Anyone see the movie Office Space
? I’ve seen it maybe a half dozen times over the years and I tell you -- it gets funnier every time. If you work 9 to 5 or in an office, check out this film.
Asian stocks rose overnight. The Hang Seng
and the Nikkei
were up 1.67% and 3.35%, respectively. European stocks were a smidge higher earlier this morning as well. And here in the US, we're currently trading higher.
Here’s what I’m seeing this fine Monday morning:Nokia
Deutsche Bank dropped its rating on the stock like I dropped third-period French. It went from Buy to Hold.
Deutsche’s move doesn't have that much of an impact on my thinking. I’m not too crazy about this company for a few reasons: 1.
The stock is just a little bit rich, trading at 16 times this year’s estimate. 2.
I’m noticing that the estimates have been coming down over the last couple of months, and that's a turn-off, too. 3.
In order for me to dial in a buy order, I’d want to see the stock in the single digits. Alternatively, I’d like some hard evidence that the current 2010 estimate
is very doable. Advanced Micro Devices
My fellow Minyan Justin Sharon points out that Citi upgraded Intel’s
(INTC) number-one nemesis from Hold to Buy
A bump up from Citi could cause the stock to show some signs of life in today’s session. But I'm not all that excited about this news, and I don't believe it’s a better play than Intel.2.
Besides chips, look at all the losses
the Street expects it to make. Additionally, with the stock trading at less than the price of a value meal at McDonald's
(MCD), why aren't insiders
dropping lots of coin on it? The Children’s Place
On Friday, it was reported that a Citi analyst bumped up her rating
from Hold to Buy.
Back In July, I was hip on the stock
. But now, not as much. It’s had a pretty nice run from the mid $20s. Plus, I’m looking at the estimate trends and noticing the estimates have been coming down for this year and next, which irks me a bit. 2.
I’m more than a little concerned about the competitive pressures the company could see from discounters -- particularly if the recession lasts longer than we thought. Think Target
(TGT) and Wal-Mart
If the stock gets a little goose on the heels of this news, I’d rather use such an opportunity to bail.
At one time, this company was on fire. But the cult-like following seems to have died down a tad.
That said, just a few thoughts on the company, given the news that Piper Jaffray jacked up its rating from Underweight to Neutral
The stock isn't very cheap at 18.4 times the 2010 estimate. At the same time, I'm a bit intrigued. If it makes a new high, many people will take note and might jump on the bandwagon. 2.
It’s not a ton of dough, but an insider
apparently bought 1,000 shares in July. That’s certainly nice to see -- near the highs.3.
Estimates for this year and next have been on the rise over the last couple of months.
And one final side note: Nobody seems to be taking Radio Shack
(RSH) seriously. But check out this news
about its buyback program. It sure seems like a good sign.
Have a great day!
No positions in stocks mentioned.
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 stock 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.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.