Ticker Shock: Three Reasons to Keep Nokia on Hold
Monday's top stories and stocks with potential to move.
Asian stocks rose overnight. The Hang Seng and the Nikkei were up 1.67% and 3.35%, respectively. European stocks were a smidge higher earlier this morning as well. And here in the US, we're currently trading higher.
Here's what I'm seeing this fine Monday morning:
Deutsche Bank dropped its rating on the stock like I dropped third-period French. It went from Buy to Hold.
Deutsche's move doesn't have that much of an impact on my thinking. I'm not too crazy about this company for a few reasons:
1. The stock is just a little bit rich, trading at 16 times this year's estimate.
2. I'm noticing that the estimates have been coming down over the last couple of months, and that's a turn-off, too.
3. In order for me to dial in a buy order, I'd want to see the stock in the single digits. Alternatively, I'd like some hard evidence that the current 2010 estimate is very doable.
Advanced Micro Devices (AMD):
My fellow Minyan Justin Sharon points out that Citi upgraded Intel's (INTC) number-one nemesis from Hold to Buy.
1. A bump up from Citi could cause the stock to show some signs of life in today's session. But I'm not all that excited about this news, and I don't believe it's a better play than Intel.
2. Besides chips, look at all the losses the Street expects it to make. Additionally, with the stock trading at less than the price of a value meal at McDonald's (MCD), why aren't insiders dropping lots of coin on it?
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