Benzinga's Microcap Movers for Thursday May 10, 2012
Below are highlights from Benzinga's daily coverage of microcap securities making big moves:
Micron Enviro System
Shares of Micron Enviro Systems (MSVS), the Great Neck, NY-based mining company, rose 400% Thursday on 494 times the average daily volume.
Micron Enviro Systems announced Thursday that management is repositioning its exploration operations for increased funding opportunities by leveraging their six gold claims in the Whitehorse mining district of Yukon, Canada.
"We've decided to pursue our gold claims in an effort to build better shareholder value," stated Bradley Rudman, President of Micron. "Opportunities like Whitehorse should afford us much greater funding opportunities and growth potential."
Mr. Rudman has also indicated that Micron is making operational adjustments that management deems favorable to the company's overall growth objectives. These modifications include not pursuing the company's coal leases in Saskatchewan, Canada, allowing leases to expire, as well as no longer managing its Lithium permits in Alberta, Canada.
Micron Enviro Systems closed at $0.0005 on Thursday.
Shares of StarTek (NYSE: SRT), the Denver, CO provider of business process outsourcing services, rose 46.70% Thursday on 10 times the average daily volume.
StarTek announced Thursday its financial results for the first quarter ended March 31, 2012. The Company reported first quarter 2012 revenue of $50.9 million and adjusted EBITDA of $1.2 million. As of March 31, 2012, the Company had approximately $10.5 million in cash and cash equivalents and no debt.
“I am very pleased with the progress made strengthening our company foundation during the quarter,” said Chad Carlson, President and Chief Executive Officer. “We grew our client revenues (excluding our largest two clients), greatly improved DSO through better process management and we are on track with our roadmap initiatives, which will bring further G&A savings into second half of this year. The continuation of successful new program launches in the Philippines and Latin America resulted in significant margin improvement in those regions,” said Chad Carlson. “In addition, I am excited about the addition of Joe Duryea as our SVP, Sales and Marketing, whom I believe has proven experience at attracting and leading successful business development teams and launching new verticals.”
StarTek closed at $2.67 on Thursday.
Shares of Dynegy (NYSE: DYN), the Houston, TX electric energy company, rose 15.78% Thursday on 4 times the average daily volume.
Dynegy announced Thursday a $21 million operating loss for its consolidated operations, which included Dynegy Inc. and the Coal segment, for the first quarter of 2012 compared to an operating loss of $49 million for the same period in 2011, which included all segments. These results included pre-tax, unrealized, net mark-to-market gains of $30 million ($30 million after-tax) and $3 million ($2 million after-tax) during the quarters ended March 31, 2012 and 2011, respectively. First quarter 2012 Adjusted EBITDA for the enterprise, which included all segments, was $24 million, including a $15 million loss attributable to DNE, compared to $87 million for the same period in 2011.
On May 1, 2012, the Company, DH, certain other subsidiaries of the Company and certain material creditors of DH entered into a Settlement Agreement and a Plan Support Agreement. The Settlement Agreement was filed with and is subject to bankruptcy court approval. The Plan Support Agreement envisions a significantly stronger balance sheet for the Company upon completion of the restructuring. The Company will have reduced debt and lease obligations by over $4 billion and expects net debt at completion of the restructuring to be approximately $600 million. A hearing on the Settlement Agreement has been scheduled for June 1, 2012. The Plan Support Agreement contemplates the filing of a revised Plan and Disclosure Statement by May 30, 2012 and the completion of the restructuring by September 28, 2012.
Dynegy closed at $0.44 on Thursday.
The information in this article is taken from public sources, press releases, and websites that cannot always be verified. Please note that investing in microcap stocks is highly speculative. The companies mentioned here are for information purposes only. Benzinga makes no claim as to the suitability of these stocks as an investment. Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.
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