Since the earnings announcement made on February 05, 2019, the stock price trends of Nanometrics Incorporated has not changed much as shown in the following one-year daily chart diagram:
At the last traded price of US$29.59, down 6 US cents, or negative 0.20 per cent intraday on February 22, 2019, the stock has not been able to push above the US$30.00 or even the US$35.00 price handle.
Based on the market capitalisation value of US$716.54 million, with the trailing and forward price-earnings (P/E) multiples at 12.65 and 14.36 times respectively, the 10-day average trading volume was about 169.09k, which is less than the 22.62 million shares on float.
Moreover, despite the disappointing earnings outlook for 1QFY2019, the percentage of shorts as a percentage of the overall float volume as of January 31, 2019 is 10.52 per cent which is not significant. Until we are able to get the February short volume percentages, especially when it had only reported earnings in early February 2019, it will be interesting to know how sizeable to short volume is.
Where or what to look out for next week?
While the overall earnings season for non-retail sector counters are largely winding down, it is expected that volatility might return and with higher expectations. We will continue to monitor the stock price of NANO on whether it has broken the US$30.00 decisively and moving upwards to hit US$35.00 and above.
However, it the stock price does turn south, we cannot rule out that it might go lower than US$20.00. Until then, we shall continue to monitor the counter’s stock price movements closely.