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Expected Earnings and China Internet Stocks Draw Interest

Brian Bolan

We have a slate of big reports after the close, and none of them are bigger than the big red fruit itself Apple (AAPL).  There is going to be a lot of focus on that cash situation and if management is going to bend to Uncle Carl and initiate a big buyback of stock.  Investors will also be looking for good guidance and an early look at how the iPhone 5C is selling.

There were reports of AAPL slowing its production of the 5C shortly after its launch, but also keep in mind that on launch day there were massive lines for the new colorful phone.  Are you worried about the 5C and its guidance or are you focused in to another aspect of the earnings report?

Speaking of Uncle Carl, and I am referring to Carl Icahn, he has another holding reporting after the bell tonight.  Herbalife (HLF) is slated to report and beat earnings.  I say they are expected to beat earnings because the company has not missed an earnings report in about five years.  Guidance last quarter was pretty soft so most of Wall Street is looking for solid numbers.

If you are in HLF - and in the idea of full disclosure, I am in the name and it is the only stock I hold - are you looking for more transparency on when the company will get a clean auditor from its new accounting firm?  Or are you most interested in the short squeeze that still looks to be very much on despite Bill Ackman covering 40% of his reported $1B short he initiated in December of 2012.

Finally, a lot of Chinese internet stocks are feeling some pain this morning after Sohu.com (SOHU) beat earnings and delivered some really bad guidance.  That stock is down about 15% as I write this and its dragging other stocks lower as well.

The SOHU blow up comes after the NQ Mobile (NQ) debacle of the other week.  That stock dropped around 60% following a short report from Muddy Waters.  They claim the company is a fraud and worth less than $1.  That also impacted several China related stocks.

So what is idea of these is drawing your interest today?  AAPL, HLF, China or is there something more important that is on your radar?

Chime in below and let us know what you think!

Read the analyst report on HLF

Read the analyst report on AAPL

Read the analyst report on NQ

Read the analyst report on SOHU

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