Sell MATK near $25.
Two days ago, I have written about MATK and in it, I have expressed some caution regarding the future of Martek. I have thought about it and this is my opinion:
1. Long-term prospect for the MATK business is valid.
2. Infant formula is 90% of the revenue and it did not grow.
3. Much anticipated "food" deals did not occur.
4. Food products represent less than 2% of revenue.
5. Recent quarterly EPS of 12 cents did not impress me.
6. Restructuring charge will impact 1Q of 2007 business.
7. Next quarter estimated EPS is only 11-14cents per share.
8. During the conference call, the new CEO did not impress me either
9. Management does not have any "deals" they are willing to share
10. Today the stock price went down - this is not a good sign
11. I am quickly loosing interest in this management.
Bottom line: I see the potential to high 20's. I do not see a major down side either. But until a "major" food deal is signed, this stock is going nowhere soon. I am taking my chips else where until I hear better news from the company. Sell MATK near $25 (even this might be a chellenge). The next few days, MATK will swing wildly. Sell it near $25. Let's look for something else.
I am not feeling too hot right now.
Let me keep this one short. Good night...
1. Long-term prospect for the MATK business is valid.
2. Infant formula is 90% of the revenue and it did not grow.
3. Much anticipated "food" deals did not occur.
4. Food products represent less than 2% of revenue.
5. Recent quarterly EPS of 12 cents did not impress me.
6. Restructuring charge will impact 1Q of 2007 business.
7. Next quarter estimated EPS is only 11-14cents per share.
8. During the conference call, the new CEO did not impress me either
9. Management does not have any "deals" they are willing to share
10. Today the stock price went down - this is not a good sign
11. I am quickly loosing interest in this management.
Bottom line: I see the potential to high 20's. I do not see a major down side either. But until a "major" food deal is signed, this stock is going nowhere soon. I am taking my chips else where until I hear better news from the company. Sell MATK near $25 (even this might be a chellenge). The next few days, MATK will swing wildly. Sell it near $25. Let's look for something else.
I am not feeling too hot right now.
Let me keep this one short. Good night...
posted by Jaewoo | 8:55 PM
3 Comments:
Jae:
First of all, I hope you feel better. Secondly, I am looking forward to seeing you and your family in Tokyo for Christmas
Third, and this is where we need to discuss a little bit, when I sell MATK at $25 it will be my third stock to lose money. As matter of fact, all my ACETRADER stocks have lost money - BTYH, FORD and now MATK (OK, I forgot about RICK - making money there..).
I need some recommendations from you for stocks that I can buy and hold for at least 6-10 months. I can't daytrade everyday, so I need to find some small cap stocks that have medium to long term growth potential.
Any reco's for an old high school buddy who can't make any money on stocks????
Johnny
Johnny:
For those of you who don't know Johnny: We went to same high school (Great Neck South) and College (Washington University) and as if this wasn't enough, he is also my fraternity brother (TKE).
This guy just can't seem to get away from me. He works for Glaxo (GSK), a hugh drug company and recently the company sent him to Toyko to oversee god knows what (this company does not have too many talents I think).
He is still single and somewhat handsome, making six figures, so any girls out there, send me a post if you're interested (no performance gurantees here).
Since you already have RICK, please add BTYH & MIDS for next one year or so. Always use limit orders and buy it at current prices.
Please don't feel bad. I know many people who lost $ in Fidelity Magellen Fund - one of the top performing funds in U.S. history. This is your last chance. If you fail to make $ in BTYH & MIDS, I suggest you get out of the market and simply buy the Dow30 Index.
See ya in Toyko.
Is my hotel ready?
Johnny:
BTYH is now at $0.55
MIDS is now at $0.68
Okay?
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