast that demand for corn will rise 4.8 percent to 12.325 billion bushels in the marketing year that begins Sept. 1 compared with 11.76 billion this year, as ethanol consumes more of the harvest.
About 20 percent of last year's crop will be used to produce ethanol in the market year that ends Aug. 31, the USDA predicts.
Ample supplies of corn will improve livestock and poultry feeding margins for Tyson Foods Inc. and Smithfield Foods Inc., the two largest U.S. meat producers. Cargill Inc., Archer Daniels Midland Co. and other processors who use corn to make animal feed, fuel additives and sweeteners also will benefit from increased inventories.
Warm, dry weather in April is needed for the corn crop to be planted before May 10 in the Midwest to avoid yield losses from heat in July and August and possible freezing temperatures in September.
``The weather will trump the acreage report because it will determine the ultimate size of the crop,'' said Thomas Uhlmann, a floor broker for Goldenberg Hehmeyer & Co. in Chicago. ``We are still in spring training -- now the weather season begins.''
Wheat
Corn acreage is also rising in parts of the U.S. that usually plant wheat, rice and other grain and oilseed crops, the USDA said.
Farmers said they would reduce spring wheat acreage 7.3 percent to 13.81 million acres from 14.9 million last year. The durum wheat acreage projection is up 6.4 percent to 1.99 million acres from 1.87 million last year.
Wheat of all varieties will take up 60.3 million acres, up 5.2 percent from 57.344 million last year when seedings were the second lowest since 1972. The acreage includes 44.51 million acres seeded with winter wheat seeded in October and November.
Wheat for May delivery yesterday rose 4.5 cents, or 1 percent, to $4.61 a bushel in Chicago. Prices have fallen 17 percent since reaching a 10-year high in October partly because of increased planting of winter wheat in the U.S. and in other nations across the Northern Hemisphere.
Farmers told the USDA they also plan to boost seedings of sorghum, a feed grain that can substitute for corn in livestock feed rations and ethanol production. Acreage may rise 9 percent to 7.109 million from 6.522 million last year, the second lowest after plantings dropped to 6.454 in 2005.
Rice plantings may fall 6.8 percent to 2.644 million from 2.838 million acres last year and the lowest since 1987, the report said.
Oat acreage may fall to 4.029 million, a record low, from 4.168 million seeded last year, the USDA said.
The U.S. corn crop was valued at a record $33.8 billion in 2006, with soybeans in second place, at $19.7 billion, government figures show. Wheat is the fourth-biggest crop, behind hay, with a value of $7.7 billion.
To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net .
Last Updated: March 30, 2007 08:30 EDT [more]
March 29, 2007 –
the eps profit it shows is a one time gain from debt restructing $2.58M Quarter ended Year-to-date ended
December 31, December 31,
Statement of Operations ------------------------ ------------------------
Information: 2006 2005 2006 2005
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue:
Collaborative
agreements $ 4,008 $ 1,944 $ 9,864 $ 6,874
----------- ----------- ----------- -----------
Total revenue 4,008 1,944 9,864 6,874
Operating expenses:
Research &
development 3,999 4,199 14,482 18,199
General &
administrative 1,646 1,278 6,382 6,313
Restructure charges 188 183 2,006 1,709
Goodwill impairment
charge - - 23,723 -
----------- ----------- ----------- -----------
Total expenses 5,833 5,660 46,593 26,221
----------- ----------- ----------- -----------
Loss from operations (1,825) (3,716) (36,729) (19,347)
Gain in debt restructure 2,583 - 2,583 -
Investment income 99 279 567 661
Interest expense (49) (112) (411) (512)
----------- ----------- ----------- -----------
Net loss $ 808 $ (3,549) $ (33,990) $ (19,198)
=========== =========== =========== ===========
Net loss per common
share $ 0.08 $ (0.41) $ (3.47) $ (2.24)
=========== [more]
March 29, 2007 –
and RNO lol is selling at dirtcheap price of $4+ with a top forward estimate of .75 EPS, many metal fundmamnagers are just missing the boat with RNO and will be chasing it later. [more]
March 29, 2007 –
"CPO & RNO" My Top Stock Picks for April
March 29, 2007 –
CPO - Upgraded to Strong Buy at Davenport
RNO - reports Blowout earnings of .29 EPS for 4th qtr, nearly doubles estimates of .15 eps.
INSU - Selling its low profit margin tunneling business = Higher Profit Margin business will remain and the company will be more profitable because of it.
Insituform Technologies, Inc. Announces Closure Plans For Its Tunneling Business; Company Will Seek Buyers for Business and Assets; Charges Will Affect 2007 Results
Thursday March 29, 8:03 am ET
CHESTERFIELD, Mo.--(BUSINESS WIRE)--Insituform Technologies, Inc. (Nasdaq Global Select Market: INSU) today announced that its Board of Directors has approved the Company's plan to exit the tunneling business in an effort to improve the Company's overall financial performance and to better align the Company's operations with its long-term strategic initiatives. Insituform will not bid on any new tunneling projects and expects to complete work on its existing contracts by mid-2008. Insituform will seek a buyer or buyers for its tunneling business and associated assets.
As a result of the tunneling business exit, Insituform will recognize cash and non-cash pre-tax charges of up to approximately $21 million, with a majority of the charges to be recognized in the first half of 2007. The Company expects a liquidation value of as much as $20 million in cash from the disposal of the business and its assets, including working capital.
"During the last four years we have transformed Insituform into a leaner company with an improved cost structure, a sharper strategic focus and significantly better financial results. We regard our decision to exit the tunneling business at this time as one of the last steps in this transformation process," said Thomas S. Rooney Jr., President and Chief Executive Officer. "While we have remained committed to the turnaround of this operation to this point, the tunneling business is not a core business segment for us and continues to report losses despite its improved performance. Exiting this business segment at this time will enable us to increase our focus on our core business of rehabilitation, particularly in light of the current U.S. rehabilitation market issues. We expect to be able to use cash garnered from the liquidation of the tunneling assets and the ongoing cash collected from projects as they are completed to make strategic investments and to grow our core business more quickly."
Tunneling projects typically involve the construction of man-entry sized pipelines with access through vertical shafts. From the vertical shaft a tunnel is constructed using a steerable, locally controlled tunnel boring machine. Pipe is typically installed after the tunnel is constructed. As of February 28, 2007, the tunneling contract backlog remaining to be completed was approximately $66 million.
On March 26, the tunneling operation was awarded a $65 million tunneling project in Milwaukee, Wisconsin. Given the decision to close the business, management will work with the project owner to seek to either rescind the award or have the ability to sell or assign the contract. However, the Company is prepared to move forward to complete this project in a timely manner in the event an accommodation cannot be reached with the project owner. The project is expected to be completed by late 2009 or early 2010.
"We want to assure our existing tunneling customers that we intend to fulfill all contractual obligations and responsibilities associated with our customers, partners and vendors as we wind down this business. Most of these projects will be completed this year and all will be completed by mid-year 2008," Rooney said.
In the first quarter of 2007, Insituform will recognize a pre-tax, non-cash charge of approximately $9 million, $5.8 million after-tax, or $0.21 per diluted share, to reflect the impairment of goodwill and intangible assets. The Company will also incur additional non-cash impairment charges for equipment and other assets of up to approximately $4.0 million on a pre-tax basis ($2.6 million on an after-tax basis; $0.09 per diluted share) which will be recorded in the first and second quarters of 2007, as the plans for disposal become more readily estimable.
In addition, Insituform will incur cash charges to exit the business of up to approximately $8 million on a pre-tax basis, $5.2 million after-tax, or $0.18 per share, which will include property, equipment and vehicle lease termination and buyout costs, employee termination benefits and retention incentives, among other ancillary shut-down expenses. These costs will be recorded as incurred, in accordance with generally accepted accounting principles ("GAAP").
As of the date of this release, the Company has completed amendments of its bank and Senior Note facilities to exclude the non-recurring charges from maintenance covenants in the current fiscal year. Therefore, the Company expects to be in compliance with all covenants as required under existing lending arrangements.
Other assets, including recorded contract claims with customers, are expected to be liquidated during the wind-down period by the end of 2008.
In accordance with GAAP, this business will not be presented as a discontinued operation for financial reporting purposes until substantially all exit and disposal activities have been completed.
This news release contains various forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) that are based on information currently available to the management of Insituform Technologies, Inc. and on management's beliefs and assumptions. When used in this document, the words anticipate, estimate, believe, plan, and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Such statements are subject to risks and uncertainties and include among others, our belief with respect to the accuracy of our current estimates of aggregate fair value of the tunneling segment's fixed assets that will be realizable in sales transactions, the accuracy of our current projections of the cash costs of lease termination or buyout payments, employee retention incentives and severance benefits and other shutdown expenses, our ability to complete the tunneling segment's existing contracts on a timely and profitable basis, our ability to redeploy net value of the tunneling segment's fixed assets into our rehabilitation and Tite Liner® business segments on an efficient and profitable basis, and other factors set forth in reports and other documents filed by us with the Securities and Exchange Commission from time to time. We do not assume a duty to update forward-looking statements. Please use caution and do not place reliance on forward-looking statements.
Contact:
Insituform Technologies, Inc., Chesterfield
David A. Martin, 636-530-8000
Vice President and Controller
Source: Insituform Technologies, Inc. [more]
March 28, 2007 –
Good news for CPO corn products processor - Citigroup Expects Corn
Prices to Drop
Wednesday March 28, 12:48 pm ET
Archer Daniels Midland, Others Stand to Gain From Lower Corn Prices, Analyst Says
NEW YORK (AP) -- Archer Daniels Midland Inc., a producer of corn-based ethanol and corn syrup for foods, stands to benefit from a likely fall in corn prices, a Citigroup analyst said Wednesday.
Corn prices have risen to record heights amid increasing demand for ethanol, an alternative fuel that in this country is made almost exclusively from corn. Citigroup analyst David Driscoll expects to see a downturn in corn prices, as more supply comes to market.
On Friday, the U.S. Department of Agricultural reports spring plantings, and market analysts widely expect farmers to dedicate more acreage to high-priced corn instead of to soybeans, cotton or wheat. Driscoll expects the report to set the stage for weaker corn prices in months to come.
Archer Daniels Midland "has the most upside" among the grains and oilseed processors that Driscoll covers.
He also named Corn Products International Inc. and Bunge Ltd. as potential beneficiaries of a rally on lower corn prices.
A bushel of corn for May delivery fell 4.6 cents to $3.876 on the Chicago Board of Trade.
Shares of Archer Daniels Midland rose $1.11 cents, or 3.1 percent, to $37.04 in midday trading on the New York Stock Exchange. Bunge shares gained 94 cents to $81.22, while shares of Corn Products gained $1.38, or 4.1 percent, to $35.28 on the Big Board.
[more]
March 28, 2007 –
CPO A Corn-Processor Stock That Can Pop
By Johanna Bennett
BARRONS:
WITH DEMAND FOR ITS CORN SYRUP and other sweeteners rising, Corn Products International could hit pay dirt.
Sure, the stock has had a rocky ride. Before rebounding recently, the shares dropped 17% off December's record high, reflecting worries that fast-rising corn prices -- its biggest cost -- could hurt profits.
Yet Corn Products remains poised to produce robust earnings.
Farmers are gearing up to plant a bigger corn crop this year, which could put a lid on corn prices in 2008.
And if not, rising demand for high-fructose corn syrup, an essential ingredient in soft drinks, gives Corn Products leverage ...
• THE FULL BARRON'S ARTICLE IS ONLY AVAILABLE TO SUBSCRIBERS. [more]
March 28, 2007 –
Today's news = GRZ & KRY are Oversold
The environmental & construction approval given to GRZ by Venezuelan Ministry of Environment proves that KRY & GRZ are well oversold on Speculation that Venezuela being a hawkish nation towards Mining companies. Today's ruling proves the opposite is true.
http://biz.yahoo.com/bw/070328/20070328005734.html?.v=1 [more]
March 28, 2007 –
from $23+ down to $11+, currently $11.93/shr
Company lowered forecast but seems to have found support at $11.80-$11.90's after a month of continued falling daily.
Time to Short-Squeeze this stock to at least $12.50-$13
March 27, 2007 –
LONDON (AFP) - Prime Minister Tony Blair warned Iran on Tuesday that a row over 15 detained sailors could enter a "different phase" if they were not freed soon, remarks which Tehran condemned as provocative. [more]
March 27, 2007 –
I believe MEK which currently only has a market cap of $200M can and should make similiar big gains like BTJ and DXPE, EPS-Momentum picked all 3 these stocks in the last 2 years (BTJ originally below $10, and DXPE at $12/shr) MEK originally was picked in the $4+ range.
http://biz.yahoo.com/ap/070326/metretek_technologies_contracts.html?.v=2
Metretek Unit Receives New Contracts
Monday March 26, 2:37 pm ET
Metretek Technologies PowerSecure Division Receives New Contracts
DENVER (AP -- Oil and gas services company Metretek Technologies Inc. said Monday that its PowerSecure unit received new contracts that should be worth about $50 million in total sales during 2007 and 2008.
The company said it is not disclosing further details about the pacts at the customer's request.
PowerSecure posted revenue of $99.5 million in 2006, up from $30.2 million in 2005. Metretek's total revenue in 2006 was $120.4 million.
[more]
March 27, 2007 –
NVTL growth will continue as 3G becomes a Must
to be able to run the SmartPhones fast enough to run Video's .
March 26, 2007 –
going long below $12 but made the wrong call on NVTL on 3/22/07 at $15.24/shr with an underperform rating. He must be at a shock with NVTL's over 100% upward eps guidance for the 1st qtr.
http://caps.fool.com/ViewPlayer.aspx?t=01040000000000000024
March 26, 2007 –
Uranium is Hot: Reasons Behind the Radioactive Run-up
Tuesday March 13, 8:18 am ET
(Spot Price of Uranium)
Hard Assets Investor submits: Uranium has been a hot topic recently, and not always for a good reason: the efforts by countries like Iran and North Korea to secure supplies of enriched uranium worry many around the world.
For investors, however, uranium has been hot for a very good reason indeed: prices are up sevenfold over the last five years. Spot uranium hit $85 per pound recently, having doubled in the past year, and you’d be hard pressed to find a market analyst who doesn’t see the price hitting $100 by December. It's quite a reversal of fortunes for a once out-of-fashion metal that was trading in single digits at the turn of the century.
Uranium generates the heat necessary to run nuclear reactors, which used to be the most politically incorrect energy source imaginable. In the 1980s and 1990s, anti-nuclear protesters crowded the streets of Europe and the U.S., inflamed by incidents such as Three Mile Island and Chernobyl, demanding the shutdown of nuclear power plants.
Those protestors have moved on to other issues, and one of the issues at the top of their agendas is global warming. Depending upon which scientist you ask, global warming may or may not be a serious concern, but you can’t deny the anecdotal evidence. January 2007 was the warmest in New England since we began keeping track in 1800; the world's land areas were 3.4 degrees Fahrenheit warmer than a normal January, according to the U.S. National Climatic Data Center. In fact, the U.S. government confirmed last year that global warming is a reality, and is examining ways to either mitigate or cope with it.
What does global warming have to do with nuclear power? Well, 30 billion tons of CO2 (a greenhouse gas) are released into the atmosphere each year by the burning of fossil fuels like oil and coal. Nuclear power plants, on the other hand, release zero greenhouse gases. Since U.S. electric demand is projected to climb by 45 percent over the next couple of decades (and world electric demand even more), we're faced with a choice: burn more fossil fuels, potentially making the world even warmer, or use more alternative energy, including nuclear power. Even developing countries like China and India are turning more and more towards nuclear power, as those countries are looking for cheaper alternatives to oil, gas and coal.
Here is how the numbers shake out, according to the World Nuclear Association: As of December 2006, there were 435 reactors in operation worldwide; 28 new reactors under construction; 64 planned; and more than 158 proposed, globally. As new reactors come on line, there will be increased pressure to fill the gap between supply and consumption of the underlying fuel. The World Nuclear Association forecasts uranium demand to rise 20 percent over the next 10 years; with worldwide energy demand forecast to double by 2030 [OECD], that could be the tip of the globally warmed iceberg.
(China, for its part, has already announced that they will be building a number of nuclear power stations, possibly as soon as this fall. Although China has a great deal of coal, nuclear power is considered a cleaner, more efficient way of producing energy; it is also free from oil’s geopolitical risk, as uranium is mined in “safer” countries such as Canada and Australia.)
Mineral commodity markets tend to be cyclical, with prices rising and falling substantially over the years with the long lead times required to bring to market new material. Uranium is not any different. Uranium’s big jump in price has happened because supplies of the radioactive metal are not rising fast enough to keep up with demand.
There is, however, one important factor that differentiates uranium from other metals. The cost structure of nuclear power generation features high capital costs and low fuel costs. Once reactors are built, it is very cost-effective to keep them running at high capacity. In fact, even if demand for electricity were to drop (which seems unlikely), utilities would cut back on other plants that have higher fuel costs, such as oil and coal-fired generators; the nuclear power plants would keep humming. That’s what happened in South Korea in 1997: the country’s overall energy use decreased due to a recession, but the nuclear output actually rose.
The end result is that demand for uranium fuel is much more predictable than for almost any other mineral, depending almost solely on installed and operable capacity, with little concession to economic fluctuations. In that case, we could be looking at one heckuva bull run. [more]
March 26, 2007 –
Uranium Spot Price continues its surge now at $91
Uranium stock EMU - Energy Metals is looking to break recent
resistance at 52wk highs of $12+,
http://www.energymetalscorp.com/s/QwikReport.asp
URRE.ob was picked at $5+ on Feb. 23, 2007 when Uranium spot was at
$75-$80, URRE.ob is $8+ today.
http://www.uxc.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NVTL: Novatel Lifts 1Q Outlook
Monday March 26, 9:23 am ET
Novatel Wireless Lifts 1st-Quarter Outlook Onstrong Demand for High-Margin Products
SAN DIEGO (AP) -- Wireless modems and software maker Novatel Wireless Inc. lifted first-quarter expectations on Monday, thanks to strong demand for some of its higher-margin products.
The company is projecting first-quarter earnings, excluding certain expenses, of 35 cents per share on more than $100 million in sales. The guidance was lifted from a previous forecast for first-quarter earnings of 16 cents per share on $80 million in sales.
Analysts expect average earnings of 10 cents per share on $80.7 million in revenue, according to a Thomson Financial survey.
Novatel said it is revising its forecast thanks to strong demand for its Ovation devices, and also due to certain orders, which had been expected in the second quarter, being moved up to the first quarter.
Shares of Novatel spiked to $17.85 in premarket electronic trading, up $2.367, or $17.6 percent, from Friday's closing price of $15.18 on the Nasdaq. [more]
March 23, 2007 –
Orient-Express Hotels Climbs to New Year High on Report Company May Be Bought for Above $3B
NEW YORK (AP) -- Shares of Orient-Express Hotels Ltd. surged to a fresh 52-week high for the second straight day Thursday following a news report that the operator of hotels, restaurants, tourist trains and river cruises may be purchased for more than $3 billion.
The company has received inquiries from several potential bidders, The London Times reported Thursday.
Bear Stearns analyst Joseph Greff said in a client note that a sale is likely.
In February when Orient-Express announced that Chief Executive Simon Sherwood would resign, Greff determined that the executive's exit "may more have to do with the future direction of the company and could very well trigger a third-party interest in buying the company."
Chairman James Sherwood's scheduled departure in June increases the likelihood of a transaction, Greff added. He maintained an "Outperform" rating.
Shares of Orient-Express Hotels gained $3.13, or 5.7 percent, to $58.18 in morning trading on the New York Stock Exchange. Earlier, shares traded as high as $59.19, eclipsing a previous year high of $55.19 set Wednesday. [more]
March 23, 2007 –
La Jolla Pharmaceutical Provides Update on Interim Antibody Results From Riquent(R) Lupus Phase 3 Trial
Tuesday March 20, 7:30 am ET
SAN DIEGO, March 20 /PRNewswire-FirstCall/ -- La Jolla Pharmaceutical Company (Nasdaq: LJPC - News) today announced updated interim antibody reduction data for the Phase 3 trial of Riquent® (abetimus sodium), its drug candidate for systemic lupus erythematosus ("lupus" or "SLE"). The updated analyses reinforce the previous conclusion that there is a definitive and significant dose response between the 100 mg, 300 mg and 900 mg doses of Riquent compared with placebo (p=0.0001). These interim data were initially announced March 8, 2007.
Dose Dependent Antibody Reduction
The minor changes to the data show a greater reduction from baseline in antibody levels in patients treated with Riquent. The median percent reductions were 100 mg: 18%; 300 mg: 28%; 900 mg: 46% at week 8. In parallel, there was less of an increase above baseline in the antibody levels for the placebo group. As a result, the reductions in median antibody levels between the Riquent treatment groups and the placebo treatment group at week 8 were 100 mg: 30%; 300 mg: 40%; 900 mg: 58% (p=0.0032, p<0.0001, p<0.0001 respectively).
Approximately three times as many patients treated with 900 mg of Riquent (42%) had at least a 50% or greater antibody reduction at week 8 compared with patients treated with 100 mg (13%). Patients reached their maximum reduction after four weeks of treatment at which time separation between doses was also seen.
The analyses assessed the impact of treatment with Riquent on reducing antibodies to dsDNA in 101 patients by measuring the percent of antibody reduction from baseline compared with placebo following weekly treatment with 100 mg, 300 mg or 900 mg of Riquent or placebo. All demographics and baseline characteristics were comparable across dosing groups and there were 16 to 30 patients per treatment group.
Consistent Antibody Reductions
Published data from earlier La Jolla studies indicated that maintaining antibody reductions over time in individual patients was associated with a significantly reduced renal flare rate. The updated data indicate that the higher the Riquent dose, the greater the consistency of response and the greater the magnitude of this response. While more than twice as many 900 mg-treated patients (62%) as 100 mg-treated patients (25%) had a consistent 20% reduction, nearly seven times as many 900 mg-treated patients (42%) had a consistent 40% reduction, compared with 100 mg-treated patients (6%). Nearly twice as many patients on 900 mg as 300 mg had a consistent 50% reduction, but no patients on 100 mg or placebo achieved this level of consistent reduction. A consistent reduction is defined as a patient whose percent antibody reduction exceeded a specified level at weeks 4, 6 and 8.
Tolerability
To date, Riquent has been well tolerated in the ongoing Phase 3 study. The adverse event profile for all patients in the study, including those treated with the 300 mg and 900 mg doses, does not appear to differ from that seen in previous studies where 100 mg of Riquent was the treatment dose.
These data will be presented at the 8th International Congress on SLE in Shanghai in May 2007.
Phase 3 Study Design
The Phase 3 study is designed to assess the ability of Riquent treatment to prevent or delay the time to renal flare in lupus patients with a history of renal disease and with antibodies to dsDNA. A lupus renal flare is a potentially life-threatening increase in inflammation targeting the kidney. A renal flare often requires treatment with immunosuppressive agents which can have severe side effects.
The global study is expected to enroll approximately 730 patients who will be treated weekly with Riquent or placebo. Equal numbers of patients will be treated with 300 mg per week, 900 mg per week or placebo for 12 months. Patient enrollment in this international study recommenced in the third quarter of 2006 and completion of enrollment is targeted for around the end of 2007.
About Riquent
Riquent is being developed to specifically treat lupus renal disease by preventing or delaying renal flares, a leading cause of sickness and death in lupus patients. Riquent has been well tolerated in all 13 clinical trials, with no serious Riquent-related side effects identified to date. Riquent's only known biological activity is the reduction of circulating levels of anti-dsDNA antibodies. Increases in these antibodies are associated with an increased risk of renal flare. Although clinical benefit has not yet been proven, Riquent treatment has significantly reduced these antibody levels in all clinical trials where they were measured.
About Lupus
Lupus is a chronic, potentially life-threatening autoimmune disease. About 90% of lupus patients are female, and many are diagnosed with the disease during their childbearing years. Approximately 50% of lupus patients have renal disease, which can lead to irreversible renal damage, renal failure and the need for dialysis, and is a leading cause of death in lupus patients. Latinos, African Americans and Asians face an increased risk of serious renal disease associated with lupus. The current standard of care for lupus renal disease often involves treatment with high doses of corticosteroids and immunosuppressive drugs that can cause severe side effects including diabetes, hypertension and sterility, and may leave patients vulnerable to opportunistic infections. To date, no lupus specific drug has been approved in the U.S.
La Jolla Pharmaceutical Company is dedicated to improving and preserving human life by developing innovative pharmaceutical products. The Company's leading product in development is Riquent. The Company has also developed small molecules to treat various other autoimmune and inflammatory conditions. The Company's common stock is traded on The NASDAQ Global Market under the symbol LJPC. More information about the Company is available on its Web site: http://www.ljpc.com.
The forward-looking statements in this press release involve significant risks and uncertainties, and a number of factors, both foreseen and unforeseen, could cause actual results to differ materially from our current expectations. Forward-looking statements include those that express a plan, belief, expectation, estimation, anticipation, intent, contingency, future development or similar expression. The analyses of clinical results of Riquent, previously known as LJP 394, our drug candidate for the treatment of systemic lupus erythematosus ("lupus"), and any other drug candidate that we may develop, including the results of any trials or models that are ongoing or that we may initiate in the future, could result in a finding that these drug candidates are not effective in large patient populations, do not provide a meaningful clinical benefit, or may reveal a potential safety issue requiring us to develop new candidates. The analysis of the data from our previous Phase 3 trial of Riquent showed that the trial did not reach statistical significance with respect to its primary endpoint, time to renal flare, or with respect to its secondary endpoint, time to treatment with high-dose corticosteroids or cyclophosphamide. The results from our clinical trials of Riquent, including the results of any trials that are ongoing or that we may initiate in the future, may not ultimately be sufficient to obtain regulatory clearance to market Riquent either in the United States or any other country, and we may be required to conduct additional clinical studies to demonstrate the safety and efficacy of Riquent in order to obtain marketing approval. There can be no assurance, however, that we will have the necessary resources to complete any current or future trials or that any such trials will sufficiently demonstrate the safety and efficacy of Riquent. Our ability to develop and sell our products in the future may be adversely affected by the intellectual property rights of third parties. Additional risk factors include the uncertainty and timing of: obtaining required regulatory approvals, including delays associated with any approvals that we may obtain; the availability of sufficient financial resources, timely supply of drug product for clinical trials; our ability to pass all necessary regulatory inspections; the increase in capacity of our manufacturing capabilities for possible commercialization; successfully marketing and selling our products; our lack of manufacturing, marketing and sales experience; our ability to make use of the orphan drug designation for Riquent; generating future revenue from product sales or other sources such as collaborative relationships; future profitability; and our dependence on patents and other proprietary rights. Readers are cautioned to not place undue reliance upon forward-looking statements, which speak only as of the date hereof, and we undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date hereof. Interested parties are urged to review the risks described in our Annual Report on Form 10-K for the year ended December 31, 2006, and in other reports and registration statements that we file with the Securities and Exchange Commission from time to time.
Source: La Jolla Pharmaceutical Company [more]
March 23, 2007 –
WFR - MEMC Electronic Materials: Merrill Sees Pricing In Its Favor
Friday March 23, 7:38 am ET
Notable Calls submits: Merrill Lynch is raising price tgt on MEMC Electronic Materials (NYSE: WFR - News) from $60 to $73 as a result of their higher 2008 estimates reflecting stronger polysilicon pricing.
Semiconductor wafer prices are also rising while volumes should increase after 1Q07. Given the sustainability of these trends, firm's price target only requires that the current 19x 2007 P/E is maintained as valuation shifts to their new 2008 estimates. This is conservative vs. their 21x sum of the parts peer valuation calculation.
Several poly suppliers have recently signed long term contracts with semiconductor and solar companies, and others are taking prepayments signaling a tight market for several more years. In the biggest move, REC, announced a 7-year agreement to supply poly to SUMCO, the 2nd largest semi wafer maker, with rising pricing through 2010! This shows that the tight poly market is increasingly impacting the semiconductor market and not just solar.
Falling solar costs from technology driving market growth Solar cell makers are finding ways to lower the cost per watt of electricity through technological advances which is spurring market demand and volume growth that keep poly supply tight.
Firm raised their operating EPS estimate (w/stock comp, 17% cash tax) for 2008 from $3.55 to $3.85 on stronger revenues of $2.32 billion (up 6% from $2.185 billion previously). Firm's estimates are slightly above consensus and reflect a higher contribution from solar, as their semi assumptions remain largely intact. [more]
March 23, 2007 –
Per briefing.com 2 hours ago:
09:53 WFR MEMC Elec: Follow-up on 9:26 comment... hearing tier-1 firm raised tgt on WFR to $73 (62.12 +1.96) -Update-
March 23, 2007 –
believe I found one that fits the bill, its "AUM" is increasing at a
rate similiar to GROW.
EPHC Financial Highlights from latest 10q filing:
For the quarter ended December 31, 2006, the Company continued to
achieve positive operating leverage, which is defined as the total
revenue growth rate that exceeds the rate of growth of expenses. Total
operating revenue increased by 166% from $2.3 million to $6.1 million,
while total operating expenses increased by 51%. For the six months
ended December 31, 2006, operating revenue increased by 156% from $4.1
million to $10.4 million, while total operating expenses increased by
50%. Operating margins continue to improve and approach break-even
levels. The main driver of this positive trend has been the
significant increase in assets under management ("AUM"), stemming from
continued inflows, together with market appreciation. The Company
finished the quarter ended December 31, 2006 with AUM of $4.41
billion, nearly doubling AUM of $2.23 billion at the end of the same
quarter a year ago.
For the quarter ended December 31, 2006, the Company recorded net
income of $3.3 million, compared to a net loss of $1.7 million for the
same period a year ago. The significant increase in revenue, as noted
above, coupled with income from the eStara transaction in October 2006
were the primary reasons for this increase. Basic earnings per share
were $.13 per share for the quarter ended December 31, 2006, from a
loss of $.09 per share for the same period a year ago.
For the six months ended December 31, 2006, the Company recorded net
income of $2.3 million, compared to a net loss of $3.5 million for the
same period a year ago. Basic earnings per share were $.08 per share
for the six month period ended December 31, 2006, from a loss of $.19
per share for the same period a year ago.
Results of operations - three months ended December 31, 2006 and 2005
Business Environment
As an investment management and advisory firm, our results of
operations can be directly impacted by global market, political, and
economic trends. A favorable business environment can be depicted by
several factors, including strong business profitability, robust
investor confidence, low unemployment, and financial market
transparency. These factors can directly affect capital appreciation,
which in turn, impacts our investment advisory and management business.
The global market environment during the quarter ended December 31,
2006 continued its positive trend, and ended the quarter stronger than
it had begun. Optimism about the U.S. economy began to increase as
energy prices began to fall and the Federal Reserve did not continue
to increase interest rates. These factors led to a stock market rally
that lasted through the quarter. For the quarter ended December 31,
2006, the S&P 500 Index increased by 6.1%, while the Dow Jones
Industrial Average and NASDAQ Composite Index increased by 6.7% and
6.9%, respectively.
For the six months ended December 31, 2006, the S&P 500 Index
increased by 11.7%, while the Dow Industrial Average Index and NASDAQ
Composite Index increased by 11.8% and 11.2%, respectively.
This environment was favorable to our business as market appreciation
contributed notably to the increase in AUM for the three and six
months ended December 31, 2006.
The following table sets forth the changes in our assets under
management for the periods presented:
Assets Under Management and Flows (in millions)
Three Months Ended
December 31,
2006 2005
Beginning of period assets $ 3,847 $ 1,770
Net inflows/(outflows) 258 448
Market appreciation 303 17
End of period assets $ 4,408 $ 2,235
Six Months Ended
December 31,
2006 2005
Beginning of period assets $ 3,253 $ 1,402
Net inflows/(outflows) 692 752
Market appreciation 463 81
End of period assets $ 4,408 $ 2,235
AUM increased to $4.41 billion at December 31, 2006, from $2.23
billion at December 31, 2005. This increase was primarily attributable
to the ongoing expansion of the Company's client base, as well as
market appreciation.
The following charts show the Company's investment products as a
percentage of AUM as of December 31, 2006 and 2005, respectively:
[[Image Removed]]
[[Image Removed]]
The table and charts that follow set forth the amount of AUM by
distribution channel:
Assets Under Management By
Distribution Channel
(Dollars in Millions)
As of December 31,
Amount Percent
Distribution Channel: 2006 2005
Increased Increased
Sub-advisory $ 2,146 $ 1,392 $
754 54 %
Institutional 1,940 545
1,395 256 %
High net worth 322 298
24 8 %
Total AUM $ 4,408 $ 2,235 $
2,173 97 %
As a result of the increase in AUM from the prior year period, the
percentage of assets under management from CI Mutual Funds, Inc. of
Canada ("CI"), a significant sub-advisory customer, declined to
approximately 40% at December 31, 2006 from approximately 50% at
December 31, 2005.
[[Image Removed]]
[[Image Removed]]
Revenues
Total revenues from investment advisory and management services for
the three months ended December 31, 2006 were $6.1 million, increasing
approximately 166% compared to the fees earned for the same period a
year ago. This increase was attributable to the increase in assets
under management. Also contributing to the revenue increase were
calendar 2006 performance fees, which were approximately $1.0 million,
compared with $0.1 million for calendar 2005. We expect this positive
revenue trend to continue during the next quarter as AUM levels are
notably higher than comparative periods from the prior year.
For the three months ended December 31, 2006, CI accounted for
approximately 18% of consolidated revenues, while Genworth Financial
Asset Management, Inc. ("Genworth"), an investment adviser, through
its investments in the Epoch International Small Cap Fund ("EPIEX")
and the Epoch Global Equity Shareholder Yield Fund ("EPSYX"), as well
as separate account mandates, accounted for approximately 23% of
consolidated revenues.
For the three months ended December 31, 2005, CI accounted for
approximately 21% of revenues, while Genworth, through its investments
in EPIEX, as well as separate account mandates, accounted for
approximately 15%.
Employee related costs (excluding share-based compensation)
Expenses in this category include salaries, benefits, incentive
compensation, signing bonuses and commission expenses. For the three
months ended December 31, 2006, these expenses were $3.6 million, an
increase of $1.3 million or 55% from $2.3 million for the three months
ended December 31, 2005. Increased employee headcount to support the
growth and expansion of the business was the primary reason for this
increase. Also contributing to this increase was higher performance
driven compensation. We expect the level of overall employee related
costs to increase in future periods due to changes in staffing levels
to support the growth and expansion of our business.
Share-based compensation
Share-based compensation for the three months ended December 31, 2006
was $1.4 million, up $0.3 million or 28% from $1.1 million for the
three months ended December 31, 2005. Share-based compensation
includes 5.5 million shares of restricted stock that were issued to
employee owners associated with the acquisition of EIP, as well as
restricted stock issued to employees during fiscal years 2005 and
2006, and the six months ended December 31, 2006. The increase from
the same quarter a year ago is primarily attributable to the increase
in employees.
Share-based compensation expense is recognized as follows: 12.5%
immediately, with the remaining 87.5% ratably over the subsequent
three years. In the three months ended December 31, 2006 and 2005,
zero and 5,208 shares of restricted stock, respectively, were issued
to employees. A total of 651 shares of the awards issued in the three
months ended December 31, 2005, or approximately 12.5%, were
immediately vested. The remaining 87.5% of the shares vest ratably
over the subsequent three years. During the three months ended
December 31, 2006 and 2005, a total of 9,369 and 13,573 shares,
respectively, were forfeited by terminated employees.
During the three months ended December 31, 2006 and December 31, 2005,
no shares were granted to directors of the Company. The prior years'
issued directors' shares are subject to a three-year vesting period
and vest one-third each year, or immediately in the event of death or
disability. Prospective director stock awards will vest over one year.
Share-based compensation expense is recognized ratably over the
respective vesting period, in accordance with their underlying vesting
provisions.
General, administrative and occupancy expenses
These expenses consist primarily of office rentals, travel and
entertainment, advertising and marketing, information technology
expenses, utilities, insurance, and other office related expenses. For
the three months ended December 31, 2006 such fees were $0.9 million,
an increase of $0.2 million, or 30% from the comparable period a year
ago. Increases in market data services and information technology
costs, as well as insurance and marketing expenses, were the primary
contributors. We expect occupancy expenses to increase by
approximately $0.1 million per quarter prospectively, due to
additional office space leased by the Company beginning on February 1,
2007.
Professional fees and services
These expenses consist primarily of outside legal fees for Securities
and Exchange Commission compliance and general corporate legal
affairs, independent accountants' fees, and other professional
services. For the three months ended December 31, 2006 such fees were
$0.5 million, an increase of $0.4 million, or 273% from the comparable
period a year ago. An increase in employee placement fees was the
primary reason for this increase.
At the end of the second fiscal quarter ended December 31, 2006, the
Company achieved a market capitalization from non-affiliates in excess
of $75 million. As a result, the Company will become an accelerated
filer beginning with its June 30, 2007 annual report on Form 10-K.
Accordingly, management will be required to report on its assessment
of, and the Company's independent registered public accounting firm
will be required to express an opinion on, the Company's internal
control over financial reporting at June 30, 2007, in accordance with
Section 404 of the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley"). The
Company anticipates professional fees and service costs to increase
during the next two quarters due to the costs of compliance with
Sarbanes-Oxley.
Depreciation and amortization
Depreciation and amortization increased to $96 thousand in the three
months ended December 31, 2006, an increase of $12 thousand from $84
thousand in the three months ended December 31, 2005.
Other income
Other income includes interest earnings from cash and cash
equivalents, rental income from subleased office space in New York,
dividend income, and realized gains on investments. For the three
months ended December 31, 2006, other income increased to $3.9
million, an increase of $3.6 million from $267 thousand for the three
months ended December 31, 2005. The primary reason for this increase
was the result of the eStara transaction which occurred in October
2006. This transaction resulted in $2.6 million of other income - $2.4
million in dividend income and $0.2 million in realized gains.
In November 2000, J Net, the predecessor company to Epoch, recorded an
accrued liability related to a sale of certain assets to an unrelated
third party. The recorded amount of $950 thousand represented
management's best estimate of additional settlement amounts due. In
late December 2006, a final assessment was made by management which
resulted in the reversal of the previously recorded accrual.
Additional interest income of approximately $90 thousand was earned on
the $10 million of proceeds received in conjunction with the Preferred
Stock issuance on November 7, 2006.
Provision for income taxes
The effective tax rate for the three months ended December 31, 2006
was approximately 2.9%. This tax provision is the result of
alternative minimum tax ("AMT"). The Company, however, has substantial
net operating loss carry forwards and does not expect to pay
significant income taxes for the foreseeable future.
Results of operations - six months ended December 31, 2006 and 2005
Revenues
Total revenues from investment advisory and management services,
including performance-based fees, for the six months ended December
31, 2006 were $10.4 million, increasing approximately 156% compared to
the fees earned for the same period a year ago. This increase was
attributable to the increase in assets under management, led primarily
by an increase in institutional and sub-advisory mandates. We expect
this positive revenue trend to continue during the next quarter as AUM
levels are significantly higher than comparative periods from the
prior year.
For the six months ended December 31, 2006, CI accounted for
approximately 19% of revenues, while Genworth Financial Asset
Management, Inc. ("Genworth"), an investment adviser, through its
investments in the Epoch International Small Cap Fund ("EPIEX") and
the Epoch Global Equity Shareholder Yield Fund ("EPSYX"), as well as
separate account mandates, accounted for approximately 23% of revenues.
For the six months ended December 31, 2005, CI accounted for
approximately 25% of revenues, while Genworth, through its investments
in EPIEX, as well as separate account mandates, accounted for
approximately 16%.
Employee related costs (excluding share-based compensation)
Expenses in this category include salaries, benefits, incentive
compensation, signing bonuses and commission expenses. For the six
months ended December 31, 2006, these expenses were $6.5 million, an
increase of $2.4 million or 60% from $4.1 million for the six months
ended December 31, 2005. Increased employee headcount to support the
growth and expansion of the business was the primary reason for this
increase. We expect the level of overall employee related costs to
increase in future periods due to changes in staffing levels to
support the growth and expansion of our business.
Share-based compensation
Share-based compensation for the six months ended December 31, 2006
was $3.0 million, up $0.7 million or 31% from $2.3 million for the six
months ended December 31, 2005. Share-based compensation includes 5.5
million shares of restricted stock that were issued to employee owners
associated with the acquisition of EIP, as well as restricted stock
issued to employees during fiscal years 2005 and 2006, and the six
months ended December 31, 2006. The increase from the same period a
year ago is primarily attributable to the increase in employees.
Share-based compensation expense is recognized as follows: 12.5%
immediately, with the remaining 87.5% ratably over the subsequent
three years. In the six months ended December 31, 2006 and 2005, a
total of 460,658 and 477,000 shares of restricted stock, respectively,
were issued to employees. A total of 57,582 and 59,625 shares of the
awards, or approximately 12.5% of the shares issued in the six months
ended December 31, 2006 and 2005, respectively, were immediately
vested. The remaining 87.5% of the shares vest ratably over the
subsequent three years. Approximately 18,318 and 13,573 shares were
forfeited by terminated employees in the six months ended December 31,
2006 and 2005, respectively.
During the six months ended December 31, 2006 and December 31, 2005, a
total of 66,228 and zero shares, respectively, were granted to
directors of the Company. The prior year's director awards were
granted in the quarter ended June 30, 2005, in advance of their fiscal
2006 services. The recently issued directors' shares vest over one
year. The prior years' issued directors' shares are subject to a
three-year vesting period and vest one-third each year, or immediately
in the event of death or disability. Prospective director stock awards
will vest over one year. Share-based compensation expense is
recognized ratably over the respective vesting period, in accordance
with their underlying vesting provisions.
General, administrative and occupancy expenses
These expenses consist primarily of office rentals, travel and
entertainment, advertising and marketing, information technology
expenses, utilities, insurance, and other office related expenses. For
the six months ended December 31, 2006 such fees were $1.7 million, an
increase of $0.4 million, or 34% from the comparable period a year
ago. Increases in market data services and information technology
costs, as well as insurance and marketing expenses, were the primary
contributors. We expect occupancy expenses to be higher in fiscal year
2007 as we obtained additional office space on February 1, 2007.
Professional fees and services
These expenses consist primarily of outside legal fees for Securities
and Exchange Commission compliance and general corporate legal
affairs, independent accountants' fees, and other professional
services. For the six months ended December 31, 2006 such fees were
$0.9 million, an increase of $0.5 million from the comparable period a
year ago. An increase in employee placement fees, as well as an
increase in public relations fees, were the primary reasons for this
increase.
At the end of the second fiscal quarter ended December 31, 2006, the
Company . . . [more]
March 23, 2007 –
JP Morgan: MEMC Should Rise On Strong Polysilicon Demand
Wednesday March 21, 6:53 am ET
Notable Calls submits: JP Morgan is raising their C07/C08 ests on MEMC (NYSE: WFR - News) as the polysilicon/wafer pricing environment is turning out to be better than previously expected. The desire by solar cell makers to aggressively expand manufacturing capacity is the primary driver for continued polysilicon shortness, with no near-term relief in sight.
Additionally, the two large Japanese semi wafer makers are beginning to experience material polysilicon cost increases as their buffers to polysilicon pricing volatility have largely run out. Going forward they expect both Shin-Etsu and SUMCO to pass along the increased cost of polysilicon to their customers, allowing MEMC to raise wafer prices in tandem.
Utilization rates and capacity expansion plans at many solar cell makers continue to be limited by the amount of polysilicon they can acquire. For example, Solar World, which acquired Shell Solar, disclosed in a recent quarterly report that the former Shell facilities operating in the U.S. were only at 50% utilization rates due to a lack of polysilicon.
Overall semi wafer demand has been relatively flat for the past three quarters as declining logic/analog wafer starts offset wafer start growth for memory applications. Firm believes indications of an increase in Back-End utilization rates signals that C1Q07 is the utilization rate trough for the semi industry.
Reiterates OW, and they would be buying now. JPM is raising C07 revenue and GAAP EPS estimates to $2.0bn/$3.25 from $1.9bn/$2.98 and C08 estimates to $2.4bn/$3.80 from $2.32bn/$3.35, primarily on higher gross margins for semi wafers.
Notablecalls: Think the wording is strong enough to create some further buy interest in WFR. Tight leash, as the stock made a nice upward move yesterday and is prone to some profit taking. See archives for further color on WFR. [more]
March 23, 2007 –
ASTI production plant to produce photovoltaic cells capable of generating 1.5 megawatts worth of power by early 2008. Ascent plans to increase production to 100 megawatts as demand grows. According to Clean Edge, an energy research firm projected solar photovoltaic revenue from modules, system components, and installations will grow to $69.3 billion by 2016 from $15.6 billion last year.
March 22, 2007 –
Solar Power leader in clean energy
Thursday, March 22, 2007
As the growing demand for clean energy is fueling a surge in investment and new technology development to improve the performance of solar-generated electricity, a local firm appears to be leading the way.
Solar Power Industries Inc., the Rostraver firm that is the only company in Pennsylvania manufacturing cells that convert sunlight to energy, is developing a solar roof top.
Builders, especially those in the sunny southwestern part of the U.S., hope to connect Solar Power's brown-colored cells together to soak up energy from the sun -- enough to generate the electric voltage needed to allow homeowners or businesses to operate any device.
"There's nothing like it on the market, and it should be available in two or three months," said Richard Rosey, vice president of marketing and sales for Solar Power, which is located adjacent to Rostraver Airport.
The firm's timing couldn't be better because experts say solar power has no where to go but up.
In 2005, less than one percent of the nation's electricity was based on solar power, according to the U.S. Energy Information Administration.
Rosey said Solar Power has the annual production capacity to make enough solar cells to generate 24 megawatts of electricity, and expects to go to 50 megawatts by the end of the year. One megawatt can power about 800 homes.
Production isn't the only thing on the rise at Solar Power.
The company currently employs 120 workers, and Rosey expects that number to swell to 200 by the end of the year.
It's great to see a local firm not only positioning itself to expand but to be a national leader its area of expertise. [more]
March 22, 2007 –
Repost of earlier message:
because I believe this is just the beginning of a longterm up trend as
Norway's Norsk Hydro has the option to increase its stake by another
12% of total oustanding shares, which means its current stake is
locked up for good and the float just got 21% smaller and could get
even smaller once they excercise the option to increase their share.
Consider any weakness in the shares as Buying Opportunities not
Selling opportunities.
Norway's Norsk Hydro
(NHY: 30.46, 0.00, 0.0%) made a $9.2 million investment in the tiny
Littleton, Colo., company, powering Ascent's shares to nearly double
their value, pushing them up 89% by the close of trading.
The private placement represented a 23% stake in the company,
according to Ascent, which spun out last year from ITN Energy Systems,
a research and development company that works on government and
private technology development, largely for the aerospace and defense
industries.
Hydro paid about $5.77 a share, a 25% premium to Tuesday's closing
price. The Oslo-headquartered company, which is the world's
third-largest aluminum producer, will have the option to increase its
stake by 12% of the outstanding shares once the deal is approved by
shareholders.
Ascent Chief Executive Matt Foster said the investment, announced late
Tuesday, will help pay for construction of a production plant for its
thin-film photovoltaic systems used in solar panels. The plant should
reach its initial production capacity of photovoltaic cells capable of
generating 1.5 megawatts worth of power by early 2008. Ascent plans to
increase production to 100 megawatts as demand grows, he says.
"[Norsk Hydro] had been looking in this space for about two years, and
they looked at other thin film companies," Foster says of the deal,
which closed in about three-and-a-half weeks. "They wanted to move
forward, and they came out for a visit. Within 30 minutes they knew
they'd found the right company."
In November, Norsk Hydro made a $24.5 million investment in Norsun, a
Norwegian company that's building a plant to produce monocystalline
silicon wafers for solar cells.
The Analysis
For solar power enthusiasts, the transaction reflects trends both at
Norsk Hydro and in the global market for sun-supplied power.
"There's a lot of money going into solar," says Robert Margolis, a
senior analyst at the National Renewable Energy Laboratory, the
Department of Energy's main research laboratory for alternative
energy, in Golden, Colo. "There's a lot of opportunity, and the
market's growing really fast."
Domestic incentives are gaining ground in the tiny, heavily subsidized
market, which still hasn't reached commercially applicable production
capacity. There's California's Solar Initiative, which is slated to
spend $2.9 billion over 10 years to boost solar production in the
state to a total three gigawatts, enough to supply power to about a
million houses. The Department of Energy last week announced a list of
13 companies it's considering for as much as $168 million in federal
research funding. The potential recipients run the gamut from tiny,
privately held Nanosolar to corporate behemoths such as Boeing (BA:
89.98, 0.00, 0.0%) and Dow Chemical (DOW: 43.38, 0.00, 0.0%).
Globally, the clean energy market notched revenues of $55 billion last
year, and is projected to grow to $226 billion by 2016, according to
Clean Edge, an energy research firm based in San Francisco and
Portland, Ore. Clean Edge projected solar photovoltaic revenue from
modules, system components, and installations will grow to $69.3
billion by 2016 from $15.6 billion last year.
Ascent posted a loss of 30 cents a share for the third quarter of
2006, its most recent quarterly filing with the Securities and
Exchange Commission. Total losses for the first nine months of last
year totaled $1.12 a share.
Norsk Hydro is in the midst of a massive transformation that involves
a $28 billion sale of its oil production and exploration business to
government-controlled Statoil (STO: 24.95, 0.00, 0.0%), creating the
world's largest offshore operator, with a 1.9 million barrel daily
production capacity.
That's made its tiny alternative energy operation potentially more
important, says Kjetil Bakken, an analyst at Fondsfinans, a Norwegian
investment bank in Oslo.
"This seems to fit nicely into that portfolio," he says. "The new
management has reorganized and they have a new executive who is
covering power generation and alternative energy. It's an area where
Hydro seems to be increasing its focus."
The Norwegian government last week pledged $4.9 billion in
international development aid over the next three years to accelerate
clean energy development in emerging markets, which could bolster
Hydro's international market.
The Bottom Line
A little perspective is necessary, even with a feel-good story about a
company that will help wean the world from its fossil-fuel addiction.
On Monday, Ascent had a market capitalization of $25 million. One huge
deal later it's value jumped to $34 million. That's a bit more than
twice what alternatively powered slugger Barry Bonds will make playing
baseball for the San Francisco Giants this season.
This is still a tiny market, with all kinds of government supports
that make a solar stock investment one based more on conviction and
optimism than demonstrable fundamentals. But it's got to start
somewhere, and Margolis, of the National Renewable Energy Laboratory,
says growth rates are hard to ignore.
"When you get up to 2.5 gigawatts, you're starting to talk about real
numbers," he says. "I hate to say that solar's around the corner — the
point is that it's happening. It's becoming a real, relevant factor."
For the investors who've stuck with Ascent since its rocky Nasdaq
debut last July, when the $5.50 a share stock plunged nearly 40%
within six weeks of its initial public offering, it's the first of
what CEO Foster hopes will be a glowing success story.
"I think it's starting to build," he says. "This news adds credibility."
MORE ON STOCKS FROM SMARTMONEY.COM
[more]
March 22, 2007 –
(China, Techs, Home builders and Mortgage/Bank stocks all rallying yesterday)
FED decision to go Neutral yesterday changed my entire focus back to Bullish, I had expected the FED to stay stubborn and keep raising interest rates which would have put us in a recession late in 2007. But the FED finally is acting ahead of developments instead of just being reactive once they have occurred.
Yesterdays FED decision is a big one for BULLS in the Market. [more]
March 21, 2007 –
4 stocks on FIRE (GROW, HMIN, BTJ, HITT)
March 21, 2007 –
Congrats to those that bought SILC , a previous pick
its up 50%-100% at $16.88/shr depending on your entry point. Time to get your free shares and keep buying TSTC till $15-20 range.
TSTC originally picked in the $5-$6 range on 12/05/06, Keep in mind that TSTC earnings currently are as at same level as SILC which earned .20 eps while TSTC earnings came in .19 eps
March 21, 2007 –
PRTS is extremely oversold on saying it will report a small loss in the 1st qtr down over nearly 50%. While TSTC continues its year long Very Strong streak of reporting great earnings! DEIX swung to a 4th qtr profit of .41 eps last Friday trading $8.85
TSTC Telestone Technologies Announces Fiscal 2006 Results
Wednesday March 21, 8:24 am ET
BEIJING--(MARKET WIRE)--Mar 21, 2007 -- Telestone Technologies Corporation (NasdaqGM:TSTC - News)
Fiscal 2006 Highlights
-- Revenue increase 24.69% to $21.7 Million
-- Gross profit increase 30.01% to $11 Million
-- Gross margin up to 50.75%
-- Net income increase 23.67% to $4.6 Million
-- Diluted Earnings Per Share $0.53
Telestone Technologies Corporation (NasdaqGM:TSTC - News), a leading provider of wireless communication coverage solutions primarily in China announced financial results for their fourth quarter and fiscal year ended December 31, 2006.
ADVERTISEMENT
Revenue for the fourth quarter increased 35.2% to $7.4 million compared to $5.5 million in the prior year period. Net income increased 12.2% to $1.6 million, $.19 per share (diluted) compared to $1.4 million, $.17 per share (diluted) in the prior year period. Gross margin for the fourth quarter was 58% compared to 40% in the prior year.
For the 2006 fiscal year, total revenue increased 24.69% to $21.7 million from $17.4 million in 2005. Product sales increased 33.37% as compared to the corresponding period last year. Revenues from China Mobile, China Telecom, and China Netcom increased 112.93%, 68.761%, and 44.11%, respectively from the previous year. Our gross margin for the year was 50.75% compared to 48.67% in the prior year period. Net income for 2006 fiscal year was $4.6 million or $0.53 per share (diluted) as compared to $3.7 million or $0.43 per share (diluted) for 2005. Net income for 2006 increased 23.67% compared to the same period of last year. This was the first year that Telestone paid income taxes to the PRC (People's Republic of China) at a rate of 12%.
General and administrative expenses decreased 18.2% for 2006 fiscal year to $1,674,000 as compared to $2,048,000, in the prior year. The major reasons for the decrease in general and administrative expenses were due to our efforts to optimize the structure of the Company, improve working efficiency and reduction on daily expenses.
Sales and marketing expenses increased 3.9% for 2006 fiscal year to $2,917,000 as compared to $2,806,000 in the prior year. The increase in sales and marketing expenses originated from the expense in market development and the building of the new branches and other related fees. During fiscal year 2006, we continuously entered into overseas markets, such as Vietnam, Indonesia and India. We believe the investment will improve our Company's profitability.
Research and development expenses increased 38% for 2006 fiscal year to $605,000, as compared to $438,000, in the prior year. The main reason for this increase is that in fiscal year 2006 we put more investment in research and development to maintain our competitive edge.
Management of the Company currently anticipates 2007 fiscal year to be specifically above 30% growth in revenue and net earnings after taxes, as compared to 2006. This is without the inclusion of revenue generated from the upcoming 3G deployments in China. Management does expect a positive impact in revenue upon the arrival 3G, but at this time they are not able to predict the specific impact for 2007 due to the uncertainty of when the licenses will be issued to the Chinese mobile operators during the year. "The management team is pleased with the financial results of our company for 2006 fiscal year. We insist that we will achieve our planned business targets in fiscal 2007.
[more]
March 20, 2007 –
SHORT SYX partial from the Street fourth-quarter operating income fell sharply to $11.3 million from last year's $18.5 million. Gross margins fell 1.8 points year over year, to 12.9%. The Port Washington, N.Y., company blames these figures on discounts for computer and consumer-electronics products.
March 20, 2007 –
down nearly .50/shr from day high. Looks like we attracted plenty of shorts on the spike.
March 20, 2007 –
FEIC to the Sky: Fool by Numbers By Motley Fool Contributors February 8, 2007
On Feb. 6, FEI (Nasdaq: FEIC), maker of instruments and equipment used in nanotechnology research, released fourth-quarter earnings for the period ended Dec. 31. [more]
March 20, 2007 –
Tuesday February 6, 5:06 am ET
Shares of Rambus gained more than 24% yesterday to $23.50 after the FTC ruled Rambus can continue collecting royalties on certain patented memory technologies over a three year period, although at lower rates than Rambus' management believe is fair. More importantly, the ruling was a relief for investors expecting the worst, since it does not apply to second-generation technology and does not nullify any Rambus patents, which would have forced it to pay back royalties received. Rambus-RMBS-1yr-chart-02-05-07 The FTC said Rambus can charge a maximum royalty rate of 0.5% for DDR SDRAM and 0.25% for SDRAM. A BWS Financial analyst says the ruling could have been much worse and adds, "In three years, we would not expect RMBS to be making much, if anything, from the products the FTC is capping." Rambus plans to appeal the decision, saying it is "disappointed with the Commission's remedy" in regard to DDR SDRAM and SDRAM. [more]
March 19, 2007 –
Waiting for a pullback on ACAD? ACAD has major Schizophrenia drug Phase II news
Schizophrenia and other psychoses drugs exceeded $15 billion in sales 2005
Schizophrenia is a chronic, debilitating mental illness characterized by disturbances in thinking, emotional reaction, and behavior. These disturbances may include positive symptoms, such as hallucinations and delusions, and a range of negative symptoms, including loss of interest, emotional withdrawal and cognitive disturbances. Approximately one percent of the population develops schizophrenia during their lifetime and more than two million people in the United States suffer from this disease. Worldwide sales of drugs used to treat schizophrenia and other psychoses exceeded $15 billion in 2005. Despite their commercial success, current drugs used to treat schizophrenia have substantial limitations, including severe side effects and a lack of efficacy on all symptoms of the disease. [more]
March 19, 2007 –
Schizophrenia and other psychoses drugs exceeded $15 billion in sales 2005
Schizophrenia is a chronic, debilitating mental illness characterized by disturbances in thinking, emotional reaction, and behavior. These disturbances may include positive symptoms, such as hallucinations and delusions, and a range of negative symptoms, including loss of interest, emotional withdrawal and cognitive disturbances. Approximately one percent of the population develops schizophrenia during their lifetime and more than two million people in the United States suffer from this disease. Worldwide sales of drugs used to treat schizophrenia and other psychoses exceeded $15 billion in 2005. Despite their commercial success, current drugs used to treat schizophrenia have substantial limitations, including severe side effects and a lack of efficacy on all symptoms of the disease. [more]
March 16, 2007 –
HEPH drug could be saved in APRIL by Homeland Security Committee hearing on the drug in APRIL. [more]
March 16, 2007 –
HMB - HomeBanc Climbs on Upgrade
Wednesday March 14, 11:01 am ET
JPMorgan Upgrades HomeBanc, Shares Climb in Morning Trading [more]
March 16, 2007 –
YTEC newly listed on NASDAQ is a China stock
that could provide some hefty gains in the short-term. Trading in the low $8's right now. [more]
March 16, 2007 –
HEPH an Intraday Strong Buy OPINION its coming off 52 lows
Reports narrower loss, should head to $4.50-$5 range short-term
http://finance.yahoo.com/q?s=HEPH
March 16, 2007 –
FMT & LEND have yet to do so. This is one big positive for NFI over those two.
http://biz.yahoo.com/e/070301/nfi10-k.html
March 16, 2007 –
NFI eventually will trade higher than LEND
Thats why I bought heavy in NFI's April $7.50 Calls and April $10 Calls
March 16, 2007 –
of stocks , I admit , I made the wrong call the last 2 days. Will Leverage down with Heavy CALL buying to make up the difference quickly.
NFI, FMT, LEND, NDE, AHM, TMA, HF, IMH
Now going long Heavily.
March 15, 2007 –
We all know what happened to the brave who did that with NEW? It never traded as NEW again. Its now called NEWC.pk
March 15, 2007 –
ASTI Cash Infusion potential could be nearly its current mkt cap if all "A" warrents are excercised.
3,000,000 Class A Warrants have an exercise price of $6.60 per share [more]
March 15, 2007 –
Ascent Solar Technologies, Inc. Announces Completion of Initial Public Offering
July 18, 2006
Ascent Solar Technologies, Inc. announced the completion of its initial public offering. The offering consisted of 3,000,000 units at a public offering price of $5.50 per unit, and resulted in gross proceeds to Ascent Solar of approximately $16.5 million. Each unit consists of one share of common, one class A warrant and two class B warrants. The units trade on the Nasdaq Capital Market under the symbol ASTIU, and on the Boston Stock Exchange under the symbol AKC/U; on August 10, 2006, the common stock and warrants will commence trading separately on the Nasdaq Capital Market under the ticker symbols ASTI, ASTIW and ASTIZ, respectively, and on the Boston Stock Exchange under the symbols AKC, AKC&L and AKC&Z respectively. Paulson Investment Company, Inc. served as the managing underwriter of the offering.
Ascent Solar Technologies, Inc. Announces Pricing of Initial Public Offering
July 13, 2006
Ascent Solar Technologies Inc. announced that its initial public offering, consisting of 3,000,000 units, was declared effective at approximately 4:30 p.m. Eastern time, July 10, 2006. The initial public offering price was $5.50 per unit, or $16.5 million in the aggregate. Each unit consists of one share of the Company's common stock, one Class A Warrant and two Class B Warrants. In the aggregate, the units represent 3,000,000 shares of common stock, 3,000,000 Class A Warrants and 6,000,000 Class B Warrants. The exercise price of the Class A Warrants included in the units will be $6.60 per share and the exercise price of the Class B Warrants will be $11.00 per share. The Class B warrants are not redeemable. The net proceeds from the offering are estimated to be approximately $14 million after the payment of all underwriting commissions and offering expenses. Ascent intends to use the net proceeds to design, build and test a production line, product qualifications, research and development, repayment of bridge loans, business development and general corporate purposes. The closing is scheduled for July 14, 2006. [more]
March 15, 2007 –
By Jeff Ostrowski
http://tinyurl.com/ytbsyz
Palm Beach Post Staff Writer
Thursday, March 15, 2007
BOCA RATON — The meltdown in the subprime mortgage market is an inevitable result of falling home prices, former Federal Reserve Chairman Alan Greenspan said today.
"What we're dealing with is something that's more an issue of home prices than it is of mortgage credit quality," Greenspan told several hundred people attending the Futures Industry Association's conference at the Boca Raton Resort and Club.
During the housing boom that cooled in 2005, soaring home prices and looser lending standards made it possible for buyers with spotty credit to buy homes, often with little money down. But now that prices that are flat or falling, and adjustable-rate mortgage payments are rising, subprime borrowers can't refinance their way out of trouble.
"They (subprime borrowers) come in late in the game, after most of the rise in the market has taken place," Greenspan said. "When prices flatten out and go down, all of a sudden you see the thing caving in."
Greenspan stressed that there's little trouble in the "prime" mortgage market, where borrowers with good credit get the lowest mortgage rates.
"If we somehow could wave a wand and home prices would go up 10 percent, the subprime mortgage problem would disappear," he said.
But, he added, "if home prices go down from here, I think we'll have problems."
Greenspan spoke in a relaxed question-and-answer session and showed a sense of humor that he kept hidden as Fed chairman.
When one attendee asked him to comment on his reputation for striking fear into markets, Greenspan demurred.
"I know my wife doesn't quake in her boots," he joked. [more]
March 15, 2007 –
Intra-day strong buy opinions: ASTI $8.30's, ASTIW $2.08
Intra-day Shorts: PMI, NDE, AHM, LEND, FMT, NFI (Excellent Shorts at current prices right now)
March 15, 2007 –
http://finance.yahoo.com/q?s=LEND
Millions of shares being bought in LEND just like they were in NEWC.pk before they fell off the shelf. Gamblers buying only for one reason because the stock fell? Now you have ASTI a stock with a very bright future and is flat to negative , If your a gambler you can increase your odds at winning 10 fold with ASTI over LEND. Chances are 50-50 with LEND in my opinion. [more]
March 15, 2007 –
since I first mentioned them on March 5th 2007.
http://tinyurl.com/345bgh
But I believe this is just the beginning of a longterm up trend as
Norway's Norsk Hydro has the option to increase its stake by another 12% of total oustanding shares, which means its current stake is locked up for good and the float just got 21% smaller and could get even smaller once they excercise the option to increase their share.
Consider any weakness in the shares as Buying Opportunities not Selling opportunities.
Norway's Norsk Hydro
(NHY: 30.46, 0.00, 0.0%) made a $9.2 million investment in the tiny
Littleton, Colo., company, powering Ascent's shares to nearly double
their value, pushing them up 89% by the close of trading.
The private placement represented a 23% stake in the company,
according to Ascent, which spun out last year from ITN Energy Systems,
a research and development company that works on government and
private technology development, largely for the aerospace and defense
industries.
Hydro paid about $5.77 a share, a 25% premium to Tuesday's closing
price. The Oslo-headquartered company, which is the world's
third-largest aluminum producer, will have the option to increase its
stake by 12% of the outstanding shares once the deal is approved by
shareholders.
Ascent Chief Executive Matt Foster said the investment, announced late
Tuesday, will help pay for construction of a production plant for its
thin-film photovoltaic systems used in solar panels. The plant should
reach its initial production capacity of photovoltaic cells capable of
generating 1.5 megawatts worth of power by early 2008. Ascent plans to
increase production to 100 megawatts as demand grows, he says.
"[Norsk Hydro] had been looking in this space for about two years, and
they looked at other thin film companies," Foster says of the deal,
which closed in about three-and-a-half weeks. "They wanted to move
forward, and they came out for a visit. Within 30 minutes they knew
they'd found the right company."
In November, Norsk Hydro made a $24.5 million investment in Norsun, a
Norwegian company that's building a plant to produce monocystalline
silicon wafers for solar cells.
The Analysis
For solar power enthusiasts, the transaction reflects trends both at
Norsk Hydro and in the global market for sun-supplied power.
"There's a lot of money going into solar," says Robert Margolis, a
senior analyst at the National Renewable Energy Laboratory, the
Department of Energy's main research laboratory for alternative
energy, in Golden, Colo. "There's a lot of opportunity, and the
market's growing really fast."
Domestic incentives are gaining ground in the tiny, heavily subsidized
market, which still hasn't reached commercially applicable production
capacity. There's California's Solar Initiative, which is slated to
spend $2.9 billion over 10 years to boost solar production in the
state to a total three gigawatts, enough to supply power to about a
million houses. The Department of Energy last week announced a list of
13 companies it's considering for as much as $168 million in federal
research funding. The potential recipients run the gamut from tiny,
privately held Nanosolar to corporate behemoths such as Boeing (BA:
89.98, 0.00, 0.0%) and Dow Chemical (DOW: 43.38, 0.00, 0.0%).
Globally, the clean energy market notched revenues of $55 billion last
year, and is projected to grow to $226 billion by 2016, according to
Clean Edge, an energy research firm based in San Francisco and
Portland, Ore. Clean Edge projected solar photovoltaic revenue from
modules, system components, and installations will grow to $69.3
billion by 2016 from $15.6 billion last year.
Ascent posted a loss of 30 cents a share for the third quarter of
2006, its most recent quarterly filing with the Securities and
Exchange Commission. Total losses for the first nine months of last
year totaled $1.12 a share.
Norsk Hydro is in the midst of a massive transformation that involves
a $28 billion sale of its oil production and exploration business to
government-controlled Statoil (STO: 24.95, 0.00, 0.0%), creating the
world's largest offshore operator, with a 1.9 million barrel daily
production capacity.
That's made its tiny alternative energy operation potentially more
important, says Kjetil Bakken, an analyst at Fondsfinans, a Norwegian
investment bank in Oslo.
"This seems to fit nicely into that portfolio," he says. "The new
management has reorganized and they have a new executive who is
covering power generation and alternative energy. It's an area where
Hydro seems to be increasing its focus."
The Norwegian government last week pledged $4.9 billion in
international development aid over the next three years to accelerate
clean energy development in emerging markets, which could bolster
Hydro's international market.
The Bottom Line
A little perspective is necessary, even with a feel-good story about a
company that will help wean the world from its fossil-fuel addiction.
On Monday, Ascent had a market capitalization of $25 million. One huge
deal later it's value jumped to $34 million. That's a bit more than
twice what alternatively powered slugger Barry Bonds will make playing
baseball for the San Francisco Giants this season.
This is still a tiny market, with all kinds of government supports
that make a solar stock investment one based more on conviction and
optimism than demonstrable fundamentals. But it's got to start
somewhere, and Margolis, of the National Renewable Energy Laboratory,
says growth rates are hard to ignore.
"When you get up to 2.5 gigawatts, you're starting to talk about real
numbers," he says. "I hate to say that solar's around the corner — the
point is that it's happening. It's becoming a real, relevant factor."
For the investors who've stuck with Ascent since its rocky Nasdaq
debut last July, when the $5.50 a share stock plunged nearly 40%
within six weeks of its initial public offering, it's the first of
what CEO Foster hopes will be a glowing success story.
"I think it's starting to build," he says. "This news adds credibility."
MORE ON STOCKS FROM SMARTMONEY.COM
[more]
March 15, 2007 –
Based on its Solar Industry Industry average Market cap being $400+ Million, and the news yesterday which said [more]
March 14, 2007 –
saying, 'Don't worry, we have a high level of mortgage insurance,'"
PMI admitted it has 8% exposure to the subprime industry, PMI insures Mortgages against defaults. [more]
March 14, 2007 –
with the sub-prime defaulted loans reported in the media could go as high as 21%
The PMI Group, Inc. provides credit enhancement, as well as other products that promote homeownership and facilitate mortgage transactions in the capital markets. It operates in four segments: U.S. Mortgage Insurance Operations, International Operations, Financial Guaranty, and Other. The U.S. Mortgage Insurance Operations segment offers mortgage insurance products in the United States that enable borrowers to buy homes with low down-payment mortgages. The International Operations segment offers mortgage insurance and other credit enhancement products in Australia, New Zealand, Europe, and Hong Kong. The Financial Guaranty provides financial guaranty insurance and financial guaranty reinsurance. The Other segment engages in the contract underwriting operations. The company offers its products and services primarily to mortgage lenders, savings institutions, commercial banks, investors, and other capital market participants. The PMI Group was founded in 1972 and is headquartered in Walnut Creek, California. [more]
March 14, 2007 –
ASTI big buyer buys shares at a premium.
While PMI should get hit big with defaulted PMI insured mortgages
The PMI Group, Inc. provides credit enhancement, as well as other products that promote homeownership and facilitate mortgage transactions in the capital markets. It operates in four segments: U.S. Mortgage Insurance Operations, International Operations, Financial Guaranty, and Other. The U.S. Mortgage Insurance Operations segment offers mortgage insurance products in the United States that enable borrowers to buy homes with low down-payment mortgages. The International Operations segment offers mortgage insurance and other credit enhancement products in Australia, New Zealand, Europe, and Hong Kong. The Financial Guaranty provides financial guaranty insurance and financial guaranty reinsurance. The Other segment engages in the contract underwriting operations. The company offers its products and services primarily to mortgage lenders, savings institutions, commercial banks, investors, and other capital market participants. The PMI Group was founded in 1972 and is headquartered in Walnut Creek, California. [more]
March 13, 2007 –
since Nov. 2006 rally sent AOB over $10/shr
What does this mean? A Short-term very oversold condition.
March 13, 2007 –
AOB seems every qtr they fall on earnings day then rebound quickly days
later. [more]
March 13, 2007 –
IndyMac CEO warns of 'disappointing outlook'
bizjournals.com (Thu, Mar 1)
Alt-A mortgage losses accelerate, study says
Growing Alt-A problems could threaten some mortgage-backed securities
By Alistair Barr, MarketWatch
Last Update: 2:05 PM ET Mar 13, 2007
SAN FRANCISCO (MarketWatch) - Losses on so-called Alt-A home loans are accelerating and could hit the value of lower-rated portions of some mortgage-backed securities, according to a study released on Tuesday.
Alt-A loans are considered less risky than subprime mortgages, but usually have lower credit quality than "prime" loans. Companies such as IndyMac Bancorp (NDE :
IndyMac Bancorp Inc
News , chart , profile , more
Last: 27.24-1.97-6.74%
NDE27.24, -1.97, -6.7% ) , Impac Mortgage Holdings (IMH :
impac mtg hldgs inc com
News , chart , profile , more
Last: 4.52-0.49-9.78%
IMH4.52, -0.49, -9.8% ) and Countrywide Financial (CFC :
Countrywide Financial Corp
News , chart , profile , more
Last: 33.79-1.35-3.84%
CFC33.79, -1.35, -3.8% ) offer them.
Delinquencies have jumped on Alt-A mortgages originated last year with adjustable interest rates that let borrowers pay only the interest for a time.
These loans, known as Alt-A ARM IOs, have seen a four-fold increase delinquencies of at least 60 days, four times the level of similar loans originated in 2003 and 2004, according to the study by David Liu, head of mortgage credit research at UBS, and LoanPerformance, a division of real estate data firm First American (FAF :
First American Corporation
News , chart , profile , more
Last: 51.36-0.80-1.53%
FAF51.36, -0.80, -1.5% ) .
This "alarming" deterioration could have dire consequences for some investors in the BBB- rated parts of mortgage-backed securities (MBS) that contain these types of loans, but the market hasn't priced these risks in yet, Liu warned.
Losses "could potentially wipe out most of the credit support on BBB- rated bonds backed by Alt-A hybrids," Liu wrote. "And yet we have not seen any spread movements that suggest investors are taking this into consideration."
Liu's study, which used LoanPerformance data from the end of January, is based on the housing market remaining relatively flat over the next few years.
"If house prices fall over the next few years, everything in this scenario will be much worst," he said in an interview.
Alt-A loans were originally designed for borrowers with clean credit records, but with other issues that often meant they provided fewer documents or even no documents showing what they earned. These loans were attractive to investors in mortgage-backed securities because they offered higher yields than traditional "prime" home loans, but were underpinned by the cleaner credit records of the borrowers.
The popularity of Alt-A mortgages exploded in recent years. A record $400 billion of these loans were originated in 2006. They accounted for 13.4% of all mortgages offered last year, up from 2.1% in 2003, according to industry publisher Inside Mortgage Finance.
But as the Alt-A business grew, more of these loans were offered to less creditworthy borrowers and the products became more exotic.
"The Alt-A sector is the poster child for the past decade's tremendous growth and drastic evolution in the mortgage market," Liu wrote in the LoanPerformance study.
Alt-A ARM IO loans have "taken the leading role within continuously expanding borrower leverage in the runaway housing market," he added.
Three quarters of all Alt-A loans originated in 2006 were innovative mortgages such as interest-only loans and option ARMs, he noted.
As ARM IO mortgages took over as one of the dominant ARM products, the performance of these loans deteriorated rapidly, Liu said.
The main reason is that the housing market is much weaker than it was a few years ago and interest rates are much higher, Liu explained. "On top of that, underwriting standards were looser recently," he added.
MBS 'endangered'
The deterioration is "alarming" for investors in lower-rated bonds that are backed by these loans, he said.
Mortgage loans are usually packaged together and sold as mortgage-backed securities (MBS) to institutions such as pension funds, insurers, and hedge funds.
They are sliced up into different sections, known as tranches. Higher quality tranches pay lower interest rates, but are less likely to experience losses. Lower-rated slices, rated BBB- and BBB, yield more, but are the first to get hit when losses occur in the underlying mortgages.
An extra chunk of cash is included in MBS - called credit support or enhancement - that protects investors against a certain level of losses.
Liu's study suggests that losses in Alt-A ARM IO mortgages could wipe out the credit support on BBB- rated tranches of some MBS.
"There is a 34% probability that the entire BBB- tranche might get wiped out," he wrote. "Similarly, there is a 17% probability that cumulative losses reach 300 basis points, which could make BBB bonds appear on the endangered species list."
If the housing market remains flat or turns negative for a prolonged period, losses could rise further, "which will wipe out credit support of BBB bonds on these deals," he added.
If credit support on these tranches is erased, investors would still have access to the income. But Liu warned that they would likely be downgraded by credit rating agencies anyway, cutting their value.
There are a lot of moving parts in these projections, Liu said, noting that the analysis is "relatively crude."
"Even so, we believe our results are very powerful and are not currently reflected in the market," he concluded. End of Story
Alistair Barr is a reporter for MarketWatch in San Francisco. [more]
March 13, 2007 –
Late Mortgage Payments Reach High
Tuesday March 13, 12:31 pm ET
By Jeannine Aversa, AP Economics Writer [more]
March 13, 2007 –
Whats my opinion worth? Look at LEND from $23 to $5+ now.
Why do I think AHM will fall big? I was looking at its disclosure
http://biz.yahoo.com/bw/070306/20070306006410.html?.v=1
on the loans it had made and the majority are ARM or adjustable rate mortgages.
These in my opinion are the ones most possible to go in default because just a 1 point rise in interest would increase a payment by $500/month on a 500K loan. But many of these loans were made when customers were approved at 4% while today's rates are near 7% thats a 3% increase.
3 x $500 on 500k loan = $1500/month higher mortgage. Did they anticipate this quick of a rise in mortgage? I don't think so.
A mortgage that was $2000/mo now is $3500/mo. and this does not include taxes , or utilities.
Look at AHM Apr. 20 PUT or short AHM itself.
http://biz.yahoo.com/bw/070306/20070306006410.html?.v=1 [more]
March 13, 2007 –
is currently at $6+ in pre-market, congrats to those that could find shares to short or bought $22.50 PUT Options when LEND was $23 those PUT options are up 900% based on yesterdays close since 2/22/07 and based on pre-market price of LEND will be up 1400% since 2/22/07 when market opens this morning.
March 12, 2007 –
Shares of Lumera (LMRA - Cramer's Take - Stockpickr - Rating) were among technology's winners Monday, surging 33% after the nanotechnology company received a purchase order from Lockheed Martin (LMT - Cramer's Take - Stockpickr - Rating).
The order calls for Lumera to deliver its high electro-optic activity materials to Lockheed. The agreement runs until Dec. 31, at which time Lockheed will let Lumera know what it plans to do with regard to a commercial license for the materials. [more]
March 12, 2007 –
in my opinion based on the forward pe of Dollar General and the 23M shares short on BIG.
http://biz.yahoo.com/ap/070312/dollar_general_kkr.html?.v=5
March 12, 2007 –
Cimatron Reports Operating and Net Income in the Fourth Quarter and Full Year 2006
Monday March 12, 5:05 am ET
Operating and Net Profit Achieved in Q4 and full 2006 After Several Years of Losses
Revenues in Q4 2006 up 11% Compared to Q4 2005
Improved Margins and Revenue Mix
GIVAT SHMUEL, Israel, March 12 /PRNewswire-FirstCall/ -- Cimatron Limited (NASDAQ: CIMT - News), a leading provider of integrated CAD/CAM solutions for the toolmaking and manufacturing industries, today announced financial results for the fourth quarter and full year ended December 31, 2006.
Cimatron's business and financial results reflect the turnaround of the last two years, in which the Company focused on new product development and reorganization of its global sales and marketing force. The main achievements in 2006 were revenue growth, broadening of the products' offering to new markets and higher profit margins.
Financial Highlights:
Revenues for the fourth quarter of 2006 were $6.0 million, representing 11% growth compared to $5.4 million recorded in the fourth quarter of 2005. Software product revenues in the fourth quarter of 2006 increased 23% compared to the same quarter in 2005.
Revenues for the year ended December 31, 2006 were $21.5 million, compared to $20.9 million in 2005. Software product revenues for the year increased 7.5% compared to 2005.
Gross Income for the fourth quarter of 2006 was $5.1 million as compared to $3.5 million in the same period in 2005. Gross Income in 2006 was $17.8 million as compared to $16.0 million in 2005.
Operating Income in the fourth quarter of 2006 was $366 thousand, compared to an operating loss of $(1.7) million in the fourth quarter of 2005. In 2006 the Company recorded operating income of $48 thousand, compared to an operating loss of $(4.47) million in 2005. The significant improvement in the operating income results mostly from continuous efforts to reduce operating expenses.
Net Income for the quarter was $557 thousand, or $0.07 per diluted share, compared to a net loss of $(1.72) million, or $(0.22) per diluted share recorded in the same quarter of 2005. For 2006, net income was $514 thousand, or $0.07 per diluted share, compared to a net loss of $(4.59) million, or $(0.59) per diluted share in 2005.
Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, said, "We are pleased to report operating and net income for 2006 with strong Q4 results. Cimatron's financials for 2006 reflect our efforts to develop and launch competitive products to the entire toolmaking and manufacturing industries, as well as tight expense control and more efficient organization.
Cimatron's subsidiary in China achieved 80% revenue growth in 2006. The Chinese market is the fastest growing target market for Cimatron, and we continue to invest and expand our operation in this strategic market. Other key territories have also performed well in 2006, including the large markets of Germany and Japan. In North America, we are expanding our operations to cover additional markets beyond our strong presence in the automotive industry. Consequently, we have seen strong Q4 results in North America, with 17% revenue growth compared to Q4 of 2005.
The promising CimatronE version 8 was recently released, introducing new and enhanced innovative solutions for die makers, mold makers and discrete parts manufacturers. We are well on track with implementing our long term strategic plan of providing a broad range of products to the entire manufacturing market."
Mr. Rimon Ben-Shaoul, Chairman of the Board of Directors of Cimatron Said, "after several years of re-organization, cost cutting and extensive product development, we believe the Company is now on the right track for sustained growth and profitability, and that Cimatron's current competitive advantages enable us to reinforce our worldwide market positioning, both in emerging and traditional markets."
About Cimatron
With more than 20,000 installations worldwide, Cimatron is a leading provider of integrated, CAD/CAM solutions for mold, tool and die makers as well as manufacturers of discrete parts. Cimatron is committed to providing comprehensive, cost-effective solutions that streamline manufacturing cycles, enable collaboration with outside vendors, and ultimately shorten product delivery time. Cimatron's cutting-edge CAD/CAM solutions are widely used in the automotive, medical, consumer plastics, electronics, and other industries.
Founded in 1982, Cimatron is publicly traded on the NASDAQ exchange under the symbol CIMT. Cimatron's subsidiaries and extensive distributor network are located in over 35 countries to serve customers worldwide with complete pre- and post-sales support. For more information, please visit http://www.cimatron.com.
Safe Harbor Statement
This press release includes forward looking statements, within the meaning of the Private Securities Litigation Reform Act Of 1995, which are subject to risk and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to the company's plans, objectives and expected financial and operating results. The words "may," "could," "would," "will," "believe," "anticipate," "estimate," "expect," "intend," "plan," and similar expressions or variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of the future performance and involve risks and uncertainties, many of which are beyond the company's ability to control. The risks and uncertainties that may affect forward looking statements include, but are not limited to: currency fluctuations, global economic and political conditions, marketing demand for Cimatron products and services, long sales cycle, new product development, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties of the business, refer to the Company's filings with the Securities and Exchanges Commission. The company cannot assess the impact of or the extent to which any single factor or risk, or combination of them, may cause. Cimatron undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
Contact:
Ilan Erez, Chief Financial Officer
Cimatron Ltd.
Tel.; +972-3-531-2121
E-mail: ilane@cimatron.com
Yael Nevat,
Commitment-IR.com
Tel: 972-3-611-4466, +972-50-762-6215
E-mail: yael@commitment-IR.com
CIMATRON LIMITED
CONSOLIDATED STATEMENTS OF
INCOME
(In $US Thousands, except for
per share data)
Three months Twelve months
ended ended
December December
31, 31,
2006 2005 2006 2005
Total revenues 6,028 5,425 21,459 20,925
Total cost of 917 1,885 3,623 4,935
revenues
Gross profit 5,111 3,540 17,836 15,990
Research and 1,093 863 4,426 4,815
development expenses,
net
Selling, general and 3,652 4,406 13,362 15,650
administrative expenses
Operating income 366 (1,729) 48 (4,475)
(loss)
Net income (loss) $ 557 $ (1,720) $ 514 $ (4,593)
Net income (loss) per share
- basic and diluted $ 0.07 $ (0.22) $ 0.07 $ (0.59)
Weighted average
number of
shares outstanding -
basic and diluted EPS
(in thousands) 7,835 7,835 7,835 7,835
CIMATRON LIMITED
CONSOLIDATED BALANCE SHEETS
$UD Thousands
December 31, December 31,
2006 2005
ASSETS
CURRENT ASSETS:
Total cash, cash equivalents
and short-terms investments $ 5,597 $ 4,875
Other current assets 5,828 5,377
Total current assets 11,425 10,252
Deposits with insurance companies
and severance pay fund 2,653 2,219
LONG-TERM INVESTMENTS:
Marketable investments 1,287 1,309
Investments in affiliated
companies 748 886
Total long-term investments 2,035 2,195
Net property and equipment 1,010 996
Total other assets 784 780
Total assets $ 17,907 $ 16,442
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Total current liabilities $ 6,083 $ 5,924
Accrued severance pay 3,003 2,532
Minority interest (24) 4
Total shareholders' equity 8,845 7,982
Total liabilities and
shareholders' equity $ 17,907 $ 16,442
Source: Cimatron Ltd
[more]
March 12, 2007 –
Lumera Receives Order and Enters Into Agreement with Lockheed Martin
Monday March 12, 8:45 am ET [more]
March 09, 2007 –
before the close, looks very cheap here at low $29's
March 09, 2007 –
Even if 1/2 the buying was Shorts covering today that still leaves 18M more shares short that need to cover in the next few days.
Shares Short (as of 12-Feb-07): 23.02M
The short covering should really acellerate when they see the company is buying back shares from their promised $600 Million Buyback.
March 09, 2007 –
thru less dilution in earnings.
Big Lots will begin a new $600 million stock buyback program in 2007 to replace its $150 million plan from last year. During the past fiscal year, the company bought back 9.4 million shares, or 8% of its outstanding stock.
March 09, 2007 –
Big Insider already sold his stake 2/22/07 and can no longer hurt the shares
Sirenza says certain adjustments to increase Q4, 2006 earns
March 5 (Reuters) - Sirenza Microdevices Inc. (SMDI): Quote, Profile , Research) said it expects to adjust its reported fourth-quarter and 2006 results to make changes to its income tax provision due to purchase accounting adjustment at its foreign units.
The radio frequency components supplier, in a regulatory filing, said the adjustments will reduce the income tax provision and increase its earnings for both periods by up to 2 cents a share. (Reporting by Sayantani Ghosh in Bangalore) [more]
March 09, 2007 –
Big Lots 4Q Earnings Surge to $104M
Friday March 9, 7:04 am ET
Big Lots 4Q Earnings Surge to $104M; Company Sees $12.7M Gain From Discontinued Operations
COLUMBUS, Ohio (AP) -- Big Lots Inc., the nation's largest closeout retailer, said Friday that its fiscal fourth-quarter profit jumped on a gain from discontinued operations.
Earnings for the quarter surged to $104.3 million, or 94 cents per share, compared with $14.7 million, or 13 cents per share, during the same period a year ago.
The company saw a $12.7 million gain from discontinued operations during the current quarter related to its former KB Toys unit and store closings. The year-ago period was hurt by a $23 million loss from discontinued operations.
Earnings from continuing operations more than doubled to $91.6 million, or 83 cents per share, from $37.7 million, or 33 cents per share.
Analysts polled by Thomson Financial were looking for net income of 70 cents per share.
Revenue climbed 12 percent to $1.55 billion from $1.39 billion, surpassing Wall Street's estimate of $1.53 billion.
Gross margins improved to 40.5 percent from 37.1 percent thanks to improved merchandising and inventory management and less sales of clearance merchandise.
Big Lots had a 4.9 percent same-store sales increase during the quarter. Same-store sales, or sales at stores open at least a year, are a key metric used to gauge a retailer's performance. [more]
March 09, 2007 –
Big Lots Reports Fourth Quarter and Fiscal Year Results for 2006
Friday March 9, 5:55 am ET
Company Provides Initial Guidance for 2007
Company Communicates 3-Year Outlook
Company Announces $600 Million Share Repurchase Program
COLUMBUS, Ohio, March 9 /PRNewswire-FirstCall/ -- Big Lots, Inc. (NYSE: BIG - News) today reported fourth quarter fiscal 2006 net income of $104.3 million, or $0.94 per diluted share, compared to net income of $14.7 million, or $0.13 per diluted share for the same period of fiscal 2005. For the fifty- three week fiscal year ended February 3, 2007, net income was $124.0 million, or $1.11 per diluted share, compared to a net loss of $10.1 million, or $0.09 per diluted share, for the fifty-two week fiscal year in 2005. Results include both the continuing operations of the business and discontinued operations.
Discontinued Operations
As discussed in the Company's Form 10-K filed with the SEC on April 13, 2006, activity related to KB Toys, a former division of the Company, as well as the operating results and costs associated with 130 stores closed in January 2006 are classified as discontinued operations. For the fourth quarter and fiscal year ended February 3, 2007, net income from discontinued operations totaled $12.7 million and $11.4 million, respectively, compared to a net loss of $23.0 million and $25.8 million, respectively, for the fourth quarter and full year periods of fiscal 2005.
Continuing Operations
For the fourth quarter of fiscal 2006, the income from continuing operations was $91.6 million, or $0.83 per diluted share, compared to income from continuing operations of $37.7 million, or $0.33 per diluted share, for the same period of fiscal 2005. For the fifty-three week fiscal year ended February 3, 2007, income from continuing operations was $112.6 million, or $1.01 per diluted share, compared to income from continuing operations of $15.7 million, or $0.14 per diluted share, for the fifty-two week fiscal year in 2005.
FULL YEAR FISCAL 2006 HIGHLIGHTS
* Income from continuing operations of $1.01 per diluted share versus
income from continuing operations of $0.14 per diluted share last year
* Comparable store sales increase of 4.6%
* Operating profit expansion of 290 basis points
* Record $351 million of Cash Flow (defined as operating activities less
investing activities)
* Record inventory turnover of 3.4
* Completed $150 million Share Repurchase program
Commenting on fiscal year 2006 results, Steve Fishman, Chairman and Chief Executive Officer stated, "We made Big Lots a stronger company in 2006 by staying focused on our WIN strategy and holding our team accountable. Quarter by quarter, our execution improved and the merchandise offering in our stores got better and better. During 2006, we restored consistency in comp sales growth, turned inventory faster, and generated more cash than any other period in the Company's history. We reinvested in our business and returned cash to our shareholders by spending $150 million to repurchase 9.4 million shares of the Company's stock. Our organization worked extremely hard over the last 12 months and I firmly believe that the WIN strategy is working and we're seeing the benefits of our efforts in these results. We are equally as excited about what we learned throughout 2006 which served as the basis for our strategies that have been developed for the next three years."
FOURTH QUARTER HIGHLIGHTS
* Income from continuing operations of $0.83 per diluted share versus
income from continuing operations of $0.33 per diluted share last year
* Comparable store sales increase of 4.9%
* Gross margin rate of 40.5%, up 340 basis points to last year
* Expense rate of 31.6%, an improvement of 100 basis points to last year
* Record Cash Flow and inventory turnover
Fourth Quarter Results
Fourth quarter net sales for the fourteen week fiscal quarter ended February 3, 2007, increased 10.8% to $1,545.4 million, compared to $1,394.9 million for the thirteen week fourth quarter in fiscal 2005. Comparable store sales for stores open at least two years at the beginning of the fiscal year increased 4.9% for the quarter.
Operating profit for the fourth quarter of fiscal 2006 was $137.0 million, or 8.9% of sales, compared to last year's operating profit of $62.8 million, or 4.5% of sales. The improvement in operating profit performance resulted from the Company's 4.9% comparable store sales increase, a higher gross margin rate, and the continuation of expense leverage compared to the prior year. The Company's gross margin rate increased 340 basis points compared to last year principally due to improved merchandising and inventory management throughout the entire year which led to significantly less clearance merchandise compared to the prior year. Expenses as a percent of sales improved by 100 basis points resulting primarily from store and distribution center efficiencies associated with lower inventory levels and improved timing of inventory flow.
For the fourth quarter of fiscal 2006, the Company recorded net interest income of $1.9 million, a $3.0 million improvement compared to last year, which was directly attributable to the improved cash generation of the business over the last 12 months.
Inventory and Cash Management
Inventory ended the quarter at $758 million, down 9% or $78 million compared to last year. Lower inventory value resulted from a decline in store count along with an 8% decline in average store inventory levels year over year. For the fourth quarter, the Company achieved record inventory turnover results driven by improving inventory management and timely flow of merchandise along with strength in comparable store sales. Inventory turnover performance combined with improving operating results yielded higher Cash Flow for the fourth quarter compared to last year. Cash Flow for the fourth quarter of fiscal 2006 was $304 million compared to approximately $230 million of Cash Flow during the same period last year. The Company ended the fourth quarter of fiscal 2006 with no debt and total cash and investments of $282 million, an increase of $280 million over the prior year.
Share Repurchase Update
As announced in February of 2006, the Company's Board of Directors authorized the repurchase of up to $150 million of the Company's common shares. During the fourth quarter of fiscal 2006, the Company completed its $150 million program by purchasing 702,489 shares at a weighted average cost of $22.78. For fiscal 2006, the Company invested $150 million to repurchase 9,434,610 shares at a weighted average price of $15.90 per share. The shares repurchased represent approximately 8% of the total outstanding shares at the beginning of fiscal 2006.
Discontinued Operations
The Company reported income from discontinued operations of $12.7 million in the fourth quarter of fiscal year 2006 compared to a loss from discontinued operations of $23.0 million in fiscal year 2005. The income from discontinued operations for the fourth quarter of fiscal year 2006 was principally comprised of $13.5 million due to the release of a portion of the Company's KB Toys business bankruptcy-related indemnification reserves and $0.6 million related to the release of a portion of the remaining lease obligations of the 130 stores closed in the fourth quarter of fiscal year 2005; partially offset by a $1.4 million loss due to the sale of the Pittsfield, Massachusetts distribution center (formerly owned by the KB Toys business). The Company's loss from discontinued operations in the fourth quarter of fiscal year 2005 included $22.6 million primarily related to exit costs of the 130 stores closed, $1.0 million associated with the write down of the Pittsfield, Massachusetts distribution center to fair value less selling cost, upon classification as held for sale, partially offset by $0.6 million of income for the reversal of liabilities associated with the KB Toys business.
2007 OUTLOOK
* Initial Fiscal 2007 annual guidance for income from continuing
operations of $1.18 to $1.23 per share versus income from continuing
operations of $1.01 per share last year
* Initial annual Cash Flow guidance of approximately $180 million
* Initial Q1 guidance for income from continuing operations of $0.18 to
$0.22 versus income from continuing operations of $0.13 per share last
year
The Company anticipates fiscal 2007 income from continuing operations of $1.18 to $1.23 per diluted share compared to income from continuing operations of $1.01 per diluted share for fiscal 2006. This guidance for EPS growth in the range of 17% to 22% compared to last year is based on an expected increase in comparable store sales of approximately 3% and continued expense leverage. Expense leverage at the planned 3% comparable store sales increase is expected to be in the range of 50 to 70 basis points. The Company estimates that a comparable store sales increase of approximately 1% is needed to leverage the expense structure of the business. The gross margin rate for fiscal 2007 is expected to be essentially flat to fiscal 2006.
The Company projects its income tax rate to be in the range of 36.0% to 39.0%. Capital expenditures are expected to be approximately $70 to $75 million with depreciation expense estimated to be in the range of $90 to $95 million. The Company estimates this financial performance combined with an inventory turnover of 3.5 times should result in Cash Flow of approximately $180 million.
For the first quarter of fiscal 2007, the Company's guidance calls for a 4% to 6% comparable store sales increase. Based on this level of sales performance, the Company's earnings are estimated to be in the range of $0.18 to $0.22 per diluted share, compared to income from continuing operations for the first quarter of fiscal 2006 of $0.13 per diluted share.
LONG RANGE OUTLOOK THROUGH FISCAL 2009
* Target annual EPS growth rate of 20%
* Target operating profit rate of approximately 5.5% by fiscal 2009
* Cumulative capital expenditures of approximately $170 to $190 million
* Cumulative Cash Flow of approximately $550 to $600 million
* $600 million share repurchase program to begin in 2007
During August of 2005, the Company introduced its WIN Strategy (What's Important Now). The Company indicated at that time that WIN would be comprised of 3 distinctive phases: Discovery, Testing and Learning, and Execution. The Discovery phase (Q3 and Q4 of 2005) included tactical decisions to improve near-term performance along with the development of strategic changes to be implemented or tested during fiscal 2006. Throughout the Testing and Learning phase (fiscal 2006), the Company implemented or tested several merchandising, marketing, and operational strategies to better understand the business' future potential. With the tactical changes made and the knowledge gained from testing and learning, the Company is entering the Execution phase, focusing on fiscal 2007 through fiscal 2009. The long-term view includes the learnings of the last 18 months and encompasses a complete assessment of all areas of the Company's operations in order to identify the key growth initiatives and strategic investments needed to improve the long- term fitness of the business. The Execution phase is a strategic and executable roadmap focused on expanding the operating profit rate, driving sustainable EPS growth, and generating significant Cash Flow to reinvest in the business or return to shareholders.
Based on the detailed strategies underlying the Execution phase (fiscal 2007 -- fiscal 2009), the Company announced a three-year financial outlook based on the following assumptions: 1) an annual comparable store sales increase of approximately 3% with sales approaching $170 per selling square foot; 2) a gross margin rate that is essentially flat to actual 2006 results; and 3) expense leverage in the areas of stores, distribution and transportation, insurance costs, and lower depreciation expense based on disciplined capital allocation. Based on these longer-term assumptions, the Company has estimated that the operating profit rate would be approximately 5.5% by fiscal 2009. This operating profit rate expansion would translate to earnings per share of approximately $1.75 by fiscal 2009, or 20% annual compounded growth over the three year period.
Cash Flow for the next three years is anticipated to be approximately $550 to $600 million. Cash Flow estimates include the operating profit growth mentioned above along with an estimated $170 to $190 million of capital expenditures. Additionally, the Company expects to achieve improvements in payables leverage and expects inventory turnover to reach approximately 3.7 by fiscal 2009.
The Company also announced today its Board of Directors authorized the repurchase of up to $600 million of the Company's common shares commencing immediately and continuing until exhausted. Based on the current share price and number of shares outstanding, the program would allow the Company to acquire approximately 22% of its outstanding shares. The Company believes that the repurchase plan builds value for shareholders. The size of the repurchase program fits well within the Company's capital structure and long range view of its Cash Flow potential. The Company said it expects the purchases to be made from time to time in the open market and/or in privately negotiated transactions at the Company's discretion, subject to market conditions and other factors. Common shares acquired through the repurchase program will be available to meet obligations under equity compensation plans and for general corporate purposes.
Conference Call/Webcast
The Company will host a conference call today at 8:00 a.m. Eastern Time to discuss the Company's fourth quarter and fiscal 2006 financial results, its fiscal 2007 financial guidance, and provide commentary on the Company's three year outlook. The Company invites you to listen to the webcast of the conference call through the Investors section of our website (www.biglots.com).
If you are unable to join the live webcast, an archive of the call will be available through the Investors section of our website (www.biglots.com) beginning two hours after the call ends and will remain available through midnight on Sunday, March 25. A replay of the call will also be available beginning March 9 at 12:00 noon (Eastern Time) through March 25 at midnight by dialing: 1.800.207.7077 (United States and Canada) or 1.913.383.5767 (International or metro-Seattle). The PIN is 5326.
Big Lots is the nation's largest broadline closeout retailer. The Company currently operates 1,375 BIG LOTS stores in 47 states. Wholesale operations are conducted through BIG LOTS WHOLESALE, CONSOLIDATED INTERNATIONAL, WISCONSIN TOY and with online sales at www.biglotswholesale.com. The Company's website is located at www.biglots.com.
[more]
March 08, 2007 –
Yahoo stats incorrectly list HGO 52wk high , it was $8+ on Dec. 20, 2006
http://finance.yahoo.com/q?s=hgo
March 08, 2007 –
$5.61/shr
March 08, 2007 –
See yesterdays 8k filing news
March 07, 2007 –
FRN which posted .61 eps for the year is now looking for a buyer after it turned its business profitable. This low float low outstanding share company could move upward ahead of any deal. [more]
March 07, 2007 –
As of February 28, 2007, American Capital shareholders have enjoyed a total return of 590% since the Company's IPO -- an annualized return of 23%, assuming reinvestment of dividends. American Capital has paid a total of $1.4 billion in dividends and paid or declared $23.33 dividends per share since its August 1997 IPO at $15 per share.
March 07, 2007 –
Time to buy heavy in ACAS at low $43's this stock was in the high 40's just days ago. Hit hard by sub-prime downfall but its not a sub-prime lender. I put in an underperform by mistake and CAPS won't let me change it for 7 days from the day I placed it.
March 07, 2007 –
American Capital strikes oil with new $37.5M investment [more]
March 07, 2007 –
Intra-day Shorts: AHM heavy debt sub-prime lender
March 07, 2007 –
Tercica Shares Surge on Settlement [more]
March 06, 2007 –
Analyst Chris Brendler cited New Century's filing, meetings with executives from (CFC) Countrywide Financial Corp., (NDE) IndyMac Bancorp Inc. and (IMH) Impac Mortgage Holdings Inc. and other negative industry news including tightening of underwriting, new regulatory guidelines and "increased evidence of funding uncertainty" in saying the sector is on a "downward spiral." [more]
March 06, 2007 –
Intra-day Shorts: NDE, IMH, CFC, LEND, NEW, FMT (All sub-prime lenders)
March 06, 2007 –
I got confused with the symbol because it was identical to UTEK name.
March 05, 2007 –
One thing I have learned while trading is never go against the tide and Billionaires can create huge Tidal Waves in a very short time.
http://sharesleuth.com/2007/02/utek_update_1.html
March 05, 2007 –
Up until the last days of Feb. everything was rosy even though there were signs [more]
March 02, 2007 –
will provide you my analysis on Monday.
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