Matrixx Initiatives Inc. (MTXX)

[The Daily Tape]

Power For The Matrix, At Least For A Little While.
June 16, 2009

A-Power Energy Generation Systems (APWR) had a big consolidation on the release of financials today. It seems same quarter sales for the company went down a bit from last year. The following numbers were copied from the companies press release on the topic.

Financial Highlights
– Revenues were $31.2 million vs. $32.3 million in 1Q08
– Gross margin was 12.6% vs. 11.9% in 1Q08
– Cash flow from operations was $15.7 million vs. $2.8 million in 1Q08
– Cash on hand at March 31, 2009 was $60.6 million vs. $43.5 million at
December 31, 2008
– For the year 2009, A-Power raises its revenue guidance from $290
million to $320 million; and its net income guidance from $29 million
to $32 million

What I find interesting in the numbers is the fact that the profit went up. So why the precipitous drop? It looks like the stock was due for a pretty big correction after more than four months of runup. Now what we see is a company that is making operations more effecient with a good deal of cash on hand with a nicely consolidated shareprice, one to watch I think.

MTXX took a big hit after the FDA put them on notice. It looks like after such a preciptious fall that a number of the shorts might be looking to cover on this one making it an opportunity to get in on the squeeze. As with the aforementioned I’m thinking short time horizon as others jump in and start buying.