Jan 9, 2010

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions

Gold Moves Higher, But Is This Move The Beginning Of A New Upswing?

Posted: 09 Jan 2010 03:01 AM PST

The decade just ended was one in which the U.S. endured two market crashes, one at each end of the decade, the terrorist attacks of 9/11, a war in Afghanistan and a fiasco in Iraq that still drag on, Wall Street scandals highlighted by Enron, Hurricane Katrina, and the recent near economic meltdown. Is it any wonder then that Time Magazine couldn’t quite decide how to call this decade? The magazine came up with a few names: Decade from Hell, or the Reckoning, or the Decade of Broken Dreams, or … [visit site to read more]


US Unemployment At 22%?

Posted: 08 Jan 2010 09:01 PM PST

What is the real rate of unemployment?

The traditional rate of unemployment, commonly regarded as the U-3, is currently 10%.

Very often, though, we hear reference to the underemployment rate, that is the U-6 rate. The U-6 rate currently sits at 17.3%. This measure encompasses those individuals who desire more hours, are working below their skill set, or are discouraged and have exited the labor pool.

Thanks to SG, I was introduced today to a noted economist who has been tracking … [visit site to read more]

Video: The Week Ahead

Posted: 08 Jan 2010 09:00 PM PST

The stories, data, and stocks that may have the greatest impact during the next trading session. … [visit site to read more]

The Bad US Unemployment Numbers And The Secret Second Stimulus

Posted: 08 Jan 2010 07:01 PM PST

The Labor Department reports that 85,000 jobs were lost in December. The official rate of unemployment (which measures how many people are looking for jobs) held steady at 10 percent nonetheless. That’s because so many more people have stopped looking. Reportedly, 661,000 Americans dropped out of the labor force last month, deciding there was no hope of finding a job. Had they continued to look, the official unemployment rate would have been 10.4 percent.

These statistics mask an even … [visit site to read more]

China Is Doing Exactly What The United States Should Be Doing - Looking Ahead

Posted: 08 Jan 2010 06:01 PM PST

After boosting its economy with an $885 billion (2 trillion yuan) stimulus package, China is doing exactly what the United States should be doing - turning its attention toward inflation and excess lending.

The People’s Bank of China (BOC) yesterday (Thursday) raised the interest rate on its three-month bills for the first time since Aug. 13. The central bank sold $8.8 billion (60 billion yuan) of three-month bills at a yield of 1.3684%. That’s up from 1.3280% last week.

Also, the BOC … [visit site to read more]

Physically-Backed Platinum And Palladium ETFs Are Here Finally

Posted: 08 Jan 2010 05:01 PM PST

It’s been a long wait, but finally U.S. investors have the physically-backed platinum and palladium exchange traded funds (ETFs) they’ve long been clamoring for.

ETF Securities, which has offered a physically-backed platinum fund in Europe, has launched two similar funds here:

ETFS Physical Platinum (PPLT)
ETFS Physical Palladium (PALL)

Already, Reuters has noted that trading volume has been robust on their first day.

Each trust will custody all of the physical metal in plate … [visit site to read more]

U.S. Natural Gas Energy Is More Than All Of Saudi Arabia’s Oil

Posted: 08 Jan 2010 04:11 PM PST

What’s getting all of the attention recently is hydraulic fracturing, a process that involves injecting a mixture of water, sand and chemicals under high pressure to break through shale formations to reach enormous deposits of natural gas several miles underground. New advances in seismic imaging are used to find the shale gas, and horizontal drilling enables companies to reach the gas and bring it to the surface.

Largely through the use of these techniques, U.S. natural gas production … [visit site to read more]

Forex Trading: USD/CHF In Flag Consolidation

Posted: 08 Jan 2010 04:05 PM PST

Price action on USD/CHF (a daily chart of which is shown) has, much like its EUR/USD counterpart, formed a solid flag pattern. In the case of USD/CHF, this potentially bullish flag formation occurs after a tentative bottom was established just below parity. The top of this flag conforms approximately to a downtrend resistance line extending from the March 2009 high.

If the flag fulfills itself as a continuation pattern with an upside breakout, which would coincide with an upside breakout … [visit site to read more]

Bear Stearns: R.I.P

Posted: 08 Jan 2010 04:01 PM PST

As of Friday, Bear Stearns is no longer.

What? I bet you’re thinking Bear was taken over by JP Morgan (JPM) in spring 2008 and ceased to exist when the takeover was approved a few months later. You’d be right. I am right also.  How so?

As with many mergers and takeovers, the name of the acquired firm continues to be utilized within certain divisions. That is exactly the case with Bear Stearns, as those two storied names continued to be utilized in the Private Client Services unit … [visit site to read more]

US Temporary Jobs Rise For 5th Month, First Time Since 2005

Posted: 08 Jan 2010 04:01 PM PST

WALL STREET JOURNAL — Even though the payroll number was worse than expected, the data reflects an improvement in the jobs market. Job losses have been moderating substantially during 2009 as the U.S. economy recovered from its worst recession in decades.

In the fourth quarter of 2009, employment losses averaged 69,000 per month, compared to job losses of 691,000 a month in the first quarter of last year. Employment in construction fell by 53,000 in December, while manufacturing jobs … [visit site to read more]

Triangle Breakout Play In Boeing

Posted: 08 Jan 2010 04:01 PM PST

For those who may have missed it, Boeing Stock (BA) broke to new recovery highs out of a rising wedge or ascending triangle pattern on the daily chart, sending prices higher in solid breakout mode.

Let’s take a look at the daily chart to see this breakout, as well as upper resistance levels to watch and lower support levels to guide traders.

Starting with the June 2009 price high of $52 per share, Boeing then moved into a rising consolidation pattern which is a hybrid between a … [visit site to read more]

BofA To Pay 2007 Level Bonuses

Posted: 08 Jan 2010 03:36 PM PST

With an attempt to retain key employees following its takeover of Merrill Lynch & Co., Bank of America Corp. (BAC) is likely to pay bonuses to its investment bankers close to what they received in 2007.
BofA is expected to pay about 25% of 2009 bonuses in cash and the rest as deferred payments of stock or cash that will fluctuate in value with BofA’s performance. However, the overall payment of bonuses is expected to be slightly lower as 2007 is not a milestone of record payment of … [visit site to read more]

A Recession Of Fear

Posted: 08 Jan 2010 03:00 PM PST

Uh oh… The wind chill is 50 below in North Dakota. And the storm is headed our way.
What happened to global warming? This report from colleague Chris Hunter in Ireland, where we have our Family Office:
"Ireland is under snow – lots of it. The media have dubbed it the 'Big Chill.' It hasn't been colder since 1962. I stupidly tried to drive to a nearby village yesterday evening in said snow and got my car stuck in a ditch.
"I'm now holed up in a friend's house waiting for an … [visit site to read more]

Neutral On Watson

Posted: 08 Jan 2010 09:48 AM PST

We recently initiated coverage on Watson Pharmaceuticals, Inc. (WPI) with a "Neutral” recommendation and a target price of $42. The company enjoys a strong position in the generics market. We believe the company's strategy of developing generics that are difficult to formulate or manufacture will help strengthen its position in the market. Going forward, increasing awareness about generics, initiatives taken by various government and private agencies encouraging the use of low-cost … [visit site to read more]

Limited Brands Raises Outlook

Posted: 08 Jan 2010 02:28 PM PST

Limited Brands, Inc. (LTD), a specialty retailer of women's intimate and other apparel, beauty and personal care products, recently raised its fourth-quarter 2009 guidance on the heels of better-than-expected sales and merchandise margin rates in the quarter.
Limited Brands now expects its fourth-quarter 2009 earnings in the range of 92 cents to 97 cents a share, up from 71 cents to 86 cents forecasted earlier.
Limited Brands said comparable-store sales for the five weeks ended Jan 2, 2010 … [visit site to read more]

The New No-Spin Zone?

Posted: 08 Jan 2010 02:16 PM PST

I’ve often railed against the mainstream media because of its long-running role as enabler and cheerleader for the conflicted and delusional Wall Street-Washington establishment. Nonetheless, an article in today’s New York Times has imbued me with a bit of newfound respect for The Gray Lady.

First off, here’s a sampling of what some news organizations have recently said about the commercial real estate market:
“Commercial Real Estate Has Hit Bottom: Gosin” (CNBC)
Real estate developer … [visit site to read more]

Marriott Lifts RevPAR Outlook

Posted: 08 Jan 2010 02:13 PM PST

Marriott International Inc. (MAR) has provided a better outlook for its North American hotels for the fourth quarter of 2009. The company now expects comparable systemwide revenue per available room (RevPAR) inside North America to decline 13% – 14%. This is slightly better than its previous guidance issued on Dec. 8, 2009, where the company said that it expects a RevPAR decline of 13% to 16% for its North American hotels.
For comparable systemwide hotels outside North America, Marriott … [visit site to read more]

Cartoon: Job Dissatisfaction?!!?

Posted: 08 Jan 2010 02:01 PM PST

Source: Pat Bagley, Comics.com, January 5, … [visit site to read more]

How To Play The Rise Of LNG

Posted: 08 Jan 2010 02:00 PM PST

There are a number of big trends forming in favor of liquefied natural gas, or LNG.
Last year was a big year for LNG. We saw a wave of new capacity hit the market. We had new LNG terminals take their first deliveries in 2009 — in Kuwait, Canada, Brazil and Argentina. New facilities opened in the U.K. And China and India also imported more LNG.
In the great quest to boost energy supplies, LNG could get much bigger. It makes up only 7% of natural gas supplies today, but LNG trade volumes are up … [visit site to read more]

Daily ETF Roundup: GDX Surges, UNG Slips

Posted: 08 Jan 2010 01:58 PM PST

After weeks of good news fueled hopes that the U.S. economy had finally stopped shedding jobs, many investors were disappointed Friday when the data showed that another 85,000 were cut in December. Highlighting the complexities of the current economy, most major benchmarks actually gained ground on the day, as the disappointing jobs data reduced the likelihood of a rate increase in coming months.
The ETFdb 60 Index gained 2.56 points on Friday, closing the first week of the year up 2%. Gains on … [visit site to read more]

Video: NYSE Closing Bell Market Monitor: AA, KO, UPS

Posted: 08 Jan 2010 01:55 PM PST

The latest in news, commentary, and information on what’s moving the US equities markets. … [visit site to read more]

Chevron, Nippon In LNG Deal

Posted: 08 Jan 2010 08:51 AM PST

Chevron Corp. (CVX), the second-biggest U.S. energy company, has entered into a deal to sell 300,000 tons of liquefied natural gas (LNG) per annum from its Gorgon venture in Australia. The company said its Australian subsidiary has signed a long-term agreement with Japanese refiner Nippon Oil Corp.
As per the contract, Chevron would provide LNG to Nippon Oil for a period of 15 years. The value of the deal has been estimated at about $3 billion. Chevron Australia approximately holds a 47% … [visit site to read more]

Unemployment Weighs Down Cintas

Posted: 08 Jan 2010 08:34 AM PST

After posting a positive earnings surprise in the first quarter of fiscal 2010, Cintas Corp. (CTAS) recently reported lower-than-expected earnings for the second quarter. The company posted second-quarter earnings of 37 cents per share compared to the Zacks Consensus Estimate of 43 cents. The company's sales were down 10% year over year due to significant job losses in the economy since the start of recession.
Increasing job losses are adversely impacting the company's top-line. Cintas … [visit site to read more]

Goldcorp To Acquire Mine

Posted: 08 Jan 2010 08:19 AM PST

Goldcorp Inc. [[gg]], the world's second-largest gold producer, has announced its plans of acquiring a 70% stake in the EI Morro copper-gold mining project in north-central Chile. Goldcorp plans to advance a loan of $463 million to New Gold Inc. (NGD), which owns 30% of the mine and has a right of first refusal to buy the stake.
With the proceeds of the loan, New Gold will acquire the remaining 70% stake in El Morro from Xstrata PLC. Goldcorp will then buy the entire stake off New Gold for … [visit site to read more]

Unemployment Duration Still Increasing

Posted: 08 Jan 2010 08:16 AM PST

What really sets this recession apart from all previous post-war recessions is the difficulty people have in going back to work after they have been laid off. In any economic environment, there are always jobs that are being lost, and new jobs created. It is the net number that is shown in the employment reports like we got this morning.
This time around, and particularly in recent months, it has not been that the economy has been losing old jobs are a super-high rate, but that there has been … [visit site to read more]

Lawson Beats Estimates

Posted: 08 Jan 2010 01:00 PM PST

Lawson Software, Inc. (LWSN) reported revenues of $184.4 million in the second quarter of fiscal 2010, down 10.6% year over year. Excluding foreign currency fluctuations, revenues declined 12%.
Software revenues (comprising of license and maintenance revenues) declined by 6%. Consulting revenues of $71 million were down 18%. The company intends to resize its consulting business, and has already reduced the size of the consultant team by 30% in light of the current business environment. … [visit site to read more]

Natural Gas Stocks Dip In Line

Posted: 08 Jan 2010 07:41 AM PST

The federal government's Energy Information Administration (EIA) reported an in line decline in natural gas supplies. Stockpiles held in underground storage in the lower 48 states fell by 153 billion cubic feet (Bcf) for the week ended Jan 1. The inventory decline was the fifth in as many weeks. This has finally started to erode the record-high storage amounts, as frigid temperatures continue to chill major gas-consuming regions in the U.S.
 
Though the heating season officially began on … [visit site to read more]

100 Years Of Mismanagement

Posted: 08 Jan 2010 12:07 PM PST

There must be some dark corner of Hell warming up for modern, mainstream economists. They helped bring on the worst bubble ever…with their theories of efficient markets and modern portfolio management. They failed to see it for what it was. Then, when trouble came, they made it worse.
But instead of atoning in a dank cell, these same economists strut onto the stage to congratulate themselves.
"The Greatest Depression that could so easily have happened in 2009 but did not is the tribute that … [visit site to read more]

Toyota Prius Tops Japanese Sales

Posted: 08 Jan 2010 12:05 PM PST

Toyota Motor's (TM) gas-electric hybrid Prius has been judged the top-selling car in Japan. The automaker sold as many as 208,876 units of the car in 2009, which is nearly three times that model’s sales volume in 2008.
 
The third generation 4-door compact hybrid, Toyota Prius 2010, debuted in Japan on May 18, 2009, and has been the top-selling model every month since then. Soon after the launch, Toyota received an order of 180,000 units, exceeding the company's target of 10,000 … [visit site to read more]

Ignore The Crowd … It’s Time To Invest In Commercial Real Estate

Posted: 08 Jan 2010 12:01 PM PST

Of all the independent institutional research that I receive, some of my favorite comes from Justin Mamis, a veteran of all the financial wars we’ve seen over the past five decades.

Although he’s steadfastly bearish, no matter the climate - like those codgers you see wearing heavy coats on sunny days in Florida - the Canadian analyst has lasted so long because he’s quick with colorful phrases, and his research is amusing and insightful.

Just last week, Mamis recounted a conversation … [visit site to read more]

NET Servicos Downed To Neutral

Posted: 08 Jan 2010 06:39 AM PST

We downgrade our recommendation for NET Servicos de Comunicacao S.A. (NETC) to Neutral, which means the stock will perform mostly in line with the broader market. The stock price has moved up more than 150% in the last year and is currently trading at the high end of its 52-week price range. With respect to several valuation metrics, the stock is also trading at a significantly higher multiple compared to both the S&P 500 and the peer averages.
 
NET Servicos is the largest … [visit site to read more]

New Agreement For Allscripts

Posted: 08 Jan 2010 06:23 AM PST

Allscripts-Misys Healthcare Solutions Inc. (MDRX) recently entered into a new agreement with CVS Caremark Corporation (CVS) whereby the latter will stop offering its iScribe prescription software, switching all its customers to Allscripts' e-prescribing software instead. Financial terms of the agreement have not been disclosed.
 
We think that the new agreement will substantially boost Allscripts' top-line by expanding its client base. E-prescribing is a form of electronic health … [visit site to read more]

Unemployment: Sectors & Demographics

Posted: 08 Jan 2010 06:20 AM PST

The employment report for December was disappointing (see here). The job losses were concentrated in the goods producing side of the economy, which lost 81,000 more jobs.
Construction was particularly hard hit again, with a loss of 53,000 jobs. Construction employment peaked earlier than did total employment, in January 2007, at 7.737 million jobs; now construction employment is down to 5.907, a decline of 1.83 million, or 23.7% from the peak. The last time that construction employment was this … [visit site to read more]

Forex Trading: USDCHF Leading The Way Down? Or Is It Just Another Tease?

Posted: 08 Jan 2010 05:43 AM PST

The USDCHF is moving sharply lower and looks to be choosing the downside after wandering above and below the 100 day moving average all week.  The price is now comfortably below the MA level at the 1.0294 level and has moved below the trendline connecting the recent lows.  The next level to get through is the 50% retracement of the last corrective move higher at the 1.0212.  The low today?  1.0215.  The holding of this level, leaves the door open for those short … [visit site to read more]

Forex Trading Review For 8 January

Posted: 08 Jan 2010 02:11 AM PST

USD Dollar (USD)

The Dollar continued the upward trend and strengthened versus all majors. Helping the Dollar’s rally was the initial jobless claims data that increased to 434,000, fewer than the 439,000 claims economists anticipated. Wall Street closed on a mix note. NASDAQ declined by 0.05% and Dow Jones rose by 0.31%. Crude oil declined for the first time in 11 days as the dollar advanced, dropping by 0.6%, closed at 82.66$ a barrel. Gold (XAU) also weakened by 0.2% closed at 1133.7$ an … [visit site to read more]

Even With The Full Benefit Of Hindsight, Bernanke Still Can’t Recognize The Fed’s Mistakes

Posted: 08 Jan 2010 02:01 AM PST

It seems that the primary qualification needed by any chairman of the Federal Reserve is the ability to never admit error, no matter how damning the evidence. During his tenure on the job, Alan Greenspan set the standard for implausible deniability. But in a speech last weekend in Atlanta, current chairman Ben Bernanke did the Maestro one better. In a tortured academic dissertation, Bernanke explicitly denied any Fed culpability for inflating the housing bubble and for the financial crisis … [visit site to read more]

Stock News Briefs: Oil Slides From 15-Month High; Former McKinsey Director Pleads Guilty In Galleon Scandal; Cold Snap Threatens Natural Gas Production

Posted: 08 Jan 2010 01:48 AM PST

Former McKinsey Director Pleads Guilty in Galleon Scandal; Unemployment Claims Drop; EPA Tightens Ozone Standards; Cold Snap Threatens Natural Gas Production; State Tax Collections Plummet; Oil Slides From a 15-month High

Anil Kumar, a former McKinsey & Co director, yesterday (Thursday) pleaded guilty to securities fraud and conspiracy charges in Manhattan federal court in what U.S. prosecutors have called the biggest hedge fund insider trading case ever. Kumar was charged with … [visit site to read more]

In 2010 You’ll Hear A Lot About The “Next 11″

Posted: 08 Jan 2010 01:01 AM PST

Everyone is making 2010 forecasts. So today I’ll jump on the bandwagon and share one of mine with you:
In 2010 you’ll hear a lot more about the “Next 11.”

The Next 11 (N-11) is a list of fast-growing countries identified by Goldman Sachs (GS) as potentially good investments in the coming years. However, before I tell you where in the world can you find them, I should probably tell you about the First 4 - the so-called “BRIC” countries.

BRIC is an acronym coined by Goldman Sachs a few … [visit site to read more]

Forex Trading: Eurozone Unemployment Rate Highest Since 1998

Posted: 08 Jan 2010 01:01 AM PST

Eurozone unemployment rate rose to 10% from the prior reading of 9.8%, 9.9% was expected. This is the highest unemployment rate since 1998 for the Eurozone.
Eur/Usd has come off about 10 points since release, now trading at … [visit site to read more]

Video: GM Debuts Lithium-ion Battery For Chevrolet Volt

Posted: 08 Jan 2010 01:00 AM PST

GM began producing lithium-ion battery packs for the company’s Chevrolet Volt electric vehicle. … [visit site to read more]

Gold Stocks And The Stock Market Forecast For 2010

Posted: 08 Jan 2010 12:01 AM PST

I wrote a post here for ATP called “The bull case is not dead yet”. This ended up as an article on 321Gold.com, which you can review here: Bull Not Dead Article- Banister. I stuck my neck out, which I love to do once in awhile when the contrarian mood strikes me. I wrote a Feb 25th article this year going very bullish on the markets when everyone was bearish. I wrote an article in early August going very bullish gold and gold stocks, when they were not in bull mode. Obviously, if you stick your … [visit site to read more]

Fed, Under Tim Geithner, Pressured AIG To Keep Quiet On “Back Door Bailouts”

Posted: 07 Jan 2010 11:01 PM PST

The Federal Reserve Bank of New York, while headed by current Treasury Secretary Timothy Geithner, pressured American International Group Inc. (AIG) to withhold information about payments it made to banks during the peak of the financial crisis, according to a report by Bloomberg News yesterday (Thursday).

A series of emails between the Federal bank and AIG lawyers show that the insurer was told to delete details from public disclosures about payments it made on credit default swaps to … [visit site to read more]

Mutual Funds: Top UBS Global Funds

Posted: 07 Jan 2010 05:38 PM PST

UBS PACE Intl Emerging Mkts Eq A (PWEAX) seeks long-term capital appreciation. It was incepted in December 2000.
The fund normally invests at least 80% of its net assets in equity securities that are tied economically to emerging market countries. Such investments may include equity securities issued by companies domiciled in emerging market countries. It may not always diversify its investments on a geographic basis among emerging market countries. The fund may invest, to a limited extent, in … [visit site to read more]

Mutual Funds: Top Real Estate Equity Funds

Posted: 07 Jan 2010 05:18 PM PST

Today we are featuring top-performing "Real Estate” equity mutual funds, which primarily invest in equity securities of real estate companies.
Investors can find such real estate funds by checking out the entire list of the Zacks #1 Rank Real Estate Equity Funds.
3 Great Real Estate Picks
MSIF Inc. Euro Real Estate A (MSUAX) seeks to provide current income and long-term capital appreciation. It was incepted in October 1997.
The real estate fund invests primarily in equity securities of … [visit site to read more]

US M2 Growth Falls Below 3%, Lowest Rate Since 1995

Posted: 07 Jan 2010 10:01 PM PST

M2 growth (data here) fell to 2.7% (on an annual basis) in the week ending December 21, 2009, the first time since the summer of 1995 that annual M2 growth was below 3%, and the lowest growth rate since a 2.4% reading in late July 1995 (see chart above).

The growth rate of the monetary base (data here) has also been falling, and is now below 20% for the first time since early October 2008 (see graph below):

MP: For those worried about inflation, I think you better tell the … [visit site to read more]

Rise In US Steel Stock Prices Could Mean Economic Growth Ahead

Posted: 07 Jan 2010 09:01 PM PST

I found the daily chart of US Steel (X) very interesting, in that it showed a good example of a Head and Shoulders which triggered a tradeable move into support, and then we’ve had a non-stop rally to fresh recovery highs - that’s bullish for stocks in general.  If steel demand is a leading indicator for economic growth, then this is certainly a move to watch.

Let’s take a look.

Let’s start with the Head and Shoulders pattern that formed from August until October, with the … [visit site to read more]

Earnings Preview: Alcoa To Kick Off Earnings Season

Posted: 07 Jan 2010 04:00 PM PST

Earnings Preview 1/08/10
Next week is the kickoff for the 4Q09 earnings season, when Alcoa (AA) announces on Monday. In all, 32 firms will report their results next week, including 6 S&P 500 members. Reporting activity will then pick up speed, and next week's trickle of earnings data will turn into a flood. In addition to the start of earnings season, it will be a fairly busy week for economic data.
Monday

 Nothing of significance.

Tuesday

 The highlight of the day will be … [visit site to read more]

Stock Buy: Praxair Inc.

Posted: 07 Jan 2010 04:00 PM PST

Praxair Inc. (PX) is seeing bullish earnings forecasts ahead of reporting later this month. The 2009 year Zacks Consensus Estimate of $4.00 was lifted from $3.96 over the past 90 days. For the following year, the projection of $4.60 climbed from $4.54 over the past 3 months.
Company Description
Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2008 sales of $10.8 billion. The company produces, sells and distributes atmospheric, … [visit site to read more]

Stock Buy: Goldcorp, Inc.

Posted: 07 Jan 2010 04:00 PM PST

Goldcorp, Inc. (GG) is producing steady gains on increased production, rising gold prices and higher estimates.
Company Description
Goldcorp. Inc., together with its subsidiaries, operates as an explorer and developer of precious metal properties in Canada, the United States, Mexico and Central and South America. The company was founded 1954 and has a market cap of $30.5 billion.
Shares of GG have been steadily gaining for most of the last year on the strength of a global economic recovery … [visit site to read more]

Stock Buy: Ctrip.com International

Posted: 07 Jan 2010 04:00 PM PST

Ctrip.com International, Ltd. (CTRO) recently set a new 52-week high as people are returning to normal vacation habits.
Company Description
Ctrip.com is a Chinese travel web site that offers discounted flights, hotels, and travel packages, similar to Orbitz or Travelocity.
47% Jump in Revenue
Ctrip.com reported third-quarter revenue of $80 million on Nov 11, which is up 47% on a year-over-year basis. Net income came in at $32 million, up 59%.
Earnings per share was an impressive 39 cents, … [visit site to read more]

Stock Buy: TreeHouse Foods Inc.

Posted: 07 Jan 2010 04:00 PM PST

TreeHouse Foods Inc. (THS) recently announced it was acquiring Sturm Foods, a 105-year old Wisconsin food manufacturer, which will result in over 16% accretion on an annual basis. THS also raised 2009 earnings guidance.
Company Description
TreeHouse Foods manufacturers various food products including canned soup, salad dressings and sauces, salsa and Mexican sauces, infant feeding formulas and liquid non-dairy creamer. It is the largest manufacturer of pickles and non-dairy powdered creamer … [visit site to read more]

Bull Of The Day: Best Buy Co. (BBY)

Posted: 07 Jan 2010 04:00 PM PST

The dominant position in the consumer electronic business enables Best Buy (BBY) to sustain growth in its topline, expand its store base and boost its market share through acquisitions.
The stores tailor their store merchandising, staffing, marketing and presentation to meet the distinct needs of targeted customers. The company’s wide array of assortments, store formats and brand marketing strategies provides an edge over competitors.
These helped Best Buy to post better-than-expected … [visit site to read more]

Bear Of The Day: Regency Centers (REG)

Posted: 07 Jan 2010 04:00 PM PST

We are changing our long-term recommendation for Regency Centers (REG) to Underperform as we anticipate it to perform well below the broader market. The prolonged recession has led to increased tenant bankruptcies, which in turn have led to a decline in occupancy and an increase in vacancy rates.
In addition, consumer discretionary spending continues to be under severe stress with a reduction in disposable income. However, Regency is one of the largest retail-strip format REITs in the U.S. … [visit site to read more]

Who Is Willing To Stand Up For The Disenfranchised Auction-Rate Securities Investors?

Posted: 07 Jan 2010 08:01 PM PST

A friend of Sense on Cents informed me the other day that Tom James, chairman and chief executive of Raymond James, issued an apology to the firm’s clients involved in the auction-rate securities fiasco. Wow! Given my keen interest in this topic and my empathy for the investors who have been abused by the industry, my heart raced. An apology by the head of a firm the size and scope of Raymond James is deeply meaningful.

Upon review of the article, Tom James Apologizes for Auction Rate … [visit site to read more]

Get Agriculture Exposure With This ETF

Posted: 07 Jan 2010 07:01 PM PST

A conservative and long-term approach to investing in agriculture stocks through an exchange traded fund (ETF) is possible with Market Vectors Agribusiness (MOO).

MOO has rallied 86% since its March lows, says Kevin Cook for ONN tv. MOO is an interesting way to play commodity shares because it does not use futures contracts or commodity swaps to invest.

The latest crackdown on the regulation for commodity-focused ETFs that invest in futures contracts is another reason investors who … [visit site to read more]

Video: The Day Ahead: U.S. Employment Report

Posted: 07 Jan 2010 07:00 PM PST

The stories, data, and stocks that may have the greatest impact during the next trading session. … [visit site to read more]

Fully Played Out?

Posted: 07 Jan 2010 06:46 PM PST

Few would argue with the notion that many aspects of life have pendulum-like properties. Markets and social moods, for example, might swing for a while in one direction, but more often than not, they eventually head back the other way.
The mistake that people make, however — and I am occasionally guilty of this as well — is to assume that they know just when the transition point will be or has been reached, maybe because they’ve studied past patterns.
While that knowledge would no doubt be … [visit site to read more]

Updates On US Bank Lending

Posted: 07 Jan 2010 06:01 PM PST

The theme for this edition’s top 5 graphs is US lending. I sourced some data from the US Federal Reserve on Aggregate lending by US commercial banks over the last 30-odd years, the data is seasonally adjusted, and is originally on a weekly basis. It is useful to look at this information to see how loan growth has unfolded over time; has it changed in composition? has it changed in patterns? how has it tracked recently?

It is particularly interesting to look at this information now for … [visit site to read more]

Singapore Stock Market: Our Focus For Today Is On Property, Oil & Gas, Technology And Commodity Sector

Posted: 07 Jan 2010 05:18 PM PST

Morning Highlights
Our Focus For Today Is On Property, Oil & Gas, Technology and Commodity Sector
Singapore Shares opened higher with the STI up 11.35 points to 2924.60.

Wilmar broke high of 7

Singapore News Updates:

Singapore's official foreign reserves stood at US$ 187.81 billion in December, down from US$188.90 billion in the previous month, said by MAS on Thursday. A year ago, the foreign reserves were US$174.19 billion.

News Updates:

U.S. Initial Jobless Claims edge up 1000 … [visit site to read more]

How Tim Geithner Screwed American Taxpayers

Posted: 07 Jan 2010 05:01 PM PST

Tim Geithner, then head of the New York Fed, blinked and screwed the American taxpayer out of billions of dollars in the process. How so?

Geithner and his cronies in Washington have misrepresented-if not outright lied-about the payments to both domestic and foreign banks in settling exposures to then failing AIG (AIG). While politicians and pundits alike will reference the precarious nature of the time and heat of the moment to defend Geithner and his cronies, the simple fact is the … [visit site to read more]

Forex Traders Anticipating Friendly U.S. Non-Farm Payrolls Report

Posted: 07 Jan 2010 04:29 PM PST

The U.S. Dollar held on to most of its gains as traders await Friday’s U.S. employment report. On Thursday, the Weekly U.S. Initial Claims report showed that fewer workers filed for unemployment benefits last week. This news helped boost an already strong Dollar. The ability to hold on to its gains into the close may be an indication that investors are anticipating a friendly U.S. Non-Farm Payrolls Report Friday. Volume has dropped off noticeably which is a strong indication that the ranges for … [visit site to read more]

How Long Will The Stock Market Rally Last? 12 Months, At Best

Posted: 07 Jan 2010 04:11 PM PST

The charts, the electoral cycle and classic monetary theory all agree: The bulls have 12 months - max!

The endless parties are over, the lights are put away, the tree is already covered in snow out by the woodshed, and the kids are all back in school. Our three-month interval of obsessive, perhaps even feverish, fantasy is finally (blessedly?) over.

Now, I am not one of those people who make a lot of resolutions this time of year. While I am (gladly!) cutting back on rich food and drink … [visit site to read more]

Invesco PowerShares Announces Zero Capital Gains Distributions For 2009 On 116 Of 117 ETFs

Posted: 07 Jan 2010 04:01 PM PST

Invesco PowerShares Capital Management LLC, a leading provider of exchange-traded funds (ETFs), today announced that 116 out of 117 of its ETFs paid zero capital gains distributions for 2009.

Only one PowerShares ETF - the PowerShares NASDAQ-100 BuyWrite Portfolio (PQBW) - realized a small capital gains distribution (see table below), due largely to the unique underlying index methodology, which writes covered calls on the NASDAQ-100 Index. This is the first distribution for any … [visit site to read more]

Should Uncle Sam Bailout California?

Posted: 07 Jan 2010 04:01 PM PST

Should 49 states bail out one? Should the American public be compelled to cover the fiscal disaster of our largest state? Will America ever face reality?

The ticking time bomb that is the fiscal disaster of the state of California is making its way to Washington. As reported in yesterday’s Wall Street Journal, the Governator Arnold Schwarzenegger Seeks U.S. Funds. If Uncle Sam bails out California, then who is next?

Not surprisingly, the general media is not giving this story even … [visit site to read more]

Hewlett-Packard In Good Shape

Posted: 07 Jan 2010 03:30 PM PST

Leading computer maker Hewlett-Packard Company (HPQ) recently introduced a range of environment-friendly desktops, notebooks and displays targeted at business users.
The one that appears to show the most promise is the HP Compaq 8000f Elite Ultra Slim Desktop, which H-P claims to be the first Windows-based desktop PC that does not generate brominated flame retardants (BFRs) and polyvinyl chloride (PVC) from the mouse.
The consistent roll out of quality new products at regular intervals is … [visit site to read more]

Video: NYSE Closing Bell Market Monitor: AA, LEN, GME

Posted: 07 Jan 2010 03:10 PM PST

The latest in news, commentary, and information on what’s moving the US equities markets. … [visit site to read more]

Seagate Grows With Innovation

Posted: 07 Jan 2010 03:09 PM PST

One of the eminent players in the hard drive and storage solutions space, Seagate Technologies (STX), unveiled the BlackArmor PS110 USB 3.0 portable external hard drive performance kit for notebook computers at the consumer electronics show (CES) in Las Vegas.
This all-in-one USB 3.0 toolkit has the ability to generate speeds that are up to three times higher than its USB 2.0 predecessor. The high-speed USB 3.0 takes just four minutes to transfer a 25GB HD movie as compared to 14 minutes … [visit site to read more]

Stocks To Watch On Friday 8 January

Posted: 07 Jan 2010 03:03 PM PST

( click to enlarge )
Tellabs (TLAB) had a strong day, as the stock is closing in on the top of a 2-month resistance level. The way the stock is trading, leads me to believe it's going to make a big move up. The technical chart still showing a bullish bias. KD line shows positive signs as K line is rising on top over D line and RSI continue moving up. I suspect the stock may continue to appreciate over the coming days.

( click to enlarge )
EnteroMedics (ETRM) was very strong … [visit site to read more]

UnitedHealth To Retire Debt

Posted: 07 Jan 2010 09:45 AM PST

Yesterday, UnitedHealth Group (UNH) announced the commencement of its cash tender offer to purchase $200 million of short-term notes and $550 million of intermediate-term notes. The offer will expire on Feb 3, 2010.
The buyback, which will be funded by cash in hand and proceeds from the sale of commercial paper, will be made through a modified Dutch auction. The notes buyback will reduce the company's interest burden, thereby strengthening the balance sheet.
UnitedHealth has been active in … [visit site to read more]

Fred’s Comp Store Sales Improve

Posted: 07 Jan 2010 09:25 AM PST

Fred's Inc. (FRED) reported total sales of $209.3 million for December 2009, up 4% from $201.4 million in December 2008. Comparable store sales for the month increased 1.3%. This was an improvement compared to the comparable store sales growth of 1% reported in the third quarter. The company had posted flat comparable store sales in December 2008.
Fred witnessed increased customer traffic, continued pharmacy department script growth and better clearance of seasonal inventory during the … [visit site to read more]

Daily ETF Roundup: XLF Jumps, UNG Slides

Posted: 07 Jan 2010 02:25 PM PST

The year's hot start continued on Thursday, as impressive results for retail stores and upbeat analyst comments on the financial sector pushed most benchmarks higher. Even the automotive sector is looking up, as GM predicted that it would turn a profit in 2010. Across the world, China inched up a key interest rate, a move that could be a sign of things to come for the global growth engine. 
The ETFdb 60 Index declined 1.52 points, or 0.1%, to close the day at 1,052.31. Thursday's loss … [visit site to read more]

Steel Dynamics Guides Lower

Posted: 07 Jan 2010 02:07 PM PST

Steel Dynamics Inc. (STLD), the nation’s fifth-largest producer of carbon steel products, has recently announced that it expects to earn between 10 cents and 20 cents per share in the fourth quarter of 2009, compared with the Zacks Consensus Estimate which is pegged at 23 cents. A year earlier, the company had reported a loss of 45 cents per share. Steel Dynamics had lost $83 million in the fourth quarter of 2008 as customers ordered less steel and the company had to lower steel … [visit site to read more]

Does The Size Of Your Portfolio Matter?

Posted: 07 Jan 2010 02:01 PM PST

In the natural resource and precious metals sectors there are literally thousands of companies available from which to choose to include in one’s portfolio. There are a lot of great companies and some, well, questionable choices. Screening out favorites might mean subscribing to several investment services and listening to the views of professionals. Then you must decide on how many of these companies in which to actually purchase shares.

All investors whether novice or professionals need to … [visit site to read more]

Business As Unusual

Posted: 07 Jan 2010 02:00 PM PST

It's business as unusual here in Asia; unusual compared to business in the West, that is.
For every spender in the West, there are ten savers in the East. For every Wal-Mart shopper and Snuggie-clad sofa surfer in the US, there exists a team of manufacturers in Viet Nam…and Cambodia…and right here in Taiwan, toiling away to improve their workaday lot. And as the West goes borrowing, the East goes lending…for now, anyway. It's the yin and the yang, if you will.
Markets in this region … [visit site to read more]

Berkshire Finance To Issue Notes

Posted: 07 Jan 2010 08:46 AM PST

Yesterday, Berkshire Hathaway Finance Corporation, a subsidiary of Berkshire Hathaway Inc. (BRK.A, BRK.B) announced the issue of $1.0 billion notes, out of which $750 million will be senior notes due 2040 and $250 million will be floating rate senior notes due 2012.
 
The $750 million senior notes will carry an interest rate of 5.75%, which will be paid semi-annually, with the first payment due on July 16, 2010. Interest on the $250 million of floating rate senior notes is set at 115 basis … [visit site to read more]

Macy’s Lifting Outlook

Posted: 07 Jan 2010 08:30 AM PST

Macy's Inc. (M) reported a 0.7% growth in total sales for the 5-week period ended Jan. 3, 2009. Total sales for the month were $4.43 billion, compared to $4.40 billion posted in the same month last year.
Bolstered by the performance, Macy's lifted its fourth-quarter earnings guidance to a range between $1.14 and $1.18 per share, compared to an earlier prediction of $1.00 to $1.05 per share. The guidance is in line with the Zacks Consensus Estimate of $1.14 per share derived from 14 … [visit site to read more]

Autodesk Settles Lawsuit

Posted: 07 Jan 2010 01:14 PM PST

Autodesk, Inc. (ADSK) announced the settlement of a lawsuit against Dassault Systèmes SolidWorks Corp. (SolidWorks) pending in the U.S. District Court for the Northern District of California. Autodesk had alleged that SolidWorks inappropriately used its trademarks AutoCAD and DWG in 2008.
However, SolidWorks made counterclaims against Autodesk. SolidWorks is a unit of Dassault Systèmes S.A, a 3D design software maker. To resolve the matter, Autodesk and SolidWorks have each agreed to … [visit site to read more]

BBBY Reports Stronger Q3

Posted: 07 Jan 2010 07:56 AM PST

Bed Bath & Beyond Inc. (BBBY) recently reported better-than-expected third quarter 2009 results with double-digit growth in both the top-line and the bottom-line.
The company's quarterly earnings of 58 cents a share was below the Zacks Consensus Estimate of 62 cents, but was up 71% year-over-year from 34 cents reported in the prior-year quarter.
Net sales for the quarter increased 10.8% to $1.97 billion compared to the prior-year quarter. Comparable same-store sales increased 7.3% from … [visit site to read more]

Immucor Beats Estimates

Posted: 07 Jan 2010 07:40 AM PST

Immucor (BLUD) announced second quarter 2010 earnings per share of 28 cents, which was better than the Zacks Consensus Estimate of 26 cents and the year-ago quarter's 24 cents. Net income for the quarter was $19.7 million, compared with $17.3 million for the same quarter last year.
The company reported $82.6 million in revenues, an increase of 13% from $73 million in the corresponding period last year. The increase in revenues was based on both price and volume contributions, as well as a … [visit site to read more]

Surprise Build In Crude Inventories

Posted: 07 Jan 2010 07:23 AM PST

The U.S. Energy Department’s weekly inventory release showed a surprise build in crude and gasoline stockpiles. The agency's bearish report further added that distillate supplies logged a narrower-than-expected decline, while refinery run-rates also decreased from the previous week.
The federal government's Energy Information Administration (EIA) reported an unexpected 1.3 million barrel rise in crude inventories for the week ending January 1, 2010 (against expectations of a drawdown), as … [visit site to read more]

Pervasive Narrows Guidance

Posted: 07 Jan 2010 12:06 PM PST

Pervasive Software Inc. (PVSW) recently narrowed its guidance for the second quarter. The company now expects revenues to come between $11.5 million and $11.7 million compared to the previous guidance of revenues between $11.0 million and $12.0 million. Earnings per share (EPS) are now projected between $0.06 and $0.07 compared to the earlier projection of $0.05 – $0.08.
 
Pervasive expects to generate $2.3 million of cash flow from operating activities. The company repurchased … [visit site to read more]

Cold Snap In The US Lighting A Fire Under Energy Complex And Agri-Commodities

Posted: 07 Jan 2010 12:01 PM PST

A relentless surge of cold weather is slamming nearly every country in the Northern Hemisphere, disrupting travel, threatening crops and driving energy and commodity prices higher as investors look for ways to cash in.

In the United States, crude oil is trading near a 14-month high. Natural gas and heating oil prices have also surged, as the U.S. shivered under the onslaught of an arctic express that sent temperatures plummeting below zero across two-thirds of the country. Even Florida … [visit site to read more]

The Trade Of The Century

Posted: 07 Jan 2010 12:00 PM PST

When you think about hot commodities right now, you probably don't think of water. Yet the price of water in some parts of the world is rising…sometimes very quickly. Take California, for example.
Mark Swatek is CEO of Southwest Water Co., a water utility that serves California and the Southwestern US. You may accuse him of talking his book when he says: "One of the fastest growing commodity prices is the price of metropolitan water [in Southern California]."
It may be an exaggeration, … [visit site to read more]

Costco Comp Store Sales Up 9%

Posted: 07 Jan 2010 06:47 AM PST

Costco Wholesale Corporation (COST), one of the leading U.S. warehouse club operators, reported December sales of $8.26 billion, up 11% from $7.41 billion in the year-ago period.
Total comparable store sales for the 5-week period ended January 3 were up 9%. Costco posted a 5% comparable store growth in the U.S. and 25% in the International markets. This included a positive impact of rising gasoline prices and a weaker U.S. dollar.
Excluding the above effects, Costco's comparable store sales … [visit site to read more]

Motorola Unveils New Smartphone

Posted: 07 Jan 2010 06:45 AM PST

Motorola Inc. (MOT) yesterday introduced the latest addition to its smartphone portfolio, the BACKFLIP. This device has its keypad at the back, which can fold out rather than slide out. BACKFLIP will combine the social networking and personalization of MOTOBLUR software with the multitasking performance. Motorola will start shipment of this mobile phone in the current quarter. 

After Cliq and Droid, BACKFLIP is the third 3G smartphone of Motorola. All the three phones are using Google … [visit site to read more]

AAR Signs MoA With Sikorsky

Posted: 07 Jan 2010 06:30 AM PST

Yesterday, AAR Corp. (AIR) signed a Memorandum of Agreement (MoA) with Sikorsky Aircraft Corporation under which the two companies will work together to identify opportunities for expanding their business relationship. In addition to becoming an exclusive supplier of composite interiors for the Sikorsky S-92® helicopter program, AAR will provide precision machining services for S-92 helicopter flooring and a structural component of the H-60 helicopter airframe. The combined value of initial … [visit site to read more]

Video: Constellation Brands Pours Out A Loss

Posted: 07 Jan 2010 11:26 AM PST

Constellation Brands announced Thursday that its 3Q profit fell 47% on restructuring costs and weaker wine sales. … [visit site to read more]

Video: Crude Prices Slide On Profit Taking

Posted: 07 Jan 2010 11:24 AM PST

Front month crude prices were on the downside this session as investors believed crude’s recent rally was overdone. … [visit site to read more]

Snapdragon Enters PC World

Posted: 07 Jan 2010 06:15 AM PST

Yesterday Qualcomm Inc. (QCOM) announced that it has entered into an agreement with Hewlett Packard Co. (HPQ), to design a smartbook based on Qualcomm's Snapdragon platform. This smartbook will have Google Inc's (GOOG) Android operating system. The device will use the Snapdragon QSD8250 chipset with an integrated Scorpion central processing unit which will deliver speed up to 1GHz. The device will also support high-speed 3G wireless connectivity together with WiFi … [visit site to read more]

Getting That Vacant Look

Posted: 07 Jan 2010 11:04 AM PST

Many of the government efforts to help the housing market, such as the Fed buying up fully one quarter of all the mortgage-backed securities backed by Fannie Mae (FNM), Freddie Mac (FRE) and Ginnie Mae, as well as the "first time” homebuyer tax credit, are designed to move people from being renters to being owners. But while there are some ancillary benefits to neighborhoods of most people owning rather than renting, it really does not solve the problem.
What it does is cause there to be … [visit site to read more]

Chart Of The Day: Subpar Recoveries Follow Financial Recessions

Posted: 07 Jan 2010 11:01 AM PST

“Economic cycles associated with financial traumas such as banking crises or asset price collapses tend to have deeper downturns and weaker upturns. The current uptrend in US economic growth should be sustained, but the rebound will remain subdued compared to recent recoveries,” said BCA Research.
The chart below illustrates the typical recovery patterns following financial and non-financial recessions respectively. As they say, a picture paints a thousand words … Should the … [visit site to read more]

Parasites, Bureaucracy And Soviet Boots

Posted: 07 Jan 2010 11:00 AM PST

The real economy declines. The parasites multiply. See chart below…
First, a look at the markets:
Stocks went nowhere yesterday. Maybe the feds had taken the day off; MarketWatch charges them with manipulating share prices.
Gold, however, staged a $17 rally. The correction in the gold market may be over. Or it may not. This market has more surprises in store; we're certain of it.
"I think you're wrong about something," begins a letter from a Dear Reader. "You act as though … [visit site to read more]

Thermo Fisher Initiated As Neutral

Posted: 07 Jan 2010 06:00 AM PST

We recently initiated coverage on Thermo Fisher Scientific, Inc. (TMO) with a Neutral recommendation. We rate the stock as Neutral with a target price of $50 based on a P/E of 15.0x our fiscal 2010 EPS estimate of $3.33. 

Thermo Fisher reported third quarter fiscal 2009 earnings per share of 78 cents, surpassing both the Zacks Consensus Estimate and the year-ago earnings of 76 cents. Net sales in the reported quarter declined 2% year over year to roughly $2.5 billion. In terms of … [visit site to read more]

Forex Trading: GBPUSD Back Between The “Goal Post”. To Learn About It, Attend Our Webinar Scheduled For 4:00 PM NYT

Posted: 07 Jan 2010 10:59 AM PST

To register go … [visit site to read more]

Canada Presses UBS For Client List

Posted: 07 Jan 2010 05:41 AM PST

Canada continues to pursue UBS AG (UBS) for the details of Canadian clients who have accounts in the Swiss bank. The Canadian government is negotiating with the Swiss Bank since September last year. However, Canada's Revenue Minister Jean-Pierre Blackburn has warned that, if required, Canada will take UBS to court to extract the details of indigenous clients.
 
Blackburn said on Tuesday that around 96 Canadian clients of UBS have voluntarily disclosed their UBS accounts to Canada's … [visit site to read more]

IRS Plans To Regulate Tax Preparers

Posted: 07 Jan 2010 05:24 AM PST

The Internal Revenue Service (IRS) plans to regulate the U.S tax preparers from the 2011 tax season. This includes mandatory registration, competency testing and continuing education requirements for tax preparers.
 
Tax preparers, such as H&R Block Inc. (HRB) and Jackson Hewitt Tax Service Inc. (JTX) may need to satisfy these requirements.
 
According to the IRS, over 80% of Americans use a tax preparer or tax software for filing their tax returns. The new regulation is … [visit site to read more]

Video: Market Movers: AA, SHLD, BAC, GME, LEN

Posted: 07 Jan 2010 10:08 AM PST

The latest news and information on U.S. stocks that are moving the market. … [visit site to read more]

MetLife Vends $2.5B Notes

Posted: 07 Jan 2010 10:07 AM PST

Yesterday, MetLife Global Funding I, a unit of MetLife Inc. (MET), announced a two-part sale of its notes worth $2.5 billion. The first part includes $1 billion of notes at an issue price of $100, maturing on July 13, 2011. These 18-month floating-rate notes will bear a rate of interest at 3-month Libor rate plus 40 basis points. Interest on the notes is payable quarterly in equal installments, commencing on April 13, 2010.
 
The second part includes $1.5 billion of notes at an issue … [visit site to read more]

11 Corporate Bonds Yielding 8% Or More

Posted: 07 Jan 2010 10:01 AM PST

Given the moderate economic recovery, the outlook for corporate bonds has improved dramatically. On one hand, the rate of defaults initially anticipated during the apocalypse in early 2009 will surely be much lower than feared. Conversely, bond prices have rallied, bringing many double-digit yield opportunities back to earth. However, there are still several recognizable blue-chip names with decent ratings (BBB and better) that exceed 8% yield with the opportunity for upside on the bond … [visit site to read more]

ZymoGenetics Raising Money

Posted: 07 Jan 2010 04:49 AM PST

ZymoGenetics Inc. (ZGEN) recently announced that it will sell 12 million shares of its common stock in a public offering. The underwriters will have a 30-day option to purchase up to a further 1.8 million shares of common stock to cover any over-allotments. The sole manager for the offering is Leerink Swann. The public offering amounts to approximately 17% of ZymoGenetics' total outstanding shares of about 69.3 million as of Oct 30, 2009.
 
The offer, which has not yet been priced by … [visit site to read more]

Video: Dollar Rise Continues Again

Posted: 07 Jan 2010 09:48 AM PST

The US dollar continued to rise this session following an improvement in jobless claims figures. … [visit site to read more]

Ev3 Completes Catheter Recall

Posted: 07 Jan 2010 04:35 AM PST

ev3, Inc. (EVVV) recently completed a voluntary Class I recall of its TrailBlazer Support Catheter. The catheter was recalled as a result of the device cracking near its marker band. ev3 received these complaints from physicians during the initial limited market release of the device in the U.S. The company initiated the recall of these devices from November 2009.
 
ev3 recalled roughly 350 individual catheters and at present has the possession of all the affected units. The company has … [visit site to read more]

Morgan Stanley Wins Lawsuit

Posted: 07 Jan 2010 04:18 AM PST

Morgan Stanley (MS) recently announced that it has won a legal case for breach of contract against its former subsidiary, Discover Financial Services (DFS) along with a compensation amount of about $800 million that the latter owed to Morgan Stanley.
 
The case was filed by Morgan Stanley in 2008 when Discover refused to pay a specified amount to the former as part of their spin-off agreement in 2007. The agreement entitled Morgan Stanley to a share of $1.2 billion from the $2.75 … [visit site to read more]

New Year, New Life?

Posted: 07 Jan 2010 09:17 AM PST

Fundamentals
Gold futures have been steadily climbing over the past three weeks on a reversal in the Dollar and positive economic signs. The precious metal may, however, face pressure if the Fed hints at increasing interest rates, which could bolster the Dollar. Further signs of economic strengthening can be seen as a near-term positive for Gold, as it hints at inflationary conditions. Over the long-term, stronger conditions would likely force the Fed to raise rates on concerns that the low … [visit site to read more]

Cephalon’s Nuvigil Under Pressure

Posted: 07 Jan 2010 09:02 AM PST

Cephalon Inc.'s (CEPH) Nuvigil remains under pressure as yet another generic company is seeking to market a generic version of the drug. Watson Pharmaceuticals, Inc. (WPI) recently confirmed that it has filed an abbreviated new drug application (ANDA) with the US Food and Drug Administration (FDA) seeking approval to market its generic version of four dosage strengths (50 mg, 100 mg, 150mg, 200 mg, and 250mg) of Nuvigil.
 
Watson believes it is first to file on the 100 and 200 mg … [visit site to read more]

Brazil To Benefit From The New Carry Trade?

Posted: 07 Jan 2010 08:46 AM PST

We had more probing higher in the non-dollar currencies only to see the gains wipe away at the end of the day, yesterday. Still, as I told a radio audience in Oregon yesterday, traders, investors, etc. still believe the euro (EUR) is worth more than the dollar by quite a bit… Gold also gave back some gains overnight…
Speaking of the euro… The European Central Bank (ECB) has already shrunk their balance sheet by 9.5%. Talk about being more credible than the Fed… The Fed, on the other … [visit site to read more]

Dynavax Buys Symphony

Posted: 07 Jan 2010 03:44 AM PST

Recently, Dynavax Technologies Corp. (DVAX) completed the acquisition of Symphony Dynamo, Inc. in a stock deal. Under this agreement, Dynavax issued 13 million shares of its common stock to Symphony. The company in return received $20 million in cash as well as rights to its own hepatitis C and cancer treatments held by Symphony. In the event of Dynavax partnering the programs for hepatitis C and cancer therapy, Symphony stands to receive half of the first $50 million received from any … [visit site to read more]

WisdomTree Plans Active Currency ETFs

Posted: 07 Jan 2010 08:32 AM PST

WisdomTree, the New York-based ETF issuer best known for its fundamentally-weighted domestic and international ETFs, is looking to expand its line of currency products. In a recent filing with the SEC, WisdomTree highlighted two new funds that would offer unique exposure to the U.S. dollar.
The first proposed ETF is the WisdomTree Rising Dollar Fund, which would seek to benefit from appreciation in the U.S. dollar relative to a selected basket of non-U.S. currencies. Up to 15 currencies, … [visit site to read more]

New PML Cases For Biogen Drug

Posted: 07 Jan 2010 03:28 AM PST

Biogen Idec Inc. (BIIB) recently announced that 4 more cases of progressive multifocal leukeoencephalopathy (PML), a potentially deadly brain infection, were observed in November in patients taking its multiple sclerosis drug Tysabri.
 
This brings the total number of PML cases to 28. The company will be providing information on additional cases of PML observed in the month of December shortly. Tysabri is the second multiple sclerosis product in Biogen's portfolio and is a major … [visit site to read more]

Australian Dollar: The Bias Remains Bullish

Posted: 07 Jan 2010 08:18 AM PST

Update on supports and resistances. … [visit site to read more]

Canadian Dollar: Caution

Posted: 07 Jan 2010 08:18 AM PST

Update on supports and resistances. … [visit site to read more]

ETP Offers Common Units

Posted: 07 Jan 2010 08:12 AM PST

Energy Transfer Partners L.P. (ETP) – a natural gas and propane gas distributor – priced the public offering of 8.5 million common units at $44.72 per unit, with a 30-day over-allotment option for an additional 1.3 million units. The partnership plans to use the net proceeds from this offering to pay back the outstanding indebtedness under its revolving credit facility, to finance capital expenditures associated with pipeline construction projects, and for general partnership purposes. … [visit site to read more]

Investing In Russia: Steer Clear Of This Debt-Saddled “BRIC” Bully

Posted: 07 Jan 2010 07:58 AM PST

These days, you don't have to look far to read about success stories within the "BRIC" nations.
However, while Brazil, India and China enjoy solid growth, the remaining member – Russia – has fallen to the bottom of the pack.
And with good reason.
Having gained significant investment popularity before the global financial crisis hit, it's no coincidence that Russia began to fall on hard times around the same time that the recession took hold and oil prices dropped from the $140 … [visit site to read more]

Forex Trading: USDCHF

Posted: 07 Jan 2010 07:58 AM PST

Video: Alcoa Gets Downgraded

Posted: 07 Jan 2010 07:53 AM PST

Alcoa (AA) was downgraded this session from buy to hold by Citigroup. … [visit site to read more]

Will Backwardation Boost UNG?

Posted: 07 Jan 2010 07:50 AM PST

In 2009, billions of investor dollars flooded into the United States Natural Gas Fund (UNG) in an attempt to capitalize on an anticipated jump in price as the clean-burning fuel becomes the energy source of the future. Spot gas prices finished the year little changed — down less than 1% — but UNG lost more than half its value, as the complexities of a futures-based strategy ate into returns. Despite seeing more than $5.6 billion in cash inflows, UNG finished 2009 with $4.6 billion in … [visit site to read more]

Video: Asian Markets In The Red

Posted: 07 Jan 2010 07:47 AM PST

In a reversal of yesterdays trading session, each of the major Asian/Pacific markets was in the red today following a decline in domestic banks. … [visit site to read more]

US December Employment Report Preview

Posted: 07 Jan 2010 07:45 AM PST

Each month I draw upon my team’s original research to present a preview for the Payroll Employment Report.  This is not a prediction of the announcement to be made Friday morning.  It is better described as a forecast of the net change in payroll jobs once all of the data revisions are complete.

I’ll start by explaining our approach and then preview some other estimates.

Our Approach

Each month we ask the question, “What change in payroll employment would be consistent with … [visit site to read more]

Microsoft At CES 2010

Posted: 07 Jan 2010 02:43 AM PST

Microsoft Corporation's (MSFT) keynote at the 2010 Consumer Electronics Show (CES) held few surprises. Although management did have announcements in computing, gaming and entertainment, there was no elaboration of the cell phone strategy, which might be discussed next month at the Mobile World Congress in Barcelona.
 
Computing
 
Despite recent rumors regarding a touchscreen mobile computer called the Courier, Microsoft did not highlight the device at the CES. Instead, the … [visit site to read more]

Initial Claims Rise Slightly

Posted: 07 Jan 2010 02:42 AM PST

Initial claims for unemployment insurance rose to 434,000, an increase of 1,000. That, however, comes on the heels of a very large drop last week, and both weeks have some holiday distortions in them.

Given the week-to-week volitility in the numbers, it is best to look at the 4-week moving average. There, the news is significantly better. The 4-week average fell by 10.250 to 450,250. Since the 4-week average is well above the level of this week and last week on the single-week basis, it … [visit site to read more]

Why You Should Expect Small-Caps To Shine (Again) In 2010

Posted: 07 Jan 2010 02:42 AM PST

Thursday, January 7, 2010: Issue #1170
The well-documented, post-recession rally for small-caps is not a sprint. It's more of an endurance test, like a marathon.
But don't just take my word for it. Take a look at the hard data…

On average, small-caps outperform their large-cap neighbors for a full three years coming out of a recession, according to Morningstar.
Coming off particularly nasty slowdowns, small-caps boast even more endurance. For example, after the 1973-1974 recession, … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: HSY, BAC, AA

Posted: 07 Jan 2010 07:38 AM PST

The latest in news, commentary, and information on what’s moving the US equities markets. Watch this broadcast LIVE at 9:30 am EST daily @ “http://www.nyx.com/marketmonitor” … [visit site to read more]

Invesco To Offer 7M Shares

Posted: 07 Jan 2010 02:31 AM PST

Invesco Mortgage Capital Inc. (IVR) said on Wednesday that it intends to commence a public offering of 7 million shares of its common stock.
 
Invesco Mortgage will grant the underwriters a 30-day option to purchase up to 1.05 million additional shares to cover over-allotments.
 
The company intends to use the proceeds from the offering for additional acquisitions of residential and commercial mortgage-backed securities and mortgage loans and other general corporate … [visit site to read more]

“Overdrive” To Drive Sprint 4G

Posted: 07 Jan 2010 02:17 AM PST

Sprint Nextel (S) has confirmed that it will market the new dual-mode (operating on 3G and 4G networks) wireless router called "Overdrive” in the US. Manufactured by Sierra Wireless (SWIR), the device will be available exclusively for Sprint's high-speed wireless customers starting January 10, 2010, for $99.99 after a $50 mail-in-rebate under a two-year service contract. The unlimited 3G/4G data plan will cost $60 per month.    
 
The upcoming 3G/4G router … [visit site to read more]

Forex Trading: EURUSD Continues To Consolidate With A Lower Bias. Bear Flag Eyed.

Posted: 07 Jan 2010 07:04 AM PST

There is more talk of the bear flag forming in the EURUSD.  The bottom trendline comes in at the 1.4273.  A break should be accompanied by additional selling momentum.  Keep the level in mind. 

Off the shorter term 5 minute chart, the price remains with a bearish bias as the price remains below the 100 bar MA on the 5 minute chart. The current level comes in at the 1.4343 after testing the moving average level once this morning in the NY session.  If the price can … [visit site to read more]

CBS Corporation Upgraded

Posted: 07 Jan 2010 02:00 AM PST

CBS Corporation's (CBS) strategic initiatives have helped it to weather the economic downturn. The company has been aggressively selling slow-growth radio stations in mid-sized markets to focus on the large markets that promise real growth. Moreover, the company has been paring its cost structure to protect its shrunken revenue base. 

This has prompted us to upgrade our recommendation on CBS Corporation to Outperform from Neutral with a target price of $16.00. As the company divests … [visit site to read more]

Forex Trading: NZDUSD Testing 100 Hour MA Support

Posted: 07 Jan 2010 01:54 AM PST

The NZDUSD has been rallying for the last 3 or so weeks. During that time the price has been able to track above the 100 hour MA . Over the last 3 days, the price is consolidating and over the last 6 hours the pair is testing this moving average hard. The current 100 hour MA comes in at the 0.7320 level. .  The low for the day comes in at the 0.7312.  These levels are key support. A move below should lead to further downside momentum for the pair with a target being the 38.2% … [visit site to read more]

Sears Surges On Upbeat Guidance

Posted: 07 Jan 2010 01:45 AM PST

 
Sears Holdings Corp. (SHLD) offered upbeat financial guidance for the fourth quarter of fiscal 2009 after reporting growth in December same-store sales driven by Kmart. The company stated that fourth-quarter earnings is expected between $385 million and $465 million, or $3.36 to $4.06 per share, excluding extraordinary items. The guidance is well above the Zacks Consensus Estimate of $2.61 per share derived from 7 covering analysts.

Shares of Sears Holdings have surged more than 13% … [visit site to read more]

MICROS Acquires TIG Global

Posted: 07 Jan 2010 01:45 AM PST

MICROS Systems, Inc. (MCRS) recently announced that it will acquire TIG Global, one of the leading interactive marketing companies. 

Headquartered in Washington, DC, TIG Global serves the online needs of a diverse portfolio of clients located around the world. 

Management stated that TIG Global's leading technology and focus on the hospitality and travel industry makes TIG the ideal partner for MCRS in providing best-in-breed solutions to clients on a worldwide basis. TIG … [visit site to read more]

SunTrust Inflicts Salary Freeze

Posted: 07 Jan 2010 01:30 AM PST

In compliance with the pay restrictions imposed on the company for participating in the Troubled Asset Relief Program (TARP), SunTrust Banks Inc. (STI) said in a regulatory filing on Wednesday that it has put in effect a salary freeze for all of its senior executives except one. 

Atlanta-based SunTrust received federal assistance worth $3.5 billion as part of its participation in TARP during the height of the financial crisis. As a result, like other bailed-out firms, SunTrust's … [visit site to read more]

Stock Market News Briefs: Alcoa Inc., Bank Of America Corporation, Citigroup Inc., Credit Suisse Group, Goldman Sachs Group, Inc. (The), Hewlett-Packard Company, Reynolds American Inc, Sony Corporation, Wells Fargo & Company, Microsoft Corporation, Sun Healthcare Group, Inc.

Posted: 07 Jan 2010 01:20 AM PST

 General Motors’ CEO Whitacre promised the company’s first year of profitability in 2010 following five years of losses

 Microsoft’s (MSFT) CEO Ballmer’s opening address in Las Vegas focused on the company’s touch-tablet from Hewlett-Packard (HPQ), planned for introduction this year

 Sony (SNE) says the US holiday season was better than anticipated, on increased demand for flat-screen televisions, electronic readers and Blu-ray video players

 Sun Healthcare … [visit site to read more]

Swiss Franc: Bullish Bias Above 102

Posted: 07 Jan 2010 06:17 AM PST

Update on supports and resistances. … [visit site to read more]

Japanese Yen: The Upside Prevails

Posted: 07 Jan 2010 06:17 AM PST

Update on supports and resistances. … [visit site to read more]

British Pound: Continuation Of The Rebound

Posted: 07 Jan 2010 06:17 AM PST

Update on supports and resistances. … [visit site to read more]

Euro: The Upside Prevails

Posted: 07 Jan 2010 06:17 AM PST

Update on supports and resistances. … [visit site to read more]

Monsanto Reports A Net Loss

Posted: 07 Jan 2010 01:15 AM PST

Monsanto Company (MON) reported results for the first quarter of 2010, which ended November 30, 2009, and reinstated its full-year guidance. Along with its quarterly earnings results, Monsanto also announced its annual research and development pipeline update. 

Net sales decreased $952 million, or 36% year over year to $1,697 million in the first quarter of fiscal 2010 primarily as a result of decreased sales of glyphosate-based herbicides in Brazil and Europe. Monsanto reported a net … [visit site to read more]

Forex Trading: GBPUSD Consolidates The Days Declines

Posted: 07 Jan 2010 06:07 AM PST

The GBPUSD found the support earlier in the NY session at the 1.5894 and was able to extend above the 100 bar MA on the 5 minute chart (see prior post). However, the upside target at the 1.5957 (38.2% of the move down today held the decline and the price dipped back lower.
Going forward the clues are likely to continue to come from the 100 bar MA at the 1.5930 level. IF the price can stay below, look for a test of the lows at the 1.5895 level. If the price moves above, 1.5957 may be … [visit site to read more]

Sideways Markets, Covered Calls And The Russell 2000 Small Cap Index

Posted: 07 Jan 2010 06:01 AM PST

I had originally thought that I might begin 2010 with a series of articles on covered calls and other ways of using options to generate additional returns during sideways market action. Since several other writers have already jumped on this subject (notably Jeff Opdyke of the Wall Street Journal in Covered Calls Prove Popular Strategy; Mark Wolfinger of Options for Rookies in Writing Covered Calls in 2010; and Adam Warner of Options Zone in When Is the Best Time to Use a Buy-Write?) I … [visit site to read more]

AT&T Joins Android Party

Posted: 07 Jan 2010 01:00 AM PST

AT&T (T), the largest telephone company in the US, has announced its plan to sell devices based on Google's (GOOG) Android platform. The company expects to unveil five new smartphones from handset vendors including Dell (DELL), Motorola (MOT) and HTC in first-half 2010. AT&T will be the first US carrier to market Dell's new "Mini 3″ smartphone.
Android-based smartphones have generated significant buzz in recent times. Although a little late to join the party, AT&T has … [visit site to read more]

AT&T Joins Android Party

Posted: 07 Jan 2010 06:00 AM PST

AT&T's (T) foray into the Android cell phone market is set to begin as the largest telephone company in the US has announced its plan to sell devices based on Google's (GOOG) Android platform. The company expects to unveil five new smartphones from handset vendors including Dell (DELL), Motorola (MOT) and HTC in first-half 2010. AT&T will be the first US carrier to market Dell's new "Mini 3″ smartphone. 

Android-based smartphones have generated significant buzz in … [visit site to read more]
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