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  • Echelon (ELON) Sales Deal, YRC Worldwide (YRCW) Union Deal and Chindex (CHDX) Earnings Drive Gains 0 comments
    Aug 11, 2009 2:18 PM | about stocks: ELON, YRCW, CHDX, BFRM
    Good deals and earnings drive Echelon (NASDAQ:ELON), YRC Worldwide (NASDAQ:YRCW), Chindex (NASDAQ:CHDX) and BioForm (BFRM) gains on Q4 anticipation.

    Good deals drove Echelon (ELON) and YRC Worldwide (YRCW) higher this morning and the earnings report of Chindex (CHDX) and the Q4 earnings anticipation of BioForm (BFRM) brought buyers into the otherwise flat session today. SmallCap buyers were also spurred on by BigCap McDonald's (NYSE:MCD) saying same store sales rose 4.3% in July (people are eating out once again) and economist Paul Krugman saying the end of the recession is in sight.

    Now how about a really good sales deal to get the recovery going...

    Posting as high as a 41.69% gain ($3.46) in early trading today, Echelon Corp., (ELON) http://www.echelon.com/ set a new market cap of $479 million and is now trading on the Nasdaq in the $11.78 range on news it had made a big sale to Duke Energy (NYSE:DUK). ELON has a 3-Month average daily trading volume of 188,848 shares and easily tripled that this morning by 11 a.m. EST topping 690,877 shares traded today.

    ELON announced it will apply 'smart meters' to Duke with the initial order in the approximate $15.8 million range. ELON management said it would begin delivering the meters by the end of the quarter and the overall deal could be worth as much as $150 million.

    Duke is the third-largest U.S. electric power company and plans to install more than 700,000 ELON smart meters in Ohio. Duke is also seeking approval from the Indiana Utility Regulatory Commission to install smart grid technology, including approximately 800,000 ELON smart meters.

    The news of the 'Smart Grid' ELON meter sales also boosted ETF WilderHill Clean Energy which has a 2.47% allocation in Echelon.

    ELON makes and sells control devices and networks in the building, industrial, transportation, utility/home, infrastructure, and automation markets.

    At $11.78, ELON is below its 52-week high of $15.74 set on 09-19-08 and above its $52-week low of $4.92 set on 11-21-08 (a good buy signal). At $11.78, ELON is ahead of both its 50-day and 200-day moving averages. ELON has $107 million in trailing twelve month revenues. It shares out versus float ratio is a bit lopsided, but nothing to worry about.

    And speaking of deals; how about a deal with union labor. Posting a 19.91% gain ($0.45) this morning is trucking giant YRC Worldwide (YRCW) http://www.yrcw.com/ . YRCW is currently trading on the Nasdaq in the $2.71 range. YRCW has a 3-Month average daily trading volume of 5,615,100 shares and at 11 a.m. EST today, has surpassed 12,390,772 shares.

    I'm glad to see YRCW make a come back. One of the hardest hit sectors and its tributary industries in the global recession was shipping and trucking. YRCW, still feeling the effects, made a deal on Friday with union workers to cut their wages by an additional 5%. The workers will also give up company pension contributions for 18 months.

    The deal, which is effective immediately, will keep YRCW from bankruptcy. YRCW operates trucks under the New Penn, Yellow and Roadway names. YRCW expects the deal to save it $45 million to $50 million a month. That's a savings of about $1.2 billion through the remainder of the workers' contracts. About two-thirds of the approximately 35,000 union members at YRCW cast ballots, with 58.5 percent of them voting for the deal.

    YRCW provides transportation services for the shipment of industrial, commercial, and retail goods in the United States and internationally. YRCW has four major operating units. YRCW hauls everything: industrial goods, commercial and retail goods, automotive parts, chemicals, food, furniture, glass, machinery, metal, non-bulk petroleum products, rubber, textiles, wood, and like I said, just about everything. The YRCW National Transportation unit has 14,327 owned tractors, 2,348 leased tractors, 59,682 owned trailers, and 2,802 leased trailers.

    Here's a number for investors: a $2.71 stock with trailing twelve month revenues of $7.14 billion.

    At $2.71 YRCW is below its 52-week high of $20.53 set on 08-14-08 and above its 52-week low of $0.89 set on 07-08-09 (another good buy signal). At $2.71, YRCW ahead of its 50-day moving average and 20 cents below its 200-day moving average. Its shares out versus float ratio is near-parity.

    Gaining 16.12% ($2.12) this morning, Chindex Intl., (CHDX) http://www.chindex.com/ set a new market cap of $221 million. CHDX is currently trading on the Nasdaq in the $15.19 range. CHDX has a 3-Month average daily trading volume of 196,032 shares and easily doubled that today trading more than 559,955 shares by 11 a.m. EST.

    CHDX reported Q1 figures this morning. CHDX earned $3.3 million, or 20 cents per share (after the impact of a value change in warrants), in the three months ending June 30, compared with a loss of $161,000, or a penny per share, during the same period a year ago. CHDX beat earnings expectations by $0.18. CHDX revenues rose 41% to $45.3 million from $32.1 million. CHDX product sales rose 86% to $23.3 million. Health care services revenue rose 13 percent to $22 million.

    CHDX sells medical products and healthcare services in China. CHDX owns and operates the United Family Healthcare network of private hospitals and clinics in the Beijing, Shanghai, and Guangzhou markets.

    At $15.19, CHDX will set a new 52-week high. Its 52-week low was $3.50 set on 03-09-09. At $15.19 CHDX is above both its 50-day and 200-day moving averages. CHDAX has trailing twelve month revenues of $171 million and a trailing twelve diluted EPS of $0.31. Its shares out versus float is near-parity.

    Finally, a nice gain of 14.34% ($0.42) today on a company we told you about on July 16th, BioForm Medical (BFRM) http://www.bioformmedical.com/ . BFRM has a new market cap today of $156 million and is trading in the $3.38 range on the Nasdaq. BFRM has a 3-Month average daily trading volume of 219,129 shares and it passed that number by mid-session.

    BFRM management said that on August 19, after market, it will report its Q4 09 and FYE 09 numbers. There's a lot of anticipation here. The news in July which sparked our report was based on the FDA's approval of BFRM mixing its wrinkle-fighting injection with local anesthetic. In clinical trials, the technique of mixing the BFRM dermal filler Radiesse with lidocaine showed an improvement in patient comfort and an increase in patient satisfaction. BFRM makes and sells its products to plastic surgeons.

    At $3.38, BFRM is off its 52-week high of $5.29 set on 08-15-08 and is above its 52-week low of $0.74 set on 11-21-08 (another good buy signal). At $3.38, BFRM is above its 50-day and 200-day moving averages. BFRM has $64 million in trailing twelve month revenues. As I mentioned in July, BFRM is closely held by insiders and institutions and its public float is very small compared to its shares outstanding. I would like to see more shares in the float for stability and liquidity.

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    Stocks: ELON, YRCW, CHDX, BFRM
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