Archive for January, 2008

Silicom Reports Nice Q4 2007 Results

By: admin | Date posted: 01.28.2008 (8:52 pm)

SILC – Silicom Limited (Nasdaq) – (Closing Price – $13.92) 

Silicom Limited announced fourth quarter results today and reported increases in revenue and EPS. The share price responded with a gain over 17%.

Silicom reported revenue of 7.48 million which was a 13% improvement over last quarter and a 49% improvement over the comparable quarter last year. EPS came in at $0.27 which was also an improvement sequentially ($0.25) and YOY ($0.20).

Even with today’s gain of 17% Silicom Limited is trading at a trailing PE of 14. That is very cheap considering the growth Silicom Limited has experienced over the last couple of years. The WAN optimization sector is projected to show strong growth for the next few years which will benefit Silicom Limited in future quarters.

The stock price of Silicom Limited is trading very near my initial recommendation and I still think the company is a good buying opportunity. I would recommend that you continue to hold your shares or even accumulate some more.

Disclaimer: I have no position in SILC.

More on this topic (What's this?)
(SILC) Silicom Poised for New Growth (Stock Blog Hub, 10/12/10)
Silicom Reports Q3 Revenues of $7.4M with $0.21 EPS (Benzinga, 10/25/10)
Read more on Silicom at Wikinvest

New Stock Pick: 8×8 Inc. (EGHT)

By: admin | Date posted: 01.27.2008 (1:33 pm)

EGHT – 8×8 Inc. (Nasdaq) – (Closing Price on Friday 1/25/08 – $1.20) 

8×8 Inc. is a company I have been following for a few quarters and I think now is an opportune time to buy some shares.

8×8 Inc. is a VoIP company that enables broadband internet users to add digital voice and video communications to their high speed internet connections. The company also offers a hosted communications solution, Packet8 Virtual Office, which delivers digital voice services coupled with powerful features for small and medium sized businesses and call centers.

The amount of companies subscribing to Packet8 Virtual Office has been quickly growing over the past year. On January 8 of 2007, 8×8 Inc. reported over 6,000 companies subscribed to Packet8 Virtual Office and earlier this year 8×8 Inc. reported over 10,000 companies were using Packet8 Virtual Office.

8×8 Inc. also got an influx of residential customers last year when a couple of other VoIP companies (SunRocket and an unnamed company) went out of business and referred their customers to 8×8 Inc. (more…)

More on this topic (What's this?)
Traders and Investors Could See Gains of 54% or More from This Small Stock (Jutia Group, 6/14/11)
ADES, EGHT, PCYC, SODA Among Charts to Watch (Wall Street Sector Selector, 6/7/11)
Read more on 8x8 at Wikinvest

Prince of Wall Street

By: admin | Date posted: 01.26.2008 (3:25 pm)

The Prince of Wall Street is an informative stock blog that focuses on value investing. The blog also mixes in commentary, Wall Street gossip, and adds some humor to its posts. The Prince of Wall Street is one of the better looking stock blogs that I have come across and it is definitely worth checking out.

Some recent posts that I found interesting are Technical Trading is Bogus, Here’s Why (a sentiment I share), Platinum Equity’s Purchase of Covad (which gives a more in depth analysis of the DVW deal I mentioned a month ago), and Money Never Sleeps Pal (which reports a sequel to the movie Wall Street is coming out).

I would like to thank Prince of Wall Street for adding my site to its favorite sites for 2008.

More on this topic (What's this?)
Massive Rally in Platinum (Wealth Daily, 1/28/12)
The Gold/Platinum Ratio (Wealth Daily, 1/6/12)
Read more on Covad Communications Group, Platinum, Value Investing at Wikinvest

Sunpower Corporation Cover Recommendation

By: admin | Date posted: 01.24.2008 (11:13 pm)

SPWR – Sunpower Corporation (Nasdaq) – (Closing Price – $69.21)

Sunpower Corporation (SPWR) announced their fourth quarter 2007 earnings today and reported disappointing results.

Sunpower reported revenue of 224.3 million and GAAP earnings of 0.06 per share. Revenue and EPS were both down from the prior quarter’s results of revenue of 234.3 million and EPS of 0.10 per share. Sunpower gave mediocre guidance of revenue between 230 and 250 million and GAAP EPS of 0.13 – 0.16 for next quarter. The company also raised full year guidance for 2008 EPS between 1.17 and 1.27 per share.

The share price of Sunpower was down over five dollars today but finished well above its intraday low of $60.25. In my opinion Sunpower is still way overvalued but I am going to recommend to cover. (more…)

Home Solutions of America: Where Is the SEC?

By: admin | Date posted: 01.20.2008 (1:25 pm)

The management of Home Solutions of America has been misleading investors for their own self interest for the last couple of years while the Securities and Exchange Commission has been negligent in its duty to protect investors.

I first took notice of Home Solutions of America when the company’s stock price made a run from around a dollar to five dollars in 2005. The stock price benefited when a few hurricanes hit the Gulf Coast that year (Home Solutions of America provides restoration and construction services).

The stock price stalled for a couple of quarters but then jumped all the way up to fourteen dollars on improved earnings and announcements of new contracts. The peak of this rise coincided with a press release stating a subsidiary of Home Solutions of America had been awarded a contract by American Renaissance Homes to be the exclusive provider of delivery and installation services for modular housing in New Orleans and surrounding areas. However, it was found out by Stocklemon.com that American Renaissance Homes was established and funded by Home Solutions of America only five days before the press release was issued. Also, insiders sold a huge amount of shares right after the press release was issued. (more…)

Sell North American Galvanizing (NGA)

By: admin | Date posted: 01.08.2008 (8:13 pm)

NGA – North American Galvanizing (Nasdaq) – (Closing Price – 5.45)

North American Galvanizing & Coatings is down quite a bit since I originally recommended it and I am going to recommend to sell.

A competitor of NGA, Azz Incorporated (AZZ) reported their third quarter results on Jan. 4 and reported a sequential decrease in revenue and operating income for their galvanizing segment. Consequently, due to the weak market and the potential for an earnings let down in the coming quarter I think it is best just to sell North American Galvanizing and take a loss.

Disclaimer: I have no position in NGA.

More on this topic (What's this?)
Fasten Your Seat Belts for a Bumpy Ride (Money Morning, 1/2/12)
An Important Sell Signal (Comments for thetechnicaltake, 1/29/12)
Read more on AZZ, Sell, Wharf (HLDGS) at Wikinvest
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