That was quite a show Maguire Properties (NYSE:MPG) put on yesterday after it reported 4th quarter earnings. It opened down, around $2.50 a share, and then marched steadily higher for the rest of the day to close at $3.54.
Maguire’s cash reserves are rising after it walked away from a few underwater properties and sold a couple others. Investors seem to be saying the stock is on more solid ground now – volume was monstrous.
While I’d love for Daily Profit readers to have participated in yesterday’s gains, I stand by my recommendation to take your profits on the stock before earnings. Earnings are a big uncertainty. Maguire could just as easily have dropped yesterday. There’s always risk when investing, and perhaps more so with a stock like Maguire. It would have been irresponsible of me not to have you take profits before earnings.
This is not major news, except for the fact that it keeps debt problems in the headlines and on investors’ minds. We’ll see if investors can shake this off and send stocks higher again on this remarkable run.
Down days have been hard to come by since the beginning of February. Today’s positive durable goods number may help continue the streak.
Also, investors should note that the January durable goods number was revised higher, not lower. For most of the last couple of years, economic numbers tended to get revised lower after the initial read. But now, the revisions are starting to go higher. That’s a very positive sign for the economic recovery.
Oil prices are down slightly after the EIA announced that inventories rose more than expected. Of course, given the recent revelation that the EIA’s data can be flawed, we have to take this with a grain of salt.
To me, the fact that oil has managed to hold in the $80 range while the U.S. dollar has rallied sharply tells me all I need to know about oil prices. They are headed higher as demand returns. I suspect oil prices would be pushing $100 a barrel if debt problems in
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