Submitted By Optiondragon
Yoda the Master Trader and Dancing Machine: Let the Force Be with You
In this coming week, we still have a slate of earnings news and also important economic data, down below I have my favorite, expected volatile earnings plays and scheduled earnings of note as well as scheduled economic data with expected numbers. If you find my articles helpful and entertaining please visit and support our website at www.wangshappytrading.com and subscribe to our FREE email subscription.
I will try to keep it short and sweet.
Auspicious Autozone (AZO)
AZO is expected to announce earnings on Tuesday before the bell. AZO is expected to bring in $1.62 EPS and $1.35 billion in revenues. They have beaten 2 out of the last 4 earnings, missed one and met one. AZO is run by a smart management team and is owned by Eddie Lampert’s hedge fund ESL Investments. AZO has shown historic volatility after earnings and this week should be no exception. Last time they reported on Dec. 4th, the stock surged from a closing price of $107 to $130 the next day with a sustained run during intraday trading of $13. AutoZone operates as a specialty retailer and distributor of automotive replacement parts and accessories. There is a thesis that with the recent softness in the economy and credit crunch, people are foregoing buying new autos and putting more effort into spiffing, maintaining and fixing the ones they have. AZO has a high target of $150 and a low target of $99 by analysts.
I expect volatility after the numbers, I do expect them to beat but also raise guidance for the year. You can strangle going into the numbers but you can also wait for after, as it has shown through past historical technicals that it moves volatile after the numbers too. On Feb. 12, Kevin Dann reported that he believes the rebate checks could have a positive impact on the automotive aftermarket retailers as the timing of the checks comes ahead of the important summer driving season. They believe AutoZone (AZO) and Pep Boys (PBY) may be the biggest winners.
Cool CTrip.com (CTRP)
CTRP announces earnings on Wednesday after the bell. They are expected to bring in $0.21 EPS and revenues of $46.01 million with high estimates at $48.18 million. The recent Chinese snowstrom could impact CTRP’s numbers in the short term but that is not a fundamental problem but a short term anomaly.
