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Where would you rather have your money?

Today's Financial News - Posted November 20, 2009

Where would you rather have your money?Investors have an important choice. Invest domestically or put some money overseas? A look at a few of today’s movers makes it an easy decision.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): You could say it is the tale of two economies. The best of times in Asia, the worst of times here in the States.

While domestic investors wonder when some rogue piece of data will kick out the wobbly legs supporting the top-heavy equities market, savvy Chinese investors are raking in gains from an economy soaring ahead a 7% per year clip.

Where would you rather have your money?

A look at two of today’s winning stocks will help you decide.

Zumiez (NASDAQ:ZUMZ) is a sports-related retailer based in Everett, Washington. With 343 stores in over 30 states, its operations are as exposed to the nation’s economy as it gets. A look at the company’s third-quarter results prove how low our expectations have gotten.

Over the past three months, the $375 million company racked up profits of $5.1 million, down from last year’s corresponding figure of $6.8 million. The earnings-per-share figure of $0.17 beat expectations of $0.15, which helps explain why shares are up by over 10% so far today.

But that’s the only reason investors have to celebrate.

The company’s fourth-quarter expectations leave little room for joy. After booking revenues of $113 million last quarter, the company expects sales of just $122 million to $126 million over the next three months, which include the critical holiday shopping period. Last year’s Q4 was worth sales of $125.

Analysts, which were expecting a figure closer to $131 million, have plenty of reasons to feel disappointed with the news.

Of course, Zumiez is not the only retailer worried about a slower-than-expected fourth quarter. Just yesterday Dick’s Sporting Goods (NYSE:DKS) reported similar news. Its shares are down another 3% today.

And then there is Dell (NASDAQ:DELL), the Texas-based computer manufacturer that released a horrid set of third-quarter figures of its own. After disappointing the Street, its shares are down by close to 10% today.

Investors must be taking their money out of Dell and putting it into Netlist (NASDAQ:NLST), the California-based semiconductor manufacturer that sells an awful lot of its product in China.

Thanks to a robust Chinese market, with high demand for technology, shares of the $128 million company have flat-out soared over the past few weeks, climbing from $0.71 at the start of the month to as high as $6.78 today.

That’s a three week gain of 855%!

Again, I ask where would you rather have your money? China is looking better and better.


Next Article: Inovio (INO) soars on positive test news

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Posted by Andrew Snyder · Filed Under Featuring..., International Investing 

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