This article was written by the I Know First Research Team.
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This article was written by Graham Ellinson, a Financial Analyst at I Know First currently studying Mathematics at Northumbria University Newcastle.
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This article was written by Graham Ellinson, a Financial Analyst at I Know First.
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[Source: By Immersion Corporation (Immersion Corporation) [CC0], via Wikimedia Commons]
“Our focus on innovation and development of cutting-edge haptic technology remains at the forefront of our company’s strategy. Today, our employees are working on haptic technology solutions for fascinating and seemingly insurmountable challenges that will become mainstream in the market during the next five to ten years. This is the work we do here at Immersion; this is why our patent portfolio is exceptional; and, this is why I’m so excited about the future of our company.”
– Carl Schlachte, interim CEO and Chairman of the Board
Over the past couple of weeks Immersion Corporation’s stock price jumped from $9.70 to $11.88 per share, outperforming the market by more than 17%. So what is the driver behind that growth and what happened during those 14 days? The reason is that the company released the results for Q4 2017 with the following highlights:
Revenues for 2017 were $35.0 million, a decrease of 39% as compared to $57.1 million for 2016
Net loss for the fourth quarter of 2017 was $12.3 million, or $(0.42) per diluted share which compares to net loss of $38.1 million, or $(1.32) per diluted share, for the fourth quarter of 2016
As of December 31, 2017, Immersion’s cash, cash equivalents and short term investments were $46.5 million, compared to $89.8
[Image source: By Fossil Group (www.fossilgroup.com), via Wikimedia Commons]
“In fiscal 2017, Fossil Group, embarked on a set of strategic initiatives aimed at accelerating the evolution of the business to position the Company for long term profitable growth. While sales and earnings were challenged as expected, we generated progress toward our objectives that include: driving growth in wearables across our portfolio of powerful brands, leveraging our scale to lower supply chain costs, increasing our digital capabilities, and continuing the transformation of our business through New World Fossil…”
-Kosta Kartsotis, Fossil Group, Chairman and CEO
[Image source: www.watchpro.com]
Over the past 3 days Fossil Inc. sky-rocketed from $8.26 to $17.07 per share, outperforming the market by more than 100%. The reasonable question that most probably buzzes your mind now – what did happen to that stock and why didn’t I buy it at $8? The reason is that the company released the results for Q4 2017 with the following highlights:
In the context of the above, one can see that the company chases up the wearables market and aim to compete with the trend setters such as Apple (NASDAQ: AAPL) and Fitbit (NYSE: FIT). However, as per the Yahoo Finance, 7 out of 11 analysts took the hold position with regards to Fossil’s stock, some of them note that there are fundamental changes in the way the company started to realize its strategic movement towards wearables technology which is on the rise now and have significant potential for further development and market expansion. According to Forbes, the industry analyst forecasts 125.5 million wearable devices to be shipped to customers just this year and the comparable figure for 2021 should hit 240.1 million.
[Source: Yahoo Finance]
In line with the above the market and shareholders were addressed by the company’s management team with projected increase in wearables sales, although net sales are expected to decline in the range of 6-14%, and expected gross profit margin of 51-53% in 2018. Pursuing the company’s strategic plan for restructuring its business it also expects to incur some $50 million of related charges and arrive at EBITDA figures of $150-200 million in 2018.
On February 11th, 2018, I Know First issued a bullish 3 days forecast for Fossil Group Inc. (NYSE: FOSL). The forecast illustrated a signal of 6.88 and a predictability of 0.05. In accordance with the forecast, FOSL’s stock returned 102.51% over this period, highlighting the accuracy of the prediction produced by the I Know First algorithm.
Current I Know First subscribers received this bullish FOSL forecast on February 11th, 2018.
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Fossil Group, Inc. (NASDAQ: FOSL), together with its subsidiaries, designs, develops, markets, and distributes consumer fashion accessories. The company’s principal products include a line of men’s and women’s fashion watches and jewelry, handbags, small leather goods, belts, sunglasses, and soft accessories. It offers its products under its proprietary brands, such as FOSSIL, MICHELE, MISFIT, RELIC, SKAGEN, and ZODIAC, as well as under the licensed brands, including ADIDAS, ARMANI EXCHANGE, BURBERRY, CHAPS, DIESEL, DKNY, EMPORIO ARMANI, KARL LAGERFELD, KATE SPADE NEW YORK, MARC JACOBS, MICHAEL KORS, and TORY BURCH. The company sells its products through department stores, specialty retail stores, specialty watch and jewelry stores, mass market stores, e-commerce sites, licensed and franchised FOSSIL retail stores, and retail concessions, as well as sells its products on airlines and cruise ships. As of December 31, 2016, it owned and operated 94 retail stores and 129 outlet stores located in the United States, as well as 230 retail stores and 132 outlet stores internationally. The company was formerly known as Fossil, Inc. and changed its name to Fossil Group, Inc. in May 2013. Fossil Group, Inc. was founded in 1984 and is headquartered in Richardson, Texas.
Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.
Insperity, Inc. (NYSE: NSP) provides human resources (HR) and business solutions to enhance business performance for small and medium-sized businesses in the United States. The company offers its HR business services through its Workforce Optimization and Workforce Synchronization solutions, which encompasses a range of human resources functions comprising benefits and payroll administration, health and workers’ compensation insurance programs, personnel records management, employer liability management, assistance with government compliance, general HR advice, employee recruiting and support, employee performance management, and training and development services. It also provides Employee Service Center, a cloud-based human capital management platform that provides automated and personalized professional employer organization HR outsourcing solutions to its clients and worksite employees; and Workforce Administration solution that offers human capital management and payroll services. In addition, Insperity, Inc. offers other business performance solutions consisting of human capital management, payroll services, time and attendance, organizational planning, recruiting services, employment screening, financial and expense management services, retirement services, and insurance services via desktop applications and cloud-based delivery models. The company was formerly known as Administaff, Inc. and changed its name to Insperity, Inc. in March 2011. Insperity, Inc. was founded in 1986 and is headquartered in Kingwood, Texas.
Over the past 3 months Insperity experienced significant fluctuations around the general trend of performing slightly above market performance. The stock price of the company at the start of the forecast period was as low as $52.88 on November 14 which actually served as a “launchpad position” for a new rising trend. Over the last three months company announced a few major events, namely:
In the context of the above-mentioned news, one can see that they correspond to significant changes in the stock price behavior and may have significantly contributed to that. As such we see that all three announcement correspond to significant rises in the stock price by some 6-9% comparing to the benchmark indices’ behavior (NYSE and SP500) on the same dates.
[Source: Yahoo Finance]
Finally, the company announced record Q4 and full year 2017 results on February 12 with the following important highlights, reflecting a 2-for-1 stock split being done in Q4:
Q4 EPS up 57% to $0.36; adjusted EPS up 90% to $0.55
2017 EPS
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