High Flyers: RTIX, OESX, LOOP

The Commerce Department's report today that the gross domestic product rose at an annual rate of 3.5 percent in Q3 gave the bulls the confidence they needed to re-take the market. That news, buoyed with good news on earnings, sent RTIX, OESX, LOOP flying high.

Earnings, Earnings, Earnings

RTIX earns $0.04, OESX Better than Expected and LOOP earns $0.09 

Gaining 10% this morning is RTI Biologics, Inc., (RTIX) http://www.rtix.com/ currently trading in the $4.10 range.  Easily passing its 3-Month average daily trading volume early in the session, RTIX is approximately a dollar-off its 52-week high of $5.11 set on 08-28-09. RTIX has trailing twelve month revenues of $155 million and reported Q3 2009 revenues yesterday of a record $42.8 million. Based on its top-line sales, I believe RTIX can bounce back to that $5 level of late August in the near-term. This is a 'Buy' stock for me. And speaking of top-line sales growth, RTIX launched 4 new orthopedic implant products in Q3 09 which will increase those record revenues.   

RTIX is a processor of orthopedic and other biologic implants and management reported net income Q3 09 results yesterday of $2.3 million or $0.04 per fully diluted share. RTIX posted an increase of more than 150% over Q3 08 revenues in its hernia repair product. RTIX posted a 66% increase over Q3 08 revenues of its breast reconstruction product.   

For the first nine months of 09, RTIX reported net income of $4.4 million and net income per fully diluted share of $0.08 compared to $0.05 in Q3 08. Even during the 'great recession', RTIX grew EPS. A Healthcare bill will propel RTIX.

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RTIX

Gaining 9% this morning is Orion Energy Systems Inc., (OESX) http://www.oriones.com/ currently trading in the $3.82 range. OESX handily surpassed its 3-Month average daily trading volume early in today's session. OESX is a rebound story for me. The Company has a 52-week high of $5.94 set late last year on 12-24-08 with trailing twelve month revenues of $69 million. The bounce-back theory comes from its dramatic climb at its current price from that $3.20 floor you can see in the chart. 

Tuesday, OESX reported is Q2 2010 results and the stock has kept momentum with buyers. Even though OESX posted a loss of $1.4 million, the results were better than expected. OESX is a provider of energy-efficient lighting systems. The Company posted a $0.06 loss for Q2 10, an 8 cents swing from its 2 cent earnings in Q1 10.

Neal Verfuerth, CEO of OESX said, "While we realize that the current environment remains challenging, our healthy balance sheet, strong liquidity position and focus on maximizing the deployment of capital will position Orion well to benefit as market conditions improve."

I think the Q3 10 guidance given is 'key' to the stocks current momentum. OESX expects revenues to be between $16.5 million and $18.0 million with an EPS $(0.03) and $0.01. Back into the plus side. This is a 'Watch Closely' stock for me.

OESX                                                                  LOOP

Gaining 8% this morning is LoopNet, Inc., (LOOP) http://www.loopnet.com/ currently trading in the $9.10 range. LOOP is well supported stock at 200,000 shares traded daily. LOOP just set its 52-week high of $10.19 on 10-23-09 and there were some profit takers that dropped its value since then, but the floor here is $8. And I think the stock can easily set a new high on any good news in the near-term. I like LOOP because of its record: trailing twelve month revenues of $82 million and during the worst period in 80 years, the Company managed to post a trailing twelve month EPS of $0.34.  

LOOP announced its Q3 2009 numbers yesterday with revenues of $18.8 million and EPS of $0.09. Down a little from Q3 08, but not by much. 

"We are very pleased with how the company and business performed during Q3 2009," said LoopNet Chairman and CEO Richard Boyle. "Despite extremely challenging industry conditions, we comfortably exceeded the financial targets that we set three months ago, and several key measures of our business improved substantially in the quarter."

LOOP is the biggest online real estate listing service and during Q3 09, both basic and premium members, grew to 3,760,249, a 21% increase over the Q3 08. The average monthly price of a LOOP premium membership increased to $66.09, up 2% over Q3 08.  There were 729,467 total commercial real estate listings active on the LOOP site at the end of Q3 09, a 14% increase over Q3 08.

Q4 09 GUIDANCE

LOOP management noted yesterday it expects revenue for Q4 to be in the range of $17.7 to $17.9 million and non-GAAP net income to be in the range of $0.08 to $0.09 per diluted share, assuming an effective tax rate of approximately 40%. As the real estate market slowly but surely makes its way back into the black ink, LOOP is a 'Long-term Buy' for me.  

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