Tuesday, May 2, 2017

Earnings Season!

It's another earnings season.  For market geeks like me, it's four-times Christmas.  

Applied Micro Devices (AMD) reported yesterday, and the stock has been down ever since.  I suppose it's because chips have topped-out?  It would have taken a massive quarter for them to continue their upside run, so I guess a bottom was in the forecast. Buy if you must.

Pfizer (PFE) [a core holding here] reported revenues that beat the street but earnings that disappointed.  The word from the street is that they need to pursue acquisitions in order to increase their market share and profits.  The stock might be a raging buy at these depressed levels, but do your own DD.  C'mon folks, get sick already.

Apple (AAPL) got clobbered because of expectations over the release of iPhone7, which most of us didn't pay attention to anyway.  It's possible that you can swoop-in and pick this up in the 135 range.  Otherwise, let it run through the summer.  The (supposedly) groundbreaking iPhone8 won't be out until at least October, so bide your time.  There isn't much to suggest that the stock will surge over the already-all-time-high price.  Rumors are that they are working on a Siri-like replacement for Amazon and Google's personal assistant. Let's see where that goes.  My guess is that people want less intrusion into their personal life than more.

On Wednesday, Facebook, Fitbit, Square, Tesla, and Clorox report earnings.  That should be a big day - but I said that about Monday, too - and look what happened.

Facebook looks to continue its run of success.  I don't see anything to derail another positive earnings report.  Unless you consider that the stock is already priced for perfection.  In which case, I'd hold it until they say something.
Fitbit is another story.  They haven't been able to penetrate the personal wearable space.  Garmin (GRMN) has been a major factor and unsung in the space.  Fitbit is the "Kleenex" of wearables.  They call them "Fitbit's" but the company hasn't been able to capitalize on the brand. Let's see what they say.  My guess is a neutral quarter that will leave as much to speculation as anything.

Square (SQ) is an interesting story.  The company went public in November of 2015 at around $13 a share. They should be approaching profitability now.  

Tesla (TSLA) is a complete mystery to me.  They sell fewer cars than General Motors, Toyota, or Ford; and yet their market cap is higher than any of them.  Part of that is the idea that investors think that Elan Musk has some sort of mojo on the rest of the market and his ideas will catch on. They might, but not until the stock capitulates into the low 200s.  Wait on it.

Good old Clorox (CLX) They make more stuff than you realize, and they are expected to earn $1.30 in this latest quarter on revenues of about $148 billion.  If you're looking for a stock to give to your grandchildren, I wouldn't look much further than this.  For you?  Eh.

As for me, I'm waiting on a favorite DelTaco Restaurants (TACO) to report on Thursday.  I like everything this company does, and I suspect that I'll like what they have to say on Thursday.  McDonald's and Domino's can't be the only places to be in fast food.

Godspeed.

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