Magellan Petroleum Corporation (Nasdaq: MPET) Up Despite Lawsuit Threat

Magellan Petroleum Corporation – Nasdaq: MPET

Despite the threat of a lawsuit being brought against Magellan Petroleum and its Board of Directors, shares have risen over the past two days. MPET, traded on the Nasdaq, On January 10 the shares began trading around $5, on January 11 the New York firm of Monteverde & Associates PC announced an investigation into Magellan, and MPET ended at $13.20 on January 12.

According to a press release, the investigation focuses on whether Magellan and/or its Board of Directors violated federal securities laws and/or breached their fiduciary duties to the Company’s stockholders by 1) failing to properly value the merger and 2) failing to disclose all material information in connection with the merger. Under the terms of the agreement, Tellurian Investments common stockholders will receive 1.30 shares of Magellan common stock for each share of Tellurian Investments common stock that they hold immediately prior to the effective time of the merger. The merger was valued at $207 million.

Magellan Petroleum has reported negative EPS since 2013 when it reported a loss of $2.83 EPS. In 2016 Magellan reported a narrower loss of $0.17. Magellan Petroleum has no reported sales for 2015 and 2016. Only one firm follows Magellan Petroleum and rates shares of MEPT as a “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.

 

Uranium Resources, Inc. (Nasdaq: URRE) Up Big

Uranium Resources, Inc. – Nasdaq: URRE

Shares of Centennial, CO-based Uranium Resources Inc. are up over 45% on heavy volume. The explorer, developer, and producer of energy related metal trades on the Nasdaq under ticker URRE. URRE closed Tuesday at $2.25 and has reached $3.44 in early trading. Year-to-date, URRE has appreciated over 60%.

The company owns and operates the Temrezli ISR project in Central Turkey; and controls exploration properties under nine exploration and operating licenses covering approximately 32,000 acres. The company also holds interest in approximately 190,000 acres of mineral holdings in the prolific Grants Mineral Belt of the State of New Mexico; and 14,000 acres in the South Texas uranium province. In addition, it holds an agreement to acquire certain placer mining claims in the Sal Rica lithium brine project that covers an area of approximately 9,800 acres located in the Pilot Valley region of northwestern Utah.

Only one firm follows Uranium Resources, Inc. and their analyst gives shares of URRE a “Strong Buy” rating.

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.

1/11/2017
Ticker Symbol URRE
Last Price a/o 10:34 AM EST  $                      6.40
Average Volume 1.34 million
Market Cap $31.3 million
Sales
Shares Outstanding 13.9 million
Share Float 13.34 million
Shortable Yes
Optionable No
Inside Ownership 0.20%
Short Float 13.34%
Short Interest Ratio 0.71
Quarterly Return 63.04%
YTD Return 64.23%
Year Return -60.94%

Randgold Resources Ltd. (Nasdaq: GOLD) Mining Across Africa

Randgold Resources Ltd. – Nasdaq: GOLD

Shares of UK-based Randgold Resources Ltd. have gapped up four days in a row. Traded on the Nasdaq under ticker symbol GOLD, shares have risen almost 5% this week. Randgold’s exploration strategy is based on the discovery of world class orebodies within the major greenstone belts of West and Central Africa.

Rangold Resources core strategy is to discover world-class orebodies and develop them into profitable mines such as those they operate in Morila, Loulo, Gounkoto and Tongon. Their business model attempts to shield shareholders from the volatilities commonly found in the commodity price cycle.

Chief executive Mark Bristow said Kibali and Tongon had bounced back well from the technical issues that had plagued them in the first half of the year while the flagship Loulo-Gounkoto complex continued on its steady course. He said it was worth noting that despite the high level of activity, there had been zero lost-time injuries across the group during the quarter.

“Tongon got its mills back up at the end of June and Kibali ramped up production, boosting group throughput by 13%. Unit costs were also better, with decreased processing costs supported by lower strip ratios at Tongon and Kibali.  The higher gold price also contributed to the significant increase in profit,” Bristow said.

Four analysts rate GOLD a “Strong Buy” and two rate it as a “Hold”. The consensus price target fr Randgold Resources is $100.

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.

12/28/2016
Ticker Symbol GOLD
Last Price a/o 10:53 PM EST  $             74.82
Average Volume 1.13 million
Market Cap $6.8 Billion
Sales $1.12 Billion
Shares Outstanding 93.31 million
Share Float 92.55 million
Shortable Yes
Optionable Yes
Inside Ownership 3.90%
Short Float 1.88%
Short Interest Ratio 1.55
Quarterly Return -27.46%
YTD Return 18.49%
Year Return 18.21%

 

Magellan Petroleum Corporation (Nasdaq: MPET) Continues Massive 2016 Gains

Magellan Petroleum Corporation – Nasdaq: MPET

Shares of the Magellan Petroleum Corporation were trading in the $5 handle in the first week of December. Today the shares, traded under ticker symbol MPET on the Nasdaq, traded as high as $10.40.

Magellan Petroleum Corporation, based in Denver, CO, is an independent oil and gas exploration and production company focused on CO2-enhanced oil recovery projects in the Rocky Mountain region. Magellan also owns significant exploration acreage in the Weald Basin, onshore UK, and an exploration block, NT/P82, in the Bonaparte Basin, offshore Northern Territory, Australia, which the Company currently plans to farm out and a 1.9% ownership stake in Central Petroleum Limited, a Brisbane, Australia-based junior exploration and production company that operates one of the largest holdings of prospective onshore acreage in Australia.

Magellan Petroleum conducts operations through three wholly owned subsidiaries corresponding to the geographical areas in which the Company operates: Nautilus Poplar LLC in the US, Magellan Petroleum (UK) Limited in the United Kingdom, and Magellan Petroleum Australia Pty Ltd in Australia.

It is noteworthy that MPET traded below $0.25 in January – making the shares one of the Nasdaq’ largest annual gainers for 2016. MPET is followed by two analysts – one rates it a “Buy” and one a “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.

12/27/2016
Ticker Symbol MPET
Last Price a/o 4:00 PM EST  $               9.88
Average Volume 135,370
Market Cap $56.09 million
Sales $-
Shares Outstanding 6.09 million
Share Float 4.66 million
Shortable Yes
Optionable No
Inside Ownership 13.10%
Short Float 14.80%
Short Interest Ratio 5.1
Quarterly Return 78.83%
YTD Return 1574.55%
Year Return 1361.90%

Canadian Solar Inc. (Nasdaq: CSIQ) Up Today

Canadian Solar Inc. – Nasdaq: CSIQ

Shares of Canadian Solar Inc. are up over 6% in today’s trading on heavy volume. The shares trade on the Nasdaq under the symbol CSIQ. CSIQ had traded under $5 in 2012 before going over $40 in 2014. Since then the shares have pulled back despite increasing sales. EPS for CSIQ hit their high in 2014 when Canadian Solar Inc. posted $4.40 EPS. Sales have been more consistent – increasing every year since 2012 and posting $3.47 Billion in 2015.

Founded in 2001 in Canada, Canadian Solar is one of the world’s largest and foremost solar power companies. As a leading manufacturer of solar photovoltaic modules and provider of solar energy solutions, Canadian Solar also has a geographically diversified pipeline of utility-scale power projects in various stages of development. In the past 15 years, Canadian Solar has successfully delivered over 17 GW of premium quality modules to over 90 countries around the world. Furthermore, Canadian Solar is one of the most bankable companies in the solar industry, having been publicly listed on NASDAQ since 2006.

In recent news, Canadian Solar Inc announced on December 19, 2016, that it has secured GBP 49.3 million (US$62.8 million) in a non-recourse term loan facility to refinance a portfolio of 10 solar power plants, with total capacity of 50 megawatts in the United Kingdom. National Westminster Bank (NatWest), a subsidiary of RBS Group, is providing the 18.7-year term facility. Part of the proceeds will be used to repay a construction loan of GBP 28.1 million (US$35.8 million).

Nine analysts cover Canadian Solar Inc. Two rate CSIQ A “Strong Buy”, six rate the shares as a “Hold”, and one has it at “Underperform”.

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.

12/27/2016
Ticker Symbol CSIQ
Last Price a/o 3:29 PM EST  $             13.12
Average Volume 1.67 million
Market Cap $722 million
Sales $3.3 Billion
Shares Outstanding 58.56 million
Share Float 45.3 million
Shortable Yes
Optionable Yes
Inside Ownership 31.00%
Short Float 16.12%
Short Interest Ratio 4.4
Quarterly Return -2.68%
YTD Return -57.42%
Year Return -57.96%

U.S. Energy Corp. (Nasdaq: USEG) – in play. But Why?

U.S. Energy Corporation – Nasdaq: USEG

Shares of U.S. Energy Corporation rocketed at the open from $1.45 to $2.74 in the early afternoon on heavy trading. The Nasdaq stock, traded under ticker USEG, has seen better days, and last traded above the $5.00 handle in mid-2015.

In 2015 USEG had a $14.39 EPS loss on sales of $10.3 million. Traders following USEG are unsure of what has motivated demand and published reports indicate that some are wary of a “pump and dump” at play. But it should also be noted that OPEC has recently announced production cuts which could be good news for the beleaguered company.

U.S. Energy Corp. is a diversified natural resource company with primary interests in oil & gas and molybdenum. U.S. Energy Corp.’s objective is to identify and strategically invest in oil and gas exploration and development opportunities with a primary focus on oil, that present above-average return-on-investment potential. The Denver-based company presently has operations in the Gulf Coast, Eagle Ford Basin (TX), and the Williston Basin (N Dakota).

Three firms follow U.S. Energy Corporation but have not adjusted their analysis or ratings this year. The last analyst activity (February of 2015) saw Global Hunter Securities downgrade USEG from “Accumulate” to “Neutral”. Given the unexpected volume in USEG, traders are paying close attention to see if this is a true play on earnings or a corporate action, or if this is a head fake.

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 USEG
Last Price a/o 3:00 EST  $               2.40
Average Volume 24,640
Market Cap $7.74 million
Sales $6.6 million
Shares Outstanding 5.5 million
Share Float 4.7 million
Shortable Yes
Optionable No
Inside Ownership 7.40%
Short Float 0.38%
Short Interest Ratio 0.73
Quarterly Return -25.40%
YTD Return 46.87%
Year Return 95.83%

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.

 

SunPower Corp (Nasdaq: SPWR) Announces Restructuring

Market Mover Alert on SunPower Corporation – Nasdaq ticker: SPWR

SunPower Corporation, majority owned by French energy giant Total SA, is up over 15% in heavy trading today. Investors seem to be positively responding to today’s news that Sunpower Corporation will be laying off 2,500 workers and closing a plant located in the Philippines as part of a company-wide restructuring effort. The company expects the move to move it into positive cashflow for 2017.

SunPower considers itself at the forefront of solar power innovation. The company operates in the residential, governmental, and utility sectors. Its headquarters are in San Jose, California and has offices in North America, Europe, Asia, and Africa.

The industry has been experiencing pricing pressures but the company expects some relief in the latter half of 2017. SunPower Corporation said that the average price for its products had decreased 25%. This is what most analysts believe will contribute to the company’s losses this quarter – its sixth quarterly loss in a row. SunPower said it expects to incur restructuring and other charges totaling about $200 million in the current quarter and restructuring charges of $225-$275 million through the end of 2017.

Shares of SPWR reacted positively to the news and had the effect of raising the share prices of other firms in the solar energy sector. SPWR has been a component stock of the Photovoltaik Global 30 Index since 2009

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 SPWR
Last Price a/o 2:45 EST  $           8.06
Average Volume 3 million
Market Cap $950 million
Sales $1.9 Billion
Shares Outstanding 135.9 million
Share Float 58.6 million
Shortable Yes
Optionable Yes
Inside Ownership 0.60%
Short Float 34.70%
Short Interest Ratio 6.7
Quarterly Return -31.80%
YTD Return -76.80%
Year Return -73.60%

 

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).