Join        Login             Stock Quote

A Company I Love Can Now Be Had At The Right Price

 May 09, 2012 10:51 AM

(By Street Authority) As Aesop once noted, patience is a virtue, and to wait will never hurt you. I had to remind myself of that as a stock I once planned to put in my $100,000 Real-Money Portfolio ran away from me.

In early January, I laid out the investment case behind carbon-fiber maker Zoltek (Nasdaq: ZOLT), which you can read about here. At the time, shares traded below $8, but they moved up nearly 8% by the time my self-induced 48-hour buying embargo had been lifted (this gives you a chance to get in on the trade ahead of me). Frankly, my decision to hold off buying at that time caused some distress. Just a few weeks later, shares soared to $13 on the heels of a solid quarterly report, which I discussed here.

At that point, I could only wait and see if shares returned to levels where I consider them to have solid downside support. Well, my patience paid off, and I've gotten a second chance to add this stock to my portfolio.

[Related -What The Market Wants: Unprecedented Move In Cyprus]

From risk-on to risk-off
That bipolar stock chart has more to do with investors' current mood right now, and not what is happening at this company. At the start of the year, investors were flocking to companies like Zoltek that had robust growth prospects. This was known as a "risk-on" environment, as investors actually sought out riskier stocks. These days, they are in a different mood. Companies with a strong set of growth prospects are being shunned if they aren't delivering the goods right now. So this company, which delivered a great fourth quarter but merely a good first quarter, is now being seen in a very different light.

Here's what I wrote back in January: "Zoltek looks to be moderately profitable in fiscal (September) 2012, perhaps earning around $0.25 a share.

Next Page >>123
iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageDefensive Sectors Lead Hesitant Market, But Traders Honor Long-standing Bullish Support

Last week, the major indexes fell back below round-number thresholds that had taken a lot of effort to read on...

article imageWill Janet Yellen's Outlook Prevail?

Federal Reserve Chairwoman Janet Yellen told the crowd last week that rate hikes are coming. The rise will read on...

article image3 Deep Value Stocks That Could Mount A Turnaround

Although the market action was a bit choppy in the first quarter of 2015, one fact is inescapable: the read on...

article imageFrenzied Speculative Activity In China's Equity Markets

It's time to take another look at the recent developments in China's equity markets as major indices hover read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.