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THE NEXT BIG TRADE IDEA: $CRAY $18.34

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LONG/SHORT EQUITY TRADING, WHERE TECHNICALS MEET FUNDAMENTALS.
 

THE NEXT BIG TRADE IDEA

A JOHN CHALEKSON NEWSLETTER
 

$CRAY- $18.38 – STRONG BUY
STRONG FUNDAMENTALS FOR SUPERCOMPUTER MANUFACTURER. ONCE IN LIFETIME OPPORTUNITY EXISTS. TECHNICALLY POISED TO BREAK MULTIYEAR DOWNTREND.
$100.00 UPSIDE TARGET OR MORE.

Details  
Index Membership: N/A
Sector: Technology
Industry: Diversified Computer Systems
Full Time Employees: 929

Business Summary  

Cray Inc., together with its subsidiaries, designs, develops, manufactures, markets, and services high-performance computing (HPC) systems. The company offers a range of supercomputer systems that comprise Cray XC30, Cray XK7/XK7m, and Cray XE6/XE6m systems; and Cray Xtreme-X and Cray Xtreme-Cool supercomputers. It also provides YarcData uRiKA graph appliance solution for massive unstructured and irregular data mining problems. In addition, the company offers storage and data management solutions, which include Cray Sonexion storage systems, such as Sonexion 1300 and Sonexion 1600; Cray esFS storage solutions for customers requiring configuration and storage array choice, as well as offers a suite of data management and storage connectivity products and services enabling data movement for and management of third-party storage platforms. Further, the company provides custom engineering solutions comprising specific components and integrated systems focusing on custom-designed hardware, software, packaging, power, and cooling solutions; and customer support services, including hardware and software maintenance, applications support, installation project management, system installation and de-installation, site preparation, and technical training for its HPC systems, as well as ancillary services in application consulting, site engineering, on-site analysts for defined projects, and specialized training. It serves government agencies, academic institutions, and commercial entities in the United States, Canada, Japan, the Asia-Pacific, South America, and Europe. The company was formerly known as Tera Computer Company and changed its name to Cray Inc. in 2000. Cray Inc. was founded in 1987 and is headquartered Seattle, Washington.

CRAY IS POISED TO OVERTAKE APPLE IN A 5 YEAR CHART. DIVERGENCE UPSIDE VS. AAPL DOWNSIDE TREND.

MASSIVE UPSIDE

LOOK AT SNAPSHOT:

Key Statistics Get Key Statistics for:
Data provided by Capital IQ, except where noted.
Valuation Measures  
Market Cap (intraday)5: 686.98M
Enterprise Value (Jun 10, 2013)3: 448.89M
Trailing P/E (ttm, intraday): 4.66
Forward P/E (fye Dec 31, 2014)1: 26.58
PEG Ratio (5 yr expected)1: 1.74
Price/Sales (ttm): 1.77
Price/Book (mrq): 2.04
Enterprise Value/Revenue (ttm)3: 1.16
Enterprise Value/EBITDA (ttm)6: 24.04
Financial Highlights  
Fiscal Year
Fiscal Year Ends: Dec 30
Most Recent Quarter (mrq): Mar 31, 2013
Profitability
Profit Margin (ttm): 38.29%
Operating Margin (ttm): 2.26%
Management Effectiveness
Return on Assets (ttm): 1.33%
Return on Equity (ttm): 58.22%
Income Statement
Revenue (ttm): 388.30M
Revenue Per Share (ttm): 10.51
Qtrly Revenue Growth (yoy): -29.20%
Gross Profit (ttm): 151.18M
EBITDA (ttm)6: 18.68M
Net Income Avl to Common (ttm): 148.67M
Diluted EPS (ttm): 3.93
Qtrly Earnings Growth (yoy): N/A
Balance Sheet
Total Cash (mrq): 238.09M
Total Cash Per Share (mrq): 6.36
Total Debt (mrq): 0.00
Total Debt/Equity (mrq): N/A
Current Ratio (mrq): 3.70
Book Value Per Share (mrq): 9.02
Cash Flow Statement
Operating Cash Flow (ttm): 27.24M
Levered Free Cash Flow (ttm): 2.52M
 
View Financials
Income Statement - Balance Sheet - Cash Flow
 
 

Trading Information  
Stock Price History
Beta: 1.17
52-Week Change3: 63.90%
S&P500 52-Week Change3: 25.55%
52-Week High (Apr 1, 2013)3: 23.59
52-Week Low (Aug 2, 2012)3: 10.80
50-Day Moving Average3: 18.30
200-Day Moving Average3: 18.23
Share Statistics
Avg Vol (3 month)3: 426,548
Avg Vol (10 day)3: 334,612
Shares Outstanding5: 37.46M
Float: 35.40M
% Held by Insiders1: 13.67%
% Held by Institutions1: 69.90%
Shares Short (as of May 15, 2013)3: 1.91M
Short Ratio (as of May 15, 2013)3: 3.30
Short % of Float (as of May 15, 2013)3: 6.70%
Shares Short (prior month)3: 1.86M
Dividends & Splits
Forward Annual Dividend Rate4: N/A
Forward Annual Dividend Yield4: N/A
Trailing Annual Dividend Yield3: N/A
Trailing Annual Dividend Yield3: N/A
5 Year Average Dividend Yield4: N/A
Payout Ratio4: N/A
Dividend Date3: N/A
Ex-Dividend Date4: N/A
Last Split Factor (new per old)2: 1:4
Last Split Date3: Jun 8, 2006
See Key Statistics Help for definitions of terms used.
Abbreviation Guide: K = Thousands; M = Millions; B = Billions
mrq = Most Recent Quarter (as of Mar 31, 2013) 
ttm = Trailing Twelve Months (as of Mar 31, 2013) 
yoy = Year Over Year (as of Mar 31, 2013) 
lfy = Last Fiscal Year (as of Dec 31, 2012) 
fye = Fiscal Year Ending
1 Data provided by Thomson Reuters
2 Data provided by EDGAR Online
3 Data derived from multiple sources or calculated by Yahoo! Finance
4 Data provided by Morningstar, Inc.
5 Shares outstanding is taken from the most recently filed quarterly or annual report and Market Cap is calculated using shares outstanding.
6 EBITDA is calculated by Capital IQ using methodology that may differ from that used by a company in its reporting

Currency in USD.

 

NOW AT THE BALANCE SHEET:

Balance Sheet Get Balance Sheet for:
View: Annual Data | Quarterly Data All numbers in thousands
Period Ending Dec 30, 2012 Dec 30, 2011 Dec 30, 2010
 
Assets
Current Assets
  Cash And Cash Equivalents 253,065   54,187   61,295  
  Short Term Investments 52,563   -   -  
  Net Receivables 13,440   72,381   106,268  
  Inventory 89,796   97,881   49,241  
  Other Current Assets 11,823   12,932   5,901  
 
Total Current Assets 420,687   237,381   222,705  
Long Term Investments 17,577   -   -  
Property Plant and Equipment 27,033   18,073   19,840  
Goodwill 14,182   -   -  
Intangible Assets 7,981   -   -  
Accumulated Amortization -   -   -  
Other Assets 12,813   14,293   14,978  
Deferred Long Term Asset Charges 10,041   13,352   3,105  
 
Total Assets 510,314   283,099   260,628  
 
Liabilities
Current Liabilities
  Accounts Payable 69,275   55,012   47,432  
  Short/Current Long Term Debt -   -   -  
  Other Current Liabilities 68,060   44,636   49,896  
 
Total Current Liabilities 137,335   99,648   97,328  
Long Term Debt -   -   -  
Other Liabilities 3,179   2,453   2,525  
Deferred Long Term Liability Charges 29,254   14,184   14,954  
Minority Interest -   -   -  
Negative Goodwill -   -   -  
 
Total Liabilities 169,768   116,285   114,807  
 
Stockholders’ Equity
Misc Stocks Options Warrants -   -   -  
Redeemable Preferred Stock -   -   -  
Preferred Stock -   -   -  
Common Stock 577,938   564,148   559,058  
Retained Earnings (242,573) (403,814) (418,143)
Treasury Stock -   -   -  
Capital Surplus -   -   -  
Other Stockholder Equity 5,181   6,480   4,906  
 
Total Stockholder Equity 340,546   166,814   145,821  
 
Net Tangible Assets 318,383   166,814   145,821  

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Currency in USD.

NOV. 2012 – CURRENT

Account Positions
More Detail

Symbol Description Qty Price Value Action
AAPL APPLE INC -1 $441.811 ($441.81) Trade | Chain
AMZN AMAZON COM -1 $276.87 ($276.87) Trade | Chain
BBG BILL BARRETT CORPORATION 1 $22.97 $22.97 Trade | Chain
BBRY RESEARCH IN MOTION LTD 1,300 $13.86 $18,018.00 Trade | Chain
BLK BLACKROCK INC -1 $280.23 ($280.23) Trade | Chain
CLVS CLOVIS ONCOLOGY INC -500 $71.833 ($35,916.50) Trade | Chain
CRAY CRAY INC 2,000 $18.34 $36,680.00 Trade | Chain
CRAY Jul13 17.5 Call Cray Inc 8 $1.40 $1,120.00 Trade | Chain
CRM SALESFORCE COM INC -200 $39.61 ($7,922.00) Trade | Chain
DELL DELL INC 1 $13.485 $13.49 Trade | Chain
DRYS DRYSHIPS INC 200 $1.81 $362.00 Trade | Chain
ESI ITT EDUCATIONAL SERVICES INC 100 $26.82 $2,682.00 Trade | Chain
ESRX EXPRESS SCRIPTS HOLDING COMPANY -50 $62.50 ($3,125.00) Trade | Chain
FB FACEBOOK INC -1 $23.291 ($23.29) Trade | Chain
FSLR FIRST SOLAR INC 300 $53.09 $15,927.00 Trade | Chain
GES GUESS INC 1 $31.82 $31.82 Trade | Chain
HES HESS CORPORATION 1 $69.18 $69.18 Trade | Chain
HLF HERBALIFE LTD -1 $43.63 ($43.63) Trade | Chain
KERX KERYX BIOPHARMACEUTICALS INC -100 $7.656 ($765.57) Trade | Chain
LULU LULULEMON ATHLETICA INC -100 $81.43 ($8,143.00) Trade | Chain
NFLX NETFLIX INC -50 $220.22 ($11,011.00) Trade | Chain
NOK NOKIA CORP 100 $3.54 $354.00 Trade | Chain
ODP OFFICE DEPOT INC 100 $4.35 $435.00 Trade | Chain
PAAS PAN AMERICAN SILVER CORP 300 $12.26 $3,678.00 Trade | Chain
PNX PHOENIX COMPANIES INC NEW 200 $42.85 $8,570.00 Trade | Chain
REGN REGENERON PHARMACEUTICALS INC -50 $257.50 ($12,875.00) Trade | Chain
RSH RADIOSHACK CORP 2,000 $3.60 $7,200.00 Trade | Chain
RSOL REAL GOODS SOLAR INC -100 $2.58 ($258.00) Trade | Chain
SINA SINA COM 1 $60.03 $60.03 Trade | Chain
SSRI SILVER STANDARD RESOURCES INC 5,800 $7.38 $42,804.00 Trade | Chain
SSRI Jul13 8 Call Silver Standard Resources Inc 60 $0.30 $1,800.00 Trade | Chain
SWC STILLWATER MINING 1,400 $12.21 $17,094.00 Trade | Chain
TNP TSAKOS ENERGY NAVIGATION LTD 1 $4.81 $4.81 Trade | Chain
WTW WEIGHT WATCHERS -150 $45.34 ($6,801.00) Trade | Chain
X US STEEL CORP 1 $17.35 $17.35 Trade | Chain
YHOO YAHOO INC 1 $27.04 $27.04 Trade | Chain
 

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The Information is presented only as a brief “snapshot” of the Profiled Company and should only be used, at most, and if at all, as a method of obtaining the names of penny stocks and a starting point for you to conduct a thorough investigation of the Profiled Company and its securities and to consult your financial, legal or other advisor(s) and avail yourself to the filings and information that may be accessed at www.sec.gov . or other electronic medium, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets; (c) obtaining and reviewing publicly available information contained in commonly known search engines such as Google; and (e) consulting investment guides at www.sec.gov and www.finra.com pertaining to the risks of investing in penny stocks. Readers must evaluate and bear all the risks associated with the Information, including reliance on its accuracy, completeness or usefulness. In all instances, you should conduct due diligence and its own review of the Profiled Companies and its securities. 
 

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LONG/SHORT EQUITY TRADING, WHERE TECHNICALS MEET FUNDAMENTALS.
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<</span>[email protected]>



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    • Kang Hee

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