3 Tech Stocks That Soared This Week

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3 Tech Stocks That Soared This Week

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Transcript of 3 Tech Stocks That Soared This Week

Page 1: 3 Tech Stocks That Soared This Week

3 Tech Stocks That

Soared This Week

Page 2: 3 Tech Stocks That Soared This Week

These 3 tech tickers beat the market, July 7 – June 11

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Coupons.com rose 2.7 on Monday followed by a 4.7% Tuesday surge, and held firm for the rest of the week.

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The big moves:

• The digital rebates maven’s two large jumps came without any significant news on the company or the stock.

• In fact, analyst firm Goldman Sachs downgraded Coupons to a “sell” rating on Tuesday – but the stock surged anyhow.

• Shares have been trading on very low volume recently, except for a couple of huge trades this week.

• These large trades drove Coupons.com shares higher on Monday and Tuesday.

• That’s a big and anonymous shareholder with a strong appetite for more Coupons.com shares.

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Why the big buy-in? • Coupons.com is a very young stock, having entered the market in a

March 2014 IPO.

• In its short life, the stock has already taken a 45% haircut and climbed all the way back to its first-day closing prices again.

• Investors are still feeling their way around this intriguing new ticker, so a few sudden and largely unexplained moves should be expected.

• The company is not yet profitable, and the stock trades at a blood-curdling 75 times forward earnings estimates. That’s not a recipe for stable trading, either.

• Make sure that you understand the coupon-clipping and digital marketing sectors before owning Coupons.com. This stock will not fit every portfolio.

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BlackBerry rode a bumpy roller coaster this week. Up nearly 7% on Monday, the stock plunged on Tuesday – only to climb back even higher.

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What’s the big idea?

• The early bounce rested on a rosy mobile market report from Gartner.

• The smartphone market may have matured, but volumes are still rising – and tablet sales rise even faster.

• iOS and Android own all of the new growth, but BlackBerry’s “other” segment still has a few relatively healthy years left.

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But wait – there’s more! • BlackBerry also won three coveted Red Dot

design awards on Monday.

• The BlackBerry Z10 handset won one of these trophies last year, followed by the Z30, Q10, and Q5 this time around.

The award-winning BlackBerry Z30 from three angles. Source: BlackBerry.

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Choke, stall, restart.

• The Red Dot announcement may have helped on Monday, but was quickly forgotten.

• However, the brand new BlackBerry Passport handset quickly restarted the stock’s stalled momentum.

• More square than rectangular, this one stands out in the crowd.

• The physical keyboard is supposed to be exceptional, even for a BlackBerry.

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So, should you buy BlackBerry today?

• BlackBerry is not dead yet, and may actually be around for the long haul.

• CEO John Chen is a bit of a visionary, and not afraid of taking significant risks if the payoff looks good.

• However, I’m still not enthusiastic about the stock.

• Chen needs to navigate a deep sea of treacherous waters before pulling this turnaround ashore.

• Did I mention that he’s alright with big risks? Make sure to invest accordingly.

BlackBerry CEO John Chen. Source: BlackBerry.

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Like our other tech stars this week, InvenSense jumped sky-high on Monday.

Like BlackBerry, this stock needed a second wind. Unlike BlackBerry, the second jump also faded.

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InvenSense took the easy way up: • The Apple iPhone 6 is expected to ship with

plenty of InvenSense’s gyroscopes, pressure meters, and other sensors.

• Apple analysts took Cupertino shares 2% higher on Monday, citing huge demand for the as-yet unannounced iPhone update.

• Many Apple suppliers rode that tidbit to strong gains, including InvenSense.

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What’s next for InvenSense? • InvenSense also bought two small software companies this week,

building a more complete package around its motion detection hardware.

• The company wants to outgrow the motion-sensor hardware niche and become an all-around sensor solutions provider.

• So far, the strategy is paying off. InvenSense shares set a 52-week high on Monday, and have gained 50% over the last year.

• Given these impressive gains, some of the weakness at the end of this week probably resulted from profit-taking moves.

• Do keep the company’s nosebleed valuation in mind before buying in. Shares currently trade for 345 times trailing earnings, and cash flows are negative.

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Apple hopes to sell millions of iWatches…

but not without this small-cap components supplier.