Highlighting WAG’s Q3 results; MEDX’s market position; RCII’s market position; CSUN and other Chinese solar stocks’ recent activity; CROX’s increased investor opinion; and SAY’s new brand identity.

 

Today’s Stock Alerts include: Walgreen Co. (NYSE: WAG), Medarex Inc. (NASDAQ: MEDX), Rent-A-Center Inc. (NASDAQ: RCII), China Sunergy Co. Ltd. (NASDAQ: CSUN), CROCS Inc. (NASDAQ: CROX) and Satyam Computer Services Ltd. (NYSE: SAY).

 

Walgreen Co. (NYSE: WAG) Stock Alert – Walgreen Posts Q3 Results, Citing 9% Drop in Profits

 

Walgreen Co. (NYSE: WAG) reported its third-quarter results this morning, posting net income at $522 million, or 53 cents per share, down from $572 million, or 58 cents per share, for the same quarter last year.

 

Analysts had estimated earnings at 56 cents per share.

 

For the quarter ended May 31, 2008, the company reported $16.21 billion in sales, and despite weaker customer spending, Walgreen said sales increased 6.8% in March from March of last year; 11.1% in April from last year; and a 6.1% jump in May.  The drugstore reported better sales at its pharmacy than from its non-pharmacy items such as soap, shampoo, vitamins and other personal care products.

 

Same-store sales increased 1.5% in March, 5.7% in April and 1% in May, the company said.  Investors consider year-over-year same-store sales to be a more reliable indicator of a chain’s performance.

 

Analysts say Walgreen shows signs of improving from the previous quarter, and expects earnings will greatly improve next year.  Analyst David Magee of SunTrust Robinson Humphrey thinks company sales will pick up, and anticipates profit margins to expand as the U.S. economy stabilizes.

 

Walgreen is principally a retail drugstore chain that sells prescription and non-prescription drugs, and general merchandise. General merchandise includes, among other things, beauty care, personal care, household items, candy, photofinishing, greeting cards, convenience foods and seasonal items. Customers can have prescriptions filled at the drugstore counter, as well as through the mail, by telephone and via the Internet.

 

As of August 31, 2008, Walgreen operated 6,934 locations in 49 states, the District of Columbia, Guam and Puerto Rico. Total locations do not include 217 convenient care clinics operated by Take Care Health Systems, Inc. (formerly known as I-Trax Inc.), a subsidiary of the company.

 

During the fiscal year ended August 31, 2008 (fiscal 2008), the company acquired I-trax, Inc.; Whole Health Management; 20 drugstores from Farmacias El Amal; and CuraScript Infusion Pharmacy Inc.

 

In its recent chart, WAG is trading at its higher Bollinger Bands range, a bullish condition signaling that the stock is strong relative to the recent price action. MACD reflects a bearish signal, with the indicator trending below its 9-day moving average signal line, indicating downwardly trending moving averages.

 

 

Medarex Inc. (Nasdaq: MEDX) Stock Alert – Medarex Doubles NASDAQ Performance Since Market Bottom

 

The rebound in biopharmaceutical Medarex Inc. (Nasdaq: MEDX) has outperformed the major technology averages during the current stock rally beginning March 10.

 

Since the March 9 closing low of 1,268.64, the NASDAQ has risen 44%, settling on Friday at 1,827.47, while MEDX has risen 96.8% from its March 9 low of $3.74 cents to close Friday at $7.36.

 

Medarex is a biopharmaceutical company focused on the discovery, development and commercialization of human antibody-based therapeutic products.

 

The company, along with its partners, is developing fully human antibody therapeutics for a range of diseases through the use of its UltiMAb technology platform for generating antibodies. Its partners include companies, such as Amgen Inc., Bristol-Myers Squibb Co., Centocor Inc., Eli Lilly and Co., Genmab A/S, ImClone Systems Inc., MedImmune Inc., Novartis Pharma AG and Pfizer Inc.

 

In its recent chart, MEDX is trading at its higher Bollinger Bands range, a bullish condition signaling that the stock is strong relative to the recent price action. MACD reflects a bearish signal, with the indicator trending below its 9-day moving average signal line, indicating downwardly trending moving averages.

 

 

Rent-A-Center Inc. (Nasdaq: RCII) Stock Alert – Rent-A-Center Barely Moves Since March Lows

 

The rebound in the U.S. rent-to-own operator Rent-A-Center Inc. (Nasdaq: RCII) has grossly underperformed the major technology averages during the current stock rally beginning March 10.

 

Since the March 9 closing low of 1,268.64, the NASDAQ has risen 44%, settling on Friday at 1827.47, RCII has risen 4.7% from its March 9 low of $16.82 cents to close Friday at $17.61.

 

Rent-A-Center is a rent-to-own operator in the United States.  As of December 31, 2008, the company operated 3,037 company-owned stores nationwide and in Canada and Puerto Rico, including 31 retail installment sales stores under the name Get It Now and Home Choice, and eight rent-to-own stores located in Canada under the name Rent-A-Centre.

 

The company’s subsidiary, ColorTyme, is a national franchisor of rent-to-own stores. As of December 31, 2008, ColorTyme had 222 franchised rent-to-own stores in 34 states. The company’s stores generally offer durable products, such as consumer electronics, appliances, computers and furniture, and accessories under flexible rental purchase agreements that generally allow the customer to obtain ownership of the merchandise at the conclusion of an agreed upon rental period.

 

In its recent chart, RCII is trading above its higher Bollinger Bands range, a bullish condition signaling that the stock is strong relative to the recent price action. MACD reflects a bullish signal, with the indicator trending above its 9-day moving average signal line, indicating upwardly trending moving averages.

 

 

China Sunergy Co. Ltd. (Nasdaq: CSUN) Stock Alert – Chinese Solar Market Back on Fire

 

Shares of well-capitalized solar companies such as Trina Solar, Canadian Solar, Yingli Green Energy, Suntech Power, Solarfun, JA Solar and China Sunergy Co. Ltd. (Nasdaq: CSUN) have posted triple-digit percentage returns since the March lows, according to Barclay’s Capital.

 

Barclays said China-based solar companies now trade at median price-to-earnings ratio of 55 times 2009 estimated earnings, and have become quite rich in valuations from the March low of nine times, while American solar companies now fetch a 27 time multiple, led by First Solar which has rebounded 74% from the March 9 low.

 

But according to a Reuters report released Friday, Chinese solar companies expect to receive lots of government money from Beijing, as the Chinese government leaders believe the solar industry could be an important future sector in China.  Beijing is anticipated to make $10 billion available to the industry over the next three years.

 

Barclays Capital Analyst Vishal Shah says he believes the Chinese solar sector is ready for a breakout this year  due to Beijing’s support of the industry, but warns to not be blind to the downside risks in this sector, especially among the smaller emerging companies.

 

China Sunergy Co. Ltd. is engaged in designing, developing, manufacturing and selling solar cells. It manufactures solar cells from silicon wafers utilizing crystalline silicon solar cell technology to convert sunlight directly into electricity through a process known as the photovoltaic effect. It sells its solar cell products to Chinese and overseas module manufacturers and system integrators, who assemble its solar cells into solar modules and solar power systems for use in various markets.

 

During the year ended December 31, 2007, it produced both monocrystalline and multicrystalline silicon solar cells. In addition to standard P-type solar cells, it commenced commercial production of selective emitter cells, an improved version of the P-type solar cells in 2007.

In its recent chart, CSUN is trading at its lower Bollinger Bands range, a bearish condition signaling that the stock is weak relative to the recent price action. MACD reflects a bearish signal, with the indicator trending below its 9-day moving average signal line, indicating downwardly trending moving averages.

 

Crocs Inc. (Nasdaq: CROX) Stock Alert – Crocs Options Show Shares Expected to Double

 

Crocs Inc. (Nasdaq: CROX) has been getting some attention from options traders, with some investors suggesting the stock may double by January.

 

Volume in January 7.50 calls jumped to 4,671 against 1,367 contracts reported in open interest on June 10, according to OptionMonster’s reporting system.  Today’s open interest on the January 7.50 call stands at 6,185 contracts.

 

With the stock’s price settling back to near its June 10 close, investors interested in the stock have a second chance.

 

Crocs is a designer, manufacturer, distributor, worldwide marketer and brand manager of footwear for men, women, and children. Crocs shoes combine fun colors and designs and the company manufactures a product offering that provides new and exciting molded footwear products that feature fun, comfort and functionality.

 

The company designs and sells an offering of footwear, apparel, gear and accessories that utilize its closed cell-resin, called Croslite. The Crocs product range is divided into three categories: everyday, style and sport. Its everyday product range is composed of fully molded products, which are closest to its core products and targeted widely to several distribution channels. Its style product range consists of more fashionable silhouettes targeted towards higher-end department stores. Its sport product range includes sport inspired products that offers a Crocs point of view for active end uses like boating, walking, and hiking.

 

In its recent chart, CROX is trading at its higher Bollinger Bands range, a bullish condition signaling that the stock is strong relative to the recent price action. MACD reflects a bearish signal, with the indicator trending below its 9-day moving average signal line, indicating downwardly trending moving averages.

 

 

Satyam Computer Services Ltd. (NYSE: SAY) Stock Alert – Satyam announces New Brand Identity: ‘Mahindra Satyam’

 

Satyam Computer Services Ltd. (NYSE: SAY) unveiled its new brand identity, “Mahindra Satyam.”  The company said in a news release the new identity “paves the way for the emergence of a robust brand.”  The branding draws from the core values of the Mahindra Group and the strength of the Satyam brand, the company said.

 

Commenting on the rebranding strategy, Anand Mahindra, vice chairman & managing director, Mahindra Group, said, “Customer centricity, high standards of corporate governance, and unimpeachable ethics form the cornerstones of the Mahindra Group. This rebranding exercise symbolizes an amalgamation of the Mahindra Group’s values with Satyam’s renowned expertise, even as it retains that part of Satyam’s identity which signifies commitment, purpose and proficiency of the organization and its people.”

 

Vineet Nayyar, executive vice chairman of Satyam’s board, said of the new identity, “This is a significant milestone towards the recovery of the company. We are optimistic that this new brand will re-energize the organization and will be well received by all our stakeholders. With this initiative, we will witness steps by the management to adopt and inculcate the values of ‘performance and customer first’, and ‘good corporate governance and citizenship’, which are drawn from the Mahindra Group. With this synergistic approach, Mahindra Satyam will learn from the best management practices of the Mahindra Group while focusing on nurturing Satyam’s innate skills and capabilities.”

 

Satyam is a global information technology (IT) services provider, offering a range of services, including systems design, software development, system integration and application maintenance.  The company offers a range of IT services to its customers, including application development and maintenance, consulting and enterprise business solutions, extended engineering solutions and infrastructure management services.

 

The company provides services to customers from various industries, including insurance, banking and financial services, manufacturing, telecommunications, transportation and engineering services. Satyam BPO Ltd. (Satyam BPO), a majority-owned subsidiary of the company is engaged in providing business process outsourcing (BPO) services.

 

Satyam operates in two segments: IT services and BPO services.

 

In its recent chart, SAY is trading at its higher Bollinger Bands range, a bullish condition signaling that the stock is strong relative to the recent price action. MACD reflects a bullish signal, with the indicator trending above its 9-day moving average signal line, indicating upwardly trending moving averages.

 

 

 

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