Tuesday, May 12, 2009

Earnings/Follow Up Commentary

I wanted to follow up on the earnings results and subsequent market reaction of a couple of names I was watching.

First, Advanced Battery Technologies (ABAT). I've never held any positions in this, and it caught my eye purely because of last weeks 1 million share buy by their CEO, just before earnings. The market was thinking the same thing I was apparently. The stock shot up to end the week, and after the results, it sold off. The earnings were fine, but no blowout like many thought possible. I do like their product (lithium ion battery sales-mostly in China), and their balance sheet (solid amount of cash for a company of its size). On the technical side, there is little support near current levels, and the stock could fall a bit more. I may look at buying it if it gets back to the 2.50-3.00 range.

Also, there was Granite City Food and Brewery (GCFB). We had the big run-up last week (stock gained 213% in one day). Earnings were not very good, as expected. They were able to increase margins due to cost cutting, but not at the levels as some of their peers. This stock will likely continue to drop as the rise was mostly earnings-related speculation.

Ormat Technologies (ORA) is taking a break after yesterday's nice run. Their results were solid and outlook fairly strong. I continue to like the Geothermal industry and feel its been overlooked. I'd probably buy this stock if I could get it in the low to mid 30's. Definitely one I'd pick up if the market as a whole moves lower.

Thats it on individual stocks. The markets continue to pause as we've been basically running out of news. I'm in the camp that would like to see a pullback here to even things out. Its still anybody's guess though as the behavior of the market in regard to bank stocks is still driving the action. Its a very difficult thing to predict right now. I have some short exposure through symbol SDS, which I would add to if any downward trend emerges.

If you've got a minute, take a look at this video I found today. Its astonishing.

Disclosure: Long SDS.

1 comment:

Apostille said...

Hi.. good insightful post..

Apostille