Another low volume advance in the afternoon trading. Distribution taking place everywhere, even after hours. Here are some earnings reports and an interesting news item about Beazer Homes, although they think this will be cleared up in no time.
HAR (Harman Int’l.) REPORTS Q3 $0.31 V $0.76E, R $1.03B V $979ME, NAMES NEW CEO, CFO
- CEO "Although our Q3 rev increased 17% over the same period last year, our earnings progress was interrupted in the third quarter by unprecedented charges for warranty issues, one of which materially impacted our bottom line, "Due to a supplier discontinuation about two years ago, Harman deployed a new memory chip with existing software during the life cycle of an existing product. Although extensive testing was performed to validate this change, the software/memory chip combination developed an incompatibility over time."
DIS (Walt Disney Co) REPORTS Q2 $0.58 V $0.51E, R $8.71B V $8.47BE
SNCR (Synchronoss Technologies) REPORTS Q1 $0.16 V $0.16E, R $29.1M V $31.2ME; TO BUY BACK UP TO $25M OF STOCK (3.3% OF MARKET CAP)
- CEO: Our update for the first quarter and full year 2008 is mixed. We have materially lowered our growth expectations for 2008 due in large part to reduced revenues associated with the iPhone, which masks the underlying growth and momentum of the rest of our business. Note: SNCR ecommerce software is used to activate the iPhone in the customers home after purchase.
- approved a share repurchase program for up to $25M.<AAPL>
CSCO (Cisco) REPORTS Q3 $0.38 V $0.36E, R $9.80B V $9.75BE
- Q1 GM’s 65.4% v 65.0% y/y
BZH (Beazer Homes) RECEIVES DEFAULT NOTICE FROM BANK OF NEW YORK TRUST ON APRIL 30TH - FILING DATED 4/30
- On April 30, 2008, Beazer Homes USA, Inc. received a default notice from The Bank of New York Trust Company National Association, the trustee under the indenture governing the Company’s outstanding $103.1M unsecured junior subordinated notes due July 2036. The notice alleges that the Company is in default under the indenture because the Company has not yet furnished certain required information, including our annual audited and quarterly unaudited financial statements. The notice further alleges that this default will become an event of default under the indenture if not remedied within 30 days.
- The Company expects to be able to cure this default on or before May 15, 2008.
3 Comments
May 6th, 2008 at 9:15 pm
Lisa,
At some point you may consider changing your bearish
opinions.
Disney and Cisco came out with great earnings numbers.
Even I am re-considering my positions.
I do believe the Market discounts the future,
AAPL upto 187???
I considered shorting at 182.
Lisa, where do you see things going?
Best Always,
Noel
PS. Should we just proclaim Dow 20000 and then
turn the lights off?
May 6th, 2008 at 10:35 pm
Hey Noel -
You make some very good points. Many companies are struggling, but others are doing either good or great. DIS and CSCO had very solid numbers. AAPL, RIMM, PCLN, etc. had terrific numbers earlier. We shouldn’t lose sight of this.
Clearly this market has been in a short and intermediate term up-trend. Take a look at Chuck’s chart of the S&P weekly and you will see that every trend line he has drawn has been taken out. In fact we are only 40 S&P points from where Chuck says it would be the end of the “bear pattern”.
Bottom line…right now we are in an “up-trend” within a longer-term bear market. If you decide to go long stocks, do so in a gradual way and take your profits a bit quicker. I am slowly adding some “long” exposure to my portfolio (MU, FXI and ICO). Remember that we have had a nice run up, so we are due for a little pullback. Waiting for a pull-back may be a better time to add “long positions”.
Just my opinion….
May 6th, 2008 at 11:27 pm
When the sentiment is that “nothing will bring the market down” is also when it changes…Expect the Wave B to end soon…