General Advice- Watch this week closely, we might have a rally due to lowering energy prices. Also, there might be many cases that earnings weren't as bad as expected. I would suggest playing ETF's (Specifcally PowerShares) this week and playing the overall market trends. Individual stocks may be unpredictable this week.
Under Armor Inc. [UA] - Under Armor is a high-end sports apparel and equipment company. This company will report earnings on Tuesday, and is also expected to report a 30% growth in sales. They are expected to beat the low expectations that they set, but be careful before buying in. Since they sell to a high end market they will be affected by weakening demand due to the poor economy. Don't be surprised if they revise next quarters estimates or provide negative guidance.
Hold
Hartford Financial Services Group Inc. [HIG]- Insurers are expected to do badly due to disaster claims. However, Hartford Financial is expected to post a profit, and maybe the claims will not affect them as much as expected. If they miss their estimate there won't be much of a sell off, since I believe the negativity is factored into the price right now.
Buy
ArcelorMittal [MT] - Expect a massive profit, even the Motely Fool agrees. This stock is definately a buy, steel prices are sharpely up and investors are looking for "safe stocks". In US markets there will be a migration from small cap stocks to larger cap foreign stocks as the economy deproves. Acquisiton rumors have turned the steel market into a pessimistic bear market. All steel stocks are undervalued and are ready to surge when they report their profits. ArcelorMittal is building up their company, which is attempting to control the industry top to bottom (They are prucuring their own raw materials rather than purchasing them). This vertical integration might hurt their profits in the short term, but will help increase their margins in the long run. The company is periodically buying back stock and this should help push the price higher.
Buy Price Target $85-$90
Exxon Mobil [XOM]- Watch these profits closely, their stock might fall if profits aren't as high as expected, and watch how much they have invested in R&D. Then again their stock has hit a ytd low recently so there might be a rebound.
Watch
Sun Microsystems [Java] - This earnings report will have an impact on all other tech stocks, so watch it closely
Watch
HDFC Bank ltd. [HDB]- It will be very interesting to see what happens to this stock. There is lots of pessimism against Indian Stocks, but this bank is expected to report decent earnings. Don't buy in because it will act unpredictably.
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2 comments:
MT is down a lot.
I would buy now.
It came off its highs and went lower.
Under Armour, Inc
No point for a clothing company stock to be trading like a tech stock.
It makes sense that it came down a lot.
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