I Know First Review: April 21st 2014

The stocks selected here are the top performing stocks from I Know First: Daily Market Forecast’s April 21st 2013 Aggressive Stock Forecast titled Capital Gains Based On Algorithms: 79.82% Average Gain In 1 Year. The I Know First Average return was 79.82% versus the S&P 500’s return of 20.36% over the same time period.

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Alcatel Lucent (ALU) had a signal of 619.58 and a predictability of 0.27. In accordance with the algorithm, ALU’s annual performance was a gain of 196.9%, becoming the largest gainer of the forecast. ALU has been gearing itself to fit the needs of the future with the network energy consumption monitoring app. Daily Internet traffic is projected increase 85 times by 2017, compared with traffic in 2010. Such growth of traffic will challenge network operators in terms of costs of running the networks. ALU’s energy monitoring app will help network operators support network growth while keeping costs down. ALU CEO Michel Combes has repositioned the company with his cost-cutting strategy decision to sell non-core assets. Gross margin for the last quarter increased by 400 basis points year-over-year to 34.3%. Alcatel is in a much better position than its rival Cisco (CSCO), which has been struggling since the break of the NSA spying scandal. ALU’s quarterly earnings report is scheduled for release the morning of Friday, May 9.
Read our detailed assessment: Fundamental Strength And Algorithm Endorse Alcatel-Lucent

Sify Technologies Limited (SIFY) is an integrated Internet, network and electronic commerce services companies in India. The company’s services enable its business and consumers to communicate, transmit and share information, access online content and conduct business remotely using its private data network or the Internet. SIFY had a long signal of 565.02 and a predictability of 0.26. The stock grew 4.12% as predicted by the algorithm.

Since the financial crisis, Morgan Stanley (MS) has been working to re-establish itself as a Wall Street powerhouse. On Thursday, the bank made major strides reporting that first quarter earnings rose 18% year-over-year. Solid performance in the Morgan Stanley’s fixed-income division, which trades bonds, derivatives and commodities, led the increase in earnings. The company’s strategy of diversifying its business has paid off, increasing 51.64% in accordance with the algorithm. MS had a long signal of 456.03 and predictability of .23.

From the forecast date, Hewlett Packard Company (HPQ) shares rose 66.96% over the forecasted time horizon in accordance with the algorithm. HPQ had a signal of 169.63 and a predictability of 0.27. After plummeting in 2011 and 2012, shares of HPQ have rebounded in the last year and a half. Hewlett Packard’s two essential businesses, printing and enterprise hardware ended the fiscal 2013-year strong. These two businesses account for 70%-75% of Hewlett Packard’s profit. Since bottoming out in November 2012, the company reached a new multiyear high just last week. Historically has been HP’s biggest cash cow; the printing business was a major part of Hewlett Packard’s return to health. Printing revenue slipped 2.6% last year due to deflation for many printer components and supplies, but pretax profit for the printing business segment grew 8.5% year over year and continued at a more modest pace last quarter at 1.2%. HPQ will release second quarter earnings on May 21st.
Read our detailed assessment: Hewlett-Packard: Positive Signs In Q1 2014 Results

Citigroup Inc. (C) had a signal of 119.29 and a predictability of 0.27 on the forecast date. The stock rose 6.33% in accordance with the algorithm. Second quarter earnings results were varied for the banking industry. Citigroup outperformed competitor JP Morgan Chase (JPM), which witnessed earnings drop 19% due to lower mortgage and trading revenue. Citigroup surpassed expectations, delivering 4% higher adjusted net income with $4.2 billion in the first quarter of 2014. Adjusted expenses fell 1% year-over-year to $12.2 billion. There was a considerable decline in net credit losses, where cost of credit dropped from $2.5 billion to $2 billion, representing a decrease of 20%. By reducing cost of credit and declining expenses even with lower revenues, Citigroup’s income from continuing operations before taxes rose from $5.5 billion to $6 billion, an increase of 9%.
Read our detailed assessment: Algorithm Indicates Citigroup Will Be A Buying Opportunity, But Not Yet
 

Micron Technology Inc. (MU) trades at less than seven times estimated 2014 core free cash flow. The semiconductor company delivered revenues of $4.1 billion, 98% higher than the $2.1 billion achieved at this time last year. MU had an excellent year last year growing around 250% in 2013. Micron Technology had a signal of 84.05 and predictability of 0.23. In accordance with the algorithm the company returned 170.8% over the forecasted time horizon.

DryShips (DRYS) had a signal of 68.66 and a predictability of 0.21 had a corresponding return of 85.71% in accordance with the algorithmic prediction. The company owns a fleet of 42 drybulk carriers (including new buildings), comprising 12 Capesize, 28 Panamax and 2 Supramax, with a combined deadweight tonnage of about 4.4 million tons, and 10 tankers, comprising 6 Suezmax and 4 Aframax, with a combined deadweight tonnage of over 1.3 million tons. Through its majority owned subsidiary, Ocean Rig UDW Inc., DryShips owns and operates 11 offshore ultra deep water drilling units, comprising of 2 ultra deep water semisubmersible drilling rigs and 9 ultra deep water drill ships, one of which is scheduled to be delivered to the Company during 2014 and two of which are scheduled to be delivered during 2015.

Halliburton Company (HAL) is an oilfield services company. The gas and oil services company posted adjusted diluted earnings per share $0.73 on revenues of $7.3 billion in the first quarter of 2014. Halliburton said that its income from operations in the eastern hemisphere, which includes its Middle East/Asia and Europe/Africa/CIS groups, grew by 11% year-over-year and the company expects full-year growth in the low double-digits. As predicted by the algorithm the company returned 70.98% from the forecast date. HAL had a signal of 67.51 and predictability of 0.24.

Panasonic Corporation (PCRFY) had a signal of 41.2. The algorithm displayed confidence in this prediction, as the predictability indicator was very strong at 0.41. As the algorithm anticipated, PCRFY grew 53.06% over the forecasted time horizon. Panasonic recently announced the availability and pricing of the LUMIX GH4, the world’s first DSLM with 4K cinematic recording capabilities designed for both still photographers and cinematographers. It will be available at retail locations in May.

MERVAL Buenos Aires Index

The MERVAL Buenos Aires Index (^MERV) is the most important index of the Buenos Aires Stock Exchange. MERV is a price-weighted index, calculated as the market value of a portfolio of stocks chosen based on their market share, number of transactions and quotation price. This index had a signal of 33.94 and a predictability of -0.03. MERV returned 77.45% in this forecast.

 

Selected stocks mentioned from this forecast are not an endorsement for making trading decisions with these assets currently. Please make trading decisions only with the most recent forecast.

Business Disclosure: I Know First Research is the analytic branch of I Know First, a financial startup company that specializes in quantitatively predicting the stock market. This article was written by Joshua Martin one of our analysts. We did not receive compensation for this article, and we have no business relationship with any company whose stock is mentioned in this article.

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