Posts Tagged ‘buzz stocks’

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Buzz Stock of the Day – D&E Communications (DECC)

Monday, May 11th, 2009

Shares of our Buzz Stock of the Day — D&E Communications (Nasdaq: DECC) — were up more than 52 percent in mid-day trading on the Nasdaq today after news broke that the company would be acquired by U.S. local telephone company Windstream Corp. (NYSE: WIN) for about $330 million.

As part of the deal, D&E shareholders will receive 0.650 shares of Windstream stock and $5 in cash for each share held, Windstream said in a statement.


Based on Windstream stock’s Friday closing price, the deal values D&E Communications at $10.88 per share, a premium of about 61 percent to its Friday closing of $6.75, D&E Communications said in a separate statement.

Pennsylvania-based D&E Communications provides services including high-speed Internet, local and long distance telephone, video and professional IT services.

The acquisiton is expected to close in the second half of 2009 and add free cash flow in the first full year and reduce dividend payout ratio, according to Windstream.

“This merger combines best-in-class products and services of two great integrated communications providers,” said D&E’s president and CEO, James Morozzi The result ensures a strong and vibrant company that is well-positioned to serve our customers, shareholders and employees today as well as in the future.”

According to Windstream president and CEO, Jeff Gardner, the D&E’s reach will help Windstream “significantly expand” its operations in Pennsylvania and “provide the opportunity to grow cash flow, reduce our dividend payout ratio and create value for shareholders and customers.”

Shares of Windstream were down 2.6 percent at mid-day trading on the New York Stock Exchange.

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Posted in Technology Stocks | No Comments »

Buzz Stock of the Day – Vanda Pharmaceuticals (VNDA)

Thursday, May 7th, 2009


Shares of our Buzz Stock of the Day — Vanda Pharmaceuticals, Inc. (Nasdaq: VNDA) — were up as much as 800 percent today on news that the drug maker’s atypical antipsychotic drug, Fanapt was approved by the Food and Drug Administration.

The FDA rejected the drug in July 2008. The letter issued by the FDA at that time raised concerns about the efficacy of Fanapt and urged Vanda to conduct a new clinical trial and collect additional safety data.


Vanda instead chose to resubmit the drug to the FDA last November with additional data from its existing clinical trials. Most investors considered this strategy a long shot. Many analysts either dropped coverage of VNDA or downgraded the stock, and shares of VNDA dropped well below $1, which valued the company at less than its cash on hand.

The FDA’s approval of the drug was based on two studies in which Fanapt performed better than placebo, but the drug doesn’t stack up as well against existing schizophrenia treatments, including Johnson & Johnson’s Risperdal and Pfizer’s Geodon, according to a recent article.

Also benefitting from today’s news was Titan Pharmaceuticals (Pink Sheets: TTNP), which is entitled to receive royalties on global net sales of Fanapt equal to 8% on annual net sales up to $200 million, and 10 percent on annual net sales above $200 million. Shares of TTNP were up as much as 1400 percent at mid-day trading today.

Global sales from the class of atypical antipsychotics exceeded U.S. $20 billion in 2007.

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Posted in Health Care Stocks | No Comments »

Buzz Stock of the Day – True Religion Apparel (TRLG)

Wednesday, May 6th, 2009

Earlier this week, premium jeans brand (and our Buzz Stock of the Day), True Religion Apparel, Inc. (Nasdaq: TRLG), announced a 10 percent jump in its first quarter profit and a 19 percent jump in sales, over the same period last year.

The company also increased its cash balance to $76.5 million and carried no debt ahead, and expanded its gross margin by 380 basis points to 60.9 percent, from 57.1 percent last year. Operating income for the quarter increased 15 percent to $13.1 million, from $11.4 million a year ago, and net profit per share increased to $0.32, from $0.29 a year ago. Earnings were buoyed by a 26 percent increase in international sales and a 96 percent increase in branded retail stores an through e-commerce, offset by an 11 percent decline in sales for the company’s U.S. wholesale segment.

True Religion also expanded its consumer direct segment, growing its total store count to 49 as of March 31st, and 51 stores as of today. According to True Religion Apparel chairman CEO, Jeff Lubel, the “expansion of our consumer direct segment is a key component of our growth strategy.”

CFO, Pete Collins reiterated the company’s guidance of net sales between $290 million and $297 million in 2009.

Shares of TRLG were up as much as 24 percent today, largely because of results from a private survey showing the smallest decline in private-sector employment in six months.

Other retailers that were up in mid-day trading included Abercrombie & Fitch Co. (NYSE: ANF) and Sears Holding Corp. (Nasdaq: SHLD).

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Buzz Stock of the Day – China Architectural Engineering (CAEI)

Monday, May 4th, 2009


China Architectural Engineering, Inc. (Nasdaq: CAEI) specializes in the design, engineering, fabrication and installation of curtain wall systems, roofing systems, steel construction systems, and eco-energy saving building conservation systems.

The company is in three sweet spots in the market–infrastructure stocks, China stocks and green stocks.

In late March, the Zhuhai-based company reported results for 2008. Among the bright spots, a 75 percent increase in contract revenue compared to last year, and a reduction of net loss to $5.9 million, compared with $12 million a year earlier.

Gross profit for the year ended December 31, 2008 was $22.8 million, an increase of $0.5 million, or 2 percent, from $22.3 million for the comparable period of 2007. The company’s gross margin for the year ended December 31, 2008 was 15.0 percent as compared with 25.7 percentfor the year ended December 31, 2007. The decrease was primarily a result of higher raw material, project set-up costs, and labor costs, especially in China.

Shares of CAEI were up more than 22 percent at mid-day trading on the Nasdaq.

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Buzz Stock of the Day – Tree.com (TREE)

Friday, May 1st, 2009


Shares of our Buzz Stock of the Day — Tree.com, Inc. (Nasdaq: TREE) closed almost 40 percent higher todaya fter reporting positive earnings for the first quarter of 2009.

The Charlotte-based company, is the parent of several brands and businesses in the financial services and real estate industries including LendingTree(r), LendingTree Loans(sm), GetSmart(r), Home Loan Center, RealEstate.com, iNest(r), and RealEstate.com, REALTORS(r).


Tree.com, Inc. today reported Q1 earnings of $0.32 per diluted share on revenue of $57.3 million, compared with a net loss of $1.05 per share on revenue of $70.2 million in the same period a year earlier. Revenue for Q1 2009 increased 19 percent sequentially. The company generated EBITDA of nearly $8 million in Q1.

“While we are pleased to deliver positive earnings per share and sequential quarterly improvements in revenue, we continue to benefit from a declining mortgage rate environment,” said Tree.com’ CFO, Matt Packey. “We had concerns towards the middle of Q109, as we saw rates start to tick back up, that we would have to begin spending more heavily on marketing again. However, based on what we have experienced throughout April 2009, and in seeing various market forecasts for continued low rates through the end of 2009, we do not anticipate having to significantly increase our marketing expense to drive additional volume.”

As of March 31, 2009, Tree.com had $81.4 million in cash and cash equivalents compared to $73.6 million as of December 31, 2008. The key drivers behind the increase in cash included $7.9 in EBITDA that was generated, $1.9 million of cash received from the sale of restricted common stock, $3.6 million of positive net working capital changes and a $0.2 million increase related to a decrease in restricted cash. These increases were partially offset by a $4.2 million net cash outflow related to timing of the origination and sale of loans and warehouse line activity, as well as $1.6 million outflow for acquisition payments and capital expenditures in the quarter.

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