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%

ZAIS Group Holdings, Inc. (NASDAQ:ZAIS) Receiving Lots of Attention from Traders

ZAIS Group Holdings, Inc. (NASDAQ:ZAIS)

Trader chat forums are very active regarding the volumes and price action of ZAIS Group Holdings, Inc. (NASDAQ:AGEN). Average daily volumes are listed around 110k, but so far ZAIS shares have traded hands over 10 million times. Shares closed Monday at $2.05 and are now trading in the $3.70 handle – a gain of over 80%.

ZAIS Group Holdings, Inc. (NASDAQ:ZAIS) based in Red Bank, New Jersey, provides investment advisory and asset management services focusing on specialized credit strategies. ZAIS Group Holdings Inc. (NASDAQ:ZAIS) has approximately $3.949 billion of assets under management across both corporate credit and mortgage-related structured credit strategies.

In November, ZAIS Group Holdings, Inc. (NASDAQ:ZAIS) reported their earnings. Gross margins narrowed from 104.84% to 99.18% compared to the same period last year, operating (EBITDA) margins gained from 14.22% from -96.77%. Year-on-year change in operating cash flow of -1,986.51% is about the same as the change in earnings.

In 2015 ZAIS Group Holdings, Inc. (NASDAQ:ZAIS) reported an EPS loss of $1.26 on sales of $23.2 million. In 2014 sales were reported at $216.9 million. No analysts cover ZAIS.

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.

2/14/2017
Ticker Symbol ZAIS
Last Price a/o 11:04 AM EST  $                      3.62
Average Volume                    111,400
Market Cap (mlns)  $                    27.61
Sales (mlns) $15.80
Shares Outstanding (mlns) 13.47
Share Float (mlns) 12.09
Shortable Yes
Optionable No
Inside Ownership 3.50%
Short Float 1.84%
Short Interest Ratio 2
Quarterly Return 12.02%
YTD Return 39.46%
Year Return -55.53%

Top 10 Nasdaq Sm Cap Shorted Shares – Ending Jan 13, 2017

Week Ending 1/13/2017 – Most Shorted Nasdaq Small Caps

“Float” – Floating stock is calculated by subtracting closely-held shares and restricted stock from a firm’s total outstanding shares.

“Short Float” – the number of shorted shares divided by the number of floating shares.

“Short Ratio” – the number of shares that have been sold short and not yet covered – typically expressed as a percentage of the average daily trading volume.

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%