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The Best And Worst From August 26

Posted: Aug 28, 2008 09:42 AM by Eric Fox

Tickers in this Article: RBY, COCO

The biggest gainer on the U.S. markets on August 26, 2008, was Rubicon Minerals (AMEX:RBY), which ended the day up 34 cents to $1.64. The biggest loser was Corinthian Colleges (Nasdaq:COCO), which ended the day down $3.16 to $13.05.

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The Gainer
Rubicon Minerals is a Canadian gold exploration company headquartered in Vancouver. The company has properties in Ontario, Alaska and Nevada. Rubicon reported that it found "bonanza grade" gold in the prospective Phoenix Gold Project located near Red Lake, Ontario. The company reported a similar find at the same location on July 8, 2008.

The Loser
Corinthian Colleges provides post-secondary educational services in the U.S. and Canada. The company offers degrees and diplomas in fields ranging from healthcare to automotives and plumbing. Corinthian Colleges offers its services under the Everest and Wyotech Brands.

The company reported earnings per share (EPS) of 11 cents which beat the consensus expectations by two pennies. Margins and enrollment also grew. The drop in price was caused by a rise in bad debt expense, which increased to 9.1% of revenue in the quarter compared to 6.2% in the same quarter last year. (To learn more, see Debt Reckoning.)

The company cited the student lending crisis and the need to replace the Sallie Mae private subprime student lending program as the problem. The company also tweaked earnings down slightly for the first quarter of fiscal 2008 and full year. Corinthian Colleges now expects first quarter EPS to be in a range of 6-8 cents versus the consensus of 8 cents. Corinthian Colleges expects full-year fiscal 2008 to be in a range of 58-63 cents per share versus the consensus of 55 cents.

Corinthian Colleges isn't the only education provider to suffer recently after releasing earnings. On August 22, 2008, Noah Education (NYSE:NED) fell sharply after reporting earnings and providing flat year-over-year revenue guidance for the next quarter.

Other Winners And Losers from August 26
Crawford & Co. (NYSE:CRD.B) is a provider of claims management services to insurance companies. Crawford jumped $1.34 to $13.15, but there was no news on the tape to explain the move. There was an increase in net income from $6.1 million in Q2 2007 to $7.9 million in Q2 2008, helped by favorable exchange rates. Another gainer was, Imperial Industries (Nasdaq:IPII). It went up $1.30 to $3.19. The company is a manufacturer of building materials throughout the Southeastern U.S., including roof tile mortar, stucco and plaster products. The stock rose sharply on speculation that if hurricane Gustav hits the coastal areas of the U.S., it will lead to a sharp increase in demand for the company's products.

Other large losers on August 26 were MGP Ingredients (Nasdaq:MGPI), which fell $1.04 to $4.91. The company reported a loss of 60 cents per share for the fourth quarter and lost 71 cents per share for the full year. The company said its results were hurt by higher grain and fuel costs. Cott (NYSE:COT), a maker of soft drinks, dropped 41 cents to $2.06. The company reduced its outlook for 2008 an expectation of between $26-38 million in profits, citing falling volumes and higher costs. Last year's profit was $36.3 million.

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By Eric Fox

Eric J. Fox, is the founder of Brittain Capital Management, LLC., which manages the Alesia Fund, LP., a Value oriented long/short investment partnership. You can read more of his views on investments at his blog - Stock Market Prognosticator. Mr. Fox also publishes a paid investment newsletter. Please visit The Unknown Stock Report for more details.

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