Chuck Aikens » stocks http://www.chuckaikens.com Tue, 08 Nov 2011 02:03:17 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Yahoo! and Apple Earnings Mean What??? http://www.chuckaikens.com/2008/10/21/yahoo-and-apple-earnings-mean-what/ http://www.chuckaikens.com/2008/10/21/yahoo-and-apple-earnings-mean-what/#comments Wed, 22 Oct 2008 04:55:55 +0000 chuckaikens http://www.chuckaikens.com/?p=138 I have been burned by the stock market on more than one occasion, but I remain fascinated and fully invested in the market even though my trading funds have been significantly reduced in the last 3 months.

With that cleared up, it seems that the current market has priced in the ‘worst case’ scenario for most companies and stocks as evidenced by Yahoo! and Apple in their after-hours releases. Let’s review:

  • Yahoo reported weaker results, weaker guidance, and 10% lay-offs, but the after hours market was up 5%.
  • Apple beat profit estimates, but was short on revenue and forecast weaker than expected holiday sales and weaker profits going forward…but the stock went up over $10 in the after-hours market.

All I can say, is that it appears that ‘bad’ news is good as long as a company doesn’t have ‘horrible’ news.  In fact, Sandisk reported terrible numbers and reduced capital investments due to weakness in demand on Monday..but traded up on Friday because they must be de-leveraging their balance sheet to prepare for a purchase.  Wow…either the market is really under-valued or Sandisk has a great Investor Relations department.

Disclosure: I am currently holding long positions in APPL and SNDK and have no position in YHOO.

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