Our Stocks to Watch tomorrow include Rockford Corp. (Nasdaq: ROFO), AmeriResource Technologies Inc. (OTC: ARIO), NavStar Technologies Inc. (OTC: NVSR), Rentech Inc. (AMEX: RTK), CIT Group Inc. (NYSE: CIT) and PGT Inc. (Nasdaq: PGTI).
Visit http://www.otcpicks.com/microcap.htm to register for our Daily Market Mover's Digest Newsletter, and Email Stock Watch Alerts.
ROCKFORD CORPORATION (NASDAQ: ROFO)
"Up 166.67% on Thursday"
Detailed Quote: http://www.otcpicks.com/quotes/ROFO.php
ROFO News:
August 6 - Rockford Corporation Announces Second Quarter and Year to Date 2009 Profit
Rockford Corporation (Nasdaq: ROFO) announced financial results for the three and six months ended June 30, 2009.
Net income for the three months ended June 30, 2009 was $0.3 million compared to net income of $0.8 million for the comparable period in 2008. Net income for the six month period ended June 30, 2009, was $0.3 million compared to net income of $0.7 million for the comparable period in 2008.
Net sales for the three months ended June 30, 2009 decreased 29.1% to $15.4 million compared to $21.8 million for the same period in 2008. Net sales for the six months ended June 30, 2009, were $29.9 million compared to $40.2 million for the same period in 2008. The decrease in net sales was primarily due to lower royalty revenue, reduced sales of
As a percent of net sales, gross margin for the three months ended June 30, 2009 decreased to 31.8% compared to 35.0% for the same period in 2008. As a percentage of net sales, gross margin for the six months ended June 30, 2008 decreased to 31.2% compared to 34.8% for the same period in 2008. The decrease in gross margin percentage was primarily due to lower royalty revenue.
Operating expenses for the three months ended June 30, 2009, decreased 38.9% to $4.5 million compared to the 2008 level of $7.4 million. Operating expenses for the six month period ended June 30, 2009, were $9.3 million compared to $13.6 million for the same period in 2008. In the second quarter of 2008, operating expenses included a special charge of approximately $0.5 million related to costs associated with the elimination of two executive officer positions.
William R Jackson,
"Our gross margin percentage in the second quarter was down compared to the second quarter of 2008. This decline was heavily influenced by lower OEM royalties. Overall expenses continue to track well below 2008 levels and we continue to benefit from our fourth quarter restructuring and completion of our outsourcing efforts."
"Many domestic retailers reported soft overall floor traffic at the beginning of the second quarter, followed by a slight pickup in June. We are seeing signs business is stabilizing for our domestic specialists and regional chain dealers. In addition, we began shipping our new Power Series full range speakers in June. The initial response has been excellent."
"We feel good about our position in the market. The conditions continue to be difficult, but our sales force and dealer network are working closely together to maximize retail opportunities. We have added a significant number of new accounts in the specialist dealer channel in the first six months of 2009."
"On the OEM front, we will begin shipping to our new OEM customer, Suzuki Motor Corporation, in the third and fourth quarter of this year. Suzuki announced in late July their new flagship sedan, the Kizashi. This represents a new global vehicle platform for Suzuki. The car will offer consumers a great value and will feature an outstanding Rockford Fosgate system in the premium trim level. We are very excited to be part of the launch of this new product."
"The first half of 2009 has proven to be quite challenging. The global retail markets have been challenged with reduced consumer confidence and spending. Considering the softness of the OEM and international sales channels, we are pleased to be profitable and remain cautiously optimistic about our business going forward."
AMERIRESOURCE TECHNOLOGIES INCORPORATED (OTC: ARIO)
"Up 100.00% on Thursday"
Detailed Quote: http://www.otcpicks.com/quotes/ARIO.php
AmeriResource is a diversified holding company with headquarters in
ARIO News:
August 6 - AmeriResource Reports Revenue of $1.3 Million for Six Months Ended June 30, 2009
AmeriResource Technologies, Inc. (OTC: ARIO) announced that its subsidiary, BizAuctions, Inc. (OTC: BZCN), a prime provider of commercial eBay liquidation services for excess inventories and returns, generated revenue for the six months ended June 30, 2009 of approximately $1,341,904.
"While the revenues are down from the same period in calendar year 2008, we are optimistic that our eBay business model will begin increasing revenues going into the fall when the consumer expenditures for back-to-school hit the retail markets and as the economy begins to make improvements. We are beginning to see hints of some of this spending at BizAuctions as well as our Lucky 7's retail store," noted CEO Delmar Janovec.
"We believe with our sound eBay business model and the addition of ATTO Enterprises, Inc., this year, the Company should enjoy a reasonable progressive year in 2009," Janovec concluded.
The Company encourages the public to read the above information in conjunction with its year-end 10-KSB for December 31, 2007, and the Quarterly statements filed in calendar year 2008. The financial statements can be viewed at www.sec.gov.
NAVSTAR TECHNOLOGIES INCORPORATED (OTC: NVSR)
"Up 30.29% on Thursday"
Detailed Quote: http://www.otcpicks.com/quotes/NVSR.php
NavStar is focused on the creation of GPS products and services that provide wireless tracking of vehicles, equipment, and other valuable and personal assets. The goal is to be a total solutions provider.
NVSR News:
August 6 - Upside of $30M in Hardware and Service Revenue From Distribution Agreement Completed Between NavStar Technologies and Anything Trucker for Sales and Marketing in
NavStar Technologies, Inc. (OTC: NVSR), a multinational firm focused on developing and commercializing asset tracking and monitoring devices for vehicles and high value cargo, announced the completion of a distribution agreement to sell products and services to the trucking industry in the U.S.
NavStar announced earlier this week that they would partner with Anything Trucker, a transportation marketing unit of Anything Brands Online, Inc (Pinksheets:ANYT - News). A distribution agreement has been signed. Both companies are excited about moving forward with tracking and monitoring assets, and providing new productivity and efficiency tools that have not been available to the trucking industry in the past.
Tim Norton, President, Anything Trucker, stated, "We are very excited to have NavStar as a business partner as we continue to provide communications, safety, and security products and services that make the American Trucker more efficient. Today millions of pieces of road equipment are scattered across the country with very limited information as to their exact location. With the NavStar Asset Tracker we can provide real-time location reporting, eliminate excessive fuel consumption, and reduce time spent searching for a specific piece of equipment. We can now provide innovations that will change how any motorized fleet, whether: private or for-hire, delivery companies, auto services or heavy equipment industry, monitor and track their assets while making them more efficient, productive and ultimately more profitable. These are just some of the many benefits of the NavStar Asset Tracker System."
"This new distribution agreement has permitted NavStar Technologies to identify and develop six new software applications which will be launched in the next several months. As well NavStar Technologies is pleased to have access to Anything Trucker's resources and industry knowledge. We have worked long and hard to make the NavStar Asset Tracker the industry's most flexible solution and are pleased to deliver a platform which allows for customization and optimization as evidenced by our meeting the demands of Anything Trucker. A prime example of our system's benefits is that at the present time, trucking companies spend upwards of $50,000 a year just calculating fuel taxes; whereas our system does so automatically, as well as provide a monthly report in any format they desire," said N. Douglas Pritt, Chairman & CEO, NavStar Technologies, Inc. "This distribution agreement represents a market penetration of .005% into the US trucking market and will double our forecast of unit sales over the next four years and will generate a minimum of $30M in hardware and service revenue."
RENTECH INCORPORATED (AMEX: RTK)
"Up 51.02% on Thursday"
Detailed Quote: http://www.otcpicks.com/quotes/RTK.php
Incorporated in 1981, Rentech provides clean energy solutions. The Rentech Process is a patented and proprietary technology that converts synthesis gas from biomass and fossil resources into hydrocarbons that can be processed and upgraded into ultra-clean synthetic fuels, specialty waxes and chemicals. Rentech Energy Midwest Corporation, the Company’s wholly-owned subsidiary, manufactures and sells fertilizer products including ammonia, urea ammonia nitrate, urea granule and urea solution to the corn-belt region.
RTK News:
August 5 - Rentech's Synthetic Jet Fuel Certified for Commercial Aviation
Rentech, Inc. (AMEX: RTK) announced that ASTM International’s full governance committee has unanimously approved modifying the specifications for commercial aviation jet fuel to include up to a 50/50 blend of synthetic Fischer-Tropsch jet fuel. The jet fuel certified by the Federal Aviation Administration (FAA) for use in commercial aircraft relies on ASTM’s specifications. Rentech’s jet fuel, RenJet®, qualifies under the approved specifications of synthetic jet fuel.
With the ASTM specifications, fuel derived using the Fischer-Tropsch process, including RenJet® produced from renewable or fossil feedstocks, is the first and currently only alternative jet fuel certified for use by the FAA. Rentech currently produces jet fuel at its Product Demonstration Unit that, when blended with petroleum-derived fuel, meets the ASTM International specifications. RenJet® is biodegradable, clean burning and virtually free of particulates, sulfur and aromatics.
D. Hunt Ramsbottom, President and Chief Executive Officer of Rentech, stated, “ASTM’s approval of synthetic jet fuel for use in commercial aviation marks the achievement of a significant milestone for Rentech, the commercial aviation industry and the country.” Mr. Ramsbottom continued, “Rentech is one of the few companies that has the technology to produce and supply these fuels to the commercial aviation market and the U.S. Air Force, which has already certified the use of synthetic fuels in most of its aircraft.”
CIT GROUP INCORPORATED (NYSE: CIT)
"Up 16.55% on Thursday"
Detailed Quote: http://www.otcpicks.com/quotes/CIT.php
CIT Group Inc. is a bank holding company with more than $60 billion in finance and leasing assets that provides financial products and advisory services to small and middle market businesses. Operating in more than 50 countries across 30 industries, CIT provides an unparalleled combination of relationship, intellectual and financial capital to its customers worldwide. CIT maintains leadership positions in small business and middle market lending, retail finance, aerospace, equipment and rail leasing, and vendor finance. Founded in 1908 and headquartered in
CIT News:
August 3 - CIT Announces Amendment of Tender Offer and Interim Tender Results
CIT Group Inc. (NYSE: CIT), a leading provider of financing to small businesses and middle market companies, announced that, with the consent of the lenders’ steering committee for its recently announced $3 billion secured credit facility (the “Credit Facility”), it has amended its pending tender offer (the "Offer") for its $1 billion of Floating Rate Senior Notes due August 17, 2009 (the "Notes").
“We are pleased to announce a constructive resolution to the tender offer as we continue to make progress in the development and execution of a broad restructuring plan that positions CIT for the long-term,” said Jeffrey M. Peek, Chairman and CEO.
As a result of the amendment, holders of all Notes tendered prior to the expiration date at midnight,
CIT announced that the amendment to the Offer also reduces the minimum tender condition to 58% of the Notes, an amount approximately equal to the number of Notes which pursuant to the Credit Facility the lenders are committed to tender and not withdraw. As of 5:00 p.m.,
The withdrawal deadline for the Offer has been extended until midnight,
Morgan Stanley & Co. Incorporated and BofA Merrill Lynch are the Dealer Managers for the Offer. D.F. King & Co., Inc. is the Depositary and Information Agent. Persons with questions regarding the Offer should contact Morgan Stanley & Co. Incorporated toll free at (800) 624-1808 or collect at (212) 761-5384 or BofA Merrill Lynch at (980) 388-4813, Attn. Debt Advisory Services. Requests for documents should be directed to D.F. King & Co., Inc. toll free at (800) 758-5880 or collect at (212) 269-5550. The terms and conditions of the Offer are set forth in the Offer to Purchase dated July 20, 2009, and the Supplement dated July 23, 2009, copies of which are available from the Information Agent.
PGT INCORPORATED (NASDAQ: PGTI)
"Up 21.69% on Thursday"
Detailed Quote: http://www.otcpicks.com/quotes/PGTI.php
PGT® pioneered the
PGTI News:
August 5 - PGT Reports 2009 Second Quarter Results
PGT, Inc. (Nasdaq: PGTI), the leading
* Net sales were $46.9 million, an increase of $5.4 million, or 12.9%, compared to the first quarter of 2009. Sales decreased when compared to the prior year second quarter by $13.2 million, or 22.0%.
* Gross margin of 31.2% improved compared to the 2009 first quarter gross margin of 23.8%, but declined when compared to gross margin of 35.8% in the second quarter of 2008.
* Net income was $342 thousand, compared to an adjusted net loss of $3.7 million in the first quarter of 2009, and adjusted net income of $1.9 million in the second quarter of 2008.
* Net income per diluted share was $0.01, compared to an adjusted net loss per diluted share of $0.11 in the first quarter of 2009, and adjusted net income per diluted share of $0.06 in the second quarter of 2008.
* EBITDA was $6.0 million, compared to adjusted EBITDA of $2.0 million in the first quarter of 2009 and $9.5 million in the second quarter of 2008.
* Solid cash generation was used to make additional debt payments totaling $8.0 million in June.
* Cost reductions from initiatives taken in the first quarter of 2009 were fully realized and are on track to produce savings for the rest of the year and beyond.
"We delivered solid operating performance in an environment of new housing starts down 44% compared to the second quarter of 2008, as the challenges faced by the home building industry continue. Although our sales decreased 22% in the second quarter of 2009 compared to 2008, we were able to generate $5.0 million of cash from our operations," said Rod Hershberger, PGT's President and Chief Executive Officer. "Additionally, the homebuilding industry began to show some positive signs as several of the nation's largest home builders reported increases in new home orders and decreases in cancellation rates. However, credit availability continues to be of concern and the rate of unemployment in some areas is now in the double-digits. These mixed economic signals make predicting a turn-around in the home building industry difficult, but they may be an indicator of increased stability. Actions in 2009 to better align costs with the continued decline in our sales levels benefited us in our second quarter results and will benefit us into the future. We continue to move forward with new product offerings and line expansions and to pursue growth opportunities both inside and outside of
Commenting further on the second quarter of 2009, Jeff Jackson, PGT's Executive Vice President and Chief Financial Officer, stated, "Our sales continued to be negatively impacted by the most difficult market conditions we have ever encountered, declining $13.2 million, or 22.0%, from the second quarter of 2008. However, we saw some encouraging signs in the second quarter, including an increase in sequential quarter sales, and our efficiency initiatives positively impacted our ability to generate cash. This internally generated cash, coupled with effective management of working capital, enabled us to prepay $8.0 million of outstanding bank debt in June, while cash on hand decreased only $1.7 million during the quarter."
Mr. Jackson continued, "While we are pleased with the results of our second quarter, we expect the challenges of this unprecedented market downturn to continue through the rest of 2009, and possibly further. However, we remain committed to investing in our future, controlling costs and strengthening our balance sheet by further reducing debt."
OTCPicks.com is located at
DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the "SEC") or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. OTCPicks.com makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person or that an investment such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk. You are receiving this email because you have registered on OTCPicks.com or one of our affiliate companies.
The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice. The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.
Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company. An individual should never invest in the securities of any company profiled based solely on information contained in our reports. Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.
Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment advisor or licensed stockbroker before investing.
Information contained in our report will contain "forward looking statements" as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward-looking statements. These forward-looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company's most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward-looking statements included in the report and not place undue reliance upon such statements. We are committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company's plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company's operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related public information sources which we believe to be reliable but we cannot guarantee the accuracy of the information. To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information). We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.
Disclosure: OTCPicks.com has been compensated eight thousand dollars by a third party (Mickey Reno) for NVSR advertising and promotional services.
