Stocks To Watch: Codexis, Michael Kors, Valero...

by: SA Stocks To Watch

Once the market opens, you can track how today's Stocks To Watch are performing here. To send in your own ideas for tomorrow's Stocks To Watch, email before 6:00 AM ET Tuesday.

Apollo Education Group (NASDAQ:APOL) - short - Bill Maurer

  • The U.S. Department of Education will review the company's administration of federal student financial aid programs.
  • Enrollment at for-profit education companies is declining as government scrutiny increases.

Codexis (NASDAQ:CDXS) - long - David Zanoni

  • Codexis inked a licensing deal w/ GSK for its CodeEvolver technology.
  • CodeEvolver enables the rapid development of enzymes for use in pharmeceuticals & healthcare products.
  • The deal is worth $25 million over 2 yrs. for Codexis + potential milestone payments of $38.5 million per project. Look for the stock to jump higher on this news.

GoPro (NASDAQ:GPRO) - short - Bill Maurer

  • Reality has set in, as shares have come more than 26% off their high.
  • A negative Barron's article over the weekend sent shares lower Monday.
  • Stock still expensive after the fall.

GT Advanced Technologies (GTAT) - long - Bill Maurer (may initiate a position)

  • Stock has been hit by 3 recent downgrades, causing 25.7% fall in shares.
  • Short-term sapphire concerns may be valid, but long-term potential remains.
  • Huge short interest could cause short squeeze when stock starts to rebound.

Loral (NASDAQ:LORL) – long – Chris DeMuth Jr.

Michael Kors (NYSE:KORS)- long- Brad Kenagy (no position or plans)

  • Michael Kors was the worst performer in the S&P 500 because of a column in the Wall Street Journal, that I believe did not have any real substance; the article was simply a warning to KORS that they should make sure they do not end up like Coach (NYSE:COH).
  • Michael Kors over the last year has grown its quarterly revenue at a rate of 12.68%, whereas Coach has had declining revenue 3.47%.
  • KORS stock is sitting only a few pennies above a horizontal level of support which has been in place since late 2013, and on the move down today, slightly crossed below its 200-day moving average, which I believe will be a false crossing, and shares could rebound higher.

Valero Energy (NYSE:VLO) – short – Jordan Flannery (no position)

  • Shares of Valero fell by 3.5% in after-hours trading yesterday after the company provided an update for its Q2 2014 performance.
  • The company now sees income from continuing operations between $1.10 and $1.25 per share, which is below consensus estimates. Valero also expects to report a $0.12 per share loss from discontinued operations relating to the company’s closed Aruba refinery.
  • Look for shares of Valero to continue to weaken in today’s trading session as investors signal their discontent with these projected results.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.