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Soft guidance from Kohl's (KSS), Cisco Systems' (CSCO) disappointing earnings, and further...

Soft guidance from Kohl's (KSS), Cisco Systems' (CSCO) disappointing earnings, and further concerns in Europe offer some perspective into the recent pullback, Miller Tabak's Peter Boockvar says. "GDP = consumption + investment + government spending + net trade," and we're now seeing weakness in three of four.
Comments (3)
  • Stone Fox Capital
    , contributor
    Comments (5776) | Send Message
     
    Uh, didn't we want weakness in government spending? So now the bears are going to turn that into a negative as well. wow...
    14 May 2010, 11:57 AM Reply Like
  • David White
    , contributor
    Comments (4048) | Send Message
     
    KSS and CSCO had two great results. They both look like extremely strong companies. Their valuations became more reasonable in PE terms. KSS guided higher for FY2010. CSCO guidance was essentially unchanged, but leaves room for upside. Both of these companies are buys. Schizophrenic analysts love stocks that don't even have current PE's (still losing money). There is something logically wrong with this. These two gave great results. KSS had expenses coming in Q2, so did not guide as high for that. It galls me that these get picked on, but something like SHLD, which likely has to close many brick and mortar stores soon, is lauded. Admittedly it has made some improvements, but the outlook for the next year or more is still ugly.
    14 May 2010, 12:08 PM Reply Like
  • Vukephalos
    , contributor
    Comments (101) | Send Message
     
    Plus GDP is also a fantasy mix of stimulus, litigation, social welfare etc.

     

    It's like the banker in a Monopoly game at 4 A.M. trying to revive the players by passing out rounds of $100 bills.
    14 May 2010, 12:10 PM Reply Like
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