24/7 Wall St. » EGLE

24/7 Wall St. Closing Bell (AAPL, T, XRX, GE, LNKD, BIG, AZO, APD, BHI, COH, ITW, MHP, RSH, RF, HSY, NFLX, IBM, NAT, EGLE)

Paul Ausick — Tue, 24 Apr 2012 20:11:08 +0000

Markets opened mixed this morning, with the DJIA showing much more strength than the S&P 500, which opened higher, or the Nasdaq, which opened lower. The S&P Case-Shiller house price index showed another decline in home prices (our coverage here), although new home sales rose slightly. The Conference Board’s consumer confidence index was lower this month as well (our coverage here). Tech stocks have been weak all day as sentiment about the Apple Inc. (NASDAQ: AAPL) earnings report faltered following comments from AT&T Inc. (NYSE: T) related to iPhone connections (our coverage here). The US dollar index fell today, now down -0.25% at 79.220. The GSCI commodity index is down -0.28% at 675.82, with commodities mostly rising on the weaker dollar. WTI crude oil closed up 0.4% at $103.55/barrel, and Brent crude trades down -0.48% at $118.14/barrel. Gold settled up 0.7% today, at $1,643.80/ounce.

The unofficial closing bells put the DJIA up about 74 points to 13,001.56 (0.58%), the NASDAQ fell nearly 9 points (-0.30%) to 2,961.60, and the S&P 500 rose 0.37% or about 5 points to 1,371.97.

There were several analyst upgrades and downgrades today, including Xerox Corp. (NYSE: XRX) reiterated ‘buy’ with a target price of $13 at Argus; General Electric Co. (NYSE: GE) reiterated ‘buy’ with a target price of $22 at Argus; LinkedIn Corp. (NYSE: LNKD) started as ‘overweight’ at Piper Jaffray; Big Lots Inc. (NYSE: BIG) cut to ‘hold’ at Deutsche Bank; and AutoZone Inc. (NYSE: AZO) raised to ‘overweight’ at JPMorgan.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: AT&T is up 3.9% at $31.81; Air Products and Chemicals Inc. (NYSE: APD) is down -4.3% at $84.91; Baker Hughes Inc. (NYSE: BHI) is up 5.3% at $43.23 (more coverage here); Coach Inc. (NYSE: COH) is down -4% at $72.10 (more coverage here); Illinois Tool Works Inc. (NYSE: ITW) is up 2.7% at $56.71; McGraw-Hill Companies Inc. (NYSE: MHP) is down -3% at $47.65; RadioShack Corp. (NYSE: RSH) is down -10.3% at $5.36 after posting a new 52-week intraday low of $5.27; Regions Financial Corp. (NYSE: RF) is up 5.4% at $6.42; The Hershey Co. (NYSE: HSY) is up 5.7% at $65.86 after posting a new 52-week intraday high of $66.94; and Netflix Inc. (NASDAQ: NFLX) is down -14.6% at $87.01.

Other standouts from today include the following stocks:

International Business Machines Corp. (NYSE: IBM) is up .0.8% at $200.24. The tech giant raised its dividend today. More coverage here.

North American Tankers Ltd. (NYSE: NAT) is up 1.5% at $14.01. Shipping rates for dry bulk shippers are rising and tanker rates, especially for the smaller (1 million barrels) crude carriers of the Suezmax class. Many other shippers are also getting a boost today, including Eagle Bulk Shipping Inc. (NASDAQ: EGLE), which is up 6.8% at $1.88.

Stay tuned for Wednesday. The Federal Reserve Open Market Committee wraps up its two-day meeting and Chairman Ben Bernanke will hold a press conference this afternoon. We have noted the following events on the schedule (all times Eastern):

7:00 a.m. – Mortgage Bankers Association purchase applications
8:30 a.m. – Durable goods orders
10:30 a.m. – EIA weekly petroleum status report
11:30 a.m. – 5-yr note auction
2:00 p.m. – FOMC forecasts

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: AAPL, APD, AZO, BHI, BIG, COH, EGLE, GE, HSY, IBM, ITW, LNKD, MHP, NAT, NFLX, RF, RSH, T, XRX

24/7 Wall St. Closing Bell (NSC, DNDN, EBAY, CELG, DLR, AXAS, AMCX, CATO, E, FF, ROST, TA, CLWT, TWER, AIXG, WGO, JVA, SCHL, FLML, VRS, EGLE, VRNG)

Paul Ausick — Thu, 15 Mar 2012 20:07:06 +0000

Markets opened higher this morning after positive news on new unemployment benefits claims and manufacturing (more coverage here). Indexes have risen more or less steadily all day, with the S&P set to close above 1,400 for the first time since June 2008. The US dollar index is weaker today, down -0.50% at 80.165. Most commodities rose on the dollar weakness, with the notable exception of crude oil. WTI crude oil closed down -0.3% at $105.11/barrel, and Brent crude trades down -1.52% at $122.69/barrel. Gold settled up 1% today, at $1,659.50.

The unofficial closing bells put the DJIA up about 58 points to 13,252.76 (0.44%), the NASDAQ rose more than 15 points (0.51%) to 3,056.37, and the S&P 500 rose 0.60% or more than 8 points to 1,402.59.

There were several analyst upgrades and downgrades today, including Norfolk Southern Corp. (NYSE: NSC) cut to ‘equal weight’ at Barclays; Dendreon Corp. (NASDAQ: DNDN) started as ‘hold’ at Stifel Nicolaus; Ebay Inc. (NASDAQ: EBAY) cut to ‘neutral’ at Credit Suisse; Celgene Corp. (NASDAQ: CELG) started as ‘buy’ at Stifel Nicolaus; and Digital Realty Trust (NYSE: DLR) cut to ‘hold’ at Jefferies.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Abraxas Petroleum Corp. (NASDAQ: AXAS) is down -4.6% at $3.55; AMC Networks Inc. (NASDAQ: AMCX) is down -4% at $44.18; Cato Corp. (NYSE: CATO) is down -0.2% at $27.51; ENI S.p.A. (NYSE: E) is up 1.1% at $47.89; FutureFuel Corp. (NYSE: FF) is up 1.4% at $11.53; Ross Stores Inc. (NASDAQ: ROST) is down -0.5% at $56.31; and Travelcenters of America LLC (AMEX: TA) is up 15% at $6.10.

Other standouts from today include the following stocks:

Euro Tech Holdings Co. Ltd. (NASDAQ: CLWT) is up 55% at $4.50. The Chinese water treatment company has been awarded two new contracts.

Towerstream Corp. (NASDAQ: TWER) is up nearly 42% at $3.69. The 4G wireless provider reported better-than-expected earnings after markets closed yesterday.

Aixtron SE (NASDAQ: AIXG) is up more than 18% at $131. The LED maker is getting a boost from an analyst’s upgrade. More coverage here.

Winnebago Industries Inc. (NYSE: WGO) is up about 16% at $10.32. The recreational vehicle maker missed estimates this morning, but reported a strong order backlog.

Coffee Holding Co. Inc. (NASDAQ: JVA) is up more than 15% at $13.73. The coffee wholesaler continues to attract buying on its strong earnings report last week.

Scholastic Corp. (NASDAQ: SCHL) is up more than 14% at $36.89 after posting a new 52-week high of $40.17 earlier today. The children’s media company raised its 2012 guidance.

Flamel Technologies SA (NASDAQ: FLML) is down nearly -23% at $6.18. The French-based biopharmaceutical company has acquired Eclat Pharmaceuticals and Eclat’s CEO will take over the combined company.

Verso Paper Corp. (NYSE: VRS) is down nearly -13% at $1.77. The paper firm is giving back last week’s gains as its tender offer had to be extended.

Eagle Bulk Shipping Inc. (NASDAQ: EGLE) is down more than -12% at $1.58. The dry bulk shipper reported a narrower-than-expected loss yesterday, but shipping companies still face a terrible year.

Vringo Inc. (AMEX: VRNG) is down more than -11% at $1.63. The social networking software company is merging with Innovate/Protect Inc. See the press release for details.

Stay tuned for Friday. Chicago Federal Reserve President Charles Evans is giving a speech. We have also noted the following events on the schedule (all times Eastern):

8:30 a.m. – Consumer price index
9:15 a.m. – Industrial production
9:55 a.m. – Reuters/University of Michigan consumer sentiment index

Paul Ausick

Filed under: Market Close Tagged: AIXG, AMCX, AXAS, CATO, CELG, CLWT, DLR, DNDN, E, EBAY, EGLE, FF, FLML, JVA, NSC, ROST, SCHL, TA, TWER, VRNG, VRS, WGO

Morning Movers (SCHL, TWER, JVA, EGLE, FLML)

Paul Ausick — Thu, 15 Mar 2012 14:23:15 +0000

The three major US equities indexes opened higher this morning following a reported drop in new claims for unemployment benefits. The US producer price index rose pretty much in-line with expectations (more coverage here) and the Empire State manufacturing index came in better than expected (more coverage here). The dollar is slightly weaker today, down -0.18% this morning at 80.421. The DJIA is down more than 2 points at around 13,192, the Nasdaq Composite is up about 8 points at around 3,049, and the S&P 500 is down less than 1 point at around 1,394.

There are several stocks trading more heavily than usual this morning, and also experiencing large gains or drops in share prices. These include Scholastic Corp. (NASDAQ: SCHL), Towerstream Corp. (NASDAQ: TWER), Coffee Holding Co. Inc. (NASDAQ: JVA), Eagle Bulk Shipping Inc. (NASDAQ: EGLE), and Flamel Technologies SA (NASDAQ: FLML).

Scholastic Corp. is up more than 20% at $38.75 after posting a new 52-week high of $40.17 earlier today. Volume is already more than 3x the daily average of about 178,000 shares traded. The children’s media company raised its 2012 guidance.

Towerstream is up nearly 22% at $3.17. Volume is already about 3x the daily average of about 337,000 shares traded. The 4G wireless provider reported better-than-expected earnings after markets closed yesterday.

Coffee Holding Co. is up more than 16% at $13.87. Volume is already more than double the daily average of around 533,000 shares traded. The coffee wholesaler continues to attract buying on its strong earnings report last week.

Eagle Bulk Shipping is down about -9% at $1.64. Volume is already about one-third the daily average of around 975,000 shares traded. The dry bulk shipper reported a narrower-than-expected loss yesterday, but shipping companies still face a terrible year.

Flamel Technologies is down more than -19% at $6.18. Volume is already more than double the daily average of around 158,000 shares traded. The French-based biopharmaceutical company has acquired Eclat Pharmaceuticals and Eclat’s CEO will take over the combined company.

Paul Ausick

Filed under: Market Open, Market Roundups Tagged: EGLE, FLML, JVA, SCHL, TWER

DryShips Acquires Competitor (DRYS, OCNFD, EGLE, EXM, GNK)

247wallst — Tue, 26 Jul 2011 13:51:54 +0000

In October 2007, shares of bulk carrier DryShips Inc. (NASDAQ: DRYS) traded as high as $124/share. The share price today is less than $4/share, but that is not stopping the company from making an acquisition. And one may be forgiven for wondering what on earth DryShips can be thinking of.

The company will acquire Ocean Freight, Inc. (NASDAQ: OCNFD) for a total consideration of $19.85/share, more than double Ocean Freight’s closing price of $9.47 yesterday. The deal includes $11.25 in cash and 0.52326 shares of Ocean Rig UDW Inc., a Norwegian company that trades over the counter and which closed yesterday at $16.44 and is 78% owned by DryShips. As part of the deal, Ocean Rig shares will be listed on the Nasdaq GS when the deal closes, now expected to happen in the fourth quarter of this year.

Shipping companies are currently suffering from a rapid expansion of their fleets before the financial crisis that has left them with an oversupply of carriers. Daily rates are quite low, although the Baltic Dry Index has risen recently from a nadir of about 1,100 to around 1,300. In May of 2008, the BDI rose to nearly 12,000.

The purchase seems a bit odd, to say the least. DryShips has been sinking time and money into building an ultra-deepwater drilling fleet at Ocean Rig. Ocean Freight owns six dry bulk carriers, four Capesize and two Panamax, and has contracted to buy five newbuild Very Large Ore Carriers for delivery in 2012 and 2013.

At the end of 2010, DryShips carried long-term debt of $2.15 billion and Ocean Freight had long-term debt of $132 million. DryShips will assume Ocean Freight’s debt as part of the deal and will also assume Ocean Freight’s existing credit facilities which include an aggregate debt limit of $142.8 million at Libor plus 250 basis points with a maturity date of October 2015.

DryShips isn’t the only shipper that is suffering. Shares in Eagle Bulk Shipping, Inc. (NASDAQ: EGLE) are down nearly -50% year to date, as are shares in Excel Maritime Carriers, Ltd. (NYSE: EXM). Shares in Genco Shipping and Trading Ltd. (NYSE: GNK) are off more than -50%.

None of these shippers has a price/book ratio above 0.5, and some are as low as 0.13. While numbers like this might often indicate a value play, in this case it very likely indicates a value trap. Shipping companies may turn around, but not this year and very probably not next year or the year after that either.

DryShips’ shares are down nearly -4.5% in early trading, to $3.66, barely within the 52-week range of $3.56-$6.44. A new low is very likely today.

DryShips clearly saw an opportunity to buy while there was blood on the ground. That some of the blood was its own didn’t stop them.

Paul Ausick

Filed under: General Tagged: DRYS, EGLE, EXM, GNK, OCNFD

Shipping Faces Oversupply, Rising Fuel Costs (AMKBF, DRYS, GNK, DSX, EGLE, EXM)

Administrator — Wed, 11 May 2011 17:15:46 +0000

Danish shipping giant A.P. Moeller-Maersk A/S (OTC: AMKBF) posted profit of $1.22 billion for the first quarter on revenue of about $15.2 billion, both significantly better than the same period a year ago. But the company’s outlook for the rest of the year is not so bright, and neither is the outlook for other shippers.

DryShips Inc. (NASDAQ: DRYS) is scheduled to report results tomorrow, and analysts are expecting EPS of $0.16 on revenue of $234 million. For the June quarter, expectations rise to EPS of $0.22 on revenue of nearly $279 million. Many other shippers have already reported quarterly results, including Genco Shipping & Trading Ltd. (NYSE: GNK), Diana Shipping Inc. (NYSE: DSX), Eagle Bulk Shipping, Inc. (NASDAQ: EGLE), and Excel Maritime Carriers, Ltd. (NYSE: EXM).

Charter rates remain low for both dry bulk and container shippers. The Baltic Dry Index, a measure of dry bulk shipping rates, currently sits at $1,344, about double its low of around $663, but still well below year-ago rates of nearly $4,000. Container shipping rates are rising somewhat, but by less than the industry would hope. From Shanghai to the Europe, the cost of shipping a twenty-foot container (teu) fell from $925 to $919. Rates had been as high as $1,300/teu earlier this year. Meanwhile, the cost of bunker fuel from Asia to Europe have risen to a record high of $776/teu.

Ironically, Diana Shipping was able to beat expectations for its first quarter by expanding the size of its fleet. The company’s average charter rate for the quarter was $31,592, compared with $31,982 in the same period a year ago. But the company averaged more than 2 more vessels in operation this year, making up for the lower rates and higher fuel costs. Genco, like Diana, also added new vessels in the first quarter, which helped the company overcome a 37% decline in shipping rates.

Eagle posted an EPS loss of -$0.09 for the first quarter, including a $6.6 million one-time loss. Excluding the item, the company posted EPS of $0.01 on revenue of about $87 million, which was up 60% compared with the same period a year ago. The company is expected to post an EPS loss of -$0.01 next quarter on revenue of $65.5 million, a sharp sequential decline from first quarter revenue of $86.7 million.

Excel posted an EPS loss of -$0.01 on a doubling of expenses. The company’s blended charter day rate was down by -20% year-over-year.

The number of dry bulk ships is expected to increase by at least 10% this year, while cargoes are expected to rise by only 5%. Add in higher fuel costs, and the outlook for shippers in 2011 is decidedly downbeat.

Paul Ausick

Filed under: Commodities, International Markets, Transports Tagged: AMKBF, DRYS, DSX, EGLE, EXM, GNK

Top Active Trader Alert Stocks (EGLE, MIPS, RFMD, PSUN, YHOO)

247wallst — Wed, 26 Jan 2011 13:54:31 +0000

Active traders and day traders have many stocks to choose from this Wednesday morning. We are tracking news and moves in shares of Eagle Bulk Shipping (NASDAQ: EGLE), MIPS Technologies (NASDAQ: MIPS), RF Micro Devices (NASDAQ: RFMD), Pacific Sunwear (NASDAQ: PSUN), and Yahoo! Inc. (NASDAQ: YHOO).

Eagle Bulk Shipping (NASDAQ: EGLE) is up nearly 4% premarket to $4.16, relative to a 52-week range of $3.91-$6.08. The shipping company was upgraded to outperform from market perform by FBR Capital.

MIPS Technologies (NASDAQ: MIPS) is down roughly 10% on light volume to $13.68, relative to a 52-week range of $3.57-$18.19. The semiconductor company reported weak 2Q earnings.

RF Micro Devices (NASDAQ: RFMD) is down 8.5% on heavy volume to $7.01, relative to a 52-week range of $3.65-$8.37. The chip manufacturer reported weak 3Q earnings.

Pacific Sunwear (NASDAQ: PSUN) is down 3% premarket on moderate volume to $4.36, relative to a 52-week range of $2.92-$6.84.

Yahoo! Inc. (NASDAQ: YHOO) which met earnings expectations, but nevertheless reported a revenue loss and weak guidance. Shares of YHOO were down nearly 2% premarket on very heavy trading to $15.71, relative to a 52-week range of $12.94-$19.12.

Michael B. Sauter

Filed under: Pre-Market Activity, Trading Alert Tagged: EGLE, MIPS, PSUN, RFMD, YHOO

Dry Bulk Shipping Stocks Rally

247wallst — Mon, 16 Nov 2009 21:39:36 +0000

Tickerspy’s Dry Bulk Shipping Stock Index (*DBULK) rose 5.1% today, beating the S&P 500 by 1.3.%. Dry shipping stocks were given a boost by upgrades today. Deutsche Bank upgraded Genco (NYSE: GNK), Euroseas Ltd (NASDAQ: ESEA), and Eagle Bulk Shipping (NASDAQ: EGLE) today. All three made major moves today.

Over half of the dry shipping stocks in the Tickerspy index has risen over 100% off of their 52-week lows. The industry was placed in serious jeopardy as global trade entered a state of decline during the credit crunch. Shipping rates fell dramatically as recently as this summer, but have been on the rise in recent months.

Garrett W. McIntyre

Posted in Transports Tagged: *DBULK, DRYS, DSX, EGLE, ESEA, EXM, Global Trade, GNK, KEX, NM, OCNF, ONAV, PRGN, SB, SBLK, TRMD

Top Analyst Downgrades (EGLE, IHG, NE, PHG)

247wallst — Fri, 08 May 2009 11:04:44 +0000

These are the top pre-market analyst downgrades we have seen early this Friday morning with more than two and a half hours until the open:

Eagle Bulk Shipping, Inc. (EGLE) Cut to Sell at Cantor Fitzgerald.
InterContinental Hotels (IHG) Cut to Hold at Jefferies.
Noble Energy (NE) Cut to Market Perform at FBR.
Philips (PHG) Cut to Neutral at UBS.

JON C. OGG

Posted in Analyst Calls Tagged: EGLE, IHG, NE, PHG

Top Analyst Upgrades & Downgrades (EXPE, F, JNJ, CTXS, DSX, EGLE, GM, JCI, HOT, URBN)

247wallst — Fri, 20 Mar 2009 11:50:19 +0000

These are the top upgrades and downgrades from Wall Street analysts this Friday morning:

Expedia (EXPE) Raised to Buy at Citigroup.
Ford (F) Started as Buy at UBS.
Johnson & Johnson (JNJ) Raised to Buy at UBS.
Citrix Systems (CTXS) Cut to Market Weight at Thomas Weisel.
Diana Shipping (DSX) Cut To Market Perform at Wachovia.
Eagle Bulk Shipping (EGLE) Cut To Market Perform at Wachovia.
General Motors (GM) Started as Sell at UBS.
Johnson Controls (JCI) Started as Buy at UBS.
Starwood Hotels (HOT) Cut to Underperform at FBR.
Urban Outfitters (URBN) Cut to Neutral at Cowen & Co.

JON C. OGG

March 20, 2009

Posted in Analyst Calls Tagged: CTXS, DSX, EGLE, EXPE, F, GM, HOT, JCI, JNJ, URBN

Top Pre-Market Analyst Upgrades (AGN, T, CCL, CB, EGLE, FMX, HR, MYL, TEVA)

247wallst — Wed, 25 Feb 2009 12:38:54 +0000

These are the top pre-market analyst upgrades and positive research calls from Wall Street we have seen this Wednesday morning with more than two hours until the market opens:

Allergan (AGN) Started as Outperform at Credit Suisse.
AT&T (T) Raised to Overweight at JPMorgan.
Carnival (CCL) Raised to Outperform at Credit Suisse.
Chubb (CB) Raised to Buy at UBS; Started as Outperform at RBC.
Eagle Bulk Shipping (EGLE) Raised to Outperform at Wachovia.
FEMSA (FMX) Started as Overweight at Barclays.
Healthcare Realty Trust (HR) Raised to Outperform at KBW.
Mylan Labs (MYL) Started as Outperform at Credit Suisse.
Teva Pharmaceutical (TEVA) Started as Outperform at Credit Suisse.

Jon C. Ogg
February 25, 2009

Posted in Analyst Calls Tagged: AGN, CB, CCL, EGLE, FMX, HR, MYL, T, TEVA