Wednesday, July 22, 2009

Thursday Earnings

Just wanted to supply a quick primer for what I'll be focusing on tomorrow. We're still heavily into earnings season, and that is dominating the action in the market. What we're seeing is some fairly good quality earnings, especially in technology companies. We're also seeing some low quality earnings in industrial-type names, but most are making numbers due to cost cutting and are being welcomed by a favorable climate in the market. Thursday will have these companies reporting that I'm looking at:

-3M. Just looking for a general update from them. How numbers are looking internationally vs. US etc. Revenue's year over year.

-ABB. I know they'll report some trouble in their robotics unit due to auto exposure. I'm more interested in where their orders are coming in from (more from Africa and Middle East? and of course Asia). Also looking to see the type of orders (new grid projects, and their take on wind and solar). Looking for their outlook for the rest of 2009. May add shares if market reacts negatively.

-Amazon. This company has been on fire. I've never owned the stock, but love their product. A stock that can move the market.

-American Express. Looking for info on the credit situation and the health of the consumer. They of course have been weakened by this recession, but are a great company with a great CEO.

-Baidu. China!

-Burlington Northern. My favorite of the railroads. I like this sector for the next few years. I know their results will be pretty weak, but the market won't punish them much. Rails seem to be the poster child for the "market looks six months ahead" argument. The market is pricing in a recovery, thus the strength in rails.

-Diamond Offshore. My favorite of the offshore drillers. Noble reported solid results tonight, and Diamond probably will too. The market won't be surprised by anything they say unless its a massive miss.

-EMC. Tech stock I've watched that I really like the fundamentals on. Haven't seriously looked to buy it yet, but may depending on what they say tomorrow.

-EZCORP. Will the "trading down" play be abandoned?

-McDonald's. Is their growth continuing? Good barometer of global economy.

-Microsoft. Killed it last quarter, and probably will again. Isn't as boring as it used to be.

-Netfix. One of the beneficiaries of the recession. Where will their numbers come in? Amazon or Apple should buy them.

-Potash. Mosaic was better than expected, and I suspect they will be too.

-UNP. See Burlington Northern.

-Wyeth. I own this stock and am only interested in their numbers to help determine if I'll keep my Pfizer shares when I get them. This result will not move the stock much as Wyeth's stock price is now basically worth 33 dollars plus 98.5% of Pfizer shares value.


Busy, busy day. A lot for the market to digest, and will be interesting.

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