5 of Last Week's Biggest Winners

What's better than momentum? Mo' momentum. Let's take a closer look at five of this past week's biggest scorchers.

Company

June 21

Weekly Gain

Spreadtrum (NASDAQ: SPRD  )

$25.91

22%

Inergy (NYSE: CEQP  )

$16.21

15%

Finisar (NASDAQ: FNSR  )

$16.22

14%

Ruckus Wireless  (NYSE: RKUS  )

$12.11

12%

Gray TV  (NYSE: GTN  )

$7.16

10%

Source: Barron's.

Let's start with Spreadtrum. The maker of smartphone chipsets received a nearly $1.5 billion buyout offer from a government-owned subsidiary. There have been a surprising number of Chinese companies taken private lately, reinforcing the notion that fears of bogus accounting at Chinese companies may be overblown. Would Chinese companies be spending real money to take their fellow companies out if the numbers were doctored? It definitely happens, but the resulting dips often result in buying opportunities.

Inergy moved higher, fueled by a distribution that sets the stage for the propane seller and natural gas storage provider to hand majority control of the limited partnership to Crestwood Midstream. Inergy announced on Wednesday that it successfully distributed 56.4 million common units to its investors. Crestwood should achieve majority control of Inergy by the end of next quarter.

Finisar also opened more than a few eyes out there. The optical-networking bellwether posted better-than-expected quarterly results that may not seem impressive at first glance. Revenue inched just 2% higher, and Finisar's profit of $0.20 a share was less than the $0.21 it posted a year earlier. However, analysts were holding out for net income of just $0.18.

Finisar's guidance was encouraging, leading Stifel analysts to bump their price target from $18 to $20.

Ruckus Wireless bounced back after receiving some props as a place to work. The Bay Area News Group named the wireless-solutions provider one of Silicon Valley's top workplaces. It was the only employer in the telecommunications category.

Ruckus could use the bounce. The stock has shed more than half of its value since peaking in February.

Gray TV got a pop earlier in the week, when a Seeking Alpha article played up the television station owner's prospects as a takeover candidate. The Atlanta-based broadcaster that owns dozens of channels wrapped up the week on a potentially problematic note, however, by announcing that President and COO Robert Prather is stepping down effective immediately. The abrupt departure that was revealed shortly after Friday's close will be something to watch in the trading week ahead.

Keep the good vibes coming
The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Only the most forward-looking and capable companies will survive, and they'll handsomely reward investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2504313, ~/Articles/ArticleHandler.aspx, 4/19/2014 9:13:45 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement