Knobias Clip Report (05-23-2008)
Submitted By Knobias ClipReport
CNLG: Reports $380K in New Orders; Holders Approve Reverse Split
Friday’s session saw oil rebound and continue its rally after taking a one day hiatus ahead of the Memorial Day holiday weekend. With the long weekend, Friday’s session was somewhat void of market breaking news. Even so, the market saw its largest loss for the week in over three months on the extreme moves in energy.
One interesting report saw Anheuser-Busch being acquired by InBev for $65 a share. The news sent BUD shares higher by 3% and if it occurred, would leave only Sam Adams as the only American owned beer company besides micros after Coors and Miller were bought out by foreign entities in the past few years.
Solar names were on the mend after being crushed during Thursday’s session on the oil rally taking a breather. Evergreen Solar (ESLR) was the only name in the green on Thursday after the announcement of new contracts. Friday saw the name gain marginally after Citigroup noted that the contracts were positive, but did not change the story. The analyst raised the target to $8.50 from $8 but reiterated their Sell rating.
Another name that could see increased action following the holiday could be Conolog Corporation (CNLG). The Company is an engineering and design company that provides digital signal processing solutions to global electric utilities.
After the bell on Friday, announced that for the month of April 2008, the Company received a total of $381,000 in new orders and shareholder approval for a one-for-four reverse split of the Corporation’s common shares. In comparison, the Company reported only $768 in trailing twelve month revenue which produced a loss of $1.29.
Chairman of Conolog Robert Benou stated, “Our products continue to confirm market acceptance and we welcome new and existing customers to our product offerings. The Company will continue to expand its marketing efforts and is focused on expanding sales, product applications, related software and production capacity throughout 2008.”
Benou added that at a Special Meeting of the Company’s shareholders held on May 21, 2008, the Company’s shareholders approved a proposed amendment to the Company’s certificate of incorporation to effect a one-for-four reverse split of the Company’s common stock which was subsequently approved by the Company’s Board of Directors.
With the higher share price resulting from the reverse split, the Company will attempt to increase the market for its shares since many investors see shares that trade under $1 as speculative investments. Adding the already low float with the positive revenue news from the month of April and one can easily see the name could see some increased action after the holiday. With that in mind, investors would be wise to watch.
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