This Week’s 3 Big Movers By PresenterMedia.com
3 Stocks Likely to Make Huge Moves
Jan 29, 2015
A confluence of factors could mean serious volatility for these three stocks.
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Capstone Turbine Corporation
Why are Investors so Negative?
1. As a company with an emerging technology, Capstone has yet to turn a profit.
2. A recent secondary offering revealed that demand for the company’s turbines—which can run on several different types of fuel—were not as high as previously thought.
WALL STREET EXPECTATIONS
1. Currently, 16% of Capstone shares are being shorted.
2. Analysts expect the company to report revenue of $39.5 million.
3. Capstone is expected to break even in terms of profit.
1. Capstone desperately needs to prove it can turn a profit and bring in positive free cash flow.
2. Listen in for details about the company’s natural gas truck engines—which is in its infancy, but could be a big part of the company’s revenue in a few years.
WHAT YOU SHOULD REALLY KEEP AN EYE ON
What to Watch on Friday
Finisar Corporation
Why are Investors so Negative?
1. Finisar has the largest market share in optical subsystem components used in the communications field—as a result, shares have risen 80% over the past year.
2. Many believe that the company’s growth was fueled by a cyclical boom which will soon be dying down.
3. Financial results from one of Finisar’s largest customers have fallen lately—indicating a possible slowdown.
WALL STREET EXPECTATIONS
1. Roughly 17% of Finisar’s shares are being shorted.
2. Analysts expect the company to report revenue of $304 million.
3. Earnings per share are expected to clock in at $0.38.
1. Listen closely to management comments about trends within the communication’s industry.
2. Although believing the growth is simply cyclical, it’s hard to deny to strong trend towards devices that help move ever-more data in our digital world.
WHAT YOU SHOULD REALLY KEEP AN EYE ON
What to Watch on Friday
Lululemon Athletica
Why are Investors so Negative?
1. Lululemon—after enjoying huge success after going public—has had a rough two years:• The loss of its former CEO,
Christine Day. • Costly recalls on popular luon
pants• Financial performance well below
expectations.2. Management failed to empress
analysts at a recent investor presentation.
WALL STREET EXPECTATIONS
1. One-third of Lululemon’s shares are currently shorted.
2. Analysts expect the company to report revenue of $381 million.
3. Earnings per share are expected to come in at $0.32.
1. A stabilization of same-store sales would go a long way in convincing folks that Lululemon customers have forgiven the company for its missteps. Positive figures would be a huge step.
2. Management guidance will also offer a look into how well the company is recovering with customers.
WHAT YOU SHOULD REALLY KEEP AN EYE ON
What to Watch on Friday
One Volatile Stock our Management Believes In
Every year, our Chief Investment Officer picks out one stock as his “Top Stock”. This year’s pick is actually down 33%--which means now might be the time to buy.
Find out which company it is by getting a copy of the Motley Fools special free report:
The Motley Fool’s Top Stock for 2014
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