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| Archive for September, 2009 |
With all this talk of electric cars and wind turbines, it is no wonder venture capitalists are flocking to the sector.
According to a report by Reuters, clean technology is now the top category in U.S. venture capital investment. Given the massive global push for environmentalism, it is no surprise that clean tech surpassed the biotechnology and software sectors on its way to the top. Within the segment, solar investments are king with $1.59 billion invested globally across 134 companies, according to Reuters. Before that energy can be distributed throughout the world, it needs to be stored somewhere, and the energy storage and battery sector could be in a position to benefit. In the U.S., clean tech investments represented 27% of all venture funding in the third quarter.
The components of the Energy Storage and Battery Technology Stocks Index are mixed with a bias to the upside, as some soar by more than 5%.
ZBB Energy (ZBB) is leading the sector today with a 10% run. The Menomonee, Wisconsin-based company markets its energy storage devices to utility companies, as well as commercial and industrial applications.
Advanced Battery’s (ABAT) products can be used in everything from cell phones and computers to motorcycles and other vehicles. A former Apple (AAPL) executive took the helm of the company’s technologies division back in 2006.
A123 (AONE), the sector’s newest stock, is enjoying its second straight gain, after trending lower following its IPO-day pop. Shares are ahead by 7% for the session.
Johnson Controls (JCI), the Index’s largest component by market cap is slipping by more than -1% today. Maxwell Technologies (MXWL), Axion Power International (OTC: AXPW), and Exide Technologies (XIDE) are also sitting out the rally.
As of this writing, the Energy Storage and Battery Stocks Index is one ofthe top-3 performing tickerspy Indexes over the last month, up by 21.2%.
Investors looking to capitalize on further developments in the battery technology sector can track the Energy Storage and Battery Technology Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
Posted by Owen Vater at 3:22PM on September 30th
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The 2009 World Stem Cell Summit concluded a week ago, and since then the sector’s stocks have slipped into the red.
Early last week some of the world’s brightest minds in stem cell research met in Baltimore, Maryland for the 2009 World Stem Cell Summit. According to the event’s website, topics of discussion ranged from science and medicine to ethics and advocacy. However, despite three days of presentations and panel discussions, apparently nobody said anything that got investors excited about stem cell stocks.
Over the week since the annual conference ajuorned, Stem Cell Stocks Index has slipped by -5.5%, making it one of the ten worst-performing tickerspy Indexes for the period.
Osiris Therapeutics (OSIR) and Opexa Therapeutics (OPXA) are the sector’s worst performers over the last week, both falling by double-digit percentages. The latter has rallied from less than $2 to highs over $5.50 in Sepetmber on developments relating to its deal with Novartis (NVS).
Aastrom Biosciences (ASTM), Neuralstem (CUR), and Cytori Therapeutics (CYTX) are all giving up more than -3.5% today. Geron (GERN) is up fractionally for the session, though it would need a 6% run to pull it out of negative territory for the last five.
Thermogenesis (KOOL) is bucking the trend over the last week with a 13% gain. The stock picked up speed on Monday after investors learned that the company’s CEO Melville Engle bought another 100,000 shares. Pluristem Therapeutics (PSTI) is the stem cell sector’s only other stock in positive territory after the last five sessions.
Investors interested in capitalizing on future developments in the stem cell research sector can track the Stem Cell Stocks Index for industry trends and a suite of other performance metrics.
Posted by Owen Vater at 12:23PM on September 30th
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Coal stocks sold off with the market on Wednesday, but a bullish shipping call could translate into future gains.
Coal stocks are selling of today as oil and the benchmark indexes turn south, but yesterday’s call by a dry bulk shipping executive suggests gains could be on the way. Kong Fanhua, a senior researcher at China Ocean Shipping (Cosco), told Bloomberg the Baltic Dry Index could rally by 80% to 4000 by the end of the year. His reasoning was that local governments in China are encouraging increased output, especially of steel. If Fanhua’s forecast comes to fruition it could mean bolstered demand for metallurgical coal heading into the winter months when other supplies will be headed to power plants.
Meanwhile, Mongolia is putting its stake in a coal mine on the market, according to Reuters. The estimated $2 billion price tag means multiple companies could get their share.
As a whole, the Coal Stocks Index is down by -2% today. It is now outperforming the S&P 500 by 5.8% over the last month.
The weaker than expected PMI figure is putting stocks on sale across the board today, and the coal sector is no exception. Westmoreland Coal (WLB), Patriot Coal (PCX), and International Coal (ICO) are among the sector’s worst performers.
Peabody Energy (BTU), Consol (CNX), and Yanzhou Coal (YZC), the industry’s largest players, are all slipping by more than -1%.
Evergreen Energy (EEE), formerly one of the week’s worst performers, is the lone winner today, up by more than 2%. The stock is still -63% from its 52-week high, among the industry’s worst.
As of this writing, the Coal Stocks Index is one of the top-50 performing tickerspy Indexes over the last month, up by 7.2%.
Posted by Owen Vater at 10:30AM on September 30th
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The IPO market is picking up steam, adding seven new stocks last week.
Last week, investors welcomed seven new companies to the public exchanges, and so far the reception hasn’t been as gracious as it was for prior 2009 IPOs. However, if the trend of big gains for new U.S. listings is any indication, these new stocks could be set to rally.
As a whole, the 2009 IPOs Index is slipping fractionally with the market today, but four of the newest components are helping the average with gains.
Online discount vitamin retailer Vitacost.com (VITC) is slipping fractionally while asset management firm Artio Global Investors (ART), battery technology developer A123 Systems (NADSAQ: AONE), and online gaming spinoff Shanda Games (GAME) are all trading higher in today’s session after going public last week.
Specialty hospital and outpatient rehab clinic operator Select Medical (SEM) and A123 are the only two of companies to stay positive since their debut.
Real estate investment firms Colony Financial (CLNY) and Apollo Commercial (ARI) both cut the size of their respective IPOs in half at the last minute, Colony from 25 million to 12.5 million shares and Apollo from 20 million to 10 million, according to Fox Business. So far the stocks have dropped by -2.5% and -7.5% respectively.
The year’s top performing IPO is online gaming company Changyou.com (CYOU), which spun off of its Beijing-based parent Sohu.com (SOHU) in April. Shares are now up by more than 135% since debuting at $16. Chinese water treatment equipment company Duoyuan Global Water (DGW) is the only other 2009 IPO to double, up 103% since its June 23 public offering.
Investors can track the performance of these stocks and the rest of the 2009 IPOs with the 2009 IPOs Index, or among other stocks within their particular industries in one of tickerspy’s more than 250 sector-based Indexes
Posted by Owen Vater at 11:44AM on September 29th
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Can Chinese demand spur a massive rebound for the dry bulk sector’s benchmark?
Lackluster post-recession demand has weighed heavily on the dry bulk shipping sector, recently sending many of the industry’s public players down by double-digit percentages. According to China Ocean Shipping (Cosco), that all might change by the year’s end. Cosco senior researcher Kong Fanhua told Bloomberg that government-encouraged factory output in China could send the Baltic Dry Index up by 80% by the end of 2009.
As a whole, the Dry Bulk Shipping Stocks Index is ahead by 1% today. It is currently trailing the S&P 500 by -4% over the last month.
Genco Shipping & Trading (GNK) and DryShips (NADSAQ: DRYS) are leading the rally with more than 3% gains. Close behind are Excel Maritime (EXM), Navios Maritime Holdings (NM), and Eagle Bulk Shipping (NADSAQ: EGLE). All four remain in negative territory over the last five sessions.
Omega Navigation Enterprises (NADAQ: ONAV) is the Index’s only component to break even over the last week. Paragon Shipping (PRGN), Diana Shipping (DSX), and Excel remain down by more than -10% for the period.
As of this writing the Dry Bulk Shipping Index is one of the 15 worst-performing tickerspy Indexes over the last month, down by -1.1%, though if Cosco’s bold call on the BDI rebound is accurate, there could be plenty of upside for the sector.
Posted by Owen Vater at 10:30AM on September 29th
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After Diedrich Coffee (DDRX) exploded from 30 cents a share to highs above $25 in 2009, an analyst sees even more room to the upside.
Roth initiated coverage on Diedrich with a Buy rating and a $35 price target. The analyst cited the early stage growth of single-serving coffee makers, which it believes will become a mass-market product. Diedrich should benefit as K-Cup portion packs penetrate the grocery store market, which accounts for more than half of coffee sales for home consumption, according to Roth.
At a price of 11.5 times estimated fiscal 2011 EPS and 7.5 times EBITDA, Roth sees Diedrich as a value play. Based on those fundamentals it is cheaper than any other major coffee roaster company.
Diedrich has carried the Coffee Stocks Index for much of 2009, but the stock actually turned negative over the last three months. Meanwhile, four other coffee companies tacked on double-digit gains.
Roth’s bullish stance on Diedrich also bodes well for Green Mountain Coffee Roasters (NADAQ: GMCR) which started the K-Cup craze with their single serving coffee packs and Keurig roasters. Green Mountain’s 55% six-month rally doesn’t quite compare to the more than 4600% run by Diedrich, but over the last three months it outperformed all but one of the Indexes other components, up by 25%.
Starbucks (SBUX) added 40% over the last three months, putting it ahead by 75% in the last six. The Seattle-based coffeehouse chain is looking to grab its share of the single-serving coffee market with its new Via instant coffee line.
Other coffee plays, Peet’s Coffee & Tea (PEET), Caribou Coffee (CBOU), and Farmer Brothers (FARM) are ahead over the last week.
Prior to Tuesday’s open, the Coffee Stocks Index is one of the 25 worst-performing tickerspy Indexes over the last month.
Posted by Owen Vater at 9:42AM on September 29th
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Hotel REITs are outperforming the market on a triple-digit day for the Dow.
LaSalle Hotel Properties (LHO) is leading the Hotel REIT sector higher today after its balance sheet earned it a positive mention in Barron’s. The newspaper noted that, while the stock has staged a 360% run since March, it may still have room to run. The report also highlighted the company’s overweight presence in Washington, D.C., which helped it maintain occupancy during the recession.
Barron’s said that LaSalle has “less debt and fatter margins than others,” yet four components of the Hotel REITs Index have rebounded to within closer margins of their 52-week high prices.
Hospitality Properties Trust (HPT) is currently trading within -5% of annual highs, while Diamondrock Hospitality (DRH) and Host Hotels & Resorts (HST) are both within -20% of their 52-week peak. Meanwhile, LaSalle is -25% from its 52-week high, slightly below average for the sector according to Barron’s.
According to Friday’s report by StreetInsider.com, Strategic Hotels & Resorts (BEE) swung by 10% or more in seven of the prior ten sessions. Those who endured the volatility over the last month have earned 87% for their perseverance.
Elsewhere in the industry, the Hotel Stocks Index is ahead by 1.2% today, after last week sent more than half of its components lower.
Chinese hospitality company Home Inns & Hotel Management (HMIN) is a top performer for the session. Meanwhile Starwood (HOT) and Wyndham Worldwide (WYN) are ahead by less than 2%.
As of this writing, the Hotel REITs Index is outperforming the top performing tickerspy REIT Index over the last month, up by 14.2%.
Posted by Owen Vater at 11:42AM on September 28th
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Crude oil’s slide has weighed on oil-related equities, but is a buying opportunity at hand?
In less than a week, oil prices have fallen from above $71 per barrel to less than $66 as economic worries weighed on the equity markets and an uptick in the dollar hurt commodities. Today, the Dow is up triple-digits, but another gain for the dollar versus the euro and pound put a damper on a potential oil rally.
A number of oil-tied equity sectors have dipped over the last week, providing a potential buying opportunity for the bulls.
As a whole, the Canadian Energy Trusts Index was off only fractionally for the period, but individual components were discounted by as much as -6%.
Precision Drilling Trust (PDS), Advantage Energy Income Fund (AAV), and Harvest Energy Trust (HTE) are all more than -3.5% cheaper than they were last week. Should oil continue to decline, more pain could be in store for these equity plays, but an oil rebound could erase prior losses.
The entire Oil Sands Stocks Index was in the red last week by -2% or more. Reuters highlighted Chinese interest in the sector after PetroChina (PTR) said it would pay nearly $2 billion for a 60% stake in two planned oil sands projects.
While there is no news of merger talks at North American Energy Partners (NOA) or Oilsands Quest (BQI), their sub-$300 million market-caps make them an easy buy for any of the big oil and gas companies.
As oil establishes a trend investors can track equity movements any of tickerspy’s oil-tied stock Indexes.
Posted by Owen Vater at 10:33AM on September 28th
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An eleventh hour buyout connects Johnson & Johnson (JNJ) to the vaccine market – will other large-caps follow?
With the height of this year’s flu season is around the corner, the world’s largest health company by market cap announced a $444 million deal with Dutch biotech firm Crucell (CRXL), which has exposure to the flu vaccine market. J&J’s investment gives it an 18% stake, which Crucell issued 14.6 million new shares to accommodate. J&J paid a 30% premium based on the average Crucell share value over the last 35 days, according to Reuters.
Reuters also said that, prior to Pfizer’s (PFE) planned acquisition of Wyeth (WYE), the latter pharmaceutical firm was also a potential Crucell suitor.
A number of large caps have already developed their own flu vaccines. Those catering to the threat of the H1N1 virus can be found in the Swine and Bird Flu Stocks Index.
Novartis (NVS), GlaxoSmithKline (GSK), Roche (OTC: RHHBY), and AstraZeneca (AZN) are among the multi-billion-dollar swine flu plays.
Meanwhile, an assortment of small-cap vaccine and antiviral companies are ripe for picking by thus-far uninvolved pharmaceutical giants. China’s Sinovac Biotech (SVA) and U.S.-based Novavax (NADSAQ: NVAX) have made a splash in the pandemic investment sector, and are currently valued at less than $350 million.
While none of the above have been mentioned in the context of M&A recently, they are have spent much of the year trading in connection with headlines related to the pandemic.
Investors interested in capitalizing on the hype surrounding swine flu, or simply immunizing their portfolios from the downside risk of a pandemic threat should look to the Swine and Bird Flu Stocks Index , as well as tickerspy’s more than 250 other sector-based Indexes.
Posted by Owen Vater at 9:57AM on September 28th
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Buffett has made billions picking “diamonds in the rough,” but he sees a bleak outlook for the ones in display cases.
Back in May, at Berkshire Hathaway’s (NYSE: BRK-A, BRK-B) annual shareholder meeting, news cameras followed some of Buffett’s “partners” as they shopped at high-end jewelry store Borsheim’s. Berkshire has held a majority position in the jeweler for the last 20 years, and a reception during the shareholder weekend has become a tradition. Unfortunately, the free press hasn’t changed Buffett’s outlook on the sector, which he is also exposed to via an investments in 19-store chain Helzberg Diamonds and 75-store chain Ben Bridge Jeweler, according to Bloomberg.
According to Bloomberg’s September 15 report, Buffett told Bridge employees that he doesn’t expect a quick recovery, advising executives, “We are deeply in this – in a recession – and it’s going to take a long time to get out of it.” Buffett’s jewelers are privately held, and thus don’t appear in Berkshire’s U.S.-listed holdings at the end of Q2, but some of the sector’s other stocks have shown strength recently.
As a whole, the Jewelry Retailer Stocks Index’s performance has contradicted Buffett’s outlook for the sector. All but one of the Index’s nine components are more than 100% above their 52-week lows, and two thirds of the sector has more than tripled after getting beaten down during the recession.
This week, however, some investors are taking money off the table, sending jewelers down by as much as -11%.
Tiffany (TIF) has survived through its share of economic downturns, including the Great Depression. Investors who bought the stock on one of three dips below the $20 mark are now up by as much as 114%. Tiffany is just -9% from its 52-week high.
Harry Winston Diamond (HWD) gave back more than -10% of its 50% one-month rally this week. Blue Nile (NILE) and Zales (ZLC) are both off by more than -3% for the period.
Movado (MOV) is the sector’s lone winner in the last five sessions, and China-based Fuqi International (FUQI) is slipping only fractionally.
As the holiday shopping season approaches, investors should keep a close eye on trends in the Jewelry Retailer Stocks Index, as a weak performance could weigh on share values. Saks (SKS) and Nordstrom (JWN) are other high-end retailers are also in focus.
Posted by Owen Vater at 12:00PM on September 25th
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