As Wall Street is now in the throes of another “market correction”, we’d like to highlight four stocks that have received muted price reactions to bullish company announcements. We strongly believe that when the market stabilizes and recovers, these stocks could experience quicker and more meaningful snap backs than stocks in the broader market.
Market Corrections Yield Opportunities
Here are four names we are watching for potential bounces when the market stabilizes:
Educational Development Corp. (NASDAQ:EDUC) ($9.22) – a trade publisher of a line of educational children’s books in the United States.
After hours, on January 14, 2015 EDUC reported strong Q3 2016 results:
Sales of $24.4 million vs $10.9 million in the prior year period
EPS of $0.31 vs $0.13
Taylor Devices Inc. (NASDAQ:TAYD) ($15.34) – designs, develops, manufactures, and markets shock absorption, rate control, and energy storage devices for use in machinery, equipment, and structures.
On January 12, 2015 TAYD reported strong Q2 2016 results:
Sales of $8.8 million vs $6.7 million in the prior year
EPS of $0.27 vs $0.15 in the prior year
Management offered bullish commentary:
“We are receiving new seismic orders for dampers that are quite frankly larger than ones we have previously manufactured & shipped,” stated Douglas P. Taylor, President. He continued, “To that end, we have started a new 10,000 square foot addition to 90 Taylor Drive for the testing & assembly of seismic products; we hope to have the related construction completed by next year.” He concluded, “Our sales are continuing at a record pace and all indications suggest that we will have another strong year.”
Super Micro Computer Inc. (NMS:SMCI) ($24.43) – develops and provides high performance server solutions based on modular and open-standard architecture.
On January 12, 2016 SMCI reported preliminary Q2 2016 results:
The Company anticipates that it will report net sales for its second quarter of fiscal 2016 in the range of $637 million to $639 million. This compares to the Company’s previous guidance range of $580 million to $630 million. Guidance is above analyst estimates of $621.4 million.
The Company also anticipates that its non-GAAP earnings diluted per share will be in a range of $0.69 to $0.72. This compares to the company’s previous guidance of $0.54 to $0.64. Guidance is above analyst estimates of $0.66.
MeetMe Inc. (NASDAQ:MEET) ($3.31) – owns and operates a social network for meeting new people on the Web and on mobile platforms in the United States.
On January 6, 2016 MEET raised its fiscal 2015 guidance:
Total revenue is expected to be approximately $56.5 million, an increase of 26% from full year 2014, and above the Company’s previously released guidance range of $53.5 million to $54 million for full year 2015.
Adjusted EBITDA is expected to be approximately $19.5 million, an increase of 289% from the prior year, and above the previously released guidance range of $16.5 million to $17.5 million for full year 2015.