PRO+ Weekly Digest: Focusing On Short Ideas Following The Market Rebound

by: SA PRO+ Editors

We highlight a PRO+ long idea on Ascendis Pharma that played out.

Revisiting the bullish thesis on Fonar.

Our idea screen of the week takes a look at short ideas following the market rebound.

Welcome to the latest issue of the PRO+ Weekly Digest in which we publish highlights from our PRO+ coverage. Comment below or email us at pro-editors at to let us know what you think. Find past editions here. PRO+ subscribers can access interviews by following the SA Interviews account and view past interviews under the same account.

Click here to read the interview with Juggernaut Capital.

PRO+ idea playing out

Ascendis Pharma (NASDAQ:ASND) is up ~75% since ONeil Trader made the bullish case in November 2017, as its TransCon hGH had the potential to become the new standard of care in growth hormone deficiency, TransCon hGH alone provided long-term upside potential and TransCon PTH/CNP could match or exceed the value of TransCon hGH in the following years. ONeil Trader discusses the primary drivers behind the move in the update comment below:

PRO+ Weekly Digest idea playing out

In a previous version of the PRO+ Weekly Digest from September 2017, we said the pullback may provide an attractive entry point re the bullish call by Will Miller on Axon Enterprise (NASDAQ:AAXN). Since then, the stock is up ~75%.

Call from the archive - FONR

Fonar (NASDAQ:FONR) is down ~15% since Boris Marjanovic shared his bullish thesis in September 2017. As he explains a likely reason for the decline in the update comment below, and with ~100% upside to the midpoint of the price target, this thesis may be worth revisiting.

Idea screen of the week

Each week we use the PRO+ Idea Filter to find potential ideas based on a recent news event. This week, PRO Editor John Leonard, CFA looks at short ideas following the market rebound.

For investors doubting the speed/magnitude of the recent market rebound but looking for short ideas with a catalyst, I ran a screen of PRO Short Ideas.

Two ideas turned up in this screen that might be of interest (prices as of March 15 close):

Carrols Restaurant Group (NASDAQ:TAST) by Vince Martin: Published on December 26, 2017, down ~5% since publication, author's price target offers an additional ~30% downside. The bull case based on buying undervalued franchises cheap and boosting margins appears weak as FCF is still negative, EBITDA growth has stalled out, margins are compressing, and the supposed scale simply isn't apparent.

New York Community Bancorp (NYSE:NYCB) by Renaissance Research: Published on November 22, 2017, up ~10% since publication, author's price target offers ~25% downside. NYCB trades at a premium to peers despite an aggressive funding profile, multiple margin headwinds, sluggish loan growth, and weak organic capital generation.

About the PRO+ Weekly Digest

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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Check with individual articles or authors mentioned for their positions.