Pure Storage (NYSE: PSTG) – Ready to Burn the Shorts?

Time to Buy Pure Storage Inc.? – Nasdaq ticker: PSTG

Pure Storage, Inc., headquartered in Mountain View, California invented all-flash enterprise storage. It operates primarily in the United States, Europe, and Asia. The company serves cloud-based software and service providers, e-commerce, education, energy, financial services, governments, healthcare, manufacturing, media, retail, and telecommunications sectors.

Recently the website InsiderMonkey.com claimed that PSTG is the #1 stock pick of the hedge fund community. They write “At the end of the third quarter, a total of 17 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 21% from the second quarter of 2016. On the other hand, there were a total of 14 hedge funds with a bullish position in PSTG at the beginning of this year.” Investors should take note, however, that there appears to be large short positions on PSTG.

Over ten Wall St. investment banks provide coverage on Pure Storage Inc. including JP Morgan, Susquehanna, UBS, and Barclay’s. Their current reported ratings range from “Hold” to “Buy” with price targets ranging from $11 to $27. Yesterday, Thursday December 8, 2016, PSTG closed at $12.33.

While PSTG’s historical EPS was negative and falling, their most recently disclosed numbers saw a narrowing of EPS loss – beating street estimates. Pure Storage reported its Q3 earnings results on Wednesday, November 30th. The company reported a loss of $0.10 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of -$0.15 by $0.05. The company earned $197 million during the quarter, compared to analyst estimates of $192.36 million. Sales have not been a concern for holders of PSTG. In 2014 sales were a reported $$42.7 million growing to over $440 million in 2016.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock. The below data is provided without any guarantee of its accuracy.

Ticker Symbol PSTG
Last Price 12/8/2016 2:25 EST  $             12.33
Average Volume 1.1 million
Market Cap 2.4 Billion
Sales $650 million
Shares Outstanding 192.8 million
Share Float 71.3 million
Shortable Yes
Optionable Yes
Inside Ownership
Short Float 23.55%
Short Interest Ratio 14.54
Quarterly Return 1.23%
YTD Return 20.80%
Year Return -29.78%

 

Oil Rig UDW (Nasdaq: ORIG) Set to Regain Former Price Levels?

The incoming Trump administration is believed to want to pursue an “energy independent America” policy. This will mean reversing many Obama-implemented regulations and asking Congress to pass laws that benefit the fossil fuel industry. One small cap Nasdaq stock that may benefit is Ocean Rig UDW LLC.

Ocean Rig UDW LLC, trading under Nasdaq ticker ORIG, is an international offshore drilling contractor providing oilfield services for offshore oil and gas exploration, development, and production drilling, and specializing in the ultra-deepwater and harsh-environment segment of the offshore drilling industry. 

Ocean Rig UDW LLC owns and operates 13 offshore ultra deepwater drilling units, comprising of 2 ultra deepwater semisubmersible drilling rigs and 11 ultra deepwater drillships, two of which are scheduled to be delivered to the Company during 2017 and one in 2018.

However, with the incoming Trump administration and the new OPEC deal designed to regulate output, it may be time to consider another look at this former high-flier. In 2014, ORIG routinely traded over $15 with and EPS of $1.97. ORIG now trades under $2. Sales increased from $700 million in 2011 to $1.82 billion in 2014. In 2015, Ocean Rig UDW LLC reported sales of just $1.75 billion with earnings per share of $0.57.

Zacks research has recently given it a #1 rating based on their proprietary analytics. This is important because no investment bank analysts have yet upgraded their recommendations for ORIG. Should the investment bank analysts follow suit, we may see a price target more than double its current trading price of below $2.00. Prior to OPEC flooding the market ORIG was given price targets around $30 by bank analysts.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock. The below data is provided without any guarantee of its accuracy.

Ticker Symbol ORIG
Price $1.50
Average Volume 2.5 million
Market Cap $146 million
Sales $1.9 Billion
Shares Outstanding 79 million
Share Float 73.5 million
Shortable Yes
Optionable Yes
Inside Ownership unkown
Short Float 15.30%
Short Interest Ratio 4.46
Quarterly Return 139%
YTD Return 14.11%
Year Return 7.50%