Indices closed UP again & made a new closing all time high in Dow & multi year closing high in S&P 500 / Nasdaq.
S&P 500 @ 1544.26
RSI @ 65.34
CMF @ 0.249
Internals were :
UP volume led by 1.72 to 1 in NYSE & 1.93 to 1 in Nasdaq
Advancing stocks led by 1.38 to 1 in NYSE & 1.58 to 1 in Nasdaq
Net new 52 wk highs were leading by 223 in NYSE & 163 in Nasdaq
VIX Down 3.47% @ 13.06
Oil @ $91.56
Gold @ $1575.10
Stocks which were UP 1% or more included BAC,
JCP,TIF,AAPL,MOS,FFIV,RVBD,CRUS,GMCR,
FB,MU,JDSU,CIEN,FNSR,SBUX,ECA,BJRI,
MLNX,KOG,GS....
AH ER :
WPRT UP 1.52%
P UP 20.72%
AH Futures Mixed
AH Asian Markets Mixed
AH Oil Down
AH Gold UP
About market, It is all about jobs report, consensus is anywhere from 160K to 163K. Actual number may be stronger than consensus. This may spark a rally, many are positioned to sell the rally but they may not succeed. This TAPE has too much strength & any pullback will be met with renewed buying.
BLOG does NOT give buy or sell.
Saleem
9 comments:
Hey Saleem,
The WPRT conference call was interesting. Their business is definitely growing nicely and they have many anticipated product releases coming in both the near and distant future. Generally though, it seems like natural gas as a vehicle fuel is slow-adopting--there's just too much engrained mindset and infrastructure to suddenly be able/want to change immediately. That puts WPRT in the development or early production stage on many engine types as they try to be first mover in this nascent market. Unfortunately, this leaves little profitability in the US where volumes are small and economies of scale can't quite kick in yet, and then in China where volumes are actually better, the competition is more fierce, squeezing what margins were available. Given this, the path to sustained profits is still quite far away especially given how much R&D they need to constantly do.
That said, their results were better than expected both in the current quarter and in guidance. Specifically, their Chinese joint venture revenues grew 230% YoY in the fourth quarter, but alas only yielded net income of $500k to the earnings. Even though they are the 35% owner in this joint venture, they leave it up to the Chinese partner to set pricing in what appears to be a competitive environment in which they are attempting to take market share.
Overall, I don't come away feeling especially enamored with the investment. WPRT seems a great story that really is gaining momentum as companies think of different ways to utilize the cheap natural gas in this country, but the lack of a clear path to profitability makes it difficult to invest. They do have enough cash to make it easily through this year, so the issue of a secondary should only come up if the stock price rises a lot. The short interest is very high and a potential buyout is always in play, so maybe the stock can rise tomorrow. In any case though, I'll likely sell some or all of my position. Right now, the stock is too driven just on news or rumors that may or may not lead to better revenues and profits, and is probably driven more by short-covering and fast traders than institutional accumulation.
Stocktrader
Hi Stocktrader,
Thanks for your detailed recap of WPRT cc.
I know it is tough to make money in emerging technology.
Good luck with your strategy.
Saleem
Hey Saleem,
Sold WPRT @ 28.65.
Stocktrader
Hey Saleem,
Added a bit to CRUS @ 22.995. I have about one cash position left now for when opportunities arise.
Stocktrader
Hey Saleem,
Bought MS @ 22.946. They're down a bit today on those stress test results, but I think their business segments will only strengthen in this bull market. They are especially exposed to IPOs and wealth management.
Stocktrader
Hi Stocktrader,
Good move into MS....has shown relative strength in financial.
Saleem
Hi Stocktrader,
Bought JCP @ $14.77.....
Saleem
Hey Saleem,
Good luck with JCP! I know you watch that carefully and it is very oversold right now.
Stocktrader
Post a Comment