Three Stocks to Think Hard About

Yesterday delivered several disappointing results in the form of Dean Foods (DF), Nuance Communications (NUAN) and Millennial Media (MM). Looking at the rash of earnings revisions for these companies, one would have to think hard before jumping in, despite what may be read into the respective stock charts. Breaking down the businesses, we find that each company has had its own set of challenges -- but the question is whether or not one or all of them can bounce back. If so, the recent pullbacks could lead to big profits ahead. But if not, you run the risk of being trapped in a roach motel.

The way I see it, the three stocks fall into two very different camps. On the one hand, we have Nuance and Millennial Media. You would think their respective businesses should be booming, given the transition to mobile. Millennial Media, after all, is a mobile advertising platform company, while voice recognition software from Nuance powers many applications, including Apple's (AAPL) Siri. Despite those tailwinds, which should be pushing the businesses along, neither company has been able to deliver. That's especially true for Millennial, which has not only widely missed earnigns expectations over the last few quarters, but it is now expected to deliver a bigger loss per share this year than last year. Hardly the sign of a business going in the right direction....351 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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