WED. AUG. 20 THOUGHTS

11.2 million. That is a pretty big number. It could be the population of a major city. It could be the amount of fans who attend professional sporting events in the New York City area annually. But, no. What we are talking about here is the inflation rate of Zimbabwe. That is correct. The annualized inflation rate in Zimbabwe is 11.2 million percent as disclosed by the country’s Central Statistics Office. Thus, if you lived in Zimbabwe and your net worth a year ago today was $11.2 million, your entire wealth was effectively wiped away. This type of inflation is ostensibly unprecedented in modern times. Inflation is also a problem in many non third world countries as well. The Producer Price Index registered one of its highest readings yesterday; ostensibly, inflation is 9.7% at the producer level in the United States. This is an alarmingly high number. Interestingly, the Consumer Price Index showed a 6.5% rate of inflation at the consumer level not long ago. What this means is that producers are not passing down all their costs to consumers- or at least they have not done so thus far. It also portends that earnings growth for American corporations may well fall short of expectations over the next earnings season. This is something to watch for over the next few weeks as select companies begin to warn because it will create select opportunities for day traders.

Overnight, markets throughout the world were higher. Strength in techs should be prevalent on the heels of the HPQ numbers. It will be tech vs financials today.

Reiterating-New code for the next few days if the whole story is not there due to an expansive number of ideas-
If something is good, assume either a short thru unchanged or an A-B-A2 based on direction of the market unless specifiedIf something is bad, assume either a buy thru unchanged or an A-B-A2 based on direction of the market unless specified

Good-

STP- good earnings

USEG- announced major licensing deal

HPQ- great earnings

PAY- pre-announced phenomenally good earnings

MENT- good earnings

BJ- good earnings, but guidance a little iffy; if it opens higher, short thru unch even if it is pre-open

OTEX- good earnings

Bad-

LEH, JPM – among others, downgraded by JP Morgan

Airlines- down with oil bouncing

ADI- bad earnings

NVTL- atrocious earnings

JKHY- bad earnings

ARAY- bad earnings

EJ- bad earnings

WED AUG 20 BEF

BJ .57/2.64B .38/2.37B 2.14/10.01B 2.35/10.73B

EJ .14/41M .21/59M .80/208M 1.09/276M

EV .47/285M .48/290M 1.85/1.14B 2.17/1.26B

LDG .76/1.35B .62/1.32B 3.06/5.53B 3.44/5.82B

MENT -.12/175M .20/216M 1.01/899M 1.26/953M

ROST .54/1.61B .43/1.59B 2.35/6.57B 2.62/7.06B

STP .31/439M .41/543M 1.58/2.06B 2.57/3.07B


WED AUG 20 AFT

BYI .53/244M .47/228M 1.83/898M 2.32/1.01B

CRM .08/261M .09/273M .35/1.07B .67/1.41B

GYMB .24/204M 1.04/280M 3.19/1.04B 3.54/1.15B

JDSU .10/396M .13/400M .54/1.54B .75/1.70B

LTD .20/2.30B .04/1.99B 1.48/9.70B 1.71/10.18B

PVH .65/581M 1.21/751M 3.36/2.59B 3.81/2.76B

SMTC .23/78M .26/81M .97/317M 1.13/348M

SNPS .39/340M .40/354M 1.63/1.33B 1.90/1.47B



Good luck today.

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