While government leaders and economists have been predicting a healthy economic recovery for months, its slow materialization is negatively affecting the bottom lines of companies from all sectors.
Poor Financial Results
DryShips Inc. (NASDAQ: DRYS) stock volume was lethargic at the close of the market Feb. 21, with 5,244,996 shares changing hands, less than half its three-month daily average of 13,946,910 shares.
The low volume could in part be attributed to the Greek transportation services company’s poor fourth-quarter and annual 2013 results reported Feb. 18.
Here’s the breakdown:
For the fourth quarter of 2013, the DryShips reported a net loss of $24.4 million, or $0.06 basic and diluted loss per share. For the year ended Dec. 31, 2013, the company reported a net loss of $223.1 million, or $0.58 basic and diluted loss per share.
According to the New York Times, the flash Markit/HSBC Purchasing Managers’ Index fell to 49.6 in January from December’s final reading of 50.5. Economists contend when this index drops below 50 it signals the beginning of an economic contraction.
This concern comes only a few weeks after the Athens, Greece diversified marine transportation company said that it would continue its previously-announced program to issue $200 million in common stock in an at-the-market offering with Evercore Group LLC as its sales agent.
Company Needs Strong Recovery
DryShip’s recent offering is expected to provide the estimated $150 million the company needs to operate through 2014. This influx of needed capital helps to erase the negative news of Dec. 5, when the company suspended its equity offering with share price of about $3.60. But, any shipping company’s recovery depends a lot on prevailing economic conditions.
On Feb. 21, the share price of DRYS closed at $3.51, down 2 cents from previous day‘s share price of $3.53.
Find out what could be the best investor’s move when it comes to DRYS by getting the complete report here, or by cutting and pasting the following link in your Web browser:
Meanwhile, in the communications sector, Sonus Networks Inc. (NASDAQ: SONS) share volume skyrocketed Feb. 21, 2014 with 4,493,791 shares changing hands, more than three time its monthly average volume of 1,414,662.
The uptick in volume for the Westford, Mass-based communications provider company comes on the heels of its release of the company’s full-year results for 2013
Losing less Money
If there can be a glimmer of hope in a financial report that shows an annual loss of about $22 million for 2013, it is that the latest loss is less than one-half 2012’s loss of about $50 million.
On Feb. 21, the share price of SONS closed at $3.76, up 2 cents from previous day‘s share price of $3.74.
Find out what could be the best investor’s move when it comes to SONS by getting the complete report here, or by cutting and pasting the following link in your Web browser:
Progenics Pharmaceuticals Announces Pricing of Public Offering of Common Stock
In the biotechnology sector, Progenics Pharmaceuticals Inc. (NASDAQ:PGNX) share volume soared with more than 4,594,501 shares changing hands, more than three times its three-month average volume of 1,351,882 shares.
The uptick in volume came the same day the Tarrytown, NY-based pharmaceutical company released the pricing of an underwritten public offering of 7,608,696 primary shares of its common stock at a public offering price of $4.60 per share.
The gross proceeds from the sale of the shares, before underwriting discounts and commissions and other offering expenses, are expected to be approximately $35 million.
The offering is expected to close on or about February 26, 2014, subject to customary closing conditions. Progenics also granted the underwriters a 30-day option to purchase 1,141,304 additional shares of common stock. All of the shares to be sold in the offering are to be sold by Progenics. Progenics intends to use the net proceeds from the offering for research and development and general corporate purposes.
Of the three companies covering the developer of cancer-fighting drugs, one recommends a “strong buy,” one recommends a “buy” and one recommends a “hold.”
Jefferies LLC is acting as sole book-running manager for the offering. Needham & Company, LLC and Brean Capital, LLC are acting as co-managers for the offering.
On Feb. 21, the share price of PGNX closed at $4.61, down 29 cents from previous day‘s share price of $4.90.
Find out what could be the best investor’s move when it comes to PGNX by getting the complete report here, or by cutting and pasting the following link in your Web browser:
IPhone Deal Helps To Sustain Share Price
At the same time, NII Holdings Inc.(NASDAQ: NHID), a mobile-service provider with a Latin-American customer base, continues to see a robust volume and share price after announcing Jan. 17 that it had cut a deal to distribute the iPhone 5c through Nextel in Brazil. Distribution of the iPhone is to kick off Jan. 31.
On Jan. 17, the Reston, Va. company’s stock volume reached new heights, with 27.8 million shares changing hands. NHID’s share price closed at $2.98, 58 cents over its previous closing share price of $2.40.
On Feb. 21, the share price of DRYS closed at $2.94, down 16 cents from previous day‘s share price of $3.10.
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