shareholdersunite.com

Opportunities in smallcaps

shareholdersunite.com header image 4

Entries from September 2019

Texas Pacific Land Set To Rise Further

September 18th, 2019 · No Comments

After a spectacular share price rise on the back of the Permian shale revolution, the shares entered into a large consolidation phase. While Permian shale production seems to rise unabated, the oil price does have a considerable correlation with the share price. With the truce in the proxy fight and the return of the risk […]

[Read more →]

Tags: TPL

Fabrinet Will Be Range-Bound

September 18th, 2019 · No Comments

The company is a leading contract manufacturer and well placed to benefit from the optical communications build-out. However, temporary headwinds from industrial lasers and Huawei will lead to a couple of softer quarters. A solid market position, good cash flow, a stellar balance sheet and ramping sales to Infinera will keep the downside limited. Source: […]

[Read more →]

Tags: FN

Brexit Exhaustion Brings A Binary Event And A Long Straddle Option Strategy Into Focus

September 16th, 2019 · No Comments

Brexit exhaustion led the new PM Boris Johnson to force the issue, but his efforts resulted in a backlash complicating things once again. Part of the collateral damage is that the Ulster DUP is no longer necessary to prop up the Johnson government, which has opened up the perspective of a negotiated exit. This is […]

[Read more →]

Tags: currencies · Economy

A Challenging Year For Silicon Motion, But Things Should Improve From Here

September 16th, 2019 · No Comments

The company has a difficult year, mostly due to its Shannon SSDs which were caught by NAND price declines and a technology shift, leading to a sharp decline in sales. It also led to a substantial ($5M) inventory write-off and an upcoming impairment charge for intangibles. Management argues that better times are ahead, the shares […]

[Read more →]

Tags: SIMO

Napco Security Technologies Selloff Offers An Opportunity

September 13th, 2019 · No Comments

The shares sold off big-time after Q4 results which looks more like profit taking than anything really disappointing. The company’s new products provide even more opportunities to boost its high-margin, fast growing recurring revenues. School security is an another obvious growth driver. The company benefits from operational leverage and we see no objections to higher […]

[Read more →]

Tags: NSSC

The Rubicon Project Has Further To Go

September 12th, 2019 · No Comments

Our earlier turn-around thesis has played out with the shares more than doubling in a year. Tailwinds from programmatic, video and audio, and new features like Supply Path Optimization and Demand Manager will keep growth going. We are quite impressed with management which is highly adept at introducing new features which give the company a […]

[Read more →]

Tags: RUBI

SaaS Day Of Reckoning

September 11th, 2019 · No Comments

There seems to be a mass rotation out of high valued growth companies, in particular those which largely depend on SaaS business models. These rotations usually last longer than just a day so we would not jump in with all guns blazing just yet. However, we do think there are at least three or four […]

[Read more →]

Tags: AYX · PAYS · YEXT

RumbleON’s Binary Experiment

September 11th, 2019 · No Comments

This is a high-risk stock that isn’t for the faint-hearted, and the share price has sunk to new lows. However, the company’s data driven asset light business model is very intriguing and potentially very profitable. There are some data points that show it might be working as the company boasts industry high GPUs and management […]

[Read more →]

Tags: RMBL

Livongo Health Will Recover From The Sell-Off

September 9th, 2019 · No Comments

The shares of Livongo Health are way down from their post-IPO highs a couple of months ago. There was another leg down after the Q2 results came out with somewhat disappointing guidance. We see a longer-term opportunity for a recovery as the platform has unique properties. Source: Livongo Health Will Recover From The Sell-Off – […]

[Read more →]

Tags: LVGO

LiveRamp Shares Are On Sale

September 6th, 2019 · No Comments

Despite revenue and earnings beat in Q1, the share price is rather soft. There are some data points that are a bit soft, but apart from the fall in gross margins, these should be rather minor and temporary. The bigger picture is that this is a unique company, the shares of which are now really […]

[Read more →]

Tags: RAMP