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In after-hours trading, shares fell 36 cents, or 2.8 percent, to $12.67, after shares added 36 cents, or 2.8 percent, to close the regular session at ...
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RADVISION Ltd. (NASDAQ: RVSN) is already trading higher this morning. The company’s earnings yesterday morning were $0.13 non-GAAP EPS and $20.4 million in revenues versus Thomson Reuters figures. And the guidance for Q4 was listed as $0.17 non-GAAP EPS and $21.5 million in revenues. That guidance may be mixed, but it does not signal an imminent drop off. We have also seen upgrades from Morgan Keegan and from Oscar Gruss. But this morning’s boost comes on the heels of reports from overseas that Cisco Systems Inc. (NASDAQ: CSCO) may walk away from the $3.1 billion acquisition of Tandberg.
If you will recall, Tel Aviv, Israel-based RADVISION shares fell from over $9.00 down to about $6.00 at the end of September when this Tandberg deal was announced by Cisco. Cisco is RADVision’s largest customer, and if Cisco is not going to buying a larger company like Tandberg it may either look elsewhere or it may just keep its pacts with RADVision. That may not offer key certainty by any stretch with “may” and with the hypothetical situations, but it leaves the upside for RADVision higher than it did. It is also after the company’s earnings and its guidance.
Where this gets interesting is in the NOV and DEC $7.50 CALLS for a de-leveraged trade. In December, we have seen only 10 contracts trade hands in the DEC-2009 $7.50 CALLS versus a prior open interest of 1,150 contracts. And in November, we have seen only 30 contracts trade in the NOV-2009 $7.50 CALLS versus a prior open interest of 68 contracts. The last price traded on the NOV CALLS was $0.25 and the last on the DEC CALLS was $0.15 and under the current market of $0.25 bid X $0.40 ask per contract.
Either way, with a 5.5% gain to $6.34 today traders are looking at the stock. Volume is already twice-normal at over 420,000 shares as of 10:46 AM EST. That is already above yesterday’s 358,000 shares traded and well above the 100,000 or so seen on many days. Some might also look at an ‘implied floor’ of about $5.60 seen from after the Cisco-Tandberg deal announcement right before earnings this week.
Reports do not constitute any definite outcomes. But that won’t keep traders from speculating either way.
JON C. OGG
OCTOBER 30, 2009
CIT Group Inc. (NYSE: CIT) Is getting “pantsed” this morning on the NYSE. Goldman Sachs Group (NYSE: GS) has trimmed the size of its loan. Rather than $3 billion, Goldman is loaning some $2.13 billion. This is two days after CIT raised $4.5 billion and as it continues on its restructuring efforts. At 8:56 AM EST we have shares trading down 7.3% at $0.88 on almost 1.4 million shares. Of course the volume is extremely high at 87 million shares on average per day, but this gets the stock within striking distance of yesterday’s $0.85 low and with the $0.82 low on OCT 13. We saw those same levels in early-August. JON OGG
Included is the after-hours moves and pertinent data with a snapshot as of 5:14 PM EST. Estimates are Thomson Reuters data where noted:
Conexant Systems, Inc. (NASDAQ: CNXT) closed at $2.44 and shares are trading at $2.88 up 18.03% on 67,400 shares since the closing bell. This one posted 0.11 EPS vs. $0.09 estimates; imaging and audio businesses grew 18% on a sequential basis and accounted for 58% of total revenues and is raising guidance.
Genworth Financial Inc. (NYSE: GNW) closed at $10.18 and shares are trading at $11.68 up 14.73% on 2,297,577 shares since the closing bell. This already had a monster up-day of 17% before the close, so anyone who bought yesterday cleaned house. The company posted $0.24 EPS vs a -$0.02 estimate. Revenues rose 10% to $2.39 billion, but under the $2.52B estimate. Book value per share grew 10% sequentially to $25.42 per share over the improvement in the markets.
Las Vegas Sands Corp. (NYSE: LVS) closed at $14.76 and is now trading up at $15.99 up 8.33% on 4,810,097 shares since the closing bell. That is on top of a 12% gain today and because the company beat earnings on cost cuts and announced that it has record pre-booked rooms and has more group rooms already booked for 2010 than it expects for all of 2009.
Novatel Wireless, Inc. (NASDAQ: NVTL) closed at $12.19 and shares are trading at $10.13 down by 16.90% on 661,773 shares since the closing bell. The company did beat earnings, but issues are there on guidance. Earnings were $0.20 EPS vs $0.10 EPS estimates; Revenues were up 12.1% to $94.3 million vs. $92.6 million expected. For Q4 the company sees $0.04 to $0.12 EPS and revenues of $85 to $95 million versus estimates of $0.10 EPS and $95.69 mln consensus.
Tessera Technologies, Inc. (NASDAQ: TSRA) closed at $26.86 and shares are trading at $22.55 down by 16.05% on 62,124 shares since the closing bell. Earnings were $0.24 EPS and revenues were up 4% at $66.1 million vs. $0.21 and $65.7 million estimates. But its Q4 revenue guidance is weak at a range of $60 to $62 million vs $69.9 million expected.
JON C. OGG
Human Genome Sciences, Inc. (NASDAQ: HGSI) has been soaring today. At 2:45 PM EST we saw this one already cross a full day’s trading volume at 120% normal stock trading volume and that options were picking up throughout the day. This follows the JPMorgan upgrade to Overweight from Neutral ahead of new additional clinical data next week. Our friend over at OptionsHawk.com just sent us more details on the options trading:
Human Genome (HGSI) is trading 84,000 calls and 21,000 puts on the day after an upgrade at JP Morgan before the key November 2nd Benlysta seocnd of two Phase 3 trial data for the treatment of Lupus, which would make it the leading contender in the market for a highly lucrative potential market. Smart money has been bullish the name in recent weeks with 10,000 contract November $25/$30 call spreads and various other strategies as the common consensus is a 70% chance of the drug having a positive outcome. Despite implied volatility being at 193%, many are still betting on volatility expecting a sharper than priced in reaction. Today’s action represents 4X the average call volume, although only 1/4th of the action is offer side buying, but ISE Sentiment indicates 3 calls are being opened for every 1 put. One of the larger trades today is slightly bullish but bearish on volatility as the trader used a butterfly call spread, buying 3,500 of the November $20 and $3 0 calls, and selling 7,000 of the $25 calls, expecting shares to trade around the $25 level and for Implied Volatility to be crushed. -OPTIONSHAWK.COM
-JON C. OGG
Transcept Pharmaceuticals, Inc. (NASDAQ: TSPT) is getting destroyed and is today’s largest percentage loser by far. The FDA did not approve the comjpany’s experimental sleep disorder drug called Intermezzo. The reason was over safety issues, but the FDA has requested additional data that might require more studies. At 9:00 AM EST we have shares trading down all the way at $6.16, down 46% from the $11.47 closing price. We also have seen some 181,843 shares trade hands, double the 88,000 average. The market cap was $150 million before the cut, so you can cut that almost in half today. The company had $73.6 million in cash and short-term investments on hand at the end of the June 30 quarter. -JON OGG
American Superconductor Corporation (NASDAQ: AMSC) is not that active yet in the early hours. Yet. The company posted increased revenues of 85% to $74.7 million and non-GAAP EPS to $0.19; it generated $35.8 million in cash from operations and it increased its order backlog to $587 million. The company also raised guidance. Shares closed at $28.84 yesterday, but shares are up 15% as a top pre-market winner at $33.19 on about 22,000 shares as of 8:57 AM EST. Average volume is about 1.03 million shares, but you can expect that to be hit early with this sort of jump. The 52-week trading range is $8.22 to $39.90, so it is obviously a volatile trading stock. JON OGG
PrivateBancorp Inc. (NASDAQ: PVTB) is another actively traded stock on the downside on what may be a day-two dumper. This fell from $11.98 on Monday to $9.65 yesterday on 10+ million shares. On Friday this was a $19.00 stock. This is over concerns on the pricing of its $175M capital raising plan, which actually looks to be the fourth such raise in the last 24 months. Rising credit woes have grown here as well. At 8:57 AM EST we have seen some 1.4 million shares trade hands and the stock is down almost 5% at $9.18. Anything under $9.09 would be a new 52-week low. Average volume is only 700,000 shares, and that number was closer to 550,000 before the recent surge in downward-trading selling volume. JON OGG