Check out Texas Instruments earnings release--there is just one line that people need to know:
"As it will likely take some time before the economy strengthens, we have aligned our operations and expenses to be consistent with the weak environment. As a result, we are seeing healthy trends in our profitability."
Today they sold some of the banks. Tomorrow they'll buy them. Today's selling meant nothing.
Tomorrow they'll probably hit TXN early, but I doubt it will stay down. Stocks are treated just like commodities, and they'll treat TXN, as they did a true commodity stock, AA, because investors are getting drunk on higher prices.
When Alcoa reported, the stock sold off, and "everyone" acted as though that meant something. Now the stock is nicely higher, so what did the sell the news mean?
Nothing.
It's the same with TXN.
Any selling tomorrow just means "they" will buy it the next day.
No comments:
Post a Comment