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IBDvalueinvestin (99.64)

A Failed Rally, was expecting DJIA to be up 200-300 points on Jobs data.

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December 04, 2009 – Comments (7)

The DJIA fell 100+ points yesterday before the close , so basically right now we are flat with yesterday. Thats a failed rally because the jobs data should have caused a 200-300 point move in the DJIA today.

7 Comments – Post Your Own

#1) On December 04, 2009 at 10:51 AM, lemoneater (79.38) wrote:

Sometimes there is a big move in the afternoon, so I wouldn't call it failed yet.

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#2) On December 04, 2009 at 10:55 AM, neskolf (29.94) wrote:

Also it's worth consdering that, without the job data announcement, the market may have continued on the downward trend started yesterday.  Failed rally?  Might turn out to be.  But I wouldn't call it such just yet.

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#3) On December 04, 2009 at 10:58 AM, cbwang888 (25.91) wrote:

USD is up 1%  so market is up 1% + 1% = 2% if valued by bucket of currencies. It is up 3.5% if measured by gold.

 

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#4) On December 04, 2009 at 11:10 AM, jason2713 (< 20) wrote:

yeah i expect the market to go back down as the dollar strengthens.

There is a huge correction going on, no idea why, but I just bought into gold today.  I don't expect the dollar strength to hold.

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#5) On December 04, 2009 at 11:13 AM, IBDvalueinvestin (99.64) wrote:

Well TSTC is down -0.73 on a rally mode day? This stock guided that it will earn roughly .80 eps in current qtr  based on my calcs of $70M for 2009 Sales and its not even close to $20 yet.

 

-- TSTC Third quarter 2009 revenues increased 124.7% to $18.9 million
year-over-year; gross margins were 52.7%

-- TSTC Third quarter 2009 net income increased 281.8 % to $4.2 million
year-over-year with net margins of 22.3%; EPS was $0.41 vs. $0.11
year-over-year

-- TSTC For the nine months ended September 30, 2009, revenues increased 86.1% to $38.9 million year-over-year; net income increased 96.8% to $7.4 million year-over-year; EPS was $0.71 versus $0.36 year-over-year

-- TSTC WFDS(TM) product represents about 20% of third quarter revenues

-- TSTC Accounts receivable decreased 19.6% to $59.2 million for the third quarter ended September 30, 2009, compared to $70.8 million for the second quarter ended June 30, 2009

-- TSTC Telestone reaffirms guidance of $70.0 million in revenues for 2009 based on strong order bookings for the balance of the year.

 

TSTC on 3G upgrade in CHINA

TSTC posted .41 eps last week on 3G upgrades.

Keep this in the back of your mind:
"Just one Chinese telecom alone will spend $4B in 3G upgrades in 2010."

Should easily boost TSTC well into 2011. Report this comment
#6) On December 04, 2009 at 11:17 AM, starbucks4ever (98.98) wrote:

Good news have only a limited impact at this point in time because they make speculators worry about an interest rate hike from 0% to 0.25%. Unsubstantiated of course, but you must understand the market psychology. If my entire fortune depended on cheap liquidity from the Fed, I would also be worried.

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#7) On December 04, 2009 at 11:46 AM, ChrisGraley (30.25) wrote:

Investors realize that the jobs number is fake.

I'm not sure how it was faked, but I'm betting they did something like not adjusting for temporary seasonal employment.

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