Sell Supreme Industries for a 50% Gain

By Linda McDonough • September 20, 2016

Supreme Industries (STS) is up about 50% in the four months since we recommended it. Such a huge move in a short period of time is a rare and beautiful thing in this market and we’re unwilling to see the gains fritter away. We still love the company’s position to flourish from demand for package delivery but think taking profits is wise. We’ll be closely watching the stock for an entry point.

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Ho tecksan

09/20/16 ‐ 10:13am ET September 20, 2016 at 10:13am ET

Noted with thanks Linda . Much appreciated

Ho tecksan

10/25/16 ‐ 7:23am ET October 25, 2016 at 7:23am ET

Hi Linda
Possible to give advice on STS . Good time to buy again @ current price USD 11.30 after sharp drop ? Appreciate .

Linda McDonough

10/25/16 ‐ 8:52am ET October 25, 2016 at 8:52am ET

Hello,
I am quite happy that we booked our gain in Supreme in mid-September at $18.50. The quarter reported was not too bad but the company’s backlog of future orders dropped 22% and indicates a potential decline in revenue and earnings. I don’t recommend buying it right now but will issue an alert if I think it’s a good value. Big truck orders have been atrocious and some of that seems to have spilled into the smaller truck market.
Best,
Linda

Ho tecksan

10/25/16 ‐ 8:56am ET October 25, 2016 at 8:56am ET

Much appreciated your sharing and will wait for your alert . I make good profit from STS . Thanks

Dr. C

09/20/16 ‐ 3:44pm ET September 20, 2016 at 3:44pm ET

Give me a little help on Criteo, got long on your rec around 45 so far I.ve been slaughtered. Any chance Thurs. Conf. Call will cause be of benefit??

Linda McDonough

09/20/16 ‐ 7:59pm ET September 20, 2016 at 7:59pm ET

Dr. C,
The Criteo decline has been frustrating. Our gain was as much as 25% before the recent drop. I’ve listened in on the webcast from the company’s analyst day last week and believe the drop is due to worries that a new method of bidding for advertising space will increase Criteo’s cost of goods. Management keep saying they are quite positive long term but their language is less precise for the short term which I think is adding to the nervousness. I am trying to be quite methodical about these positions so I suggest you keep a tight stop perhaps around the $34 level for half your position. Unfortunately I don’t think anything new will come out of the presentation this Thursday as analysts had an entire day with the management team last week. I do not think there is a risk that the company misses estimates but it is difficult to know when the sentiment shifts.
Best,
Linda

Yun

09/20/16 ‐ 3:55pm ET September 20, 2016 at 3:55pm ET

Great! 🙂

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About The Author

Linda McDonough

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Linda McDonough is a veteran hedge fund analyst who loves to break down company financial statements and identify market inefficiencies to uncover big opportunities. She believes in a boots-on-the-ground approach that includes surveying customers, interviewing company executives, or doing whatever it takes to see what others don't.

She's now brought her experience as a hedge fund analyst to subscribers of her Profit Catalyst Alert service. Her system identifies small- and mid-cap stocks that are about to move due to catalytic events that few others can identify...until it's too late. These events often times result in massive gains for her followers.