Diamonds and Dogs

7/12/16

The disk drives are back! Two weeks ago it was rival, Western Digital with better guidance. Now it's Seagate (STX) with better than expected earnings guidance. Seagate is jumping 22% to a 3 month high after raising quarterly guidance and also announcing a big cut to their workforce. Bad news for former employees, but good news for the stock and their 401Ks. Plenty of analyst upgrades with new price targets of $35, $33, $27, $27, and $26. Even with the pop in the stock price, the dividend yield is still over 8%.

Imperva (IMPV) doesn't have a secure future. The cyber security solutions company saw its stock drop 5% on heavy trading volume warning that 2016 second quarter results will likely fall short of analysts' expectations. The Redwood City, CA-based company now sees revenue between $57.5 million and $58 million vs. its previous guidance of $65.5 million to $66.5 million. Imperva also now forecasts a loss of 20 cents to 22 cents per share compared to its prior projection for a loss between 2 cents and 4 cents per share. Additionally, the company hired Qatalyst Partners to explore a possible sale. Sounds like a good idea.