Trends, Charts and Exclusive Opinion
OTIV has a 1-Year floor of $1 with some support at $1.50. The spike into its current range is based on a new Top-Line contract for $30 million. OTIV is a near-term (3 Mo) �Watch Closely� stock for me. If OTIV can bring in another deal in the next three months; I think the bottom will reset near the $1.50 range and the stock could pick up its approximate 72 cent spread between the current price and its 52-week high.� ����
OTIV, a maker and seller of microprocessor-based smart card solutions for homeland security & e-ID systems, and petroleum payments signed relating to a national e-ID program with total consideration that exceeds $30 million. 2010 revenues are expected to be over $20 million. An advance payment has been received to support the initial stages of the project which have already commenced.
The co ntract is based upon an OTIV pilot program that provides for the supply of new biometric-based electronic ID cards and other official documents (relating to birth, contact info and the like). The deal is an end-to-end turnkey solution based on OTIV�s Magna platform. The day after the contract announcement, research house Feltl & Company upgraded OTIV from �Hold� to an outright �Buy�. In addition to its �homeland security� applications, the OTIV MediSmart product to manage medical information has the potential for a �break-out� product considering the healthcare bill shift to virtual information.
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Gaining 6.47% this morning is SonoSite Inc., (SONO) http://www.sonosite.com/ currently trading in the $27.76 range. SONO has a 3-Month average daily trading volume of 129, 972 shares. SONO has a 52-week high of $29.16 set on 10-19-09. SONO has trailing twelve month revenues of $227 million and something I really like about this stock; trailing twelve month diluted EPS of $0.93 during the �great recession�. What gives me some minor concern about SONO is that while it is widely held by institutions, the short-sellers seem to have gotten a hold of it; with a reported public float of 16.91 million shares, the SONO short percentage of the float as of 12-15-09 is over 10%. SONO has a 3-Month floor of $23 with some dips at $22, but with strong support at $23 and good support at $24.
I believe the 3-Month period dip from $28 down to $22 was caused by the shorters downward pressure, but SONO has surged back to the $28 range and that resiliency is a very encouraging investment barometer. SONO is a near-term �Watch Closely� stock for me. If the Company can keep the trend moving up, regardless of the incremental change, and it nears its high, that will get some of the shorters out and give it room to advance to a new high.
SONO announced today that its Board has okayed a repurchase up to $150 million of the Company�s common stock or outstanding convertible notes for cash. In connection with the repurchase authorization, the company will purchase up to $100 million of the Company's common stock through a modified �Dutch Auction� tender offer. SonoSite intends to commence the tender offer during the week of January 18, 2010. Under the terms of the proposed tender offer, SonoSite shareholders will have the opportunity to tender some or all of their shares at a price within the range of $26.10 to $30.00 p! er share .
Another sign of strength for SONO is its recent, preliminary look at its Q4 results. SONO (which makes hand-carried ultrasound devices) management said its revenue edged down in Q4 due to a decrease in orders from military customers. Management said that based on preliminary results, its Q4 revenue totaled about $69 million, down from $70.2 million a year earlier. Very, very good considering its Q3 decreases. Management also said SONO gained $4 million in revenue from CardioDynamics, a diagnostic device maker it acquired in August, but other sales fell 7% percent, mostly due to declining military orders and that exchange rates were favorable in the fourth quarter and boosted its revenue by 4%. SONO markets four of its hand-carried ultrasound systems to military customers.
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I�m not quite sure what can propel the stock back towards it high after all the celebrating has calmed down. It is a year long celebration, and rightly so, but the initial media coverage has just been... massive. The mid-October drop in price was a reaction to the CEO selling 7.85 million�of his personally owned�shares to a well-known investment fund at a price of $6.75 per share. Whenever management sells (for other than medical reasons) it never bodes well with shareholders and shakes their confidence.� �
On two positive notes, in early 2010, a new "Elvis Yourself" Facebook application will launch via Elvis� official Facebook fan page at www.facebook.com/elvis. The new�application will allow Elvis fans and Facebook users to combine their photos with fun Elvis-themed imagery to create�a unique�profile picture for their Facebook page and on 12-15-09, Cirque du Soleil, in partnership with Elvis Presley Enterprises, a CKXE company, unveiled its latest resident show Viva ELVIS, at ARIA Resort & Casino, at CityCenter in Las Vegas.
Three Stocks to Watch Closely as they Trend Up
OTIV: New Biometric-based Electronic ID Cards Boost Top-Line
SONO: Board authorizes up to $150 million Repurchase of Stock or Notes
CKXE: Elvis Presley�s 75th Birthday Celebration Pushes Stock Higher
Gaining 7.73% this morning is On Track Innovations Limited (OTIV) http://www.oti.co.il/ currently trading in the $2.32 range. OTIV easily surpassed its 3-Month average daily trading volume of 221,402 shares early in todays session. OTIV has a 52-week high of $3.04. OTIV is widely held by insiders and institutions with trailing twelve month revenues of $35 million+.OTIV has a 1-Year floor of $1 with some support at $1.50. The spike into its current range is based on a new Top-Line contract for $30 million. OTIV is a near-term (3 Mo) �Watch Closely� stock for me. If OTIV can bring in another deal in the next three months; I think the bottom will reset near the $1.50 range and the stock could pick up its approximate 72 cent spread between the current price and its 52-week high.� ����
OTIV, a maker and seller of microprocessor-based smart card solutions for homeland security & e-ID systems, and petroleum payments signed relating to a national e-ID program with total consideration that exceeds $30 million. 2010 revenues are expected to be over $20 million. An advance payment has been received to support the initial stages of the project which have already commenced.
The co ntract is based upon an OTIV pilot program that provides for the supply of new biometric-based electronic ID cards and other official documents (relating to birth, contact info and the like). The deal is an end-to-end turnkey solution based on OTIV�s Magna platform. The day after the contract announcement, research house Feltl & Company upgraded OTIV from �Hold� to an outright �Buy�. In addition to its �homeland security� applications, the OTIV MediSmart product to manage medical information has the potential for a �break-out� product considering the healthcare bill shift to virtual information.
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I believe the 3-Month period dip from $28 down to $22 was caused by the shorters downward pressure, but SONO has surged back to the $28 range and that resiliency is a very encouraging investment barometer. SONO is a near-term �Watch Closely� stock for me. If the Company can keep the trend moving up, regardless of the incremental change, and it nears its high, that will get some of the shorters out and give it room to advance to a new high.
SONO announced today that its Board has okayed a repurchase up to $150 million of the Company�s common stock or outstanding convertible notes for cash. In connection with the repurchase authorization, the company will purchase up to $100 million of the Company's common stock through a modified �Dutch Auction� tender offer. SonoSite intends to commence the tender offer during the week of January 18, 2010. Under the terms of the proposed tender offer, SonoSite shareholders will have the opportunity to tender some or all of their shares at a price within the range of $26.10 to $30.00 p! er share .
Another sign of strength for SONO is its recent, preliminary look at its Q4 results. SONO (which makes hand-carried ultrasound devices) management said its revenue edged down in Q4 due to a decrease in orders from military customers. Management said that based on preliminary results, its Q4 revenue totaled about $69 million, down from $70.2 million a year earlier. Very, very good considering its Q3 decreases. Management also said SONO gained $4 million in revenue from CardioDynamics, a diagnostic device maker it acquired in August, but other sales fell 7% percent, mostly due to declining military orders and that exchange rates were favorable in the fourth quarter and boosted its revenue by 4%. SONO markets four of its hand-carried ultrasound systems to military customers.
SONO 3-Month����������������������������������������� �CKXE 3-Month
Gaining 7.21 % this morning is CKX Inc. (CKXE) http://www.ckx.com/ currently trading in the $5.58 range. CKXE has a 3-Month average daily trading volume of 157,170 shares. CKXE has a 52-week high of $8.24 set on 06-05-09. CKXE is widely held by insiders and institutions with trailing twelve month revenues of $285! million and a positive, corresponding diluted EPS of $0.13. CKXE has a 3-Month floor of $5.50 with a few dips into the $5.25 range, but good support at $6 and some support at $6.25. CKXE is a near-term �Watch Closely� stock for me. The stock is currently riding high with the 75th Birthday of Elvis (a licensee) on television everywhere.I�m not quite sure what can propel the stock back towards it high after all the celebrating has calmed down. It is a year long celebration, and rightly so, but the initial media coverage has just been... massive. The mid-October drop in price was a reaction to the CEO selling 7.85 million�of his personally owned�shares to a well-known investment fund at a price of $6.75 per share. Whenever management sells (for other than medical reasons) it never bodes well with shareholders and shakes their confidence.� �
On two positive notes, in early 2010, a new "Elvis Yourself" Facebook application will launch via Elvis� official Facebook fan page at www.facebook.com/elvis. The new�application will allow Elvis fans and Facebook users to combine their photos with fun Elvis-themed imagery to create�a unique�profile picture for their Facebook page and on 12-15-09, Cirque du Soleil, in partnership with Elvis Presley Enterprises, a CKXE company, unveiled its latest resident show Viva ELVIS, at ARIA Resort & Casino, at CityCenter in Las Vegas.
