| Stock (Symbol) | Stock Price | |
CaesarStone (CSTE) |
$51 |
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| Data is as of | Expected to Report | Sector |
August 14, 2015 |
Nov 3 – Nov 9 |
Retail & Travel |
| Sharek’s Take | ||
| CaesarStone (CSTE) recently dropped from $70 to $50 after it reported earnings due to slowing demand from the US and foreign exchange rates. Then today a short seller published a negative research report outlining how (1) CeaserStone will have cost pressure from rising quartz costs (2) the countertops CSTE is producing doesnt’ have 93% quartz but 88-89% (3) the quality of the product isn’t premium as represented but instead poor and prone to chipping and staining, with the only product worse being a low-cost company in China. That was just half of it. This CaesarStone store in California gets a poor rating of 1.5 stars out of 5. Now the stock is down $5.50 to $42.50 and I don’t feel CSTE has hit a bottom yet. Even if it has it will be months if not years for the company to prove itself again. I like CaesarStone but the company needs to work through this negative PR issue at a time when US demand has fallen. I’ll sell the stock from the Growth Portfolio today and wait for the dust to settle before attempting to get back in. | ||
| Just One-Year Chart | ||
 This chart was done before today’s drop. Estimates show slowing profit growth, which is a sell signal for me. |
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| Earnings Table | ||
 Sales grew 10% as profit growth was 12%. CSTE management had been lowering profit estimates, yet the stock was still going higher.CSTE beat by 3 cents last qtr, but warned for future qtrs. Annual Profit Estimates declined. Qtrly growth doesn’t look to pick up until 2016. We’ll see if these figures fall too. |
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| Fair Value | ||
 The stocks got upside to $53 if it wasn’t faced with all these issues. Good upside to 2016 too. |
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| Ten-Year Chart | ||
 This was a great looking ten-year chart as well. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
N/A |
CaesarStone just opened its Georgia plant to manufacture in the US, then said demand here is slowing. The company also has issues with quality it needs to address. |
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Aggressive Growth Portfolio
N/A |
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