May 10
27
Market Recovers After Steep Decline
Southridge Capital was pleased to see the market recover a bit on Friday after the steep decline on Thursday. For the week ending May 21st, 2010, NASDAQ, lost 5%, and the Dow lost 4%.
The European crisis is said to be a major reason for the market volatility and tremendous selling pressure last week. Unfortunately the market turmoil caused the investing public to overlook several positive news items: The first was the upbeat press release Dell put out which point to an increase in earnings of 52% in the first quarter, easily beating analysts’ expectations. Dell, more than its competitors relies on businesses to order computers, and while this has not happened yet, Southridge Capital finds its increase in earnings newsworthy.
Dubai, which rocked the markets a few months ago with concerns about its debt issues, reached a deal to restructure over $23 billion in debt. It is reported the restructuring of the debt was reached with over 90 lenders. These positive factors are important to look at as we look toward the summer months.
