Good morning and happy Thursday. Yesterday, we got involved in an Overnight Trade position with Verifone Systems Inc. (PAY). We liked the company due to its really strong growth capabilities and because it appeared to have fairly underestimated EPS and revenue estimates. Last night, in after hours, PAY reported very solid earnings with an EPS of 0.29 vs. the expected 0.26 and revenue of over $240 million while expectations were around $227. The stock did well in overnight trading, and it is up over 5% in pre-market trading. I got involved at 17.25, and it is trading at 18.35. I am going to look to sell towards the open and take my profits for around a 7-8% gain.
Our Play of the Week, Big Lots Inc. (BIG), reported their earnings this morning. This trade has been tough with the market’s woes, but it has been able to stay close to our purchase level at 36.50. The company beat estimates with earnings at 0.68 vs. the expected 0.67. The company also upped their future forecasts. The stock is trading around the 37.00 range. My exit range was 37.97 and up. I am going to readjust this one and look to exit for a minimum of a 2% gain at 37.22.
Both trades are looking pretty good, so let’s take a look at what new trades we have for today…The chart on the left shows the problems we still face from unemployment that was further showcased in unemployment claims this morning. Yet, the market is not reacting to it at all, so it is okay for us. Still an interesting chart.
Buy of the Day: Quidel Corporation (QDEL)
Analysis: Days when the market bolts up or down significantly are tough days to know what to do because it is hard to say we can rise a lot more to make 3% gains in individual stocks, when they are opening up 4-6%. Then, it is even harder to say we will move down and analyze the market that way. Therefore, what we want to do is find the slipper that has not had the movement the market has had but should. The market is looking up today with futures above 150 points all morning on the Dow. China’s comments that they will hold onto European bonds, some very strong earnings reports, the plugging of the oil leak, and some slightly lower unemployment numbers have helped keep futures strong.
Therefore,…
