On Friday, we got involved into two brand new positions. The first position was in a Midterm Trade in Suntech Power (STP). This solar company is set to release earnings on Wednesday morning, and it should make some moves before earnings as solar has been killing earnings. This morning, Jinko Solar (JKS), for example, reported an EPS of 1.39 vs. the expected 0.58. We are involved with STP at 8.90, looking for 4-6%. Additionally, on Friday, we got involved in a Long Term Position in Sanitation Systems of Sau Paulo (SBS). This Brazilian company has great long term outlook, and I think it could be a great play for us moving forward. We are involved at 40.10.
Futures are down this morning as we move into the open on news out of Japan that its Q2 growth slowed. Further, Japan’s economy is now smaller than that of China. There was not much economic news on the morning, but at 10 AM is the housing market index.
Let’s see if we can find some plays…
Buy Pick of the Day: Urban Outfitters Inc. (URBN)
Analysis: Monday is not looking like a high flying day thus far, but futures have started to move towards the green after a nice bullish report from the NY Fed Manufacturing Index that showed the index improving to 7.1 vs. the expected 5.1. The news is honestly one of the first positive economic data points I have seen in a week. While the index is not going to light a fire under the market, it does help keep things from falling even further to start this week. The 10 AM Housing Index will also be key. Overall, though, we are most likely at a neutral day with things not shifting too greatly. One stock, though, that I think has the ability to open at an extreme undervaluation and make a move this morning and into the afternoon is Urban Outfitters (URBN).
I am young enough where there was a time when URBN was my heaven. I only shopped at this store. Its a great mid-teen to college store, but it has felt the brunt of an exodus of money from the hands of these money spending hordes as they have declined in jobs and their parents’ wealth has decreased. The company, though, is set to make a nice rebound in Q2 of 2010. The company is set to report an EPS of…
