I am changing up the format a bit on The Oxen Report starting today. Let me know what you think. Yesterday, our buy pick of the day was very successful, giving us a solid 3% return. At 8:15 AM, I chose E*Trade Financial Corp. (ETFC) as my buy pick of the day.In my Oxen Report Morning Levels alert for members, I suggested entering E*Trade at 1.72 for an entry point with an exit at 1.79. After five minutes of the open, E*Trade pulled back to 1.72, where we opened the position. By 9:45 AM, the stock had reached 1.79 for a 3% gain. Yingli Green Energy (YGE) was our Short Sale of the Day. Unfortunately, this stock did not work as well due to the rally in the market. A First Solar downgrade, as well as, a heavily overweighted YGE was the thinking behind the pick, but the stock got too far down in price in the morning, and we entered at too low of a price with 12.55. We got stopped out for a 3% stop loss at 12.80. Went 1/2 yesterday, but made that great 3% on ETFC.
On to today…
Buy Pick of the Day: Best Buy Inc.
Typically, one does not select a company that missed its EPS and profit estimates for its second quarter results as its buy of
the day, but I like the prospects for BBY. The company did miss estimates and is only down 1% in pre-market trading as of 8:30 AM. Why is that? The company made $158 million in profit in its Q2 results, which was down 22% from one quarter ago. The company hit an EPS of 0.37, while analysts had been expecting the company to hit an EPS of 0.42. On the other hand, the company grew revenue 12% beating expectations and raised its full year outlook from 2.50 – 2.70 EPS to 2.70 – 3.00 EPS, with analysts expecting 2.87 on average.
A lot of numbers but what it really means is that the company grew its revenue from one year ago and was able to raise its full year outlook while missing profit estimates in the short term. So, in the long term, the stock’s book value is higher for the full year based on its raise in expectations. This makes the long term prospects of the company better, but in the very short term, it is not as strong.
With the way the…
