Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Ticker Shock: Sun Micro Looking Cloudy; Wynn, Electronic Arts Still Fun

By

Friday's top stories and stocks with potential to move.

PrintPRINT


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.
< Previous
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.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE