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Ticker Shock: LDK Solar Looking Dim; Cigna, Logitech Scaling Back Glenn Curtis Jan 06, 2009 11:30 am |
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So, we ended up in the red yesterday. Too bad - I was hoping to build off January 2nd's higher close. Maybe today will be better.
One quick thing, before we get down to business: You know what drives me crazy? The Lifetime Channel. I swear that my wife gives me dirty looks after she watches some of those shows.
Asian markets were a bit of a mixed bag. The Hang Seng closed down less than 1% while the Nikkei closed up less than 1%. Europe, however was showing me some green this morning. Here in the US, we're currently trading higher.
Here’s what's got my attention this morning:
LDK Solar (LDK):
The well-known solar-wafer company indicated that it expects $425 to $435 million in revenue for the fourth quarter. Not too swift for LDK, since it had previously been looking for revenues of $555 to $565 million.That difference is no small potatoes. LDK didn’t take a surgeon’s knife to their estimate - they took a blunt axe. It's a little sad, as well, considering it wasn’t too long ago that the shares were in the $40 to $50 range.
On top of that, it said it’s looking for revenue of $2.3 to $2.5 billion in 2009. And that’s down sharply from the $2.9 to $3.1 billion it had previously been expecting.
I’m not a bottom-fisher today. I’d like to hear more, or get a little more color for 2009 before I consider dipping my toes in the water.
Cigna (CI):
Last night after the close, the well-known health insurer offered up a response of sorts to the sluggish economy. According to the release:
“CIGNA announced today several actions in response to the economic downturn that will strengthen the company’s competitive position, including the reduction in its global workforce by approximately 1,100 positions, around 4% of the company’s employees, and the planned consolidation of certain real estate locations. As a result of these actions, CIGNA expects to incur approximately $30 - 40 million, after tax, in cost reduction charges in the fourth quarter of 2008.”
I’m glad the company plans to take the charges in the fourth quarter. That might make 2009 numbers appear more attractive. As it is right now, the company is expected to put up $3.95 per share in 2009. That’s kind of eye-catching, given that the shares can be had for about $18 or so.
But am I a buyer? Not at this point. I’d like to see another quarter of results before deciding whether to pull the trigger.
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Get real-time options trading ideas from Steve Smith, veteran options trader and newsletter author, plus let him show you the way to cut risk and boost your returns through the strategic use of options. Click here for a free 14 day trial to OptionSmith by Steve Smith.
Glenn Curtis has worked as a financial writer at a series of both web and print publications, including TheStreet.com/RealMoney.com, Worldlyinvestor.com, IndividualInvestor.com, Registered Rep Magazine and Advanced Trading Magazine.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any article or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
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