We recommend that investors buy shares of Sequenom for the long term and on pullbacks.
WATCH for possible breakout above 10.01, no resistance in area just above.
Type: Continuation breakout from single resistance.
Target: 10.54, 6.9% Stop: 9.65, Loss: 2.1%, Profit/Loss ratio: 3.3 : 1 - Excellen
You believe whatever you want believe! We never talk before and it's just today news. lol
Caterpillar (CAT): Although the majority of CAT's earnings are from outside China, CAT has invested heavily in China and has seen a massive slowdown on its business there. Cat currently has 23 manufacturing facilities in China and IS building 4 more. On CAT's Q4 conference call an analyst from JPM estimated from channel checks that CAT has 1 year of year of inventory on the ground in China at today's demand levels. A fall in commodity prices and associated mining industries from a Chinese credit crisis would also severely impact Cat's bottom line. Although CAT had a strong 2012 in its resource industry segment (ex-Siwei write down), it is predicting for 2013 a $2 billion decline in sales and revenue and that "more than all of the decline in sales and revenues is expected to be in our Resource Industries segment."
Yes, the Caterpillar experience and the growing catalog of smaller instances of deception and abuse have some experts wondering if U.S. companies' Chinese results can be trusted.
Results: Adjusted Earnings Per Share increased 7.94% to $0.68 in the quarter versus EPS of $0.65 in the year-earlier quarter.
Revenue: Rose 0.37% to $1.5 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Fidelity National Information Services, Inc. reported adjusted EPS income of $0.68 per share. By that measure, the company missed the mean analyst estimate of $0.69. It missed the average revenue estimate of $1.51 billion.
Caterpillar has provided few details, but it has disclosed inventory discrepancies, inflated profits and improperly recorded costs and revenue at Siwei.
Tales of shady business practices abound in China - fake revenues, phony invoices, sham factories - but until recently, the problem seemed confined mostly to Chinese companies.
Concern is growing about risks to U.S.-based multinationals in a country where American audit regulators are locked out by the Chinese government and bribery and fraud are routine.
Questions about transparency and integrity weigh heavily on China, the world's second-largest economy, as it assumes greater economic leadership and responsibility. These doubts test its ability to adhere to international standards.
Stories of business deception - confirmed by corporate sleuths, former business executives, court filings and experts on accounting in China - are commonplace.
There was the Chinese company that billed itself as a high-tech television screen manufacturer, but had a factory that turned out to be a man selling fireworks from a shack.
Or there was the Chinese biodiesel plant that sat idle for months, then sprang to life one day - when investors showed up for a tour - only to fall silent again.
Last month, there was the scandal at a Chinese unit of Caterpillar Inc (CAT), the world's largest construction equipment manufacturer, based in Peoria, Illinois.
On January 18, Caterpillar disclosed "deliberate, multi-year, coordinated accounting misconduct" at the Siwei unit of ERA Mining Machinery. Caterpillar said it would write off most of the $654 million it had paid to acquire ERA only months earlier.
Caterpillar's Siwei stumble was not the first for a U.S. multinational in China, but the scope of the problem stood out.
News on Thursday that showed U.S. productivity fell about 2 percent during the fourth quarter. Sensitive as it is to economic catalysts, and already primed for pessimism given a recent earnings hit, investors pulled back as concerns that global economic conditions are not yet strong enough to warrant a recovery in the company’s performance.
See mid $50'S SOON.