3. Why are Investors so Negative?
1. As a company with an emerging
technology, Capstone has yet to turn a
profit.
1. A recent secondary offering revealed
that demand for the company’s
turbines—which can run on several
different types of fuel—were not as
high as previously thought.
4. WALL STREET
EXPECTATIONS
1. Currently, 16% of
Capstone shares are being
shorted.
1. Analysts expect the
company to report revenue
of $39.5 million.
2. Capstone is expected to
break even in terms of
profit.
1. Capstone desperately
needs to prove it can turn
a profit and bring in
positive free cash flow.
2. Listen in for details about
the company’s natural gas
truck engines—which is in
its infancy, but could be a
big part of the company’s
revenue in a few years.
WHAT YOU SHOULD
REALLY KEEP AN EYE ON
What to Watch on Friday
6. Why are Investors so Negative?
1. Finisar has the largest market share in
optical subsystem components used in the
communications field—as a result, shares
have risen 80% over the past year.
2. Many believe that the company’s growth
was fueled by a cyclical boom which will
soon be dying down.
3. Financial results from one of Finisar’s largest
customers have fallen lately—indicating a
possible slowdown.
7. WALL STREET
EXPECTATIONS
1. Roughly 17% of Finisar’s
shares are being shorted.
2. Analysts expect the
company to report revenue
of $304 million.
3. Earnings per share are
expected to clock in at
$0.38.
1. Listen closely to
management comments
about trends within the
communication’s industry.
2. Although some think the
growth is simply cyclical,
it’s hard to deny the strong
trend towards devices that
help move ever-more data
in our digital world.
WHAT YOU SHOULD
REALLY KEEP AN EYE ON
What to Watch on Friday
9. Why are Investors so Negative?
1. Lululemon—after enjoying huge
success after going public—has had a
rough two years:
• The loss of its former CEO, Christine
Day.
• Costly recalls on popular luon pants
• Financial performance well below
expectations.
2. Management failed to impress
analysts at a recent investor
presentation.
10. WALL STREET
EXPECTATIONS
1. One-third of Lululemon’s
shares are currently
shorted.
2. Analysts expect the
company to report revenue
of $381 million.
3. Earnings per share are
expected to come in at
$0.32.
1. A stabilization of same-
store sales would go a long
way in convincing folks
that Lululemon customers
have forgiven the company
for its missteps. Positive
figures would be a huge
step.
2. Management guidance will
also offer a look into how
well the company is
recovering with customers.
WHAT YOU SHOULD
REALLY KEEP AN EYE ON
What to Watch on Friday
11. One Volatile Stock our
Management Believes In
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