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CUI Global schedules 1Q18 report and macro ?2
08:47 23-Apr-18
CUI Global has announced that its first quarter results will be distributed before market open on Monday, May 7th. The estimates of 4 analysts covering the company average out to a loss of 9 cents per share on sales of $20M, with current quarter revenue rising to $23.8M.
Monday morning reports are somewhat rare, and this one is coming less than 2 months after the last one, which was underwhelming; I was worried that CUI shares would drop, and they have. In Italy, some are taking a small regional vote as a sign, but to me, a solution still looks distant. This means CUI investors could easily be in for more waiting, at best, and I could easily see the stock flirting with the $2.50 strike until we get closer to the reports in August or November.
More broadly, the Italian situation is causing some USD strength and euro weakness. That seems likely to result in some temporary steadiness for American markets, despite longer term warnings from international economists. I've said that its a good time to sit tight and collect, but the world is slowly moving forward and maybe coming together. If India and China collaborate, the west had better watch out. Europe, whose steel tariff exemption expires with April, can't afford to wait on America forever, and the latest trade breakthrough with Mexico indicates that it will not.
The resultant rise in metal prices, particularly aluminum,
should be good for Covanta, which has just gotten some positive
press. The article is misguided in suggesting that America
could be next, but otherwise it reiterates what I've been saying
all along. I think the NY pilot drug disposal program
has more potential to spread throughout the country, even though
its initial implementation will barely move the needle. All in
all, I think the market is set to mostly ignore smaller reports
like CUI Global's and Covanta's, on Thursday. However, the small
stocks may still be affected by the market shifts created by the
larger upcoming FANG reports that dominate passive ETF money. To
that end, I will be watching tonight's Alphabet report, but am
unlikely to write about it directly. Questions are always
welcome. Further disillusionment
with the passive investing bellwethers could begin to benefit out
of favor mid-tier names like CTL, as could the
end of net neutrality. Over many years, I've found that the
intersection of changes in the real world with smaller
company-specific performance yields returns in excess of trying to
time market trends.