ZAGG, Inc. (ZAGG) – Buzz Stock of the Day

Posted on Thursday, October 14th, 2010

Shares of mobile device accessory maker, ZAGG, Inc. (Nasdaq: ZAGG) soared as much as 44 percent from Wednesday’s closing price, in morning trading on Thursday after the company announced that it expects higher third quarter and full-year revenue than previously stated.

The Salt Lake City-based company announced that it now expects third quarter 2010 revenues to exceed $22 million, and now guides for full year 2010 revenue growth of 70 percent. This compares to previously issued revenue guidance of 30 percent growth over 2009 results. The main reasons behind the revised guidance were stronger demand for their flagship product, the invisibleSHIELD, more SKUs shipped to existing storefronts, and the successful introduction of various new mobile devices in the quarter.
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Analysts on average expect revenue of $14.6 million, according to Thomson Reuters I/B/E/S.

“Preliminary results for the quarter have exceeded our expectations due to the timing of distribution agreements and new mobile devices sales surpassing industry expectations,” said ZAGG’s President and CEO, Robert G. Pedersen II, in a statement. “Demand has continued to exceed our distributors’ forecasts for the invisibleSHIELD, and we have been successful in getting more branded ZAGG products into the retail distribution channel. The rapid acceptance of mobile devices in the third quarter has also been an important driver for ZAGG sales, and we see this trend continuing in the future.”

ZAGG expects to report financial and operating results for the third quarter ended September 30, 2010, on November 10.

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Posted in Consumer Discretionary Stocks, Technology Stocks by admin | No Comments »


Motricity, Inc. (MOTR) – Buzz Stock of the Day

Posted on Wednesday, October 13th, 2010

Shares of mobile data services provider, Motricity, Inc. (Nasdaq: MOTR) soared as much as 22 percent from Tuesday’s closing price, in morning trading on Wednesday. This marks the second day Motricity shares rose,  after the company announced through a regulatory filing, that it signed an agreement to roll out its mCore service with Indian wireless carrier Reliance Communications Ltd.

Motricity was up as much as 40 percent from Monday’s closing price, on Tuesday.
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Motricity said the service, which lets wireless carriers get their users onto the Internet via mobile devices such as cell phones, will be used for Reliance’s mobile data services business.

At the time Motricity filed its IPO in January, the company had already generated more than $100 million in revenue in 2008. And although it was not yet profitable, was expecting to raise as much as $250 million from investors in its IPO. Ultimately, Motricity ended up settling on a much lower $50 million to close the deal.

Motricity trimmed its 2009 net loss to $16 million, down from $78 million in 2008. Revenue for 2009 clocked in at $113 million.

Although the company did not disclose financial terms of the Reliance deal, Baird analyst William V. Power called the deal “significant.”

“While the overall revenue opportunity is lower in India vs. developed markets, we expect that to change as data penetration improves,” he wrote in a note to investors.

Using Vodafone India as a proxy, Power estimated that the deal could add $15.2 million to $30.8 million to Motricity’s annual revenue.

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Posted in Technology Stocks by Brad | No Comments »


Eastman Kodak, Co. (EK) – Buzz Stock of the Day

Posted on Tuesday, October 12th, 2010

Eastman Kodak Company Common StEastman Kodak Co. (NYSE: EK), the 130-year-old camera maker, announced Tuesday Antoinette McCorvey will replace Frank S. Sklarsky as Chief Financial Officer and Senior Vice President effective November 5, 2010.

Currently Director of Investor Relations, McCorvey was promoted to CFO following the resignation of Frank Sklarsky, who is moving to Tyco International (NYSE: TYC). News of Kodak’s internal restructuring boosted shares as much as $0.08, or 1.9%, from Monday’s closing price of $4.22. Before Monday, Kodak shares were unchanged this year.

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Eastman Kodak Co. has experienced decreasing sales over the last four years as the company transitions from traditional film business segments to focus on consumer and commercial printing. Sales have slipped from $14.3 billion in 2005 to $7.6 billion in 2009, with Bloomberg data analysis estimating sales will fall an additional 5 percent this fiscal year.

Additionally, Fitch Ratings announced on Tuesday that it had cut Eastman Kodak Co.’s rating outlook to negative from stable and affirmed its issuer default rating at B-. In a statement regarding the move, Fitch said, “The negative outlook reflects Kodak’s continued struggles to gain traction in its digital business segments as secular declines accelerate in the traditional film business.” About $1.6 billion in debt will be affected by the move.

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Posted in Consumer Staples Stocks by Sheryl | No Comments »


Neurocrine Biosciences, Inc. (NBIX) – Buzz Stock of the Day

Posted on Friday, October 8th, 2010

Shares of neurological and endocrine-related drug maker, Neurocrine Biosciences, Inc. (Nasdaq: NBIX) soared as much as 16 percent from Thursday’s closing price, in morning trading on Friday on news that Jefferies & Co. had initiated coverage of the stock with a buy rating. Neurocrine shares touched a high of $7.37 per share in morning trading, up from Thursday’s closing price of $6.34.

We covered Neurocrine Biosciences in early June 2010 after the company announced a development deal with privately held German drug maker, Boehringer Ingelheim. Prior to that, Neurocrine was a Buzz Stock of the Day in May2010 after the company announced “statistically significant and clinically meaningful” top-line efficacy results from its Daisy PETAL phase II study of elagolix, a treatment for patients with endometriosis.

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In mid-September, Neurocrine said that a potential treatment for major depressive disorder conferred no benefit on patients in a midstage study. The study on GSK561679 involved 150 patients and was conducted by partner GlaxoSmithKline. It compared the drug candidate with placebo. Neurocrine said it plans to meet with GlaxoSmithKline in the coming months after full clinical data are available to discuss next steps for the program. Other ongoing clinical trials on the drug are testing it against post-traumatic stress disorder, anxiety and alcoholism.

Despite the setback, shares of Neurocrine are trading near their 52-week high.

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Posted in Health Care Stocks by admin | No Comments »


Alcoa, Inc. (AA) – Buzz Stock of the Day

Posted on Thursday, October 7th, 2010

Alcoa, Inc. (NYSE: AA), the largest U.S. aluminum increased its outlook for global aluminum demand as markets appear to be strengthening, sending its shares up more than 3 percent in after-hours trading on Thursday.

Alcoa increased its 2010 global aluminum consumption forecast to 13 percent from 12 percent, and noted growing demand for the metal in the BRIC nations (Brazil, Russia, India, and China), among others.

Alcoa boasted third quarter profit of $61 million, or 6 cents per share, compared with $77 million or 8 cents per share in the same quarter last year, citing a drop in the price of aluminum and a weaker dollar. Revenue in the quarter rose 15 percent to $5.3 billion on higher volumes in aerospace and increased market share in the building and construction market.
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Analysts on average were expecting earnings of 5 cents per share, according to Thomson Reuters I/B/E/S.

Analyst Charles Bradford of Affiliated Research Group in New York, told Reuters that the results were better than expected because of cost reductions. “But the metal’s price was pretty obvious. The fourth-quarter metals price ought to be a fair bit better,” he told the news agency.

“One thing that’s important to note, even though the aluminum price has gone up in the last weeks, you typically have lag time until it hits our bottom line, which is typically two weeks,” Alcoa CEO, Klaus Kleinfeld said in an interview with Maria Bartiromo. “We didn’t get much — actually almost nothing of that increase into the third quarter. You would see that coming through in the fourth quarter.”

Watch the full interview below:

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Posted in Industrial Stocks, Materials Stocks by BuzzStocks | No Comments »


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