CEVA Inc. (CEVA) – Is It Too Late to Buy???

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CEVA Inc. (CEVA) – Is It Too Late to Buy???

 

California-based leading licensor of signal processing IP technology CEVA Inc. (CEVA, $26.54, up $3.48) surged 15.09% after it reported 1st quarter results that beat on earnings and revenue, and it gave a bullish forecast.  For the quarter ending March 31, it reported adjusted earnings per share (EPS) of $0.17 on $16.5 million in revenue, compared to EPS of $0.08 on $13.8 million in revenue a year ago.  Analysts had expected EPS of $0.16 on $16.3 million in revenue.  EPS was helped by higher licensing and royalty revenue.  For the 2nd quarter, the company forecasts EPS of $0.17-$0.19 on $16.5-$17.5 million in revenue.  Analysts are expecting EPS of $0.15 on $15.9 million in revenue.  For full year fiscal 2015, the company had EPS of $0.53 on $59.5 million in revenue, compared to EPS of $0.35 on $50.8 million in revenue a year ago.  For full year fiscal 2016, analysts are expecting EPS of $0.76 on $68.7 million in revenue.

 

The $542.33 million company’s semiconductor chips are used in smartphones, automobiles, and cameras worldwide.  Its main research and development facility is in Herzliya, Israel.  During the 1st quarter, it signed 11 license agreements, including three with first-time customers.  Licensing and related revenue was $8.6 million, or 52.1% of 1st quarter revenue.  The company has over 300 licenses.  Analysts give the stock a 1-year price target of $28.00, but that could rise in the near future.  High target is $32.  The stock has a trailing PE of 88.76, forward PE of 27.00, PEG of 1.13, and price/sales of 7.94.  Short interest is low at 4.87%, which means that short sellers probably do not think the stock will fall.

 

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Cliffs Natural Resources (CLF) – Is It Time to Buy???

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Cliffs Natural Resources (CLF) – Is It Time to Buy???

 

Ohio-based iron ore miner Cliffs Natural Resources (CLF, $5.39, up $1.08) surged 25.06% after it reported 1st quarter results that beat on earnings and revenue, cut costs, and signed contracts with steelmakers.  For the quarter ending March 31, it reported adjusted earnings per share (EPS) of $0.62 on $305.5 million in revenue, compared to EPS of -$4.26 on $446 million in revenue a year ago.  Analysts had expected EPS of -$0.10 on $271.8 million in revenue.  EPS was helped by a $179 million gain on restructuring of debt as well as lower production and overhead costs.  The company also reached supply agreements with ArcelorMittal (MT) and U.S. Steel Canada, a subsidiary of U.S. Steel (X).  For the 2nd quarter, analysts are expecting EPS of -$0.06 on $481.61 million in revenue.  For full year fiscal 2015, the company had EPS of -$5.13 on $2.0 billion in revenue, compared to EPS of -$40.36 on $3.4 billion in revenue a year ago.  For full year fiscal 2016, analysts are expecting EPS of -$0.31 on $1.87 billion in revenue.

 

Originally Cleveland-Cliffs, the $970.79 million company is the largest iron ore producer in North America and owns seven iron ore mines in North America and one in Western Australia.    The stock reached about $100 in 2011 as iron ore prices soared to $187 a ton.  Since then, iron ore prices have fallen to a low of $39 a ton in December of 2015 and are currently $61 a ton.  The company reduced its cost to produce iron ore in the U.S. by 26% to $48 per ton.  Iron ore demand from China, the world's largest consumer of the metal, has started to improve.  For 2016, the company expects to sell 17.5 million tons and 11.5 million tons of iron ore from its U.S. and Asia Pacific businesses respectively.  Analysts give the stock a 1-year price target of $2.00, but that could rise in the near future.  High target is $3, which could also rise in the near future.  The stock has a trailing PE of 7.90, PEG of 1.58, and price/sales of 0.48.  Short interest is high at 36.08%, which means that shares could see a short squeeze on good news.

 

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Penske Automotive Group (PAG) – Is this Another Temporary Low???

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Penske Automotive Group (PAG) – Is this Another Temporary Low???   Michigan-based international car and truck dealership Penske Automotive Group (PAG, $40.06, up $4.03) surged 11.19% after it reported 1st quarter results that beat on earnings and revenue, and it gave an upbeat forecast.  For the quarter ending March 31, it reported earnings per share […]

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Boston Scientific (BSX) – Set For Growth

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Boston Scientific (BSX) – Set For Growth   Massachusetts-based medical device maker Boston Scientific (BSX, $21.89, up $2.20) surged 11.17% after it reported 1st quarter results that beat on earnings and revenue, and gave a bullish forecast.  For the quarter ending March 31, it reported adjusted earnings per share (EPS) of $0.28 on $1.96 billion […]

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Perrigo plc (PRGO) – Has It Gotten Too Low???

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Perrigo plc (PRGO) – Has It Gotten Too Low???   Ireland-based consumer goods and drug manufacturer Perrigo plc (PRGO, $99.40, down $21.95) plunged 18.09% after the chairman and CEO resigned and the company cut its forecast.  Joseph Papa, who became CEO in 2006 and chairman in 2007, stepped down and took a job at Valeant […]

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Lithia Motors (LAD) – Is this a Temporary Low???

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Lithia Motors (LAD) – Is this a Temporary Low???   Oregon-based new and used car dealership Lithia Motors (LAD, $79.14, down $13.14) plunged 14.44% after it reported 1st quarter results that narrowly beat on earnings and revenue but missed on forecast. For the quarter ending March 31, it reported earnings per share (EPS) of $1.55 […]

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