Customer Service 1 (888) 261-2693
Advanced Search

A Huge Start for the Nanotech Earnings Season

By Jeff Clark
Thursday, February 8, 2007

A tiny sector got a huge boost yesterday...
 
Shares of FEI Corp. (FEIC) jumped 27% higher on Wednesday after reporting better-than-expected earnings. As you can see from the chart below, it's the latest in a string of new highs for the stock, up 70% since August.
 
 
 
FEIC is a large component of the PowerShares Nanotech ETF (PXN), which just happens to be one of the four nanotechnology positions I've recommended to subscribers of The Big Trend Report. So of course, we had a nice pop in the portfolio yesterday.
 
FEIC is a "picks and shovels" play on nanotechnology. The company manufactures microscopes... but not the kind you and I used back in high-school chemistry class. These are high-powered electron microscopes that enable scientists to examine objects as small as one-billionth of a meter.
 
And what exactly are the scientists looking at under those high-powered microscopes?
 
They're looking at nanotubes and buckyballs – cylindrical and soccer-ball shaped formations of carbon atoms, which just happen to be manufactured and sold by another Big Trend portfolio holding. Odds are pretty good we'll see another nice surprise when this company reports earnings next Tuesday.
 
The stellar results from FEIC confirm that companies are spending more and more money on nanotechnology. And the boom is just beginning.
 
There's no guarantee that all companies in the sector will follow FEIC's lead and blow away analysts' expectations. But earnings surprises on Wall Street are kind of like rabbits. If you put a couple of them together, then pretty soon you have a whole colony.
 
We'll be hearing earnings reports from a lot more nanotechnology companies over the next few weeks. If investors' reactions are anything like what we saw with FEIC, then it'll pay well to be in on the trade ahead of time.
 
Best regards and good trading,
 
Jeff Clark




Market Notes
Aerospace and defense companies Honeywell, Lockheed Martin, Raytheon, and Rockwell Collins all hit new highs.
 
Mining stocks continue to march higher… Silver Standard, Cleveland Cliffs, Southern Copper, and Companhia Vale do Rio Doce at new highs.
 
Country-specific ETFs at new highs: Belgium, Malaysia, Netherlands, Spain, France, Singapore, Mexico.
 
Earnings today: Bunge, Oakley, and Waste Management.
Market Watch
Symbol Price
Change
52-Wk
S&P 500 1221.53 +1.3% +10.1%
Oil 37.77 +1.5% -2.8%
Gold 135.20 -0.1% +13.4%
Silver 27.93 +0.4% +47.9%
US-Dollar 80.67 -0.8% +8.1%
Euro 1.32 +0.6% -12.1%
Volatility 19.39 -9.2% -8.2%
Gold Stocks 564.53 +1.3% +10.6%
10-Year Yield 3.00 +1.4% -9.6%

World ETFs
Symbol Price
Change
52-Wk
USA 122.56 +1.3% +10.2%
Canada 30.44 +1.3% +13.8%
Russia 21.63 +2.3% +16.7%
India 37.73 +1.9% +20.0%
Israel 16.47 +0.9% +9.7%
Japan 10.58 +1.0% +7.4%
Singapore 13.88 +1.0% +19.2%
Taiwan 14.72 +1.6% +17.8%
S. Korea 56.56 +1.7% +22.8%
S. Africa 70.85 +3.9% +22.9%
China 45.06 +1.4% +0.1%
Lat.America 52.82 +1.4% +6.7%

Sector ETFs
Symbol Price
Change
52-Wk
Oil Service 136.18 +1.5% +14.8%
Big Pharma 64.13 +0.6% -3.3%
Internet 72.13 +0.7% +22.3%
Semis 16.03 +2.1% +28.9%
Utilities 31.21 +0.3% +1.6%
Defense 18.51 +1.3% +10.1%
Nanotech 9.99 +1.3% +0.0%
Alt. Energy 9.95 +1.4% -4.4%
Water 18.31 +1.1% +12.2%
Insurance 16.07 +1.2% +18.3%
Biotech 20.58 +1.1% +27.1%
Retail 19.65 +0.1% +28.4%
Software 24.59 +0.9% +24.1%
Big Tech 53.73 +1.0% +21.9%
Construction 12.99 +2.1% +13.3%
Media 13.57 +1.1% +25.0%
Consumer Svcs 67.26 +0.8% +23.3%
Financials 54.87 +2.4% +5.2%
Health Care 64.22 +0.7% +1.3%
Industrials 63.25 +1.6% +19.7%
Basic Mat 73.57 +1.6% +21.6%
Real Estate 55.24 +1.4% +23.8%
Transportation 91.17 +1.4% +25.6%
Telecom 22.48 +1.1% +17.1%

Recent Articles