Mar 12, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

The Scramble For Africa: Profiting From World’s Largest Cache Of Commodities

Posted: 12 Mar 2010 06:04 PM PST

In the quarter century stretching from the late-1880s to the First World War, there was a mad rush by the world’s leading powers to occupy and annex African territory.  Now, 100 years later, the world’s elite again are scrambling to make their respective marks on the continent.

The methods of extraction have changed, but the end goal remains the same - to gain access to Africa’s coveted bounty of commodities.

Most notably, Chinese interests have swarmed Africa, constructing roads, rail … [visit site to read more]


Out Of Touch With Reality

Posted: 12 Mar 2010 04:51 PM PST

According to many of the “experts,” today’s data on retail sales was unequivocally good news:

“This is a pleasant surprise, especially in the light of the severe winter weather across large parts of the country last month,” said Ian Shepherdson, an analyst at High Frequency Economics….
“Consumers are beginning to come out of their shells,” IHS Global Insight analyst Nigel Gault said. “Today’s data suggests that real consumer spending will rise about 3% in the first quarter, the fastest … [visit site to read more]

Four Ways To Go Short - Part I

Posted: 12 Mar 2010 04:01 PM PST

Today, a closer look at two of the four most popular ways to go short - individual equities and exchange-traded funds (ETFs).

It was Travers who went to the office of a company and asked to be allowed to see the books. The clerk asked him, “Have you an interest in this company?”and Travers answered, “I sh-should s-say I had! I’m sh-short t-t-twenty thousand sh-shares of the stock!”

- Reminiscences of a Stock Operator

Going short - that is to say, taking a position that profits on a … [visit site to read more]

Daily ETF Roundup: MOO, EWJ Surge

Posted: 12 Mar 2010 03:31 PM PST

Most major indexes finished the week rangebound as markets digested conflicting data. Although retail sales increased unexpectedly, weak consumer sentiment and unchanged inventories helped to drag the markets lower and balance out the hopes of renewed consumer spending. "There is a lack of conviction in the markets, everyone is kind of in wait-and-see mode." said Neil Menard, principal at Steben & Co. in Rockville, Md.
The ETFdb 60 Index, a benchmark measuring the performance of asset … [visit site to read more]

Cartoon: Financial Regulatory Reform

Posted: 12 Mar 2010 03:01 PM PST

Source: John Darkow, Comics.com, March 5, … [visit site to read more]

Gold, Silver And Oil: Buying The Essentials In Tough Markets

Posted: 12 Mar 2010 03:00 PM PST

The Money Morning newsletter bills itself as "Essential investment news & insight from MoneyWeek.com" which makes me suspicious right away because of all the times I have been lied to over the years by people telling me that something is "essential", which it seldom is, and it usually turns out to be a code word for, "It's gonna cost ya, buddy!"
Like today, for example, when I am told that it is "essential" that I curtail my frenzied buying of gold, silver and oil this … [visit site to read more]

Potash Boosts MOO, PAGG

Posted: 12 Mar 2010 02:41 PM PST

Agribusiness ETFs got a boost in Friday trading as good news from Potash Corporation of Saskatchewan (POT) helped to lift the sector higher as the week came to a close. The Canadian producer of fertilizer and feed significantly raised its earnings guidance range to $1.30 to $1.50 a share, up from an earlier forecast of 70 cents to $1 a share. The average estimate of 23 analysts in a Bloomberg survey was 93 cents. This bullish outlook boosted the hopes of the industry and sent POT soaring higher … [visit site to read more]

Statoil Gaining Impetus At St Malo

Posted: 12 Mar 2010 02:19 PM PST

Norwegian oil major Statoil ASA (NYSE:STO) has increased its interest in the St Malo development region. St Malo is a major discovery in the ultra-deep waters of the Gulf of Mexico (GoM).
Statoil has exercised its preferential rights on a proposed sale of Devon Energy’s (NYSE:DVN) interest in the development. Following the deal, Statoil’s interest stood at 21.5%.
St Malo is operated by Union Oil Company of California, a subsidiary of Chevron Corporation (NYSE:CVX). The St Malo discovery, commonly known … [visit site to read more]

Pall Corporation Slips

Posted: 12 Mar 2010 02:04 PM PST

Pall Corporation (NYSE:PLL) reported earnings per share from continuing operations of 42 cents for the second quarter of 2010, compared to the Zacks Consensus Estimate of 47 cents. Revenues were $560.4 million, up 3.2% compared to the second quarter of FY 2009. Sales in local currency declined 2.8% year over year.
Segment Highlights
Life Sciences
BioPharmaceuticals sales were $147 million, while Medical sales were $100 million in the quarter.
For BioPharmaceuticals, consumables in the … [visit site to read more]

Biotech ETFs For Any Risk Appetite

Posted: 12 Mar 2010 02:01 PM PST

The biotechnology sector has been hopping around like Tigger lately; mergers and acquisitions dot the space, some stocks are rocketing higher while others are taking a few lumps. This is why biotech exchange traded funds (ETFs) might be a better way to access the sector than picking stocks.

The biotech industry at large may appeal to some of the more conservative investors out there, says Don Dion for The Street. Many of the larger ETFs are taking unique, well-balanced approaches to the … [visit site to read more]

Don’t Mail In Your Gold

Posted: 12 Mar 2010 02:00 PM PST

"What's with all these ads to sell my gold jewelry?" writes a reader "Will I get a good deal on that?"
The short answer: No.
In general, the mail-order gold people are paying about 10-25 cents on the dollar.
We're seeing monetary psychology at work here. It's the feel of cash in hand. We have relatively unsophisticated people sending in "old" jewelry, and they don't know what they have. The mail-order gold buyers are sending back a check, and the crinkle of that check makes … [visit site to read more]

Exxon Raises Outlook

Posted: 12 Mar 2010 01:49 PM PST

In its annual presentation to investment analysts at the New York Stock Exchange, ExxonMobil Corp. (NYSE:XOM) claimed industry-leading results in 2009. The company also asserted that it is well positioned for future growth.
Exxon’s focus for each of its three business segments (Upstream, Downstream and Chemical) remains on investment discipline, operational and technology excellence, the value of integration and on industry leading returns.
Segment Forecast
By segment, Exxon’s results are … [visit site to read more]

Video: NYSE Closing Bell Market Monitor:POT, PFE, SVU

Posted: 12 Mar 2010 01:40 PM PST

The latest in news, commentary, and information on what’s moving the US equities markets. Watch this broadcast LIVE at 4:00 pm EST daily @ “http://www.nyx.com/marketmonitor” … [visit site to read more]

Starwood’s Rating Outlook Stable

Posted: 12 Mar 2010 01:34 PM PST

Yesterday, Fitch Ratings affirmed Starwood Hotels & Resorts Worldwide Inc.’s (NYSE:HOT) ratings. The outlook was revised to Stable from Negative.
Fitch has affirmed the Issuer Default Rating (IDR) at ‘BB+’, $1.875 billion senior unsecured credit facility at ‘BB+’ and $2.7 billion of senior unsecured notes at ‘BB+’.
The affirmation of Starwood's ratings and its outlook revision to stable reflects the improved scenario in lodging. There is a modest recovery in industry demand trends. … [visit site to read more]

Video: Crude Slides On Mixed Economic Data

Posted: 12 Mar 2010 01:25 PM PST

Front month crude prices were on the downside this session following mixed economic data. … [visit site to read more]

GOL Soars Past Estimates

Posted: 12 Mar 2010 01:16 PM PST

GOL Linhas Aéreas Inteligentes S.A. (NYSE:GOL) reported results for the fourth quarter of 2009. During the quarter, net revenues were R$1,617.6 million, up from R$1,548.6 million in the year-ago quarter.
During the quarter, GOL posted operating income of R$119.2 million, with an operating margin of 7.4%, 121.2% up from R$53.9 million and 3.5% margin in the year-ago quarter.
The improvement is a result of the company’s competitive advantages in relation to greater flight frequency between domestic … [visit site to read more]

National Debt History As A Credit Card Statement

Posted: 12 Mar 2010 01:05 PM PST

When your nation completely loses oversight over its financial position… this could be the consequence.
 How are we going to resolve $12 trillion in debt? We're open to your opinions.
 We found this opinion via Jesse Felderin in his post on the country's credit card … [visit site to read more]

Papandreou, Merkel, Juncker = Pandit, Mack, Fuld?

Posted: 12 Mar 2010 01:01 PM PST

Okay, stop me if you’ve heard this one …

You have an entity that took on too much debt. It cooked its books. It failed to get its fiscal house in order. Its “executives” repeatedly refused to take the necessary steps to rein in risk.

But when the LOGICAL consequences occurred - investors began dumping its debt and equities … and driving up the cost of insuring against default risk - what happened? Did officials listen to the message of the markets, apologize, find religion, and try … [visit site to read more]

Smithfield Tops Zacks Consensus

Posted: 12 Mar 2010 12:58 PM PST

Smithfield Foods Inc. (NYSE:SFD) reported results for the third quarter of fiscal 2010 with earnings of 22 cents per share. Earnings were above the Zacks Consensus Estimate of 19 cents and were also up compared to a loss of 75 cents in the prior-year quarter.
Revenues
Net sales for the quarter declined 13.8% year-over-year to $2.9 billion, attributable to declines in three of the five operating segments of the company. The Pork segment contracted 15.1%, Packaged Meat declined 18.3% while the Other … [visit site to read more]

Video: February Foreclosure Filings Post Smallest Increase In 4 Years

Posted: 12 Mar 2010 12:33 PM PST

In the smallest increase in four years, US foreclosure filings rose 6% in February from one year earlier. … [visit site to read more]

Intuit Offers New Product

Posted: 12 Mar 2010 12:30 PM PST

Intuit Inc. (NASDAQ:INTU) recently announced the Intuit Online Payroll for Google Apps (formerly PayCycle).
This online payroll is available to small business owners on the Google Apps Marketplace; Google’s recently launched online storefront for Google Apps products and services.
Intuit Online Payroll will also soon be available on Intuit’s own App Center with Web applications designed for small businesses.
In 2009, Intuit acquired online Payroll services provider PayCycle Inc. for about $170 … [visit site to read more]

ProLogis Leases U.S. Facilities

Posted: 12 Mar 2010 12:08 PM PST

ProLogis (NYSE:PLD), a leading global provider of distribution facilities, recently signed 3 new lease agreements spanning about 174,000 square feet of its development portfolio in the U.S. The continued leasing activities show signs of stabilization in the industrial property market fundamentals after a prolonged recession that pushed down the sector.
About 103,000 square feet were leased to a leading healthcare company in Inland Empire, California. The lessee will occupy the space at ProLogis … [visit site to read more]

Dick Fuld Unaware Of Lehman “Cooking The Books”? It’s Ridiculous And Pathetic

Posted: 12 Mar 2010 12:01 PM PST

Reports that Lehman was effectively 'cooking its books’ prior to its ultimate demise are not a surprise.

Reports that Dick Fuld, then CEO of Lehman, was not aware of the nature of this cooking are both ridiculous and pathetic.

The lifeblood of every financial institution on Wall Street is access to financing for its operations. That financing very often comes in the form of repurchase agreements (repo financing), in which the institution borrows funds while pledging assets. These … [visit site to read more]

The Patsy Revolt Of 2010

Posted: 12 Mar 2010 12:00 PM PST

"Masked youths…attacked the head of Greece's largest trade union, who was addressing the crowd, and hurled stones at the police. GSEE union boss Yiannis Panagopoulos traded blows with the rioters before being whisked away, bloodied and with torn clothes."
The Daily Mail account put the blame for these disturbances on Germany's finance minister, who warned the Greeks that "the German government does not intend to give a cent." At least Bild, a popular German newspaper, was trying … [visit site to read more]

The Sham Recovery

Posted: 12 Mar 2010 11:51 AM PST

Are we finally in a recovery? Who's "we," kemosabe? Big global companies, Wall Street, and high-income Americans who hold their savings in financial instruments are clearly doing better. As to the rest of us – small businesses along Main Streets, and middle and lower-income Americans – forget it.
Business cheerleaders naturally want to emphasize the positive. They assume the economy runs on optimism and that if average consumers think the economy is getting better, they'll empty … [visit site to read more]

Gas Prices Drop On Supply, Weather

Posted: 12 Mar 2010 11:44 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 111 billion cubic feet (Bcf) for the week ended Mar. 5, 2010.
The inventory decline was the 14th in as many weeks. This has finally started to erode the record-high storage amounts, as steady cold weather continued to kick up demand in major gas-consuming regions in the U.S.
Though the heating season … [visit site to read more]

Goldcorp Adjusts Q4 Profits Up

Posted: 12 Mar 2010 11:28 AM PST

Gold mining company Goldcorp's (NYSE:GG) adjusted net profits more than doubled to 25 cents in the fourth quarter of 2009 from 12 cents per share in the year-ago period. Earnings which benefited from high metal prices, were also ahead of the Zacks Consensus Estimate of 24 cents.
For the full year 2009, earnings were $588.2 million or $0.80 per share. Goldcorp was able to keep costs down in an inflationary environment. In the fourth quarter, cash costs were just US$289 an ounce.
On a GAAP basis, … [visit site to read more]

Hyperinflation: Is Black The New White?

Posted: 12 Mar 2010 11:19 AM PST

If Nassim Nicholas Taleb (and others) posit that an outcome once considered extremely rare is increasingly likely, does that mean a certain type of swan has changed its colors? That is, based on the following Bloomberg BusinessWeek report, “‘Black Swan’ Author Concerned About Hyperinflation,” is black the new white?

Nassim Nicholas Taleb, author of "The Black Swan" about how unforeseen events can roil markets, said he is concerned about hyperinflation as governments around the world … [visit site to read more]

Video: Market Movers: ZQK, POT, CF, ARO, PSUN, ABT, GS, MS

Posted: 12 Mar 2010 10:15 AM PST

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

Video: Risk Appetite Strong On Retail Sales

Posted: 12 Mar 2010 10:09 AM PST

Higher-yielding currencies continued to rise this session following stronger-than-expected retails sales figures. … [visit site to read more]

Earnings Preview: Economic Data In Focus Next Week

Posted: 11 Mar 2010 09:00 PM PST

Earnings Preview 3/12/10
Earnings Season is winding down, but that does not mean it is over. Next week will bring 112 earnings reports, but just 5 members of the S&P 500. Some of the higher profile firms to report will be Nike (NYSE:NKE), Cintas (CNTS) and Discover Financial (NYSE:DFS).
Instead of earnings reports, the focus will be on the economic data calendar, which starts out with industrial production, moves on to key housing data and then finally to inflation. In between, we have a … [visit site to read more]
posted by

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)