Hot Penny Stocks – Kingold Jewelry (KGJI)

The ADP Employment Report for the month of January 2012 was released on Tuesday morning. Their current estimate is 175,000 jobs created in the month of January. That’s slightly lower than the consensus forecast of 185,000.

Despite the bad news the market continues to hold strong.

Earnings season continues this week with Amazon (AMZN), Exxon Mobile (XOM), and The New York Times (NYT) all reporting. 

 

QUICK FACTS
Ticker                                        KGJI
Industry                                     Gold
Recent Price                             $1.57
Market Cap                               $77.3 m
Shares Outstanding                  50.2 m
Average Volume                       113,300
Dividend Yield                           N/A
Website                                     http://www.kingoldjewelry.com

 

COMPANY DESCRIPTION

Kingold Jewelry (KGJI) is a Chinese company in the business of designing, producing and selling 24-karat gold jewelry and other products.

Kingold sells their finished products wholesale and retail. Those include jewelry, Chinese ornaments, and gold bars. Some of their designs are made in-house. Others are customized products made for retail chains.

In 2001 the Bank of China liberalized their gold policy. They loosened their grip on gold imports and ownership which created massive new demand. Kingold was founded the following year to capitalize on the surging demand.

Jewelry holds an important place in Chinese society today. One of the first things to go after the Chinese Revolution was personal wealth, such as jewelry. Now that gold ownership has been liberalized, jewelry has become a symbol of the expanding middle class.

 

FINANCIALS

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

The company reported revenue of $210.7 million in the quarter. Up from last year’s third quarter revenue of $169.7 million. This is an increase of 24.2%.  Kingold also reported a net income of $9.7 million… an increase year-over-year from a net income of $4.8 million.

As of September 30, 2011, the company reported $3.2 million in cash and $400,000 in long term debt.

 

KEY METRICS ANALYSIS

Trailing P/E                               2.8 x
Price / Sales                             0.1 x
Return on Assets                      24.4 %
Insider ownership                     43.6 %
Short Ratio                               1.7 x
Current Ratio                            23.6 x
Total Debt To Equity                  0.3 x

 

RECENT EVENTS

On January 16, 2012 Kingold announced the opening of their first company owned direct retail store. The company’s new retail facility is located in Wuhan, one of the country’s largest cities.

The company chose to open the store in the ritzy Wuhan World Trade Plaza Mall. The 80,000 square meter shopping mall is the largest in the Hubei province. The company estimates that 60% of the city’s jewelry sales take place in this shopping plaza. 

The store was opened just ahead of the Chinese New Year holiday on January 23.

This is Kingold’s second step towards reaching out directly to consumers. In 2011 the company launched an e-commerce website, http://m-gold.com.cn.

 

MANAGEMENT TEAM

Zhihong Jia – CEO
Bin Liu – CFO
Bin Zhao – General Manager, Director
H. David Sherman – Independent Director

 

STOCK ANALYSIS

 

 

 

 

 

Chart courtesy of stockcharts.com

 

KGJI’s 52-week low was $0.88 and the 52-week high was $3.15.  Right now the stock is trading at $1.57.  The 50-day moving average is near $1.42 a share and the 200-day moving average is at $1.43.  The company has a market cap of $77.3 million and 50.2 million shares outstanding.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Hot Penny Stocks – ValueVision Media (VVTV)

The Santa Claus rally seems to have taken hold.  Why the improvement?

Maybe it’s progress on the European situation, or renewed faith in the economic future of the US.  Or maybe it’s good holiday feelings brought on by all the increased consumer spending.

Whatever the reason, here’s an electronic retailer with a unique sales strategy for you to put on your radar.

 

QUICK FACTS

Ticker                                      VVTV

Industry                                   Catalog & Mail Order Houses

Recent Price                           $1.92

Market Cap                              $93.2 m

Shares Outstanding                48.6 m

Average Volume                      336,571

Dividend Yield                          N/A

Website                                   http://www.shopnbc.com

 

COMPANY DESCRIPTION

ValueVision Media (VVTV) is in a special niche all its own. The company is half broadcaster half retailer. ValueVision has adopted the name ShopNBC for their 24-hour network and website.

The company has an exclusive trademark agreement with NBC Universal. The current contract allows VVTV to use the name through May 2012.

They use a standard shopping network type of setup. A host and sometimes a guest displays and talks about a product. There’s scrolling information and a number for customers to call and order.

The company sells a variety of market brands plus their own private product lines.           .

 

FINANCIALS

VVTV’s most recent quarterly numbers were released on December 8, 2011.

The company reported revenue of $135.2 million in the quarter. Up from last year’s third quarter revenue of $132.3 million. This is an increase of 2.2%.  ValueVision also reported a net loss of $6.4 million… a decrease year-over-year from a net loss of $5.8 million.

As of October 29, 2011, the company reported $27.7 million in cash and long-term debt of $25 million.

 

 KEY METRICS ANALYSIS

Trailing P/E                                       N/A

Price / Sales                                     0.15 x

Return on Assets                            -1.7 %

Insider ownership                             25.9 %

Short Ratio                                       3.3 x

Current Ratio                                    1.7 x

Total Debt To Equity                          23 x

 

RECENT EVENTS

The company has added a number of well-known brands in Q4. They include Calvin Klein, Hartmann luggage, and Brooks Brothers.

All of these big name brands get their own hour long debut show and event, including lots of press ahead of time.

VVTV also held its first 24-hour holiday cooking event in October 2011. It included some special value sales and a long list of celebrity chefs as well as 20 new items and three brand launches.

 

MANAGEMENT TEAM

Keith R Stewart – CEO

William J McGrath – CFO

G. Robert Ayd – President

Jean-Guillaume Sabatier – Senior VP Product Planning


STOCK ANALYSIS

 

 

 

 

 

Chart Courtesy of StockCharts.com

 

VVTV’ 52-week low was $1.64 and the 52-week high was $8.73.  Right now the stock is trading at $1.92.  The 50-day moving average is near $1.99 a share and the 200-day moving average is at $4.36.  The company has a market cap of $93.2 million and 48.6 million shares outstanding.

 

 

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Hot Penny Stocks – K-Swiss Inc. (KSWS)

Markets have had an impressive couple of weeks. The Dow was at 12,196 at the close on Wednesday. That’s up from a healthy 12,045 a week ago.

Remember – two weeks ago the Dow closed at 11,257. That’s an increase of almost 1,000 points in half a month!

As a result there’s a lot of food for thought out there on the equities. So take a timeout from all that news. We’ve got another company for your radar.

 

QUICK FACTS

Ticker                                     KSWS

Industry                                  Textile – Apparel Footwear & Accessories

Recent Price                          $2.75

Market Cap                             $97.9 m

Shares Outstanding               35.6 m

Average Volume                     215,371

Dividend Yield                         N/A

Website                                  http://www.kswiss.com

 

COMPANY DESCRIPTION

K-Swiss (KSWS) is a sports equipment company. They primarily design, develop and market footwear, apparel and accessories.

On top of their K-Swiss brand are a couple of specialty names. Like Palladium, a brand of footwear for users going to exotic rough locales.

They also have Form Athletics, an extensive line of martial arts equipment.

The company uses a sales force of representatives and sales executives. K-Swiss primarily sells gear to sporting goods stores.

 

FINANCIALS

K-Swiss’ third quarter numbers were released on November 3, 2011.

The company reported revenue of $80.5 million in the third quarter. Up from last year’s third quarter revenue of $61.5 million. This is an increase of 30.8%.  KSWS also reported a net loss of $15.4 million… an improvement year-over-year from a loss of $28.3 million.

As of September 30, 2011, the company reported $37.4 million in cash and long-term debt of $155,000.

 

 KEY METRICS ANALYSIS

Trailing P/E                                       N/A

Price / Sales                                     0.36 x

Return on Assets                            -13.7%

Insider ownership                             1 %

Short Ratio                                        5.6 x

Current Ratio                                    4.1 x

Total Debt To Equity                          8.1 x

 

RECENT EVENTS

Most of the news coming out of K-Swiss is about their sponsored athletes and the occasional announcement regarding their SEC filings.

Their most recent news release is about the Marines Ironman 70.3 World Championship. Three of their sponsored athletes finished in the top 5 of that race. Wearing K-Swiss gear of course.

Around the same time in September they also announced a new ad campaign. The campaign includes well-known trainer Jillian Michaels and comedian Kaitlin Olson.

The campaign was carried out in partnership with Lady Footlocker.

 

MANAGEMENT TEAM

Steven Nichols – CEO

George Powlick – CFO

Edward Flora – COO

David Nichols – Executive VP


STOCK ANALYSIS

 

 

 

 

 

Chart Courtesy of StockCharts.com

 

KSWS’ 52-week low was $2.56 and the 52-week high was $13.04.  Right now the stock is trading at $2.75.  The 50-day moving average is near $3.47 a share and the 200-day moving average is at $6.72.  The company has a market cap of $98.3 million and 35.6 million shares outstanding.

 

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Drug Manufacturer Drawing Attention

It’s shaping up to be another rollercoaster week in the markets. At the end of Tuesday the DOW was up almost 300 points from its low on Monday. Then Wednesday opened to a massive selloff.

Despite the volatility there are some interesting value stocks out there to keep on your radar.

 

QUICK FACTS

Ticker                                      ALTH

Industry                                   Drug Manufacturer – Other

Recent Price                          $1.47

Market Cap                             $155.4 m

Shares Outstanding               105.7 m

Average Volume                      257,446

Dividend Yield                          N/A

Website                                   http://www.allos.com

 

COMPANY DESCRIPTION

Allos Therapeutics (ALTH) is a biopharmaceutical company that develops, manufactures and markets cancer treatments. More specifically they focus on FOLOTYN, otherwise known as a pralatrexate injection.

Pralatrexate is a “small molecule” chemotherapy treatment that received FDA approval in 2009. This type of treatment is primarily for people with serious cases of T-cell lymphoma. FOLOTYN is administered during an outpatient procedure and delivered with an IV.

The company sells their FOLOYTN to wholesale distributors who then sell it to healthcare service providers.

 

FINANCIALS

Allos’ third quarter numbers were just released a week ago.

The company reported revenue of $14.2 million in the third quarter, down from last quarter’s revenue of $39.1 million.  This is a decrease of 66.3% from last quarter.  ALTH also reported a net loss of $11.2 million… a sharp drop from last quarter’s profit of $2.1 million.

As of September 30, 2011, the company reported $69.6 million in cash and no long term debt.

 

 KEY METRICS ANALYSIS

Trailing P/E                                       N/A

Price / Sales                                     2.3 x

Return on Assets                             N/A

Insider ownership                             1.6%

Short Ratio                                        5.5 x

Current Ratio                                    4.3 x

Total Debt To Equity                           N/A

 

RECENT EVENTS

During the third quarter Allos was nearly bought up by AMAG Pharmaceuticals Inc. (AMAG). The deal planned in October would have been a buyout at $2.44 a share. Another company was temporarily in the bidding at $2.20 a share but they pulled their offer off the table. ALTH shareholders would have received 0.12 shares of AMAG for each share of ALTH they owned.

Then later in October AMAG’s shareholders voted against the idea. That may have contributed to the resignation of AMAG’s CEO on November 4. The silver lining for Allos is the $2 million breakup fee they are owed by AMAG.

 

MANAGEMENT TEAM

Paul L. Berns – CEO

Bruce K. Bennett – Vice President, Pharmaceutical Operations

David C. Clark – Vice President, Finance and Treasurer

Bruce A. Goldsmith, Ph.D. – Senior Vice President, Corporate Development


STOCK ANALYSIS

 

 

 

 

 

 

Chart Courtesy of StockCharts.com

 

ALTH’ 52-week low was $1.28 and the 52-week high was $4.81.  Right now the stock is trading at $1.47.  The 50-day moving average is near $1.60 a share and the 200-day moving average is at $1.94.  The company has a market cap of $155.4 million and 105.7 million shares outstanding.

 

 

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Making Inroads Into Handheld Markets

It has been kind of a turbulent year for U.S. companies. But it’s always nice to see a company really starting to perform at the end of the year.

That’s the story of today’s company. They’ve adjusted their business plan to strengthen the long term viability of the company. Now they’re coming back stronger than ever.

 

QUICK FACTS

Ticker                                     ACLS

Industry                                  Information Technology Services

Recent Price                         $1.31

Market Cap                            $139.4 m

Shares Outstanding              106.42 m

Average Volume                     240,322

Dividend Yield                         N/A

Website                                  http://www.axcelis.com /

 

COMPANY DESCRIPTION

Axcelis Technologies (ACLS) is a Massachusetts based semiconductor company. They design and manufacture processing equipment, such as ion implantation devices, which are integral for certain types of chip fabrication.

So what is ion implantation? It’s pretty much using modern technology to speed up a bunch of ions and then launching them into a solid surface. Much like the crash tests you see in automobile commercials. The purpose of this is to actually change the physical, chemical or electrical properties of the solid.

The Ion Implanter side of the business brought in about $72.1 million in the quarter ended June 30 2011. It is the largest segment of Axcelis’ income statement, accounting for 77.2% of revenue.

 

FINANCIALS

This is not a company with a complicated statement of operations. Their revenue for the quarter was up from approximately $58.2 million last year to $93.4 million this year. Cost of revenue as a percent of sales has stayed pretty steady.

And even when the company’s revenue was up over 60% operating expenses were only up 18.6%.

Last year the company was running at a loss of $15.6 million, now they have a net income of $6 million.

Want another simplifying factor? This is a company with zero debt.

 

KEY METRICS ANALYSIS

Trailing P/E                                        12 x

Price / Sales                                      0.4 x

Return on Assets                               3%

Insider ownership                              1.2%

Short Ratio                                         7.6 x

Current Ratio                                     4.35 x

Total Debt To Equity                           N/A

 

RECENT EVENTS

The company took the last downturn as an opportunity to retool their entire product line. Their revenues have doubled, margins are now positive, and they’ve been profitable since Q4 2010.

Management values the world’s market for ion implantation to be about a billion dollars. There are three different segments in this market, high current, which accounts for 50%, mid-current for 35% and high energy for 15%.

ACLS recently released their new product, the Optima HDxt, which is a high current ion implanter. Management thinks offering this new product for the largest section of the market will increase their market share.

Another exciting thing about the HDxt line is what the company dubs ‘damage engineering.’ To put it in layman’s terms the ion implantation is done at a lower temperature. The purpose is to lower current leakage on better performing low power devices.

This is especially attractive for chip makers developing products for hand held devices. Catering to the tablet and smart phone industry is a good place to be right now and management knows it.

 

MANAGEMENT TEAM

Mary G Puma – CEO

Jay Zager – Executive VP and CFO

Bill Bintz – Executive VP of Engineering and Marketing

Kevin Brewer – Executive VP Manufacturing Operations


STOCK ANALYSIS

 

 

 

 

 

Chart Courtesy of StockCharts.com

 

ACLS has had a bumpy ride in 2011, despite the fact that their financials have drastically improved.

ACLS’ 52-week low was $1.00 and the 52-week high was $3.77.  Right now the stock is trading at $1.31.  The 50-day moving average is near $1.27 a share and the 200-day moving average is at $1.59.  The company has a market cap of $139.4 million and 106.4 million shares outstanding.

 

 

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A Golden Opportunity For Gold!

Gold prices are going crazy, and it’s only going to get better.  The threat of inflation, currency collapse, and the potential end of the EuroZone will all push gold higher.  It’s the “go to” investment for safety these days.

This week we’re looking at mining and mineral stocks. Here’s a small gold producer you should take a look at.

 

QUICK FACTS

Ticker                                      JAG

Industry                                   Gold

Recent Price                            $6.18

Market Cap                              $521.4 m

Shares Outstanding                  84.4 m

Average Volume                       425,283

Dividend Yield                          N/A

Website                                  http://www.jaguarmining.com/

 

COMPANY DESCRIPTION

Jaguar Mining (JAG) primarily operates in the Brazilian state of Minas Gerais. They own and operate three mines in the ‘Iron Quadrangle.’ That region has a renowned greenstone belt, which often contains gold, silver, copper, zinc and lead.

They produce gold at the Turmalina, Paciência and Caeté mines.

Jaguar has also been exploring in the state of Maranhão where they control 293,000 acres.

How good are their operations?  Consider this… they sold 40,184 ounces of gold in the second quarter of 2011.

 

FINANCIALS

Jaguar is in the middle of a financial turnaround. Their revenue in the first half of 2011 was up nearly 50%.

Their adjusted net income improved from a loss in the first half of 2010 to profits of $17.4 million.  And their operating cash flow is up approximately 207%.  Talk about a turnaround!

Before the turnaround this company had some issues with efficiency and middle management. It looks like their focused effort on fixing these issues has paid off. Despite unfavorable currency conversion rates the company still managed to cut costs at some of their mines.

For example, at their Paciência property each ounce of gold cost about $700 in Q2-10. Jaguar’s got that down to $637 in Q2-2011.

The other obvious boost to this business is the price of gold. Jaguar’s ‘Realized Gold Price’ was $1,148 in the first half of last year. This year it was $1,447.

Couple that with their 18.5% increase in ounces sold and you’ve got a pretty rosy outlook.

 

KEY METRICS ANALYSIS

Trailing P/E                                       N/A

Price / Sales                                     2.6 x

Return on Assets                               N/A

Insider ownership                               3.25%

Short Ratio                                        8.6 x

Current Ratio                                     2.4 x

Total Debt To Equity                           N/A

 

RECENT EVENTS

Jaguar has been working towards establishing the Gurupi project and mine. Located in the northeastern state of Maranhão, it’s expected to produce nearly 150,000 ounces annually.

They’ve got a 30,000 meter exploratory hole being drilled. They’re also working on dragging a glorified extension cord out to the property. Not to mention the tiny village they had to relocate.

That all may seem like a lot of work, but it hasn’t stopped other companies from envying the property. According to management, Jaguar’s been approached by potential investors who want in on Gurupi. Management’s considering the offers as a potential option for additional funding.

 

MANAGEMENT TEAM

Daniel R. Titcomb – President and CEO

James M. Roller – CFO

Lúcio Cardoso – COO

Adriano Luiz do Nascimento – VP of Exploration & Engineering


STOCK ANALYSIS

 

 

 

 

 

 

Chart Courtesy of StockCharts.com

This stock tends to bounce around a lot. But the fundamentals have really improved over the past year and a half. And the Gurupi project looks like it could be a big win once it starts producing. If gold prices continue to stay at this inflated level this company is going to have some great results.

TC’s 52-week low was $4.11 and the 52-week high was $7.90.  Right now the stock is trading at $6.18.  The 50-day moving average is near $5.39 a share and the 200-day moving average is at $5.16.  The company has a market cap of $521.4 million and 84.4 million shares outstanding.

 

 

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It’s Time To Buy Low…

It’s perfectly understandable that people are scared right now. It’s a frightening market. But there’s one obvious benefit.  All we have to do is remember the golden rule of investing.

Buy low and sell high.

Despite the negative news, this is a value feeding frenzy.  Companies by the bucketful are hitting 52-week lows.  While that’s bad news for current owners, if you’re looking to scoop up great companies on the cheap, now’s the time.

Here’s one to take a look at.

 

QUICK FACTS

Ticker                                      TC

Industry                                    Industrial Metals & Minerals

Recent Price                             $7.62

Market Cap                               $1.2 B

Shares Outstanding                   167.9 m

Average Volume                        889,580

Dividend Yield                           N/A

Website                                    http://www.thompsoncreekmetals.com/

 

COMPANY DESCRIPTION

Thompson Creek Metals Company (TC) is named after their flagship mine. The Thompson Creek Mine is flush with molybdenum.  It’s a corrosive resistant mineral with an extremely high melting point.

Because of its unique features, it has countless industrial applications.

Thompson Creek also holds a 75% stake in the Endako Mine near Prince George, British Colombia. That one is also a molybdenum mine.

In addition to the mines, Thompson also owns the Langeloth Metallurgical Facility. They use the facility to ‘roast’ the molybdenum and turn it into an industrial grade oxide.

The Company also has four other exploratory properties in Canada.

 

FINANCIALS

Thompson’s financials look strong and are getting stronger.

Their revenue for Q2 was up 28.6% to 190.9 million.  Their six months’ revenue is up over 44% reaching an astounding $397.6 million.

The company is making good money.  Net income for the quarter reached $116.8 million or $0.70 cents per share.

Cash flow is strong with the company generating over $53 million in the second quarter.  Best of all, the Thompson Creek is sitting on a treasure chest filled with $560 million in cash!

 

KEY METRICS ANALYSIS

Trailing P/E                                       5.4

Price / Sales                                     1.7

Return on Assets                               7.2%

Insider ownership                               1%

Short Ratio                                        6.5 x

Current Ratio                                     5.5 x

Total Debt To Equity                           1.1 x

 

RECENT EVENTS

Thompson has been working towards diversifying their minerals.   They’re expanding beyond molybdenum into traditional metals like copper, and gold.  Perfect timing if you ask me.

The company is in the process of development and construction of the Mt. Milligan mine. They describe it as a conventional ‘truck-shovel’ open pit mine. It will include a processing plant with a capacity of 66,000 tons a day.

Thompson projects average production of 81 million pounds of copper and 194,500 ounces of gold a year. The mine has a projected life of 22 years.

 

MANAGEMENT TEAM

Kevin Loughrey – Chairman and CEO

Scott Shellhaas – COO and President

Pamela L. Saxton – CFO and Executive Vice President

Mark Wilson – CCO and Executive Vice President


STOCK ANALYSIS

 

 

 

 

 

 

Chart Courtesy of StockCharts.com

 

Sales growth was big in 2011. And the company is about to diversify into gold and copper. Things are looking good for this company, and it’s had a strong year. Yet this company hit its 52-week low a couple of weeks ago.

Since that low it’s gone up .54 cents. The only thing holding this stock back is market worries. Once those dissolve get ready to see TC come back with a vengeance.

TC’s 52-week low was $7.05 and the 52-week high was $16.06.  Right now the stock is trading at $7.62.  The 50-day moving average is near $8.95 a share and the 200-day moving average is at $11.08.  The company has a market cap of $1.27 billion and 167.9 million shares outstanding.

 

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Invest To Save The World

Cancer is one of the most destructive forces in the western world today.  Investing in pharmaceutical companies that specialize in oncology pays an extra dividend.  Namely the dividend of good will.  I’m not saying invest in a fiscally unsound company just because they fight cancer.  But it’s nice when you can find a healthy company developing treatments to combat this scourge.

 

QUICK FACTS

Ticker                                     SUPG

Industry                                  Drug Manufacturer

Recent Price                           $3.14

Market Cap                             $189 m

Shares Outstanding                 60.4 m

Average Volume                      165,636

Dividend Yield                          N/A

Website                                  http://www.supergen.com

 

COMPANY DESCRIPTION

SuperGen (SUPG) is a pharmaceutical company that specializes in oncology.  The company generally acquires medications developed by other companies and improves upon them.  For example, the company purchased Montigen Pharmaceuticals a couple of years ago.

From that acquisition the company has acquired and further developed Amuvatinib, a DNA repairing drug.  The company primarily develops drugs that target cancer on a small molecular level.

Their two marketed products, Dacogen and Nipent, bring in most of their revenue.  And that revenue is almost entirely derived from royalty and milestone payments.

Right now the story of SuperGen is a story of two companies.  That’s because SuperGen and a British bioscience firm, Astex Therapeutics, have decided to merge.

 

FINANCIALS

Royalty revenue in Q1 was up from last year by about $2.7 million.  Net Income increased about 17.5%.  The company expects to receive about $55 million in royalty revenue this year from Dacogen.

At the end of Q1 the company had approximately $136 million in assets.  In a recent investor presentation CEO Dr. James Manuso said that the company had been debt free for years.  And SuperGen hasn’t needed to raise money since 2004.

This company seems to take pride in not living beyond their means.  The company that they’re merging with, Astex Therapeutics, is also ‘cash flow neutral.’  They haven’t needed additional funding since 2003.

 

KEY METRICS ANALYSIS

Trailing P/E                                      11.2

Price / Sales                                     3.2

Return on Assets                               8%

Insider ownership                               4.6%

Short Ratio                                        7.9x

Current Ratio                                     16.5x

Total Debt To Equity                           N/A

 

RECENT EVENTS

SuperGen recently announced a merger with Astex Therapeutics.  This deal will net the company immediate partnerships with five of the world’s leading pharmaceutical companies.  Management estimates it could be worth nearly $2 billion in potential milestone revenue.

SuperGen will also gain access to a proprietary drug discovery platform developed by Astex.  Pyramid works at a molecular level to do tests and experiments that were formerly impossible.  This is right up SuperGen’s alley.

Not to mention the more robust clinical structure available for both companies.  Combined, they will have seven drugs in the pipeline.  Four of those drugs are already in Phase II of testing, and three are partnered with big pharmaceuticals.  That means big royalties in the future, but also big costs in Phase III.

The combined company will change its name to Astex Pharmaceuticals, and the NASDAQ ticker will be changed to ASTX.

Astex Therapeutics shareholders are being compensated with 35% of SuperGen’s outstanding equity, as well as $25 million in cash.  Astex’s current owners are also getting $30 million in stock or cash over the next 30 months.

 

MANAGEMENT TEAM

James S. J. Manuso Ph.D – Chairman, President and CEO

Michael Mokentin – CFO, Corporate Secretary

Mohammed Azab M.D. – Chief Medical Officer

 

STOCK ANALYSIS

 

 

 

 

 

 

Chart Courtesy of StockCharts.com

 

As you can see this stock bounces around a lot.  They’re not huge swings, generally between $3.30 and $2.50.  This stock has also spent a fair amount of time above the 50-day moving average.  Currently it’s trading right around the 50-day.

SUPG’s 52-week low was $1.71 and the 52-week high was $3.35.  Right now the stock is trading at $3.14.  The 50-day moving average is near $3.01 a share and the 200-day moving average is at $2.89.  The company has a market cap of $189 million and 60.4 million shares outstanding.

 

 

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A New Company On The NASDAQ

Today’s On the Radar report focuses on a company who is stepping up in the world.  They just up-listed their shares to the NASDAQ on June 27.  They’ve been growing like a weed, doubling in size over the last few quarters, and their products are in high demand right now.

Take a closer look at this exciting company…

 

QUICK FACTS

Ticker                                     ATNY

Industry                                  Semiconductors

Recent Price                           $7.10

Market Cap                             $348m

Shares Outstanding                 49 m

Average Volume                      N/A

Dividend Yield                         N/A

Website                                 http://www.apitech.com/

 

COMPANY DESCRIPTION

API Technologies (ATNY) is primarily a government contractor.  The company and their subsidiaries specialize in advanced electronic components and robotics.  They also design secure communication systems for the military and government agencies.

Earlier this year, they merged with another government contractor, SenDEC.  The merger allowed them to restructure their balance sheet and almost double the size of the company.

Then the company made another acquisition in June.  Clearly, management is looking to acquire companies to compliment their existing business.

 

FINANCIALS

Now, when you research API, you’ll see their fiscal year ends in May.  That means their next filing will include full year numbers… and with all the acquisitions they’ve made, this is an important report.

The key points are when you combine the companies, revenue nearly doubled, operating income is up almost 300% and their net income numbers flip from a small loss to a nice gain.

Of course the real challenge will be if the company can continue to improve on their performance numbers in the future.

The company recently completed a significant restructuring, establishing a $170 million term loan, and raising $31 million in a private placement.

ATNY hasn’t even been trading for a full month yet.  So we don’t have average volume numbers yet.  But the company does have some attractive valuation metrics.

 

KEY METRICS ANALYSIS

Trailing P/E                                       2.8x

Price / Sales                                     3.1x

Return on Assets                               N/A

Insider ownership                               78.4%

Short Ratio                                        N/A

Current Ratio                                     1.7x

Total Debt To Equity                           7.5x

 

RECENT EVENTS

This has been a big year for this newcomer to NASDAQ.

In January they merged with SenDEC, an electronics manufacturer catering to the defense industry.  API acquired all of SenDEC’s equity, including their manufacturing operations and approximately $30 million in cash.  They issued 22 million common shares of API.

The deal also made API big enough to attain a NASDAQ listing, which is big news for the company.  It opens up a whole new world of interested funds and institutions who might take a position in the company.

Then on June 1 of this year the company announced the acquisition of Spectrum Control, paying about $260 million to acquire the company.  Spectrum designs and manufactures secure communications for the defense and aerospace industry.

 

MANAGEMENT TEAM

Brian R Kahn – CEO

Bel Lazar – COO

John (Jack) Freeman – CFO

 

STOCK ANALYSIS

 

 

 

 

 

 

Chart courtesy of stockcharts.com

 

The price of ATNY since the Nasdaq listing has stayed relatively stable.  It’s been bouncing between about $7.50 and $7.00.

ATNY’s 52-week low was $3.32 and the 52-week high was $8.25.  Right now the stock is trading at $7.10.  The 50-day moving average is near $7.11 a share and the 200-day moving average is at $6.64.  The company has a market cap of $348 million and 49 million shares outstanding.

 

 

Discover more great penny stock trading ideas with a subscription to Zenect Wealth

 

 

All stock prices, charts, and figures updated as of July 11 2011.  

 

 

 

 

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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This Isn’t Your Mom’s Wi-Fi

This week we’re focusing our ZenMoney analysis on the broad line sector of the semi-conductor industry.  If you’re a tech geek, early adopter, or just strain your home or work bandwidth, you’ll want to hear about these guys.

 

QUICK FACTS

Ticker                                     SIMG

Industry                                  Semiconductors

Recent Price                           $6.26

Market Cap                             $497 m

Shares Outstanding                 79.5 m

Average Volume                      356,866

Dividend Yield                          N/A

Website                                  http://www.siliconimage.com

 

COMPANY DESCRIPTION

Silicon Image (SIMG) designs and markets hardware that enables high-definition (HD) content in a variety of devices.  You’ll find their semiconductors in home theaters, personal computers, mobile devices, DTVs, and Blu-ray players.

The company also brings in revenue from licensing their intellectual property.

This Sunnyvale, California Company has also been a driving force behind industry standardization of HDMI and DVI formats.

 

FINANCIALS

Silicon Image’s financials are steadily improving.

For the first quarter, revenue jumped to $49 million, up from $34.3 million a year earlier.  The company continues to improve on their net income, posting a slight loss of $0.8 million this most recent quarter… compared to a $7.2 million loss a year earlier.

When the company turns the corner on earnings and is able to stay consistently profitable, it could be a boon for the stock.

Management was kind enough to provide guidance for the Second quarter of 2011.  They’re looking for revenue of $51 to $53 million.  But, they didn’t give earnings guidance which is a bit of a disappointment.

 

KEY METRICS ANALYSIS

Trailing P/E                                         35.1x

Price / Sales                                       2.4x

Return on Assets                                4.6%

Insider ownership                                0.9%

Short Ratio                                         5.6x

Current Ratio                                      4.7x

Total Debt To Equity                            N/A

 

RECENT EVENTS

Silicon Image recently reached a purchase agreement with SiBeam Inc, another fabless semi-conductor company.  The $25.5 million purchase will be paid for with $14 million in cash and $11.5 million in stock options.

Silicon’s management had been looking to acquire good complementary technology companies.

 

MANAGEMENT TEAM

Camillo Martino – CEO

Noland Granberry – CFO

Edward Lopez – Chief Legal and Administrative Officer

 

STOCK ANALYSIS

 

 

 

 

 

 

Chart courtesy of stockcharts.com

 

A few days ago we saw a very negative indicator for this stock… the 50-day crossed below the 200-day moving average.

SIMG’s 52-week low was $3.10 and the 52-week high was $10.20.  Right now the stock is trading at $6.26.  The 50-day moving average is near $6.67 a share and the 200-day moving average is at $7.68.  The company has a market cap of $497 million and 79.5 million shares outstanding.

 

 

Discover more great penny stock trading ideas with a subscription to Zenect Wealth

 

 

All stock prices, charts, and figures updated as of July 11 2011.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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