This is the first in a series of posts about outstanding companies that most of us know very little about or in some cases, have never even heard of. However, all of them have been made some smart investors very happy. A combination of factors were used to select these stocks; including financial stability, dividend payout, earnings growth and price appreciation. However, the selection process was not limited to just these 4 things-in addition, these superstars were chosen for their ability to outperform in both an up or a down market, are low beta, have rock solid financials and all have strong future prospects. So there you have it; the traits that make an underrated superstar on Wall Street. [more]
9.70 +5.96 +159.36% [more]
JA Solar Holdings has lit a fire under the entire solar industry with blow out earnings. The stock rose from $5.61 to $9.56 on Monday, a nearly 80% gain. But I bet most of you have no clue who the Chief Executive Officer of JA Solar is.
Here are 10 things you may or may not know about Baofang Jin:
1. Mr. Baofong Jin was named the CEO of JA Solar (JASO) in January of this year.
2. But he is hardly new to JA Solar, he co-founded the company in 2005.
3. Baofong Jin attended the Hebei Broadcast and Television University, where he earned an Associates Degree in 1996.
4. He is 60 years old.
5. Mr. Jin serves as a vice-chairman of the Chinese People's Political Consultative Conference of Ningjin County. The PCC", is a political advisory body in the People's Republic of China.
6. He was a general manager for an agricultural firm, Ningjin County Agricultural Equipment Company, for 8 years starting in 1984.
7. This is his second stint as CEO, this time around he has only held this position since January of this year.
8. In 2008, he was the 234th richest person in China
9. This is what he looks like. For #9, you will to check the link below because Motley Cap readers can't see photos. http://www.stockmarketdouble.com/2013/05/ceo-of-ja-solar-holdings-jaso.html
10. And finally #10, it was really hard to find out 10 things about Mr. Jin.
After reading the Barron's article on Friday by Tiernan Ray (see link below), the only thing that is clear about the Uni-Pixel story is that nothing is clear or straight forward about Uni-Pixel. BTW-the story was published after the close on Friday.
Just a few thoughts: -Cody Acree, The Williams Financial Group analyst, appears to be, for whatever reason, completely married to Uni-Pixel. -Judging by the comments from investment sites, message boards and forums-investors are having a very difficult time being objective about this stock and are clearly breaking the cardinal rule of "not falling in love with a stock" -By any standards, the current stock price is way over inflated for a company that has no revenue from this new technology, zero, nada, zip. -When ANY STOCK sells off more than 25%, on more than 6x its normal volume on NO NEWS-watch out! Let me repeat, down 25% on more than 6x its normal volume...
there was a rumor floating around on Friday, that Uni-pixel had a private conference call to certain investors that was not open to the general public on Friday-is there any truth to this? -HERE IS THE BIGGEST QUESTION??? Why in the world wouldn't Uni-Pixel come out with some kind of pr statement on why their stock was getting demolished on Friday?
-if you were an objective bystander, would you not be asking "what the hell is going on here? -For those of you who are not up to speed on the Uni-Pixel stock story, see my post from May 1, "WHAT DOES WARREN BUFFETT THINK OF UNI-PIXEL?" http://www.stockmarketdouble.com/2013/05/what-does-warren-buffet-think-of-uni.html -at the very least, long or short, you have to admit Uni-Pixel is one of the most controversial stories to come along in a long time.
Here' the Barron's story. http://blogs.barrons.com/techtraderdaily/2013/05/17/unxl-plunges-26-on-a-day-of-rumors-and-more-rumors/?mod=yahoobarrons By Tiernan Ray Shares of Uni-Pixel (UNXL) today plunged $9.55, or 26%, to $27.19, in what appears to have been a cascade of negative rumors for the maker of touch-sensing mesh technology.
Williams Financial Group‘s Cody Acree, who has a Buy rating on the stock, and a $60 price target, tells me by telephone that he believes the stock action reflected a bunch of speculative bits floating in the ether starting yesterday.
“There were a lot of speculative things today, a lot of which probably got blown out of proportion,” says Acree.
“Some were understandable, some were a factor of a heavily retailed stock that gets a lot of attention on every message board, and with every tweet.”
“Mis-information, and the second derivative of it, tends to move quickly with these shares,” observes Acree.
First was word yesterday that Apple (AAPL) filed a patent application for a new kind of touch sensor panel, as reported by Patently Apple‘s Jack Purcher.
To Acree, the story is being mis-read:
It definitely looks from the headline as if Apple is becoming a direct competitor to Unipixel. If all of a sudden as an investor you have to contend with Apple, that might be a scary ordeal. But once you read the application, it becomes clear it is a patent for a design. It’s an architecture, it’s not a product. A touch sensor is nothing more than a mesh of some type, a conductive material, electrons moving through an electromagnetic field underneath a glass. Apple has designed a layout of its X and Y coordinates, how far apart the lines should be, etc. The intent is to specify advantages for lesser resistance, better power consumption, finer conductivity, and the rest. They are looking to patent that. That has nothing to do with UNXL. If UNXL wanted to court Apple as a customer, they would be given that design by Apple, and that would be what they would have to build. All OEMs do this to one degree or another, they don’t leave it to a component supplier’s designs. They tell them what they want. A lot of people misconstrued that.
Second, a 13G filing dated today said that investor Goldberg Capital Management, which has typically been among the to three or five holders, indicated a decline in the company’s holdings. Only Acree asserts that Goldberg picked up 10,000 shares in the firm’s secondary share offering in April, and given the dilution from the secondary, “their [Goldberg's] percentage position went down.”
Next was a research note from Craig Hallum‘s Anthony Stoss on competitor Atmel (ATML). Acree observes that the gist of the positive note on Atmel, although not really about Unipixel, could be taken as Unipixel being at risk of losing designs to Atmel. But, he argues,
All of what is in that note is true, but it has nothing to do with Unipixel. This is a very nascent market, and both Atmel and Unipixel can grow nicely from zero to having some meaningful revenue in the second half [of this year]. Unipixel has a PC partner to whom they are exclusive for notebooks in 2013. If others want to move to a metal mesh for whatever reason, Atmel is the only other game in town. We’ll see where the relative share shakes out. But some people think this is binary, whereas in reality, it is not.
The PC partner for Unipixel hasn’t been announced, but speculation is that it is Dell (DELL), says Acree. That speculation was reinforced by the company’s fiscal Q1 conference call last night. “Dell said that there were some interesting, intriguing developments in the touch panel market that would allow them to regain some share [in PCs]. That could be Unipixel, or it could could speak to other things.”
Lastly, Acree notes that “late in the day, and we don’t know how much validity there is in this, there was talk of some delay of [Microsoft‘s (MSFT) Windows Blue,” which is the update to Windows 8 that Microsoft formally dubbed Windows 8.1 earlier this week, as reported by CNet‘s Jay Green. Microsoft has vaguely described the time frame for Windows 8.1 as being this summer.
Again, Acree doesn’t see it as being a serious issue for the company:
If there were to be some delays, any PC partners’ parts tied to that launch would move in tandem with that launch. But it wouldn’t have to do with Unipixel’s products or their quality. It wouldn’t surprise me, it’s very common for them to have a delay.
In sum, says Acree, “The Apple thing is a non-issue, the Atmel thing is a non-issue, the Goldberg thing is a non-issue, and there’s nothing functional about a Windows Blue delay to cause a valuation change.”
When I ask Acree if the sharp decline on such rumors means the stock was priced for perfection, as they say, he says it’s somewhat different than that:
When you talk about a stock that is for all intents and purposes pre-revenue, where all they have are partners, designs, and opportunities to hit a pretty big market, if they are able to execute, where their earnings leverage would be pretty large, then what we’re paying for is their ability to execute on that opportunity. You’re definitely working on trigger finger when you don’t have a book value, a history of growth, and dividends. There is no other reason to own this stock other than for an opportunity. If you believe that is at risk, that will shake people’s confidence. It’s about the newness of this company. I don’t think it speaks to the real opportunity, just how fragile the investor confidence is. stockmarketdouble.com
Westell, Boom or Bust?
On May 22, Westell will release their earnings report for the quarter ending March 31. Westell is a micro-cap company of about $120m with more activity going on in the last few months than a prime time soap opera. They are based out of Chicago and are in the telecommunications equipment business.
Westell popped up on one of my screen about 6 weeks ago and frankly, the stock price has done very little since that. It's chart and price history would tell you that it is a quiet little stock with a low beta and has been trading in a range between $1.90 and $2.10 for a couple of months now.
Then I came across a press release from the company from November of last year that really caught my attention. The headline was:
"Transit Wireless to Use Westell eSmartAccess Ethernet Switch in New York City’s Subway System" My first thought was how much is the contract worth? My second thought was that the revenue probably wont start showing up until the first quarter of this year. Living in NYC, I know anything having to do with the subway system and the MTA is a huge undertaking. There are 277 subway stops in New York City and Westell is providing the routers for everyone of them. New York City will finally have WiFi underground, which means everybody will be using their smart phones on the subway. Ahh, nothing like being more connected than we already are. Another thing you should know about the people who run the NYC subway system is that they spend money as if it were going out of style, but they can afford to, because they are a mega-monopoly that can raise their prices at will and they don't hesitate to take full advantage of this. Remarkably, The MTA has increased fare prices in 4/5 years. Is the MTA terribly mismanaged? Do farmers grow corn? I would imagine that this had to be to the benefit of Westell's negotiators. The MTA knows full well going into any negotiation, that if they screw it up, its no big deal because they can pass the cost of their mismanagement along to their customers, who ride the subway everyday. (5.5 million rides per day during the work week and about 3 million a day on both Saturday and Sunday). Mind boggling revenue. At this point, you might be wanting to know more about the company. The basics are the following: their trailing 12 months of revenue is slightly more than $40M. There price/book ratio is a very low .71. In addition they are flush with cash, approximately $115M with no debt and the current stock price is $2.03.
But that is not all, when you dig down a little further, more interesting things come up about this little known company. On April 8, 2013, Brian Cooper, their Chief Financial Officer, Senior Vice President, Treasurer and Secretary gave notice of his decision to resign from his positions in order to pursue other interests.
A week prior, On April 1, they finalized the acquisition of Kentrox Inc. for $30M. Kentrox provides intelligent site management solutions, which includes remote site monitoring, management and control. According to Mr. Cooper, the acquisition is expected to double revenues for Westell from $40M to $80M starting in 2014. In addition the blended gross margins would be over 40%.
On May 7 they announced, The Remote RMM-1421 by Kentrox has recently been tested and approved by Sprint for activation on their network. The Remote RMM-1421 is a monitoring and control device designed to enhance a company’s network management strategy, reduce operational costs, and improve operational efficiency. It is not clear however, when and if Sprint will be actually be utilizing Kentrox's services.
And finally, their have been 8 insider transaction in 2013. All of them were sales, granted 2/8 were by Brian Cooper, which is understandable.
Conclusion: The only one that I can draw is that Westell looks like a good bet going forward. I'm not sure what is going to happen on May 22 (earnings day), but it appears, at the very least, Westell is worth taking a look at. stockmarketdouble.com
Cisco skyrocketed more than 12% after announcing earnings yesterday, trading more than 200M shares.
Out of curiosity, I went back and reviewed what some analysts/prognosticators/experts had to say about Cisco, just one day before the earnings were released. Below are some of the quotes:
"....Cisco will have to work hard to catch up and surpass the head-starts that better-established companies in the space already have" (in reference to cloud computing)
"...we believe that the intense competition in the company's core businesses of routers and switches remains a matter of concern."
"Our proven model does not conclusively show that Cisco will beat earnings estimates this quarter. "
"Caution and challenges continue to be buzzwords surrounding Cisco Systems (CSCO) as it prepares to report its fiscal third-quarter results after the market close on Wednesday."
"Analysts say the No. 1 maker of computer networking gear faces slowing growth for its core routers and switches, due to a poor macroeconomy and technology shifts."
"tech spending remains challenging, as evidenced by the recent disappointing results and outlook issued by such companies as Oracle (ORCL), IBM (IBM) and Juniper Networks (JNPR)."
"Our spot checks suggest demand for Cisco's products remain mixed, which adds some risk for the operating results and outlook to be announced May 15,"
"...at least seven brokers have reduced their revenue forecasts for Cisco(US:CSCO) since the first of the month..."
" Performances slows with age at Cisco Systems"
The above quotes are an example of the shell game that is played on Wall Street. Given the quotes from the experts above, it appears that anybody could be a Wall Street analyst as long as the analysis that is provided goes something like this; "...well it could go up if this happens....or it could go down if this happens"
What is the value in that? Of course, the one who gets hurt by this kind of analysis is the retail investor. Perhaps it would be refreshing to hear some guy say-"...well until they release earnings, I dont really know what is going to happen and all I can do is really guess..."
Be careful who you listen too. [more]
I last posted about this on April 20th (see below) when I made my second purchase of NUGT to bring my average cost to $13.8. Today, May 15, I made my 3rd purchase and added to the position at $9.31. My average cost is now $12.31. The 5 year chart for gold is ugly ugly. Looks like gold is headed toward $1200 (maybe). But I will keep cost averaging on NUGT. At some point gold and the miners will rebound. That's my take on it. I think it is hilarious that the gold bears are saying that gold is essentially a symbolic hedge against a weak dollar or a falling market. (are you telling us its worthless?) So smart these guys are-except there is thousands of years of historical data that says they are wrong. I am betting that thousands of years of history will prove to be right.
April 20, 2013 post:
I was just thinking about this post below from a week ago and wanted to add an update; on Friday, I bought the same dollar amount as my first purchase on April 13. My average cost per share now is $13.81. The current price is $11.05. I am steadfast in my belief that cost averaging down on NUGT will make you a substantial amount of money, when this thing turns upward. $40 price target.
April 13 post:
Some thoughts from today:
If you want to make huge returns in the market, you need to possess a few things. Two of the those are the willingness to gamble and the ability to measure the risk/reward ratio.
Let us look at NUGT-3x ETF Bull for Gold Miners.
Down about 18% today, 10% yesterday and 5% the day before that.
67% year to date
and 75% year over year.
A little oversold? Definitely-But lets face it, it's also a little scary to think about buying shares of NUGT and risking your precious, hard earned dollars.
These shares could easily go down a little further.
But at the same time, this situation has opportunity written all over it. When these 3x ETFSs reverse, they come roaring back in a big way and can double in a couple of weeks. The nearest resistance above its current price of $16.59 (after hours) is $40.
This opportunity exists because of the fear of loss that is always omnipresent on Wall Street. You should embrace this fear and capitalize on it. In a case like this-it is good to remember that you would not be buying an individual company with iffy fundamentals-you would be buying an entire industry (gold mining) that is in relatively good shape financially.
This is a good time to mention that, as a rule, you shouldn't put more than 5% of your portfolio into any one position and that it's a damn good idea to scale in.
I used to say to myself-"screw that 5% rule". But, I have learned 2 things from following that rule-One is that it allows me to play around with at least 20 different investment ideas at one time and the other is that I'm not staying up at night worrying about any one particular stock that is going south on me. Trading should be fun, not nerve wracking. [more]
NOKIA STOCK SURGES HIGHER ON HUGE VOLUME Nokia jumped surged nearly 5% in price today, trading nearly 60,000,000 shares. Tomorrow, Nokia will be unveiling their highly anticipated mobile phone with camera technology that is supposed to set it apart from its competitors. Below is a synopsis of Nokia's evolution from slashgear.
All eyes are on Nokia this week, as the company prepares for another new Windows Phone, expected to be the Lumia 925, and one with even more of a photographic bent at that. The Finnish firm has made no bones over the past months that digital imagery is one of the key differentiators it sees as distinguishing it from the rest of the mobile market, both from other Windows Phone manufacturers and the smartphone segment at large, and its London launch is expected to be the most camera-centric of the year. Speculation that we could see the “EOS” or the “Catwalk” is rife.
Nokia stoked that camera speculation itself with its TV commercial yesterday; since then, the first shot of the Lumia 925 has leaked. You could be forgiven for seeing Nokia almost as a mobile photography company first these days, given imaging tends to be its top-line features for every new smartphone.
Nokia has been pushing camera tech for years now, but arguably made its name as an innovator with the 808 PureView of 2012. It may have been chunky, and used Symbian – which Nokia had already confirmed was in its death-throes – but it also tore up the playbook for mobile photography, approaching elements like lossless zooming and balancing picture size with levels of noise in previously-unseen ways.
The 808 is best remembered for its 41-megapixel sensor, a huge CMOS positively overspilling with pixels. At the time, Nokia likened it to putting out more buckets to catch more rainfall: the 808 was designed not to produce ridiculously high resolution stills, but more average shots (the default was 5-megapixels) that combined data from clusters of pixels to smooth out glitches and aberrations, and make for more accurate colors and brightness.
In the process, it also enabled lossless digital zooming: zoom without the moving lenses of an optical system. By cropping sections of the image – still at the 5-megapixel resolution – the 808 could effectively zoom into the frame but without the quality loss associated with every other digital zoom.
So far, though, we’re yet to see that original PureView approach replicated on a Windows Phone. The Lumia 920 and 928 both bear PureView branding, for instance, but their emphasis has been on the way more typical megapixel sensors can be supported with optical image stabilization to boost picture quality. Instead of the pixel-clusters of the 808, both of the high-end Windows Phones try to craft better images by holding their sensors steady.
That’s not to say they can’t be “true” PureView just because they lack a few dozen megapixels, however. The massive sensor was only half of the 808 story: equally important was Nokia’s custom Carl Zeiss optics, which were essential for piping the right light in the right way to the oversized CMOS. Nokia even took us to meet with the Zeiss team for a behind-the-scenes look at what optical magic was used, a complex, five-lens assembly with a range of aspheric surfaces that explained some of the 808′s thickness, just as the broad sensor explained its width.
Lenses may not be as immediately headline-grabbing as great lashings of megapixels, but they’re the unsung heroes that Nokia has been busily working away on. Zeiss and Nokia renewed their partnership back in early 2012, and came up with what’s described as “PureView Phase 2″: a groundbreaking optical image stabilization lens which can be paired with a more traditional-resolution sensor.
Discussed in this white paper [pdf link] around the time of the Lumia 920, the second-gen system actually has a more light-friendly lens than the 808 manages: f/2.0 versus the original PureView’s f/2.4, with the same 26mm wide optics. That works with an image stabilization system that rather than move just a single lens element, actually shifts the whole optical assembly up to 500 times per second.
Hardware is only half of any story, of course, and Nokia will undoubtedly have software news to share about the Lumia 925 as well. As we’ve seen from the company’s own work to-date on Camera Lenses, and on rivals’ photography systems like Zoe on the HTC One and the native GIF-maker on the Galaxy S 4, ways of not only shooting but of manipulating stills are big business in today’s handsets.
They all demand good quality to begin with, though, and interestingly all approach that in different ways: a small number of gigantic UltraPixels from HTC, 13-megapixels-worth of smaller pixels from Samsung, and whatever PureView combination Nokia decides to bless the Lumia 925 with.
Nokia isn’t a camera company, but it’s camera technology that it’s counting on to set it apart in the market. We’ll find out how the Lumia 925 fits into that strategy tomorrow, when Nokia unveils the phone officially at its London, UK event on May 14th.
credit: written for Slashgear.com by Chris Davies [more]
A study from the University of Gothenberg found that people with low income and low-educated people spend the most time on Facebook. And within this group, those who spent the most time on the site were less happy and less content with their lives.
Up to 85 percent of Facebook users surveyed said they logged into the social networking site on a daily basis.
And 26 percent of them felt 'uneasy' if they didn't log in regularly.
Women spend an average of 81 minutes per day on Facebook.
Whereas men spend 64 minutes per day on the site. http://www.stockmarketdouble.com/ [more]
Williams Financial Group is a small independent broker-dealer whose business model is akin to a franchise operation. Williams Financial Group is headquartered in Dallas, Texas and reportedly has over 260 registered representatives across the state operating in one or two person offices. Its growth in recent years can largely be attributed to layoffs at the major wire houses due to the most recent financial market meltdown. Most of the Williams Financial Group registered representatives' gross production of revenues is less than $300,000 per year. Its branch offices are largely comprised of small producers earning commissions at higher pay out rates than the major full-service brokerage firms, a recipe for disaster when it comes to protecting investors' rights. [more]
The regulator of U.S. power markets appears likely to pursue manipulation charges against JPMorgan Chase & Co , analysts said, after a New York Times report on the agency's document that seemed to lay out its case. [more]
I've never seen anything like the Unipixel phenomenon, not even in the dot.bomb era. [more]