Good evening traders and investors,
Here is my overview of the markets today with possible ideas for shorting and/or longing.
S&P 500 took a small haircut today trimming ▼-0.19% from the index. TSX followed with a bigger cut of ▼-0.74%. Shorting both indexes over the coming days may be a good strategy since traders may want to continue to exit some of those huge profits earned during the previous 3 days. One bird in the hand is better than two in the bush.
The leading sector was Technology up ▲+0.16%, and the leading industry was Radio Broadcasting increasing ▲3.51%.
Some possible short and long strategies tomorrow could present with Gildan Activewear GIL which lost its shirt today decreasing by ▼-31.49% and Scorpio Tankers STNG shareholders got stung with a ▼-19.67% drubbing.
GIL apparently face high cotton prices in early 2012 and thus they project a loss for Q1 2012 according to their earnings release today; however, Bloomberg reports that farmers yielded record cotton crops so, cotton futures could drop which would then translate into higher earnings for GIL, possibly in Q3 and Q4 2012. With a PE ratio of 11.4x after today's decrease, GIL may see an influx of buyers.
Here is a brief summary of Gildan earnings report earlier today. Gildan Activewear reports EPS in-line, misses on revs; guides Q1 EPS below consensus, revs below consensus; guides FY12 EPS below consensus, revs below consensus. Reports Q4 (Sep) earnings of $0.42 per share, excluding non-recurring items, in-line with the consensus of $0.42; revenues rose 30.6% year/year to $481.8 mln vs the $497.74 mln consensus. Issues downside guidance for Q1, sees EPS of ($0.24), excluding $0.16 impact of the special distributor inventory devaluation discount per share, vs. $0.29 consensus; sees Q1 revs of $300 mln vs. $445.03 mln consensus. Issues downside guidance for FY12, sees EPS of $1.30 vs. $2.25 consensus; sees FY12 revs of $1.9 bln vs. $2.13 bln consensus and $0.16 impact of the special distributor inventory devaluation discount per share. The firm is providing sales and earnings guidance, based on the assumption of continuing weak overall economic conditions and weak industry demand. Also, Gildan states the industry is managing through a unique transition from rapid inflation in cotton costs to rapid deflation.
Pacific Ethanol PEIX grew by ▲+28.57%, and Magma Design LAVA erupted ▲+24.65%. While PEIX reports that they are in compliance with regulatory listing, the ethanol face headwinds including a cut in government incentives, rising corn prices, and a whole lot of debt according to Abby Shultz from CNBC.
Magma Design reported earnings earlier today and beat by $0.02, beats on revs - Magma announced last night that Synopsys will acquire LAVA (LAVA) 7.13 +1.41 : Reports Q2 (Oct) earnings of $0.10 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.08; revenues rose 13.0% year/year to $38.3 mln vs the $37.83 mln consensus. Announced last night that Synopsys (SNPS) would acquire LAVA for $7.35/Magma share in cash.
All companies above had stronger than normal trading volume today.
Gold settled lower by ▼-10.50 to 1739.80 and WTI crude slid ▼-0.16 to 100.20, again probably because traders looked to exit some profits. I just finished reading the third quarter 2011 report for Gold from the World Gold Council and they reported that Gold demand was up 6% so keep that in mind.
Other news in the markets today that may present with possible trading and/or investing ideas for tomorrow include:
Avago Tech beats by $0.03, reports revs in-line; issues downside Q1 rev guidance. Reports Q4 (Oct) earnings of $0.73 per share, excluding non-recurring items, $0.03 better than the consensus of $0.70; revenues rose 8.9% year/year to $623 mln vs the $620.79 mln consensus. Guides 1Q12 revs to fall down 10-14% sequentially vs. consensus of approx. -5%. Co sees 1Q12 gross margins of 50.5% plus/minus 100bps.
Mitel Networks beats by $0.07, beats on revs; guides Q3 revs in-line. Reports Q2 (Oct) earnings of $0.24 per share, ex-items, $0.07 better than the consensus of $0.17; revenues rose 4.8% year/year to $168.8 mln vs the $166.02 mln consensus. Co issues in-line guidance for Q3, sees Q3 revs of $164-$170 mln vs. $167.89 mln analysts' estimates. Gross margin percentage is expected to be in the range of 49.4 to 49.9%. Non-GAAP operating expenses as a percentage of revenue are expected to be in the range of 38.5 to 39.5%.
PVH beats by $0.08, beats on revs; guides Q4 EPS above consensus, revs in-line. Reports Q3 (Oct) earnings of $1.89 per share, $0.08 better than the analsyts' estimates of $1.81; revenues rose 9.1% year/year to $1.65 bln vs the $1.61 bln consensus. Issues guidance for Q4, sees EPS of $1.03-1.05 vs. $1.00 street estimates; sees Q4 revs of $1.467-1.487 bln vs. $1.48 bln consensus.
Earnings release tomorrow include Bank of Nova Scotia, Royal Bank of Canada, and Big Lots. Economic indicators include Italy's retail sale at 4:00pm and U.S. Money Supply at 4:30pm.
Good luck traders and investors,
Today's posts at MorningPick
Join Morningpick @Twitter @Facebook
Here is my overview of the markets today with possible ideas for shorting and/or longing.
S&P 500 took a small haircut today trimming ▼-0.19% from the index. TSX followed with a bigger cut of ▼-0.74%. Shorting both indexes over the coming days may be a good strategy since traders may want to continue to exit some of those huge profits earned during the previous 3 days. One bird in the hand is better than two in the bush.
The leading sector was Technology up ▲+0.16%, and the leading industry was Radio Broadcasting increasing ▲3.51%.
GIL apparently face high cotton prices in early 2012 and thus they project a loss for Q1 2012 according to their earnings release today; however, Bloomberg reports that farmers yielded record cotton crops so, cotton futures could drop which would then translate into higher earnings for GIL, possibly in Q3 and Q4 2012. With a PE ratio of 11.4x after today's decrease, GIL may see an influx of buyers.
Here is a brief summary of Gildan earnings report earlier today. Gildan Activewear reports EPS in-line, misses on revs; guides Q1 EPS below consensus, revs below consensus; guides FY12 EPS below consensus, revs below consensus. Reports Q4 (Sep) earnings of $0.42 per share, excluding non-recurring items, in-line with the consensus of $0.42; revenues rose 30.6% year/year to $481.8 mln vs the $497.74 mln consensus. Issues downside guidance for Q1, sees EPS of ($0.24), excluding $0.16 impact of the special distributor inventory devaluation discount per share, vs. $0.29 consensus; sees Q1 revs of $300 mln vs. $445.03 mln consensus. Issues downside guidance for FY12, sees EPS of $1.30 vs. $2.25 consensus; sees FY12 revs of $1.9 bln vs. $2.13 bln consensus and $0.16 impact of the special distributor inventory devaluation discount per share. The firm is providing sales and earnings guidance, based on the assumption of continuing weak overall economic conditions and weak industry demand. Also, Gildan states the industry is managing through a unique transition from rapid inflation in cotton costs to rapid deflation.
All companies above had stronger than normal trading volume today.
Gold settled lower by ▼-10.50 to 1739.80 and WTI crude slid ▼-0.16 to 100.20, again probably because traders looked to exit some profits. I just finished reading the third quarter 2011 report for Gold from the World Gold Council and they reported that Gold demand was up 6% so keep that in mind.
Other news in the markets today that may present with possible trading and/or investing ideas for tomorrow include:
Avago Tech beats by $0.03, reports revs in-line; issues downside Q1 rev guidance. Reports Q4 (Oct) earnings of $0.73 per share, excluding non-recurring items, $0.03 better than the consensus of $0.70; revenues rose 8.9% year/year to $623 mln vs the $620.79 mln consensus. Guides 1Q12 revs to fall down 10-14% sequentially vs. consensus of approx. -5%. Co sees 1Q12 gross margins of 50.5% plus/minus 100bps.
Mitel Networks beats by $0.07, beats on revs; guides Q3 revs in-line. Reports Q2 (Oct) earnings of $0.24 per share, ex-items, $0.07 better than the consensus of $0.17; revenues rose 4.8% year/year to $168.8 mln vs the $166.02 mln consensus. Co issues in-line guidance for Q3, sees Q3 revs of $164-$170 mln vs. $167.89 mln analysts' estimates. Gross margin percentage is expected to be in the range of 49.4 to 49.9%. Non-GAAP operating expenses as a percentage of revenue are expected to be in the range of 38.5 to 39.5%.
Earnings release tomorrow include Bank of Nova Scotia, Royal Bank of Canada, and Big Lots. Economic indicators include Italy's retail sale at 4:00pm and U.S. Money Supply at 4:30pm.
Good luck traders and investors,
Today's posts at MorningPick
Join Morningpick @Twitter @Facebook
1 Comment on Post:
i cant beleive that gildan reputation and sale going downward, so sad for every gildan fan:(
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