Wecast Network (Nasdaq: WCST) Shares Up over 50% in Early Trading

Wecast Network, Inc. – Nasdaq: WCST

Shares of Wecast Network have been up over 50% in morning trading on heavy volumes. WCST, traded on the Nasdaq, closed yesterday at $1.58, raced to $2.43, and have now settled around the $1.80 handle as of this writing. Volumes are exceptionally heavy – average daily volumes have been less than 70,000 but are over 1.25 million at 1:30 PM EST. Last week, Wecast announced a 55% ownership stake in CA-based Wide Angle Group Limited – a sales and marketing firm that specializes in media and commerce.

China-based Wecast Network Inc. is a next generation global brand licensing, IP sales and video commerce company. The company is leveraging and optimizing its legacy operations as a premium content Video on-demand service provider in China to evolve into a global, vertical, and transactional B2B2C, mobile-driven, consumer and supply chain management platform.

On January 30, 2017, unanimously appointed Mr. Yi Xu as the Chief Operating Officer to replace Ms. Mei Chen, as well as the interim Chief Financial Officer, and principal accounting officer of the Company, effective February 4, 2017. Most recently and prior to joining the Company, Mr. Xu was the Vice President of Zhimaotong (Shanghai) International Trade Co., Ltd., a state-controlled company specializing in cross-border e-commerce. He also served as the Senior Vice President of Shanghai Kuajingtong Group, also a state-controlled company specializing in cross-border e-commerce.

Investors in WCST have seen sales rise steadily since 2013 when the company posted $300k – in 2015 that figure rose to $4.6 million. EPS, however, has never been positive for WCST. In 2014 the EPS loss was $1.47 but last year that figure improved to a smaller loss of $0.34. Investors should take note that WCST shares have a short ratio that demands attention – especially if volumes return to normal.

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.

2/8/2017
Ticker Symbol WCST
Last Price a/o 1:37 PM EST  $                      1.87
Average Volume                      67,500
Market Cap (mlns)  $                    67.12
Sales (mlns) $6.00
Shares Outstanding (mlns) 42.48
Share Float (mlns) 8.19
Shortable Yes
Optionable No
Inside Ownership 0.00%
Short Float 8.19%
Short Interest Ratio 20.32
Quarterly Return 14.49%
YTD Return 28.46%
Year Return 0.64%

Sevcon, Inc. (Nasdaq: SEV) Shares Rocket on Deal

Sevcon Inc. – Nasdaq: SEV

Early today, Sevcon, Inc. today reported that it has been contracted by a major manufacturer of electric vehicles for an on-road development & production program. This is Sevcon’s sixth major project in the development pipeline and almost doubles the company’s project backlog. Shares (Nasdaq: SEV) are up over 17%.

Sevcon is a global supplier of control and power solutions for zero-emission, electric and hybrid vehicles and had been working with the customer throughout 2016 to help optimize the drivetrain for the project. Start of production is expected to be in the fall of 2018. Over the initial three-year production period, revenues are likely to total in the range of $150 to $200 million.  The agreement contains two near-term milestones, including the initial product sample and proof-of-concept in the current second quarter of fiscal 2017, and performance testing in the customer’s vehicle in the fourth quarter of fiscal 2017.

Sevcon has a presence in the USA, Europe, and Asia but derives most of its revenues from Europe and is based in the UK. Sevcon shares are listed on the Nasdaq and trade under ticker symbol SEV. SEV shares are very thinly traded. Prior to today the average daily volume did not exceed 9,000. However, by early afternoon trading today over 450,000 shares had traded hands and SEV has gained over 20% since Friday’s close.

Knowledgeable industry sources believe the counter-party to the agreement is the Zhejiang Geely Holding Group (Geely). Geely has been one of the China’s top 500 companies for ten consecutive years and has been ranked in the top 10 automobile manufacturers for eight consecutive years. They are most noted for their acquisition of Volvo in 2010. Additionally, they purchased Manganese Bronze Holdings PLC, the holding company of the company that manufactures the British Black Cabs. Geely also bought, in 2014, Emerald Automotive – a British electric car start-up manufacturer. The company boasts of over $23 billion in annual revenues.

Investors or traders should take note of the high level of institutional ownership of SEV – over 50%. Combined with the historically ultra-thin trading volumes, this is a stock that could present challenges if one wanted a quick exit while holding onto gains or minimizing losses.

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.

2/6/2017
Ticker Symbol SEV
Last Price a/o 2:03 PM EST  $                    16.51
Average Volume                        8,700
Market Cap (mlns)  $                    47.69
Sales (mlns) $49.80
Shares Outstanding (mlns) 3.53
Share Float (mlns) 3.45
Shortable Yes
Optionable No
Inside Ownership 62.48%
Short Float 0.14%
Short Interest Ratio 0.56
Quarterly Return 48.95%
YTD Return 58.20%
Year Return 43.72%

Plug Power Inc. (Nasdaq: PLUG) Hits 52-Week Low

Plug Power Inc. – Nasdaq: PLUG

Shares of Latham, NY-based Plug Power Inc. hit their 52-week lows yesterday. Shares had been above $5 in early 2014 but yesterday closed at $1.02 on heavy volume. Plug Power Inc. trades on the Nasdaq under ticker PLUG and their average daily volume is over 3.7 million shares but yesterday over 11 million shares traded hands.

The price slide in PLUG comes despite improved margins on unit sales above original estimates to such blue-chip firms such as Wal-Mart, Home Depot, and BMW. Plug Power also recently announced a partnership with two Chinese firms to serve the expanding electric car market there.

Positive earnings, however, have not yet been brought to PLUG shareholders. Despite increasing sales (103.3 million in 2015), EPS has been negative for PLUG shares for the past five years – although the losses show a narrowing trend year-on-year. In 2011, PLUG EPS showed a loss of $1.46 but by 2015 that loss had narrowed to just $0.32.

Six firms follow Plug Power. Four rate PLUG shares as a “Strong Buy”, and two rate the shares as a “Hold”. Their consensus price estimate for PLUG is $2.38.

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 PLUG
Last Price a/o 8:00 AM EST  $                      1.02
Average Volume                3,780,000
Market Cap (mlns)  $                  194.62
Sales (mlns) $91.80
Shares Outstanding (mlns) 190.8
Share Float (mlns) 188.63
Shortable Yes
Optionable Yes
Inside Ownership 0.70%
Short Float 17.33%
Short Interest Ratio 8.66
Quarterly Return -33.33%
YTD Return -15.00%
Year Return -38.92%

Avid Technologies (Nasdaq: AVID) Up on China Partnership

Avid Technology, Inc. – Nasdaq: AVID

Avid Technology announced today that they have entered into a partnership with their long-time partner in China, Beijing Jetsen Technology. The agreement makes Jetsen the exclusive (master) distributor in Greater China of Avid’s comprehensive tools and workflow solutions for creating, distributing and optimizing media. The news has sent AVID shares, traded on the Nasdaq, up 10% in early trading on heavy volumes.

Jetsen will distribute all Avid products and solutions in Greater China, including mainland China, Hong Kong, Macau and Taiwan, continuing to work closely and directly with Avid’s existing reseller network in the region. Supporting Avid’s strategies for the Greater China market, the agreement with Jetsen enables Avid to deliver on its commitment to providing its client community the most flexible deployment models, licensing options and commercial structures with future cloud and enterprise offerings for the region, as well as more localized and tailored solutions.

Since 2011, Avid Technologies have seen negative growth in both EPS and reported sales. In 2011 AVID sales were $766.9 million. That figure has decreased year-on-year and in 2015 AVID sales were $505.6 million. EPS for AVID shares a similar history – $4.23 in 2011 with decreasing EPS each year and $$0.06 EPS for AVID shareholders in 2015.

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.

 

Delta Technology Holdings (Nasdaq: DELT) Doubles on Sales Figures

Delta Technologies Holdings Limited – Nasdaq: DELT 

China-based Delta Technology Holdings shares doubled in trading yesterday. The shares, traded on the Nasdaq under ticker DELT, benefitted from news that its Q4 sales doubled from the previous year’s Q4 figures. DELT closed Wednesday at $0.86 and rocketed to $2.28 before ending the day at $1.70 on exceptionally heavy volumes. Traders should take note that the financial reports peg the USD/RMB exchange rate at 1:6.85. 

Delta went public on the Nasdaq in 2014. Delta Technology Holdings Limited manufactures and sells fine and specialty chemicals in the People’s Republic of China utilizing green technologies. Delta Technologies provides specialty chemical products to more than 380 clients around the world. The company provides its products for automotive, pharmaceutical, agrochemical, dye and pigments, aerospace, ceramics, coating-printing, clean energy, and food additive applications.  

DELT EPS have been inconsistent since 2013 (-$2.21) with positive EPS in 2014 ($0.17) and 2015 ($0.22) but negative reported EPS in 2016 (-$0.73). DELT reported sales peaked in 2015 with $202 million in reported sales but fell to $53.4 million in 2016. Delta Technology Holdings is not followed by any firms. 

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.

1/19/2017
Ticker Symbol DELT
Last Price a/o 4:00 PM EST  $                      1.70
Average Volume 420,000
Market Cap 14.5 million
Sales $53.4 million
Shares Outstanding 8.55 million
Share Float 3 million
Shortable Yes
Optionable No
Inside Ownership
Short Float 0.19%
Short Interest Ratio 0.01
Quarterly Return 44.94%
YTD Return 132.30%
Year Return 58.49%