Today - Wednesday, April 1, 2015
- ChinaNet Online (NASDAQ:CNET) fell 5% today as it posted preliminary 2014 revenues that grew to $38.9M from fiscal 2013's $30.3M.
- The company has filed a 12b-25 notification of late filing to buy 15 calendar days to produce its 2014 10-K.
- ChinaNet has set a conference call to discuss the results for Friday, April 17 at 8:30 a.m. ET.
- RGS Energy (NASDAQ:RGSE) fell 7% today to $0.25 in the wake of its Q4 report, making a new low of $0.23 along the way.
- Revenue from continuing ops rose 2% Y/Y in Q4 to $18.4M. Residential ASPs rose 2.3% Q/Q and 20% Y/Y, but rooftop deployments fell to 496 from 573 a year ago; the repeal of Missouri and Colorado solar incentives are blamed. Residential gross margin fell to 11.8% from 21.3%.
- Backlog rose 5.6% Q/Q and 119.5% Y/Y to $61.7M. RGS, which just raised funds through a stock/warrant offering (and announced big job cuts soon afterwards), had $5.4M in cash and available borrowings as of March 23.
- Q4 "cash inflow" was $600K, a marked improvement from Q3's -$6.2M. However, RGS adds a "lack of favorable vendor terms and the reduction of the line-of-credit during the fourth quarter prevented the company from having sufficient access to solar panels to convert its backlog." It's counting on its recent fund-raising efforts and job cuts to address the issue.
- Q4 results, earnings release (.pdf)
- American Tower (NYSE:AMT) gained 2.5% as Raymond James upgraded shares to Strong Buy, from Outperform.
- Rollout of wireless companies' new spectrum should restart revenue growth in 2016, RJ's Ric Prentiss says, pointing to "second-half 2015 and 2016 leasing trends" with T-Mobile deploying its low-band spectrum, Sprint expanding its high-band, and AT&T and Verizon "spending a steady amount of wireless capex."
- It's a bit of a rebound for a stock that's down 8% from its November high.
- The analysts set a slightly lower price target on the stock, to $112 from $114. Shares closed today at $96.46.
- Though it beat FQ2 estimates, Micron (NASDAQ:MU) has guided in its earnings slides (.pdf) for FQ3 revenue of $3.8B-$4.05B, below a $4.29B consensus. At the same time, a light outlook was expected by many.
- Lifting FQ2 sales: Trade NAND sales rose 12% Q/Q, in spite of guidance for production to be flat to down by a low-single digit %. DRAM sales fell 9%; production guidance was for a high-single to low-double digit drop.
- DRAM and trade NAND ASPs respectively fell 6% and 9% Q/Q, below guidance of flat to down low-single digits. However, DRAM cost/bit fell 4% (better than guidance for a flat cost/bit), and trade NAND cost/bit fell 3% (better than guidance for a mid-single digit increase).
- FQ3 DRAM guidance: High-single digit production growth (20nm transition), high-single digit ASP decline (PC price pressure), low single-digit cost/bit decline. FQ3 trade NAND guidance: Low-single digit production decline, mid-single digit ASP growth, mid-single digit cost/bit growth.
- FQ2 gross margin was 34%, down from FQ1's 36% and flat Y/Y. SG&A spend rose 6% Y/Y to $187M; R&D spend rose 10% to $379M. DRAM was 65% of revenue, NAND 32% (trade NAND 29%), and other products (e.g. NOR flash) 3%.
- Free cash flow was (op. cash flow - capex) was $399M. The FY15 capex budget remains at $3.6B-$4B. Micron ended FQ2 with $6.35B in cash/marketable investments, and $6.7B in debt.
- MU +1.3% AH to $27.48.
- FQ2 results, PR
- Update (5:30PM ET): Micron is now down 1.9% AH.
4:09 PM| 29 Comments
- Oasis Petroleum (OAS +3.3%) may create an MLP for a $200M North Dakota plant it plans to build over the next two years to process natural gas from the Wild Basin portion of the Bakken Shale, President Taylor Reid says.
- "We have potential JV partners for that, or we could go down the path of an MLP," Reid says at a conference in Denver.
- The CEO also says OAS is well positioned to weather low oil prices, helped by the company's unit that fracks wells, meaning OAS is not reliant on Halliburton or peers for that service; for example, OAS plans to frack 80 wells this year using its own two frack crews, saving ~$400K/well, Reid says.
- As part of its 2015 cost-cutting measures, Brazilian telecom Oi SA (NYSE:OIBR) is slashing more than 1,000 jobs, reducing personnel expense by 20%. Shares are up 20.1%.
- The move comes with governance changes designed to boost shareholder rights and simplify the ownership structure.
- Among the new moves is a right of non-voting shareholders to convert to common voting shares at a predetermined ratio.
- The changes should help Oi with a tie-up that may be increasingly urgent as competition gets heavy in the space.
- With the Nasdaq down 0.8%, only a handful of tech companies are posting big gains. Notable gainers include search toolbar/mobile ad provider Perion (PERI +4.2%) , low-end Android OEM InfoSonics (IFON +7.1%), and Chinese mobile app developer Sungy Mobile (GOMO +8.2%).
- Notable decliners include local reviews leader Yelp (YELP -4.6%), cloud IT service management software vendor ServiceNow (NOW -4.5%), cloud talent management software vendor Cornerstone OnDemand (CSOD -4%), enterprise cloud storage/file-sharing platform Box (BOX -5.5%), software analytics tool provider New Relic (NEWR -5.9%), online family care marketplace marketplace Care.com (CRCM -5%), and e-commerce software provider Demandware (DWRE -4.9%).
- Perion announced this morning it has added Mike Vorhaus, president of consulting firm Magid Advisors, to its board. ServiceNow has announced its Q1 report will arrive on April 16. Yelp, which has been volatile in recent weeks, is now just slightly over $3 above a 52-week low of $42.10. Care.com is less than $1 away from a post-IPO low of $6.50.
- Previously covered: Solar stocks, cybersecurity stocks, Axcelis, GoDaddy, ON Semi, Voltari
- Flexible Solutions International (FSI +7%) shoots higher as the stock is picked up as a play on the California water shortage.
- California Gov. Brown today ordered state officials to implement reductions in cities and towns to cut water usage by 25%, saying the historic drought demands the state's first-ever mandatory water restrictions.
- Earlier this week, SA contributor Amit Ghate discussed FSI shares as having the potential to benefit from the California drought.
- Several security tech plays are seeing profit-taking on a down day for tech. Palo Alto Networks (PANW -4.3%), FireEye (FEYE -3.4%), Imperva (IMPV -3.5%), Fortinet (FTNT -3.1%), and Proofpoint (PFPT -3%) are the biggest decliners.
- The decline comes as Pres. Obama announces an executive order authorizing "targeted sanctions against individuals or entities whose actions in cyberspace result in significant threats to the national security, foreign policy, economic health or financial stability of the United States."
- Obama, whose administration has already rolled out several executive actions/proposals aimed at helping businesses and government agencies defend against security breaches, goes as far as to call cyberattacks a "national emergency." His latest move comes 3 months after a massive Sony Pictures hack blamed on North Korea.
- ETF: HACK
- Yesterday: Palo Alto expands VMware alliance, launches new service
- Though the Nasdaq is down 0.8% and the S&P 0.6%, solar stocks remain in rally mode. The Guggenheim Solar ETF (TAN +1%) is now up 32% YTD, following a rough 2014.
- SunEdison (SUNE +3.8%) is among today's standouts; its TerraForm Power YieldCo announced this morning it's buying 521MW of wind projects from Atlantic Power for $350M. Trina is also faring well after announcing the sale of a 50MW U.K. solar plant.
- Other standouts include Chinese plays ReneSola (SOL +2.7%), Yingli (YGE +2.2%), JinkoSolar (JKS +5.2%), JA Solar (JASO +2.5%), and China Sunergy (CSUN +7.6%).
- Petrobras (PBR +7%) and other Brazilian stocks post strong gains in reaction to Pres. Rousseff's declaration that her government will do whatever it takes for the country to meet its fiscal target this year.
- Rousseff says PBR may release its audited results by the end of the month, and issues a strong denial that she knew about the bribery that has shaken the company she chaired during 2003-10.
- Also: PBR.A +6.5%, EBR +6.6% EBR.B +9%, ELP +6%, CIG +4.9%, CPL +3%, SBS +4.9%, BSBR +5%, BBD +4.5%, ITUB +3.9%; however, with continued negative headlines on iron ore prices, VALE -1.9%.
- ETFs: EWZ, BRF, BRXX, EWZS, BRZU, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
- Lightly-traded nano cap Nymox (NYMX +46.4%) jumps on an 11x surge in volume. Investors appear to be anticipating positive results from a Phase 2 trial evaluating NX-1207 in low risk localized prostate cancer. Final data collection should happen this month.
- The company also announced that it is undertaking further analyses of its pivotal U.S. Phase 3 trials (NX02-0017 and NX02-0018) of NX-1207 for the treatment of benign prostate hyperplasia (BPH) or enlarged prostate. Shares plunged in November when the company reported that NX-1207 performed no better than placebo at Month 12. Management expects to report new long-term data in Q2 or Q3.
- Previously: Nymox plummets after failure of BPH trials (Nov. 3, 2014)
- After rallying over the last week with the help of bullish notes/upgrades from FBN, Baird, and Dougherty, GoPro (NASDAQ:GPRO) is among the biggest tech decliners on a day the Nasdaq is down 0.6%.
- Yesterday, Re/code observed GoPro has been awarded a patent for a cube-shaped housing meant to hold a camera of the same shape (USPTO filing). GoPro told the site it started work on a square camera design in 2011, and that it "files patents like these to protect our technology and intellectual property."
- The site speculates the design could be used to create a "super-compact low-cost camera," and notes Polaroid recently launched a $100 square-shaped camera (the Cube - reviews haven't been great).
- J.C. Penney (JCP +5.4%) continues to trade higher after the company was tipped earlier in the week by JPMorgan and Piper Jaffray for a decent Q1.
- An announcement of a REIT plan by Sears is also in the background.
- The company's annual meeting is scheduled for May 15 before Q1 results are expected to be posted.
- JCP hasn't cracked the $10 level since last October.
- Previously: Piper Jaffray sees a big run for J.C. Penney
- Micro cap CytoSorbents (CTSO -28.7%) plummets on a 10x surge in volume in response to the company's softer guidance on direct sales for the first half. During yesterday evening's earnings call, CEO Dr. Philip Chan said, "In an effort to create an outstanding core sales team, we have been in process of restructuring our direct sales force. We felt it necessary to replace a number of existing sales representatives with others who were better equipped to sell our therapy and to better support international sales. This has created a significant gap in sales coverage in our direct sales territories and has resulted in lower direct sales. Although painful, we believe these changes are necessary and will have a positive effect in the second half of 2015. Q1 2015 sales are expected to show ~45% yoy growth and be slightly lower than Q4 2014. Investors should expect near-term growth will be driven predominantly by distributor and strategic partner sales. We believe that growth in direct sales will resume in the second half of 2015."
- The company generates all of its product revenue from CytoSorb, an immunotherapy for the prevention or mitigation of multiple organ failure.
- Q1 Guidance: Product revenue: $700K - 725K.
- Trina (NYSE:TSL) is selling a 50MW Nortolk, U.K. solar plant to local solar investment firm Bluefield for £59.1M ($87.7M) + a £3M ($4.4M) retention that's contingent on conditions being met. The company has also entered into a bridge loan agreement to finance the Norfolk project until the sale is finished.
- Trina notes it has now sold 3 utility-scale U.K. solar plants featuring a combined capacity of 73.76MW, and that (in addition to ongoing U.K.projects) it's building several Japanese projects. The company forecast a month ago it would see 700MW-750MW of solar projects go live in 2015.
- Shares have joined those of several solar peers in rallying on a down day for equities.
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