3 Stocks that Could Make Huge Moves This Week

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3 Stocks That Could Make Huge Moves

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3 Stocks that Could Make Huge Moves This Week

Transcript of 3 Stocks that Could Make Huge Moves This Week

Page 1: 3 Stocks that Could Make Huge Moves This Week

3 Stocks That Could Make Huge Moves

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Fuel Cell (Nasdaq: FCEL)

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Why Are Investors So Negative?1. As solar components become more

commoditized, competition in China will naturally drive selling prices down.

2. There have been a number of reports coming out lately hinting at a significant slowdown in solar demand in China.

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Here’s What to Really WatchWall Street Expectations

1. Currently, 12% of available shares are being shorted.

2. Analysts estimate revenue will come in at $289 million.

3. Analysts estimate that earnings per share will come in at $0.40.

What to really watch

1. Pay close attention to management comments on the strength of the Chinese solar markets.

2. Look at gross margins to make sure commoditization isn’t once again taking hold—pushing profits down.

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Abercrombie & Fitch (NYSE: ANF)

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Why Are Investors So Negative?1. Comparable-store sales plunged by 15% over

the past fiscal year, a very negative sign for the brand’s popularity.

2. The American mall isn’t as busy as it used to be, and that hurts traffic at Abercrombie’s stores.

3. The company wants to shift on an older demographic, but doing so will likely hurt margins.

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Here’s What to Really WatchWall Street Expectations

1. Currently, 21% of available shares are being shorted.

2. Analysts estimate the company will report revenue of $797 million.

3. Analysts estimate earnings per share will come in at a loss of $0.19 per share.

What to Really Watch 1. The company

predicted high-single-digit losses in same-store sales. Check and see how results measured up.

2. Keep an eye on gross margins, as the company’s focus on older adults could mean shrinking profits.

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Veeva Systems (NYSE: VEEV)

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Why Are Investors So Negative?1. This newly IPO’d organization, which

focuses on cloud solutions for drug companies, trades for a hefty 80 times earnings.

2. A recent secondary offering put pressure on shares. Many original shareholders of the company decided to sell their stake in the company in the follow-on offering.

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Here’s What to Really WatchWall Street Expectations

1. Currently, 24% of available shares are being shorted.

2. Analysts expect Veeva to report revenue of $63.4 million.

3. The company is expected to report earnings per share of $0.05.

What to Really Watch1. As with any pricey

stock, guidance will be very important.

2. Hopefully, management doesn’t spend much/any time talking about the stock’s performance. Doing so would signal that they aren’t focused on what they can control.

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