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Good news from the Treasury this morning that three more financial concerns have passed government standards to participate in the PPIP (Public-Private Investment Program) bringing the total to five with four more waiting in the wings to start buying up 'toxic' assets (like bad mortgages) which the U.S. took over at the height of the bail-out, but that good news couldn't get cautious, BigCap and broad market traders enthused to begin the week on the upside, so SmallCap stock investors in DepoMed Inc., (DEPO), Ultra Clean Holdings Inc., (UCTT) and Yongye International Inc., (YONG) let positive, individual company news lead each of the three to within pennies of new 52-week highs.
Gaining 29.71% ($1.31) today is DepoMed Inc., (DEPO) http://www.depomedinc.com/ currently trading on the Nasdaq in the $5.72 range. DEPO has a new market cap of $294 million. DEPO has a 3-Month average daily trading volume of 298,028 shares and it passed 9 times that volume in the first hour and a half of today's session topping 2,767392 shares traded.
DEPO had a 9 a.m. EST conference call this morning updating and detailing the Company's Phase III trial for its neuropathic DM-1796 drug that has now proven to reduce pain associated with postherpetic neuralgia. DEPO management said they expect to submit the drug for FDA approval in Q1 2010. Post-herpetic neuralgia is a neuropathic pain syndrome that usually follows an outbreak of shingles, which is an infection of a nerve and the area of skin supplied by the nerve.
The DEPO drug DM-1796 is a once-daily tablet formulation and DEPO has licensed DM-1796 to Solvay Pharmaceuticals in the United States, Canada and Mexico.
Also in the DEPO Pipeline is GLUMETZA for the treatment of type 2 diabetes and Proquin XR for treatment of uncomplicated urinary tract infection. DEPO is also developing DM-5689, a Phase III clinical trial product for the treatment of menopausal hot flashes, a Phase II clinical trail for diabetic peripheral neuropathy; DM-3458, a Phase I clinical trial product for the treatment of gastroesophageal reflux disease and DM-1992, a Phase I clinical trial product that targets Parkinson's disease.
At $5.72, DEPO will set a 52-week high surpassing its previous high of $4.65 set on 10-01-09. At $5.72, DEPO is far above its 52-week low of $1.01 set on 11-19-08. At $5.72, DEPO is ahead of both its 50-day and 200-day moving averages. DEPO has trailing twelve month revenues of $44 million. DEPO is widely held by institutions. Its shares out versus float ratio is near-parity.
Gaining 14.34% ($0.71) this morning is Ultra Clean Holdings Inc., (UCTT) http://www.uct.com/ currently trading in the $5.66 range on the Nasdaq. UCTT has a new market cap of $120 million. UCTT has a 3-Month average daily trading volume of 114,111 shares and it passed 155,892 shares traded two hours into today's session.
UCTT has a current 52-week high of $5.70 set on 10-14-08 and a nickel more today will set a new high.
Today's excitement was generated by an upgrade from research house Needham & Company from 'Hold' to 'Buy' which reverses a September 30 downgrade from 'Buy' to 'Hold' and now that Needham is on board, so too are investors and traders.
On August 3, UCTT released its Q2 2009 results for the period ending July 3, 2009. UCTT revenues for Q2 09 were $23.3 million, an increase of 4% from Q1 09, but a decrease of 66% from the same period a year ago. Cash at the end of Q2 09 was $30.2 million, an increase of $0.4 million from $29.8 million at the end of Q1 09. UCTT third party debt at the end of Q2 was $16.1 million, a decrease of $1.2 million from $17.3 million at the end of Q1 2009. UCTT posted a Q2 09 net loss of $14.1 million or $0.66 per share compared to a net loss of $7.0 million or $0.33 per share, for Q1 09 and a net loss of $0.2 million, or $0.01 per share, for Q2 08.
UCTT products include gas delivery systems, which control the flow, pressure, sequencing, and mixing of specialty gases into and out of the reaction chambers of semiconductor manufacturing tools; chemical mechanical planarization electro-mechanical subsystems that are used to polish off high spots on wafers or films deposited on wafers; and chemical delivery modules, which deliver gases and reactive chemicals from a centralized subsystem to the reaction chamber, as well as gas delivery systems, and liquid and vapor delivery systems.
At $5.66, UCTT is far above its 52-week low of $0.78 set on 03-03-09 and is ahead of both its 50-day and 200-day moving averages. UCTT has trailing twelve month revenues of $152 million. UCTT is widely held by institutions. Its shares out versus float ratio is near-parity.
Gaining 11.75% ($1.06) this morning is Yongye International Inc., (YONG) http://www.yongyeintl.com/ which is currently trading in the $10.06 range on the Nasdaq. YONG has a new market cap of $329 million. YONG has a 3-Month average daily trading volume of 232,148 shares and it easily tripled that volume topping 854,920 by 10:49 a.m. EST.
Late Friday, YONG announced its 2010- 2012 strategic plan. YONG management expects to grow at least 50% in its revenues during each of the next three years through a strategy focused on geographic expansion into new markets, increased penetration in existing markets, additional marketing and brand-building efforts, and expanded production capacity.
YONG is based in China and is in the wholesale agricultural-chemical business and operates agricultural stores and training programs. YONG sells its products through corporate direct sales, community-direct sales, and distributor network sales, as well as through a branded store network. As of March 31, 2009, YONG operated 2000 branded stores. YONG expects to see continued increases in the number of branded stores in existing markets and forecasts a vast geographic expansion throughout mainland China.
YONG management also said the Company plans to launch new products and extensions of existing products, which would substantially increase the value of its growing distribution channel and deliver new revenue opportunities.
"We believe our comprehensive development strategy for the next three years will enable us to achieve stronger profit margins while growing revenue at least 50% annually," said Zishen Wu, Chairman and Chief Executive Officer of Yongye International, Inc.
At $10.06, YONG will set a new 52-week high surpassing its previous high of $9.28 set on Friday. At $10.06, YONG is far, far above its 52-week low of $0.65 set on 02-12-09. At $10.06, YONG is ahead of both its 50-day and 200-day moving averages. YONG has trailing twelve month revenues of $79 million and a trailing twelve month diluted EPS of $0.73. YONG is a little more than a third owned by insiders. Its float is a little more than half its outstanding shares and I would like to see more shares in the public float for stability.
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