Rosetta Resources (ROSE) stock propels higher on upbeat numbers and upgrades

Posted on Monday, May 9th, 2011

Rosetta Resources Inc. (Nasdaq: ROSE) shares advanced 19.7% to $49.20, after several analysts upgraded shares of the oil and natural-gas company. Volume for the stock topped 3.1 million shares Monday, or nearly five times its daily average.

Investment firm Cannacord Genuity was particularly bullish and placed a $53 price target on the stock, which represents about a 30% premium to its Friday closing price. On Friday, the Houston-based Rosetta announced, for the first quarter ended March 31, 2011, net income of $11.0 million, or $0.21 per diluted share, versus a net income of $7.3 million, or $0.14 per diluted share, for the same period in 2010. These results include a $1.8 million after tax gain related to the settlement of hedges associated with the divested DJ Basin property.

Revenues for the first quarter of 2011 were $97.1 million compared to $70.1 million for the same period in 2010. Compared to a year ago, higher product revenues from oil and liquids were partially offset by lower gas revenues.

Said CEO Randy Limbacher, “the first quarter of 2011 delivered strong results led by continued success in our Eagle Ford shale play. We have continued to shift our production base to a more balanced portfolio weighted towards liquids and are reaping the benefits of a lower operating cost structure.
“We successfully completed our asset divestiture program and the proceeds will provide additional flexibility to execute our growth plans. Rosetta entered 2011 a streamlined and more focused company that is positioned to deliver double-digit growth into the future.”

Rosetta Resources Inc. is an independent exploration and production company engaged in the acquisition and development of onshore energy resources in North America. The Company’s activities are primarily located in South Texas, including its largest producing region in the Eagle Ford shale and in the Southern Alberta Basin in northwest Montana.


Dollar Thrifty Automotive Group (DTG) stock price higher on bidding war

Posted on Monday, May 9th, 2011

Dollar Thrifty Automotive Group Inc. (NYSE: DTG) shares added 12% Monday morning to $78.03, after Hertz Global Holdings Inc. (NYSE: HTZ) raised its offer to buy the rival car-rental company, hoping to outbid Avis Budget Group Inc. Volume for the stock was 1.27 million well before noon ET Monday.

It was Monday that Hertz offered Dollar Thrifty shareholders $72.00 per share (based on Hertz’s closing stock price on May 6), consisting of $57.60 in cash and 0.8546 shares of Hertz. The offer represents: a 26% premium and 18% premium to Dollar Thrifty’s 90-day and 60-day average share price, respectively; and a 24% premium to the value of the entirely hypothetical price announced by Avis over seven months ago.
Hertz’s offer is not subject to any financing condition or contingency

Commenting on the offer, Hertz CEO Mark P. Frissora said: “We believe that the acquisition of Dollar Thrifty by Hertz would be in the best interests of both companies’ shareholders and of rental car consumers, and that it will accelerate Hertz’s growth opportunities by leveraging the combined brand portfolio and unparalleled value and service reputations of both companies. To this end, we have today made a superior bid.”

Dollar Thrifty CEO Scott Thompson was not available for comment.


DUSA Pharmaceuticals (DUSA) stock spikes on earnings report

Posted on Thursday, May 5th, 2011

DUSA Pharmaceuticals Inc. (Nasdaq: DUSA) shares rallied 22.5% to $5.55, after the developer of dermatology products reported first-quarter results. Volume for the stock topped 2.2 million shares shortly before Thursday’s close, compared to a daily average of 350,000.

The company, based out of Wilmington, Massachusetts, reported total product revenues were $11.1 million for the quarter, representing a $2.4 million or 27% year-over-year improvement, and experienced a net loss on a GAAP basis of $600,000 or $0.02 per common share for the first quarter of 2011, compared to a net loss of $400,000 or $0.02 per common share in the first quarter of 2010.

According to DUSA Chief Executive Officer Robert Doman, “We are off to a great start in 2011. Continued growth of our core domestic PDT revenues, as well as record gross margins, drove significant year-over-year improvement in our non-GAAP profitability and cash flow.” Doman concluded, “The results of the quarter are even more impressive given the fact that they followed our record performance of the fourth quarter of 2010.”

DUSA Pharmaceuticals, Inc. is an integrated dermatology pharmaceutical company focused primarily on the development and marketing of its Levulan® PDT technology platform, and other dermatology products. Levulan® Kerastick® for topical solution plus DUSA’s BLU-U® Blue Light Photodynamic Therapy Illuminator is currently approved for the treatment of minimally to moderately thick actinic keratoses (AKs) of the face or scalp.


Kendle International (KNDL) stocks soar on news of acquisition

Posted on Thursday, May 5th, 2011

Kendle International Inc. (Nasdaq: KNDL) shares rose 57.8% Thursday to $14.99, a day after INC Research LLC said it would acquire the clinical research group for $232 million, or $15.25 a share. Volume for the stock was 3.2 million in the just the first hour of trading, compared to an all-day average around 158,000.

The purchase price represents a 60.5% premium over Kendle’s closing share price on May 4, and a 51.3% premium over the 30-trading day average of Kendle’s closing price. Kendle’s Board of Directors of unanimously approved the transaction, which is expected to close in the third quarter.

Kendle CEO Stephen Cutler commented, “Joining forces with INC Research is the right decision for our customers and shareholders. Combining our highly complementary assets will provide the scale and scope for the combined company to deliver outstanding global teams, therapeutic expertise and operational excellence for clinical trials of all sizes.”

Concurred INC CEO James Ogle, “The combination of INC Research and Kendle will enable us to deliver broader capabilities and reach a critical mass for the emerging drug development outsourcing and alliance partnership models. Together, we bring complementary strengths and expand the breadth and depth of services and expertise that are most valuable to our customers.”

INC based in Raleigh, North Carolina, is a therapeutically focused global contract research organization (CRO) privately held by Avista Capital Partners and Ontario Teachers’ Pension Plan.

Kendle International, headquartered in Cincinnati, is a leading global clinical research organization providing the full range of early- to late-stage clinical development services for the world’s biopharmaceutical industry.


FEI Co. (FEIC) shares get boost on Q2 earnings

Posted on Wednesday, May 4th, 2011

FEI Co. (Nasdaq: FEIC) shares gained 8.9% to $34.59 Wednesday, a day after the high-precision microscope maker projected second-quarter results that topped Wall Street’s forecasts. Volume for the stock was 1.1 million shares shortly before Wednesday’s closing bell, compared to a daily average of 352,000.

The company, based in Hillsboro, Oregon, reported the highest quarterly revenue and earnings in the company’s history. Revenue of $197 million was up 32% compared to $149.1 million in the first quarter of 2010 and up 6% from $186.1 million in the fourth quarter of 2010.

Net income was $22.3 million or $0.54 per diluted share, compared with $4.1 million or $0.11 per diluted share in the first quarter of 2010 and $21.3 million or $0.52 per diluted share in the fourth quarter of 2010.

FEI’s Chief Executive Officer, Don Kania, commented, “Gross margins moderated from the fourth quarter as expected, as operating margins increased. Bookings remained strong with 31% year-over-year growth in both Life Sciences and Research and Industry, and 14% growth in Electronics. For the second quarter, we expect revenue to be strong with improved gross margins, and we continue to expect growth for 2011.”

FEI is a leading diversified scientific instruments company. It is a premier provider of electron and ion-beam microscopes and tools for nanoscale applications globally and across many industries: industrial and academic materials research, life sciences, semiconductors, data storage, natural resources and more.