Intelligent Speculator

One of the reasons I created this website was to help empower the small investor. I think individual investors who do their due diligence can pick stocks just as well as the so called pros. 

Therefore, once every month or two I will have a post dedicated to stock suggestions. If you know of any stocks that you think are good investments feel free to post a comment with the stock’s name and why you think the share price will go up. You can help other small investors by informing them of quality stocks that may not be on their radar.

SWIR – Sierra Wireless (Nasdaq) (Closing Price – $16.71)

Sierra Wireless has reported two very nice quarters since my last update and the company has given strong guidance for the upcoming quarter. However, the stock price has sold off recently on competitive fears.

Sierra Wireless reported revenue of 107.4 million and earnings per diluted share of 0.25 in Q2 of 2007. Revenues were up almost 100% year over year and EPS was up 67% year over year. Revenues and earnings also improved considerably from the prior quarter.

In Q3 of 07 Sierra Wireless reported revenue of 111.5 million and diluted EPS of 0.33. Once again the financial numbers were huge improvements year over year and EPS rose nicely over the previous quarter. (more…)

SILC – Silicom Ltd. (Nasdaq) (Closing Price on Friday – 11/23/07 – $14.07) 

The price of oil continues to drive towards $100 dollars a barrel but what is it really worth?

Every time I read an article about the price of oil it seems the fundamentals of supply and demand are left out. The stories always mention some sort of potential problem that can happen: the potential for a conflict with Iran, potential supply disruptions, etc.

It seems every minor event that is bullish for rising oil is mentioned and any bearish factor is left out. There is always an oil trader or analyst quoted as saying the price of oil is going to go up. However, there is never a discloser about whether that trader or analyst is “long” oil and therefore has an agenda to see it go up.

The actual supply of oil inventories compared to the previous year or future years is barely ever mentioned. (more…)

MCZ – Mad Catz Interactive (American Stock Exchange) – (Closing Price – 1.08)

Mad Catz Interactive reported moderate results for their fiscal 2008 second quarter and they announced the acquisition of Saitek, a PC games peripheral provider.

In the second quarter Mad Catz Interactive posted earnings of 0.02 per diluted share on revenues of 16.9 million. Revenues were down 35% from the second quarter of last year due to the “culling process to reduce low-margin product placement, the continuing impact of the console transition and strong software sales in the year-ago quarter attributable to Real World Golf 2”. Net income of 0.9 million and earnings per share of 0.02 were “both record levels for Mad Catz’ fiscal second quarter.” (more…)

CAAS – China Automotive Systmes (Nasdaq) – (Closing Price – $6.40)

China Automotive Systems has posted a couple of strong quarters since my initial buy recommendation but the stock price has been inconsistent.

In Q2 of 2007 China Automotive Systems reported revenue of 36.31 million and earnings per diluted share of 0.10. CAAS’s revenue and earnings in Q2 were considerable improvements both sequentially and year over year.

In Q3 of 2007 China Automotive Systems reported revenue of 31.20 million and earnings per diluted share of 0.11. Revenues were up year over year but down sequentially due to seasonality of the Chinese passenger vehicle market. Earnings per share however improved both sequentially and year over year. (more…)

JADE – LJ International (Nasdaq) (Closing Price – $2.18) 

I recommended shorting LJ International earlier this year for a 17% gain. I recommended to cover too soon but my short recommendation was ultimately a smart recommendation. JADE’s stock price rose as high as $13.15 earlier this year but it has now dropped all the way to $2.18 (at today’s closing price).

So what happened to LJ International and is the company worth a buy at the current price?

The problems started for LJ International when they didn’t report their fourth quarter earnings report for 2006 (they were supposed to report near the end of March). In a show of complete disregard for the investors in their company they didn’t even issue a press release stating why they didn’t report earnings. For some reason this didn’t deter investors in the company and the share price of JADE kept going up. (more…)

I plan on offering my best stock recommendations and analysis under the category of newsletter picks. This will be subscription service with a price of $299 a year (less than a dollar a day). I am currently trying to increase visitors to my website so all of my advice will be free for the time being. However, my best advice will probably be offered as newletter picks at some point in 2009.