Wednesday, October 25, 2006

Poor Form and Breaking Up

Well, I'm sitting here waiting for an installation of Windows CE 5.0 SDK to complete. But, it sure is taking forever. So, I guess now is as good time a time as any other to talk a bit about some recent happenings related to the long-term portfolio.

Today, Altria (MO) announced its earnings. It was a mixed bag really... they missed analsyts' earnings estimates, but they came in well above the concensus in the revenue department. They also guided their next quarter's numbers higher, which is always nice to hear. But, I think the biggest announcement today was that the company has set a date for finalizing breaking-up with Kraft. Everyone's been waiting a long time for this, and now it's finally going to happen. So save the date... January 31, 2007.

Form Factor (FORM) announced its earnings today, and it wasn't so hot. The earnings were in-line with expectations, and their revenues topped estimates. Unfortunately, they guided lower on next quarter's revenues, while guiding higher on earnings. The stock got clobbered as a result.

I am not sure exactly what to make of it, but it might be a buying opportunity. In fact, I put in an order to do some afterhours purchasing at 37.50, but my order hasn't filled with 25 minutes left in the extended session. If it moves to 37.50 or lower this week, I will be adding to my existing position.

All things considered, today was a great day for the portfolio. The long-term portfolio managed to advance well ahead of the market averages in spite of the FORM sell-off. Hoping to see some more good things... until next time, take it easy.

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