Varchild *Rates* his Stocks prior to Earnings (ATVI) (DPS) (MSM) (FLIR)
1) ATVI: Varchild Raises his "HOLD" recommendation to "BUY" but with a caveat that one should get in below $13.00. The reason for the sudden optimism is due to Transformers Video Game looking better than expected with Video Game Critics and User Reviews. I thought this one would TANK and create a horrid "earnings outlook" underneath the high expectations investors have in pushing the stock above $13.00 a share.
Varchild raises price target from $14.00 to $15.00 by January 2010.
2) DPS: Varchild lowers "STRONG BUY" rating to "BUY" based on continued weakness in Snapple/Venom Beverages. This does not mean anything in the scheme of things cause the share price is at a level right now that is undervaluing the company by a Mile and a Half.
Nonetheless, I'd like to see the Q2 earnings and hear from the C.E.O. what he thinks the trends will be for the rest of this year...before I get all Bullish and Crazy again. VENOM got its price cut by 50 cents at local Gas Stations in Detroit Michigan....Varchild strongly believes the big SuperStar advertisement for VENOM is going to be for Naught. People won't abandon their Redbull and Monster for Venom cause Lance Berkman likes it.
3) FLIR: Varchild Keeps "Strong Buy" rating as long as the share price is at or below $23.00.
4) MSM: Varchild lowers "STRONG BUY" rating to "STRONG SELL" opinion which is shared with ZACKS.
Problem with MSM is that it was a Strong Buy at $30 (where I personally got into the Stock) and a Strong Sell at $40.00. Since then it has crashed down big time... 7 pts.
I'd be all Bullish....willing to increase my Stake in MSM.... If it weren't for the horrible, recent, report that the Manufacturing sector of the economy contracted in May. It trades at $34.XX or so.. I fear that's about another 7 pts. too high for this one but I anticipate the Earnings Report in hopes that I am provin wrong!
Is ZACKS and VARCHILD wrong to believe that buying shares of MSM at its current price is a fool's purchase? We shall know July 2nd. As for whether Varchild will unload his MSM stake.... No way, no how.... I love the 20 cents a share dividend. That dividend looks safe...for now.