Long-time readers should note some significant changes in how I communicate in the public domain. The primary purpose of this forum is now to attract new contacts with professional industry expertise to share research and receive feedback (confirmation / refutation) regarding my investment theses.
Accordingly, this document should not be construed as an endorsement or recommendation of the companies or securities discussed herein. I am not an investment advisor and this is not an investment thesis. It is merely one part of the story, which I present for debate in hopes of determining all risks and upside potential. The disclosure at the end of this piece is critical to understanding the content of this document. Further, I frequently trade my positions and may buy, sell, or short the securities mentioned herein at any time, regardless of the facts or perceived implications of this article.
Here’s a stream of quick FYIs…
- QADA had a strong end to their fiscal year. Though I don’t “cover” them anymore, it remains a great company and an equally good stock. I picked this one at $11 a few years ago and it’s now $46 (plus, it has been paying out dividends). This is always a good stock to consider buying on dips.
- I’ll be waiting for the right moment on GAIA. I think that will be within 0-72 hours after they price their planned stock offering (see Wednesday night’s post for more on that). UPDATE: The deal priced this morning at $15. Solid and quick. I like it.
I also just realized that GAIA is not in the Russell 2000, but will almost assuredly be added when Russell does its 2018 reconstitution (on June 22). That will force Russell ETFs to purchase about 1 million shares. It will also put GAIA firmly on the radar screen of any fund that competes / compares against the Russell 2000.UPDATE #2: GAIA finished up for the day (while the market got absolutely crushed). Those who have the WordPress app or get notified of my comments know that I chimed in around noon and said, “I added to my position on the news and the stock is acting nicely.” That was good for a 2% profit by 4PM (while the market melted down).
Just another example of how to make money by knowing the difference between a good offering and a bad one… the power of buying low!
- I’m also waiting for the right moment on FB. This mess is a mess, but I don’t see it as a major turning point. We’ll see. In the meantime, “older” people (Gen X and older) are losing sight of the fact that Instagram is absolutely killing it. IMHO, it’s taking its next leap forward along multiple dimensions.Most notably, the ads are the most relevant and enticing I have ever encountered from any media source. I actually like or even appreciate a third of them (and don’t mind the rest).
- I had a call with Smith Micro (SMSI) yesterday and was happy with what I heard. I’m going through my notes so I can provide a write-up. In the meantime, you should know that SMSI will be visiting New York during the first week of April for an investor conference.
Separately, they will be meeting with investors on at least one other day. This sounds like their first real push to get their story out. I view that as a positive for how the Sprint relationship is progressing. Stay tuned for my call write-up.
- AEHR is scheduled to report earnings on April 3. I anticipate an upbeat call. I expect the backlog to be seasonally lower, but revenue, guidance, and management’s tone to all be impressive. From what I’ve gathered, management has been actively on the road with customers, which should be a positive sign of things to come.In related news, AAPL will enter trial production of its new iPhone(s) in Q2 (which is early). This is reportedly to avoid the 3D sensor yield issue they encountered last year. If all goes well, they could start selling the new phones early in Q3. Of course, all of this new production poses an interesting opportunity for AEHR (as well as a test of how valuable they’re viewed by AAPL and 3D sensor makers like FNSR and LITE.
I’ve contacted the company for comment, but they may save their response for the April 3rd call.
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Disclosures / Disclaimers: I am long AEHR, FB, GAIA, RDCM, and SMSI. However, this is not a solicitation to buy, sell, or otherwise transact any stock or its derivatives. Nor should it be construed as an endorsement of any particular investment or opinion of the stock’s current or future price. To be clear, I do not encourage or recommend for anyone to follow my lead on this or any other stocks, since I may enter, exit, or reverse a position at any time without notice, regardless of the facts or perceived implications of this article.
I am not a financial advisor. Nor am I providing any recommendations, price targets, or opinions about valuation regarding the companies discussed herein. Any disclosures regarding my holdings are true as of the time this article is written, but subject change without notice. I frequently trade my positions, often on an intraday basis. Thus, it is possible that I might be buying and/or selling the securities mentioned herein and/or its derivative at any time, regardless of (and possibly contrary to) the content of this article.
I undertake no responsibility to update my disclosures and they may therefore be inaccurate thereafter. Likewise, any opinions are as of the date of publication, and are subject to change without notice and may not be updated. I believe that the sources of information I use are accurate but there can be no assurance that they are. All investments carry the risk of loss and the securities mentioned herein may entail a high level of risk. Investors considering an investment should perform their own research and consult with a qualified investment professional.
I wrote this article myself, and it expresses my own opinions. I am receiving no compensation for it, nor do I have a business relationship with any company whose stock is mentioned in this article. The information in this article is for informational purposes only and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
The primary purpose of this blog/forum is to attract new contacts with professional industry expertise to share research and receive feedback (confirmation / refutation) regarding my investment theses.