Posts Tagged ‘free stock picks’

EGHT Q4 08 Results

By: admin | Date posted: 05.24.2008 (2:51 pm)

EGHT – 8×8 Inc. (NASDAQ) – (Closing Price on Friday 5/23/08 – $1.19) 

8×8 Inc. reported fourth quarter results on May 21 and the company continues to show improvement in its financial numbers.

8×8 Inc. reported revenue of 16.33 million and diluted EPS of 0.01. Revenue was up 14% YOY and EPS improved six cents from a loss of 0.05 last year. Gross margin also improved considerably from last year.

8×8 Inc. continues to be on the right track and I would continue to hold your shares or accumulate more. As earnings start to increase the share price should follow in tandem.

Disclaimer: I have no position in EGHT.

China Automotive Systems Releases Impressive Q1 08 Results

By: admin | Date posted: 05.14.2008 (9:48 pm)

CAAS – China Automotive Systems (NASDAQ) – (Closing Price – $6.85) 

China Automotive Systems announced impressive first quarter results today and the stock price responded by trading up 25% on the news.

China Automotive Systems reported revenue of 41.47 million and diluted EPS of 0.18. Revenue improved 46% year over year and 10% sequentially. Diluted EPS improved 157% year over year and 100% sequentially.

Even with the big jump today China Automotive is only trading at a trailing PE ratio of 14. That is very cheap considering the strong growth in revenue and earnings. If China Automotive Systems can continue to show both top and bottom line improvement in future quarters China Automotive Sytems will reach a much higher share price. I think the share price could easily retest its highs of the past few years ($12 – $14 range) in the next few quarters. Therefore, I think it would be wise to be patient and hold onto your shares.

Short term I also think the share price will see more upside. Over 7% of the float is short and I think the shorts will continue to be squeezed over the next few days.

I don’t see any reason to sell I would continue to hold your shares of China Automotive Systems.

Disclaimer: I have no position in CAAS.

Free Stock Picks – May Report

By: admin | Date posted: 05.04.2008 (9:02 pm)

SWC – Stillwater Mining Company (NYSE)
I forgot to update Stillwater Mining Company so here is my take on SWC. I still think the stock price of SWC is going to continue to decline. The stock price of SWC was trading in the ten dollar range before it had its huge run and I expect the stock price to go back to that range as platinum and palladium prices continue to correct. I would continue to hold your short position.

Disclaimer: I have no position in SWC.

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These Two Stocks Are Poised to Gain From a Palladium Rally (Contrarian Profits, 7/18/08)
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Read more on Stillwater Mining Company at Wikinvest

Free Stock Picks – May Report

By: admin | Date posted: 05.04.2008 (1:26 pm)

AIXG – Aixtron (NASDAQ)
Aixtron has announced a couple of new orders since my initial recommendation and the stock price is already up 11%. A dividend will most likely be approved at the shareholders meeting on May 14 and this should provide a boost to the stock price. Aixtron reported Q1 results last year on May 8 so they should report earnings pretty soon.

AMR – American Airlines (NYSE)
All airline stocks had a strong rally since my initial recommendation but they pulled back on Friday due to profit taking and a rise in oil prices. AMR was already close to my price target but I didn’t give a sell recommendation because I think oil is going to continue to go down short term. I think the dollar will continue to strengthen and the demand for oil is going to decrease. This should push down oil prices and help airline stocks.

CAAS – China Automotive (NASDAQ)
China Automotive reported decent results in March and the stock price initially went up but has sold off since. They are set to report Q1 results this month so I will provide an update then. (more…)

New Stock Pick: AMR

By: admin | Date posted: 04.29.2008 (11:15 pm)

AMR – American Airlines (NYSE) – (Closing Price – $8.53)

The stock prices of airlines have taken quite a hit in the last year as speculators sent the price of oil up to record levels. In the past few days oil has pulled back from its record highs and the airlines have started to rally. I expect oil to continue to sell off and I think buying airline stocks is a good short term play. There is also talk of consolidation in the airline industry so this should also bode well for airline stocks.

I think oil will continue to sell off for a couple of reasons. First, the Fed is expected to signal that it is going to stop lowering interest rates for a while. This will help the dollar strengthen and it takes away the major reason speculators have been bidding up oil (they have been buying oil as a hedge against the falling dollar). Second, the high price of oil and the sluggish economy is reducing demand for oil. I think future supply reports will show this.

I believe the entire airline industry is going to rally short term so you have a lot of companies to choose from. I am going to give a buy recommendation of American Airlines with a price target of ten dollars in the next month.

Disclaimer: I have no position in airline stocks.

SILC Q1 08 Results

By: admin | Date posted: 04.29.2008 (10:04 pm)

SILC – Silicom Limited (NASDAQ) – (Closing Price – $9.50) 

Silicom Ltd. announced their first quarter 2008 results yesterday and reported an increase in revenue but flat growth in earnings. Amazingly, the stock price has dropped more than 25% since the news.

Silicom reported revenue of 7.70 million which was up 27% compared to Q1 2007 and up 3% compared to the prior quarter. EPS came in at 0.26 per diluted share. This was an improvement of 0.04 over last year but EPS has been flat the last few quarters.

I don’t think flat growth merited such a huge sell off considering the fact that businesses have been cautious in their spending due to the uncertain economic climate (flat growth could actually be looked at as a positive). Also, Silicom wasn’t trading at an expensive valuation before earnings so it shouldn’t have sold off so much after earnings.

I think the share price of Silicom may continue to trade flat or down for a quarter two if companies continue to cut back on their spending but the stock price will quickly rebound when the economic picture starts to look better. I think it would be wise to be patient with Silicom and I am going to recommend to continue holding your shares.

Disclaimer: I currently own shares of SILC.

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Read more on Silicom at Wikinvest

Free Stock Picks April Update Part 2

By: admin | Date posted: 04.03.2008 (9:41 pm)

Here are the rest of my current stock picks:

SILC – Silicom Limited
The stock price of Silicom Limited have been erratic since my initial buy recommendation but the stock price is currently trending up. Silicom is set to report first quarter earnings on April 28 and I expect there will be a run-up in price before earnings. I will provide another update after earnings are announced.

SWIR – Sierra Wireless:
The stock price of Sierra Wireless has also been erratic since my last update but the stock price is currently undergoing a pretty strong rally. Sierra Wireless is heavily shorted and a short squeeze is already underway. The fundamentals of Sierra Wireless didn’t merit such a huge selloff and I think the stock price could easily rally to 20 – 25 dollars after earnings. Sierra Wireless reported first quarter results last year on April 26 so they should report earnings later this month. (You should also check out NVTL).

Short Recommendation:

SWC – Stillwater Mining Company:
Both Stillwater Mining Company and PAL have sold off since my initial short recommendation but they haven’t dropped as much as I expected. I still think there is further downside left and I would continue to hold your short position.

Disclaimer: I have a long position in SILC. I don’t have a position in the other stocks mentioned.

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Read more on Sierra Wireless, Silicom at Wikinvest

Free Stock Picks April Update

By: admin | Date posted: 04.02.2008 (10:27 pm)

I usually don’t write about my stock recommendations unless they report quarterly earnings or some other important event happens (press release, news event, etc). However, I am going to start updating all my recommendations at the beginning of each month to keep you better informed on how each stock is doing and report on any important news.

Buy/Hold Recommendations:
CAAS – China Automotive Systems:
China Automotive Systems reported sound Q4 results on March 25 and the stock price has rebounded quite a bit from its lows. Today, the company announced that it completed its 35.5% acquisition of Henglong Automotive Parts and the transaction will be immediately accretive to earnings. China Automotive Systems is trading at a nice valuation and the company’s fundamentals should continue to improve in the coming year. I still think the company is a good buy. (more…)

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Read more on China Automotive Systems, Datalink at Wikinvest

The Credit Crisis and Potential Shorts

By: admin | Date posted: 03.19.2008 (10:34 pm)

Financial companies have seen severe declines over the past year and they still have the potential to go down a lot further. The reason financial companies are on such shaky ground is because the risk of rising foreclosures and loan defaults has resulted in a really severe credit crisis. For those of you who don’t understand the current credit fiasco I will try to explain it and show why financial companies still present good shorting opportunities.

Before I start I want to point out that the stock market surged on the Fed cut just like I predicted and also sold off quickly just like I predicted. If you bought financials yesterday I hope you sold the news and got out quickly. If you did play the short term volatility I would recommend that you take new short positions in financials again. Now I’ll go back to the credit fiasco.

The last time the Fed tried to fight off a recession Alan Greenspan, who deserves some blame for the current credit mess, lowered interest rates to ridiculously low levels. Consequently, there was plenty of easy money to go around. Since interest rates were at extremely low levels banks were happy to provide consumers with just about any type of loan they wanted without much regard to the credit worthiness of the consumer. (more…)

BAC Cover Recommendation

By: admin | Date posted: 03.17.2008 (8:40 pm)

BAC – Bank of America (NYSE) – (Closing Price – $35.96) 

Bank of America is down moderately since my initial short recommendation and I think now would be a good time to cover and take the gain off the table. I still think financial companies are going to see further weakness but they will most likely rally tomorrow when the Fed cuts interest rates. If the Fed cuts by a point, which I have a feeling is going to happen, financials could get a significant short term boost. Instead of holding through the volatility I think it would be wise just to cover.

If you shorted Bank of America when I gave my recommendation you are sitting on a 9.5% gain in just a couple of weeks. That is not an insignificant gain considering the short amount of time it took to obtain it. You could have made an even better gain shorting other financial companies when I gave my recommendation. If you shorted Bear Sterns (BSC) you would be sitting on a huge gain.

If you are a very short term trader and like to trade in and out of stocks it may be wise to consider buying financial stocks tomorrow, especially if the Fed cuts by a point. If financials rally tomorrow I would trade the news but get out quickly.

Disclaimer: I have no position in BAC, BSC, or any other financial company.

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