Tag - Hon

The tragedy in Japan points to the negative potential impact of living in the nuclear age: dangerous byproducts from energy production, such as radiation. But it's not just a reactor meltdown in Japan that needs to be monitored - there are also many types of routine waste generated today in the U.S. that need to be properly disposed of.

Small-cap stocks edged higher on the opening, underpinned by a GDP report that wasn’t as bad as feared and by a smattering of decent earnings reports on the small-cap front that lifted the Russell relative to the large-cap indices. But those early gains were trimmed as the market remains concerned about the economy and corporate profits. At 10:03 a.m. ET, the Russell 2000 (NYSE:IWM) was down 0.17, or 0.04%, at 453.07.

The quarterly GDP report came in at minus 3.8%, which was quite a bit better than feared: the pre-release forecast called for a slide of 5.3%. Even though the report showed less contraction than expected in the economy, this still marked the worst showing for the U.S. since 1982. In addition, consumer spending dropped for two consecutive quarters for the first time since 1990-1991 as people struggle with sinking home values, mounting job losses and stock market devaluation. There was some concern that the “upside” surprise on GDP only delays the pain, especially as corporate layoffs have escalated in January.

While the GDP report was the primary target on everyone’s radar this morning, there were also economic releases on the employment cost index (it rose 0.6%, about what was expected); the Chicago Purchasing Manager’s Survey; and the Michigan sentiment survey. The Chicago headline figure came in at 33.3, which was below the forecast of 34.9 and which marked a new cycle low for the reading on Midwest manufacturing. The market appeared to slide after the Chicago number came out. Meanwhile, the Michigan figure was at 61.2, relatively close to the projection of 61.9.

One measure of just how ugly things have become, the Goldman Sachs Analyst Index (GSAI), a survey of Goldman’s equity analysts across a range of sectors, . . .

U.S. stocks are expected to open flat to higher, with concerns about declines in Asian equities overnight and sloppy corporate profit reports countered by a better-than-expected tally on GDP. The Dow is called flat to 15 points higher, while the Russell 2000 (NYSE:IWM) is seen opening near steady levels at 453.25.

The GDP report headline figure came in at minus 3.8%, which was much better than expected. The consensus forecast was for a slide of 5.3%. Even though the number beat the projection, it was still the worst showing for the U.S. economy since 1982.

In overseas action, Europe was slightly lower ahead of the U.S. open, while Asian equities tumbled 1.6%, pulled down by losses in bank and tech stocks, even though Hong Kong shares were up 0.9% on hopes for rate cuts out of China.

On the U.S. corporate front, Amazon.com (Nasdaq:AMZN) and SunPower corp. (Nasdaq:SPWRA) beat the estimate and could attract buyers early today. However, as usual the bulk of the earnings news was less upbeat, with Proctor & Gamble Co. (NYSE:PG) coming in near the forecast, but with sloppy sales numbers. That same theme was seen for Honeywell International Inc. (NYSE:HON). Dow stock Caterpillar Inc. (NYSE:CAT) could be on the defensive following an analyst . . .

Small-cap stocks tumbled hard on the opening, pulled down by terrible housing starts data, fear of a recession and expiration worries, which countered positive earnings news and another dip in Libor rates overnight. At 9:57 a.m. ET, the Russell 2000 (NYSE:IWM) was off 11.14 or 2.08%, at 525.44. Small-caps were leading the way down in equities, which was a troubling signal ahead of the weekend.

The housing starts report came in woefully weak, down 6.3% with the annual rate at 817,000 units, which was well below the forecast of 875,000. The overall rate is the slowest pace since January 1991 and the rate on single-family home units was the lowest in more than 26 years.

The Michigan sentiment survey came in at 57.5, which was well below the forecast of 67.0 and off the September final reading of 70.3. The market had little immediate reaction to the report.

Today marks expirations for stock options, which could add some volatility into the mix. The market has obviously been trending lower for the month, which keeps the bias for expirations on the bearish side of the ledger.

In an op-ed piece in the New York Times, Warren Buffett, the “Oracle of Omaha” and the richest man in America, said that he was buying U.S. stocks. He wrote that the market will likely move higher “perhaps substantially so, well before either sentiment or the economy turns up.” In addition to his stunning success as an investor and buyer of companies, Buffett’s folksy personae has generated quite a following . . .

One man’s trash can be another man’s treasure — especially during recessionary periods. To unearth profits in the unlikeliest of places, waste management companies are generally considered defensive investments since they provide essential services and have long-term contracts. Not bad, especially when you’re Waste Services Inc. (Nasdaq:WSII) and American Ecology Corp. (Nasdaq:ECOL), two fast-growing waste management companies.

Demand for hazardous waste cleanup grew rapidly during the 1970s and 1980s as a result of new environmental laws and actions by federal and state agencies to clean up contaminated sites under the federal Superfund law. Hazardous waste cleanup is a $2 billion North American market today, not including the much larger industrial maintenance market. Barriers to entry are huge because of the arduous federal, state, provincial and local permitting processes. No new competitors have entered North America in the past decade and as a result, established players such as American Ecology and Waste Services are benefiting from more stable pricing and new regulatory requirements that increase in-house disposal costs and encourage outsourcing.

Waste Services provides collection, transfer, disposal and recycling services for commercial, industrial and residential customers in the United States and Canada. The company collects trash for approximately 84,000 commercial and industrial customers and 8.4 million residential homes. The terms of its contracts are typically one to five years for commercial customers and three to 10 years for residential services under contracts with municipalities.

The company operates in the Ontario market where it holds the No. 1 or No. 2 market share in the areas it serves, and in Western Canada, where it has leading market shares in Alberta and British Columbia. Waste Services also operates in Florida, where it ranks No. 3 in market share and No. 2 in disposal capacity. The company . . .

Small-cap stocks charged higher Friday, giving beleaguered bulls a happy weekend sendoff. The Russell 2000 (NYSE:IWM) rose 13.07, or 1.85% to 721.07, the highest daily close since mid-February as investors embraced the latest batch of earnings numbers with open arms.

In a sense, it was a perfect storm of broad-based earnings reactions Friday, with Citigroup Inc. (NYSE:C) lifting financials, Google Inc. (Nasdaq:GOOG) fueling technology issues, and Caterpillar Inc. (NYSE:CAT) sparking buying interest in the manufacturing sector.

It perhaps took a little creativity on the part of investors to “spin” the Citigroup story into a positive one, as the company still reported massive debt write-downs and missed the earnings estimate. In essence, investors looked through the headline numbers and decided the story on Citigroup was headed toward happier times.

However, no such rose-colored glasses were needed for Google or Caterpillar. Google shot 20% — or about $90 bucks a share — as earnings topped estimates, and Caterpillar, which climbed about 8%, also beat their forecast despite sluggish economic conditions in the manufacturing sector in recent months. Just to add a little extra good vibes into the mix, another manufacturing giant, Honeywell International Inc. (NYSE:HON) also reported strong earnings and rose nearly 6% on the day.

April options expirations came into play today, and the market appeared to be out of position on the short side, which likely fueled the rally, said Nick Kalivas, vice president of financial research with MF Global, in a phone interview. In addition, “there . . .

Small-cap stocks kicked off Friday’s session with a bang, with the Russell 2000 (NYSE:IWM) leaping 1.49% in early trading in line with overnight gains fueled by investor response to the latest batch of corporate earnings releases. The Russell shot to a morning high of 719.90, just shy of key chart resistance in the 720.50 zone.

The headline earnings reports came from Citigroup Inc. (NYSE:C), Google Inc. (Nasdaq:GOOG) and Caterpillar Inc. (NYSE:CAT), which provided a “good news” feel to the morning’s action from the financial, technology and manufacturing sectors. Peoria, Ill.-based Caterpillar might not have been rocked much by last night’s 5.2-Richter earthquake in southeast Illinois, but strength in the manufacturing arena is a positive signal given sluggish economic conditions. Also on the manufacturing front, Honeywell International Inc. (NYSE:HON) beat the forecast on its earnings release and was up 4% in early trading this morning.

Some of the headline figures from Citigroup were suspect — for instance, earnings were below the forecast, but write-downs from the credit crunch were not as bad as feared, and investors embraced the news from the standpoint that the worst had already been priced into Citigroup’s valuation. It’s a risky leap of faith, . . .

The Russell 2000 (NYSE:IWM) is poised for a sizable opening leap today following a bout of overnight gains as investors embraced earnings news from big-name companies like Citigroup Inc. (NYSE:C) and Google Inc. (Nasdaq:GOOG). In after-hours trading, the Russell was up about 1.2%, which would translate to a cash opening for the Russell in the 716 zone.

The manufacturing sector has been a worry spot of late, fueled by slumping economic conditions, but Honeywell International Inc. (NYSE:HON) and Caterpillar Inc. (NYSE:CAT) both released earnings above the forecast, so the good news this morning was multi-pronged — tied to financials, technology and manufacturing.

Another positive development overnight was a jump in the U.S. dollar, which climbed about 0.8% versus the euro, and 1.5% versus the Japanese yen. In addition, gold slumped about 3% and crude oil backed down a couple of dollars from Thursday’s record highs.

Citigroup jumped some 6% overnight even though it posted a bigger-than-forecast loss, but investors took the banking giant on good faith that . . .

American Ecology Corp. (Nasdaq:ECOL)
Boise, Idaho
http://www.americanecology.com/

52-week low / high: $18.51 / $26.84
Shares Outstanding: 18.25 million
Market Capitalization: $464 million

Hazardous material might be beneficial for your portfolio. Companies are now mandated by the government — through laws such as the Solid Waste Disposal Act and the Resource Conservation and Recovery Act and the Comprehensive Environmental Response — to dispose of industrial waste and other materials through safe methods. Just how do companies get rid of hazardous waste and comply with federal regulations? Enter American Ecology Corp. (Nasdaq:ECOL), the oldest continuously operating American company that handles, stores, treats and disposes of hazardous and radioactive waste.

Through its U.S. Ecology subsidiary, American Ecology has helped keep a lid on nuclear waste since 1952 and hazardous waste management services since 1968. The Boise, Idaho-based firm handles waste through its facilities in Texas, Nevada, Washington and Idaho.

American Ecology’s customers include some big names. In 2006, Honeywell International Inc. (NYSE:HON) accounted for 38 % of sales and the U.S. Army Corps of Engineers counted for 27%. Other customers include academic institutions, medical facilities, nuclear power plants and steel mills. Along with regular customers, some of its sales are made through large one-time cleaning jobs that can cause unexpected jumps in quarterly revenue. Clean-up projects can last from one week to multiple years.

In 2007, American Ecology’s revenue totaled $165.5 million, up 42% from $116.8 million in 2006 and up 108% from $79.4 million in 2005. Net income during 2007 totaled $19.4 million, or $1.06 per share, compared with $15.9 million, or $0.88 per share, a year earlier.

In terms of Wall Street analyst coverage, February was a positive month for American ecology. During the shortest month of the year, analyst Debra Fiakas of Crystal Equity Research reiterated her "buy" rating on American Ecology, but boosted her price target to $27.25 from $25. On Feb. 8, RBC Capital Markets analyst Jamie Sullivan maintained his "outperform" rating on American Ecology, while raising his price target to $26 from $25. Also on Feb. 8, Sanders Morris Harris analysts reiterated their “buy” rating on American Ecology and raised their price target to $28.50 from $26.50. Likewise on Feb. 8, Wedbush Morgan analysts reiterated their “hold” rating on American Ecology, but raised their price target to $22 from $21.

Even with all the glowing Wall Street coverage, significant risks exist for the firm. A large portion of American Ecology’s business depends upon non-recurring event clean-up projects over which the company has no control. In a regulatory filing, the company said its market is “highly competitive” and faces competition from firms “with much greater resources, service offerings we do not provide and potentially lower pricing.” Some of the firms American Ecology competes with include Waste Management, Inc. (NYSE:WMI), which has a market cap of $16.8 billion, and Clean Harbors, Inc. (Nasdaq:CLHB), with a market cap of $1.3 billion.

Despite the overall market turmoil, shares of American Ecology are up more than 5% in 2008 and more than 30% from the year-ago period. With major indices down during 2008, American Ecology’s stock price movement suggests recession resistance.

Note: American Ecology Corp. (Nasdaq:ECOL) is on the "Watch List" of Growth Report, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, American Ecology displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Growth Report portfolio at a later date.

As a society becomes more open and prosperous, a heightened awareness for increased security is a natural outcome.

With dizzying growth, rapid industrialization and a sweeping transition to a free market economy, China is awash in cash and businesses are booming. Security and monitoring have become a high priority for corporate and government spending.

One standout in China's security market is China Security & Surveillance Tech. Inc. (NYSE: CSR), a player in the fast-growing security and surveillance systems segment. Based in Shenzhen, China Security has emerged as a domestic leader in a highly fragmented industry. The company manufactures, distributes, installs and maintains security and surveillance systems throughout the mainland, leveraging its extensive network of over 200 sales representatives and several dozen distributors.

Originally founded in 2001, the firm completed a reverse merger in late 2005, and then began a wave of buyouts in an agressive acquisition strategy. In 2006, the company acquired several security and surveillance businesses, including Shanghai Chengfeng Digital Technology Co. Ltd., Jian Golden An Ke Technology Co. Ltd., Shenyang Golden Digital Technology Co. Ltd., Shenzhen Golden Guangdian Technology Co. Ltd. and Jiangxi Golden Digital Technology Co. Ltd. In 2007, China Security acquired Changzhou Minking Electronics Co., Ltd. and Ocean Pacific Technology Limited, a holding company that controls Hangzhou Tsingvision Intelligence System Co. Ltd., a digital audio and video software developer.

Since snapping up competitors as part of its growth strategy, China Security has seen impressive growth, and the consolidations are expected to contribute to 50% of 2008 revenue. The integration of acquisitions along with organic growth fueled by a diverse customer base and contracts spawned from government initiatives to have surveillance systems installed in government buildings, public areas, traffic intersections and various private businesses paints a rosy future for China Security. (A recent study by Privacy International and the Electronic Privacy Information Center already pegs China as a major surveillance state, along with the United States, United Kingdom, Russia and others.)

Small and medium-sized businesses are increasingly turning to on-demand software downloaded from the Internet as an effective way to reduce IT spending; Salary.com, Inc. (Nasdaq: SLRY) and Taleo Corporation (Nasdaq: TLEO) are two leading providers that are reaping the benefits of the growing software need.

Gartner, a research firm, expects sales of on-demand software to grow to $11.5 billion by 2011 from $5.1 billion this year. That growth outlook is three to four times higher than projections for conventional business software. The advantages of on-demand software are that it is relatively inexpensive to implement and easily integrated with packaged software already in place. On-demand software is widely deployed in payroll, merchant services, human resources and customer relationship management applications.

Salary.com provides on-demand compensation software that helps small businesses manage payroll and reduce employee turnover while avoiding significant investments in hardware and IT staffing.

Salary.com software is integrated with a proprietary compensation database that lists market pricing for over 3,000 positions across numerous industries.

The Russell 2000 (NYSE: IWM) moved up and Dow Jones Industrial Average (INDU) cleared the 14,000 mark for a new record close. The small-cap index added 5.94 points, or 0.70%, to 851.85. The Dow gained 82.19 points, or 0.59%, to 14,000.41. The record close for the Russell 2000 is 855.77, established on July 13.

The bulls seized the day from the start, following a series of upbeat earnings reports from some major players.

German business software solutions provider SAP AG (NYSE: SAP) outpaced expectations with a 10% jump in quarterly profit, while Armonk, N.Y.-based IT giant IBM Corp. (Nasdaq: IBM) saw its quarterly profit rise 12%, its most impressive result in five years.

And that wasn’t all.

The Russell 2000 (NYSE: IWM) is gaining and the Dow Jones Industrial Average (INDU) is flirting with 14,000 on news of upbeat earnings reports.

At 10:27 a.m. ET the Russell 2000 was up 5.23 points, or 0.62%, to 851.14. The Dow Jones Industrial Average had added 74.47 points, or 0.54%, to 13,992.69.