Monthly Archives: July 2009

Inovio Biomedical Corporation (INO)

Inovio Biomedical Universal influenza vaccines demonstrate 100% protection against current pandemic A/H1N1 influenza viruses in animal studies. The stock is up 366.22% today +2.71 to $3.45. The CDC anticipates a surges of H1N1 cases starting this fall. Other H1N1 companies are Biocryst Pharm (BCRX) and Novavax ((NVAX).

Green Mountain Coffee Roasters, Inc. Reports Continued Robust Performance for Fiscal 2009 Third Quarter

Net sales for the third quarter of fiscal 2009 totaled $190.5 million as compared to $118.1 million reported in the third quarter of fiscal 2008, representing an increase of 61% over the same quarter last year.

Net income for the third quarter of fiscal 2009 increased 123% to $14.1 million or $0.36 per diluted share, from $6.3 million or $0.16 per diluted share in the third quarter of fiscal 2008.

Green Mountain Cofee Roasters (GMCR)

GMCR reports earnings July 29 after the market closes. I’m interested in the Long August 70 calls and short August 80 calls. It’s a heavily shorted stock and I think this stock has more upside.

The markets last week July 20 – 24

Yes the market was up last week but the impressive aspect of last week’s market gains is the resiliency of the Dow and S & P on Friday after weaker than expected earnings reports from Microsoft (MSFT), (AMZN) and American Express (AXP). You figure with the substantial gains in all major indices the past few weeks (Dow, Nasdaq and S&P 500) this would have been a perfect opportunity to lock profits. Friday morning started out red and ended up green.

Earnings that I’m following this coming week 7/27 – 7/31: Visa (V) 7/29 before, Mastercard (MA) 7/30 before, First Solar (FSLR) 7/30 after. beats by $0.17, beats on revs; guides Q3 revs above consensus

Reports Q2 (Jun) earnings of $1.61 per share, including stock options expense, $0.17 better than the First Call consensus of $1.44; revenues rose 37.4% year/year to $160.7 mln vs the $157.8 mln consensus. Adjusted EBITDA was $76.3 mln for the second quarter of 2009, representing a 38.2% increase from the corresponding period in 2008. Co issues upside guidance for Q3, sees Q3 revs of $184-189 vs. $181.94 mln consensus.

Microsoft reports EPS in-line, misses on revs

Reports Q4 (Jun) earnings of $0.36 per share, in-line with the First Call consensus of $0.36; revenues fell 17.3% year/year to $13.1 bln vs the $14.37 bln consensus. Microsoft is providing operating expense guidance of $26.6 billion to $26.9 billion, for the full year ending June 30, 2010. “Our business continued to be negatively impacted by weakness in the global PC and server markets,” reports EPS in-line, revs in-line; guides Q3 revs in-line

Reports Q2 (Jun) earnings of $0.32 per share, in-line with the First Call consensus of $0.32; revenues rose 14.5% year/year to $4.65 bln vs the $4.69 bln consensus. AMZN Q2 gross margin 27.4% vs 23.6% consensus. Co issues in-line guidance for Q3, sees Q3 revs of $4.75-5.25 bln vs. $4.92 bln consensus. Operating income is expected to be between $120 mln and $210 mln, or between 22% decline and 36% growth compared with third quarter 2008. This guidance includes approximately $95 mln for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions or investments are concluded and that there are no further revisions to stock-based compensation estimates… Excluding the $227 mln unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 20% compared with second quarter 2008. Free cash flow increased 89% to $1.54 bln for the trailing twelve months, compared with $0.82 bln for the trailing twelve months ended June 30, 2008.

AMZN Earnings not impressive ,just meets expectations. A bigger concern is MSFT earnings and the impact on the market tomorrow. (missed revenue)

Amazon to acquire Zappos – “Why I will buy AMZN ahead of earnings, AMZN reports Jul 23rd”

AMZN announced that it has reached an agreement to acquire, an online apparel and footwear sales that strives to provide shoppers with the best possible service and selection. Under the terms of the agreement, Amazon will acquire all of the outstanding shares and assume all outstanding options and warrants of Zappos in exchange for approximately 10 million shares of Amazon common stock, equal to approximately $807 million based on the average closing price for the 45 trading days ending July 17, 2009. In addition, Amazon will provide Zappos employees with $40 million in cash and restricted stock units.

The Amazon acquisition announcement of Zappos the day prior to AMZN releases earnings is interesting. Zappos agreed to sell themselves to Amazon for $807 million dollars of AMZN stock. Would Zappos agree to this deal if AMZN would report horrible earnings the next day and watch the stock tank?

In October 2006, YouTube agreed to be acquired by Google several days prior to Google released earnings. Google blew away estimates and the stock catapulted higher. I anticipate AMZN to have good results.

Intuitive Surgical beats on top and bottom line

Reports Q2 (Jun) earnings of $1.62 per share, $0.37 better than the First Call consensus of $1.25; revenues rose 18.9% year/year to $260.6 mln vs the $230 mln consensus. Co sold 76 da Vinci Surgical Systems during Q2 (street expectations were for 69). Q2 results include $13.8 mln of revenue recognized in Q2, related to revenue deferred in the first quarter, which increased Q2 net income by approximately $8.3 mln, or $0.22 per diluted share. $13.8 mln of revenue that was originally deferred in the first quarter of 2009 in association with discounted offers made to certain customers to upgrade da Vinci S Surgical Systems to our recently introduced da Vinci Si Surgical Systems. The Company had deferred a total of $20.1 million of revenue in the first quarter of 2009 and expects to recognize the remaining $6.3 million in the second half of 2009. The growth in instruments and accessories revenue was primarily driven by growth in da Vinci surgical procedures of approximately 52%, partially offset by lower instruments and accessories revenue per procedure. “We are pleased by our continued strong procedure growth and the positive market response to our new da Vinci Si system.”

SanDisk beats by $0.52, beats on revs

Reports Q2 (Jun) earnings of $0.36 per share, excluding non-recurring items, $0.52 better than the First Call consensus of ($0.16); revenues fell 10.4% year/year to $731 mln vs the $709.7 mln consensus. “We are very pleased with our return to profitability in the second quarter, driven by increased pricing, higher royalty revenue, and strong execution. Our decisive and timely restructuring actions are delivering the intended results… In the second quarter we renewed our patent cross license agreement with Samsung Electronics, providing market certainty. We remain cautiously optimistic about the second half of 2009.”