DE – Driving by LNN Earnings

After yesterday’s sell off in DE, the stock is reaching new highs on the back of strong quarterly financial results out of LNN.  For LNN, earnings per share came it at $1.15 vs a $0.75 expectation.  At their press conference, Lindsay expects that positive farmer sentiment, farm incomes and commodity prices affected by dry weather prevailing in the U.S. will positively impact the company in fiscal 2013. Lindsay expects long-term demand to remain high, driven by increased food production and efficient water use.  This is all good news for DE as they share much of the same market.

Granted, the trade on DE has nothing to do with its fundamental and is, and has been from the beginning, a technical ride.  The stock bounced off the 7 day moving average nicely yesterday and is pushing back into the upper bollinger band giving all indications that the stock has more room to run.  I am still looking for DE to break into the 90’s.

My other 2 trades, AAPL and SPY.  APPL continues to sit and spin.  New reports today that iphone sales may not meet expectations are causing the stock to drag.  I will be very curious to see if the stock can find some footing during the day today.  If not, i may just take my money and put it into SPY.  I currently have a SPY call position that was entered yesterday.  The options are up about 20% this morning but I expect to see more.  I know many of the TV folks are cautious or bearish but the technicals on the market point to a significant chance that the market tries to set an all time high sooner than later.

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Posted on January 9, 2013, in Jeffs 3k-100k. Bookmark the permalink. Leave a comment.

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