Monday, October 10, 2005

GM Cripples Dow & Bargains Aplenty

Auto manufacturer Delphi calls it quits and parent company GM takes it to the chin.

Well, what a way to get earnings season underway.

Things get volatile this time of year as companies either meet, surprise, or disappoint the Street's lofty expectations.

If volatility isn't your cup of tea, sit it out on the sidelines.

Let's see what our latest buy and sell recommendations are doing.

Niche retailer Urban Oufitters -- which we are still bullish on even with all that short interest clawing at the stock -- is down today.

See this as an opportunity to pick up some quality goods on sale.

If there is anything redeeming about this ugly market, it is that it has been throwing us sales left and right.

Urban Outfitters recently reiterated a strong revenue outlook and the technicals, which never lie, indicate support.

We stick to our $34 price target on URBN.

Other retailers in its space have disappointed; not Urban.

We're sure you caught the bullish story on online broker Charles Schwab in the Wall Street Journal this morning.

We've recommended Schwab shares (SCH) twice over the last 3 weeks; we continue with our $20 dollar price target.

Insiders at home improvement retailer Home Depot continue to sell stock hand over fist.

We have a position in HD, so we're obviously just as flabergasted as every other Home Depot shareholder wondering why he or she has more faith in the company than its own CFO does.

Heavy CFO selling is never pretty.

In fact, we'd rather see a CEO sell blocks than see a CFO sell even one share.

And to think that the Katrina-induced run up in HD shares would last -- even we were fooled.

Maye it's time to rotate into Lowes (LOW) ?

Or do we take Barron's word that Home Depot will enjoy strong sales in Europe?

DVR services provider Tivo is flat today -- we though we'd see some lift after rumors concerning a deal with Apple surfaced over the weekend.

Apple is supposed to make a product announcement this Wednesday -- could Steve Jobs be hiding some Tivo up his sleeve?

Genentech (DNA) may have finally bottomed -- 2 upbeat analyst notes hit the Street today and injected a little juice into the stock.

After getting spanked where the sun don't shine for allegedly cannibalizing sales of Lucentis, Genentech could sure use a little lovin'.

Genentech's oncology portfolio is blazing hot and, unless Murphy's Law proves true, this stock has nowhere to go but higher.

Finally, the market wouldn't be itself without a scare, right?

This month's culprit is the avian flu, which has bumped up shares of both Gilead (GILD) and Biocryst (BCRX) -- these should be short term pops as sentiment is clearly overriding everything else.

Today's most depressed stock, by the way, is brokerage/trader Refco (RFX).

Refco, whom Goldman Sachs took public just a couple of months ago, was slapped silly on Monday after its CEO "took a leave."

This after Refco's COO absconded only a few weeks ago.

Things that make you go hmmmmm.

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