Oil Rises 4%, Second Day Surge

123jump.com Staff
06 Jun, 2008
New York City

U.S. stocks traded lower in the morning trading as oil surged more than 4% in London and in New York trading. Chevron oil operations in Nigeria are looking to strike if higher pay demands are not met. Weak dollar also contributed to the rise in oil price. And, a steady rise in demand from the U.S. and accelerating demand from Asia has kept crude oil demand higher in the first five months of the year.

[R]10:15AM New York – Crude oil surged more than 4% for the second day.[/R]

Crude oil in London trading surged 4.5% or $5.66 to $133.20 and in New York trading rose 4% to $131.70. The sharp surge in oil comes on the heels of more projections of oil price in the near term to $150 a barrel. Gasoline price surged 2% or 6.80 cents to 340.26 cents per gallon.

Demand from Asian economies is accelerating on top of growing demand from the U.S. The U.S. remains the largest importer of crude oil and the largest consumer of crude oil per person in the world. Even though the price of crude oil has increased nearly ten-fold the U.S. oil imports have been rising at a steady level of between 2% and 3% a year.

China after suffering a heavy and devastating earthquake is exporting more crude oil to power many of its power plants as nearly 100 dams are investigated for earthquake damages. The power from the hydroelectric electric generators is expected to decline more than 10% in the next two months.

Chevron oil operations employees in Nigeria are threatening a strike if their demand for higher pay is not met. Chevron produces 420,000 barrels of crude oil a day in Nigeria. The possibility of a strike is only adding to the market that is already jittery.

Asian markets review

In Tokyo Nikkei 225 Index closed higher 148.32 or 1.03% to 14,489.44, in Hong Kong Hang Seng index increased 146.89 or 0.61% closed to 24,402.18. In Australia ASX 200 index higher 62.00 or 1.12% to close 5,592.10. In Malaysia KL Composite index increased 25.01 or 2.04% closed to 1,248.57.

In Thailand SET index closed higher 7.51 or 0.93% to 817.33 and Indonesia JSE Index edged increased 2.56 or 0.11% to 2,402.24. Sensex index in India decreased 197.54 or 1.25% to 15,572.18. Market of South Korea was closed today.

Earnings review

Alloy, Inc, a media and marketing services company said first quarter revenues rose 30% to $49.1 million from $37.8 million a year ago. Net loss in the quarter was $1.6 million or 12 cents per diluted share compared to net loss of $1.7 million or 13 cents per share, a year ago.

Alloy, Inc ((ALOY)) in the last one year traded as high as $10.94 in Dec. 2007 and as low as $6.28 in Apr. 2008.

Blyth, Inc, maker of candles and household products said first quarter sales dropped 8% to $249.8 million from $270.4 million a year ago. Net income in the quarter declined 8.75% to $1.2 million or 3 cents per diluted share compared to net income of $11.7 million or 30 cents per share, a year ago.

Blyth, Inc ((BTH)) in the last one year traded as low as $15.45 in August 2007 and as high as $28.10 in April 2008.

C&D Technologies, Inc, a battery maker said first quarter sales rose 21% to $93.8 million from $77.5 million a year ago. Net income in the quarter was $577,000 or 2 cents per diluted share compared to net income of $4.1 million or 13 cents per share, a year ago.

C&D Technologies, Inc ((CHP)) in the last one year traded as low as $3.70 in October 2007 and as high as $7.01 in March 2008.

Cascade Corporation, a forklift equipment maker said first quarter sales rose 11% to $149.9 million from $135.5 million a year ago. Net income in the quarter declined 54.20% $10.9 million or 98 cents per diluted share compared to net income of $23.8 million or $1.90 per share, a year ago.

Cascade Corporation ((CAE)) in the last one year traded as high as $89.87 in December 2007 and as low as $39.70 in April 2008.

Comarco, Inc, a mobile power solutions provider said first quarter revenues rose 128% to $12.3 million from $5.4 million a year ago. Net loss in the quarter was $1.7 million or 23 cents per diluted share compared to net loss of $1.6 million or 22 cents per share, a year ago.

Comarco, Inc ((CMRO)) in the last one year traded as high as $7.27 in December 2007 and as low as $2.87 in May 2008.

Focus Media Holding Limited, an advertising network operator based in China said first quarter revenues rose 214.7% to $161.6 million from $51.3 million a year ago. Net loss in the quarter was $53.8 million or 42 cents per ADS compared to net income of $16.3 million or 21 cents per ADS, a year ago.

Focus Media Holding Limited ((FMCN)) in the last one year traded as high as $66.30 in August 2007 and as low as $29.25 in April 2008.

G-III Apparel Group, Ltd, a sportswear and outerwear manufacturer said first quarter revenues declined 53.44% to $75.4 million from $35.1 million a year ago. Net loss in the quarter was $6.9 million or 42 cents per diluted share compared to net loss of $6.4 million or 42 cents per share, a year ago.

G-III Apparel Group, Ltd ((GIII)) in the last one year traded as high as $21.00 in November 2007 and as low as $10.73 in March 2008.

National Semiconductor Corporation, semiconductor product said fourth quarter revenues rose 1% to $462 million from $455.9 million a year ago. Net income in the quarter up 8% to $83.2 million or 34 cents per diluted share compared to net income of $90.1 million or 28 cents per share, a year ago.

The company''s per-share income increased because the number of shares outstanding dropped to about 246.3 million from 327.5 million. The quarter also included $9.1 million in severance costs and $20 million in stock-based compensation expense. The company expects first quarter revenue of $460 million to $475 million.

National Semiconductor Corporation ((NSM)) in the last one year traded as high as $29.69 in November 2007 and as low as $16.21 in March 2008.

Nobility Homes, Inc, mobile homes maker said first quarter sales declined 7.76% to $8.16 million from $8.80 million a year ago. Net income in the quarter declined 17.77% to $620,000 or 15 cents per diluted share compared to net income of $731,000 or 18 cents per share, a year ago.

Nobility Homes, Inc ((NOBH)) in the last one year traded as low as $15.98 in December 2007 and as high as $21.24 in February 2008.

Oil-Dri Corporation of America, manufacture sorbent products for cat litter said third quarter sales rose 12% to $59.5 million from $52.9 million a year ago. Net income in the quarter rose 3.4% to $2.0 million or 28 cents per diluted share compared to net income of $1.9 million or 28 cents per share, a year ago.

Oil-Dri Corporation of America ((ODC)) in the last one year traded as high as $23.60 in September 2007 and as low as $14.95 in May 2008.

Optium Corporation, a supplier of high-performance optical subsystems said third quarter revenues rose 30.3% to $45.0 million from $34.5 million a year ago. Net loss in the quarter was $0.7 million or 3 cents per diluted share compared to net loss of $0.8 million or 3 cents per share, a year ago.

Optium Corporation ((OPTM)) in the last one year traded as high as $14.98 in September 2007 and as low as $5.10 in January 2008.

Quiksilver, Inc, maker of outdoor clothing said second quarter revenues rose 15% to $596.3 million from $520.4 million a year ago. Net loss in the quarter was $206.2 million or $1.59 per diluted share compared to net loss of $4.8 million or 4 cents per share, a year ago.

Quiksilver, Inc ((ZQK)) in the last one year traded as high as $15.51 in December 2007 and as low as $5.69 in January 2008.

Source Interlink Companies, Inc, a distributor of DVDs, CDs, magazines, games and books said first quarter revenues rose 29.2% to $614.4 million from $475.4 million a year ago. Net loss in the quarter was $280.8 million or $5.37 per diluted share compared to net income of $3.2 million or 6 cents per share, a year ago.

Source Interlink Companies, Inc ((SORC)) in the last one year traded as high as $5.95 in November 2007 and as low as $1.13 in June 2008.

Take-Two Interactive Software, Inc, video game publisher said second quarter revenues rose 62% to $539.8 million from $205.4 million a year ago. Net income in the quarter was $98.2 million or $1.29 per diluted share compared to net loss of $51.2 million or 71 cents per share, a year ago.

Take-Two Interactive Software, Inc ((TTWO)) in the last one year traded as low as $11.82 in August 2007 and as high as $27.65 in January 2008.

The Cooper Companies, Inc, which makes specialty contact lenses said second quarter revenues rose 17% to $263.5 million from $225.5 million a year ago. Net income in the quarter was $11.2 million or 25 cents per diluted share compared to net loss of $527,000 million or a penny per share, a year ago.

The Cooper Companies, Inc ((COO)) in the last one year traded as high as $57.60 in December 2007 and as low as $29.71 in March 2008.

Valence Technology, Inc, a maker of lithium phosphate energy storage systems said fourth quarter revenues rose 62% to $7.8 million from $4.8 million a year ago. Net loss in the quarter was $4.6 million or 4 cents per diluted share compared to net loss of $6.0 million or 5 cents per share, a year ago.

For the fiscal year ended March 31, 2008, revenue was $20.8 million compared to $16.7 million for the same period last year. Net loss available to common shareholders improved to $19.6 million or $0.18 per share, compared to $22.4 million or $0.22 per share for the fiscal year ended March 31, 2007.

Valence Technology, Inc ((VLNC)) in the last one year traded as low as $1.06 in August 2007 and as high as $4.85 in January 2008.