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Ticker Shock: Three Reasons to Keep Nokia on Hold


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

The Children's Place (PLCE):
On Friday, it was reported that a Citi analyst bumped up her rating from Hold to Buy.

Some thoughts:

1. Back In July, I was hip on the stock. But now, not as much. It's had a pretty nice run from the mid $20s. Plus, I'm looking at the estimate trends and noticing the estimates have been coming down for this year and next, which irks me a bit.

2. I'm more than a little concerned about the competitive pressures the company could see from discounters -- particularly if the recession lasts longer than we thought. Think Target (TGT) and Wal-Mart (WMT).

If the stock gets a little goose on the heels of this news, I'd rather use such an opportunity to bail.

Cheesecake Factory
At one time, this company was on fire. But the cult-like following seems to have died down a tad.

That said, just a few thoughts on the company, given the news that Piper Jaffray jacked up its rating from Underweight to Neutral.

1. The stock isn't very cheap at 18.4 times the 2010 estimate. At the same time, I'm a bit intrigued. If it makes a new high, many people will take note and might jump on the bandwagon.

2. It's not a ton of dough, but an insider apparently bought 1,000 shares in July. That's certainly nice to see -- near the highs.

3. Estimates for this year and next have been on the rise over the last couple of months.

And one final side note: Nobody seems to be taking Radio Shack (RSH) seriously. But check out this news about its buyback program. It sure seems like a good sign.

Have a great day!
No positions in stocks mentioned.

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