Small Cap Stocks Traders Are Watching: May 10, 2017

The markets look to have a quiet open today, despite some political uncertainty on the table. President Trump fired FBI Director James Comey yesterday, who was responsible for the FBI’s investigation into Trump’s campaign, but the markets didn’t really care. The U.S. dollar slightly against some major currencies overnight, but recovered. Although the overall market is quiet, there are some small cap stocks traders are watching today. That in mind, here are some small cap stocks traders are watching this morning.

Abercrombie & Fitch Co (NYSE: ANF) shares are up over 10% during the pre-market, after some M&A chatter. Abercrombie is currently working with an investment bank handle takeover interest from other retailers, according to sources familiar with the situation on Tuesday.The apparel company hired investment bank Perella Weinberg Partners to deal with the takeover approaches.

Now, the stock has been beaten up and recently made a new 17-year low. That in mind, some companies might find its valuation attractive at these current moments, and a takeover could potentially benefit ANF.

Here’s a look at ANF on the daily chart, as of yesterday’s close:

 

Source: TradingView

Fossil Group Inc (NASDAQ: FOSL) reported its first quarter fiscal year 2017 financial results yesterday, and the company’s key financial figures contracted across the board, causing the stock to fall over 20% during the pre-market. The company’s revenue declined 12% year over year. Additionally, it reported a net loss of $48.2M in Q1 2017 compared to a net income of $5.8M for the first quarter of 2016.

Fossil Group also provided guidance, which may have been the primary reason for its significant fall in the premarket. Here’s the company’s guidance:

For fiscal 2017, the Company now expects the following:

  • Net sales to decline in the range of a 6.0% to 1.5%
  • Operating margin in a range of 0.5% to 2.2%
  • Diluted earnings (loss) per share in a range of ($0.40) to $0.30, including $0.60 of restructuring charges

For the second quarter of fiscal 2017, the Company expects the following:

  • Net sales to decline in the range of 11.5% to 8.0%
  • Operating margin in a range of (5.5)% to (3.5)%
  • Diluted earnings (loss) per share in a range of ($1.00) to ($0.83), including $0.15 of restructuring charges

Source: Bamsec

Check out FOSL on the daily chart, as of Tuesday’s close:

Source: TradingView

 

Mazor Robotics Ltd ADR (NASDAQ: MZOR) shares are trading lower by around 3% during the pre-market session, after it reported its unaudited first quarter 2017 financial results. MZOR reported Q1 2017 revenue of $11.7M, an 83% increase from its reported revenue in Q1 2016. However, international revenue came in at $500K, compared to $800K in Q1 2016. Now, the company reported cash generated by operating activities of $700K for the quarter, compared to $2.9M.

Here’s a look at MZOR on the daily chart as of yesterday’s close:

Source: TradingView

Crocs Inc (NASDAQ: CROX) reported its first quarter 2017 financial results, and shares were up around 15% after the company beat Street estimates. The company reported adjusted earnings per share of 11 cents, which topped the Zacks Consensus Estimate of 3 cents per share. Additionally, Crocs reported revenue of $267.9M in Q1 2017, which also topped the Zacks Consensus Estimate of $257M. The company also provided guidance, and here’s what Crocs is expecting:

Second Quarter 2017:

 

  • The Company expects second quarter 2017 revenues to be between $305 and $315 million.
  • The Company expects gross margin for the second quarter to be approximately 150 basis points higher than the second quarter of 2016.
  • The Company expects SG&A to be relatively flat to last year, including approximately $3.0 million of charges associated with our SG&A reduction plan.

 

Full Year 2017:

 

  • The Company now expects 2017 revenues to be down low single digits compared to 2016, whereas our prior guidance contemplated flat revenues. This change reflects the impact of the agreements outlined above and a further reduction in discount channel sales.
  • The Company continues to expect gross margin for 2017 to be approximately 50%.
  • The Company now expects SG&A for 2017 to be between $495 million and $500 million, down from the $500 to $505 million range provided on our last call due to the impact of the agreements outlined above. This range includes $7 to $10 million of charges associated with our SG&A reduction plan.

 

Source: Bamsec

Check out CROX on the daily chart, as of yesterday’s close:

Source: TradingView

Proteon Therapeutics (NASDAQ: PRTO) shares are up over 40%, after the company reported its 1Q 2017 financial results. Proteon reported a net loss per share of 39 cents, while the Zacks Consensus Estimate was looking for a loss of 45 cents per share. The company reported cash, cash equivalents and available-for-sale investments of $34.1M, and the company expects that the figure is sufficient to fund its operations into the third quarter of the 2018 fiscal year.

The company’s upcoming key milestones include:

  • Enroll 24 patients in the PAD Phase 1 trial before the end of 2017.
  • Complete enrollment of 600 patients in PATENCY-2 in the first quarter of 2018.

Additionally, Proteon will be displaying some presentations at the JMP Securities Life Science Conference June 20-21 in New York City, NY.

Here’s a look at PRTO on the daily chart, as of Tuesday’s close, and some key levels traders are watching:

small cap stocks

Source: TradingView

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