We’re Here to Pump...You Up!

The SNL catch phrase headlines were not intended this week, but we will keep it going from the 2000's Wednesday, the 1990's yesterday, to the 1980's today. "Pumping Up with Hans and Franz" was a regular with Kevin Nealon and Dana Carvey late in the decade and was a steady go to skit for the show at the time. My favorite was when the real Arnold showed up.

The steady go to for market analysts and commentators for discussion is the eventual Fed 'taper', which will end the “pump up” of the market in many experts’ opinions. The meeting Wednesday was status quo, as the minutes stated the Fed would continue the massive bond buying program which should keep the bull market going.

OK, if you are like me these stories are becoming like an overdone SNL skit, which even “Pumping Up with Hans and Franz” became eventually. Having said that, two-thirds into the month of September the Russell 2000 is up over 5% for the month, which is bucking the recent trend of September sell-offs. So until Uncle Ben does anything different, don’t be a “girlie man”, keep on riding the highs.

Check this one out, from our previous Market Monitor picks that has great momentum/accumulation, very bullish technical analysis, and a strong valuation based on future earnings. This is the winning formula right now.

Harmonic, Inc. (NASDAQ – HILT - $7.68) +32%

It was a slow, steady climb for the media technology firm from our first spotlight in mid March. About the end of June the stock entered an accumulation phase and is up nearly 25% from the $6.25 levels at that time, trading over 750,000 shares per session on average. The 5-day, 20-day, and 50-day all are very bullish when analyzing the charts. The forward P/E is under 24, which is decent. However, earnings per share are forecast to jump over 80% from 2013 to 2014, going from $0.18 to $0.33. All three components of the equation are intact, does it make sense? Just at quick glance, the Company has had tremendous deal flow over the past several months, no doubt one of the big reasons the stock has jumped. We think the momentum continues to the $9.00 level be November 1.

Have a great weekend!

Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.

Disclaimer:

This Market Monitor blog was prepared for informational purposes only. Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research, which typically highlights small cap companies, and Goldman Opportunity Research, which features micro cap companies in a sponsored research format. Thus, the Select product reflects the Firm’s internally generated stock ideas while the Opportunity product reflects sponsored research reports. 

Goldman Small Cap Research is not affiliated in any way with Goldman Sachs & Co.

It is important to note that while we may track performance separately, we utilize the same coverage criteria in determining coverage of all stocks in both research formats. Please view the company’s individual disclosures for each engagement, which can be found in each company-specific report. All information contained in this blog, newsletter and in our reports were provided by the Companies or generated from our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations. 

The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small Cap Research blog, report, note, or newsletter is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed.

This blog does not take into account the investment objectives, financial situation, or particular needs of any particular person. This blog does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA or with any state securities regulatory authority.

ALL INFORMATION IN THIS BLOG, REPORT OR NEWSLETTER IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS   INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.

For more information, visit our Disclaimer: www.goldmanresearch.com