Stock markets continued to hold their gains for 2013. For the year-to-date, the S&P 500 (SPY) is up 6.81%, while the technology sector is under-performing. As measured by the PowerShares QQQ (QQQ), the ETF is up 4.02% so far. The rising bullishness brings higher risks for a sell-off, but bears are taking profits on their bets for a number of tech stocks:
Data Source: Bloomberg
Notable Companies to Watch:
1. NVIDIA Corporation (NVDA, Earnings, Analysts, Financials): Provides visual computing, high performance computing, and mobile computing solutions that generate interactive graphics on various devices ranging from tablets and smart phones to notebooks and workstations. Market cap at $7.95B, most recent closing price at $12.73.
Short-selling volume for NVIDIA (NVDA) declined by 24.5% between January 15 and January 31, 2013. The company reported quarterly earnings that beat estimate, but guidance was once again light. In its Q4 report, Tegra sales rose +90% compared to a year-ago. Graphics chip sales rose 7%, but NVIDIA was cautious on its mobile growth. The company will need an integrated baseband and app processor to compete more effectively against chip-giant Qualcomm (QCOM). The company earned $0.28 per share in Q4 on revenue of $1.11B.
NVIDIA expects revenue to be $940M, below estimates of $1.07B in Q1.
2. OCZ Technology Group, Inc. (OCZ, Earnings, Analysts, Financials): Designs, develops, manufactures, and distributes computer components for computing devices and systems worldwide. Market cap at $140.71M, most recent closing price at $2.08.
Short-sellers reduced their bearish position in OCZ (OCZ) by 9.5%. Shares plunged 10.2% after the short-volume decline. OCZ said revenue is expected to be between $65M-$85M for Q2 and Q3 ending August and November 2012, respectively.
3. CIENA Corp. (CIEN, Earnings, Analysts, Financials): Provides communications networking equipment, software, and services that support the transport, switching, aggregation, and management of voice, video, and data traffic. Market cap at $1.64B, most recent closing price at $16.15.
CIENA rose steadily throughout February, after open short- volume declined 7.5% to 17.28M shares. Its competitor, JDS Uniphase (JDSU) reported very strong earnings and gave strong guidance. The optical components and testing segment remains very strong.
4. Cree, Inc. (CREE, Earnings, Analysts, Financials): Develops and manufactures light emitting diode (LED) products, silicon carbide (SiC) and gallium nitride (GaN) material products, and power and radio frequency (RF) products. Market cap at $5.33B, most recent closing price at $45.72.
Cree rallied significantly, and is up nearly 50% for the quarter. A short-squeeze scared off some bearish investors, as open short-selling declined 5.5% to 15.1M shares. Cree’s Q2 results were strong, and guidance for next quarter is even better. The company’s vertical integration from retail to supply is on-track to allay worries of weakness ahead. Cree named Mike McDevitt as interim CFO as its new permanent CFO.
(List compiled by Chris Lau)
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Dig Deeper: Access Company Snapshots, Charts, Filings
- NVIDIA Corporation (NVDA, Chart, Download SEC Filings)
- OCZ Technology Group, Inc. (OCZ, Chart, Download SEC Filings)
- CIENA Corp. (CIEN, Chart, Download SEC Filings)
- Cree, Inc. (CREE, Chart, Download SEC Filings)
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