MY TAKE ON EARNINGS (so far)
It's pretty clear in tech, with some notable exceptions like EMLX and XLNX, that most of tech revenues are coming in light. Some are WAY down from a year ago. Even IBM, MSFT and GE are not cutting it.
Companies are undergoing a further round of cost-cutting and many are doing a pretty good job of it. This helps the bottom line, but doesn't mean a lick when it comes to growth. Margins in some sector niches are holding up pretty nicely, but what do we make of the rather mediocre guidance?
My sense it that the tech sector may face further problems until at least Q4 and the best R/R plays may be DOD's or other stocks when they fall far enough toward major chart support. If we then get rebound day in the Naz, they might make sense.
LOOKING OUTSIDE TECH
I am going to continue to look at select drug names (like ADVP, ESRX, KG, IVX, ELN, etc.) Not only is the DRG index near 52 week lows, but some are reporting stellar earnings and guidance, like ESRX yesterday. Boyd's Gaming and many gaming stocks are doing well. Select bargains may exist in consumerland, as many stores like Linens N' Things are reported good numbers and guidance. Gold stocks, oil and energy stocks, maybe.
COMMENTS?
Any other ideas outside of tech? Specific stocks anyone likes and if so, at what level and WHY? |
