Perion Network Ltd (NASDAQ:PERI) Changes Management To Fuel Search Unit Growth

Perion Network Ltd (NASDAQ:PERI)

Perion Network Ltd (NASDAQ:PERI) has moved to strengthen ties with Microsoft Corporation (NASDAQ:MSFT)’s Bing with the appointment of Mike Glover as the General Manager of its search unit. Glover takes over from Amir Nahmias, who is stepping down after nine years with the company.

Search Unit Changes

According to the company, the restructuring seeks to bolster the company’s search unit. Glover is credited with playing a key role in helping Infospace, in the early 2000’s, secure long-term agreements with search providers and publishers. He also joins the company with 14 years of experience in business development, sales, and marketing.

“Mike’s in-depth experience in the industry is essential for Perion’s long-term strategy for growth in search. Mike understands and believes in the search media market and will be a fantastic new addition to spearheading this unit as we continue to evolve Perion as a search industry leader. The position itself will be based in Redmond in order to strengthen our key relationship with Microsoft’s Bing.” said Perion CEO, Doron Gerstel.

The appointment of Mr. Glover comes on the heels of the appointment of Ophir Yakovian as Perion Network Ltd (NASDAQ:PERI) new Chief Financial Officer. Yakovian is taking over from Yakov Kaufman who is stepping down after 11 years with the company. Yakovian joins the company with more than a dozen years of experience of working in a number of NASDAQ listed companies.

Q1 Financial Results

Separately, Perion Network Ltd (NASDAQ:PERI) recently reported its first quarter earnings where its net loss shrunk to (-$2.1) million from (-$5.6) million as of Q1 2016. The company has attributed the decline to improved cost structure. Revenues, on the other hand, were down by 18% – coming in at $62 million compared $75.8 million.

A decline in expense-free search revenues remains a point of concern, advertising revenues in the first quarter having declined by 22%. Search and other revenues were also down by 16% compared to last year. However, the company maintains that the decline was transitory given that April’s revenues were up by 20% compared to last year.

Customer acquisition expense, as of the first quarter, totaled $30.1 million representing 48% of the total revenues, compared to $34.3 million as of last year. Perion Network Ltd (NASDAQ:PERI) exited the first quarter with cash and cash equivalent amounting to $22.8 million.

Perion Network Ltd (NASDAQ:PERI) stock was up 10.53% in Thursday’s trading session and ended the day at $1.68 a share.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance.

Why Did Globus Maritime Ltd (NASDAQ:GLBS) Shares Explode?

Why Did Globus Maritime Ltd (NASDAQ:GLBS)

Globus Maritime Ltd (NASDAQ:GLBS) was a big mover in Wednesday’s trading session its stock and experienced unusual trading volume. A rally of more than 80% came as a surprise given that the stock has been under pressure on failing to beat earnings estimates for its recent quarterly filling.

Debt Settlement

The rally’s cause is still unknown as investors wait to see if the stock will continue to power higher. Last month the company announced that it had reached an agreement with two of its lenders, DVB Bank and HSH Nordbank AG, on waivers and terms of agreements dated June 20, 2011, and February 27, 2015.

The dry bulk company says it has nice received waivers and relaxations on its loans covenants and deferred certain loan payments that were due this year.

“We are very pleased that our efforts with our lenders have been fruitful. Our agreements with both DVB Bank and HSH Nordbank AG to gain waiver relaxations of our financial covenants as well as the deferrals in our installment loan payments gives the Company a breather and allows us to concentrate on our operational activities and plan ahead,” said Chief executive officer, Athanasios Feidakis.

Full Year Earnings

The company recently reported its full year earnings for the period ending December 31, 2016. Total revenue for the period came in at $9 million – a decline from revenues of $12.72 million reported for the full year ending December 31, 2015. Net income was also lower having tanked to $9.825 million from highs of $32.4 million reported the previous year.

Globus Maritime Ltd (NASDAQ:GLBS) has attributed the drop in earnings to continued weakness in the dry bulk shipping services business. The dry bulk company has since warned that its earnings may continue drop should fuel prices, which account for the largest expense in the industry, continue to rise. The increase in crew costs is another headwind that the company is facing which could considerably affect its profitability going forward.

Globus Maritime Ltd (NASDAQ:GLBS) has also warned that it might not be adequately insured to cover operational losses that might be incurred as it continues to operate its fleet of vessels. The fact that insurers may refuse to cover some losses is an operational risk that concerns industry analysts.

Globus Maritime Ltd (NASDAQ:GLBS) stock was up by 82.38% in Wednesday’s trading session, ending the day at highs of $1.66 a share.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) Turns To EksoGT Exoskeleton To Fuel Growth

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO)

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) remains well positioned to become a global success on exoskeleton options, according to chief executive officer, Thomas Looby. The executive made the remarks after the company came under scrutiny on posting a wider than expected net loss for the first three months of the year.

Banking on EksoGT Exoskeleton

According to the executive, additional capital raised in the quarter provides the fuel to accelerate positive momentum through the end of the year. Ekso Bionics is banking on its FDA approved exoskeleton, EksoGT, developed for patients who have suffered a stroke or spinal cord injury.

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) is the only exoskeleton available for rehabilitation institutions that seek to provide adaptive amounts of power to patient’s body. The executive believes that the exoskeleton provides a unique opportunity for growth as they move to meet rehabilitative global demand.

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) received an award for the EksoGT exoskeleton from HealthTechZone .com further affirming its credibility in the emerging space. The award recognized the company’s success in improving healthcare delivery through new innovation.

“Healthcare is no exception as robot-assisted surgery has become the standard of care for some procedures. In the area of stroke rehabilitation, there is a need to ignite patient neuroplasticity through repetitive motion and the Ekso GT technology is ideally positioned to meet that demand, “said Mr. Looby

According to the CEO, Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) has pioneered the category and that position of primacy presents unique opportunities for sales given the lack of competition. Developing new robotic exoskeletons remains a core objective as the company moves to accrue a substantial amount of market share before competitors enter the sector.

Q1 Disappointment

The sentiments could not have come at a better time given that the company has come under immense pressure in the market after posting earnings that failed to beat estimates. The company posted a net loss of (-$8.3) million or (-$0.38) cents a share.

Revenues in the quarter more than halved to (-$1.4) million compared to (-$8.5) million a year ago. Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) exited the quarter with cash of $9.4 million compared to $12.3 million as of the same period last year. The company also raised an additional $11.7 million in the quarter that it plans to use to for working capital and for general corporate purposes.

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) was down by 10.06% in Monday trading session ending the day at lows of $1.43 a share.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance

 

Drop Continues for Shares of Forterra Inc (NASDAQ:FRTA)

Forterra Inc (NASDAQ:FRTA)

Shares of Forterra Inc (NASDAQ:FRTA) continue to find new lows as shares dropped over 15% in today’s trading. Ten days ago, FRTA shares were flirting with the $20 level and today shares ended on their session lows at $8.91. Volumes were heavy. Over 2.68 million shares traded hands on a stock that has a 30-day, daily volume average of just 399,000.

Forterra Inc (NASDAQ:FRTA)’s slide started on May 16 when their earnings report sent investors seeking cover if not an outright exit. The company posted a (-$0.31) Q1 EPS loss. However the news that sent shareholders into a panic was the adjusted EBITDA guidance of $50 – $60 million which was well below the $89 million figure that the street was expecting. Unfortunately, Forterra Inc (NASDAQ:FRTA) suggested that Q2 figures would also disappoint. The company referenced project delays and competitive pressures. Additionally higher expenses of raw materials and labor were quoted as conditions that Forterra does not see subsiding. As of March 31, 2017 Forterra Inc (NASDAQ:FRTA) had cash on hand amounting to $27.5 million. That cash comes from a $1.26 billion loan of which only $68.1 million is available.

CEO Jeff Bradley commented that while the company is going through some short-term pain, he remains optimistic about Forterra’s long-term strength. However he optimistically included his view that the second half of 2017 should be in line with their previous expectations. He attributed his optimism to acquisitions that Forterra made in 2016 and 2017.

Following the May earnings release, SunTrust, RBC Capital Markets, and CitiGroup all downgraded FRTA shares to “Neutral”. FRTA’s Relative Strength Index (RSI) now sits at 12.43. Traders normally believe that a figure below 20 is usually a sign of an “oversold” condition.

The May earnings release of their Q1 2017 figures has spawned several law firms alleging securities violations. Class action lawsuits appear to be in the process of being filed, and clients being sought.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance

Corium International Inc. (NASDAQ:CORI)’s Complex Donepezil Development Offsets Q2 Net Loss Concerns

Corium International Inc. (NASDAQ:CORI)

The uptrend on Corium International Inc. (NASDAQ:CORI) stock continues even after the commercial stage biopharmaceutical company booked a wider than expected net loss for Q2 2017. The company says it generated a net loss of (-$11) million or (-$0.42) a share, compared to a net loss of (-$10.5) million posted last year same quarter. Net loss for the six months ended March 31, 2017, totaled (-$21.5) million compared to a net loss of (-$19.9) million a year ago.

Q2 Financial Results

Revenues in the quarter totaled $7.3 million compared to revenues of $7 million the prior year. The company attributes the increase to increased activities supporting Agile’s NDA for Twirla. For the six months ending March 31, 2017, Corium booked revenues of $14.3 million compared to $14.5 million last year same period.

Research and development expenses in Q2 totaled $10.3 million compared to $8.4 million in Q2 2016. The biopharmaceutical company attributes the increase to ongoing investments in proprietary product programs such as the advancement of the Complex Donepezil. General and administrative expenses remained flat in the quarter coming in at $3 million.

Corporate Highlights

Fuelling a bullish momentum on the stock is the robust product pipeline of Corium International Inc. (NASDAQ:CORI). During the quarter the company reported positive preliminary results from its bioequivalence study for Complex Donepliz. The study showed that the drug candidate was well tolerated with favorable adhesion and skin safety as a transdermal therapeutic for Alzheimer’s disease.

“The second quarter was an especially productive one for Corium, culminating in the recent clinical success of our proprietary Complex Donepezil product candidate. With that data now in hand, we have increased confidence in our ability to bring this important new therapeutic option to Alzheimer’s patients and their caregiver,” said Peter D. Staple, President and Chief Executive Officer of Corium. “

During the quarter the biopharmaceutical company inked a new commercial supply agreement with Procter & Gamble (NYSE:PG). The agreement means Corium International Inc. (NASDAQ:CORI) will continue to be Procter & Gamble’s sole supplier of oral care products until March 31, 2022. The company also expanded the breadth of its partnership with Mayne Pharma which will allow them to collaborate on generic transdermal products.

Corium International Inc. (NASDAQ:CORI) is one of the top performers in the biopharmaceutical space having continued to power high in the market over the past 12 months. The stock is currently trading at highs of $6.85 a share compared to the $3.60 a share range a year ago.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

Pixelworks, Inc. (NASDAQ:PXLW) To Acquire ViXS Systems In All Stock Transaction

Pixelworks, Inc. (NASDAQ:PXLW)

Pixelworks, Inc. (NASDAQ:PXLW) has signed a definitive agreement that paves the way for it to complete the acquisition of media processing and transcoding solutions provider ViXS Systems. The company has agreed to buy all outstanding common shares of the Toronto-based company in an all-stock transaction valued at $20.2 million.

Pixelworks-ViXS Merger

The all-stock transaction consists of 3.7 million shares of Pixelworks, Inc. (NASDAQ:PXLW) common stock. Each common share of ViXS is to be exchanged for $0.04836 of a share of Pixelworks common stock. Based on a 60-day trailing average stock price, the transaction represents a 47% premium.

The transaction is still subject to a number of closing conditions including approval by an Ontario Superior Court Justice. ViXS shareholders will also have to unanimously approve the deal in an upcoming vote.

ViXS is to hold an annual special meeting of shareholders on July 28, 2017, to deliberate on the merger and vote. The board of directors of the two companies have already given the green light for the merger to proceed.

Merger Expectations

Pixelworks, Inc. (NASDAQ:PXLW) is acquiring ViXS as part of an effort to strengthen its current patent portfolio with the addition of 470 issued and pending patents worldwide. The transaction should also give the company access to new product offerings that should further diversify its revenue base and target market. The company is also planning to advance ViXS industry Leading Cord Cutter Platform that seeks to address the needs of people viewing broadcast video and content.

Pixelworks, Inc. (NASDAQ:PXLW) president and chief executive officer, Todd DeBonis, expects the deal to deliver meaningful value to shareholders as well as the two company’s customers. The transaction is expected to be accretive to Pixelworks full year 2018 earnings.

“Today’s announced acquisition of ViXS represents a unique opportunity to strengthen our position as a known technology leader with extensive visual and video processing expertise. In addition to adding highly complementary technology and product offerings, the transaction is expected to provide the potential to meaningfully accelerate the development of comprehensive end-to-end video streaming solutions, “said Mr. DeBonis

ViXS CEO, Sohali Khan, on the other and expects the deal to present a compelling growth opportunity as they target greater scale and market penetration. By merging with Pixelworks the company is also looking towards gaining access to world-class engineering and technology much needed to monetize industry evading innovation.

Pixelworks, Inc. (NASDAQ:PXLW) stock was down by 6.8% in Friday trading session ending the week at $5.48 a share.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Merus Labs International Inc. (USA) (NASDAQ:MSLI) Soars On Norgine Acquisition Bid

Merus Labs International Inc. (USA) (NASDAQ:MSLI)

Merus Labs International Inc. (USA) (NASDAQ:MSLI) continues to trade higher in the market after having agreed to be acquired by European drug maker Norgine. The cash and stock offer values the company at $165 million. Norgine is a privately owned specialty drug company based in the Netherlands.

Norgine Acquires Merus Labs

Norgine has agreed to pay $1.65 per share in cash, representing a 63.4% premium to Merus Labs closing price as of May 10, 2017. The two company’s board of directors have already approved the all-stock transaction. However, the deal is still subject to court approval with holders of Merus Lab common shares also needing a vote to approve the deal.

The deal is also subject to customary closing conditions including regulatory approvals. Merus Labs International Inc. (USA) (NASDAQ:MSLI) expects the deal to close by September 30, 2017.

The European drug company expects the transaction to further strengthen its position as the go-to specialist Pharma, given Merus Lab’s vast platform of established products.

“After a comprehensive review of strategic alternatives, and consultation with the company’s financial and legal advisors and the Special Committee of Independent Directors, our Board has unanimously concluded that this transaction is in the best interests of the Company and our stakeholders, “said Merus chairman Michael Cloutier.

Q2 Net Loss

Merus Labs International Inc. (USA) (NASDAQ:MSLI) comes into the deal having faced a string of challenges since the start of the year. Competition has been one of the biggest challenges amidst growing concerns of a bloated balance sheet that forced the company to seek advice from Rothschild.

Merus Labs International Inc. (USA) (NASDAQ:MSLI) is being acquired having posted a net loss of (-$1.2) million in the Q2 2017 for Q2 2017 compared to a net loss of (-$3.4) million for Q2 2016. Net revenues in the quarter totaled $22.6 million from $19.7 million as of Q2 2016.

Merus Labs specializes in acquiring and optimizing legacy products that are well established with predictable cash and good margins. During the second quarter earnings call it reiterated plans to focus on operational effectiveness through sales optimization and expense streamlining.

The company also reiterated plans to pursue new product acquisitions as it seeks to focus on three new core therapeutic categories. It now awaits to be seen if the company will pursue the same or whether Norgine will come up with a new plan.

Merus Labs International Inc. (USA) (NASDAQ:MSLI) stock was up by 6.31% in Friday trading session ending the week at highs of $1.18 a share.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Cemtrex Inc (NASDAQ:CETX) Reports 61% Increase In Q1 2017

Cemtrex Inc (NASDAQ:CETX)

Cemtrex Inc (NASDAQ:CETX) has announced its financial results for the second quarter ended March 31, 2017. Cemtrex Inc Chairman and CEO Saagar Govil noted that the company has had significant growth opportunities this year and beyond, adding that the company is currently making investments in strategic sectors as well as targeting strategic acquisitions. He added that the company’s production portfolio for the rest of the year will be highly determined by consumer behavior. Govila also commented that the company is working on growing its shareholder’s base noting that the current valuation of the company’s stock does not reflect the true progress that has been made.

Cemtrex Inc (NASDAQ:CETX) reported $30.5 million in revenue during the Q2 of fiscal 2017. This represents a 61% increase from the $18.9 million that was reported in Q2 FY 2016. The increase is attributed to the company’s acquisition of Periscope in May last year.   Revenue from industrial products and services in Q2 FY 2017 amounted to $15.3 million representing a 19% increase from what was reported in Q2 FY 2016.   Revenue from electronic manufacturing services in Q2 FY 2017 amounted to $15.2 million representing a 152% increase from the $6 million that was reported in Q2 2016. The increase was mainly boosted by the acquisition of Periscope GmbH which specializes in the manufacture of electronics.

Cemtrex Inc (NASDAQ:CETX)’s gross margin in Q2 FY 2017 was 31% – no change from Q2 FY 2016. The company reported a reduction in operating margin to 2.5% in Q2 FY 2017 compared to 4.7% that was reported in Q2 FY 2016. The decrease is a result of increase in operating expenses to $8.6 million in Q2 FY 2017 from the $4.9 million that was reported in the same period of the previous financial year.  These operating expenses include costs incurred in marketing, sales, and professional services.

Cemtrex Inc (NASDAQ:CETX) reported a net income of $413,468 or $0.04 per share in the second quarter of 2017 compared to the $829,896 or $0.10 per share in net income that was reported in the same period of the previous financial year. The drop is as a result of increase in expenses from sales and marketing activities, one litigation expense, and a loss on disposal of assets.

At the end of the quarter, the company had $15.9 million in cash and cash equivalents and a book value of $3.38 per share.

 

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance

 

 

xG Technology Inc (NASDAQ:XGTI) Guns off of Q1 Results

xG Technology Inc (NASDAQ:XGTI)

There can be no doubt that one of today’s most pressing concerns for corporations and governments is communications integrity. Information is needed quickly, completely, and securely. Enter xG Technology Inc (NASDAQ:XGTI). xG Technology develops and sells software that helps ensure video is transmitted as fast as possible on secure networks. They supply broadcast networks, militaries, and corporations. This is no service that has to prove its demand. Every day the media reports about hackers stealing vital data or even feature movies. Today, xG Technology Inc (NASDAQ:XGTI) released their financials – and the market responded in a big way.

xG Technology Inc (NASDAQ:XGTI) ended Monday’s trading at $1.45. XGTI gapped up to open $1.82 then hit a high of $2.14 before settling around the $2 handle. Bad news for the 13% of the float that was held by short-sellers. Volumes have confirmed the up move – XGTI has a 30-day, daily average volume of 453,500 but over 23 million shares traded hands today. Hopefully some of that was the shorts exiting while licking their wounds. The stock is still trading well below its 52-week high of $4.98 but is well, well off its 52-week lows of $0.25.

xG Technology Inc (NASDAQ:XGTI) is a nano-cap company with only a market-cap of less than $20 million but it had sales of over $6.6 million last year. Today it reported Q1 2017 revenues of $9.3 million – more than all of last year. But they also reported a wider operating loss of (-$5.7) million when last year’s Q1 figure was a loss of only (-$4.6) million. But, and here is where the rubber hits the road, net income attributable to shareholders came in at $8.3 million or $0.087 per share of XGTI. That is quite a turnaround from Q1 2016 when the company reported a net loss of (-$4.4) million or (-$21.42) per share.

Part of the impact on their financials was finalizing the acquisition of Vislink. That deal was done without the need for taking on any additional debt – when was the last time you read about a small firm doing that? That acquisition has contributed to xG Technology’s strategic plan to be a key provider of comprehensive video, broadband and satellite solutions to the broadcast, sports and entertainment, and defense markets. Interestingly, once the Vislink acquisition was complete, their revenues were running at $1 million per week. Most companies can do quite well with that level of revenue. On top of that, they made a move to become leaner by eliminating $3.8 million from their payrolls.

So, at the end of the day, xG Technology Inc (NASDAQ:XGTI) is operating in a hot market that likely will continue expanding as bad guys get more sophisticated. Add onto that the management’s ability to turn their revenues into shareholder value. Those two noteworthy items would check off a lot of boxes for most investors. However, don’t forget that this is a volatile industry that relies on a lot of intellectual property. What is hot today can be eclipsed by a better idea in the future. MySpace comes to mind…

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

FitBit Reports

Fitbit Inc (NYSE:FIT)

Reports on Fitbit Inc (NYSE:FIT) have lately been a mixed bag. The company posted an expected loss figure for Q1 2017 but revenues beat street expectations. On the other hand, new research indicates that the company is losing market share to behemoth Apple (AAPL) at an increasing rate. The Thursday earnings announcement sent shares gapping up to open Thursday’s trading session, but since those morning trades FIT shares have slid backwards, but are still around 8% above Wednesday’s close.

On Thursday morning, Fitbit Inc (NYSE:FIT) announced a per share loss of (-$0.27) for a total net loss of $60.1 million – which was in line with analyst expectations. The company did surprise the street by beating revenue expectations by around $12.5 million. However, revenues told the larger story. Q1 2017 revenues came in at $298.9 million. Compare that figure with Q1 2016’s revenue of $505.4 million which represents a YoY loss of over 40%. On the earning’s conference call, Fitbit management highlighted some cost efficiency and cutting-measures that they hope will filter through to the bottom line. These efforts will be in the form of a realignment into two core business units – Consumer Health & Fitness (CHF), and Enterprise Health. CHF will focus on delivering a higher quality device that offers premium software and services. Enterprise Health will focus on developing and forming tighter relationships with companies, their employees, insurance companies, healthcare systems, and healthcare partners. However, in spite of these efforts, many observers believe that a revenue growth rate that is continuously trending negative will be hard to overcome.

Competition leads the list of investor worries over the future of Fitbit Inc (NYSE:FIT). Strategy analytics, a research firm, released a report on Thursday claiming that Apple captured the #1 position in the sector’s market share with 15.9%. Xiaomi, a Chinese product, was #2 with 15.5%, and Fitbit was #3 with 13.2%. In Q1 2016 Fitbit Inc (NYSE:FIT) held the #1 spot with 24.7%. Apple’s growth is primarily due to the sales growth of the Apple Watch which reportedly doubled shipments and sales YoY. Fitbit Inc (NYSE:FIT) is working on a smartwatch that would go head-to-head with Apple’s offering. While few believe that Fitbit can beat Apple at the smartwatch game, it is conceivable that a more cost sensitive offering could gain some sustainable market share.

Analysts are indecisive about the future of Fitbit Inc (NYSE:FIT). Two firms that follow the company give FIT shares a “Strong Buy” rating and two give the shares a “Buy” rating. However a whopping 13 give FIT shares a “Hold” rating while just one rates FIT as a “Hold”. One noteworthy observance is that in Q4 of 2016, a total of nine firms downgraded FIT shares while just one upgraded the shares. YTD Fit shares are down 16%, while they are down over 55% for the year. The company does have an unusually large short position going against it – fully 37.5% of its shares, as represented by the float, are being borrowed for short selling.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.