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Friday, May 09, 2008
NVDA Follow Up
I wrote a blog about NVDA's technical set up going into earnings a couple days ago. I first noted that it's not the best idea to base an earnings play on a technical formation. After stating that fact, I mentioned that there was a strong set up in NVDA, and noted that I would be willing to hold it Long through earnings based on the technical pattern.
NVDA reported last night. They reported EPS of $0.36 vs $0.38 estimates, a $0.02 miss. Revenue was in line with expectations at $1.15 billion. The company reported weaker than expected non-GAAP gross margins. This caused a nasty sell off immediately after the report was released.
The earnings conference call provided some support for NVDA. The stock managed to see some buy side interest after noting that they expect an increase in gross margins to the tune of approximately 100 basis points. The street liked that news, and bid NVDA back up to yesterday's closing price.
It now appears the stock will open pretty much where it closed yesterday. This means that the technical set up I noted on the last NVDA blog is still in tact. I intend to continue holding my calls, but I will definitely keep a close eye on action during the next few sessions. If the stock looks weak, I'll move on...
Happy Trading,
Nick Fenton
Sr. Trade Analyst
p.s. - Start a 30 day ($49.95) or 14 day ($29.95) trial to our Premium Service by calling 866-232-9872 today!!
NVDA reported last night. They reported EPS of $0.36 vs $0.38 estimates, a $0.02 miss. Revenue was in line with expectations at $1.15 billion. The company reported weaker than expected non-GAAP gross margins. This caused a nasty sell off immediately after the report was released.
The earnings conference call provided some support for NVDA. The stock managed to see some buy side interest after noting that they expect an increase in gross margins to the tune of approximately 100 basis points. The street liked that news, and bid NVDA back up to yesterday's closing price.
It now appears the stock will open pretty much where it closed yesterday. This means that the technical set up I noted on the last NVDA blog is still in tact. I intend to continue holding my calls, but I will definitely keep a close eye on action during the next few sessions. If the stock looks weak, I'll move on...
Happy Trading,
Nick Fenton
Sr. Trade Analyst
p.s. - Start a 30 day ($49.95) or 14 day ($29.95) trial to our Premium Service by calling 866-232-9872 today!!
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