Here is a quick weekend update, as I do a periodic review of some our stocks in the news. I like to follow our picks through major newspapers, websites, and analyst reviews. The following stocks were commented on in the last two weeks or have major updates that require our attention. The stocks I will highlight are Emcore (up 10% in two days), Navteq (takeover target), and Advent Software (up roughly 20% in less than two months)
I will start with the newest recommendation, Emcore (EMKR):
This is a love/hate relationship with this momentum stock. As you recall we got this stock at our price point just a week ago. And luckily, we keep an hawkish eye on our new picks, because HIGH risk momentum stocks are labeled that way for a reason. This stock has experience great gains in roughly two day, but on Friday we got some shocking news, at the worst time. Late Friday, it was released that EMKR received an noncompliance notice from the NASDAQ...this is bad news...very bad. So now we must watch this stock closely on Monday...first off, follow my lead and remove and cancel any price points that were initially set, yes including our Superman price. Next, if you don't have the time to follow this stock on Monday, place a Stop Loss to sell this stock at 9.75. Why this price, because it appears that this stock is being impacted by the bad news. We were up to the 10.70 range on Friday, but when the news was released after the market closed...the stock appears to have declined in aftermarket hours. The lowest aftermarket price disclosed on Yahoo Finance was 9.85. If the back news is picked up by the rest of the investors out there like us, we will see further declines. If we set a Stop Loss of 9.75 it will automatically sell the investment at that price. And yes, we will walk away from the investment and wait for the dust to settle. I would like to revisit this stock but we need to wait until EMKR is compliant without a doubt with the NASDAQ. I am unsure how this will impact their scheduled earnings announcement.
Here is an article from Marketwatch: EMKR said late Friday that it received a letter from Nasdaq on Oct. 2 stating that the company is not in compliance with the exchange's listing requirements, and that its stock is subject to delisting. The provider of compound semiconductor-based products said the notice was expected and was due to its inability to hold an annual shareholders' meeting by Sept. 30. Emcore plans to submit a letter to request an extension to regain compliance with Nasdaq's requirements.
Navteq (NVT):
This analysis was provided by an analyst at Zacks.com -
NAVTEQ Corporation (NVT) has done a great job navigating for profits. Surging demand for maps in portable devices and some easier-than-expected expenses are contributing to outsized earnings gains. The company just reported a 72% profit gain and raised full-year guidance. Over the past 60 days, this year's estimates have jumped 19 cents to $1.52 per share. The past two quarters have averaged a 57% positive surprise. Analysts are projecting 20.4% growth over the long term.
(Note: On 9/27, NVT was listed as their aggressive growth pick of the day in their daily "Profit from the Pros" e-newsletter)
Advent Software:
This analysis was provided by an analyst at Zacks.com -
Advent Software, Inc. (ADVS) is enjoying phenomenal growth and its chart reflects it. The stock has been on a rocket ride since late July, after posting a 350% positive earnings surprise. Over the past 90 days, this year's earnings estimates have soared 12 cents to 33 cents per share. Analysts are projecting 27.8% earnings growth in 2008 and 21.7% growth over the long term.
(Note: On 9/27, ADVS was listed as their momentum pick of the day in their daily "Profit from the Pros" e-newsletter)
Lessons Learned, this means we should have SOLD EMKR when you get up 10% in one day, we were dead on with NVT, and we will be holding onto ADVS because were were exactly right with this momentum pick. As Jim Cramer often reminds us Bears make money (ppl who make money when the market goes down), Bulls make money (ppl who make money when the market goes up), and Pigs get slaughtered. We were pigish on EMKR and we've learned.
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