Market Update: MIND C.T.I. Ltd. (MNDO), Herbalife Ltd. (HLF), Ballard Power Systems Inc. (USA) (BLDP)

MIND C.T.I. Ltd. (NASDAQ:MNDO) said it expected to have sufficient earnings this year that will enable it to declare dividend distribution without the need for court approval. Israeli laws require companies with insufficient earnings to obtain the approval of the court for dividend distribution. That has been the case for the company in the past years, but it expects that to change soon as its cash positions strengthens.

MIND C.T.I. Ltd. (NASDAQ:MNDO) said it had cash of $18.9 million at the latest quarter – 3Q. That compared with cash of $18.4 million at the end of the same quarter last year.

Revenue for the latest quarter increased 44% to $6.5 million. Operating income for the quarter also increased from last year. Net income was recorded at $0.06 per share, which compared favorably with $0.03 per share last year. There were no analyst estimates to compare with the results.

Expert breakdown of the MNDO candlestick chart.

Herbalife Ltd. (NYSE:HLF)’s new compliance chief, Pamela Jones Harbour, received a letter from hedge fund investor, Bill Ackman, detailing a few important things that need remedy. Ackman is tormenting the management of Herbalife with claims that the business was a fraud. He has $1 billion bet that the stock will fall to zero. His position is that regulators will eventually close the company down.

Herbalife Ltd. (NYSE:HLF)’s lengthy fight against the accusations that it was a pyramid scheme appears to be taking a toll of its financial performance. The company recorded a sharp decline in earnings while revenue in certain markets nosedived. Herbalife Ltd. (NYSE:HLF) has had to alter some of its distribution policies amid claims that it was operating like a pyramid scheme.

In the latest quarter, Herbalife Ltd. (NYSE:HLF) said its net income tumbled 92% to $11.2 million, suggesting $0.13 per share. On an adjusted basis, the company earned $1.45 per share, which was short of the estimate of $1.51 per share.

Its revenue of $1.26 billion for the latest quarter increased 3.5% from last year’s same quarter. However, sales in the America declined. North America sales were down 2.3% while sales in South and Central America fell 15%.

Are expert analyst predicting a future consolidation of HLF?

Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) was downgraded at Jennings Capital. The firm now has a “Hold” rating on the stock down from “Buy”. It also cut its target price to $3 from $5. The analysts cited that Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) missed their estimates as well as the consensus estimates in the latest reporting. Additionally, the fact that the management missed its own outlook raises questions about what to expect in the current quarter.

Nonetheless, Jennings Capital noted that Ballard Power Systems Inc. (USA) (NASDAQ:BLDP)’s prospects were promising for the long-term.

Do analyst foresee a double-top for BLDP?

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Stinson is US Markets Daily’s Senior Producer for News & Public Affairs.

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