I once again have the honor of announcing this week’s Outstanding Performance award winners. This week, we've highlighted an outstanding short call and a similarly impressive long call. Each award comes with a payment of $2,500 for doing an outstanding job of helping Seeking Alpha readers find alpha.
This week’s Outstanding Performance Award winners are:
- Edward Schneider, CFA for his short idea on KiOR (NASDAQ:KIOR) published in October 2011. Return to date: +99%
- Valuable Insights for his long Top Idea on ChipMOS Technologies (NASDAQ:IMOS) published in March 2013. Return to date: +98%
An update to each thesis is available in the comment streams of each original article, linked above. Valuable Insights' article was a Top Idea, and part of the SA PRO equity research archive available exclusively to SA PRO subscribers, to which Schneider's award-winning article will be added. In honor of the awards, Schneider's 2011 article on KiOR will be unlocked to all for the next 48 hours.
About the winners
Edward Schneider, CFA, is a managing director of Quan Management LLC, with over 25 years of experience in the investment industry, including quoted equities and venture capital. In June he wrote a fascinating wrap-up of his numerous visits to tech conferences and visits with the management of seed-stage and newly public companies in the first half of the year. (He did the same in 2013.)
Schneider's short call on biofuels company KiOR was an impressive call indeed. KiOR had a market cap of $1.7 billion at the time of publication, and bullish commentary from Wall Street analysts. Yet Schneider pointed out the potential downside from even the most optimistic projections, and estimated fair value at less than 10% of the company's valuation at the time, even correctly calling out a December lock-up expiration as a key downside catalyst. On Friday, Schneider summed up Kior's long fall, as the company appears to be on the verge of bankruptcy.
Valuable Insights has been a contributor since early 2012, focusing primarily on the semiconductor space, in addition to broader tech stocks. An impressive long call on Micron - which would triple over the next year - and a short thesis on Intel in early 2012, in addition to continuing coverage as IMOS shares rose, show impressive proficiency in analyzing the sector.
VI's first Top Idea on IMOS was just one in a series of outstanding articles; the stock continued to rise after subsequent coverage in June 2013 and May 2014. The articles showed not only excellent financial analysis, but impressive technical proficiency, and represent an outstanding example of the continuing coverage available on the PRO platform. Valuable Insights has offered an update for PRO subscribers on the original article; his comment can be seen here.
Congratulations to this week’s winners! Look out for a new pair of Outstanding Performance award winners next Monday, and each Monday following.
And here’s a page with all previous winners.
More about Outstanding Performance awards
Seeking Alpha aims to help investors outperform the markets. In awarding authors of outstanding stock ideas that played out, we hope contributors will be motivated to share more outstanding long and short ideas with our readers - which benefits everyone.
Here's what we'll be looking for:
- Performance: Above all, we're looking for ideas that made SA readers money. Risk matters, so we’ll be looking at the stock’s market cap, Sharpe ratio, etc. as well.
- Confluence: Every idea has a thesis. Did the idea play out for the reasons proposed or not?
- Compelling: For an idea to be outstanding, it needs to be sufficiently convincing that a reader would have been compelled to take a deeper look at the stock and potentially take a stake. In assessing compellingness, we’ll be looking at a number of factors including article comments (how did readers react?), historical performance (does the author have a track record of well-thought-out stock ideas?), voice of expertise (does he/she come across as someone who has unusual insight into the stock?), and how thoroughly the article covered key issues (reasons for market mispricing, catalyst(s), competitive landscape, company management, key risks, etc.). In other words, we’ll be looking for the same things readers look for when assessing an idea.
To qualify for an award, the idea needs to have been submitted exclusively to Seeking Alpha. We will also be asking award winners to publish an update to their thesis, either as a comment to the article or as a standalone article.
Generally, we'll be looking for longer-term ideas that offered meaningful upside to readers. We'll be going back as far as two years or even further. We may also reward ideas that played out outstandingly over a shorter timeframe. But we will not be using Outstanding Performance awards to reinforce extreme short-term price volatility.
To get exclusive access to these articles after they are selected, as well as early and archival access to many of our top performing ideas, subscribe to SA PRO.
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