It was a green start to the week as the SPY closed above $176 for the first time. Folks will be looking at some old data this morning as September retail sales and PPI are released, though better late then never, I guess. AAPL reported some great numbers last night, and it depends on what kind of financial goggles you're wearing to decide whether they were good or bad. The one data point everyone is referencing, however, are AAPL margins. They came in lower once again, but they beat all estimates and the normal conservative guidance was well spot on. This sets AAPL to continue its move into the $600s, though at a slower pace that should destroy all the call/put holders over the short-term.
After the bell today we have earnings from: BWLD, BIDU, QCOR, TRLA, YELP, SFLY, and LNKD. TRLA looks interesting and as Dubi has pointed out, the better play may be Z on the heels of those earnings. I also may take a look at one of my favorites, SFLY, at the open for a few lottos.
I added SAM, ISRG, SSYS, OPEN, FFIV, and CF calls yesterday and will post when I close them.
Here are some of the analyst changes of note:
STX Seagate upgraded to Hold from Sell at Craig-Hallum |
Craig-Hallum upgraded Seagate due to stable gross margins despite lack of industry unit growth. Price target is $48 |
AAPL Apple reported very strong results, guidance, says BMO Capital |
BMO Capital does not expect the market to be disappointed by Apple's gross margin outlook, and the firm thinks the company has several upcoming positive catalysts. It raised its price target on the shares to $600 from $508 and keeps an Outperform rating on the shares |
RHT Red Hat upgraded to Buy from Outperform at CLSA |
CLSA upgraded Red Hat due to valuation, expectations for a stronger Q3 and Q4, and upcoming large contract renewals. Price target lowered to $53 from $61 |
DRI Morgan Stanley sees $12 in value if Darden were to break-up |
Following recent shareholder activism, Morgan Stanley said Darden could create $12 per share in value by spinning off the faster growing Specialty Restaurant Group and monetizing real estate holdings. However, the firm believes the best near-term options are capex cuts and maintains its Equal Weight rating |
RVBD Riverbed outlook still positive, says Oppenheimer |
After Riverbed reported lower than expected revenue for its September quarter and provided lower than expected revenue guidance for its December quarter, Oppenheimer reports that the company's operating margins improved while its new product growth remains robust. The firm expects the company to eventually benefit from increased federal spending, and it keeps an Outperform rating on the shares |
DISH DISH price target raised to $54 from $49 at Brean Capital |
Brean Capital raised its price target on DISH on the belief the company is potentially on a pathway to significant value creation. The firm expects the company to regain its position as a low cost provider and to return to subscriber growth which will capture market share and create significant shareholder value. Shares are Buy rated |
AAPL Apple price target raised to $600 from $540 at Stifel |
Stifel raised its price target on Apple after the company reported stronger than expected Q1 results, as the firm thinks that the company's gross margins are stabilizing. The firm keeps a Buy rating on the stock |
AAPL Apple business trends have stabilized, says Piper Jaffray |
Piper Jaffray's Gene Munster says Apple's Q4 results were largely as expected and that the company's overall trends in the business have stabilized. Munster reiterates an Overweight rating on the stock with a $640 price target |
YELP and LNKD should be fun to watch tonight but they're hard for me to play with the premiums so expensive, especially for LNKD, where you need a near-20% move to make any money on the calls side given how I would trade it.
Here are the strikes I'm looking for at the open:
Stock Ticker | Call/Put | Strike | Expiration | Closing Price | Entry Price |
SHLD | CALL | $65.00 | Nov | 0.50 | 0.50 |
SFLY | CALL | $65.00 | Nov | 0.40 | 0.40 |
SHLD had some news about more of its assets being possibly spun-off rather than sold as well as some of its real estate actually being sold. I really should put a bid in for the stock, so I'll probably try for some calls. SFLY calls are a bit pricey, but think this could be the earnings report that sends it back over its all-time highs. I'll take a shot at some $65 calls.
Let's have a great day!
- JB