Hot Penny Stocks – Longwei Petroleum Investment Ho (LPH)

Earnings season continues in a big way. This week there are more than 110 S&P 500 companies announcing earnings.

On Tuesday Apple (AAPL) released earnings for the quarter ended on December 30 2011. The company had a 73% increase in sales year over year. Also reporting this week are tech companies Netflix (NFLX) and Yahoo (YHOO).

Keep an eye out for earnings from car manufacturer Ford (F) and fast food giant McDonalds (MCD).

 

QUICK FACTS
Ticker                                  LPH
Industry                               Oil & Gas Refining & Marketing
Recent Price                       $1.48
Market Cap                         $150.1 m
Shares Outstanding            100.8 m
Average Volume                  383,333
Dividend Yield                     N/A
Website                               http://www.longweishihua.com

 

COMPANY DESCRIPTION

Longwei Petroleum is a wholesale petroleum distributor in China. The company’s operations include buying, storing, transporting and selling oil and gas.

The company has two storage facilities in Shanxi province. The storage depots have a combined capacity of 120,000 metric tons. Longwei is the only licensed large scale intermediary in the city of Gujiao, where one of their storage facilities is located.

There are a variety of demands in Shanxi ranging from retail to industrial. Longwei’s clients include coal mining operations, power suppliers, and large, small, and independent gas stations.

The company also owns two retail gas stations and acts as a purchasing intermediary for other Shanxi industrial interests.

 

FINANCIALS

LPH’s most recent quarterly numbers were released on November 9, 2011. 

The company reported revenue of $118.6 million in the quarter. Up from last year’s third quarter revenue of $113.3 million. This is an increase of 4.7%.  Longwei Petroleum also reported a net income of $17.8 million… an increase year-over-year from a net income of $4.9 million.

As of September 30, 2011, the company reported $2.9 million in cash and no long-term debt.

 

KEY METRICS ANALYSIS

Trailing P/E                              2 x
Price / Sales                            0.3 x
Return on Assets                     23.3 %
Insider ownership                    66.6 %
Short Ratio                              1.3 x
Current Ratio                           22.7 x
Total Debt To Equity                N/A

 

RECENT EVENTS

Longwei put out a year end update in early January 2012. The company announced that it put $86.3 million towards the acquisition of an additional Shanxi province facility. The northern Shanxi fuel storage depot has a capacity of 100,000 metric tons and a total purchase price of $110 million.

The company last added storage capacity in 2009 with their 70,000 ton Gujiao facility.

 

MANAGEMENT TEAM

Yongjun Cai – CEO
Michael P. Toups – CFO
Yongping Xue – Secretary, Treasurer, Director
Dora Dong –  Director

 

STOCK ANALYSIS

 

 

 

 

Chart courtesy of stockcharts.com

 

LPH’s 52-week low was $0.82 and the 52-week high was $2.79.  Right now the stock is trading at $1.48.  The 50-day moving average is near $1.32 a share and the 200-day moving average is at $1.26.  The company has a market cap of $150.1 million and 100.8 million shares outstanding.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Hot Penny Stocks – Crown Media Holdings (CRWN)

It’s another exciting week for the market. We’ve got European debt downgrades and year-end earnings!

This week we’ll see big financials like Wells Fargo (WFC), Goldman Sachs (GS) and Bank of America (BAC) reporting. A number of the important tech companies are releasing earnings this week as well. Including International Business Machines (IBM), Intel (INTC), Google (GOOG), and Microsoft (MSFT).

Here’s a small cap to check out while everyone else is distracted by big name earnings.

 

QUICK FACTS
Ticker                            CRWN
Industry                         CATV Systems
Recent Price                  $1.20
Market Cap                    $435.2 m
Shares Outstanding       359.7 m
Average Volume            87,425
Dividend Yield               N/A
Website                         http://ir.crownmedia.net/

 

COMPANY DESCRIPTION

Crown Media Holding’s (CRWN) operates two pay TV stations, the Hallmark Channel and Hallmark Movie Channel. If you haven’t guessed already Crown is a reference to Hallmark’s logo.

The channels offer wholesome family friendly programming including television series, movies, literary classics and miniseries. Most programming content comes from “off network” sources. These are acquired by purchasing a license from third parties.

Generally these off network contracts give Crown rights to broadcast movies for 5 to 8 years and television shows for 3 to 5 years.

At the end of Q1 2011 the Hallmark Channel had over 87.4 million subscribers and Hallmark Movies had 40.3 million. Hallmark Movie Channel is one of the fastest growing in the industry. It has added 25 million subscribers over the last three years.
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Approximately 84% of US paid television subscribers receive the Hallmark Channel.

 

FINANCIALS

CRWN’s most recent quarterly numbers were released on November 3, 2011. 

The company reported revenue of $74 million in the quarter. Up from last year’s third quarter revenue of $62.5 million. This is an increase of 18.4%.  Crown Holdings also reported a net income of $203.3 million… an increase year-over-year from a net income of $5.9 million.

As of September 30, 2011, the company reported $21 million in cash and long-term debt of $505.3 million.

 

KEY METRICS ANALYSIS

Trailing P/E                        1.8 x
Price / Sales                      1.4 x
Return on Assets               8.1 %
Insider ownership               91.8 %
Short Ratio                         32.3 x
Current Ratio                     1.3 x
Total Debt To Equity           233 x

 

RECENT EVENTS

Crown Media made some additions to their financial management team in 2011.

In March the company named Andrew Rooke as their new Executive Vice President and CFO. Before joining the company Rooke worked at a number of News Corporation entities, such as Twentieth Television, MySpace.com and Fox Entertainment Group.

In June Michael Pierce was appointed as a Vice President of Financial Planning and Analysis. Pierce was previously at Paramount Pictures and before that Sony.

 

MANAGEMENT TEAM

William J. Abbott – CEO
Andrew Rooke – CFO
Charles L. Stanford – Executive VP – Legal and Business Affairs
Edward Georger –  Advertising Sales, General Manager – Hallmark Movie Channel

 

STOCK ANALYSIS

 

 

 

 

 

Chart courtesy of stockcharts.com

 

CRWN’ 52-week low was $1.12 and the 52-week high was $3.23.  Right now the stock is trading at $1.21.  The 50-day moving average is near $1.28 a share and the 200-day moving average is at $1.45.  The company has a market cap of $435.2 million and 359.7 million shares outstanding.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Hot Penny Stocks – Gulf Resources (GURE)

 

Judging from the U.S. news coverage one might think New Hampshire was the capital of the world. But the global economy does not revolve around one of the smallest states in the country.

What we should be paying attention to is the highly anticipated earnings season. This week it’s finally getting underway with companies like Alcoa (AA), Supervalu (SVU), Lennar (LAN) and JP Morgan (JPM) reporting.

Here’s a stock to check out while the rest of the country turns their attention to South Carolina.

 

QUICK FACTS
Ticker                                  GURE
Industry                               Basic Materials
Recent Price                       $2.00
Market Cap                         $69.1 m
Shares Outstanding            34.6 m
Average Volume                 125,480
Dividend Yield                     N/A
Website                               www.gulfresourcesinc.cn

 

COMPANY DESCRIPTION

Gulf Resources provides specialty materials for the oil and paper manufacturing industries. Their primary product is bromine, which accounts for 70% of the company’s income. The other 30% comes from Crude Salt and other industrial chemicals. 

Bromine has a number of industrial uses. Brominated flame retardant is the most popular commercialized flame retardant. It is popular for textiles, like fire resistant clothing for fire fighters. But most bromine is used in electronics. It can be found in circuit boards, cables, connecters, and plastic covers.
FINANCIALS

GURE’s most recent quarterly numbers were released on November 14, 2011. 

The company reported revenue of $37.8 million in the quarter. Down from last year’s third quarter revenue of $44.8 million. This is a decrease of 15.6%.  Gulf Resources also reported a net income of $5.6 million… a decrease year-over-year from a net income of $14.9 million.

As of September 30, 2011, the company reported $85.8 million in cash and long-term debt of $3.2 million.

 

KEY METRICS ANALYSIS

Trailing P/E                        1.6 x
Price / Sales                       0.4 x
Return on Assets               17.9 %
Insider ownership               39 %
Short Ratio                         11.6 x
Current Ratio                      6.7 x
Total Debt To Equity           1.3 x

 

RECENT EVENTS

In May 2011 the Chinese government requested to recall the land on one of GURE’s factories. Only the government owns land in China. The government’s stated purpose was to promote civil redevelopment. They offered the company a new parcel of land for lease nearby. The relocated factory began production in December 2011.

Gulf Resources also purchased additional Bromine manufacturing capacity. It was purchased from a private individual in China. The facilities provide an additional 3,000 tons of annual Bromine production. The new capacity increases annual production to 44,547 tons according to an independent international appraisal firm.

 

MANAGEMENT TEAM

Ming Yang – Chairman of the Board
Xiaobin Liu – CEO
Min Li – CFO
Naihui Miao – COO

 

STOCK ANALYSIS

 

 

 

 

 

Chart courtesy of stockcharts.com

Gulf’s 52-week low was $1.51 and the 52-week high was $10.40.  Right now the stock is trading at $2.00.  The 50-day moving average is near $1.97 a share and the 200-day moving average is at $2.45.  The company has a market cap of $69.1 million and 34.6 million shares outstanding.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Hot Penny Stocks – Daqo New Energy (DQ)

It’s finally a new year and a new quarter.  While many people are excited for the New Year, some aren’t so happy.  You see, it also happens to be 2012, the year the world ends according to the Mayan calendar.

Regardless of your stance on this end of the world nonsense, if we do wake up to a post-apocalyptic wasteland one morning, There’s one thing everyone’s going to miss… electricity.

That is, unless you’ve equipped your house with solar panels. Which leads us to this week’s company to put on your radar…

 

QUICK FACTS

Ticker                                      DQ

Industry                                   Semiconductor Equipment & Materials

Recent Price                           $1.83

Market Cap                              $70 m

Shares Outstanding                35.1 m

Average Volume                      248,740

Dividend Yield                          N/A

Website                                   http://www.dgsolar.com

 

COMPANY DESCRIPTION

Daqo New Energy (DQ) primarily manufactures and sells polysilicon, a key component in solar panels. In 2008 the company established Chongqing Daqo, their Chinese operating subsidiary.

In addition the company manufactures solar modules with subsidiary Nanjing Daqo. The company established a U.S. based subsidiary, Daqo Solar Energy North America, in 2009. The North American subsidiary has served as a marketing office for the continent.

Most recent is their Xinjiang Daqo New Energy subsidiary. It was established in February 2011 to expand the company’s polysilicon manufacturing capacity.

FINANCIALS

DQ’s most recent quarterly numbers were released on November 15, 2011.

The company reported revenue of $59.6 million in the quarter. Down from last year’s third quarter revenue of $63.2 million. This is a decrease of 5.8%.  Daqo also reported a net income of $12.4 million… a decrease year-over-year from a net income of $17.9 million.

As of September 30, 2011, the company reported $59.2 million in cash and long-term debt of $63.1 million.

 

 KEY METRICS ANALYSIS

Trailing P/E                                       0.6 x

Price / Sales                                     0.2 x

Return on Assets                             13 %

Insider ownership                              7 %

Short Ratio                                        2.6 x

Current Ratio                                     0.8 x

Total Debt To Equity                           32.4 x

 

RECENT EVENTS

The company received a number of rewards in 2011. In November the company’s CEO, Dr. Gongda Yao, won the “2011 Ernst & Young China Entrepreneur of the Year” award. Then in December the company was included in the “2011 China Cleantech Top 20” list. The award is meant to support the sustainable growth and cleantech sector in China.

Daqo is also in the process of expanding its new Xinjiang production facilities. In August the company announced approval of a $150 million loan from the Bank of China. The 6-year long-term project finance loan will enable the company to continue its “phase-2” expansion of the facility.

 

MANAGEMENT TEAM

Gongda Yao – CEO

Shihua Su – CFO

Liqiang Jin – Senior Vice President

Jian Zhu – Senior Vice President


STOCK ANALYSIS

 

 

 

 

 

Chart Courtesy of StockCharts.com

 

DQ’ 52-week low was $1.41 and the 52-week high was $14.97.  Right now the stock is trading at $1.83.  The 50-day moving average is near $1.88 a share and the 200-day moving average is at $4.41.  The company has a market cap of $64.3 million and 35.1 million shares outstanding.

 

 

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