Mar 23, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

Buy This Precious Metal That Will Outperform Gold

Posted: 23 Mar 2010 05:40 PM PDT

Here’s a fact about precious metals that no one is paying attention to: Platinum metal, its stocks and its ETF will outperform gold. Yes, we all know all the attention that gold is getting due to the global currency printing presses and serious concerns of inflation. But the best you can do with gold is wear it or store it. Not with platinum. Platinum has other important “industrial” uses that add to its investment appeal.

Platinum is more rare than gold, more expensive than gold, has more … [visit site to read more]


The Outlook For Emerging Market Stocks

Posted: 23 Mar 2010 05:01 PM PDT

With investors’ risk appetite emboldened by the prospects of an economic recovery, emerging-market equities (+104.0%) have outperformed mature-market equities (+73.3%) by a considerable margin since the commencement of the cyclical bull market in early March 2009. But these numbers camouflage the fact that the past six months have been characterized by essentially a sideways movement in relative performance. This raises the question as to how investors should place their bets over the … [visit site to read more]

Higher Lobbying Costs For Southwest

Posted: 23 Mar 2010 04:06 PM PDT

In the fourth quarter of 2009, Southwest Airlines Co. (NYSE:LUV) spent $180,000 to lobby, higher than the $40,000 spent in the fourth quarter 2008. Its lobbying expenditure for 2009 was $690,000.
The airline is lobbying on issues relating to the use of personal wireless devices and laptop computers during flights. In addition to this, the company lobbied on aviation security, infrastructure, climate change, taxes and other issues. In the fourth quarter last year, the airline spent to lobby … [visit site to read more]

Cartoon: Renminbi - Guaranteed Undervalued!

Posted: 23 Mar 2010 04:01 PM PDT

Source: John Sherffius, Comics.com, March 17, … [visit site to read more]

Earnings Scorecard: Deere & Co.

Posted: 23 Mar 2010 03:52 PM PDT

Earnings Release
A month back, Deere & Company (NYSE:DE) reported results for the first quarter of fiscal 2010. Earnings were $243.2 million or 57 cents per share, up from $203.9 million or 48 cents in the year-ago period. Reported EPS was much above the Zacks Consensus Estimate of just 19 cents.
With respect to earnings surprises, Deere's track record in the preceding four quarters has been positive. It produced an average positive earnings surprise of 158.88% over the last four quarters, … [visit site to read more]

Abbott Completes Starlims Buyout

Posted: 23 Mar 2010 03:39 PM PDT

Abbott Labs (NYSE:ABT) recently completed the acquisition of Starlims Technologies Ltd. for $123 million.
Starlims is a leading provider of laboratory information management systems. It improves the reliability of laboratory sampling processes, supports compliance with domestic and international regulations and industry standards, and provides comprehensive reporting, monitoring and analysis capabilities. The software is used to manage laboratory testing.
We believe this acquisition will help … [visit site to read more]

Inhibitex Pipeline Moves Forward

Posted: 23 Mar 2010 03:23 PM PDT

Phase II FV-100 Trial Progressing as Planned
On January 11, 2010, Inhibitex (NASDAQ:INHX) announced that the independent Data Safety Monitoring Board (DSMB) met, as scheduled, in early December 2009 to review the 30-day follow-up data on the first quartile of patients enrolled in the company's ongoing phase II clinical trial of FV-100.
Based upon its review, the DSMB unanimously recommended that the trial should continue, as originally designed, without modification. Although the data is only from … [visit site to read more]

Thompson Creek Metals Company (NYSE:TC) – What The Insider Selling Tells Us

Posted: 23 Mar 2010 03:15 PM PDT

Thompson Creek (NYSE:TC), the Toronto-based molybdenum mining company with operations in Canada and the US, has seen increased insider selling in February and March. To get a better sense of what this may mean for the company we turn to Chris Mayer, research editor of the Agora Financial newsletter Mayer's Special Situations.
On business in Leon, Nicaragua, here's his latest assessment:
"I have noted the insider selling. I don't like it. I'd rather not see that. However, insider selling … [visit site to read more]

GM Focuses On Brazil

Posted: 23 Mar 2010 03:10 PM PDT

General Motors (GM) has revealed its plan to invest R$1.4 billion ($770 million) to modernize and expand the Sao Caetano do Sul and Mogi das Cruzes plants in the Sao Paulo state of Brazil . The expansion, which includes two new models that will be produced for the Brazilian and the international markets, will refresh the Chevrolet production line.

In fact, GM is pursuing a plan from 2008 that will increase production capacity and refresh its Chevrolet models in Brazil . The plan entails an … [visit site to read more]

Canadian Quarterly Employment Trends With Anna Montesano Of Robert Half International

Posted: 23 Mar 2010 03:02 PM PDT

On March 8, 2010, Robert Half International released their first Professional Employment Report. The report is a quarterly executive survey focusing exclusively on professional-level hiring.

The survey indicated that 15% of employers surveyed plan to add staff in the coming three months in professional occupations, such as accounting, finance and information technology (IT). While, 86% per cent of executives interviewed expressed confidence in their companies’ prospects for growth in … [visit site to read more]

CONSOL Buys CXG Stakes

Posted: 23 Mar 2010 02:50 PM PDT

Coal and natural gas company, CONSOL Energy Inc. (NYSE:CNX), has entered into an agreement to buy 9.5 million shares of CNX Gas Corporation (NYSE:CXG) from stockholders represented by T. Rowe Price Associates (NASDAQ:TROW).

CONSOL Energy currently owns 83.3% of CNX Gas' 151 million outstanding shares. The coal and natural gas company has agreed to pay $38.25 per share for the remaining 9.5 million CNX shares, representing roughly 37% of the stake.

Under the agreement, CONSOL Energy has agreed to … [visit site to read more]

GSK Vaccine Temporarily Suspended

Posted: 23 Mar 2010 02:30 PM PDT

The US Food and Drug Administration (FDA) recently announced the temporary suspension of GlaxoSmithKline's (NYSE:GSK) rotavirus vaccine, Rotarix, as it is contaminated by porcine circovirus 1 (PCV-1).

The virus was detected by the company itself as well as an independent research team. Glaxo said that PCV-1 does not multiply in humans and has not been known to cause illness in humans. Moreover, the virus is present in everyday meat products and has not been seen to cause any harm. While the FDA … [visit site to read more]

Exelon’s PECO Raises Capital Plan

Posted: 23 Mar 2010 02:10 PM PDT

PECO Energy Company, a subsidiary of Exelon Corporation (NYSE:EXC), announced that it has allocated $500 million for capital investments in 2010 to develop facilities and make other operational improvements, such as creating energy efficiency programs.

The increased capex reflects about a 25% increase over last year with $42 million more for construction of new electric and gas facilities to modernize utility equipment and meet increased demand in certain areas, $22.7 million for smart meter … [visit site to read more]

What Is The S&P Homebuilders ETF (XHB) Pricing In?

Posted: 23 Mar 2010 02:01 PM PDT

I last week posed the question “Is real estate rolling over?” in a post including fairly bearish commentary from Robert Cambell’s Campbell Real Estate Timing Letter.  I also included a chart of the SPDR S&P Homebuilders ETF  (XHB) - ticking all the boxes of a cyclical bull market - and pondered on whether the stock market was getting it wrong.
Here is the chart again:

Source: StockCharts.com
David Rosenberg, chief economist and strategist of Gluskin Shedff & Associates, … [visit site to read more]

Economic Zombies Shuffle Toward Bankruptcy

Posted: 23 Mar 2010 02:00 PM PDT

Zombies Take Over US Health Care!
"Obama assures his place in history," says the editorial in today's Financial Times.
Poor fellow. He'll be remembered as the guy who let the zombies loose on the US health care industry. It wasn't a very good industry even before passage of the reform bill. Not because of the doctors and nurses; they're as competent as other professions. But they're forced to work under appalling conditions – with lawyers, lobbyists and regulators on their … [visit site to read more]

Video: NYSE Closing Bell Market Monitor: KBH, TGI, AET

Posted: 23 Mar 2010 01:55 PM PDT

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]

AXIS Capital Prices Senior Notes

Posted: 23 Mar 2010 01:50 PM PDT

AXIS Capital Holdings Ltd. (NYSE:AXS) has priced a $500 million offering of senior notes last Thursday. The 5.875% senior notes are due 2020. The notes were offered by its indirect, wholly owned subsidiary, AXIS Specialty Finance LLC. The company intends to use the proceeds for general corporate purposes.
 
A.M. Best Co. has assigned a debt rating of "bbb+” to the senior notes. The senior notes are fully and unconditionally guaranteed by AXIS Capital. The outlook assigned is … [visit site to read more]

BorgWarner Sees Robust China Growth

Posted: 23 Mar 2010 01:45 PM PDT

BorgWarner Inc. (NYSE:BWA) expects that it will be able to sustain its 2000−2009 compound annual sales growth of 45% till at least 2014 in China . This was driven by the government’s policy aimed at promoting the automotive sector.

In 2009, China's auto sales surpassed that of U.S. by growing 45% to 13.6 million units, driven by government incentives such as sales tax and interest rate cuts as well as subsidies to trade in older cars. A faster economic recovery has also helped the world's … [visit site to read more]

Video: Crude Prices Post A Slight Rise

Posted: 23 Mar 2010 01:43 PM PDT

Front month crude prices posted a slight rise this session as rising equity prices clashed with a strengthening dollar. … [visit site to read more]

Motorola Unveils Smart Walkie-talkie

Posted: 23 Mar 2010 01:33 PM PDT

Motorola Inc. (NYSE:MOT) has introduced the world's first walkie-talkie device based on Google Inc's (NASDAQ:GOOG) Android operating system. Named as "Motorola i1″, this handset will also be the world's first push-to-talk Android-powered smartphone for the Integrated Digital Enhanced (iDEN) Network. The i1 will feature a 3.1-inch touch screen, Web surfing software, Wi-Fi capability and a 5-megapixel camera.
Nationwide, Sprint Nextel Corp. (NYSE:S) will be the carrier partner for Motorola i1. … [visit site to read more]

Competing To Be The Greatest Fools

Posted: 23 Mar 2010 01:21 PM PDT

There’s plenty of crazy things going on in this market, but the mad dash to buy retail stocks in the face of 20 percent underemployment (and no real sign of any change in hiring plans), still rising delinquencies and foreclosures, an explosion of adjustable-rate mortgage resets, historically high household debt ratios, $80 per barrel oil, and anecdotal and other evidence that consumers are embracing “the new frugality,” must surely be near the top of the list, no?
Maybe they’re just … [visit site to read more]

Perry Ellis Tops, Outlook In Line

Posted: 23 Mar 2010 01:17 PM PDT

Perry Ellis International Inc. (NASDAQ:PERY) swung to a fiscal 2010 fourth-quarter net income of $8.5 million from a net loss of $21.6 million in the prior-year quarter. Excluding special items, adjusted earnings per share came in at 67 cents, which topped the Zacks Consensus Estimate by 8 cents or 13.6%.
 
Perry Ellis is a designer, distributor and licensor of a broad line of high quality men’s and women’s apparel, accessories, and fragrances. The company’s collection of dress and casual … [visit site to read more]

Gallup: Mid-March Underemployment Reaches 20%

Posted: 23 Mar 2010 01:15 PM PDT

Gallup, the polling and research firm, determines underemployment by including both unemployed Americans and those working part-time but who would prefer to be doing full-time work. As the graph below indicates, Gallup research now shows underemployment still trending higher… now reaching 20 percent.

 
According to Gallup.com:
"Gallup's data suggest that while the U.S. unemployment rate has declined over the past month, the employment gains may be largely taking the form of new … [visit site to read more]

Economic Effects Of Health Care Reform: Insurance Costs With Pre-existing Conditions

Posted: 23 Mar 2010 01:01 PM PDT

This begins a series of posts about the recently adopted health care reform, a subject I have not discussed on this blog so far.  I will not be ranting about how wise or stupid the bill is.  If you want to hear me rant, buy me a martini.  As long you keep buying, I’ll keep ranting.  Instead, I want to cover the effects that businesses will face.

Today’s topic is health insurance cost impacts due to the access provisions.  The new bill mandates “immediate access to insurance for … [visit site to read more]

Harris Wins Public Safety Deal

Posted: 23 Mar 2010 01:00 PM PDT

Harris Corp. (NYSE:HRS) received an order from Miami-Dade County, Florida, to upgrade the county's public safety and public service communications system as part of an overall communications project. The total order size is $100 million. Harris will provide 800 MHz radio communications system including radio terminals for the county to comply with FCC's new re-banding mandate.
The Public Safety and Professional Communications business of Harris develops communications systems and equipment for … [visit site to read more]

Live From Investment U: Contrarian Investment Advice You Won’t Find Anywhere

Posted: 23 Mar 2010 12:49 PM PDT

Tuesday, March 23, 2010: Issue #1222
All good things must come to an end.
And in San Diego, the twelfth Investment U Conference was a very good thing.
It was a remarkable week for both the speakers and 300+ attendees alike, who got five days worth of powerful, contrarian investment advice that you simply won't find anywhere else.
Here are the highlights from the final day…
Why You Should Invest in Emerging Markets… And This Latin American Powerhouse
In yesterday's report, I covered … [visit site to read more]

Video: AT&T Announces New Smartphone Deals & Packages

Posted: 23 Mar 2010 12:44 PM PDT

AT&T Incorporated announced Monday that it will soon start selling three new high-end smart phones while announcing a new bundle targeted at customers who use cell phones rather than land lines. … [visit site to read more]

Cogo Announces Design Win

Posted: 23 Mar 2010 12:44 PM PDT

Cogo Group Inc. (NASDAQ:COGO) has bagged embedded solution design wins within the deployment of China Mobile’s new Packet Transmission Network ("PTN”).
 
Cogo already has PTN solution design wins with several leading domestic telecom equipment manufacturers.
 
PTN is China Mobile’s next-generation technology based on Internet Protocol ("IP”) and will replace the operator’s existing SONET network. It is designed to address the continued increase of data traffic by removing bottlenecks … [visit site to read more]

Pall Corporation Wins Order

Posted: 23 Mar 2010 12:27 PM PDT

Pall Corporation (NYSE:PLL) has been awarded an order by the National Renewable Energy Laboratory ("NREL”) to develop critical filtration and separation processes for a U.S. Department of Energy advanced biofuels project.
 
Pall will engineer and exhibit the science and the separation technology necessary to enable fungible biomass-based fuels to be incorporated into the existing hydrocarbon fuels infrastructure.
 
The company will be on a technical tie-up for each of six processes … [visit site to read more]

Really Paying Off–Not

Posted: 23 Mar 2010 12:24 PM PDT

Sounds like all the money the U.S. government threw at the auto industry, including the Cash-for-Clunkers scheme, is really paying off, especially now that the economy is on the well on the road to recovery:

“Shoppers Likely to Buy Used for Their Next Vehicle Purchase, According to CarMax Survey”

More Americans say they will buy a used car once their current vehicle is no longer running, according to a recent telephone survey conducted for CarMax, Inc. (NYSE:KMX), the nation's largest … [visit site to read more]

Will Uncle Sam Screw Up The Delivery Of Healthcare?

Posted: 23 Mar 2010 12:15 PM PDT

Sifting through all of the pros and cons of healthcare reform, I strongly believe the greatest fear for the majority of Americans is that Uncle Sam will screw up the delivery of healthcare itself. Healthcare is the equivalent of the third rail for Americans. Uncle Sam can go ahead and touch almost every other aspect of our lives, but when it comes to our health and access to our physicians, now that is truly personal.

Can Uncle Sam deliver? I guess it is possible, but regrettably … [visit site to read more]

OSG Offers Senior Notes

Posted: 23 Mar 2010 12:12 PM PDT

Moving ahead with its debt restructuring strategies on Monday, Overseas Shipholding Group Inc. (NYSE:OSG) announced the issue of $300 million aggregate principal amount of senior notes, due 2018, taking the public offering route. For this, the company has appointed Citigroup Global Markets Inc., a wing of Citigroup Inc. (NYSE:C), Morgan Stanley (NYSE:MS) and HSBC Securities (USA) Inc., a division of HSBC Holdings Plc (NYSE:HBC) as joint book-running managers.
 
Overseas expects to utilize the net … [visit site to read more]

Water Is Too Cheap, Part II

Posted: 23 Mar 2010 12:00 PM PDT

Water is too cheap in the US…and it is also too cheap in the global stock markets. These are the main thoughts I took away from the Gabelli Water Investment Summit in New York earlier this year.
The most eye-opening presentation was by Nick DeBenedictis, the CEO of Aqua America, which is the second largest investor-owned water utility in the country. (It trades on the NYSE under the ticker WTR.) DeBenedictis told us about a city that "wondered why it couldn't put fires out anymore." The … [visit site to read more]

Regency Buys South Charlotte Asset

Posted: 23 Mar 2010 11:55 AM PDT

Regency Centers Corporation (NYSE:REG), a leading operator and developer of grocery-anchored and community shopping centers across the U.S., recently purchased Providence Commons Shopping Center, a 191,301 square feet retail center in south Charlotte, for an undisclosed amount.
 
Providence Commons is strategically located in Charlotte’s rapidly growing southeast sector, and enjoys excellent consumer visibility from multiple viewpoints. The property offers a full range of shopping, dining … [visit site to read more]

Forex Trading: EURUSD Consolidates At Lower Levels In NY Afternoon

Posted: 23 Mar 2010 11:39 AM PDT

As per the Midday Forex Commentary the price moved back below the 200 bar MA on the 5 minute chart, after the spurt up on the Germany/France comment on aid to Greece.  The market is consolidating now below 1.3513 and finding buyers in the low 1.3490s.  Below is the 61.8% retracement of the 2009 low to high range at the 1.3482 level.  This is likely leading to some bottom picking buyers with stops below the key level .
A break of 1.3482 would be the next target on … [visit site to read more]
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