Hello all. Hope everyone is having a wonderful Wednesday. Not a lot is going on in the market today. We are currently holding one Short Sale position in Nabors Industries (NBR). We got involved at 18.45, and we are expecting to exit at 18.10 or below. The stock is up slightly today on supply news. If we don’t get a drop in the afternoon, I may move up our range to get a small gain or break even. KB Homes is down today, and I am hoping it will move down a bit further so we can buy it up. Tomorrow, I think we are going to get some great numbers from the sales of homes.
For today, we are looking to an Overnight Trade for our new position. We haven’t done one since the Research in Motion fiasco, so I am hoping that this one will bring better results…
(interesting chart on Google, my favorite company, to the left)
Overnight Trade of the Day: Bed, Bath, and Beyond Inc. (BBBY)
Analysis: One company reporting tomorrow morning has a lot going for it moving into earnings – Bed, Bath, and Beyond. While I do not do a lot of my shopping there, when I think of the home goods industry, BBBY is definitely the major force in this field. The company is expected to report earnings at 0.63 EPS, which is an eleven cents rise from one year ago. The company, though, has beaten earnings consistently for the past couple years as it has seen itself grow into an
extremely well positioned company.
The company has a number of things about it that excite me. For one, the company is continuing to improve its year-over-year profits. The company is in expansion mode as it wants to grow from 250 stores to 400 stores. They have two promising concept stores in a baby store and a Christmas store that have both shown success. Further, the company is reporting in a time when home improvement is still a must and home sales may be showing a short term surprise tomorrow.
During the tough times of our recession, many homeowners have decided to forgo sales of their homes and focus on the one they are living in at the time. They have used Home Depot, Lowes, home goods store, etc. to spruce up ailments. Some have suggested that this home development has slowed because Home Depot and Lowe’s saw disappointing…
