ERII:
-Entry: $9.06. Earnings winner due to higher than expected revenues. At 10 year highs with a clear breakout. Note that full Q3 earnings will be reported on Monday, Nov 9th. Estimates are losses -$0.05 per share. With 12 previous months EPS at -$0.42 and $0.03 per share revenue increase, the stock could hit Credit Suisse price target of $10.00. The 15 year License agreement with Schlumberger did not just include exclusive rights, it also included $125 million in revenue. In Q4, this company with $5 million-$14 million in revenue per quarter will take a Q4 revenue payment of $75 million. The call will not just cover earnings, the management will probably provide a positive outlook. When that happens, you could see the $10 price target hit on Monday or Tuesday.
-Exit strategy: Sell into morning spike on Tuesday morning Nov 10th. Price target $10.00. Stop loss would be at $8.50 support level seen on Friday 11/6.
-Note: Stock is at all time highs, after $8.50 the next level of support seems to be $5.00. Cut losses quickly if it does not go your way. Most of the time it is not smart to hold prior to earnings calls, but I will on ERII this time. I will watch this stock during 4th quarter earnings when the projected EPS for Q4 is $0.84 per share.
https://www.etrade.wallst.com/v1/stocks/earnings/earnings.asp?symbol=ERII&rsO=new
RPTP:
-Entry: $6.33 open price. Company beat on revenues but lost $14 million, in Q3 last year a loss of $6 million was posted. The annual revenue increase should be factored into the stock price 2012 $0, 2013 $16.8 million, 2014 $69.4 million.
-Exit strategy: From May 2015 to August 2015 the stock fell from $15.31 to $6.31. The volume and response to revenue increase could cause the price to rise to $8. The downside is the $6.16 support level and a constant new normal of $6 per share if RPTP cannot break out.
-Note: No trades planned until I exit ERII.
http://finance.yahoo.com/echarts?s=RPTP+Interactive#{"range":"6mo","allowChartStacking":true}
ZAGG:
-Entry: $9.75 breakout from possible March/June/November triple top. Earnings winner.
-Exit Strategy: $11 the 2012 support level. Downside is the support at $9.00 and $8.60.
-Note: Beat revenues by $03 a share, announced $20 million share repurchase program. That is 8% of their Market Cap. At least 3 analysts (Thomson Reuters, Smart Consensus, Market Edge) have rated ZAGG a buy as of Nov 6th.
-Note: No trades planned until I exit ERII.
http://finance.yahoo.com/echarts?s=ZAGG+Interactive#{"range":"ytd","allowChartStacking":true}
Great post, I've not looked into any of these myself yet but good work on your research and prep for the week ahead. I'll have a cheeky look at them over the weekend! :-)
Thanks Luey!
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