Goldman Gives Acuity a Thumbs Up

Acuity (NYSE: AYI) was added to Goldman Sachs’ Focus List. The analyst notes Acuity is a low-carbon lighting leader who has the “strongest competitive positioning” in the lighting space.  The analyst also highlights the competitive moat Acuity has built via its focus on full-service solutions that  insulates it from pricing pressure. Acuity reports its fourth quarter in early October.

Fitch Ratings has assigned a first-time ‘BBB’ bond rating to Brunswick Corp. (NYSE: BC) This is an investment grade rating and the rating outlook is Stable.The rating reflects BC’s strong competitive positions in its marine and fitness segments, low leverage and improving business mix towards less cyclical marine parts and accessories and fitness businesses. Fitch believes BC is in a stronger position today to weather a downturn relative to the last recession.

Brokerage firm Susquehanna downgraded Criteo (NSDQ: CRTO) to neutral on Sept. 6. The analyst is concerned that a new technology allowing real time bidding for advertising space on websites will hurt Criteo’s growth. The technology is called Header Bidding and is something Criteo management has been addressing for several quarters. The company already takes part in these auctions and has not seen its profit growth slow.  CFO Benoit Fouilland spoke on Sept. 7 at a brokerage conference noting that Header Bidding has been around for some time and that the company has been participating in these auctions. The company will surely address these concerns at its September 15 analyst day in San Francisco.

Stock Talk

Jon D.

Jon D.

Glad Gold – in -sacks is giving some positive attention to AYI.
As I have mentioned but here are the specifics of my Option spread that expires Friday this week.
AYI 16 sep 16 280 call
ayi 16 sep 16 290 call
It cost me a fair amount to put this on but not doing well.
You have mentioned an Option trade to make it more affordable.
That would be helpful

Robert B Moore

Robert B Moore

Do you have an option trade on AYI? What about selling puts (250) and/or buying in the money calls?

Linda McDonough

Linda McDonough

Robert,
I’ve been trying to formulate the best option play for AYI. My issue to date has been how illiquid they are, making the entry and exit tricky. Selling the 250 puts and buying in the money calls in theory is a good plan. The company reports its fourth quarter on October 5 so the October options will capture the move from that event.
Best,
Linda

Robert J

Robert J

Regarding CRITEO, I am not surprised and fortunately I discarded it from my portfolio on 07-14-2016.This is my best decision so far. I should have done the same with SEDG wich is my worst investment this year. I am still hoiding on 30% of my peak holding.

Linda McDonough

Linda McDonough

Robert,
I spend an enormous amount of time and energy researching the positions in all the portfolios and take it quite personally when they do not work out as planned. Of course, no one can control or predict the behavior of all stocks. This market is not forgiving when sentiment turns against a stock as we witnessed with SolarEdge. As an analyst I learn from the market and will be keeping a close eye on stocks not behaving as I believe they should based on the fundamentals. Please do send along any questions that you have.
Best,
Linda

Diamond Bob

Diamond Bob

Any thoughts on Acuity’s big drop today?

Linda McDonough

Linda McDonough

Bob,
The stock is down sharply due to a downgrade by a Baird analyst who has been a fan of the stock. He mentions a “near term lull” that may keep the stock range bound. Last quarter revenue grew 22%, slightly less than expected due to a manufacturing transition. Estimates for the November quarter (to be reported early January) look for 22% growth again and then slower growth in the February quarter. These slower growth rates look to incorporate any “lull” he may be seeing. I have not seen any data that would support a lull but clearly investors are spooked that he is cautious on the stock. I think the sell off is overdone and the stock is quite cheap at these levels. I’ll be back if I uncover anything more.
Best,
Linda

Diamond Bob

Diamond Bob

Hi Linda, I placed a small put credit spread on AYI. I Sold the Jan $220 and bought the Jan $210 puts. Looked at the calls but they seemed very expensive.
Best to you too,
DB

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