BetterTrades
(Best) VMI, BEAT, IMA (Worst) UPL, RCI, CHK from Better Trades
February 18, 2009
The markets teetered back and forth between red and green today. Tuesday’s signing of the stimulus package by President Obama did little for investors, as they continue to struggle to gauge the impact of the bill’s overall effectiveness. As the markets struggled to find a foothold, several companies gained or declined notably throughout the session.
Top 3 Stocks
VMI – Valmont Industries Inc.
Leading the way with a solid jump in price during Wednesday’s session was Valmont Industries Inc. (VMI), which saw its price bolstered from Tuesday’s earnings release after the markets closed.
Valmont, which is engaged in industrial products and irrigation products businesses, involves the manufacture and distribution of engineered metal structures and other fabricated products for industrial and commercial applications along with the manufacture and distribution of agricultural irrigation equipment and related products.
In their quarterly report, VMI posted net income of $28.5M, or $1.09 per share for the 4Q, up more than 23% from last year’s profit of $23.1M, or $0.88 per share. Sales for the period also advanced, increasing more than 28% year-over-year, from $384.9M to $493.1M. Analysts were looking for Valmont to post earnings of $1.04 per share on total sales of $454.16M.
Looking ahead, the company anticipates posting comparable earnings in the 1Q as they did in 2008, $1.13 per share on total sales of $422.3M. Analysts are looking for quarterly revenues to come in at $407.6M. On the day, shares of VMI were up more than 14%, adding $5.54 to trade at $43.99 per share. VMI stock has traded between $37.47 and $120.93 per share over the past year.
BEAT – CardioNet Inc.
As a leading provider of ambulatory, continuous, real-time outpatient management solutions for monitoring relevant and timely clinical information regarding an individual's health, CardioNet Inc. (BEAT) is focused on the diagnosis and monitoring of cardiac arrhythmias, or heart rhythm disorders.
Announcing their quarterly performance after the closing bell on Tuesday, CardioNet confirmed that the company’s earnings for the 4Q increased by nearly six-fold as revenues surged. Posting a profit of $6.9M, or $0.29 per share, versus the previous year’s loss of $0.7M, or $0.22 per share, CardioNet’s stock jumped in afternoon trading.
Revenues during the period climbed from $23.9M last year, to $34.4M this year, an increase in sales of nearly 44%. In the meantime, analysts were looking for the medical technology company to post earnings of $0.15 per share on total revenues of $33.9M.
For the upcoming fiscal 2009 season, BEAT is looking to post yearly earnings between $0.69 and $0.73 per share, on a 40% increase of revenues, which should come in between $170M and $175M. Analysts are looking for a yearly posting of $0.79 per share on total sales of $171.1M.
Heading into the close, shares of BEAT were up more than 12%, adding $2.76 to trade at $24.98 per share. During the past year, shares of CardioNet have ranged between $16.85 and $35.89 per share.
IMA – Inverness Medical Innovations Inc.
Lastly, a company that manufactures and sells products for the women's health market, and is engaged in the business of developing, acquiring, manufacturing, and marketing advanced medical device technologies, Inverness Medical Innovations Inc. (IMA) announced after the bell Tuesday that the company’s profits for the 4Q advanced due to higher sales and decreased charges.
In the company’s report, IMA posted a profit of $16.4M, or $0.14 per share, in sharp contrast to a loss of $15.8M, or $0.24 per share from a year ago. Notwithstanding a $65.3M charge, related to amortization and restructuring costs, IMA would have posted a quarterly profit of $60.2M, or $0.66 per share.
IMA also saw their sales for the period advance as well, climbing from $288M to $495.3M, an increase in revenues of nearly 60%. On average, analysts were looking for the medical diagnostic product company to post quarterly earnings of $0.59 per share on overall sales of $451.5M.
Marching towards the end of the trading for the day, shares of IMA were up 6% during the afternoon session, gaining $1.51 to trade at $26.59 per share.
Worst 3 Stocks
UPL – Ultra Petroleum Corp.
Adversely to the market’s trend during the afternoon session, one company, Ultra Petroleum Corp. (UPL). Ultra Petroleum is an independent, exploration and production company focused on developing its long life natural gas reserves in the Green River Basin of Wyoming, and oil reserves offshore of China. The company announced that they posted a lower quarterly profit in their 4Q than they did in the previous year.
For the recent period, UPL booked a net profit of $66.1M, or $0.43 per share, compared to a profit of $110M, or $0.70 per share from a year ago, a decline in earnings of nearly 40%. UPL, however, did manage to post higher revenues that the previous year, advancing from $161.98M to $207.4M, an increase of more than 28%. Analysts were expecting quarterly earnings of $0.48 per share on overall revenues of $242M.
Having traded in a range between $28.85 and $102.81 per share over the past 52 weeks, shares of UPL dropped more than 7% during today’s session, losing $2.74 to trade at $34.30 per share.
RCI – Rogers Communications Inc.
As Canada’s national communications company, Rogers Communications Inc. (RCI) is engaged in digital PCS, cellular, messaging and data communications through Rogers AT&T Wireless. RCI also has their hands in cable television, high-speed Internet access and video retailing through Rogers Cable. In addition, the company is involved in radio and television broadcasting, tele-shopping, publishing and new media businesses through Rogers Media.
Released before the opening bell on Wednesday, RCI acknowledged that the company posted a loss for the 4Q as impairment charges and the overall economy cut into the company’s bottom-line.
For the quarter, RCI recorded a net loss of C$138M, or C$0.22 per share, versus a profit of C$254M, or C$0.40 per share from last year’s 4Q. RCI was hit hard by more than C$294M worth of charged during the period resulting in a C$0.04 reduction in earnings.
Overall sales for the quarter advanced from C$2.69B to C$2.94B, an increase of nearly 10%. Looking ahead to 2009, RCI is looking to build on yearly revenues of C$11.34B, anticipating an increase in sales between 5% and 9%, with annual profits to increase between 3% and 8%, and building on last year’s net earnings of C$4.06B.
With the loss, shares of RCI were down 7% heading into the final hour of trading, losing $1.90 to trade at $25.27 per share. Today’s price is near the lower end of the stock’s trading range over the past year, priced between $22.61 and $46.40.
>CHK – Chesapeake Energy Corp.
Finally, yet importantly, an independent oil and gas company engaged in the development, exploration, acquisition and production of onshore natural gas and oil reserves, Chesapeake Energy Corp. (CHK) made it known before the opening bell that the company posted a quarterly loss due to impairment charges related to their natural gas and oil properties.
For the 4Q, CHK booked a loss of $866M, or $1.51 per share, in contrast to a profit of $158M, or $0.33 per share from a year earlier. Excluding the one-time charges, Chesapeake would have posted a net income for the quarter of $427M, or $0.73 per share. Meanwhile, revenues during the period surged more than 42%, increasing from $2.09B to $2.98B.
Analysts, on average, were looking for the oil and natural gas exploration company to record quarterly earnings of $0.74 per share on total revenues of $2.58B. looking ahead, Chesapeake is anticipating lower output in their production of oil and natural gas, and could come in 5% below 2008 production levels. Even further out, CHK is expecting 2010 production to come in 13% lower than 2008 numbers.
As the closing bell approaches, shares of CHK were down 5.5%, giving up $0.95, to trade at $16.18 per share. during the past year, shares of Chesapeake have traded in a range between $9.84 and $74.00 per share.
2009 Better Trades Article
brought to you by
BRIAN MULLIN
