I Know First Review: January 6th, 2015

January 6, 2015

I Know First Review: Stock Picks Based On Algorithms

The stocks selected here are the top performing Tech Stocks from I Know First: Daily Market Forecast’s January 3rd, 2014 stock forecast titled Algorithmic Trading: Up To 60.43% Return In 1 Year. This forecast is part of the “Best Tech Stocks” package, as one of I Know First’s quantitative investment solutions. The “I Know First Average” return was 35.02% versus the S&P 500’s return of 12.35% over the same time period.

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MSFT

Signal (1 year): 35.39

Predictability (14 year): 0.41

Return: 29.28%

Microsoft Corporation is engaged in developing, licensing and supporting a range of software products and services. The Company also designs and sells hardware, and delivers online advertising to the customers. Microsoft Corporation had a signal strength of 35.39 and a predictability indicator of 0.41. In accordance with the algorithm prediction, the stock returned 29.28% in a 1 year time horizon. The company saw some sales success when it dropped the Kinect motion sensor in June, which allowed it to match its rival’s base price of $399. Microsoft took things a step further this holiday season by lowering the cost for the Xbox One again to $349. That price dropped to $329 on Black Friday, and the overall value was even higher as the lower-priced consoles were also sold in bundles with sought after games, headsets, and other goodies.

SNE

Signal (1 year): 37.59

Predictability (14 year): 0.19

Return: 19.81%

SONY CORPORATION is engaged in the operation of imaging products and solution (IP&S), game, mobile products and communication (MP&C), home entertainment and sound (HE&S), device, movie, music, financial and other business. The company had a signal strength of 37.59 and a predictability indicator of 0.19. In accordance with the algorithm prediction, the stock returned 19.81% in a 1 year time horizon. Sony Pictures released its latest movie, The Interview, on the day of Christmas. The film revolves around a plot where Kin Jong Un, the leader of North Korea, was faced with some assassination attacks. This movie was opened in 300+ cinemas all around the United States. Some of the theatres were booked months ago, whereas others sold out as soon as the day started. The audience seemed happy with the freedom of expression that was allowed by not censoring or banning this movie from release. Moreover, Sony announced at the end of December that 4.1 million units of its PlayStation 4 were sold during the holiday season, taking the total beyond 18.5 million. These events have allowed the SNE stock increase.

AMT

Signal (1 year): 37.12

Predictability (14 year): 0.36

Return: 45.03%

Applied Materials, Inc. (Applied) provides manufacturing equipment, services and software to the global semiconductor, flat panel display, solar photovoltaic (PV) and related industries. Applied’s customers include manufacturers of semiconductor wafers and chips, flat panel liquid crystal displays (LSDs), PV cells and modules, and other electronic devices. The company had a signal strength of 37.12 and a predictability indicator of 0.36. In accordance with the algorithm prediction, the stock returned 45.03% in a 1 year time horizon. Deutsche Bank upgraded Applied Materials, Inc. from Hold to Buy and raised its price target from $22 to $30. Analyst Sidney Ho commented that “AMAT is an under-appreciated technology leader…We expect AMAT to benefit from multiple technology inflections in the next two to three years, which could drive WFE spending to $36-37 billion.”

HPQ

Signal (1 year): 25.57

Predictability (14 year): 0.25

Return: 48.10%

Hewlett-Packard Company (HP) is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses (SMBs) and large enterprises, including customers in the Government, health and education sectors. The company had a signal strength of 25.57 and a predictability indicator of 0.25. In accordance with the algorithm prediction, the stock returned 48.10% in a 1 year time horizon. Hewlett-Packard recently announced that it will enter the 3D printing market sometime in 2016 with a homegrown technology called Multi Jet Fusion. Additionally, Steve asks Tim what he expects out of EuroMold 2014, the world’s largest 3D printing conference, held in Frankfurt, Germany — where the two spoke last month.

TSLA

Signal (1 year): 24.77

Predictability (14 year): 0.27

Return: 46.11%

Tesla Motors, Inc. (Tesla) designs, develops, manufactures and sells electric vehicles and advanced electric vehicle power-train components. Tesla owns its sales and service network. The Company provides services for the development of electric power-train components and sells electric power-train components to other automotive manufacturers. Tesla Motors Inc. had a signal strength of 24.77 and a predictability indicator of 0.27. In accordance with the algorithm prediction, the stock returned 46.11% in a 1 year time horizon. As 2015 begins, Tesla’s investors can look back in retrospect at another great year of returns. Shares are up close to 50%, easily trumping the S&P 500’s 13% gain. But while the stock’s gain is great for Tesla shareholders, the rise is bringing the stock’s incredibly bullish valuation into the spotlight. This is why investors will be looking to Tesla’s vehicle sales in 2015 to validate the market’s optimism about its future.

ORBK

Signal (1 year): 34.31

Predictability (14 year): 0.27

Return: 10.70%

Orbotech Ltd.( Orbotech) is engaged in the design, development, manufacture, marketing and service of yield-enhancing and production solutions for the supply chain of the electronics industry. The company had a signal strength of 34.31 and a predictability indicator of 0.27. In accordance with the algorithm prediction, the stock returned 10.70% in a 1 year time horizon. Needham & Company upgraded Orbotech Ltd.  from Hold to Buy with a price target of $20.00. Analyst James Ricchiuti commented, “We are upgrading our rating on ORBK to Buy from Hold following the roughly 10% pullback in the shares since the company reported Q3 results earlier this month and based on increased confidence in our estimates looking out over the next year. We believe ORBK has the potential to see each of its major businesses — PCB, FPD and the newly acquired Semi IC and Systems — performing well in 2015.

YHOO

Signal (1 year): 31.97

Predictability (14 year): 0.24

Return: 26.72%

Yahoo! Inc. (Yahoo!) is a global technology company. Through the Company’s technology and insights, Yahoo! delivers digital content and experiences, across devices and globally. The Company provides online properties and services (Yahoo! Properties) to users, as well as a range of marketing services designed to reach and connect with those users on Yahoo! and through a distribution network of third-party entities (Affiliates). Yahoo! had a signal strength of 31.97 and a predictability indicator of 0.24. In accordance with the algorithm prediction, the stock returned 26.72% in a 1 year time horizon. According to a Financial Times report released on December 28th,2014 , Yahoo! Inc. has decided to up its growth in the wearable and mobile device segments. Yahoo’s senior vice president of mobile, Adam Cahan, believes the development of wearable devices – like Apple Inc.’s Apple Watch (due for launch next year) – carry a massive opportunity for Yahoo to cash in on.

MU

Signal (1 year): 31.63

Predictability (14 year): 0.32

Return: 60.43%

Micron Technology, Inc., is a global manufacturer and marketer of semiconductor devices, principally NAND Flash, DRAM and NOR Flash memory, as well as other memory technologies, packaging solutions and semiconductor systems for use in computing, consumer, networking, automotive, industrial, embedded and mobile products. In addition, the Company manufactures semiconductor components for CMOS images sensors and other semiconductor products. Micron Technology had a signal strength of 31.63 and a predictability indicator of 0.32. In accordance with the algorithm prediction, the stock returned 60.43% in a 1 year time horizon. MU was on the aforementioned Barron’s list, with the analysts predicting a gain of more than 40% over the next year, helped by rising demand for smart watches and wearable devices. The shares of Micron Technology, Inc. are headed 0.3% higher ahead of the open, after landing at $35 at the end of December. Longer term, MU has skyrocketed nearly 61% in 2014, so it’s no surprise to find most analysts are already optimistic. In fact, 17 out of 21 have doled out “buy” or better recommendations, and the consensus 12-month price target of $42.35 sits in territory not explored since mid-2001.

EMC

Signal (1 year): 31.42

Predictability (14 year): 0.24

Return: 21.36%

EMC Corporation (EMC), develops, delivers and supports the information technology (IT) industry’s range of information infrastructure and virtual infrastructure technologies, solutions and services. The Company manages its business as three federated businesses, each of which plays a vital role in the delivery of IT-as-a-service (ITaaS): EMC Information Infrastructure, Pivotal and VMware Virtual Infrastructure. EMC Corporation had a signal strength of 31.42 and a predictability indicator of 0.24. In accordance with the algorithm prediction, the stock returned 21.36% in a 1 year time horizon. EMC Corporation’s shares jumped 4.83% to $29.95. The company on Dec. 12 announced that the Company’s Board of Directors has declared a quarterly cash dividend of $0.115 per common share. The dividend will be payable on January 23, 2015 to shareholders of record on January 2, 2015.

AAPL

Signal (1 year): 31.40

Predictability (14 year): 0.29

Return: 42.63%

Apple Inc. (Apple) designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The company had a signal strength of 31.40 and a predictability indicator of 0.29. In accordance with the algorithm prediction, the stock returned 42.63% in a 1 year time horizon. Thanks to what appears to be a wildly successful iPhone 6 line, analysts are incredibly bullish about iPhone sales in Apple’s first-fiscal quarter of 2015, which ends before the New Year. The consensus estimate for iPhone sales during Q1 is 63 million, up 23.5% from Apple’s previous quarterly record of 51 million units, which was set in the first fiscal quarter of 2014.

 

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. We did not receive compensation for this article, and we have no business relationship with any company whose stock is mentioned in this article. Read More From I Know First Research:

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