Security and optimization software maker Blue Coat Systems (BCSI) blew out earnings and announced a two-for-one stock split this week, signaling to the market and its competitors, including Cisco and Riverbed, that it means business. Evelyn M. Rusli (Forbes) brings the details of Blue Coat’s success out of the closet.
Specialty retailer Zumiez (ZUMZ) reports after the bell today and expectations are high that this upstart’s numbers will impress. Pallavi Gogoi (BusinessWeek) points out that the concept retailer’s same-store sales for the recent four week period were up solidly, even when those for teen trend stalwarts Abercrombie & Fitch (ANF), American Eagle Outfitters (AEO) and Aeropostale (ARO) were down. The Disciplined Investor goes further to justify why investors should enter into Zumiez before earnings. Watch this space.
From a technical analysis standpoint, Frederick Ruffy (Optionetics) lines up some interesting stock candidates that may be in the initial stages of strong bounce backs from the recent market sell off. From the fundamental side of things, Chris Perruna (chrisperruna.com) showcases six contenders he believes will lead the way when the market makes another leg up based on three year sales and earning numbers that have been simply scorching. Although all of these potentials deserve a look, it’s interesting to note the one performer both of these lists have in common: Crocs (CROX).
The recent Fed discount rate cut gave the markets a nice boost last Friday into this week and initiated a slew of dialogue in speculative financial circles on whether or not it is time to start buying this oversold market in earnest. Jack Miller (Stock or Bonds?) claims that it is time to buy based on the recent Fed move and a possible near term entry into the “prosperity phase” of the business cycle. On the other hand, Brian Shannon (Alpha Trends) dissects the technical signals of the market and concludes that at least short-term traders should tread lightly for the time being.
What stock has bucked the negative market trend for the month of August, returning 8.5% vs. a 3.3% decline in the S&P 500 and is still poised for more upside, according to Ryan Whitmore (Zacks)? Why none other than Koppers Holdings Inc. (KOP), a little known producer of carbon compounds and treated wood products. KOP is not immune to volatility however, so only the most disciplined investor/ trader with predefined entry and exit points should approach it.
Although the market is taking it on the chin today, Alexei Oreskovic (The Street.com) examines the high expectations that analysts have for Hewlett Packard (HPQ), which announces after the bell this afternoon. The consensus is that the company will continue to take advantage of PC industry dynamics and current cost-cutting measures to outperform.
It’s a little known secret that virtualization powerhouse VMWare (VMW) made a big splash this week as the hottest IPO of the year. Chris Krasowski (WC Power Tech Fund) looks into whether this fast-growing outfit is worth all of the hype and suggests that a safer way to invest may be by way of it’s parent company EMC (EMC) which still owns about 90% of VMWare post-IPO. Still, for investors who want to invest directly, Sramana Mitra (Sramana Mitra on Strategy) recommends waiting until this high-flyer pulls back a little bit.
For those looking for some downside protection during these trying times for Mr. Market, Toro (Toro’s Running of the Bulls Market Blog) showcases some easy ways to get short without the inherent risk of shorting stock via Inverse Sector ETFs that rise when their corresponding sectors plummet. Seeking Alpha also offers a quick primer on these instruments. Right now, given the drivers of the short-term negative market environment, the ProShares UltraShort Real Estate (SRS) in particular may be worth a look.
Alyce Lomax (The Motley Fool) cooks up a case for Middleby (MIDD), the boring but high performing oven maker, and explains why its not too late for new long-term investors to taste some appreciation in the future.
Justin Fuller’s (Morningstar) interview w/Michael Kon hones in on American Express’ proven business model and brand identity, among other factors, making it a very attractive buy option.
