August 11, 2006

American Science Rises On Terror Threat

posted by MR WAVETHEORY at 8/11/2006 02:06:00 AM
American Science & Engineering (ASEI) gained over 9 points on the British terror threat. The company had recently reported earnings and took a dive. AS&E X-ray inspection systems are used by governments and corporations around the world to combat terrorism, drug and weapons smuggling, illegal immigration, and trade fraud. However, it gained it all back on news about the foiled hijacking. How things can turn over night!

Mr Wave Theory

August 09, 2006

JupiterMedia Misses Big

posted by MR WAVETHEORY at 8/09/2006 08:06:00 PM
JupiterMedia (JUPM) missed big time, delivering earnings of 7 cents on $35 million in revenues. Consensus estimates were 12 cents on $37.3 million. Shares dropped 30% closing at $6.61 (-2.77). Add that to the list of Internet blowups. this has indeed been a dismal quarter for Internet content. CEO Alan Meckler blamed it on the Jupiterimages acquisition strategy which has yet to deliver results:

"We have been emphasizing the development of our Jupiterimages division and have made significant investments in our image production, technology platforms and direct sales teams over the past several quarters. The full benefits of these investments, as well as the benefits from integrating our many recent image acquisitions, will be more apparent in future quarters," stated Jupitermedia's Chairman and CEO Alan M. Meckler. "Jupitermedia continues to grow as a powerful creator and distributor of a wide range of commercial images and digital content. In addition to the expansion of our image offerings, through several acquisitions we increased our wholly-owned royalty-free music offerings," added Meckler.

Mr Wave Theory

Updated: Eric Savitz has a great story about Alan Meckler buying JupiterMedia stock - and getting hit by the short swing rule.

Your Yogurt May Contain Crushed Bugs

posted by MR WAVETHEORY at 8/09/2006 05:10:00 AM
According to a recent study by food activists, food manufacturers use crushed bugs to color their foods. Youplait Yogurt uses crushed bugs to color their yogurt red. Tropicana uses it to color their grapefruit juice. Even Hershey's uses it for red coloring.

How come this is not widely known? Simply because food manufacturers do not have to disclose the specifics of what they mean by "artificial color" which is frequently used in the Ingredients section of most foods as a euphemism for insect larvae and bugs.

Want to learn more? Researchers say:

"Few people know that the food coloring listed as cochineal extract comes from female beetles. Food activists want to spread the word.

When you dig into a strawberry Yoplait yogurt, take a moment to contemplate where the beautiful pink color comes from. Strawberries? Think again. It comes from crushed bugs. Specifically, from the female cochineal beetles and their eggs. And it's not just yogurt. The bugs are also used to give red coloring to Hershey Good & Plenty candies, Tropicana grapefruit juice, and other common foods."

Next time you visit the grocery store, shopper beware!

Mr Wave Theory

August 08, 2006

Cisco Systems Gets Its Groove Back

posted by MR WAVETHEORY at 8/08/2006 08:49:00 PM
Cisco (CSCO) reported earnings of 30 cents and revenues of $7.98 billion beaing on the top and the bottom line. Analysts had expected earnings of 28 cents on revenues of $7.92 billion. The earnings exceeded the top end of analysts estimates which was 29 cents per share and revenues came in at the top end of the range of estimates which was $7.98 billion. Shares are up $18.93 (+1.63) which means that it should give the Nasdaq a boost at the open.

Importantly, Cisco CFO Dennis Powell raised guidance for the quarter. Powell expects sales to increase between 15-20% vs 15%.

Mr Wave Theory

Is Greenfield Online Inc Back in the Green?

posted by MR WAVETHEORY at 8/08/2006 08:17:00 PM
Greenfield Online (SRVY) ramped up today following a better than expected Q2 report. The company reported earnings of $.09 vs $.02. The stock ramped up to $8.08 (+1.17).

Is Greenfield hitting it back on the green? According to CEO Albert Angrisani who in a prior life was an executive at Harris Interactive: "However," Angrisani cautioned, "in the second quarter, the European Survey Solutions business experienced pricing pressure from a more competitive marketplace which has resulted in slower than anticipated revenue growth and weak July bookings. I believe it will take several quarters to reverse this situation and return to acceptable growth rates."

Competition and pricing pressure are two things that no investor likes to hear especially when used in the same sentence. It looks like the Greenfield story may take some time to fix. After all, two key executives from its European Ciao AG business recently resigned. If things were so green, why would they leave? After all, who wants to miss some mean green?

Mr Wave Theory

August 07, 2006

Hansen Natural Corp Gets Canned

posted by MR WAVETHEORY at 8/07/2006 09:55:00 AM
Hansen (HANS), the maker of Monster Energy drink, got canned today after reporting earnings of $.28 in line with consensus. Some estimates had been as high as .34. Revenues reached $156 million falling short of the average expectations of $157 million. One analyst had pegged it at $169 million. Hansen is trading at $32.72 (-7.53). The company did not provide a cash flow report which may be further spooking investors.

Net sales increased 82.6% while net income increases 85%. CEO Rodney Sacks attributed the growth in earnings and revenues to the outperformance of the Monster Energy Drink:

"Rodney C. Sacks, chairman and chief executive officer, said the exceptional performance reflected record sales of Monster Energy® brand energy drinks, which more than doubled over the comparable period last year. "While the energy category continues to show strong growth over the prior year, the growth of Monster continues to outpace all of its major competitors. Monster gained both increased distribution and market share during the quarter," Sacks said. He also noted that the Company had achieved record sales during the second quarter without the benefit of the anticipated distribution arrangements with selected Anheuser-Busch wholesalers which did not commence during the quarter."

Hansen's has been a favorite of the momentum crowd and has rewarded early buyers very well with hefy profits. However, while this quarter's results would have been spectacular had the stock been priced lower, Hansens currently trades at a trailing P/E of 42x. Analysts expect the company to earn $1.59 in 2007 on $882 million in sales. Given the fact that the stock earned only .28 this quarter, it is very likely that 2007 estimates will be trimmed.

Mr Wave Theory