Monthly Archives: January 2016

GPRO

blog gpro weekly 1-31-2016

From a high of 98.47 in October of 2014 to a low last week of 9.90. You would think this downward slide would be over by now.

But wait. Although GPRO has a growth rate in the 35 to 70 percent area on a quarterly basis. They have not been able to convert that into a reasonable return on their sales.

Last quarter they had 431 million in sales and a 25 cent in earnings. This year earnings are projected to be 84 cents with 2016 coming in at 65 cents???? Growth in sales doesn’t seem to help them any.

With those numbers I’m a buyer in the 4 to 6 dollar area although GPRO could bounce right here after trading sideways for a week unable to set a new low.

With shorts holding 44 % of the stock a little pop up could cause a short covering rally that run this up to 20 bucks.

Resistance areas are 14.25 and 20 bucks.

Dave C.

LCI

Lannett offers preliminary Q2 results below consensus, sees FY16 revenues below consensus  (34.89 +0.42)
1/26/2016, 4:20:22 PM ET

The co expects Q2 adj-EPS of $0.93-0.95 vs $0.99 Capital IQ Consensus Estimate; revs ~$127 mln vs $141.62 mln Capital IQ Consensus Estimate

  • Co sees FY16 revs of $585-595 mln vs $609.29 mln Capital IQ Consensus Estimate
  • Additional FY16 guidance included: Adjusted gross margin as a percentage of net sales of approximately 62% to 63%; Adjusted R&D expense in the range of $49 million to $51 million; Adjusted SG&A expense ranging from $59 million to $61 million; Adjusted interest expense in the range of $50 million to $53 million; The adjusted effective tax rate for the full year in the range of 34% to 35%; and Capital expenditures in fiscal 2016 in the range of $35 million to $45 million.

Courtesy of Briefing.com

In the after market yesterday LCI guided down.

Unfortunately I was already in it and sold my position at the open at 32.00 with a 1.80 loss.

I reentered again at 28.97. P/E at that price is 7.25.

Targets are 31.75 and then 33.50

Dave C.