Tuesday - July 14, 2009

Intel (INTC) had better than expected earning report. It jumped to $18.02 in after-hours trading. The company reported $0.18 adjusted earnings per share while analysts were expecting $0.08. Same time last year was $0.28, i.e. a drop of ~35.7%. Stock price at about the same time last year was between $22-24. If we discount 35.7%, stock price today would be ~$14.1-15.4. What else? Sales were down 15.3%. The company, though, has "clear expectations for a seasonally stronger second half". Can you interpret it as good news? I personally don't.
I always like INTC. I thought it is a nice company and Intel chip is almost present in every computer. I have been looking at it since January 28th, 2009. I had a little note in my agenda. It says $14.01 on that day. Now it looks expensive. Investors will soon realize that, especially when macro economy picture becomes clearer to them. It's just hype right now.
Volume in the markets is still very light these days. More earning report is coming out this week.


Monday - July 13, 2009

Screenshot from http://finance.yahoo.com/

The markets had huge gains today after a series of selling in the past week. Financials were up. Investors acted on the comments by a bearish analyst Meredith Whitney who upgraded Goldman Sachs (GS)to "buy" and also said that Bank of America (BAC)has value. It is believed that financial has to recover first before everything else does. Therefore these positive comments are taken as good news about economy recovery and outlook. GS is reporting its earnings tomorrow. I don't thnk GS is moving any higher tomorrow. Investors has already acted ahead of earnings and priced in any positive news.
Railroad operator CSX (CSX) reported its second earning today. The company reported 20% drop in earning and 21% drop in shipping volume. Considering that oil has been down significantly since last year and the company has already done some other cost cutting, the earning was still down. However, the CEO said that there are some signs that they may be seeing the bottom in many markets.
It looks like that once again people are optimistic about the economy and the markets. I am not though.

Friday - July 10, 2009


Thursday - July 9, 2009

Wednesday - July 8, 2009