Archive for October, 2009

Giga-Tronics, Inc. (Nasdaq: GIGA) Buzz Stock of the Day

Thursday, October 29th, 2009

Shares of Giga-Tronics, Inc. (Nasdaq: GIGA) were up more than 44 percent today from yesterday’s close, touching on a high of $2.78 after the company reported profit for the second quarter, marking the fourth, consecutive, profitable quarter for the company.

For the quarter ending September 26, 2009, Giga-Tronics reported a net profit of $373,000 or 8 cents per share, compared to a net loss of $540,000 or 11 cents per share for the same period last year. Net sales for the quarter increased 25 percent to $4.6 million compared to $3.6 million for the same quarter a year ago. Giga-Tronics’ gross margin improved to $2.1 million, an increase of $775,000 over the same period last year. As a percentage of net sales, gross margin improved 9.4 percent to 45.7 percent, from 36.3 percent in the second quarter of fiscal 2009. Orders increased to $4.8 million in the second quarter from $3 million for the second quarter of fiscal 2009. Cash and cash equivalents at September 26, 2009 were $1,345,000 compared to $1,551,000 as of June 27, 2009.

Giga-Tronics, Inc. specializes in instruments, sub-systems, and sophisticated microwave components that have broad applications in both commercial communications and defense electronic s systems. The company focuses on three principal product areas: test measurement instrumentation, signal switching solutions, and microwave components.

China Technology Development Group (Nasdaq: CTDC) Buzz Stock of the Day

Tuesday, October 27th, 2009

China Technology Development Group (Nasdaq: CTDC), an integrated clean energy corporation, announced Tuesday that the company will acquire a majority interest in China Technology Solar Power Holdings Limited. The stock purchase agreement states that China Technology Developemtn Group will obtain a 51 percent equity interest and become the major shareholder of CTSPHL Group.

The announcement sent shares skyrocketing more than 39 percent, to a high of $5.09 from Monday’s closing price of $3.66. More than 978,000 shares changed hands by 10:45 a.m. EDT Tuesday, 10 times greater than the stock’s 50-day average daily volume of 97,000, according to Nasdaq.

Chairman and CEO of China Technology Development Group commented in a statement about the acquisition, “We are very pleased to become a controlling shareholder of CTSPHL Group. This marks a significant step that CTDC has made to enter into the solar power station arena and become one of the first overseas listed Chinese companies to hold an operating license from the Chinese government to operate on-grid solar power stations in China,” commented by of the Company.

China Technology Development Group (CTDC) believes the acquisition will advance the company’s goals of becoming a fully-integrated solar company with the capacity and qualifications to design, build, and operate solar power plants.

CTSPHL Group, through its wholly-owned subsidiary, is developing a 100MW grid-connected solar power plant project located in Delingha City of Qaidam Basin in Qinghai Province, Northwestern China. Upon closing of the acquisition, the Company and CTSPHL Group will jointly develop the Delingha 100MW Solar Project. CTSPHL Group has obtained a 25-year operating license from the Qinghai Provincial Development and Reform Commission for the first phase of the Delingha 100MW Solar Project, consisting of 10MW. Construction commenced on the first phase on 28th September 2009 and is expected to be completed by the end of 2010.

China Technology Development is an up-and-coming integrated clean energy group focused on providing solar energy products and solutions. The Company has an 8.86 million-share float with only 257,000 shares short as of Sept. 25, according to Yahoo Finance. Only 3.2% of the company’s shares are held by insiders with another 1.7% owned by institutions. CTDC’s major shareholders include China Merchants Group and Beijing Holdings Limited.

Telestone Technologies Corporation (Nasdaq: TSTC) Buzz Stock of the Day

Tuesday, October 20th, 2009

The Chinese telecomm industry leader, Telestone Technologies Corporation (Nasdaq: TSTC) , announced Tuesday that it’s Wireless Fiber Distribution System (WFDS™) passed all testing procedures of the U.S. Federal Communications Commission (FCC), including all of the existing 2G and 3G systems in the U.S. The announcement Tuesday boosted share prices 31.4 percent to a high of $11.15 from Monday’s closing price of $8.48.

The company’s proprietary Wireless Fiber Distribution System, which provides for indoor multi-services access networks, had a successful debut at the April 2009 CTIA trade show in Las Vegas. Following the trade show, the company immediately began working towards FCC compliance. To achieve this, Telestone developed a team comprised of corporate-level officers, R&D and marketing personnel, as well a partner in the United States.

Last month, the WFDS technology passed all FCC required testing procedures and Telestone was given the green light to market the product in the United States, as well as Canada, and Central and South America. The FCC certification is a substantial achievement for Telestone’s efforts to gain market share in North and South America.

Mr. Daqing Han, Chairman and CEO of Telestone, commented, “The certification of Telestone’s WFDS(TM) technology by the FCC has removed the final hurdle for us to effectively launch our marketing initiatives throughout the Americas. In the coming months, we expect to secure new contracts in the U.S. from telecommunication carriers and through our local partners while expanding our reach to countries in Latin America. Diversifying our revenue base as we move into 2010 is an important goal and we expect positive margin enhancements through increased WFDS(TM) sales.”

Industry analysts believe Telestone Technologies is poised for substantial growth in the coming years. The Chinese government has announced it will spend $70 billion over the next three years on 3G initiatives, this, coupled with Telestone’s impressive goals to increase the company’s domestic market share from 5 percent to 33 percent suggests the company plans to capture a sizable share of the government funds allocated for wireless development.

Fortress International Group, Inc. (Nasdaq: FIGI) Buzz Stock of the Day

Monday, October 19th, 2009

Shares of Fortress International Group, Inc. (Nasdaq: FIGI) skyrocketed more than 100 percent today on news that the company had been awarded six new contracts totaling nearly $40 million.

The contracts will span all three divisions of the company: technology consulting, construction management and facilities management. Including the new project awards, the company said it has closed $46.5 million in new business since the end of the second quarter.

The majority of the new business comes from four substantial design and construction projects for two of Fortress International’s co-location customers totaling $36.4 million. The company said the revenues from these projects will span the next 8 months.

In addition, Fortress was also awarded a $2.7 million facility management contract over a three year period to commission and service multiple containerized data center modules.

“Our private sector project wins are the direct result of the credit markets opening up in our sector,” said Chief Executive Officer Thomas P. Rosato in a statement. “Capital spending has been very slow since October of 2008. We are now beginning to see our capacity-constrained data center customers executing their facilities expansion plans to meet pent up demand. The credit markets are responding favorably to this segment and we expect to see increased project spending over the next few quarters.”

Finally, the US Social Security Administration has selected Fortress International to be a part of a professional services team assembled to assist in the development and design of a new data center in Baltimore, MD. The contract, which will be executed by Fortress International’s technology consulting division, is initially for $300,000 but due to the volume and complexity of the project, the company believes additional involvement will evolve from the initial deal.

Fortress International Group, Inc. is a leading provider of consulting and engineering, construction management and 24/7/365 site services for mission-critical facilities. The company’s announcement Monday boosted share prices to an intraday high of 97 cents. More than 2.1 million shares changed hands by 11 a.m. EDT Monday, compared to the stock’s 50-day average daily volume of 82,000, according to Nasdaq. Fortress International has a float of 4.5 million shares with a short interest float of only 0.5 percent as of Sept. 25, according to Yahoo. More than 61 percent of the company’s shares are held by insiders with another 4.9 percent owned by institutions.

Acorda Therapeutics, Inc. (Nasdaq: ACOR) Buzz Stock of the Day

Thursday, October 15th, 2009

Shares of Acorda Therapeutics, Inc. (Nasdaq: ACOR) skyrocketed 50 percent in morning trading Thursday to a high of $26 from Wednesday’s closing price of $16.74 after analysts said a U.S. Food and Drug Administration (FDA) panel review of the company’s multiple sclerosis drug paved the way for approval by next year. Acorda Therapeutics Inc. topped the list of Biggest Percentage Price Gainers among common stocks on the Nasdaq Stock Market.

An Advisory Committee panel announced today that they would stand behind Acorda’s drug candidate Fampridine-SR, a multiple sclerosis drug geared to help mobility in patients. The announcement today came in sharp contrast to a more negative review by FDA staff a few days earlier that sent the company’s shares down sharply, analysts said.

“In my view, the briefing documents were a total red herring to investors, most of whom sold positions heavily,” said Hapoalim Securities analyst Raghuram Selvaraju. “This morning, what you’re seeing is the about-face that I would have expected.”

The FDA will decide on October 22 whether the drug will be approved. An unaffiliated panel of experts voted 12-1 in favor of the drug, and concluded that fampridine was both safe and effective, but recommended it not be used in patients with known seizure problems. Additionally, the experts recommended lower doses be studied in clinical trials, which could be done after FDA approval. Some analysts predicted approval could be delayed until early 2010 to prepare a program to manage fampridine’s risks.

Ron Cohen, M.D., Acorda Therapeutics President and CEO said in a statement Thursday, “We are pleased with the outcome of today’s Advisory Committee meeting. People with MS have an urgent need for therapies to improve their walking, which is essential to conducting their activities of daily life. If approved, Fampridine-SR would be the first medicine to improve walking in people with MS.”

Analyst Raghuram Selvaraju projects annual sales of fampridine reaching $900 million by 2017, putting it near the $1 billion threshold for a drug to be deemed a blockbuster. The 50 percent surge in share prices Thursday launched Acorda Therapeutics to a market value of nearly $1 billion, which combined with the earnings potential of fampridine, makes Acorda a possible acquisition candidate.

Aside from Biogen Idec (BIIB.O), which holds fampridine rights outside the United States, analysts predict other pharmaceutical companies with multiple sclerosis programs might be interested in acquiring Acorda, including: Teva Pharmaceutical Industries (TEVA.TA), Novartis (NOVN.VX), Merck KGaA (MRCG.DE) and Sanofi Aventis (SASY.PA), which is developing a drug that is similar to fampridine, but further behind in development.

Selvaraju continues, “I think they’re an extremely eminent takeover target, I think any company that either has a foothold in the MS space or wants to have one should be very interested in this company.”

Acorda Therapeutics does not comment on speculation regarding possible acquisitions.