Our new trade idea, CETX, has released breaking news this morning that could be an additional catalyst for upside opportunity.
Thus far CETX has not presented us with upside, however we are continuing to monitor the opportunity.
As a reminder, CETX needs to hold its lows from yesterday and rally above the 20 day moving average for further upside potential.
Cemtrex Appoints Former Sony Product Development Executive as VP of Advanced Technologies Subsidiary
Farmingdale, NY, Aug. 15, 2017 (GLOBE NEWSWIRE) — Cemtrex Inc. (Nasdaq: CETX, CETXP, CETXW), a world leading industrial and manufacturing company, today announced the appointment of Joe Novelli to VP of Cemtrex Advanced Technologies Inc., to pursue the development and commercialization of proprietary and collaborative Internet of Things (“IoT”) and wearable technology products.
Cemtrex’s Chairman and CEO Saagar Govil commented, “Joe provides us with a deep skillset in product development and commercial market experience that we need in order to successfully bring the technologies our team has envisioned to fruition. He has a proven track record of bringing cutting edge products to market effectively for some of the leading companies in the consumer technology market. I am confident that with Joe’s guidance, we are on the right path to successfully launch our proprietary technologies into the market.”
For more than 20 years, Novelli has held numerous positions at Sony Electronics and Sharp as a developer of new products and market opportunities for a broad line of electronic products. Prior to joining Cemtrex, Novelli was VP of Solutions Planning for Sony’s Digital Paper Solutions division. Under his leadership, Sony developed and launched an advanced new tablet called Digital Paper, offering a realistic paper like screen for reading and annotation of documents. Novelli was also VP of Strategic Product Planning for Sony Audio products, as well as VP of Wireless Platform in Sony’s Digital Reading Business Division, where he developed Sony’s flagship ebook reader and ebook service.
“It is exciting to join Cemtrex at this stage in the Company’s history, as the company looks to expand its activities to develop proprietary technologies. The size of the Company will allow us to be nimble and aggressive when addressing opportunities and challenges as they are presented,” stated Novelli. “I look forward to working with the team on developing some of the product concepts they are already working on. The IoT and Wearable markets are rapidly growing areas and I believe Cemtrex is in an ideal position to be competitive in such markets. The addressable markets for these products are significant, as they offer broad commercial and consumer appeal.”
The Cemtrex Advanced Technology subsidiary is leveraging the Company’s existing design and engineering experience in developing advanced electronic products for third parties to develop new products and solutions, both proprietary and in partnership with other companies, for IoT and wearable applications. The Company plans to pursue collaborative partnerships with OEMs that are looking to incorporate intelligence and connectivity into their everyday products such as: furniture, consumer wearables, industrial safety wearables, and other consumer devices. Cemtrex will look to focus on developing systems, hardware solutions for both consumer and industry applications, and software solutions.
Source: Yahoo Finance
I would like to bring to your attention a new trade idea, one that I believe could provide you with increased upside potential.
Trade Idea: Cemtrex, Inc. (NASDAQ: CETX)
- CETX is currently trading at 3.25, below its 20 and 50 day moving averages.
- CETX has a 20 day moving average of 3.33 and a 50 day moving average of 3.43.
- In the event that CETX can rally and close above the 20 day moving average, there exists increased upside potential.
- CETX has a RSI of 38, suggestive of potential for increased upside opportunity.
- CETX has a history of providing investors with increased volatility and has traded as high as 8.41 in 2017.
- CETX reported earnings today which appear to suggest another catalyst for potential upside opportunity.
- According to the earnings, CETX has $13.2 million in cash/cash equivalents as of June 30th, 2017, while only having a market capitalization of $33 million (according to Yahoo Finance as of 8/14/17). Could be indicative of potentially significant undervaluation.
Cemtrex Inc. (CETX) is a global, diversified industrial and manufacturing company that provides a wide array of solutions to meet today’s technology challenges and is rapidly growing through acquisitions.
Cemtrex provides: manufacturing services of advanced custom engineered electronics, industrial contracting services, monitoring instruments for industrial processes and environmental compliance, and equipment for controlling particulates, hazardous pollutants and greenhouse gases used in carbon trading globally.
Cemtrex Reports Financial Results for the 2017 Fiscal Third Quarter
Farmingdale, NY, Aug. 14, 2017 (GLOBE NEWSWIRE) — Cemtrex (Nasdaq: CETX, CETXP, CETXW), a world leading industrial and manufacturing leader, today reported its financial results for the three-month and nine-month periods ended June 30, 2017.
“We maintained strong topline growth in the third quarter of fiscal 2017, with total revenue increasing 13% to $27.8 million, while remaining profitable. Our ability to drive steady revenue growth is evident when looking out over the past couple of years. Our revenue has increased from $42 million to $56 million to $86 million for the nine month periods ended June 30, 2015, 2016 and 2017, respectively,” stated Saagar Govil, Chairman and CEO of Cemtrex. “We are focused on continuing to grow our business through the acquisition of new, high quality customers, as well as expanding organically through our existing customers. In April 2017, we received a record number of new incoming orders for a single month, totaling over $21 million. Included in these orders is a $15 million, three year agreement with one of our existing customers, which is the single largest order we have ever received.”
“In addition, we announced the establishment of our new subsidiary, Cemtrex Advanced Technologies along with its first development product, an advanced ‘smart desk.’ It is an exciting time at Cemtrex as we leverage our deep experience in electronics development and manufacturing and focus on bringing to market proprietary technologies that we believe are revolutionary. Our initial products, in line with the innovative ‘smart desk’, will embrace the concept of bringing the workspace environment up to speed with technological advances.”
“Cemtrex is strategically positioned to continue growth organically and through acquisitions. With $13.2 million in cash and cash equivalents we are consistently evaluating growth opportunities to advance our businesses. This is a pivotal time for the company as we see a strong pipeline in new and existing customers as well as new product development under our subsidiary. We continue to scale the business with shareholder value as a core focus on going,” concluded Mr. Govil.
Fiscal 2017 Third Quarter Business Highlights and Financial Highlights
- Total Revenue for Q3 2017 increased 13% to $27.8 million, compared to $24.7 million for Q3 2016. This increase was primarily due to the acquisition of Periscope on May 31, 2016.
- Industrial Products & Services (IPS) Revenue for Q3 2017 increased 8% to $13.5 million, compared to $12.5 million for Q3 2016. The increase was primarily due to increased shipment of goods and execution of projects.
- Electronics Manufacturing Services (EMS) Revenue for Q3 2017 increased by 17% to $14.3 million, compared to $12.2 million for Q3 2016. This increase was primarily due to the acquisition of Periscope, an electronics manufacturing solutions business.
- Gross Margin for Q3 2017 was 36%, compared to 33% for Q3 2016.
- Operating Margin for Q3 2017 decreased to 5.1% compared to 6.9% for Q3 2016. This is attributable to an increase in operating expenses of 31% to $8.5 million, compared to $6.5 million for Q3 2016, which includes an increase of sales, marketing and professional service costs for the 2017 period.
- Net Income for Q3 2017 was $1.2 million or $0.11 per share, compared to $1.4 million, or $0.16 per share for Q3 2016. This decrease was due to increase sales and marketing expenses in the third quarter, and loss on disposal of assets.
Nine Month 2017 Financial Highlights
- Total Revenue for the nine months ended June 30, 2017 increased 54% to $87.7 million, compared to $56.9 million for the same period in 2017. This increase was primarily due to the acquisitions of Advanced Industrial Services (AIS) and Periscope.
- IPS Revenue for the nine months ended June 30, 2017 increased 27% to $42.0 million, compared to $33.2 million for the same period in 2016. The increase was primarily due to increased shipment of goods and execution of projects.
- EMS Revenue for the nine months ended June 30, 2017 increased 93% to $45.7 million, compared to $23.7 for the same period in 2016. The primary reason for increased sales was due to the acquisition of Periscope.
- Gross Margin for the nine months ended June 30, 2017 was 33%, compared to 31% for the same period in 2016.
- Operating Margin for the nine months ended June 30, 2017 decreased to 4.3% from 5.4% in the same period of 2016. This increase was primarily due to an increase of sales, marketing and professional service costs for the 2017 period. Operating expenses increased 68% to $24.8 million, compared to $14.8 million for the same period in 2016 due to the increase from the acquisitions of AIS and Periscope.
- Net Income for the nine months ended June 30, 2017 increased 2% to $3.0 million, or $0.26 per share, compared to $2.9 million, or $0.36 per share for the same period in 2016. This increase was primarily due to the acquisitions of AIS and Periscope.
Balance Sheet as of June 30, 2017:
- Cash and Cash equivalents were $13.2 million or $1.28 per share.
- Book value was $3.49 per share.
Source: Yahoo Finance
You need to evaluate the chart in real-time and establish for yourself whether it is an appropriate trade opportunity for you or not.
If you are not familiar with my trading guidelines, please read them below.
These trading guidelines are designed to give you a starting point to develop your own personal trading philosophy and approach.
Since every traders/investors circumstance is different, make sure you create a personalized approach that works for you and always consult a financial adviser (not me).
Ultimate Stock Alerts
Trading Rules [Please Review Before Taking Any Action]:
- Do not invest more than you are willing to lose. No one likes to consider the worst case, but it’s always a risk that exists. Rule of thumb – if you cannot sleep at night as a consequence of your investment, then you have over invested.
- Keep calm. Do not chase. Decide for yourself if you like the trade. If you are not comfortable with the perceived risks, stay out. Timelines are to be decided by you. Approach methodically, and seek technical confirmation for direction. Always trade with a strategy in mind.
- Never use market orders. Only use buy and sell limit orders. Protecting your investment is more important than missing gains. Use “trailing stop %” or “trailing stop limit” orders. Personally I prefer mental stops while actively managing trades rather than entering your stop into your brokerage account.
- Cut losses quickly when day/swing trading. It’s better to acknowledge being wrong than to have false hope. Sometimes you will be wrong in doing so, often times it will save you. It all depends on your entry.
- Actively manage all your investments & trade during market hours only. Trading during pre/post market hours carries greater volatility/risk.
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