Aug 27, 2010 10:04 AM PDT
Even though GM (GM) today said its Volt rechargeable electric car should get 230 miles per gallon per its recent EPA tests, the world will still need crude oil and a Brigham Exploration (BEXP) well has produced new, significant levels. Also in the latest news-on-news cycle; earnings and an upgrade pushed EchoStar (SATS) higher. Earnings also pushed Shengdatech (SDTH) and Tongxin (TXIC) to big percentage gains in the market today.
Gaining 17.68% ($1.05) in the latest news-on-news trend today is Brigham Exploration (BEXP) http://www.bexp3d.com/ setting a new market cap of $321 million. BEXP shares are currently trading on the Nasdaq in the $6.94 range. BEXP has a 3-Month average daily trading volume of 2,220,120 shares and it topped 3,546,284 shares by 11 a.m. EST.
BEXP announced yesterday that its Anderson 28-33 #1H well produced approximately 2,154 barrels of oil equivalent per day from the Bakken formation (in Montana and North Dakota) during its early 24 hour flow back period. This was the first completion of such a test in the wells location according to researchers. The BEXP well produced approximately 1,838 barrels of oil and 1.9 MMcf of natural gas, or 2,154 barrels of oil equivalent.
Then to bolster the good news yesterday, today, research house Thomas Weisel issued an upgrade from 'market weight' to 'overweight' and BEXP took off this morning.
BEXP explores and produces in the Rocky Mountains, Onshore Gulf Coast, Anadarko Basin, and west Texas. BEXP holds property interests in the Powder River Basin located in Wyoming. BEXP operates 7 exploration wells and 64 development wells.
At $6.94, BEXP is less-than-half its 52-week high of $14.50 set on 09-22-08 and is far above its 52-week low of $1.04 set on 03-02-09 (a good buy signal). At $6.94, BEXP is above both its 50-day and 200-day moving averages. BEXP has trailing twelve month revenues of $108 million. Its shares out versus float ratio is near-parity.
And speaking of news on news, another beneficiary of the announcement and upgrade cycle is EchoStar (SATS) http://www.echostar.com/ gaining 13.90% ($2.22) today. SATS is currently trading in the $18 range on the Nasdaq with a new market cap of $1.5 billion. SATS 3-Month average daily trading volume is 313,309 shares and it surpassed 1,022,527 shares traded today by 11 a.m. EST.
SATS reported yesterday its Q2 profit 'more than doubled on an investment gain that more than offset a decline in revenue.' The SATS investment gain equaled approximately $110 million. The SATS revenues for Q2 fell 21% to $383 million. SATS earned $101 million, or $1.18 per share, compared with $47.8 million, or 53 cents per share, in the same quarter a year earlier. SATS sells set-top boxes and provides satellite services mainly to its sister company Dish Network (DISH).
SATS then got a boost this morning with more news that Citigroup had upgraded the stock from a 'sell' to a 'buy' and that sent the buyers in.
At $18, SATS is off its 52-week high of $33.95 set on 08-12-09 and is ahead of its 52-week low of $12.78 set on 01-22-09 (another good buy signal). At $18, SATS is above both its 50-day and 200-day moving averages. SATS has trailing twelve month revenues of $2.08 billion. Its shares out versus float ratio is near-parity.
Gaining 14.90% ($0.83) this morning on Q2 earnings news as well is Shengdatech Inc., (SDTH) http://www.shengdatechinc.com/ setting a new market cap of $351 million. Currently trading in $6.49 range on the Nasdaq, SDTH has a 3-Month average daily trading volume of 237,623 shares and its flew by that today having traded over 463,042 shares by 11 a.m. EST.
SDTH had Q2 09 earnings and revenues that beat estimates. Analysts were looking for 8 cents a share EPS and SDTH produced 12 cents a share. Analysts were looking for $22.23 million in revenues and SDTH produced $26.3 million. Beating the street sent the shares soaring.
SDTH actual net income dropped to $6.5 million, or 12 cents a share, from $9.8 million, or 18 cents a share, a year ago and Q2 revenue fell 34 percent to $26.3 million. But overcoming expectations was the key to the gains today.
Also in August, SDTH announced that it had completed relocating its world headquarters to Shanghai, China. Shanghai is the largest city in China, and one of the largest metropolitan areas in the world, with a population of over 20 million. Investors and analysts saw the re-positioning as central to increasing the SDTH market reach.
SDTH makes and sells nano precipitated calcium carbonate products (which is primarily used in producing plastics) exports its products to Singapore, Thailand, South Korea, Malaysia, Vietnam, India, and Israel.
At $6.49, SDTH is off its 52-week high of $10.49 set on 08-18-08 and is far above its 52-week low of $2.52 set on 03-18-09 (a good buy signal to 'value' investors). At $6.49, SDTH is ahead of its 50-day and 200-day moving averages. SDTH has trailing twelve month revenues of $141 million and a trailing twelve month diluted EPS of $0.54. Nearly half of SDTH is held by insiders and its float is nearly half of its shares outstanding. For the sake of stability and liquidity, I would like to see more shares in the public float.
Finally today, Tongxin Intl., (TXIC) http://www.hntx.com/ gained nearly 10% ($0.80) on some very strong Q2 09 numbers. TXIC is currently trading in the $9 range on the Nasdaq and has a new market cap of $101 million. TXIC has a 3-Month average daily trading volume of 73,653 shares and easily quadrupled that toady; soaring past 478,236 shares traded by mid-session.
TXIC Q2 09 revenues increased 50.2% to $34.8 million and Q2 revenues grew sequentially over Q1 by 18.2%. Impressive. Q2 09 net income increased 80.4% over Q2 08 and 7.9% over Q1 09. Q2 EPS were $0.39 and $0.34 per weighted diluted shares.
TXIC management also issued a revised guidance of $120 million in revenues and $14.7 million in net income for the 2009 calendar year. Still impressive.
TXIC makes, sells and services vehicle body structures (exterior body panels, doors, floor pans, hoods, side panels, and fenders) for light, medium, and heavy duty trucks, and light vehicles in the People's Republic of China. TXIC management also reported a sales growth of 18.2% over Q1 09.
At $9, TXIC will set a new 52-week high. The TXIC 52-week low was $1.50 set on 02-12-09. At $9, TXIC is ahead of both its 50-day and 200-day moving averages. TXIC has trailing twelve month revenues of $97 million and a trailing twelve month diluted EPS of $0.65. Its shares out versus float ratio is a little lopsided and I would like to see more shares in the public float.
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