9
Jul

Featuring; DCP’s $1.5B contract; AMZN drops Kindle price; LVS’ capital raising efforts; FDO’s record earnings; and AMGN’s positive drug data.

Today’s Stock Alerts include: DynCorp Int’l Inc. (NYSE: DCP), Amazon.com (Nasdaq: AMZN), Las Vegas Sands Corp. (NYSE: LVS), Family Dollar Stores Inc. (NYSE: FDO) and Amgen Inc. (Nasdaq: AMGN).

DynCorp Int’l Inc. (NYSE: DCP) Stock Alert – DCP Secures $1.5 billion Afghanistan Support Services Contract from the Army

Defense contractor DynCorp Int’l Inc. (NYSE: DYN) has reportedly been awarded a $1.5 billion Afghanistan support services contract from the Department of the Army, which is a part of the next phase of the Army’s Logistics Civil Augmentation Program, or Logcap, according to a government notice.

As per agreement, Falls Church, VA-based DynCorp International will provide existing bases within the Afghanistan South-Area of Responsibility (AOR) with operations and maintenance support, including but not limited to: facilities management, electrical power, water, sewage and waste management, laundry operations, food services and transportation motor pool operations. Also, the company will provide various construction services for additional sites, the report said.

“It is a tremendous honor for the DynCorp International Team to provide logistics support in Afghanistan for the men and women of the U.S. Army,” DCP president and CEO William L. Ballhaus said in a press release. “I cannot think of a more important contribution we can offer for our nation’s security, or a better example of serving today for a safe tomorrow. Through our relentless focus on performance, compliance, ethics and accountability, the DynCorp International Team provides the best value for the U.S. Army and for the taxpayer.”

The report said the Army has directed the company to begin task order performance immediately.

DynCorp International is a provider of specialized, mission-critical professional and support services outsourced by the U.S. military, non-military U.S. governmental agencies and foreign governments. The company’s expertise is in law enforcement training and support, security services, base and logistics operations, construction management, aviation services and operations, and linguist services.

It also provides logistics support for all its services. The company’s customers include the U.S. Department of Defense (DoD), the U.S. Department of State (DoS), foreign governments, commercial customers and certain other U.S. federal, state and local government departments and agencies. Revenue from the U.S. government accounted for approximately 96% of total revenue during the fiscal year ended April 3, 2009 (fiscal 2009).

In its recent chart, DCP’s 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. 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 suggests high price relative to its recent price action.

Amazon.com (Nasdaq: AMZN) Stock Alert – AMZN Slashes Kindle Price by 17%

Online retailer Amazon.com (Nasdaq: AMZN) recently said it cut Kindle electronic reader’s price by 17% to $299, amid anticipated competition in the e-reading market. The device allows readers to purchase and download books through a wireless connection and read them on the screen using a patented digital ink technology, which is easier on the eyes than a standard electronic display.

Amazon, which has been dominating the market, has put Kindle under the $300 mark for the first time since its debut nearly two years ago. The device’s second version, priced at $359, was just unveiled in February.

Amazon faces competition from Sony Corp.’s e-book reader, while newspaper publisher Hearst Corp. and a start-up called Plastic Logic are also developing e-reader devices.

According to a company spokeswoman, Amazon was able to cut the price of the Kindle as higher volume had reduced manufacturing costs.

The company has never disclosed sales figures for the device, but analysts believe the company has sold more than 1 million units of the device since its original debut in the fall of 2007.

Customers who had ordered Kindles that had shipped within the past 30 days would receive a $60 credit on the price difference, Amazon said.

Amazon.com offers services to consumer customers, seller customers and developer customers. The company serves its consumer customers through its retail Web sites. It offers programs that enable seller customers to sell their products on the company’s Web sites and their own branded Web sites.

It serves developer customers through Amazon Web Services, which provides access to technology infrastructure that developers can use to enable virtually any type of business. In addition, the company generates revenue through co-branded credit card agreements and other marketing and promotional services, such as online advertising. The company’s operations are organized into two principal segments: North America and International. In August 2008, Amazon.com purchased Shelfari, a social network for book lovers. In December 2008, Amazon.com announced the completion of its acquisition of AbeBooks.

In its recent chart, AMZN’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 below the stock’s 13-day moving average, the bearish sign is more pronounced with decreasing moving averages. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend.

Las Vegas Sands Corp. (NYSE: LVS) Stock Alert – LVS to Potentially Raise $3 billion to $4 billion through IPO for Macau Assets

Casino operator Las Vegas Sands Corp. (NYSE: LVS) is reportedly considering an initial public offering or sale of Macau assets to potentially raise $3 to $4 billion, the Wall Street Journal reported.

In an interview with Dow Jones, CEO Sheldon Adelson noted, “An IPO is one of five possibilities we are aggressively, sincerely, actively looking at.” The casino firm needs to generate roughly $2 billion to finish its five pending hotel projects in Macau. However, Adelson seems relatively optimistic; he added, “We are in the trough of the cycle so things are looking up… we are adjusting our internal forecasts almost every week.”

The heavily-indebted casino operator also said it may raise cash by selling stakes to private equity firms or getting construction companies involved in its projects to assemble their own financing. The company denied reports it was considering a bond issue in the United States.

Word of the company’s plans to raise capital pushed its shares up yesterday, while also lifting shares of other casinos.

Las Vegas Sands Corp (LVSC) owns and operates The Venetian Resort Hotel Casino (The Venetian Las Vegas), The Palazzo Resort Hotel Casino (The Palazzo) and The Sands Expo and Convention Center (the Sands Expo Center) in Las Vegas, Nevada, and the Sands Macao, The Venetian Macao Resort Hotel (The Venetian Macao) and the Four Seasons Hotel Macao, Cotai Strip (the Four Seasons Macao) in Macao, People’s Republic of China (China). The Company is creating a master-planned development of integrated resort properties, anchored by The Venetian Macao. In addition, the Company is developing Marina Bay Sands, an integrated resort in Singapore, and Sands Casino Resort Bethlehem (the Sands Bethlehem), an integrated resort in Bethlehem, Pennsylvania.

In its recent chart, LVS 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 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. With share prices currently below the stock’s 13-day moving average, the bearish sign is more pronounced with decreasing moving averages.

Family Dollar Stores Inc. (NYSE: FDO) Stock Alert – FDO Shares Boosted as Co. Posts Record Earnings

Family Dollar Stores Inc. (NYSE: FDO) recently posted its third quarter of fiscal 2009 ended May 30, 2009. The discount retailer posted profit as customers hit its stores amid recession, while beating analysts’ expectations.

According to its earnings report, third-quarter net income rose by nearly 36% to $87.7 million, or 62 cents a share, from $64.7 million, or 46 cents a share in the year-ago period. The retailer beat the Wall Street’s estimate of 59 cents a share, according to a survey by FactSet Research. Meanwhile, same-store sales in June rose 2%.

Looking forward, Family Dollar expects fourth-quarter earnings of 39 to 43 cents a share, compared to the Wall Street target of 39 cents a share.

“In today’s environment, Family Dollar’s commitment to value has great appeal. Customers are shopping us more frequently and relying on us to meet more of their basic needs. As a result, we continue to gain market share,” chairman and CEO Howard R. Levine said in the press release.

Family Dollar Stores operates a chain of more than 6,500 general merchandise retail discount stores in 44 states, providing consumers with a selection of merchandise in neighborhood stores. The company’s merchandise assortment includes consumables, home products, apparel and accessories, and seasonal and electronics. The company’s products include apparel, food, cleaning and paper products, home decor, beauty and health aids, toys, pet products, automotive products, domestics, seasonal goods and electronics.

In its recent chart, FDO’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 near its upper Bollinger Band, the stock suggests high price relative to its recent price action.

Amgen Inc. (Nasdaq: AMGN) Stock Alert – AMGN Rise as Osteoporosis Drug Shows Positive Data

Shares of Amgen Inc. (Nasdaq: AMGN) rose yesterday as it reported its experimental bone drug, denosumab met a key treatment goal in breast cancer patients.

The company said a late-stage trial showed denosumab was superior to Novartis AG’s Zometa in preventing complications related to the spread of cancer to bones.

If successful in all three cancer trials, reports say the drug could ultimately add billions of dollars in sales to Amgen and give a boost to its stock.

In a report, analyst Geoffrey Porges of Sanford Bernstein stated, “The results were better than anticipated and support higher revenue potential than previously expected. Since Zometa is the most powerful agent in the existing bisphosphonate class, this represents a real breakthrough and sets a high bar for future competitors from other classes.”

According to Geoffrey Meacham, an analyst at JPMorgan, the results were enough to warm the heart of even cynical investors. “The stunning denosumab data could revive faith that important breakthroughs actually do happen and that investors can be rewarded, he said.

Amgen is a biotechnology company that discovers, develops, manufactures and markets human therapeutics-based on advances in cellular and molecular biology. The company operates in human therapeutics. It markets human therapeutic products in the areas of supportive cancer care, nephrology and inflammation. Its principal products include Aranesp (darbepoetin alfa), EPOGEN (Epoetin alfa), Neulasta (pegfilgrastim), NEUPOGEN (Filgrastim) and Enbrel (etanercept). Aranesp and EPOGEN stimulate the production of red blood cells to treat anemia and belong to a class of drugs referred to as erythropoiesis-stimulating agents (ESAs). On January 4, 2008, the company completed the acquisition of Dompe Biotec, S.p.A.

In its recent chart, AMGN’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. 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.

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