Last night, STLD announced a 30% EPS earnings warning. This morning, BBY announced a 30% decline in profits. If you take a look at the majority of bad EPS misses over the past quarter, you are looking at 30% EPS cuts across the board. Analysts are on crack, just like the Tea Party, with $105 EPS forecasts for 2012. If the current trend persists, we are looking at $65 to $75 in earnings for 2012.
The market opened higher this morning, after vacillating wildly between pre-market gains and losses. The rumor mill is in full force and markets are on edge. Having said that, like a bird with my head in the sand, I like refiners here, CVI, HFC and WNR.
Oh well, as I type this the market has begun to trade lower.
I will be keeping it light, on hold until there is clarity on the European debt crisis.
NOTE: I sold out of my TNA
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Thoroughly enjoyed your commentary last evening of the GOP. Even the wifey was enjoying your comments.
it appears as if we are on the same page
i read approximately 443.927 wpm
What does a 30% earnings reduction mean in terms of price of markets? Is it as simple as deducting that from where we are now or from the high in May?
using a traditional P/E then a 13x on $75=975 but a plethora of different factors affect the multiple so you could see ~850 – ~1050 as proper estimates given $75 earnings
I don’t clutter my pea brain with numbers projected by community college graduates. I simply hope and pray that my picks work. If I lose money my kids simply eat generic Fritos rather than the premium brand. That said, I like RL and NKE here.
I’m going fishing.
really ?
Looks as if – 30% is a popular number this morning. JPM sees Q3 markets revenue -30% !
Does ANYONE know anybody that shops at $BBY? I don’t. Must be the company I keep…
Why would you? Maybe if it is a small item that you need immediately. Or, if you have a burning desire to spend $100 on HDMI cables that Verizon gives you for free?
On big ticket items, see it at BBY, but buy it at AMZN, get free shipping and pay no taxes.
You’re right there. People who shop frequently at BBY are people who can’t do math. There seem to be a lot of stores for people who can’t do math to shop at. I guess there must be a lot of them.
Sold FAS from yesterday, +11.5% on common and +100% on options overnight. I may reload later today but I’m going to sift my fingers through the sands of the market now and see what’s heavy.
Bought big chunk of TZA for a swing. Feel a drop coming.
After developments in Greece and Europe in general, what are your price estimates for WNR?
Fly are you on crack? BBY reported down because Amazon is the new BBY. When is the last time you walked into one of there stores? When is the last time you purchased something on Amazon? Exactly….Look at what happened to Circuit City…
Quit tryin to shake everyone out. Even your PPT readings don’t agree with you. This market is going higher son…