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Stephen Castellano
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J. Stephen Castellano founded the investment research and strategy consulting firm Ascendere Associates in 2009, building upon a diversified 15-year career in sell side and buy side equity research. His roles included coverage of the steel industry at PaineWebber and telecom services at Warburg... More
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Ascendere Associates LLC
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  • Signal Not Confirmed; Theoretical VeriSign Position Still Open

    This past Friday I noted that VeriSign (NASDAQ:VRSN) reached a short-term price target and it was likely to close on Monday. The model updates price targets on a daily basis and VRSN actually fell short of the new adjusted price target by a few pennies. Therefore the theoretical model still considers the position to be open (the price target right now is $90.30 versus the current price of $90.18).

    Once a price target is reached the position is considered closed the following day. I find this to be a more realistic approach for this theoretical model. Sometimes the stock price falls below the stock price adjusted for the next day, which is what occurred here.

    Been very busy developing a budget forecast for a well-funded startup company with a (NYSE:CRM) type business model, so I didn't have time for a quick update yesterday evening.

    It is really quite amazing this CRM story -- there have been so many companies that have tried to emulate CRM and have benefitted from doing so, but so few have achieved its level of stellar growth.

    I just ordered "Behind the Cloud" by CEO, Marc Benioff. I think this will be a good resource to better understand how to forecast salesgrowth and sales team expenses for hypergrowth companies.

    Nov 24 8:50 AM | Link | Comment!
  • VeriSign Inc. Reaches Short-Term Price Target

    A long position in VeriSign Inc. (NASDAQ:VRSN) in our theoretical long models reached a price target today and will likely be assumed closed at the end of trading on Monday, November 23. VRSN is up 12% for the month.

    For the MTD, the theoretical long models are up 2.14% and stocks in the theoretical short models are down -1.61% (for a +1.61% gain). The resulting theoretical long/short model is up 3.75% MTD.

    The S&P 500 is up +0.53% for the month.

    In the previous November 12 post I noted that volatility was increasing and it could portend a sell-off in the market. As a result I hedged real-time theoretical positions with the short basket of low-quality stocks. The sell-off didn't materialize and I closed this hedged position near the close on Monday, November 16.

    For updated stock returns and price targets visit please see

    Nov 20 7:57 PM | Link | Comment!
  • Executed Additional Theoretical Short Sales

    Executed theoretical short sales in a basket of low-quality stocks in the StockViews account this morning. Also long TVIX. This follows execution of theoretical short sales in the InvestFeed account yesterday.

    The basket of low quality stocks may be found in our latest model portfolio report.

    Nov 13 10:19 AM | Link | Comment!
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