Thursday, October 27, 2011

Hit the Deck: Blowout Earnings Report from Deckers

Deckers Outdoor (NASDAQ: DECK) reported incredible earnings after the bell. Net income came in at $1.59 per share versus the $1.35 estimates expected by analysts. Revenues were $414.4 million compares to the estimates of $387 million. Sale stores sales rose 15.4%.

Deckers Outdoor Corp. (NASDAQ: DECK) traded higher by 1.71% or $1.82/share in after hours trading to $108.00. In today's trading session, DECK traded higher by 1.77% or $1.85/share to $106.18. In the past year, the shares have traded as low as $52.94 and as high as $105.83. On average, 1537330 shares of DECK exchange hands on a given day and today's volume is recorded at 1530027. 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 $99.09 area where the stock will likely see buying pressure.

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

Tuesday, October 25, 2011

Amazon Misses The Bid

Amazon.com was expected to earn $0.24 per share for the quarter ended September of this year. Some analysts predicted $0.40 per share on the high end. Revenue was expected to be $10.93B. Actual earnings came in at $0.14 per share while revenue also missed coming in at $10.9B.

The stock is currently down over 16% as investors are disappointed with the results. In similar news, Netflix fell almost 35% in today’s trading reflecting investors’ pessimistic view of the company. Amazon may be on the same track as Netflix temporarily. Their businesses are very different. While Netflix has a single line of business and faces tough competition from all angles (including Amazon), Amazon is more diversified and is the largest online retailer.

Monday, October 24, 2011

Netflix Falls Sharply Amid Earnings Blowout (NASDAQ: NFLX)

Netflix, Inc. (NASDAQ: NFLX): fell by 22.16% or $-26.34/share in pre-market trading to $92.50. In the past year, the shares have traded as low as $107.63 and as high as $304.79. 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 $187.14 area but be careful because the stock may face selling pressure at this level.

The company reported earnings of $1.16 a share versus estimates of $0.94. The Q3 revenue came in at $822M versus estimates of $812.50 million. The company also reported much lower subscriber growth than anticipated and has guided lower for Q4.

Investors Welcome Merger Monday

Cubist Pharmaceuticals Inc. (NASDAQ: CBST) is acquiring Adolor Corporation (NASDAQ: ADLR) for about $190 million in a deal that could rise to $225 million if certain milestones are met. This is called an earn-out. The stock is trading with a market cap of $217 million as investors believe that these milestones will come to fruition. The stock is up 143%.

CIGNA Corporation (NYSE: CI) is acquiring HealthSpring Inc. (NYSE: HS) for $3.8 billion. The stock is up 33% on the news.

Mattel Inc. (NYSE: MAT) is acquiring private company HIT Entertainment for $680 million.

Rightnow Technologies Inc. (NASDAQ: RNOW) is up 20% on merger news as it is being taken over by Oracle Corporation (NASDAQ: ORCL) for $1.5 billion. RightNow is a cloud-based software company and focuses on the customer experience.

Caterpillar Soars Like a Butterfly on Earnings Beat (NYSE: CAT)

Caterpillar Inc. (NYSE: CAT): traded higher by 4.86% or $4.25/share in pre-market trading to $91.64. In the past year, the shares have traded as low as $70.50 and as high as $116.55. The shares are currently trading below the 200-day moving average but above the 50-day moving average. The stock may be range bound between these two levels where the 200-day moving average of $99.21 represents resistance and the 50-day moving average of $83.09 would be an area of support.

Shares were up because the company beat analyst estimates for Q3 earnings results. The company reported adjusted net income of $1.93/share versus estimates of $1.59/share and revenues came in at $15.72 compared to the $15B estimate. This quarter marks the third quarter in a row of rising net income. If you remove the costs of the Bucyrus from the Q3 earnings, the net income came in at $1.71/share, still far exceeding analyst expectations.

Friday, October 21, 2011

Banking on Banker's Petroluem (TSE: BNK.TO)

Banker's Petroleum (TSE: BNK.TO) has been on a tear in recent trading days as it has soared nearly 2$ or 68% from its low of $2.95. Bankers Petroleum Ltd. (Bankers) is a Canadian-based oil exploration and production company focused on its heavy oil assets in Albania. BNK traded higher by 10.4% or $0.46/share to $4.88. In the past year, the shares have traded as low as $3.22 and as high as $9.92. On average, 2536840 shares of BNK.TO exchange hands on a given day and today's volume is recorded at 2509408. The shares are currently trading below the 200-day moving average but above the 50-day moving average. The stock may be range bound between these two levels where the 200-day moving average of $6.20 represents resistance and the 50-day moving average of $4.24 would be an area of support.

The company reports earnings on Tuesday, October 25th. The company is expected to earn

Is there a discount on the Groupon IPO?

Coupon giant, Groupon, is set for an upcoming IPO and will trade under the ticker symbol GRPN on the NASDAQ. The company is looking to raise approximately $500 million and expects the stock to be sold in the range of $16 to $18 for the offering.

Pricing Groupon at these levels would value the company around the $10 billion mark. For comparison, LinkedIn is currently valued at $8.41 billion and Netflix is $6.07 billion, though the companies all compete in largely different areas on the web.

Last year, it was reported that Google tried to purchase Groupon for $6 billion, which was turned down by the coupon company. Groupon had also taken missteps during the pre-IPO process where it had to restate revenues in order to comply. To date, coupon sales have grossed over $1 billion in the third quarter. The company has over 142.9 million subscribers.

Thursday, October 20, 2011

Microsoft Q3 EPS Hits Anayst Estimates of 68 Cents (NASDAQ: MSFT)

Microsoft (NASDAQ: MSFT) reported Q3 earnings of $0.68 per share on revenues of $17.37B. Analysts were calling for 68 cents per share earnings on revenues of $17.25B so Microsoft beat on the revenue front slightly. Shares of MSFT are down slightly by 1.33% or $0.36 in after hours trading settling at $26.69

Caterpillar Earnings Outlook And Estimates (NYSE: CAT)

Caterpillar Inc. (NYSE: CAT) is expected to earn $1.55 per share for quarter ended Sep 11. Estimates from Wall Street analysts ranged from as low as $1.38 per share to as high as $1.69 per share. For the same quarter last year, the company earned $1.22 per share. Revenues are expected to come in at $15.02B. Shares of Caterpillar Inc. traded higher by 1.38% or $1.15/share to $84.25. In the past year, the shares have traded as low as $70.50 and as high as $116.55. On average, 11900800 shares of CAT exchange hands on a given day and today's volume is recorded at 7970148. The shares are currently trading below the 200-day moving average but above the 50-day moving average. The stock may be range bound between these two levels where the 200-day moving average of $96.72 represents resistance and the 50-day moving average of $81.33 would be an area of support.


The stock price has bounced significantly off the low made on October 3rd of $67.54, up 24% since then. With the earthquake in Japan and metals prices at all time highs, heavy machinery equipment has been in high demand. Caterpillar has seen its stock drift lower over the summer along with the rest of the market, but Andy Kibbens (Co-CEO of "The Markets are Open") believes that the earnings will show that there was no slowdown for Caterpillar.

Caterpillar reports earnings on Monday, October 24th at 7:30am before the market opens. Caterpillar Inc. (Caterpillar) is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Kibbens expects this one to beat analyst estimates.

Activision Blizzard Flies To New Highs

Activision Blizzard (NASDAQ: ATVI), the developer of popular games such as Guitar Hero, Warcraft, and Call of Duty, today hit a new 52-week high. The stock is trading just pennies off of its $13.29 top price of the year. These levels have not been seen since back in 2008. As the holiday season approaches, investors are betting that sales of new blockbuster games will help drive profits into the end of the year.


Mid October is typically when the technology sector begins to pick up as investors embrace the holiday season. New hardware and software tends to drive higher stock prices beginning at this time of year. Technology stocks as a whole have been under heavy pressure lately, and even in today’s trading, as the tech-weighted NASDAQ is dragged down by dominant mobile player, Apple. Online and web gaming has becoming overly popular in recent years and continues to grow at a rapid pace. Activision Blizzard is at the forefront of mobile PC gaming and has thus far been unmatched in terms of quality and quantity of in-game features.