Diamonds and Dogs
The disk drives are back! Two weeks ago it was rival, Western Digital with better guidance. Now it's Seagate (STX) with better than expected earnings guidance. Seagate is jumping 22% to a 3 month high after raising quarterly guidance and also announcing a big cut to their workforce. Bad news for former employees, but good news for the stock and their 401Ks. Plenty of analyst upgrades with new price targets of $35, $33, $27, $27, and $26. Even with the pop in the stock price, the dividend yield is still over 8%.
Imperva (IMPV) doesn't have a secure future. The cyber security solutions company saw its stock drop 5% on heavy trading volume warning that 2016 second quarter results will likely fall short of analysts' expectations. The Redwood City, CA-based company now sees revenue between $57.5 million and $58 million vs. its previous guidance of $65.5 million to $66.5 million. Imperva also now forecasts a loss of 20 cents to 22 cents per share compared to its prior projection for a loss between 2 cents and 4 cents per share. Additionally, the company hired Qatalyst Partners to explore a possible sale. Sounds like a good idea.