Why Didn’t I Buy That? Wednesday, March 4, 2009

Today’s three stocks went up an average of 45.2% today.  Over the last year, these stocks returned an average of -81.58%.

#1. Eagle Bulk Shipping, Inc. (EGLE) +51.69%

#2. Gerber Scientific (GRB) +43.24%

#3. Resource Capital Corp (RSO) +40.67%

 

#1. Eagle Bulk Shipping, Inc. (EGLE – $4.49) www.eagleships.com

Shares of EGLE soared 51.69% today on volume of 7.7 million shares traded.  Even with the jump in price, EGLE remains 87.6% off of it’s past year high of $36.24 reached on May 8 of last year.

Who Are They?

Well, the name kind of says it all.  Eagle Bulk Shipping ships iron ore, coal, grain, cement and fertilizer across seas.  Their found, Sophocles Zoullas (his real name is Sohpocles, the ancient playwright) is 43 and made $719,000 last year.

Why’d They Go Up So Much Today?

Eagle had a great 4^th quarter earnings call yesterday.  They reported $15.1 million in net income with a 99.5% fleet utilization rate, a measure akin to inventory turns in the retail sector.  Their fleet includes 23 ships and already has 74% of their fleet’s available shipping days covered by contract. 

What About the Fundamentals?

-       Capitalization: $211M

-       P/E: 3.07

-       Earnings: $1.46

-       Cash: $32.98M

-       Debt: $741.97M

-       Book Value: $10.87

-       Short %: 14.1%

-       Last 52 Week Performance: -88.52% (S&P 500: -47.52%)

#2. Gerber Scientific (GRB – $2.65) www.gerberscientific.com

Gerber Scientific went up 43.24% on volume of 116,582 shares.  Today’s increase  leaves GRB 79% off of its past year high of $12.64 reached on June 19 of last year.

Who Are They?

 Gerber Scientific is not that Gerber.  That Gerber is a subsidiary of Nestle.  Gerber Scientific is a sign making and graphics company headquartered in South Windsor, CT.  Their CEO, Marc Giles, made $849,000 last year.

Why’d They Go Up So Much Today?

 There was no significant news on the stock today, although investors are most likely anticipating a good conference call from GRB tomorrow, March 5, 2009.  The company will be releasing its earnings for the fiscal 3rd quarter before the market opens.  You can listen in on the call at 719-325-4834, access code 6834862.

What About the Fundamentals?

 -       Capitalization: $63.95M

-       P/E: 3.93

-       Earnings: mce_marker.67

-       Cash: $16.4M

-       Debt: $84M

-       Book Value: $6.25

-       Short%: 1.7%

-       Last 52 Week Performance: -76.22% (S&P 500: -47.52%)

 

#3. Resource Capital Corp (RSO – $2.11) www.resourcecapitalcorp.com

Resource Capital shares went up 40.67% on volume of 275,909 shares.  Resource Capital shares are now trading at 80% less than its past year’s high of $10.54 reached on May 12 of last year. 

Who Are They?

Resource Capital is a New York based Real Estate Investment Trust (REIT) that focuses on commercial real estate in the US.  CEO Jonathan Cohen, is just 37, and actually took no salary last year.

Why Did They Go Up So Much Today?

RSO reported net income of .44 cents per share compared to .46 cents last year.  Although the company’s earnings slipped from last year, in this environment, any positive earnings are seen as positive. 

What About the Fundamentals?

-       Capitalization: $53.41M

-       P/E Ratio: 6.78

-       Earnings: $.31

-       Cash: $12.11M

-       Debt: $1.73B

-       Book Value: $9.633

-       Short %: 2.4%

-       Last 52 Week Performance: -80% (S&P 500: -47.52%)

 

AS ALWAYS: This is not, I repeat, NOT stock advice.  This is merely informative and indicative of the types of gains that are being made on a day-to-day basis in the market.  This is NOT an invitation to day trade, which I do not recommend for the average Joe or Joanna.