Thursday, February 28, 2019

Pool Corp (POOL) Files 10-K for the Fiscal Year Ended on December 31, 2018

Pool Corp (NASDAQ:POOL) files its latest 10-K with SEC for the fiscal year ended on December 31, 2018. Pool Corp is a wholesale distributor of swimming pool supplies, equipment and related leisure products. It also distributes irrigation and landscape products in the United States. Pool Corp has a market cap of $6.47 billion; its shares were traded at around $160.69 with a P/E ratio of 28.60 and P/S ratio of 2.23. The dividend yield of Pool Corp stocks is 1.08%. Pool Corp had annual average EBITDA growth of 15.10% over the past ten years. GuruFocus rated Pool Corp the business predictability rank of 4-star.

For the last quarter Pool Corp reported a revenue of $543.1 million, compared with the revenue of $510.2 million during the same period a year ago. For the latest fiscal year the company reported a revenue of $3 billion, an increase of 7.5% from last year. For the last five years Pool Corp had an average revenue growth rate of 7.6% a year.

The reported diluted earnings per share was $5.62 for the year, an increase of 24.6% from previous year. Over the last five years Pool Corp had an EPS growth rate of 22.4% a year. The Pool Corp had a decent operating margin of 10.47%, compared with the operating margin of 10.2% a year before. The 10-year historical median operating margin of Pool Corp is 8.19%. The profitability rank of the company is 8 (out of 10).

At the end of the fiscal year, Pool Corp has the cash and cash equivalents of $16.4 million, compared with $29.9 million in the previous year. The long term debt was $657.6 million, compared with $508.8 million in the previous year. The interest coverage to the debt is at a comfortable level of 15. Pool Corp has a financial strength rank of 6 (out of 10).

At the current stock price of $160.69, Pool Corp is traded at 83.3% premium to its historical median P/S valuation band of $87.67. The P/S ratio of the stock is 2.23, while the historical median P/S ratio is 1.22. The intrinsic value of the stock is $159.99 a share, according to GuruFocus DCF Calculator. The stock gained 14.36% during the past 12 months.

For the complete 20-year historical financial data of POOL, click here.

Sunday, February 24, 2019

Galectin Therapeutics (GALT) Stock Rating Upgraded by ValuEngine

Galectin Therapeutics (NASDAQ:GALT) was upgraded by analysts at ValuEngine from a “buy” rating to a “strong-buy” rating in a research note issued on Wednesday.

Separately, B. Riley assumed coverage on shares of Galectin Therapeutics in a research report on Wednesday, February 13th. They set a “buy” rating and a $11.00 price target for the company. One investment analyst has rated the stock with a hold rating, three have given a buy rating and one has assigned a strong buy rating to the stock. The stock has an average rating of “Buy” and a consensus target price of $11.50.

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GALT stock opened at $6.02 on Wednesday. Galectin Therapeutics has a twelve month low of $3.10 and a twelve month high of $9.49. The company has a market cap of $233.26 million, a PE ratio of -12.29 and a beta of 3.76.

In other news, Director Gilbert F. Amelio sold 30,000 shares of the firm’s stock in a transaction that occurred on Thursday, January 31st. The shares were sold at an average price of $5.00, for a total transaction of $150,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Richard E. Uihlein acquired 51,500 shares of the firm’s stock in a transaction on Tuesday, January 29th. The stock was acquired at an average cost of $4.87 per share, with a total value of $250,805.00. Following the acquisition, the director now owns 2,538,289 shares of the company’s stock, valued at $12,361,467.43. The disclosure for this purchase can be found here. 45.20% of the stock is currently owned by company insiders.

A number of institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. grew its position in shares of Galectin Therapeutics by 199.9% in the second quarter. BlackRock Inc. now owns 588,308 shares of the company’s stock valued at $3,742,000 after purchasing an additional 392,151 shares during the period. Renaissance Technologies LLC acquired a new stake in shares of Galectin Therapeutics in the second quarter valued at about $237,000. Wells Fargo & Company MN grew its position in shares of Galectin Therapeutics by 45.7% in the third quarter. Wells Fargo & Company MN now owns 58,471 shares of the company’s stock valued at $352,000 after purchasing an additional 18,336 shares during the period. D.A. Davidson & CO. grew its position in shares of Galectin Therapeutics by 5.0% in the third quarter. D.A. Davidson & CO. now owns 689,278 shares of the company’s stock valued at $4,143,000 after purchasing an additional 32,751 shares during the period. Finally, Virtu Financial LLC acquired a new stake in shares of Galectin Therapeutics in the third quarter valued at about $107,000. 15.08% of the stock is owned by hedge funds and other institutional investors.

Galectin Therapeutics Company Profile

Galectin Therapeutics, Inc, a clinical stage biopharmaceutical company, engages in the research and development of therapies for fibrotic disease, skin disease, and cancer. The company's lead product candidate includes galectin-3 inhibitor (GR-MD-02), a galactoarabino-rhamnogalacturonan polysaccharide polymer for the treatment of liver fibrosis and liver cirrhosis in non-alcoholic steatohepatitis patients, as well as for the treatment of cancer.

Further Reading: Growth Stocks, What They Are, What They Are Not

To view ValuEngine’s full report, visit ValuEngine’s official website.

Friday, February 22, 2019

These 2 Surging Stocks Are Still Buys

I highlighted Hanesbrands (NYSE:HBI) and Skechers (NYSE:SKX) as two beaten-down stocks to buy back in December. The timing was lucky -- both stocks and the broader market bottomed out just a few days later.

The stock market has done well since then, with the S&P 500 gaining nearly 20% from the bottom. But Hanesbrands and Skechers have each gained more than 50%. Those are impressive gains, but they're not the end of the story. Both stocks are still cheap, and both would still make great additions to your portfolio.

HBI Chart

HBI data by YCharts.

Hanesbrands

2018 wasn't a great year for Hanesbrands until the very end. Retailer Target announced it was dropping C9 by Champion, an exclusive line of activewear, from its stores in 2020. That blew a $380 million hole in Hanesbrands' annual revenue, and it threatened a key growth business for the company.

Later, the bankruptcy of Sears Holdings and a strengthening U.S. dollar led Hanesbrands to reduce its full-year outlook. The company took a $14 million bad-debt charge related to Sears, and it assumed that it would lose about 1% of its sales as the iconic retailer circled the drain.

Those two negative developments set the stage for a brutal decline when the stock market ran into trouble in December. In the six months ending when Hanesbrands stock finally bottomed out in late December, the shares lost nearly 50% of their value.

Things have quickly gotten better. Hanesbrands stock has surged, now up a whopping 66% from its low. A big chunk of that gain came after Hanesbrands reported exceptionally strong fourth-quarter results. Revenue surged 7.5% year over year, led by growth in activewear and international sales. And while adjusted earnings per share declined, they would have risen by 12% if not for a higher tax rate.

Even after the big rally of the past two months, Hanesbrands stock remains cheap. Shares trade for just 11 times the midpoint of the company's adjusted earnings guidance, and a dividend yield above 3% is icing on the cake. Hanesbrands isn't a growth company, and the loss of the Target revenue will create some challenges next year. But the pessimism that decimated the stock in 2018 was clearly overdone.

Skechers shoes.

Image source: Skechers.

Skechers

Shares of Skechers were also beaten down in 2018 thanks to extreme pessimism. Since bottoming out in late December, the stock is up about 55%. A strong fourth-quarter report, featuring solid revenue growth and a big boost to per-share earnings, helped undo much of the damage of the past year. The company managed to keep costs in check, something it hasn't been able to do in recent quarters amid investments in international markets.

Skechers expects revenue growth in the first quarter to be weak, thanks to currency and the timing of the Easter holiday. But analysts are expecting solid 7.8% revenue growth for the full year, along with near-double-digit earnings growth. Based on the average analyst estimate for 2019 earnings, Skechers stock trades for about 16 times earnings.

That may not seem all that cheap, but Skechers' balance sheet is loaded with excess cash. The company had $1.07 billion in cash, cash equivalents, and investments at the end of the fourth quarter and just $97 million in debt. If the net cash is backed out, Skechers' cash-adjusted price-to-earnings ratio falls to just 13.

Skechers stock isn't as cheap as Hanesbrands. Its long-term growth prospects are likely better, given its opportunity in China and other international markets, so that makes some sense. But the stock is still trading at a discount to the market, even after surging over the past couple of months. It's not too late to buy this cheap growth stock.

Wednesday, February 20, 2019

Why LeMaitre Vascular Is Soaring

What happened

After the company reported fourth-quarter and full-year results, shares of LeMaitre Vascular (NASDAQ:LMAT), a medical device company focused on vascular surgery, jumped 18% as of 10:15 a.m. EST on Wednesday.

So what

Here are the headline numbers from the quarter:

Sales grew 9% to $28.4 million. That was well ahead of the $25.9 million that analysts had projected. Operating income surged 14% to $7.2 million. Net income grew 41% to $6 million, or $0.30 per share. That figure blew past the $0.20 that Wall Street was expecting. The board of directors approved a 21% increase to the quarterly dividend and gave the thumbs-up to repurchasing $10 million shares of common stock.

Zooming out to the full year, here's how the company performed in 2018:

Revenue jumped 5% to $105.6 million. That was solidly ahead of the $103 million that was expected. Net income grew 34% to $22.9 million. However, the bulk of the increase is attributable to one-time gains on business divestitures and acquisitions. EPS jumped 31% to $1.13. This was comfortably above the $1.04 that market watchers were expecting. Doctors performing surgery.

Image source: Getty Images.

Turning to guidance, here's what management is predicting about the quarter and year ahead:

First-quarter 2019 sales are expected to grow about 8% to a range of $27.7 million to $28.5 million. That's ahead of the current estimate of $27.2 million. First-quarter 2019 EPS is expected to land between $0.18 and $0.20. The midpoint of this range is slightly behind the $0.20 that was expected. Full-year 2019 sales are expected to grow about 8% to $113 million to $114.4 million. That's also ahead of the $110.3 million that was predicted. Full-year 2019 EPS is expected to be in the range of $0.82 to $0.86. This range compares favorably to the $0.81 expectation.

Given the better-than-expected results and guidance, it isn't hard to figure out why shares of this beaten-down gem are getting a boost today.

Now what

LeMaitre's results should go a long way to prove to Wall Street that this is the same Steady Eddie growth business that it has always been. While shares are no longer a screaming bargain, my view is that this is still a high-quality business that buy-and-hold investors should get to know.

Sunday, February 17, 2019

Restaurant Group (RTN) Given “Hold” Rating at Peel Hunt

Restaurant Group (LON:RTN)‘s stock had its “hold” rating reissued by Peel Hunt in a research report issued on Thursday.

A number of other research analysts also recently issued reports on the stock. Barclays decreased their target price on shares of Restaurant Group from GBX 320 ($4.18) to GBX 165 ($2.16) and set an “equal weight” rating for the company in a research report on Wednesday, February 6th. Royal Bank of Canada began coverage on shares of Restaurant Group in a research report on Thursday, January 31st. They set an “outperform” rating and a GBX 200 ($2.61) target price for the company. Liberum Capital restated a “hold” rating and set a GBX 180 ($2.35) target price on shares of Restaurant Group in a research report on Thursday, January 24th. Shore Capital restated a “buy” rating on shares of Restaurant Group in a research report on Thursday, January 24th. Finally, Berenberg Bank decreased their target price on shares of Restaurant Group from GBX 270 ($3.53) to GBX 170 ($2.22) and set a “hold” rating for the company in a research report on Thursday, January 17th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and seven have given a buy rating to the stock. Restaurant Group has an average rating of “Buy” and a consensus target price of GBX 220.45 ($2.88).

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LON RTN opened at GBX 135.30 ($1.77) on Thursday. Restaurant Group has a 1 year low of GBX 229.20 ($2.99) and a 1 year high of GBX 381.70 ($4.99).

In other news, insider Debbie Howard Hewitt acquired 13,659 shares of the business’s stock in a transaction on Monday, December 3rd. The stock was bought at an average price of GBX 146 ($1.91) per share, with a total value of £19,942.14 ($26,057.94).

About Restaurant Group

The Restaurant Group plc operates restaurants and pub restaurants in the United Kingdom. Its brands include Frankie & Benny's, Chiquito, Coast to Coast, Brunning & Price, Garfunkel's, and Joe's Kitchen. The company also operates TRG concessions that provide table service, counter service, sandwich shops, pubs, and bars in the United Kingdom's airports.

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Analyst Recommendations for Restaurant Group (LON:RTN)

MagnaChip Semiconductor Corp (MX) Q4 2018 Earnings Conference Call Transcript

Logo of jester cap with thought bubble.

Image source: The Motley Fool.

MagnaChip Semiconductor Corp  (NYSE:MX)Q4 2018 Earnings Conference CallFeb. 14, 2019, 5:00 p.m. ET

Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:

Operator

Good day, ladies and gentlemen, welcome to the Quarter Four 2018 MagnaChip Semiconductor Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time.

(Operator Instructions). As a reminder, this call will be recorded. I would now like to introduce your host for today's conference, Bruce Entin, Head of Investor Relations. Please go ahead, sir.

Bruce Entin -- Head of Investor Relations

Thank you, Chris, and thank you for joining us to discuss MagnaChip's financial results for the fourth quarter ended December 31st, 2018. The fourth quarter earnings release that we filed today after the stock market closed and other releases can be found on the Company's Investor Relations website.

The telephone replay of today's call will be available shortly after the completion of the call and the webcast will be archived on our website for one year. Access information is provided in the earnings release. Joining me today are YJ Kim, MagnaChip's Chief Executive Officer, and Jonathan Kim, our Chief Financial Officer. YJ will discuss the Company's recent operating performance and the outlook for 2019 and Jonathan will provide an overview of our Q4 and 2018 financial results and provide financial guidance for Q1 2019.

There will be a question-and-answer session following today's prepared remarks. During the course of this conference call, we may make forward-looking statements about MagnaChip's business outlook and expectations. Our forward-looking statements and all other statements that are not historical facts, reflect our beliefs and predictions as of today and therefore are subject to risks and uncertainties as described in the Safe Harbor discussion found in our SEC filings.

During the call, we will also discuss non-GAAP financial measures. The non-GAAP measures are not prepared in accordance with Generally Accepted Accounting Principles, but are intended to illustrate an alternative measure of MagnaChip's operating performance that may be useful.

A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures can be found in our fourth quarter earnings release available on our website under the Investor Relations tab at www.magnachip.com.

I now will turn the call over to YJ Kim. YJ?

Young-Joon (YJ) Kim -- Board of Director, Member of the Risk Committee and Chief Executive Officer

Welcome to everyone on the Q4 conference call. We have a lot of ground to cover today, so let's get started. MagnaChip had a solid year in 2018, revenue of $750.9 million, increased 10.5% over 2017, despite uncertain macro factors, a general slowdown in China and on inventory correction by customers. The improvement in our revenue performance was especially notable considering that China accounted for more than 40% of our annual revenue for 2018, either through direct sales or indirect sales, through distributors and Korean OLED panel makers.

Our Standard Products Group turned in strong performance in 2018 with revenue of $425.4 million, up 18.4% over 2017 and up 29.3% on an adjusted basis. Both OLED and power had the record revenue in 2018 and are positioned for success in 2019, due to their strong product line ups and customer traction.

OLED revenue of $188 million in 2018 was on all-time high and was nearly triple the number of 2017 level. The $188 million in revenue, beat our previous record in 2016 by 17%. OLED display driver ICs accounted for 73.4% of the display revenue in 2018, up from 30.1% in 2017, which illustrates how we are improving the product mix within our display business.

We were awarded a record 41 new OLED design wins in 2018 from smartphone makers, primarily in China, but also in Korea that compared favorably with 29 OLED design wins in 2017. In a seasonally soft Q4, OLED revenue declined more than expected due to a slowdown in the smartphone market in China.

Our OLED business is off to a good start in 2019 and we currently expect Q1 '19 OLED revenue to be higher than Q4 '18 and 2019 OLED revenue is expected to be higher than 2018, driven by our strong product lineup and well-established traction with the world's top two OLED panel makers, that are co-located with us in Korea.

In Q4, we were awarded five new OLED design wins, including three from a major smartphone maker in Korea for mid-range smartphones, the first time in recent memory that we've cracked such mid-range phones in Korea. Our first 28 nanometer display driver is functional and ready for sampling this month and we anticipate volume production in the second half of this year.

We are confident that multiple smartphone makers will be drawn to its ultra low power specs and features, which are best in class. The 28 nanometer display drive IC is targeted at volume premium feature smartphones. As we look ahead to 2019 and beyond, we are beginning to see the emergence of new growth drivers to ignite growth in the smartphone market, four of our smartphones are expected to be showcased at Mobile World Congress this month, they all form (ph) exciting glimpse of what's around the corner. The rollout of the 5G and WiFi 6 also has the potential to drive smartphone upgrade cycles into high gear.

Turning now to power. The portfolio optimization initiatives we launched a few years ago in the power business paid up handsomely in 2018. Revenue of $169.3 million, set a record and increased 13% from 2017. Our current view is that power business will show a significant revenue growth in 2019 over 2018.

We don't break up our power profit margin, but we can point out that profit margin increased nearly 4 percentage points in 2018 over 2017, despite industrywide raw wafer price increases. The trajectory of the margin ramp has been steep over the past few years.

Our power business benefited in 2018 from an industry wide shortage, but our success also can be traced to the continuous growth in our portfolio of premium products. Revenue for higher margin premium products, which include IGBTs, Super Junction MOSFETs and Power ICs, increased 27.7% year-over-year and represented 44% of total power revenue in 2018.

Premium power products did particularly well in consumer and industrial markets. Our battery FET for smartphone batteries has the number one market share in Korea and we've design into next generation of phones in Korea.

Looking ahead, we see many opportunities to pair (ph) power products with OLED, DDICs in smartphones, and in many other devices. In Q4 2018, we were awarded five power discrete design wins for automotive application that we expect to go through full qualification in 2019. And we expect to begin production on these devices in 2020.

We anticipate that automotive will account for approximately 5% of our power discrete revenue in 2021 and 10% in 2022, due mainly to the sharp growth expected in the electrical -- electric vehicles market.

Bloomberg forecast that electric vehicles will grow worldwide from 1.1 million in 2017 to 11 million in 2025 and then surge to 30 million in 2030.

Turning now to foundry. Of the three businesses, foundry was impacted the most by an inventory correction and China slowdown. Foundry revenue in 2018 increased 1.6%, but declined 7.2% on an adjusted basis.

In Q4 '18, foundry revenue increased 3.1% from year ago, but declined 8% on an adjusted basis. Gross margin in Q4 '18 declined 8.5 percentage points from year ago or 7.2 percentage points on an adjusted basis.

We first pointed out foundry weakness on our Q3 earnings call last October and in again in our 10-Q last November. In that filing, we said we believed we were heading into a period of weaker demand from our foundry customers as a result of a recent softening in global market conditions. We added in the 10-Q that rising wafer and other costs lower than expected fab utilization and auto factors may adversely impact our foundry gross margin and other operating results, and we said that such an impact could potentially be material.

To respond to these issues, we said we were evaluating a number of options to optimize our foundry operations and expense structure with an intent toward maximizing shareholder value.

Today, we announced that we are undertaking a strategic evaluation of our foundry business and Fab 4, the larger of our two 8-inch analog and mixed signal fabs. Fab 4 accounts for approximately 73% of our total capacity, the great majority of the capacity in Fab 4 is allocated to serving the needs of our foundry customers.

The strategic evaluation is expected to include a range of possible options, including but not limited to joint ventures, strategic partnerships, as well as M&A possibilities. The Company has retained financial and legal advisors to assist in the evaluation. As we proceed with this strategic evaluation process, we intend to be mindful of the best interests of shareholders, customers and employees.

Looking ahead, our current view is that utilization in Fab 4 will experience a severe decline in the first half of 2019 due to an inventory correction as well as our decision to be more selective about the business as we undergo the strategic evaluation process. This in turn will depress gross margins for the foundry and for the Company as well.

Our current view is that we are cautiously optimistic that revenue for MagnaChip for the 2019 year likely will decline by low single-digit percentage points as compared with 2018 despite current foundry weakness.

Our current expectation is that we will see a strong recovery in the second half of 2019 and exit the year on an upswing with a gross margin level in Q4, consistent with our performance for the 2018 year. We will exercise discipline was expenses in 2019. SG&A and R&D expenses in 2019 are expected to be below the 2018 level. We also have implemented a hiring fees, except for R&D personnel.

Before I turn the call over to Jonathan, let me conclude by saying, I'm excited that Magnachip is on the verge of making a major strategy shift (ph) that will change our future course. Jonathan?

Jonathan Kim -- Chief Financial Officer, Executive Vice President and Chief Accounting Officer

Thank you, YJ, and welcome to everyone on the call. As a reminder, the results that we discuss are historical numbers on an as reported basis and reflect year-over-year results, unless otherwise noted. Please refer to our published financial tables for the as adjusted historical numbers to reflect changes associated with the transfer in January, 2018. Our portion of our non-OLED display business from the Standard Products Group to Foundry Services Group as part of a portfolio optimization initiative.

Let's begin with our corporate financial recap of 2018. Several key financial measures in 2018, including revenue, gross profit dollars, operating income and adjusted EBITDA achieved their highest annual levels since 2012. We achieved these results despite softness in our foundry business caused in part by an uncertain macroeconomic climate as well as higher labor costs and substantially higher wafer prices that dampened gross margin.

Here's a snapshot of the key financial measures in 2018 and how they compare to 2017. Revenue of $750.9 million increased 10.5% from $679.7 million. Gross profit dollars of $198.1 million increased 5.4% from $187.9 million. Operating income of $47.4 million increased 20.9% from $39.2 million and adjusted EBITDA was $84.3 million, up 7.1% from $78.7 million.

Let's now turn to our 2018 financial recap. SPG revenue in 2018 increased 18.4% over 2017 and increased 29.3% on an as adjusted basis. SPG benefited from a three-fold increase in OLED revenue and a 13% year-over-year increase in power revenue.

Foundry revenue increased 1.6% from 2017, but declined 7.2% on an as adjusted basis. SPG revenue was 56.7% of total revenue in 2018 compared to 52.9% in 2017, and 48.4% on an as adjusted basis.

Foundry revenue was 43.3% of total revenue in 2018, compared to 47.1% in 2017 and 51.6% on an as adjusted basis. Our top ten customers represented 61% of revenue in 2018 as compared to 57% in 2017. Total gross profit dollars was $198.1 million in 2018 up 5.4% from 2017 as a result of a $23.3 million increase in gross margin dollars from SPG and an increase of $29.6 million on an as adjusted basis.

The gain in total gross profit dollars was achieved despite a decrease of $12.9 million in gross profit dollars from foundry and a decrease of $19.2 million on an as adjusted basis.

We believe gross margin dollars is a key financial metric worth monitoring because revenue growth can drive fall through to operating income, adjusted EBITDA and cash flows from operations, and that's exactly what happened in 2018.

Total gross profit margin was 26.4% in 2018 compared to 27.6% in 2017. Within the segments, foundry gross margin of 25.4% in 2018 compared to 29.8% in 2017 and to 29% on an as adjusted basis as a result of lower fab utilization, particularly in our larger Fab 4.

SPG gross margin was 27.1% in 2018 compared to 25.7% in 2017 and 26.1% on an as adjusted basis. The improvement in SPG margin year-over-year reflecting a better product mix in OLED display drivers as well as a higher percentage of revenue from premium products in our power business.

Both OLED and power revenue are expected to grow in 2019 and related gross margin for SPG is expected to decline in the first half of 2019, but to recover in the second half due to an improved product mix.

Operating income was $47.4 million or 6.3% of revenue in 2018, up 20.9% from $39.2 million or 5.8% of revenue in 2017. Adjusted EBITDA was $84.3 million or 11.2% of revenue in 2018, up 7.1% from $78.7 million or 11.6% of revenue in 2017. Lastly, SG&A was $72.6 million or 9.7% of revenue in 2018 down 11.2% from $81.8 million or 12% of revenue in 2017, as we focused on cost controls to improve profitability. R&D was $78 million or 10.4% of revenue in 2018, up 10.7% from $70.5 million or 10.4% of revenue in 2017, as we invested more resources, primarily into our OLED business.

Let's turn now to Q4 financial results. Revenue of $179.4 million came in at the midpoint of our guidance range of $174 million to $184 million. Revenue was up 2.8% from a year ago, due primarily to an increase of 2.5% year-over-year growth in the Standard Products Group and 14.3% on an as adjusted basis.

Power revenue increased to 14.6%, year-over-year, reflecting strength in premium products. Display revenue declined 6.6% year-over-year, but increased 13.9% on an as adjusted basis, reflecting the higher percentage of revenue from OLED, as a result of a previously mentioned transfer of LCD business to the Foundry Services Group.

Foundry revenue in Q4 was up by 3.1% year-over-year, but down by 8% on an as adjusted basis, due to factors we described elsewhere on the call today. Total gross profit margin of 24.5% in Q4 was below the guidance range of 25% to 27% and down 3.8 percentage points year-over-year, due primarily to lower fab utilization, particularly in our foundry related business.

Increased inventory reserve related to a legacy display product and also due to increased costs for wafers and labor. Notably, we're in the process of actively negotiating with our vendors to curb the persistent wafer price increases. As a result, we expect raw wafer costs for the Company to trend down modestly during 2019.

Gross profit dollars in Q4 was down 11% year-over-year. Total fab utilization declined to the mid 80% range in Q4 from the 90% range in Q4 last year, although the decline was steeper and more impactful in our larger Fab 4, which is primarily used by our foundry business. We now expect utilization in Fab 4 to decline significantly in Q1, consistent with a continuing inventory correction and our decision to be more selective about business as we undergo our strategic evaluation process and our gross margin will decline in tandem during Q1.

Turning now to operating expenses in Q4, SG&A was $17.5 million or 9.8% of revenue as compared to $23.6 million or 13.5% in Q4 a year ago. The decrease was primarily related to a $4.2 million in special charge taken in Q4, as a result of a tax audit by the Korean National Tax services.

R&D was $18.5 million or 10.3% of revenue, as compared to $18.1 million or 10.4% in Q4, a year ago. The increase of $0.5 million or 2.5% was due primarily to development activities for new OLED products.

Looking ahead, SG&A and R&D expenses in dollar terms in 2019 is expected to be lower than in 2018, as we focus on cost control. Turning now to the balance sheet, cash was $132.4 million at the end of Q4 2018, as compared with $133.5 million in Q3 2018 and $128.6 million in Q4 2017.

Accounts receivable totaled $80 million, a decline of 22.5% from $103.2 million in Q3. The decrease was related to the timing of payments from certain customers. Inventories in Q4 of $71.6 million were flattish with $71.5 million in Q3. CapEx totaled $10.1 million in Q4, compared with previously estimated guidance of $16 million. We reduced CapEx as a prudent measure due to lower than expected loading in our fabs, particularly in Fab 4.

For the full year 2018, CapEx was approximately $33 million or $29 million on a normalized basis as compared to a previously estimated plan to spend approximately $39 million or $35 million on a normalized basis in 2018. The normalized basis excludes a $4.3 million payment for a purchase of certain assets related to a water treatment facility arrangement that was fully financed by a third party.

With that, here's our guidance for Q1. For the first quarter of 2019, MagnaChip anticipates revenue in this seasonally soft quarter to be in the range of $150 million to $155 million, down sequentially about 15% at the midpoint of the projected range. The guidance for the first quarter of 2019 compares with revenue of $179.4 million in the fourth quarter of 2018 and $165.8 million in the first quarter of 2018.

Gross profit margin to be in the range of 14% to 16%. This compares to 24.5% in the fourth quarter of 2018 and 26.9% in the first quarter of 2018, both revenue and gross profit margin guidance reflect a downturn in the foundry business, due in part to a continuing inventory correction and the Company's decision to be more selective about business as it undergoes a strategic evaluation process.

With that, I will turn the call back to Bruce. Bruce?

Bruce Entin -- Head of Investor Relations

Thank you, Jonathan. So, Chris, this concludes our prepared remarks. We now would like to open the call for questions.

Questions and Answers:

Operator

Thank you. (Operator Instructions). And our first question comes from Suji Desilva with ROTH Capital. Your line is now open.

Suji Desilva -- ROTH Capital Partners -- Analyst

Hi, YJ. Hi Jonathan. So question first -- so first on the gross margin, look, perhaps you know, the first half, what is your plan for utilization and how you plan to run the Fab near term in terms of managing and what portion of the business do the foundry has which you consider desirable versus not desirable to understand how much you're trying to kind of flush out of the system if you would?

Jonathan Kim -- Chief Financial Officer, Executive Vice President and Chief Accounting Officer

Hi, so I think we mentioned a number of things in connection with what's impacting the utilization and it's mostly related to the inventory correction and the China slowdown that lot of folks have talked about out in the industry, but it also has to do with our strategic evaluation process as well.

So having said that, also during the second half, out in the industry, we also hear about a recovery, and so with the inventory correction and the China slowdown aspect of the impact, it recovers during the second half, we do see a recovery in the second half, and so in connection with that, we're going to continue to service our foundry customers and we do see a recovery in the second half, and so we're being selective for now in connection with the strategic evaluation process, but the expectation is that with the improvement in the inventory correction as well as the China slowdown in the second half, we should see the related improvement.

Suji Desilva -- ROTH Capital Partners -- Analyst

Okay. And then on the OLED business, what's the typical number of wins you'd expect in a given quarter, you had five this quarter and how much potential is there for that business to grow in '19, given that you have a lot more designs in flight now ramping versus a year ago? What's the potential there?

Young-Joon (YJ) Kim -- Board of Director, Member of the Risk Committee and Chief Executive Officer

Yes Suji, that's very good question. So I think that the -- in the '17 year of design win and that helped to go into '18 ramp and then more on the design win in the numbers, but if you look at now, we are getting a point where the business on OLED is stabilizing. It's matter of a key quality designs that we win.

So for example, in the Q1, we are guiding now that the OLED revenue to grow this quarter, that's due to key 13 number design, that's really ramping up despite the China slowdown market.

So I would say that going forward, it's a matter of the -- not necessarily in total number, but it's a quality of the each design wins. So, and with our 20-nanometer, I think that our portfolio is more strengthened, so that's how we see the 2019 to grow over 2018.

Suji Desilva -- ROTH Capital Partners -- Analyst

Okay. Thanks YJ, and then my last question is on the foundry restructuring announcement here, you did entitled (ph) it three months ago, so I just wanted to ask more contextual question you had a review for the Company about a year plus ago and took longer than a year. What's the timeframe you imagine for this process, if you can give us any thoughts there, and then are there any participants from the last review that perhaps you're still engaged with, and maybe you could just talk about why now is the time for you guys to look at the foundry business in this light versus the past?

Young-Joon (YJ) Kim -- Board of Director, Member of the Risk Committee and Chief Executive Officer

Yes. So I see there is multiple question there, so I'll try to answer one by one, but in terms of timing, look, our goal is to go through the strategic evaluation process. Our goal is to conclude, in terms of the -- why now, you know, if you look at the -- when we took over the business few years ago, and we solidified the power business, now power is growing very nicely, it's higher than corporate gross margin growth for '19 and beyond with automotive sector, if you look at the display, we transformed the Company from the LCD now to OLED. OLED now account 73% and we are the leader in the industry as an independent guy have shipped more than 400 million units.

So the next that we have to look at is the -- how to fix the foundry for next level. So that's what it is.

Suji Desilva -- ROTH Capital Partners -- Analyst

Any thoughts on timeframe, YJ?

Young-Joon (YJ) Kim -- Board of Director, Member of the Risk Committee and Chief Executive Officer

Yeah, we don't speculate on time. But our goal is to go through the process and conclude it.

Suji Desilva -- ROTH Capital Partners -- Analyst

Okay. YJ, I'll pass it along. Thank you.

Young-Joon (YJ) Kim -- Board of Director, Member of the Risk Committee and Chief Executive Officer

Thank you.

Operator

Thank you. (Operator Instructions). And our next question comes from the line of Ari Shusterman (ph) with Needham & Company. Your line is now open.

Ari Shusterman -- Needham & Company -- Analyst

Hello, this is Ari. And I'm speaking -- I'm asking a question on behalf of Rajvindra Gill from Needham & Company. So this is with regards to the Foundry business. I think you hinted at this, probably (Technical Difficulty) declining so much in foundry, when it's 42% (ph) (Technical Difficulty) and how much foundry is China and I think you also talked about inventory correction, can you give some more color on that please?

Young-Joon (YJ) Kim -- Board of Director, Member of the Risk Committee and Chief Executive Officer

Yeah, it was hard to hear, it was breaking down, but the -- so the slowdown in the foundry, I think that's industry global. So you see the latest foundry people reporting the results all soft outlook for the first half and then rebound second half.

So I think that, that's consistent in the foundry customer. In terms of our exposure to China as we said before earlier that the about more than 40% of total revenue come from China directly or indirectly, through distribution or through our panel makers as a customer.

I hope that answers your question.

Operator

And I'm not showing any further questions at this time. I would now like to turn the call back to Mr. Bruce Entin, Head of Investor Relations for any further remarks. Actually we do have one...

Young-Joon (YJ) Kim -- Board of Director, Member of the Risk Committee and Chief Executive Officer

Go ahead.

Operator

Actually that does conclude today's program. I would like to turn it back to Mr. Bruce Entin.

Bruce Entin -- Head of Investor Relations

So thank you, Chris. This concludes our fourth quarter 2018 earnings conference call. Please look for details of our future events on MagnaChip's Investor Relations website. Thank you for joining us today.

Operator

Ladies and gentlemen, thank you for participating in today's conference. This does conclude today's program. You may all disconnect. Everyone have a great day.

Duration: 35 minutes

Call participants:

Bruce Entin -- Head of Investor Relations

Young-Joon (YJ) Kim -- Board of Director, Member of the Risk Committee and Chief Executive Officer

Jonathan Kim -- Chief Financial Officer, Executive Vice President and Chief Accounting Officer

Suji Desilva -- ROTH Capital Partners -- Analyst

Ari Shusterman -- Needham & Company -- Analyst

More MX analysis

Transcript powered by AlphaStreet

This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.

Friday, February 15, 2019

Hot High Tech Stocks For 2019

tags:ALL,SON,LMT,TOWN,AMGN, What happened

MuleSoft (NYSE:MULE) stock gained 42.4% in March, according to data provided by S&P Global Market Intelligence .

Data source: MULE data by YCharts.

Salesforce (NYSE:CRM) announced on March 20 that it had signed a deal to acquire MuleSoft, valuing the company at $6.5 billion and roughly 10.4 times its expected sales this year. MuleSoft's technology for pulling data from different cloud sources will be used to power the Salesforce Integration Cloud. 

Image source: Getty Images.

So what

MuleSoft and Salesforce began discussing a potential merger on Feb. 10. By early March, Salesforce had tendered an initial offer. The customer-relationship-management software giant then came back with a larger offer a few days later, landing at the final $6.5 billion figure that was announced on March 20. That closing price represented a 36% premium compared to MuleSoft's valuation prior to the announcement.

Hot High Tech Stocks For 2019: Allstate Corporation (ALL)

Advisors' Opinion:
  • [By Stephan Byrd]

    Allstate (NYSE:ALL) last posted its quarterly earnings data on Wednesday, August 1st. The insurance provider reported $1.90 EPS for the quarter, topping analysts’ consensus estimates of $1.45 by $0.45. Allstate had a net margin of 9.06% and a return on equity of 15.21%. The firm had revenue of $8.46 billion during the quarter, compared to analyst estimates of $8.53 billion. During the same quarter last year, the business posted $1.38 EPS. The company’s revenue was up 5.5% on a year-over-year basis. equities analysts forecast that Allstate Corp will post 9.42 EPS for the current year.

  • [By Shane Hupp]

    Get a free copy of the Zacks research report on Allstate (ALL)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Shane Hupp]

    Allion (CURRENCY:ALL) traded up 4.4% against the US dollar during the 24 hour period ending at 8:00 AM Eastern on May 29th. One Allion coin can currently be purchased for $0.0143 or 0.00000193 BTC on popular exchanges including YoBit, Cryptopia and CoinExchange. Allion has a total market cap of $88,618.00 and $1,993.00 worth of Allion was traded on exchanges in the last 24 hours. During the last week, Allion has traded down 4.3% against the US dollar.

  • [By Garrett Baldwin]

    Click here to learn more…

    Stocks to Watch Today: DIS, TMUS, BP, S Shares of Walt Disney Co. (NYSE: DIS) will lead a busy day of earnings reports. Wall Street is expecting a small decline in revenue for the first quarter. Disney is still in the process of absorbing most of Fox's assets from a deal last June. In addition, Disney will be launching its streaming service, Disney+, and investors will be looking for updates on the project. In deal news, T-Mobile U.S. Inc. (NYSE: TMUS) is looking to sweeten an offer to regulators to ensure a merger with rival Sprint Corp. (NYSE: S). The telecom giant told the U.S. Federal Communications Commission that it would freeze the prices of many plans if it receives approval for a deal. T-Mobile has offered $26 billion to buy Sprint. Shares of BP Plc. (NYSE: BP) rallied more than 3.7% after the global energy giant topped 2018 earnings expectations. The firm's big bets on shale developments have paid off. Profitability more than doubled over the previous year, while production topped out at 3.7 million barrels per day. Look for earnings reports from Allstate Corp. (NYSE: ALL), Anadarko Petroleum Corp. (NYSE: APC), Archer Daniels Midland Co. (NYSE: ADM), Becton, Dickenson & Co. (NYSE: BDX), BP Plc. (NYSE: BP), Chubb Ltd. (NYSE: CB), Digital Realty Trust (NYSE: DLR), Emerson Electric Co. (NYSE: EMR), Estee Lauder Co. Inc. (NYSE: EL), Lazard Ltd. (NYSE: LAZ), Pitney Bowes Inc. (NYSE: PBI), Plains All American Pipeline LP (NYSE: PAA), Ralph Lauren Corp. (NYSE: RL), Snap Inc. (NYSE: SNAP), and Tableau Software Inc. (NASDAQ: DATA).

    Follow Money Morning on Facebook, Twitter, and LinkedIn.

  • [By Joseph Griffin]

    Uncommon Cents Investing LLC lessened its stake in Allstate Corp (NYSE:ALL) by 2.1% during the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 37,170 shares of the insurance provider’s stock after selling 790 shares during the period. Allstate accounts for about 2.3% of Uncommon Cents Investing LLC’s holdings, making the stock its 16th biggest position. Uncommon Cents Investing LLC’s holdings in Allstate were worth $3,669,000 as of its most recent filing with the Securities & Exchange Commission.

  • [By Ethan Ryder]

    Zurich Insurance Group Ltd FI lessened its position in shares of Allstate Corp (NYSE:ALL) by 22.5% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 57,833 shares of the insurance provider’s stock after selling 16,753 shares during the period. Zurich Insurance Group Ltd FI’s holdings in Allstate were worth $5,278,000 at the end of the most recent quarter.

Hot High Tech Stocks For 2019: Sonoco Products Company(SON)

Advisors' Opinion:
  • [By Joseph Griffin]

    Douglas Lane & Associates LLC purchased a new position in shares of Sonoco Products Co (NYSE:SON) during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 4,354 shares of the industrial products company’s stock, valued at approximately $242,000.

  • [By Logan Wallace]

    Wolverine Asset Management LLC acquired a new stake in Sonoco Products Co (NYSE:SON) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 14,000 shares of the industrial products company’s stock, valued at approximately $735,000.

  • [By Ethan Ryder]

    Get a free copy of the Zacks research report on Sonoco Products (SON)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Ethan Ryder]

    Packaging Co. of America (NYSE: PKG) and Sonoco (NYSE:SON) are both industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

  • [By Logan Wallace]

    Get a free copy of the Zacks research report on Sonoco Products (SON)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Reuben Gregg Brewer]

    The retail apocalypse is a huge deal for brick-and-mortar stores, even if the pain doesn't turn out to be as bad as some hyperbolic market watchers suggest. The main issue, of course, is the growing importance of online sales. But what if you could find a company that wasn't as prohibitively expensive as many tech stocks and was set to benefit from e-commerce growth? That would be little-known Sonoco Products Company (NYSE:SON). Here's what you need to know about this 2.9%-yielding industrial stock.

Hot High Tech Stocks For 2019: Lockheed Martin Corporation(LMT)

Advisors' Opinion:
  • [By Lou Whiteman]

    Sciple: That will be our first look at how any of these companies was affected by the shutdown. We had a lot of defense contractors reporting earnings in this past week. Lockheed Martin (NYSE:LMT), General Dynamics (NYSE:GD), Raytheon (NYSE:RTN), Northrop (NYSE:NOC). Of course, those numbers are not embracing a significant chunk of the government shutdown. However, they did give relatively muted guidance looking out into next year. Can you talk about that a little bit? 

  • [By WWW.GURUFOCUS.COM]

    For the details of Stonehearth Capital Management, LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Stonehearth+Capital+Management%2C+LLC

    These are the top 5 holdings of Stonehearth Capital Management, LLCVanguard FTSE Emerging Markets (VWO) - 256,939 shares, 16.37% of the total portfolio. Shares reduced by 1.31%Vanguard FTSE Developed Markets (VEA) - 218,068 shares, 13.58% of the total portfolio. Shares added by 0.31%iShares MSCI Frontier 100 Fund (FM) - 247,185 shares, 11.36% of the total portfolio. Shares reduced by 0.89%Vanguard Small-Cap (VB) - 53,681 shares, 11.01% of the total portfolio. Shares reduced by 0.23%Xtrackers MSCI EAFE Hedged Equity (DBEF) - 228,07
  • [By Lou Whiteman]

    A version of Lockheed Martin's (NYSE:LMT) high-tech Aegis weapon system upgraded for ballistic missile defense (BMD) provided the computing power and radars used in the test, while a Raytheon-built (NYSE:RTN) SM-3 interceptor was fired at the target.

  • [By ]

    Boeing's guidance on cash flow was important given that aerospace and defense giant Lockheed Martin Corp. (LMT) expects "negative cash from operations in the second quarter" and did not raise its cash flow guidance, which sent the stock tumbling by more than 6% Tuesday. 

Hot High Tech Stocks For 2019: Towne Bank(TOWN)

Advisors' Opinion:
  • [By Joseph Griffin]

    John W. Rosenthal Capital Management Inc. grew its stake in shares of TowneBank (NASDAQ:TOWN) by 10.0% in the first quarter, HoldingsChannel.com reports. The firm owned 110,000 shares of the bank’s stock after buying an additional 10,000 shares during the quarter. TowneBank comprises approximately 2.5% of John W. Rosenthal Capital Management Inc.’s holdings, making the stock its 16th largest holding. John W. Rosenthal Capital Management Inc.’s holdings in TowneBank were worth $3,146,000 as of its most recent filing with the SEC.

  • [By Max Byerly]

    TowneBank (NASDAQ:TOWN) had its hold rating reissued by analysts at Brean Capital.

    KeyCorp started coverage on shares of Waste Connections (NYSE:WCN). The firm issued an overweight rating on the stock.

  • [By Max Byerly]

    TowneBank (NASDAQ:TOWN) is scheduled to announce its earnings results before the market opens on Wednesday, July 25th. Analysts expect TowneBank to post earnings of $0.50 per share for the quarter.

Hot High Tech Stocks For 2019: Amgen Inc.(AMGN)

Advisors' Opinion:
  • [By Chris Lange]

    Amgen Inc. (NASDAQ: AMGN) saw its short interest fall to 9.62 million shares from the previous level of 9.79 million. Shares were last seen at $178.26, in a 52-week trading range of $153.56 to $201.23.

  • [By Chris Lange]

    Amgen Inc. (NASDAQ: AMGN) saw its short interest fall to 10.24 million shares from the previous level of 10.63 million. Shares were last seen trading at $206.00, in a 52-week trading range of $163.31 to $210.19.

  • [By Ethan Ryder]

    Wayne Hummer Investments L.L.C. trimmed its position in shares of Amgen (NASDAQ:AMGN) by 11.6% during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 2,311 shares of the medical research company’s stock after selling 303 shares during the period. Wayne Hummer Investments L.L.C.’s holdings in Amgen were worth $394,000 at the end of the most recent quarter.

  • [By Logan Wallace]

    Eqis Capital Management Inc. grew its position in Amgen, Inc. (NASDAQ:AMGN) by 3.3% in the second quarter, according to its most recent filing with the SEC. The fund owned 42,769 shares of the medical research company’s stock after acquiring an additional 1,361 shares during the period. Amgen accounts for approximately 0.5% of Eqis Capital Management Inc.’s investment portfolio, making the stock its 23rd biggest position. Eqis Capital Management Inc.’s holdings in Amgen were worth $7,895,000 at the end of the most recent reporting period.

  • [By ]

    Amgen (Nasdaq: AMGN) -- Amgen is a leading global biotech developer with a diverse product portfolio and promising development pipeline. The company has special expertise in cancer research and renal failure (kidney disease) treatments. Its biggest blockbuster is the anti-inflammatory drug Enbrel, used primarily for rheumatoid arthritis, which is in the top-five worldwide with annual sales of nearly $8 billion.

  • [By Chris Lange]

    Amgen Inc. (NASDAQ: AMGN) is waiting for the FDA to review its Biologics License Application (BLA) for Aimovig (erenumab) for the prevention of migraine in patients experiencing four or more migraine days per month. The FDA has set a PDUFA date for May 17.

Thursday, February 14, 2019

These Stocks Have Surged 25% Or More So Far In 2019. Why I Think You Should Buy Them Today

&l;p&g;&l;img class=&q;dam-image getty size-large wp-image-1126628428&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/1126628428/960x0.jpg?fit=scale&q; data-height=&q;640&q; data-width=&q;960&q;&g;

These stocks have seen their stock values swell by a fifth or more since January 1. And I can see them continue to surge as the year progresses.

&l;strong&g;Divestment News&l;/strong&g;

Fuller, Smith &a;amp; Turner has seen its share price go gangbusters since the turn of 2019. It&a;rsquo;s up 25% in the year to date but, unlike some of the stocks surging in the new year, the pub operator&a;rsquo;s rise cannot be&a;nbsp;&l;span&g;simply&l;/span&g; attributed to bright trading numbers.

Instead the small cap has thrust higher&a;nbsp;chiefly because of news that it is to divest its portfolio of centuries-old ales and beers to Japan&a;rsquo;s Asahi Group for an enterprise value of &a;pound;250m, a move that will see its beloved brands like London Pride and Cornish Orchards come under Asian control.

The deal will allow Fuller, Smith &a;amp; Turner to continue selling these beverages through its establishments via a long term supply agreement, it said, whilst allowing it to focus on improving its&a;nbsp;position as one of the UK&a;rsquo;s major premium pub and hotel operators.

&l;strong&g;Top Trading&l;/strong&g;

The divestment of its much-loved drinks stable may have commanded the headlines in January and driven its share price skywards. But don&a;rsquo;t underestimate the impact of more strong trading numbers in helping to boost investor appetite for the stock, too.

Last month the London business also declared that it had&a;nbsp; delivered &a;ldquo;&l;em&g;a very strong performance&l;/em&g;&a;rdquo; since it last updated the market during late November, and that like-for-like sales across its Managed Pubs and Hotels had leapt 5.6% in the 42 weeks to January 19.

The popularity of its beers and the quality of its estate is allowing it to defy the broader pressure on consumer spending power that the slowing UK economy is causing and over the critical month of December like-for-like sales leapt an impressive 8.7%.

It&a;rsquo;s not a shock to find City analysts predicting that earnings at Fuller, Smith &a;amp; Turner will continue edging higher, then, by 1% in 2019 and 4% in 2020. Not spectacular numbers, sure, but testament to the company&a;rsquo;s resilience, a quality that merits a slightly-toppy forward P/E ratio of 17.1 times in my opinion. It&a;rsquo;s a top leisure stock to buy into today, in my opinion.

&l;strong&g;It&l;span&g;&a;rsquo;s&a;nbsp;Time To Shine&l;/span&g;&l;/strong&g;

Petropavlovsk is another London-listed share that has charged higher since the turn of the year, its market value up 32% to be exact since New Year&a;rsquo;s Day.

The surging gold price has been one critical driver so far in 2019, the safe-haven metal ploughing through levels not seen since last spring above $1,320 per ounce. And the concoction of geopolitical and macroeconomic stresses currently swirling means that additional strength is quite possible in the weeks and months ahead.

What&a;rsquo;s more, strong production news from Petropavlovsk in recent weeks has helped its share price to gain ground. With its Pokrovskiy pressure oxidation (or POX) facility having poured maiden gold ahead of schedule in December, full-year production came in at some 422,300 ounces. And with further processing lines set for commissioning as 2019 progresses total production this year is estimated at between 450,000 ounces and 500,000 ounces.

With output surging and gold prices expected to remain robust, City brokers are forecasting profits increases of 52% this year and 28% in 2020. Despite its bright growth outlook the gold digger still trades on a mega-low prospective P/E ratio of 6.8 times, though. I reckon this leaves plenty of space for its share price to keep on charging.&l;/p&g;

Top Value Stocks To Buy For 2019

tags:APB,FNJN,PRGS,

Cemtrex (NASDAQ:CETX) is a small industrials company out of Long Island, NY. You've likely never heard of it, but it immediately needs to be on your radar because of its low valuation, high appetite for growth, and positioning in several different, but favorable global markets. This stock is a classic high risk, high reward small-cap with an attractive, yet unrecognized growth profile. Based upon a projected fair value of $19.41/share, the stock has implied upside of 163%.

Source: Cemtrex

Background and Quick Trading Data

Cemtrex is a small-cap stock with a market capitalization of just $72 million. It's volatility is massively high and to put it blatantly, management even wrote in the risk factors section of their recent 10-K, "Investing in our common stock involves a high degree of risk." Having been in the position for a couple weeks now, I can tell you that some days you'll be up over 10%, but other days you'll suffer 6% losses. If, after reading this pitch, you choose to buy the stock, think about allocation carefully as to not subject your entire portfolio to an undue level of risk. Liquidity is not yet ample enough for major institutional investors to take positions in, as they risk a liquidity crunch in the event of a sell-off, however it's perfectly adequate for retail investors. The rolling three month average daily volume is just over 370,000 shares. The stock's beta is 1.16.

Top Value Stocks To Buy For 2019: Asia Pacific Fund, Inc. (APB)

Advisors' Opinion:
  • [By Logan Wallace]

    Media coverage about Asia Pacific Fund, Inc. (The) common stock (NYSE:APB) has been trending somewhat positive on Sunday, Accern reports. Accern rates the sentiment of press coverage by reviewing more than twenty million news and blog sources in real-time. Accern ranks coverage of companies on a scale of -1 to 1, with scores closest to one being the most favorable. Asia Pacific Fund, Inc. (The) common stock earned a news impact score of 0.10 on Accern’s scale. Accern also assigned news stories about the investment management company an impact score of 45.8681605197346 out of 100, indicating that recent press coverage is somewhat unlikely to have an impact on the company’s share price in the next few days.

Top Value Stocks To Buy For 2019: Finjan Holdings, Inc.(FNJN)

Advisors' Opinion:
  • [By Max Byerly]

    Finjan Holdings Inc (NASDAQ:FNJN) shares saw an uptick in trading volume on Tuesday . 32,387 shares changed hands during trading, a decline of 93% from the previous session’s volume of 494,407 shares.The stock last traded at $4.98 and had previously closed at $5.08.

  • [By Max Byerly]

    Marathon Patent Group (NASDAQ: MARA) and Finjan (NASDAQ:FNJN) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

  • [By Stephan Byrd]

    Get a free copy of the Zacks research report on Finjan (FNJN)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Logan Wallace]

    Get a free copy of the Zacks research report on Finjan (FNJN)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Logan Wallace]

    Get a free copy of the Zacks research report on Finjan (FNJN)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top Value Stocks To Buy For 2019: Progress Software Corporation(PRGS)

Advisors' Opinion:
  • [By Shane Hupp]

    GSA Capital Partners LLP trimmed its holdings in shares of Progress Software Co. (NASDAQ:PRGS) by 21.6% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 58,142 shares of the software maker’s stock after selling 16,052 shares during the quarter. GSA Capital Partners LLP owned about 0.13% of Progress Software worth $2,257,000 at the end of the most recent quarter.

  • [By Stephan Byrd]

    Progress Software Corp (NASDAQ:PRGS) was the recipient of some unusual options trading activity on Thursday. Stock traders bought 775 put options on the stock. This is an increase of approximately 1,170% compared to the typical daily volume of 61 put options.

  • [By Garrett Baldwin]

    Get an exclusive invitation to meet Tim before everyone else right here.

    The Top Stock Market Stories for Wednesday The U.S. markets are preparing for the eighth interest rate hike since 2015, and the Federal Reserve may not be done yet. Markets are weighing the possibility that the Fed may raise rates one more time this year (in December). The hikes come as the Fed is attempting to shrink its $4.5 trillion balance sheet. When Powell speaks this afternoon, expect a few questions about the impact of the trade war between the United States and China. Reporters will also likely want to know about geopolitical risks to the U.S. economy and how they might affect growth in a higher-interest-rate environment. Yesterday, U.S. President Donald Trump gave a speech before the United Nations General Assembly. During his talk, Trump praised the U.S. economy and defended his administration's actions this year on trade. Trump said that the United States will no longer endure "abuse" from other trade partners. The U.S. Trade Representative Robert Lighthizer also said Tuesday that the U.S. is prepared to proceed on a new trade deal with Mexico without the participation of Canada. Oil prices are in focus after President Trump called out OPEC members before the U.N. on Tuesday. During his talk, Trump accused OPEC and non-OPEC participants in collusion efforts on production and prices of ripping off the rest of the world. Three Stocks to Watch Today: NKE, SVMK, DB Shares of Nike Inc. (NYSE: NKE) fell 3.5% after the sports apparel giant reported earnings after the bell. The company topped earnings expectations and reported profit growth of 15%. However, investors took some profits off the table. Shares of Nike stock are up more than 35% on the year. SVMK, the parent company of SurveyMonkey, has priced its upcoming IPO at $12 per share. That figure is above analysts' initial range expectation of $9 to $11 per share. The firm expects to reach a market capitalization of $1.46 bil
  • [By Shane Hupp]

    Smith Asset Management Group LP cut its holdings in shares of Progress Software (NASDAQ:PRGS) by 45.9% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 61,653 shares of the software maker’s stock after selling 52,380 shares during the period. Smith Asset Management Group LP owned 0.14% of Progress Software worth $2,371,000 as of its most recent filing with the Securities and Exchange Commission.

Tuesday, February 12, 2019

Top Dividend Stocks To Invest In 2019

tags:APH,NUE,UPS,Switzerland,

There's nothing like cash to show how successful a company has been. When a fledgling enterprise first turns cash-flow positive -- that is, when the money going in starts exceeding the money going out -- it's a sign the company is on its way to profitability.

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Growing companies need cash to invest in their businesses, and, until they turn profitable, will have to either borrow or issue new equity to supplement their cash positions.

When a mature company is doing well, it may choose to borrow -- but it often does not need to. Its business might already generate enough cash to cover all the ongoing expenses, pay for share buybacks and/or dividends and have some cash left over.

Top Dividend Stocks To Invest In 2019: Amphenol Corporation(APH)

Advisors' Opinion:
  • [By Shane Hupp]

    Aphelion (CURRENCY:APH) traded up 1.3% against the dollar during the one day period ending at 15:00 PM E.T. on September 29th. One Aphelion token can currently be bought for $0.0541 or 0.00000822 BTC on cryptocurrency exchanges including Switcheo Network and Kucoin. Over the last week, Aphelion has traded down 2.4% against the dollar. Aphelion has a total market cap of $2.70 million and $143,193.00 worth of Aphelion was traded on exchanges in the last 24 hours.

  • [By Stephan Byrd]

    Amalgamated Bank lifted its holdings in Amphenol Co. (NYSE:APH) by 5.3% during the second quarter, Holdings Channel reports. The institutional investor owned 46,197 shares of the electronics maker’s stock after acquiring an additional 2,342 shares during the quarter. Amalgamated Bank’s holdings in Amphenol were worth $4,026,000 as of its most recent filing with the Securities & Exchange Commission.

  • [By Logan Wallace]

    Get a free copy of the Zacks research report on Amphenol (APH)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Ethan Ryder]

    Teacher Retirement System of Texas lessened its holdings in shares of Amphenol Co. (NYSE:APH) by 50.9% during the 2nd quarter, Holdings Channel reports. The firm owned 154,246 shares of the electronics maker’s stock after selling 160,204 shares during the period. Teacher Retirement System of Texas’ holdings in Amphenol were worth $13,443,000 at the end of the most recent reporting period.

Top Dividend Stocks To Invest In 2019: Nucor Corporation(NUE)

Advisors' Opinion:
  • [By Matthew DiLallo]

    At that earnings run rate, U.S. Steel's stock sells for a mere 3.5 times its enterprise value to EBITDA. For comparison's sake, that's about half the level of rival Nucor (NYSE:NUE), suggesting that U.S. Steel's stock could have much further to run if steel prices and demand hold up.

  • [By ]

    Cramer and the AAP team note that seven of the companies in their portfolio are reporting this week, including Abbott Laboratories (ABT) , Nucor (NUE) and Honeywell (HON) . Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.

  • [By Max Byerly]

    Nucor (NYSE: NUE) and USINAS SIDERURG/S (OTCMKTS:USNZY) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

  • [By Ethan Ryder]

    Shares of Nucor Co. (NYSE:NUE) have been given an average recommendation of “Buy” by the fourteen analysts that are covering the firm, MarketBeat Ratings reports. Five research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. The average 1-year price target among brokers that have covered the stock in the last year is $72.25.

Top Dividend Stocks To Invest In 2019: United Parcel Service Inc.(UPS)

Advisors' Opinion:
  • [By Logan Wallace]

    Laurel Wealth Advisors Inc. lowered its stake in shares of United Parcel Service, Inc. (NYSE:UPS) by 6.9% in the 1st quarter, HoldingsChannel reports. The institutional investor owned 20,335 shares of the transportation company’s stock after selling 1,498 shares during the quarter. Laurel Wealth Advisors Inc.’s holdings in United Parcel Service were worth $2,128,000 as of its most recent SEC filing.

  • [By Logan Wallace]

    Beese Fulmer Investment Management Inc. lifted its stake in shares of United Parcel Service, Inc. (NYSE:UPS) by 1.6% during the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 40,568 shares of the transportation company’s stock after purchasing an additional 636 shares during the quarter. Beese Fulmer Investment Management Inc.’s holdings in United Parcel Service were worth $4,736,000 as of its most recent SEC filing.

  • [By Paul Ausick]

    United Parcel Service Inc. (NYSE: UPS) said Friday morning that the company has reached a tentative agreement with the Teamsters union on a five-year contract covering union employees involved in small package deliveries. The agreement remains subject to ratification by the UPS employees.

Top Dividend Stocks To Invest In 2019: Tyco International Ltd.(Switzerland)

Advisors' Opinion:
  • [By ]

    In addition to South Korea’s small ETF, there are a few funds traded in Europe that track Mexican assets. Here are the ones to watch:

    Xtrackers MSCI Mexico UCITS ETF (Germany)iShares MSCI Mexico Capped UCITS ETF USD (Switzerland)HSBC MSCI Mexico Capped UCITS ETF (U.K.)Kim Kindex MSCI Mexico ETF (South Korea)Stocks

    Some of the larger companies based in Mexico are dual listed in Europe. While trading in these securities is limited, there may be some movement in the European morning hours. Here are a few to watch:

Sunday, February 10, 2019

Should You Join The Wall Street Bears?

&l;p&g;&l;img class=&q;dam-image getty size-large wp-image-638971392&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/638971392/960x0.jpg?fit=scale&q; data-height=&q;639&q; data-width=&q;960&q;&g; A view on a sculpture depicting the Bull and Bear, located near the Frankfurt Stock Exchange.

The S&a;amp;P 500&a;rsquo;s almost-1% decline last Thursday seems to have caused a quick change in the outlook of some analysts. Several warned that stocks were now too expensive after the dramatic rally from the December lows. Others pointed to the fact the S&a;amp;P 500, after rebounding to its 200-day Simple Moving Average (SMA), failed to close above it.

&l;img class=&q;size-full wp-image-20821&q; src=&q;http://blogs-images.forbes.com/tomaspray/files/2019/02/WA2-8a.jpg?width=960&q; alt=&q;&q; data-height=&q;243&q; data-width=&q;1086&q;&g;

Even though the selling continued early Friday, dropping the Dow Industrials down near the 25,000 level, it closed at 25,106, up slightly for the week. In fact, as the table indicates, all of the major averages closed higher as the Dow Jones Utility Average led the way up 2.1%. The Nasdaq 100 gained 0.55%. All of the averages are still showing solid YTD gains.

&l;strong&g;But did these declines change any of the technical indicators? &l;/strong&g;As I mentioned last week (&l;a href=&q;https://www.forbes.com/sites/tomaspray/2019/02/03/trend-insights-from-the-monthly-charts/&q;&g;Catch The Trend With Monthly Charts&l;/a&g;), there were some significant technical signals in January, as the monthly S&a;amp;P 500 Advance/Decline line made a new all-time high.

&l;img class=&q;size-full wp-image-20822&q; src=&q;http://blogs-images.forbes.com/tomaspray/files/2019/02/WA2-8b.jpg?width=960&q; alt=&q;&q; data-height=&q;792&q; data-width=&q;900&q;&g;

The &l;a href=&q;http://www.viperreport.com/ad-line-market-timing-stock-picking-trading/&q; target=&q;_blank&q;&g;advance/decline numbers&l;/a&g; were decidedly negative on Thursday, which caused all of the daily A/D lines to turn down slightly. The NYSE Composite reached the resistance from the November highs (line a) before it turned lower. The 20-day Exponential Moving Average (EMA) is at 12,125, which also corresponds to the mid-January high, and rising. There is further support in the 11,900-12,000 area.

The NYSE All A/D line has turned down slightly from its recent high as the key downtrend (line b) was overcome in late January. This was the resistance that was derived from the bearish divergence that formed at the September 21 high. As we discussed last week, a bearish divergence is when the A/D line makes a high followed by a lower high, while prices make a high followed by a higher high. The NYSE Stocks Only A/D Line has moved above the resistance (line c) but is still well below the September high.

&l;img class=&q;size-full wp-image-20823&q; src=&q;http://blogs-images.forbes.com/tomaspray/files/2019/02/WA2-8c.jpg?width=960&q; alt=&q;&q; data-height=&q;745&q; data-width=&q;818&q;&g;

For the week, all of the A/D lines did move a bit higher. The Invesco QQQ Trust (QQQ) had a high last week of $171.37, with next weekly resistance (line a) at $172.85. The 20-week EMA has flattened out, and is now at $165.62. This represents good support.

The Nasdaq 100 A/D made a new high last week after previously overcoming its short term downtrend (line b). The WMA has turned upward, which is a positive sign, and there is now major support (line c). Invesco QQQ Trust&s;s weekly &l;a href=&q;http://www.viperreport.com/the-secret-to-trading-etfs-for-profit/&q; target=&q;_blank&q;&g;relative performance&l;/a&g; improved last week, suggesting that it is stronger than the S&a;amp;P 500.

&l;img class=&q;size-full wp-image-20824&q; src=&q;http://blogs-images.forbes.com/tomaspray/files/2019/02/WA2-8d.jpg?width=960&q; alt=&q;&q; data-height=&q;751&q; data-width=&q;818&q;&g;

The Spyder Trust (SPY) closed slightly above its 200-day MA last Tuesday and Wednesday, before it corrected. The decline has so far held well above the 20-day EMA at $266.19. Looking at price targets above last week&a;rsquo;s high at $273.44, the daily starc+ band is at $277.82, and there is widely watched resistance at $280.

The daily S&a;amp;P 500 A/D line pulled back slightly last week, but is well above its steep uptrend (line b) and its sharply-rising WMA. There is more important A/D line support (line a), which was the resistance that was overcome in late January.

Many are already worried about what will happen to stocks in March, as the market learned that President Trump was no longer meeting President Xi. The US-China March trade deadline and Brexit already have the markets worried. Concerns over first quarter 2019 earnings also started to worry analysts last week, as the guidance turned negative.

Some may still be reacting to the disappointing price action in Amazon.com (AMZN) and Alphabet (GOOGL). They were down 2.3% and 1.4% respectively for the week, despite the fact that GOOGL beat earnings by $500 million. Neither has much debt, but it seems as though investors are now holding the big tech names to a higher standard.

There were a number of more dire headlines, as Deutsche Bank &l;a href=&q;https://www.marketwatch.com/story/this-cocktail-of-macro-risks-could-cause-downturn-that-rivals-global-financial-crisis-deutsche-bank-2019-02-07?dist=markets&q; target=&q;_blank&q;&g;&a;ldquo;warned of dark clouds gathering over the global economy&a;rdquo;&l;/a&g;. Then there is Morgan Stanley&a;rsquo;s Mike Wilson, who has been warning of an &l;a href=&q;https://www.cnbc.com/2018/11/26/morgan-stanley-strategist-who-predicted-sell-off-sees-dismal-2019.html&q; target=&q;_blank&q;&g;earnings recession&l;/a&g;.

Of course, this is in contrast to the seeming lack of any concern demonstrated by investors and traders in January, who were declaring it was time to &a;ldquo;buy, buy, buy!&a;rdquo;. I too would like to see a certain amount of concern, as too high bullishness or complacency often means trouble for stocks. However, this dramatic shift in media sentiment seems like an over-compensation.

&l;img class=&q;size-full wp-image-20825&q; src=&q;http://blogs-images.forbes.com/tomaspray/files/2019/02/WA2-8e.jpg?width=960&q; alt=&q;&q; data-height=&q;673&q; data-width=&q;900&q;&g;

In last week&a;rsquo;s survey from the American Association of Individual Investors (AAII), the Bearish-% dropped to 22.8% while the Bullish-% rose to 39.9%. Even though the Bullish-% is not that high, historically the Bearish-% is quite low.

Turning to bonds, the rebound in yields was short lived, as the yield on the 10-Year T-Note closed at 2.632% after reaching the 2.800% level just a few weeks ago. The technical reading did indicate a failing rally, and the new Viper buy signals in the Utilities Sector Select (XLU) supported this view.

Crude oil was hit hard last week, as the April contract lost $2.46 for the week. Still at $53.09, it is holding above the four-week low at $51. The weekly &l;a href=&q;https://www.viperreport.com/how-to-use-volume-to-predict-stock-direction/&q; target=&q;_blank&q;&g;On Balance Volume&l;/a&g; has dropped below its WMA, but the Herrick Payoff Index (HPI) is still positive, indicating positive money flow into crude.

For economic data, next week we have the Consumer Price Index on Wednesday, with the Producer Price Index, Retail Sales, and Business Inventories on Thursday. On Friday, we get the Empire State Manufacturing Survey, Industrial Production, and Consumer Sentiment.

&l;strong&g;So is it time to jump on the bearish bandwagon? &l;/strong&g;The stock market&a;rsquo;s ability to absorb last week&a;rsquo;s selling and close higher indicates that the rally from the pre-Christmas lows is not over. There are no signs from the market internals that a top is in place.

A further wave of selling early this week would be a sign that there has been a loss of upside momentum. It is more likely in my opinion, based on the daily A/D lines, that a higher close early in the week will signal a significant move above last week&a;rsquo;s highs.

Clearly, it is not the time to be an aggressive buyer of market leading ETF&s;s, though some stocks still are just breaking out and have a much more favorable risk/reward profile.

In my&a;nbsp;&l;a href=&q;http://guides.viperreport.com/viper-etf/&q; target=&q;_blank&q;&g;Viper ETF Report&l;/a&g;&a;nbsp;and the&a;nbsp;&l;a href=&q;http://guides.viperreport.com/viper-hot-stocks/&q; target=&q;_blank&q;&g;Viper Hot Stocks Report&l;/a&g;, I&a;nbsp;update&a;nbsp;my stock market outlook twice each week with specific buy and sell advice. New subscribers receive six trading lessons for just $34.95 each per month.

&l;/p&g;

Saturday, February 9, 2019

One of Tesla's largest investors just increased its stake

Tesla shareholder Baillie Gifford has just increased its stake in the electric car maker, according to a regulatory filing Friday.

U.K.-based investment management firm Baillie Gifford & Co., Tesla's second-largest institutional shareholder, bought 108,931 of the company's shares during the fourth quarter, according to the filing and data compiled by FactSet.

It now owns just over 13.2 million shares valued at roughly $4 billion. Its stake increased from 7.64 percent at the end of the third quarter to 7.71 percent as of Dec. 31.

A partner at the U.K.-based investment management firm praised Tesla CEO Elon Musk back in October, and said the firm "would be willing to back him" if Musk needed more capital.

Investors have kept a close eye on Tesla's cash position. The company has had to go to markets several times since its 2010 IPO to fund its ambitious plans to rapidly scale batter and auto production.

However Musk had said in recent months he expects Tesla to be profitable and cash-flow positive starting in the third quarter of 2018. So far, Tesla has hit that target, delivering two profitable quarters in a row for the first time in its history as a public company.

Neither Tesla nor Baillie Gifford were immediately available for comment.

Friday, February 8, 2019

5 Must-See Stock Trades for Thursday: SNAP, DIS, TTWO

The State of the Union address did not help stocks on Wednesday, but on the plus side, it did not deal a blow to the markets either. As of now, stocks are simply chopping and consolidating, pondering the next move as major U.S. indices flirt with an overbought condition. Let’s check out a few must-see stock trades for Thursday.

Must-See Stock Trades #1: Disney

must-see stock trades for Disney earningsmust-see stock trades for Disney earnings

Shares of Walt Disney (NYSE:DIS) are struggling Wednesday despite the company beating on earnings and revenue expectations for the first quarter.

However, shares are holding up well on the long-term weekly chart. Over $110 and DIS is still over prior downtrend resistance (blue line). It’s also over its major moving averages. While this is not the earnings reaction that investors were hoping for and while Disney is clearly hitting a tough zone near $114 to $115, it’s hard to get too bearish.

Over downtrend resistance and bulls can stay long. Below and look for a buying opportunity near uptrend support (black line) and/or the 200-week moving average.


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Must-See Stock Trades #2: Snap

must-see stock trades for SNap earningsmust-see stock trades for SNap earnings

I’ve got to give credit where credit is due and in the case of Snap (NYSE:SNAP), bulls deserve some. Shares are up some 25% after the company delivered a better-than-expected earnings result. As much as I don’t like Snap or its long-term business, we’ve got to respect price action.

Bulls who have been long may consider taking profits on this move. Particularly as Snap runs into $9, a former support level, and potential downtrend resistance. Those who want to squeeze out more gains, may see a rise up to $9.60 and possibly even $10 should a short-squeeze really get started.

On the downside, bulls can’t let Snap get back below $7 and the 100-day moving average. If it does, shares are in trouble. Let’s see if it can consolidate near current levels, between Wednesday’s high/low range.


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Must-See Stock Trades #3: Take-Two Interactive

must-see stock trades for TTWO earningsmust-see stock trades for TTWO earnings

Disappointing earnings sacked Take-Two Interactive Software (NASDAQ:TTWO). The move thrust shares below the recent lows near $98, a decent support level where buyers had buoyed the stock price.

Instead, shares took out the 52-week low near $92.50 and are quickly drifting into no man’s land. If it can reclaim the $92.50 level, some investors may find it advantageous to sell some longer dated put options as a way to get long and collect some premium.

However, for traders, TTWO, Electronic Arts (NASDAQ:EA) and Activision Blizzard (NASDAQ:ATVI) have all been under tremendous pressure. I’d wait for a more solid setup before dipping my toe in here. If TTWO stock rebounds but fails to hold $92.50, or rallies up to $98 but can’t penetrate this prior support level, shorts will have a solid risk/reward opportunity.


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Must-See Stock Trades #4: Skyworks Solutions

must-see stock trades for SWKS earningsmust-see stock trades for SWKS earnings

The solid-growth, low-valuation play Skyworks Solutions (NASDAQ:SWKS) has not had an easy time. On Wednesday though, shares soared 11.5% after the company reported a mostly in-line quarter and announced a $2 billion buyback plan. That’s no small sum for a stock with a $13 billion market cap.

Depending on how one draws their trendlines, SWKS is running right into downtrend resistance or has cleared it with precision (blue lines). Either way, it’s also hitting the 200-day moving average (and failing at it), while also hitting the 50% Fibonacci retracement from the 52-week high/low range when the stock was near Wednesday’s highs.

That’s a lot of overhead to digest through and may warrant some profit taking over the next few days. I basically want to see it hold over this $82 level now and if it can consolidate, it increases the odds of a further rally in the near future.


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Must-See Stock Trades #5: Schlumberger

must-see stock trades for SLBmust-see stock trades for SLB

Not much needs to be said here about Schlumberger (NYSE:SLB). The energy sector has been seeing solid earnings results and this one has a great setup. If it breaks out, can it get to $48?

I don’t know, but that’s my short-term upside target. If it fails, it could see $42 on the downside.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell