Yes, earnings were released for Reynolds American. Yes, they did miss what was expected of them. No, the stock is not suddenly a turn around in the wrong direction.
One must make sure to keep a level head in times such as these. It's easy to get caught up in the quick nightmares that the market decides to deal out. Many investors are keeping their eyes on single stocks and large caps, waiting for this so called recession to hit us. I do admit that I myself am in this boat but do I think that it has come and started with Reynolds American? Hardly.
The initial expectation for the stock was right in line for what they should have been expected to reach. However, they did have an acquisition that made their EPS drop just be a hair. Whenever this occurs, it is natural to assume that earnings would feel the hip check that is money moving from one to another to grow for the future. There is of course also talk about movement in the company with BAT - the Brits! This however I feel is a good thing. More heads in the game, more control, more money.
With that said, I feel that there is now another buying opportunity into the stock. As I have just moved my funds into the account to trade for the month of July, I may have to turn my eyes away from a new company acquisition and instead move to up my stake in Reynolds American so that I can profit more from the upswing that is almost certainly to come by either a take over or further expansion.
