SAExploration Holdings, Inc. (NASDAQ:SAEX) Stock Skyrocketed Today; Here’s Why

The oil services company reported 2Q earnings results today, which caused its investors' confidence to reach new heights

SAExploration Holdings, Inc. (NASDAQ:SAEX) stock skyrocketed over 425% during the midday trading hours today, after the company posted second quarter of fiscal 2016 (2QFY16) earnings results. Its earnings per share (EPS) of $1.97—adjusted on a reverse-split—were lower than $18.96 in last year’s comparable period. The $57-million revenue was also behind last year’s $66.9 million.

Sales from projects jumped 1.6% year-over-year (YoY) to $49.2 million, while gross margin grew from 31.4% in the prior year to 36%. The company added that it had successfully completed its balance sheet’s restructuring and recapitalization.

With regard to this, CEO Jeff Hastings explained that the streamlining came about primarily to create a stronger platform to compensate its highly-valued customers. The executive added that SAExploration successfully secured additional funds to recapitalize itself, and meet the needs till certain Alaska tax credits, which are under process, are monetized. He said: “These transactions provide SAE with enhanced liquidity, financial flexibility and a realigned balance sheet, which will make us even more competitive in the current environment and position us for long-term growth and continued success.”

The oil services company mentioned that selling, general and administrative (SG&A) expenses totaled $7.2 million during the period, as opposed to $8.7 million in the comparable quarter. The lower SG&A cost was due to the headcount reductions and cost controls, which were implemented last year, along with some previously-announced plans that were put into action in 2016.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 6.2% YoY to $14.1 million, against $13.2 million in 2QFY15. Capital expenditures (capex) were $0.5 million, slightly lower than last year’s $0.6 million, mainly on the back of weak oil and gas space that did not present any growth opportunities.

Since January this year, SAEX stock has lost more than 80% of its value. As of 1 PM EDT, it is up 421.74% at $48.

Source :http://www.bidnessetc.com/71994-saexploration-holdings-saex-stock-skyrocketed-today/

Nobody’s Paying Attention to This Red Hot Stock’s Real Numbers

Party City (PRTY – NYSE)

Back in January, Jimmy Lamz stuck out his neck and advised his followers to short Party City PRTY – NYSE. His theorem was straightforward: There’s nothing for sale in these stores that you can’t buy for less across the street at Target TGT – NYSE or Walmart WMT – NYSE…

Party City offers no real competitive advantage over alternative online retail/e-commerce options and I believe it represents the best short opportunity in 2016. Additionally, the financials look poor and the future earnings prospects are grim in a highly competitive marketplace with strong and more diversified competition. It is heavily levered (2.76b in liabilities and a debt/equity ratio of 2.46!) and underperforming. Management is offering very weak arguments for the lackluster performance of the business, and the majority of future operating income is going to be swallowed up by interest payments.

It might have been the trade of Lamz’s life because PRTY fell some -35% over the next 19 trading days. But then, word began to circulate around Wall Street’s back rooms that PRTY was some kind of hidden gem in the dirt that would shock everyone come its next quarterly report. Prices then rallied more than 53%.

Now we have those quarterly numbers, and some headlines to go with them. One well-known news service claims that PRTY beat estimates on revenue and earnings. Another says that revenue is only par, and a third says it was a miss on both but “the company is making upbeat comments about current year sales, as well as highlighting a reduction in expenses.”

The upshot? PRTY rallied another 16% on this “news.”

So we did the one thing none of these party animals did. We checked PRTY’s numbers, and frankly, they stink. Quarterly revenue grew 2.3% year-over-year, no earnings growth is posted, earnings per share is $0.03, and the trailing P/E is 491.35. Keep in mind that while this is a relatively new IPO, the company has been around since 1947. Do these loons think they are buying growth? Really?

Bottarelli Research Tip: It’s only been a little more than a year since going IPO, but we’re already seeing a reasonably clear pattern with PRTY. The typical reset after a rally is -33.05% over eight weeks. If PRTY gives us another full down-cycle, it will drop to $8.79 by mid-May. We can spot a conservative target at $11.40. And believe it or not, there really is an option chain available for this ridiculous stock.

On the other hand, if you don’t want to play a tiny outfit like PRTY, Bottarelli Research LEAPS members have scored 31%, 36%, 35%, and 25% gains off large-caps like BUD, F, DHR and UTX — all within the past few weeks. And right now, we’re analyzing a chart that can easily bring in another 30% winner, but that might be too conservative. Our research indicates select option contracts could gain upwards of 230% in nine weeks. Want to learn more about this trade? Then see below…

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Souce: http://www.bottarelliresearch.com/charts/2016/03/10/nobodys-paying-attention-red-hot-stocks-real-numbers