Posts Tagged ‘investing’

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Buzz Stock of the Day- Universal Display (PANL)

Friday, March 27th, 2009

A paradigm shift in display technology is right around the bend.

Organic Light Emitting Diode (OLED) technology is threatening the Liquid Crystal Display, or LCD, standard because of its flexibility, low power consumption and versatility.

Our Buzz Stock of the Day, Universal Display Corporation (Nasdaq: PANL) is one of the companies leading this change. Universal Display engages in the research, development and commercialization of OLED technologies and materials.

Unlike LCD panels, where a backlight sends light through thin-filmed transistors reflect off the liquid crystals, OLED technology actually lights up the pixels by sending a current through the thin-filmed transistors.

Here’s a clip that details some of the advantages of Universal Display’s OLED display technologies:

With more 750 patents, Universal Display intends to continue to employ a licensing model, rather than become a manufacturer.

The strategy seems to be paying off. Universal Display’s Q4 sales clocked in at $3.6 million, a 24 percent increase over the same period last year. The company’s net loss per-share grew from $0.08 to $0.11.

The good news is that the company’s breakthrough technology is gaining traction. Some of the biggest names in display technology including Samsung, LG Display, Sony, and Nokia all showcased their latest OLED prototypes at this year’s CES, and mostly all developers of OLED use some of Universal Display’s intellectual property.

Universal Display has also been working with the U.S. Army for years to produce a low-power, wearable display that can fit it tight spots–why? Because it’s bendable. The prototype, manufactured by LG Display and L-3 Display Systems, is a grainy, monochrome proof of concept, but the full-color and truly flexible versions are getting closer to becoming a reality every day, according to a recent article.

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Posted in Technology Stocks | 3 Comments »

Buzz Stock of the Day- Republic Airways Holdings (RJET)

Thursday, March 26th, 2009


The Russell 2000 (NYSEArca: IWM) small-cap index was up more than 3 percent this afternoon, as investor sentiment in small-caps was buoyed after Treasury Secretary Tim Geithner unveiled a financial plan to the House Financial Services Committee that outlined the Obama administration’s proposal for an exhaustive overhaul of financial regulations.

Among the big winners was our Buzz Stock of the Day, Republic Airways Holdings, Inc. (Nasdaq: RJET).

The Indianapolis-based airline holding company just acquired 50 percent of Hawaiian airline, Mokulele. Republic paid roughly $3 million in cash, and coverted $3 million of its $8 million loan to Mokulele, for a 50 percent stake in the company.

Republic Airways Holdings also owns Chautaqua Airlines, Republic Airlines and Shuttle America, and offers scheduled passenger service on 1,300 flights daily to 104 cities in 36 states, Canada, Mexico, and Jamaica.

In September 2008, Midwest Airlines hired Republic Airways Holdings Inc. to operate Midwest Connect flights previously flown under the Midwest Airlines name. The move came after Republic agreed to provide up to $25 million in financing to Midwest, which helped prevent a Chapter 11 bankruptcy filing.

We like RJET because we think it’s a resilient company. Despite a huge downturn in travel, Republic’s has only shed 3 percent in it’s year-over-year quarterly revenue growth–substantially less than competitors ExpressJet Holdings, Inc. (NYSE: XJT) (-63.2 percent), Mesa Air Group, Inc. (Nasdaq: MESA) (-18.8 percent) and SkyWest, Inc. (Nasdaq: SKYW) (-13 percent). Republic Airways Holdings also has a healthier operating margin than most of its competitors, and earned about $84 million, or $2.40 a share on revenue of$1.5 billion.

RJET shares have taken a beating this year, like most other airline stocks. Shares are down almost 80 percent and trade near their 52-week low.

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Buzz Stock of the Day- China Sunergy Co. (CSUN)

Friday, March 20th, 2009

Declines in inventory value have plagued the results of solar companies including LDK Solar Co. Ltd. (NYSE: LDK) and Canadian Solar, Inc. (Nasdaq: CSIQ), both of which have all felt the crunch from the write downs they have to take because of cancellations and postponed orders that have resulted from current market conditions.

Another key contributor to the lackluster performance of solar companies is a pullback in solar subsidies in Germany and Spain and a strengthening U.S. dollar against the euro, which has sent prices of solar products tumbling.

Our Buzz Stock of the Day, China Sunergy Co., Ltd. (Nasdaq: CSUN) is no exception.

“China Sunergy has faced the same unprecedented and volatile environment as many of our peers across the solar sector, as a result of the ongoing global financial crisis,” according to China Sunergy Chief Executive Dr. Allen Wang.

Excluding items, China Sunergy reported an adjusted loss of 42 cents per ADS, wider than analysts’ estimates of a loss of 32 cents. Revenue fell nearly 40 percent to $43.2 million. Weak demand and prices hit China Sunergy’s gross margins, which came in at negative 33.1 percent for the quarter.

But “expectations were pretty low,” according to Jeffries’ analyst Paul Clegg, who doubted that investors would be”deeply disappointed relative to expectation.”

Clegg said there was a lot of uncertainty on when demand in the end markets would recover and investors “would be well served to take a conservative outlook in 2009.”

Despite the dim results, there is a ray of sunshine in China Sunergy’s future.

The company said it expects margins to be “definitively” positive in the second quarter and sees it in the range of 15 percent to 20 percent for the second half of the year.

The number of solar cells the company shipped in 2008 increased 45 percent over 2007. China Sunergy said it will continue to focus on growing sales of its high efficiency cells as a percentage of total shipments to benefit from increased margins.

China Sunergy remained cash flow positive despite a 39 percent decline in overall shipments, to 14.1 megawatts (MW). The company expects to shipments of between 150 MW to 200 MW for 2009.

“We expect conditions to remain difficult in the coming quarter, however we retain our belief and confidence that our advanced solar cell offerings, coupled with our R&D, engineering and manufacturing capabilities will ensure the Company fulfills its long-term potential,” Wang said.

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Buzz Stock of the Day: ITT Corp. (ITT)

Wednesday, March 18th, 2009

Last week, engineering giant, ITT Corp. (NYSE: ITT) announced a $317 million order from the U.S. Naval Systems Command for the company’s vehicle receiver jammers–vehicle-mounted systems that prevent the detonation of improvised explosive devices, or IEDs.

According to a recent news release, the contract has the potential to swell to $1.7 billion.

In addition to its work with the armed forces, ITT has a great foothold in the infrastructure market, particularly in water treatment.

ITT’s vice president of business development, Colin Sabol recently stated: “Communities around the country, from major metropolitan cities to rural small towns, are now working to secure funds to launch much-needed infrastructure projects, such as drinking water and wastewater projects,” said Colin Sabol, vice president of business development for ITT’s Fluid Technology business. “ITT has extensive experience with the planning and creation of such projects, and measuring how project success produces benefits to the health and economy of a community.”

ITT Corp.’s stock has outperformed the S&P 500 over the last 52 weeks. With a trailing p/e of 9 (which is in line with many of the company’s competitors), operating cash flow of about $1 billion (ttm), quarterly revenue growth (yoy) of more than 16 percent, and shares trading near their 52-week low, this could be a good time to consider ITT Corp. for your portfolio.

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Buzz Stock of the Day: Pentair (PNR)

Tuesday, March 17th, 2009

Last month, Sterne, Agee & Leach analyst Michael Coleman raised his price target to $23, from $20 for the Minneapolis-based Pentair, Inc. (NYSE: PNR).

Coleman stated in a note to investors that Pentair, which manufactures water treatment and storage systems for customers around the world, “is better positioned than many industrial companies to achieve relative earnings outperformance in 2009 due to significant (and early) restructuring actions taken year-to-date and in (the fourth quarter).” Management expects its cost-cutting measures from workforce reductions alone to produce annual savings of $85 million starting this year, growing to $95 million to $100 million in 2010.

Pentair has a trailing P/E of 8.7, which is below the industry average of 9.1–a possible indication that shares may be undervalued at current levels. The company’s stock outperformed S&P 500 over the last year. Pentair has an operating margin of 11.6 percent, which is in line with several of the company’s competitors’ operating margins. Pentair also pays a dividend, which it has regularly increased for more than three decades. The company’s full-year guidance calls for earnings between $1.70 and $2.00 per share.

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