If this stock gets slammed over this, it will prove out to be a great opportunity to snap up shares. Jobs is a visionary and an amazing CEO but the company has alot going for it beyond Steve. If I didn't already have a big position, I would add more tomorrow...in fact, I may go ahead and do it anyway.
The U.S. economy is poised to surprise very strongly to the upside, and investors have not fully priced in the dramatic turnaround ahead, James Kostohryz believes. Or this type of rising bullishness despite so many looming troubles could set us up for a fall, with any type of shock sending the market reeling. [View news story]
The outlets that keep citing how "bullish" investors have become obviously don't pay enough attention to you guys on Seeking Alpha and the doomsday-bears over at Zero Hedge. As long as these two blogs stay so negatively slanted on the markets/the economy/the deficit/the national debt, I will continue to view sentiment as no worse than neutral. When you guys start feeling good about the world, that's when I am going to take my profits and move to the sideline.
Yum Brands (YUM) warns on China, expecting same-store sales there to be off 6% in Q4 vs. an earlier forecast of -4% thanks to the effect on KFC sales in late December from the poultry contamination issue. The company continues to expect full-year EPS of $3.24. Shares -3% AH. [View news story]
Nothing to do with cannibalizaiton, everything to do with fears of tainted chicken in China. Bigger concern is what it does to 2013 expectations, particularly Q1 guidance given that the issue really hit consumer awareness during the last 2 weeks of Q4 and it still caused them to lower SSS guidance from -4% to -6%.
American Tower (AMT -4.5%) is diving on a downgrade to Neutral from Citi. The firm cites a high valuation following a strong run-up over the last 12 months, and a lack of "meaningful upside" to Street estimates. Other wireless tower owners are lower in sympathy. SBAC -2%. CCI -2.7%. [View news story]
In an overal market environment that is less certain, the consistency of AMT's annuity stream rental revenues and growing dividend overtime as NOLs runoff and payout increases under new status as REIT, I don't think that "meaningful upside" to estimates is necessary for the stock to continue working higher. Sell-off today seems rather overdone.
Adding pressure to the slide in CF Industries (CF -11.8%) - in addition to falling corn prices - is a report from England-based Profercy research saying that Ukraine gas prices may be set for a "major cut." This will reduce the cost advantage for North American nitrogen-based crop nutrient producers. [View news story]
The issue isn't the low price of nat gas, it is the fact that the contracted price between suppliers in Russia and fertilzer producers in the Ukraine looks to be cut from $12 per mbtu to 6 per mbtu. This compare to the US price of $3.40 per mbtu (or whatever the appropriate unit is called). So the US producers still have a cost advantage (nat gas is a major input to nitrogen production) but it will be no where near the advantage they have now and may result in greater capacity coming to the global market and depressed selling prices for nitrogen.
Linear Technology (LLTC): FQ2 EPS of $0.62 beats by $0.04. Revenue of $384M (+50% Y/Y) beats by $5M. Shares -3.8% AH. (PR) [View news story]
The degree of beat does not matter. They guided down expectations for the coming quarter and that is going to weigh on the stock. Expectations were for revenues to decline next quarter but the guidance was for a much bigger decline than analysts are expecting. Earnings call tomorrow at 11:30 am eastern time.
Whole Foods (WFMI) bulls should double up with call options, UBS says, as analysts think its rally will continue without near-term catalysts. Analyst Neil Currie upgraded the stock to Buy from Neutral on increased growth prospects due to reduced costs, smaller store openings, lower prices and increasing store productivity. [View news story]
The wealthy and the healthy will keep trafficking and spending at WFMI regardless of the rest of the population's financial woes. Plus it still has synergy benefits playing out from Wild Oats acquisition. Stock likely to hold up relative to retail peers and probably broader market in tough economic environment. Ready to nibble at the 200-day.
Apple (AAPL) resumes trading, currently -6.5% at $352 AH. [View news story]
Apple (AAPL) resumes trading, currently -6.5% at $352 AH. [View news story]
The U.S. economy is poised to surprise very strongly to the upside, and investors have not fully priced in the dramatic turnaround ahead, James Kostohryz believes. Or this type of rising bullishness despite so many looming troubles could set us up for a fall, with any type of shock sending the market reeling. [View news story]
Nike (NKE): FQ2 EPS of $0.94 beats by $0.06. Revenue of $4.8B (+9.9%) in-line. Shares -4.1% AH. (PR) [View news story]
Yum Brands (YUM) warns on China, expecting same-store sales there to be off 6% in Q4 vs. an earlier forecast of -4% thanks to the effect on KFC sales in late December from the poultry contamination issue. The company continues to expect full-year EPS of $3.24. Shares -3% AH. [View news story]
American Tower (AMT -4.5%) is diving on a downgrade to Neutral from Citi. The firm cites a high valuation following a strong run-up over the last 12 months, and a lack of "meaningful upside" to Street estimates. Other wireless tower owners are lower in sympathy. SBAC -2%. CCI -2.7%. [View news story]
Adding pressure to the slide in CF Industries (CF -11.8%) - in addition to falling corn prices - is a report from England-based Profercy research saying that Ukraine gas prices may be set for a "major cut." This will reduce the cost advantage for North American nitrogen-based crop nutrient producers. [View news story]
Linear Technology (LLTC): FQ2 EPS of $0.62 beats by $0.04. Revenue of $384M (+50% Y/Y) beats by $5M. Shares -3.8% AH. (PR) [View news story]
Whole Foods (WFMI) bulls should double up with call options, UBS says, as analysts think its rally will continue without near-term catalysts. Analyst Neil Currie upgraded the stock to Buy from Neutral on increased growth prospects due to reduced costs, smaller store openings, lower prices and increasing store productivity. [View news story]
Microchip Technology (MCHP): FQ1 EPS of $0.47 misses by $0.04. Revenue of $321M (+66%) in-line. Shares +0.4% AH. (PR) [View news story]