The Day Ahead: Don't Fear the Unknown
TheStreet Premium Services
A complimentary preview
of Real Money
Moreover, for any analyst cognizant that life exists outside of a 10-company coverage universe, third-quarter and full-year estimates would likely be reined in. Near-term, this could preliminarily pressure stocks and spur doubts as to whether the market will respond positively to the usual game -- beating lowered estimates -- in late October and early November.
Optimistic Company: W.W. GraingerKey Attributes
- Raised the bottom end of its fiscal year earnings guidance, and left top end unchanged.
- Conveniently overlooked any relevant comments on Europe in its 8-K and 10-Q SEC forms -- positive spin.
- Supported claims by pointing out double-digit percentage sales gains by month. However, the final month of the quarter was June, before a coordinated global economic slowdown ensued, especially in manufacturing. (This is an important sector for company, and has been an earnings driver.)
- Sales in the second half have been planned up 10% to 13%, with flat sequential gross margins. In English: Good luck with these targets, given global macro trends.
- Soz Says: Head for the hills. This is not worth losing sleep over the next three days.
Seemingly Realistic Company: Texas InstrumentsKey Attributes
- Orders slowed in June.
- Backlog coverage for September was lower than normal.
- Quarter-over-quarter revenue variance was worse vs. typical seasonality.
- Investment in research and development pared back a bit for the full year.
- Soz Says: Stock price is supported by QE expectations, but fundamentals don't support the valuation.
Day of RemembranceFor an investor, every day that passes offers an opportunity to take in more facts and figures and then figure out how to score a couple bucks. What does it all really mean, though, if the joys and spoils can't be shared with loved ones? Not a heck of a lot. Keep that in mind today and forever. My thoughts and prayers are with the nation and those families directly impacted by the tragic events of Sept. 11, 2001.
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.