The Motley Fool's 10% Promise team was back at it again this week, reporting on all the crazy moves in the market. Earnings dominated our articles, but possible acquisitions, a new fashion trend, and a beaten-down stock caught my eye.
Just buy something already
While Microsoft (Nasdaq: MSFT ) sprinted to the checkout line to pay $8.5 billion for Skype, other companies preferred to browse the aisles this week.
Apple (Nasdaq: AAPL ) is reportedly undecided whether Nuance Communications (Nasdaq: NUAN ) is the right fit for the tech giant, but investors were buying the rumors anyway. I, for one, hope Apple decides to take the plunge, for selfish reasons if nothing else. A Mac, iPhone, or iPad that could turn my speech into Foolish articles is sure to reduce my chances of developing carpal tunnel syndrome. Plus, I would love to see "that guy" writing an email while talking to a headset in line at the corner drugstore.
Dollar Thrifty (NYSE: DTG ) is still giving Hertz Global (NYSE: HTZ ) the cold shoulder after a $72-per-share offer for the company. Now that Dollar Thrifty is trading for well over $80 per share, the market thinks the company can squeeze a few more dollars out of a potential buyer.
I'm not sure if either of these deals will go through, but I'm hoping it's a sign some of the cash on corporate balance sheets will be put to work this summer. The market could use the boost.
Not all fashion is created equal
I don't know much about fashion, but I know that retailers that rely on fickle customers to buy their clothes can go in and out of style very quickly. Both Guess? and Aeropostale have gone out of fashion recently, but Fossil (Nasdaq: FOSL ) got fashionable again quickly, with a solid earnings report.
Companies in this market usually make me nervous, but Fossil has a less risky set of products with watches and sunglasses. Plus, it beat expectations so soundly analysts are likely to increase future estimates soon.
It may be time to pounce on Ebix
I've had my eye on Ebix (Nasdaq: EBIX ) for months, but I haven't had the guts to pull the trigger as its stock price rose consistently. But now that shares have been crushed by an article by a short-seller yet posted better-than-expected earnings, it's time to look at the company again.
In the first quarter, revenue grew 27% to $40.1 million, diluted earnings per share rose 16% to $0.37, and the stock's forward P/E ratio is just 14 based on 2011 expectations. The company has consistently exceeded analyst expectations.
Motley Fool Rule Breakers has stuck by the company, and its current valuation is at least worth a thumbs-up from me on Motley Fool CAPS. Ebix may make it into my portfolio soon.
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