Seeking Alpha
Growth at reasonable price, research analyst, registered investment advisor, value
Profile| Send Message|
( followers)  

One of the best ways to check how a system you are using is working out is to test it on a daily basis. One of the best ways to do so is by seeing what kind of results it would generate using a daily "top winners and losers" list. Seeking Alpha has done an amazing job in revamping their main page and has made this very easy for everyone to do, as you can find their top gainers and losers list whenever you want, front and center. What I will attempt to do from now on is analyze those stocks using Levered Free Cash Flow and see if those top gainers and top losers really should have gone up or down.

For those new to my “back of the envelope” method of analyzing stocks here is an article I wrote as an introduction.

I can only provide the Levered Free Cash Flow data if Yahoo Finance supplies it, so I will only analyze those on the list that I can get the data on. I will attempt to do this every day from now on that the markets are open, so let the games begin:

AS OF 11:30 AM EST April 13

TOP GAINERS

1 ) Camac Energy (CAK)

Shares of Camac Energy (CAK) soared 33% on Wednesday after an independent report estimates its Nigeria stake has anywhere from 630M to 2.2B barrels of recoverable oil.

Levered Free Cash Flow = $-36.59 Million

Market Capitalization = $275 million

Price to Levered Free Cash Flow = -7.52

2) Graham Packaging (GRM)

Silgan Holdings(SLGN) announced it has entered into a definitive merger agreement to acquire Graham Packaging. Pursuant to the merger agreement, Graham shareholders will receive 0.402 shares of Silgan common stock and $4.75 in cash for each share of Graham common stock, representing a total enterprise value, including net debt, of $4.1 bln. Based on Silgan's closing stock price on April 12, 2011, the transaction implies a value of $19.56 per Graham share, representing a premium over the closing price of Graham's stock on April 12, 2011 of 17%. Silgan expects the transaction to be accretive to earnings and cash flow per share in the first full year.

Levered Free Cash Flow = $68.81 Million

Market Capitalization = $1.38 billion

Price to Levered Free Cash Flow = 20.05

3) Quantum Corporation (QTM)

Quantum (QTM) up 15.5%, after announcing a reseller agreement with NetApp (NTAP) providing a new channel for Quantum's StorNext storage management software, sold as a solution with NetApp's disk products.

Levered Free Cash Flow = $21.92 Million

Market Capitalization = $697 Million

Price to Levered Free Cash Flow = 31.79

4) Eagle Rock Energy Partners, L.P. (EROC)

Eagle Rock Energy Partners LP’s shares rose 14% a day after the natural-gas firm said it would acquire CC Energy II LLC.

Levered Free Cash Flow = $192.93 Million

Market Capitalization = $988.70 Million

Price to Levered Free Cash Flow = 5.12

5) Riverbed Technology (RVBD)

Riverbed Technology (RVBD) up on its preliminary Q1 results of $0.19-0.20/share earnings (on revenues of $163M-164M), vs. estimates of $0.18 and $161M.

Levered Free Cash Flow = $50.21 Million

Market Capitalization = $5.27 billion

Price to Levered Free Cash Flow = 104.95

6) First Majestic Silver Corp. (AG) SORRY I COULD NOT FIND ANY NEWS ON WHY IT JUMPED

Levered Free Cash Flow = $-3.07 Million

Market Capitalization = $2.35 billion

Price to Levered Free Cash Flow = - 765

TOP LOSERS

1) Identive Group, Inc. (INVE)

According to this article:

But investor insanity started yesterday morning when a small company Identive Group (INVE) issued a press release announcing that it has been selected as the exclusive supplier of NFC RFID stickers for the roll out of Google Places in Austin. The company was very clear that it was not selected for a nationwide or world-wide roll out; Identive is simply a supplier for Austin, Texas.

Levered Free Cash Flow = $-2.69 Million

Market Capitalization = $196.30 Million

Price to Levered Free Cash Flow = - 72.97

2) Central Pacific Financial Corp. (CPF)

Levered Free Cash Flow = NA

Market Capitalization = $23.04 Million

Price to Levered Free Cash Flow = NA

3) Schiff Nutrition International Inc. (WNI)

Levered Free Cash Flow = NA

Market Capitalization = $267.2 Million

Price to Levered Free Cash Flow = NA

4) Star Scientific, Inc. (CIGX)

According to the Fool on Tuesday:

Star Scientific, a tobacco curing technologist, started to fall off its high horse on Thursday after a long run-up, and it looks like the momentum continues today. There wasn't any significant news driving trading, but volume has again reached 6 million shares, which used to be off the charts for this extra-volatile stock.

Levered Free Cash Flow = $-23.66 Milliom

Market Capitalization = $ 402.08 Million

Price to Levered Free Cash Flow = -16.99

5) Mesabi Trust (MSB)

Levered Free Cash Flow = $28.85 Million

Market Capitalization = $467.07 Million

Price to Levered Free Cash Flow = 16.18

6) Idenix Pharmaceuticals, Inc. (IDIX)

Levered Free Cash Flow = $-27.50

Market Capitalization = $271.22 Million

Price to Levered Free Cash Flow = -9.86

Source: Analyzing Seeking Alpha's Top Gainers and Losers Using Levered Free Cash Flow