Posts Tagged ‘buy recommendation’

LJ International: Speculative Buy Recommendation

By: ispeculatornew | Date posted: 06.15.2008 (9:54 pm)

JADE – LJ International (NASDAQ) – (Closing Price of Friday: 6/15/08 – $3.50)

LJ International is a company I have followed for a few years and I have written about the company a couple of times on my website. I recommended the company as a short recommendation for a 17% gain last year and I also recommended staying away from the company a few months after I gave my cover recommendation.

In retrospect, my last post to avoid the company because of credibility issues was actually a bad call because I knew speculators were going to bid up the stock price in anticipation of the company releasing earnings. After I wrote my last post on LJ International the stock price more than doubled in just a few weeks. However, the company never reported earnings and the stock price has been meandering ever since. (more…)

NGA – Initiation of Buy Recommendation

By: ispeculatornew | Date posted: 07.09.2007 (12:00 am)

NGA – North American Galvanizing & Coatings (American Stock Exchange) (Closing Price – $8.36)

North American Galvanizing & Coatings (NGA) is a company with solid fundamentals and increasing earnings. However, the share price has had quite a run in the last few months and share price can be volatile so NGA is a speculative stock pick.

North American Galvanizing provides hot dip galvanizing for corrosion protection of fabricated steel products in the United States. The company has benefited from strong demand for hot dip galvanizing and increases in zinc prices the last few years. (more…)

CAAS – Initiation of Buy Recommendation

By: ispeculatornew | Date posted: 07.07.2007 (12:00 am)

CAAS – China Automotive Systems (Nasdaq) (Closing Price – $7.39) 

China Automotive Systems (CAAS) is a company that has decent fundamentals and a potentially huge market. Its share price has also had some interesting movement the last few years.

China Automotive Systems engages in the manufacture and sale of automotive systems and components in China. Needless to say the potential of the Chinese automotive market is considerable. Furthermore, it was recently announced that one of CAAS’s customers, Chery Automobile Co, and Chrysler were moving ahead with a plan under which Chery will build cars for export under the Chrysler name. This will benefit CAAS’s results in the future. (more…)

SWIR – Initiation of Buy Recommendation

By: ispeculatornew | Date posted: 03.26.2007 (12:00 am)

SWIR – Sierra Wireless (Nasdaq) (Closing Price – $15.44) 

There aren’t many stocks in the market that I like right now but Sierra Wireless is one that I like a lot.

Sierra Wireless makes wireless laptop cards and the demand for their products is starting to pick up. A couple of quarters ago Sierra Wireless had earnings of 0.04 on revenues of 52.54 million. Last quarter they had earnings of 0.09 on revenues of 68.30 million. This quarter they have given earnings guidance of 0.12 per share on revenues of 82 million. As you can see Sierra’s financial numbers are increasing very nicely. (more…)

HSOA – Initiation of Buy Recommendation

By: ispeculatornew | Date posted: 01.29.2007 (12:00 am)

HSOA – Home Solutions of America (Nasdaq) (Closing Price – $6.52)

Home Solutions of America is a company that I have some reservations about recommending but I think now is a good time to buy.

HSOA provides recovery, restoration, and remodeling services. The company’s stock price had quite a run last year but a questionable press release by the company sent the stock sharply down and the stock hasn’t recovered. I will leave it to you to find out the details of what happened but it definitely raises concern about the management of the company. (more…)

DTLK – Initiation of Buy Recommendation

By: ispeculatornew | Date posted: 12.20.2006 (12:00 am)

DTLK – Datalink (Nasdaq) (Closing Price – $7.10)

Datalink (ticker: DTLK) is a company in a growing industry and has been reporting solid results. Datalink operates as an information storage architect which basically means it helps companies store and protect their data. This is a valuable service to offer because most businesses deal with overwhelming amounts of information that they must keep protected.

Datalink’s quarterly results can be erratic due to the timing and completion of contracts but overall their results are good. For the first nine months of this year Datalink has reported a 32 percent increase in revenues over the prior year. Datalink’s trailing earnings for the last four quarters is $0.47. That would give DTLK a PE of 15 with today’s closing price of $7.1. That is very cheap for a growing company. (more…)

MCZ – Initiation of Buy Recommendation

By: ispeculatornew | Date posted: 12.13.2006 (12:00 am)

MCZ- Mad Catz Interactive (American Stock Exchange) (Closing Price $0.65)

Mad Catz (ticker: MCZ) is a speculative play on the release of the next generation game consoles (the XBOX 360 and the Playstation 3). This company has improving fundamentals and will benefit from the hype surrounding the new game consoles.

Mad Catz sell peripherals such as controllers, racing wheels, and console accessories. Consumers will buy these products when they purchase their new consoles. The initial release of the consoles will help increase sales for MCZ but the biggest benefit should come after a year or so after the consoles have built a consumer base. (more…)

SVLF – Initiation of Buy Recommendation

By: ispeculatornew | Date posted: 12.13.2006 (12:00 am)

SVL – Silverleaf Resorts (American Stock Exchange) (Closing Price – $4.20)

Silver Leaf Resorts is the epitome of an underfollowed and undervalued stock. I first came across SVL a little over a year ago by using a stock screener. It had good earnings and was trading at half its book value. The stock was a no brainer at the time but unfortunately I had no money to invest in it. Silverleaf promptly shot up from about a dollar fifty to over four dollars. I wish I had bought some then but it is still a bargain now.

SVL’s current forecast for 2006 is for net income of 0.53 to 0.56 per diluted share. If you use the lower end of their earnings guidance and today’s closing price of 4.2 you get a PE ratio of 8 (4.2/0.53 = 8). They are guiding towards earnings growth of 16% next year, which I think is conservative. If you use their earnings growth as a measure of what the PE should be (16) this values the company at $8.2. While the PE ratio is a subjective valuation measure, I believe SVL is currently undervalued. (more…)