The list of big gainers was a bit short last Friday (7/8/11), with the market having a severe downturn; however, these stocks were still able to close the day with solid gains.
Local.com (LOCM) jumped 12% after disclosing an agreement with Google (GOOG). The company said that it entered into a Google Services Agreement with Google. The agreement provides for the implementation by Local.com of certain advertising and search services on certain websites, subject to the Registrant’s compliance with certain policy and compliance obligations as more fully described in the Agreement. The effective date of the agreement is August 1, 2011 and it ends on July 31, 2013.
SkyPeople Fruit Juice (SPU) jumped 21% after it filed a lawsuit against a short seller. The company said announced the filing of a defamation lawsuit against Absaroka Capital Management and its analyst, Kevin Barnes. On June 1, 2011, an entity identifying itself as "Absaroka Capital Management LLC", a short seller of the company's securities, published an article containing several false allegations and accusations against the company. On June 10, 2011, the company requested that Absaroka Capital and Kevin Barnes retract the inaccurate statements contained in the article. Absaroka Capital did not comply with the company's request, and, subsequently, the company filed a civil action against Absaroka Capital and Kevin Barns for libel and tortuous interference with existing and prospective economic advantages in the United States District Court for the District of Wyoming, where Absaroka Capital is based.
Amylin (AMLN) closed nearly 4% higher after the company and its partners announced results from a thorough QT (tQT) study that assessed the potential of exenatide to increase the QT interval across a wide range of plasma concentrations. The study was conducted to satisfy a requirement by the FDA in support of the New Drug Application for Bydureon (exenatide extended-release for injectable suspension), an investigational medication for type 2 diabetes. Using multiple heart rate correction methodologies, the study met the pre-specified primary endpoint, demonstrating that exenatide at and above therapeutic levels did not prolong the corrected QT (QTc) interval in healthy individuals. Further, the study found no relationship between QTc interval and plasma exenatide concentrations.
WD-40 Company (WDFC) rose 7% after the company reported strong Q3 results. Sales for the third quarter were $85.5 million, an increase of 4% from Q3 last fiscal year. Net income for the third quarter was $8.1 million, a decrease of 12% compared to the prior year fiscal quarter. Gross margin was 49.3% in the third quarter compared to 51.2% in the same quarter last fiscal year. Management added that it is seeing the roll through from increases in commodity prices during this fiscal year which have negatively impacted its gross margin. The company is also experiencing sales challenges in the United States due to reduced product offerings and lost promotional opportunities with certain key customers. The company noted that to help improve margins, it is implementing price increases in some markets late this fiscal year, working to bring innovation to the market sooner, and focusing its marketing efforts on increasing product usage among its heavy users to pull more product off the shelf.
SemiLEDs (LEDS) climbed 9% despite reporting weak Q3 results. The company announced that revenue for the quarter was $5.6 million, a 43% decrease compared to $9.9 million in the third quarter of fiscal 2010. Trung Doan, Chairman and CEO of SemiLEDs said:
Our fiscal third quarter was challenging as pricing pressure and end demand weakness continued from the fiscal second quarter. However, we are seeing pricing stabilize. We remain focused on improving our cost structure by accelerating our efforts to transition to four inch wafer production at our Taiwan facility, continuing to ramp four inch production volume at China SemiLEDs, as well as supporting our customers to maximize the benefits of our metal vertical chip structures to reduce the total cost of ownership.
GAAP net loss for the third quarter of fiscal 2011 was $5.1 million, or a loss of $0.19 per diluted share, compared to GAAP net income of $3.2 million, or $0.09 per diluted share, for the third quarter of fiscal 2010. GAAP gross margin for the third quarter of fiscal 2011 was 9%, compared with 51% in the third quarter of fiscal 2010.