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HI Financial Services Mid-Week 07-22-2014

HI Financial Services Mid-Week 07-22-2014

http://www.investopedia.com/ask/answers/149.asp

What’s the difference between bottom-line and top-line growth?

By Investopedia Staff A A A

Related Searches: Accounting TermsAccounting TerminologyIncome Statement ExampleSample Income StatementsIncome Statement Template

A company’s bottom line is its net income, or the “bottom” figure on a company’s income statement.

More specifically, the bottom line is a company’s income after all expenseshave been deducted from revenues. These expenses include interest charges paid on loans, general and administrative costs and income taxes. A company’s bottom line can also be referred to as net earnings or net profits.

The top line refers to a company’s gross sales or revenues. Therefore, when people comment on a company’s “top-line growth”, they are making reference to an increase in gross sales or revenues.

For example, a company would be experiencing top-line growth if a new advertising campaign caused a 15% increase in sales for its widgets, which resulted in an increase of $2 million to the revenue. Bottom-line growth would occur in a situation where a company found a new supplier for raw materials that results in a cost savings of $4 million.

Both these figures are useful in determining the financial strength of a company, but they are not interchangeable. Bottom line describes how efficient a company is with its spending and operating costs and how effectively it has been controlling total costs. Top line, on the other hand, only indicates how effective a company is at generating sales and does not take into consideration operating efficiencies which could have a dramatic impact on the bottom line.

However, this is not to say that a company cannot experience both top-line and bottom-line growth at the same time. This can be achieved if a company earns more revenue (top line) and reduces its operating costs (bottom line).

 

What has been happening so far this week?

   Earnings season with many “bell-weather” stocks reporting.  I can tell you non–directional and collars are the best way to play earnings.    Geo-political tensions in Israel and Ukraine are being ignored.        

 

Where will our market end this week?

          This week I am not going to guess because it is all earnings driven and I’m not sure what the market is truly looking for.  I know better than expected earnings on top-line will move the markets higher and guidance is very important for next quarter.

 

DJIA–  Higher highs and higher lows within a bullish “pretty narrow” channel.  Testing 17,000 as resistance last month and support this month.  The DOW is acting just like it should right now.

 

Screen Shot 07-22-14 at 04.10 PM

SPX – Looks like it is building a base off 1960. 

  Screen Shot 07-22-14 at 04.11 PM

COMP – higher lows but not higher highs. Triple Bottom at 4350

Screen Shot 07-22-14 at 04.12 PM

Where Will the SPX end July 2014?

07-22-2014

I am standing by my monthly prediction of up 1% for the month.

 

07-15-2014

We are still testing 17,000 so I am standing by my expectation on July 1st.

 

07-08-2014 

I think we are going to test the 2000 on the SPX and test 17,000 on the DJIA.  We might be slightly higher but I would say a 1% up month. 

 

07-01-2014

My guess is 2000 on SPX, 17,100 on the DJIA and 4500 on the COMP

 

What is on tap for the rest of the week?=

Earnings:

Tues:          MO, CROX, DFS, HOG, ISRG, KMB, LMT, MCD, KO, MSFT, BTU, VMW, AAPL

Wed:          T, BA, DAL, FFIV, FCX, KNX, PEP, QCOM, RSF, CAKE, TRIP, WHR, FB

Thur:         MMM, ALK, AMGN, CAB, UA, CAT, DPS, DNKN, GM, GRUB, HSY, IM, JBLU, NBL, RTN, QLEC, LUV, BIDU, F, SBUX, V,

Fri:             SWK, XRX

  

Econ Reports

Tues:  CPI, Core CPI, FHFA Housing Price Index, Existing Home Sales

Wed:  MBA,

Thur: Initial Claims, Continuing Claims, New Home Sales  

Fri:     Durable Goods, Durable ex-trans

 

Int’l:

Tues –   Jp: All Industry Index

Wed –   FR: Business Climate, GB: BOE Minutes, EMU: EC Consumer Confidence Flash, JP: Merchandise Trade, PMI Manu, CN: PMI Flash Mfg Index

Thurs – EMU:FR:DE: PMI Composite  

Friday – EMU: MS Money Supply

Sunday –  

 

How I am looking to trade?

I am in Collar Trades and/or Protective Puts for earnings. 

 

That means you need to build you earnings list

AAPL         7/22 AMC

BIDU          7/24 AMC

BBY           8/26 BMO

CLDX        8/6  AMC

D                7/30  BMO

DIS             8/5 AMC

F                 7/24 BMO

FB              7/23 AMC

LNCO        8/7 BMO

MEI            8/28 est

MS             7/17 BMO

MU             10/09

NVDA        8/7 est

SBUX         7/24 AMC

SNDK        7/16 AMC

SLB            7/17 AMC

TSLA         7/31 AMC

V                7/24 AMC

VZ              7/22 BMO

ZION         7/21 AMC

 

AAPL – I’m ready on AAPL but I can add some shares.  Not sure if I want to do that before or after earnings. 

BIDU – Already 100% plus return

 Screen Shot 07-22-14 at 04.05 PM

DIS – Just sitting in shares and with the movie Frozen revenue, summer park revenue, I plan on protecting with OTM Long puts at maybe $85

 Screen Shot 07-22-14 at 04.09 PM

V – Have OTM Aug 215 long puts to run thru earnings

Screen Shot 07-22-14 at 04.09 PM 001 

F – Protecting profits and I’m not sure if they will  have good earnings based on monthly channel check and auto reports

 Screen Shot 07-22-14 at 04.08 PM

NVDA – Have previous earning puts still on that ecpire on Friday and Have Sept long puts in place for earnings

  Screen Shot 07-22-14 at 04.08 PM 001

Questions???

 

Blogsite down until Monday.  GoDaddy stopped using blogspot so I am transferring everything to word press

 

 

www.myhurleyinvestment.com = Blogsite

customerservice@hurleyinvestments.com = Email

 

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Money Managers Aren’t Ready for a Bear Market

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Bubble Paranoia Setting In as S&P 500 Surge Stirs Angst

http://www.bloomberg.com/news/2014-07-16/bubble-paranoia-setting-in-as-s-p-500-surge-stirs-angst.html

 

Why We’ll Be a Bit Distracted Until Monday Arrives: Opening Line

http://bloom.bg/UeU86W

 

China’s debt soars to 250% of GDP

http://www.cnbc.com/id/101854344

 

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