Falling Knives: OMNOVA Solutions (OMN), HB Fuller (FUL), China Information Technology (CNIT)

Posted In Business, Technology - By Rachelle Stevens On Thursday, September 25th, 2014 With 0 Comments

Dallas, Texas 09/25/2014 (ustradevoice) – OMNOVA Solutions Inc. (NYSE:OMN) is paying the price of its lackluster 3Q2014 results. Investors seem not to understand why the company had to report poor results in the quarter, and that has also raised questions about the future of the stock. However, the company issued an update to say that it expects sequential profitability improvement from 3Q to 4Q. As for 3Q that has caused havoc in the stock already, OMNOVA Solutions (OMN) reported a decline in net income to $1.8 million or $0.04 a share. That compared unfavorably with a net income of $9 million or $0.19 a share in the same period a year ago. Sales also plunged 3.5% to $252.1 million. All that came as bad news that evaporated investor confidence, leaving OMNOVA Solutions Inc. (NYSE:OMN) to fall.

There is very little to hold HB Fuller Co (NYSE:FUL) up after the company disappointed in more than one way. The specialty chemical products maker announced 3Q results that fell short of estimates. As if that was not enough, the company went on to forecast narrowly for the current and that appears to have sounded like adding salt to an open wound. Shares of HB Fuller Co (NYSE:FUL) touched a new 12-month low of $36.92 early Thursday because of the poor results and weak forecast. The company reported 3Q EPS of $0.42, sharply below $0.76 that analysts estimated and down from $0.74 a year ago. It forecast 4Q EPS in the range of $0.60-$0.70, yet the consensus estimate calls for $0.85.

China Information Technology, Inc. (NASDAQ:CNIT) – Ordinary Shares has announced an equity transfer agreement. The deal will see the company acquiring 100% equity stake in Shenzhen Biznest Internet Software Co Ltd from Shenzhen Yunchao Software Internet Co Ltd. The company (NASDAQ: CNIT) announced that it will pay about $15 million in cash for the deal and issue 1,543,455 ordinary shares towards the same. The value of the transaction is 10 times the projected 2014 net income of Biznest.

About the Author

- Rachelle Stevens covers politics for US Trade Voice, including the 2013 mayoral race. During the 2012 presidential election, Rachelle traveled the country to tell the stories of voters in early primary battlegrounds and swing states. Rachelle's work has been honored by the New York Press Club, Capitolbeat, and the Associated Press Broadcasters Associations of New York, Connecticut and West Virginia.

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