{"id":49723,"date":"2014-04-14T05:38:43","date_gmt":"2014-04-14T09:38:43","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=49723"},"modified":"2014-04-14T05:38:44","modified_gmt":"2014-04-14T09:38:44","slug":"stock-mysteriously-rockets-64-before-market-opens","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2014\/04\/14\/stock-mysteriously-rockets-64-before-market-opens\/","title":{"rendered":"Stock Mysteriously Rockets 64% Before Market Opens"},"content":{"rendered":"

By WallStreetDaily.com<\/u><\/a> \"Stock<\/p>\n

Zoe’s Kitchen,<\/strong> Inc. <\/strong>(ZOES<\/a>) went public on Friday, earning those privileged enough to score shares at the $15 IPO price a lightning-quick fortune.<\/em><\/p>\n

The stock opened trading at $24.67, representing a 64.47% pop over the IPO price. <\/em><\/p>\n

Brentwood Associates, the private equity firm behind Zoe’s Kitchen, was the big winner. The firm holds eight million shares at the pre-offering price. <\/em><\/p>\n

Jefferies, Piper Jaffray and RW Baird acted as the IPO’s book runners. Rest assured, those firms’ best clients were offered an opportunity to secure shares at the pre-offering price of $15. <\/em><\/p>\n

I realize it’s frustrating to hear more news about the rich getting richer. But don’t chase shares! <\/em><\/p>\n

I’ve got my ear to the ground, and vow to deliver an opportunity to strike your own fortune in the coming days. <\/em><\/p>\n

In the meantime, tech insider, Tom Anderson, just unearthed a company with some serious tailwinds behind it. I wouldn’t be a bit surprised if it’s atop the Nasdaq “biggest gainers” list within the next couple of days. <\/em><\/p>\n

~Robert Williams, Founder,<\/em> Wall Street Daily<\/em><\/p>\n

Before founding Wall Street Daily in the teeth of the Financial Crisis, Robert Williams served as the lead financial analyst for a Forbes top-50 private corporation and an analyst for the endowment of a major academic institution.<\/em><\/p>\n

From the desk of Tom Anderson…\u00a0<\/em><\/p>\n

I think you’ll agree that spotting companies with the potential to generate double- or triple-digit gains isn’t easy.<\/p>\n

But there are four super simple indicators I like to use that narrow the field by a significant margin.<\/p>\n

I’d like to reveal these killer growth metrics today – along with one company that’s really picking up steam in all four areas.<\/p>\n

In fact, some Wall Street Daily <\/em>readers might recognize it from previous articles…<\/p>\n

Killer Growth Metric #1: Customer Base With Deep Pockets<\/strong>. This one is pretty self-explanatory. After all, for a company to capitalize on a good idea, it needs customers who are willing to pay for it.<\/p>\n

Killer Growth Metric #2: Wide Moat to Keep Competitors Away. <\/strong>It’s important to have a strong, competitive advantage. Other firms will try to copy a good, emerging technology and capitalize on it themselves – but they just won’t be able to measure up.<\/p>\n

Killer Growth Metric #3: A Small Revenue Base. <\/strong>It might seem strange to look for a company that doesn’t pull in a ton of revenue. But it’s all about growth. If a company is already ringing up $10 billion in sales, it’ll be difficult for it to grow quickly compared to a company with, say, $50 million in sales.<\/p>\n

Killer Growth Metric #4: Big Enough Portion of the Pie to Be Worthwhile.<\/strong> If a company has one billion shares outstanding, like Yahoo!<\/strong> (YHOO<\/a>), then there are too many mouths to feed. Even an extra $50 million in profits would be too diluted to move the stock price. So I look for a company with just enough shares to be worthwhile.<\/p>\n

There you have it. The list might be short and sweet, but taken together, these four metrics provide an insanely powerful filter for discovering the biggest gainers in the market.<\/p>\n

Now it’s time to put it to the test…<\/p>\n

A “Flash” of Genius<\/strong><\/b><\/p>\n

This week, my four metrics just spotted a company that shows all the signs of explosive growth potential: Fusion-io<\/strong> (FIO<\/a>).<\/p>\n

Longtime Wall Street Daily <\/em>readers should be familiar with the name. It was recommended back in May 2012 as an alternative investment to Facebook’s<\/strong> (FB<\/a>) IPO<\/a>.<\/p>\n

If you’re unfamiliar with the technology, Fusion-io provides resources to datacenters, allowing them to optimize their hardware.<\/p>\n

Essentially, the company inserts flash memory into a datacenter’s servers at any point where there could be a bottleneck, significantly enhancing the speed of their operations.<\/p>\n

On a real-world level, this allows web companies to move content across the internet as quickly as possible.<\/p>\n

And the company has already attracted big-name clients. Indeed, companies such as Apple<\/strong> (AAPL<\/a>) and Akamai Technologies<\/strong> (AKAM<\/a>) are utilizing Fusion-io’s flash-based add-ons.<\/p>\n

But that’s hardly the extent of Fusion-io’s reach.<\/p>\n

This year, Facebook and Apple are rapidly expanding their datacenters to offer streaming music, video and messaging. They don’t want to be left behind by big, multi-product companies like Google<\/strong> (GOOG<\/a>) or smaller, specialized companies like Pandora<\/strong> (P<\/a>).<\/p>\n

Well, with its dominant position in the industry, Fusion-io stands to benefit alongside Facebook and Apple as they expand their operations.<\/p>\n

That makes right now<\/em> the perfect opportunity to cash in on the next wave of digital entertainment expansion.<\/p>\n

Plus, Fusion-io is still small, with just $375 million in revenue in the past year. (Metric #3, check!)<\/p>\n

It has 100 million shares outstanding, so a quick increase in profit from the data center expansion will produce high growth. (Metric #4, check!)<\/p>\n

And you can’t find customers with deeper pockets than Facebook and Apple. (Metric #1, check!)<\/p>\n

To top it off, Fusion-io’s secret sauce is that it uses embedded controllers to create a virtual storage layer that’s faster than writing to disk, even solid state disks. This isn’t easy to do, so other vendors who compete with Fusion-io – like EMC Corporation<\/strong> (EMC<\/a>) and Seagate Technology<\/strong> (STX<\/a>) – have chosen to simply focus on selling solid state drives rather than integrating flash. (Metric #2, check!)<\/p>\n

Bottom line: When you combine the right product, with the right customers, at the right time – and pair them with a company whose model can handle dramatic profit growth – then you could have one of the best performers of 2014.<\/p>\n

Good investing,<\/p>\n

Tom Anderson<\/p>\n

The post Stock Mysteriously Rockets 64% Before Market Opens<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

Article By WallStreetDaily.com<\/u><\/a><\/p>\n

Original Article: Stock Mysteriously Rockets 64% Before Market Opens<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com Zoe’s Kitchen, Inc. (ZOES) went public on Friday, earning those privileged enough to score shares at the $15 IPO price a lightning-quick fortune. The stock opened trading at $24.67, representing a 64.47% pop over the IPO price. Brentwood Associates, the private equity firm behind Zoe’s Kitchen, was the big winner. The firm holds … <\/p>\n

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