3Com Corporation (Nasdaq: COMS) Buzz Stock of the Day

Network equipment maker 3Com Corporation (Nasdaq: COMS) jumped 32 percent in trading Thursday, after Hewlett-Packard Company (NYSE: HPQ) announced Wednesday it has agreed to purchase the company for $2.7 billion in cash. The announcement boosted shares to a 52-week high of $7.52, topping the list of Biggest Percentage Price Gainers among common stocks on Nasdaq.
The 3Com transaction, approved by the companies' boards, is expected to be completed during the first half of 2010. The deal values 3Com’s stock at $7.90 per share, which represents a 39% premium over 3Com shares' Wednesday closing price of $5.69.

Bob Mao, CEO of 3Com, said in a statement Wednesday, “Our extensive product line and innovative technology together with HP’s breadth and scale will expand our global opportunity.”

Hewlett-Packard’s acquisition of 3Com was taken as a call to battle against Cisco Systems (Nasdaq: CSCO). Although HP is growing business in computer networking, the 3Com acquisition doesn't even put it close to Cisco in market share.

Palo Alto, Calif.-based Hewlett-Packard expects 3Com will help expand its offerings of products such as Ethernet switches and network routers, as well as increase its position in the Chinese market. 3Com also sells enterprise technology products such as Voice over IP gateways, wireless LAN access equipment, video surveillance, network management software, and security solutions. The company is headquartered in Hong Kong and has a strong foothold in China, with more than 30% of enterprise networking market.

Mao continued, “3Com’s networking products are based on a modern architecture which has been designed to offer better performance, require less power and eliminate administrative complexity when compared against current network offerings. Our products are enterprise proven and widely deployed in the world’s largest banks, manufacturers, Internet service providers, public utilities and retailers.”

3Com Corporation is a $1.3 billion global enterprise networking solutions provider that sets a new price-performance standard for customers. 3Com has three global brands – H3C, 3Com and TippingPoint – that offer high-performance networking and security solutions to enterprises large and small. The H3C enterprise networking portfolio – a market leader in China – includes products that span from the data center to the edge of the network, while TippingPoint network-based intrusion prevention systems and network access control solutions deliver in-depth, no-compromise application, infrastructure and performance protection.

Cardiovascular Systems, Inc. (Nasdaq: CSII) Buzz Stock of the Day

Shares of Cardiovascular Systems, Inc (CSI) have been steadily rising in the week following the Company’s announcement of promising financials for the first quarter fiscal 2010 ended September 30, 2009.

CSI increased revenue 30 percent in the first quarter of fiscal 2010, to $15.2 million compared to revenue of $11.6 million for the same quarter of the previous year. Likewise, CSI’s net loss improved 55 percent to $(6.2) million, or $(0.43) per basic and diluted share, in the first quarter of fiscal 2010, from $(13.7) million, or $(2.75) per basic and diluted share, for the same quarter 2009.

David L. Martin, CSI president and chief executive officer, said, “Balancing revenue growth with effective expense management helped drive a substantial reduction in our loss from the fiscal 2009 first quarter, moving CSI toward our goal of profitability.”

The number of weighted average common shares outstanding increased to 14.5 million from 5.0 million in the first quarter of fiscal 2009, primarily due to new shares issued in conjunction with the February 2009 reverse merger with Replidyne, Inc., including the conversion of all preferred stock of the company to common stock.

Additionally, the fiscal first-quarter 2010 gross margin increased to 77 percent from 67 percent in the same period last year, driven by higher disposable volumes, manufacturing efficiencies, product cost reductions and shipment of fewer controller units. Operating expenses decreased 18 percent, due to effective expense management, the year-earlier write-off of $1.7 million in IPO costs, and completion and timing of development projects and clinical studies.

Adjusted EBITDA, calculated as loss from operations, less depreciation and amortization and stock-based compensation expense, improved by 70 percent to a loss of $(3.6) million versus a loss of $(11.8) million in the year-ago period. Cash and cash equivalents remained strong at $30.8 million and included $3.0 million of net funding received in conjunction with signing an agreement to establish a second production facility in Pearland, Texas.

Martin continued, “During the quarter, we focused on driving adoption in existing accounts, including re-educating physicians on proper clinical protocols for using the Diamondback 360° to change lesion compliance in vessels above the knee. As a result, we are seeing greater product usage in many accounts. These improvements were offset by seasonal weakness in endovascular procedures, resulting in revenue slightly below our expected range.”

The number of hospitals using the Diamondback 360® PAD System rose to 611 by the end of the fiscal 2010 first quarter, a nearly 90-percent increase over a year ago and 55 more than the end of the fourth quarter of fiscal 2009. Sales of disposable device units totaled 4,541 units in the first quarter of fiscal 2010 versus 3,636 units in the first quarter of last fiscal year, a 25-percent increase. Revenue generated from customer reorders continued to grow, increasing to 92 percent of total revenue for the fiscal 2010 first quarter from 72 percent in last year’s first quarter.

Onstream Media Corporation (Nasdaq: ONSM) Buzz Stock of the Day

Shares of video services provider, Onstream Media Corp. (Nasdaq: ONSM) were up almost 28 percent today after the company announced several new contracts with federal government agencies including the Internal Revenue Service and the Housing Department.

"Our business relationships with various federal and state governments have never been stronger," said Randy Selman, President and Chief Executive Officer of Onstream Media in a statement. "As demand for our multi-media web communication products and services continues to increase on the commercial side of our business, we're also pleased to report continued growth in the government sector, which we expect to continue to rise in the years to come."

Onstream Media announced that it will provide its comprehensive Digital Media Services Platform (DMSP) and live and on-demand webcasting services for ongoing education and targeted outreach delivery services for the Internal Revenue Service. The IRS will use Onstream Media's technology to communicate important tax information to tax professionals, small businesses, and self-employed taxpayers in more dynamic, web-friendly and innovative formats such as podcasts, webinars, live broadcasts or other forms of web-based media.

Additionally, the company announced an agreement with strategic partner REJ & Associates, Inc. to provide Webinar services to the U.S. Department of Housing and Urban Development's Federal Housing Administration (FHA) Philadelphia Homeownership Center (HOC).

Onstream Media is also subcontracted to provide audio-based web conferencing services that enable FHA to bring employees and other participants from around the country together for online workshops, seminars and trainings. REJ & Associates, Inc. is a leading provider of integrated marketing and communications services based in Baltimore, MD.

Lastly, the NRC has exercised its first one year option to renew and extend its multi-year agreement with Onstream Media to provide ongoing webcasting, streaming media and multi-media services. The company began providing the NRC with its webcasting services in March, 2008.

MOD-PAC Corp. (Nasdaq: MPAC) Buzz Stock of the Day

Paper products maker, MOD-PAC Corp. (Nasdaq: MPAC) reported a sharp increase in third quarter profit driven by cost restructuring initiatives to improve operating leverage, and increases in the company’s folding carton sales and custom folding carton sales, offset by lower stock packaging and print service sales.

For the quarter ended October 3, MOD-PAC reported profit of $1.01 million, or 29 cents per share, compared with profit of $14,000 and flat EPS in the same quarter a year ago. Revenue for the quarter decreased to $12.59 million, from $12.64 million a year ago.

“Our custom folding carton sales have grown exceptionally well,” said MOD-PAC’s president and chief executive officer, Daniel Keane in a statement. “Many of our customers produce private label products for the consumer staples market. Consumers in this economic environment are highly cost conscious and tend to buy more store brands which drives sales for our customers. Importantly, as our customers are realizing stronger sales, we are also capturing a greater percentage of their business and adding new accounts.”

Sales of folding cartons, which include custom folding cartons and stock packaging, were up 11.2 percent, or $1.18 million, to $11.65 million in the 2009 third quarter from $10.47 million in the prior year third quarter. Custom folding carton sales drove the product line increase. Custom folding carton sales for the third quarter of 2009 were $9.41 million, up $1.21 million, or 14.8 percent, from 2008 third quarter sales of $8.19 million. Greater sales from two large existing customers and the addition of one new customer, more than offset reduced sales from customers impacted by the economy and decreased waste sales due to a drop in the recycled paperboard market.

Gross profit for the 2009 third quarter was $2.52 million, or 20 percent of total revenue, compared with gross profit of $1.98 million, or 15.6 percent of total revenue, in the same period a year earlier.

Shares of MOD-PAC surged 73 percent touching on a high of $4.25 after the Company announced third-quarter earnings of 29 cents a share on revenue of $12.6 million.

Diedrich Coffee Inc (Nasdaq: DDRX) Buzz Stock of the Day

Shares of Diedrich Coffee (Nasdaq: DDRX) spiked nearly 27 percent on Tuesday after Peet’s Coffee and Tea (Nasdaq: PEET) announced it will acquire the wholesale coffee roaster and distributor for $213 million.

Peet’s will pay in cash and stock for Diedrich, with the $26 per share price representing a nearly 28 percent premium to the stock's Monday close of $20.36. For each Diedrich share, Peet's will pay $17.33 in cash and a fraction of a Peet's share valued at about $8.67.

Peet's said it will pay for Diedrich with a combination of cash and $140 million in debt. The purchase, which is expected to close by the end of this year, will dilute 2010 earnings but should add to profit after that.

“The Diedrich acquisition represents another major strategic growth initiative for our consumer packaged coffee business, by entering and driving adoption of the single cup segment through Diedrichs high-growth K-Cup business," said Peet's President and CEO Patrick O'Dea, in a statement.

Peet’s is acquiring Diedrich to enter the quickly growing single-cup coffee market. Diedrich, whose share price hit a 52-week low of $0.21 has rebounded remarkably on the back of popular K-Cup single serve coffee packs, through a licensing agreement with Green Mountain Coffee Roasters (NASDAQ: GMCR).

Diedrich’s Chairman, Paul Heeschen, along with other directors and executive officers representing more than 32 percent of the company’s shares agreed to tender their stock in the offer. The acquisition, which was unanimously approved by both company’s boards of directors, is still pending regulatory approval and other closing requirements.

Diedrich reported profit of $3 million on revenue of $20.1 million for its fiscal 2009 year, which ended in June. The company has forecast 2010 revenue of $90 million to $95 million. Last month, Peet's raised its 2009 profit guidance after reporting third-quarter earnings of $2.5 million on revenue of $73.9 million.

Human Genome Sciences, Inc. (Nasdaq: HGSI) Buzz Stock of the Day

Human Genome Sciences, Inc. (Nasdaq: HGSI) shares rallied to a 52-week high of $26.21, and added $1 billion to its market value after the company announced favorable results from the second phase of clinical trials for its lupus treatment, Benlysta on Monday.

Rockville, Maryland-based Human Genome said it expects to file its marketing application for Benlysta, early next year, and could have the drug on the market by the end of 2010. If approved, Benlysta will be the first new lupus treatment on the market in more than 50 years.

“The lupus community has waited for decades for one, positive phase III trial of an investigative drug developed for lupus,” said Dr. Joan T. Merrill, a lupus expert at the Oklahoma Medical Research Foundation and an investigator in the trial, in a statement issued by Human Genome Sciences and its development partner, GlaxoSmithKline. “Now we have two.”

Data from a composite of three measures in the latest trial showed that after 52 weeks, 43.2 percent of patients taking 10 milligrams of Benlysta in combination with standard therapies achieved an improvement in symptoms, with no significant worsening of the disease in individual organs.

Only 33.8 percent of patients receiving the placebo and standard care had noticeable improvement. Serious side effects were reported in 26.8 percent of patients taking Benlysta, compared with 24 percent of patients taking a placebo.

Lupus, which affects approximately 5 million people worldwide, is an autoimmune disorder in which the body’s own defense system against pathogens turns on the body and begins attacking healthy tissues. The symptoms can include, but are not limited to, rashes, arthritis, mouth sores, and kidney damage. Historically, it has been difficult to demonstrate in clinical trials the effectiveness of potential lupus drug candidates as the symptoms vary greatly from one individual to another.

Benlysta, which is known generically as belimumab is given once a month by IV infusion, and works by blocking a protein that stimulates B cells that are produced by the immune system. Human Genome, a trailblazer in studying genomics, first discovered the gene for that protein. The discovery would make Benlysta one of the first drugs to arise from genomics, if the drug is approved.

The company has not yet nailed down a price for the drug, but biologic drugs that treat rheumatoid arthritis and multiple sclerosis, which are also autoimmune disorders, range between $15,000 and $30,000 per patient per year, according to Barry Labinger, Human Genome's chief commercial officer.

Shares of Human Genome Sciences, which traded at $3.32 the day before the positive first trial data was announced in July, closed the following day at $18.69 per share.

Analysts expect the drug to generate annual sales of at least $1 billion and potentially much more. Human Genome will split profits from the drug with its larger partner, GlaxoSmithKline Plc (NYSE: GSK).

Giga-Tronics, Inc. (Nasdaq: GIGA) Buzz Stock of the Day

Shares of Giga-Tronics, Inc. (Nasdaq: GIGA) were up more than 44 percent today from yesterday’s close, touching on a high of $2.78 after the company reported profit for the second quarter, marking the fourth, consecutive, profitable quarter for the company.

For the quarter ending September 26, 2009, Giga-Tronics reported a net profit of $373,000 or 8 cents per share, compared to a net loss of $540,000 or 11 cents per share for the same period last year. Net sales for the quarter increased 25 percent to $4.6 million compared to $3.6 million for the same quarter a year ago. Giga-Tronics’ gross margin improved to $2.1 million, an increase of $775,000 over the same period last year. As a percentage of net sales, gross margin improved 9.4 percent to 45.7 percent, from 36.3 percent in the second quarter of fiscal 2009. Orders increased to $4.8 million in the second quarter from $3 million for the second quarter of fiscal 2009. Cash and cash equivalents at September 26, 2009 were $1,345,000 compared to $1,551,000 as of June 27, 2009.

Giga-Tronics, Inc. specializes in instruments, sub-systems, and sophisticated microwave components that have broad applications in both commercial communications and defense electronic s systems. The company focuses on three principal product areas: test measurement instrumentation, signal switching solutions, and microwave components.

China Technology Development Group (Nasdaq: CTDC) Buzz Stock of the Day

China Technology Development Group (Nasdaq: CTDC), an integrated clean energy corporation, announced Tuesday that the company will acquire a majority interest in China Technology Solar Power Holdings Limited. The stock purchase agreement states that China Technology Developemtn Group will obtain a 51 percent equity interest and become the major shareholder of CTSPHL Group.

The announcement sent shares skyrocketing more than 39 percent, to a high of $5.09 from Monday’s closing price of $3.66. More than 978,000 shares changed hands by 10:45 a.m. EDT Tuesday, 10 times greater than the stock's 50-day average daily volume of 97,000, according to Nasdaq.

Chairman and CEO of China Technology Development Group commented in a statement about the acquisition, "We are very pleased to become a controlling shareholder of CTSPHL Group. This marks a significant step that CTDC has made to enter into the solar power station arena and become one of the first overseas listed Chinese companies to hold an operating license from the Chinese government to operate on-grid solar power stations in China," commented by of the Company.

China Technology Development Group (CTDC) believes the acquisition will advance the company’s goals of becoming a fully-integrated solar company with the capacity and qualifications to design, build, and operate solar power plants.

CTSPHL Group, through its wholly-owned subsidiary, is developing a 100MW grid-connected solar power plant project located in Delingha City of Qaidam Basin in Qinghai Province, Northwestern China. Upon closing of the acquisition, the Company and CTSPHL Group will jointly develop the Delingha 100MW Solar Project. CTSPHL Group has obtained a 25-year operating license from the Qinghai Provincial Development and Reform Commission for the first phase of the Delingha 100MW Solar Project, consisting of 10MW. Construction commenced on the first phase on 28th September 2009 and is expected to be completed by the end of 2010.

China Technology Development is an up-and-coming integrated clean energy group focused on providing solar energy products and solutions. The Company has an 8.86 million-share float with only 257,000 shares short as of Sept. 25, according to Yahoo Finance. Only 3.2% of the company's shares are held by insiders with another 1.7% owned by institutions. CTDC’s major shareholders include China Merchants Group and Beijing Holdings Limited.

Telestone Technologies Corporation (Nasdaq: TSTC) Buzz Stock of the Day

The Chinese telecomm industry leader, Telestone Technologies Corporation (Nasdaq: TSTC) , announced Tuesday that it’s Wireless Fiber Distribution System (WFDS™) passed all testing procedures of the U.S. Federal Communications Commission (FCC), including all of the existing 2G and 3G systems in the U.S. The announcement Tuesday boosted share prices 31.4 percent to a high of $11.15 from Monday’s closing price of $8.48.

The company’s proprietary Wireless Fiber Distribution System, which provides for indoor multi-services access networks, had a successful debut at the April 2009 CTIA trade show in Las Vegas. Following the trade show, the company immediately began working towards FCC compliance. To achieve this, Telestone developed a team comprised of corporate-level officers, R&D and marketing personnel, as well a partner in the United States.

Last month, the WFDS technology passed all FCC required testing procedures and Telestone was given the green light to market the product in the United States, as well as Canada, and Central and South America. The FCC certification is a substantial achievement for Telestone’s efforts to gain market share in North and South America.

Mr. Daqing Han, Chairman and CEO of Telestone, commented, "The certification of Telestone's WFDS(TM) technology by the FCC has removed the final hurdle for us to effectively launch our marketing initiatives throughout the Americas. In the coming months, we expect to secure new contracts in the U.S. from telecommunication carriers and through our local partners while expanding our reach to countries in Latin America. Diversifying our revenue base as we move into 2010 is an important goal and we expect positive margin enhancements through increased WFDS(TM) sales."

Industry analysts believe Telestone Technologies is poised for substantial growth in the coming years. The Chinese government has announced it will spend $70 billion over the next three years on 3G initiatives, this, coupled with Telestone’s impressive goals to increase the company’s domestic market share from 5 percent to 33 percent suggests the company plans to capture a sizable share of the government funds allocated for wireless development.

Fortress International Group, Inc. (Nasdaq: FIGI) Buzz Stock of the Day

Shares of Fortress International Group, Inc. (Nasdaq: FIGI) skyrocketed more than 100 percent today on news that the company had been awarded six new contracts totaling nearly $40 million.

The contracts will span all three divisions of the company: technology consulting, construction management and facilities management. Including the new project awards, the company said it has closed $46.5 million in new business since the end of the second quarter.

The majority of the new business comes from four substantial design and construction projects for two of Fortress International's co-location customers totaling $36.4 million. The company said the revenues from these projects will span the next 8 months.

In addition, Fortress was also awarded a $2.7 million facility management contract over a three year period to commission and service multiple containerized data center modules.

"Our private sector project wins are the direct result of the credit markets opening up in our sector," said Chief Executive Officer Thomas P. Rosato in a statement. "Capital spending has been very slow since October of 2008. We are now beginning to see our capacity-constrained data center customers executing their facilities expansion plans to meet pent up demand. The credit markets are responding favorably to this segment and we expect to see increased project spending over the next few quarters."

Finally, the US Social Security Administration has selected Fortress International to be a part of a professional services team assembled to assist in the development and design of a new data center in Baltimore, MD. The contract, which will be executed by Fortress International’s technology consulting division, is initially for $300,000 but due to the volume and complexity of the project, the company believes additional involvement will evolve from the initial deal.

Fortress International Group, Inc. is a leading provider of consulting and engineering, construction management and 24/7/365 site services for mission-critical facilities. The company’s announcement Monday boosted share prices to an intraday high of 97 cents. More than 2.1 million shares changed hands by 11 a.m. EDT Monday, compared to the stock's 50-day average daily volume of 82,000, according to Nasdaq. Fortress International has a float of 4.5 million shares with a short interest float of only 0.5 percent as of Sept. 25, according to Yahoo. More than 61 percent of the company's shares are held by insiders with another 4.9 percent owned by institutions.