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VIDEOTicker Shock: RIMM Hits Nothing But Net
Friday's top stories and stocks with potential to move.
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Asian stocks ended higher, but just a bit. The Hang Seng and the Nikkei were both up less than 1%. Meanwhile European socks were a bit of a mixed bag earlier this morning. And here in the US. We're currently trading lower.
Here’s what I’m focused on this morning:
Diamonds in the Rough?
Those of you that follow Ticker Shock know I have this hankering every once in a while to run screens to try to find diamonds in the rough. I ran one this morning, looking for companies that are trading under one times book value, and that have had recent insider buying. Here are a couple companies that popped up:
Royal Caribbean (RCL):
Data shows that in February, an insider was bellying up to the bar, and that it also trades under 1 times book value. Cutting right to the chase here, while I’m expecting a somewhat choppy environment near term, I think the shares sail much higher over the long run.
Pacific Sunwear (PSUN):
The data shows that insiders were pretty much lining up earlier in the year to buy stock. The data also shows it trades under book. I'm concerned, however, that with the stock at $1.69, analysts and institutions may find other fish to fry.
Research In Motion (RIMM):
The CrackBerry maker was out with its fourth-quarter numbers last night after the bell. To its credit, it put up $0.90 a share in the period, which was much better than the $0.84 analysts were expecting. Meanwhile, its revenue number came in at roughly $3.46 billion, which was also better than expected. The estimate I’m seeing was for $3.4 billion. It also said it tagged on 3.9 million subscriber accounts in the period, which is a healthy number.
One more thing: It figures that first-quarter EPS will come in between $0.88 and $0.97 a share, whereas analysts are at $0.82.
This seems to be a “nothin' but net” quarter, and it appears the shares could rock at the open (as of about 8:00 a.m.). The NASDAQ (as of about that time) looks like it could go higher, too.
I’m reluctant, however, to chase the shares right now, because I'm concerned that the overall market is due for a bit of a pullback. I’m also worried that it might have set the bar a bit high for the first quarter.
I believe a lot of people are going to be expecting them to hit the market it set for itself, and any disappointment could send the shares lower.
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