Bluelinx Holdings (BXC.NYSE), a maker of building products and materials, shed 54 cents, or 12%, to $4.11 today, making the stock the biggest loser on the New York Stock Exchange. Volume was about 10% below the daily average.
There was no news to directly impacting Bluelinx shares, but my best guess is that a weaker-than-expected earnings report out of homebuilder Lennar (LEN.NYSE) weighed on Bluelinx today. Bluelinx plywood, oriented strand board, rebar and remesh, lumber, and other wood products primarily used for structural support, walls, and flooring in construction projects as well as specialty construction products.
If you're bearish on homebuilders, you NEED to be bearish on construction services names. These two sectors tend to move in tandem with each other and until the homebuilders show sustained improvement, I'll take a pass on the construction services names.
For more on Bluelinx Holdings, go here: http://www.bluelinxco.com
Delta Petroleum Falls On Failed Well Test
Monday September 21, 2009
Delta Petroleum (DPTR.NSDQ), an independent oil and gas exploration firm, tumbled $1.80, or 45%, to $2.21 today, making the stock the biggest loser on the Nasdaq. Volume was robust at more than 11 times the daily average.
The bears laid into Colorado-based Delta Petroleum after the company reported disappointing gas volume results out of the Columbia River Basin. Delta Petroleum said the six lowermost zones showed high pressure, though only fresh water flows. Other areas showed water and gas, but not enough to make the test results anything more than disappointing.
Add in the plunges in crude oil and natural gas futures and it was not the best of days to own Delta Petroleum shares. Larger names weren't immune either as 33 of the 40 energy stocks in the S&P 500 fell today.
These are dicey times to be involved with oil and gas stocks. Until oil can stay above $75 a barrell and volatility abates somewhat, it's too tough to make a call on the energy patch.
For more on Delta Petroleum, go here: http://www.deltapetro.com
Perot Systems Soars On Dell Takeover
Monday September 21, 2009
I hope you had the foresight to buy Perot Systems (PER.NYSE) on Friday. If you did, I'd love to hear what your next pick is. Perot Systems, the provider of information technology services for the healthcare industry, rocketed higher by $11.65, or 65%, to $29.56 making the stock the biggest gainer on the New York Stock Exchange. Volume was 44 times the daily average.
News that Dell (DELL.NSDQ) will acquire Perot Systems for $3.9 billion jolted the stock higher. The offer represents a nearly 68% premium to Perot's closing price on Friday and has some on the Street saying Dell is overpaying...by a lot.
Dell is trying to bolster its IT services business in the healthcare and government sectors, but may take until 2012 for the acquisition to pay dividends for the company. That's a long time wait for a buy of this size to bear fruit. J.P. Morgan analyst Mark Moskowitz said the price is 1.4 times Perot Systems' sales.
With today's news, Perot Systems shares have more than doubled year-to-date, but this is more abotu Dell than it is Perot Systems.
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