These 3 tech tickers beat the market, July 7 – June 11
Coupons.com rose 2.7 on
Monday followed by a 4.7%
Tuesday surge, and held firm
for the rest of the week.
The big moves:
• The digital rebates maven’s two large jumps came without any
significant news on the company or the stock.
• In fact, analyst firm Goldman Sachs downgraded Coupons to a
“sell” rating on Tuesday – but the stock surged anyhow.
• Shares have been trading on very low volume recently, except
for a couple of huge trades this week.
• These large trades drove Coupons.com shares higher on
Monday and Tuesday.
• That’s a big and anonymous shareholder with a strong
appetite for more Coupons.com shares.
Why the big buy-in?
• Coupons.com is a very young stock, having entered the market in a
March 2014 IPO.
• In its short life, the stock has already taken a 45% haircut and climbed
all the way back to its first-day closing prices again.
• Investors are still feeling their way around this intriguing new ticker,
so a few sudden and largely unexplained moves should be expected.
• The company is not yet profitable, and the stock trades at a blood-
curdling 75 times forward earnings estimates. That’s not a recipe for
stable trading, either.
• Make sure that you understand the coupon-clipping and digital
marketing sectors before owning Coupons.com. This stock will not fit
BlackBerry rode a bumpy roller coaster
Up nearly 7% on Monday, the stock
plunged on Tuesday – only to climb
back even higher.
What’s the big idea?
• The early bounce rested on a rosy mobile
market report from Gartner.
• The smartphone market may have matured,
but volumes are still rising – and tablet sales
rise even faster.
• iOS and Android own all of the new growth,
but BlackBerry’s “other” segment still has a
few relatively healthy years left.
But wait – there’s more!
• BlackBerry also won three coveted Red Dot
design awards on Monday.
• The BlackBerry Z10 handset won one of these
trophies last year, followed by the Z30, Q10, and
Q5 this time around.
The award-winning BlackBerry Z30 from three angles. Source: BlackBerry.
Choke, stall, restart.
• The Red Dot announcement may have helped
on Monday, but was quickly forgotten.
• However, the brand new BlackBerry Passport
handset quickly restarted the stock’s stalled
• More square than rectangular, this one
stands out in the crowd.
• The physical keyboard is supposed to be
exceptional, even for a BlackBerry.
So, should you buy BlackBerry today?
• BlackBerry is not dead yet, and may actually be around for
the long haul.
• CEO John Chen is a bit of a visionary, and not afraid of taking
significant risks if the payoff looks good.
• However, I’m still not enthusiastic about the stock.
• Chen needs to navigate a deep sea of treacherous waters before
pulling this turnaround ashore.
• Did I mention that he’s alright with big risks? Make sure to invest
BlackBerry CEO John Chen.
Like our other tech stars this
week, InvenSense jumped
sky-high on Monday.
Like BlackBerry, this stock needed a second wind.
Unlike BlackBerry, the second jump also faded.
InvenSense took the easy way up:
• The Apple iPhone 6 is expected to ship with
plenty of InvenSense’s gyroscopes, pressure
meters, and other sensors.
• Apple analysts took Cupertino shares 2%
higher on Monday, citing huge demand for
the as-yet unannounced iPhone update.
• Many Apple suppliers rode that tidbit to
strong gains, including InvenSense.
What’s next for InvenSense?
• InvenSense also bought two small software companies this week,
building a more complete package around its motion detection
• The company wants to outgrow the motion-sensor hardware niche
and become an all-around sensor solutions provider.
• So far, the strategy is paying off. InvenSense shares set a 52-week
high on Monday, and have gained 50% over the last year.
• Given these impressive gains, some of the weakness at the end of
this week probably resulted from profit-taking moves.
• Do keep the company’s nosebleed valuation in mind before buying
in. Shares currently trade for 345 times trailing earnings, and cash
flows are negative.
Apple hopes to sell millions of iWatches…
but not without this small-cap