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Cisco to the Woodshed, NetEase to the Moon After Earnings

Stocks in this article: CSCO DDS DE M NTES VAL

Agricultural equipment maker Deere (DE) ($82.51 vs. $81.74 on Aug. 9) beat EPS estimates by 40 cents a share premarket on Aug. 14. Since then the stock has traded back and forth around its 50-day SMA at $83.11 staying below its 200-day at $86.70. The trading range was from a low of $81.00 last Thusday to a high of $85.07 on Monday. The hold rated stock stayed between my quarterly value level at $77.79 and my monthly risky level at $88.86 with a pivot this week at $83.50.

Department store Macy's (M) ($44.93 vs. $48.52 on Aug. 9) joined the earnings parade with an EPS miss of 6 cents a share earning 72 cents premarket on Aug. 14. The buy rated stock fell from its 50-day SMA at $48.23 on Aug. 13 to a low of $44.56 yesterday still above the 200-day SMA at $43.40 with my semiannual pivot at $46.21.

The Internet technology company NetEase (NTES) ($72.45 vs. $60.40 on Aug. 9) beat EPS estimates by 11 cents a share earning $1.37 in afterhours trading on Aug. 14. The stock opened the next morning above my quarterly pivot at $61.52, which began a moon-shot to a high of $74.69 on Aug. 20. This strength caused the stock to be to become a momentum trade. Buy-and-trade investors should thus consider booking profits, as the stock was downgraded to hold from buy.

Paint and coatings supplier Valspar (VAL) ($63.30 vs. $69.92 on Aug. 9) missed EPS estimates by 4 cents earning $1.07 a share on Aug. 13. The hold rated stock held its 200-day SMA at $64.54 on Aug. 13 then failed at its 50-day SMA at $67.46 on Aug. 14. Since then the stock has slipped to a low of $62.12 on Tuesday. My semiannual pivot is $63.88 with semiannual and quarterly risky levels at $68.80 and $70.84.

At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at
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