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Sometimes I like keeping certain things short and sweet, and this article is no exception. I happen to like the company I'm recommending not only because of its product, but because it's on pace to surpass analysts' expectations with roughly 25 days to spare in the quarter. I happen to dislike my sell recommendation because the company is planning to offset earnings in an effort to reduce a tremendous pension liability.

MagicJack VocalTel Ltd. (CALL) - Founded in 2007, and based in West Palm Beach, Florida, CALL currently trades at a P/E ratio of 72.73 and in a 52-week range of $9.49/share (52-week low) and $28.22/share (52-week high). Analysts expect CALL to earn $0.29/share for the second quarter on revenue of $35.91 million dollars and $1.29/share on revenue of $153.66 million for the year.

I'm buying CALL at these levels. On June 4th, the company announced it is on pace to surpass analysts' expectations for the second quarter and it is implementing a new stock buy-back strategy. If the earnings from last quarter were any indication of things to come, CALL could be on track for some significant gains in the weeks to come. First quarter earnings surpassed analysts' estimates by $0.04/share and the second quarter could beat by at least $0.06/share on revenue of $36.5 million or higher. For investors looking to establish a position in CALL, I'd do so while the iron is still hot. The company is set to report earnings on July 31st and is currently trading at about $15/share. I'd be adding to my position if CALL experiences any weakness in the days leading up to the earnings announcement.

General Motors (GM) - Founded in 1908, and based in Detroit, Michigan, GM currently trades at a P/E ratio of 6.35 and in a 52-week range of $19.00/share (52-week low) and $32.08/share (52-week high). Analysts expect GM to earn $0.85/share for the second quarter on revenue of $38.61 billion dollars and $3.49/share on revenue of $155.02 billion for the year.

On Friday June 1st, General Motors announced three pension-based moves that will serve to alleviate $26 billion dollars of its current $109 billion dollar U.S.-based pension liability. That being said, I'm not fond of the move in the short term and would look for the stock to fall even further before establishing a position in the company. The first two moves include shifting the management of $26 billion dollars in pension-based accounts to Prudential Insurance Company of America (PRU) and the offering pension buy-outs to roughly 42,000 retirees. The third move will transition most of its salaried employees into a new pension management program which GM will continue to fund. This move doesn't affect the 118,000 retirees initially affected by the first and second overhaul strategies.

The reason I'm not fond of these moves is because they directly affect earnings. In the case of GM, the company will experience a non-cash earnings hit of $200 million dollars and a special charge of $3.5 billion to $4.5 billion for the second half of the year. Even though that doesn't sound like a lot, the special charge equates to roughly 2.5% of its expected annual revenue for 2012. I could see GM missing key expectations in the second quarter by $0.03/share to $0.05/share on revenue just under $37.8 billion dollars. I'd wait things out a bit longer and begin to establish a position if GM falls below its current 52-week low of $19/share.

Source: 1 Long-Term Buy And 1 Short-Term Sell