It is going to be an interesting week. The Fed and oil will be at odds, and tempers are sure to flare on the trading floors. There are many earnings and eco reports we are looking at, and it is hard to choose which will be front and center. Traders and investors will be closely following every move by the Fed as they will be releasing a policy statement at 2:15 p.m. on Wednesday.

Also, stocks within the homebuilders group will be front and center as a few key players will share their earnings results. Have you seen the charts of these companies lately? Click for a good comparison. And after you take a peek, you may also wonder if they are actually stock charts or ski slopes. So with that as the backdrop, here are a few names that may actually be undercovered and worth a look.

Tuesday, June 24

Anything related to the automobile industry has been under siege of late, and I can't imagine how that will change anytime soon. HB Fuller Co. (NYSE: FUL) is involved in the manufacturing of the industrial performance/adhesive products for the assembly/packaging and automobile markets. The fact that the economy is lagging would lead one to the realization that, unless we see a quick turnaround of epic proportions, the reality of a lower share price will come with the next earnings release. Several down days of late have also had increasing volume, and that is not a good sign for a stock that is beginning to show signs of breaking down. Even so, First Call is showing a $0.45 per share quarterly estimate on $347 million of revenue.

Continue reading The week in preview: Undercovered

The week in preview: Undercovered originally appeared on BloggingStocks on Sun, 22 Jun 2008 12:30:00 EST. Please see our terms for use of feeds.

Sure, there are several earnings reports coming that are going to shake, rattle, and roll, the market this week, including Morgan Stanley (NYSE: MS) and Goldman Sachs (NYSE: GS), but what about those all important economic releases? Last week, the consumer price index was revealed for May and showed a monthly increase of .6% as energy was HOT once again, and the overall transportation costs rose the most since November 2007. Core inflation was up only .2% and investors liked the number as it calls for the continuation of a "Fed-Pause," which helped the dollar move up for the week.

New Residential Construction (permits) popped last month on an unexpected increase of the multi-family housing starts. Think about it for a minute and you will quickly realize that as families are losing their homes due to the deteriorating economic conditions, they still need live somewhere. So, the increase of 326,000 permits for multi-family housing makes perfect sense. But, don't be fooled by the fact that these are still mixed into the totals and have skewed the overall stats upwards.

Still, the reports have shown difficult conditions as the total starts have hit lows last seen in 1991. Before that, the lows of this level were seen in 1974. Economists over at Economy.com are looking for housing starts to drop again in May down to 985 million. Since the economy has become the real story (aside from the oil horror show), housing is vitally important, as it is really a proxy for the financial fortitude of the average family. Realize that if they are not buying homes, it is because they don't have the funds, cannot get credit and do not have confidence in their financial future.

Continue reading The week in preview -- Fun with economics

The week in preview -- Fun with economics originally appeared on BloggingStocks on Sun, 15 Jun 2008 12:30:00 EST. Please see our terms for use of feeds.

At best it was a week that was difficult; at worst it was a very concerning sign about what is to come. We have finally seen a significant drop in the overall sentiment due to extraordinarily high oil prices mixed with an unemployment level at 5.5%. The mixture of these and other troubling economic projections has finally come to cause investors to pause and realize that this is no place to be accepting risk beyond what is absolutely necessary.

This week will show a significant amount of reservation by investors not accepting of any shortfalls on earnings or even outlooks that are not significantly rosy. The current picture and the economic outlook was the focus of The Disciplined Investor Podcast this week, with help from money manager and economist, Michael "Mish" Sheldock.

Monday, June 9

Shuffle Master Inc. (NASDAQ: SHFL) will be reporting earnings that are expected to be $.07 per share. This has continued to be a difficult market for them even as casino construction has been rising around the world and the use of many of the products of this company are beneficial to the net profits of their customers. The stock has suffered dramatically over the past 12 months and, unless there is a product shift or new technology announced, there should be no reason that we see a catalyst for growth. Look for revenues of $45.55 million.

Ashworth Inc. (NASDAQ: ASHW) is a high-brow retailer that is expected to show a significant turn toward the negative this quarter. First Call estimates are looking for a negative $.06 per share while a year ago they were earning $.03 per share. Once again, there doesn't seem to be any reason why this company should see a beneficial upside unless investors are willing to short cover at this point. Even if that is the case, that will probably end up being temporary anyway.

Continue reading The Week in Preview: Mixed bag

The Week in Preview: Mixed bag originally appeared on BloggingStocks on Sun, 08 Jun 2008 12:30:00 EST. Please see our terms for use of feeds.

How did we get here anyway? Housing and construction companies have been crushed as the bubble burst and now investors have to make a critical decision. Do you stay and hope for a recovery or bag it and move to another position that has the potential to provide better returns?

The problem is simple to explain: Most investors hate taking a loss. In fact, most investors will look to get "even" before they sell and this attitude usually leads to greater losses, anxiety and poor decisions. The truth is that much of this can be avoided with proper risk management techniques. If any of this describes you, then consider developing a plan for risk management and a discipline that will help to protect your hard earned principal. Now, more than ever, investors need a plan. We all need a plan that includes well developed risk management disciplines, which is why I dedicate a full chapter to it in my book, The Disciplined Investor.

Monday, June 2

The week begins with the 10 am release of construction spending and the ISM Index. Construction spending is expected to continue to be weak as is the ISM.

Then we have a few housing-related earnings releases that should be of interest. Watch NCI Building Systems Inc. (NYSE: NCS). This company is engaged in manufacturing and marketing of metal products for the nonresidential construction industry. Terrific! This is a company that is suffering along with the entire construction sector...that is for sure. In fact, they company lowered the outlook for the remainder of the year back in March. It stands to reason that not much is better. The ace in the hole is the recent trend of lowering expectations and then coming out with an earnings beat. Even so, this has too much potential for problems and the sideline is a good vantage point to watch the earnings announcement, which is expected to come in with a PROFIT of 31 cents per share on $365 million of revenue. (Uh...That I would like to see.)

Continue reading The week in preview: No place like home

The week in preview: No place like home originally appeared on BloggingStocks on Sun, 01 Jun 2008 12:30:00 EST. Please see our terms for use of feeds.

Father's Day is around the corner. Why not spend some time looking at the coming earnings and how Dad's Day may have an impact. It is funny to see how many of the companies reporting earnings this week actually have links to Father's Day.

While this column has been obviously bearish of late, there are a few potential winners that may appear, just in time for the big day. Time to stock up on gifts for dear-ole-dad, or get farther away from stocks? You tell me... (by the way, comments and ideas are always appreciated)

Monday, May 26

Markets will be flat. I am certain that stocks on the U.S. Market will close at the exact price they closed last Friday. But what do I know!

Continue reading The week in preview: Are Father's Day gifts coming from DELL, RL, or MW?

The week in preview: Are Father's Day gifts coming from DELL, RL, or MW? originally appeared on BloggingStocks on Sun, 25 May 2008 13:10:00 EST. Please see our terms for use of feeds.

Continue reading Dryships (DRYS) - Will earnings sink it?

Dryships (DRYS) - Will earnings sink it? originally appeared on BloggingStocks on Mon, 19 May 2008 15:55:00 EST. Please see our terms for use of feeds.

Perhaps it is because investors have an appetite for stocks, since there seems to be few investment alternatives. Real estate is off limits and the yield on bonds and other fixed-income investments is pathetically low.

The theme for the week ahead is SMOOTH SAILING. In this week's column, we delve into some stocks that will be announcing earnings, and that may benefit from the changing tide of investor sentiment. To be sure, there will be several areas of choppiness as we continue to be bombarded by the stormy realities of a turbulent economy.

Monday, May 19

The chart for Campbell Soup (NYSE: CPB) looks M'm M'm good. Sporting a smooth line with nary a ripple over the past 12 months, management has done a great job at keeping both company earnings and share price up, even in the face of significant food inflation. While shares have been condensing during the past few months, recently they have been rising with a series of higher highs and higher lows. Be on the outlook for earnings of 44 cents per share on revenue expectations of $1.89 billion. Now that I think of it. That's a lot of soup wrapped in tin-plated steel -- one of many materials that has seen its price almost double in the past six months.

Continue reading The week in preview: Smooth sailing ahead

The week in preview: Smooth sailing ahead originally appeared on BloggingStocks on Sun, 18 May 2008 12:10:00 EST. Please see our terms for use of feeds.

Continue reading The week in preview: Misery loves these companies (WFMI, SIRI, BBI and more)

The week in preview: Misery loves these companies (WFMI, SIRI, BBI and more) originally appeared on BloggingStocks on Sun, 11 May 2008 12:10:00 EST. Please see our terms for use of feeds.

We are investing in optimistic times. News -- good or bad -- seems to magically morph into an opportunity to move markets higher. In the past week, even more than usual, weak economic news was accompanied by commentary along the lines of, "it could have been worse," and other euphoric sentiments.

It is difficult to determine whether this is another short-covering bear market bounce or a real rally. But next week will bring us new information that will start to indicate where the answer lies. For now, investors are looking at the glass as half-full. Cash on the sidelines is moving in to equities, partly because there are very few other alternatives. Yields are low, commodities are risky and real estate is taboo.

Next week begins with the celebration of Cinco de Mayo, yet the markets were way ahead -- it has shifted into party mode on its own during the past few weeks. Here is a summary of key events to watch during the week ahead:

Monday, May 5

First off, the market gets a chance to react to news of Microsoft withdrawing its bid for Yahoo. It will be interesting to see how far Yahoo's stock price sinks as well as what all the market watchers think Yahoo (NASDAQ: YHOO) and Microsoft (NASDAQ: MSFT) will do next.

Hewitt Associates (NYSE: HEW) the HR firm that has been showing amazing strength is set to report. First Call is looking for quarterly earnings of $.38 as compared to a year ago of $.23. There may be opportunity for this firm as we go into harder economic times where companies are looking for an easy solution to labor concerns.

Also reporting is Nam Tai Electronics (NYSE: NTE). It could have a good quarter since the need for computer parts is on the rise. Intel and Apple did well to show that international demand is still hot for electronics and this is one of the parts manufacturers. Through its electronics manufacturing services operations, Nam Tai makes electronic components and sub-assemblies, including liquid crystal display (LCD) panels, LCD modules, flexible printed circuit sub-assemblies and image sensors modules and printed circuit board assembly for Bluetooth headsets. First Call estimates are for $.19 as compared to year ago of $.19 per share on $163 million of revenue.

Continue reading The week in preview: Optimism reigns, but will earnings news prolong the fiesta?

The week in preview: Optimism reigns, but will earnings news prolong the fiesta? originally appeared on BloggingStocks on Sun, 04 May 2008 12:00:00 EST. Please see our terms for use of feeds.

Next week is sure to be filled with fun and volatile market conditions. The highlight will be the Fed decision on key rates, due on Wednesday, April 30, following a two-day meeting. Anytime the Fed has the floor, the markets listen. Tuesday and Wednesday will be filled with speculation up until the time of the announcement of a cut or pause.

There are many possible outcomes for this meeting, as we have seen a substantial change in investor sentiment regarding the potential need for further rate cuts. The buzz on the street is for a cut of 25 basis points and then a wait-and-see attitude from there. I think that is the most likely direction.

There has been a great deal of concern that all the recent rate cuts have not provided the benefit to consumers the economy needs. Clearly, there is a fatty clog within our financial circulatory system. Traditionally, the Fed likes to see how its actions trickle into the economy before it continues too far down one path, which would argue for a pause now. Plus, the Fed does not want to run out of ammunition by cutting rates too far too fast. But there is no question that we are dealing with a more aggressive Fed than we have seen in decades, so I think we will see another small rate cut.

Continue reading The Week in Preview: All eyes on the Fed

The Week in Preview: All eyes on the Fed originally appeared on BloggingStocks on Sun, 27 Apr 2008 12:30:00 EST. Please see our terms for use of feeds.

• Reports Q2 (Mar) earnings of $1.16 per share, $0.09 better than the First Call consensus of $1.07; revenues rose 42.7% year/year to $7.51 bln vs the $6.96 bln consensus.
• Co issues in-line guidance for Q3, sees EPS of $1.00 vs. $1.10 consensus; sees Q3 revs of $7.2 bln vs. $7.16 bln consensus.
• Gross margin was 32.9% vs 33.8% Street expectations, down from 35.1% in the year-ago quarter.
  
• International sales accounted for 44% of the quarter's revenue.
  
• Apple shipped 2,289,000 Macintosh computers during the quarter, representing 51% unit growth and 54 percent revenue growth over the year-ago quarter.
  
• The co sold 10,644,000 iPods during the quarter, representing one percent unit growth and eight percent revenue growth over the year-ago quarter.
  
• Quarterly iPhone sales were 1,703,000.
• Statement from Apple: "We're thrilled to have generated $4 bln in cash flow from operations in the first half of fiscal 2008, yielding an ending cash balance of $19.4 bln.

Continue reading Apple earnings: The last beat?

Apple earnings: The last beat? originally appeared on BloggingStocks on Wed, 23 Apr 2008 17:26:00 EST. Please see our terms for use of feeds.

Continue reading What is in store for Apple?

What is in store for Apple? originally appeared on BloggingStocks on Wed, 23 Apr 2008 15:56:00 EST. Please see our terms for use of feeds.

Continue reading Google Earnings: Live Bloggin' Page

Google Earnings: Live Bloggin' Page originally appeared on BloggingStocks on Thu, 17 Apr 2008 15:59:00 EST. Please see our terms for use of feeds.

AMD downwardly revised its Q108 revenue guidance on Monday after the market close due to lower than expected sales across all business segments. The company now expects Q108 revenues to be -15% qoq or $1.5bn versus its previous expectation that Q108 revenues would be in-line with normal seasonality of -5% to -10% qoq. Additionally, AMD will be implementing a 10% workforce reduction by the end of Q308. We are reducing our estimates on lower revenues: CY08 goes to -$2.20 from -$1.65; CY09 goes to -$1.30 from -$0.75; CY10 goes to -$0.30 from $0.40.

AMD: Borat Finance - Ish no think so ... originally appeared on BloggingStocks on Thu, 17 Apr 2008 13:58:00 EST. Please see our terms for use of feeds.

Continue reading Google earnings preview: Is there a chink in the armor?

Google earnings preview: Is there a chink in the armor? originally appeared on BloggingStocks on Thu, 17 Apr 2008 12:10:00 EST. Please see our terms for use of feeds.

Continue reading Robert Reich interview: Supercapitalism, the recession, unions, and the worldwide food shortage

Robert Reich interview: Supercapitalism, the recession, unions, and the worldwide food shortage originally appeared on BloggingStocks on Wed, 16 Apr 2008 17:21:00 EST. Please see our terms for use of feeds.

Intel Corporation today announced record first-quarter revenue of $9.7 billion, operating income of $2.1 billion, net income of $1.4 billion and earnings per share (EPS) of 25 cents.

Continue reading Intel Corp is all that AND a bag of nano-chips!

Intel Corp is all that AND a bag of nano-chips! originally appeared on BloggingStocks on Tue, 15 Apr 2008 18:21:00 EST. Please see our terms for use of feeds.

Are you wondering what the hotel industry is like during this economic slowdown? Here are a few phrases that may provide a clue:

• It doesn't get worse than this!
• Nightmare on Hotel Street
• Hotel4Sale
• Bait's Motel Reopens (ugh!)
• Hotels Offer Fuel Subsidies to Lure Guests - WSJ.com

In a short article tucked away The Wall Street Journal today, there is an interesting marketing idea being presented: using vouchers to bring in paying guests. But to me, the new plan to give away vouchers for free gasoline as a means to bring in guests is not a very exciting idea. In fact, how many ways and in how many languages can you say stupid?

If lower costs do not drive hotel bookings, does the brilliant marketing team at Sleepin' Now & Sellin' Later think that there is any possible way to bring up occupancy with a $50 carrot? I don't think so.

Continue reading Hotels getting desperate

Hotels getting desperate originally appeared on BloggingStocks on Tue, 15 Apr 2008 16:00:00 EST. Please see our terms for use of feeds.

Continue reading Ford Focus success shows change is happening at Ford, but it's still too little and too late

Ford Focus success shows change is happening at Ford, but it's still too little and too late originally appeared on BloggingStocks on Tue, 15 Apr 2008 09:30:00 EST. Please see our terms for use of feeds.

Continue reading Frankenstein Finance: Trying to breathe life into WaMu and Wachovia

Frankenstein Finance: Trying to breathe life into WaMu and Wachovia originally appeared on BloggingStocks on Mon, 14 Apr 2008 06:30:00 EST. Please see our terms for use of feeds.