Among the biggest winners in Wednesday's early trading are
Sirius XM Radio (Nasdaq:
SIRI
)
,
State Street (NYSE:
STT
)
and
JA Solar (Nasdaq:
JASO
)
.
|
Top Percentage Gainers -- Wednesday, July 7,
2010
|
|
Company Name (Ticker)
|
Intra-Day Price
|
Intra-Day
% Gain
|
52-Week High
|
52-Week Low
|
| State Street (NYSE:
STT
) |
$36.38 |
+9.1%
|
$55.87 |
$32.47 |
Sirius XM Radio
(Nasdaq:
SIRI
) |
$0.99 |
+5.7%
|
$1.25 |
$0.37 |
| Glimcher Realty Trust (NYSE:
GRT
) |
$5.40 |
+5.3%
|
$7.32 |
$2.21 |
|
*Table includes companies with minimum market
capitalizations of $200 million and three month trading
volumes of at least 100,000 shares. All percentage returns
are listed as of 12:30AM Eastern Standard Time . Click on
ticker symbols for up-to-the-minute price quotes and
percentage gain data.
|
Sirius continues its Phoenix-like rise
In the depths of the economic crisis,
Sirius XM (Nasdaq:
SIRI
)
looked headed for oblivion. The company's
balance sheet
was in tatters and demand for its satellite radio services was
slumping, thanks to moribund new car sales. Just 12 months ago,
Sirius announced that it had lost nearly 200,000 subscribers in the
most recent quarter. For such a high fixed-cost business, a
shrinking customer base is a real problem.
One year later, Sirius is now looking far healthier. Its balance
sheet is somewhat cleaner and no longer holds any near-term debt
bombs. More importantly, the customer base is growing once again.
On Wednesday morning, the company announced that it added nearly
600,000 net new subscribers, the highest quarterly figure in recent
years. That's pushing shares up +6% in Wednesday trading.
Action to Take -->
We'll have a much deeper look into the company later today.
------------------------------------
State Street hints at a Bright Outlook to come from
Financial Stocks
Individual investors have been proceeding cautiously in the stock
market ever since it bottomed out 15 months ago, but institutional
investors like mutual funds and
hedge
funds jumped back into the market with both feet. That's been great
news for
State Street (NYSE:
STT
)
, which caters to investing pros. The company announced Wednesday
morning that it generated very strong second quarter results,
helping to push shares up +10%. State Street's bullish report
sets a positive tone for other financial firms as we head into
earnings season
.
Action to Take -->
Shares had touched 52-week lows last week, so management likely
felt compelled to release supportive news now rather than wait for
the July 20th earnings release date.
The solid Q2 results could represent a real rebound. Analysts had
expected full-year profits to badly lag 2009 results, but it now
looks as if profits will be only modestly lower this year. But
serious questions remain about the U.S. and European economies in
the near and mid-term, so it's unclear if the current strength will
extend into 2011. That's likely to cap further price
appreciation
in the near-term.
------------------------------------
Glimcher gets Some Analyst Support
With all the data points showing a still-weak consumer sector,
investors have been lightening their stakes in mall operators and
other owners of retail properties. Shares of
Glimcher Realty Trust (NYSE:
GRT
)
, which owns malls throughout the United States, has seen its stock
fall in nine out of the last 10 sessions, capped off by a -7%
plunge on Tuesday.
That brought analysts at Hilliard Lyons to the company's defense.
The firm just raised its rating from "Neutral" to "Buy," noting the
stock's juicy
yield
of almost 8.0% and -30% undervaluation relative to the $7 price
target. Shares are up roughly +5% on that move.
Action to Take -->
A bounce was inevitable after such a losing streak, but clear
headwinds remain. Glimcher carries too much debt relative to its
asset base -- a hangover from the heady days of 2007 when mall
REITs
borrowed heavily to consolidate the industry. Glimcher also faces a
rising tide of vacant properties that may stay vacant until the
economy picks up steam. At some point, the company's alluring
dividend
may need to be trimmed.
Caveat Emptor
.
-- David Sterman
David Sterman has worked as an investment analyst for nearly two
decades. Most recently, he served as Managing Editor of
RealMoney.com, the premium website of TheStreet.com. David has made
numerous media appearances over the years, primarily on CNBC and
Bloomberg TV, and has a master's degree in management from Georgia
Tech. Read More...
Disclosure: Neither David Sterman nor StreetAuthority, LLC hold
positions in any securities mentioned in this article.
StreetAuthority