Generally speaking, earnings are holding up pretty well. More specifically:
GS - Since its a bank, or Goldman, whatever it does is wrong or not good enough. Despite crushing, simply crushing, the report. Obviously the street can care less about earnings power, as the stock has done nothing in two days. But as housing continues to firm up, the more book value of these banks is justified. Banks continue to trade 20-30% below book.
I was long GS going into earnings, and remain long. I was hoping to unload some near 102 before a pull back, then unload the rest around 105-106. (And actively trade it as it marches toward book value.)
IBM - Investors in IBM appear to care about profits. That's a nice surprise in this market. Their report continues to show their consistency, and correct strategy. IBM should be at new highs by year end. In the mean time, I will most likely unload some in the morning pop. (Ideally would like to see it push toward 195.) I plan on holding a core position until the negative trend line is tested.
From a technical perspective near 59 is a level of resistance, via the daily chart and the weekly chart.
(I will keep myself exposed to the name, and look to sell the remaining position when the trailing multiple is at or above 19. Which would suggest a stock price of 65 this quarter. As the 4rth quarter approaches, I do expect to see some level of multiple expansion due to increased demand.)
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