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DZC INVESTMENT OUTLOOK (18-11-2019)

TRANSDIGM GROUP INC (TDG): BUY

Sector: Industrials          Industry: Aerospace & Defence

TransDigm Group Incorporated is a designer, producer and supplier of engineered aircraft components for use on commercial and military aircraft in service. The Company operates through three segments: Power & Control, Airframe and Non-aviation. The Power & Control segment includes operations that primarily develop, produce and market systems and components that provide power to or control the power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies. The Airframe segment includes operations that primarily develop and market systems and components that are used in non-power airframe applications utilizing airframe and cabin structure technologies. The Non-aviation segment includes operations that primarily develop, produce and market products for non-aviation markets. Its product offerings include mechanical/electro-mechanical actuators and controls, engineered latching and locking devices, and seat belts and safety restraints.

Trading Statistics

Market Capitalization: 29.878B

Shares Outstanding: 53.289M

Average Volume: 221.64K

TDG Daily Chart

Recommendation, why?

TDG is a company that sells airplane parts. It currently sells parts to 7 parties with Boeing and Airbus making 20% of total sales. 90% of the parts TransDigm sells are proprietary and in the 80% of the deals in which the company is the sole supplier. TDG is a company that we have had on our watch list for a while, we will watching closely as they announce their earnings for a rebound to give us a better entry.

MICRON TECHNOLOGY INC (MU): BUY

Sector: Industrials       Industry: Aerospace & Defence

Micron Technology, Inc. is engaged in semiconductor systems. The Company’s portfolio of memory technologies, including dynamic random-access memory (DRAM), negative-AND (NAND) Flash and NOR Flash are the basis for solid-state drives, modules, multi-chip packages and other system solutions. Its business segments include Compute and Networking Business Unit (CNBU), which includes memory products sold into compute, networking, graphics and cloud server markets; Mobile Business Unit (MBU), which includes memory products sold into smartphone, tablet and other mobile-device markets; Storage Business Unit (SBU), which includes memory products sold into enterprise, client, cloud and removable storage markets, and SBU also includes products sold to Intel through its Intel/Micron Flash Technology (IMFT) joint venture, and Embedded Business Unit (EBU), which includes memory products sold into automotive, industrial, connected home and consumer electronics markets.

Trading Statistics

Market Capitalization: 52.817B

Shares Outstanding: 1.106B

Average Volume: 16.464M

Recommendations, why?

MU is a value company that have been discounted due to the US-China trade war, we are always watching the company closely for a rebound for a good entry.

GOPRO INC (GPRO): BUY

Sector: Technology     Industry: Household Electronics

GoPro, Inc. (GoPro) produces cameras and mountable and wearable accessories. The Company’s product offerings include HERO5, which is a line of cloud-connected cameras featuring image stabilization, telemetry, cloud connectivity and voice control; GoPro Plus, which is a cloud-based storage solution that enables subscribers to access, edit and share content; Quik, which is a mobile editing application that creates edits on a smartphone; Capture, which is a mobile application that allows users to preview and play back shots, control their GoPro cameras and share content on the fly using their smartphones; Karma, which is its compact and foldable drone and versatile stabilization solution that includes the Karma controller, and camera stabilizer, and it all fits in a custom backpack, and Karma Grip, which is a handheld, body-mountable camera stabilizer. It also offers a full ecosystem of mountable, wearable and voice activated accessories.

Trading Statistics

Market Capitalization: 714.92M

Shares Outstanding: 146.332M

Average Volume: 6.104M

Recommendations, Why?

GoPro Inc reported third-quarter results Thursday that were in line with expectations, but management’s guidance represents a high bar which implies that 46% of total revenue will come in the holiday season quarter, which is the highest fourth-quarter mix in company history, according to Analyst.

GoPro could see its second-best quarter ever in terms of revenue if total sales come in between management’s forecast of $555 million to $590 million, and this would most likely lead to a surge in the pricing of the company’s stock. Thursday’s report, in which total revenue of $131 million was the lowest of any quarter since GoPro went public was not enough to halt the company’s price movement as GoPro shares were up by more than 7%. GoPro shares are up about 3% so far in 2019.

DZC Capital Research Team

Author DZC Capital Research Team

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