Feb 18, 2010

Daily Markets - Financial News And Opinions

Daily Markets

Daily Markets - Financial News And Opinions

Will Club Med Sink The Euro?

Posted: 18 Feb 2010 05:01 PM PST

Most predictions fail. That’s what makes them so valuable!

As my fellow editor pointed at in yesterday’s column, militaristic adages abound concerning the accuracy and usefulness of predictions: “Generals always fight the previous war, scientists worry about the next one and sergeants fight the one the politicians started last week.”

I suppose I am a bit of all three: As a historian, I love to study previous campaigns searching for memes - seeds of thought that have grown to become the … [visit site to read more]

Forex Trading: AUDUSD Falls As Well Toward The 200 Hour MA.

Posted: 18 Feb 2010 04:26 PM PST

The AUDUSD has fallen on the back of the Fed Discount rate increase and stands between the Goal Posts as defined by the 100 hour MA and the 200 hour MA.   The 200 hour MA comes in at the 0.8872 now and should be initial profit taking support. The low has reached 0.8887 so far .  The 100 hour MA was broken at the 0 .8952 level and this should now keep the rallies contained.      
Although the Fed was cautious and said the action … [visit site to read more]

Fed Hikes The Discount Rate - Surprisingly Quick

Posted: 18 Feb 2010 04:18 PM PST

The Federal Reserve indicated on February 10th it was going to raise the discount rate 'before long.’ Well, in this case, Ben Bernanke is a man of his word as the Fed just raised the discount rate by 25 basis points (.25%) effective tomorrow.

While many market participants had minimized the potential rise in the discount rate as not being significant, I was not and am not in that camp. In fact, the speed with which Bernanke raised the rate after indicating that he would do so … [visit site to read more]

The Hunter To Become The Hunted? Judge Jed Rakoff, SEC’s Mary Schapiro And Rule 14a-9

Posted: 18 Feb 2010 04:01 PM PST

Judge Jed Rakoff and SEC Head Mary Schapiro

SEC Chair Mary Schapiro is on the front page of almost every major financial periodical for her ongoing pursuit to fine Bank of America (NYSE:BAC) for impropriety in handling its merger with Merrill Lynch.

Recall that the SEC had initially fined Bank of America $33 million last fall for its improper disclosure of Merrill’s financial figures to BofA shareholders prior to the shareholder vote approving the merger of these two financial … [visit site to read more]

National Debt: $12.4 Trillion And Counting

Posted: 18 Feb 2010 03:15 PM PST

We have deficits and debts on the brain today. The federal deficit for the first four months of fiscal 2010 just clocked in at $430.7 billion. That's 8.8% higher than the year-ago figure.
We remember that when the annual deficit hit a record high $430 billion under the second Bush administration, we thought the world was going to end and we'd have to "buy guns, ammo, dry goods, go into hiding, cling to God and wait for the country and the rest of world to collapse."
The national debt … [visit site to read more]

Forex Trading: USDJPY Moves Toward The 200 Day MA Resistance Level

Posted: 18 Feb 2010 03:09 PM PST

The level comes in at the 92.30 level.  Look for profit taking sellers against the level with stops on a break above next targeting the high from December and January at the 93.14 and 93.77 levels respectively.  On the downside, look for buyers at 91.64.  A move back below the 91.41 level will not be welcomed by the USDJPY … [visit site to read more]

Daily ETF Roundup: JJC Continues Surge, UNG Slides

Posted: 18 Feb 2010 03:08 PM PST

All eyes were on Ben Bernanke Thursday, as the Federal Reserve announced an increase in the federal funds rate from 0.50% to 0.75%. The widely-expected move comes as Washington looks to unwind the unprecedented stimulus programs enacted to prop up an ailing financial sector in recent years. "Like the closure of a number of extraordinary credit programs earlier this month, these changes are intended as a further normalization of the Federal Reserve's lending facilities," the Fed said in a … [visit site to read more]

Should You Do Forex Trading On Your Own Or With Some Automated Help?

Posted: 18 Feb 2010 03:01 PM PST

One of the most interesting developments in retail FX trading over the past 12 months has been the growth in the usage of automated trading systems (or algorithms). Indeed, trades generated by automated systems grew significantly in 2009, representing almost 20 percent of dbFX’s customer flows.
As the name suggests, automated trading systems (which can be bought over the internet and plugged into a forex trading platform) use complex algorithms to produce automated trading signals and help … [visit site to read more]

Noble Slumps, Reserves Strong

Posted: 18 Feb 2010 02:59 PM PST

Noble Energy Inc. (NYSE:NBL) posted adjusted earnings per share of $1.01 for the fourth quarter, below the Zacks Consensus Estimate of $1.04 and last year's earnings of 91 cents.

The better-than-expected results in the quarter were driven by increased sales volumes and reduced costs compared to previous quarters and the year-ago period. For the full year 2009, adjusted net income was $3.37 per share, below the Zacks Consensus Estimate of $3.39 and last year's earnings of $7.05.

Consolidated … [visit site to read more]

Forex Trading: Bearish Flag Break In GBP/USD

Posted: 18 Feb 2010 02:47 PM PST

Price action on GBP/USD, a daily chart of which is shown, has tentatively broken down below an inverted flag pattern consolidation within the context of an overall parallel downtrend channel that has been in place since the mid-November highs. This tentative flag break hints at continued potential bearishness in the pair in line with the prevailing downtrend.

As of Thursday (2/18/2010), the low that was reached on the flag breakdown approached strong established support in the 1.5550 price … [visit site to read more]

El Paso Extends Pipeline Project

Posted: 18 Feb 2010 02:44 PM PST

Tennessee Gas Pipeline Company, a wholly owned subsidiary of El Paso Corporation (NYSE:EP) entered into a 20-year agreement with Chesapeake Energy Marketing, Inc., a wholly owned subsidiary of Chesapeake Energy Corporation (NYSE:CHK) and StatOil Natural Gas LLC, a wholly owned subsidiary of StatOil (NYSE:STO), for 100% of the capacity for its Northeast Upgrade Project.

This pipeline project extends the natural gas distributor’s presence in the growing Marcellus Shale play. The $400 million Northeast … [visit site to read more]

Merge Remains At Underperform

Posted: 18 Feb 2010 02:33 PM PST

We recently reiterated our Underperform rating on Merge Healthcare Incorporated (NASDAQ:MRGE) with a target price of $2.20, based on a P/E multiple of 10.0x our fiscal 2010 EPS estimate of 22 cents.

Merge recently reported fourth quarter and full fiscal 2009 results. For the fourth quarter, earnings per share reached 2 cents, in line with the Zacks Consensus Estimate but lower than the year-ago earnings of 3 cents. For fiscal 2009, earnings per share were 9 cents, substantially higher than the … [visit site to read more]

Money Supply Flood To Drown US Economy

Posted: 18 Feb 2010 02:27 PM PST

I can tell you the exact date (Saturday, February 13, 2010) that I saw that TheDailyBell.com had a "guest Editorial" by Dr. Ron Paul, who I admire because he is the only Senator in Congress whose economic philosophy is the Austrian school of economics, which, in fractured German, is "ein Austrian economischer", which I purposely use to paraphrase John Kennedy, who famously said, "Ich bin ein Berliner", which actually translates from German as "I am a cream-filled pastry", but … [visit site to read more]

Montpelier Re Beats Estimate

Posted: 18 Feb 2010 02:21 PM PST

Montpelier Re Holdings Ltd. (NYSE:MRH) reported fourth quarter earnings of $1.12 per share, well ahead of the Zacks Consensus Estimate of 70 cents. The company had earned 67 cents in the year-ago quarter.

The performance was driven by strong underwriting results and lower catastrophic activity. The company also experienced solid performances in its newer underwriting platforms — Syndicate 5151 and MUSIC — which helped offset lower premium earned in the Bermuda segment.

However, including … [visit site to read more]

Forex Trading: Stochastic Hints Rally In GBP/JPY

Posted: 18 Feb 2010 02:20 PM PST

4H: The price action this week has been contained in a rising channel and looked poised to rally from the 139.0 support area, which it broke temporarily, but did not confirm. (Refer to Daily Video Technical Update 2.16.2010; last pair).
The stochastic can provide a helpful hint IF it can stay above 50. Otherwise, a weaker hint would be a failure to get to oversold zone, preferably above 30 or 40.
Price action right before might night EST, showed a 2-bar reversal signal. The market … [visit site to read more]

Forex Trading: EURUSD Moves Closer To The 61.8% Longer Term Target Level

Posted: 18 Feb 2010 02:18 PM PST

The EURUSD has moved down to test the 61.8% retracement level at 1.3483.  The low reached 1.3485.  With the negative bias, the balance may be tipped to the downside but the holding of the level could solicit a short covering bid of some sort.  However please note a break of the key support level should solicit additional selling momentum. SO be aware.
On the topside look for resistance at the 1.3531/37 level now. The bears, who are in control would likely look to sell … [visit site to read more]

Forex Trading: GBPUSD Breaks Below 1.5556 And 2010 Low At 1.5533

Posted: 18 Feb 2010 02:10 PM PST

The last time the market was at these levels was in May 2009. During that time the low consolidation period extended from 1.5448 to 1.5515 before moving higher.  
Longer term, the GBPUSD will next target 1.5272 where the 50% of the 2009 low to high range comes in. 

ON the topside, the 1.5533 level and 1.5556 will of course be levels to watch.   A break back above these low levels will not be … [visit site to read more]

Humana To Reduce Workforce

Posted: 18 Feb 2010 02:09 PM PST

Humana Inc. (NYSE:HUM) announced recently that it intends to reduce its workforce by approximately 5% (1,400 jobs on a net basis) in 2010 due to a reduction in enrollment. Jobs will be cut through a combination of attrition, process efficiencies, outsourcing and position eliminations.

On a gross basis, the insurance giant intends to cut 2,500 jobs nationwide in 2010. However, during the course of the year the company intends to add about 1,100 jobs in areas such as medical cost containment … [visit site to read more]

Obama To Boost U.S. Nuclear Industry With $8 Billion Federal Loan Guarantee

Posted: 18 Feb 2010 02:01 PM PST

U.S. President Barack Obama gave the long-suffering U.S. nuclear industry a solid boost this week when he announced $8 billion in government loan guarantees in support of a new nuclear power plant in Georgia.

The move is intended to reduce usage of fossil fuels and meet America’s future energy needs. It could also provide new profit opportunities for energy-sector investors.

“I know it has long been assumed that those who champion the environment are opposed to nuclear power,” President … [visit site to read more]

How Emerging Market ETFs Offer A New Way To Invest In Commodities

Posted: 18 Feb 2010 02:00 PM PST

The proliferation of commodity ETFs has brought this "fourth asset class" within reach of more investors than ever before. But as many have learned the hard way, resource fundamentals are only one of the factors that impact many exchange-traded commodities, and the nuances of the futures market often have a more significant impact than changes in spot prices. Most ETF investors looking for commodity exposure do so in one of two ways: 1) physically-backed or futures-based commodity products … [visit site to read more]

Natural Resource Partners Tops

Posted: 18 Feb 2010 01:54 PM PST

Natural Resource Partners L.P. (NYSE:NRP) reported fourth quarter net income attributed to limited partners of 39 cents per unit, well above the Zacks Consensus Estimate of 26 cents and third quarter net income of 36 cents.

The increase was mainly due to higher revenues. However, quarterly net income declined from 56 cents posted in the year-ago period. For the full year 2009, the partnership reported earnings of $1.17 per unit, below the Zacks Consensus Estimate of $1.32 and year-ago earnings of … [visit site to read more]

Video: NYSE Closing Bell Market Monitor: WMT

Posted: 18 Feb 2010 01:51 PM PST

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

Federal Realty Reports Modestly

Posted: 18 Feb 2010 01:40 PM PST

Federal Realty Investment Trust (NYSE:FRT), a leading real estate investment trust (REIT), reported fourth quarter 2009 FFO (funds from operations) of $60.1 million or $0.98 per share, compared to $58.6 million or $0.99 per share in the year-earlier quarter.

For full year 2009, Federal Realty reported FFO of $211.1 million or $3.51 per share compared to $228.4 million or $3.85 per share in the previous year. Both the quarterly and fiscal 2009 FFO figures included non-recurring charges due to a … [visit site to read more]

Windstream Beats, Profit Slips

Posted: 18 Feb 2010 01:26 PM PST

Windstream Corp (NYSE:WIN), a leading rural telecom carrier, reported operating results for the fourth quarter with adjusted earnings per share (EPS) of 25 cents, exceeding the Zacks Consensus Estimate of 20 cents while matching the year-ago adjusted EPS.

Adjusted EPS excludes one-time items such as restructuring charges, merger and integration costs and a non-cash pension expense. For full-year 2009, adjusted EPS of 95 cents also beat the Zacks Consensus Estimate of 83 cents.

Reported net … [visit site to read more]

#China - China Could Fall Into A Great Depression

Posted: 18 Feb 2010 01:17 PM PST

By Dan Ferris

It’s official: Buying the cheapest assets you can find is where you make the biggest, safest, easiest money as an investor.

What made it “official” to me was a just-completed study by one of the greatest living investors. The investor is Jeremy Grantham. His firm Grantham, Mayo, Van Otterloo, manages over $100 billion.

Grantham recently published the results of a 10-year forecast he made for the period from December 31, 1999, to December 31, 2009. In 1999, Grantham predicted … [visit site to read more]

Apache Meets Zacks View

Posted: 18 Feb 2010 01:13 PM PST

Apache Corp. (NYSE:APA) reported in-line fourth-quarter results, driven by increased volumes, particularly in its Egyptian operations. Earnings per share, excluding one-time items, came in at $1.96, the very same as the Zacks Consensus Estimate. On a year-over-year basis, Apache's adjusted earnings per share more than doubled (from 82 cents to $1.96), while revenue was up 31.9% to $2.6 billion.

Healthy Volume Growth

The production of oil and natural gas averaged 589,799 oil-equivalent barrels … [visit site to read more]

Ventas’ Quarterly FFO Improves

Posted: 18 Feb 2010 01:01 PM PST

Ventas Inc. (NYSE:VTR), a leading healthcare real estate investment trust (REIT), reported fourth quarter 2009 funds from operations (FFO) of $104.0 million or $0.66 per share compared to $97.6 million or $0.68 per share in the year-earlier quarter.

Funds from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and other non-cash expenses to net income.

For full year 2009, Ventas reported FFO of $393.4 million or $2.58 per share, compared … [visit site to read more]

An Olympic-Caliber Foreclosure Performance

Posted: 18 Feb 2010 01:00 PM PST

Smack dab in the middle of the Olympics the wheels of foreclosure were turning at the exclusive Whistler Blackcomb resort, the home of this year's ski events. However, the resort's management Intrawest, and its owner, Fortress Investment Group, have been able to delay the actual foreclosure auction until February 26th, still two days prior to the closing ceremony, and still plenty embarrassing.
According to The Globe and Mail:
"Fortress and Intrawest have been in talks with lenders since … [visit site to read more]

Gentiva’s 4Q Revenues Up

Posted: 18 Feb 2010 12:49 PM PST

Gentiva Health Services Inc. (NASDAQ:GTIV) reported fourth-quarter (ended January 3, 2010) income from continuing operations (excluding non-recurring transaction profits and special charges related to restructuring and merger and acquisition activities) of 63 cents per share, as opposed to 41 cents in the year-ago period. The Zacks Consensus Estimate for the fourth quarter of 2009 was 54 cents.

Quarterly Results

Total net revenues for the quarter came in at $310 million, as against $267.3 million … [visit site to read more]

Chesapeake Beats On Volumes

Posted: 18 Feb 2010 12:36 PM PST

Chesapeake Energy Corporation (NYSE:CHK) reported better-than-expected fourth quarter results driven by strong production volumes and reduced costs. Quarterly earnings were 77 cents per share, compared to the Zacks Consensus Estimate of 69 cents and year-earlier quarter earnings of 75 cents. Before adjusting for one-time items, its loss per share was 84 cents.

Estimate Revisions Trend

With improving production numbers, we see a positive trend in estimate revisions. For the last 30 days, 9 of the … [visit site to read more]

Phase Forward To Buy Back Shares

Posted: 18 Feb 2010 12:23 PM PST

Phase Forward Inc. (NASDAQ:PFWD) announced that its Board of Directors has authorized the repurchase of an additional $25 million of its common stock. The program is expected to be completed by Dec 31, 2010.

Earlier, Phase Forward completed the previously announced $40 million share repurchase program. The company expects to use cash on hand and cash generated from operations to fund repurchases of its common stock. Phase Forward exited 2009 with cash and equivalents of $135.5 million.

Earlier … [visit site to read more]

Alexza Upgraded To Outperform

Posted: 18 Feb 2010 12:11 PM PST

In a research report posted today by Senior Biotechnology Analyst, Jason Napodano, CFA, the recommendation on Alexza Pharmaceuticals (NASDAQ:ALXA) was upgraded from Neutral to Outperform.

In the report, Napodano writes, "We believe the odds favor approval for AZ-004 in October 2010. The device has the potential to create a significant market for the rapid and non-invasive treatment of acute agitation. We believe Alexza has an ideal partnership with Biovail for the commercialization of AZ-004, and … [visit site to read more]

Traffic Lifts Darden’s Expectations

Posted: 18 Feb 2010 12:09 PM PST

Darden Restaurants, Inc. (NYSE:DRI), one of the world's largest casual dining restaurant operators, recently lifted its earnings guidance on the heels of improving sales trends and traffic.
 
The owner of the Red Lobster and Olive Garden chains said that it now expects fiscal year 2010 earnings per share to rise between 5% and 8% from $2.65 delivered in fiscal year 2009. This translates into a profit range of $2.78 to $2.86 per share for fiscal 2010. Currently, the Zacks Consensus Estimate … [visit site to read more]

Government Bond Market Just A Ponzi Scheme

Posted: 18 Feb 2010 12:00 PM PST

Let's face it, the government-bond market in the West is a gigantic Ponzi scheme. Most governments in the 'developed' world are drowning in debt, they are running mind-boggling budget deficits and printing money like there is no tomorrow. Furthermore, under the guise of quantitative easing, their central banks are buying their own newly issued debt!
It is our contention that similar to Mr. Madoff's hedge fund, the sovereign debt markets in the West have now become gigantic scams. Only … [visit site to read more]

ConAgra’s Outlook Improves

Posted: 18 Feb 2010 11:53 AM PST

Recently, ConAgra Foods, Inc. (NYSE:CAG) discussed its key strategic priorities and also announced its current financial outlook.
 
ConAgra expects fiscal 2010 EPS to be $1.73, compared to an EPS of $1.42 in fiscal 2009. Annual sales growth is expected in the range of 3% to 4% over the long term and annual EPS growth is expected in the range of 8% to 10%. Return on Invested Capital is expected between 13% and 14% over the long term.
 
ConAgra also approved a $500 million share … [visit site to read more]

Earnings Preview For ANADIGICS

Posted: 18 Feb 2010 11:37 AM PST

ANADIGICS (NASDAQ:ANAD) is expected to report its fourth quarter 2009 results later today.

Management expects revenues to grow by 5% to 8% sequentially in the fourth quarter. This implies a revenue guidance of $38.5 million – $39.6 million.

The company earlier planned a two-week shutdown at the year end of 2009, which should lower factory utilization in the fourth quarter as compared to the third quarter. This will in turn negatively impact gross margins on a sequential basis.

Net loss per … [visit site to read more]

Invesco Downed To Underperform

Posted: 18 Feb 2010 11:21 AM PST

We are downgrading our recommendation on Invesco (NYSE:IVZ) to Underperform from Neutral.
 
Invesco's fourth-quarter earnings came in at 25 cents per share, 3 cents short of the Zacks Consensus Estimate of 28 cents. However, this compares favorably with the earnings of 8 cents in the prior-year quarter. The year-over-year increase in Invesco's earnings was due primarily to a 17.9% increase in operating revenues, partially offset by a 6.8% increase in operating expenses.
 
Though the … [visit site to read more]

Stock Buy: Manhattan Associates, Inc.

Posted: 17 Feb 2010 09:00 PM PST

Manhattan Associates, Inc. (NASDAQ:MANH) recently rebounded from a key trend line after reporting better than expected Q4 results that included an 8% earnings surprise as the company’s business improved with a stronger economy.
Company Description
Manhattan Associates, Inc. develops and sells supply chain software solutions for a wide range of industries worldwide. The company was founded in 1995 and has a market cap of $551 million.
Fourth-Quarter Results
Manhattan’s Q4 results on Feb 2 demonstrate … [visit site to read more]
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