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. HP is a Palm reader
There isn't a lot of love for Hewlett-Packard's
Most agree that Palm was "dead man walking" without a deal. Once Pre and Pixi phones stopped selling, distributors and carriers would bow out and Palm would be toast in a year.
However, I also like this from HP's angle. I may be in the minority here, but I think HP could use the proprietary sizzle that webOS brings to the table. Beyond smartphones, is there any doubt that we'll be seeing webOS tablets, netbooks, or other gadgets out of the HP camp? Every platform dies without developers, and this move rocks on that front as well. Developers should be more confident in the financial stability of the company behind Palm.
I wouldn't bet against HP turnaround guru Mark Hurd.
2. Sirius compliance
There are no more delisting concerns for Sirius XM Radio
It would have been unfathomable to see Nasdaq kick out one of its most popular stocks, but Sirius XM had been in violation of the minimum listing requirements for a while.
Sirius XM did it the right way this time. Earlier this year, an eight-day streak ended abruptly when investors got jittery even after the company released a positive quarterly report. After spilling the beans on positive subscriber growth for this year's first quarter, the company stuck to its early May earnings release date. Even if next week's report proves to be spectacular, it's hard to gauge fickle investors and speculators.
Nasdaq should still revisit its policy. Market caps and enterprise value should factor into these decisions.
3. Open the iPad bay door, Hal
The 3G version of Apple's
The model offers unlimited 3G connectivity through AT&T
Apple scored a major coup recently when Oprah Winfrey gushed over her iPad on her show.
"It's going to change the way kids learn," she told her audience of moms.
My tip to all the kids out there: If your mom watches Oprah, now is a good time to ask for an iPad.
4. Bet the over on Under Armour
Sales rose 15%. Earnings skyrocketed 75%. However, the real nugget in Under Armour's report is that it raised its guidance. It now expects to earn $1.06 a share on $975 million in revenue for all of 2010.
Under Armour's clothing and athletic footwear aren't exactly cheap, but that also makes the company an attractive appreciation candidate for an economic recovery as folks trade up to popular brands.
5. Petting Travelzoo
Shares of Travelzoo
Revenue grew 24% to $28.5 million in the first quarter, with earnings from continuing operations clocking in at $0.15 a share. Analysts were settling for a profit of only $0.07 a share on a mere 9% top-line advance.
The clincher here is that Travelzoo is still not living up to its true earnings power. It continues to post operating losses outside of the United States, as it aggressively expands abroad. Those deficits can't be used to offset its tax bite, so the effective tax rate of 50% is clearly exaggerated.
There are now 17.8 million opt-in recipients of Travelzoo's weekly "Top 20" emails of sponsored travel deals. It's a model that seems simple in theory, but it is executing it so well in the real world that it practically owns this space.