Today’s Stock Alerts include: McDonald’s Corp. (NYSE: MCD), Cytori Therapeutics Inc. (Nasdaq: CYTX), VeriSign Inc. (Nasdaq: VRSN), Windstream Corp. (NYSE: WIN), Beazer Homes USA Inc. (NYSE: BZH) and Dendreon Corp. (Nasdaq: DNDN).
McDonald’s Corp. (NYSE: MCD) Stock Alert – MCD Same-store Sales Climb in April
Shares of McDonald’s Corp. (MDC) rose 2.49% to $54.72 by noon today. The company operates with its subsidiaries and franchises to operate McDonald’s restaurants in the food service industry worldwide. Its restaurants offer various food items, soft drinks, coffee and other beverages.
The nation’s largest hamburger chain recently announced its April same-store sales increased by 6.9% as consumers desire to pay less during the economic downturn. Same-store sales, or sales in stores open at least 13 months at the chain, climbed 6.1% in the U.S., which the company also attributes to its new line of espresso-based coffee drinks called McCafe for its strong U.S. performance.
According to UBS analyst David Palmer, April trends confirm that McDonald’s is pulling away from the pack in terms of sales momentum. “By the end of 2009, we believe that is also likely to be true for EPS growth as well,” Palmer said in a research note.
Outside the United States, the company reported an 8.4% rise in Europe and a 6.5% rise in Asia, Middle East and Africa.
Hit by a stronger dollar, which lessened the dollar-value of sales made overseas, McDonald’s reported its system-wide sales dropped 1% for the month. Excluding the impact of currency translation, the company said it would have posted an increase of 8.9%.
The fast-food seller’s upbeat performance report comes after last month’s news of a 3.5% increase in first-quarter profit, which topped analysts’ expectations.
As of December 31, 2008, the company operated 31,967 restaurants in 118 countries, of which 25,465 were operated by franchisees; and 6,502 were operated by the company. McDonald’s was founded in 1948 and is based in Oak Brook, Ill.
In today’s daily chart, MCD’s MACD reflects strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend.
Cytori Therapeutics Inc. (Nasdaq: CYTX) Stock Alert – CYTX and GE Healthcare announce Agreement to Commercialize Stemsource Products in the U.S.
Cytori Therapeutics Inc. (CYTX) shares soared 18.81% at noon today, trading at $2.40. Cytori Therapeutics develops, manufactures and sells medical technologies to enable the practice of regenerative medicine.
Cytori Therapeutics and GE Healthcare recently announced a partnership to commercialize stemsource products in the United States, an announcement which sent Cytori shares up 24% in premarket trading.
According to the agreement, GE Healthcare will commercialize Cytori’s StemSource(R) technology in the North American stem cell banking and research markets. The StemSource technology includes automated equipment to process stem and regenerative cells found in adipose tissue, cryopreserve them or use them directly for research purposes.
Cytori Therapeutics CEO Christopher J. Calhoun commented, “Expanding our commercialization partnership into North America will allow us to take advantage of GE Healthcare’s established stem cell banking and research customer-base. Both organizations recognize there is an existing demand in the United States for these products and we look forward to making the StemSource technology available in the U.S. in the first half of 2009.”
Both companies entered into a similar agreement covering 10 European countries in January. But latest agreement is limited to the sale of StemSource banking and research products in the United States, Canada and Mexico for 18 months starting in the second quarter of 2009, the report said. Also, it does not include U.S. commercialization of Cytori’s Celution System, which is currently under review by the FDA for possible marketing approval.
Cytori Therapeutics’ commercial activities are focused on cosmetic and reconstructive surgery in Europe and Asia-Pacific, and stem and regenerative cell banking (cell preservation) in worldwide. Its product pipeline includes the development of new treatments for cardiovascular disease, spinal disc degeneration, gastrointestinal disorders, liver and renal disease and pelvic health conditions.
The company’s Celution System family of products processes patients’ cells at the bedside in real time. During the year ended December 31, 2008, the Celution 800/CRS System was introduced into the European cosmetic and reconstructive surgery market through a network of medical distributors. The Celution 900/MB is marketed in Japan through its commercialization partner, Green Hospital Supply Inc.
The company was founded in 1996 and is headquartered in San Diego, Calif.
In today’s daily chart, CYTX is trading within its Bollinger Bands, a normal condition signaling that the stock is neither overbought nor oversold relative to the recent price action. MACD reflects a strong bullish signal, with the indicator above the 9-day moving average signal line, and also above the 0 level, indicating that moving averages are trending higher.
VeriSign Inc. (Nasdaq: VRSN) Stock Alert – VRSN Turns to Q1 Profit; Shares Upgraded at Oppenheimer
VeriSign Inc. (VRSN) shares surged 13.78% at noon today, trading at $23.70. VeriSign is a provider of Internet infrastructure services for the networked world. The company offers a variety of Internet and communications-related services, which are marketed through Web site sales, direct field sales, channel sales, telesales and member organizations in its global affiliate network.
The company recently announced a profit for the first quarter, with both earnings and revenues exceeding analysts’ expectations. The company attributed its upbeat first quarter to strong revenue growth from its core businesses.
Verisign posted first quarter EPS of 32 cent, ex-items, beating consensus analyst estimates of 28 cents, while revenues for the quarter grew 8.4% to $255 million, beating consensus estimates of $248.6 million.
In a press release, president and COO Mark McLaughlin made this statement, “During the past several quarters when the global economy has contracted, worldwide Internet usage has continued to rise. VeriSign’s services are important to the Internet economy. We remain confident in our ability to make continued progress in the business in the short term and grow in a disciplined manner over the long term.”
Oppenheimer upgraded VeriSign from Perform to Outperform, with price target of $27.
VeriSign’s business consists of two business segments: Internet Infrastructure and Identity Services (3IS), which consists of Naming Services, Secure Socket Layer (SSL) Certificate Services, Identity and Authentication Services (IAS), VeriSign Japan, and Other Services, which represents continuing operations of non-core businesses and legacy products and services from divested businesses.
In October 2008, The News Corp. took full ownership of mobile content provider Jamba by buying VeriSign’s 49% stake. In May 2009, TNS Inc. completed the acquisition of the Communications Services Group from VeriSign.
VeriSign was founded in 1995 and is headquartered in Mountain View, Calif.
In today’s daily chart, VRSN’s Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD reflects a strong bullish signal, with the indicator above the 9-day moving average signal line, and also above the 0 level, indicating that moving averages are trending higher. With share prices currently above the stock’s 13-day moving average, a bullish trend is indicated. Also, a rising moving average signals that there has been buying interest in this stock.
Windstream Corp. (NYSE: WIN) Stock Alert – WIN Posts Mixed Q1 Results
Windstream Corp. (WIN) shares rose 2.96% midday today, trading at $9.04. Windstream, together with its subsidiaries, provides various telecommunications services in rural communities in the United States.
The Little Rock, Ark.-based telephone and broadband service provider recently announced results for the first quarter, which the company said were driven by increased high-speed Internet sales and disciplined management of overall cash expenses.
For the quarter ended March 31, the company posted earnings $88.2 million, or 20 cents per share, compared with $123.7 million, or 27 cents per share, a year earlier.
According to the company, nonrecurring expenses, including damage from an ice storm, reduced earnings by 4 cents a share. And excluding pension costs, the company said it would have posted earnings of 27 cents per shares. In February, the company said it would take a total of $90 million in pension charges during the year. For the latest quarter, that came to $14 million.
Consensus estimates were for EPS of 23 cents.
On the bright side, the company said it added about 31,000 high-speed Internet customers during the quarter, bringing the total above 1 million.
In a press release, CEO Jeff Gardner offered this statement, “I am pleased with our results for the first quarter, particularly our operating metrics and cash flow. While our revenue decline year-over-year was affected somewhat by the challenging economic environment, our operating metrics continue to lead the industry. Further, our team has done a great job managing overall expenses, despite higher expenses this quarter repairing damage from a severe ice storm.”
Looking ahead, the company expects to generate between $705 million and $775 million in free cash flow during 2009, an increase of $20 million from previous guidance, resulting in an expected dividend payout ratio between 57% and 63%.
Windstream provides local telephone, high speed Internet, long distance, network access and video services. It also offers various enhanced service features, including call waiting, call forwarding, caller identification, three-way calling, no-answer transfer and voice-mail.
In addition, the company provides cable television services, as well as supplies telecommunications equipment, including switch modules; wired and wireless voice and data transport equipment; outside plant products and pole-line hardware; high-speed Internet modems; in-building wiring and jacks; voice over Internet protocol telephone systems; and local area networking products. It serves residential and business customers. As of December 31, 2008, Windstream operated 61 retail stores and two call centers.
In today’s daily chart, WIN is trading within its Bollinger Bands, a normal condition signaling that the stock is neither overbought nor oversold relative to the recent price action. MACD reflects a strong bullish signal, with the indicator above the 9-day moving average signal line, and also above the 0 level, indicating that moving averages are trending higher. With share prices currently above the stock’s 13-day moving average, a bullish trend is indicated. Also, a rising moving average signals that there has been buying interest in this stock.
Beazer Homes USA Inc. (NYSE: BZH) Stock Alert – BZH Narrows Q2 Loss
Beazer Homes USA Inc. (Beazer) shares slipped .33% at noon today, trading at $3.06. Beazer engages in the design, building and sale of single-family and multi-family homes in the United States. It offers homes for entry-level, move-up, luxury, or retirement-oriented buyers.
The diversified homebuilder recently announced its financial results for the second quarter of fiscal 2009. For the period ended March 31, Beazer narrowed its loss to $114.9 million, or $2.97 a share, compared with a year-earlier loss of $229.9 million, or $5.96 a share. The latest results included $60.1 million in write-downs, down from $267.7 million last year.
Meanwhile, revenue for the quarter fell 54% to $188.3 million.
Analysts expected a loss of $1.60 a share on revenue of $213 million, according to data provided by Thomson Reuters.
President and CEO Ian J. McCarthy stated, “As a result of continued weakening in the overall economy, low consumer confidence, rising unemployment, and increasing foreclosures, the housing industry remained under considerable pressure during our second fiscal quarter. Consistent with historical seasonal patterns, which include our annual February promotion, we generally did see sequential improvement in sales trends compared to our fiscal first quarter and as the second quarter progressed.”
According to the report, home closings were down 39% at 814 and new orders fell 36% to 1,129. The cancellation rate, however, improved to around 30%, from 46% in the first quarter of this fiscal year and 34% a year earlier
“We are hopeful that historically low interest rates, increased affordability and federal and state home purchase tax credits will entice more prospective buyers to purchase a new home. While we have recently seen some encouraging signs in this respect, we believe it is premature to conclude that a sustainable recovery is yet underway. As such, we continue to maintain a disciplined operating approach and remain focused on generating and maintaining liquidity,” continued McCarthy.
Beazer also provides title insurance services to its homebuyers. The company sells its homes through commissioned employees and independent brokers. The company was founded in 1985 and is headquartered in Atlanta, Ga.
In today’s daily chart, BZH’s MACD reflects a strong bullish signal, with the indicator above the 9-day moving average signal line, and also above the 0 level, indicating that moving averages are trending higher. With share prices currently above the stock’s 13-day moving average, a bullish trend is indicated. Also, a rising moving average signals that there has been buying interest in this stock. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend.
Dendreon Corp. (Nasdaq: DNDN) Stock Alert – DNDN announces Common Stock Offering as it Seeks Resources to Back Vaccine Sale
Dendreon Corp. (DNDN) shares slipped 1.67% at noon today, trading at $19.43. Dendreon, a biotechnology company, engages in the discovery, development and commercialization of therapeutics to enhance cancer treatment options for patients.
Dendreon recently announced a 10.7 million share common stock offering. According to the report, the company intends to use the proceeds to develop manufacturing facilities, a distribution network, an information technology platform and other infrastructure, to hire sales and marketing, manufacturing, quality and other personnel in preparation for the licensure by the FDA and commercialization of Provenge, and for general corporate purposes, including working capital.
The company said Deutsche Bank Securities, which will act as sole manager for the offering, has been granted an option to buy an additional 1,279,166 shares to cover any over-allotments.
The Seattle lifescience company previously announced positive late-stage data for Provenge, known chemically as sipuleucel-T. It plans to seek U.S. approval of Provenge in the fourth quarter.
The company’s product portfolio includes active cellular immunotherapy, monoclonal antibody, and small molecule product candidates to treat various cancers. Its product candidates comprise Provenge (sipuleucel-T), an active cellular immunotherapy that has completed two phase III trials for the treatment of asymptomatic, metastatic, and androgen-independent prostate cancer; and Neuvenge (lapuleucel-T), an investigational active immunotherapy for the treatment of patients with breast, ovarian, and other solid tumors expressing HER2/neu.
The company also has a range of products in preclinical studies, which include CEA for the treatment of breast, lung, and colon cancer; CA-9 (MN) for the treatment of kidney, colon, and cervical cancer; Anti-Serine Protease for the treatment of multiple cancers; and Anti-HLA-DR for the treatment of hematologic malignancies, as well as TRPM8 for the treatment of lung, breast, prostate, and colon cancer.
Dendreon was founded in 1992 and is headquartered in Seattle, Wash.
In today’s daily chart, DNDN is trading within its Bollinger Bands, a normal condition signaling that the stock is neither overbought nor oversold relative to the recent price action. MACD currently reflects weak bearish signal, with the indicator above the critical level of 0 but has crossed below its 9-day signal line, indicating that positive momentum has begun to slow.
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