This Week's 5 Smartest Stock Moves

If you're feeling good about the market, you're not alone. Take my hand as we go over some of this week's more uplifting headlines.

1. A blockbuster three years in the making
I guess this recession sometimes brings out the best in certain companies. IMAX (Nasdaq: IMAX  ) posted its first quarterly profit in three years yesterday, as the cinematic enhancer benefited from a busy slate of hit flicks and a larger base of its gargantuan screens in operation. The top-line surge of 94% was a welcome bonus.

This could be just the beginning.

"While one quarter does not make a trend, we believe this quarter is an early indication of the benefits of our new business model and that the pieces are in place to continue to deliver revenue growth and profitability for fiscal 2009," CEO Richard Gelfond claims.

That's financial speak for, "bring the popcorn, the movie's just starting."

2. Sirius gains by subtraction
For the second consecutive quarter, Sirius XM Radio (Nasdaq: SIRI  ) lost more subscribers than it gained during the period. However, the satellite-radio giant gets a pat on the back for losing less than half of the net subscribers that it shed during the first quarter.

The three months ending in June could have been worse. New fees for online streaming and higher rates on secondary receivers for family kicked in back in mid-March. Discretionary income didn't get any looser. However, Sirius XM came through by meeting Wall Street's expectations, before boosting its adjusted operating income outlook for all of 2009.

Sirius XM is no longer a growth stock story. Revenue inched 1% higher than last year's second quarter. The subscriber count is actually lower today than it was a year ago. However, the company's cash flow continues to improve as it cuts expenses and offers new premium services. It's time to follow Sirius XM's bottom line, for a change.

3. Couch potatoes are free to move around the loveseat
Speaking of satellites, satellite television superstar DirecTV (NYSE: DTV  ) threw its dish behind the TV Everywhere initiative. DirecTV will drum up a streaming solution, aiming to give its verified subscribers online access to channels they are already paying for.

TV Everywhere -- the open-ended brainchild of Comcast (Nasdaq: CMCSA  ) and Time Warner (NYSE: TWX  ) -- is the best idea that the cable and satellite television companies have come up with since DirecTV's NFL Ticket. As more studios begin to push ad-supported content online, subscribers will cancel their accounts. TV Everywhere changes that, because it provides digital value, and makes it that much harder to walk away from a cable or satellite company.

4. OpenTable and shut case
There's an unwritten rule among IPOs: You don't disappoint in your first quarter.

It's like a first date. You don't want to show up smelling rancid and wearing the wrong clothes if you want a shot at a lasting relationship. Market debutantes need to prove that they weren't just gabbing up an underwriter as an exit strategy.

Well, OpenTable (Nasdaq: OPEN  ) posted its first quarterly report since its springtime IPO, and the restaurant reservations specialist delivered. Revenue climbed 18%, and earnings more than tripled.

Actual eateries may seem like a dubious sector in a recession, but independent restaurants are flocking to OpenTable as a way to help fill empty tables.

5. Be fruitful and multiply, like a two-by-four
Shares of Lumber Liquidators (NYSE: LL  ) hit a 52-week high after the hardwood flooring retailer posted better than expected quarterly results.

The fast-growing chain is holding up better than larger home improvement superstores. Comps actually rose last year, and fell by a mere 1.8% during this past quarter. Net sales rose 12%, with earnings climbing 18% higher.

Can your orange apron do that?

IMAX and OpenTable are Motley Fool Rule Breakers recommendations. Try any of our Foolish newsletter services, free for 30 days

Longtime Fool contributor Rick Munarriz is an optimist at every turn. He's the inspiration for The Killers' "Mr. Brightside" song. Hdoes not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.


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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 07, 2009, at 4:58 PM, QwertyHero wrote:

    Interesting... However, if our intent is to serve the best interests of the dear reader, your "5 Smartest Stock Moves" should have been as follows:

    1) Buy BLUD

    2) Buy SBLK

    3) Buy ATVI

    4) Buy SNRY

    5) Sell everythign else

    *Disclosure - I own BLUD, SBLK, ATVI, and SNRY (aren't I precious?)

  • Report this Comment On August 08, 2009, at 3:23 PM, ozzfan1317 wrote:

    Lol..I agree On Atvi its got big time upside

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