Market Read®

  • Thursday, July 10 2014

This prediction has passed its maturity date!

This prediction was valid between April 05, 2013 and April 19, 2013. All information in this report is for reference only and should not be considered forward looking.

(NASDAQ: IRIX)

Iridex Corp.


Bearish

IRIDEX Corporation provides therapeutic based laser systems, delivery devices, and consumable instrumentation to treat sight-threatening eye diseases in ophthalmology worldwide. It provides ophthalmology products that are used in the treatment of serious eye diseases, such as diabetic retinopathy, glaucoma, and age-related macular degeneration. The company s ophthalmic products include consoles, including visible (yellow) photocoagulator, visible (green) photocoagulator, infrared photocoagulator, and micropulse enabled consoles; and multi-wavelength laser system configurations. It also provides ophthalmic delivery devices and other products, such as TxCell scanning laser delivery systems; TruFocus laser indirect ophthalmoscopes; slit lamp adapters; operating microscope adapters; EndoProbe, a fiber optic delivery device; G-Probe, a sterile consumable multi-use product; and DioPexy Probe, a hand-held instrument that is used in procedures to treat retinal tears and breaks. In addition, the company s ophthalmic delivery devices and other products comprise GreenTip Soft Tip Cannula, a sterile disposable that allows surgeons to visualize and access the proximity of the retina while performing a fluid air exchange during a vitrectomy procedure; and MoistAir in-line air humidifier, which connects to the air line and provides humidified air to the eye during fluid air exchange. The company serves ophthalmologists, research and teaching hospitals, government installations, surgical centers, hospitals, and office clinics. It sells and markets its products through a direct sales force in the United States and through independent distributors internationally. The company was formerly known as IRIS Medical Instruments, Inc. and changed its name to IRIDEX Corporation in November 1995. IRIDEX Corporation was founded in 1989 and is headquartered in Mountain View, California.

Investment Highlights

  • PATTERN SCAN predicts the price of IRIX expected to move down in the coming weeks based on the appearance of a 'Trend Line Break(2)' pattern. Specifically, a Breakout (Stocks) DO variant of Trend Line Break(2) has been detected. The target is $4.16. more
  • VALUATION predicts the average valuation using most known fundamental valuation techniques is $1.19. more

Predictive Range March 18, 2013 - April 19, 2013

Anticipated price movement, between prediction date and target date, based on all market reads.
$4.48 - $2.68

How WealthMakers Market Reads Work:

WealthMakers Market Reads™ provide you with market performance predictions based on proprietary technologies, trading algorithms and data to help you make better, more informed investment decisions. Here's a quick review of our predictive technologies:

  • EARNINGS Most stock price histories show random or unpredictable movements around earnings reports. But some repeat the same pattern quarter after quarter, year after year. Earnings predicts probability, price move and length of move before and after all US stock earnings reports.
  • FRICTION FACTOR Friction Factor is based on the relationship between the price of a stock and the volume at which it's bought and sold. Normal and abnormal Friction factor patterns can help you time your buying and selling decisions for maximum earnings potential.
  • GATS The Global Automated Trading System (GATS) combines neural networks and genetic algorithms to reduce investment risks. GATS selects the highest probability trades in stocks, bonds, options, commodities, currencies and private equities, delivering precise, predictive and profitable data.
  • GROUP SECTOR Certain institutions can exert buying or selling pressure over an entire industry group, pushing prices higher. Group Sector identifies stocks that most closely match their group's movement and generate powerful group consensus trading signals to help you profit from the herd mentality.
  • PATTERN SCAN This technology automatically tracks "Trigger Events" that positively or negatively affect the value of a stock — or its perceived value among analysts — ranging from price fluctuations to natural disasters and political shifts. The results reveal patterns that can predict market movements.
  • EVENTS Events describe the current technical situation in your stock. It displays the technicals, trend conditions and seasonal factors and automatically discovers how that stock has performed in the trading days following the occurrences of the event or combination of events. This technology automatically scans using complex historical queries based on what event is taking place right now in the stock. It then displays the probability, expected return and number of trading days for the expected move.
  • RegSHO NAKED SHORTS SEC Regulation SHO mandates that if a clearing agent holds a fail-to-deliver position for 13 consecutive settlement days, it must purchase securities to close out its position, a.k.a. a forced cover. WealthMakers aggregates data from NYSE, AMEX, NASDAQ, OTCBB and PINKSHEETS to track stocks that are about to have forced covers.
  • SEASONALITY Seasonality analyzes more than 20 years of data to determine if stocks have a long or short seasonal bias, how many trading days the move is expected to last, the probability of that move and the percentage move the stock is expected to make based on the seasonal bias.
  • SQUEEZE TRIGGER Our proprietary database of more than 3,500,000,000 short sale transactions allows us to calculate the exact price at which the total short interest is short in each stock. Squeeze Trigger Alerts let you know exactly when a short squeeze will start and how to trade profitably.
  • VALUATION A stock's value is a function of its forecasted earnings per share and forecasted earnings growth, as well as profitability, interest and inflation rates. Valuation use these metrics to determine at what price a stock is undervalued or overvalued, so that you can make investment decisions accordingly.
  • INSIDER Significant stock sales or purchases by company "insiders" (officers or directors) can be a predictor of future price movements — up or down. The Insider strategy tracks these actions and correlates them with historical data to give you an investment edge.

Pattern Scan

 

Tracks "Trigger Events" that positively or negatively affect the value of a stock.

Iridex Corp. (NASDAQ: IRIX) is predicted to go down in coming weeks based on bearish technical trends that have appeared in the recent performance of the stock. IRIX has demonstrated Trend Line Break(2) strategy Breakout (Stocks) DO with a strength of 4.0/5. The higher the strength, the higher the probability of an accurate prediction.

  • The price of IRIX expected to move down in the coming weeks.
  • PatternScan has detected that a 'Breakout (Stocks) DO' pattern has appeared.
  • Specifically, a Breakout (Stocks) DO variant of Trend Line Break(2) has been detected.
  • This indicates a high probablity that IRIX will move down in the coming weeks.

Valuation

 

Determines the price at which stocks are undervalued or overvalued.

Iridex Corp. (NASDAQ: IRIX) is espected to fall due to overvaluation of the Laser Systems and Components sector according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables: the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield.

  • The price of IRIX expected to move down soon.
  • IRIX is strongly correlated (None) to stocks in the Laser Systems and Components sector.
  • Based on our valuation formula, IRIX has a fair market value of $1.19
  • These stocks have fired sell signals, and IRIX is expected to follow.

Squeeze Trigger

 

We have a proprietary database of all trading in US stocks and maintain massive databases of short sale and naked short sale time and sales data, along with short squeeze SqueezeTrigger prices. We are the only firm that knows the exact price that a short squeeze will start in every US stock.

The Cumulative Squeeze Trigger price for IRIX is 6.54.

Date Short Volume Short Value SqueezeTrigger
2014-06-30 16416 139765.824 8.514
2014-05-31 40428 347320.9908 8.5911
2014-04-30 70767 614852.0028 8.6884
2014-03-31 198253 1809415.4804 9.1268
2014-02-28 54248 456637.9648 8.4176
2014-01-31 156573 1608662.3166 10.2742
2013-12-31 478839 4803186.1251 10.0309
2013-11-30 272356 2015788.4628 7.4013
2013-10-31 87030 521266.185 5.9895
2013-09-30 68657 413157.2289 6.0177
2013-08-31 103770 623657.7 6.01
2013-07-31 6830 39167.318 5.7346
2013-06-30 43922 246209.1632 5.6056
2013-05-31 96015 567487.056 5.9104
2013-04-30 14290 61049.738 4.2722
2013-03-31 52349 242260.7022 4.6278
2013-02-28 125862 590947.2624 4.6952
2013-01-31 34394 136643.9226 3.9729
2012-12-31 39881 154275.6604 3.8684
2012-11-30 43879 172106.6017 3.9223

Friction Factor

 

Friction Factor determines if there is normal or abnormal behavior in the price action of the stock when compared to the buying vs. selling trading statistics. It shows us how many more shares of buying than selling it takes to move a stock higher by 1 cent, or how many more shares of selling than buying it takes to drop a stock by 1 cent.
Here is how to understand Friction Factor:

  • If Friction Factor is positive, more buying than selling caused IRIX's price to rise
  • If Friction Factor is negative, more selling than buying caused IRIX's price to fall
  • If Friction Factor is 0, there was no discernable activity either way
  • If Friction Factor is abnormal, it means that more buying than selling caused the price to drop which is evidence of manipulative activity. In some cases more selling than buying can cause the price to increase. While this is rare, it must be noted as well. Friction Factor raw data.

Date Change Buy Vol Sell Vol Net Vol Friction
2014-06-13 -0.11 18260 22023 -3763 -342.0909091
2014-06-12 -0.1 7312 5841 1471 Bearish Bias
2014-06-11 0.01 6976 3654 3322 3322
2014-06-10 -0.01 7778 3551 4227 Bearish Bias
2014-06-09 0.06 3994 5250 -1256 Bullish Bias
2014-06-06 -0.16 14199 18496 -4297 -268.5625
2014-06-05 0.2 7283 11217 -3934 Bullish Bias
2014-06-04 -0.14 8600 15334 -6734 -481
2014-06-03 -0.28 7929 17483 -9554 -341.2142857
2014-06-02 -0.01 15044 6023 9021 Bearish Bias
2014-05-30 0.2 6920 10142 -3222 Bullish Bias
2014-05-29 -0.14 5561 7803 -2242 -160.1428571
2014-05-28 -0.16 5743 10065 -4322 -270.125
2014-05-27 0.33 13064 12316 748 22.66666667
2014-05-23 0.06 19804 12210 7594 1265.666667
2014-05-22 -0.01 12684 8635 4049 Bearish Bias
2014-05-21 -0.28 16308 18937 -2629 -93.89285714
2014-05-20 0.14 14241 13123 1118 79.85714286
2014-05-19 -0.24 8851 5675 3176 Bearish Bias
2014-05-16 -0.05 13100 7450 5650 Bearish Bias

General Results

 

Past success in predictions regarding all predictions on the WealthMakers platform.

Our prediction engine has a track record that is second to none. See for our results.

Read Type Avg Return Avg Maturity Days Hits Misses % Accurate
Insider 15.127 73.12 9082 474 95.04%
SqueezeTrigger 12.737 22.37 7779 472 94.28%
Group Correlation 7.346 14.96 1308 88 93.70%
Valuation 14.484 26.96 4201 302 93.29%
Seasonality 7.458 15.2 42589 4126 91.17%
PatternScan 8.448 11.37 133305 19233 87.39%
Events 6.942 11.19 3387 543 86.18%
GATS 5.388 7.95 45028 8523 84.08%
Earnings 8.681 10.28 21679 4349 83.29%
Naked Shorts 14.491 10.83 2233 589 79.13%
Friction Factor 7.503 3.63 5599 1602 77.75%

About Wealthmakers

WealthMakers gives institutional and individual investors an exclusive advantage in making precise, predictive and profitable trading decisions. Our proprietary technologies — Earnings, Seasonality, Squeeze Trigger, Group Sector and GATS — apply artificial intelligence, proprietary algorithms, market data and research to help our clients realize exponential returns. Find out more at WealthMakers.com.

All material herein was prepared by WealthMakers, based upon information believed to be reliable. The information contained herein is not guaranteed by WealthMakers to be accurate, and should not be considered to be all-inclusive. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. WealthMakers is not a registered investment advisor in the State of California. Please consult a broker before purchasing or selling any securities viewed on or mentioned herein. WealthMakers or its affiliates may receive compensation from independent third parties, or from the companies mentioned, for data provided in this report or related services. WealthMakers affiliates, officers, directors and employees do not own shares of the company mentioned in this report, but may from time to time buy/sell the shares discussed in this opinion and may profit from those trades. Market commentary provided by Thomas Ronk, a registered investment advisor and commodities trading advisor in California. WealthMakers will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on his or her judgment.

All Rights Reserved. Copyright 2011 WealthMakers

Overview
Last Price$7.89
52 Week Range$5.30 - $11.00
1 Month Range$7.73 - $8.77
Avg Daily Volume23270.0
PE Ratio44.51
 
Earnings Per Share
YearEPS
2014(E)$0.182
 
Capitalization
Shares Outstanding9MM
Market Capitalization$81.50MM
 
 

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