SELL: Exponent Inc. (EXPO) | Daily Alert April 23
Updated from WSBD 806, June 20, 2018
Exponent Inc. will be deleted from the 2 for 1 Index next Monday. EXPO has been one of the best companies 2 for 1 has ever had, with over a 31% annualized overall return over 5½ years. It’s been in the index more than the standard 30 months because it split a second time while it was already on the list.
Hopefully, it will split again soon so we can add it back into the index. Exponent is a great company!
Neil Macneale, 2 for 1 Stock Split Newsletter, 2-for-1.com, 408-210-6881, April 2021
*SELL Trimble Inc. (TRMB)
Updated from WSBI 832, August 27, 2020
We are dropping Trimble from the Focus, Buy, and Long-Term Buy lists. The company delivered strong March quarter results and raised its fullyear outlook. But the shares fell on the seemingly strong report, suggesting Trimble fell victim to heightened expectations and market punishing richly valued stocks.
We’re taking our profits and focusing on more attractive opportunities elsewhere. Trimble is being removed from the Monitored List and should be sold.
Richard Moroney, CFA, Dow Theory Forecasts, dowtheory.com, 800-233-5922. May 17, 2021
SELL Fonar Corporation (FONR) (SYM) | Daily Alert April 29
Updated from WSBD 822, October 16, 2019
Unfortunately, the company’s recent string of mixed financial results and concurrent weak quarters has caused the market to lose confidence in the company and its technical base to weaken considerably. With nothing on the horizon to indicate that fundamentals might soon return to form, and while the rest of the small-cap segment is having a banner year-to-date, there are many better uses for funds than owning Fonar at this point. As such, we conclude that it’s time to discontinue coverage of Fonar Corp.
Doug Gerlach, Smallcapinformer.com, 1-877-33-ICLUB, May 2021
SELL Booz Allen Hamilton Holding Corporation (BAH) | Daily Alert April 27
Updated from WSBD 830, June 16, 2020
We are dropping Booz Allen Hamilton from the Long-Term Buy List. The stock has struggled to recover ground lost after its messy December-quarter report. Not helping matters, analyst profit estimates for the March and June quarters dipped after management warned of potentially choppy sales.
Richard Moroney, CFA, Dow Theory Forecasts, dowtheory.com, 800-233-5922, April 12, 2021
PARTIAL SELL Kohl’s Corporation (KSS)
Updated from WSBD 288, September 14, 2016
With the stock at an elevated position size in most of our managed accounts that were following the TPS Portfolio strategy, while cash levels were relatively low as opportunity presented itself elsewhere, we decided to pare our position in Kohl’s back to around 1.2% at prices no lower than $60.80.
We still like the company and the management team, and think that shares trade for a reasonable price, especially when considering that EPS is expected to return to pre-pandemic levels near $5.00 in fiscal 2024. Our Target Price for our remaining Kohl’s stake is $70, but we thought it prudent to take advantage of the 49% year-to-date gain in the stock, even as this was more of a portfolio management decision, given that cash is finite.
John Buckingham, The Prudent Speculator, theprudentspeculator.com, 877-817-4394, May 5, 2021
*SELL Avid Technology, Inc. (AVID)
Updated from WSBD 836, December 17, 2020
We dropped coverage of Avid Technology. The stock is not among our favorite technology plays, partly reflecting middling Quadrix scores for Value (37) and Financial Strength (39). The stock earns an Overall score of 64, down from 84 at the end of March. Readers are encouraged to lock up gains in Avid.
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, May 3, 2021
*SELL Uber Technologies, Inc. (UBER)
Updated from WSBD 836, December 17, 2020
Uber, originally recommended by Mike Cintolo in Cabot Growth Investor, gapped down last week after releasing its first quarter report, so we will now sell and take a modest loss. In last Thursday’s update Mike wrote, “The Q1 report was very solid, with gross bookings actually up 24% from a year ago, driven by a whopping 166% gain in Delivery bookings, with normalized revenue up 11% from the prior quarter (Delivery revenue up 230%!). EBITDA, while in the red, topped expectations as well. But it wasn’t enough, with investors instead keeping their focus on the U.S. decision to classify gig economy workers (like Uber’s drivers) as employees; management said it can handle the cost, but Wall Street is pessimistic, driving the stock toward its 40-week line and below our stop. Honestly, we still think UBER will eventually have a sustained run, and if it shapes up down the road, we could take another swing at it. But the fact that it’s constantly run into resistance in recent months is a sign it needs more time, seasoning and clarity on its business and costs before big investors give it their blessing.” SELL.
Timothy Lutts, Cabot Stock of the Week, cabotwealth.com, 978-745-5532, May 10, 2021
*SELL Advanced Energy Industries, Inc. (AEIS)
Updated from WSBD 827, April 10, 2019
Advanced Energy Industries is being downgraded to Sell because of mixed March-quarter results and disappointing guidance. Per-share profits jumped 42% and outpaced the consensus. But revenue was below analyst expectations, reflecting supply shortages. For the June quarter, management targets sales of roughly $360 million, below the consensus of $375 million. Per-share earnings are expected to be $1.10 to $1.40, versus the consensus of $1.42. The stock should be sold.
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, May 7, 2021
*SELL Mohawk Industries, Inc. (MHK)
Updated from WSBD 816, March 19, 2020
We are moving Mohawk Industries from BUY to SELL. The company’s turnaround from its modest difficulties yet overly-depressed stock appears complete, and the shares have reached our 220 price target, although they have modestly retreated today.
Bruce Kaser, Cabot Turnaround Letter, cabotwealth.com, 978-745-5532, May 12, 2021