Happy Friday to all. For the end of this week, we are ending a quite a bit of a pullback. That gives us some great opportunity to get involved in some new positions as stocks have come down a bit from their high valuations. Therefore, we will be getting in a typical Overnight Trade since there are a number of companies that report on Monday morning as well as getting into our Play of the Week early now.
Yesterday, we did not enter any new positions but we closed two very sucessful Overnight Trade from Wednesday to Thursday in Skechers Inc. (SKX) and Teradyne Inc. (TER). The trades were good for 9.5% and 10%, respectively. Both companies blew out earnings while being undervalued, which gave them lots of buying interest and sent them flying. We got into TER at 10.15 and exited at 11.15. We got into SKX at 35.50 and exited at 38.75.
Let’s hope we have similar success with today’s adventures…
Overnight Trade: Wonder Automotive Group Inc. (WATG)
Analysis: One industry that has had a great quarter along with semiconductors is the automotive industry – parts and cars alike. Thus far in the earnings season, we have had mostly just the American auto parts makers reporting earnings. In the coming week, we are also going to have some of the Chinese auto parts makers reporting as well. One of the first to hit the stage is Wonder Automotive Group on Monday. The company is an automotive electrical parts 
maker that is predicted to report earnings per share at 0.19, which is a penny decline from one year ago, but I am fairly confident the company is going to have a very hefty earnings beat.
What first attracted me to Wonder was the fact that auto parts makers across the board are killing earnings. The auto parts industry has seen twelve out of sixteen of its reported companies since the beginning of June hitting earnings. Many of these companies have had very strong quarterly beats above 100% and even some have had profits while losses were expected. The companies with the most exposure to China have also been among some of the best. Borg Warner and Autoliv are two that have stood out in China.
Chinese auto sales have been outpacing sales from one year ago. In April, Chinese automotive sales rose 34%. In May, they rose 28%. In June, sales rose 18%. Wonder Auto…
