In the stock screening software that I use, I can slice and dice information in seemingly millions of ways.  Today, I searched for companies that were on a prolonged downtrend of 8 days or more.  Many of the companies that I found in the inauspicious group deserved to be there.  One didn’t:  Ariad Pharmaceuticals, Inc. (ARIA)

ARIA has had an distressing TEN (10) down days in a row. I searched news for reasons for such a prolonged decline and couldn’t find any.  They had no FDA turndowns, no going concern issues, no debt restructuring that will wipe out all common stockholders….NOTHING.

All I could find was a company that had a strong balance sheet, good liquidity and some VERY promising drug candidates.   ARIA is a biotechnology company focused on developing drugs to fight cancer.  They have two drugs: Ridaforolimus and AP24534 that, according to the company, look have great potential.  The links are for my readers to read about these drugs themselves.

The main issue facing the company is financing…because of their high cash burn rate.  The company is not under any going concern cloud currently, but they are going to need more money either through an equity raise, debt or co-development funds from partners like Merck (on Ridaforolimus).  Based upon what I see and my conversations with the company, I don’t think that will be a problem.

The chart speaks volumes to me:

The stock has rallied slightly today, but after such a long decline, I wouldn’t be surprised if it roars back.  Long-term this could be a very good stock to own, but since I am not a long-term investor forget I said that.

Short-term doesn’t look bad though.  ARIA is a very well put together company, IMO.

Good luck and good trading!

As a pure chart play, NCI Building Systems Inc. (NCS) is very interesting.  I had posted a in-depth review of NCS to the site a few weeks back and think that now is the time to take another look at the company.  The company is a manufacturer of metal products for the non-residential construction industry in the U.S.   Full description:  click here

My quick review of the company is that they have good revenues, decent margins, are making a profit (on reduced sales) but had some major balance sheet problems.  The main revolves around their debt structure.  They were in default under their agreements and the latest extension was due to lapse in late November.  Did you notice that I said “had” some major balance sheet problems.  Their white knight, in this case Clayton, Dubilier and Rice (CDR), rode in and “saved the day”.    Here is what NCS got:

• $250 Million Equity Investment
• Debt reduction of $323 Million
• Exchange offer for convertible notes completed

Here is what they gave up: 68.5% of the company. Shareholders got whacked, but now NCS has “the resources to sustain future growth” according to the press release announcing the deal.  Click here to read it.

Now that the debt and liquidity issues have been resolved, where is the lift in the stock?   Let’s look at the chart and see if one might be in the offing:

• MACD is giving a bearish signal - Below the zero line
• MACD, however, looks to be turning positive and if this trend continues could cross in the near term
• Stochastics are emerging from a strong oversold position.  It appears that the stock could be under accumulation again
• Recent chart history suggests that the stock usually rallies from chart setups like its current one.

Since I typically only look at short-term price action, I am looking at NCS for a near term bounce.  The company fundamentals have improved with the recapitalization by the private equity firm, CDR….in fact, that is a huge endorsement of NCS by CDR.

Read both reports to understand NCS well and watch the chart.!

Good luck and good trading

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DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

I have a Rite Aid near my home that I have stopped in to on several occasions.  I can tell you I am in no hurry to go back. The store looks old and tired and is not laid out very well.  The store personnel didn’t seem to care that I was even there.

I don’t know if my local store is a valid indicator of the state of Rite Aid Corporation around the country, but my experience seems to be indicative of RAD’s larger problems.  Customers are staying away in droves.  Whether it is strictly the economy or other issues,

Financially, their balance sheet is still a mess. Their income statement, while showing signs of improvement (sales holding steady, operating profits the last two Q’s) still doesn’t contain lots of good news.  RAD Corporate issued a corporate update (considerably more upbeat than my quick analysis) - you can read it by clicking HERE

I did not come to kill Rite Aid as a stock or a company, but my belief is that the company is not “out of the woods” yet.

However, as a chart play, there might be a reason to look at RAD.

My chart analysis shows me that:

• The stock is sitting near a good support level
• Accum/Dist indicates that the stock may be in accumulation again
• Stochastics indicate that RAD is oversold
• Bearish MACD signal is lessening

See for yourself!

To my mind, RAD is a short-term play only.  Big profits were made in its 2009 run from 20 cents to over $2.00.  I don’t know if RAD has that kind of move again or not (I kinda doubt it), but watch for any surges.  I would never recommend buying RAD on the HOPE that it will go up, but if the chart is any indicator then there MIGHT be a bounce in it.

Good luck and good trading

Drink in the PROFITS with WTAR today

“Water, Water Everywhere and not a drop to drink”.  That quote, from the Rime of the Ancient Mariner is uttered by sailors that are dying of thirst on a ship, ironically enough, surrounded by water.

Unfortunately, the same stanza can be uttered by people, organizations, and governments around the world.

From the United Nations Water Site (www.unwater.org) , we learn that while over 70% of the earth’s surface is covered by water, most of it is unsuitable for human consumption. It is estimated that freshwater lakes, rivers and underground aquifers represent only 2.5 per cent of the world’s total water supply (the rest is salt water and not potable).

This potable water is also very unevenly distributed around the globe. Countries such as Brazil, Russia and Canada are blessed with an abundance of fresh water – although even these countries still have problems supplying drinking water to all their citizens.

Other areas of the world, such as China, Mexico and India are not so lucky. China has approximately 21 per cent of the world’s population but has access to only 7 per cent of the world’s freshwater. Beijing is sinking by four inches per year as a result of water over-consumption and depletion of its water table. Certain areas in Mexico are sinking as much as one foot per year.

Since 70% of the Earth’s surface is covered in water….why do we need companies that “make water”? Why do we even have water shortages?  Unfortunately, most of the water in the world is not usable or accessible for everyday purposes.

Huge market opportunities exist for companies (like our alert company today) to deliver fresh, clean water directly to where it is needed…for business, personal and humanitarian purposes.

My alert company today is Wataire International, Inc. (WTAR)

Wataire International, Inc., a development stage company, is engaging in the marketing and distribution of commercial and home/office atmospheric water generation machines in the United States and around the world.

What is an “Atmospheric Water Generator” (AWG).

AWGs are a new application of a well-known principle and an existing technology. They work by converting humidity in the air to water. The air entering an AWG is filtered so that only clean air passes across the cold surface of the machine’s coil. Subsequent filtration and ultraviolet (UV) treatment ensures that the drinking water is bacteria and virus free. AWGs work using exactly the same principle as a dehumidifier – except that the water is collected and stored rather than simply evacuated.

• It sells small-scale units, which include an upright model and a countertop model to produce between 4 to 7 gallons of water per day depending on humidity and temperature levels of the location of the unit;

• Commercial/industrial units that produce approximately 5,000 liters/1320 gallons per day of safe drinking water

Potential Markets and customers

To date, WTAR has identified high-potential applications for Atmospheric Water Generators (AWGs) in 10 different markets worldwide that it will initially target. These ten markets include, among others:
1. Military applications;
2. Oil and mining operations;
3. New and existing tourist resorts,
4. Beverage bottling plants,
5. Housing developments (where an AWG can be supplied as a appliance.)
6. Greenhouses and agriculture
7. Tourist resorts
8. Commercial
9. Residential
10. Humanitarian Purposes

WTAR’s target customers include businesses, governments, and people who are situated in numerous countries around the world. In addition, it owns intellectual property relating to a water treatment process and devices for water-from-air machines.

And, check out this news relase! “Wataire Tackles the Global Water Crisis Head On“

According to recent studies by the World Health Organization, approximately 1 billion people lack access to potable water. China alone, with its 1.26 billion people and over 300 cities are running short on water due to pollution and increased demand. Other countries such as India, whose population is expected to grow to 1.36 billion people by 2025, are also facing a water crisis.

“These markets represent a significant opportunity for our company both in terms of potential sales but mainly for the impact on peoples lives our technology and products will have” said Robert Rosner, President and CEO of Wataire International Inc. “Our award winning product will now have a true impact on peoples lives returning sustainable value to our shareholders both in terms of financial reward and social capital.”  Read full release here.

And, more… “Wataire’s Mexican Distributor Leading the Way in Local Markets”

Agua De Aire Latin America Inc. is currently working with state and municipal government in providing a solution to the provision of clean, drinkable water. The company has also begun commercializing the home and office unit (WATAIRE 4010) to government, corporations and individuals.

“Since we became a distributor for Wataire, the response and demand from corporations and government agencies has been overwhelming,” said Mr. Javier Deboy, Sales Manager for Agua De Aire Latin America Inc.

“The Mexican market is a very important market for Wataire due to its inadequate supply and availability of clean drinking water. The market is filled with suppliers of bottled water services, which make home and office deliveries and these services have continually increased in price, leaving a huge potential for our WATAIRE 4010 unit,” said Robert Rosner, CEO of WTAR. “The water issue is being addressed by the various levels of governments and a priority is being emphasized to provide the 100 million inhabitants with clean, drinkable water and Wataire’s products will be at the forefront of such a solution,” further added Mr. Rosner. Read full release here.

To the chart:

After a strong runup in mid-September, the stock has retreated to trade in the 10 to 12 cent range.  The stock is neither oversold or overbought.  The MACD continues to trend in a bullish direction and is well above the zero line.  The recent volume spikes have shown strong accumulation wherein the highest volume was on the up days and the lower volume on down or “selling” days.  There is a possibility that WTAR can retest its recent highs.  If that 19 cent level is breached, there doesn’t appear to be any meaningful resistance ahead.

Do your due diligence.  Be sure and check out the company website.  It is chock full of good information about what they are accomplishing.

WTAR has the potential to be my THIRD winner of the week…and, it is only Tuesday!

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Featuring RAD’s Q1 results; TJX’s $9.75M data breach settlement; XDSL’s nanobattery technology; C’s decision to boost employee salaries to offset bonuses; and SVU’s Q1 profit.

Today’s Stock Alerts include: Rite Aid Corp. (NYSE: RAD), The TJX Companies Inc. (NYSE: TJX), mPhase Technologies Inc. (OTCBB: XDSL), Citigroup Inc. (NYSE: C) and SUPERVALU Inc. (NYSE: SVU).

Rite Aid Corp. (NYSE: RAD) Stock Alert - RAD Narrows Loss, but Issues Downside Guidance for FY10

Retail drugstore chain Rite Aid Corp. (NYSE: RAD) today announced its first-quarter results, posting a loss of $98.4, or 11 cents a share, for its fiscal first quarter ended May 30, 2009, its eighth consecutive quarterly loss. However, thanks to recent store closures and cost cuts, the company’s loss came in smaller than expected. continue

Today’s Stock Alerts include: Pall Corp. (NYSE: PLL), Texas Instruments Inc. (NYSE: TXN), Mattel Inc. (NYSE: MAT), Seagate Technology Inc. (NASDAQ: STX), Rite Aid Corp. (NYSE: RAD) and Palm Inc. (NASDAQ: PALM).

Pall Corp. (NYSE: PLL) Stock Alert – Pall Corporation Secures Water Filtration Project in Philippines, the Largest in Philippines Ever

Pall Corp (NYSE: PLL) shares slipped .19% this morning, trading at $26.55. The global leader in water filtration and purification systems recently announced it has been awarded a $14.7 million contract to design and install a Pall Aria (TM) microfiltration/reverse osmosis membrane water treatment in the Philippines capital of Manila.  The Manila project represents the largest filtration project ever undertaken in the Philippines, and establishes the East Hills, NY-based Pall as the leading filtration company in Southeast Asia, said Pall in a news release.

One of the two privatized water suppliers in Manila Metro area, Maynilad Water Services Inc., awarded the contract aimed at servicing an area population of 8 million to 9 million people in parts of Cavite province and western Metro Manila. continue

Wall Street slipped after an early-morning advance, driving stocks down; TNL surged 6%.

Google Inc. (Nasdaq: GOOG) Stock Alert – Acer Offers ‘Netbook’ Buyers Google’s Android

Google Inc. (Nasdaq: GOOG) shares slipped .43% to $426.89 in today’s early trading. The Associated Press reported “netbook” computers made by Acer Inc. will now offer Google’s new operating system, Android, as well as Microsoft’s Windows, giving buyers of DOS machines a choice of operating systems outside of the Windows/Linux hold.

Android’s break into the operating system market is greatly boosted by the decision of the world’s third-largest PC maker to promote the clear choice between Google and Microsoft.

Android is already freely distributed by Google for mobile phones, giving sellers and consumers a cheaper alternative to Windows, Acer executive Jim Wong said at the Computex computer show in Taiwan.  Wong also cited Android’s fast boot-up time as a positive feature. continue