Why Hudson Technologies, Spirit Airlines, DragonWave, and Two Other Stocks Are in Spotlight

Super Micro Slumps on Weaker Guidance

Super Micro Computer, Inc. (NASDAQ:SMCI) has slumped by over 26% after the tech company issued soft preliminary results for its fiscal fourth quarter. Due to lower demand, Super Micro now sees revenue coming in at $520 million to $524 million, versus the previous guidance of $580 million to $640 million. Non-GAAP gross margin is expected at 14%, due to lower utilization rates and a weaker product mix. Non-GAAP earnings per diluted share is expected to be between $0.15 and $0.17 per share, versus the company’s previous guidance of $0.46 to $0.58. The non-GAAP EPS number includes the negative impact of $0.07 in non-GAAP-related tax expenses. Super Micro’s board has authorized a buyback program of up to $100 million to lessen some of the negative impact. A total of 20 funds were long Super Micro Computer, Inc. (NASDAQ:SMCI) at the end of the first quarter, up by 13 funds from the previous quarter.

DragonWave Up 

Nano-cap DragonWave, Inc. (USA) (NASDAQ:DRWI) is a beneficiary of technical trading and has inched up by over 2% on light volume, as traders are bidding higher on no apparent fundamental news. DragonWave shares rose by 12% yesterday, and the stock has increased over 30% in recent days. Evidently some traders are bidding in hopes of catching some of the stock’s upward momentum. According to our data, Jim Simons’ Renaissance Technologies reported a stake of 49,168 shares in DragonWave, Inc. (USA) (NASDAQ:DRWI) as of the end of March. As with all nano-caps, investors should use due-diligence when buying or selling.

Energy in the Spotlight

Traders are watching Cobalt International Energy, Inc. (NYSE:CIE) and other energy E&Ps today due to the upcoming API report this evening and Wednesday’s EIA inventory release. If inventories fall faster than expectations, crude prices could rally, especially given the commodity’s retracement in recent weeks. At the end of March, 25 investors tracked by Insider Monkey had a bullish position in Cobalt International Energy, Inc. (NYSE:CIE), up by two funds from the previous quarter.

Disclosure: None