Mar 5, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

Nile Pushing Forward With CD-NP

Posted: 05 Mar 2010 11:06 AM PST

On March 3, 2010, Nile Therapeutics (NASDAQ:NLTX) reported financial results for the fourth quarter and full year 2009. Nile reported no revenues for the fourth quarter or full year 2009.
Net loss for the fourth quarter totaled $1.6 million, or $0.06 per diluted share. For the full-year 2009, Nile reported a net loss of approximately $7.9 million, or $0.31 per diluted share.
Nile exited 2009 with roughly $3.2 million in cash and investments. We believe this is sufficient cash to complete the ongoing … [visit site to read more]


Why Coal ETFs Are Leading The Energy Sector Rally

Posted: 05 Mar 2010 11:01 AM PST

Coal exchange traded funds (ETFs) are at the forefront of the energy sector’s four straight weeks of gains. The price of coal may continue to increase on greater demand as countries rev their economic engines.

Among the forces driving coal right now include:

Oil prices topping off in the low $80 range also helped boost coal plays. This year, Merrill Lynch projects a 20% recovery in thermal coal prices, the type used to generate electricity, to around $86. Scotiabank estimates that the … [visit site to read more]

Securing Iraqi Oil Fields…for US Competitors

Posted: 05 Mar 2010 11:00 AM PST

Iraq will pump up oil production from 2.4 million barrels a day now to 12 million barrels by 2017. That's the promise of Prime Minister Nouri al-Maliki, who'd like to hold onto his job after elections on Sunday.
It's not 2004 anymore. And it's no longer in Washington's interest to play up purple fingers in Iraqi elections. So let's bring you up to speed on what's been happening there since the "surge" was deemed a success:

A bevy of suicide bombings this week went … [visit site to read more]

Suntech Beats Zacks Estimates

Posted: 05 Mar 2010 10:50 AM PST

Suntech Power Holdings Company Ltd. (NYSE:STP) posted strong fourth-quarter earnings of 27 cents, which far exceeded the Zacks Consensus Estimate per American Depository Share (EPADS) of 12 cents.
 
The upbeat trend, however, was not reflected in fiscal 2009 results where the EPADS of 53 cents fell short of the Zacks Consensus Estimate of 69 cents. However it comfortably beat fiscal 2008 EPADS of 20 cents.
 
Operational Results 
Suntech registered total net revenue of $583.6 … [visit site to read more]

Jobs Report Better Than Expected

Posted: 05 Mar 2010 10:43 AM PST

In February, the unemployment rate held steady at 9.7% as 36,000 jobs were lost. The consensus expectations were for the unemployment rate to climb to 9.8% and for 65,000 jobs to be lost.
Given the massive blizzards that blanketed major parts of the country during the survey week, the “whisper numbers” had been much more dismal. The revisions to jobs in December and January were a net positive of 35,000, with the new estimate for jobs lost in December falling to 109,000 from the previous … [visit site to read more]

Who Else Wants A Better S&P 500 ETF?

Posted: 05 Mar 2010 10:42 AM PST

As the popularity of ETFs has surged in recent years, so too has the number of funds available to investors. With well more than 900 exchange-traded products listed on U.S. exchanges, some have speculated that the ETF industry has "gone into absolute overdrive", and that the wave of new product launches that continues to wash over the space is unsustainable.
Claims of saturation in the ETF industry have some merit. In recent years, ETF issuers have rushed products to market under the … [visit site to read more]

OSG Commences Stock Offering

Posted: 05 Mar 2010 10:34 AM PST

Overseas Shipholding Group, Inc. (NYSE:OSG) yesterday announced the beginning of the public offering of its 3,500,000 shares underwritten on its common stock. With this move, the company aims to increase its capital and enhance liquidity.
At a sale price of $46.99 per share, the public stock offering is expected to raise about $165 million for OSG upon successful completion on Mar 10, 2010. For this, the company has appointed Goldman, Sachs & Co. (NYSE:GS) as the sole underwriter.
 
OSG … [visit site to read more]

CA To Acquire 3Tera

Posted: 05 Mar 2010 10:18 AM PST

CA Inc. (NASDAQ:CA), the leading information technology (IT) management software company, recently announced that it has entered into an agreement with a privately-held cloud computing company 3Tera, Inc. The company offers innovative cloud service solutions to private and public clouds, using interactive graphic user interfaces (GUIs).
 
Although this is one of the bigger acquisitions in recent times, the company did not disclose the terms of the agreement. We believe that the association of … [visit site to read more]

Video: Market Movers: ZLC, APPL, FDO, ANF, CPN, DLM

Posted: 05 Mar 2010 10:14 AM PST

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

Ocwen Posts Preliminary Results

Posted: 05 Mar 2010 10:02 AM PST

Ocwen Financial Corp. (NYSE:OCN) reported its preliminary fourth quarter operating earnings per share of 7 cents, substantially short of the Zacks Consensus Estimate of 16 cents. However, this compares favorably with the loss of 7 cents in the year-ago quarter due to reduced unrealized losses on auction rate securities in the reported quarter.
 
Results were helped by strong growth in servicing segment, reduction in operating and interest expenses that led to increase in operating income … [visit site to read more]

Watchlist: Stocks With Strong Relative Strength

Posted: 05 Mar 2010 10:01 AM PST

Most of my trading life was wasted on trying to be the first to buy into stocks that “were going to move” before others discovered them. I say it was a wasted effort because what I have since learned is that it’s much smarter and less frustrating to just joining the herd, running with them and also buying the stocks they’re chasing (it’s much easier to do than trying to find stocks they might chase in the future).

True there might be some emotional reward in picking a stock early on … [visit site to read more]

Losing Control Of The US Debt Machine

Posted: 05 Mar 2010 10:00 AM PST

"The US is insolvent," says a report from a hedge fund. As of the third quarter of last year, the federal government had assets of $2.67 trillion and total liabilities of $14.12 trillion.
That leaves a net negative position of more than $11 trillion. By the way, this is projected to get a lot worse, fast. The feds are expected to increase their debts by about $3 trillion more over the next 2 years. Federal spending is out of control…the feds have lost control of their own budget, let … [visit site to read more]

Video: Dollar Rises As Week Comes To A Close

Posted: 05 Mar 2010 09:54 AM PST

The US dollar rose this session following US nonfarm payrolls figures falling less-than-expected. … [visit site to read more]

Entergy Corp At Crossroads

Posted: 05 Mar 2010 09:46 AM PST

The final decision of Entergy Corporation's (NYSE:ETR) proposed spin-off of its non-utility Nuclear power business has been deferred until Mar 25, 2010. The New York Public Service Commission (NYPSC) played spoilsport, who is apprehensive of the financial health of the resultant company (Enexus Energy Corporation). 

Earlier, NYPSC expressed its apprehension that the long-term unsecured bonds worth $3.5 billion that Entergy plans to issue for the spin-off will drag down the bond rating of … [visit site to read more]

Expectations Dim For H&R Block

Posted: 05 Mar 2010 09:31 AM PST

H&R Block Inc. (NYSE:HRB) is scheduled to report its fiscal third quarter 2010 (ending Jan, 31) financial results on Monday, March 8, after the closing bell. According to the Zacks Consensus Estimate, the company will report earnings of 15 cents per share, down 25.0% from 20 cents reported in the prior-year period. 

Recently, the company has announced that it would not be able to meet its previously announced guidance for fiscal year 2010 (ending Apr 30, 2010) as it is preparing fewer … [visit site to read more]

Sovereign Debt Worries Lighting A Fire Under Gold

Posted: 05 Mar 2010 09:30 AM PST

It's almost never a good idea to follow a crowd, but it's certainly wise to be aware of where it's headed. In today's case, a Bloomberg survey has shown that some 73 percent of surveyed traders believe that sovereign debt problems in Europe may serve to boost the price of gold. More below…
According to BusinessWeek:
"Nineteen of 26 traders, investors and analysts surveyed by Bloomberg, or 73 percent, said bullion would rise next week. Six forecast lower prices and one was neutral. … [visit site to read more]

Eastman Guides Lower

Posted: 05 Mar 2010 09:16 AM PST

Eastman Chemical Co. (NYSE:EMN) has announced recently that it expects profits in the first quarter to be down 25 cents per share. Eastman had previously forecast first-quarter earnings to be slightly above fourth-quarter earnings of $1.14 per share. The Zacks Consensus Estimate is pegged at $1.15. 

The Kingsport, TN-based company attributed the decline in earnings to power outages at a Texas facility. Eastman had announced a power outage at its Longview, Texas, plant on February 20 this … [visit site to read more]

50 States… A $300 Billion Black Hole… And 10 Years “Lost”

Posted: 05 Mar 2010 09:04 AM PST

A "lost decade" of "permanent retrenchment."
Quoted on Stateline.org, that's how economist Raymond Scheppach, head of the National Governors Association for the past 26 years, sums up the "State of U.S. States." He argues that when the recession began in December 2007, it kicked off a decade of deep spending cuts, job losses and a struggle for states to generate revenue.
So far, he's right.
Since December 2007, U.S. states have collectively run up a $300 billion budget gap, … [visit site to read more]

Valmont To Acquire Delta Plc

Posted: 05 Mar 2010 09:01 AM PST

Valmont Industries Inc. (NYSE:VMI), a U.S. maker of lightning poles and support structures, has agreed to acquire British industrial engineer Delta Plc. for $429.1 million or £284.5 million in cash. The offer represents a premium of 20.3% to Delta’s closing price on Mar 3, 2009. Valmont stated that the offer price was determined on the basis that Delta will not pay a final dividend for the year ended Dec 31.
 
Valmont expects to close the transaction in the second quarter of 2010. The … [visit site to read more]

Biofuels: Don’t Let This Alternative Energy “Greendoggle” Fool You

Posted: 05 Mar 2010 08:55 AM PST

Friday, March 5, 2010: Issue #1210
As the old sixteenth-century saying goes, "You can't make a silk purse from a sow's ear."
Translation: Sometimes, you can dress something up as much as you want, but it doesn't change what it really is.
Or in the case of biofuel, what it isn't.
And to coin a more recent adage, "putting lipstick on a pig" is exactly what biofuel advocates continue to do.
I'm interested in all forms of energy – fossil fuels, renewables, nuclear, etc. And like … [visit site to read more]

TiVo Gets Favorable Court Ruling

Posted: 05 Mar 2010 08:46 AM PST

TiVo Inc. (NASDAQ:TIVO) soared 61.9% (or $6.32) and closed at $16.53 yesterday and rose another 3.99% (or 66 cents) after hours following the company's announcement of a favorable ruling for the third time in a long running patent infringement dispute (since 2004) against EchoStar Communications Corp. (NASDAQ:SATS), the parent company of Dish Network Corp. (NASDAQ:DISH). 

The satellite television provider TiVo is a pioneer in digital video recording (DVR) technology. Under the 5-year multimedia … [visit site to read more]

Forex Trading: GBPUSD Spikes Higher As London/Europe Look To Exit

Posted: 05 Mar 2010 08:44 AM PST

The GBPUSD held the 100 hour after a brief move below after the NFP number and then used the level as a spring board to higher levels (see prior post by clicking here). The market then pushed through the 1.5066 level on its way to test the 1.5135 area.  This was outlined as a target level on the top in the pre-employment report  (CLICK HERE FOR POST). The high has extended to a high price of 1.5147 and is currently coming back a little as London and Europe square up.  The next … [visit site to read more]

Wendy’s/Arby’s Beats Estimate

Posted: 05 Mar 2010 08:44 AM PST

Wendy's/Arby's Group, Inc. (NYSE:WEN), the third largest fast-food restaurant operator, recently reported better-than-expected fourth-quarter 2009 results. The quarterly earnings of 7 cents a share surpassed the Zacks Consensus Estimate of 3 cents, and rose 40% from 5 cents a share delivered in the prior-year quarter.
In the third and second quarters of 2009, WEN’s earnings were in line with the consensus estimate. However, in the first quarter, earnings missed the consensus estimate by … [visit site to read more]

Deutsche Bank Rating Downgraded

Posted: 05 Mar 2010 08:35 AM PST

All the euphoria about the end of the euro (EUR) selling got deep-sixed yesterday on two counts… 1. The European Central Bank (ECB) decided to extend stimulus measures, which led the markets to believe that the ECB would remain on hold with their interest rates, and once again, the markets believed that the US would begin to raise rates before the ECB… 2. Moody's downgraded Deutsche Bank (Germany's largest bank).
Well… On the first count… I still believe the markets are barking up … [visit site to read more]

Ciena’s Loss Widens

Posted: 05 Mar 2010 08:31 AM PST

Ciena Corp. (NASDAQ:CIEN) reported a wider fiscal first-quarter loss compared to the year-ago period due to increased expenses related to its pending acquisition of Nortel Network (NRTLQ). However, earnings topped the Zacks Consensus Estimate by 4 cents. 

The quarter included $27.0 million in acquisition and integration-related expenses associated with the pending acquisition of the optical networking and carrier Ethernet assets of Nortel's Metro Ethernet Networks (MEN) … [visit site to read more]

“Danger, Danger Will Robinson”

Posted: 05 Mar 2010 08:26 AM PST

I feel like the robot in the television show, “Lost In Space”. Investor sentiment remains bullish and trends in gold, crude oil, and yields on the 10 year Treasury bond are collectively becoming extreme as well. This combination has me thinking: “Danger, Danger Will Robinson”.

Yesterday, I presented our combination sentiment indicator and our indicator that measures the trends in gold, crude oil, and yields on 10 year Treasury bonds. As stand alone indicators, each of these would suggest … [visit site to read more]

Morning News Notes: 3/5/2010

Posted: 05 Mar 2010 08:19 AM PST

The “Morning News Notes” as prepared by TL…non-farm payrolls, the Fed, jobs bill, and Greece.

Just click on the link or the coffee mug below.

“Morning News Notes”: March 5, … [visit site to read more]

Video: “Positive Jobs Report Gives Investors A Better Feel Of The Markets”

Posted: 05 Mar 2010 08:18 AM PST

Floor trader Jeffrey Frankel shares his thoughts and opinions on this sessions economic data and market upswing. … [visit site to read more]

Australian Dollar: Bounce

Posted: 05 Mar 2010 08:18 AM PST

Update on supports and resistances. … [visit site to read more]

Canadian Dollar: Rebound In Sight

Posted: 05 Mar 2010 08:17 AM PST

Update on supports and resistances. … [visit site to read more]

Qualcomm Designs Dual-mode Femtocell

Posted: 05 Mar 2010 08:15 AM PST

Qualcomm Inc. (NASDAQ:QCOM), the largest manufacturer of 3G mobile phone chipset based on CDMA technology, recently announced the technical details of its upcoming 3G femtocell. A femtocell is a small cellular base station, typically designed for use in a residential or small business environment. This access point communicates to the wireless service providers' network through a broadband connection.
 
The major innovation of Qualcomm's 3G femtocell is that it will be able to support both … [visit site to read more]

What’s Driving The Malaysia ETF (EWM)?

Posted: 05 Mar 2010 08:12 AM PST

In a year that has seen many stock markets struggle to find their footing, one of the bright spots in the global economy has been the developing Asian market of Malaysia. The Malaysian economy expanded at rate of 4.5% in the fourth quarter of 2009, and the government is now forecasting GDP growth of 6% for 2010. Due to this impressive growth, as well as the central bank policies of many of its neighbors (such as India, China, and Vietnam), many believe that Malaysia will be the next Asian … [visit site to read more]

Grupo Televisa’s Profit Plunges

Posted: 05 Mar 2010 08:00 AM PST

Grupo Televisa S.A. (NYSE:TV), the largest media company in Mexico, reported financial results for the fourth quarter 2009. Quarterly consolidated net income was $91 million, down 58% year-over-year. Fourth quarter EPGDS (Earnings per Global Depository Shares) was 16 cents, significantly below the Zacks Consensus Estimate of 33 cents. This was primarily due to higher cost of sales and foreign exchange losses. 

Quarterly consolidated net revenue of $1,161.5 million was an improvement of 4.8% … [visit site to read more]

Thursdays With UNG

Posted: 05 Mar 2010 07:51 AM PST

Yesterday, the United States Natural Gas Fund (UNG), one of the largest and most heavily-traded exchange-traded commodity products, hit its all time low, falling nearly 4% on signs of weak demand and expectations for balmy weather across the country. Since its inception in April 2007, UNG has been one of the most popular and controversial tickers in the ETF industry. It's also been one of the most volatile, a trait that attracts short-term traders with a big appetite for risk. But one day … [visit site to read more]

Mutual Funds: Top 5 Precious Metals Funds

Posted: 05 Mar 2010 07:51 AM PST

When markets are heading south and the economy is facing rough weather; precious metals can prove to be a safe haven of refuge. In fact, this is the period when they can outperform stocks, posting consistently higher returns. Gold and other precious metals are natural hedges against a currency losing value. Therefore, a small amount of precious metals in a portfolio can provide sufficient diversification as well as protection against inflation. Since they possess the advantages of professional … [visit site to read more]

Honeywell Undergoing Test Flights

Posted: 05 Mar 2010 07:45 AM PST

Honeywell International Inc (NYSE:HON) announced that its Next Generation Flight Management System (NGFMS) is currently undergoing test flights on the Gulfstream G650, and was part of the first flight on the Boeing 747-800. 

The NGFMS, which will certify later this year on the Boeing 747-800, enables Required Navigation Performance (RNP) 0.1, and allows operators to comply with the U.S. initiative NextGen Air Traffic Management (ATM) and the Single European Sky ATM Research (SESAR) program. … [visit site to read more]

Why The Continuing Bad Job Numbers Make It Harder (But Even More Important) To Pass Health Care Reform

Posted: 05 Mar 2010 07:45 AM PST

The loss of 36,000 jobs in February is better than expected but it's still miserable (26,000 were lost in January, according to the government's revised figures), and it complicates the President's final push for health care reform.
(And don't blame it mostly on the weather. Although the surveys on which the report is based were done in mid-February during winter snowstorms in the east, the major impact of bad weather was on hours worked, not the numbers of jobs. If you had a job in … [visit site to read more]

Video: Interview W/ Beth Ann Bovino, S&P Senior Economist

Posted: 05 Mar 2010 07:41 AM PST

S&P Senior Economist Beth Ann Bovino shares her thoughts on the US consumer, his/her spending trends, and what to expect in terms of consumer spending as the year progresses. … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: RCNI, COF, DFS

Posted: 05 Mar 2010 07:34 AM PST

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

Telus To Launch Motorola Backflip

Posted: 05 Mar 2010 07:30 AM PST

The second largest Canadian operator Telus Corp (NYSE:TU) has confirmed that it will be the exclusive carrier for Motorola's (NYSE:MOT) acclaimed Backflip smartphone in Canada. The device is expected to be available on the company's 3G HSPA+ network in late 2010. However, Telus has not released any pricing information or any specific launch date. 

The award winning Backflip is powered by Google's (NASDAQ:GOOG) Android operating system and is equipped with Motorola's "MotoBlur” interface, … [visit site to read more]

Forex Trading: EURUSD Breaks Higher To Test 100 Hour MA

Posted: 05 Mar 2010 07:25 AM PST

The EURUSD has broken higher and looks to test the 100 hour MA at the 1.3603. Look for some profit taking sellers against the level with a break signalling a further move higher in the pair.  The London close is approaching along with position squaring. This is likely to lead to some added volatility for the pair.  Watch support at the 1.3581-1.3586 to contain the downside correction. If it holds the downside, a further push higher would have added … [visit site to read more]

Video: Asian Markets Close The Week On The Upside

Posted: 05 Mar 2010 07:20 AM PST

Asian Markets closed out the trading week on the upside this session following large gains in domestic shares. … [visit site to read more]

Mutual Funds: Top 5 Legg Mason Funds

Posted: 05 Mar 2010 07:15 AM PST

With assets under management of $682 billion, Legg Mason is one of the world's largest asset managers. It uses a multi-affiliate business model to provide a wide range of financial services to individual and institutional investors in 190 countries across six continents. Legg Mason affiliates are among the industry leaders in their respective areas of specialization. They operate with a high degree of autonomy each utilizing its own unique approach and processes which it believes are best … [visit site to read more]

Repsol YPF Downgraded

Posted: 05 Mar 2010 07:15 AM PST

We have recently downgraded Repsol YPF S.A. (NYSE:REP) ADRs to Underperform from Neutral. We see little reason for investors to hold Repsol, as we believe that the long list of challenges facing the company will further weigh on its valuation. These include weak reserves, low reserve lives and poor refining margins.
 
While the company's production volumes are increasing, refining margins were significantly lower during the last year, especially in the fourth quarter, dropping more than … [visit site to read more]
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