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: Five Reasons Darden Is Well Done

By

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

PrintPRINT

My youngest had a softball game last night that ended a bit early thanks to a downpour. But let me let me tell you, one time she got up to bat, she hit the ball out of the infield on a fly. For 6-year-olds, that's like a 500-foot shot over the center-field fence at Yankee Stadium. Daddy is once again thinking scholarship.

Asian stocks rose overnight. The Hang Seng was up 2.02% and the Nikkei was up 0.43%. Meanwhile, European stocks were showing me some green earlier this morning. And here in the US, we're currently trading higher.

Here's what I'm focused on this fine Wednesday morning:

Darden (DRI):
The company's fourth-quarter release was not too well done, but good nonetheless.

Excluding items, it put up $0.90 in the period, which was actually $0.04 better than what the Street had been looking for. The flip side is that for fiscal 2010, it offered up the following estimate for EPS from continuing ops: $2.59 to $2.85. The Street estimate I'm seeing is for $2.91.

My thoughts:

1. The bottom-line number in the fourth quarter was decent, all things considered.

2. I'm becoming more and more "constructive" on non-fast-food chains, and Darden is at the top of my list in terms of favorites.

3. The fiscal 2010 comment isn't anything to get in too much of a twist about.

4. It trades at about 12.7 times the lower end of the company's 2010 estimate (meaning $2.59) -- not too bad.

5. I'd view any sell off as an opportunity at this point.

Monsanto (MON):
The company put up $1.25 in its third quarter. That's good news because the estimate I'm seeing was for $1.17.

The bad news was the following comment in the release: "Monsanto continues to expect that its full-year 2009 ongoing EPS will be at the low end of its previously-announced range of $4.40 to $4.50."

My take:

1. I'm a bull, and I think the stock has upside potential in both the near and longer term.

2. I don't see why some have been giving these guys such a hard time. The company's got a huge name and is expected to kick out a respectable bottom line. Give my article, Ticker Shock: Four Reasons Monsanto May Mean Green Shoots, a look. I still feel the same way.

< 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