Ticker Shock: LDK Solar Looking Dim; Cigna, Logitech Scaling Back
Tuesday's top stories and stocks with potential to move.
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.
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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