Penny Stock Smokefree Innotec ( PINK: SFIO ) slumped back more than 40 % in last two trading sessions after showing a very nice run up since last week. we have alerted a cautious trade approach in the stock on Monday. Keep Visiting our website for more trade alerts. Please visit links here
Arotech Corporation ( NASDAQ: ARTX ) declared quarterly loss of $ 0.19 a share compared with a profit of $ 0.01 per share a year earlier in 2010.
Stock has moved up 17 % in the premarket trade, shrug off bad quarterly earnings and investors are mainly focusing on the positive news of bagging the order from US defense department worth $ 63.4 million. The news of winning the contract from US defense department came few days ago and stock has reacted positively during that trading session.
Stock has moved up 17 % in the premarket trade, shrug off bad quarterly earnings and investors are mainly focusing on the positive news of bagging the order from US defense department worth $ 63.4 million. The news of winning the contract from US defense department came few days ago and stock has reacted positively during that trading session.
Below is the news release of earnings:
 |
| Arotech Corporation |
(Marketwire - May 16, 2011) - Arotech Corporation (NASDAQ: ARTX), a provider of quality defense and security products for the military, law enforcement and security markets, today reported results for the quarter ended March 31, 2011.
First Quarter Results
Revenues for the first quarter of 2011 were $13.3 million, compared to $21.2 million for the corresponding period in 2010, a decrease of 37%.
Gross profit for the first quarter of 2011 was $2.8 million, or 21% of revenues, compared to $5.8 million, or 28% of revenues, for the corresponding period in 2010.
The Company reported an operating loss for the first quarter of 2011 of $(2.6) million, compared to an operating profit of $473,000 for the corresponding period in 2010.
The Company's basic net loss for the first quarter of 2011 was $(2.6) million, or $(0.19) per share, compared to a net profit of $92,000, or $0.01 per share, for the corresponding period in 2010.
"As we noted in our recent press release regarding our $63.4 million contract award for the design, development, production, and delivery of 28 VCTS simulators, our revenues slipped this quarter primarily due to delays in shipments of orders in our Armor Division to the Israeli Army," noted Arotech's Chairman and CEO Robert S. Ehrlich. However, since these armor orders are anticipated to be shipped later this year, we continue to expect our full year's revenues to be similar to or better than those of 2010," continued Ehrlich. "The VCTS win is an enormous vote of confidence in our Simulation Division, and will undoubtedly have a significant impact on our future results. While we have not had sufficient time to thoroughly and completely analyze the implications of this new order, we do feel it appropriate at this time to issue some preliminary guidance with respect to our 2011 and 2012 results, and we are doing so in this press release," concluded Ehrlich.
Backlog
Backlog of orders (not including the VCTS order) totaled approximately $43.1 million as of March 31, 2011, as compared to $42.5 million at March 31, 2010. As of the date of this release, backlog stood at $106.5 million.
Cash Position at Quarter End
As of March 31, 2011, the Company had $2.3 million in cash and $2.3 million in restricted cash, and $391,000 in available for sale securities as compared to December 31, 2010, when the Company had $6.3 million in cash and $1.8 million in restricted cash, and $399,000 in available for sale securities.
The Company had $1.9 million in short-term bank debt and $2.0 million in long-term debt outstanding at the end of the first quarter 2011 compared to $2.5 million in bank debt and $2.4 million in long-term debt outstanding at the end of 2010. The Company also had $6.6 million available in unused bank lines of credit at the Company's primary bank in the U.S. at quarter end.
The Company had trade receivables of $8.5 million as of March 31, 2011, compared to $13.8 million as of December 31, 2010. The Company had a current ratio (current assets/current liabilities) of 1.75 as of March 31, 2011 and 1.74 as of December 31, 2010.
Guidance
For the full year 2011, Arotech anticipates that revenues could range from $79 million to $82 million, with EBITDA reaching or exceeding last year's $2.9 million, excluding certain development costs in Arotech's Battery and Simulation Divisions, which Arotech believes will begin to pay off in 2012 and beyond.
For 2012, Arotech anticipates that revenues could increase significantly and could range from $85 million to $95 million, with a significant increase in EBITDA, which could range from $3.75 million to $5.0 million, including the possibility of reaching GAAP profitability.
Nobel Learning Communities, Inc ( NASDAQ: NLCI ) to be acquired by Leeds Equity Partners at $ 11.75 per share, Stock jumped 33 % to $ 11.50 in premarket trading. Transaction will be approved according to following terms:
 |
| Nobel Learning Communities Inc Logo |
Nobel Learning Communities, Inc. announced that the Company has reached a definitive agreement to be acquired by Leeds Equity Partners (Leeds Equity) in a transaction valued at approximately $149 million, including consideration paid to holders of outstanding options and warrants. The Strategic Affairs Committee of the Company's Board of Directors (the "Board"), which is comprised of three independent directors and was advised by independent financial and legal advisors, unanimously recommended the transaction to the full Board. The Board unanimously approved the transaction and has resolved to recommend that the stockholders of Nobel Learning approve the transaction. Additionally, holders of approximately 55% of the outstanding shares of Company common stock, including the Company's Board and executive management team, have entered into agreements with Leeds Equity to vote in favor of the transaction. Under the terms of the definitive agreement, the Company's stockholders will receive $11.75 in cash for each share of Nobel Learning common stock held thereby. J.P. Morgan Securities LLC acted as financial advisor to Nobel Learning and also provided a fairness opinion to the Board. Pepper Hamilton LLP acted as legal counsel to Nobel Learning in the transaction. Goodwin Procter LLP acted as legal counsel to Leeds Equity.
( Source: Reuters )
China's economy is showing real signs of weakening, particularly in real estate, and even could tip into a recession, hedge fund manager Jim Chanos.
 |
| China Flag |
Though the nation has been looked on as a key driver of global economic growth, Chanos for months has been sounding warning signals about China and the precarious nature of its economic surge. He said a recent visit by members of his investment team found a slowdown in housing sales as well as a decline in prices.
"The cracks are spreading in the facade," he said. "You're seeing real estate firms shutter, sales offices closed down. Some of the engine behind the boom is at least beginning to sputter."
At least on the surface, the biggest perceived problem with China has been inflation.
The Chinese central bank has responded to overheating in its economy by raising interest rates four times since October 2010. Inflation has subsequently cooled, slowing to 5.3 percent in April, but the economy is still roaring with a 9.7 percent increase in gross domestic product for the first quarter.
The rate moves have raised questions about whether the government is going too far to slow things down, and whether the country can accomplish its desired transition from an export-driven economy to growth based more on internal consumption.
As Chanos, founder of Kynikos Associates, sees it, any appreciable slowdown could snowball quickly.
"A lot of people are willing to say China will slow down," he said. "The really scary thing is if you do the numbers and they cut back on construction it's not a slowdown, and they go negative real fast."
He is among those who believe that measures to slow growth could backfire.
"The fact of the matter is if they hit the breaks really hard, the economy goes into reverse. It doesn't slow," Chanos said. "Nobody will say that publicly because it's unbelievable. But it happens to be the way the numbers work."
( Source: CNBC )
( Source: CNBC )
The long-term expected rate of return on commodities is ‘zero,’ according to Mark Matson of Matson Money.
“Equities are the best long-term creators of wealth and if you own a diversified portfolio, you already own commodities in all of your stocks, so don’t double down—it doesn’t make sense for long-term investors,” Matson told CNBC.
Meanwhile, Joseph Duran of United Capital Financial Partners said the decline in commodities is “healthy” over time, and allows for sustained growth. His best plays are multinational mega-cap names, as they are able to take advantage of global growth.
“People are realizing that QE3* is off the table and that means less money—and less money means less money for commodities,” he explained.
* a hypothetical third round of quantitative easing.
After the shocking fourth quarter results, the State Bank of India management says they are scaling down growth projections and may see some deceleration. Most brokerages cut their price target after the disappointing results.
Here is a lowdown.
Morgan Stanley: Underweight
JP Morgan: Overweight
CITI: Buy
Credit Suisse: Neutral
Here is a lowdown.
Morgan Stanley: Underweight
- Price target cut to Rs 2000 from Rs 2450
- 17% downside seen from current levels
- Expect NIMs to reduce to 2.8%
JP Morgan: Overweight
- Price target reduced to Rs 3000 from Rs 3200
- Should improve margins in FY12
- Likely to turnaround in FY12
- Lower employee costs and pension hits being taken
CITI: Buy
- Accumulate on further weakness
- Target of Rs 3110
- NIMs to pick up
- Much of the pain is behind us
- Could be some near term pressures
- Lower target to Rs 2900 from Rs 3150
- Weak earnings on account of balance sheet clean up due to change in CEO
- Should improve in coming quarters
- FY12 profit growth likely to be healthy
- Near-term pressures to remain on margins
- Lower target to Rs 2450 from Rs 2750
Credit Suisse: Neutral
- Cut FY12-13 EPS by 17-19% on lower NIMs, additional provisions and slower growth
- Target price cut to Rs 2,499
- Lowers target price to Rs 2950 from from Rs 3,400
- Cuts the 12-month price target to Rs 2,650 from Rs 2,700.
As we look around the headlines about economies, if we put Europe aside, the only headline buzzing all over is United States has reached its maximum debt limit and have little fund left to survive till August 2 before it starts defaulting on its debt obligations.
Earlier,end of last month, S&P rating agency has issued a warning regarding sovereign credit rating downgrade that is AAA for US as of now. S&P put its outlook on US debt as negative and said if US won't address issues regarding deficits in coming 2 years, it will lower its credit rating. Initially stock markets reacted negatively to the news and we had seen some correction for a day or two. But after initial reaction, stock market continued its up move and touching new highs after 2008 market corrections. Something ironic reaction from stock markets, but if we see the facts and compare it with 1988 economic downturn, right now US is in the way better position, Read Detailed article here
.
.
After that warning from S&P, now the buzz on wall street is US has reached its debt limit on Monday may 16 2011, means now US can't borrow more money. For temporary expenses, US started using Pension Funds' money, which will last till August 2 2011 according to the data Read More. Meanwhile there is an intense debate is going on between Democrats and Republicans, regarding increase in Debt limit and/or substantial spending cuts to cut the deficits. World is waiting for an agreement between two parties that will agree to both the conditions and US might be saved from its debt obligation defaults, which will start happening from August 2. Obama Administration said to agree on spending cuts for allowing government to increase debt limit and continue borrowing Read More
.
.
China, who is highest foreign buyer of US government Debt ( Bonds ) is now being cautious since last five months and reducing its positions in US bonds by selling them Read More, also, big investors are reducing their US bonds buying and being cautious about this political drama. US bonds are not very lucrative investment option as there is slow growth in US,low interest rates, weak dollar, inflation and deadline for US debt defaults.
Meanwhile,Sentiments of global investors are turned negative that world economy will grow in coming years.Read More. More investors are being less optimistic about global growth and being bearish on world economy due to already struggling US economy, Europe crisis about to spread, Developing countries like India and China are dealing with inflation and price hikes as cheap dollars are keep moving in those developing countries to get better returns on investments. Read More
.US government has no plan to hike interest rate until early or late 2012.
.US government has no plan to hike interest rate until early or late 2012.
As per latest housing report, US housing prices have started falling again and it is at 2009 low.and more homeowners are holding underwater mortgages means they have more amount of mortgage loans than the price of the home as today.Read More.
US now dealing with so many economical problems at same time. If any of the problem get worsen, then we might see dire consequences in US and in Global Economy. US economy will collapse and crisis will spread throughout the world. As dooms day coming near, this might be a list of problems indicating 2012 might be the end of world ( Just kidding ).
Government of India Ministry of Finance
11-May-2011 18:05 IST
To Achieve Sustained GDP Growth Rate of 9 to 10 Percent with Fiscal Prudence and Moderate Inflation is a Major Challenge : Pranab Mukherjee
The Union Finance Minister Shri Pranab Mukherjee said that there are three major challenges before us today. The Finance Minister said that the first major challenge is how to bring entire society especially the poor and vulnerable section of society in the ambit of development process so that everyone shares fruits of benefit of growth and development. Shri Mukherjee said that the second major challenge is to achieve sustained GDP growth at the rate of 9 to 10 percent with fiscal prudence and moderate inflation. Third major challenge is how to develop flexibility in our economic system so that we are not adversely affected or affected to minimum extent due to global economic developments and external shocks. Shri Mukherjee was addressing the probationers of the Indian Economic Service((IES), here today.
The Finance minister Shri Mukherjee said that in order to ensure inclusive growth the government is following the path of empowering people which lead to entitlement backed by legal enactment. In this regard, he specifically mentioned about Right to Education through Universalisation of Education up to the age of 14 years, Right to Information, Right to Employment through Mahatama Gandhi National Rural Employment Guarantee Act (MGNREGA). The Finance Minister said that the Central Government is also making efforts to provide access to food at highly subsidised prices to the poor and most vulnerable sections of society through Right to Food. The Finance Minister said that in order to achieve all these things, we need GDP growth rate of 9 to 10 per cent on sustainable basis which, in itself, is one of the biggest challenges.
The Union Finance Minister said that due to volatility in international commodity prices and other supply constraints, it may not be possible to achieve the growth rate of 9 percent +/- 0.25 percent for the current financial year i.e. 2011-12 as announced in his last Budget Speech. He said that the inflation is also likely to be in the range of 7 to 7.5 percent during this period.
The Finance Minister Shri Mukherjee said that the young officers should work as a knowledge bank as today's economy is knowledge based economy. They should continuously upgrade their knowledge and skills, the Minister added. Shri Mukherjee said that creativity in the pursuit of knowledge enhances the quality of leadership. He said that creative solutions enhance productivity and hence our production frontiers. Therefore, the officers must remain consistently creative and purse knowledge throughout their life in public service, the Minister added. He said that a firm foundation of willingness to learn and humility is imperative for the ready acquisition of effective knowledge and skills.
Dr. Kaushik Basu, Chief Economic Advisor was also present on the occasion.
Despite the sluggish growth in the personal computer (PC) market, Dell maintains tablets are far from replacing desktop computers, especially in the workplace.
"The tablet is still seen as a third device. It's not going to replace the smartphone. So far, it has not shown any opportunity to replace the notebook or the desktop computer," Steve Felice, President, Consumer, Small and Medium Business at Dell told CNBC on Wednesday.
His comments follow recent reports from both research firms Gartner and IDC, which showed overall global consumer PC sales declining 1-3 percent in the first quarter, with some of that weakness attributed to the rise of tablets.
Felice says desktop computers will still have a place in the office as they are used not just for viewing content, but more importantly, also for content creation.
"There're estimates out there that there is going to be two billion PCs sold over the next decade. And you think about that versus 10 million tablets sold in the last few quarters. So I think we have a long way to go before we're talking about these kinds of trends being truly transformational," he noted.
Late Tuesday, Dell said its first quarter profit nearly tripled from a year ago thanks to lower component costs and growth in its higher margin products. Revenue for its the large enterprise customer segment and small and medium businesses rose 5.4 percent and 6.9 percent respectively, as corporate clients continued to refresh their PC lineup. But sales in its consumer segment dropped 7.5 percent.
In a bid to generate higher profits, Dell has been moving away from its low-cost direct sales PC model to higher margin businesses like enterprise solutions.
"We're executing against the strategy we put in place two years ago now on several fronts. One, was to build a solutions capability, and you're seeing our enterprise business, our server and storage business, and our services business grow nicely, and they are very profitable. We also said we were going to make vast improvements in our supply chain," Felice said.
He also highlighted Asia's strong performance in the quarter, with 28 percent growth in India and 22 percent growth in China. These areas would continue to be a big growth driver for Dell as it relied less on its domestic market.
 |
| Dell Inc Logo |
"The tablet is still seen as a third device. It's not going to replace the smartphone. So far, it has not shown any opportunity to replace the notebook or the desktop computer," Steve Felice, President, Consumer, Small and Medium Business at Dell told CNBC on Wednesday.
His comments follow recent reports from both research firms Gartner and IDC, which showed overall global consumer PC sales declining 1-3 percent in the first quarter, with some of that weakness attributed to the rise of tablets.
Felice says desktop computers will still have a place in the office as they are used not just for viewing content, but more importantly, also for content creation.
"There're estimates out there that there is going to be two billion PCs sold over the next decade. And you think about that versus 10 million tablets sold in the last few quarters. So I think we have a long way to go before we're talking about these kinds of trends being truly transformational," he noted.
Late Tuesday, Dell said its first quarter profit nearly tripled from a year ago thanks to lower component costs and growth in its higher margin products. Revenue for its the large enterprise customer segment and small and medium businesses rose 5.4 percent and 6.9 percent respectively, as corporate clients continued to refresh their PC lineup. But sales in its consumer segment dropped 7.5 percent.
In a bid to generate higher profits, Dell has been moving away from its low-cost direct sales PC model to higher margin businesses like enterprise solutions.
"We're executing against the strategy we put in place two years ago now on several fronts. One, was to build a solutions capability, and you're seeing our enterprise business, our server and storage business, and our services business grow nicely, and they are very profitable. We also said we were going to make vast improvements in our supply chain," Felice said.
He also highlighted Asia's strong performance in the quarter, with 28 percent growth in India and 22 percent growth in China. These areas would continue to be a big growth driver for Dell as it relied less on its domestic market.
According to a survey, Employers from big European companies have started offering lavish gifts, cash and other means of awards or gifts to get more businesses and continue to stay ahead in the race as economic downturn giving hard time for companies to continue businesses. Survey showed that figures are more than of one third employees from big companies, those practicing such a tactics to get more businesses.
In its 2011 European fraud survey, consultants Ernst & Young said on Wednesday that Greek and Russian staff were most likely to offer cash bribes, with Greece also topping the chart for the most likely to offer personal gifts.
France and Norway had the cleanest slates, although two thirds of the 2,365 people quizzed across 25 European countries agreed that bribery and corruption was widespread on their turf — and nearly half were unaware of any company anti-bribery policy.
"Complacency about fraud, bribery and corruption, combined with cost cutting initiatives at many companies, creates additional exposure," said David Stulb, who leads Ernst & Young's global fraud investigation & disputes services.
Britain's Bribery Act, which comes into force from July, unsettled business leaders in part because of an onerous new offence of failure to prevent bribery, which can make businesses with any UK interest criminally liable if staff, subsidiaries or "associated persons" offer bribes anywhere in the world.
It also clamps down on so-called "facilitation payments" — often used to oil the wheels of business by speeding up services such as visa applications — and "disproportionate" hospitality.
After polling employees from the factory floor to top executives, Ernst & Young said over 40 percent acknowledged that bribery and corruption had worsened over the last two years of the economic crisis.
Around one quarter did not trust management to behave ethically and nearly 60 percent expected top executives to cut corners to hit targets. Half of management respondents agreed.
Ernst & Young said only 26 percent of UK staff and less than 20 percent in France and Germany had received anti-corruption training. Only one third of those polled thought their anti-bribery policy contained clear guidance.
Staff in countries hit hardest by the economic crisis were clamoring the loudest for a tougher regulatory crackdown. Over 80 percent of respondents in Portugal, Ireland, Spain and Greece wanted more supervision by regulators.
That call comes against a backdrop of increasing regulatory action against companies and individuals. Under the Foreign Corrupt Practices Act (FCPA), the United States has sanctioned 107 for foreign bribery, Germany 71, Italy 39 and the UK 5.
The UK was shamed in the last annual Corruption Perceptions Index of least-corrupt countries, when anti-corruption group Transparency International ranked it 20th, trailing nations like Qatar. Greece ranked 78th and Russia 154th out of 178.
( Source: Reuters )
