Pretty quiet day on the news front but here’s some tidbits from the day…..
A New Investment Strategy?
Yesterday, we commented on how Google (GOOG) had bought Nest Labs for $3.2B. Well, investors seeking an opportunity went flocking to pink sheeter NEST (not Nest Labs, but Nestor Inc. – a provider of automated traffic enforcement systems) driving the price from $0.002 to as high as $0.10 before closing at $0.04 (up 1900%) on nearly 10 times the average daily volume. If I was owner of Nestor Inc., I’d probably have sold as many shares as I could at $0.10. This might be a viable investment strategy – finding similar sounding stock symbols on news that a company is bought out. Even more surprising are the holdouts as the stock still is at $0.04.
Marissa’s hand-picked COO on their way out
Yahoo!’s (YHOO) COO, Henrique de Castro, is leaving Yahoo!. Touted as the first big hire Marissa made when coming onto Yahoo!, de Castro was the former head of advertising platforms at Google. Word was not given as to why he was let go (or decided to leave) – but no one could blame the company – Yahoo’s ad revenues continue to be flat despite Marissa and de Castro coming on board. There’s only so much time that can pass, or people to take the fall, if the company continues to show a lack of revenue growth. As shareholders, we are thankful for Marissa’s predecessor had the foresight to buy a stake in Alibaba (debatable if the company’s share price performance would be so good without it).
Bank of America back on track
Bank of America reported quarterly earnings and continued to show it’s back on track – with rising revenues, and lowered expenses, and signs that the mortgage crisis may be well behind them (or on their way). Note to self, if there ever exists a financial crisis again in my lifetime (hopefully not), take a second mortgage out to buy back financials.
ExOne drags 3D Printing Sector Down
3D Printer ExOne (XONE) cut its 2013 revenue outlook and dropped nearly 10% today, taking down most of the other 3D printing companies with it. The company guided revenue to be in the $40-42M range vs. prior guidance of $48M. The company blamed the shortfall on revenue-timing issues and management is still confident it will be able to meet its 40-50% annual revenue growth target for 2014. Even still, as we’ve mentioned before, owning shares in the 3D printing industry has becoming ridiculously expensive – even with today’s drop, the company sells for 20x sales. With my 3D Systems (DDD) shares likely to be taken away at the end of the week, I am actually tempted to short this industry.
The author owns shares of Google (GOOG), Bank of America (BAC), 3D Systems (DDD), and Yahoo! (YHOO). A full list of holdings can be found here.