Potash Corp Shares Could Be A Buy At Current Levels
Mar 12, 2010 Company News, Earnings, Stocks On The Move, Technical Analysis
Fertilizer maker Potash Corp of Saskatchewan (POT) added $8.34 or 7.13% to $125.27 on Friday March 12, after the company on Thursday evening, raised its current (first) quarter guidance to $1.30-$1.50 per share, which is a substantial improvement from the company’s own very recent estimates of $0.70-$1.00 per share, that was provided just six weeks ago, on January 28.
With analysts bound to question why the company would revise so sharply in so short a period, the company’s explanation was, “the upward revision reflects a sharp rebound in potash demand that is expected to drive a record quarter for North American sales volumes and strong offshore shipments, as well as higher-than-expected margins in nitrogen and phosphate.”
The dramatic improvement in the company’s fortunes, make the shares a buy, although we are now against resistance, with a double top formation in play at current levels. As such, we would look for a break above current levels, before going long the shares.
Buy Big Lots Options On Upcoming Earnings
Feb 26, 2010 Earnings, Options, Trading Idea
The following is the latest trade from our Options Capitalist service.
Closeout retailer Big Lots (BIG) reports its latest earnings news on Monday. There is a very good likelihood the company beats estimates, which should send the shares higher.
Buy the Big Lots March 2010 32.50 calls. They are now trading at $1.90 by $2.05. Enter to $2.40. There is a fifteen cents spread between bid and ask, which is larger than what we prefer, but with a beat, we should see a $2-$3 pop in the stock.
The Options Capitalist is a subscriptions-based options trading recommendation service. More information about the service can be found here.
Ugg Boots Maker Up 12%
Feb 26, 2010 Earnings, Stock to watch, Stocks
Deckers Outdoor (DECK) is seeing its shares rally very strongly today, on great fourth quarter numbers. The company, whose brands include Ugg shoes, reported late yesterday, that for the most recent fourth quarter period, it earned $67.7 million, which translates into $5.22 per share, against the $4.28 per share that analysts were forecasting. This compares to earnings of $40.5 million or $3.07 per share in the fourth quarter period a year ago.
The stock at 12:56 pm, is up $13.19, to $119.35, a gain of 12.42%.
Hot Stock – Green Plains Renewable Energy
Feb 22, 2010 Earnings, Stock to watch, Stocks
Shares of ethanol producer, Green Plains Renewable Energy (GPRE) was among the biggest percentage gainer among NASDAQ stocks today. The stock rallied $2.85 to $16.99, a whopping 20.16% gain, with the movement in the stock coming on the back of the company’s latest earnings results.
The company this morning, announced that for it’s most recent fourth quarter period, it recorded a profit of $23.1 million, which translates into $0.91 per share, on revenue of $436.7 million. This compares to revenue of $183.2 million and a loss of $1.8 million or ($0.08) per share in the fourth quarter of 2008.
The company credited higher ethanol demand for the stellar earnings. The higher demand for the company’s products, also helped to improve margins.
For the full year, the company earned $19.8 million, or $0.79 cents per share, on revenue of $1.3 billion.
Green Plains Renewable Energy started 2009 at $2 after a steep decline through 2008, but has been one of the strongest performers among the entire universe of US stocks in the last 12-14 months, climbing over 750% in just over a year.
Tags: biofuel stocks, ethanol stocks, green plains renewable energy, hot stock, Stock to watch
Stocks To Watch – 02/19/2010
Feb 19, 2010 Earnings, Stock Market, Stocks
Apollo Group (APOL)
College Operator Apollo Group, better known for its University of Phoenix, is off $4.11 to $67.34, a loss of 6.34% after announcing that it is anticipating its earnings for its second quarter period ending February 28, will come in between $0.77 and $0.82, with revenue coming in at $1.07 billion. This is below current consensus estimates of revenue of $1.09 billion and an EPS of $0.94.
First Solar (FSLR)
Solar panel maker First Solar is currently the worst performer among S”&P 500 stocks. The stock is off $8.98 or 7.11% to $117.31. First Solar reaffirmed its estimates for this year, announcing that it still expects revenue to come in between $2.7 to $2.9 billion, with EPS coming in at $6.05 to $6.85. Traders were disappointed that the company did not raise its guidance
Intuit (INTU)
Intuit, which makes software for personal and small business use, is up $2.60 to $32.92, a gain of 8.58%. The company reported yesterday, that its fiscal second quarter profits rose 34%. The company also reported selling 10.9 million units of its Turbo Tax software through February 13, which was a million units ahead of last year’s sales.
JC Penney (JCP)
The mall retailer is up $1.73 to $27.69, a 6.66% gain on the company’s latest earnings results. For its latest four quarter period, JCP reported earnings of $200 million, or $0.84 per share on revenue of $5.55 billion, a 3.6% decline over the comparable period a year ago. The earnings was down from $211 million or $0.95 in the same period a year ago.
Analysts had been forecasting revenue of $5.55 billion and an EPS of $0.82.
The company also raised current year guidance, announcing that it anticipates earnings of $1.55 per share, $0.10 better that the current consensus estimates of $1.45.
Smith International (SII)
The oil and gas services company, which is currently the second best performer among the 500 S&P 500 stocks, is up $4.65 or 13.94% to $38, on a report from the Wall Street Journal, that the company is in talks to be acquired by Schlumberger (SLB).
Tags: apollo group, first solar, intuit, jc penney, s&p 500, smith international
HPQ Earnings Options Play Trade Follow Up
Feb 18, 2010 Earnings, Options, Stocks, Trading Idea
Hewlett Packard (HPQ) reported Q1 earnings of $1.10, beating estimates of $1.06. The company further upped the ante, by raising its full year outlook to between $121.5 billion and $122.5 billion, up from the company’s prior estimate of $118.0 billion to $119.0 billion. The stock however, was not much of a mover on the news, climbing just $0.69 to $50.81.
We recommended buying 3 HPQ March 50 calls and for every 3 calls, buy 1 March 50 puts yesterday, in anticipation of the news. Maintain the position. We will be looking to exit the trade next week.
Navivest
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Wal-Mart Shares Down On Same Store Sales
Wal-Mart (WMT) this morning reported a profit for its fourth quarter period that ended January 31, 2010 of $4.63 billion, or $1.21 per share on revenue of $112.82 billion, a 4.6% gain from the comparable period a year ago. This was up from the $3.79 billion or $0.96 per share that the company reported in the same period a year ago.
Analysts had been forecasting an EPS of $1.12 per share.
Despite beating forecasts however, the shares are under pressure, as
Wal-Mart also reported that sales at stores that had been opened at least a year, dropped 1.6%, against the company’s own forecasts for sales to be either flat or plus-or-minus 1 percent.
The shares are down $0.99 to $53.07, a 1.83% decline, in very early trading.
Tags: walmart
Hewlett Packard Earnings Options Play
Feb 17, 2010 Earnings, Options, Stocks, Trading Idea
Hewlett Packard (HPQ) reports Q1 2010 after the bell today. Analysts are looking for the company to report earnings of $1.06 per share for the quarter. There is a good likelihood the company will beat earnings and we are buying calls to profit if the company does beat estimates and the stock moves higher. We are also purchasing some puts to hedge against a downside move in the stock, in the event the news is disappointing.
The Trade:
Buy the Hewlett Packard March 50 calls. The current ask is $1.62
For every three calls you purchase, buy 1 Hewlett Packard March 50 puts, which are currently asking $1.52.
We will post a follow up on this trade tomorrow Thursday February 18, 2010.
Navivest is a trading advisory services firm offering subscription-based trade recommendation services. For more information on our services, visit our website at http://www.navivest.com
Tags: Earnings, hewlett packard, Options
Stocks To Watch – 02/17/10
Campbell
Soup maker Campbell (CPB) announced this morning, that its expects its 2010 sales will climb 2.5-3.5%. This is a downward revision from the 4-5% increase that the company had previously announced.
Deere & Co
Deere & Co. (DE) today reported first quarter earnings of $243.2 million or $0.57 per share, up from the $20.3.9 million the company earned in the comparable period a year ago.
The $0.57 per share was considerably better than the $0.19 per share that analysts had been forecasting. The company also raised its full year outlook, announcing that it expects $1.3 billion in profit, on a 6-8% growth in sales.
Devon Energy
Oil and gas producer Devon Energy (DVN) today reported that in the fourth quarter of 2009, it earned $667 million, which translates into $1.49 per share, versus the loss of $6.8 billion or $15.42 per share that was reported in the fourth quarter of 2008, the result of a write-down in the value of its energy assets. Revenue for the fourth quarter period was $2.46 billion, a 4% decline from Q4 2008.
Excluding one time items, profits came in at $1.60 per share, against forecasts of $1.25 per share.
Tags: campbell, deere, devon energy
