Diamonds and Dogs
6/5/12
Shuffle Master Inc. (SHFL)Shuffle Master fell downward today, down 13.20% at $12.37. The gaming device company (card shufflers and slot machines for casinos) saw their stock decline after reporting earnings. Shuffle Master's second-quarter results were in line with estimates with an EPS of $0.20 on revenue of $66.1 million versus the forecast of $0.20 and $65.1 million. However, given the stock's run-up over the past six months, it's clear that investors were expecting more from the earnings report. CEO Gavin Isaacs said, "We are confident that our continued strong momentum across our core businesses and the rollout of our interactive initiatives are key drivers of our future earnings potential and will write the next chapter of our profitable growth story." Shuffle Master had a rough day, closing at a price it hasn't seen since early January.
Westport Innovations Inc. (WSPT)
Westport Innovations drove upward today, up 21.55% at $27.07. The company develops alternative fuel options (such as natural gas, hydrogen, and biogas) for engines. Westport saw its pop today after releasing news that it struck a deal with Caterpillar. In the deal, Westport will develop engines that can use cheaper natural gas instead of diesel to power mining trucks and locomotives. Natural gas prices have fallen to levels of $2 per million British thermal units from about $10 in 2008. Steve Fisher, a vice president at Caterpillar said, "Many of our customers are asking for natural gas-powered equipment in order to reap the financial and environmental benefits." Caterpillar, the world's largest maker of earth-moving equipment, will fund the development of the engines, the companies said in a statement. Westport also has deals with General Motors and Cummins Inc. to develop natural gas powered engines. Westport had a great day, and is trading right around the middle of its 52-week range.
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