Daily Report
This report is posted right here every trading day one hour before "the close".
We run all of the searches and select our most bullish and bearish candidate of
the day. This report includes live updates for stocks in our watch list that
are on the move.
| Issue
08/23/2010 |
Recent Reports
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Past Reports
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| Bullish |
INFA
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| Stock |
Informatica Corporation provides enterprise data integration and data quality software and services in the United States and internationally. Its software handles various enterprise-wide data integration initiatives, including data warehousing, data migration, data consolidation, data synchronization, and data quality, as well as the establishment of data hubs, data services, cross-enterprise data exchange, and integration competency centers.
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| Set-up
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Looks for stocks that are in a strong uptrend and have paused for a few days. Yesterday the stock resumed the rally and made a 10-Day high. Today the stock is continuing higher.
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Chart
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This stock traded in a tight range between $23 and $28 for 7 months. In July, it broke out above $28 on heavy volume and it has continued to rally. It did not pull back during the market decline last week and buyers are snapping up shares. It looks like it has more upside.
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| Outlook
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In July, the company said that total revenues for the second quarter of 2010 were $155.7 million, an increase of 33 percent from $117.3 million recorded in the second quarter of 2009. License revenues were $70.0 million, an increase of 44 percent from $48.7 million recorded in the second quarter of 2009.
GAAP net income for the second quarter of 2010 was $17.4 million or $0.17 per diluted share, up over 30 percent from $12.0 million or $0.13 per diluted share in the second quarter of 2009.
The stock trades at a forward P/E of 26.
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| Tactic
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"Our record Q2 results underscore the increasingly strategic role of Informatica for our customers and partners," said Sohaib Abbasi, chairman and CEO, Informatica. "Despite the uneven economic recovery, Informatica is increasingly benefiting from our strongest-ever product portfolio and the team's exceptional operational discipline with record results in each of the major geographic regions."
Total second quarter revenues grew to a record $155.7 million, second quarter license revenues grew to a record $70.0 million; up 44 percent year-over-year. Second quarter GAAP earnings per diluted share grew to a record $0.17 and the company signed a record 79 deals over $300,000 in the second quarter.
Strong performance and good guidance have the stock breaking out to new highs. I like the breakout above $28 and the continuation on strong volume. This stock did not pullback last week with the market and that tells me it has room to run. I like buying the Oct $30 calls if the SPY is above $108.
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| Stop
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24
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| Earnings
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10/22
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| Bearish |
ISRG
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| Stock |
Intuitive Surgical, Inc., together with its subsidiaries, engages in the design, manufacture, and marketing of da Vinci surgical systems for use in urologic, gynecologic, cardiothoracic, general, and head and neck surgeries.
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| Set-up
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Stock opened near its high and is trading near its low on an expanded daily range. Stock has been in an intermediate term down trend and is showing weakness.
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Chart
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This stock ran from $220 in September to $380 in April. Since then, it has been in a steady decline. It has broken the 10-month up trend line and it has broken major horizontal support at $300. The volume is heavy and it is selling off today when the market is up. This stock looks technically weak.
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| Outlook
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A month ago, the company reported second quarter of 2010 revenue of $351 million, up from $261 million for the second quarter of 2009. Second quarter of 2010 revenue growth was driven by continued robotic procedure adoption and higher da Vinci Surgical System sales.
Second quarter of 2010 instruments and accessories revenue increased to $128 million from $96 million in the second quarter of 2009 and second quarter of 2010 systems revenue was $168 million, compared to $124 million during the second quarter of 2009.
Second quarter of 2010 net income was $89 million, or $2.19 per diluted share, compared with $62 million, or $1.62 per diluted share for the second quarter of 2009.
The stock trades at a forward P/E of 27.
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| Tactic
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The earnings were great, but the sale of one machine can have a big impact on this company's earnings.
When I look at the chart, I smell a rat. The stock continues to decline and it broke key support last Friday at $300 on heavy volume. In a quiet market today, the stock is down and it is making a new 10-month low.
Perhaps traders believe that sales will go down as hospitals trim expenses ahead of Obama-care. I can't justify the move, but the selling pressure is strong. There might be some insider activity on this one. Buy the Sept $270 outs and use a stop of $300 on the stock. This is purely a momentum play. If it finds support - get out.
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| Stop
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300
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| Earnings
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10/21
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