Quick note: Watch these two stocks take off this morning:
- Impax Laboratories (IPXL): A blow out quarter. They reported EPS of $0.61 vs. the highest estimate of $0.19. Revenue came in $176 million vs. highest estimate of $103. This is a monster beat folks. This is a small cap $921 million company. If they can repeat this kind of growth in 2010 then the forward PE just shrunk from 16 to under 10. All depends on what they have to say in the conference call that starts at 11:00 am EST to discuss future guidance. Watch the option action. This stock is going to fly off the radar.
- Cinemark Holdings (CNK): The owner and operator of 429 theaters and 4,783 screens reported EPS of $0.36 vs. highest street estimate of $0.28. Revenue came in at $536 million vs. the highest street estimate of $514 million. Attendance in theaters rose 21.2% and tickets sales prices up 10.8%. The conference call will start at 8:30 am EST to talk about future guidance. My first thought was they benefited greatly from 3D motion pictures such as Avatar and Transformers II, and can they really duplicate the performance in 2010. But the press release states they had only 16 3D auditorium operating in 2009 and they will have 30 more in 2010. Will be watching closely for option activity.
Good luck!
About Me
- Fahad Khalid
- Chicago, IL, United States
- I have Masters in Business (Accounting and Finance 2003) from Michigan State University. I have been trading the market since 1998. Prior to picking up trading as a full-time career in 2008, I was a management consultant at Alvarez & Marsal and Conway MacKenzie for four years. I provided turnaround, crisis management and restructuring services to financially distressed firms. Prior to working in turnaround, I worked in Audit & Assurance at Deloitte & Touche for two years. Trading in the market has always remained my side business ever since I started college. 90% of the time, I trade through options. I love volatility skews and positive Theta plays. While I make a lot of directional bets, in general my favorites are to take advantage of high implied volatilities through calendar or butterfly spreads and vertical credit spreads. I never buy straight calls or puts and I do a lot of exotic multi-leg option trades.
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