-0.69%
-0.80%
I don’t know about you but I have a massive Google (GOOG) hangover. The company missed expectations and the stock got taken down about 9% after hours. How it trades today is really a guess. I suspect that we get panic sellers and long call buyers hit the exit button early on. Then we will get some short covering, followed by deeper value / growth managers stepping up to pick up the pieces.
Today’s earnings calls of interest are General Electric (GE) and Schlumberger (SLB). I am a long term holder of SLB. The oil & gas services company is expected to increase earnings per share by 27% in 2011 and 33% in 2012. The stock sells at 20 times trailing earnings and 15 times forward earnings which I consider cheap. This is a best-in-class company within the sector. I will be keenly focused on the company’s contract guidance.
The S&P 500 (SPX) has tacked on 4.52% this year including nearly 2% in this holiday shortened week. Options expiration takes place on the open for the index and at the close for single stocks. We have decisively broken through the 1,300 strikes. Yet, the market needs a respite. Whether that comes today or next week is uncertain. When it does come, embrace it. I am looking to raise some more cash in the coming days.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView Asset Management, LLC was long SLB and GOOG stock and long and short GOOG calls — although positions can change at any time.
Scott Rothbort is also the publisher of the LakeView Restaurant & Food Chain Report, a newsletter focusing in on food, restaurant and agricultural stocks. You can subscribe at www.restaurantstox.com
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