Here's three stocks that I've been following closely, all of which are moving on recent news. The criteria I used to pick these stocks was:
- It had to be a stock I've followed/covered
- It had to have recent news mid-week this week
- It had to present an investment opportunity one way or another
- It had to be worth watching the rest of this week
I've included my latest sentiments on how I'd trade/invest with each of these companies and a short analysis of their most recent news.
Blackberry (BBRY) -
Although I still remain short on Blackberry as a company, it spiked yesterday on news of a one million phone order that had already begun to ship for their new Blackberry 10. The stock spiked almost 10% during Wednesday's trading. Thursday it was slammed at open, before recovering towards green territory again.
Last night, CNBC's Jon Najarian pointed out that he felt there was some "suspicious" trading leading up to the news, however. On "Fast Money," Najarian said that a spike in options buys preceded the BlackBerry announcement.
"This movement was more than a minute ahead of that press release hitting," he said. "This was a lot of buying in that minute. Both options and stock. I'm suspicious.
"Somebody had this just before it came out."
Although I'm not sure if the "suspicious trading" angle is going to go anywhere, it's certainly one caveat to keep your eyes on. As BlackBerry's orders still continue to roll in, we'll have more insight as to how well the phone maker is faring. I'm still bearish.
J.C. Penney (JCP) -
Through all of the muck, I still remain short on JC Penney. I had recently penned an article on why I think it's the next Eastman Kodak (EKDKQ,PK).
CEO Ron Johnson and CFO Ken Hannah came out yesterday and said that in the midst of the company's struggle to turn things around, they have no plans of leaving the company. The stock erased most of its losses on Wednesday, but eventually went on to close red. It opened Thursday down slightly, but still paring some of its losses from its previous earnings report.
I remain short on JCP, as I've cited online sales as part of the problems several times over. From CNBC's last article, we can still see it's having trouble with the online market:
In the first full year of the turnaround program, sales dropped sharply as consumers failed to warm up to Johnson's initial plan to adopt everyday-low prices and shops within stores.
Last week, the company laid off about 2,200 employees in its stores and district offices.
Earlier, 19,000 employees were laid off after the company began its transformation with Johnson at the helm.
During the presentation, Hannah noted that the company's online sales performance has been "unacceptable."
Coca-Cola (KO) -
Coca-Cola is moving on an upgrade to "outperform" by Credit Agricole. I'm bullish on Coca-Cola for serious long-term growth, I recently added it to an article I wrote about creating a bullish profile for 2013. I stated about KO:
I like Coca-Cola for several reasons:
A. It is yet another company that's going to add instant quarterly capital to your portfolio through dividends. In February, Coca-Cola announced yet again -- 51 years and running now -- that they're raising their dividend 10%. Its dividend yields 2.9%.
B. It is one of the most recognizable brands worldwide. It is the universal language when it comes to soda on the planet earth as we know it.
C. It owns Glaceau, makers of Vitamin Water.
Vitamin Water, in my opinion, has a chance to surpass Gatorade as the most popular refueling drink in the world. It's the first drink I've seen in my lifetime (yes, I've seen Powerade, All Sport, etc) that I think if marketed right, has a legitimate chance to dethrone Gatorade way down the road. Gatorade, of course, is owned by PepsiCo.
Coca-Cola closed lower on Wednesday and opened slightly higher Thursday on the news. With its constantly rising dividends and rock solid foundation, I'd easily reiterate KO as a buy.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.