Breaking up is hard to do. The longer one holds a stock, the stronger the emotional attachment can become. A cold, Vulcan-like look is required at incoming information to ensure that logic trumps emotion. Recent conference calls have undone an investing thesis I held in one stock, while redoubling my faith in another.
It's not you; it's me
A stock’s initial trend after earnings does not mean that it is either a buy or a sell. Stocks trade illogically after earnings all the time, and in this piece I am looking at three stocks to “sell” regardless of the post-earnings trend on Wednesday.
Still too Many Questions and Not Enough Guidance
Disruptive innovation is an important thing. It is probably the most important aspect of the technology sector. A company like Apple, which has been at the forefront of disruptive innovation for a decade, shows how this sort of technological advancement can help a company grow and excel in this sector.
A lot of these big name tech stocks have huge valuations. However, there are a bunch of smaller tech companies more »
The common reason for distressed earnings is, “higher labor costs.” Yes, humans have an upper hand in discretionary tasks, but recurring industrial tasks like welding, etching and cutting can be automated. But precision holds the key, and robotic arms are no good if they are not equipped with proper tools. As technology advances and designs get more sophisticated, fiber optic lasers are not only cost effective but also save time more »
One of the simplest ways to get an overview of a company's operations is through a SWOT analysis. Here, the main strengths, weaknesses, opportunities, and threats of the company are laid out for all to see. Having dropped 15% on negativity surrounding a downgrade from Stifel Nicolaus and a slight earnings miss, fiber laser producer IPG Photonics (NASDAQ: IPGP) has seen happier days. However, with guidance largely more »
There is something gratifying about the industrials. Sectors like tech, financials, health, a lot of them are just too hard for my thick skull to be able to tell if they have a competitive advantage. Great money can be made in these sectors, but I’m generally not able to identify those opportunities, and instead I get exposure via indexing.
Industrials, however, make things that are tangible, useful, and--important for more »
Earnings and earning-related news is the number one catalyst for stock movement. A strong quarter can dictate the direction of a stock for the following three months as can a bad quarter; in the past I have written in detail about such subjects, a domino effect following a strong or bad quarter. Therefore, I am looking and assessing four of the top movers following earnings on Friday.
Modest Growth Finally more »
Last Friday shares of photonics-based solutions company Coherent (NASDAQ: COHR) traded higher by almost 11% after reporting earnings. As a result, numerous stocks that manufacture and develop similar products also traded higher. However, the question is whether or not this industry is growing and if it’s time to buy.
Coherent Earnings and Valuation
Coherent’s earnings weren’t anything special. The company’s revenue was actually lower 2.5 more »
As an investor that subscribes to the Peter Lynch philosophy of investing in straightforward, easy to understand businesses, a fiber laser company like IPG Photonics doesn’t leap to mind. However, you don’t need a PhD in Laser Engineering to understand that IPG Photonics (NASDAQ: IPGP) is a disruptive brand. In simple terms, a fiber laser is a precisely focused, intense light beam (photons), approximately the diameter of a more »
With the recent market rally, finding undervalued growth stocks has become more difficult. Well it’s difficult, but not impossible. Industries have moved onto robotic welding, etching and cutting machines for precision. Gas lasers which were earlier used on a large scale for these operations are being rapidly replaced by fiber laser technology. This brings the pioneer of the technology IPG Photonics (NASDAQ: IPGP) into the limelight.
IPG Photonics which more »
The increased usage of laser technology within the consumer, industrial, and medical industries has boded well for IPG Photonics (NASDAQ: IPGP). IPG is known for manufacturing the groundbreaking fiber-based laser.
Lasers have progressed substantially since they were first operated by Theodore H. Maiman in 1960. Today, traditional laser technologies are based on CO2 and yttrium aluminum garnet (YAG), which combine to create the high-powered beam. The increased usage of laser more »
Acorn Energy (NASDAQ: ACFN), is actually a publicly traded venture capital company. They buy small technology start-up companies that have technologies and products that are close to fruition, finance them, and nurse them along until they reach commercial success.
They’ve done this before; selling one of their subsidiary companies through an IPO in 2007, and selling another company in 2010 for $101.0 million. They had invested only $18 more »
Raise your hand if you want a crash course over the income statement from Warren Buffett! Here’s a handful of tools so simple a caveman can do it. Using these tools, Warren searches the universe for companies with a durable competitive advantage. Finding those companies is key for building wealth.
Some time ago, I read “Warren Buffett and the Interpretation of Financial Statements” by Mary Buffett & David Clark. Warren more »
IPG Photonics (NASDAQ: IPGP), a developer and manufacturer of a broad line of high-performance fiber lasers, fiber amplifiers, and diode lasers, has had a very diverse experience over its past five-year operating history.
After 20 years of perfecting its core fiber laser product line – investing heavily to reduce the technology’s cost of ownership and growing its wide base of blue chip customers – the corporation experienced a dramatic revenue and more »
RPX CORP (NASDAQ: RPXC)
% Change of Institutional Ownership vs. Prior Qtr = +48.13%
Rational Patent, which I previously wrote about here, is an intriguing investment opportunity. Considering that the market median for percent change in institutional ownership vs. prior quarter is only +.47%, the +48.13% change for RPXC is significant. Because RPXC was already fairly heavily owned by intuitions (45% institutional ownership) this boost is legitimate. Although RPXC’s more »
What do you get when you combine high profit margins, disruptive innovation, YoY revenue and earnings growth, and a small cap valuation (almost under $2 Billion)? The answer is a potential multibagger.
All these qualities are displayed by a company called IPG Photonics (NASDAQ: IPGP) . IPG Photonics is the leading maker of fiber lasers
A Fiber Laser is in layman terms a laser which is made to travel more »
During February our interests turn to the matter of love. Here are five stocks that could set the pulses racing of companies looking to expand.
Money out to buy a reputation
It was hired by NASA in 1986 to determine the causes of the Space Shuttle Challenger disaster and through the years Exponent, Inc. (NASDAQ: EXPO) has featured in other prominent cases, and continues to be one of the brightest more »