The word on the Street is that BWNG is still relatively cheap compared to their peer group and the company should be moving through positive EBITDA numbers soon enough and through 2007. This is why CIBC World Markets upgraded the stock this week to a BUY with a near term target of $18.00. Merriman Curhan Ford has a Buy with a target of $19.00.
Besides an improving EBITDA, the company will benefit from underlying macro trends that all fiber stocks should benefiting from lately, but overall, BWNG is a better pure play vs. RBOCs for example. Lets not forget the Hutchinson deal (symbol HTX) owned by the richest family in Hong Kong or the Forbes listed $2 Billionaire John de Mol that has been buying shares according to EDGAR filings (under the name of his firm Talpa) totaling over 3.8 million shares.
The Hutchinson deal, improving EBITDA, and Talpa investments are positive factors in owning this stock.
Other near term catalysts are: Pending news of the new CEO, $100,000,000 sitting in the bank for future acquisitions to expand their reach and further improve on their EBITDA, and high speculation about BWNG being a takeover candidate itself on the horizon.
Saturday, April 29, 2006
Friday, April 28, 2006
Research Report On Broadwing - BWNG
I spoke to the analyst that follows Broadwing and received their research report that was approved for distribution. For those who are interested in receiving it please email me at the email address listed below.
Their target price is $19.00 according to the report.
We feel that the stock will reach this level and move even higher due to:
New Management; More Solid Acquisitions; New Partnerships; Additional Wall Street Analyst Coverage; Increasing Institutional Ownership; Increasing Demand For Bandwidth; and Eventually Major Short Covering
Their target price is $19.00 according to the report.
We feel that the stock will reach this level and move even higher due to:
New Management; More Solid Acquisitions; New Partnerships; Additional Wall Street Analyst Coverage; Increasing Institutional Ownership; Increasing Demand For Bandwidth; and Eventually Major Short Covering
UBS Upgrades FreightCar America - RAIL To Buy From Neutral
Price target is raised to $78.00 and they are raising 2007 EPS
estimate to $7.10, from $6.00.
estimate to $7.10, from $6.00.
Thursday, April 27, 2006
FreightCar America - RAIL 1Q Net Jumps On 77% Sales Boost
FreightCar America (RAIL) says it earned a pro forma $1.67 per share in Q1, $0.29 better than Reuters Estimates consensus for $1.38. Sales were $292.8 million, above the Reuters Estimates consensus for $274.3 million.
Wednesday, April 26, 2006
VistaPrint 3rd Qtr Earnings: Conference Call Notes
This was an exciting qtr for VPRT;
They are still the biggest and fastest growing Internet printing company;
Rev up 66% over same qtr for prior year;
Rev outside US increased 30%;
Gross Margin increased 70%;
EPS 16c on a fully diluted basis;
Earnings exceeded expectations;
added 528,000 new customers;
Now 6.6 million customers;
They have the ability to acquire and keep customers;
Only their 3rd Qtr as a publicly traded company;
24 consecutive up qtrs in a row;
VPRT is not just a printing company;
They are revolutionizing the print and graphics industry....limitless designs and content;
High volume process averaging over 15,000 orders per day @ $30.00 avg order;
Gross margins (GM) at 60%- 65% are 2x - 3x times higher than their competitors;
Continuing to add new service products and selling through their 16 web sites;
Capacity utilization at 70% with new plant on line in Canada;
3.5 million viewers every month;
Their repeat rate continues to grow and conversion rate is increasing dramaticly;
New additional products coming out quarterly: stamps; not pads etc...;
Investing in new products, innovation, technology, staffing, software;
Expects decreasing operating expenses in the 4th qtr;
Will continue to invest to address a $19 Billion market opportunity world-wide;
Will be re-investing for years to come;
Expecting 4th qtr @ $43mill - $45 mill ;
Expecting GM to be 67% - 68%;
4th Qtr EPS should range from 13c - 14c per share;
Annual revenue growth of between 55% - 66% and see the trend to continue;
Operating income margins excluding charges associated with employee compensation to be approx 13% - 14%;
Their committed investment will further distance VistaPrint from their competitors.
They are still the biggest and fastest growing Internet printing company;
Rev up 66% over same qtr for prior year;
Rev outside US increased 30%;
Gross Margin increased 70%;
EPS 16c on a fully diluted basis;
Earnings exceeded expectations;
added 528,000 new customers;
Now 6.6 million customers;
They have the ability to acquire and keep customers;
Only their 3rd Qtr as a publicly traded company;
24 consecutive up qtrs in a row;
VPRT is not just a printing company;
They are revolutionizing the print and graphics industry....limitless designs and content;
High volume process averaging over 15,000 orders per day @ $30.00 avg order;
Gross margins (GM) at 60%- 65% are 2x - 3x times higher than their competitors;
Continuing to add new service products and selling through their 16 web sites;
Capacity utilization at 70% with new plant on line in Canada;
3.5 million viewers every month;
Their repeat rate continues to grow and conversion rate is increasing dramaticly;
New additional products coming out quarterly: stamps; not pads etc...;
Investing in new products, innovation, technology, staffing, software;
Expects decreasing operating expenses in the 4th qtr;
Will continue to invest to address a $19 Billion market opportunity world-wide;
Will be re-investing for years to come;
Expecting 4th qtr @ $43mill - $45 mill ;
Expecting GM to be 67% - 68%;
4th Qtr EPS should range from 13c - 14c per share;
Annual revenue growth of between 55% - 66% and see the trend to continue;
Operating income margins excluding charges associated with employee compensation to be approx 13% - 14%;
Their committed investment will further distance VistaPrint from their competitors.
The Perfect Storm About To Hit With BWNG!
Get ready for the Perfect Storm with BWNG; analyst upgrades, earnings soon to be released, upcoming board meeting, institutional buying, and short covering. Next Stop $20.50.
Tuesday, April 25, 2006
Expecting RAIL to Follow CRS's Stock Pattern
Carpenter's earnings were released and the stock has popped as much as 20 points in the last few days. We would expect to see FreightCar America (RAIL) move up strongly too after their earnings is released on April 27. A 15% move up or $10 pop is likely. CRS Stock Chart
As you recall we called a similar play last week with Arch Coal - ACI and got the $10 pop that we were expecting! The stock actually shot up as much as 15 points!
ACI Stock Chart
As you recall we called a similar play last week with Arch Coal - ACI and got the $10 pop that we were expecting! The stock actually shot up as much as 15 points!
ACI Stock Chart
Monday, April 24, 2006
Broadwing Update
Some of you followed us on ACI:
ACI has made a move from $84 to $101 since last Thursday.
ACI Squeeze Alert
We are betting that BWNG will follow suit and make a significant move to the $20.00 level soon.
BWNG Squeeze Alert
ACI has made a move from $84 to $101 since last Thursday.
ACI Squeeze Alert
We are betting that BWNG will follow suit and make a significant move to the $20.00 level soon.
BWNG Squeeze Alert
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