The stock market climbed broadly higher on Monday, with two major market benchmarks closing at new all-time record highs. Enthusiasm about the potential for further gains came not only from the generally favorable macroeconomic environment but also from another set of merger and acquisition deals that emboldened higher-risk speculative investors. Even though the S&P climbed almost 1%, magicJack VocalTec (CALL), Capstone Turbine (CPST), and Thompson Creek Metals (TCPTF) did even better, finishing among the top stocks on Monday.
Source: magicJack.
Voice-over-Internet specialist magicJack VocalTec soared 9% on hopes that its first-quarter earnings would be able to bounce back from recent drop in the company's share price. Unfortunately, it appears that at least some of those hopes were quashed when magicJack VocalTec announced its results after the close. Total revenue fell more than 4% from the year-ago quarter, and soaring operating expenses contributed to a nearly 45% drop in net income. Still, revenue guidance came in above what investors were expecting for the full 2014 year, and magicJack VocalTec also announced an agreement with international telecom giant Telefonica to sell magicJack products in Latin America. Shares initially fell in after-hours trading, but it's uncertain whether magicJack VocalTec will give up all of its gains in the regular session tomorrow.
Source: Capstone Turbine.
Capstone Turbine jumped 14% on a relatively good day for alternative power companies of various types. Many news sources pointed to Capstone Turbine's appointment of a new Vice President of Operations, but by itself, that doesn't explain today's enthusiasm for the microturbine producer. More likely is that after shares of Capstone Turbine fell in concert with those of formerly red-hot fuel-cell companies, the stock was due for a bounce back, and shareholders viewed some third-party analysis of the stock as a bullish sign. For Capstone to succeed in the long run, though, it needs to work past its liquidity challenges and build up a more extensive customer base as quickly as possible.
Mt. Milligan. Source: Thompson Creek Metals.
Thompson Creek Metals gained 8% today on a good day for metals, as gold and copper prices rose and molybdenum has also performed well lately. The gain built on Friday's 3% move higher after an analyst upgraded the stock, but what will really send Thompson Creek Metals soaring is a combination of healthier prices in the gold and copper markets and continued production strength from the company's Mt. Milligan mine. If those dynamics work in Thompson Creek's favor, then the stock has plenty of further upside from current levels.
