AOL in a Moon-shot While Tesla Stalls in the Woodshed

TheStreet.com

NEW YORK (TheStreet) -- Earnings volatility continued this week as the old-Internet pioneer AOL took off in a moon-shot after its earnings beat expectations premarket on Tuesday. Then in afterhours trading the luxury electric automobile manufacturer Tesla Motors reported an earnings beat, but the stock took a turn to the woodshed on a miss of what's was called analysts' whisper numbers.

On Monday I wrote Earnings From AOL to Zillow Includes Tesla Today and Tomorrow where I showed four buy rated stocks out of 11 including AOL. This morning AOL and one other stock were downgraded to hold from buy. Tesla maintained a hold rating according to www.ValuEngine.com.

Today's Earnings Scorecard

AOL ($43.12) beat EPS estimates by 9 cents earning 45 cents premarket on Tuesday. The stock began the week penetrating and holding my weekly risky level at $37.56 trading as high as $43.82 on Wednesday and on this strength AOL was downgraded to hold from buy. My monthly value level is $35.34 with a quarterly risky level at $48.25.

Anadarko Petroleum ($92.02) missed EPS estimates by 5 cents earning $1.13 in afterhours trading on Monday. The hold rated oil and gas exploration company opened lower on Tuesday and moved below its 50-day simple moving average at $94.31 to a low of $91.51 vs. my annual value level at $89.73 and the 200-day SMA at $88.11. My annual value level is $89.73 with an annual pivot at $92.05 and a quarterly risky level at $97.94, which was tested at the Oct. 30 high.

CVS Caremark ($63.87) beat EPS estimates by 7 cents earning $1.09 premarket on Tuesday. The buy rated pharmacy stock traded up to a new multi-year high at $64.44 that day. My semiannual value level is $53.49 with a weekly pivot at $61.43 and a quarterly risky level at $67.47.

Fossil ($128.46) beat EPS estimates by 20 cents earning $1.58 premarket on Tuesday. The buy rated retailer of watches, jewelry and leather goods set a new multi-year high at $134.99 on Wednesday then fell to $126.42. My semiannual value level is $123.93 with a weekly pivot at $131.16 and semiannual risky level at $134.16, which was tested at the high.

Leapfrog ($7.73) beat EPS estimates by 6 cents earning 38 cents a share in afterhours trading on Monday. The hold rated maker of tech-based educational toys for children traded as low as $7.62 on Wednesday. My semiannual risky level is $8.57.

Mosaic ($46.35) missed EPS estimates by 5 cents earning 51 cents in the premarket on Tuesday. The hold rated fertilizer company has a monthly value level at $42.19 with a weekly risky level at $49.06.

Marathon Oil ($36.45) beat EPS estimates by 9 cents earning 87 cents a share in afterhours trading on Monday. The hold rated integrated oil and gas company has a weekly value at $34.85 with a monthly pivot at $35.73 and semiannual risky level at $38.02.

OpenTable ($79.92) beat EPS estimates by 8 cents earning 37 cents a share in afterhours trading on Tuesday. The stock had a moon-shot to $82.87 on Wednesday. The buy rated Internet based restaurant reservation service has been downgraded to hold this morning. My semiannual value level is $69.33 and a monthly pivot at $76.88.

Tidewater ($62.01) beat EPS estimates by 29 cents earning $1.15 a share in afterhours trading on Monday. The sell rated operator of fleets that serves the offshore energy industry traded as high as $63.19 on Tuesday. My semiannual value level is $56.82 with an annual pivot at $59.59 and annual risky level at $63.31.

Tesla Motors ($151.16) reported a loss of 5 cents a share in afterhours trading on Tuesday. The hold rated designer of luxury electric vehicles gapped below its 50-day SMA at $176.25 at the open on Wednesday and traded as low as $148.32 on the way to the earnings woodshed. My quarterly value level is $129.44 with a weekly risky level at $183.45 vs. Tuesday's high at $181.43.

Zillow ($78.81) beat EPS estimates by 7 cents reporting a loss of 11 cents a share. The hold rated real estate information website zoomed to its 50-day SMA at $87.68 then fell to $77.20. My weekly value level is $75.01 with a monthly risky level at $99.23.

Three Stocks We Did Not Profile Reported Monday.

Sysco ($33.66) beat EPS estimates by 8 cents earning 56 cents premarket on Monday. The buy rated distributor of food and food related products traded up to $34.74 then came back down to $33.30 on Wednesday and closed above its 200-day SMA at $33.49. My weekly value level is $32.76 with a monthly risky level at $34.74, which was tested at the reaction high.

TravelCenters ($9.63) beat EPS estimates by 12 cents earning 56 cents a share premarket on Monday. The buy rated national chain of service centers that operate along the interstate highway system and caters to truckers has been downgraded to hold on strength to $10.24 on Tuesday. This is the stock that I wrote about a few times saying that it was a proxy for the extremely overvalued transportation sector as it traded down to $7.35 back on Aug. 27. The stock is now above its 200-day SMA at $9.22 so the reversion to the mean works in both directions. My weekly value level is $7.85 with a semiannual pivot at $9.32 and quarterly risky level at $10.24, which was tested at the high. This is a clear example of how my buy-and-trade strategy works.

Vulcan Materials ($56.18) beat EPS estimates by 7 cents earning 32 cents a share premarket on Monday. The sell rated producer of construction aggregates traded up to $60.14 on Monday then fell to a low of $55.87 on Wednesday. My semiannual value level is $47.42 with a weekly pivot at $56.92 and quarterly and annual risky levels at $66.86 and $66.89.

At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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