Cree Inc. Achieves Short Sale Price Target

Aug. 09, 2017 6:48 PM ETWOLF, KITE, NKTR, SPY, STMP, TSE
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Long/Short Equity, Growth At A Reasonable Price

Contributor Since 2009

J. Stephen Castellano founded the equity research and financial modeling consulting firm Ascendere Associates in 2009, building upon a diversified 20-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 Dillon Read (the predecessors to UBS), where he worked closely with institutional sales people, traders and investment bankers. In addition, he provided analytical support for numerous independent valuation, consulting and investment banking studies, including for mergers, secondary offerings and IPOs. At Ascendere Associates, in addition to developing equity research for family offices and other clients, he has consulted for a wide range of startups, established businesses, and global consulting firms. Mr. Castellano holds a B.A. in English from Oberlin College, an MBA from the F.W. Olin School of Business at Babson College, and has passed the first two levels of the CFA exam.

This is an update to our latest model portfolio report, 33 Stocks for August 2017.

Cree Inc. (CREE) achieved its short sale price target in the theoretical portfolio models today. The position will be assumed closed at the end of trading tomorrow, August 10, 2017. MTD the stock is down -9.30% for the assumed inverse short sale gain of +9.30%.

MTD the theoretical long model portfolios are down -0.23% versus the S&P 500 up +0.15% and the SPDR S&P 500 ETF (SPY) up +0.20%.

Stocks in the theoretical short sale model portfolios are down -3.71% for the assumed inverse short sale gain of +3.71%.

The theoretical long/short model portfolio strategies are up +3.48% MTD. (STMP) is leading the long model with a 42.64% return as of its August 4 closing price. Trinseo S.A. (TSE) is the loss leader in the model, down -14.72%.

In the short model, Nektar Therapeutics (NKTR) is leading with an assumed +14.43% short sale gain, and Kite Pharma, Inc. (KITE) is the worst performing with an assumed -11.59% short sale loss.

Below are updated stock price targets and model portfolio return data.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: As a simple quantitative model based on fundamental rankings, the portfolio models do not take into account rumors or pending M&A transactions. Theoretical return data reflect simple cumulative returns (not compound returns) and do not assume the impact of costs such as execution fees, margin fees, slippage, the availability of stocks for short selling, or any other kind of cost. There are limitations inherent in our theoretical model results, particularly with the fact that such results do not represent actual trading and they may not reflect the impact material economic and market factors might have had on our decision making if we were actually managing client money. We do our best to provide accurate information in this report, but do not guarantee its accuracy.

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