Time to Buckle Up, and Buckle Down
NEW YORK (TheStreet) -- With a post-election pullback in the S&P 500 of 3.6% in the past two days, the market jitters are back, putting many investors on edge.
The election is behind us, but we see the dreaded fiscal cliff, which was obscured from view due to all the election hoopla, on the horizon and wonder whether we'll be heading over it by Jan. 1. I suspect that a deal will get done, but it remains to be seen what it will entail.
The election results changed little in terms of the balance of power in Washington, so get ready for a rocky road ahead for the markets as we approach year-end.
I expect that we'll see a lot of trading days like the last two, as well as some up days, as we grapple with all the possibilities of what the geniuses in D.C. will decide. (At some point, with the realization that the Affordable Care Act is now here to stay, there will be a whole host of other issues to grapple with, but I'll save that for another day; one crisis at a time).It was not all bad news yesterday, in the flurry of earnings releases, many of which were low profile smaller names, the kind that I typically own and/or follow, there were a few that stood out. Nuclear services name Energy Solutions (ES), which processes and disposes spent nuclear fuel and provides in-plant support, decontamination and decommissioning services, had a great quarter. Revenue of $444.2 million easily beat the $423.2 million consensus, and 11 cents per share were double the consensus estimate. The company has been extremely volatile this year, topping out above $5 back in March before falling to the $1.50 range over the summer. I took my latest position in early June, following a cut in guidance that sent shares down 55% in one day, on 32 times average volume. That seemed like an over-reaction at the time. With a fairly heavy debt load, Energy Solutions is not for anyone with a weak stomach, but the company does provide services vital to the nuclear power industry.
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