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Monthly Archives: October 2011

EGREGIOUS: Mexico Bullies U.S. Into Imprisoning Border Agent

A U.S. Border Patrol agent has been sentenced to two years in prison for improperly lifting the arms of a 15-year-old drug smuggling suspect while handcuffed — in what the Justice Department called a deprivation of the teenager’s constitutional right to be free from the use of unreasonable force.

Agent Jesus E. Diaz Jr. was named in a November 2009 federal grand jury indictment with deprivation of rights under color of law during an October 2008 arrest near the Rio Grande in Eagle Pass, Texas, in response to a report that illegal immigrants had crossed the river with bundles of drugs.

In a prosecution sought by the Mexican government and obtained after the suspected smuggler was given immunity to testify against the agent,Diaz was sentenced last week by U.S. District Judge Alia Moses Ludlumin San Antonio. The Mexican consulate in Eagle Pass had filed a formal written complaint just hours after the arrest, alleging that the teenager had been beaten.

Defense attorneys argued that there were no injuries or bruises on the suspected smuggler’s lower arms where the handcuffs had been placed nor any bruising resulting from an alleged knee on his back. Photos showed the only marks on his body came from the straps of the pack he carried containing the suspected drugs, they said.

Border Patrol agents found more than 150 pounds of marijuana at the arrest site.

The defense claimed that the smuggling suspect was handcuffed because he was uncooperative and resisted arrest, and that the agent had lifted his arms to force him to the ground — a near-universal police technique — while the other agents looked for the drugs.

The allegations against Diaz, 31, a seven-year veteran of the Border Patrol, initially were investigated by Homeland Security’s Office of Inspector General and U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility, which cleared the agent of any wrongdoing.

But the Internal Affairs Division at U.S. Customs and Border Protection ruled differently nearly a year later and, ultimately, the U.S. Attorney’s Office for the Western District of Texas brought charges.

The Law Enforcement Officers Advocates Council said thegovernment’s case was “based on false testimony that is contradicted by the facts.”

In a statement, the council said that because the arrest took place at about 2 a.m., darkness would have made it impossible for the government’s witnesses to have seen whether any mistreatment took place. It said Marcos Ramos, the Border Patrol agent who stood next toDiaz, testified that he did not see any mistreatment of the smuggling suspect.

The council said other witnesses made contradictory claims and some later admitted to having perjured themselves. Such admissions, thecouncil said, were ignored by the court and the government. It also said that probationary agents who claimed to have witnessed the assault raised no objections during the incident and failed to notify an on-duty supervisor until hours later.

“Instead, they went off-duty to a local ‘Whataburger’ restaurant, got their stories straight and reported it hours later to an off-duty supervisor at his home,” the council said. “Then the ‘witnesses’ went back to the station and reported their allegations.”

The council also noted that the teenager claimed no injuries in court other than sore shoulders, which the council attributed to “the weight of the drug load, approximately 75 pounds, he carried across the border.”

The U.S. Attorney’s Office for the Western District of Texas, which brought the charges, is the same office that in February 2006 — under U.S. Attorney Johnny Sutton — prosecuted Border Patrol Agents Ignacio Ramos and Jose Compean after they shot a drug-smuggling suspect, Osvaldo Aldrete-Davila, in the buttocks as he tried to flee back into Mexico after abandoning a van filled with 800 pounds of marijuana. Aldrete-Davila also was given immunity in the case and testified against the agents.

Agents Ramos and Compean were convicted and sentenced to 11 and 12 years in prison, respectively.

READ THE REST HERE

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TQNT CITES WEAKNESS FROM CHINA

TriQuint Semi: Details from ongoing earnings call  (7.17 +0.29)
Mgmt notes revs were down sequentially, citing reduced demand from largest customer and weakness in China… Says Foxconn was the only customer to exceed 10%… Utilization of factories will decline in Q4 due to inventory reduction, which will impact gross margins… Mgmt says participation in Android ramp is below market. Says substantial growth to TQNT is likely delayed until mid-2012, which will put pressure on margins for a few quarters… TQNT is -14.8% at 6.10 in after-hours.
TriQuint Semi: Additional details from earnings call  (7.17 +0.29)
TQNT mgmt repeats they’re seeing lower demand from their largest customer, in legacy products. Adds that they’re also seeing lower infrastructure demand, from widely reported macro headwinds, and seeing a slower traction in Android.

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MDR HAS BAD NEWS FOR YOU

McDermott sees Q3 revs of $870-880 mln vs. $896.6 mln Capital IQ Consensus Estimates;

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ATR SEES DEAD PEOPLE FOR Q4

AptarGroup misses by $0.02, beats on revs; guides Q4 EPS below consensus  (48.95 +0.60)
Reports Q3 (Sep) earnings of $0.72 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.74; revenues rose 16.2% year/year to $601.2 mln vs the $591.2 mln consensus. Co issues downside guidance for Q4, sees EPS of $0.57-0.62 vs. $0.66 Capital IQ Consensus Estimate.

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TAL SWINGS AND MISSES!

Tal International beats by $0.10, misses on revs  (29.60 +0.14)
Reports Q3 (Sep) earnings of $1.01 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.91; revenues rose 41.1% year/year to $120.9 mln vs the $127 mln consensus. The co also reported “In general, we expect our operating and financial performance to remain strong for the rest of the year. We expect our leasing revenues to grow moderately from the third quarter to the fourth quarter despite the end of the peak season for dry containers as we will benefit from a full period of revenue from containers placed on hire in the third quarter. However, we expect disposal gains to decrease as used container sale prices begin to return to historical levels. Overall, we expect our Adjusted pre-tax income in the fourth quarter of 2011 to be flat or down slightly from the third quarter level.” Looking forward into 2012, we currently expect the market conditions supporting our strong performance – solid trade growth, a favorable supply / demand balance for containers and limited direct container purchases by our customers – to continue into next year. Based on this, we expect our utilization to remain historically high in 2012 and expect to continue to have attractive opportunities to invest in our fleet and grow our business. Leasing revenues for 2012 should be well above the 2011 (Current consensus rev growth for FY12 is 35.1%) level due to the strong growth achieved over the course of this year and likely opportunities for investments next year. However, we expect used container sale prices to continue to moderate and we expect that our disposal gains will decrease from the very high levels reached in 2011 and be more in line with our historical experience next year.” The main risks we see to our positive expectations for 2012 include a renewed severe global recession and the potential for a major customer default. We don’t currently consider either of these events likely, but we are wary of a variety of potential risks for 2012 due to the current increased level of uncertainty in the global economy and the renewed financial pressures facing our customers.”

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EPAX DISGRACES ITSELF WITH EPS REPORT

Ambassadors Group reports EPS of $0.34 vs. $0.40 two analyst estimate; total revenue declined 11% y/y to $26.7 mln vs. $23.1 estimate   (5.99 +0.12)
For FY11, co expectes gross revenue for all programs and operations to be down 4-5% compared to 2010 and net income before any special items of between $4-$5 mln.

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HORRIFIC MISS: USMO

USA Mobility reports Q3 EPS of $0.51, ex-items, vs. $0.65 single analyst estimate; revenue was $61.5 mln vs $63.44 mln estimate  (15.99 +0.82)
Co reaffirms FY11 guidance, sees total revs of $235-$246 mln vs. $248.03 mln single analyst estimate, and sees operating expenses of $162-$174 mln.

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ANOTHER TRIPLE LOSER: IPHI

Inphi reports EPS in-line, misses on revs; guides Q4 EPS above consensus, revs below consensus  (10.54 +0.46)
Reports Q3 (Sep) earnings of $0.01 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.01; revenues fell 24.7% year/year to $16.5 mln vs the $16.8 mln consensus. Co issues mixed guidance for Q4, sees EPS of $(0.01)-$0.02, excluding non-recurring items, vs. ($0.03) Capital IQ Consensus Estimate; sees Q4 revs of $15.5-17.5 mln vs. $18.06 mln Capital IQ Consensus Estimate. “We expect our iMB and RDIMM products to benefit from strong demand for next-generation computing platforms in early 2012. In addition, now that our new 100GbE iPHY CMOS solutions are sampling, we are working hard to translate the high degree of interest into additional design wins in both the networking and data center markets. We believe strongly in our growth opportunities for 2012 and beyond.”

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CLOSE BUT NO CIGAR: NETL MISSES

NetLogic beats by $0.08, misses on revs  (49.15 +0.05)
Reports Q3 (Sep) earnings of $0.47 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus Estimate of $0.39; revenues rose 6.7% year/year to $106.8 mln vs the $108 mln consensus.

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FOE: MISS, MISS and MISS

Ferro misses by $0.04, misses on revs; guides FY11 EPS, revs below consensus  (6.47 +0.29)
Reports Q3 (Sep) earnings of $0.23 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus Estimate of $0.27; revenues rose 3.3% year/year to $546.1 mln vs the $572.8 mln consensus. Co issues downside guidance for FY11, lowers EPS to $0.70-0.80, excluding non-recurring items, from $1.08-1.18 vs. $1.07 Capital IQ Consensus Estimate; lowers FY11 revs to $2.15-2.20 bln from $2.30-2.35 bln vs. $2.31 bln Capital IQ Consensus Estimate. The reduced sales forecast is primarily due to lower sales expectations for electronic materials products, including conductive pastes, metal powders and surface finishing products. Weakening economic conditions, particularly in Europe and the United States, also reduced sales forecasts for a number of product lines, particularly those used in building and construction applications. In addition, the co has updated its foreign currency exchange rate assumptions for the final three months of the year to be consistent with current exchange rates. The co expects sales of conductive pastes to decline by 25 to 35% in the 2011 fourth quarter compared with the sales recorded in the third quarter, based on current order patterns and declines in customer production plans. Previously, the co had expected demand for conductive pastes to begin to recover during the last three months of 2011. In addition, sales of other electronic materials, including metal powders and surface finishing materials, also are expected to decline by 20 to 25 percent in the fourth quarter because of reduced demand from consumer electronics and semiconductor-related applications. “We expect weaker fourth-quarter sales for a number of our products as global economic activity slows.”

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KBR MISSES ON REVENUES

KBR reports Q3 (Sep) results, misses on revs; guides FY11 EPS in-line  (29.15 +0.55)
Reports Q3 (Sep) earnings of $1.22 per share, including $0.60 favorable impact of discrete tax items benefit, may not be comparable to the Capital IQ Consensus Estimate of $0.68; revenues fell 4.0% year/year to $2.4 bln vs the $2.43 bln consensus. Co issues guidance for FY11, sees EPS of $3.15-3.30, may not compare to $2.65 Capital IQ Consensus Estimate.

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EGN GIVES BAD NEWS ON EPS, SO SORRY

Energen beats by $0.01, beats on revs; guides FY11 EPS below consensus; guides FY12 EPS below consensus  (50.05 +0.88)
Reports Q3 (Sep) earnings of $0.75 per share, ex-items, $0.01 better than the Capital IQ Consensus Estimate of $0.74; revenues rose 27.0% year/year to $375.6 mln vs the $336.1 mln consensus. Co issues downside guidance for FY11, sees EPS of $3.70-$3.90, ex-items vs. $3.98 Capital IQ Consensus Estimate. Co sees after-tax cash flow of $687-$712 mln. Co issues downside guidance for FY12, sees EPS of $3.40-$3.80, ex-items, vs. $4.06 Capital IQ Consensus Estimate. Co sees after-tax cash flow of $769-$798 mln.

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ENTG DOESN’T EVEN COME CLOSE TO BEATING ESTIMATES

Entegris misses by $0.01, misses on revs; guides Q4 EPS below consensus, revs below consensus  (8.27 +0.27)
Reports Q3 (Sep) earnings of $0.17 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.18; revenues fell 2.9% year/year to $173 mln vs the $187 mln consensus. Co issues downside guidance for Q4, sees EPS of $0.11-0.15, excluding non-recurring items, vs. $0.17 Capital IQ Consensus Estimate; sees Q4 revs of $155-165 mln vs. $182.77 mln Capital IQ Consensus Estimate.

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STALLED HORSE: CHDN MISSES ON REVS

Churchill Downs reports Q3 results, misses on revs  (44.74 +1.38)
Reports Q3 (Sep) earnings of $1.16 per share, includes items, appears to not be comparable to the Capital IQ Consensus Estimate of $0.33; revenues rose 12.7% year/year to $166.3 mln vs the $169.8 mln consensus.

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RE MISSES

Everest Re beats by $0.62, misses on revs  (85.94 -0.05)
Reports Q3 (Sep) earnings of $2.70 per share, excluding non-recurring items, $0.62 better than the Capital IQ Consensus Estimate of $2.08; revenues fell 13.0% year/year to $1.02 bln vs the $1.11 bln consensus.

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CGI SHORT ON REVENUES

Celadon Group reports EPS in-line, misses on revs  (10.82 +0.08)
Reports Q1 (Sep) earnings of $0.24 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.24; revenues rose 0.9% year/year to $141.5 mln vs the $152.3 mln consensus.

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ESIO MISSES AND GUIDES LOWER

Electro Scientific misses by $0.04, misses on revs; guides Q3 EPS below consensus, revs below consensus  (12.51 +0.14)
Reports Q2 (Sep) earnings of $0.32 per share, $0.04 worse than the Capital IQ Consensus Estimate of $0.36; revenues rose 6.4% year/year to $81.9 mln vs the $90 mln consensus. Co issues downside guidance for Q3, sees EPS of ‘Breakeven or slightly below’ vs. $0.20 Capital IQ Consensus Estimate; sees Q3 revs of ~$50 mln vs. $73.43 mln Capital IQ Consensus Estimate.

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KNX COMES UP SHORT

Knight Transportation reports EPS in-line, misses on revs  (14.44 -0.21)
Reports Q3 (Sep) earnings of $0.21 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.21; revenues rose 18.7% year/year to $227.1 mln vs the $229.9 mln consensus.

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