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Russell Rebalance Included Many Cult Stocks (CBOU, DDRX, OPWV, STEM, UBET)

247wallst — Fri, 19 Jun 2009 16:26:36 +0000

There are some interesting cult stocks which have recovered so much that they are being added into the Russell 3000 Index when the index gets rebalanced and reconstituted at the end of this month. Some of these are new entirely and some of these have been booted off of the Russell 3000 Index before. We have given some detailed color and insight on the following cult stocks: Carribou Coffee Company (NASDAQ: CBOU), Diedrich Coffee Inc. (NASDAQ: DDRX), Openwave Systems Inc. (NASDAQ: OPWV), StemCells Inc. (NASDAQ: STEM), and Youbet.com Inc. (UBET).

The coffee stocks have rallied so much that we now have CARIBOU COFFEE COMPANY (NASDAQ: CBOU) heading into the Russell 3000 Index in the “Consumer Staples” sector. Its market cap is on the cusp as it is a mere $108 million, but this one also has risen over 400% from lows. At $5.62 today, its 52-week week range is $1.10 to $7.48.

DIEDRICH COFFEE INC. (NASDAQ: DDRX) is the other coffee stock, although it is a roaster, and it is being added into the Russell 3000 under the “Consumer Staples” sector. At $18.40 its market cap is only $100.6 million. Be advised that this has been the top performer of all stocks we track for 2009. If you bought 1,000 shares between November 2008 to March 2009, you would have paid $300 or less. But after the run-up, this $300 investment would be worth more than $18,000 today.

OPENWAVE SYSTEMS INC. (NASDAQ: OPWV) is being re-added back into the Russell 300 as a “Technology” sector stock. This cult stock should have probably ended up owning the space for digital content and digital actions in the mobile space. Instead it became the wireless and technology version of the Boulevard of Broken Dreams. As the carriers consolidated it killed the company’s business growth. Amazingly, this one is up more than 400% from its lows and at $2.37 its market cap is back to $197 million and the 52-week range is $0.45 to $2.43. There are many many holders who owned this up at $8.00 and higher.

STEMCELLS INC. (NASDAQ: STEM) is being added into the Russell 300 in the “Health Care” sector. This one now gets to join another stem cell stock in the index. This stock is $1.62 and its 52-week range is $0.66 to $3.07 and its market cap is now $167 million.

YOUBET.COM INC (NASDAQ: UBET) is being added to the Russell 3000 in the Consumer Discretionary sector. This stock has made a substantial comeback from lows (400%) and is very close to a yearly high. This one has traded higher over the last week in anticipation of the addition and its market cap is now $132 million.

Again, there are two more opportunities as the other Russell index changes will be amended today and again next Friday. It is always possible that some of these will change.

Jon C. Ogg
June 19, 2009

Posted in Cult Stock, Index, Mutual Funds, Trading Alert Tagged: CBOU, DDRX, OPWV, STEM, UBET

Youbet.com Files To Raise Cash (UBET)

247wallst — Wed, 26 Nov 2008 16:39:53 +0000

YouBet.com Inc. (NASDAQ: UBET) has just filed a mixed shelf registration with the SEC to allow it to sell securities to raise capital. The securities listed are any combination of common stock, preferred stock, stock purchase contracts, stock purchase units, warrants or rights.

The filing says that it can sell up to $29.85 million in securities.The use of funds is for general corporate purposes, which may includeadditions to working capital, repayment or redemption of existingindebtedness and financing of capital expenditures and acquisitions.But the company also noted in the use of funds section:

We may borrow additional funds from time to time from public andprivate sources on both a long-term and short-term basis and may sellcommercial paper to fund our future capital and working capitalrequirements in excess of internally generated funds.

No terms nor any underwriters were mentioned in this filing.

Shares closed up 6% at $0.88 in very light volume today. Its 52-weektrading range is $0.65 to $2.09 and its current market cap is listed as$36.5 million. As of November 25, 2008, YouBet.com had 41,519,024shares of common stock outstanding, of which 35,954,677 shares wereheld by non-affiliates.

Jon C. Ogg
November 26, 2008

Posted in Entertainment, Secondary Offering Tagged: UBET

Online Poker Protesting May Highlight Few Shares (CRYP, GIGM, UBET)

247wallst — Tue, 23 Oct 2007 06:43:17 +0000

We have noted several stocks in the past for online gambling repeals that would benefit if online gambling bans for U.S. citizens were lifted. Among these that trade in the U.S. are:

Cryptologic (NASDAQ:CRYP) is sort of the pure-play stock that traders would look at that trades in the U.S., although the former Canadian company moved overseas closer to its European client-base.
Taiwan’s online gaming software company that traders look to is GigaMedia Ltd. (NASDAQ:GIGM).
YouBet.com (NASDAQ:UBET) is one such company, although it too has had issues in the past.

The Poker Players Alliance is petitioning Capitol Hill this week to repeal part of the ban on online gambling, or at least for online poker. The alliance apparently represents 800,000 poker enthusiasts and is looking to get poker put in the same exemptions as online horse racing, lotteries, and fantasy sports. This follows a move by Congressman Barney Frank which we covered earlier this year, and his efforts are apparently gathering more support.

Interestingly enough, playing poker online is still done regularly and legally. But processing payments is the illegal part for U.S. citizens, and the laws currently allow the government to go after financial institutions that facilitate such payments if they process online gambling payments for U.S. citizens.

In the U.K., stocks like PartyGaming Plc and 888 Holdings Plc are two of the online gambling companies that would benefit from a repeal in online gambling for poker.

It is probably far too soon to make bets, no pun intended, on how this turns out. Even if the puritanical ban ends up getting repealed, it is not something that will happen overnight.

Jon C. Ogg
October 23, 2007

The 52-Week Low Club

247wallst — Wed, 10 Oct 2007 15:07:19 +0000

Georgia Gulf (GGC) Chemical producers out of favor. Falls to $12.23 from 52-week high of $28.65.

TOUSA (TOA) Home-builder. Drops to $1.17 from 52-week high of $11.37.

Youbet Com (UBET) Horse-racing gambling Web site disclosed that the U.S. Immigration and Customs Enforcement agency has obtained a warrant to search its HQ. Drops to $1.41 from 52-week high of $4.54.

Inphonic (INPC) Online seller of wireless devices recently replaced CEO. Down to $1.86 from 52-week high of $14.49.

Mobile Mini Inc (MINI) Portable storage company has bad day. Down to $21.46 from 52-week high of $33.65.

Douglas A. McIntyre

New 52-Week Lows (July 20, 2007)

247wallst — Fri, 20 Jul 2007 15:38:13 +0000

STOCK TICKERS: ABK, ACA, BZH, LEN, DHI, RYL, CC, BX, FIG, FINL, HGSI, HSY, HW, JNY, NLS, REDE, TRMP, UBET, TZOO, WB

The DJIA may have hit 14,000 earlier. A pullback here, some bad news there, and all of a sudden there are still many little piggies being sold off. Here are some of the main stocks hitting 52-weeks lows today, and it is even an edited-down list:

AMBAC (ABK) $80.05
Whoops, insuring and guaranteeing debt.

ACA Capital (ACA) $6.40
Yep, still no word out of the company yet. Trading and guaranteeing CDO’s and derivates isn’t what it was cracked up to be, and we still don’t know their real situation.

Beazer Homes (BZH), Lennar (LEN) DR Horton (DHI), Ryland (RYL)
One of its comps calling for crummy to 2009…ouch.

Circuit City (CC) $13.63
You knew this one wasn’t bottomed out yet.

Blackstone (BX) $25.95
Schwarzman isn’t responsible for this added drop, but he’ll do for the blame.

Fortress Inv. Group (FIG) $22.28
This hedge fund, boy…are they in private equity and CDO’s? Not an intraday low, but its lowest close.

Finish Line (FINL) $7.88
Glad I removed it from the BAIT SHOP of buyout candidates when I did, this one must have 10 piggies in each of their shoes.

Human Genome Sciences (HGSI) $8.61
Maybe genomics is such a 1990′s term.

Hershey (HSY) $47.84
This one was very overvalued for something you eat, so it squirts.

Headwaters (HW) $16.43

Jones Appareal (JNY) $26.62
Weren’t these guys supposed to sell out?

Nautilus (NLS) $9.14
When will a growth exercise and fitness company that warned be touted as a value stock?

Redenvelope (REDE) $5.05
Still don’t know anyone who has used this online e-tailer.

Trump Entertainment (TRMP) $9.50
The Donald’s casino operator can’t find a bottom without reaching under his back.

YouBet.com (UBET) $2.04
Bet this one isn’t done?

Travelzoo (TZOO) $23.00, prior intraday low was $23.16; high was $40.00+.
Online travel carnage continues….maybe France, Hong Kong, and Japan aren’t worth it.

Wachovia (WB) $49.98 close..prior 52-week low was $50.32.
Banks, they need someone to "Watch-ova-ya"

Jon C. Ogg
July 20, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

52-Week Lows (July 13, 2007) (ACA, AVAV, IDIX, KERX, NKTR, REDE, STAA, TRMP, UBET, WON)

247wallst — Fri, 13 Jul 2007 15:03:09 +0000

Stock Tickers: ACA, AVAV, IDIX, KERX, NKTR, REDE, STAA, TRMP, UBET, WON

The DJIA & S&P 500 Index may have put in new highs today, but as you know there are always a dingy group of little piggies putting in new 52-week lows. Some companies are poorly run, and some are just victim of circumstance. Maybe they can just all blame Friday the 13th. Not all of these are definitely CLOSING on 52-week lows but some deserved the honorable mention. Here are today’s little piggies:

(ACA) ACA CAPITAL HOLDINGS… Giving it up again, down 50% from Highs. ACA provides financial guaranty insurance products to participants in the global credit derivative, structured finance capital, and municipal finance capital markets. You think subprime or CDO blow-ups snuck into their pocketbook?

(AVAV) AEROVIRONMENT INC… Shares traded down another 2.4% and traded down into the ‘teens’ for the first time since its IPO in January. No one realized that its flying re-con plane was needed to find stock buyers rather than enemy soldiers over the horizon.

(IDIX) IDENIX PHARMACEUTICALS… Whoops, FDA halts Hep-C trials. Ouch!

(KERX) KERYX BIOPHARMA… no real news, just days and days of weakness.

(NKTR) NEKTAR THERAPEUTICS… no real news, just days of weakness.

(REDE) RED ENVELOPE… no real news, although for an ‘online of high-end gifts’ it is pretty shocking that I have yet to meet anyone who has bought from them online.

(STAA) STAAR SURGICAL… very thin volume, no news; not being run by stars?

(TRMP) TRUMP ENTERTAINMENT… The truth is that this DIDN’T CLOSE on a low, but it hit a new since coming public after the recapitalization in 2005 and deserves to be noted. Hopefully The Donald won’t sue us for saying something negative like he has been known to do, but this stock has been a stinker.

(UBET) YOUBET.COM… You can bet it is hard to find bulls or bears in this name.

(WON) WESTWOOD ONE INC… This was down close to 15% at one point but managed to come all the way back on 4-times average volume to a 10-year ("TEN") after traders bought it back up after Citigroup downgraded it.

Jon C. Ogg
July 13, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.