...Can't we just use the late afternoon pre 4pm Journal edition and not the 4:01pm GOOG edition. What was an impressive day with earnings from many giving the hyper bulls more ammo turned quickly sour with GOOG's results. Maybe if GOOG gave guidance, we'd not be sitting here guessing what will transpire next. There is really no point to guess the extent of the damage tonight. A first step is to see reaction of firms in their notes in the morning and then to see where the spillover might or might not be. Do all the better than expected reports, including NASD tech get washed out by GOOG's report?. The short fear mongers will definitely give this news a good run for your money. All we could do is watch what our closely followed do tomorrow and that does not mean just in the first hours of trading...Back to before 4pm with DJIM stocks...
AP, opened strong and then basically flat lined the rest of the day. We couldn't have asked for a better follow through day of about 4%.
DRYS, TBSI etc., the shippers are getting positive morning calls day after day. At these levels we are somewhat fearful of nosebleeds to hold these overnight. The best way to trade these is to watch for more morning calls on the sector and trade them from the open and swing some points out of them.
LDK, last night we noted some of the targets on it and the fact that it was only 7pts off IPO price. Well..make that 10 now as it was the most impressive solar out there. We'd look for a pullback if this missed today even off the NCH as the solars might get some pressure... FSLR is off AH about 5 pts due to an offering of 9.65 mln shares... "We are selling 4,000,000 shares and the selling stockholders named in this prospectus are selling 5,650,000 shares of our common stock. We will not receive any of the proceeds from the sale of shares by the selling stockholders." The interesting thing about these offerings is they should be assumed to occur sooner than later. You don't sign up 1.28 bln in contracts and continue to work out of your single garage...you need a double garage and you need to fund it. Still, one of the shorts fave words is dilution and they will work it.
TXT, we thought this could do a quick move off the open and it that shooting 6-7pts. Short lived as it might be, it serves some of our subs' trading tactics. We liked the report and if the market sentiment doesn't turn here, we'll hold on to the starter. We think it has upside off this report ...Reports Q2 (Jun) earnings of $1.69 per share, $0.24 better than the Reuters Estimates consensus of $1.45; revenues rose 14.7% year/year to $3.23 bln vs the $3.09 bln consensus. Co issues in-line guidance for Q3, sees EPS of $1.45-1.55 vs. $1.53 consensus. Co issues upside guidance for FY07, sees EPS of $6.35-6.55, up from previous guidance of $6.10-6.30, vs. $6.31 consensus; sees FY07 rev growth of approx 12%, which equates to revs of approx $12.87 bln vs. $12.6 bln consensus. Also announced repurchase and stock split. Primarily aviation, defense play.
Whatever happens tomorrow, trading opportunities will still come forward. If you looked over VMI, BMI from last nights Journal lead...or a quick in the form of SBEI's to $7, a DDUP move today to almost $29 shows there is and will be plenty of plays depending on your style.....but what we are gearing for and anticipating is micro- small cap earnings to concentrate on outside of the GOOG world noise.
TTPY, also have a look at this recent IPO, next generation radiation oncology equipment that is gaining acceptance in the marketplace.