Monday, September 13, 2010

Week of 9/13 Earnings Reports and Trades

9/14: Tomorrow is a big earnings day that will shed some more light on the status of retail and food (grocery) sectors.  The most important companies reporting tomorrow are Best Buy (BBY) and Kroger (KR).  Lets start with Best Buy.  BBY will be reporting earnings at 8am ET.  The analyst consensus is $.46 EPS on $11.65B revenue.  Most "experts" believe Best Buy will not meet the estimates and are recommending a short.  Invest Chief believes that BBY will not good blow away earnings but they won't bomb earnings.  We think they will meet somewhere around $.46.

Kroger (KR) is expected to release before the bell tomorrow morning.  Analyst predict a $.36 EPS on $18.7B in revenue.  IC believes KR will miss estimates due to more people doing out and spending less in high end grocery stores such as Kroger and Whole Foods.  Watch for a miss and buy some Oct 21 Puts.

9/16: Thursday is a big day in terms of earning reports.  We have Fedex (FDX), Oracle (ORCL) and Research in Motion (RIMM).

Fedex has been considered a bellwether for the economy in recent years because it shows businesses are spending and expanding.  Fedex is expected to report before the market opens.  Analysts predict a $1.19 EPS on $9.4B in revenue.  Invest Chief does believe Fedex will beat estimates here.  Business has rebounded for FDX and we expect only growth from here.  Invest Chief recommends a buy on shares of FDX.

Oracle will be releasing earnings after the market closes. Analysts are predicting a $.36 EPS on $7.25B in revenue.  This is going to be hugely watched for us at Invest Chief.  We believe the hiring of ex-HP CEO Mark Hurd was a good move and should give Oracle a huge advantage.  However, since HP is suing Hurd, and earnings are being reported, we need to see both situations close in favor of Oracle to get fully behind Oracle.  We do expect them to beat earnings on Thursday.  IC will keep you updated on the Oracle trade.

Research in Motion (RIMM) will be reporting info after the close on Thursday as well.  Analysts are predicting $1.35 EPS on $4.48B in revenue. 
Oh, RIMM, you were once an empire that dominated the smartphone market.  Now you have lost an astronomical amount of market share to the Apple iphone and android smartphones.  Until RIMM takes a look at the competitors and actively tries to compete with the iphone and android, we are sellers of RIMM.  We don't think they are on the correct path and need to get back on track.  Consider RIMM puts.

At the end of the week we will look back at our estimates and fill you in on new trading ideas as we see more answers to our questions.  Feel free to comment your estimates on these company earnings in the comment box below. 

As always don't forget to check out the recommended ebooks on the sidebar, there are some good books that really help out your portfolio.

Disclaimer: Invest Chief is not held accountable to any loses sustained by stocks recommended. It is always important to do your own research of the stock before you invest. Invest Chief receives absolutely no compensation from companies that are recommended. We are a private organization, dedicated to promoting financial well being and prosperity. 


  1. on RIMM what do you think on the numbers, will be there be some immediate downside. Does RIMM usually retreat 3 or 4 points

  2. Personally, I am estimating RIMM to report around $1.30 EPS, if this is the case there will be some downside...3/4 point downside not so sure.

    I wouldnt buy options to play Thursday's earnings, I would be a buyer of more longer term put options. Until they can turn around their business model.

  3. I just wanted to say I'm impressed with your blog. I found it when you linked it on investorplace regarding the dislike of RIMM.

    Since I can see that you are an expert, a have 2 questions regarding my own investments:

    Which stock that I currently own would you personally sell now, if any, and which is my best long term hold?

    I own the following: Bank of America (BAC), Citigroup (C), China Mobile Limited (CHL), Ford (F), and Vanguard Global Equity Fund (VHGEX)

    I would love to know what you think, because I am a rookie investor seeking opinions. You have convinced me to buy BUD, by the way.

  4. WOW BBY really surprised today and Kroger cost me a little coin, maybe KR will back petal a bit before fri

  5. Anonymous: First off thank for very much for the kind words!

    Ok, I wouldnt have 2 financial stocks. Personally, I like Citigroup more, I think it has way more potential to grow than Bank of America.
    CHL: a good stock and company, i like it and I would continue to hold the stock.
    F: I am a huge fan of Ford and how they have led car market. They have made many correct decisions while Toyota, Honda, GM, have made poor decision. Good stock! Keep it!
    VHGEX: I like this as a long term play and I think you will profit nicely with a world recovery.

    To Summarize: Sell (BAC), Hold the rest, buy BUD

    Good luck in your investments, from what I see you will profit nicely!

  6. tselliot:

    Yes! BBY was a huge surprise this morning! So was KR but I still believe in a longer term downtrend for KR.