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Now we have a portfolio managers as.
Despite the mixed results as earnings seasons corporate America is stronger than ever Neil Hennessy is CEO of Hennessy advisors portfolio manager of the Hennessy focus thirty fund.
Nearly a billion in assets actually -- so she's telling me right now that if if corporate America's very strong.
The would you put your money in American.
Corporate stocks businesses that are obviously dealing with what's happening in the US or with a footprint globally.
Not I think the US corporations are very strong if you go back to 2006 which was a height of corporate earnings about one point seven trillion dollars.
Tax our earnings before tax.
You -- -- last year it was two trillion dollars companies are cash flush the -- -- cash.
They were just talking about Steve -- in the dividend there until we get clarity out of Washington been talking about this for a year and a half.
All right we have taken to speaking of earnings -- been talking about that the Internet game company Robert -- of the earnings OK David coming -- haven't adjusted basis here 27 cents a share for the third quarter -- looks like that would be comparable BM -- have from analysts 23 says Citi -- and charges in the mix here.
Revenue numbers 236 point three million dollars that is missing BI estimate from analysts say they're looking for.
249 point two million hits shares moving a little lower here in.
After hours continuing to dig down through here but again -- looks like -- -- on the bottom line but like so many other companies this reporting season missing on the revenue.
Ultra staying interest again -- we talked about that said that now we have two examples of a -- On one line not a -- and the other in the fact is is that a lot of expectations are so high because of the greater earnings have been coming in.
That when they when earnings come out.
You see a little bit of a drop like we see we take two -- just don't think you need and that's all they do is is grand auto theft that's all you have to know folks go ahead.
And theft auto -- I just don't think you need in a slowing economy them from.
Make that much more than two trillion dollars before tax I mean people have to realize.
That this is a slow economy in these companies they're making money in a way don't mind 2011.
Ten I mean if they're -- in great shape.
OK but what's been a former them to -- -- people at least some companies.
Have been burned a bit on estimates for their earnings.
Will we know -- see more cautious outlook for next quarter and then they will best to the upside when the actual numbers come -- you know it's a it's a quarter over quarter give you.
I've -- and -- got an anticipated but in reality you know if you look long term.
And you look at the market and you look at their earnings and you look at the book values and you look at the price to sales and you look at the price of cash flow.
The market is so undervalued even in today's march you look -- conviction a lot of people out there looking for conviction when you don't have conviction you don't hire and they're saying that that's why unemployment continues side well.
Unemployment gonna stay high and -- of for a long time the reason until we get clarity out of Washington on what health care it's gonna cost what taxes -- going to be on what the rules and regularly -- more earnings right now Principal Financial Group Robert how they did.
Yeah unless they -- 71 cents on the bottom line for pennies below the average estimate of -- -- for the operating number again 71 cents.
We're Principal Financial Group revenue numbers.
Right in -- two point one billion dollars.
See what it's doing in after hours moving lower as investors digest -- -- Michigan principal financial -- on the bottom line in line on the top revenue line.
What do you like right now meal when you see these numbers do you like any of these names are you going elsewhere well I don't know what -- the companies that like this PetSmart.
And and -- if you think about pets mart there in about two dollars and fifty cents a share -- pay about a fifty cent 56 cent dividend the price to sales ratio is one.
They get 300 million dollars in the bank and you white PetSmart in this and a -- economy.
Why I don't know if you think back about five or seven years in New York did you see that many dogs on the street.
I certainly -- -- you know what in my house we call -- -- dumb because they cut my lovely little Luna.
And -- back -- -- so we will never -- -- -- -- saying that -- integrated -- governing -- -- I don't know -- I just feel -- -- -- -- -- -- dog -- -- of the -- -- three girls and their dogs -- -- dark -- crazy -- the lower -- consumer spending -- what you're supposed to -- look exactly family -- another example here they -- three dollars and 25 cents they have 200 million dollars -- -- -- -- -- and 86 cent dividend -- you -- for eighty cents on the dollar and there's a lot of good buys out there were weak in the double.
In the double recovery as I call -- the one we've already done economically.
Recession what were missing now is business and consumer confidence.
You know tendencies we got to leave it well I think sort of when we get that things are pocketed the top of the hour -- came in a while Paula thanks for coming please connect -- dissidents -- --
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