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sciencebzzt (94.78)

BluePhoenix Solutions & LKQ Corp - Wow Pointz

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June 20, 2008 – Comments (2) | RELATED TICKERS: BPHX , ALXA , LKQX

About 10 days ago I blogged about Alexza Pharmaceuticals failing to meet endpoints on their Phase 2 trials for one of their big drugs and dropping down to an all-time low.  I said it was no big deal, just a bump in the road plus a skittish market, meaning a great buy oppourtunity.  I said buy it up.  Yesterday, they popped back up about 10%, and I think they'll be right back where they were before the news soon, and they'll continue to go up as they push those drugs to market.

Thats old news though, the new news is BluePhoenix (BPHX), the neat little tech/IT solutions company with the bright future that just crapped out yesterday.  The reason?  Twofold: An analyst downgrade in the morning (the big drop), then later in the day, the company released adjusted earnings well below the street consensus for Q2, and hinted that Q3 would be 'similar'.  Those two combined for a double whammy 40% drop in the stock price.  As far as I'm concerned, they were already underpriced, so this is an amazing oppourtunity.   Buy.

Also, another stock that got downgraded in the same newsletter as BPHX is LKQX (LKQ Corp), which is a maker of aftermarket auto parts.  Auto parts an salvage happens to be my primary business, and LKQX is one of my favorite companies.  I do business with them, literally, on a daily basis.  I know for a fact that they're still growing.  Yesterday, the 2.4 billion $ company dropped almost 12%.  Thats pretty big, but they will rebound, probably not as quickly as BPHX, but they will, and they'll keep going up. This is another great entry point for another great stock.  BUY

 

2 Comments – Post Your Own

#1) On June 20, 2008 at 2:08 PM, madcowmonkey (< 20) wrote:

Nice post. I suggested 2-4 business days before the pick/buy on BPHX. From what I noticed on their update, they were also feeling the affects of the failing/down dollar. I guess the Shekel is kicking its tail like everything else.

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#2) On June 20, 2008 at 6:21 PM, sciencebzzt (94.78) wrote:

thanks madcowmonkey

and you're definitely right about waiting a few days before buying, I really should have included that in my post.  I also should have included some info about why BPHX missed guidance.

Heres a good article about the weak dollar and why BPHX dropped.  You're right about that too, apparently it has a much stronger effect than I thought (30% of its workers are in Israel, while 10% of its revenue comes from there). Interesting.

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