SubscribeSunday Fun: Do You Know Jack Schitt?
May 23, 2010
I have seen this several times and every time I laugh. I also often think about the many analysts that keep coming up with conflicting commentary and wonder if they know Jack Schitt themselves.
Have a laugh.
Cree (Cree) : A Closer Look By IBD
May 21, 2010
Cree (CREE) makes LED lighting and other energy-efficient products. It is a volatile stock in an sector that appears to be growing exponential. There are few companies that compete and one other that stands out: Veco Instruments (VECO).
According to IBD, below are a few key drivers that may provide direction for the stock:
- Its earnings hit a rough patch in early 2009, then rebounded in recent quarters. They climbed a hefty 262% last quarter.
- Sales growth has been accelerating, with each quarter coming in higher than the previous quarter.
- Analysts expect earnings to rise 149% in the 2010 fiscal year, which ends in June. And they see growth cooling to 37% in fiscal 2011. While that’s slower, it’s still a respectable level.
- The company’s return on equity is just 5%, which is less than the 17% minimum typically seen in winning stocks. As we’ve mentioned in other videos, that ratio tells you how efficiently a company is using the money shareholders have invested.
- Mutual funds own about 35% of the company’s available shares. And the number of funds owning the stock has risen in recent quarters, so that’s a plus.
In our fundamental analysis, we looked at the trend for earnings and sales. The company has been on a great run and analysts are looking for a great deal more out of the company.
McClellan Oscillator – Starting to Turn? Was That The Bottom?
May 21, 2010
Earlier this week, we had Tom McClellan on the TDI Podcast and we discussed a few of his timing models and what they were predicting. One that we like to watch to get a good idea of the sentiment within the markets and to consider potential oversold and overbought conditions ( along with several other indicators) is the McClellan Oscillator.
Often times, it will show a super-oversold and signal Read more
Links and Reading for May 20th
May 20, 2010
Some of the more interesting and important items for May 20th :
- South Korea Demands ‘Stern’ Reply to North’s Attack – The world is just soooo nuts.. ( polite comment)
- Jobless claims rise by largest amount in 3 months (AP) – This is the way to corporate profitability….
- British Airways Cabin Crews Cleared to Strike as Appeals Court Rejects Ban – Great timing…
- Protesters Set Fire to Thai Stock Exchange – WSJ.com – Hard-line Thai protesters set fire Wednesday to the country's stock exchange, shopping malls and a television station, while Thai authorities called an 8 p.m. curfew, casting doubt on the prospects for a resolution to the country's weeks-long political crisis despite the surrender of protest leaders earlier in the day.
- Australia Consumer Confidence Falls Most in 19 Months After Rate Increases –
What is David Rosenberg Saying? (It Ain’t Rosy!)
May 20, 2010
David Rosenberg has really never really seen a rosy outlook for equities. Sure, he called a great deal of the turmoil that hit the world markets over the past few years, but was never able to see that there was some underlying economic recovery in the U.S.
Now he continues with his generally negativity.
- While you were sleeping: European bourses are in the red, and so are Asian equity markets; bonds are on an even keel
- Credit crunch in Europe: The NYT runs with a story on how credit growth is drying up in the Euro area just as it started to in the United States two years ago
- Walmart and the consumer: CFO Thomas Schoewe on the tapes saying “more than ever our customers are living paycheck to paycheck.”
- Investor sentiment still positive … and that’s a negative!
- Shiller P/E ratio pointing to a big correction in the U.S. equity market
- Deflation is evident in the labour market … just ask any graduate
- The U.S. Federal Reserve not even thinking about raising rates until 2012
- More troubling housing data out of the U.S.: mortgage delinquencies continue to rise
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