Tag - Usna

I rarely, if ever, discuss options in the Small Cap Investor Daily.

However, the number of questions from readers has recently picked up regarding this fast growing investment approach. And I have research analyst Andy Crowder on our team - he has over a decade of experience trading options and publishing his strategies for a select group of subscribers.

 

So I've decided to set some time aside to discuss options and how to use them appropriately with small cap stocks. Hopefully this will help you begin to understand that options offer endless possibilities to increase your returns in an up, down or range-bound market.

VisionChina Media Inc. (Nasdaq:VISN), Olympic Steel Inc. (Nasdaq:ZEUS) and First California Financial Group Inc. (Nasdaq:FCAL) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: BroadVision Inc. (Nasdaq:BVSN), Monroe Bancorp (Nasdaq:MROE), USANA Health Sciences Inc. (Nasdaq:USNA), True Religion Apparel Inc. (Nasdaq:TRLG), Timberland Bancorp Inc. (Nasdaq:TSBK) and Quaker Chemical Corp. (Nasdaq:KWR).

Global Crossing Ltd. (Nasdaq:GLBC), Inter Parfums Inc. (Nasdaq:IPAR) and American Woodmark Corp. (Nasdaq:AMWD) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: WNS Holdings Ltd. (Nasdaq:WNS), Barnes Group Inc. (Nasdaq:B), USANA Health Sciences Inc. (Nasdaq:USNA), AnnTaylor Stores Corp. (Nasdaq:ANN), Tollgrade Communications Inc. (Nasdaq:TLGD) and NACCO Industries Inc. (Nasdaq:NC).

Polypore International Inc. (Nasdaq:PPO), Force Protection Inc. (Nasdaq:FRPT) and USANA Health Sciences Inc. (Nasdaq:USNA) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: GrafTech International Ltd. (Nasdaq:GTI), Atlas America Inc. (Nasdaq:ATLS), Bronco Drilling Co Inc. (Nasdaq:BRNC), 3D Systems Corp. (Nasdaq:TDSC), Unifirst Corp. (Nasdaq:UNF) and TNS Inc. (Nasdaq:TNS).

Microsemi Corp. (Nasdaq:MSCC), USANA Health Sciences Inc. (Nasdaq:USNA) and OSI Systems Inc. (Nasdaq:OSIS) are among the  lead small-cap percentage losers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: First Citizens Bancorp Cleveland (Nasdaq:FCZA), Celadon Group Inc. (Nasdaq:CLDN), China Biotics Inc. (Nasdaq:CHBT), Hiveld Steel Depository Receipt (Nasdaq:HSVLY), Digital River Inc. (Nasdaq:DRIV) and Fuqi International Inc. (Nasdaq:FUQI).

DryShips Inc. (Nasdaq:DRYS), Solarfun Power Holdings Co Ltd. (Nasdaq:SOLF) and USANA Health Sciences Inc. (Nasdaq:USNA) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Canadian Solar Inc. (Nasdaq:CSIQ), VisionChina Media Inc (Nasdaq:VISN), OYO Geospace Corp. (Nasdaq:OYOG), Synta Pharmaceuticals Corp (Nasdaq:SNTA), Tower Group Inc. (Nasdaq:TWGP) and Northwest Pipe Co (Nasdaq:NWPX).

DryShips Inc. (Nasdaq:DRYS), Green Mountain Coffee Roasters Inc. (Nasdaq:GMCR) and USANA Health Sciences Inc. (Nasdaq:USNA) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Arthrocare Corp. (Nasdaq:ARTC), Eagle Bulk Shipping Inc. (Nasdaq:EGLE), American Capital Agency Corp. (Nasdaq:AGNC), Fuel Systems Solutions Inc. (Nasdaq:FSYS), Accuray Inc. (Nasdaq:ARAY) and Gencor Industries Inc. (Nasdaq:GENC).

It’s hard to go wrong in a business where some of your best customers are also your best salespeople.

Just ask Usana Health Sciences Inc. (Nasdaq:USNA), a nutritional products maker based in Salt Lake City. Usana has built a global following through its direct-selling model, which contracts thousands of independent sales associates, most of whom began as Usana customers.

For those commissioned associates, direct selling is a thriving industry totaling $30.8 billion in the United States and about $112 billion worldwide last year, according to the Direct Selling Association. But the numbers don’t necessarily translate well for all consumer product companies, and those designated as direct sellers tend to come and go, the DSA says.

Usana arrived in 1992 and hasn’t gone anywhere but up. Annual revenue has more than doubled in the past five years, eclipsing $420 million in 2007. Usana credits a trusted product line and a proven marketing strategy for its continued success.

The company made three significant announcements at its annual convention on Aug. 28: a new energy drink product called Rev3; expansion into the Philippines; and new compensation incentives for associates.

Spurred by a challenge from CEO David Wentz, Usana scientists came up with an alternative to the sugary, “crash-and-burn” energy drinks common in today’s market. The resulting Rev3 is a green-tea based drink that contains an advanced formula of antioxidants as well as Usana’s patented olive-fruit extract, Olivol.   

“This is a product that will appeal to a wide audience,” Wentz said in . . .

USANA Health Sciences Inc. (Nasdaq:USNA) is up 9% today after the company said before the opening that it had settled its lawsuit with Barry Minkow and his Fraud Discovery Institute. USANA sued Minkow for alleged market manipulation and defamation. According to the Salt Lake City-based company’s statement, USANA has agreed to withdraw its suit. Minkow and his Fraud Discovery Institute will no longer trade the stock, will remove information about the company from the Internet and will not publish further statements about USANA, according to the settlement.

In today’s trading, shares of nutritional and personal-care product maker USANA are at $31.94 at 2:22 p.m. ET, up $2.59 from Friday’s close.

Quest Energy Partners L P (Nasdaq:QELP), Crucell NV ADR (Nasdaq:CRXL) and USA Truck Inc (Nasdaq:USAK) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: TASER International Inc (Nasdaq:TASR), USANA Health Sciences Inc (Nasdaq:USNA), DrdGold ADR (Nasdaq:DROOY), ARGON ST Inc (Nasdaq:STST), Cepheid (Nasdaq:CPHD) and Clean Energy Fuels Corp (Nasdaq:CLNE).

Here are the most actively traded companies among small caps:

Orion Energy Systems Inc (Nasdaq:OESX), Alto Palermo SA (Nasdaq:APSA) and eResearch Technology Inc (Nasdaq:ERES) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Chimera Investment Corp (Nasdaq:CIM), Nymagic Inc (Nasdaq:NYM), Approach Resources Inc (Nasdaq:AREX), USANA Health Sciences Inc (Nasdaq:USNA), Heritage Financial Group (Nasdaq:HBOS) and Navigators Group Inc (Nasdaq:NAVG).

Here are the biggest percentage losers among small caps:

USANA Health Sciences Inc. (Nasdaq:USNA) is down 11% today after the pre-market announcement that Gull Holdings Ltd. had terminated its offer to take USANA private. Gull Holdings said it would not receive tenders of enough shares to meet the offer’s non-waivable condition that it own at least 90% of the outstanding shares.

“While we are disappointed that we were not able to complete the offer, we believe that USANA shareholders have sent us a strong message about their confidence in the long-term prospects of the company,” said Myron Wentz, founder and CEO of Gull, in a statement. “Our mission has always been to develop and provide the highest quality, science-based health products, distributed internationally through network marketing. We will continue to pursue this mission for the benefit of all shareholders.”

Shares of Salt Lake City-based USANA are at $24.96 at 11:10 a.m. ET, down $2.99 from Tuesday’s close. The stock is down 51% from a year ago.

Casella Waste Systems Inc (Nasdaq:CWST), Pyramid Oil Co (Nasdaq:PDO) and Pantry Inc (Nasdaq:PTRY) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: ORBCOMM Inc (Nasdaq:ORBC), Array BioPharma Inc (Nasdaq:ARRY), Summit Financial Group Inc (Nasdaq:SMMF), United States Lime & Minerals Inc (Nasdaq:USLM), Glu Mobile Inc (Nasdaq:GLUU) and USANA Health Sciences Inc (Nasdaq:USNA).

Here are the biggest percentage gainers among small caps:

Royale Energy Inc (Nasdaq:ROYL), Chemgenex Pharm (Nasdaq:CXSP) and National Coal Corp (Nasdaq:NCOC) are among the most actively traded companies in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: IMAX CORPORATION (Nasdaq:IMAX), OMNI Energy Services Corp (Nasdaq:OMNI), USANA Health Sciences Inc (Nasdaq:USNA), UAL Corp (Nasdaq:UAUA), China Precision Steel Inc (Nasdaq:CPSL) and Crocs Inc (Nasdaq:CROX).

Here are the most actively traded companies among small caps:

Iomai Corp (Nasdaq:IOMI), Fuel Systems Solutions Inc (Nasdaq:FSYS) and USANA Health Sciences Inc (Nasdaq:USNA) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $750 million.

Avant Immunotherapeutics Inc (Nasdaq:AVAN), LaserCard Corp (Nasdaq:LCRD) and North American Palladium Ltd (Nasdaq:PAL) are also among the biggest percentage gainers.

Here are the biggest percentage gainers among small caps:

Small-cap stocks are treading shallowly in the red midday, while the other major indices remain deeper in the red after Fed Chairman Bernanke said that markets are “far from normal,” oil prices hit record levels, major brokerage houses on the Street were downgraded and housing prices saw the steepest decline in 26 years.
 
At 1:19 p.m. ET, the Russell 2000 (NYSE:IWM) edged down 1.45, or 0.2%, at 731.78, while the Dow had skidded 84.27, 0.65%, at 12,792.04.

Federal Reserve Chairman Ben Bernanke spoke earlier this morning about liquidity issues in the financial markets. He said that the liquidity measures taken by the Fed to ease the credit crisis have helped, but that the markets are still “far from normal.” Also slated to speak this afternoon on the state of the economy are Federal Reserve San Francisco President Janet Yellen, Kansas City Fed President Thomas Hoenig and Dallas Fed President Richard Fisher.

“I believe that the current credit problems will take some time to resolve. Therefore, monetary policy will remain loose for much longer than many are anticipating,” said Doug Roberts, chief investment strategist for ChannelCapitalResearch.com, an independent research firm focusing on investment strategies using the Federal Reserve's impact on the stock prices. “You still have negative interest rates. Eventually as fear abates and as oil prices stabilize, small caps are going to start to rally because of the liquidity infused into the system. You’re even starting to see small caps at least in parity with large caps this year.”

Today’s pullback comes on the heels of Monday’s robust 1% advance. Oil reversed course nearing $127 a barrel intra-session on concerns that Iran may cut crude oil production. Gold slumped $16.60 per ounce to $868, as the greenback gained ground against the euro and the yen.

In other bleak economic news, the National Association of Realtors reported this morning that single-family home prices declined 7.7% in the first quarter, . . .

Small-cap stocks edged slightly lower, pulled down by profit-taking from traders who caught the rally Monday, by analyst downgrades for several brokerage firms and by ongoing jitters over crimped consumer spending. However, better-than-forecast retail sales data generated some buying interest this morning. At 9:55 a.m. ET, the Russell 2000 (NYSE:IWM) was down 2.01, or 0.27%, at 731.23.

The retail sales report sported a headline figure at minus 0.2%, which was in line with the forecast, but the ex-autos figure was up 0.5%, which was well above the consensus of 0.2%. The surprisingly stout sales figure sparked a reversal in overnight selling in stocks, pushing stock index futures and index basket products into the green ahead of the regular opening.

The market has seen a run of late where economic data surprises on the upside, but many in the economic community remain unconvinced that a recovery in equities or the recent above-forecast data means that the economy is out of the woods. “Equity prices in the United States, Europe, Japan and India show a noticeable recovery from this tumultuous period, while stock prices indexes in China, Brazil and Russia have also posted gains from their recent lows. We remain skeptical because the worst of the weakness in U.S. business activity is not here yet,” Asha Bangalore, economist with Northern Trust, said in an email.

The market could continue to bask in the glow today of the Hewlett-Packard (NYSE:HPQ) purchase of Electronic Data Systems (NYSE:EDS) for $12.6 billion, which will heighten the anticipation of additional merger and acquisition activity. If there is M&A activity in large caps, certainly there are deals to be done for small-cap companies as well.

Coming into today’s session, the market was on the defensive in overnight trading on a dip in European shares following a jump in U.K. inflation data and write-downs from a large French bank. In addition, an Oppenheimer analyst downgraded . . .

The Russell 2000 (NYSE:IWM) futures are higher and the small-cap index will likely open in the green.

Personal income rose a more-than-expected 0.5% in February, the U.S. Commerce Department reported this morning. Economists were expecting an increase of 0.3%. The same report also showed that personal spending increased 0.1%, in line with projections.

The bullish pre-market sentiment is in part in reaction to news that Citigroup Inc. (NYSE:C) recommended buying shares of financial services company Lehman Brothers Holdings Inc. (NYSE:LEH).

The Russell 2000 ended the day Thursday with a thud, closing out near the lows at 692.39, down 9.73, or 1.39%, for the day. The 10:00 a.m. ET sentiment figures could also stir some reaction in the market.

It would provide a lift for the index to close out the week above 685, to help validate the recent upward draft off the lows. In addition, a close on Monday above 686.05 would provide the first monthly close above opening levels since October, which is an astoundingly long time for any market. For short-term traders, support comes in Friday at 686, 680 and 674. Meanwhile, resistance is pegged at 700, 706 and 714.

Nutritionals, personal care and weight management products manufacturer USANA Health Sciences, Inc. (Nasdaq:USNA) lowered its first-quarter guidance today due to a year-over-year and consecutive quarter decline in the company’s U.S. business, which accounts for roughly two-thirds of the company’s sales volume. Shares plummeted 33%, or $8.89, to $18.05.

For detailed price information and recent news stories about USANA Health Sciences, click USNA. 

The Russell 2000 (NYSE: IWM) has climbed more than 1% on news of a stock buyback program at International Business Machines Corp. (Nasdaq: IBM). At 3:04 p.m. ET, the small-cap index was up10.16 points, or 1.43%, to 720.62. The Dow Jones Industrial Average (INDU) had climbed 127.73 points, or 1.02%, to 12,697.95.

Stocks small and large have shed their earlier volatility and have been posting solid gains since 11 a.m. ET, when news came out that IBM has authorized a $15 billion share buyback program that could boost 2008 earnings per share.

Shares of Mannatech, Inc. (Nasdaq: MTEX), which develops and sells nutritional supplements, topical and skin care products, are higher following news that the Coppell, Texas-based company has approved a quarterly cash dividend of $0.09 per share of common stock, payable on March 28 to shareholders of record at the close of business on March 7.

“The financial position of our company supports our continuing dividend program and represents our belief in the quality of our products, and the future of our company,” said president and CEO Terry Persinger in a press release. “This marks the 12th consecutive quarter that our board has declared a dividend.”

Similarly, shares of competitor USANA Health Sciences, Inc. (Nasdaq: USNA) are rising on news that the Salt Lake City, Utah-based company’s nutritional drink mix has become the first meal replacement product in the Australian market to carry the Glycemic Index symbol. The symbol alerts consumers that the product is healthy.

Usana Health Sciences, Inc. (Nasdaq: USNA) CEO Myron Wentz said the embattled company remains confident in its business outlook and the investment opportunity it provides. The multi-level marketing company, which makes nutritional and skin-care products and sells them through a network of associates, was recently the subject of a Securities and Exchange Commission inquiry that closed in early January. Wentz made the comments during a midday conference call.

After the close of trading on Tuesday, Usana reported fourth-quarter earnings of $11.1 million, or $0.61 per share, compared with $11 million, or $0.67 per share, a year earlier. Wall Street analysts, on average, predicted quarterly earnings of $0.66 per share.

Usana Health’s quarterly net sales totaled $108.7 million, up 11% from $98.1 million during the year-ago period. Analysts projected $109.7 million in revenue.

“These results did not meet our expectations,” David Wentz, Usana’s president, said.

Selling, general and administrative expenses during the fourth quarter climbed 23% to $23.7 million, from $19.2 million during the year-ago quarter. Myron Wentz said the increase was due to wage-related and facility costs, along with an increase in legal expenses. The company incurred $0.5 million due to a class-action lawsuit that asserts Usana operates an illegal pyramid scheme, the chief executive said.

The Russell 2000 (NYSE: IWM) is rising following news that U.S. productivity grew more than expected in the fourth quarter.

At 10:20 a.m. ET, the small-cap index had climbed 3.35 points, or 0.48%, to 704.93. The Dow Jones Industrial Average (INDU) had advanced 54.14 points, or 0.44%, to 12,319.27.

Worker productivity grew more than expected during the fourth quarter, the U.S. Labor Department reported before the start of trading. Productivity increased at an annual rate of 1.8% during the final three months of 2007, above the 0.5% rate expected by economists but below the downwardly revised 6% pace during the third quarter.

Productivity for the entire 2007 rose 1.6%, compared with 1% in 2006.

Increases in productivity allow for an increase in production without a corresponding increase in prices or a jump in the company’s costs.

Unit labor costs, which are a key measure of inflation, rose 1.6% after falling 1.9% in the third quarter. Economists were expecting fourth-quarter unit labor costs to rise 3.8%. Increases in labor costs must be matched by productivity increases in order to keep inflation in check.

The unexpectedly bullish productivity news lifted all the major U.S. indices out of the gate, but the Russell 2000 gave investors a scare when it briefly dipped into the red shortly before 10 a.m. ET.

The Russell 2000 (NYSE: IWM) is falling on news of worse-than-expected earnings forecasts from major financial players. At 1:26 p.m. ET, the small-cap index had retreated 8.53 points, or 1.18%, to 711.68. The Dow Jones Industrial Average (INDU) was down 207.20 points, or 1.61%, to 12,645.89.

The bears are dominating trading as stocks small and large are losing ground on news that the strain from the problems in the subprime mortgage sector has spread.

Merrill Lynch & Co., Inc. (NYSE: MER), the world’s largest brokerage house, reported before the start of trading that it may incur $15 billion in losses from investments in securities backed by mortgage loans.

That’s more than twice what the New York-based company had initially projected and an indicator that the problems stemming from the stagnation in the U.S. housing market continue to ripple through financial markets.

More bearish news came from luxury jewelry seller Tiffany & Co. (NYSE: TIF), which lowered its guidance for the fiscal year, and credit card issuer American Express Co. (NYSE: AXP), which announced a fourth-quarter pretax charge of about $440 million due to slower spending by card members and an increase in delinquencies.

The American consumer is still spending money, but retail sales have slackened due to high energy costs.

USANA Health Sciences, Inc. (Nasdaq: USNA) shares are soaring after the Securities and Exchange Commission said it will not take action against the nutritional and personal-care products maker.

"USANA greatly appreciates the diligence of the SEC in completing its informal inquiry, and we are pleased to put this matter behind us," David A. Wentz, president of USANA, said in a statement. "We have always been confident about the integrity of our company and take pride in our direct selling business model.”

In March, the company said it was under investigation by the SEC due to fraud allegations and other questions over its business model. The Salt Lake City, Utah-based company still faces several lawsuits.

In morning trading, USNA shares are up 23.19%, or $8.25, at $43.82. Over the last 52 weeks, shares have ranged from $28.51 to $61.80.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are falling on more news of financial trouble stemming from the subprime meltdown.
 
At 10:33 a.m. ET, the small-cap index had lost 9.64 points, or 1.34%, to 710.57. The Dow Jones Industrial Average (INDU) was off 184.12 points, or 1.43%, to 12,668.97.

Stocks opened in negative territory following news that Merrill Lynch & Co., Inc. (NYSE: MER) may suffer $15 billion in losses from investments in securities backed by mortgage loans.

The loss, which is twice what the New York-based investment bank had initially estimated, is an unpleasant reminder of how shockwaves from the stagnating U.S. housing market continue to ripple through financial markets.

There was more bearish news from the financial sector as credit card issuer American Express Co. (NYSE: AXP), announced that it will absorb a fourth-quarter pretax charge of about $440 million due to slower spending by card members and an increase in delinquencies. The company said that it now expects fourth-quarter earnings below the level a year earlier.

Many mortgage lenders nationwide have taken a hit and even declared bankruptcy as U.S. home prices have stagnated and many borrowers have defaulted on their loans and gone into foreclosure. Lenders frequently packaged loans and sold them as securities to financial companies, which have in turn also incurred billions in losses.

The Russell 2000 (NYSE: IWM) futures are down and the small-cap index will open with a decline on news of more mortgage losses.

Small-cap stocks are set for a bearish opening following news that Merrill Lynch & Co., Inc. (NYSE: MER) may suffer $15 billion in losses from investments in securities backed by mortgage loans. The loss is almost twice what the New York-based investment bank had initially estimated and an unpleasant reminder of how shockwaves from the stagnating U.S. housing market continue to ripple through financial markets.

Providing more unpleasant news is credit card issuer American Express Co. (NYSE: AXP), which announced that it will absorb a fourth-quarter pretax charge of about $440 million due to slower spending by card members and an increase in delinquencies. The company said that it now expects fourth-quarter earnings below the level a year earlier.

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• AmCOMP Inc. (AMCP), up 41% on news it will be acquired by Employers Holdings, Inc. (NYSE: EIG).
• Columbia Bancorp (CBBO), up 20%.
• USANA Health Sciences, Inc. (USNA), up 16% on news an informal inquiry by the U.S. Securities and Exchange Commission has ended with no action.

Biggest percentage losers:

• Cadence Pharmaceuticals, Inc. (CADX), down 47% on news a clinical trial did not meet its primary endpoint.
• Opnext, Inc. (OPXT), down 14% on news that it expects fiscal third-quarter sales below Wall Street’s projections.
• Wavecom S.A. (WVCM), down 5%.

USANA Health Sciences, Inc. (Nasdaq: USNA) shares are down after the nutrition and personal care products maker and multi-level marketer announced after Tuesday’s closing that its third-quarter earnings beat Wall Street estimates, but revenue missed projections.

The Salt Lake City-based firm reported third-quarter income of $11.7 million, or $0.70 per share, above estimates of $0.68 per share and up from $10.4 million, or $0.56 per share, a year earlier. Revenue for the three months ended Sept. 29 rose to $106.2 million, slightly below analyst projections of $106.4 million and compared with $92 million during the same period of 2006.

"We are pleased to have achieved double-digit growth in the number of active associates and in net sales in the North American region," Dave Wentz, USANA’s president, said in a statement. "Both the Canadian and Mexican markets have contributed to this region's strong sales growth."

During the third quarter, net sales in the Asia Pacific region increased 25.7% to $39.6 million, compared with the third quarter of the prior year.

"The Asia Pacific region continues to be a healthy market for USANA," Wentz said. "This region has been contributing an increasing share of our growth, led by Hong Kong and Australia-New Zealand, and we anticipate that the Malaysian market will play an increasingly important role in this region. We continue to focus the majority of our efforts on solidifying and growing our 13 core markets."

USANA says it expects net sales for the fourth quarter to be in the range of $108 million to $110 million, compared with analyst expectations of $111.96 million. The firm expects earnings of between $0.66 and $0.68 per share for the fourth quarter, compared with Wall Street estimates of $0.68 per share.

Accredited Home Lenders Holding Co. (Nasdaq: LEND), Cumulus Media Inc. (Nasdaq: CMLS) and Hoku Scientific, Inc. (Nasdaq: HOKU) are among the most actively traded companies in Friday pre-market trading among those with market capitalizations under $500 million: