Digital River Inc. (Nasdaq: DRIV, stock) reported a lower fourth-quarter profit and reduced its forecasts for the first quarter and full-year 2007. Digital River earned $16.4 million, or 36 cents per share, compared with a restated $18.1 million, or 45 cents per share, for the same quarter in 2005. Excluding stock-option expenses and other charges, Digital River reported 47 cents per share beating earning estimate polled by Thomson Financial of 46 cents per share. Revenue rose to $83 million against expected $82.4 million. Despite that, the stock price climbed after analysts decided to support and gave it a pat on the back. Digital River now predicts 44 cents per share in profit for the first quarter and $1.86 per share for the year, including stock-option expenses. Deutsche Bank analyst Jeetil Patel said the forecasts were still in line with Wall Street predictions, and the stock is trading at a discount – reiterated a “Buy” rating with $65 stock price target. BMO Capital Markets analyst Leland Westerfield raised his 2007 and 2008 projections for the company, saying 2006 may mark the beginning of an upturn for the stock.
Such is the power and influence of analysts. Of course one of the reason I invested this stock is because its’ $55 Call option was being bid-up. Looking at the chart, did you notice the stock price peaked on the day after the earning announcement? If only I sell at that moment …
Estee Lauder Companies Inc. (NYSE:
Leveraging on the good result, I was actually hoping for it to gain more momentum after the first day of the earning announcement. But as the chart has proven, for the next subsequent 7-days post-earning, the stock stubbornly stay below $48 but above $46. To liquidate my position for other trades, I decided to take profit. Furthermore it’s a 169% profit for a 10-days trade. I’m happy with the profit.
Mattel Inc. (NYSE:
Looking at the chart you can see how the uptrend stopped at the resistance of $26.5 on Feb-8-2007. Hence when it hit the same spot again, I closed my position to lock-in profit. Because the Apr 25 Call was quite cheap, my 50 contracts managed to bring in good profit of over US$5000. What do you expect from a 2-week trade with over 130% profit? Can’t be too greedy or risk the punishment – I’m actually a bit nervous with the Dow Jones and Nasdaq current level.
Priceline.com Incorporated (Nasdaq:
brand, Booking.com.
Merrill Lynch analyst Justin Post said that while growth in Europe continues to top guidance, strength domestically was a bigger surprise and was likely helped by higher fares and prices for travel products. Post also said Priceline.com may be benefiting from transaction-related distraction at Travelocity.com that has left continental Europe temporarily less competitive.
Piper Jaffray & Co. analyst Aaron Kessler kept an “Outperform” rating on the shares while raising his price target by $5 to $66. Kessler said Priceline.com is one of his top picks in the e-commerce sector because of its strong international growth prospects, increasing operating leverage and conservative Wall Street expectations. Kessler also believes that the company’s guidance is conservative as it assumes a marked deceleration in both domestic and international bookings despite recent momentum.
I closed the position after the 45-minutes into trading and the stock seems to find hard to breach the highest point within the period. This disturbed me very much of which I preferred to take money off the table. Unfortunately it couldn’t breach the 100% profit within 1 day.
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February 14th, 2007 by financetwitter
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