Continue reading Nike Moving Lower Post-Earnings

Nike Moving Lower Post-Earnings originally appeared on BloggingStocks on Wed, 23 Jun 2010 18:30:00 EST. Please see our terms for use of feeds.

It was reported today that robotic surgery company Intuitive Surgical, Inc. (NASDAQ: ISRG) may not meet analysts average revenue expectations for 2008 and this is driving shares down $7.00 hovering around $281 per share.

Although the company guidance discussed figures around $850 million while the analysts were GUESSING $873 million temporary disappointment is affecting trading. Despite this, Eli Kammerman of Cowen & Co is maintaining his "Outperform" rating saying that he expects Intuitive to beat Wall Street expectations, and that the shares will outpace the market by 15 percent to 20 percent over the next 12 months.

So earnings might be in question, the stock is bouncing, the outperform rating is intact, and everybody still loves Intuitive -- but the stock is down so far on what is an up day. It was only a month ago I posted something similar Chasing Value: Intuitive Surgical drops on analyst disappointment after ISRG report actual earnings. If not for the analysts where would we find opportunity?

Is this a buying opportunity or signs of a week market? That answer involves more guessing, but if the stock trends down more, than it is more of an opportunity, which means you should have this world class medical device company on your watch list.

UPDATE: closing price $274.75 ,-$13.90 (-4.82%)

EXTENDED HOURS: $289.00, +14.25 (5.18%) on news that ISRG will replace Bear Stearns in the S&P 500.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of ISRG.

Chasing Value: Intuitive Surgical confounds Wall Street originally appeared on BloggingStocks on Thu, 22 May 2008 15:44:00 EST. Please see our terms for use of feeds.

Continue reading Banc of America gives eBay a lift

Banc of America gives eBay a lift originally appeared on BloggingStocks on Thu, 27 Mar 2008 15:43:00 EST. Please see our terms for use of feeds.

In response to my post, "Yahoo!'s earnings message: "This is no market for investors," I received an e-mail from a Dow Jones reporter: "Hello, May I ask a question? Your headline says: "Yahoo!'s earnings message: "This is no market for investors". Provocative, but I don't see an explanation of why in your note. Could you tell me what's behind your sentiment."

Here's an answer to the question: We are in a "beat and raise" market which puts the average investor at an insurmountable disadvantage to institutional investors.

Each quarter, in order for an investor to make money, a company must beat Wall Street earnings expectations and raise guidance. Each quarter that a company actually beats and raises, Wall Street bids up the company's stock market valuation and raises its expectations for the next quarter. But eventually, the company runs up against problems that make it unable to keep beating and raising - and the stock market slams the stock. The market's reaction to Yahoo!'s earnings is a case in point.

I think the factors that would cause an investor to lose money in stocks in general outweigh the factors that would cause them to make money. The main negatives are economic trends I've cited in previous posts - rising energy prices, indebted consumers and government, declining housing market, uptick in adjustable rate mortgage payments, unpredictable new Fed Chair, global political instability. The recent performance of the S&P 500 suggests a downward trend - fueled by many of these factors.

Continue reading Investors can't beat a "beat and raise" market

Investors can't beat a "beat and raise" market originally appeared on BloggingStocks on Wed, 19 Jul 2006 09:44:00 EST. Please see our terms for use of feeds.