Wednesday, August 8, 2007

FWLT swings and misses, but Nasdaq being green

I passed on FWLT. A good pass. Being lights-out asleep through pre-market didn't hurt. Didn't get in, didn't know until later that Foster Wheeler missed estimates due to a big one-time transaction.

FWLT wasn't horribly punished as investors absorbed the data and gave the Co beneift of the doubt. Trading at $101 now after briefly dipping to $99.51. My watch list of nearly 30 stocks is almost all green with the Nasdaq up 1.6% (42 points). I did something different this morning, watching the list based on the losers for the day at the top. Why? Bargain hunting.

I won't be shopping for FWLT anytime soon, not when Amazon continues to consolidate in the high 70s and Apple keeps churing at 134. I regret not getting more Nintendo in the mid-50s; it's now trading above 60.

Yingli Green Energy, which I shunned as the market punished alternative energy last week, has rallied again. After dipping into the 14s last week, YGE is trading up 7.7% today to $16.62. The sector has rebounded with the market. Even First Solar is up to $109.

But the stock that grips me right now is Blue Nile (NILE). It sold off at the open following yesterday's remarkable gain. NILE sat at 92-93 for a little while, then zoomed up as stocks with an 11-million share float do. Now trading above $96, well above its moving averages.

It's tough to watch with discipline. Garmin had a similar earnings boost and upward guidance, and the stock never sold off with conviction. Same could happen with NILE.

Another tough pass is CEO, which was a buy at $112, but zoomed to $117 this morning on only 16,700 shares traded.

Yet, the real buy, if any, is Apple, which is well within its moving averages at $134.

The easy pass is LULU, which is up 4.2% to $37.78. Just don't trust those brand-new IPOs. It might take another few weeks, but I'd rather have LULU at $25.

Pupule Paul is long AAPL and NTDOY.PK.

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