TwinTrader Weekly
TwinTrader.com issues TradeWeekly Notes on CELI, CRA, INTC, PSMT, YHOO, FPBN, VMW
Today’s notes include: CelebDirect Inc. (Pink Sheets: CELI), Celera Corporation (Nasdaq: CRA), Intel Corp. (Nasdaq: INTC), PriceSmart Inc. (Nasdaq: PSMT), Yahoo! Inc. (Nasdaq: YHOO), 1st Pacific Bancorp (Nasdaq: FPBN) and VMware Inc. (Nasdaq: VMW).
CelebDirect Inc. (Pink Sheets: CELI) - CelebDirect Introduces One-year Direct Marketing Strategy for the MuscleFlex™
CelebDirect Inc. shares remain at 15 cents per share. The company recently rolled out its first stage marketing strategy for the MuscleFlex™, targeting martial arts enthusiasts with full and half page ads in a number of widely circulated martial arts magazines and online Web sites.
The one-year campaign focuses on increasing awareness and sales through the company’s Direct Response strategy, which then positions the company to expand its exposure of the MuscleFlex™ to the television audience through one and two minute short form and 30-minute infomercials.
The magazines and Web sites targeted by the company include:
Mixed Martial Arts Magazines
* Black Belt Magazine
* Fight! Magazine
* MMA Authority
* Ultimate Grappler
* Inside Kung Fu
* Tapout Magazine
* MMA Worldwide
Mixed Martial Arts Web sites
* www.MMAWeekly.com
* www.MMANews.com
* www.BlackBeltMag.com
* www.Sherdog.com
The MuscleFlex™ demonstration can be found on its Web site, www.muscleflex.tv, YouTube and MySpace.
YouTube at: http://www.youtube.com/user/MuscleFlx
MySpace at: http://www.myspace.com/themuscleflex
“The print and online advertising are the beginning phases before we rollout our comprehensive North American wide television campaigns,” commented Danny Alex, CEO of CelebDirect. “We are expecting the Muscle Flex 30-minute infomercial to be one of the most successful infomercials of its kind.”
The MuscleFlex™ workout equipment is ideally suited to martial arts practitioners or anyone desiring improved body flexibility, strength and overall higher fitness level. The MuscleFlex™ “one-of-a-kind gliding” motion was developed with multiple patents.
“The Muscle Flex is an absolutely amazing fitness machine!!” Alex. “It’s the only machine of its kind that offers strength, flexibility and cardio training in one in-home machine.”
CelebDirect’s Direct Marketing strategy attempts to capitalize on the “fitness craze” anticipated as the American population ages. The popular demand in the at-home fitness market is achieving long and lean muscles by utilizing low-impact equipment that combines toning and stretching against resistance.
Celera Corp. (Nasdaq: CRA) – CRA Begins Trading on the NASDAQ
Celera Corp. shares slightly climbed in Wednesday’s mid-day trading, moving up nearly 1% to $12. Celera develops and commercializes diagnostic tests that identify disease risk and help physicians and patients manage disease development. The company’s Products business develops and manufactures molecular diagnostic products that are used to detect, characterize, monitor and select treatment for disease, while the Services business, Berkeley HeartLab Inc., offers many diagnostic tests to identify and characterize risk for cardiovascular disease and help physicians recommend treatment.
The NASDAQ OMX Group Inc. (Nasdaq: NDAQ) recently announced Celera has fulfilled requirements to trade on The NASDAQ stock market. Celera was previously a tracking stock of Applera Corp. (NYSE:CRA) traded on the NYSE. It will begin trading on NASDAQ today using the same symbol, CRA.
“Celera is a true innovator in the healthcare space and we are very pleased to welcome them to the NASDAQ OMX family,” Magnus Bocker, president of NASDAQ OMX stated. “NASDAQ is home to the biotech industry, and Celera as an industry leader will join the ranks of companies who have redefined how we look at healthcare.”
Celera is a healthcare business delivering personalized disease management through a combination of products and services incorporating proprietary discoveries. Berkeley HeartLab, a subsidiary of Celera, offers services to predict cardiovascular disease risk and optimize patient management. Celera also commercializes a wide range of molecular diagnostic products through its strategic alliance with Abbott and has licensed other relevant diagnostic technologies developed to provide personalized disease management in cancer and liver diseases. Information about Celera, including reports and other information filed by the company with the Securities and Exchange Commission, is available at http://www.celera.com.
In yesterday’s daily chart, CRA extended its bounce off the July 1 bottom of $11. The RSI is at a neutral and extending upward reading of 42.73. The 50-day moving average looks to be leveling off its downward trajectory. The 50-day moving average has been below its 200-day moving average since April 21. The MACD short-term average is very close to crossing the long-term average, which indicates follow through to the latest five-day rally in the stock.
Intel Corp. (Nasdaq: INTC) - Intel teams up with DreamWorks in creating 3-D films
Intel Corp. shares slipped nearly 2% to $20.58 Wednesday near noon. Intel and DreamWorks Animation SKG Inc. announced Tuesday they have formed a strategic alliance to meet the increased demands of creating 3-D animated feature films. DreamWorks has previously committed to producing all of its feature films in stereoscopic 3-D beginning next year.
Under the alliance, which begins with “Monsters vs. Aliens,” slated for a domestic release on March 27, 2009, Intel will provide DreamWorks with the latest high-performance processing technologies, including future chips with multiple processing cores. Intel’s software engineers would help to optimize DreamWorks’ applications for these advanced processors.
With the help of Intel’s technical assistance, DreamWorks would enable its artists to work with new, state-of-the-art 3-D authoring tools to render higher quality images more quickly and to modify them with greater ease.
Intel said the strategic alliance would take advantage of Intel’s visual computing products and tools and DreamWorks’ expertise in content creation to advance the in-theater entertainment experience.
In conjunction with the strategic alliance, Intel said it would also work to develop and promote next-generation 3-D viewing experiences and technology on a range of other platforms, including home theater, personal computers, video games, online environments and mobile devices.
Intel engages in making, marketing, and selling integrated circuits for computing and communications industries worldwide. It offers microprocessor products, including multi-core processors, quad-core microprocessors, 32-bit architecture microprocessors, and 64-bit architecture microprocessors used in desktop computers, enterprise computer servers, and workstations, as well as in embedded designs, such as industrial equipment, point-of-sale systems, panel PCs, automotive information/entertainment systems and medical equipment.
The daily chart for INTC shows a strong support level above $19. The stock had rallied sharply off its March lows to as high as $25 achieved in mid May. But since May, the stock has followed the overall major indexes to a level very close to its March lows. The RSI has turned up but still has not broken the 50 level for more than a month. MACD has been steadily declining from its May peak. The MACD histogram has been steadily under water as the sell off has become long in the tooth. The investors of Intel and other large caps have been waiting for the bounce from these technically low readings. Follow through from Tuesday’s rally may indicate an intermediate bottom for the large caps.
PriceSmart Inc. (Nasdaq: PSMT) – PriceSmart Q3 Profit Doubles; June Sales up More Than 25%
PriceSmart Inc. shares fell from yesterday’s 27% spike, sliding nearly 3% to $22.71 mid-day Wednesday. PriceSmart Tuesday reported an increase in third-quarter profit that more than doubled compared to the prior-year quarter on higher operating income and revenues. Sales for June 2008 rose 25.4% from the year-ago quarter.
Net income for the San Diego, California-based PriceSmart increased to $10.60 million or 36 cents per share from $5.23 million or 18 cents per share from the same quarter a year ago.
Income from continuing operations also doubled to $10.58 million from $5.21 million in the comparable quarter a year ago.
Total revenues were up 26.5% to $283.67 million from $224.31 million in the year-earlier quarter. Net warehouse club sales increased 26.6% to $277.9 million and operating income rose 62% to $14.6 million from the year-ago quarter.
June net sales increased 25.4% from the prior-year month, and for the four weeks ended June 30, comparable warehouse sales increased 20% from the same period a year ago.
For the nine-month period, net income rose 69% and revenues increased 25.7% from the same period a year ago. Operating income for the period rose 37.4% from prior-year period.
PriceSmart, through its subsidiaries, engages in the ownership and operation of membership shopping warehouse clubs under the trade name “PriceSmart” in Central America and the Caribbean. The company’s warehouse clubs sell perishable foods and basic consumer goods to individuals and businesses. The warehouse clubs also offers various ancillary services that include food services, bakery, tire centers and photo centers.
The daily chart of PSMT shows weakness beginning in mid May as the stock broke through both the 50-day and 200-day moving averages. Since the breakout to the downside, the stock had lost $10 per share, or 37% of its value. The stock has moved up violently to trade above its intermediate support at $22 to $23.41. The RSI stands at 54.00 and the MACD short-term oscillator is about to cross the long-term, indicating the stock may have further room on the upside before overbought readings are achieved.
Yahoo! Inc. (Nasdaq: YHOO) - Microsoft may Negotiate with Yahoo! if Icahn Slate Wins
Shares of Yahoo Inc. slightly climbed Wednesday, moving to $24.65 near noon. Software giant Microsoft Corp. said Monday it would be interested in discussing about a major deal with Internet giant Yahoo! to buy only its search business or the whole company and only if a new board is elected at Yahoo’s annual shareholder meeting next month. On the news, Yahoo! shares jumped more than 12% in intra-day trading.
Microsoft confirmed its view in a press release shortly after billionaire investor Carl Icahn released a letter to Yahoo! shareholders in which he stated that Microsoft CEO Steve Ballmer made it abundantly clear in recent discussions he cannot negotiate any deal with the current Yahoo! board.
Meanwhile, Yahoo! said it continues to stand ready to enter into takeover talks with Microsoft but it feels very strongly that a deal reached between Icahn-nominated directors and Microsoft would not lead to an outcome that would be in the best interests of Yahoo! shareholders.
Yahoo! noted in its letter that Ballmer and Icahn have teamed up in an apparent effort to force Yahoo! into selling to Microsoft its search business at a price to be determined in a future “negotiation” between Icahn’s directors and Microsoft’s management.
Whatever be the case, today’s statement by Microsoft may give a major boost to the proxy battle being waged by Icahn, who is pushing an alternative slate of directors for election at Yahoo!’s annual shareholder meeting on August 1.
YHOO’s daily chart shows wild price swings as the stock has been news driven about its talks with Microsoft and the entry of Carl Icahn. Since hitting a low in February of $19, the stock has been providing investors a rollercoaster ride up above $30 to back down to below $20. The RSI has catapulted straight up from its oversold readings in June. The RSI now stands at a neutral of 57.52. The MACD short-term oscillator has crossed the long-term decisively. But the stock movements as so erratic, Yahoo remains as a speculative play driven by unexpected and dramatic news.
1st Pacific Bancorp (Nasdaq: FPBN) - CEO Vincent Siciliano Resigns; Names Ronald Carlson Acting CEO
1st Pacific Bancorp shares rose nearly 2% to $5.61 in Wednesday’s mid-day trading. 1st Pacific Bancorp Thursday announced the appointment of Ronald Carlson as chairman of the board as well as acting president and CEO of the bank and the holding company. This move follows the resignation of the company’s president and CEO Vincent Siciliano.
The company also said James Knight resigned as chairman of the board to more fully concentrate on his medical practice. However, Knight would remain on the board as well as serve on key board committees.
The company has been plagued by poor asset performance and declining earnings. Fund managers have been dumping shares of the company as the outlook remains grim for the hobbled bank.
1st Pacific Bancorp is a San Diego-based, locally owned and operated financial institution. The bank offers a full complement of business, personal and online banking products and services. Regional offices are located on Genesee Avenue in the University Towne Center area, in the Tri-Cities area of Oceanside on College Boulevard, in Mission Valley on Rio San Diego Drive, in Inland North County on Evening Creek Drive North, on East Main Street in El Cajon, on Lomas Santa Fe Drive in Solana Beach and on Ivanhoe Avenue in Downtown La Jolla.
FBPN’s daily stock chart shows support at the $7.50 level present since late March was shattered yesterday. The new bottom for the stock is unclear. Daily RSI moved to an oversold reading of 19.30; and the MACD histogram achieved its widest divergence this year. Oversold readings can linger for quite some time and does not constitute a buying opportunity necessarily. Lower MACD readings were achieved in early April, indicating that this stock may have further to go on the downside.
VMware Inc. (Nasdaq: VMW) - VMware Slumps On CEO Departure; Microsoft Vet Maritz Tapped
Shares of VMware Inc. slightly climbed Wednesday, moving to $40.38 mid-day. VMware Inc president and CEO Diane Greene has resigned, effective immediately, news that, coupled with a cautious outlook on 2008 revenue, sent shares of the virtualization software maker tumbling in recent trading.
The stock was recently down 24.3% to $40.26 a share. Shares have fallen by two-thirds the past eight months. The stock went public at $29 and rocketed in its first two months of trading to as high as $125 a share.
Microsoft Corp. (MSFT) veteran Paul Maritz, who retired from the software giant in 2000 after 14 years there - including a stint as the longtime No. 3 executive behind Bill Gates and Steve Ballmer - will succeed Greene.
The company is facing increased competition from the likes of Microsoft and Oracle Corp. (ORCL). In June, Microsoft launched Hyper-V, a virtualization technology, to significantly ramp up competition with VMware.
As such, VMware said 2008 revenue growth “will be modestly below” its prior target of 50%. The mean estimate of analysts surveyed by Thomson Financial was for 51% growth to $2 billion.
VMware is the global leader in virtualization solutions from the desktop to the data center. VMware mission is to reduce capital and operating expenses, ensure business continuity, strengthen security and go green.
The daily chart of VMW shows the stock trading at just below its March bottom $42 on huge volume. The 50-day moving average is well below its 200-day moving average, with the 50-day MA headed downward. The RSI has entered an oversold condition at 21.98. MACD has been headed down since the end of the April rally that brought the stock to as high as $72.50. Further declines and consolidation is expected for the stock before any thought of purchasing the shares would be safe.
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