Back in October, we stated that November is seasonally a strong quarter for small caps. Near the end of October, we stated that we just could not wait till the small cap earning season to start. Well, we aren't disappointed, so far. Maybe it seems that all we had to do is to come back from a 8 month vacation and trade from November till February. Now that would just be too easy plus we could have missed all the DJIM action from late August..just go to the Journal Archive. The truth is, without the hard grind of the summer, without going through the emotional roller coaster with the market from the first trading day of the year, none of us would stay as focused, or sharp when the time mattered the most. Well, here we are now. We have had literally a stream of awesome small cap action last few days and we are trying our best to make the most out of it. It means all out for us. Folks, if you hadn't committed much time, energy, capital or effort into the market last few days, we'd say you are gonna be sorry a few months down the road. Here are some plays we really like that showed up last little while...
ATNI, this is definitely not a flashy stock like some of the other heavy hitters. It has very good earnings and it moves in stealth mode. Before you know it, this thing can move 20% without making any kind of headline. It broke out on Friday and we are keeping a close eye on this one. We added back. Friday looked like the day it would break all those candle wicks on the daily. http://djmarkets.squarespace.com/journal/2006/11/1/atni-atlantic-tele-network.html
GMKT, this stock had a very powerful move on its earning day and it smelled lots of institutions stepping in to bid it up. A very sexy business and a dominant player in its area and with the holiday coming up, we think this one is gonna be in play for a while.
DLB, wow what a report this one had. Ok, this isn't exactly a small cap but man you gotta give those guys a thumb up on their execution. It took out multi year high, literally in one day of trading. Now it may not give you another 33% gain day anymore but we bet it caught lots of people's attention on Friday.
Reports Q4 (Sep) earnings of $0.22 per share, $0.11 better than the Reuters Estimates consensus of $0.11; revenues rose 29.4% year/year to $102.1 mln vs the $83.8 mln consensus. Co issues upside guidance for FY07, sees EPS of $0.83-0.92 vs. $0.75 consensus; sees FY07 revs of $420-450 mln vs. $405.67 mln consensus.
MEK, it made it to IBD #5. How will trade from now on? We think it could trade with the group but with a better beta action. Other plays we also consider in the same genre include BTJ ALY FTK.
TRT, ah ha! This one is not an unfamiliar name, far from it. The latest quarter simply confirms the status of the stock, it's not going to be a micro cap anymore. Bring it on Zeff boy!. Nothing new to say, just scroll down our pages or go to the archives to get your TRT fill.
EDU, didn't we say this one could make some easy money? Lol Ok, nothing is easy in this business. What this stock did the last few days, is simply giving back to all the believers and followers of DJIM site. Same as TRT, you can find your fill of EDU write ups as it seemingly has been with us since day one.....3 rides now!..Recycle, recycle we say. If EDU doesn't cut it one day....MR has picked up the slack and vice versa. Late this week MR hit a new high 20.57. DJIM's Super Ninja's are sure to provide more excitement.
FSYS, this play is new and we think it can get some legs out of its report. We put an eye out on it early Friday morning in MC, its action perked up and we entered.Reported Q3 EPS of $0.22 vs -$0.63 in 3Q05; (est.$0.13c), revs rose 13% YoY to $55.4 mln vs.44.1 mln est. Co' raised 2006 rev guidance to at least $210 mln, up from previous guidance of $200 mln. This alternate fuel segment needs some new trading blood, maybe Fuel Systems Solutions will be it.
AAON, we introduced this earning gem Wednesday morning. Not only did it take out the $25 we spoke of, it took on $26 Friday. Definitely, a A-Team member!
GLDN, we also introduced back some Russian blood with this Telecom/Internet provider. Volume has really picked over October and into early November with its earning release. 35% revenue growth, 40% net income YOY, 16% revenue, 7% net sequential growth.
RIMM, yep...we raised the RIMM flag as it became the 11th 25+% move in 12 weeks of DJIM. The action Thursday left it with a little toppy action. Every other day they seem to have a need to strike a blow into RIMM, Friday it was MOT's deal with Good Tech. This has been going on endlessly and RIMM just keeps making new highs. Nothing is wrong with RIMM for those wanting to play it out further, but we feel there are better chances of a finding another 25% move elsewhere...faster. We'll still keep a close eye on it as it's in the Constitution of Canada to do so;)
EFUT, is one we are trading as the Yahoo's are all over it. Definitely not for those that plan to have many bathroom breaks during the day.
It was just on Halloween that we took a cautious stance as many of the DJIM stocks felt toppy, by the close of Friday November 3rd we started to use up the cash with 6 or 7 buys. The names are changing, growing fast and furious during the past week. Buy the strength and don't sit on the UCTT's that are clearly lagging the uptrend. Honestly, what are you waiting for? You also have plenty of oil/energy names to rotate in and out of depending on the oil picture. If you have your DJIM list close by and have created a watchlist/buy list of these stocks, last week was a very fruitful one. For more DJIM names read the commentary of the past week plus glance over the charts for ideas to trade.
Jon/ Demi