Vince Martin
Long/short equity, value, gambling

Cray Still A Strong Buy, Only Cheaper

Sometimes the stock market makes you just shake your head. Shares of Cray (NASDAQ:CRAY) plunged 17 percent in early May after first quarter earnings apparently disappointed investors. To be fair, revenue did dip sharply year-over-year, and a 13 cent per share profit in Q12012 turned into a 20 cent per share loss in Q12013. And Cray had put together a very strong bull run -- rising all the way from $5 per share in October 2011 -- which perhaps led to some profit-taking:

CRAY data by YCharts

All that said, the post-earnings drop made little sense. First off, Cray's main business is designing supercomputers; much of its revenues come from major projects, making quarter-to-quarter comparisons not only difficult...

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