Monday, February 22, 2010

BAGAKOAA Feb 22, 2010 The week starts off soft


Feb 22, 2010 The week starts off soft

Lowe’s, hey did I call it. 14 cents a share got things rolling as reported here but then it cooled off by the end of the day to a slight drop. And CPB, Campbell’s Soup, reported today not Tuesday but I did call this one as well. They were expected to hit 74 cents a share profit. They did hit 74 cents a share profit and as I suggested it disappointed. The stock came down 1.2%. It is fun being right. Nordie’s reported after the market today and came in at 74 cents a share which was one little itty bitty penny of my guess of 75 cents. Same store sales were down 6.6 percent. A couple of the financial websites said it was too early for the luxury sector to show improvement. Hey they must be reading this blog. Despite the disappointing report, the stock was still up 43 cents to 36.13. I don’t get that as I really did want to get in at a 34.50 price. I am putting a limit in at 34.50 because I think JWN (Nordies) has managed inventory very well, they have invested heavily in a great IT backbone, they are well positioned for the return of the affluent client and this is easily a 40 dollar stock by end of the year. Even at 36 a share the forward looking multiple is about 15 and that ain’t too shabby for a household name like Nordstrom’s.

OK now tomorrow TGT, aka Target aka “the black hole” at my house, should have no problem beating the 1.16 a share estimate on earnings. The whisper number is 1.18. I am going out there and guessing 1.22 a share. Look for a nice pop on Target. As you remember I got stopped out in January when Walmart came out with predatory pricing and killed the whole retail sector. I think TGT can pull this off. People are shifting from Dollar Days and WalMart up the food chain again to TGT, then we will see the shift into Luxury again. This quarter is TGTs.

Macy’s is reporting but like JWN I think they will be shy of their 1.32 estimate.

Look for HD to blow way the 16 cents a share estimate but I told you that already. (August calls at the opening). MDT, Medtronic reports tomorrow and look for a miss. I am thinking 73 which would miss the mark by 3 cents.

And I’ll give you a heads up for Wednesday. Look for CRM, Sales Force to beat the estimate and whisper numbers. Those numbers are 14-15 a share. I am thinking 19 cents a share which would be huge. Everyone is jumping on the cloud computing band wagon and I think CRM is and will remain a big player. Cramer, the WSJ and Baron’s all are talkin sexy about this stock. This is an 85 dollar stock come years end. Let see what the report is on Wednesday. More for you later Skee Daddy.

Salve Lucrum.


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