Adobe Running Well -- But Should You Chase?
There may be better opportunities.
Asian stocks rose as we slumbered. The Hang Seng and the Nikkei were up 0.8% and 0.38%, respectively. However, European stocks were showing me some red this morning. And here in the US, we're currently trading higher.
Here's what I'm focused on this morning:
Adobe Systems (ADBE):
The shares had a heck of a run in yesterday's session rising almost 4%. The reasons: a strong market and the fact that JMP Securities slapped an Outperform rating on it.
While it's easy to get caught up in all the chatter, I don't plan on getting sucked in anytime soon. While I think the shares could ultimately have some upside from current levels, right now I don't feel like paying more than 20 times the 2010 estimate.
In short, there are better opportunities, although I'd revisit this idea if the shares were to pull back to high $20s or low $30s. Insiders, how about ponying up?
Per the AP: "DuPont's finance chief on Tuesday reaffirmed the manufacturing conglomerate's outlook for 20 percent compound annual earnings growth for 2009 through 2012."
1. Clearly this story isn't all that sexy, however, the shares have been performing well, and I think a new high could be in the cards in the near-term given the outlook. But I'd still rather play the miser and pick it up on a pullback. .
2. Never mind that the company has been beating the pants off estimates the last few quarters and I think it's got a decent shot of doing so again.
3. There's the dividend too, which some might consider the whipped cream on top of the ice cream float.
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