Radian Group Inc. (NYSE: RDN) collects black ink, stock spikes

Posted on Tuesday, August 2nd, 2011

Radian Group Inc. (NYSE: RDN) shares jumped 25% to $3.85 after the mortgage insurer reported swinging to a profit in the second quarter. Volume for the stock closed in on 7.5 million shares by 11 a.m. ET, towering over an all-day average of below four million.

The company put out a news release August 2, announcing that net income for the quarter ended June 30, 2011 was $137.1 million, or $1.03 per diluted share, which included combined gains from the change in fair value of derivatives and other financial instruments of $193.8 million. This compares to a net loss of $475.1 million, or $4.31 per diluted share, for the prior-year quarter, which included combined net losses from the change in fair value of derivatives and other financial instruments of $587.8 million. Book value per share at June 30, 2011, was $8.48.

In the same release, Radian CEO S.A. Ibrahim noted, “As we face an uncertain U.S. economy and housing market, we believe that Radians risk-to-capital ratio of 19.8 to 1 and the financial flexibility of our holding company cash position provide a competitive advantage for our mortgage insurance business. We were pleased with the continued drop in mortgage insurance delinquencies in the quarter and another period of operating profitability for our financial guaranty business.”

Radian Group Inc., headquartered in Philadelphia, provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-down-payment mortgages in the secondary market.

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Posted in Financial Stocks by Glenn | 1 Comment »


Green Mountain Coffee Roasters Inc. (GMCR) perks on profit picture

Posted on Thursday, July 28th, 2011

Green Mountain Coffee Roasters Inc. (Nasdaq: GMCR) shares advanced 16.2% to $102.39 after the brewing machine seller projected 2012 profits that exceeded estimates. Volume for the stock surpassed 8.5 million shares, compared to a daily average of 2.5 million.

After the close of Wednesday’s trading, the company put out a news release stating that net sales for the third quarter of fiscal 2011 increased 127% to $717.2 million as compared to $316.6 million for the third quarter of fiscal 2010.

Under Generally Accepted Accounting Principles (GAAP), net income for the third quarter of fiscal 2011 totaled $56.3 million, or $0.37 per diluted share, representing an increase of 206% as compared to GAAP net income of $18.4 million, or $0.13 per diluted share, for the third quarter of fiscal 2010.

The company’s CEO, Lawrence Blanford stated in the same release, “In addition to continued strong consumer adoption of the Keurig® Single-Cup Brewing system, we believe our third quarter benefitted from our first-ever significant spring advertising and brand support programs, designed to raise awareness of the Keurig Single-Cup Brewing system and of our Brew Over Ice™ Teas and Coffees, perfect for the summer months.”

Blanford concluded, “It is particularly rewarding to think that with our growth, the resources we’re able to allocate to socially and environmentally focused initiatives grows as well, amplifying the positive change GMCR and its employees.”

Based in Waterbury, Vermont, Green Mountain Coffee Roasters, Inc. is recognized for its award-winning coffees, innovative brewing technology, and socially responsible business practices

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Posted in Consumer Staples Stocks by Glenn | No Comments »


Skechers USA Inc. (NYSE: SKX) sprints ahead despite Q2 losses

Posted on Thursday, July 28th, 2011

Skechers USA Inc. (NYSE: SKX) shares climbed 20.2% to $17.18 after the sneaker maker late Wednesday reported larger-than-anticipated second-quarter losses. Volume for the stock topped 2.7 million shares, surpassing a daily average of 1.1 million.

A news release out July 27 showed that second-quarter 2011 net sales were $434.4 million compared to $504.9 million for the second quarter of 2010. Second-quarter 2011 net loss was $29.9 million or a loss of $0.62 per diluted share based on 48,341,000 weighted average common shares outstanding compared to net earnings of $40.2 million or earnings of $0.82 per diluted share based on 49,130,000 weighted average common shares outstanding for the second quarter of 2010.

“Second-quarter results were impacted by several factors,” the release quoted COO David Weinberg as saying. “First, we were up against a record second quarter in 2010, and we aggressively reduced our excess toning inventory during the second quarter by selling two million pairs of our original Shape-ups for a loss of $21.0 million. We also recorded a $4.4 million reserve for additional product, which we believe reflects net realizable value. We made a decision to accelerate the clearance on early generation Shape-ups product in order to eliminate the overhang of excess inventory.

“We believe this will expand the sales of our new toning and performance product, which are showing positive results at retail.” Weinberg  concluded.

Gross profit for the second quarter of 2011 was $143.3 million or 33%of net sales compared to $237.6 million or 47.1 percent of net sales in the second quarter of last year.

Skechers USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of footwear for men, women and children under the Skechers name, as well as under several uniquely branded names.

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Posted in Consumer Discretionary Stocks by Glenn | No Comments »


Questcor Pharmaceuticals Inc. (QCOR) perks on Q2 bottom line

Posted on Wednesday, July 27th, 2011

Questcor Pharmaceuticals Inc. (Nasdaq: QCOR) shares rallied 24.1% to $32.26 after the drug developer late Tuesday reported second-quarter income above expectations. Volume for the stock totaled 6.7 million shares, or nearly seven times its daily average.

An AP story quoted the Anaheim-based drug company as saying Tuesday that its profit jumped 49% in the second quarter as a strong pickup in prescriptions of the multiple sclerosis treatment H.P. Acthar Gel helped boost revenue to record levels.

The company reported net income of $13.9 million, or 21 cents a share, for the three months ended June 30. That compares with net income of $9.3 million, or 14 cents a share, in the same period last year.

Excluding certain non-cash expenses, the company’s earnings amounted to 23 cents a share, Questcor said.

Revenue grew by 62% to $46 million, versus $28.3 million a year earlier.

Analysts polled by FactSet were expecting, on average, net income of 20 cents a share on a profit of $42.1 million.

AP also said Questcor’s shipments of vials of Acthar rose 45% during the quarter versus a year earlier. They were up 21% from the first quarter’s tally.

The company said prescriptions for Acthar to treat multiple sclerosis more than doubled compared with the same quarter last year.

Prescriptions for the drug as a treatment for other conditions, including infantile spasms, also surged.

“Our focus on expanding the use of Acthar in the treatment of MS exacerbations drove our record second quarter financial performance,” AP piece quoted Don Bailey, Questcor’s president and Chief Executive, as saying.

As a result, the company is expanding its nephrology selling effort, he added.

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Posted in Health Care Stocks by Glenn | No Comments »


Marshall Edwards, Inc. (MSHL) grows from publication of new study

Posted on Wednesday, July 27th, 2011

Marshall Edwards, Inc.(Nasdaq: MSHL) shares leaped 172.7% to $3.19, after it announced the publication of results from a pre-clinical study of NV-128 showing activity in chemotherapy-resistant ovarian cancer stem cells. Volume for the stock topped 2.5 million shares, dwarfing a daily average around 75,000.

The San Diego-based Marshall Edwards, an oncology company focused on the clinical development of novel therapeutics targeting cancer metabolism, announced in news release dated July 27 the publication of results from a pre-clinical study of NV-128 showing activity in chemotherapy-resistant ovarian cancer stem cells. NV-128 is the prodrug of the Company’s investigational compound and lead mitochondrial inhibitor drug candidate, NV-344.

The publication, entitled “Targeting the mitochondria activates two independent cell death pathways in the ovarian cancer stem cells,” is available on the Molecular Cancer Therapeutics website and scheduled to print in the August issue of the journal.

Previous studies conducted at Yale University showed that NV-128 is able to inhibit tumor growth in an ovarian cancer animal model without inducing significant toxicity, suggesting a sufficient therapeutic window that may allow compounds of this class to be safely administered to patients. Marshall Edwards plans to complete the required pre-clinical studies of NV-344 to submit an Investigational New Drug (IND) application to the U.S. Food and Drug Administration (FDA) by the first quarter of 2012.

In the same release, company CEO Daniel Gold said, “This study exemplifies the importance of our ongoing collaboration with … Yale University as well as our continuing commitment to enhancing our pipeline of novel drug candidates.

“We are excited about the progress we are making with both of our lead candidates, NV-143 and NV-344, and look forward to reporting on their clinical development in the months ahead.” Gold concluded.

Marshall Edwards, Inc. is focused on the clinical development of novel anti-cancer therapeutics. The Company’s lead programs focus on two families of small molecules that result in the inhibition of tumor cell metabolism.

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Posted in Health Care Stocks by Glenn | No Comments »


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