Archive for July, 2009

American Superconductor Corp. (AMSC): Buzz Stock of the Day

Thursday, July 30th, 2009

American Superconductor Corp. (NASDAQ: AMSC) caught a tailwind this morning after the maker of wind-energy components announced first quarter earnings that beat analysts’ expectations thanks in large part to China’s greening.

“China, in particular the China wind industry, is the primary driver for our growth today,” said American Superconductor CEO, Greg Yurek in a conference call with analysts.

For the first quarter, the company posted net income of $1.8 million, or 4 cents a share, compared with a net loss of $6.1 million, or 14 cents a share, a year ago. Excluding items, it earned 12 cents a share. Revenue grew 83 percent to $73 million.

AMSC’s largest customer, wind-energy generator maker, Sinovel Wind, accounted for approximately70 percent of AMSC total revenue, and recently increased the its total contract value with American Superconductor to $470 million.

The original Sinovel contract, signed in January and valued at $450 million, had called for AMSC to ship core electrical components for Sinovel’s 1.5 megawatt wind turbines through the end of December 2011. Now, AMSC will increase its core electrical component shipments to Sinovel in 2009 and 2010 and now agrees to complete all shipments by the end of April 2011.

In 2008, China grew the installed base of wind turbines to about 12 GW and early this year declared that they intended to add another 10 GW or more in 2009, Yurek noted. Research by China Wind Energy Association projected that China would grow its wind power installed base between 108 GW and 132 GW by 2020.

“With Sinovel continuing to gain market share, many of our other wind turbine manufacturers set to commence production over the next 12 months, and power grid demand on the rise worldwide, AMSC’s outlook is stronger than ever,” said Yurek, adding that Sinovel is looking to double its production in 2009 and further growth is expected in 2010 and beyond.

Buzz Stock of the Day – iBasis (IBAS)

Monday, July 13th, 2009

Shares of telecom services provider, iBasis, Inc. (Nasdaq: IBAS) were up more than 24 percent today, after news of a $48mln bid for 44 percent of the company’s outstanding shares from Dutch telecommunications giant, Koninklijke KPN.

The $1.55-per-share offer equated to a 19.2 percent premium over iBasis’ July 10 closing price.

iBasis operates as a wholesale carrier of international long distance telephone calls, and a provider of retail prepaid calling services and enhanced services for mobile operators worldwide.

iBasis had 71.2 million common shares outstanding, as of March 31st. In October 2007, iBasis received $55 million in cash from KPN in exchange for 40.1 million shares of its common stock.

KPN already owned about 40.1 million shares, or a 56.3 percent stake, in the Burlington, Mass.-based iBasis prior to making the bid. KPN’s latest bid indicates its intention to commence a tender offer to increase KPN’s equity ownership to up to 100 percent.

iBasis said its board will form a special committee of independent directors to consider the bid.

Buzz Stock of the Day – Novogen (NVGN)

Wednesday, July 8th, 2009

Shares of Australian pharmaceutical company Novogen Ltd. (Nasdaq: NVGN) continued their climb today after closing up 24 percent on the day yesterday.

Shares were up as much as 83 percent presumably another run on yesterday’s news that researchers found that the investigational anti-tumor drug, phenoxodiol, to be effective in killing cancer cells.
Phenoxodiol is licensed by Marshall Edwards (Nasdaq: MSHL), which is majority owned by Novogen Ltd.

The results make phenoxodiol a promising candidate for the treatment of pathologically activated lymphocytes such as those in acute lymphoid leukemia, or diseases driven by T-cell proliferation such as autoimmune diseases and graft-versus-host disease, according to an article published in the Haematologica Journal on June 16.

Buzz Stock of the Day – Marshall Edwards (MSHL)

Tuesday, July 7th, 2009

Shares of Australian oncology company Marshall Edwards, Inc. (Nasdaq: MSHL) were up as much as 52 percent today after researchers found that the company’s chemosensitizing agent, Phenoxodiol has been shown to kill cancer cells.

“These findings indicate that phenoxodiol may have utility against autoimmune diseases, such as rheumatoid arthritis and psoriasis, as well as having potential in management of graft rejection in transplantation patients,” said Prof. Alan Husband, Group Director of Research, Marshall Edwards, Inc.

Researchers at the Malaghan Institute of Medical Research in Wellington, New Zealand found that abnormally proliferating human T-cells, rapidly dividing cancer cells such as primary myeloid and lymphoid leukemic blast cells undergo programmed cell death when exposed briefly to phenoxodiol.

Phenoxodiol is being developed to be used in combination with platinum drugs for late stage, chemoresistant ovarian cancer and as a monotherapy for prostate and cervical cancers.

The treatment is currently being investigated as a therapy for late-stage, chemoresistant ovarian, prostate and cervical cancers and as received Fast Track status from the FDA to facilitate its development as a therapy for recurrent ovarian and prostate cancers.

Phenoxodiol is part of a new breed of oncology drugs – multiple signal transduction regulators (abbreviated as ‘MSTR‘) — that act against the fundamentals of the cancer process, and has shown to kill virtually all types of cancer cells to which it has been exposed in the test tube, according to Marshall Edwards’ Web site. This includes breast, prostate, ovarian, lung, colorectal and head & neck carcinomas, mesotheliomas, leukemias, rhabdomyosarcoma and neuroglioma.

Buzz Stock of the Day – Patrick Industries (PATK)

Monday, July 6th, 2009

Shares of Patrick Industries, Inc. (Nasdaq: PATK) were up more than 40 percent today. The company manufactures building products and materials to manufactured housing and recreational vehicle market in the United States and Canada.

Last week, the Institute for Supply Management said its index of manufacturing activity moved to 44.8 in June from 42.8 in May. That reading was in line with the 45 reading expected by economists and signals a slowing rate of contraction. And a gauge of future U.S. housing-market activity rose for the fourth consecutive month in May, marking its longest stretch of growth since October 2004. The National Association of Realtors said its index of pending sales increased 0.1% in May to 90.7.

The Elkhart, Ind.-based Patrick Industries has been trading higher since July 1st, when the data was published.

A turnaround in the housing market is exactly what Patrick Industries needs. The company’s first quarter net sales was a mere $44.9 million compared to $97.0 million in 2008. “Our operating plans reflect the impact of lower sales volumes stemming from the recession and low consumer confidence that we believe will continue for at least the next nine to twelve months,”said Patrick Industries’ president and CEO, Todd Cleveland in a statement.

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