Stocks To Watch: magicJack, Globant, RCI Hospitality, Sprouts Farmers Market

by: SA Stocks To Watch


SA contributors highlight stocks to watch for unusual movement, their bias (long/short), and brief comments.

Stocks are listed alphabetically by symbol. Click on the contributor's name to read more articles by that author.

Discuss today's stocks and ask contributors questions in the comments.

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 Wednesday.

magicJack (NASDAQ:CALL) - long - Alex Pitti

  • Reported second quarter earnings of $0.31 per share and revenues of $29.5 million.
  • The stock traded lower in the after hours.
  • This is a buying opportunity because the company will be improving its call quality some time in the second half which should help lower churn further. The management team is behind schedule because they are implementing so many changes at once. It shows prudence that they are waiting to improve call quality before launching their international products.

Globant (NYSE:GLOB) - long - Don Dion

  • The 25-day quiet period on underwriter research for GLOB (July 17 IPO) ended August 11.
  • On August 12, GLOB’s IPO underwriters will be able to publish research reports on GLOB, likely leading to at least a temporary rise in the price of GLOB shares—approximately +2.3%, according to our latest research.
  • Despite GLOB’s fairly slow start on the market, strong revenue expansion and impressive underwriting keep us optimistic on GLOB long term.
  • Additional information here.
RCI Hospitality (NASDAQ:RICK) - long - Alex Pitti
  • Reported Non-GAAP EPS of $0.37 per share and same store sales increasing at a 5.1% clip.
  • Starting a $10 million share repurchase program which will purchase the stock up to $15 per share.
  • Plans on opening two more Bombshel restaurants in the 4th quarter.
  • REIT is beginning to be formed which will unlock value for shareholders.

Sprouts Farmers Market (NASDAQ:SFM) - long - Alex Pitti

  • Apollo Management will be selling 15 million shares of common stock.
  • The stock has sold off about 4% after hours on this news.
  • This is a short term headwind for the stock. The company reported a same store sales increase of 9.5% last week and this sell-off will be wiping away most of the gains from this news. This provides you with a great entry point to get into a company that is beating out Whole Foods (NASDAQ:WFM) because of its value proposition (low prices).