Happy Tuesday. It appears to be a good day because we are opening in the green for the first time in several sessions. Yesterday was a nice day for us as we got into and out of one position in Urban Outfitters Inc. (URBN) for a 3% gain. We got involved in the morning at 30.70 and exited at 31.60. We liked the stock to run up before earnings as it was expected to do very well. The company did not fail to deliver and continued to increase over 4% in after hours. Anyone holding is going to be able to sell at the open for a very solid gain. Our Short Sale never entered the needed range I set on Eastman Kodak (EK) at the middle of the day, so we did not enter it. Our Play of the Week from Friday in Suntech Power (STP) has been hurt by the weak market, but tomorrow morning it reports earnings, so I am hoping for big things today. The stock is up 4% in pre-market past our entry of 8.95, hoping it can continue upwards.

Let’s get into some plays for the day…

 

Buy Pick of the Day: Teradyne Inc. (TER)

Analysis: One of our favorites from a couple weeks ago has fallen hard over the last week amidst a bear market. Today, however, could be a solid day to expect a Teradyne bounce back. The market is looking like it is poised to make some gains as bargain shopping is on the menu along with strong earnings from Wal-Mart, Urban Outfitters, and Agilent Technologies. Additionally, housing starts increased for the first time in several months. Futures have continued to creep up all morning, which is a positive sign.

So why expect a rise out of Teradyne? Agilent Technologies is one of Teradyne’s very similar competitors. The companies are both in the semiconductor equipment industry and provide similar businesses. Teradyne should get a nice rise out of Agilent as the company reported very solid earnings with an EPS of 0.54 vs. the expected 0.48 and a beat on one year ago’s 0.15. Additionally, the company saw a 30% rise in revenue. The stock is not a buy, though, as it is up 5% in pre-market already and is beginning to look slightly toppy. Teradyne, on the other hand, since last Monday, has dropped more than 10% after a solid July and Q2 earnings report…
continue reading