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The stocks featured in this article are speculative stocks. In other words, you should use your Las Vegas money only. In terms of fundamentals, they look terrible in every sense of the word; these stocks were picked from the bottom 100. One could almost say this is a form of dumpster diving. Why would we even bother to look at any of these plays? Well history illustrates that even the worst of stocks can mount pretty strong rallies; usually these rallies do not last but they are strong enough to produce some rather handsome returns. Investors, who are risk averse or looking for strong candidates, should stop and move on right now. These stocks are only for those who are willing to take on risk and understand that some of these plays could potentially drop to zero.

The following factors should be viewed as small positive developments if present in any of the suggested plays.

  • The rate at which net income is dropping is slowing down.
  • The rate at which cash flow per share is dropping is slowing down.
  • Sales for the past three year are trending upwards.
  • Projected 3-5 year EPS growth is in 10%-15% ranges.
  • A current ratio above 2.5 0
  • A quick ratio of 2.00

Bonus factors

  • Volume spike on an up day - this is usually a sign of accumulation and maybe close to putting in a bottom.
  • Insider buying - it is always a good sign of a turnaround, especially if the stock is beaten down.

Company: First Solar Inc (NASDAQ:FSLR)

Growth

  • Net Income ($mil) 12/2011 = -39
  • Net Income ($mil) 12/2010 = 664
  • Net Income ($mil) 12/2009 = 640
  • Net Income Reported Quarterly ($millions) = -449
  • EBITDA ($mil) 12/2011 = 182
  • EBITDA ($mil) 12/2010 = 918
  • EBITDA ($mil) 12/2009 = 821
  • Cash Flow ($/share) 12/2011 = 8.78
  • Cash Flow ($/share) 12/2010 = 9.57
  • Cash Flow ($/share) 12/2009 = 9.05
  • Sales ($mil) 12/2011 = 2766
  • Sales ($mil) 12/2010 = 2564
  • Sales ($mil) 12/2009 = 2066
  • Annual EPS before NRI 12/2007 = 1.53
  • Annual EPS before NRI 12/2008 = 4.24
  • Annual EPS before NRI 12/2009 = 7.53
  • Annual EPS before NRI 12/2010 = 7.68
  • Annual EPS before NRI 12/2011 = 6.01

Performance

  • Next 3-5 Year Estimate EPS Growth rate = 15
  • 5 Year History EPS Growth 12/2011 = 36.43
  • ROE 5 Year Average 12/2011 = 21.08
  • Return on Investment 12/2011 = 8.54
  • Current Ratio 12/2011 = 2.48
  • Current Ratio 5 Year Average = 3.72
  • Quick Ratio = 2.2
  • Cash Ratio = 1.33
  • Interest Coverage Quarterly = N/A

Notes

Short percentage of float is a massive 48.2%. This makes it an ideal candidate for a short squeeze.

Company: Complete Genomics, Inc. (NASDAQ:GNOM)

Growth

  • Net Income ($mil) 12/2011 = -72
  • Net Income ($mil) 12/2010 = -58
  • Net Income ($mil) 12/2009 = -36
  • Net Income Reported Quarterly ($mil) = -20
  • EBITDA ($mil) 12/2011 = -58
  • EBITDA ($mil) 12/2010 = -46
  • EBITDA ($mil) 12/2009 = -27
  • Cash Flow ($/share) 12/2011 = -1.83
  • Cash Flow ($/share) 12/2010 = -0.38
  • Cash Flow ($/share) 12/2009 = N/A
  • Sales ($mil) 12/2011 = 19
  • Sales ($mil) 12/2010 = 9
  • Sales ($mil) 12/2009 = 1
  • Annual EPS before NRI 12/2010 = -4.38
  • Annual EPS before NRI 12/2011 = -2.4

Performance

  • EPS Growth Quarterly(1)/Q(-3) = 125
  • Return on Investment 12/2011 = -66.18
  • Current Ratio 06/2011 = 3.41
  • Current Ratio 5 Year Average = 3.04
  • Quick Ratio = 3.27
  • Cash Ratio = 3.03
  • Interest Coverage Quarterly = N/A

Notes

Percentage short of float is 9.4%.

Company: A123 Systems (AONE)

Growth

  • Net Income ($mil) 12/2011 = -258
  • Net Income ($mil) 12/2010 = -153
  • Net Income ($mil) 12/2009 = -86
  • EBITDA ($mil) 12/2011 = -221
  • EBITDA ($mil) 12/2010 = -133
  • EBITDA ($mil) 12/2009 = -72
  • Cash Flow ($/share) 12/2011 = -1.73
  • Cash Flow ($/share) 12/2010 = -1.29
  • Cash Flow ($/share) 12/2009 = -0.71
  • Sales ($mil) 12/2011 = 159
  • Sales ($mil) 12/2010 = 97
  • Sales ($mil) 12/2009 = 91
  • Annual EPS before NRI 12/2008 = -9.04
  • Annual EPS before NRI 12/2009 = -2.55
  • Annual EPS before NRI 12/2010 = -1.46
  • Annual EPS before NRI 12/2011 = -2.02

Performance

  • Percentage Change Price 52 Weeks Relative to S&P 500 = -82.83
  • Next 3-5 Year Estimate EPS Growth rate = 20
  • EPS Growth Quarterly(1)/Q(-3) = 109.8
  • ROE 5 Year Average 12/2011 = -43.86
  • Return on Investment 06/2011 = -51.43
  • Current Ratio 06/2011 = 2.96
  • Current Ratio 5 Year Average = 5.52
  • Quick Ratio = 2.09
  • Cash Ratio = 1.69
  • Interest Coverage Quarterly = N/A
  • Book Value =1.27

Notes

Short percentage of float is at 23.5%.

Conclusion

These are not plays one should consider holding for the long run. If you get into them and they happen to take off, bank the profits immediately. These are highly speculative plays and only those willing to gamble should take part in them.

Disclaimer

This list of stocks is meant to serve as a starting point. Please do not treat this as a buying list. It is imperative that you do your due diligence and then determine if any of the above plays meet with your risk tolerance levels. The Latin maxim caveat emptor applies - let the buyer beware.

Source: First Solar Inc Among 3 Speculative Plays To Consider

Additional disclosure: EPS and Price Vs industry charts obtained from zacks.com. A major portion of the historical data used in this article was obtained from zacks.com.