AOL, Time Warner, Disney and First Solar Earnings Preview

NEW YORK (TheStreet) -- Four companies here report earnings in after-hours trading on Tuesday and three report premarket on Wednesday.

On Tuesday afternoon it will be interesting to learn results from the multi-media company that owns properties such as CNN and HBO, and was once purchased on Jan. 10, 2000, by the Internet giant that reports premarket on Wednesday and still greets subscribers with the familiar chord, 'you got mail'.

With potential media mergers possible at anytime, the owner of the mouse house also reports in the after-hours on Tuesday.

The other four companies reporting during this reporting window provide; solar modules to reduce energy costs, a major oil refiner, a provider of speech and imaging software, and a managed healthcare provider.

Among the seven stocks reporting in the after-hours Tuesday or premarket Wednesday, two have buy ratings, and five have hold ratings. Only one stock is undervalued, and three are overvalued by more than 20%. Two have slipped in price over the last 12 months, while four have gained by 13.6% to 163.8%. Only one stock is below its 200-day simple moving average. The risk of a reversion thus applies to the other six.

Reading the Table

OV/UN Valued: Stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.

VE Rating: A "1-engine" rating is a strong sell, a "2-engine" rating is a sell, a "3-engine" rating is a hold, a "4-engine" rating is a buy and a "5-engine" rating is a strong buy.

Last 12-Month Return (%): Stocks with a red number declined by that percentage over the last 12 months. Stocks with a black number increased by that percentage.

Forecast 1-Year Return: Stocks with a red number are projected to decline by that percentage over the next 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months.

Value Level: Price at which to enter a GTC limit order to buy on weakness. The letters mean; W-weekly, M-monthly, Q-quarterly, S-semiannual and A-annual.

Pivot: A level between a value level and risky level that should be a magnet during the time frame noted.

Risky Level: Price at which to enter a GTC limit order to sell on strength.

AOL ( AOL) ($35.79) set a multi-year high at $43.93 Nov. 6, 2012, and then traded down to $29.16 on Jan. 15. The stock is just above its 200-day SMA at $35.58 with an upgrade to buy this morning. My monthly value level is $33.39 with a quarterly pivot at $35.79 and weekly risky level is $37.48.

Disney ( DIS) ($66.51) set a multi-year high at $67.89 on May 16 then traded down to $61.99 on June 24. My weekly value level is $64.85 with a semiannual pivot at $66.09 and monthly risky level at $68.88.

First Solar ( DISH) ($47.30) set a multi-year high at $59.00 on May 21 then dipped to $40.46 on June 21. My semiannual value level is $39.45 with a monthly risky level at $52.13.

Marathon Oil ( MRO) ($37.56) set a multi-year at $37.77 on July 23. My monthly value level is $37.12 with a semiannual pivot at $38.02 and semiannual risky level at $39.80.

Nuance Communications ( NUAN) ($19.32) set a multi-year low at $18.00 on March 1 and the stock is below its 200-day SMA at $20.58. My monthly value level is $17.52 with a weekly pivot at $18.71 and annual risky level at $22.02.

Time Warner ( TWX) ($64.29) set a multi-year high at $64.50 on Aug. 2. My semiannual value level is $63.73 with a monthly risky level at $65.95.

Wellcare Health ( WCG) ($61.28) trade up to $63.15 on July 26 vs. its 2013 high at $64.29 set on April 2. The low in-between was $50.41 set on May 21. My quarterly value level is $57.40 with a weekly pivot at $62.94 and monthly risky level at $63.42.

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 www.ValuEngine.com 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 RSuttmeier@Gmail.com.

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