Hey all. Hope everyone is having a Wonderful Wednesday. The only position we had open this morning was Climarex Energy (XEC) for an Overnight Trade. We got involved at 70.60. The company missed estimates slightly, but they had great revenue and a great forecasting. It was a mixed bag. The stock opened a little south but moved up quickly. I sold out of the gate afraid of further losses at 70.10 for a 0.75% loss. Yesterday, we also had a Buy in Ultrashort Financials Proshares (SKF). We got involved at 19.26, looking for a 2-3% gain. We exited at the end of the day at 19.43 for a little under a 1% gain. SKF just never moved. We also Shorted Cognizant Tech for a solid 3% gain.

We are looking at a solid semiconductor today for our Overnight Trade in…

 

Overnight Trade: ON Semiconductor (ONNN) 

Analysis: The semiconductors have been our best friend this Q2 earnings season. We just finished another semi play for 5% in Kulicke & Soffa (KLIC) the other day, making it our fifth winner out of six. The story is repetitive with them, but I will highlight some key points about ON Semiconductor. ON is set to report earnings that look to be a great improvement over one year ago and will most likely are an underestimation of what they will truly turn out to be. ON is a broadline semiconductor company that makes tons of chips used in a slew of industries, mostly automotive, consumer electronics, and medical equipment. ON is set to report earnings at an EPS of 0.20 vs. one year ago’s 0.05 EPS. That nice gain of 300% is already something to buy into, but a beat will help it even further.

If you have missed any of my prior stories about semiconductors, they all are basically saying the same thing. That the industries that semiconductors supply had a great quarter two, and demand was higher than analysts expected. One of the best industries was automotive, which is where ON does its main supply. Auto sales grew in April – June by more than 20% year-over-year. Not only did sales grow but so did production. Auto companies all reported booming profits for their second quarter, and they said they were increasing production to meet rising demand…more semiconductors. Semiconductors are at the front of rising demand, and they are showing that it was there in Q2. You can…
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