Trades update - August 2017

5 Sep 2017

August started off with the earnings season in full swing and ended with continuing speculation and concerns about North Korea. It’s certainly been a roller coaster!

Movers and shakers in August

SEDG was up over 16% with a very strong earnings beat and a revised revenue outlook that topped analyst expectations. Given the company’s continual gain of market share and international growth, the company is strongly positioned for any turn around in the US solar market.

YUME increased by almost 20% as speculation took hold of a buy out by Rhythm One. This has just been announced at $5.30 / share, a 42% increasing on our original purchase recommendation (note: A $1 dividend was paid).

PNTR was up over 10% after a strong earnings beat with a strong 24% year on year growth of subscriber numbers and a 54% increase in EBITDA.

YY had a roller coaster, starting the month at $70, pushing up to $80, back down to $70 and now sitting in the middle at around $75. The company reported strong earnings, then announced a large $US 450m capital raising for global growth and potential acquisitions. I have some thoughts on this, you can read here.

AAOI dropped 40% to a 3 month low after slightly slower than forecast growth and concerns about it’s largest customer. Last monthly report I said:

The company is in a sweet spot at the moment, but it’s approaching fair value as its earnings can only continue such strong growth for so long.

Now would be a good time to re-enter if you decided to close out closer to the $100 mark. Earnings and forecasts a still strong, with data center growth to continue for the foreseeable future, powered by IoT and the cloud.

Year to date

Our year-to-date performance is little changed from last month. 84% of trades are profitable with an average return of 34% for the first 8 months of the year.

Happy trading!

Posted by Chris
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