Stock of the Week
Kornit Digital Ltd. (KRNT)

Kornit Digital develops, manufactures and markets industrial digital printing technologies for the garment, apparel and textile industries.

The company caters to the needs of designers and manufacturers to address the changing needs of the entire textile printing value chain, offering a complete line of direct-to-garment printing applications that range from commercial to mass production level. Kornit is headquartered in Israel and maintains offices in the U.S., Europe and Southeast Asia. It has customers in more than 100 countries around the world.

 
Significant Developments

A Very Uncertain Day

April 25, 2017 (9:25 am U.S. Eastern Time)

We have no specific forecast for today's direction of stocks due to the uncertainty regarding whether or not President Trump will deliver on his promise to announce plans for a major overhaul of the U.S. Tax system. In the event that Trump were not to comment specifically on such plans, we would expect stocks to pull back sharply. And, even if he were to outline his tax plans, stocks might would still pull back, as many financial market participants have likely already factored such plans into their current stock valuations. In contrast, a very bold and specific tax plan announcement might lead market participants to bid stocks higher.

Click here if you'd like to receive our daily market outlook via email by subscribing to one of our investment journals.

 
David Frazier's Investment-Timing Recommendations
Click here to access a larger chart and to review all of our financial market forecasts over the past 15 years.
U.S. Economic Developments

U.S. New Home Sales Rise to Second Highest Level since January 2008

April 25, 2017

Data released today by the U.S. Department of Commerce indicate that sales of newly-constructed homes in the United States – new home sales – rose during March to the second-highest level since January 2008.

Specifically, the Department of Commerce reported that, on a seasonally-adjusted annualized basis, new home sales rose by 15.6% during March, as compared to ... continue reading >

  U.S. New Home Sales
U.S. Political Developments

President Trump Signs Memorandum to Study the Effects of Excessive Steel Imports

April 20, 2017

President Trump signed a memorandum today directing the U.S. Secretary of Commerce to investigate the effects of excessive steel imports into the United States and to recommend actions that should be taken to adjust the amount of steel imports if such imports threaten the national security of the United States.

Separately, President Trump's budget director Mick Mulvaney said the Trump administration plans to include $200 billion for new infrastructure spending in its fiscal year 2018 budget. According to Mulvaney, that would be enough money to fund $1 trillion worth of infrastructure projects.

 
Earnings Announcements

AK Steel, AutoNation, Caterpillar, Coca-Cola, DuPont, Freeport-McMoRan, JetBlue, McDonald’s, PulteGroup and 126 Other Companies Announce Q1 Earnings

April 25, 2017

AutoNation (AN) announced today that its net income, excluding unusual items, declined by 20% on a 0.4% increase in the company’s revenues, a 0.6% increase in its cost of goods sold and a 1.5% increase in its operating expenses for the quarter ended March 31, 2017, as compared to the same period a year ago.

Caterpillar (CAT) reported that its net income declined by 28.7% on a 3.8% increase in the company’s revenues and a 4.9% increase in its operating costs and ... continue reading >

Click Here for All Q1 2017 Earnings

International Economic Developments

Manufacturing Activity in the Eurozone and Japan Continues to Increase at a Fast Pace

April 21, 2017

IHS Markit reported today that its latest survey of purchasing managers at manufacturing companies in the Eurozone and Japan indicates that manufacturing activity in those regions continued to increase at a fast pace during the first half of April.

Specifically, Markit reported that its survey of manufacturing executives in the Eurozone indicates that manufacturing activity in that region of the world rose ... continue reading >

 
International Political Developments

U.S. Aircraft Carrier Strike Group Headed toward Korean Peninsula

April 19, 2017

According to several media reports, Admiral Harry Harris, the Commander of the U.S. Pacific Command ordered the USS Carl Vinson strike group to begin sailing today towards the Korean Peninsula in the Western Pacific Ocean in response to military threats against the United States made by North Korea’s dictator Kim Jong-un.

The nuclear-powered, 97,000-ton Vinson, which has more than 60 aircraft and approximately ... continue reading >

Company and Stock News
April 25, 2017
  • Samsung: Samsung Electronics announced yesterday evening that pre-orders for the company’s Galaxy S8 have outpaced pre-orders for the Galaxy S7 by 30%, making it the company's "best ever" launch of a smartphone.

  • Netflix (NFLX): Variety reported yesterday evening that Netflix, Inc. signed a deal to enter the China streaming market through an original content licensing deal with iQIYI, one of China’s larger digital distributors.

  • Straight Path Communications (STRP): Straight Path Communications announced today that its Board of Directors determined that an unsolicited offer from an unnamed multi-national telecommunications company to acquire 100% of the issued and outstanding shares of Straight Path for $104.64 per share constitutes a "Superior Proposal" to a previously-announced definitive agreement and plan of merger with AT&T Inc. Straight Path said that it has notified AT&T of the Board's determination and, pursuant to the AT&T Merger Agreement, AT&T has the option for the next five business days to negotiate a possible amendment of that agreement to match or exceed the unsolicited bidder's offer.

  • Nike (NKE): MarketWatch reported today that Nike, Inc. submitted a patent application for an "architecturally reinforced denim" that the company describes as "a denim fabric with high tenacity and/or moisture management and/or stretch materials." According to MarketWatch, Nike designed the fabric for persons who are active in extreme sports.

  • Costco (COST): Costco Wholesale Corporation announced today that its board of directors declared a special dividend of $7 per share on the company’s common stock and authorized an increase of $0.05 per share to $0.50 for its quarterly cash dividend. Both the special dividend and the regular quarterly dividend are payable on May 26 to shareholders of record on May 10 and May 26, respectively.

More Company and Stock News >

Stock Recommendations

GROWTH STOCKS

Company & Ticker Sector / Industry Frazier Grade Initial Coverage Date & Price Rating on Initial Coverage Date
Product Financial Liquidity Long-term Debt Profit Margins Sales & EPS Growth PEG Ratio Institution Buys to Sells Timing
Semiconductor Manufacturing International (SMI) Technology B+ A+ B+ B+ A

04/10/17
0.6

C A

04/10/17
$6.18

A
Semiconductor Manufacturing International Corporation provides contract manufacturing services to semiconductor design companies. The company operates seven factories in China and manages two manufacturing facilities owned by the Chinese government. Approximately 50% of the company’s revenues are generated from sales in the United States.
 
Solar Edge Technologies (SEDG) Energy A A+ A A A

12/23/16
0.7

A A

12/23/16
$12.65

A
SolarEdge Technologies manufactures solar photovoltaic (“PV”) systems that maximize power generation and lower the cost of energy produced by those systems. The company’s products serve a wide variety of solar market segments, from residential solar installations to commercial and small utility-scale solar installations. Its products have been installed in solar PV systems in more than 70 countries around the world.
 
Qualys (QLYS) Technology  A A+ A+ B+ A

11/28/16
2.3

C C

11/28/16
$33.75

C
Qualys is a leading provider of cloud-based security and compliance applications that enable organizations to identify security risks to their IT infrastructures, to protect their IT systems and applications from ever-evolving cyber attacks, and to achieve compliance with internal policies and external regulations. The company’s integrated suite of security and compliance applications, delivered on its QualysGuard Cloud Platform, enables its customers to identify their IT assets, collect and analyze large amounts of IT security data, discover and prioritize vulnerabilities, recommend remediation actions and verify the implementation of such actions. The company provides its applications through a software-as-a-service model, primarily with renewable annual subscriptions. Those subscriptions require customers to pay a fee to access the company’s cloud-based applications. The company has approximately 8,800 customers in approximately 100 countries around the world, including a majority of each of the Forbes Global 100 and Fortune 100 companies.

TURNAROUND SITUATIONS

Company & Ticker Sector / Industry Frazier Grade Initial Coverage Date & Price Rating on Initial Coverage Date
Product Financial Liquidity Long-term Debt Profit Margins Sales & EPS Growth PEG Ratio Institution Buys to Sells Timing
Sears Holdings (SHLD) Consumer Discretionary B B D+ n/a F n/a A A

02/22/17
$8.06

A
Sears Holdings is the world’s 31st largest retailer, operating more than 1,600 Sears and Kmart stores in the United States and Canada. The company is the leading U.S. retailer of home appliances, tools, lawn and garden goods, fitness equipment and automotive repair services, and it’s the nation's largest provider of home services, with nearly 12 million service and installation calls made annually.
 
Cliffs Natural Resources (CLF) Basic Materials A A- F n/a D n/a C A

01/13/17
$9.23

A
Cliffs Natural Resources produces iron ore pellets, a key component of steel making, and owns or holds stakes in five iron ore properties that account for more than half of the United States’ total iron ore production capacity. While the company sells its ore primarily in North America, it has a growing number of iron ore interests in the Asia/Pacific region and in Latin America.
 
Lumber Liquidators (LL) Consumer Discretionary  A B A n/a D n/a C B+

01/12/17
$15.47

B+
Lumber Liquidators is one of the larger retailers of hardwood flooring in the United States. The company sells more than 25 domestic and exotic species of hardwoods from more than 340 stores in approximately 45 U.S. states and Canada, as well as over the Internet, by catalog, and from its Virginia call center. The company also offers antique and reclaimed boards, laminate flooring, moldings, and installation products.
 
Restoration Hardware (RH) Consumer Discretionary  A B C+ n/a D n/a D B+

12/16/16
$21.37

B+
Restoration sells up-scale home and outdoor furnishings, garden products, hardware, bathware, lighting, textiles, and baby and child products through approximately 85 retail and outlet stores in 30 U.S. states, the District of Columbia, and Canada.


Subscribe to our Monthly Investment Journal, Frazier's Strategic Allocator,
for our Current Recommendations!

Our Research and Advisory Journals

Click here to stay informed about factors and developments that are likely to affect the value of your investment portfolio – by subscribing to one of our investment research and advisory journals.