The University at Albany School of Business Investment Group purchased 205 shares of Nautilus Inc. (NLS) stock on Friday, May 6th at a price of $17.04. Following a strong post market earnings call on Monday, May 9th the group purchased an additional 100 shares at $20.13 and 75 more at $20.16. Nautilus performed well in May, moving up 13.4% in the month. The combination of strong price performance, strong earnings, and favorable guidance caused the stock to surge. The company’s future is still bright with recent acquisitions of Octane Fitness which compliments Nautilus’ already strong brand offering. Currently the stock is priced at $19.14 (down 4.40% on 6/14 with no public explanation) with a price target of $22.59. Our investment thesis is still intact and the stock should bounce back in the near future.
Tuesday, June 14, 2016
Cerner May Monthly Report
During the month of April we purchased 60 shares of Cerner (representing a half position) at $56.60. Cerner opened the month on May 2nd at $56.96. Cerner closed on May 31st at a price of $55.61. This represents a 2.37% loss over the course of the month as well as a -1.75% loss since purchased at 56.60.
On Friday May 19th, we completed a full position in Cerner by purchasing 60 additional shares at $54.40. This represents a 2.03% gain, nearly offsetting our loss from the other half position.
With a price target of $72.17, $29.77 upside remains. The main reason Cerner’s did not gain upside during the month of May was because its first quarter financial results did not exceed expectations. Cerner’s clinical information and services struggled to meet revenue expectations. In the quarter one earnings call, management lowered guidance for their clinical information and services resulting in their expectations being set very low. This leaves plenty of room for organic growth to materialize as well as prevent another miss on expectations. Earnings have a huge influence on the price of a companies stock and can be a catalyst for momentum. I believe Cerner will exceed their outlook with expectations being set low. This will result in Cerner’s stock price appreciating at a constant rate over the next quarter.
Wednesday, June 1, 2016
Today, June 1st, before the markets opened, Micheal Kors Holdings Limited released their Q4 2016 earnings at $0.98 a share, topping analyst projections by $.02. The Revenue rose to $1.2 billion, compared to $1.08 billion year-over-year. KORS also beat revenue estimates that projected that the company would earn $1.15 billion. Retail net sales increased by 22% this past quarter, partly due to new store openings. KORS has also Michael Kors LTD., gaining the exclusive license of Chinese products, as well as other Asian jurisdictions for $500 million in cash. The company has also come out and issued a weak guidance for the current quarter (Q1 2017), projecting below analyst estimates for EPS and Revenue. KORS projects an EPS of $0.70-$0.74 with revenue between $940-$950 million range as analysts project an EPS of $0.94 and a revenue of $1.03 billion. The reason for this weak guidance spans from an expected increase in expenses on global investments as well as new stores, infrastructure and distribution and a few other variables. They have also announced a new $1 billion share buyback program to replace the previous buyback program from 2014. In light of the earnings report, KORS stock saw a 10% increase pre-market and is currently up around 7.5%.