3 Predictions for the New Week

I went out on a limb last week, and now it's time to see how that decision played out.

  • I predicted that Apple (NASDAQ: AAPL  ) would close higher on the week. The company behind the iPhone, iPad, iPod, and iEverything Else was out of favor heading into Tuesday afternoon's quarterly report, but that's the kind of pessimism that's rewarded after even a so-so quarter. It was a well-received report, as a surprising surge in iPhones overcame weakness nearly everywhere else. The stock moved 3.8% higher on the week. I was right.
  • I predicted that the tech-heavy Nasdaq would outperform the Dow Jones Industrial Average. (DJINDICES: ^DJI  ) . This has been a tricky call lately, so how did it play out this time? Well, this was a good week for tech to bounce back. The Nasdaq moved 0.7% higher, and the Dow managed to close 0.1% higher. I was right.
  • My final call was for RF Micro Devices (NASDAQ: RFMD  ) to beat Wall Street's income estimates in its latest quarter. The chipmaker's been doing well given its presence in some of the world's hottest smartphones, and it's been posting blowout quarterly results over the past year. I was banking on seeing the trend continue. Analysts were looking for a profit of $0.07 a share during the quarter, and it came through with net income of $0.09 a share. I was right.

Three out of three? Awesome!

Let me once again whip out my trusty, dusty, and occasionally accurate crystal ball to make three calls that may play out over the next few trading days.

1. SodaStream will close higher on the week
It's time for SodaStream (NASDAQ: SODA  ) to get busy with the fizzy. Shares of the Israeli company behind the popular beverage-making appliance soared earlier this summer when it became the subject of buyout chatter. The rumors have subsided, but now the stock is trading for less than it was when the frenzy began.

The good news for SodaStream is that it's expected to post healthy growth when it reports on Thursday. Posting carbonated financials is one way to win back thirsty bulls.

My first call is for SodaStream to close higher on the week.

2.The Nasdaq Composite will beat the Dow this week
Tech has been a big winner in recent years, so betting on tech over stodgy blue chips has been a good bet for me more often than not.

I'm going to stick with this pick. Most of the names in the composite are just too cheap at this point, and tech should be what carries us through the economic recovery.

Yes, earnings reports have been rough in some places this season, but the long-term outlook is still quite favorable. The market is ripe for the tech-stacked secondary stocks to continue to outpace the 30 megacaps that make up the Dow Jones Industrial Average.

3. Multimedia Games will beat Wall Street's earnings estimates
Some stocks are just flat-out better than others.

Multimedia Games (NASDAQ: MGAM  ) is a provider of casino games, growing at a healthier rate than its larger rivals. Another thing it does is make analysts look like perpetual underachievers. If analysts say that the company posted a profit of $0.24 a share in its latest quarter, I'll argue that it held up better than that. History's on my side!

One of my best tricks to beating the market is finding stocks that perpetually land ahead of the prognosticators. Let's go over the past year of earnings reports.

 Quarter

EPS Estimate

EPS

Surprise

Q3 2012

$0.25

$0.39

39%

Q4 2012

$0.21

$0.30

43%

Q1 2013

$0.13

$0.24

85%

Q2 2013

$0.19

$0.31

63%

Source: Thomson Reuters.

Things can change, of course. The revenue-sharing arrangement with one of its largest partners recently turned against Multimedia Games' favor, and gambling as an addiction is being seen as a bigger problem than before.

However, it's hard to argue against the trend. Everything seems to be falling into place for another market-thumping quarter on the bottom line.

Three for the road
Well, there are three predictions right there. Let's see how I fare this week.

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  • Report this Comment On July 29, 2013, at 5:04 PM, DZPM wrote:

    RFMD fall today over 4.17% for no reason everything is combination between shorts trader that was poise to lose after good earning and kick back Research Company Thomson Reuters/Verus Barclays‘s Blayne Curtis &

    Thomson Reuters/Verus downgrades RF MICRO DEVICES INC from BUY to HOLD.

    Thompson Reuters/Verus Relative Accuracy is 55

    Barclays‘s Blayne Curtis nevertheless cuts the stock to Equal Weight from Overweight

    Columbine Capital Services, Inc. upgrades RF MICRO DEVICES INC from NEUTRAL to FAVORABLE.

    Columbine Capital Services, Inc. Relative Accuracy is 57

    RFMD Reported Earnings: $0.09 per share

    RFMD exceeded the consensus for this quarter.

    On July 23, 2013, RF Micro Devices Inc. (RFMD) sed its Q1 FY 2014 financial results (period ended June 29, 2013). Revenue was up 44.5% Y to Y to a record $293.0 million, primarily attributable to broad-based adoption of RFMD's best-in-class RF solutions. Net income was $1.6 million, compared to a net loss of $19.1 million Q1 FY 2013. Diluted earnings were $0.01 per share, compared to a loss of $0.07 per share in Q1 FY 2013. Bob Bruggeworth, President and CEO of RFMD, stated, "Looking forward, we believe we are strategically well positioned this fiscal year to deliver record revenue and improving financial performance, given our expectations for diversification, content growth, category expansion, and market share gains, combined with the benefit of new customer product ramps."

    RFMD is outperform/buy Shorty’s and Thomson Reuters/Verus cronies’

    Will louse tomorrow buy all the facts that are available regular investor got trick but not professional found manager tomorrow is nothing but buy.

  • Report this Comment On July 31, 2013, at 10:05 AM, km00nster wrote:

    Awesome prediction on SODA! I agreed with your posting and put real money in the stock before earnings and made quite a bit. Thanks again. Keep on posting.

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