GNSS

Genesis: CFO Resigns; Earnings Next Week
Posted by Eric Savitz

This cannot possibly be good news. Genesis Microchip (GNSS) today announced that its CFO, Michael Healy, is resigning effective May 8, “to pursue another opportunity.” The company provided no other details, and did not immediately name a successor.

Daniel Gelbtuch, an analyst at CIBC World Markets, says the “wheels continue to fall off the train,” and repeated his Sector Underperformer rating on the stock. Gelbtuch notes that several other execs have recently left the firm, which makes chips used in digital televisions.

“Timing of CFO’s departure seems ominous, since GNSS will report March Q results in 5 days (May 2),” he writes. Gelbtuch also plays down recent rumors that the company could be acquired. “It doesn’t seem to make sense to resign now if GNSS were even remotely close to being acquired.”

Genesis today fell 68 cents, to $8.81.


Some support at 8. If it gets below 8, then go back to 2002 to find support.

Covered Call Funds

ECV 20.24 10% dividend.
RCC 20.10 10% dividend.

Barron's April 23

Notes from Barron's.

YHOO 27.46. Possible longer term pick. Supposedly is now at some lows.

Offshore rigs. Past 52 weeks these are down 5% - 14%. Supposedly can move higher if they pay out dividends. Consider long term LEAP bull spread with selling monthlies.
RECENT TARGET
TICKER PRICE PRICE
RIG 81 119
GSF 62 94
DO 81 128
NE 79 125
ESV 54 93

JOYG 47, down 1/3 past year. Mining equipment and servicing of equipment. Supposedly has stabilized.
BUCY 56, smaller competitor, valued higher than JOYG.
Consider pairs trade of short BUCY long JOYG, or long term bull spread on JOYG.

DPZ, Domino's. 33 will be 19.5 when ex-dividend on May 7. Supposedly will not go higher.

New Zealand market strong. Auckland Airport, AIA.New Zealand, pays dividend.

Snow Futures

Volatility has created opportunities for good trading results the past couple weeks. Big caps continue to hit new highs while mid and small begin to roll over. Some lower-priced miners have been volatile and appear to be staging for another run, particularly GMO.

BID, COMS long potential.
TSCM has been a good short. SUNW may be OK short for track potential market pullback.

This is interesting, and may spur opening of a futures account.
CME Snowfall Futures
CME Boston Seasonal Strip November Snowfall Futures
Trade Unit $200 times the Respective CME Seasonal Strip Snowfall Index
Point Descriptions 1 Point = 1 inch = $200.00
Contract Listing Oct, Nov, Dec, Jan, Feb, Mar and Apr
Strike Price Interval N/A
Product Code Contracts reflect City and Start month.
SV has an October start month.
SX has a November start month.
SZ-December.
SF-January.
SG-February
SH-March.
The following Cities are supported:
Clearing & Ticker:
SBV/SBH=Boston
SXV/SXH=New York City

Ocean Power Technologies

alarm:clock newsletter

Power Generating Buoy Maker Ocean Power Sets IPO Terms
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Pennington, NJ-based Ocean Power Technologies has set its proposed IPO terms to 5M shares at $20 - $22 per share. It plans to trade on the Nasdaq under ticker symbol OPTT with UBS serving as lead underwriter. Shareholders include Henderson Group.
Ocean Power Technologies is listed on the AIM market of the London Stock Exchange in 2003 under the symbol “OPT.” Ocean Power has revenue of $2M and a net loss of $6M It market cap is $213.7M.
Ocean Power's buoys develop renewable energy from ocean waves. Its system consists of a floating buoy that is loosely moored to the seabed so that it can freely move up and down on the rising and falling of the waves, as well as a power take off device, an electrical generator, a power electronics system and a control system.The power take off device converts the mechanical stroking created by the movement of the unit caused by ocean waves into rotational mechanical energy which drives the electrical generator.The company was awarded an initial contract from US Department of Homeland Security and has had deals to operate buoys in Spain and France.