Good afternoon folks!
The S&P 500 is finding support on the 75 day moving average (orange line) and is now digesting a slew of companies’ earnings released for the latest quarter. Truthfully, earnings have been solid with almost 60% beating- pretty much in-line with historical standards. So why aren’t we coming back faster? Beats me. Apparently, companies’ estimates are too high and need to come back down in order to be priced properly for a slowing, uncertain global environment. If you are long-term however, these pullbacks represent opportunities. As a result, we have issued our new price targets for the following core holdings in our portfolio.
Terex (TEX) $20, $16
Terex Corporation (NYSE: TEX) today announced income from continuing operations of $30.2 million, or $0.27 per share for the third quarter of 2012, as compared to income from continuing operations of $36.9 million, or $0.33 per share for the third quarter of 2011.
Foster Wheeler (FWLT) $20, $18
Foster Wheeler AG (Nasdaq: FWLT) plans to hold a conference call on Friday, November 9, at 4:00 p.m. Central European Time (10:00 a.m. Eastern Standard Time in the U.S.) to discuss its financial results for the third quarter ended September 30, 2012
EMC (EMC) $20
EMC Corp. on Wednesday reported a 3% rise in net profit in third quarter to $626 million, or 28 cents per share, from $606 million, or 27 cents a share in the year-ago-period.
Caterpillar (CAT) $80, $75, $70
Caterpillar Inc.’s (CAT) third-quarter earnings rose 49%, but the company lowered its sales and profit forecasts for 2012, as inventories of unsold construction and mining machinery collide with the company’s rapid expansion of production in recent years.
Banner Bank (BANR) $25, $20
Banner Corporation (NASDAQ: BANR), the parent company of Banner Bank and Islanders Bank, today reported net income of $15.6 million in the third quarter of 2012, compared to $25.4 million in the preceding quarter and $6.0 million in the third quarter a year ago.
Transocean (RIG) $45, $40
Transocean Ltd. RIG) shares declined 1%. The offshore drilling company announced Wednesday the resignation of its general counsel, “not a welcome headline given the company’s ongoing legal issues particularly in the U.S.” with the Gulf of Mexico oil spill trial about three months out, analysts at Simmons & Co said in a note.
Trinity Industries (TRN) $30, $28, $25
Reports Q3 (Sep) earnings of $0.80 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.79; revenues rose 18.5% year/year to $937.5 mln vs the $996.14 mln consensus.
Freeport McMoran (FCX) $35, $33
Freeport-McMoRan Copper & Gold Inc.(FCX)said Monday its third-quarter profit fell to $824 million, or 86 cents a share, from $1.05 billion, or $1.10 a share, in the year-ago period. Revenue dipped to $4.42 billion from $5.2 billion.
FXI China ETF (FXI) $36- stop-loss in place at $34.95
(No earnings for etf’s)
Pulte Homes (PHM) $14, $11, $9
PulteGroup Inc. (PHM) swung to a third-quarter profit as the home builder reported more closings and higher sales prices.