March WWW - "What's Wolf Watching?"
Buy Zones & Danger Zones - Earnings previews over the next 30 days
Last month I discussed a tough earnings season and with a few exceptions that trend continued through late February into early March.
As was the case in my January WWW article, I had many more Danger Zones and fades than Buy Zones in the February edition as well. Before we get into March previews, let’s take a look back at what I said last month.
MDA Space - Many of us in the Wolf Den discord were buying into the weakness late last year when the stock bottomed to just under $21. When MDA lost their large contract late last year the stock plummeted at opening creating a $6+ gap between $38 and $44 which I dubbed “The Grand Canyon Gap”. The stock traded under $35 when I published my Feb WWW and in it I told readers I was looking for that gap to close. It did so and ran to as high as $46 post earnings for a gain of nearly 32%.
BluMetric Env - I amplified concerns from my previous review that investors did not know enough about the profitability of their recent acquisition. The stock tanked on earnings and has decreased by nearly 23% from last months article.
KITS Eyecare - Again, I had concerns and suggested their already inflated valuation multiples would get more expensive post financials. Not only did that occur, but their financials revealed a highly questionable investment in a Bitcoin ETF, and perhaps more concerning, poor transparency from management and complete lack of holding management accountable from analysts. The stock is down more than 26% since.
McCoy Global - Another Danger Zone call resulting in a 21% decline over the past month with further pressure added given the current situation impacting the Middle East and balance sheet concerns
I also told readers I was fading the following - Haivision Systems dropped 19%, Illumin Holdings decreased 16% and ZTE Electronics by 11%
I called out a post financials Buy Zone for Progressive Planet predicting a dip opportunity. The dip portion has now occurred with the stock down after earnings this past Friday. It remains to be seen how the Buy Zone opportunity will work out.
Not all my earnings previews worked out as predicted.
I faded Avante Corp and they are up 14%
I put Covalon Technologies into a Danger Zone and they are up 9% soaring much higher the first few days post earnings before fading late last week
Kneat.com disappointed everyone including my Buy Zone call, falling by 11%
A decent report card overall. Let’s see how we make out this month looking at the following:
Namesys Inc.
Pyrogenesis Inc.
Healwell AI
Intermap Technologies
iFabric Inc.
Neupath Health
Draganfly Inc.
Adcore Inc.
Baylin Technologies
Auxly Cannabis
Sabio Holdings
Cleantek Industries