Thanks Lachesis,
I agree with GLW and MSFT. I am not so sure about LOR, PALM and RADS. LOR would depend on increased defense spending as the consumer business dried up with the failure of Globalstar and Iridium. PALM is experiencing a product glut as far as I know and consumer discretionary spending is flat right now. RADS I don't know. GLW and MSFT would be longer term positions too, these are not quick pop stocks in the current market conditions.
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FedEx (FDX) 40.21 -1.07: In April, FedEx warned it was unlikely to hit its Q4 earnings forecast of $0.85 to $0.90 per share due to deteriorating economic conditions. Subsequently, within the past 30 days, the consensus estimates for Q4 and FY01 have come down to $0.70 and $2.33 from $0.82 and $2.45 respectively. The consensus estimate for FY02, meanwhile, slipped to $2.69 from $2.80 per share. Briefing.com should remind readers that FedEx admitted at the time of its Q4 warning that the economic uncertainty was making it extremely difficult to forecast future financial results. True to its words, FedEx is drawing its fair share of attention today after announcing another revision to its earnings guidance. Citing the deteriorating economic conditions and the rapid decline in the high-tech and other durable goods industries that have increasingly affected FedEx Express volumes, the company now expects Q4 earnings to be in the range of $0.50 to $0.60 per share. In April, U.S. domestic average daily volume at FedEx Express declined 9% yr/yr while the growth rate of FedEx International Priority slowed to 1% yr/yr. FedEx warned, too, that it anticipates the economic softness continuing into fiscal 2002, and as a result, it is projecting Q1 earnings to be significantly below last year's $0.58 per share. The current consensus estimate for Q1 is $0.57. Unlike the first warning from the company, there was no accompanying statement today regarding the difficulty associated with forecasting earnings results. Although FDX is down today, that realization, along with the improvement in broader market sentiment, has helped temper some of the expected selling interest. Nevertheless, there is reason to be cautious on FDX's prospects over the near-term due to several unresolved issues, namely the timing of an economic rebound, the high cost of fuel, and disappointing volume trends. Initial resistance for FDX comes into play at its 50-day moving average (41.27) while secondary resistance is at the 200-day moving average (42.23). Until the latter is taken out on heavier than average volume, Briefing.com would be reluctant to commit new money.-- Patrick J. O'Hare, Briefing.com |
