Oct 16, 2009 @ 12:44 PM PDT
When the recession hit, Audiovox was already in the process of cutting its fat, whereas other companies were only just beginning.
Trends, Charts and Exclusive Opinion
QADI: Q3 2010 Adj. EPS of $0.18 Propels 23% Gain; Tops 52-Week High
SIGA: Inclusion to NASDAQ Biotechnology Index Tops 52-week High
DRWI: Piper Jaffray Initiates Coverage Today With an 'Outweigh'
Gaining 23% this morning is QAD Inc., (QADI) http://www.qad.com/ currently trading in the $5.27 range. Quadrupling its 3-Month average daily trading volume, QADI topped its 52-week high of $5.24 set on 10-15-09 early in todays session. As the chart displays, QADI has made a steady climb from the $2 level in the spring and has established a current, 3-Month floor at $4.20. In the last month it's moved that floor to $4.40 with spikes into the $4.60 range. With trailing twelve month revenues of $233 million, a steady value ascent, and a very strong Q3 2010 just reported, QADI is a short-term (6 Mo) 'Buy' for me at this price. Buying on the high isn't always profitable, but I believe this is a $7 stock in the near-term and a $9 stock in the short term. QADI Q4 2010 guidance sees a strong quarter and I think QADI is on an upward trend-line for the next six months.
Yesterday after market, QADI released its Q3 2010 numbers: Adjusted EPS of 13 cents (beating estimates of 16 cents). Even though QADI earnings came from the bottom-line, and revenues dropped 18%, QADI management said during Q3 the Company received orders from 15 customers representing more than $500,000 each in combined license, support and services billings, including six orders in excess of $1.0 million. For Q3, net income was $4.8 million -15 cents a share fully diluted- besting a Q3 2009 y-o-y loss of $1.8 million.
There were a number of y-o-y decreases for the quarter (like revenues), but they weren't drastic (considering the 'great recession') and QADI is making a sound comeback.
NINE MONTHS
Net income for the QADI fiscal 2010 year-to-date period was $0.7 million, or $0.02 per fully diluted share, compared with a net loss of $4.0 million, or $0.13 per share, for the fiscal 2009 year-to-date period. Gross margin for the fiscal 2010 third quarter was 60%, compared with 54% in the first nine months of FY 2009.
"We are successfully managing our business through this tough economic environment," said Karl Lopker, CEO of QADI. "...as signs of a global recovery begin to emerge, we believe we are well positioned to take advantage of improvements in the manufacturing sector..."
GUIDANCE
For the fiscal 2010 fourth quarter, management at QADI expects total revenue of approximately $57 million, and profit of about $0.13 per fully diluted share. For the fiscal 2010 full year, the company currently expects total revenue of approximately $220 million and profit of approximately $0.15 per fully diluted share.
QADI makes and sells software and services for the automotive, consumer products, high technology, food and beverage, industrial products, and life sciences industries. QADI has business alliances with Progress Software Corporation and Microsoft Corporation.
QADI 1-Year QADI 3-Month
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and Trading Alerts on QADI, SIGA, and DRWI.
Gaining 5% this morning is SIGA Technologies Inc., (SIGA) http://www.siga.com/ currently trading in the $8.92 range. SIGA is a heavily traded SmallCap stock and easily flew by its 3-Month average daily trading volume this morning. Today, SIGA topped its
52-week high of $8.88 set on 06-30-09 in early trading. SIGA has a 3-Month floor of $6.50 and after a recent dip from $8, has regained its ground and is flirting with the $9 value range. This is a near-term 'Watch Closely' stock for me.
SIGA has posted a strong jump in price since its inclusion in the NASDAQ Biotechnology Index* last Friday and I believe new investors are being brought into the stock on the exposure gained by being part of a significant index on the NASDAQ. Good news and it has provided SIGA with a short term momentum. Although I don't think this is a 1-month momentum 'play', I do believe SIGA will be able to commercialize its drug products and as the process unfolds, SIGA will organically gain a momentum.
For Q3 2009, SIGA management reported November 9 that the Company recognized revenues of $3.9 million and $9.9 million for the three and nine months ended September 30, 2009, respectively. The increase from revenues recognized during the same periods in the prior year was mainly driven by the continued research and development activities supporting its ST-246 drug grants and contracts. Net loss per share for the three-month periods ending September 30, 2009 and 2008 was $0.04 and $0.09, respectively.
"Our efforts to transition SIGA to a successful commercial-stage drug company continued to advance during the quarter. Nonclinical toxicology studies needed to satisfy a future New Drug Application for ST-246 were completed, and we are currently pursuing commercial validation and clinical safety studies," said Dr. Eric Rose, SIGA's Chairman and CEO.
SIGA products are primarily focused on pharmaceutical agents to fight potential bio-warfare pathogens. SIGA has antiviral programs targeting smallpox and other Category A pathogens, including arenaviruses (Lassa fever, Junin, Machupo, Guanarito, Sabia, and lymphocytic choriomeningitis), dengue virus, and the filoviruses (Ebola and Marburg).
*(The NASDAQ Biotechnology Index is the basis for the iShares Nasdaq Biotechnology Index Fund (IBB), which seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the NASDAQ Biotechnology Index)
SIGA 3-Month DRWI 3-Month
Gaining 5% this morning is DragonWave Inc., (DRWI) http://www.dragonwaveinc.com/ currently trading in the $9.07 range. DRWI is also a heavily traded SmallCap. DRWI has a 52-week high of $11.62 set on 10-13-09. DRWI has a 3-Month floor of $6 and as it makes a steady climb towards it high, I believe it will establish a $9 bottom. I also believe the support is there to get back to its high in the near-term and this is a 'Watch Closely' stock for me. I like the fact the on $69 million in trailing twelve month revenues, DRWI posted a positive, diluted EPS during the corresponding period of $0.03.
DRWI began trading on NASDAQ Global Market board on 10-15 and it has dual shares listed on the TRX (Toronto). A great way for a new company to begin trading on the NASDAQ is some coverage and today, DRWI got just that: research house Piper Jaffray initiated coverage with an 'Overweight'.
DRWI is a provider of high-capacity packet microwave solutions that drive next-generation IP networks like: broadband voice, video and data that enable service providers, government agencies, enterprises and other organizations to meet their increasing bandwidth requirements rapidly and affordably.
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