Ticker Shock: Sun Micro Looking Cloudy; Wynn, Electronic Arts Still Fun
Friday's top stories and stocks with potential to move.
Yesterday's close was decent - here's to finishing out the week on a high note.
Asia was in the red, with the Nikkei off more than 5%. And Europe is showing me some red as well. The Dow is up -- a little -- as I'm writing this.
Sun Microsystems (JAVA)
On Thursday, the California-based company and one-time "must-own" reported its first-quarter numbers.
It posted a hefty loss of $2.24 a share. Not counting items (such as a restructuring charge and a charge for good-will impairment), the company lost $0.09 per share. That's not too terrible I guess, but not too swift, either, given that the Street was looking for a loss of $0.08.
Here's the deal: I have no clear picture of what the next few quarters will hold - and I have this feeling that management doesn't either. Frankly, in this market, I don't want to dive in on pure faith alone. I want to see some sort of big catalyst - and I just don't see it so far.
That said, I do plan on revisiting the idea - perhaps in late December, when we may get a better glimpse into 2009.
By the way, back in the day, did you ever think this stock would trade at such lowly levels? Check out this chart - it looks like a snapshot of Mt. Everest.
Electronic Arts (ERTS)
I guess it isn't all fun and games over at Electronic Arts. The California-based video-game publisher turned in a second-quarter loss of $0.06 per share, excluding items.
That was essentially in line with expectations. However, what might happen going forward seems to have people concerned.
For fiscal 2009, its looking for $1 to $1.40 a share (wide range, huh?), not counting items. The trouble: Analysts were looking for earnings of $1.42 per share.
The apparent issue: The economy/retail.
My take: I don't think it's game over. I think the company will make a comeback. It's just that I don't want to bet on that happening any time soon. In the days ahead, I think the sell side will be busy ratcheting down estimates, and the shares could be under some pressure as a result.
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