Mar 9, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

Here We Are Again

Posted: 09 Mar 2010 06:12 PM PST

Well, here we are again: on one side, a rapidly growing contingent of optimists; on the other, a shrinking cadre of pessimists. According to USA Today’s Adam Shell, writing in “As Bull Market Turns 1, Is it Time to Party, or Worry?” below are just a few of the reasons why now is the time to buy stocks.

•Major roadblocks still absent. Two of the biggest rally killers — interest rate hikes by the Federal Reserve and a big spike in inflation — “simply are not present yet,” … [visit site to read more]


Stock Dividends Are Flowing Again

Posted: 09 Mar 2010 05:01 PM PST

Last year’s dividend numbers were the worst in more than half a century, as corporations large and small struggled with a lack of financing, weak economic conditions, and poor earnings. But now, things are finally looking up …

According to the latest data from Standard & Poor’s, February was a very solid month:

45 S&P 500 constituents increased their dividends vs. 30 a year earlier
Two companies initiated new payments (vs. none in the same month last year)
And only one … [visit site to read more]

Is Bakken Shale The New American Gold Rush?

Posted: 09 Mar 2010 05:00 PM PST

You know the labor market is tight when the local McDonald's starts handing out $300 signing bonuses. Workers are coming in from all over, making it tough to find housing. They might sleep in their trucks or pitch tents, but it can get 50 degrees below zero, which makes such a move dangerous.
There is also a chronic shortage of hotel rooms. I browsed the Web to see if I could find a room. I checked the Super 8 motel – no rooms available. I checked a few others – no rooms there, either. I … [visit site to read more]

Moving Up The Ranks

Posted: 09 Mar 2010 04:46 PM PST

Gongol.com is out with its latest EconDirectory, which ranks business and economics websites based on average daily traffic. Thanks to all of you, Financial Armageddon is close to cracking the top 10.

Rank 

Site 

Page Views 

Change 

Pageview Ratio 

…making this the ___ of business/econ websites:

1
 
Michael Shedlock 
 
71966
 
▲▲
 
100.00%
 
USA Today 

2

Calculated Risk 

66662

▼

92.63%

Wall … [visit site to read more]

Track The Holdings Of The Best Investors Via “13F Filings”

Posted: 09 Mar 2010 04:01 PM PST

Tracking the holdings of the best investors via “13F Filings” is a worthwhile exercise that can lead to excellent investment ideas and gains.

There are a lot of smart guys in the investment world. There are outstanding money managers who have produced impressive returns for their clients. They can be found investing money for mutual funds, hedge funds or institutions. They are considered what is called “smart money.”

In addition, there are also a lot of folks who pay close attention to, … [visit site to read more]

The Duality Of Politics

Posted: 09 Mar 2010 04:00 PM PST

As we've pointed out before, there are two parts to a political system. One part is shrewd, calculating and corrupt. The other is stupid, senseless, and earnest. The first is surprisingly predictable. The second is predictably surprising.
Like the two sides of the brain, people use politics both ways. On the right side, they use it to do something that is completely preposterous…and often completely at odds with their own interests.
Start a war, for example. National pride. Sentiment. … [visit site to read more]

H-P Recasts First Quarter Numbers (Revised)

Posted: 09 Mar 2010 03:15 PM PST

The world's largest computer maker Hewlett-Packard Company (NYSE:HPQ) recently came out with a revised version of its first quarter 2010 earnings, whereby the company lowered its net profit by $73.0 million, providing for litigation expenses to be paid by its subsidiary, Electronic Data Systems (EDS).
 
In February 2010, HP reported first quarter net income of $2.32 billion, or 96 cents a share, which is now revised downwards at $2.25 billion, or 93 cents a share. HP has used these 3 cents … [visit site to read more]

Cartoon: And The Award For Best Supporting Role Goes To…

Posted: 09 Mar 2010 03:01 PM PST

Source: Dave Granlund, Comics.com, March 8, … [visit site to read more]

Using Gold To Fend Of The FDIC And Its “Problem Banks”

Posted: 09 Mar 2010 03:00 PM PST

People think that Addison Wiggin is just another talented, intelligent, pretty face who secretly thrills to hear people say things like, "You're a lot better looking than The Mogambo! And younger and smarter, too!" but he is much, much more than that.
His story starts off that "The FDIC is even more broke than it was three months ago" to which most people rudely say, "Welcome to the club! Waddya think, we got some kind of picnic at the beach going on out here in the real world while … [visit site to read more]

Making A Lot Of Noise But Getting Nowhere

Posted: 09 Mar 2010 03:00 PM PST

Senator Dodd has suggested that the Consumer Financial Protection Agency be housed with the Federal Reserve Board… yet, despite having all the power needed to stop the mortgage debacle, it was never able stop that train wreck. Why trust it to do more in the future?
The muttering over regulation sounds like putting the cart before the horse.
This cartoon came to our attention via The Mess That Greenspan Made in its post on financial market regulation getting even more … [visit site to read more]

RIG Begins 5-Year Deal In India

Posted: 09 Mar 2010 02:55 PM PST

Transocean Ltd (NYSE:RIG) yesterday said that its newbuild ultra-deepwater drillship has commenced operations for Reliance Industries in India under a five-year drilling contract.
The drillship, Dhirubhai Deepwater KG2, is jointly owned by Transocean and Pacific Drilling Limited. It has advanced drilling capabilities in the offshore drilling space. The drillship, which can operate in water depths up to 12,000 feet and drill wells up to 35,000 feet deep, has a variable deckload of approximately … [visit site to read more]

Omnicell Stays At Neutral

Posted: 09 Mar 2010 02:35 PM PST

We recently reiterated our Neutral rating on Omnicell, Inc. (NASDAQ:OMCL) with a target price of $15.50.
Omnicell reported disappointing results in the fourth quarter and fiscal 2009. In the fourth quarter, earnings per share were 2 cents, below the Zacks Consensus Estimate of 3 cents and the year-ago earnings of 10 cents.
In fiscal 2009, earnings per share were a penny, compared to the Zacks Consensus Estimate of 2 cents and the year-ago earnings of 38 cents.
Total revenues for the fourth quarter … [visit site to read more]

ETP Builds New Pipeline

Posted: 09 Mar 2010 02:20 PM PST

Construction has begun on the Fayetteville Express Pipeline (FEP), a 50/50 joint venture between Energy Transfer Partners L.P. (NYSE:ETP) and Kinder Morgan Energy Partners L.P. (NYSE:KMP).
With an initial capacity to transport up to 2 billion cubic feet per day (Bcf/d) of natural gas, the pipeline will serve the Fayetteville Shale-producing region in Arkansas. This is a 42-inch, approximately 185-mile pipeline.
Energy Transfer Partners is the operator of this pipeline and will manage the construction … [visit site to read more]

BMC Software Poised For Growth

Posted: 09 Mar 2010 02:05 PM PST

BMC Software Inc. (NYSE:BMC) is winning new customers at regular intervals. The company’s superior product quality, innovative service offerings and aggressive marketing strategy are helping to win these major deals. The ongoing revival in IT spending across the globe is also a benefit.
Latest among these is a deal win from Australia’s Monash University. This university has selected BMC Software’s Business Service Management (BSM) platform to support its information and communication technology … [visit site to read more]

Real Estate ETFs: Big Improvements, Big Challenges

Posted: 09 Mar 2010 02:01 PM PST

While it’s true that real estate exchange traded funds (ETFs) have doubled off their lows since last March, they’ve still got a long way to go before the sector can be considered “stable.”

At the very least, real estate’s comeback from the lows is impressive. Investors had priced in total financial ruin that never materialized. But now the market may have gone too far in the other direction; there are concerns that it has “overshot” and calls for a strong recovery are way too hopeful at this … [visit site to read more]

A Company Riding The Asian Explosion Straight Up

Posted: 09 Mar 2010 02:01 PM PST

The American press didn't really cover the recent, major deal in the global insurance industry.
But just because they didn't pay it any attention, doesn't mean that you should ignore it too… It indicates one very profitable opportunity you won't want to miss out on.
British insurance firm Prudential Insurance ADR (NYSE:PUK) offered $35.5 billion to purchase the Asian arm of American International Group (NYSE:AIG). That branch, called AIA, is the leading pan-Asian foreign insurer. It carries … [visit site to read more]

Arrow Energy (ASX:AOE): Rising Demand In Aussie LNG

Posted: 09 Mar 2010 02:00 PM PST

Big news: Arrow Energy (ASX:AOE), a modest energy producer, received a $3 billion takeover bid yesterday. Why was this benchwarmer story the leadoff hitter in today's 5 Min. Forecast? Ahh, the drama's in the details…some big trends in the making here:
First, Arrow is in the Australian natural gas business. Chris Mayer specifically gave you a heads-up on Aussie LNG just a few weeks ago in his essay "Liquid Natural Gas: The Next Resource Boom". It's the real deal.
Second, the bidders: … [visit site to read more]

Xilinx Estimates On The Rise

Posted: 09 Mar 2010 01:48 PM PST

Earnings estimates for chipmaker Xilinx Inc (NASDAQ:XLNX) have been increasing following the release of solid results for the third quarter of fiscal 2010.
California-based Xilinx designs and manufactures a broad range of high-performance, high-density programmable logic devices (PLDs) such as field-programmable gate arrays (FPGAs) and complex-programmable logic devices (CPLDs).
Sales came in at $513.3 million, up 24% sequentially, driven by growth in all end-markets and geographies. In particular, … [visit site to read more]

Video: NYSE Closing Bell Market Monitor: BA, S

Posted: 09 Mar 2010 01:42 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]

Daily ETF Roundup: GDX Sinks, EWZ Rises

Posted: 09 Mar 2010 01:36 PM PST

On the one year anniversary of the market bottom, most major markets finished the day flat. Financial stocks were mostly higher after rumors surfaced out of D.C. that the government would ban short-sales on companies in which the government owned a stake. This rumor helped to send financial firms such as AIG and Fannie Mae and Freddie Mac higher. Meanwhile, most commodities were lower as a stronger dollar weighed on precious metals and sent oil down more than $1.60 in Tuesday trading.
The ETFdb … [visit site to read more]

Under The Microscope: FVL

Posted: 09 Mar 2010 01:33 PM PST

While most mutual fund firms shied away from ETFs initially, many have now seen the light, and are actively planning to finally enter into the ETF space. While the forays of Schwab, T. Rowe Price, and Goldman Sachs have received a great deal of media coverage, the ETF adventures of institutions best known for their stock analysis services is seldom discussed. A number of these companies have partnered with ETF issuers to develop funds that blur the lines between active and passive management. … [visit site to read more]

Positive Data On Acurox Study

Posted: 09 Mar 2010 01:30 PM PST

King Pharmaceuticals, Inc. (NYSE:KG) and Acura Pharmaceuticals, Inc. (NASDAQ:ACUR) recently presented positive top-line data on opioid candidate Acurox from a study that was conducted to assess the relative abuse potential of the drug.
Results from Study AP-ADF-114 (A Randomized, Double-Blind, Placebo- and Active-Controlled Study to Assess the Relative Abuse Potential of Acurox Tablets in Non-Dependent Recreational Opioid Users) showed that Acurox was significantly disliked compared to oxycodone HCl … [visit site to read more]

Wall Street Snubbed In European Sovereign Bond Sales

Posted: 09 Mar 2010 01:30 PM PST

It looks like US banks are losing the opportunity to earn fees on the roughly $500 billion in planned European debt offerings this year. It probably shouldn't come as a big surprise, given the less than savory details that emerged regarding Goldman's relationship with Greece, and the series of black eyes the euro currency has been enduring as a result of sovereign debt-related instability.
According to the Guardian:
"For the first time in five years, no big US investment bank appears … [visit site to read more]

Weak Infrastructure Affects CEMEX

Posted: 09 Mar 2010 01:13 PM PST

Recently, CEMEX, S.A.B. de C.V. (NYSE:CX) reported fourth quarter and fiscal year 2009 results. During the quarter, Cemex reported an EPS of 28 cents compared to a loss of 96 cents in the year ago quarter. Reported EPS was much above the Zacks Consensus Estimate of loss per share of 7 cents. During full year 2009, EPS was 52 cents, up from 7 cents in 2008 and 34 cents anticipated by the Zacks Consensus.
Net sales were $3,444 million and $14,544 million in the fourth quarter and full year 2009. … [visit site to read more]

Make A Fortune With Ford Motor Shares

Posted: 09 Mar 2010 01:01 PM PST

Last week the Money Map team got together at the Baltimore Marriott and had a two-day conclave to discuss the market and what we can do to better serve you. We had many productive exchanges about our market views, preferred ways to profit, and other important issues.

Keith Fitz-Gerald, Martin Hutchinson and Shah Gilani all had terrific ideas that I am sure you will be reading about here in Money Morning, as well as in their trading services and in the Money Map Report.

But ultimately, … [visit site to read more]

Monsanto Expands

Posted: 09 Mar 2010 12:50 PM PST

Recently, Monsanto Company (NYSE:MON) completed its $200 million expansion just outside of New Orleans. The expansion was started in April 2008 to increase production of the agricultural herbicide - Roundup.
Roundup is one of the world’s leading crop protection products. This has been a huge project for Monsanto in scope and in terms of financial investment. This expansion will help boost Roundup production capacity by 20%.
Monsanto is a leading global provider of agricultural products. The … [visit site to read more]

GOL: Well Positioned In Latin America

Posted: 09 Mar 2010 12:35 PM PST

GOL Linhas Aereas Inteligentes S.A. (NYSE:GOL), the largest low-cost airline in Latin America, has announced its preliminary traffic figures for February 2010.
During the month, total passenger traffic grew 46.9% over the same period last year, fueled by 47.9% growth in the domestic market and 40.3% growth in the international market. The improvement came from economic growth in Brazil and Latin America, and the expansion of GOL’s competitive advantages, especially its cost structure, exemplary … [visit site to read more]

FMC Technologies Wins Subsea Deal

Posted: 09 Mar 2010 12:20 PM PST

Oil drilling equipment maker FMC Technologies Inc. (NYSE:FTI) announced a $62 million contract from Norway-based oil and gas company StatoilHydro ASA (NYSE:STO). The deal calls for FMC Technologies to manufacture and provide subsea production systems to the Marulk field, located in the Norwegian Sea. Italian giant Eni SpA (NYSE:E) is the operator of Marulk with a 20% share, while Statoil and Danish player Dong have 50% and 30% interest in the development, respectively.
FMC Technologies said that the … [visit site to read more]

Special Report For Our Premium Content Subscribers

Posted: 09 Mar 2010 12:20 PM PST

The attached link is a special report that was written Sunday night for the subscribers to our Premium Content.

The special report has a new Rydex Combo Indicator that is constructed from the various daily charts presented in the Premium Content service. In addition, in an effort to improve our short term timing, I have begun looking at the VIX and how that interacts with the Rydex data. This is all in the report.

The Premium Content service now contains at least 6 charts daily plus … [visit site to read more]

Video: Crude Prices Flat On Quiet Equity Markets

Posted: 09 Mar 2010 12:09 PM PST

Front month crude prices were a slight bit on the downside this session following quiet equity markets and a lack of economic data. … [visit site to read more]

Mechel’s Credit Line Extended

Posted: 09 Mar 2010 12:05 PM PST

Russian steel and coking coal producer Mechel OAO (NYSE:MTL) recently announced that its $1 billion credit facility with Gazprombank has been doubled to six years with a reduced interest rate. Mechel will begin repayment of the facility, which was used to finance operations and pay down short-term debt, in three years. Gazprombank is part of energy giant Gazprom’s business empire.
In February 2009, Gazprombank had opened credit lines totaling $1 billion for Mechel Mining’s subsidiaries. The … [visit site to read more]

How To Profit From The “Fertilizer Wars”

Posted: 09 Mar 2010 12:01 PM PST

There’s nothing like scarcity and supply disruptions to fuel violent price spikes. And there’s nothing like the basic human needs for food and water to light that fuse.

Today’s world food supplies run on razor-thin inventories.

While the food riots of 2008 have all but disappeared from our short-term memories, the threat of them returning grows stronger with every passing day.

According to the World Bank, food prices increased 83% between February 2005 and February 2008. In April … [visit site to read more]

Griffon Corp (NYSE:GFF): Buy Cockroaches, Get Rich

Posted: 09 Mar 2010 12:00 PM PST

The lowly cockroach has a tough chin. It's survived all kinds of shocks over the years. Jungles gave way to deserts. Flatlands succumbed to urban habitats. Predators came and went over many millennia. Yet there the cockroach stood, undaunted upon its six spindly legs.
Investors could learn a few things from the cockroach.
For one, the cockroach teaches a great lesson in survival. As author Richard Bookstaber points out: "Its defense mechanism is limited to moving away from slight puffs of … [visit site to read more]

Video: McDonald’s Serves Up Strong February Sales Figures

Posted: 09 Mar 2010 11:56 AM PST

McDonald’s reported a 4.8% rise in February sales at established restaurants on strong overseas results. … [visit site to read more]

CNQ Hurt By Lower Gas Prices/Volumes

Posted: 09 Mar 2010 11:50 AM PST

Independent oil explorer Canadian Natural Resources Ltd. (NYSE:CNQ) reported weaker-than-expected fourth-quarter results, hurt by lower natural gas prices and volumes. Earnings per share, excluding one-time and non-cash items, came in at C$1.23 ($1.19), below the Zacks Consensus Estimate of $1.32. In the year-ago quarter, the company earned C$1.29. However, revenue of C$3.3 billion was up 32.2% from the fourth quarter 2008 level.
Production
Total production during the quarter was up 5.0% … [visit site to read more]

Arris Downgraded To Neutral

Posted: 09 Mar 2010 11:35 AM PST

We are downgrading our recommendation for Arris Group Inc. (NASDAQ:ARRS) to Neutral, which means the stock will perform mostly in line with the broader market. The stock price moved up nearly 86% in the last year and is currently trading at the high-end of its 52-week price range. We believe at this valuation level, there is little room for any above-market gain.
Arris’ fourth-quarter 2009 EPS was well above the Zacks Consensus Estimate. However, the first-quarter 2010 financial outlook given by … [visit site to read more]

Nokia Selects T-Mobile For 5230

Posted: 09 Mar 2010 11:20 AM PST

Nokia Corp. (NYSE:NOK), the largest mobile phone manufacturer of the world, selected T-Mobile, a division of Deutsch Telekom AG (NYSE:DT) as the carrier-partner for its 5230 Nuron series of 3G smartphone. 5230 Nuron devices will target mass market customers with touch-screen facility.
The handset will feature a reasonable 3.2-inch, 640 x 360 touch-screen for Ovi Store apps and free Ovi Maps with turn-by-turn navigation. Moreover, the device has an onscreen keyboard.
5230 Nuron is the first 3G … [visit site to read more]

Video: “Markets Continue To Stabilize”

Posted: 09 Mar 2010 09:45 AM PST

Floor trader David Henderson shares his thoughts behind the recent lull in activity & volume for the Big Board. … [visit site to read more]
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