Seven Arts Pictures (SAPX) saw the largest increase of the day with a 235% gain at close. The company announced a production agreement with Prodigy Pictures for a budget of $60 million. The news may be significant to the company however I believe this price action was nothing more than a short squeeze. I expect the stock to see another day of strong gains based on the price performance at the end of day. Stocks this small can sometimes see multiple days of gains before crashing back down.
Datalink Corporation (DTLK) saw gains of 9.63% to add to a total accumulation of 32% over three days. The gains began after the company announced 2nd quarter results that beat estimates by nearly $7 million in revenue. They announced guidance for the 3rd quarter of $85-$90 million which is higher than the estimated $81.2 million from analyst. Datalink is one of my favorite small cap stocks at this time. The company posted revenue $100 million greater than any of the previous four years in 2010 with a market cap of only $177 million. The company has seen its total assets increase every year for the last four years. Datalink continues to grow and is yet to show any sign of slowing down. This could be a solid investment with large returns for years to come.
Biolase Technology (BLTI) posted gains over 9% after reporting the first order of the company's new imaging system, Davinci. I do not see this as news to affect the stock. The company simply announced the size of their target and that their company is well known. The fact that the product is being sold will add additional revenue and if it sells during the third quarter then it could drastically affect their stock price. At this point I would not buy the stock since there is no way to judge its success without seeing actual results.
Accelr8 Technology Corporation (AXK) saw gains over 13% as the company announced extending their project support with Novartis (NVS). This agreement takes the company through September with an option for Novartis to extend until January of 2013. The increase in price is appropriate because of the stock's low market cap, just over $45 million. This is not a long term contract or agreement that will bring financial security for years to come. It appears AXK is doing all they can to hold on to this partnership. I would not buy on this news long term unless the contract was two years not two months.
Westinghouse Solar (WEST) jumped 23% after announcing an agreement to deliver solar power systems to new home buyers as part of Lennar's (LEN) Everything Included Program. The services will be built into the price of the home in certain communities giving WEST access to Lennar's client base. I personally like Westinghouse's solar product and believe it could eventually turn into a used luxury in new homes throughout America. Solar power is growing in popularity and part of the new home construction's economic growth will have to include innovation. This service is the first step toward the innovation, I look for Westinghouse Solar to become a large successful business in the coming years and potentially a takeover target.
E Trade Financial Corporation (ETFC) has seen gains in excess of 25% over the last four days after announcing an increase in profit of 34% despite weak trading volume. I recommend the stock at this time seeing as how there are legitimate reasons to believe a takeover from Citadel is in the making. There were many investors who lost a great deal of their holdings from investing in ETFC. Therefore there are many emotional investors when it comes to this stock that have strong opinions. I would purchase this stock for the future not the past. I believe that E Trade has the best online platform for online trading. I expect E Trade to continue growing in popularity and produce better quarters in the future.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.