BOSTON ( TheStreet) -- Orient Paper (ONP) was one of several stocks trading below $5 and moving on above-average volume Monday after the Chinese paper company reported second-quarter financial results.
Orient Paper said second-quarter revenue jumped 70.8% to $38.3 million, matching the company's preannouncement late last month. Excluding $1.1 million in one-time items, Orient Paper had adjusted net income of $6.4 million, or 36 cents a share, up from year-ago net income of $2.5 million, or 22 cents a share.
Orient Paper also said production in the third quarter may be lower until new steam boilers are installed and inspected possibly in the fourth quarter. "As a result of all of the above mentioned factors, we now expect fiscal year 2010 adjusted net income of $16.2 million compared to our previously provided guidance of $18 million," the company said in a statement.
The earnings release also made reference to Orient Paper's ongoing legal battle with a research firm. In late June, Muddy Waters Research alleged in its inaugural research report that Orient Paper is a "fraud" and that the company "overstated its 2008 revenue by 27 times." Earlier this month, Orient paper said law firm Loeb & Loeb has retained Deloitte & Touche Financial Advisory Services Limited to assist with an investigation into the claims.Shares of Orient Paper jumped by 47 cents, or 10.9%, to $4.80. Volume topped 23,000 shares at the start of trading, compared to the average daily share volume of 1.02 million. Also on the upside, ICx Technologies (ICXT) rallied by 79 cents, or 11.7%, to $7.54 after FLIR Systems (FLIR) said it would acquire the company in a $274 million deal that values ICx at $7.55 per share. Volume topped 118,000 shares at the start of trading, compared to the average daily share volume of 45,000. Elsewhere, China Armco Metals (CNAM) slumped by 55 cents, or 13.7%, to $3.47 after the company posted a second-quarter loss of 2 cents a share, swinging from a year-ago profit of 31 cents a share. Revenue fell nearly 25% to $17 million, China Armco said. Volume topped 15,000 shares, compared to the average daily share volume of 507,000. Corinthian Colleges (COCO) dropped by 76 cents, or 11.4%, to $5.90 after Deutsche Bank downgraded the stock to hold from buy. This comes after the U.S. Department of Education released data Friday on estimated student loan repayment rates, which will be used for more oversight over the for-profit school industry. A proposed "gainful employment" rule would require for-profit schools to show that at least 45% of former students are able to pay off loan principals, or that the debt of former students falls below 8% of total income or 20% discretionary income. If for-profit schools cannot meet the "gainful employment" requirement, they would not qualify for federal aid. Volume in Corinthian Colleges topped 125,000 shares in the first few minutes of trading, compared to the average daily share volume of 4.31 million. -- Written by Robert Holmes in Boston. Check out all of Monday's high-volume, under-$10 stocks at the Dollar Store. View the Dollar Store portfolio on StockPickr. Follow Robert Holmes on Twitter and become a fan of TheStreet.com on Facebook.
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