Ticker Shock: Abercrombie, Intel Get Pumped
Tuesday's top stories and stocks with potential to move.
As we all know, the House of Representatives rejected the bailout plan yesterday afternoon. Both Republicans and Democrats voted against the bill. Perhaps not surprisingly, many oberservers around the world didn't look upon this too favorably. The Nikkei is off, and the Russians took a beating.
The good news, however, is that Europe is a mixed bag, and here in the States it appears that our elected officials will eventually get off their collective hindquarters, do their jobs, and get something inked before we are all end up sitting on the edge of a smoldering financial crater. The Dow futures are actually up triple digits prior to the open.
Abercrombie & Fitch (ANF)
Prior to the open, a Friedman, Billings, Ramsey analyst upped her rating on the well-known retailer from "Market Perform" to "Outperform."
I think this is a bold move: Abercrombie isn't exactly known for being affordable, and consumers are still reluctant to part with their hard-earned money. Plus, the stock continues to languish.
I do wonder whether she isn't catching that old falling knife here. Earnings estimates for the October quarter have declined from $1.18 to $1.14 over the last 30 days, and the average estimate for the year has gone from $4.99 to $4.93 a share during that time.
In other words, I like this idea of bargain-hunting, but I'm not sure this is the right time to stick one's neck out on Abercrombie.
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The 800-pound gorilla of chip-making received a much-needed upgrade this morning from Piper Jaffray. The analyst upped his rating from "Neutral" to "Buy." The analyst called it a "sound investment in an uncertain world."
My take: I can understand wanting to dip into Intel at these levels. After all, it has terrific products and a great market position. But the shares are right near their 52-week low, and quite susceptible to tax-loss selling.
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