Knobias Clip Report (10-22-2007)
Submited From Knobias ClipReport
NAPS/PLUG/SILC: Three Names Pop Up on Many Radar Screens
Monday’s session saw the Dow dive then recoup the losses, finishing ahead on the day by 45 points. Tuesday’s session will most likely be dominated with talk of Apple earnings which were set to be released after the bell on Monday. Following last week’s steep decline, a stabilization in the market was noted.
In the small cap space, three stocks found the radar screens of many traders. Two of the three had some fairly encouraging news while one was void of any announcements.
The first, Plug Power Inc. (PLUG), through its wholly owned subsidiary Cellex Power Products, Inc., announced a purchase order for GenDrive(TM) fuel cell power units from Wal-Mart Stores for use in lift trucks at one of the company's distribution centers. This is Plug Power's largest single GenDrive order to date, although the specific terms were confidential.
It was noted that the order followed a successful beta trial at two Wal-Mart distribution centers in Ohio in late 2006. During the trial, the 12 fuel-cell-powered pallet trucks ran in live, working conditions for more than four months, logging more than 18,000 hours and 2,100 indoor fuelings by pallet truck operators. The Cellex Power fuel cells demonstrated environmental and operator benefits. The new units will power pallet trucks used at Wal-Mart's food distribution center in Washington Court House, Ohio, replacing the lead- acid batteries that are traditionally used in such applications.
This fuel cell order aligns with Wal-Mart's strategy to integrate innovative technologies into its business plan that reduce operating cost and help the environment. The purchase of these fuel cell power units is equivalent to removing approximately 60 cars from the highway in southeastern Ohio in terms of CO2 and greenhouse gas emissions.
Following the announcement, PLUG shares gapped open to highs of $4.75 before closing up only 18% at $3.51.
The second was Napster Inc. (NAPS). The Company, in collaboration with AT&T, unveiled a new service on Monday that allows its subscribers to download music from Napster Inc. directly to their cellphones, keeping pace with services already offered by rival wireless carriers. It represents a shift in AT&T's stance on mobile music to an "over-the-air" download model versus "sideloading," or transferring music from a computer to a phone through a physical connection. The service, Napster Mobile, is an expansion of AT&T's foray into music. In July, it began a download service called eMusic, which catered to the independent scene. Napster Inc.'s entire music catalog of more than 5 million songs will be available for wireless download starting early next month. Following that announcement, Napster shares were up 4% on 307K shares traded.
The last name was Silicom Limited (SILC). The Company is an Israeli based provider of high-performance server/appliances networking solutions. The Company's flagship products include a variety of multi-port Gigabit Ethernet, copper and fiber-optic, server adapters and innovative BYPASS adapters designed to increase throughput and availability of server-based systems, security appliances and other mission-critical gateway applications.
On Monday, shares plummeted 24% on over 1.28M shares traded on no major news. It was reported that the name was removed from the naked short list by Buyins.net, while earnings weren’t expected until October 29th, before the market open.
In any event, the names were certainly on many radar screens and are worth further looks. Investors would be wise to watch.
Visit 1800blogger to see all of our industry leading blogs
Labels: Knobias, NAPS, PLUG, SILC, small cap stocks
