Relatively speaking, I thought the earnings release from Ingersoll Rand was okay, but the market is spooked by the lower forecast for 2009 to an EPS of $3.35 to 3.55 per share from the analysts' estimate of $3.58. Ingersoll Rand Announces 2008 Third-Quarter Earnings of $0.72 per Share from Continuing Operations; $0.99 per Share Excluding One-Time Items: Financial News - Yahoo! Finance I would expect that the lowered estimate might be hard to reach next year at the lower end. So what? The stock has already fallen from around 55 in October 2007 to less than 17 today, so some might say that is more than enough adjustment for a tough year to come. Others will disagree and continue to sell into weakness. In any event, the stock price has given up more than a decade of gains, with the current level last visited in 1997.
I was fortunate that no orders filled yesterday. I noticed that some Trust Certificates are under selling pressure today and I may change my strategy for today based on an opportunity arising in that area. Being an old man, I feel more secure with a senior investment grade bond yielding over 16% than with a common stock yielding five per cent with chaos running amok.
All of my recent common stock buys are under water but they are small positions, still building slowly in all of them to 100 shares. Late today, I may bring Intel up to 100 shares or add a tad to Valero. Gannett is another one that has already been beaten into a pulp prior to today. Gannett's earnings, while down of course, were not terrible. It is now trading down almost 9% to 8.8. Yahoo! Finance MarketWatch I said that this was a controversial selection but I will add to it for the reasons mentioned in my prior post. OLD GAMER HATCHES A PLAN AROUND 1 P.M TODAY
If this decline accelerates, I will go into a cocoon until the VIX falls to below 20. Today, it is currently up around 17% to over 79, a fear index that now generates fear and anxiety just looking at it. ^VIX: Summary for CBOE VOLATILITY INDEX - Yahoo! Finance