Zarlink (ZL.TO)

DON'T BUY
Has faced some pretty tough sledding. Ranks low in his database. Company is excited about opportunities on the medical side of their business. Have a core part of their business that is shrinking. Year over year earnings were down 34% but earnings estimates are up 31%.
PAST TOP PICK
(Top pick, April 19, 2007. Down 66%) Has lost an incredible amount of money over the past year. They have sold off some of their assets. The company can return to form, a long-term target of over $10.
HOLD
Played this one really poorly by buying in at $2.26. Lost a lot of money last quarter. Insiders bought a lot of shares, so he is hoping that they are smart. Have good technology. Took over Legacy so they no longer have a clean balance sheet. Likes management.
PAST TOP PICK
(A Past Top Pick Apr 20/07. Down 72.5%.) Still comfortable holding and is on his Buy list. Acquired Legerity, which doubled the company’s size but took on about $75 million debt giving it a messy balance sheet. Still has a lot of cash. Last quarter was a blood bath. Very competitive field. Management has been accumulating stock. Big insider buying. Speculative.
SELL
This one is very much down at the point where you are downside is very small because it is only at $.70. You don't know what the future of this stock is. Has been in a major downtrend for such a long time (2003). There are better stocks out there.
BUY
He owns and it's one of his favourites.
DON'T BUY
They do input/output high speed systems. Recommends passing for now until they build a sustainable business model.
SELL
It doesn't show up well on his value screen and actually shows up more as a Sell than a Buy. Doesn't see any technological breakthrough.
WAIT
Insiders started buying like crazy after the Legerity acquisition, which could double the company’s size. Going to take off about $5 million a quarter for the next 2 quarters, which is really going to hurt. Still likes the company and is comfortable owning it. Wait for tax loss selling before buying.
WAIT
Likes the stock. It had a lot of cash on the balance sheet giving it a lot of manoeuvring room, but spent the cash on an acquisition and is now in the process of digesting it. Will be having some substantial revenue increases going from $30 million a qua
WATCH
Technology is still one of the sectors that he likes. Hit a low a couple of weeks ago. The only one thing troubling about the low was that it occurred with fairly light volume. He would like to see 600,000 or even a million in volume in a day. He is watc
DON'T BUY
Earnings have just collapsed since May/April. His model price has collapsed to $.55. A -66% differential.
DON'T BUY
Has not delivered consistent results. Has not seen a history of management being able to expand beyond their core market.
WATCH
As long as the stock has held the level of 1.5, it is interesting. If they manage to get over the problems they had in the past which started the decline, it might do well. (So long as there is no fundamental problem with the company)
BUY
Excellent management. In a very difficult and competitive sector. Insiders have been buying quite a bit. Crispy clean balance sheet. It could be long-term before it reaches his target of $11.24.
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