This morning’s stock-alert lineup features mixed results, with JAZZ continuing another day of impressive gains, surging nearly 17%; SQNM and ESLR also managed significant gains while LEA lost 7%.
Today’s Stock Alerts include: Sequenom Inc. (Nasdaq: SQNM), Evergreen Solar Inc. (Nasdaq; ESLR), Jazz Pharmaceuticals Inc. (Nasdaq: JAZZ), Lear Corp. (NYSE: LEA), Alcoa Inc. (NYSE: AA) and Research in Motion (Nasdaq: RIMM).
Sequenom Inc. (Nasdaq: SQNM) Stock Alert – SQNM Shares Decline following Day-Earlier Gains on Investigation Rumors
Sequenom Inc. (Nasdaq: SQNM) shares surged 7.09% to $4.38 this morning. Shares of diagnostic testing and genetics analysis company were bolstered on yesterday’s rumors that the company was close to wrapping up an investigation on the mishandling of its Down Syndrome test data. It can be remembered the company fell 75% in late April on word that some employees had mishandled data and results for its Down syndrome test. Following that news, the company said it would delay the launch of the test.
While the stock traded heavily on Tuesday, OptionMonster’s tracking systems reported call activity was concentrated at the June 4 and June 5 strikes, where 18,880 and 24,003 of the contracts traded, respectively, with strong buying patterns.
However, Sequenom tumbled on Wednesday, which analysts attribute to the lack of an announcement about the investigation.
In Dow Jones report, Hapoalim Securities’ Raghuram Selvaraju stated, “The rumor is not unreasonable, but I don’t believe it’s based on anything concrete.” The analyst expects a continued decline in shares if an announcement isn’t made in the coming days. Also in the report, Caris & Co. analyst Zarak Khurshid said Sequenom won’t regain investor credibility until it provides validated clinical data on the Down Syndrome test, which he said probably won’t be ready until late 2009 at the earliest.
Sequenom spokesman Ian Clements, in an interview with Dow Jones Newswires, declined to comment on the stock movement or the rumors, but said the timelines the company provided in April had not changed.
Sequenom is focused on providing products, services, diagnostic testing, applications and genetic analysis products that translate the results of genomic science into solutions for biomedical research, translational research, molecular medicine applications, and agricultural, livestock and other areas of research. Its development and commercialization efforts in various diagnostic areas include non-invasive prenatal diagnostics, oncology, infectious diseases and other disorders.
The company is researching, developing and pursuing the commercialization of various non-invasive molecular diagnostic tests for prenatal genetic disorders and diseases, oncology, infectious diseases, and other diseases and disorders. On November 14, 2008, it completed the asset acquisition of the Center for Molecular Medicine, LLC (CMM). On November 17, 2008, the company acquired Grand Rapids, a center for molecular medicine.
In its recent chart, SQNM’s MACD reflects a weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. With share prices currently above the stock’s 13-day moving average, an indication of a bullish trend is generally considered. 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.
Evergreen Solar Inc. (Nasdaq: ESLR) Stock Alert – ESLR Shares Rise on Investors’ Enthusiasm in Solar Power
Evergreen Solar Inc. (Nasdaq: ESLR) shares spiked 10.76% this morning, trading at $2.78. Evergreen Solar develops, manufactures and markets solar power products enabled by its String Ribbon technology.
Despite the absence of relevant news to push up the stock price, shares of the U.S. panel maker were recently bolstered amid investors’ enthusiasm for the clean energy source. Solar stocks have reportedly benefited from increased Chinese interest in solar power, higher oil prices and signs of improvement in lending and financing.
Chinese Solar Stocks Index was up by 7% on Tuesday, now beating the S&P 500 by 53.8% over the last month. Suntech Power, China’s largest solar company, recently announced it is in talks to develop a 500-megawatt project in Qinghai province, a news seen by analysts an indication that other Chinese provinces will follow suit with additional massive solar projects.
In other news, Deutsche Bank Securities Inc. rated Evergreen as a Hold, but said that the panel maker and other solar companies should soon benefit from a new feed-in tariff rate adopted this year by Greece.
According to the report, Greece installed 11 megawatts in 2008 under its previous incentive plan, which analyst Steve O’Rourke said could climb to between 35 and 40 megawatts in 2009 with a market potential of more than 100 megawatts in 2010.
Evergreen Solar’s revenues are primarily derived from the sale of solar modules, which are assemblies of photovoltaic (PV) cells that have been electrically interconnected and laminated in a physically durable and weather-tight package. The company sells its products using distributors, systems integrators and other value-added resellers, who often add value through system design by incorporating its modules with electronics, structures and wiring systems.
Its products are sold primarily in the United States and Europe. The company manufactures and markets solar power products, including solar cells, panels and systems. It markets and sells all solar panels manufactured by Sovello under the Evergreen Solar brand, as well as manages customer relationships and contracts. The company ceased its manufacturing operations in Marlboro, Mass., on December 31, 2008.
In its recent chart, ESLR’s MACD reflects a weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. With share prices currently above the stock’s 13-day moving average, an indication of a bullish trend is generally considered. Trading above its upper Bollinger Band, the stock reflects an overextended condition relative to its recent price action and is due for either a pause or retracement.
Jazz Pharmaceuticals Inc. (Nasdaq: JAZZ) Stock Alert – JAZZ Shares Jump on Anticipation of Results from a Second Late-stage Trial of its Fibromyalgia Treatment JZP-6
Jazz Pharmaceuticals Inc. (Nasdaq: JAZZ) shares surged 16.46% this morning, trading at $3.68. Jazz Pharmaceuticals is a specialty pharmaceutical company focused on developing and commercializing products to meet unmet medical needs in neurology and psychiatry.
Shares of Palo Alto, Calif.-headquartered company were soared more than 200% yesterday after announcing it anticipates results from a second late-stage trial of its fibromyalgia treatment candidate sodium oxybate, or JZP-6, to come soon. JZP-6 is already approved in the U.S. for the treatment of various sleep disorders.
Sodium oxybate is the sodium salt form of gamma-hydroxybutyrate, an endogenous neurotransmitter and metabolite of GABA. While the precise mechanism of action is unknown, the effects may be mediated in part through interaction with GABA(B) and GHB receptors.
If the clinical results are successful, Jazz Pharmaceuticals said it will file for U.S. approval of the product by the end of 2009.
The company said in the release it will release various data this week during the Associated Professional Sleep Societies (APSS) 2009 Annual Meeting in Seattle, Washington and also during the European League Against Rheumatism (EULAR) Congress in Copenhagen, Denmark.
Jazz Pharmaceutical’s other product candidates in clinical development comprises JZP-8, an intranasal formulation of clonazepam for the treatment of recurrent acute repetitive seizures in epilepsy patients who continue to have seizures while on stable anti-epileptic regimens; JZP-4, a controlled release formulation of an anticonvulsant for the treatment of epilepsy and bipolar disorder; and JZP-7 for the treatment of restless legs syndrome.
In its recent chart, JAZZ’s Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading above its upper Bollinger Band, the stock reflects an overextended condition relative to its recent price action and is due for either a pause or retracement. 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.
Lear Corp. (NYSE: LEA) Stock Alert – LEA Shares Boosted on Fiat/Chrysler Completed Deal
Lear Corp. (NYSE: LEA) shares dropped 6.31% to $1.93 in today’s early trading. Shares of the global tier I supplier of automotive seat systems, electrical distribution systems and electronic products manufacturer rose on word that Fiat completed its acquisition of Chrysler’s assets.
On April 30, 2009, Chrysler filed for Chapter 11 bankruptcy protection and announced a partnership with Fiat. Chrysler claims the agreement with Fiat is the best deal it can get for its assets and is critical to the company’s plan to emerge from Chapter 11 bankruptcy protection.
U.S. Court finally freed the carmakers to complete their deal, rejecting a plea to block the sale by opponents that include a trio of Indiana pension plans, consumer groups and individuals with product-related lawsuits.
In other news, a top executive at Lear recently said the company remains in talks with lenders and potential investors to restructure its debt-laden balance sheet.
In an interview with Reuters, EVP Daniel Ninivaggi said the company is expected to announce the results of its discussions prior to June 30, through which its lenders have agreed to waive the existing defaults under its primary credit facility.
The Southfield, Michigan based company previously said it might have to file for bankruptcy, and is exploring alternatives to restructure its debt outside of bankruptcy.
Ninivaggi said the current discussions are constructive.
Lear has a global footprint that includes locations in 36 countries worldwide. The company business is focused on providing complete seat systems and the components thereof, as well as electrical distribution systems and electronic products, and the company supply every automotive manufacturer in the world.
In 2008, the company sales were comprised of vehicle categories: 65% cars, including 28% mid-size, 22% compact, 13% luxury/sport and 2% full-size, and 35% light truck, including 21% sport utility/crossover and 14% pickup and other light truck.
The company conducts its business in two product operating segments: seating and electrical and electronic. In April 2009, The Furukawa Electric Co., Ltd. acquired interests in Lear Furukawa Corp. from Lear Corp. As of April 22, 2009, The Furukawa Electric Co., Ltd. owned 80% interest in Lear Furukawa Corp.
In its recent chart, LEA’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, an indication of a bullish trend is generally considered. Trading near its upper Bollinger Band, the stock reflects high price relative to its recent price action.
Alcoa Inc. (NYSE: AA) Stock Alert – AA Shares Up on Economic Optimism; Names Head of Investor Relations
Alcoa Inc. (NYSE: AA) shares rose 2.18% to $11.74 in today’s morning session. Alcoa is engaged in the production and management of primary aluminum, fabricated aluminum and alumina combined.
Shares of the nation’s largest U.S. aluminum producer were recently seen in the green as investors see optimism in the economy. Commodities prices are recently rising and investors see it as indication of increased economic activity.
In other developments, Alcoa recently named Matthew Garth as director of Investor Relations, effective immediately.
Garth has reportedly served in a series of financial management positions with Alcoa. He joined the company as Manager, Investor Relations in 2002, and was accountable for developing strategic financial messaging and shareholder communication strategy. He has also served in Alcoa’s Corporate Analysis and Strategic Planning groups.
“Matt’s financial background, combined with his capital market experience and analytical skills, are an ideal combination to lead investor relations at Alcoa,” said EVP and CFO Chuck McLane.
Alcoa’s products are used worldwide in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defense and industrial applications.
Alcoa is a global company operating in 35 countries. North America and Europe generated 54% and 26%, respectively, of Alcoa’s sales during the year ended December 31, 2008. In addition, Alcoa has investments and activities in Australia, Brazil, China, Iceland, Guinea and Russia.
In its recent chart, AA 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.
Research in Motion (Nasdaq: RIMM) Stock Alert – RIMM to Report Q1 Fiscal 2010 Results on June 18; Goldman Sachs Recommends Option Strategy
Research In Motion (Nasdaq: RIMM) shares climbed 1.57% to $84.76 this morning. Research In Motion (RIM) designs, manufactures and markets wireless solutions for the worldwide mobile communications market.
The maker of Blackberry is slated to report its results for the first quarter of fiscal 2010 on June 18, 2009 after the close of the market.
Interested parties may dial 800-733-7571 or log on at www.rim.com/investors/events/index.shtml to access the conference call and live Web cast beginning at 5 p.m. ET.
A replay of the conference call will also be available at approximately 7 p.m. by dialing 416-640-1917 and entering passcode 21289979#. This replay will be available until midnight ET July 2, 2009.
Looking forward to RIM’s earnings next week, Goldman Sachs is recommending a July call spread. The firm said RIM’s shares are up 102% year-to-date and may go higher yet.
Seeing continued robust demand for smartphones, analyst Simona Jankowski repeated her Buy rating on RIM, as well as raised target price to $96 from $85.
One cost-effective way for investors to profit from Jankowski’s anticipation that the RIM June 18 earnings report will top estimates is to implement a “call spread.” Rather than buying the stock, investors can participate in potential gains by buying a July 85 call and selling a July 95 call, according to a report in Barron’s.
Goldman’s options strategists John Marshall and Stuart Kaiser stated, “With shares at $82.02, this strategy costs $3.10 for attractive upside leverage as an overlay on existing long positions, or as a stand-alone option strategy.”
The risk to the strategy is RIM’s stock does not advance above $85. If the stock is below that price at July expiration, investors will lose the $3.10 spent wagering on a RIM rally, the report added.
Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for access to information, including e-mail, phone, short message service (SMS), Internet and intranet-based applications. RIM’s portfolio of products, services and embedded technologies are used by organizations worldwide and include the BlackBerry wireless solution, the RIM Wireless Handheld product line, software development tools and software.
RIM operates offices in North America, Europe and Asia Pacific. In January 2009, the company completed the acquisition of Chalk Media Corp. In March 2009, RIM completed the acquisition of Certicom Corp.
In its recent chart, RIMM’s Bollinger Bands indicate a relatively stable condition as reflected by tighter than normal band width. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. 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. 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.
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