GENZ trade + chart + entry price and about a half dozen different exit prices, + a good overview on the entire XLV debacle—copy the link into an address bar–to get there.
=
http://tradinggoddess.blogspot.com/2009/03/zstock7s-weekly-picks.html
==
==
AMGN, I’ll wait for $46 and then pile in—
AMGN 3-1 healthcare category
Yesterday, I had to CUT DTE entry price by 10%, because the EPS was cut by 10%.
DTE entry cut to 24.5 – 25.5 from 28
On Feb 14th DD eps was 2.03 for 09 and 2.32 for 10, and today I looked it up again, keep in mind this is a mere two weeks later, and the EPS has been slashed to 0.61 for 09 and 0.81 for 10
DD’s EPS going from 2.03 down to 0.61 in a two week period–I’ve never seen anything like this, in 5 years of studying EPS.
CAT EPS did the same thing.2.18/2.42–09/10— –30 days ago–4.30/3.77–09*/10 The latest reports say CAT can maintain the 2.18 outlook, if there isn’t a price war from other competitors.
Anyway, my point is, in the manufacturing sector, the EPS estimates are falling –on a weekly basis–
Now the healthcare sector, the same thing is happening, because of the NEW gov’t healthcare allocations—
If you think I can possibly calculate a proper entry price in this type of EPS catastrophic destruction period, well I can’t—
Therefore, If I find a chart to post this weekend, I’ll post it—
But it’s taking a lot longer per chart, because of all the triple checking on EPS.
As An example–CAT EPS is so catastrophic–that today’s close of $24.61–that potentially could be it’s yearly high–At 12.5X earnings, the 2009–target price is 27.25, and that’s if there isn’t a price war for heavy equipment.
Here’s LMT, and as long as the analysts don’t reduce the eps another 10% next week–LMT should hold at $60–I can’t in anyway guarantee this entry price–because the EPS may be lowered from 7.05 this week, to 6.30 next week–and 5.67 the week after that—
Now do you get it!!! I’m calling it EPS catastrophic destruction—and it’s happening on a weekly basis
LMT 2-27 in the XLI sector
