I went out on a limb last week, and now it’s time to see how that decision played out.
I predicted that Baidu.com, Inc. (ADR) (NASDAQ:BIDU) would move higher on the week. China’s leading search engine had gotten too cheap — trading for less than 13 times next year’s projected earnings — and it seemed value investors wouldn’t let this growth company get even more inexpensive. The markets did close marginally lower, but Baidu.com, Inc. (ADR) (NASDAQ:BIDU) bucked the trend by climbing 1.7% higher on the week. I was right.
I predicted that the tech-heavy Nasdaq (INDEXNASDAQ:.IXIC) would outperform the Dow Jones Industrial Average (INDEXDJX:.DJI). This has been a tricky call lately, so how did it play out this time? It was one of the closest finishes in a long time. The Nasdaq and the Dow both closed with marginal losses. The tech-heavy Nasdaq inched 0.1% lower on the week, but the Dow managed to lose even less than that. I was wrong.
My final call was for Francesca’s Holdings Corp (NASDAQ:FRAN) to beat Wall Street’s quarterly profit target. The fast-growing operator of clothing boutiques has been a serial outperformer, blowing through Wall Street’s bottom-line forecasts with ease over the past year. Analysts were looking for a profit of $0.30 a share during the quarter, and it came through with net income of $0.33. The market liked the report, sending the retailer’s stock 7.4% higher on the week. I was right.
Two out of three? I know that I can do better than that.
Let me once again whip out my trusty, dusty, and occasionally accurate crystal ball to make three calls that may play out over the next few trading days.
1.JA Solar will post a wider loss than Wall Street is expecting
These have been challenging times for solar energy companies, and few have felt the pain as badly as JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) . A couple of years ago, the maker of solar cells was very profitable, but JA Solar’s been losing money since the summer of 2011. The worst part is that it’s been posting larger deficits than Wall Street’s been expecting.
This is a problematic trend, and even though analysts see JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) reporting a massive shortfall of $1.53 a share, the trend suggests that JA Solar’s loss will be even larger. My first prediction is that JA Solar’s report on Monday morning shows a greater deficit than analysts are forecasting.