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Technical Trade Alerts on Market Movers: HHGP, CPSL, GLBL, EXTR, BRCD, STEI for Oct. 10
10/13/08
ticker(s):
HHGP,
CPSL,
GLBL,
EXTR,
BRCD,
sector(s):
Friday October 10 2008
Today's Trade Alerts include: Hudson Highland Group Inc. (Nasdaq: HHGP: Summary, Messages, Articles), China Precision Steel Inc. (Nasdaq: CPSL: Summary, Messages, Articles), Global Industries Ltd. (Nasdaq: GLBL: Summary, Messages, Articles), Extreme Networks Inc. (Nasdaq: EXTR: Summary, Messages, Articles), Brocade Communications Systems Inc. (Nasdaq: BRCD: Summary, Messages, Articles) and Stewart Enterprises Inc. (Nasdaq: STEI: Summary, Messages, Articles).
Hudson Highland Group Inc. (HHGP: Summary, Messages, Articles) Trade Alert - HHGP Presents at CL King Best Ideas Conference
Despite a weak trading day, Hudson Highland Group (HHGP: Summary, Messages, Articles) shares rose 13.69% Thursday to close at $4.65. Hudson Highland is a specialized professional staffing and talent management solutions providers. It provides professional staffing services on a permanent and contract consulting basis, and a range of talent management services to businesses operating in many industries.
The company recently presented at the CL King Best Ideas Conference held at the Omni Berkshire Place Hotel in New York.
Chairman and CEO Jon Chait and executive vice president and CFO Mary Jane Raymond discussed company strategy and third-quarter trends.
The company revealed in an update for its third quarter that the months of July and August are seasonally weak but weaker than expected in most of its regions. Normal seasonal improvement in September is occurring, but as usual, the magnitude is currently unknown as visibility is limited. The bulk of its third quarter adjusted EBITDA is delivered in September. Accordingly, September should be a strong month compared to July and August.
Hudson Highland's guidance for third quarter was at prevailing exchange rates: Rate movements for the third quarter may reduce adjusted EBITDA by up to $1.5 million.
The company said it will continue to focus on year over year earnings improvement as its primary financial goal.
The company, one of the world's leading providers of specialized professional staffing, retained executive search and talent management solutions, is organized into three segments: Hudson Americas, Hudson Europe and Hudson Asia Pacific. On February 4, 2008, the company completed the sale of its Hudson Americas energy, engineering and technical staffing division (ETS), which was part of the Hudson Americas regional business.
From single placements to total project solutions, Hudson helps clients achieve greater organizational performance by assessing, recruiting, developing and engaging the best and brightest people for their businesses. The company employs more than 3,600 professionals serving clients and candidates in more than 20 countries.
In its recent chart, HHGP's Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD reflects a strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share price currently below the stock's 13-day moving average signal line, the bearish signal is more pronounced with decreasing moving averages.
China Precision Steel Inc. (CPSL: Summary, Messages, Articles) Trade Alert - CPSL Plans to Continue Expanding Production Capacity with Addition of Third Cold-Rolled Mill
Shares of China Precision Steel (CPSL: Summary, Messages, Articles) climbed 6.07% to close at $2.27 Thursday. China Precision principally engages in the manufacture and sale of high-precision, cold-rolled steel products and in the provision of heat treatment and cutting of medium and high carbon hot-rolled steel strips.
China Precision plans to continue expanding its production capacity with the addition of a third cold- rolled mill, expected to begin production in the first half of calendar year 2009. Its market outlook remains strong as its production facilities are fully booked for up to three months in advance. In addition, the majority of its customers are in developing countries and do not rely on the U.S. consumer for sales of their products.
In light of its plan to commence a new investor relations campaign to raise its profile and ensure that the broad investment community fully understands its position as value-added precision steel processing company with strong growth prospects, China Precision has announced it has retained Elite Investor Relations to lead the new investor relations campaign.
According to CEO Dr. Wo Hing Li, the company has successfully ramped up the production capacity for its value-added, precision steel resulting in record revenues for its 2008 fiscal year.
The company expects that its focus on value-added steel products will enable them to continue generating an above industry average gross margin.
Nancy Chen, managing partner of Elite IR, stated, "China Precision Steel has experienced rapid growth over the past several years as they ramped up production capacity and broadened their reach into new end-markets. They have a unique market position in China with a state-of-the-art, patented, precision steel processing technology that enables them to compete with international steel processing companies while building an internationally recognized brand. Our goals are to improve visibility and sponsorship throughout the global financial communities, creating a more appropriate market valuation and understanding of the potential of China Precision Steel."
The company produces and sells precision ultra-thin and cold-rolled steel products with thicknesses ranging from 7.5 millimeters to 0.03 millimeters. It also provides heat treatment and cutting and slitting of cold-rolled steel strips not exceeding 7.5 millimeters thickness.
In its recent chart, CPSL's MACD reflects a strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share price currently below the stock's 13-day moving average signal line, the bearish signal is more pronounced with decreasing moving averages. Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend.
Global Industries Ltd. (GLBL: Summary, Messages, Articles) Trade Alert - GLBL Gets $75M Pemex Pipeline Project in Bay of Campeche
Global Industries (GLBL: Summary, Messages, Articles) shares slipped 2.54% Thursday, closing the day at $4.60. Global Industries provides worldwide construction and subsea services, including pipeline construction, platform installation and removal, project management, construction support, diving services, diverless intervention and marine support services to the offshore oil and gas industry primarily in selected international areas and the United States Gulf of Mexico.
The company recently announced it has been awarded a project from Petroleos Mexicanos (Pemex) for pipeline work in Pemex's Ixtal Field in the Bay of Campeche.
The project, worth approximately $75 million, is scheduled to begin in October and be completed by the end of January 2009.
The company said it would use the Shawnee as the main operating vessel. It said it would lay more than 12 kilometers of 24-inch pipe in water about 150 feet deep.
Global Industries provides services from shallow water to water depths of up to 10,000 feet. The company’s business consists of two principal activities: Offshore Construction Services, which includes pipeline construction and platform installation, and removal services, and Subsea Services, which includes diving and diverless intervention, and marine support services.
On December 31, 2007, the company’s fleet included 14 major construction vessels (MCVs), three cargo launch barges and 10 dive support vessels (DSVs).
Commenting on the award of this project, chairman and CEO B.K. Chin said it demonstrates Pemex's confidence in Global as a reliable contractor and solutions provider. Mr. Chin stated that Global has a close working relationship with Pemex, and has been active in the Ixtal Field for well over a year.
In its recent chart, GLBL's MACD reflects a strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share price currently below the stock's 13-day moving average signal line, the bearish signal is more pronounced with decreasing moving averages. Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend.
Extreme Networks Inc. (EXTR: Summary, Messages, Articles) Trade Alert - EXTR's BlackDiamond 20808 Metro Ethernet Transport Switch Chosen Finalist in Light Reading's Leading Lights Competition
Together with its subsidiaries, Extreme Networks (EXTR: Summary, Messages, Articles) shares dropped 10.87% Thursday afternoon, settling at $1.64. Extreme provides network infrastructure equipment to corporate, government, education and healthcare enterprises and metropolitan telecommunications service providers.
The company designs and sells secure network infrastructure equipment and offer related services to enterprises and service providers worldwide. The company’s products comprise: Stackable Ethernet switching systems; Modular (chassis) Ethernet switching systems; Wireless Ethernet controllers and access points, and Electronic network security systems.
Recently, the company announced its newest product, the BlackDiamond 20808 metro Ethernet Transport switch, has been selected as a finalist in Light Reading's esteemed Leading Lights competition.
The metro Ethernet Transport switch has earned Best New Product nomination. Light Reading defines a product in the Best New Product category as a market-leading product that, through engineering and technical excellence, enables the deployment of profitable next-generation telecommunications services.
According to Light Reading report, the BlackDiamond 20808 is capable of supporting 120 Gbit/s of traffic on each card slot, compared with 40 Gbit/s for its competitors. Infonetics Research Inc.'s Michael Howard also expressed praises: The analyst said, "They're leapfrogging other vendors in a really big way. It's impressive."
Awards will be announced at a special gala dinner Monday, October 20, 2008, following the first day of Light Reading's Ethernet Expo in New York City.
In its recent chart, EXTR's Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD reflects a strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share price currently below the stock's 13-day moving average signal line, the bearish signal is more pronounced with decreasing moving averages.
Brocade Communications Systems Inc. (BRCD: Summary, Messages, Articles) Trade Alert - BRCD Enters into $1.2B Secured Credit Facility for Acquisition of Foundry Networks
Shares of Brocade Communications Systems (BRCD: Summary, Messages, Articles) slipped 3.72% to close at $3.88 Thursday afternoon. Brocade is a supplier of storage area network equipment and a provider of data center networking solutions that help enterprises connect and manage their information.
Brocade recently announced it has entered into a $1.2 billion secured credit facility with Bank of America N.A. as administrative agent; Banc of America Securities LLC and Morgan Stanley Senior Funding Inc. as joint lead arrangers and joint bookrunners; Morgan Stanley Senior Funding Inc. as syndication agent; and HSBC Bank USA, National Association and Keybank National Association as co-documentation agents and other lenders providing for a $1.1 billion term loan facility and a $125 million revolving credit facility.
On July 21, Brocade announced it would buy Foundry for $3 billion. Brocade plans to use the proceeds from the term loan facility to fund a portion of the company's acquisition of Foundry Networks.
Also, Brocade said it expects to raise up to $400 million in additional financing to fund the purchase and will also use cash on hand.
The acquisition has cleared U.S. and foreign regulatory review, has been approved by the board of directors of each company, and is subject to vote and approval by Foundry's stockholders on October 24, 2008, along with certain other closing conditions. The acquisition is expected to close in the fourth quarter of calendar year 2008.
Brocade offers a line of data center networking products, software and services that enable businesses to make their data centers more reliable and adaptable. The Brocade family of storage area network (SAN) infrastructure products and solutions includes directors, switches, routers, embedded switches for blade servers, fabric-based software applications, as well as management applications and utilities to centralize data management.
The Brocade family of file area network (FAN) solutions includes software offerings for managing file data and storage resources. Brocade also offers services that assist customers with consulting and support in designing, implementing, deploying and managing data center enterprise solutions.
In its recent chart, BRCD's Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD reflects a strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share price currently below the stock's 13-day moving average signal line, the bearish signal is more pronounced with decreasing moving averages.
Stewart Enterprises Inc. (STEI: Summary, Messages, Articles) Trade Alert - STEI Disappointed by SCI's Abrupt Bid Withdrawal
Stewart Enterprises (STEI: Summary, Messages, Articles) shares climbed 5% to $5.25 Thursday afternoon, despite a dismal market. Stewart is a provider of funeral and cemetery products and services in the death care industry in the United States.
Through its subsidiaries, the company provides a range of funeral merchandise and services, along with cemetery property, merchandise and services, both at the time of need and on a preneed basis. As of October 31, 2007, its operations included 221 funeral homes and 139 cemeteries in 24 states within the United States and in Puerto Rico.
Stewart Enterprises announced it was surprised and disappointed by the unexpected withdrawal, as indicated in the letter from Service Corp. International (SCI) to Stewart on October 7, 2008, of the previous proposal made to acquire Stewart for $11 per share.
In September 2008, after Stewart's board of directors and independent committee consulted with its financial and legal advisors regarding the proposal, Stewart's board determined to explore, among others, the opportunity presented by the proposal and to share information with SCI pursuant to a confidentiality agreement between the parties.
According to Service Corp. CEO Thomas Ryan, in a letter to Stewart, the three pre-conditions demanded by Stewart were unacceptable. He said Service Corp. would not agree to accept all financing risk of a transaction, accept all regulatory risk on antitrust clearance and, in addition, increase its $11 a share proposal.
In a letter to Service Corp., Stewart CE Thomas Crawford said the company would continue to assess alternative plans and was open to further talks with Service Corp.
Stewart Enterprises operates most of its funeral homes and cemeteries in clusters. Clusters are groups of funeral homes and cemeteries located close enough to one another that their operations can be integrated to achieve economies of scale.
In its recent chart, STEI's Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD reflects a strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share price currently below the stock's 13-day moving average signal line, the bearish signal is more pronounced with decreasing moving averages.
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Today
| Stocks | Searches Today | ||
|---|---|---|---|
| HHGP | (HUDSON HIGHLAND G) | Summary Messages Articles | 0 (new!) |
| CPSL | (CHINA PREC. STEEL) | Summary Messages Articles | 1 (0%) |
| GLBL | (GLOBAL INDS LTD) | Summary Messages Articles | 0 (new!) |
| EXTR | (EXTREME NETWORKS) | Summary Messages Articles | 0 (new!) |
| BRCD | (BROCADE COMM SYS) | Summary Messages Articles | 0 (new!) |
| STEI | (STEWART ENTERPR) | Summary Messages Articles | 0 (new!) |
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