Tuesday, March 9, 2010

Earnings Update

Compass Diversified (CODI) reported this morning.  I haven't had a chance to listen to the call yet, so I don't want to comment.  The stock is down 3+% as I write, but it had ran up quite a bit prior to earnings.

Jamba Juice (JMBA) reports after the bell today, and I'm interested to see what they come out with.  Although they are likely to come in pretty good, expectations have been rising among investors as the stock has rallied for the past week and a half.  It is down today, which is no surprise as people are taking some profits and getting a little defensive before earnings, which is prudent if you own a big position.  I just made a starting purchase and it ran up before I was able to add (I wanted to wait until after earnings).  So lets see what they say, and I'll make a plan from there.  I really like where this company is headed and would like to hold a larger position.

I was quite close to starting a position in Dr Pepper Snapple (DPS).  I've been hearing some rumblings about a soda tax gaining momentum, and I thought that may shake the stock a bit.  But, investors either haven't noticed, or aren't threatened by it.  I did read that DPS's management isn't particularly worried that it will happen, but I've read a few articles talking about it.  Something to watch at least.

The bears continue to look foolish as the market continues to run.  I'm not selling anything, but not adding at this point either.  I could easily see a pullback, but it will likely won't last long.  As time goes on, investors seem content to buy the dips.  I'd welcome the opportunity to buy some of my favorite stocks as better prices, as all true value investors do.

Lets see what Jamba says after the bell!

Disclosure: Long CODI, JMBA

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