I Know First Review: February 22nd 2014

February 25, 2014

The stocks selected here are the top performing stocks from I Know First: Daily Market Forecast’s November 22nd 2013 Top 10 Stock and S&P 500 forecast titled Stock Prediction Based On Algorithms: 87.19% Gain In 3 Months. The I Know First Average return was 19.8% versus the S&P 500’s return of 2.25% over the same time period.

Click For Full Story

Learn how to read the predictions: Instructions

Learn how to strategize with the forecast: Algorithmic Trading Strategies

Please note-for trading decisions use the most recent forecast. Get today’s forecast and Top stock picks.

XOMA Corporation (XOMA) had a long signal of 1333.54 and a predictability of 0.51. This stock had the strongest signal by far and the third highest predictability of the Top 10 Stock forecasts. The strength of the signal indicates that the algorithm believes the asset will move by a large amount. As the algorithm predicted XOMA rose 87.19% in 3 months. The algorithm was also very confident, as the predictability was impressively high as well at 0.51. XOMA has built a portfolio of innovative therapeutic antibodies, both in late-stage clinical development and in preclinical research. In 2010, XOMA partnered with Servier, France’s leading independent pharmaceutical company, for the development of XOMA’s lead product gevokizumab (IL-1 beta modulating antibody). Gevokizumab has potential for the treatment of non-anterior, non-infectious forms of uveitis (NIU), inflammation of the heavily vascularized layer of the eye. Currently in Phase 3 studies, results are expected in 2014.

AK Steel Holding Corporation (AKS) had a bullish signal of 125.9 and a predictability of 0.21. Over the forecasted time horizon AKS returned 21.84%. This stock had the second strongest signal from this forecast partially due to the fact that this company has seen a nice streak of beating earnings estimates. For instance this past quarter, AKS aimed to deliver earnings of 5 cents per share, but actually saw earnings of 9 cents per share, representing an 80.0% positive surprise. Revenue was reported at $1.46 billion versus the average analysts estimate of $1.4 billion.

Read our detailed assessment:
The Steel Industry’s Imminent Correction

On the forecast date, Advanced Micro Devices Inc. (AMD) had a long signal of 96.18 and a predictability of 0.26 for the 3-month time horizon. The stock returned 9.5% in accordance with the algorithms forecast. AMD is currently cutting prices and launching new products both to maintain and enhance their competitive position, as well as to fill holes in their lineup. The company unveiled on February 13th a new graphics card, the Radeon R7 265 aimed at the mainstream market segment. This graphic’s processor will cost around $150 initially and delivers a 25% performance gain relative to the older R7 260X, which will drop its price to $119. The more expensive R9 270 will stay available at $175. Since we last reported on AMD (October 23rd 2013) in Seeking Alpha the stock rose 16.35%.

Read our detailed assessment:
AMD: A Fundamentally Solid Company With An Exaggerated Negative Outlook

MGIC Investment Corporation (MTG) had the third strongest signal in the I Know First Top 10 Stocks and S&P 500 forecast. MTG had a signal of 89.58 and a predictability of 0.24. MTG’s share price grew 12.33% over the time horizon in accordance with the algorithmic forecast. Several fundamental reasons as to why MTG was included in this Top 10 forecast include that the company made substantial progress in 2013 by significantly improving the capital position of the company. New insurance written increased 24%, new delinquent notices declined 20%, the delinquent inventory declined 26%, and paid claims fell 28%.

Apollo Education Group, Inc. (APOL), one of the world’s largest private education providers returned 30.46% in only three months from our forecast day. APOL had a bullish signal of 31.37 and a predictability of 0.26. Apollo’s subsidiaries include: University of Phoenix, Apollo Global, Institute for Professional Development, Western International University and the College for Financial Planning. The debt-to-equity ratio is very low, currently below the industry average at 0.06. This implies that the company has very successful management of debt levels. In addition, the quick ratio of 1.51 demonstrates the company’s ability to cover short-term liquidity needs.

From the forecast date, Hewlett Packard Company (HPQ) shares rose 19.64% over the forecasted time horizon in accordance with the algorithm. HPQ had a signal of 28.64 and an impressive predictability of 0.41. 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 profit. This past Thursday, on February 20th 2014, Hewlett Packard Company released their 1Q14 earnings report. The company beat Wall Street expectations of $27.2 billion in revenue with first quarter revenues at $28.2 billion. CEO Whitman stated, “Hewlett Packard is in a stronger position today than we have been in quite some time.” Since our last bullish publication on HPQ the stock rose 17.52%.

Read our detailed assessment:
Hewlett-Packard: Time To Change Your Mind

Rite Aid Corporation (RAD) our tenth stock pick from our Top 10 stock did very well over the forecasted time horizon. RAD had a signal of 23.74 and predictability .31. As predicted by the algorithm the stock jumped 26.33%. Recently, Rite-Aid announced it had expanded its distribution agreement with drug retailer McKesson. The agreement is expected to guarantee greater and more reliable supply of chain efficiencies to both Rite Aid and McKesson. This past week also saw the company reach its 52-week high of $6.55. Shares moved up 2.2% last week as a result of the news. This could be a sign of what to expect if this agreement does benefit both parties as intended.

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 interns. We did not receive compensation for this article, and we have no business relationship with any company whose stock is mentioned in this article.