Air Transport Shakes Off Bad News
Air Transport Services Group gave preliminary results for its fourth quarter, lowering adjusted earnings guidance by $7 million due to the work stoppage of union pilots. Despite the bad news, the stock rallied slightly, as investors had feared the hit to earnings would be higher. Air Transport will give guidance on the uptake of its converted cargo planes by critical customer Amazon, when it formally reports fourth quarter earnings in early March.
Carbonite was up 18% last week on the news that it acquired Double Take software. Double Take’s technology allows companies to restore files in real time, removing the risk of any downtime associated with corrupt files or malware. Coincident with the purchase Carbonite pre-released fourth quarter earnings slightly above analyst estimates. Carbonite formally announces earnings on Feb. 9 after the market closes.
Gypsum Supply & Management expanded in Hawaii through an acquisition of hardware and ceiling supplier Grabber Construction products. Terms were not disclosed. It is unlikely this acquisition moves the needle on Gypsum’s top or bottom line.
Integrated Device Technology reported a solid quarter but the stock has sold off. Although guidance for the March quarter frames current estimates the low end would miss analysts’ expectations. I also suspect that because some fellow chip makers blew away estimates hopes were riding high for a huge earnings beat from Integrated. Earnings for the third quarter were 1 cent better than expected and guidance for fourth quarter earnings (ending March) is 32 to 36 cents versus estimates of 36 cents. The company has done an excellent job of gaining automotive customers and noted sales to these customers now equal 10% of total revenue. The company will be offering more details on this new industry focus at its analysts’ day on Feb. 7. I still like the stock and think the drop is a great buying opportunity.
Vulcan Materials reports earnings on Feb. 7 before the market opens
Ichor and Carbonite report earnings on Feb. 9 after the market closes
Stock Talk
Mary Claire
Is it too late to buy carbonite?
Linda McDonough
Mary Claire,
My current target on Carbonite is $23. I am working through the numbers of its recent acquisition to see if I can move that higher. I think you can buy the stock up to $21. I will be adding a “buy up to price” on each of the stocks in the portfolio to help subscribers determine their upper price range. Although Carbonite pre-announced its earnings for the fourth quarter already it will issue a formal release Thursday, Feb 9 with a conference call at 5:30. The call can be accessed from the company’s website (http://investor.carbonite.com/eventdetail.cfm?EventID=178850). I’ll be looking for more information on how the company’s base business is performing and how much the acquisition of Double-Take expands its market.
Thanks for being a subscriber.
Best,
Linda
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Norbert Kastner
why do i not receive alerts on my phone nor reccomendations?
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George Goldman Parvu
I have the same situation…..why do i not receive alerts on my e-mail/ phone nor recommendations?
Linda McDonough
Hello George and Norbert,
Only new buy and sell recommendations are issued via text or email alerts. Every Monday I post an update on the site recapping any news that has transpired over the previous week and highlighting any industry trends that might be impacting our stocks. I also include any upcoming events to look for. The article you see above is what is issued each Monday.
A monthly issue of Profit Catalyst Alert which includes detailed reports on new positions and reviews performance comes out the third Tuesday of every month. You will not get an alert for these reports which are issued at the same time every month and do not contain any new trade recommendations.
Please let me know if you have any other questions. Welcome aboard!
Best,
Linda
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Guest User
New subscriber. I have yet to lern option trading. Appreciate your thoughts on UAA and FEYE?
I have 60 UAA shares purchased at 39.50 and FEYE, down $2 per share. Wondering whether to purchase more or settle with a loss.
Linda McDonough
Welcome as a subscriber-
I don’t cover UAA or FEYE officially but do know a bit about UAA. Despite the huge drop, the stock is still quite expensive. It’s trading with a PE of 38, a high valuation for a company whose earnings will drop this year. The stock might have a short term bounce on some short sellers buying back shares but I’m not very optimistic on it.
And on FEYE I honestly don’t know it at all so can’t offer any opinions on that stock.
Best,
Linda
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Mark Wildman
I don’t see one stock trade that doubled. Sure isn’t the performance claimed in the sales pitch. I looked back and it said you could get started with as little as $100. Not likely. I went back and read the ad again. Mostly says you COULD have doubled or tripled your money in 90 days or less. Many of the open positions are a lot older than that. Looks like someone just went back and found stocks that went up just so they could be used in the ad. VERY DISAPPOINTED.Not what was advertised.
Linda McDonough
Mark,
You are correct, there are not any stocks in the portfolio that have doubled. There are several option trades that have doubled in a very short period of time, which you can see under the Portfolio tab and then under Options, Closed positions. This service gives you exposure to my 25+ years experience as a hedge fund analyst. It is in no way a guarantee that you will double your money in short order. That is simply impossible for anyone to deliver on a consistent basis. I have had many 30-40% gainers in less than a year, returns I am quite proud of. Give the service a try during your money back period. Certainly if you are disappointed or feel it does not offer enough value, you should cancel but please do give it a try. And feel free to post any questions about positions or any of my commentary.
Best,
Linda
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Guest User
what is your expectation of AYI? I do not own any shares at this point.
Linda McDonough
My target for AYI is currently under review. The company missed last quarter’s earnings due to a delay in some orders. I don’t love hearing that excuse but it has usually delivered strong growth so I’m giving it a one quarter grace period. I recommended to another subscriber that you can buy the stock up to $220 but I would keep a tight stop on it (maybe around $200).
Best,
Linda
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