Daily Markets - Financial News And Opinions

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• A Follow Up On UK’s Negative Outlook: “Britain’s AAA-Rating Is Highly At Risk”
• Mutual Funds: Top 3 Convertible Funds
• A.M. Best Affirms RNR Ratings
• Forex Trading: AUD/USD Looking Like A Double Top Forming At 0.9193
• Twin Setbacks For Pfizer
• Family Dollar To Outperform
• Harry Markopolos’ Unfinished Madoff business
• Swiss Franc: The Upside Prevails
• Australian Dollar: Rebound Expected
• Canadian Dollar: Under Pressure
• Japanese Yen: Rebound
• British Pound: The Upside Prevails
• Euro: Rebound Expected
• Optimer Loss Narrows
• Wendy’s/Arby’s Eyeing CKE
• Stock Market News Briefs: Aeropostale Inc, Goldman Sachs Group, Inc. (The), Morgan Stanley, National Semiconductor Corporation, Pall Corporation
• Label Expansion For Botox
• Forex Trading: EUR/USD Moves Higher Into Major Resistance
• New Banking Regulations Nothing But A Thin Veil To Further Enrich Banking-Sector Executives
• Picture Of The Day: US Consumers Hold Back Growth
• Treasury Sells Signature Warrants
• Forex Trading: GBP/USD Breaks Above Formation - Pushed Higher
• Bear Of The Day: ATS Medical, Inc. (ATSI)
• Stock Buy: Lululemon Athletica, Inc.
• Bull Of The Day: Skechers U.S.A. (SKX)
• Stock Buy: HSN Inc.
• Stock Buy: Tiffany & Co.
• Stock Buy: American Italian Pasta Company

A Follow Up On UK’s Negative Outlook: “Britain’s AAA-Rating Is Highly At Risk” Posted: 12 Mar 2010 07:11 AM PST In our post Forget UK! we have indicated the reasons why we believe it is unsafe investing in UK asset classes now. A reminder of negative UK economic outlook came today from a Telegraph article that reported words from Kornelius Purps, Unicredit ’s fixed income director. He said ”I am becoming convinced that Great Britain is the next country that is going to be pummelled by investors”. He also said “Britain’s AAA-rating is highly at risk. The budget deficit is huge at 13pc of GDP … [visit site to read more]

Mutual Funds: Top 3 Convertible Funds Posted: 12 Mar 2010 07:08 AM PST Investors looking for a steady flow of income as well as protection from the market fluctuations would do well to consider convertible securities. In the recent past, such instruments have generated better returns than broad equity market indices during periods of market volatility. In addition, they also provide an income stream from equity categories, which do not usually offer the same, such as technology. However, the cost involved in putting together a portfolio of these securities may be … [visit site to read more]

A.M. Best Affirms RNR Ratings Posted: 12 Mar 2010 07:03 AM PST On Thursday, rating agency A.M. Best Co. affirmed the issuer credit rating (ICR) of "a-” and all debt ratings of RenaissanceRe Holdings Ltd. (NYSE:RNR), reflecting the company's superior risk-based capitalization level and historically excellent underwriting track record.   The rating agency has also affirmed the financial strength rating (FSR) and ICR of "A+” (Superior) and "aa-”, respectively, of RenaissanceRe's subsidiaries Renaissance Reinsurance Ltd. (RenRe) and Renaissance … [visit site to read more]

Forex Trading: AUD/USD Looking Like A Double Top Forming At 0.9193 Posted: 12 Mar 2010 06:57 AM PST The AUD/USD appears to be having challenges breaking above the 0.9193 as a double top forms. The pair has been in a bullish trend since late February, 2010. The pair has only been below the 200 Hour moving average once in that entire time so the bias remains bullish for the time being, however, the pair may move to test the 100 Hour moving average in the near term (blue line 0.9134). Below that the 200 Hour MA (green line) comes into focus at 0.9087. Key resistance levels on the top side are … [visit site to read more]

Twin Setbacks For Pfizer Posted: 12 Mar 2010 06:46 AM PST In a major setback for the company, Pfizer (NYSE:PFE) has had to discontinue a final stage study. It was evaluating the effectiveness of a combination of an investigational compound figitumumab with erlotinib for the second/third-line treatment in previously treated patients for non-small cell lung cancer (NSCLC).   The decision to discontinue the study was taken following the recommendation from an independent Data Safety Monitoring Committee (DSMC). The committee was of the opinion that … [visit site to read more]

Family Dollar To Outperform Posted: 12 Mar 2010 06:30 AM PST We recently upgraded our recommendation on Family Dollar Stores, Inc. (NYSE:FDO), the operator of self-service retail discount stores in the United States, to Outperform from Neutral with a target price of $40.00.   Despite a sluggish macro economic environment, Family Dollar's strategic initiatives to improve the merchandising, marketing, and store operations have resulted in sustained growth in the top and bottom lines.   The effective price management, cost containment, tighter … [visit site to read more]

Harry Markopolos’ Unfinished Madoff business Posted: 12 Mar 2010 06:21 AM PST Madoff hunter Harry Markopolos talks with David Weidner about how the SEC has fared since the Ponzi scheme was uncovered, and about what kind of regulatory role he would accept in … [visit site to read more]

Swiss Franc: The Upside Prevails Posted: 12 Mar 2010 06:18 AM PST Update on supports and resistances. … [visit site to read more]

Australian Dollar: Rebound Expected Posted: 12 Mar 2010 06:18 AM PST Update on supports and resistances. … [visit site to read more]

Canadian Dollar: Under Pressure Posted: 12 Mar 2010 06:18 AM PST Update on supports and resistances. … [visit site to read more]

Japanese Yen: Rebound Posted: 12 Mar 2010 06:17 AM PST Update on supports and resistances. … [visit site to read more]

British Pound: The Upside Prevails Posted: 12 Mar 2010 06:17 AM PST Update on supports and resistances. … [visit site to read more]

Euro: Rebound Expected Posted: 12 Mar 2010 06:17 AM PST Update on supports and resistances. … [visit site to read more]

Optimer Loss Narrows Posted: 12 Mar 2010 06:15 AM PST Optimer Pharma's (NASDAQ:OPTR) fourth quarter loss per share came in at 28 cents, narrower than the Zacks Consensus Estimate of a loss of 34 cents and the year-ago loss of 31 cents. For 2009, the company reported a loss per share of $1.30 compared to a loss of $1.24 in 2008. Optimer does not have any marketed products at present. It derives revenues primarily from research grants and collaborative agreements. The company reported revenues of $0.2 million, an increase of 62% compared to the … [visit site to read more]

Wendy’s/Arby’s Eyeing CKE Posted: 12 Mar 2010 06:00 AM PST According to a recent report in the New York Post, Nelson Peltz's Trian Fund Management, the owner of Wendy's/Arby's Group Inc. (NYSE:WEN) is looking to acquire CKE Restaurants Inc. (NYSE:CKR).   Atlanta-based, Wendy's/Arby's Group is considering a bid of $1 billion for CKE Restaurants, the operator of Carl’s Jr. and Hardee’s fast food chains.   Earlier, in February 2010, CKE agreed to a buyout offer from Boston, Massachusetts-based, private equity investment firm Thomas H. Lee … [visit site to read more]

Stock Market News Briefs: Aeropostale Inc, Goldman Sachs Group, Inc. (The), Morgan Stanley, National Semiconductor Corporation, Pall Corporation Posted: 12 Mar 2010 05:52 AM PST  Aeropostale (NYSE:ARO) posted fourth quarter earnings after the close, which were below Zacks estimates of $1 at 99 cents on a 16.1% rise in revenues to $801 million versus estimates of $794 million. The firm also announced a 3-for-2 stock split and an increase in fiscal first quarter guidance  National Semiconductor (NYSE:NSM) reported a fiscal third quarter earnings and revenue beat after the close.  The company reported earnings of 22 cents, versus Zacks estimates of 18 cents as … [visit site to read more]

Label Expansion For Botox Posted: 12 Mar 2010 05:45 AM PST Allergan, Inc. (NYSE:AGN) recently received good news with the US Food and Drug Administration (FDA) granting approval to Botox for the treatment of increased muscle stiffness in the elbow, wrist and fingers in adults with upper limb spasticity.   The FDA approval comes after the company submitted additional data following the receipt of a complete response letter from the agency in May 2009.   Botox was originally developed for the treatment of certain ophthalmic movement disorders, … [visit site to read more]

Forex Trading: EUR/USD Moves Higher Into Major Resistance Posted: 12 Mar 2010 05:41 AM PST The EUR/USD moveed higher after breaking above the trendline near 1.3680, and climbed into major resistance at 1.3799. This is the 50% retracement level from the move seen on the daily chart. The pair is likely to have challenges with getting above this key level. Looking at the daily chart, the level becomes clear. The longer term resistance level is seen at 1.3799, which is the 50% retracement level from the move up on March 3, 2010 to the high in November 2009. This will be a critical … [visit site to read more]

New Banking Regulations Nothing But A Thin Veil To Further Enrich Banking-Sector Executives Posted: 12 Mar 2010 05:40 AM PST U.S. banks, drunk with greed, drove the nation’s economy to the brink of financial Armageddon. To save U.S. banks from losing their license to dangle the nation’s economy over a cliff, the U.S. Federal Reserve and the country’s elected elite threw them a bailout party and gifted them with the accounting- world’s version of “Transformers. ” Unfortunately, new banking regulations aimed at solving these problems are little more than the same old song and dance that forced the bailout - and … [visit site to read more]

Picture Of The Day: US Consumers Hold Back Growth Posted: 12 Mar 2010 05:33 AM PST An interesting chart comes from the Consumer Metrics Institute (via Clusterstock - Chart of the Day) that constructs a US consumption index based on actual transactions data for a range of major discretionary purchases such as cars, houses, durable goods, and vacations. Although the time series is rather short, the “Daily Growth Index” usually leads changes in US GDP (see chart below). Based on the historical relationship, the Index would seem to indicate slower GDP growth ahead. This … [visit site to read more]

Treasury Sells Signature Warrants Posted: 12 Mar 2010 05:30 AM PST The Treasury announced Thursday that it has received net proceeds of $11.2 million from the sale of warrants it obtained as part of its investment in New York-based Signature Bank (NASDAQ:SBNY) through the Troubled Asset Relief Program (TARP) during the height of the financial crisis. In Mar 2009, Signature had repaid the entire $120 million of bailout money it had received from the government in Dec 2008.   The Treasury auctioned 595,829 warrants at $19.00 each. The final price was above the … [visit site to read more]

Forex Trading: GBP/USD Breaks Above Formation - Pushed Higher Posted: 12 Mar 2010 05:15 AM PST Overnight and into the start of the US session, the GBP/USD has broken the top side of the pennant formation (1.5050.) The pair is now holding above the 100 Hour & 200 Hour MA's, against the the 38.2% retracement level near 1.5176. The Fibonacci is calculated from the high on Feb 17th, 2010 (1.5814) to the low on March 1, 2010 (1.4782.) The pair will need to break thru the 38.2% level to signal a move higher, with a next target level of 1.5298, which is the 50% retracement level of the … [visit site to read more]

Bear Of The Day: ATS Medical, Inc. (ATSI) Posted: 11 Mar 2010 09:00 PM PST ATS Medical, Inc. (NASDAQ:ATSI) is one of the leading players in the mechanical heart valve market in the world. While mechanical heart valves are still growing in international markets, demand for this product is declining in the U.S. markets where tissue valves are more in favor. We believe overseas markets will eventually adopt this trend, as well. Therefore, the company has started increasing its presence in the tissue valve market, and expanding its offering of complementary products has fueled … [visit site to read more]

Stock Buy: Lululemon Athletica, Inc. Posted: 11 Mar 2010 09:00 PM PST Lululemon Athletica, Inc. (NASDAQ:LULU) recently hit a new 52-week high as investors look for the company to build on its recent string of earnings surprises with its March 25, Q4 results. Company Description Lululemon Athletica, Inc. designs, manufactures and sells athletic apparel for men and woman in the United States, Australia and Canada. The company sells its products through its own 100 plus stores and third-party distributors, has a market cap of $2.36 billion and was founded in … [visit site to read more]

Bull Of The Day: Skechers U.S.A. (SKX) Posted: 11 Mar 2010 09:00 PM PST Skechers U.S.A. (NYSE:SKX) is well positioned to benefit through a sustained focus on new products, opening of new retail stores and distribution channels, and a multi-brand strategy. A healthy balance sheet and in-demand inventory position it to capitalize on future growth opportunities. Further, the company’s international business provides an enormous second leg of growth, in our opinion. The company’s domestic wholesale business also regained its lost momentum. With strong sales growth and … [visit site to read more]

Stock Buy: HSN Inc. Posted: 11 Mar 2010 09:00 PM PST HSN, Inc. (NASDAQ:HSNI) shares are surging on the latest earnings report. However, rising estimates are keeping valuations in check. Company Description HSN, Inc. is a retailer that operates several television stations to sell directly to customers. Products can also be purchased online, through catalogs or at brick and mortar locations. Crushed Estimates On Mar 3 HSN reported fourth-quarter results that showed an 8% increase in sales, to $840 million. Net income came in at just over $39 million. … [visit site to read more]

Stock Buy: Tiffany & Co. Posted: 11 Mar 2010 09:00 PM PST Tiffany & Co. (NYSE:TIF) has beaten the Zacks Consensus Estimate for the last five quarters by an average of 22.7%. Company Description Tiffany & Co. is a jeweler and specialty retailer that designs, manufactures, and sells an extensive selection of jewelry as well as timepieces, sterling silverware, china, crystal, stationery, fragrances, and accessories. The Zacks Rank #1 stock has a dividend yield of 1.5%. Recent Results On January 12, Tiffany reported that worldwide sales increased 17% … [visit site to read more]

Stock Buy: American Italian Pasta Company Posted: 11 Mar 2010 09:00 PM PST American Italian Pasta Company (AIPC) has seen earnings jump as more consumers stay home to eat during the recession. AIPC has surprised on the Zacks Consensus Estimate 4 quarters in a row by an average of 21.05%. Company Description American Italian Pasta produces dry pasta under 10 consumer brands in the United States, including Golden Grain, Pennsylvania Dutch and Mrs. Grass, to name a few. It has 4 plants located in Missouri, South Carolina, Arizona and Italy. It also provides pasta to … [visit site to read more]

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