Last week was quite the week for us. We had a lot of winners with two big winners that were worth 8.5% and 9% each. I will be doing a recap of all of last week’s picks in an alert later on today as well as a portfolio update story for the month of May. Welcome to June! Last month was the worst May performance for the market since 1940 as stocks lost 8% on average. As June starts, the market has a lot of opportunity available to it. If the Euro can start to show some signs of recovery and economic data continues to shine, June could see the market heating up…
For this first week of June, we have a new Play of the Week available.
Play of the Week: Quiksilver Inc. (ZQK)
Analysis: Based in SoCal (Southern Cali (California) – for those less MTV-savvy), Quiksilver Inc. is one of the largest producers of skateboard and surfer apparel makers that has spread throughout the country and internationally, which is great because now even teens in Wisconsin can look ready to ride a wave. ZQK is a company that was hit pretty hard during the recession like many other smaller apparel companies. Yet, the company has started to pull back together. The company is still down 75% 
from its 2008 highs; however, ZQK has rebounded over 100% over the past year.
The company has had back-to-back great quarters with surprise amounts over 80%, and the company looks poised to continue to move upwards. They report their earnings this Thursday evening, and I believe that over the next couple days Quiksilver could make a major move to the upside. The stock has been beaten down as of recent, dropping nearly 25% over the past two weeks. It is underbought and undervalued. With buzz of strong earnings on the way, ZQK represents a major mover.
So, why is Quiksilver looking at another great quarter? Why would any buzz be around this company?
Quiksilver has not made a FY profit since 2005. Ouch! The company, however, looks poised to turn a profit for this quarter after a strong Q1 2010 that saw the company narrowing its losses greatly from one year prior. The company lost nearly $200 million in Q1 of 2009, and it only lost $5 million in 2010. The company killed expectations, posting a -0.02 EPS vs. the expected -0.13. It was the second quarter in…
