GameStop Corp. (NYSE: GME) is also on deck next Thursday morning. The estimates from Thomson Reuters are $1.28 EPS and $3.45 billion, both of which would be under a year ago. Aren’t things in the economy and discretionary spending rising? Yes, just not for video games. The expectation bias here is low. The bar is set low. Any positive news out of the company would be well received. There is a risk here
even if it is not an immediate threat. The video delivery method is starting to move toward digital delivery rather than on disks. That is a longer-term issue but one to consider for the years ahead on future systems. There are many risks on that model, but it is one to consider. Still, the bar is low here. At $19.35, its 52-week range is $17.12 to $32.82 .
3Com (NASDAQ: COMS) is expected to report $0.08 on Thursday…. this is symbolic more than cause and effect. 3Com is in the pending Hewlett-Packard buyout, so this may be a formality rather than an announcement with meat. The only thing we’ll be on the lookout for is if something gets hung up further in the merger.
Palm, Inc. (NASDAQ: PALM) is going to formally report next Thursday after the close. Despite more phones being launched with more carriers, Palm’s Pixi, Pre, and Treo models just aren’t keeping up iPhones, Droids, and Blackberries. The company already issued a warning, which many felt was too late and long after the company should have been able to know. Management is probably not expecting too many friends on the conference call. At $5.55, this hardly looks bright. Thomson Reuters has estimates of -$0.42 on $316.19 million in revenues. The 52-week low was recently put in at $5.46… versus a $5.55 price today. Here was my options opinion at Optionszone.com.
As a reminder, many of these estimates are likely to see slight changes as the dates get closer.
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JON C. OGG
