You Snooze, You Lose

It is a fast paced world.  I write a blog one day, and then things change the next.  It is earnings season after all.  I wrote yesterday about how CYOU had run away from me and was less of a candidate for my August MFI tranche.  Well, they dropped like a rock coated in cement yesterday.  Down about 20%.  So still 14% above where they were a month ago, but you get the picture.

I guess they dropped because of their earnings (Changyou Reports Second Quarter 2013 Unaudited Financial Results).  But the 20% drop did not really add up with what I read.  Taking the bigger view, they made $1.40 per share and that is roughly what they expect next quarter.  That is a $5.60 run rate. They have over $200m in excess cash. They are trading at $33.  If their revenues are declining, I will likely not buy in August as I have stated my focus is on growth stocks going forward.  But I certainly would not sell.

Activist Involvement

CF Industries spiked about 10% yesterday on the news that Third Point has made an investment in the stock (CF Industries shares spike 10 percent after Third Point buys stake). I have commented many times here how cheap I think CF is currently.  They are still on my short list as an August add unless they run away from me.

Klic Clicks

A third stock I mentioned yesterday was KLIC.  recall this was a stock I bought in May tranche and then made a pretty sizable discretionary purchase in June.  They have a ton of cash, but stock was a bit depressed due to cyclical nature of their business.  Well, it appears the cycle is turning their way this morning.  They announced solid earnings and gave pretty good guidance.  I am very tempted to buy more, but will probably wait as I have a decent chunk already.  But it is nice to get to say "I told you so" (Kulicke & Soffa Reports Third Quarter 2013 Results).

GNW Reports Tonight

As I mentioned the other day, GNW has risen from #4 in my portfolio to #2 (behind AAPL) in past month (despite my selling 30% of my shares in May - a mistake), as they have been on fire of late.  They announce tonight after the bell.  We will see what we will see.