Today is Thursday, May 17, 2012

Colorado Stocks

7 Colorado stocks look strong on their charts: MWE, PENX, Q, TWTC, TIE, WLL, XEC

If you’re a chart or technical trader who buys and sells stocks based on their technicals regardless of their fundamentals, you might like the seven Colorado-based stocks listed below.

Out of 75 Colorado-based stocks that I screened, these seven are 

How many politicians know Colorado-based energy companies?

How many Colorado politicians know the stock symbols for companies based in the state and know much or anything about Colorado-based energy stocks?

Links to information about 11 of the larger Colorado-based energy stocks follow:

 

Colorado-based stocks hit hard today but still up from 12 months ago

The stock market finally corrected a bit today, falling 250 points on the Dow. It probably needs to go down another 1,000 points or so to reach a reasonable valuation, given the tax increases and political blunders President Obama and the Democrats in Congress have in store for us.

Stocks of Colorado-based companies pretty much followed the Dow today, but most still are up from a year ago when we were in the midst of the financial crisis that was caused by Chris Dodd, Chuck Schumer, Barney Frank, George W. Bush and other politicians as well as by the private sector.

Links to charts of Colorado-based stocks:

 

Bill Barret (BBG) faces hurdles to natural gas exploration on Roan Plateau

The NY Times reports on the challenges facing Bill Barret Corp. (BBG), Denver, which wants to explore for natural gas on the Roan Plateau in western Colorado. Looks like a pretty balanced report by Sean Patrick Farrell.  BBG’s daily chart is showing

Charts for Colorado’s largest companies

It’s time to take a look at how Colorado’s largest companies are doing in the stock markets.

The ten largest are Qwest (Q), Liberty Media Holding Corp. Capital (LCAPA), EchoStar (DISH), Molson Coors (TAP), Chipolte (CMG), Prologois Trust (PLD), Western Union (WU), Ball Corp. (BLL), Crocs (CROX) and Emergency Medical (EMS). Their charts are here. Click on a chart for a gallery of charts.

The next 10 largest Colorado stocks are: Woodward Governor (WGOV), IHS Inc. (IHS), Vail Resorts (MTN), Janus (JNS), Cimarex Energy (XEC), Forest Oil (FST), Apartment Management (AIV), St. Mary Land (SM), United Dominion (UDR) and DaVita (DVA), which is moving to Colorado later this year. Their charts are here.

The next 10 largest companies are Red Robin (RRGB), Ciber Inc. (CBR), National CineMedia (NCMI),  Time Warner Telecom (TWTC), Einstein Noah Restaurant Group (BAGL), Air Methods (AIRM), Whiting Petroleum (WLL), Level Three (LVLT), Liberty Global Inc. (LBTYA) and DCT Industries (DCT). Charts are here.

The next 10 largest Colorado stocks are CSG Systems International (CSGS), Newmont Mining (NEM), Penford (PENX), Galam (GAIA), Discovery Communications (DISCA), Spectranetics (SPNC), Advanced Energy Industries (AEIS), Bill Barrett Corp. (BBG), Markwest Energy (MWE) and Dynamic Materials Corp. (BOOM). Charts are here.

Nine more stocks include: Heska (HSKA), MDC Holdings (MDC), CoBiz (COBZ), TransMontaigne (TLP), Royal Gold (RGLD), Ramtron (RMTR), HealthGrades (HGRD), Golden Star (GSS) and Berry Petroleum (BRY). Charts are here.

The next step is to review the charts for each of these stocks and try to find some worth buying.

At first glance, it’s pretty obvious that most of these companies have been riding the crest of the recent rally in stocks, as most stocks have been. The question is whether the rally will continue or is on the verge of a significant correction after three up months in a row. If the rally continues, which stocks will do best over the next few days and weeks? If not, will it make sense to own any of them?

I don’t own any of these stocks.

For educational purposes only. Investigate before you speculate. I am not recommending any trades and take no responsibility for how others trade stocks, ETFs, commodities or anything else.

 

Time Warner Telecom (TWTC) down graded by two analysts

Notable Calls reported that Colorado-based Time Warner Telecom (TWTC) has been downgraded by Merril Lynch and FBR Capital.

Check out TWTC’s charts are here. This downgrade at least in part was a reaction to the recent sharp runup in the stock. In other words, it’s a valuation call.

I don’t own TWTC.

Crocs (CROX) is one sorry fad stock

Crocs (CROX), the four-year-old Niwot, CO, maker of faddish footwear, has been warned by its auditors that it risks failling as a going concern if it doesn’t find a way to refinance its debt by early next month.

The company’s annual report (10-K) is here.

The company’s key statistics are here.

After achieving

First State Bancorp (FSNM) sells Colorado branches, escapes TARP

First State Bancorporation (FSNM),  Albuquerque, announced the sale of its 11 Colorado branches will allow it to withdraw its application for TARP funds, joining numerous banks that are dodging the TARP trap.

“First Community formerly operated in Colorado as Heritage Bank. Former U.S. Rep. Bob Beauprez and others

 

Woodward Governor (WGOV) plunges 32% on lower guidance, $365 million acquisition

Colorado-based Woodward Governor (WGOV) plunged almost 32% today after it announced that it doesn’t expect 2009 to be as good as it used to and that it was making a $365 million acquisition of HR Textron for cash.

This is the eighth time I’ve blogged on WGOV. Last September it was a market leader in the Investors Business Daily 100.

WGOV closed at $11.55, down 32.93%. The 52-week high was $48.62. It manufactures

E.W. Scripps (SSP) is trying to cut its Denver losses or plotting to put the Denver Post under

E.W. Scripps (SSP) is either trying to minimize and cut its losses on its Denver Rocky Mountain News or put its editorial competitor, The Denver Post, under.

Today’s

E.W. Scripps (SSP) may outlast competition in Denver newspaper war

E.W. Scripps (SSP) may not have to close or sell its Rocky Mountain News in Denver because its joint operating agreement partner and competitor, MediaNews Group, is in a lot worse financial condition and may have to sell or close its Denver Post.

This assumes that

 

Colorado’s top 50 stocks had a rough 2008; state lost a lot of wealth

The 47 largest companies based in Colorado had a rough 2008 as did most stocks around the world. This means, of course, that Colorado saw a lot of wealth go down the drain and that the state won’t collect as much in capital gains taxes that it had budgeted for fiscal 2009 and was expecting for fiscal 2010.

Many of the stocks, however, despite last week’s market drop, still are looking a bit stronger technically. But, after last week’s action, the durability of the recent bear market rally is very much in doubt.

Daily charts for the 10 largest Colorado-based stocks are here. Click on a chart to see hourly, weekly and point and figure charts.

The daily charts of stocks ranked 11 to 20 by the Rocky are shown here. One company was acquired and its chart is no longer available.

The daily charts of stocks ranked 21 to 30 by the Rocky are shown here.

The daily charts of stocks ranked 31 to 40 by the Rocky are shown here.

The daily charts of stocks ranked 42 to 50 by the Rocky are shown here. Two of the stocks that were listed here are no longer publicly-owned.

I don’t own any of these stocks.

For educational purposes only. Investigate before you speculate. I am not recommending any trades and take no responsibility for how others trade stocks, ETFs, commodities or anything else.

 

 

Pension fund obligations will hurt earnings at hundreds of companies

Black October combined with the chances that there will be more losses before the end of the year could wind up costing the 350 companies whose stocks are in the S&P 500 more than $300 billion. If employers have to make up these losses by refunding their pension plans, as required under the Pension Protection Act of 2006.

Fifteen trade associations that represent employers that are caught in the pension squeeze have asked Congress “to help companies avoid having to freeze or end pension plans that may be inadequately funded because of the financial crisis,” Reuters reports.

Note the scare tactic being used by the employers that are seeking help from Congress. Help or pensions will be frozen or suspended. That would be a radical move, and General Motors, Ford and Chrysler might very well have to suspend or freeze their pensions due to the financial crisis regardless of whether Congress bails them out.

But most employers would suck up and refund their pension plans rather than get in trouble with their employees, retirees and unions.

For investors, it’s important to know which companies are most at risk. Here are names mentioned this week in the financial press that are varying degrees of risk:

• Lockheed Martin (LMT)
• General Motors (GM)
• Dow Chemical (DOW)
• Unisys (UIS)
• Qwest Communications (Q)
• AT&T (T)
• Consolidated Edison (ED)
• New York Times (NYT)
• Ryder Systems (R)
• Burlington Northern (BNI)

Daily charts for these stocks are here. Click on a chart to see more charts for a given stock.

I doubt that many analysts have factored the pension fund problem into their earnings forecasts for these companies, which makes their forward price earnings ratios and PEG ratios (PE/projected earnings) more suspect than usual.

A big rally before yearend would help reduce the severity of this problem.

I own GM and have covered calls on it.

For educational purposes only. Investigate before you speculate.

Janus (JNS) misses earnings forecast as mutual fund fees drop; clients withdraw $1.1 billion

Mutual fund companies are seeing their fee revenues shrink as the values of the equities they hold plunge and bearish customers withdraw funds. Because mutual fund portfolio managers stay virtually fully invested so that they will earn management fees, the only way investors in mutual funds can go to cash when they think the market is bearish is to take their funds out of mutual funds.

Often, fund investors just switch their money to money market funds from stock or bond funds, but uncertainty about the safety of money market funds has caused a lot of investors to withdraw their money from fund companies and put it in U.S. Treasury Bills or other federal government bond issues.

This is what is hurting Denver-based Janus Capital (JNS) , which operates mutual funds. Janus missed analysts’ expectations that it would earn 24 cents a share in the third quarter, when it earned 16 cents on continuing operations, down from 29 cents in the same quarter a year ago. The Janus news release is here.

Janus suffered a $1.1 billion long-term net outflow of investors’ money in the third quarter. “Average assets under management during the third quarter decreased 8.7% to $182.7 billion
compared with $200.1 billion during the second quarter 2008,” Janus announced. It said that as of September 30, “Total assets under management were $160.5 billion compared with $191.8 billion at June 30, 2008. The decrease in firmwide assets during the third quarter reflects $26.2 billion of net market
depreciation / fund performance, long-term net outflows of $1.1 billion, and money market net
outflows of $4.0 billion.”

Janus is cutting its workforce by 9%. This will save $40 million to $45 million. It is cutting general and administrative expenses by “approximately $25 million to $30 million” and will incur an estimated severance charge of approximately $7 million in the fourth quarter.

After buying $72 million of its own stock during the third quarter, Janus has suspended stock repurchases to preserve liquidity. It is only one of hundreds of companies that have wasted shareholders’ money buying back shares in an effort to boost executives’ bonuses.

If a company doesn’t know when to take its investors’ to cash to preserve capital and foolishly buys its own stock while it’s in a sharp decline, how can investors trust it to manage their money? It just doesn’t make sense.

JNS is trading at $9.75, down 5.71% on the day and down from its 52-week high of $37.08. Its dividend yield is 0.41%. Charts are here.

UPDATE: The day after I published this piece, Barron’s published FBR Capital Market’s explanation of why it has downgraded the stock, lowering its target price to $7 from $16.

I don’t own JNS.

For educational purposes only. Investigate before you speculate.

Spicy Pickle (SPKL) restaurant shares don’t even make a decent tip

Spicy Pickle (SPKL) restaurants are one of my favorite lunch-time places to get a great tuna salad, but if I left one of the Denver-based company’s shares as a tip, I’d be considered an el cheapo.

The penny stock sells for only 31 cents a share on the bulletin board over the counter market, after trading at a 52-week high of $2 and low of 27 cents.

Chuck Jaffe calls SPKL the “Stupid Investment of the Week.” The company is under capitalized, and its franchisees can’t get loans in the frozen credit markets. His column is here.

His key point is that the company is more likely to go out of business than to give speculators a decent return on their bets. This is just another example of how a low-priced stock is not cheap.

I don’t own SPKL.

For educational purposes only. Investigate before you speculate.