Stock of the Week
Gigamon Inc. (GIMO)

Gigamon (GIMO) designs software and hardware that steers information on computer / telecommunications networks, including video, voice and data, to the appropriate destination. The company’s products help IT managers of enterprises, data centers and service providers to monitor their networks and maintain network performance. The company maintains relationships with vendors of network management, analysis and security tools, including Check Point Software, Cisco Systems, Fortinet, FireEye, Imperva, Palo Alto Networks, Riverbed Technology, SolarWinds, VMware, Inc. and Viavi Solutions.

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Significant Developments

Outlook for U.S. Stocks Improves, as U.S. Senate Announces Their Version of a New Healthcare Bill

June 22, 2017 (11:30 am U.S. Eastern Time)

The outlook for U.S. stock prices improved today after Mitch McConnell announced that Republican Members of the U.S. Senate passed their version of a bill to replace the Patient Protection and Affordable Care Act. The U.S. House of Representatives will now need to agree upon the Senate’s bill or to negotiate a final version of a new healthcare bill before any such bill would become law.

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U.S. Economic Developments

Existing Home Sales Rebound Modestly during May

June 21, 2017

The National Association of Realtors (“NAR”) reported today that sales of previously-owned U.S. homes – existing home sales – rose modestly during May after declining during the prior month.

Specifically, the NAR reported that existing home sales rose by 1.1% during May, as compared to the prior month, after declining by 2.5% during April.

In sprite of last month’s rebound in existing home sales, the latest reading on the NAR’s Pending ... continue reading >

  U.S. Existing Home Sales
U.S. Political Developments

S&P Global Ratings Cuts Illinois’ Debt to One Grade Above Junk

June 1, 2017

S&P Global Ratings reduced its credit rating on the state of Illinois’s debt to BBB-, one grade above junk bond status, as a result of “the severe deterioration of Illinois' fiscal condition”, according to S&P analyst Gabriel Petek.

That’s the seventh time since January 2015 that U.S. credit agencies have downgraded Illinois’ debt, which is now in excess of $14 billion.

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Earnings Announcements

Accenture, Apogee Enterprises, Carnival Corporation and Seven Other Companies Report Latest Quarterly Earnings

June 22, 2017

Accenture (ACN) reported that its net income declined by 25.8%, excluding pension settlement charges and gains on sales of assets, on a 4.3% increase in the company’s revenues, a 2.7% increase in its cost of goods sold and a 10.9% increase in its operating expenses for the three months ended May 31, 2017, as compared to the same period a year ago.

Apogee Enterprises (APOG) reported that its net income declined by 9.1% on a 9.9% increase in ... continue reading >

Click Here for All Q1 2017 Earnings

International Economic Developments

Eurozone Economic Sentiment Increases for Fourth Consecutive Month

June 13, 2017

The Centre for European Economic Research reported today that its ZEW Index, which measures the economic sentiment of Eurozone institutional investors, rose during the first half of June for the fourth consecutive month and to the highest level since August 2015, indicating that those investors became more optimistic over the past couple of months regarding the future direction of the Eurozone economy.

Separately, Brazil’s Institute of Geography and Statistics reported that sales at the country’s ... continue reading >

 
International Geopolitical Developments

Saudi Arabia, Egypt, Bahrain and the United Arab Emirates End Diplomatic Relationships with Qatar

June 5, 2017

Several international news agencies reported today that Saudi Arabia, Egypt, Bahrain and the United Arab Emirates ended diplomatic relationships with Qatar in response to accusations that the country is supporting terrorist groups.

According to The Guardian, representatives of the aforementioned countries said their governments will stop all land, air and sea traffic with Qatar and force Qatar’s diplomats to leave their respective countries.

Company and Stock News
June 21, 2017
  • Actuant (ATU): Actuant Corporation announced today that it expects its full-year fiscal 2017 adjusted earnings per share to be in a range of $0.82-$0.87 on revenues of $1.08-$1.09. In comparison, Wall Street analysts were estimating, on average, for Actuant to report adjusted earnings per share of $0.99 on revenues of $1.09 billion for the company’s fiscal year ending August 31, 2017.

  • Nationstar Mortgage (NSM): Nationstar Mortgage Holdings Inc. announced that it moved the company’s international call center operations back to the United States, creating 500 new jobs and bringing customer service closer to the company’s more than 3 million customers.

  • Ebay (EBAY): Ebay Inc. announced that it launched a Price Match Guarantee on more than 50,000 items in the United States, including electronic devices, home & garden supplies and apparel, guaranteeing that eligible items will be offered at the lowest online price or match competitors’ prices for those items.

  • Etsy (ETSY): Etsy, Inc. announced today its reducing the company’s workforce by approximately 140 positions, or approximately 15% of its current workforce. That’s in addition to 90 job cuts that the company announced on May 2. The company stated that it expects to incur $12.5-$16.8 million in employee severance charges and other expense related to those job cuts.

More Company and Stock News >

Stock Coverage

GROWTH STOCKS

Company & Ticker Sector / Industry Investors Monitor Grade
(As of Initial Coverage Date)
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 / Semicond B+ A+ B+ B+ A 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 / Solar Panels A A+ A A A 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/ Internet Security A A+ A+ B+ A 2.3 C C 12/23/16
$12.65
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
(As of Initial Coverage Date)
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) Retail Dept. Stores 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 / Iron Ore 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) Retail Stores / Flooring  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) Retail Stores / Furniture  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.


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