Putting $18 Limit on Cray
Cray cratered today on a bad number, dropping almost 30% from its close yesterday. Continued delays integrating new chips from Intel and Nvidia combined with a recent fire at a production facility took 2016 revenue estimates down over $100 million.
Most of the revenue looks pushed out and not lost entirely but we’re still working through the details. In the meantime we suggest investors put a stop of $18 on their holdings. Just as we like to average into a stock we like to average out as well. This means if the stock hits $18 I would sell half your position and wait for more guidance.
More to come as I work through the estimates for 2016 and 2017. The good news is the balance sheet looks strong with $5 per share in cash. This was a risk when I recommended the stock but the degree of the revenue cut is more than I had factored in.
Stock Talk
Jon D.
speaking of the stocks in general it seems like CRTO had good earnings but is not up. We still good with this one? Id buy more if the vote of confidence is there.
Thanks
Jon who knows you understand earnings lingo better than I
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Jon D.
Thanks for the stop Sugg I did that in my account
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Ho tecksan
Hi Linda
Any fresh advise on IBP & LSCC before their reports . One on 5 August & the other 9 August. Appreciate
Robert Frick
Linda is traveling and having a tough time connecting to Stock Talk, and she just sent me this to respond to your question: “Industry data on home building has remained strong which gives me more confidence in Installed Building Product’s (NYSE: IBP) ability to hit its targeted revenue and earnings. Lattice Semiconductor (NASD: LSCC) is a bit harder to get a read on. Industry data has been mixed but we are specifically looking for some color on how the roll out of the company’s new Wi-Gig technology is going.”
Ho tecksan
Thanks Robert & Linda
I got it . Appreciate
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Craig Telfer
Linda, Insight would be greatly appreciated as Ho has asked.
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Rocco Consalvo
Hi Linda, thanks for the quick advice on CRAY. $18.00 could be a good “buy” option on a strong company having some potholes in the road and as usual people strongly over reacting. The next couple of days I’ll be watching closely. Your thoughts on this. Finally, your recent e-mail on the “Tiny Dot Stock”- Being a subscriber to “Growth Stock Strategist “, doesn’t that give me privy to the name of the stock your backing without further costs and further sign up fees? Thank you, Rocco.
Rocco Consalvo
Please reply on both questions.
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