Just before the noon hour, the market is making new lows with the Dow down nearly 240. Options expiration coupled with earnings season makes for turbulent times.
Perfect World has very little out by way of news but is down over 8%. This is likely due to the weakness in the overall China market and has less to do with company specific dynamics.
Intercontinental Exchange and FC Stone are both holding up relatively well in such a down market. Volatility should translate into revenue for the business models they operate.
Diana Shipping gapped higher after a strong push yesterday and has given up all its gains. It is currently down 2%. While the fundamentals remain intact, this reversal may mark the end of the trend so caution is in order.
Carmax is once again testing the $20 area. If it finds support here, I may consider covering my short or at least using options to reduce the risk.
Tempur-Pedic is trading very well after beating estimates on its quarterly report. The positive trend remains intact and the company appears to be operating very efficiently.
That does it for zachstocks for the week. Rest up and be ready for more earnings related volatility next week.
update 10/19
October 19th, 2007 at 12:30 pm
SANDISK-sndk- 3 month dip expands to steep $15.00,
$59s > $44s, thoughts on bounce potential for this
better known memory chip name?
October 19th, 2007 at 12:49 pm
Hey Boris,
I don’t really have an opinion on SNDK. I don’t know enough fundamentally to expound on the company, but the chart looks absolutely horrible to me. Even with a compelling fundamental story, I would still wait for a technical improvement before committing capital.
You mentioned WFMI the other day and I really like the story behind the company. The chart is shaping up but I don’t have a position at this time. I’m trying to concentrate on a small number of stocks – enough to get decent diversification – but a low enough number to get good portfolio performance out of each pick.
Hope you’re doing well,
October 22nd, 2007 at 10:05 am
concentrating on a small number of stocks seems to be a good way for better performance and alpha gains. WFMI would be a retailer low on the 2 year charts, and maybe the story is good enough to drive it back towards the 12/2005 highs of $80-ish. mabye. BTW CROCS was way off this morning around $60.25. i sold my position around $64-ish and a buyback dividend would be nearly $4, but after the $70+ high point i am hestitant.
October 22nd, 2007 at 12:53 pm
whole foods markets -wfmi might be worth a serious look because it is a retail category leader with a $6+ Billion annual sales block a market cap of $7+ Billion. the chart value fell in half from the peak 20 months ago, wall street is treating this stock/valuation like a 200 unit chain, but the Wild Oats buyout of 120 units and 88 stores in development means it will soon be a 400 unit chain, perhaps thats worth alot more? also there is a generous and steady share buyback, so improvements in income statement metrics, if any, will be magnified.
October 22nd, 2007 at 4:50 pm
curious what your enthusiam would be on Walgreens, already down $10+, if you had a chance to go long even lower , around $35-ish ?
October 23rd, 2007 at 8:47 pm
Coach is way down tuesday. is that a short cover? long spot?