Free Stock Picks April Update

By: ispeculatornew
Date posted: 04.02.2008 (10:27 pm) | Write a Comment  (2 Comments)

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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.

DTLK – Datalink:
Datalink reported fourth quarter 2007 results on Feb 6. and posted good numbers for the quarter (Revenue of 50.7 million and diluted EPS of 0.11). However, the company issued guidance for lower revenue and earnings for the upcoming quarter (Revenue: 44-48 million, EPS: 0 – 0.04). Q1 is traditionally slower than Q4, so this isn’t a big deal.

Datalink has rebounded from the losses it posted early last year but the stock price still has taken a hit. A big cause of this is the fear that a recession will make companies more conservative in their spending. This fear of a cutback in spending has weighed on the share price of a lot of tech companies. Also, small caps and tech stocks have been sold off in favor of less “risky” investments. This has also depressed the share price.

The stock price of Datalink has found pretty solid support in the upper three dollar range and I would continue to hold and see what they report in Q1. Datalink issued Q1 results last year on April 25 so they should report earnings later this month. I will provide an update then.

EGHT – 8×8 Inc.
There hasn’t been any major news for 8×8. The company has sold off since my initial recommendation but most small caps and tech stocks have been selling off. I still think the company is a buy and I don’t expect much to happen until the company reports their fourth quarter earnings in May.

MCZ – Madcatz:
Madcatz has fallen all the back to the prices I initially recommended the company at. I think the selling has been way overdone and I don’t think it would be wise to sell at the current level. The company is currently trading for less than its worth and the stock price will go up later in the year. I would continue to hold.

I will provide updates on the rest of my stock recommendations tomorrow.

Disclaimer: I have no position in any of the stocks mentioned.

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2 Comments

  1. Comment by Eve — April 3, 2008 @ 1:35 am

    Nice job!

  2. Comment by admin — April 3, 2008 @ 8:17 pm

    Thanks.

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