What Stocks To Buy Or Sell? Quanta Services Inc (PWR), Emulex Corporation (ELX) and Miller Energy Resources Inc (MILL)
New York, NY – GDP INSIDER – 05/01/2014.
This article discusses three companies: Quanta Services Inc (NYSE:PWR), Emulex Corporation (NYSE:ELX) and Miller Energy Resources Inc (NYSE:MILL)
Quanta Services Inc (NYSE:PWR) cut its guidance in its earnings report yesterday leading to a 2.6% selloff in the shares. The stock was down $0.77 to $28.91 on around 2.5x the daily average. In addition, the company announced selling a subsidiary to Crown Castel International Corp. (NYSE:CCI) for $1 billion. After tax, the deal will yield $800 million to Quanta and allow the company to better focus on its core business as an infrastructure contractor to the power and oil & gas sectors. The cash can contribute further to earnings growth via repurchases or acquisitions.
Emulex Corporation (NYSE:ELX) reported a 3Q 2015 loss on Wednesday of $59 million or earnings of $0.82 per share. After one-time items, the loss was $0.16 per share on revenue of $96 million. The stock is up by 41% so far year-to-date, and it is up by 62% over the past year. The MFI is at 89, which is relatively high. We should look for a potential reversal in the stock. In addition, the RSI is over 69 and was over 72 recently, also a signal that we could see some further selling pressure over the near-term.
Miller Energy Resources Inc (NYSE:MILL) was down by 21% to $0.7251 yesterday. This compares to a 52-week range of $0.62 – $6.60. The company recently announced that it has engaged Global Hunter Securities to restructure the company. It also received notice from the NYSE regarding its continued listing requirements, and it received a “Wells Notice” due to its 2009 Alaska asset acquisition in 2009. The RSI and MFI are both very low at 29.8 and 12. However, this is not a signal of a reversal and fundamentals are very uncertain.
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