Q3 2024 Additions and Deletions
A few comments on names either added or deleted from my interest list, plus a few comments on why I continue watching a couple of other names
From an interest list perspective, not a whole lot changed during Q3:
25 names were on my list at the end of Q2, all of which are staying.
7 new ideas were shared with subscribers.
2 of the new ideas are both being added and removed at the same time.
1 of the new ideas was for Founding Subscribers only and will not be included.
29 names will be carried forward to the Q4 interest list.
As for names being removed, they include both AEHR and UBXG, both for performance reasons.
AEHR was mentioned on July 17th as the company’s shares were breaking through $21 and appeared poised to climb higher. Investors believed that when the stock was hitting the $10 level less than a month earlier that the bottom was clearly in, and that better times were surely around the corner. When the company announced Q4 results on July 16th that appeared to both exceed their prior revised (downward) guidance along with forward guidance that appeared hopeful, the stock blasted higher even though the analyst community appeared somewhat skeptical.
I pointed out that beating lowered numbers when their backlog pointed towards that higher number was kind of ridiculous. I also pointed out that forward guidance, though slightly higher on a year over year basis, also included revenues from an acquisition, and if you excluded those revenues, then revenues in the coming year would be down over the prior year.
So the bottom certainly was not in.
Their shares have since retreated from the $21 level to around the $13 level today. I mentioned in that piece that I would not be adding AEHR back to my list, so I am both adding and removing it at the same time. If any of my free subscribers care to read the entire post, I have removed any paywalls from it and the link is here.
UBXG turned out to be one of those simply unexplainable disaster du jour names that suddenly opens up one day down 90% from where it closed the day before. Though originally pointing it out to subscribers on August 14th at $13.95, it would go on to close a week later at $31.90 before opening at $4.91 the next day and eventually closing at $2.35. Now it’s at 70 cents. Quite the quick turnaround, and no explanation for any of it. Just one of those things. Totally normal.
You don’t see that with any other companies but for Chinese names, btw, and you would think either your SEC or FINRA or NASDAQ or one of those other 3 letter agencies that is supposed to be tasked with protecting investors would get wise to the situation and start connecting some dots and put a stop to it all. Surely the listing fees can’t be worth it. Thoughts like that lead to those conspiracy theories that maybe our elected officials aren’t really looking out for us at all, and maybe enriching themselves through other channels.
Sorry for the rant. Anyways, UBXG is being removed since it basically worked, and I hope (though doubt) that somebody out there was able to profit from the move. If you managed to find any shares to borrow, even a tiny amount, and managed to hold on to them through the tumult, it would bring me immeasurable joy to hear about it.
That leads us to a few comments on the addition of 4 new names to our list, along with some thoughts on why I continue to be interested in some other names, though the market is clearly telling me my worries are sadly misplaced.