Wednesday, March 23, 2011

Indices closed green....NICE !!!!

Indices closed green....

Dow closed well above 50 DMA....

S&P 500 only 6.78 points away from 50 DMA...Nasdaq only 44.17 points away from 50 DMA...

Internals of the market were positive...

AH ER MU was a beat, stock UP 3.77%

AH ER RHT was a beat, stock UP 10.58%

Tomorrow AH RIMM reports, which is "universally hated" & has been left for dead......

I am expecting RIMM to offer UPBEAT GUIDANCE to the "surprise of many Hedge Funds & millions of shorts".....IF that happens....then expect the "biggest short squeeze" of this earning season.......Options are pricing a move of 9% + or -...i am betting that it is on the + side....

Let us look @ raw numbers of RIMM for ER AH :

Sales for Q4 which ends in Feb 2011, expectations are $5.63 Billion ..increase of 38.10% YOY

EPS for Q4 expectations are $1.75 per share...increase of 37.80% YOY

IF you listen to all the "bears" you would think RIMM is growing like CSCO in single digits ???

Expectations for Q1 Sales are $5.64 Billion..increase of 33.10%

Expectations for Q1 EPS $1.65..increase of 19.57%

RIMM Sales for FY ending in Feb 2011 expected to be $19.97 Billion with EPS of $6.33

RIMM Sales for FY ending in Feb 2012 expected to be $23.98 Billion with EPS of $6.77....

SO.... in AH CC RIMM should be able to guide better than expectations for Q1 of this year.....

Based on Today's close of $62.12...RIMM is trading @ current PE of 9.18......which is way low for a company which "finally" may be getting its act together........

RIMM 50 DMA is $63.91 & its current RSI is 44.68........

AH Futures Mixed

AH Asian Markets UP

AH Oil & Gold Down

BLOG does NOT give buy or sell.

Saleem

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