Posts Tagged ‘small cap stocks’

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Buzz Stock of the Day – Crosstex Energy, Inc. (XTXI)

Wednesday, June 24th, 2009

Shares of Crosstex Energy, Inc. (Nasdaq: XTXI) were up more than 22 percent today.

Earlier this month, the Dallas-based natural gas transportation and processing company announced an agreement to sell its assets in Mississippi, Alabama and South Texas for $220 million to Southcross Energy LLC. Crosstex’s assets in Mississippi and ALabama consist of about 780 miles of intrastate gathering and transmission pipelines. The South Texas assets consist of about 1,400 miles of intrastate gathering and transmission pipelines.

Proceeds from the sale will be used to pay down more than $200 of the partnership’s debt. This will satisfy the targets for debt reductions in Sept. 2009 and Dec. 2009 established in recent amendments to its debt facilities, Crosstex said in a statement.

“The sale of our Mississippi, Alabama and South Texas assets enables us to strengthen our balance sheet as we pursue our strategy to increase liquidity, reduce leverage and improve profitability,” said Crosstex president and CEO, Barry E. Davis in a news release. “We continue to focus on the growth of our strategic assets in North Texas and Louisiana, as well as our treating business, and remain committed to being a premier provider of midstream energy services.”

More than 92 percent of Motley Fool’s CAPS members believe the stock will outperform the S&P 500 this year.

The Energy Information Administration, in its Annual Energy Outlook 2004, estimates that natural gas demand in the United States could be 31.41 Tcf by the year 2025. That is an increase of 38 percent over 2002 demand levels.

The EIA expects residential energy demand to increase 25 percent between 2002 and 2025. Residential use of natural gas is expected to increase by 1.5 percent per year from 2002 to 2010 and 0.9 percent from 2010 to 2025, increasing 25.5 percent from 2002 to 2025. Residential natural gas consumption accounts for 22 percent of all consumption in the U.S.

Probably the most important long term driver of natural gas demand in the residential sector is future residential heating applications. Between 1991 and 1999, 66 percent of new homes, and 57 percent of multifamily buildings constructed used natural gas heating. In 2003, 70 percent of new single family homes constructed used natural gas. While these new homes being built are generally increasing in size, the increasing efficiency of natural gas furnaces used to heat them compensates for the increased square footage to be heated. In general, however, the increase in the number of new homes using natural gas for heat over the next 20 years is expected to provide a strong driver for residential natural gas demand.

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Posted in Technology Stocks | No Comments »

Buzz Stock of the Day – Alvarion (ALVR)

Tuesday, June 23rd, 2009

Shares of Alvarion Ltd. (Nasdaq: ALVR) were up nearly 10 percent today after the Israeli provider of wireless broadband technology and services announced it was chosen to deploy a nationwide mobile wireless data network in Italy.

“This contract confirms Alvarion’s Mobile WiMAX solution as the most advanced solution in the market, and our leading position as a long-term partner for WiMAX,” said Alvarion’s CEO, Tzvika Friedman.


Given Italy`s 58 million highly-dense population, WiMAX is the most economical and high-performance technology to deliver 4G broadband to businesses and residential subscribers in a wide geographic area, according to Reuters. Alvarion`s 4Motion is an advanced and field-proven solution for delivering innovative WiMAX services for a range of broadband applications in rural, suburban and urban environments.

Lawrence M. Harris, an analyst with CL King & Associates, said in a note to investors the value of the deal is more than $20 million over the next two to three years. “The Aria announcement does not change our near-term forecast for Alvarion, but adds to our confidence in the company’s outlook,” wrote the analyst, who rates Alvarion “accumulate” with a target price of $5.

On June 17, the company said it signed a deal worth more than $100 million over five years with U.S. rural broadband wireless operator Open Range Communications Inc.

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Buzz Stock of the Day – Smith and Wesson (SWHC)

Friday, June 19th, 2009

Shares of Smith and Wesson Holding Corp. (Nasdaq: SWHC) ended the day 22 percent higher on eight-times the gunsmith’s average three-month volume after the company announced $99.5 million in fourth-quarter revenue. The 20 percent boost over the same period last year was above analysts’ forecast of $90.8 million, according to Thomson Reuters.

“Demand for our handguns and tactical rifles remained strong throughout the fourth quarter, as evidenced by our revenue as well as by our backlog balance,” the company said in a statement.

The company is also adding a new stream of revenue to its arsenal. On Thursday, Smith and Wesson Holding Corp. announced a deal to acquire Universal Safety Response, a privately held maker of barriers, gates and other perimeter security related equipment, for $52.5 million in cash and stock.

In a recent news release, Smith and Wesson stated that the deal should bring in revenue of $100 million next year and generate EBITDA of $15 million.

According to a recent report by the Dow Jones Newswires, first-time gun buyers, it’s been said, have rushed to buy firearms ahead of the new administration’s assumed tougher stance on gun-control laws.

The company will release full results for the quarter on June 22, after the market closes. Analysts are looking for earnings per share of 9 cents.

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

Buzz Stock of the Day – GeoPharma, Inc. (GORX)

Tuesday, June 9th, 2009

Shares of GeoPharma, Inc. (Nasdaq: GORX) were up as much as 155 percent at mid-day today.

Despite a 28 percent decrease in third quarter revenues, CEO Mihir Taneja said that the company is confident that it will “end the 2009 fiscal year on a high note” primarily because of the addition of new manufacturing contracts and the emergence of its pharmaceutical business.

Pharmaceutical revenues for the nine months ended December 31st were $1.1 million, a 2722 percent increase over the same period in 2007.

CFO, Carol Dore-Falcone stated that the company hopes to “achieve break even on a cash basis in the final quarter of 2009 fiscal year ending March 31, 2009, and to see continued improvements in our financial results thereafter.”

Earlier this year, the company announced the sale of its majority ownership in its ovarian cancer business for about $2.5 million in cash, and a minority stake in the business, allowing the company to strengthen its financial position and ease “the burden of funding our ovarian cancer business segment,” Taneja said. GeoPharma will still remain a significant partner in the business, with a 40 percent stake.

GeoPharma has three main market segments:

  • Specialty Pharma, which specializes in the formulation of generic drugs for human and veterinary usage and the development of medical devices used by oncologists and other medical professionals.
  • Manufacturing, which manufactures generic drugs nutraceuticals, cosmetics and functional food products
  • Distribution, which packages and distributes the company’s products

In September 2008, Green Coast Capital issued a 12-month price target of $5.00 on GORX, citing the company’s well-defined growth strategy, and FDA approval of its new Largo, FL Cephalosporin facility for the production of the antibiotic, Cephalexin.

Green Coast’s valuation was based on applying a standard 5x gross profit valuation multiple to the company’s current fiscal year gross profit forecast of $20.6 million, and subtracting the company’s current debt of $26.7 million.

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Posted in Health Care Stocks | No Comments »

Buzz Stock of the Day – Antigenics (AGEN)

Wednesday, June 3rd, 2009

Our Buzz Stock of the Day — Antigenics, Inc. (Nasdaq: AGEN) — was the big winner of today’s bio-tech rally.

Earlier this week, Antigenics said an analysis of patient data showed that patients with kidney cancer at intermediate risk of disease recurrence demonstrated an approximately 46 percent lower risk of death when treated with the company’s Oncophage® (vitespen) cancer therapy. Oncophage is currently approved only in Russia. The company has also filed for approval in the European Union.
Shares of Antigenics have risen almost 250% over the last 30 days.

“Demonstration of an overall survival benefit remains the gold standard, and these interim results show that Oncophage has a real promise of improving survival in patients with earlier-stage disease for whom current prognosis remains poor,” said Dr. Christopher Wood, who presented the survival results at the annual meeting of the American Society of Clinical Oncology. “Based on these results, Oncophage offers these patients a potential treatment that extends survival without significant toxicities.”

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