Stocks we’re watching (2 Aug 2012)

Most companies will say 'our people are our greatest resource'. With that in mind, perhaps zeroing in on a people-focused organization could give your investments a boost:

*Guidance Software Inc. provides digital forensics, cybersecurity, and e-discovery software solutions. The Pasadena, Calif.-based firm's second quarter earnings show record non-GAAP revenue of $31.5 million, up by 32 per cent year-over-year. Moreover, the company inked 100 new customers to its flagship EnCase enterprise software platform in 2Q, up by 54 per cent year-over-year. Going forward, Guidance raised its revenue expectations for the year to be in the range of $128 million to $133 million, a growth of 22 per cent to 27 per cent.

*Adidas AG, one of the world's most recognized sportswear brands, saw its second quarter earnings jump by 18 per cent and the company raised its full-year earnings forecast of between 15 per cent and 17 per cent (previously forecast to be between 12 per cent and 17 per cent). Being a major sponsor at the Summer Olympic Games and the Euro Cup 2012 no doubt has helped. Adidas' net earnings beat analyst expectations and revenue was as expected but the company's Reebok brand remains a concern with revenue down more than 21 per cent. Still, investors might wish to remember that 'impossible is nothing', as the company's slogan goes.

*Rutter Inc., a Newfoundland-based engineering firm that provides technologies to the marine, defence, transportation, and oil and gas markets, saw its third quarter earnings slide to a loss of $1.2 million, or 1.6 cents per share, due to a program reduction by one of its major customers. However, things are looking up. An increase in foreign military sales and a new manufacturing contract worth $2.7 million to upgrade Canadian army vehicles was recently announced. Investors might wish to lock and load.

*Sangamo Biosciences is a biopharmaceutical company focused on the research and commercialization of DNA-binding proteins. The company recently made headlines as it's developing a treatment for HIV infection. The company's stock got off to a bullish start in 2012 and it presently sits at $4.94 per share, pulling back from $5.88 per share earlier in the year. But some market watchers are betting a rebound is afoot and we could see Sangamo's stock spike towards $7 per share.

*Williams Companies Inc. may be set for an economic turnaround. True, the large oil and gas company did see its second quarter earnings fall by 42 per cent and interstate gas-pipeline asset-holder Williams Partners LP's profit decreased by 43 per cent. Williams reported a profit of $132 million, or 21 cents per share, down from $227 million, or 38 cents per share. The company's earnings were affected by a rapid, significant decline in natural gas liquids prices due to a warm winter. But the expectation is Williams will focus more on its pipeline business. It might be worthwhile to hang in there to see what unfolds.