Ticker Shock: Three Reasons Dell's Ready for a Challenge
Friday's top stories and stocks with potential to move.
Asian stocks were a mixed bag. The Hang Seng was down 0.71% and the Nikkei was up 0.57%. European stocks were, however, showing me some green earlier this morning. And here in the US, we're currently trading lower.
Here's what I'm focused on this beautiful Friday morning:
Dell, Inc (DELL):
Did you happen to take a gander at its second quarter? Surely Michael Dell was somewhere doling out high-fives last night.
It put up $0.28 a share excluding items, which was a nickel better than expectations. Its top line came in better than expected, too. And in between the lines there was nothing to sneeze at either: Its gross margin as a percent of sales got a nice goose up from the comparable period last year.
1. This was a surprisingly strong quarter and the stock could get a well-deserved goose here in early trading.
2. I feel this is a $20 stock (at least), but I'm reluctant to chase it too high given that the larger market is ripe for a correction.
3. Keep in mind that this good news can cut both ways. Next quarter you can bet that shareholders are going to be expecting another rabbit to pop out of its hat. I believe it's up to the challenge.
For my previous take on Dell, click here.
Tiffany & Co (TIF):
Excluding items, the company that's become synonymous with fine jewelry put up $0.39 a share in its second quarter. That was an impressive $0.06 more than what analysts had expected.
My eyes also honed in on the line in the release that said it was looking for $1.65 to $1.75 from continuing ops this year. That's definitely better than the $1.58 estimate I'm seeing.
1. The earnings were good, but not dazzling. I think it would be a mistake to make an assumption (based on the better-than-expected number) that Americans as a whole are somehow willing to spend big money on luxury items. That's going to take some serious time.
2. There could be a trade here today, but I'm not totally digging it. My gut tells me its glory may be relatively short-lived.
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.
Daily Recap Newsletter