FeedPosted Jul 30th 2010 11:40AM by Elizabeth Harrow (RSS feed)
Filed under: Major Movement, Earnings Reports, Forecasts, Bad News, Options, Technical Analysis
It seems that 92% year-over-year earnings growth wasn't quite enough to impress Wall Street. Shares of DVD rental kiosk operator Coinstar Inc. (CSTR) are taking a beating as traders pan the company's softer-than-forecast second-quarter results and lackluster revenue forecast.
For the recently concluded quarter, Coinstar banked a profit of $13.4 million, or 41 cents per share, up from last year's results of $7 million, or 23 cents per share. Revenue for the quarter climbed 35% to $342.4 million. As recently as May, Coinstar predicted its quarterly revenue would arrive between $363 million and $383 million.
Continue reading Coinstar Hammered After Disappointing Earnings
Posted Jul 29th 2010 3:40PM by Steven Mallas (RSS feed)
Filed under: Earnings Reports, Kellogg Co (K)

So Kellogg (
K) is not the toast of Wall Street today. At the time of this writing, shares were off by close to 6%, coming in at a quote of $48.50. Are you kidding me? A defensive stock like this one is off by almost 6%? Yes, my friends, it happens. Makes you wonder what is truly defensive and what isn't, am I right?
Shareholders have no choice but to go along for the ride. Then again, they do have a choice. Perhaps they could add to their position on the dip. After all, is Kellogg through as a long-term idea?
Continue reading Kellogg Down After Quarterly Report -- No Need to Worry
Posted Jul 29th 2010 12:00PM by Elizabeth Harrow (RSS feed)
Filed under: Earnings Reports, Options
American Axle & Manufacturing Holdings (AXL) is prepping for its turn in the earnings spotlight. The auto parts issue is slated to confess its second-quarter results ahead of Friday's opening bell, and at least one speculator is looking for a major post-event move from the shares. Bright and early Thursday morning, an ambivalent options trader opened an at-the-money straddle on AXL.
Specifically, the trader simultaneously purchased several matching blocks of August 9 puts and calls. With AXL trading just pennies above $9, both of these options are at the money. By scooping up equal numbers of puts and calls at the same strike, the trader is hoping to capitalize on a drastic move higher or lower from the security.
Continue reading American Axle Targeted by a Pre-earnings Straddle
Posted Jul 28th 2010 3:00PM by Steven Mallas (RSS feed)
Filed under: Earnings Reports, Walgreen Co (WAG), CVS Corp (CVS), Rite Aid Corp (RAD)

CVS Caremark (
CVS), whose competitors include Rite Aid (
RAD) and Walgreen (
WAG), was up during the early-afternoon session. At the time of this writing, the shares were higher by $1.34, or 4.4%. At a price of $31.94, they were trading well below the 52-week high of $38.27.
The
one-year chart is...interesting. I'm not sure an investor could look at it and confidently say with certainty where the stock is heading from here. However, for those who were already considering the company, they can at least be confident that they'd be buying lower instead of higher.
Continue reading CVS Caremark Up on Earnings News
Posted Jul 28th 2010 1:30PM by Brent Archer (RSS feed)
Filed under: Major Movement, Earnings Reports, Forecasts, Bad News, Options, Technical Analysis

Cephalon (
CEPH -
option chain) stock is trading lower today after
the company reported second-quarter earnings of $89.1 million, or $1.11 per share yesterday evening. Excluding one-time items, CEPH earned $2.05 per share, or $712.4 million. Analysts had forecast a profit of $1.77 per share on revenue of $693 million. However, shares of the stock are trading lower today after the company forecast 2010 revenue of $2.63 to $2.71 billion, below analysts' estimates of $2.73 billion. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on CEPH.
This morning, CEPH opened at $60.67. So far today the stock has hit a high of $61.42 and a low of $58.71. As of 12:15, CEPH is trading at $59.24, down $3.66 (-5.8%). The chart for CEPH looks bullish and
S&P gives CEPH a positive 4 STARS (out of 5) buy ranking.
Continue reading Cephalon Falls On Disappointing Full-Year Forecast
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