Internap Corporation (NASDAQ:INAP) Why it Popped

Internap Corporation (NASDAQ:INAP)

Internap Corporation (NASDAQ:INAP) were up over 150% in early trading on over 10 times their pro-rated average daily volumes. The catalyst was an announcement of a private placement of approximately 23.8 million shares of its common stock at a price of $1.81 per share, for aggregate gross proceeds of approximately $43 million. Internap plans to use the funds, partly, to help pay down its debt.

Peter D. Aquino, President and Chief Executive Officer of Internap Corporation (NASDAQ:INAP) stated “The speed with which our new team is moving to right-size our business and invest in sales and marketing to capture strong market demand for Colocation and Cloud services is impressive.  The next steps in the 2017 transformation of the new INAP is to approach the market as two pure plays, complete our debt refinancing, and begin to consider strategic opportunities to bolster our organic growth.”

Atlanta, GA-based Internap Corporation (NASDAQ:INAP) provides internet infrastructure through both Colocation Business and Enterprise Services, and Cloud, Bare-Metal Servers, and SMB iWeb platforms. INAP’s global high-capacity network connects 15 company-controlled Tier 3-type data centers in major markets in North America, 34 wholesale partnered facilities, and points of presence in 26 central business districts around the world.

Investor confidence was also buoyed by guidance provided today. Internap Corporation (NASDAQ:INAP) affirmed guidance for 2016 – revenue of $297 million to $300 million, adjusted EBITDA of $81 million to $83 million, and capital expenditures of $47 million to $50 million. Guidance for 2017 was revenue of $275 million to $285 million, adjusted EBITDA of $84 million to $87 million and capital expenditures of approximately $42 million.

Sales for Internap Corporation (NASDAQ:INAP)trended up from 2011 ($244.6 million) to 2014 ($335 million) but in 2016 the company posted a lower sales figure of $318.3 million. There has been no break in the EPS trend – it has been downward. In 2011 the company posted an EPS loss of $0.03) and in 2015 the loss expanded to $0.93. Six firms follow Internap Corporation (NASDAQ:INAP). Two rate INAP as a “Strong Buy”, one rates the shares a “Buy” and three rate INAP as a “Hold”.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 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.

2/22/2017
Ticker Symbol INAP
Last Price a/o 11:15 AM EST  $                      2.50
Average Volume                    830,250
Market Cap (mlns)  $                  104.22
Sales (mlns) $302.90
Shares Outstanding (mlns) 57.58
Share Float (mlns) 54.99
Shortable Yes
Optionable Yes
Inside Ownership 4.20%
Short Float 5.91%
Short Interest Ratio 3.91
Quarterly Return 67.59%
YTD Return 17.53%
Year Return -9.50%

Aehr Test Systems (NASD:AEHR) How Long Can This Last?

Aehr Test Systems (NASD:AEHR)

Aehr Test Systems (NASD:AEHR), a global supplier of semiconductor test and burn-in equipment, today announced that it has received an order in excess of $4 million from a subcontractor to its lead customer for the FOX-XP Test and Burn-in System. Shares responded to the news by gaining over 20% and closing at $4.99. Volumes were heavy – over five times the average daily volume exchanged hands. This recent order comes less than a month after another order sent AEHR shares soaring 37.5%.

Gayn Erickson, President and CEO of Aehr Test Systems, commented, “We have been working closely with the end customer of this application for more than a year and are very excited to receive this first system order. We expect that this application will drive incremental capacity in the near term and over the next year or two. This order is further endorsement of our unique test and burn in technology and represents our second major customer for the FOX-XP Test and Burn-in System for a high-volume manufacturing application.”

While trading saw shares of Aehr Test Systems (NASD:AEHR) close at close to $5, earlier this year the stock was trading below $2.50 – so the stock has essentially doubled in less than a month. For the year, Aehr Test Systems (NASD:AEHR) has tripled in value. The catalyst is easy to see. In 2016 Aehr Test Systems (NASD:AEHR) posted sales of $14.5 million. Less than 60 days into the new year, the company already can be seen to achieve at least half of their 2016 sales figures.

Only one firm follows Aehr Test Systems (NASD:AEHR) and they rate the shares as a “Strong Buy”.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

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.

2/21/2017
Ticker Symbol AEHR
Last Price a/o 5:47 PM EST  $                      4.65
Average Volume                    254,900
Market Cap (mlns)  $                    81.84
Sales (mlns) $12.80
Shares Outstanding (mlns) 16.4
Share Float (mlns) 14.13
Shortable Yes
Optionable No
Inside Ownership 3.40%
Short Float 0.96%
Short Interest Ratio 0.53
Quarterly Return 64.14%
YTD Return 107.05%
Year Return 309.02%

Arista Networks, Inc. (NYSE:ANET) Fails to Buck Trend

Arista Networks, Inc. (NYSE:ANET)

Arista Networks, Inc. (NYSE:ANET) closed Thursday at $100.17 and gapped up to open at $111.00. ANET hit a high of $119.45 before retreating back down to $117.34 at 3:15 PM EST. Volumes were eight times the average daily volume. The catalyst was the release of Q4 earnings which showed marked improvement.

Santa Clara, CA-based Arista Networks, Inc. (NYSE:ANET) develops and commercializes cloud networking solutions globally. The networking solutions include operating systems, network applications, and gigabit Ethernet switches. It also offers technical support services. Its customers include internet companies, service providers, financial services organizations, government agencies, media, and entertainment companies. Arista Networks, Inc. (NYSE:ANET) markets its products through its own direct sales force and augments their efforts through distributors, value-added resellers, systems integrators, and original equipment manufacturer partners.

Arista Networks, Inc. (NYSE:ANET) 4th quarter results included revenue of $328.0 million, an increase of 33.6% compared to the fourth quarter of 2015, and an increase of 13.0% from the third quarter of 2016. Non-GAAP net income of $77.5 million, or $1.04 per diluted share (average street estimates were $0.80), compared to non-GAAP net income of $57.5 million, or $0.80 per diluted share, in the fourth quarter of 2015. Year-end results included revenue of $1.1 billion, an increase of 34.8% compared to fiscal year 2015 and non-GAAP net income of $241.4 million or $3.30 per diluted share, compared to non-GAAP net income of $174.2 million, or $2.44 per diluted share, in fiscal year 2015. Arista Networks, Inc. (NYSE:ANET) gave Q1 2017 revenue guidance between $320-$330 million well above expectations of $305 million.

The positive earnings report continues the trend. Arista Networks, Inc. (NYSE:ANET) sales were $139.8 in 2011 and continued to increase yearly – in 2015 the company posted sales of $837.6 million. In 2012 EPS for ANET shareholders was $0.39 and that figure increased annually – in 2015 Arista Networks, Inc. (NYSE:ANET) posted an EPS of $1.81.

Arista Networks, Inc. (NYSE:ANET) is followed by eighteen firms. Nine rate ANET shares as a “Strong Buy”, one each rates the shares a “Buy” and an “Underperform”, and the remaining seven rate the shares a “Hold”. Their consensus price target is $100 – well below current trading levels.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/17/2017
Ticker Symbol ANET
Last Price a/o 3:21 PM EST  $                  117.38
Average Volume                    728,800
Market Cap (mlns)  $              6,960.00
Sales (mlns) $1,050.00
Shares Outstanding (mlns) 69.52
Share Float (mlns) 43.63
Shortable Yes
Optionable Yes
Inside Ownership 0.40%
Short Float 9.41%
Short Interest Ratio 5.63
Quarterly Return 14.10%
YTD Return 3.51%
Year Return 72.26%

Energous Corporation (Nasdaq:WATT) Faces Uncertainty with Apple iPhone

Energous Corporation (Nasdaq: WATT)

In January of 2017, the U.S. Patent Office rejected a patent challenge and shares of Energous Corporation (Nasdaq:WATT) rocketed – shortly reaching all-time highs. Today the shares are down over 8% on news that the newest Apple  Inc. (NASDAQ:AAPL) may include wireless recharching in a future iPhone model utilizing a chip solution developed by Broadcom Limited (NASDAQ:AVGO) and dealing a potential blow to future Energous sales.

Energous Corporation (Nasdaq:WATT)is the developer of WattUp®—a wire-free charging technology that Energous hopes will transform the way consumers and industries charge and power electronic devices at home, in the office, in the car and beyond. WattUp is a radio frequency (RF) based charging solution that delivers intelligent, scalable power via radio bands, similar to a Wi-Fi router. WattUp differs from other wireless charging systems in that it delivers power at a distance, to multiple devices – thus resulting in a wire-free experience that saves users from having to plug in their devices.

Energous Corporation (Nasdaq:WATT)closed yesterday at $16.78 and gapped down to open at $15.12 on double the normal daily average volumes. Broadcom Limited (NASDAQ:AVGO), an $83 billion company, ended yesterday at $208.18 and gapped up to open at $209.00 – currently AVGO is trading up about 1% on average volumes.

The unknow factor, and key issue, is Apple’s perception of the risks involved with wireless charging given the issues that Samsung has experienced.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

 

FireEye, Inc. (NASDAQ:FEYE) Why the Jury is Still Out

FireEye, Inc. (NASDAQ:FEYE)

Yesterday a financial analyst published a report on why he believed FireEye, Inc. (NASDAQ:FEYE) would no longer enjoy its past growth rates. Today investors have responded by pushing up shares over 3% amidst heavy volumes. In August, 2016 FEYE shares were trading above $18 and the downtrend started. A couple of weeks ago FEYE shares were rocked and closed down over 16% due to disappointing revenue numbers and the exit of several key management. Since then FireEye, Inc. (NASDAQ:FEYE) has been making a slow steady comeback.

FireEye, Inc. (NASDAQ:FEYE) was the first company to get certified by the Department of Homeland Security. It develops and operates cloud based cyber-security for companies. FireEye has been consulted on high profile database breeches and phishing scams of well know companies such as Netflix, JP Morgan Chase, Sony, and Target.

Some analysts point to the disappointing revenue numbers when forecasting FireEye, Inc.’s demise as a growth stock. Revenue, gross profit, and margin growth were all flat, but other investors point to a reduction in their operating loss from $123.5 million to a more narrow loss of $49.06 million as a sign of optimism. Another factor that needs to be accounted for is the lack of leadership due to the departures of several top executives.

Sales have trended up since 2012 when FireEye, Inc. (NASDAQ:FEYE) posted a figure of $83.3 million. In 2016 the sales figure was $714.1 million. EPS has never enjoyed similar growth. Shareholders of FEYE had a $3.28 EPS loss in 2012. The next several years never saw FireEye, Inc. (NASDAQ:FEYE) post a positive EPS number and the loss was $2.94 for 2016.

Twenty three firms follow FireEye, Inc. (NASDAQ:FEYE). Seventeen assign the shares a rating of “Hold” and six rate FEYE shares as a “Strong Buy”. FEYE has a large amount of short-sellers and investors should be prepared to accept some volatility as the future becomes more clear for the firm.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/17/2017
Ticker Symbol FEYE
Last Price a/o 1:14 PM EST  $                    11.78
Average Volume                4,580,000
Market Cap (mlns)  $              1,910.00
Sales (mlns) $714.10
Shares Outstanding (mlns) 168.12
Share Float (mlns) 154.1
Shortable Yes
Optionable Yes
Inside Ownership 4.50%
Short Float 13.20%
Short Interest Ratio 4.44
Quarterly Return -19.62%
YTD Return -4.62%
Year Return -15.74%

Superconductor Technologies Inc. (Nasdaq:SCON) Experiencing Massive Volumes

Superconductor Technologies Inc. (Nasdaq:SCON)

Shares of Austin, TX-based Superconductor Technologies Inc. (Nasdaq:SCON) are up over 30% on over 65 times normal average daily volumes. In November, Superconductor Technologies Inc. (Nasdaq:SCON) shares skyrocketed when the company was awarded $4.5 million for its Next Generation Electric Machines program by the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy. Superconductor Technologies Inc. (Nasdaq:SCON) is developing and producing High Temperature Superconductor, or HTS, wire that bears the potential to revolutionize the electric power industry.

Yesterday, Superconductor Technologies Inc. (Nasdaq:SCON) was awarded a U.S. Patent enabled by STI’s superconducting wire manufacturing method. This patented process improves Conductus wire’s performance in the presence of a strong magnetic field. The properties of HTS allow wire to conduct electricity more efficiently from traditional copper wire through cooling power transmission to “critical” temperatures. Superconductor Tech markets its patented HTS technology under the brand name Conductus. HTS has the potential to revolutionize the Smart Grid market of generating and transmitting electricity in the United States.

Jeff Quiram, STI’s President and CEO stated in a press release “This new patent protects the foundation from which we will build high performance wire for our customers. The flexibility provided by our proprietary manufacturing process enables STI to build superconducting wire in very unique ways.”

Sales have declined YoY for Superconductor Technologies Inc. (Nasdaq:SCON). In 2011 and 2012 reported sales were $3.5 million. However, shareholders have seen steady improvement in earnings per share. In 2011, there was a loss of $75.69, followed by narrower losses and in 2015 the loss was $6.55.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/16/2017
Ticker Symbol SCON
Last Price a/o 10:23 AM EST  $                      1.48
Average Volume                1,250,000
Market Cap (mlns)  $                      5.91
Sales (mlns) $0.10
Shares Outstanding (mlns) 5.14
Share Float (mlns) 4.37
Shortable Yes
Optionable No
Inside Ownership 3.10%
Short Float 14.41%
Short Interest Ratio 0.5
Quarterly Return -9.29%
YTD Return -6.50%
Year Return -61.67%

Castlight Health, Inc. (NASDAQ:CSLT) Reports Earnings and Talks About Acquisiton

Castlight Health, Inc. (NASDAQ:CSLT)

Castlight Health, Inc. (NASDAQ:CSLT) reported 4th quarter and year end results after regular trading had ended. CSLT hares were up 8% despite reporting a $9.1 million loss for the 4th quarter. The San Francisco, CA-based company reported total revenue for the fourth quarter of 2016 was $29.9 million, an increase of 40% from the fourth quarter of 2015. Gross margin for the fourth quarter of 2016 was 71.9%, compared to a gross margin of 54.7% in the fourth quarter of 2015. Total revenue for 2016 was $101.7 million, an increase of 35% from 2015. Net loss per basic and diluted share was $0.58 in 2016, compared to a net loss per basic and diluted share of $0.85 in 2015.

Castlight Health, Inc. (NASDAQ:CSLT) is reiterating the guidance ranges it provided in its January 4, 2017 press release announcing it’s acquisition of Jiff. The combined company is expected to generate approximately $138 to $142 million in pro forma non-GAAP revenue for the full year 2017. The high-end of this range assumes that Castlight Health, Inc. (NASDAQ:CSLT) contributes $123 million and Jiff contributes $19 million. This would represent pro forma growth of approximately 27% to 30% for the combined company, as compared to pro forma revenue of approximately $109 million for the full year 2016.

Castlight Health, Inc. (NASDAQ:CSLT) provides software products enable employees to make health care decisions, and to communicate and measure their benefit programs. Castlight Health, Inc. (NASDAQ:CSLT) also offers communication and engagement, implementation, and customer support services. It serves customers in a range of industries, including education, manufacturing, retail, technology, and government.

Castlight Health, Inc. (NASDAQ:CSLT) sales have been rising since 2011 when it posted a figure of $$1.9 million and in 2015 the figure improved to $75.3 million. CSLT shareholder have not experienced the same growth. An EPS loss of $0.23 in 2011 increased to a loss of $1.16 before narrowing to a $0.85 loss in 2015. Castlight Health, Inc. (NASDAQ:CSLT) is followed by six firms. Two rate CSLT shares a “Strong Buy” and four rate the shares as a “Hold”. Their consensus price target is $4.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/15/2017
Ticker Symbol CSLT
Last Price a/o 7:32 PM EST  $                      3.40
Average Volume                    364,500
Market Cap (mlns)  $                  331.73
Sales (mlns) $93.10
Shares Outstanding (mlns) 105.31
Share Float (mlns) 48.86
Shortable Yes
Optionable Yes
Inside Ownership 0.40%
Short Float 6.88%
Short Interest Ratio 9.23
Quarterly Return -36.36%
YTD Return -36.36%
Year Return -5.41%

Control4 Corporation (NASDAQ:CTRL) Has Had Quite a Nice Rally

Control4 Corporation (NASDAQ:CTRL)

Control4 Corporation (NASDAQ:CTRL) shares continue to move higher on the back of last Friday’s financial release. On Thursday, CTRL closed at $11.57 then Control4 Corporation released their quarterly financials and CTRL shares reached a high of $14.22. Today CTRL shares reached $15.81 – that represents a gain of over 35% from Thursday’s close. CTRL shares are up 13% so far in today’s trading.

Control4 Corporation (NASDAQ:CTRL) develops and commercializes products that turn your house into a smart home. They provide devices that connect your home’s music, video, lighting, temperature, communications, and home protection systems. Imagine the operating system of your computer – just as it serves as the broad platform to run many programs, Control4’s software performs the same functionality to your home’s systems.

4th quarter financial results were better than expected. Revenue was $57.4 million – a 34% YoY increase and above street estimates of $54.5 million. Adjusted EPS for CTRL was $0.31 besting last year’s same quarter which came in at $0.07 and above street estimates of $0.24.

Control4 Corporation (NASDAQ:CTRL), based in Salt Lake City, UT, has almost 5,000 retailers and distributors in 91 countries. In a call to shareholders, Control4 management stated that it believes it has penetrated 1.4% of the U.S. market for households with an annual income over $150,000.

Sales for Control4 Corporation (NASDAQ:CTRL) have steadily increased since 2012 when the company posted a figure of $109.5 million. In 2016 the company posted sales of $208.8 million. CTRL EPS has not been as bright for shareholders. Last year CTRL EPS was $0.55 which was better than the 2014 loss of $0.07 but only marginally better than the prior two years’ profits which were $0.33 and $0.34 respectively.

Five firms have analysts covering Control4 Corporation (NASDAQ:CTRL). Four rate CTRL as a “Hold” and one rates the shares a “Buy”.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

 

Update – MySize, Inc. (Nasdaq: MYSZ) Doubles in Inter-Day Trading!

My Size, Inc. – Nasdaq: MYSZ

UPDATE 12:57 PM EST – NASDAQ:MYSZ shares have gained over 100% on very heavy volumes. The Israeli-based APP company ended Friday’s trading at $3.85 and has reached a high today of $10.90 before setting back to just under $8.

SNU’s original article published before the opening bell today:

Israeli-based My Size Inc. (Nasdaq: MYSZ) is a novel approach to a problem shares by both consumers and online retailers – accurate measurements. My Size Inc. (Nasdaq: MYSZ) is the developer and owner of MySizeID and SizeUp DIY. While shopping online, the founders were frustrated with the “hit or miss” fit of different brands, and this frustration was augmented by the return process – a frustration not only shared by online retailers but also monetized in their operational expenses.

MySizeId lets consumers use their smartphone APP to create a secure, online profile of their personal measurements, which can then be utilized with partnered online retailers to ensure that no matter the manufacturer or size chart, they will always get the right fit. For online retailers, MySizeID offers a solution that can potentially reduce returns from online purchases, which will in turn, increase margins and ultimately result in higher brand loyalty.

SizeUp DIY is a smartphone APP that allows the user to use their smartphone to measure across any flat surface. The new technology enables users to instantly and accurately measure just about any object, flat surfaced or otherwise, by moving their Smartphone, in the air, from the starting point to the end-point of an object. Measurements can be taken in either inches or centimeters.

My Size Inc. (Nasdaq: MYSZ) started trading in 2016, but MYSZ shares have seen virtually no real volume until recently – less than 150,000 shares traded so far in February. Last week, MYSZ fell from $5.12 to $4.46 and Friday MYSZ closed at $3.85. Given the light volume and the price action, this could represent a real opportunity for investors that want in early on a stock that could impact an entire consumer sector and that solves a real issue for both consumers and online retailers.

Reports place five-year growth estimates for My Size Inc. (Nasdaq: MYSZ) at 25% which is considered impressive in an industry that some calculate has a growth estimate of less than 1%.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS) Announces Deal and Shares Jump

Kratos Defense & Security Solutions, Inc. Nasdaq: KTOS

Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading national security solutions provider, announced today that the Cyprus Telecommunications Authority (Cyta), a major international telecommunications hub in the Eastern Mediterranean, has selected Kratos’ end-to-end network management suite of products to support its expanding satellite ground operations. The news, released after the regular trading session, sent KTOS shares up over 7% on moderate volumes.

There have been critics of Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS) and they let it be known that they believed KTOS was a screaming short play – that the firm was destined to go into insolvency. However, the market shrugged off those predictions and KTOS shares have been rising since. Then, last week, Jim Cramer of CNBC specifically names Kratos Defense & Security Solutions, Inc. as one of his picks to benefit from any uptick in defense spending.

Kratos Defense & Security Solutions, Inc. (KTOS) is a mid-tier government contractor at the forefront of the Department of Defense’s Third Offset Strategy. Kratos is a leading technology, intellectual property and proprietary product and solution company focused on the United States and its allies’ national security.  Kratos is considered by some to be an industry leader in high performance unmanned aerial drone target systems used to test weapon systems and to train the warfighter, and is a provider of high performance unmanned combat aerial systems for force multiplication and amplification.  Kratos is also an industry leader in satellite communications, microwave electronics, cyber security/warfare, missile defense and combat systems.  Kratos has primarily an engineering and technically oriented work force of approximately 2,800. Substantially all of Kratos’ work is performed on a military base, in a secure facility or at a critical infrastructure location. Kratos’ primary end customers are National Security related agencies.

Kratos Defense & Security Solutions, Inc. (KTOS) sales have been on the decline since they posted a figure of $969.2 million in 2012. In 2015 that figure was just $657.1 million. KTOS shareholders have not experienced positive earnings since 2011 when the loss was $0.86/share and in 2015 the company posted a loss of $0.57/share. Five firms follow Kratos Defense & Security Solutions, Inc. (KTOS). Four analysts rate KTOS shares as a “Strong Buy” and one rates the shares as a “Hold”. Their consensus price target is $9.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/11/2017
Ticker Symbol KTOS
Last Price a/o 7:59 PM EST  $                      9.08
Average Volume                    973,900
Market Cap (mlns)  $                  618.71
Sales (mlns) $664.10
Shares Outstanding (mlns) 73.22
Share Float (mlns) 70.46
Shortable Yes
Optionable Yes
Inside Ownership 2.40%
Short Float 9.11%
Short Interest Ratio 6.59
Quarterly Return 35.63%
YTD Return 14.19%
Year Return 170.83%