Earnings Date: 26-Mar-08 AMC
Company: Robbins & Myers, Inc.
Industry: Diversified Machinery
Summary: Robbins & Myers Inc. is engaged in supplying of engineered equipment and systems for applications in global energy, industrial, chemical and pharmaceutical markets. The segments in which the Company operates include Fluid Management, Process Solutions and Romaco. The Fluid Management segment is comprised of the R&M Energy Systems, Moyno and Tarby product lines. The Process Solutions segment is comprised of the Pfaudler, Tycon Technoglass, Chemineer and Edlon product lines. The Romaco segment includes the FrymaKoruma, Noack, Siebler, Macofar, Promatic, Unipac and Bosspak product lines. As of March 31, 2007, the Company sold its Zanchetta product line. Subsequently, it also sold off Hapa and Laetus product lines.
Gapping Analysis: Stock price gapped up 4/4 in past four earnings.
Technical Analysis: Uptrend & close to 52-week high
MSN rating: 8
Avg Daily Vol: 418k
Closing price (24-Mar): $38.20
Target FY end: $47.34 (3 Anaylsts: High)
Debt/Equity ratio: 0.24 (Industry: 0.42)
ROE (TTM): 13.60%
ROA (TTM): 7.2%
Net Profit Margin (TTM): 7.8%.
Short Ratio: 8.9
Insider Trading: No significant buying recently.
25-Mar-08: Announced regular quarterly cash dividend payment of $0.0375 per share. Dividend is payable on 8-May-08 to shareholders of record as of 9-Apr-08.
9-Jan-08: Raised Q108 EPS guidance of $3.30-$3.50 to $3.55-$3.75 on the strength of first quarter performance. Established Q208 EPS guidance of $0.78-$0.88.
9-Jan-08: Announced 2-for-1 stock split. Shareholders will receive one additional share for each common share of the Company owned as of 4-Feb-08. Additional shares will be issued on 28-Feb-08.
24-Mar-08: BTO Apr08 40 C @ $2.00
26-Mar-08: STC Apr08 40 C @ $2.40 when market starting to drift lower after Dept of Energy reports lower than expected crude inventories. Looking for better opportunity to buy back at <$2.00 price.
RBN beats by $0.01, beats on revs; guides Q3 EPS in-line; raises FY08 EPS in-line.
Stock closed at $42.22 but dropped to $39.35 after earnings report.
IV increased in the afternoon and Apr08 40 Call closed at $4.90. Made two mistakes in this trade. Could have closed the position at $3.60 before the New Home Sales report. Otherwise, should have waited to close before market close to make full use of the higher IV.