Well, next week promises to be another fun week.
Monday is the day after options expiration and it usually represents a good buying opportunity particularly since a whole new series of out of the money calls become available.
The only fly in the ointment on Monday, of course, is that IBM reports after the close. Many IBM followers are predicting excellent results [i.e., in excess of the $1.42 mean and the $1.50 high end estimate from Zack's]. Merrill Lynch analyst Daniel Mandresh has helped out Big Blue by raising his price target to $150 a share from $97.50. In his opinion, the stock could trade at an 18 times price-earnings multiple to his 1998 EPS estimate of $8.25 a share as he expects the company to grow by 15%. His 1998 EPS forecast is certainly significantly higher than the mean estimate published by First Call of $7.02 a share.
A positive IBM earnings report could set the tone for the week, or until Tuesday, at least. And, Tuesday, of course, could be a whole hornet's nest of trouble as Fed chairman Al. Greenspan testifies before congress.
Bringing up the rear, as usual, is GTW and they report on Thursday. |
