Sirvasq

Why Is the Market Going Up When Jobs Are Going Down?

Can you be any more naive? For businesses, this is a simple and time-honored judgment: cut back on labor, and become more efficient in response to lower revenues (2008). In the process, discover how much fat and lack of cohesion was present in the boom economy. Then, with a leaner, profit-yielding machine in place, profits beget confidence, which begets expansion. Stock players are not stupid; it's their money at risk. They put it at risk when conditions favor expanding PE ratios, like now. Notice the pace of earnings (not revenue, which is not the holy grail, that was the '90s) UPGRADES preceded this rally. See the documented analysis by Bespoke earlier today.

The greater fools are those who are sitting out the rally, and trying to short a fundamentally driven market, which properly takes positions after the profitability engine is in place, and awaiting the final leg of the recovery, the hiring signs on main street. Frankly, bigger profits will come maintaining a prudently managed operation than will hiring bodies and burning cash. Every business owner knows that and stock investors are no different.

Research In Motion (RIMM): Q4 EPS of $0.90 beats by $0.06. Revenue of $3.46B vs. $3.4B. Sees Q1 EPS of $0.88-0.97 vs $0.82 and revenue of $3.3-3.5B vs. $3.35B. Shares +15% AH. (PR)

Assuming $4/share, at 20 percent growth during recession, what's the multiple? Not 15. 20? 25? 30?

RIMM: In Motion for Share Price Collapse

The short crowd has got to move on to greener pastures. Not one comment on the obvious brilliant move by management, to reassure shareholders that the quarter was very salvageable, when compared to PALM's 30 percent miss, even without contribution from delayed Storm product, which will fly off the shelves starting Monday. .81 in the quarter, with growth shows at worst, the stock is a 10 PE with great growth prospects and a guarantee of locking the business market and sharing top 2 survivor spots with AAPL. The price bouncing UP shows even the bears are scared.