This Week's Big Movers Will Be...

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Volatility will be the name of the game for shares of these three companies this week.

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  • This Week's Big Movers Will Be...

    1. 1. 3 Stocks That Could Make Huge Moves
    2. 2. Cirrus Logic (NASDAQ: CRUS)
    3. 3. Why Are Investors So Negative? 1. Analysts are expecting earnings per share to drop more than 30% in the coming fiscal year. 2. Many are worried that the company is over- reliant on the iPhone as a source for revenue. If the company doesn’t continue to supply parts for the phone, it would be a major blow.
    4. 4. Here’s What to Watch Wall Street Expectations • Currently, 15% of Cirrus’s shares are sold short. • Analysts are expecting the company to report revenues of $148million. • Earnings per share are expected to come in at $0.30. What to Really Watch • As the company tries to diversify away from supplying parts for each iDevice, listen in to the conference call to see if its other revenue streams are growing. • Beyond earnings, finding out if Cirrus won a place in the next iteration of the iPhone will probably be the biggest variable for the company moving forward.
    5. 5. iRobot (Nasdaq: IRBT)
    6. 6. Why Are Investors So Negative? 1. Shares have more than doubled since November of 2012. At the same time, trailing earnings have actually shrunk. 2. Currently, shares trade for 45 times trailing earnings. 3. Earnings are expected to be light in the first half of the year, as newer home robots (vacuum, pool, hardwood floor cleaners) are rolled out.
    7. 7. Here’s What to Watch Wall Street Expectations • Currently, 33% of iRobot shares are sold short. • Analysts are predicting revenue of $143 million when the company reports. • Earnings per share are expected to register at $0.22. What to Really Watch • As management has already let it be known that the first half would be somewhat weak, maintaining full-year guidance will be important for reassuring investors that more sales are right around the corner.
    8. 8. Infinera (Nasdaq: INFN)
    9. 9. Why Are Investors So Negative? 1. Infinera’s DTN-X optical network is easily the most efficient for companies to use, but they have been slow to adopt the platform. 2. This helps explain trailing earnings of just $0.12 per share, and a stock that trades for 74 times that value.
    10. 10. Here’s What to Watch Wall Street Expectations • Currently, 11% of Infinera shares are sold short. • Revenue is expected to come in at $165 million. • Analysts are predicting a profit of $0.04 per share. What to Really Watch • Any major contracts with network providers would be a huge win for the company. • Infinera functions on a razors-and-blades model. Right now, it wants to focus on razors, so investors should actually hope for gross margins to stay around 40%.
    11. 11. Who is Supplying the Parts for the Next iGadget? Apple is easily the most important customer for Cirrus Logic. But who will Apple be using to power its next iGadget? Many are saying it could end up trumping the iPod, iPad, and iPhone combined. To find out the tiny company behind the product, check out our special free report: The Next iGadget Will Be Powered By...

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