Feb 24, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

Options Trading Update: Continental Airlines, Schlumberger, Yamana Gold, Autodesk, Netflix, Juniper Networks

Posted: 24 Feb 2010 11:18 AM PST

(NYSE:CAL) - Continental Airlines, Inc. - A staunchly optimistic CAL-options investor made alterations to a previously established bull-call position today as shares of the underlying stock edged 0.70% lower during the first half of the session to $19.77. It looks like the trader originally purchased 20,000 calls outright at the March $20 strike back on September 1, 2009, for approximately $1.00 to $1.10 per contract when Continental’s shares were trading around $12.50 each. The airline’s shares … [visit site to read more]

Global Energy Outlook: Getting Worse Before It Gets Better

Posted: 24 Feb 2010 11:15 AM PST

Markets in the US ended yesterday's session in the red. The Dow was off by 100 points, or around 1%. The broader S&P 500 fell a bit harder, down 1.3% at the close. Gold slipped, too. The yellow metal sunk below the $1,100 mark and now trades for about $1,095 per ounce. Oil gained a smidge, to just shy of $80 a barrel.
What do these single day data points tell us? On their own, probably not much. Put together…still not much. Stick your nose close enough to the computer screen and pretty … [visit site to read more]

Mutual Funds: Top JP Morgan Funds

Posted: 24 Feb 2010 11:11 AM PST

One of the most respected investment managers in the world, JPMorgan has more than $1.2 trillion worth of assets under management. Widely known as a leading financial management firm, it is also the fourth-largest mutual fund firm in the U.S. and manages well over 100 mutual funds, as well as separately managed accounts and retirement products. It also prides itself on being the leading provider of market neutral funds in the domestic market. JP Morgan has also pioneered the introduction of … [visit site to read more]

L-3 Targets Insight

Posted: 24 Feb 2010 11:08 AM PST

L-3 Communications Holdings Inc. (NYSE:LLL) entered into an agreement to acquire Insight Technology Inc. Insight develops and manufactures mission critical night vision and electro-optical equipment including laser aiming and illumination devices, laser rangefinders, laser markers and designators, night vision goggles and monoculars, and thermal imaging systems. 

Headquartered in Londonderry, New Hampshire, Insight employs approximately 1,100 people. Insight's products are used by the … [visit site to read more]

Obama Targets Insurers With $950 Billion Health Care Reform Plan

Posted: 24 Feb 2010 11:01 AM PST

Health insurance providers are protesting this week as the government comes a step closer to strengthening its industry regulation by calling for new “common sense” practices.

This latest development in U.S. President Barack Obama’s push for health care reform occurred Monday when the White House released a sprawling $950 billion proposal in anticipation of tomorrow’s (Thursday’s) scheduled summit.

Obama’s plan, which combines the respective reform bills of the Senate and the House … [visit site to read more]

Donnelley Beats, Acquires Bowne

Posted: 24 Feb 2010 10:52 AM PST

R.R. Donnelley & Sons Company (NYSE:RRD), a leading provider of integrated communications and printing solutions, reported fourth quarter 2009 results that beat the Zacks Consensus Estimate by 3 cents.
The challenging economic environment impacted RRD's end-market demand and forced the company to lower prices in fiscal 2009. However, the company now expects demand to stabilize and even strengthen in future quarters. As a result, the company expects revenue growth in fiscal 2010.
Earnings
The … [visit site to read more]

Haemonetics Receives Approval

Posted: 24 Feb 2010 10:51 AM PST

Haemonetics Corp. (NYSE:HAE) recently received the U.S. Food and Drug Administration (FDA) approval for its expanded nomogram to collect two Red Blood Cells on the Cymbal Automated Blood Collection System from female donors. The donors are identified as those who weigh at least 150 pounds and measure 63 inches in height.
 
Cymbal is a battery operated instrument that automates blood collection from volunteer donors. This improves process control and helps alleviate blood shortages.
 
We … [visit site to read more]

Video: Market Movers: ZLC, HRB, RCL, ADSK, BUCY

Posted: 24 Feb 2010 10:47 AM PST

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

Ameriprise Upped To Outperform

Posted: 24 Feb 2010 10:34 AM PST

Given the current market recovery factor and valued growth indicators, we are upgrading our recommendation for the shares of Ameriprise Financial Inc. (NYSE:AMP) to Outperform from Neutral. Although the current economic turmoil has weakened growth and the operating leverage of organizations across the financial industry, we believe that once the economy rebounds, it will also have a substantial positive effect on the earning power of the company.
 
Ameriprise's fourth-quarter earnings per … [visit site to read more]

Government Growth Does Not Equal Economic Growth

Posted: 24 Feb 2010 10:30 AM PST

A couple of years ago, we used to get such a kick out of making fun of the financial industry. Its pretensions were absurd and shocking. Its delusions were breathtaking. Its leaders were lunkheads and grifters.
But the financial industry blew itself up in 2007-2009. Now, what do we have?
The government! Doing all the same things…making the same mistakes (only worse)…and working hard to blow itself up.
"Basically, it's over…" says Charlie Munger. Warren Buffett's partner figures … [visit site to read more]

Video: Risk Aversion Continues On Weak Home Sales

Posted: 24 Feb 2010 10:25 AM PST

Following a steep decline in US new home sales data, risk aversion continued to strengthen amongst investors. … [visit site to read more]

Textron Gets Marine Contract

Posted: 24 Feb 2010 10:17 AM PST

Textron Marine & Land Systems, an operating unit of Textron Systems, a Textron Inc. (NYSE:TXT) company, and Granite Tactical Vehicles Inc., has won a contract to deliver 3 upgraded High Mobility Multipurpose Wheeled Vehicles (HMMWVs) to the United State Marine Corps Warfighting Lab for testing.
 
The upgraded HMMWVs are scheduled for delivery in March 2010 for mobility, thermal and durability performance testing. Textron Marine & Land Systems and Granite Tactical Vehicles have teamed … [visit site to read more]

The Bottomless Lie: One Example Of How Wall Street – And Its Regulators – Screw You At Every Possible Junction

Posted: 24 Feb 2010 10:08 AM PST

"This is half-baked justice at best," US District Judge Jed Rakoff wrote earlier this week in disgust. He had just signed off on a "paltry" deal between the Securities and Exchange Commission and Bank of America. The SEC sought punitive damages on behalf of BofA shareholders, rightfully accusing the bank of lying to its investors before, during, and after its 2008 merger with Merrill Lynch. Bank of America executives did not disclose the details of the Merrill deal with shareholders – … [visit site to read more]

TowerJazz Initiated: Outperform

Posted: 24 Feb 2010 10:02 AM PST

TowerJazz is a pure-play semiconductor wafer foundry with two IC plants in Israel and one in California that manufacture SiGe, MEMS, RF, embedded flash-based memory, analog/mixed-signal, and CMOS image-sensor devices.
Revenue for the third quarter reached an all-time high and December guidance is for 26% sequential growth on the top-line against an industry average growth of 4%.
Tower Semiconductor (NASDAQ:TSEM) appears to be hitting its stride as the firm has solidified itself in the specialty … [visit site to read more]

Forex Trading: EURUSD Moves Toward Key Support Between 1.3531 And 1.3539

Posted: 24 Feb 2010 10:01 AM PST

The EURUSD is coming under pressure but approaches key support at the 1.3531/39 area. This level has been discussed earlier and represents the low level from Feb 12th and Feb 18th before breaking lower.  Today the level has held in the NY session.  Look for profit taking buying against the level by traders, with a break leading to lower levels  The low for London came in at 1.3414.  The low for the  the day comes in at the 1.3502 and this would be a target levels on a … [visit site to read more]

It’s All Greek To Me

Posted: 24 Feb 2010 10:01 AM PST

If the global economy were a three ring circus, then the center ring attraction would be the currency and debt battle quietly and slowly building between the United States and China. But for the past month the world’s attention has been distracted by a much more entertaining sideshow in which European unity, and the ongoing viability of the euro, is being tested by the Greek debt crisis.

I believe the short-term problems in Europe are being overblown and the potential demise of the euro … [visit site to read more]

Allscripts Remains At Neutral

Posted: 24 Feb 2010 09:46 AM PST

We recently reiterated our Neutral rating on Allscripts-Misys Healthcare Solutions, Inc. (NASDAQ:MDRX) with a target price of $18.50 based on a P/E multiple of roughly 32.5x our fiscal 2010 EPS estimate of 57 cents. 

Allscripts reported second quarter fiscal 2010 earnings per share of 14 cents, compared to the Zacks Consensus Estimate of 13 cents and the year-ago earnings of 14 cents. 

Total revenues in the second quarter increased 31.6% year over year to $169.3 million. Non-GAAP … [visit site to read more]

Nicor Beats, Earnings Surge

Posted: 24 Feb 2010 09:39 AM PST

Gas distributor Nicor Inc. (NYSE:GAS) reported better-than-expected fourth quarter results, reflecting improved operating income in the company's gas distribution and other energy-related businesses on the back of higher rates and cost control. This was partially offset by lower operating income in its shipping business.
Earnings per share came in at $1.21, 21 cents above the Zacks Consensus Estimate and 16 cents above the prior-year period. However, revenue was down more than 26% year-over-year … [visit site to read more]

Video: Toll Brothers 1Q Loss Narrows

Posted: 24 Feb 2010 09:36 AM PST

The slow recovery of the housing market has helped luxury homebuilder Toll Brothers (TOL) post a narrower fiscal 1Q loss. … [visit site to read more]

Forex Trading: GBPUSD Testing Trendline, Below 100 Hour MA

Posted: 24 Feb 2010 09:33 AM PST

The GBPUSD remains in between support from the trendline at the 1.5414 area and the 100 hour MA on the topside at hte 1.5465.  The market is non-trending and the pattern suggests a break is forthcoming.  Be aware. Be prepared.  A break of the trendline still has close support at the low for the dayat 1,5395, but this will become a target to get through. Below that the low from Friday at the 1.5353 becomes a target level.
On the topsdie the 1.5447 level and the 100 hour MA … [visit site to read more]

Jacobs Wins $38.7M Contract

Posted: 24 Feb 2010 09:31 AM PST

Recently, Jacobs Engineering Group Inc. (NYSE:JEC) was awarded a contract by the Space and Naval Warfare Systems Command (SPAWAR) headquarters in San Diego, CA.
 
SPAWAR designs, develops and deploys advanced communications and information capabilities, and provides much of the tactical and non-tactical information management technology required by the Navy to complete its operational missions. The contract, awarded under the Naval Sea System’s Command Seaport-e contract vehicle, has an … [visit site to read more]

Cracker Barrel Earnings Soar

Posted: 24 Feb 2010 09:29 AM PST

Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL), a family-dining restaurant chain, recently posted better-than-expected second-quarter 2010 results on the heels of menu price increases, lower food and labor costs, and 'Seat to Eat' initiative.
The quarterly earnings of $1.09 per share surpassed the Zacks Consensus Estimate of 90 cents, and soared 34.6% from 81 cents delivered in the prior-year quarter. The quarterly earnings topped the Zacks Consensus Estimate by 21.1%. Cracker Barrel's … [visit site to read more]

TJX Companies Tops Estimates

Posted: 24 Feb 2010 09:21 AM PST

The TJX Companies Inc. (NYSE:TJX) reported results for the fourth quarter of 2010 with earnings of 94 cents per share. Earnings were well above the Zacks Consensus Estimate of 60 cents per share and were up a 104% year-over-year.
Net sales for the quarter grew 10.4% year-over-year to $5.9 billion. Consolidated comparable store sales increased 12% for the quarter. The company's segments both in the U.S. and International reported positive sales and comparable store sales growth.
The company's … [visit site to read more]

Fed Funds Rate Hike

Posted: 24 Feb 2010 09:17 AM PST

Last week the Federal Reserve hiked the discount rate. In this analysis, TL looks at Wall Street’s and the market’s expectations going forward, and what tighter monetary policy will mean for equities.

To get this brief (2 page) report, please click here.

Thanks … [visit site to read more]

CSN Acquires Cimpor

Posted: 24 Feb 2010 09:16 AM PST

Companhia Siderurgica Nacional (NYSE:SID) through its indirect subsidiary CSN Cement S.a.r.l. has announced the final results of the tender offer to acquire up to all of the shares issued by Cimpor - Cimentos de Portugal, SGPS, S.A. (Cimpor) pursuant to the terms and conditions set forth in the prospectus, dated Dec 18, 2009. 

On Dec 18, SID announced the launch of a public offer for the acquisition of 100% of the 672 million shares representing the capital stock of Cimpor, whose shares are … [visit site to read more]

HCN Forms JV With Forest City

Posted: 24 Feb 2010 09:01 AM PST

Health Care REIT Inc. (NYSE:HCN), a real estate investment trust (REIT) that operates senior housing and health care real estate, has recently formed a joint venture with Forest City Enterprises Inc. (FCE.A), a premier real estate company in the U.S., to purchase a $668 million life sciences campus in University Park in Cambridge, MA. 

According to the terms of the deal, Health Care REIT would acquire a 49% stake in Forest City’s seven life sciences buildings adjacent to the Massachusetts … [visit site to read more]

New Americas Bloc To Exclude US, Canada

Posted: 24 Feb 2010 09:00 AM PST

In the latest sign of diminished US influence, the countries of the Americas and Caribbean have united to create a bloc sidestepping the Organization of American States (OAS) and expressly excluding the US and Canada.
For over 50 years, the US-based OAS has been the main body for resolving regional issues and promoting its interests. The times are a-changing…
According to the Irish Times:
"It is the latest example of a decade-long drive within the Americas to deepen continental integration … [visit site to read more]

New Home Sales Plunge

Posted: 24 Feb 2010 08:53 AM PST

We got some very bad news today on the Housing front. New Home Sales fell to a seasonally adjusted annual rate of 309,000 from 348,000 in December. That is a drop of 11.2%.
The only real silver lining is that the December number was revised upwards from 342,000. The rate was even 6.1% below the extraordinarily depressed level of a year ago when New Home Sales were running at an annual rate of 329,000.
How low was it? The lowest of all time, or at least as far back as records are kept (1963). … [visit site to read more]

Earnings Preview For TriQuint

Posted: 24 Feb 2010 08:46 AM PST

TriQuint Semiconductor, Inc. (NASDAQ:TQNT) is expected to report results for the fourth quarter of 2009 later today. 

Last month, TriQuint upgraded its guidance for the fourth quarter. The company expects revenues of around $190 million, up from the previous guidance of $175 million to $185 million. The increase in guidance was due to increased demand during the holiday season. 

In October 2009, management had warned that a Korean handset manufacturer was making a material adjustment in … [visit site to read more]

Microchip Ups Offer For SSTI

Posted: 24 Feb 2010 08:31 AM PST

Microchip Technology Inc. (NASDAQ:MCHP) has raised its acquisition offer for Silicon Storage Technology, Inc. (NASDAQ:SSTI). 

Under the revised terms, SST shareholders would be entitled to receive $3.00 per share in cash. Microchip earlier announced that it will acquire SSTI for $2.85 per share in cash or about $275 million in cash. 

Microchip proposed the revised terms in response to a competing offer from a private equity firm. The revised offer of $3.00 per share represents an approximate … [visit site to read more]

Wilmington Begins Stock Offering

Posted: 24 Feb 2010 08:16 AM PST

In order to increase capital and enhance its liquidity, on Feb 22, 2010, Wilmington Trust Corp. (NYSE:WL) announced the beginning of the public offering of its 18,875,000 shares that have been underwritten on its common stock. At $13.25 per share, the gross total stock offering is valued at about $250 million. 

For this, Wilmington has appointed J.P. Morgan Securities Inc., a wing of JPMorgan & Chase Co. (NYSE:JPM) and Keefe, Bruyette & Woods Inc. as the book-running … [visit site to read more]

Dollar Falters Overnight On Interest Rate Speculation

Posted: 24 Feb 2010 07:00 AM PST

It can be a struggle to find things to write about when the markets aren't moving much. That has been the case with the currency markets over the past few days, as the dollar has been trading in a fairly tight range. It felt like the dollar had the possibility to break out of this range yesterday, as we got a couple of different reports that looked to push the dollar higher.
Tuesday started off with the dollar moving higher versus the euro (EUR) as a result of the drop in German business … [visit site to read more]
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