Friday, January 28, 2011

Earnings - MSFTand SNDK

Earning, Earnings and More Earnings!

MSFT announced their earnings yesterday morning. It was weird as their earnings went out a bit early. The stock popped quickly (and for a very short period). I know my company would have a cow if that happened. They beat expectations (Microsoft Beats The Street, But Not By Enough To Send Stock Soaring). The stock is up slightly this morning in Europe, so I guess they were about what people expected. Better than Amazon can say I suspect.

SNDK also announced earnings. Right away (SanDisk Announces Fourth Quarter & Full Year 2010 Financial Results) when I eye-balled them I knew the street would not be happy. Because even though sales were up, profit was down. Lower margins is never a way to make Wall Street happy. I am ALWAYS wrong about tech companies, but I like what I hear about SNDK and their products (Oracle Foretells Huge Growth for Mellanox; Sandisk's Strong Status). So I will hold if they drop a bit today with no worries.

My portfolio played a lot of catch-up yesterday, rising about 2%. Largely driven by CCME based on this article (CCME: The Biggest Short Squeeze of 2011). It is not an unexciting company. I will say, of all the stocks I have owned in my entire investing time, CCME is now #2 of the companies I have made the most $ on.


Homer315 said...


Did you see the mention of HIG in the latest installment of the Barron's roundtable last week? I can't remember which roundtable member mentioned it (or, more specifically, the $9 warrants) as a good investment. Do you have any opinion on the company? I know you are pretty good about judging insurance companies (I can't remember if you work there -- I don't think so, but if you do, forget about my question).

Marsh_Gerda said...

I did read the article. HIG still has a bit of a cloud hanging over them from the TARP/sub-prime fiasco. I know they are a very good underwriting company, but I can not judge whether they are stating their assets fairly, which is why they trade @63% of book value. I do think they are a bit of a high risk, but high reward play.

Homer315 said...

Fair enough. Thanks.