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  • ADC Telecomm (ADCT), Pacific Sunwear (PSUN) Pacer (PACR) and China TransInfo (CTFO) Post Significant Gains 0 comments
    Aug 12, 2009 2:20 PM | about stocks: ADCT, PSUN, CTFO
    ADC Telecomm (ADCT) Restructures, China TransInfo (CTFO) Q2 Reports Dramatic Increases; Pacific Sunwear (PSUN) and Pacer (PACR) Jump on Expectations.

    ADC Telecomm (ADCT) released restructuring details, China TransInfo (CTFO) reported dramatic Q2 increases in revenues and earnings while Pacific Sunwear (PSUN) and Pacer (PACR) rose this morning on performance expectations and they couldn't have found a better day to attract buyers as the Nasdaq leaped above 2,000 this morning as buyers waited for the Fed to say it would leave rates alone; for the time being.

    Gaining 24.78% ($1.71) in early trading, ADC Telecomm (ADCT) http://www.adc.com/ set a new market cap of $829 million. ADCT is now trading in the $8.59 range on the Nasdaq. ADCT has a 3-Month average daily trading volume of 2,668,100 shares and easily doubled that by 11 a.m. EST topping 6,761,012 shares traded.

    ADCT released news that investors like hear: restructuring news. ADCT said in June that it would cut jobs in Europe, the Middle East and Africa. ADCT management said today it will cut more jobs than previously announced, bringing the total to between 350 and 400 positions (or about 4% of its total employees). ADCT said today the cuts would now include the United States, Latin America and Asia. ADCT said its cost-cutting steps over the past year have helped profits.

    ADCT then raised its Q3 earnings guidance. ADCT management now expects earnings of 5 cents to 10 cents per share. That's up from a projected loss of 4 cents per share to a profit of 4 cents per share. Quite a spread. ADCT expects to take $24 million to $34 million in charges related to severance and other costs. Adjusting to exclude one-time charges, ADCT forecasts a profit of 11 cents per share to 16 cents per share. Analysts, who typically exclude one-time items, were looking for 8 cents.

    ADCT provides broadband communications network infrastructure products and related services worldwide. ADCT products enable the delivery of high-speed Internet, data, video, and voice communications over wireline, wireless, cable, enterprise, and broadcast networks.

    At $8.59, ADCT is below its 52-week high of $10.49 set on 08-15-08 and is well above its 52-week low of $2.47 set on 03-03-09 (a good buy signal). At $8.59, ADCT is above both its 50-day and 200-day moving averages. ADCT has trailing twelve month revenues of $1.26 billion. Its shares out versus float ratio is at parity.

    Gaining 12.42% ($0.39) with no official news, but strong gains in its primary sector of Freight Delivery, is Pacer International (PACR) http://www.pacer-international.com/ which set a new market cap this morning of $121 million. PACR is currently trading in the $3.50 range on the Nasdaq. PACR has a 3-Month average daily trading volume of 938,269 shares and it had come very close to that figure by mid-morning.

    PACR is one of those companies in the transportation and delivery business that was clobbered during the recession as not only credit froze, but inventories and goods froze as well. There is now life again in these businesses as more trucks are hitting the road and more cargo airplanes fly the now-friendlier skies.

    On August 5, PACR reported a Q2 loss of $0.21 per share and a drop of 27% in revenues. But PACR management did note that given it had cut jobs, suspended its 15-cent quarterly dividend and reduced wage levels by up to 10 percent in an attempt to save money; it was forecasting a return to profit in the second half of 09.

    PACR operates as a non-asset based third-party logistics provider in North America. PACR guides the transportation of shipping containers, rail brokerage, and local cartage services, truck brokers, truckload carriers, automotive intermediaries, and international shipping companies. PACR has an equipment fleet of 1,849 double-stack railcars, 28,681 containers, and 29,904 chassis.

    At $3.50, PACR is far below is 52-week high of $22.08 set on 08-18-09 and is above its 52-week low of $1.57 set on 03-09-09 (another good buy signal). At $3.50 PACR is above its 50-day moving average and below its 200-day moving average (by a dime). PACR has trailing twelve month revenues of $1.8 billion. Its shares out versus float ratio is at parity.

    Speaking of Transportation

    Gaining a modest 10.62% ($0.58) on remarkable Q2 news released this morning is China TransInfo Technology (CTFO) http://www.chinatransinfo.com/ which set a new market cap of $136 million. CTFO is currently trading on the Nasdaq in the $6.15 range. CTFO has a 3-Month average daily trading volume of 64,116 shares and had doubled that by mid-session trading over 137,821 shares.

    Increases, increases, increases...

    CTFO said its Q2 09 revenues increased by 86.7%, its gross profit increased 50.3% and its operating income increased 24.6%. CTFO net income increased 29.9% year-over-year. Like I said: Remarkable.

    CTFO fully diluted earnings per share increased 14.9% to $0.13, from $0.11 per fully diluted share in the comparable period in 2008. CTFO management said ten of the Company's transportation information products and applications have been included on the Beijing Municipal Government's most recent procurement list.

    CTFO joined the Russell 2000 & 3000 Indexes on June 26, 2009

    CTFO provides public transportation information systems technology and solutions in China. Its products include transportation planning information system, a software system utilized by traffic management engineers to plan roads and water transportation, safety monitoring, strategic planning; pavement maintenance and electronic toll collection.

    At $6.15, CTFO will set a new 52-week high. Its 52-week low is $2.20 set on 03-18-09. At $6.15, CTFO is above both its 50-day and 200-day moving averages. CTFO has tailing twelve month revenues of $31 million and a trailing twelve month EPS of $0.50. Held widely by insiders, CTFO has a lopsided ratio of its shares out versus float and I would like to see more shares in the public float for stability and liquidity.

    And finally, a nice 11.23% gain ($0.41) today from an apparel company (a sector which has suffered as much as transportation and delivery). Pacific Sunwear (PSUN) http://www.pacsun.com/ got the nice bump today in anticipation of its Q1 09 results to be announced August 30. PSUN is currently trading in the $4 range with a market cap of $266 million. PSUN has an average daily trading volume of 867,009 shares.

    PSUN sells clothing for young men and junior/girls. PSUN operates 932 stores in the U.S. and Puerto Rico.

    At $4, PSUN is less than half of its 52-week high of $8.41 set on 09-19-08 and is well above its 52-week low of $0.72 set on 01-26-09 (a good buy signal). At $4, PSUN is ahead of its 50-day and 200-day moving averages. Good trend. PSUN has tailing twelve month revenues of $1.21 billion. The PSUN shares out versus float ratio is at parity.

    A $4 stock with $1.21 billion in revenues; what a market.

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    Stocks: ADCT, PSUN, CTFO
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