Indices closed UP but below best level of the day.
S&P 500 @ 1585.16, high of the day 1592.64
RSI @ 58.27
CMF @ 0.210
Internals were :
UP volume led by 1.99 to 1 in NYSE & 1.97 to 1 in Nasdaq
Advancing stocks led by 1.86 to 1 in NYSE & 1.70 to 1 in Nasdaq
Net new 52 wk highs were leading by 286 in NYSE & 141 in Nasdaq
VIX UP .07% @ 13.62
Oil @ $93.64
Gold @ $1462.00
Stocks which were UP 2% or more included RDN,CLF,
COH,KORS,DNKN,AMZN,POT,CF,M,WYNN,
LVS,BIDU,FFIV,JASO,CRUS,LRCX,X,SLW,
SINA,KOG.....
AH ER :
Negative reaction :
SBUX -2.56%, AMZN -3.20%, EXPE -5.34%, BIDU -8.13%
Positive reaction CSTR UP 8.18%
AH Futures Down
AH Asian Markets Mixed
AH Oil Down
AH Gold UP
About market, TAPE showed weakness before closing but internals remained strong. Q1 GDP is expected to be 3% which may not be attainable. There is still a ECB bid in the market. Earnings were weak tonight & may impact TAPE.
BLOG does NOT give buy or sell.
Saleem
12 comments:
Hey Saleem,
So PFPT's report and conference call were very good. Revenues and billings both exceeded guidance with revenues up 25% YoY and billings up 47% YoY, and they raised their guidance for both these for Q2 and FY13. Even without some especially large contracts signed in the quarter, billings growth would have exceeded 30%, priming the revenue stream for many quarters. As the company is still in "land grab" mode, all upside to the revenue/billings gets plowed back into the business thereby limiting profitability for now (as expected).
Major highlights of the quarter included further conversion of Postini clients (as Google has ended that standalone service) which will last into 2014. They seem to be perfectly positioned here as the larger competitors seem disinterested and the smaller competitors aren't threats.
In addition to Postini conversions, they had major wins replacing both Cisco IronPort and Intel McAfee at major world operators. The Cisco replacement was for 100,000 users at a European-based auto manufacturer. For the first time, they had many major wins in the European area which is a positive development as the US is currently 83% of their revenues.
Finally, they believe their recent acquisition of MailDistiller helps them better address both multi-channel businesses and small/medium size businesses due to the easy-to-use interface.
Overall, I liked the continued momentum and wins in the US space, but also key was the successful expansion into the European market. With their market reach growing and competitive offerings ahead of the competition, billings growth of 30+% could continue for a while, creating a huge pipeline of business from which to reap profits in the future.
It is currently my largest position and I have no plans to change that. I'm not sure what the stock will do tomorrow specifically, but the outlook remains good and results are exceeding both management's and analysts' expectations.
Stocktrader
Hey Saleem,
On another note, I totally forgot about CRUS's earnings today until I got the news flashes on the numbers. Since they had already pre-announced everything, I wasn't even looking for it. CRUS's call is usually pretty interesting, so I'll have to listen to a replay soon.
Stocktrader
Hi Stocktrader,
Thanks for your detailed recap of cc for PFPT......looks like they are after market share & profitability is in line based on their guidance.
CRUS is down pre-market.
Good luck today!
Saleem
Hey Saleem,
Added to AXLL @ 55.36 on this pullback. I can't think of a better way to play the combination of homebuilding + low natural gas. In addition, they have the opportunity to create more syngeries than expected from the recent merger.
Stocktrader
hi Stocktrader,
AXLL is a good stock..i do not know why its lagging against its peers.
Good luck with your portfolio.
Saleem
Hey Saleem,
Wow! A 2.33M block just went through on PFPT @ 18.50. I've never seen anywhere close to that kind of volume on this stock. It probably means institutions are starting to notice these little guys? I'm glad to see it recover from the morning dip.
Stocktrader
Hey Saleem,
It looks like someone had the same idea as me:
11:00 EDT AXLL Axiall weakness a buying opportunity, says Cowen
Stocktrader
Hi Stocktrader,
PFPT is near 52 wk high now...outstanding volume.....
AXLL is a bargain here....
Saleem
Hey Saleem,
Bought KOG @ 7.83. I think this is a great way to play the energy boom in the US and it has an additional takeout possibility. It struggled for a couple years while it worked to ramp up production and I think it can now reap some of those rewards.
Stocktrader
Hi Stocktrader,
Ecer since you mentioned a year back KOG is on my "monitor list".....
I have to read up this weekend on KOG.....
Good luck$$$$
Saleem
Hey Saleem,
I am really ramping my commodity exposure because I feel like many areas of the world are troughing in terms of economic activity and will move higher from here. Given the way a lot of these stocks have been hit, I think they represent great value.
Stocktrader
Hi Stocktrader,
I fully concur with you.
They have been beaten down to multi year lows.
Saleem
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