Profiting through the Crosswinds: Top Picks for 8/30

Markets had a strong day Wednesday, gaining ground despite headwinds from Hurricane Harvey.

Our system identified three news-based trades as our top performers for 8/30. One of today’s top performing news events validates our system’s picks from 7/17: we identified DrysShips as an excellent shorting opportunity. It appears again today, falling even further. NewsQuantified users could have shorted to the tune of cumulative 50% profits on news events from a single stock in a month-and-a-half period.

Today’s picks continue to demonstrate diverse potentially profitable plays in the current market environment, with stocks from 3 different sectors.

1. DryShips (DRYS): plummets nearly 25% on quarterly losses.

DRYS Chart

DRYS, a diversified international cargo shipping company, released its quarterly financials. DryShip’s stock price quickly came under attack by investors on the announcement of operating losses for the quarter.

Despite reported Q2 revenue at $16.4M vs. $15.8M in Q2 last year, operating losses were up over the same timeframe. While management insists recent fleet acquisitions have positioned DRYS for more efficient operations, investors don’t seem to be sold on the turnaround plan.

2. Semtech (SMTC): drops over 10% on pessimistic forward guidance.

SMTC Chart

Semtech provides high-performance analog, mixed-signal semiconductors and advanced algorithms, used in applications including power management, protection, advanced communications, human interface, test & measurement, and wireless sensing.

The stock fell sharply on Wednesday after NewsQuantified alerted members of the release of disappointing Q2 financials. While sales and profitability actually looked quite strong for Q2, bearish forward looking guidance in the statement fueled investor pessimism. The stock has had an impressive run of late, and this new statement tamps down the sales-growth optimism that has fed an impressive run for Semtech.

3. Shoe Carnival (SCVL): Solid gains on strong Q2 results.

SCVL Chart

Shoe Carnival, a US retailer of accessibly-priced footwear, registered 10% gains on the session after reporting solid quarterly results, including sales up 1.4 percent to $235.1 million. This solid sales growth is bolstered by an excellent overall earnings picture, as earnings per diluted share increased 9.1 percent to $0.24. EPS gains are driven by cost minimizing innovations, including the closing of underperforming stores, hand-in-hand with an aggressive buyback program.

Diverse Plays, Big Gains: All in a single news day.

A powerful news analytics platform like NewsQuantified not only makes it easy to track the news, but to quickly compare news events with key financial information.

Today’s plays make the power of this news-based trading approach clear. These plays came from three different sectors, and very different stocks. No small investor could be expected to track all these companies.

Yet they were all at the top of a single easy to use dashboard in the NewsQuantified platform. We make it simple to find strong, diverse plays in any market environment.

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