Posts Tagged ‘stock analysis’

CAAS Plans to Acquire 36.5% of Henglong Automotive Parts Company

By: ispeculatornew | Date posted: 12.26.2007 (5:44 pm)

CAAS – China Automotive Systems (Nasdaq) – (Closing Price – $8.28)

China Automotive Systems announced that it has started discussions with Hubei Wanlong Investment Co. to acquire an additional 36.5% of Henglong Automotive Parts Company.

China Automotive Systems currently owns 44.5% of Henglong Automotive Parts Company. In 2006 Henglong posted sales of USD$54.54 million, representing 57% of China Automotive Systems’ total net sales and net profit of USD$9.75 million, while CAAS’ net profit was USD$4.81 million. Acquiring a bigger portion of Henglong will obviously be beneficial.

I don’t see any reason to sell China Automotive Systems and I would continue to hold your shares. According to Yahoo Finance the insider sells that were weighing on the stock price have stopped and there was even an insider buy on Dec. 3. (more…)

Want a Risk Free 14% Return?

By: ispeculatornew | Date posted: 12.21.2007 (3:19 pm)

DVW – Covad Communications (Amex) – (Closing Price – 0.88) 

Every investor would like to make risk free investments, but risk and return have a direct relationship. Investments with the least risk usually have the least amount of return and vice versa.

However, right now you can get a fourteen percent return without much risk.

Covad Communications (DVW) announced on October 28 that it is being acquired by Platinum Equity for $1.02 a share. However, since the announcement Covad shares have traded as low as $0.77 and they are currently trading at $0.88.

If you buy at today’s closing price you are looking at a 14% return when the acquisition closes. (more…)

Newletter Stock Picks

By: ispeculatornew | Date posted: 11.01.2007 (1:47 pm)

I plan on offering my best stock recommendations and analysis under the category of newsletter picks. This will be subscription service with a price of $299 a year (less than a dollar a day). I am currently trying to increase visitors to my website so all of my advice will be free for the time being. However, my best advice will probably be offered as newletter picks at some point in 2009.

MAMA – Recommendation to Cover

By: ispeculatornew | Date posted: 06.14.2007 (12:00 am)

MAMA – Mamma.com Inc. (Nasdaq) (Closing Price – $4.22)

In my last post I stated that I thought Mamma.com would fall through its support level. However, this hasn’t happened so I am going to recommend to cover your short position in Mamma.com if you have not already done so.

Mamma.com may still fall but I think there are better places to invest your money. Also, the stock price of Mamma.com tends to jump up more than it should when the company issues a press release. Therefore, I think it would be wise to get out before some trivial announcement sends the price back up. (more…)

MAMA – Update

By: ispeculatornew | Date posted: 05.27.2007 (12:00 am)

MAMA – Mamma.com Inc. (Nasdaq) (Closing Price on Friday 5/25/07 – $4.15)

I mentioned in my last update that if Mamma.com found support I would recommend to cover. Mamma.com has found support around four dollars but I think barring some positive news the stock price will fall through this support level and start to decline more dramatically. Therefore, I wouldn’t recommend to cover yet.

I will provide an update based on what the stock price does in the next few weeks.

Disclosure: I am not shorting shares of MAMA.

MAMA – Q1 2007 Earnings

By: ispeculatornew | Date posted: 05.14.2007 (12:00 am)

MAMA – Mamma.com Inc. (Nasdaq) (Closing Price – $4.50)

Mamma.com reported first quarter results on May 10 and the numbers they released were very unimpressive.

Mamma.com reported a loss of 0.10 per diluted share on revenue of 2.64 million. Search revenues increased but graphic advertising and “other” revenues were down sharply. Last quarter they had “other” revenues of 1.19 million (comprised of search advertising – 0.26 mil, software licensing – 0.7 mil, and customized development & maintenance – 0.23 mil). This quarter they said “other revenues such as software licensing and customized development and maintenance support” totaled 0.127 million. I am not sure if search advertising is part of the “other” revenues since they said “such as” and didn’t provide a breakdown of “other” revenues. However, even without search advertising taken into account this is a huge decrease in “other revenues” from the previous quarter. (more…)

MCZ – Update

By: ispeculatornew | Date posted: 05.13.2007 (12:00 am)

MCZ – Mad Catz Interactive (American Stock Exchange) (Closing Price on Friday – 05/11/07 – $0.90)

There have been many positive developments since my last post on MCZ.

Madcatz started shipping wired and wireless controllers for the Playstation 3 in March. They announced a new agreement to produce accessories for Mass Effect for the Xbox 360. They renewed their license agreement with the NBA to produce a new line of controllers and other accessories. Also, on Friday they announced an agreement with Microsoft to produce faceplates for Halo 3. (more…)

STRM – Buy and Accumulate

By: ispeculatornew | Date posted: 04.01.2007 (12:00 am)

STRM – Streamline Health Solutions (Nasdaq) (Closing Price on Friday 3/30/07 – $4.27)

The stock price of Streamline Health has dropped considerably since I originally recommended it. Streamline’s decline has been perplexing because there hasn’t been any negative news announced.

On the contrary there have been a few press releases stating customers have been upgrading their document management systems. In their Q3 06 earnings release they gave guidance for annual revenue growth of 20% based on the expected signing of an agreement that got delayed in the third quarter and other large system sales. It seems based on the recent announcements that they are likely to meet their guidance. (more…)

CECE Q4 2006 Earnings

By: ispeculatornew | Date posted: 03.31.2007 (12:00 am)

CECE – Ceco Environmental (Nasdaq) (Closing Price on Friday 3/30/07 – $12.49)

I recommended buying Ceco Environmental a couple of months ago for a 31% gain in a little over two weeks. I gave my sell recommendation a little too soon but I have still been following the stock and I would recommend staying away from the company until they show an increase in earnings.

Ceco Environmental recently reported Q4 06 results on March 22. They posted earnings of 0.09 per diluted share on revenue of 41.5 million. Revenue improved but the lack of earnings growth was a huge problem. In Q2 06 Ceco Environmental had earnings of 0.12 per diluted share on revenues of 31.7 million. This quarter they had almost ten million more in revenue but had three cents less in earnings. The lack of earnings growth and the huge run-up in the share price was a bad combination and the stock price has taken quite a beating in the last week. (more…)

MAMA – Q4 2006 Earnings

By: ispeculatornew | Date posted: 03.11.2007 (12:00 am)

MAMA – Mamma.com Inc. (Nasdaq) (Closing Price on Friday 3/9/07 – $5.19)

Mamma.com announced fourth quarter results on March 7 and surprisingly they managed to report a small profit. However, the stock is still way overvalued based on any fundamental valuation and I would recommend to continue holding your short position.

Mamma.com reported a profit of 0.03 on revenues of 3.57 million. This is a stark contrast to the losses they posted in the previous year but I it remains to be seen whether they can become consistently profitable. Even if they were to make the same amount each quarter next year, which is doubtful, MAMA would have a PE of 43 with Friday’s closing price. That is extremely high. (more…)