Free Stock Picks – July Report

By: ispeculatornew
Date posted: 07.05.2008 (2:29 pm) | Write a Comment  (0 Comments)

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AIXG – Aixtron (NASDAQ) 

Aixtron has sold off considerably since my last update and I have not found any definitive reason for the sharp decline. However, I do have a theory about what might have happened.

Aixtron had been mentioned as a possible acquisition target of Applied Materials (AMAT). However, on June 6 Applied Materials announced it made a nonbinding proposal to acquire parts of ASM International (ASMI). The stock price of Aixtron dropped considerably in the days following the announcement. I believe some institution or hedge fund had taken a position in Aixtron solely because of its buyout potential and when the AMAT announcement came out they decided to bail. Since Aixtron has a low float this institutional selling caused a significant decline in the share price.

I think Aixtron is a good company to own regardless of a buyout and I think the institution or hedge fund that decided to dump Aixtron made a foolish decision. I still like the company and I am going to recommend buying some more and averaging down (I will use Friday’s closing price for calculation purposes).

CAAS – China Automotive Systems (NASDAQ) 

China Automotive Systems has reported very strong earnings the last couple of quarters but the stock price has followed the same pattern. The stock price initially trades up after good results are announced but then meanders down. The continued sell-off in China Automotive Systems is bewildering because the company continues to report improved results. In fact the company just reported preliminary Q2 results that show revenue and earnings are going to be up significantly year over year. An analyst also recently initiated coverage of China Automotive Systems with a buy recommendation.

I believe the share price of China Automotive Systems is going to go up significantly at some point and would continue to hold your shares.

DTLK – Datalink (NASDAQ) 

Datalink is set to report second quarter results on July 16. The company has guided for sequential and YOY growth in revenue and earnings. I will provide an update after the company reports Q2 results.

EGHT – 8×8 Inc. (NASDAQ) 

There hasn’t been much news for 8×8 since the last earnings report. The company did announce it was awarded an interesting new patent on July 2. I still rate the company a buy.

I will provide an update of the rest of my recommendations in my next post.

Disclaimer: I do not have a position in any of the companies mentioned.

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