Thursday, February 23, 2012

Uggly After Hours Action on Deckers Despite Earnings Beat (NASDAQ: DECK)

Deckers Outdoor Corp. (NASDAQ: DECK): fell by 11.46% or $-10.33/share in after hours trading to $79.80 after the company announced its fiscal and Q4 earnings. In today's trading session, DECK traded higher by 1.90% or $1.68/share to $90.13. In the past year, the shares have traded as low as $72.78 and as high as $118.90. On average, 1679890 shares of DECK exchange hands on a given day and today's volume is recorded at 2084144.

The company reported fiscal 2011 sales increased by 37.6% to a record $1.377 billion. Fiscal 2011 diluted EPS increased 25.8% to a record $5.07. Sales of UGG branded merchandise was still strong showing a growth of 37.6% to a record of $1.202 billion. Notice that UGG sales represent nearly all of the company's sales.

Q4 sales increased by 40.4% to a record $603.9 million. The EPS for the quarter increased 40.1% to a record $3.18. Analysts expected the company to earn $3.14 per share for quarter ended Dec 2011. Estimates from Wall Street analysts ranged from as low as $3.04 per share to as high as $3.25 per share. For the same quarter last year, the company earned $2.27 per share. Revenues were expected to come in at $565.21M.

Despite the earnings beat, the stock got crushed in after-hours trading. Additionally, the company announced it would do a share buyback.

Deckers Outdoor Corporation (Deckers) is a designer, producer, marketer, and brand manager of footwear and accessories.

Wednesday, February 15, 2012

Is the Apple Rally Finally Over? Technicals Indicate Reversal (NASDAQ: AAPL)

Wow what a move on Apple shares today. The stock moved sharply higher out of the gate today on news that Apple has assume a commanding lead in the smartphone market. The stock climbed to an intraday high of $526.29 as investors mindlessly bought the stock and short positions scrambled to cover. However, the blusterous buying of the stock quickly made investors question themselves why they would be so greedy to hold Apple for any higher?

Apple Inc intraday price action 2/15/2012 (NASDAQ: AAPL)

Just after noon hour, investors sold Apple shares hard and send the stock down 30 points before ending the day at $497.67 per share. Volume today was recorded at 53.70M versus average volume of 13.18M. All these signs point to a technical reversal. The stock was up nearly 3% on the day and then ended up down 2.31%. CNBC mentioned that the stock has hit a intermediate high today which could hold for the next 3-5 months. Resistance is said to be around the $450-460 range where the stock had started post-earnings blowout.

Apple Inc. (NASDAQ: AAPL) is expected to earn $9.41 per share for quarter ended Mar 2012. Estimates from Wall Street analysts ranged from as low as $8.46 per share to as high as $10.95 per share. For the same quarter last year, the company earned $6.40 per share. Revenues are expected to come in at $34.84B. The shares are currently trading above the 50-day moving average which indicates that the shares have been experiencing strong upward momentum as the 50 DMA is above the 200 DMA. The stock may come back down to test the 50-day moving average, so look for a move back to the $440.29 area where the stock will likely see buying pressure.

Thursday, February 9, 2012

Apple's One Day Move Eclipses Market Cap of Many Tech Companies Combined (NASDAQ: AAPL)

Apple, Inc (NASDAQ: AAPL) Eclipse
Shares of Apple are up 22% this year alone. The stock ended the day at $493.17, up $16.49 or 3.46%. The market cap, at $459.82B, is worth more than  Google (NASDAQ: GOOG), Goldman Sachs (NYSE: GS), GM (NYSE: GM) , Ford (NYSE: F), Starbucks (NASDAQ: SBUX), and Boeing (NYSE: BA) combined. Furthermore, the company's market cap is 52 times greater than that of RIM (NASDAQ: RIMM). Some of the top investment firms have declared they have sold some of their position in AAPL because it is starting to take up too much percentage of their investment assets.

Just today alone, the stock added $18 Billion in market cap at one point today. That is more than Riverbed, Polycam, etc. combined. The stock is making major moves and this company is now the largest in terms of market cap on the S&P 500.

There is an Apple event declared for the first week of March. Speculation is that there is going to be a product lunch or perhaps a dividend declaration. The typical pattern is that the stock ramps up into a product launch and pulls back afterwards.

About Apple Inc:

Apple Inc. (Apple) along with its subsidiaries is engaged in designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a range of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and Mac OS X operating systems, iCloud, and a range of accessory, service and support offerings. It also sells and delivers digital content and applications through the iTunes Store, App Store, iBookstore, and Mac App Store.The Company sells to consumers, small and mid-sized businesses (SMB), and education, enterprise and government customers. During the year ended November 24, 2011, the Company, as part of a consortium, acquired Nortel Networks Corporation’s patent portfolio.

Tuesday, February 7, 2012

Buffalo Wild Wings Flies to New Highs, Q4 EPS $0.73 vs $0.63 Estimate (NASDAQ: BWLD)

Buffalo Wild Wings Inc. (NASDAQ: BWLD): traded higher by 14.66% or $10.29/share in after hours trading to $80.48 as Q4 earnings came in at $0.73/share versus analyst estimates for $0.63. Revenue also came in higher than expected at $220.50M for the quarter versus expectations of $210.25M.

In today's trading session, BWLD traded higher by 1.90% or $1.31/share to $70.19. In the past year, the shares have traded as low as $47.16 and as high as $71.22. On average, 442,789 shares of BWLD exchange hands on a given day and today's volume is recorded at 1,302,835. The shares are currently trading above the 50-day moving average which indicates that the shares have been experiencing strong upward momentum as the 50 DMA is above the 200 DMA. The stock may come back down to test the 50-day moving average, so look for a move back to the $66.63 area where the stock will likely see buying pressure.

Highlights in the earnings report are as follows:
  • Total Revenue increased 34.5% to $220.5M
  • Company-owned restaurant sales grew 36.4% to $202.9 million
  • Same-store sales increased 8.9% at company-owned restaurants and 5.9% at franchised restaurants
  • Net earnings increased 34.0% to $13.6 million from $10.2 million, and earnings per diluted share increased 32.7% to $0.73 from$0.55
The CEO, Sally Smith, said "Our strong fourth quarter performance capped a tremendous year for Buffalo Wild Wings, which reflects the focused efforts and hard work of our franchisees and Team Members in providing sports fans with an outstanding guest experience. Together, we accomplished category-leading results. Fourth quarter same-store sales grew by 8.9% at company-owned and 5.9% at franchised locations, helping us surpass $2 billion in system-wide sales for 2011. Strong sales at both new and existing restaurants drove fourth quarter earnings per share of $0.73, bringing our annual net earnings growth to over 31%."

Buffalo Wild Wings, Inc. is an owner, operator and franchisor of restaurants featuring a variety of menu items, including its Buffalo, New York-style chicken wings spun in any of its 14 signature sauces or four signature seasonings.

Thursday, February 2, 2012

Zuckerberg Finally Files Facebook for IPO

Facebook finally files for an IPO aimed to raise $5B in the offering which is expected to instantly create over 1000 new millionaires. Zuckerberg's share of the company is expected to be worth approximately $17B based on the fact that the shares will be worth about $29 each.

Mark Zuckerberg started the company in 2004 out of his Harvard dorm room. The site now has over 700 million users which is astonishing.

Zuckerberg currently earns $500,000 annually as CEO of the company but this amount will drop to $1 in 2013 as the company goes public. It is common for CEOs of tech firms to take only 1$ as a salary and it is very smart as they pay less income tax and their shares can be sold for capital gains tax which is at a much lower rate.

The company plans to go IPO in May with Goldman Sachs being the primary underwriter in the deal. Secondary  underwriters include Citigroup, JP Morgan, and others.

Wednesday, February 1, 2012

Was the Polypore Sell-off Overblown?

Polypore International fell 29% yesterday on news that Capstone stated that LG Chem will not have a plant ready until the year 2013. JP Morgan had recommended to stay on the sidelines in terms of buying Polypore stock until there is further clarity pertaining to the LG Chem integration of their battery separator into Polypore's business. investors immediately reacted by selling down the stock to levels not seen since 2010.

The company was also facing strong bearish technical patterns which sent the stock sharply lower. At $38, Polypore, continues a bearish downtrend pattern, which may mean that investors overreacted on the news.

Tuesday, January 31, 2012

Amazon Hints an Operating Loss is Possible for Q1 (NASDAQ: AMZN)

Amazon Warehouse
Amazon.com Inc. (NASDAQ: AMZN): fell by 8.71% or $-16.94/share in after hours trading to $177.50 as the company warned that an operating loss may be in order for Q1 this year.

The company has been increasing spending which is expected to have a negative impact on profits. It is no secret that Amazon.com has among the highest paid employees in the U.S. In fact, Amazon.com has been growing at least twice as fast as the entire e-commerce sector in recent years. In order to keep up the pace, Amazon had to grow in new markets which resulted in high spending thereby having a negative effect on near term profits.

In today's trading session, AMZN traded higher by 1.19% or $2.29/share to $194.44. In the past year, the shares have traded as low as $160.59 and as high as $246.71. On average, 5,924,230 shares of AMZN exchange hands on a given day and today's volume is recorded at 12,754,917. The shares are currently trading below the 50-day and 200-day moving averages which indicates that the shares have been experiencing downward momentum. The stock may bounce back to test the 200-day moving average. Thus, you may want to pay close attention for a move up to the $182.08 area but be careful because the stock may face selling pressure at this level.

Amazon's Chief Financial Officer Tom Szkutak told reporters that there is tremendous opportunities for investment and that's why you're seeing the company spend so much in Q1. Amazon.com, Inc. (Amazon.com) is a customer-centric company for three primary customer sets: consumers, sellers and enterprises.