Stock News Staff

Ultra Clean Holdings, Inc (NASDAQ:UCTT) Shareholders Get Unexpected News

Ultra Clean Holdings, Inc (NASDAQ:UCTT)

Ultra Clean Holdings, Inc (NASDAQ:UCTT) operates in a very specialized area – it develops, manufactures, and sells testing equipment for the semiconductor industry. It produces robotics, gas delivery systems, and tubing products among others. Shares in the Hayward, CA-based firm ended trading yesterday at $12.58 but gapped up and opened at $14 after their Q4 2016 and full year financials were released.

Ultra Clean Holdings, Inc (NASDAQ:UCTT) reported total revenue for Q4 2016 at $174.5 million, an increase of 19.4% over Q3 2016 and 68.8% from the same period a year ago. Semiconductor revenue increased 20.6% from Q3 2016 and 60.7% from the same period a year ago. Gross margin for Q4 2016 was 17.0% compared with 16.1% for the prior quarter and 12.9% for the same period a year ago. Net income for Q4 was $10.0 million, or $0.30 per share (basic and diluted), compared with net income of $2.6 million, or $0.08 per share (basic and diluted) in the previous quarter, and a net loss of $15.8 million, or $0.49 per share (basic and diluted) for the same period a year ago. Total revenue for fiscal 2016 was $562.8 million, an increase of 20.0% from fiscal 2015. Gross margin for 2016 was 15.4% compared with 15.1% for 2015. Net income for 2016 was $10.1 million, or $0.31 per basic share and $0.30 per diluted share compared with a net loss of $10.7 million, or $0.34 per share (basic and diluted) in 2015. Ultra Clean Holdings, Inc (NASDAQ:UCTT) also gave guidance for 2017 – they expect revenue to be between $190 – $197 million.

UCTT shares opened the day at $14 and closed just a penny higher. UCTT shares reached a high of $14.45 and a low of $13.60 on heavy volumes – over seven times average daily volumes. Company sales have been relatively flat for the past five years. In 2011 Ultra Clean Holdings, Inc (NASDAQ:UCTT) posted a figure of $452.6 million and that figure stood at just $469.1 million in 2015. So today’s revenue figure was a bit of good news. EPS also turned positive after a loss in 2015 that was preceded by four years of EPS profit. Four firms follow UCTT and one assigns UCTT shares a rating of “Strong Buy”, two rate the shares as a Buy”, and one rates the shares as a “Hold”.

 

2/23/2017
Ticker Symbol UCTT
Last Price a/o 4:32 PM EST  $                    14.00
Average Volume                    382,200
Market Cap (mlns)  $                  414.51
Sales (mlns) $491.60
Shares Outstanding (mlns) 32.95
Share Float (mlns) 29.74
Shortable Yes
Optionable Yes
Inside Ownership 1.40%
Short Float 3.05%
Short Interest Ratio 2.37
Quarterly Return 27.59%
YTD Return 29.69%
Year Return 164.84%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Steve Clark is a 23 year Wall St professional with stints in M&A, risk management, and algorithm trading.

 

GNC Holdings Inc. (NYSE:GNC) Health in Question

GNC Holdings Inc. (NYSE:GNC)

Shares of GNC Holdings Inc. (NYSE:GNC) could use some financial supplements. At the end of 2013 GNC shares were trading above $55, within six months they had declined to under $30 but partially recovered in the second half of 2014. However, since that time the shares have been on a steady decline and today sit just above $7 and have had two bulge-bracket Wall S. firms downgrade the shares to “Sell” and “Underweight”. In 2016, GNC received a total of eight analyst downgrades.

Today GNC Holdings Inc. (NYSE:GNC) reported consolidated revenue of $569.9 million in the fourth quarter of 2016, compared with consolidated revenue of $629.1 million for the fourth quarter of 2015. Same store sales decreased 12.0% in domestic company-owned stores (including GNC.com sales which contributed 4.5% of the decrease) in the fourth quarter of 2016. In domestic franchise locations, same store sales decreased 6.0% in the fourth quarter of 2016.

Bob Moran, Interim Chief Executive Officer, commented, “GNC’s performance in the fourth quarter, while well below expectations, does not reflect the fundamental changes we have made to the business model. Customers are responding well to the new model, which launched in late December and includes simplified, more competitive pricing and new loyalty programs. We are aware that the changes we have made have short-term financial impacts and while it is still in the early days, and it will take time for our investments to bear fruit, we are encouraged by the trends we’re seeing and believe the One New GNC can help the company return to profitable growth.”

Changes to the referenced business model also include suspending its dividend. GNC Holdings Inc. (NYSE:GNC) also does not expect to use the remaining $197.8 million previously authorized for share repurchases in 2017. It is expected that the cash will be spent on reducing the company’s debt.

Eight firms follow GNC Holdings Inc. (NYSE:GNC). Five rate the shares as “Hold”, one rates GNC as an “Underperform”, and one rates the shares as a “Sell”. The ratings are curious given that the analyst’s consensus price target is $11 which is over 45% more than GNC’s current price.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/16/2017
Ticker Symbol GNC
Last Price a/o 2:05 PM EST  $                      7.48
Average Volume                2,520,000
Market Cap (mlns)  $                  565.68
Sales (mlns) $2,590.00
Shares Outstanding (mlns) 67.99
Share Float (mlns) 67.96
Shortable Yes
Optionable Yes
Inside Ownership 0.27%
Short Float 22.76%
Short Interest Ratio 6.15
Quarterly Return -43.31%
YTD Return -24.64%
Year Return -69.36%

Benitec Biopharma (Nasdaq: BNTC) Doubles!

Benitec Biopharma Limited – Nasdaq: BNTC

Shares of Benitec Bipharma are more than double yesterday’s closing price and surged to an inter-day high of $4.44 before settling down to $3.50 in mid-day trading. BNTC, traded on the Nasdaq, shares normally have an average daily volume of less than 200k, but today more than seven million shares have traded almost two hours before market close.

The Australian-based company gave a business update on its ddRNAi technology for the development of therapeutics for the treatment of ocular diseases. Benitec Biopharma is a biotechnology company developing a proprietary therapeutic technology platform that combines gene silencing and gene therapy with a goal of providing sustained, long-lasting silencing of disease-causing genes from a single administration. Benitec Biopharma is using DNA-directed RNA interference, or ddRNAi, to develop a pipeline of product candidates for the treatment of several chronic and life-threatening human diseases, such as hepatitis B, age-related macular degeneration, or AMD and oculopharyngeal muscular dystrophy, or OPMD.

Benitec Biopharma has no reported sales. BNTC has no EPS. Only one firm rates BNTC shares it gives it a rating of “Hold”.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/2/2017
Ticker Symbol BNTC
Last Price a/o 1:28 PM EST  $                      3.45
Average Volume                    176,560
Market Cap (mlns)  $                  234.45
Sales (mlns) $7.19
Shares Outstanding (mlns) 146.53
Share Float (mlns) 5.49
Shortable Yes
Optionable No
Inside Ownership
Short Float 0.49%
Short Interest Ratio 0.15
Quarterly Return 7.53%
YTD Return 4.58%
Year Return -54.29%

Lantronix Inc. (Nasdaq: LTRX) Up on Heavy Volumes

Lantronix, Inc. – Nasdaq: LTRX

Shares of Irvine, CA-based Lantronix Inc. are up over 20% on heavy volume. LTRX, traded on the Nasdaq, ended Thursday at $1.62 but gapped up on the open to $1.88 and reached a high of $2.19. By mid-day LTRX volumes were over thirteen times their daily average.

Lantronix, Inc. is a global provider of secure data access and management solutions for Internet of Things and information technology assets. Lantronix strives to be the leading supplier of Internet of Things gateways that enable companies to dramatically simplify the creation, deployment, and management of digital-based projects while providing secure access to data for applications and people.

Net revenue for the second quarter of fiscal 2017 increased 18% from the same period in fiscal 2016 and 3% from the first quarter of fiscal 2017. Sales of the company’s Internet of Things products grew by 17% during the second quarter of fiscal 2017 compared with the same period in fiscal 2016.

One firm follows Lantronix and they rate LTRX as a “Strong Buy” with a price target of $2.50. LTRX EPS was negative for the past five years and in 2016 posted a loss of $0.13. Reported sales have declined since their 2013 high of $46.7 million to $40.6 million in 2016.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

1/27/2017
Ticker Symbol LTRX
Last Price a/o 1:08 PM EST  $                      1.96
Average Volume 53,120
Market Cap $28.5 million
Sales $41 million
Shares Outstanding 17.59 million
Share Float 10.55 million
Shortable Yes
Optionable No
Inside Ownership 3.00%
Short Float 0.41%
Short Interest Ratio 0.82
Quarterly Return 10.20%
YTD Return -4.71%
Year Return 40.87%

HMN Financial Inc. (Nasdaq: HMNF) Stellar Results but is Anyone Watching?

HMNF Financial, Inc. – Nasdaq: HMNF

Shares of HMN Financial Inc. bucked the banking sector trend today and ended up over 6%. HMNF, traded on the Nasdaq, closed at $17.35 on Wednesday and closed today at $18.50 on heavy volume. Today’s rise in value was notable when positioned against the Thomson Reuters Financials Index that saw a 0.27% drop. However, HMNF has been doing well for years. Since it traded below $2.00 in 2012, the shares of MNF Financial Inc. have had a relatively steady climb upwards.

HMN Financial, Inc. is a stock savings bank holding company, which was incorporated in Delaware in 1994. The Company owns 100 percent of Home Federal Savings Bank. Home Federal, originally chartered in 1934, has a community banking philosophy and operates retail banking and loan production facilities in Minnesota, Iowa, and Wisconsin. The Bank has two wholly owned subsidiaries, Osterud Insurance Agency, Inc. which offers financial planning products and services, and HFSB Property Holding LLC, which acts as an intermediary for the bank in holding and operating certain foreclosed properties.

HMN Financial Inc. had impressive 3rd quarter results. From their press release:

Year to Date Summary

  • Net income of $4.7 million, up $2.8 million, compared to net income of $1.9 million in first nine months of 2015
  • Diluted earnings per share of $0.99, up $0.61, compared to diluted earnings per share of $0.38 in first nine months of 2015
  • Net interest income of $19.5 million, up $5.2 million from first nine months of 2015
  • Total assets increased $43 million, or 6.6%, in first nine months of 2016

Interestingly, no analysts cover HMN Financial Inc. An interesting observation when you consider the shares have increased 900% since 2012. There is a lot of inside ownership and little short sales on HMNF.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

12/29/2016
Ticker Symbol HMNF
Last Price a/o 4:00 PM EST  $                    18.50
Average Volume 3,400
Market Cap $77.9 million
Sales $5.8 million
Shares Outstanding 4.5 million
Share Float 3.52 million
Shortable Yes
Optionable No
Inside Ownership 31.36%
Short Float 0.06%
Short Interest Ratio 0.65
Quarterly Return 22.10%
YTD Return 50.22%
Year Return 50.22%

Globalstar Inc. (NYSE: GSAT) Receiving Good News

Globalstar, Inc. – NYSE: GSAT

Shares of GSAT are experiencing large volumes on the back of good news. Globalstar, Inc., traded on the NYSE under ticker GSAT, is a leading provider of mobile satellite voice and data services. The Company’s products include mobile and fixed satellite telephones, the innovative Sat-Fi satellite hotspot, satellite data modems, tracking devices and flexible service packages. 

On December 12, 2016 Long Island-based fleet management company Vehicle Tracking Solutions (VTS) announced that it will now be offering complete global coverage as part of a new strategic partnership with Globalstar, Inc. This follows news that General Electric (NYSE: GE) chose Globalstar to equip its employees with Globalstar’s SPOT Gen3 safety devices. Investors have reacted to the news in heavy volumes and pushed GSAT shares up almost 8% in early trading. Sales have increased each year for the Globalstar Inc since 2011 – from $72.8 million to $90.5 million. Meanwhile GSAT experienced a positive EPS ($0.07) for the first time in 2015. Conversely, GSAT is experiencing a high degree of short selling at the time of this writing.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock. The below data is provided without any guarantee of its accuracy.

Ticker Symbol NVCN
Last Price a/o 10:25 EST  $               0.90
Average Volume 3 million
Market Cap $902 million
Sales $95.2 million
Shares Outstanding 1.07 Billion
Share Float 309 million
Shortable Yes
Optionable Yes
Inside Ownership 0.10%
Short Float 15.80%
Short Interest Ratio 16.2
Quarterly Return -36.80%
YTD Return -41.70%
Year Return -51.72%

Update! ORIG Up 30% Since Covered by SNU

Shares of Ocean Rig UDW LLC are up almost 30% since we first covered the Nasdaq stock on December 6, 2016!

Here is our original story with updated data at the end:

The incoming Trump administration is believed to want to pursue an energy independent America policy. This will mean reversing many Obama-implemented regulations and asking Congress to pass laws that benefit the fossil fuel industry. One small cap Nasdaq stock that may benefit is Ocean Rig UDW LLC.

Ocean Rig UDW LLC, trading under Nasdaq ticker ORIG, is an international offshore drilling contractor providing oilfield services for offshore oil and gas exploration, development, and production drilling, and specializing in the ultra-deepwater and harsh-environment segment of the offshore drilling industry. 

The company owns and operates 13 offshore ultra deepwater drilling units, comprising of 2 ultra deepwater semisubmersible drilling rigs and 11 ultra deepwater drillships, two of which are scheduled to be delivered to the Company during 2017 and one in 2018.

However, with the incoming Trump administration and the new OPEC deal designed to regulate output, it may be time to consider another look at this former high-flier. In 2014, ORIG routinely traded over $15 with and EPS of $1.97. ORIG now trades under $2. Sales increased from $700 million in 2011 to $1.82 billion in 2014. In 2015, Ocean Rig UDW LLC reported sales of just $1.75 billion with earnings per share of $0.57.

Zacks research has recently given it a #1 rating based on their proprietary analytics. This is important because no investment bank analysts have yet upgraded their recommendations for ORIG. Should the investment bank analysts follow suit, we may see a price target more than double its current trading price of below $2.00. Prior to OPEC flooding the market ORIG was given price targets around $30 by bank analysts.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock.

Ticker Symbol ORIG
Last Price a/o 12:45 EST  $               2.60
Average Volume 2.7 million
Market Cap $160.2 million
Sales 1.87 Billion
Shares Outstanding 72.2 million
Share Float 72.2 million
Shortable Yes
Optionable Yes
Inside Ownership
Short Float 15.80%
Short Interest Ratio 4.16
Quarterly Return 192.11%
YTD Return 36.20%
Year Return 33.73%

Update! ORIG Up Big Since SNU Coverage

Ocean Rig UDW Inc. was covered in a December 6, 2016 article on StockNewsUnion. Since then shares of ORIG (Nasdaq) have risen almost 15% based on today’s intraday trades!

Our story:

The incoming Trump administration is believed to want to pursue an energy independent America policy. This will mean reversing many Obama-implemented regulations and asking Congress to pass laws that benefit the fossil fuel industry. One small cap Nasdaq stock that may benefit is Ocean Rig UDW LLC.

Ocean Rig UDW LLC, trading under Nasdaq ticker ORIG, is an international offshore drilling contractor providing oilfield services for offshore oil and gas exploration, development, and production drilling, and specializing in the ultra-deepwater and harsh-environment segment of the offshore drilling industry. 

The company owns and operates 13 offshore ultra deepwater drilling units, comprising of 2 ultra deepwater semisubmersible drilling rigs and 11 ultra deepwater drillships, two of which are scheduled to be delivered to the Company during 2017 and one in 2018.

However, with the incoming Trump administration and the new OPEC deal designed to regulate output, it may be time to consider another look at this former high-flier. In 2014, ORIG routinely traded over $15 with and EPS of $1.97. ORIG now trades under $2. Sales increased from $700 million in 2011 to $1.82 billion in 2014. In 2015, Ocean Rig UDW LLC reported sales of just $1.75 billion with earnings per share of $0.57.

Zacks research has recently given it a #1 rating based on their proprietary analytics. This is important because no investment bank analysts have yet upgraded their recommendations for ORIG. Should the investment bank analysts follow suit, we may see a price target more than double its current trading price of below $2.00. Prior to OPEC flooding the market ORIG was given price targets around $30 by bank analysts.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock.

 

Emcore Corp. (Nasdaq: EMKR) Exceeds Earnings Expectations

Market Mover Alert on Emcore Corporation – Nasdaq ticker: EMKR

Shares of Emcore Corporation jumped at the open based on their released earnings report. EMKR shares closed trading at $6.45 yesterday and hit a high of $8.70 this morning before pulling back on heavy volume. Emcore Corporation trades on the Nasdaq under the ticker EMKR.

Emcore Corporation makes products that transform the internet. Emcore designs and manufactures chips, components, and systems for the broadband and specialty fiber optics markets. Based in California, Emcore Corporation has offices in Pennsylvania, Europe, and China.

According to published reports, Emcore Corporation on Wednesday reported fiscal fourth-quarter earnings of $2 million. On a per-share basis, Emcore had net income of 7 cents. Earnings, adjusted for one-time gains and costs, were 10 cents per share of EMKR. $25.6 million in revenues exceeded expectations. Four analysts surveyed by Zacks expected $24.4 million. For the year, Emcore Corporation reported a profit of $8.3 million, or 31 cents per share of EMKR. Revenue was reported as $92 million. Three analysts that cover EMKR have either a “Buy” or “Outperform” on EMKR with price targets from $7.00 to $11.00.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock. The below data is provided without any guarantee of its accuracy.

Ticker Symbol EMKR
Last Price a/o 10:45 EST  $               8.10
Average Volume 264,000
Market Cap $170 million
Sales $89.4 million
Shares Outstanding 26.35 million
Share Float 23.3 million
Shortable Yes
Optionable Yes
Inside Ownership 29.60%
Short Float 4.39%
Short Interest Ratio 3.88
Quarterly Return 27%
YTD Return 36.90%
Year Return 6.24%

 

Tesco Corp. (Nasdaq: TESO) Supplier to Upstream Energy

Tesco Corporation

Tesco Corporation (Nasdaq: TESO) is a global leader in the design, assembly and service of technology-based solutions for the upstream energy industry – oil drilling. It operates through four segments: Top Drives, Tubular Services, Research & Engineering, and Corporate and Other. The Top Drive segment includes top drive sales, top drive rentals and after-market sales and services. Its Tubular Services segment includes automated and conventional tubular services. Its Research and Engineering segment includes internal research and development activities related to its automated tubular services and top drive model development, as well as the Casing Drilling technology prior to the sale.

Tesco Corporation, headquartered in Houston, Texas, employs approximately 1250 employees with infrastructure in 13 countries. Between fourth quarter 2014 and 2016, Tesco’s global quarterly revenue had a high degree of correlation with the US rig count where forecasts range from 650 to 850 by 2017. In view of the current market prices and the overcapacity, most of it will require upgrades to pipe handling to compete. Up to 340 rigs are expected to come back to the market by the end of 2017, and most of them will need upgrading to compete with the quality fleets from the dominant competitors. In view of the resilience of non-dominant players, the direction of the evolution in market share is not clear.

Rebuilding around a new cost structure needs scale to improve profitability and to preserve capacity and differentiation. The need to reposition will focus on technology around emerging markets trends. The need to grow differently requires a different kind of business mix and a third-party network for accelerated access to the market. Finally, there is the need to deploy cash effectively to finance its transformation and to outgrow a stagnant market.

Results for the third quarter of FY 2016

Tesco reported revenues of $30.4 million for the quarter, down by 10% from the second quarter and down 50% from the previous year. This sequential decline in revenues was attributed to lower than expected new product sales. The GAAP net loss was $22.1 million ($0.48 per share) and the adjusted net loss for the quarter was $17.3 million ($0.37 per share), primarily relating to charges on inventory and restructuring costs. This compares to net loss figures of $18.9 million ($0.47 per diluted share) in the preceding quarter and $19.9 million ($0.51 per diluted share) for the previous year. Adjusted EBITDA loss was $9.1 million for the quarter compared to $7.5 million in the preceding quarter, the adjusted operating loss was $21.9 million and the adjusted operating loss was $17.4 million excluding the impact of charges amounting to $4.5 million. Cash and cash equivalents at the end of the quarter declined by $7.3 million from the preceding quarter to $90.1 million.

The bottom line

Tesco trades on the Nasdaq under the ticker TESO. Of the four analysts covering TESO, 3 rate it as a “Buy”, and 1 as a “Hold”. Analysts at FBR have decreased their EPS estimates for FY 2016 and now expect a figure of ($1.55 per share).