Champs & Chumps ..........Stock Market Winners & Losers

Wednesday, October 25, 2006

Stock Market Champs..........10-25-06

Applied Digital Solutions Inc. (ADSX)
Last Trade:2.67
Trade Time:12:08PM ET
Change:Up 0.98 (57.99%)
Digital Angel Corp. (DOC)
Last Trade:3.5499
Trade Time:12:03PM ET
Change:Up 1.0399 (41.43%)


Digital Angel Corp shares soared 41% to $3.53 in Wednesday morning trade after the South St. Paul, Minn.-based company said the U.S. Patent and Trademark Office has granted it a patent for its syringe-implantable glucose-sensing RFID microchip. The microchip measures the glucose concentration levels of diabetic patients, the company said. Digital Angel said its sister company, VeriChip, will market and distribute the product. Shares of Applied Digital Inc.(ADSX), the majority owner of Digital Angel, jumped more than 50% on the news.

Buffalo Wild Wings Inc. (BWLD)
Shares of Buffalo Wild Wings Inc. surged to a 52-week high on Wednesday, a day after the casual-dining restaurant chain posted third-quarter earnings and same-store sales as fiery as its hot sauce, prompting an analyst to upgrade the stock.

After the market closed on Wednesday, the Minneapolis company said third-quarter income jumped 88 percent to $3.5 million, or 40 cents a share. Revenue climbed 32 percent to $68.3 million.

Analysts polled by Thomson Financial had been expecting a profit of 31 cents per share.

Also in the quarter, same-store sales -- or sales in stores open at least one year, a widely used industry gauge of performance -- surged 11.8 percent at company-owned stores and 6.4 percent at franchised stores.

It was a "quarter to crow about," said RBC Capital Markets analyst Larry Miller in a research note on Wednesday.

He praised the company's same-store sales, which he expects to stay strong into 2007. He also noted the company affirmed its long-term unit growth of 15 percent, revenue growth of 20 percent and earnings growth of 25 percent.

"We think Buffalo Wild Wings' share offer a compelling relative value in a space where we see very little currently," he wrote, upgrading the company to "Outperform" from "Sector Perform."

He also raised his price target to $55 from $40, and his fourth-quarter earnings-per-share estimate to 49 cents from 41 cents. He lifted his 2006 earnings-per-share projection to $1.60 from $1.42, and his 2007 estimate to $1.99 from $1.77.

Jefferies & Co. analyst Donald Trott affirmed his "Buy" rating and also raised his price target to $57 from $44.

"Buffalo Wild Wings' improved company-operated restaurant margins, aggressive unit expansion, (and) national advertising are all powering rapid growth of the nation's leading chain of casual dining/sports bars," he wrote in a note on Wednesday.

Buffalo Wild shares soared, climbing $8.60, or 20.8 percent, to $49.90 during morning trading on the Nasdaq. Earlier in the session, the stock climbed to $50.43, eclipsing a previous 52-week high of $44.18 set in May.

Yankee Candle Co. Inc. (YCC)

Last Trade:33.62
Trade Time:12:03PM ET
Change:Up 4.90 (17.06%)
Shares of Yankee Candle Co. surged to a new 52-week high Wednesday, after the candle maker agreed to be acquired by private equity investment company Madison Dearborn Partners LLC for about $1.4 billion in cash.

Including assumed debt, the deal is worth about $1.7 billion.

Yankee Candle shareholders will receive $34.75 per share in the deal, which is expected to close in the first quarter. The price represents a premium of more than 57 percent to the company's closing price on July 25, the day before Yankee Candle said it was considering strategic alternatives such as a possible sale, and a 21 percent premium to Tuesday's closing price of $28.72.

Shares surged $4.90, or 17 percent, to $33.62 in morning trading on the NYSE, having earlier hit a new 52-week high of $33.69. Previously, the stock traded between $20.80 and $30.77 over the past year.

Chicago-based Madison Dearborn is a private equity investment firm that specializes in buyouts in industries that include communications, financial services and health care. On Monday, The Wall Street Journal reported that Madison Dearborn has teamed up with another firm to prepare a bid for the Tribune Co. And the firm is part of a consortium of investors buying Spanish-language broadcaster Univision Communications Inc.

Also on Wednesday, Yankee Candle said third-quarter net income declined 3 percent to $14.9 million, or 37 cents per share, while revenue rose 17 percent to $159.6 million.


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