All the fist pumping, Q end dressing by the funds managers of all sorts didn't amount too much by the end of the week on the indices. The DJIA was up just over 70 and the NASD put in a 30pt week. The markets coming up to July highs coincides with the start of another earning season. The earnings will tell the tale if we break through. Unfortunately, last Q didn't provide many stellar plays in the EPS world, we hope this season is better as it typically is. The Shippers, Solars, Chinese stocks we follow will certainly provide more trading opportunities, but we hope there will be some fresh EPS stocks to trade in.
AZZ, seems every Q this stock starts off earnings season with a good report. This time was no different as it reported, Q2 (Aug) earnings of $0.66 per share, $0.18 better than the Reuters Estimates consensus of $0.48; revenues rose 29.8% year/year to $81.6 mln vs the $78.5 mln consensus. Co issues upside guidance for FY08, sees EPS of $1.95-2.05 vs. $1.82 consensus; sees FY08 revs of $315-325 mln vs. $316.31 mln consensus. This stock is based on the US economy but its presence in new markets should provide stability if things dry up here. This really doesnt matter to us as AZZ has a tendency to binge to the upside or downside as evident in the charts making it a pure trend trading stock.
FSLR, despite the daily intraday up and downs this was the best looking of the big 3 solars here (LDK, JASO) on Friday. Volume has been quite heavy on consecutive days and it is very close to a NCH. It seems the solars are in the news daily now with price targets, contracts and if there is anything on FSLR in the days to come this could drive through its highs nicely. This is one solar that hasn't pull backed the last two trading days. BofA raised EPS estimates for FSLR on Friday. Earnings are end of month.
GS, this continues to be a good trade since we picked up coverage of it in the $190's. Volume has slowed down and the daily trading range is getting thinner. With more FED interest rate talk this month a stock in this sector might not be a bad idea going forward.
ANW BIDZ CLDA, are the A B C's of what traded well on Friday. As far as SSTR, we think more digging is needed in finding the value of this company. A listen to the CC might be in order to get a better picture, it is not as simple as the headline number might suggest. We'll watch from here to see if this does have substance. That's easier then getting all muddy calculating the private placements/Outstanding share dilution.