Tuesday, April 8, 2008

Q1 Earnings?

Mostly negative bias on Wall Street today. Corporate profits are the big issue right now. Most people believe that the analysts estimates are still too high. I think we will see some surprisingly poor numbers, and some surprisingly good ones.

Visa and Mastercard are getting overpriced. There is this misconception out there that just because they get paid by servicing transactions and don't hold debt they will be unscathed. A economic slowdown hurts them no question. They just don't have the risk of holding bad debt. Investors are looking for a safe haven in financial stocks, and although these are it, they are getting too expensive. They are good stocks to own, but not to buy, at least not here.

Boeing has an update tomorrow on the 787. It has seen many delays and investors are restless. I've been looking to buy Boeing as they should see strong earnings as these planes hit production. There is a huge order backlog from airlines all over the world. I'm looking to use any negative press releases of delays as an opportunity to pick up some shares. I'm targeting low 70's to buy.

Its been tough to get the market to move much in the past 4 or 5 days, and I'm sure many have no problem with that. Its a waiting game on earnings, but I'm looking to buy a few stocks here.

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