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Posted
Aug 29 2008, 11:38 AM
by
Todd Harrison
Rating:
Marvell had put in a very strong quarter and guided essentially inline, (slight miss on revenues and slight beat on EPS). I've predicted the upcoming quarter this way: "I think [it] will be a beat and conservative guide in-line."
That is exactly what we got. It's just too hard for nearly any company of MRVL's size (in the semi space) to take a chance and raise numbers currently if you have a diversified mix of products and sell into multiple industries. Plus, it's too early (in the quarter) and unless your in the solar space, the compression of demand is just enough to cause concern.
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Posted
Aug 27 2008, 11:29 AM
by
Todd Harrison
The casual dining space is an extremely difficult place to trade these days. Just ask Darden Restaurants. On Tuesday the Florida based chain, known for its Olive Garden, Red Lobster and LongHorn Steakhouse locations provided what could probably best be described as a very lackluster outlook for its first quarter.
More specifically, the chain said that excluding certain adjustments and costs it expects to earn 60 to 62 cents a share in its Q1.The trouble with that is that per Yahoo Finance the company had been expected to turn in 75 cents a share.
What happened?
Reuters quoted a Darden spokesman as saying, “people were not in the restaurants in the volume we were anticipating."
Geez, I could have told you that.
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Posted
Aug 22 2008, 08:01 PM
by
Andrew Horowitz
Rating:
Fed Chairman Bernanke confirmed what everyone's been thinking about the markets, saying the "crisis is softening growth, raising joblessness, and the Fed’s job is one of the most challenging in memory".
He believes that the recent trend of the dollar will likely slow inflation but that U.S. growth would fall short of potential for a time, which will help curb inflation. That sounds like the Fed believes that companies will have their work cut out for them.
The market seemed to like what he said. But what can we expect to see from companies reporting in the coming week?
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Posted
Aug 15 2008, 05:01 PM
by
Andrew Horowitz
Rating:
Is this rally for real? An 8% rise since mid-July has the S&P 500 resting on both the first step of a Fibonacci retracement and its 50-day moving average. Oil has been plummeting and the dollar has been strengthening while financials have seen a nice bounce. Still, the underlying fundamentals for the markets haven't changed in a way that gives me confidence that we're out of the woods.
Next week’s earnings will give us a further glimpse into just how bad things are for the consumer. Here is an inside look at some of the more significant positions, along with 3 stocks you may want to research.
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Posted
Aug 14 2008, 08:46 AM
by
Todd Harrison
Rating:
On the topic of Wal-Mart's earnings report, it was an interesting apparel inflation number this morning. Here's why: China makes 25% of U.S. clothing, give or take. "The Chinese Consumer" is always assumed to be a great thing (as in, "they'll love our iPhones!").
Americans buy more clothes than iPhones. Chinese lifestyles going higher means that A) companies like Liz Claiborne and the private labels of discount chains like Wal-Mart and Target are starting to have to pay much more to produce clothing (or find a new impoverished nation to make the clothes) and B) the end prices will go higher for consumers (who, as we recall, are making less all the time).
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Posted
Aug 08 2008, 08:01 PM
by
Andrew Horowitz
Rating:
I am not sure how things can get any worse. Though the more I learn about the accounting antics within the financial industry and see wild market volatility, it appears obvious that we aren't out of the woods yet.
This takes into account the latest broad-based jump. The main problem is that the rules have changed. Yes, even though many of the core principles that we may use to identify market opportunities are solid and have worked for years, this time it is different.
No matter how you choose to look at it, the economy is in shambles and this extreme volatility is clearly reflective of a bear market rather than what may appear to be the return to a bull run.
Now the Post Office of the United States of Accounting Nightmares has announced that they lost over $1,000,000,000 last year. Fuel costs, fewer mailings, higher costs and blah-blah-blah. I am wondering what is next. Who is in charge anyway, because I want to register a complaint!
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Posted
Aug 05 2008, 11:25 AM
by
Kim Peterson
Rating:
Shares of Rackable Systems are down nearly 20% today to around $10 after the company blew its second-quarter earnings report. And things don't look too good for the rest of the year, either.
The company, which makes rack-mounted computer servers and storage systems, got a downgrade from Merriman Curhan Ford to "neutral" from "buy." Its quarterly loss was 12 cents a share, far beyond the penny per share that analysts had been expecting. The company blamed component shortages, and said it made a price cut during the quarter to win a big customer.
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Posted
Aug 05 2008, 11:22 AM
by
Todd Harrison
I think we should expect the usual Cisco quarter: Not the usual recent quarter, where they offer a disappointing outlook, but the one where they meet or beat by the penny and guide inline, maybe sprinkled with a hint of, "We continue to execute well and expect to gain share during these tougher operating environments."
More specifically, as Juniper showed, network traffic on a global scale is still strong enough to justify purchases of the big boxes (core routers). I expect Cisco will exhibit strong core-router sales as well. I also think switching and storage enterprise numbers will continue to show solid results as well - Foundry, for example, recently beat and raised numbers.
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Posted
Aug 01 2008, 08:00 PM
by
Andrew Horowitz
Rating:
There is plenty of fun in store for this week. The markets have not been taking kindly to missed earnings these days, so why not get right down to some of the ideas you should be looking at as potential opportunities to make a few bucks.
Monday, August 4
If you are looking for a complete disaster, consider the fundamental and technical’s for Nam Tai Electronics. Earnings have been slowing considerably over the last several quarters and sporting a P/E ratio of 12 against an annual growth rate of -3% doesn’t provide much incentive to purchase shares. Add to that the fact that volume has been spiking on share declines and it is no wonder that the trend has been negative. Even though the technology sector has been somewhat stable throughout this recent market fiasco, there’s always an exception. Analysts are looking for $.17 per share of profit on $140 million of revenue.
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Posted
Jul 25 2008, 08:01 PM
by
Andrew Horowitz
Rating:
How about we play a game, shall we? It goes like this: I say a term and you tell me the first thing that comes to your mind. Ready?
What do you think of when you hear the word recession? Did you think slowdown or inflation? What comes to mind with the word write-offs? Did you think earnings growth? How about record commodity prices? Do you immediately think of increasing revenues and profits?
I bet you thought of several phrases and words associated with a general economic slowdown, but not those above. I asked because a curious situation is occurring within our markets. For example last week many of the companies reporting earnings showed an increase in year-over-year revenues and actually beat estimates. Of course this isn't the norm this quarter, but even so, it is a peculiar occurrence.
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