Stock Talk – January, 2017

Stock Talk

Robert B Moore

Robert B Moore

Acuity took a huge hit today, down 33 or so. What gives? Your advocacy of it has been so strong, and a few weeks ago I took a position by way of selling 210 put options for May rather than purchasing the stock at such a rich price of 240 or so. Should I exit the position or look for a bounce?

Linda McDonough

Linda McDonough

Robert,
They missed earnings for the November quarter. I am still reviewing the transcript and the 10-Q but the sell off looks overdone to me. Many of the building and industrial stocks have been under pressure and I attribute the extreme weakness to the softness in the group. I’ll have a more complete update tomorrow but I’d hold on for now. The issue would be if the buyer of those put options chooses to exercise them before expiration.
Best,
Linda

Patrick Cerra

Patrick Cerra

Hi Linda,

What do you think of IDTI prior to earnings as many chip stocks have been surprising to the up side. Would you add prior to earnings or take a “wait and see” stance? Skyworks took off. Do you think it’s too late to take a look at SWKS?

-Pat

Linda McDonough

Linda McDonough

Hi Pat,

I think IDTI should deliver this quarter, although it is always tricky to predict with tech stocks. The company guided down for this quarter due to the timing of a big customer order so estimates are conservative. Digging through the numbers it looks like revenue from ZMDI, the auto chip company acquired in December 2015, is picking up steam. This is the part of their business I am most excited about.

I don’t know SKWS very well. On the surface it is hard to justify much higher prices after this jump but I will certainly take a look. Thank you for the suggestion.

Best,
Linda

Patrick Cerra

Patrick Cerra

Thanks Linda,

Much appreciated!

Peace54

Peace54

Thank you for your feedback. It was educational and helpful. I’m looking forward to working with you.I welcome you too. I got in at .50 (HEES)

Linda McDonough

Linda McDonough

You’re more than welcome. Please post any questions here and I’ll be glad to answer them.
Best,
Linda

Peace54

Peace54

Hi Linda,

Asjad Shamim

Asjad Shamim

Hi Linda,
Sorry as this could be a dump question. I just joined the Profit Catalyst Alert today so still trying to navigate website to see how it works. I did read the Member Guide (very straight forward).
The question I have is, do I wait for an e-mail from you to act upon for buying a stock form “Profit Catalyst Alert” program? Also I am using Trade King for trades. Is that okay to use with your trade alerts?
Please advise.

AJ

Linda McDonough

Linda McDonough

Hi Asjad,
You should be receiving a text alert regarding all trade recommendations, for stocks and options.

The prices of options are quite volatile so the timing is important. If you see an option trade I recommended more than one day ago, post a note here and I will let you know if I still think it’s a good value.

The stock trades are less time sensitive. I am working on including a “buy up to price” for each name but I do include my target for each stock. I typically will only recommend a stock if I can justify 30% upside, so one thing you could do is trim the target by 30% and use that as a loose guide for a limit price.

I usually post at least two option and two stock trades per month. There is an update every Monday on the portfolio and alerts if there is a major fundamental event that is moving a stock.

I am always available here to answer any questions that you have about any of the stocks or trades. I do not know Trade King well but all of the stocks and options that I work with are traded on the major exchanges so you should have access to them.

Welcome again and thank you for the questions.

Best,
Linda

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