Wednesday, May 09, 2007


I have been absolutely swamped at work lately. Hopefully, the load lets up soon.

Speaking of swamps, the trading portfolio sinks a bit today due to CompuCredit (CCRT), which shed over 9% today following a large miss in their managed earnings. Reuters confirmed that their -0.19 EPS is comparable to the consensus estimates of +0.21 EPS. Management over at CCRT claims to be comfortable with their previous full year guidance of $4.00 in EPS.

Wachovia downgraded the stock to an underperform citing uncertainty in the company's growth plan. Rochdale Securities, on the other hand, reiterated their Buy rating. Personally, I'm in a holding pattern. I'm not comfortable adding to this one, but I'm willing to ride this out. If they do achieve their full-year earnings targets, then this stock really should be trading higher.

For those that want to do some research and are interested in the global mobile handset space... check out Qiao Xing Mobile (QXM). It IPO'ed very recently at $12, and now trades below that. They have sizeable revenues and what looks to be decent earnings. Anyone want to take a look? They are focused primarily on the mobile handset market in China.


gaamblor said...

i read this article:

they plan to grow market share without competing on price? in a highly competitive market...

and then he talks about expanding into 4 other countries, i'm sure that will be easy.

i don't see much reason to get involved unless you know something about them to expect good things

i'm a little worried about CCRTs management of expectations with big back to back misses but smarter people than me seem to still be on board so i guess i'll stay there too

Never-Limp said...

I guess CCRT needs a worse macro environment so that people won't be able to pay their bills on time or stay under their credit limit (thus earning the company fee income). This is a very hard business/industry in which to try and estimate earnings. I thought that there was plenty of cushion in current estimates, but that $0.40 hit per share in the first quarter doesn't leave them much room now. Thank goodness for that excess liquidity or earnings would look really bad.

Brute Force said...

I'm certainly distrustful of the management at this point. The back-to-back misses that you mention don't sit too well with me. My position isn't too large, and I'm willing to wait this out for a little more. But, if no progress is made at the next checkpoint, I'll probably bail.