Archive for June, 2010

Layne Christensen Co. (LAYN) – Buzz Stock of the Day

Wednesday, June 2nd, 2010

Shares of construction services provider, Layne Christensen Co. (Nasdaq: LAYN) were sharply higher in morning trading on Wednesday, after the company released first quarter results that shattered analysts’ expectations thanks in large part to an 85 percent increase in revenue from the company’s mineral exploration division.

Net income for the first quarter ended April 30 rose to $6.6 million, or 34 cents a share, from $1.0 million, or 5 cents a share, last year. Revenue for the quarter rose 13 percent to $230.7 million.

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Analysts on average expected the company to earn 22 cents, on revenue of $216.9 million, according to Thomson Reuters I/B/E/S.

Earnings before income taxes for Layne Christensen’s mineral exploration division increased 386.0 percent to $8,587,000 for the three months ended April 30, 2010, compared to $1,767,000 for the same period last year. Mineral exploration revenues increased a staggering 85.0 percent to $45,878,000 for the three months ended April 30, 2010, from $24,794,000 for the same period last year.

“The extremely sharp turnaround in our mineral exploration business in North America and Africa produced a strong quarter considering where we were a year ago,” said the company’s president and CEO, Andrew B. Schmitt. “Our water supply project in Afghanistan also was an important contributor to earnings and the rest of the water infrastructure side of our business improved as well. Going forward, the question will be whether a stronger mineral exploration market and, hopefully, some turnaround in the housing and municipal infrastructure markets, can compensate for the reduced earnings as a result of lower current natural gas prices and the New Orleans project that was completed during this quarter.”

Jones Soda Co. (JSDA) – Buzz Stock of the Day

Tuesday, June 1st, 2010

Shares of specialty beverage maker, Jones Soda Co. (Nasdaq: JSDA) continued their climb, which started last Thursday after the company announced a distribution deal with retail giant, Wal-Mart Stores, Inc. (NYSE: WMT).

Shares were up 22 percent in morning trading on Tuesday.

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The deal allows Jones to sell its products in Walmart’s approximately 3,800 U.S.-based stores, and increases the beverage maker’s total retail outlet distribution by about almost 10 percent. The Walmart rollout was granted following a successful test of several different-flavored 6-packs that were available in 750 stores.
Walmart officially authorized Jones Soda products on May 3rd and began rolling it out on shelves, with plans to have product in nearly all U.S. stores by the end of last month.

“The Walmart deal allows for another one of America’s premier retailers to offer Jones,” said Jones CEO William Meissner in a statement. “Walmart greatly expands our distribution footprint and truly makes our product accessible to everyone, which is something the Jones Soda brand has always stood for. Now, almost anyone, anywhere in the U.S. can seek out a nearby store or stumble upon our product and purchase it on the spot. We are incredibly energized by the growth potential this Walmart expansion brings.”

The stock has traded between 40 cents to $1.42 per share over the past year.