IB Net Payout Yields Model

Invest like me - only at Covestor.com

Ouster: Deep Value, But Hesitant To Load Up

By -

Update - Apr. 10

Ouster announced a reverse split effective April 21. The announcement is not a surprise with the stock trading below $1 again and traders pressuring for the move. 

  • Ouster (NYSE:OUST) board of directors has approved a 1-for-10 reverse stock split, par value $0.001 per share.
  • It is expected to become effective on Thursday, April 20, 2023 and trade on NYSE on April 21, 2023 under the existing symbol "OUST". 

Original article posted on Mar. 30

  • Ouster reported Q4'22 results, but the company provides limited details on the Velodyne Lidar business.
  • The Lidar company closed the merger on February 10 with confirmed guidance for combined Q4'22 revenues of at least $23 million.
  • Ouster guided to Q1'23 revenues of only $16 million without providing a complete picture of Velodyne Lidar revenues.
  • OUST stock trades below 4x the '22 bookings of Ouster alone, yet the lack of combined pro forma financials leaves a lot of unanswered questions.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » 
As with any stock, the first quarterly report after a change in a corporate structure can be very volatile. This was the case with Ouster (NYSE:OUST) after finally reporting December quarter results following the merger with Velodyne Lidar. My 

Read the full article at Seeking Alpha. 

Disclosure: Long OUST. Please review the disclaimer page for more details. 

Comments

Post a Comment

Popular posts from this blog

ChargePoint: Low Quality Beat

By -
Image
  ChargePoint beat FQ2'22 revenue estimates, but the losses are mounting. The company guided up FY22 numbers partly due to acquisitions. The stock still trades at an estimated 21x FY23 number leaving limited upside for the stock and reinforcing why venture funds sold 13.8 million shares. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.  Learn More » After  solid FQ2'22 earnings ,  ChargePoint Holdings  ( CHPT ) has seen a nice bump in the stock. Now investors have to confront the valuation divide and deal with the past insider sales likely leading to future sales on any stock rallies. My  investment thesis  remains very Bearish on the EV charging station stock on any rallies into the mid-$20s. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.  Update - Sept. 8 Be cautious when analysts strugg...
Read more

Occidental: Still Producing Too Much Oil

By -
Image
Though oil continues plunging, the oil giants continue producing more. For Q4, Occidental Petroleum (OXY) had roughly flat production. The worst part is that OXY plans to grow production by 2% to 4% in 2016. The stock has held up somewhat strong, but the inability to turn off the spigot remains troubling. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 
Read more

Aurora Cannabis: Deal Or No Deal

By -
Aurora Cannabis was left out of the major deal making in 2018. The cannabis company updated FQ2 guidance to revenues of $50 to $55 million with a continued focus on pure production growth. The stock is down as the market is becoming less impressed with commodity farming operations due to the prime Oregon example. The stock is below key resistance at $5.40 as medical cannabis patient totals failed to impress. As the end of 2018 came and went,   Aurora Cannabis   ( ACB ) was a notable absentee from the deal making in the cannabis market. Just about all of the other major Canadian cannabis players got large investments or signed up powerful partnerships, but the related stocks didn't generally maintain rallies following the deals. Based on the early legalization data in Canada and Oregon, the best option for Aurora Cannabis might actually be selling production capacity while the Canadian market remains hot. Read the full article on Seeking Alpha.  Disc...
Read more