Mar 19, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

VimpelCom Trails Expectations

Posted: 19 Mar 2010 12:02 PM PDT

VimpelCom (NYSE:VIP) reported lower-than-expected fourth quarter 2009 results with earnings per ADS of 27 cents largely missing the Zacks Consensus Estimate of 44 cents, due to lower revenue, higher expenses and adverse currency fluctuations. For 2009, earnings per ADS of $1.08 fell short of the Zacks Consensus Estimate of $1.36.
 
The second-largest Russian telecom carrier, which offers services under the "Beeline” moniker, reported a quarterly net income of $283 million, compared to a … [visit site to read more]


FINRA’s Enforcement Chief, Susan Merrill, Has Some Set Of Balls

Posted: 19 Mar 2010 12:01 PM PDT

I have grown accustomed to some truly shocking developments and resulting statements throughout the course of our economic crisis. That said, the statement I read late last night from the soon to depart Chief of Enforcement at FINRA, Susan Merrill, left me absolutely aghast.

As reported by the financial industry newsletter, Investment News, Ms. Merrill said she was,
“especially proud of the actions we brought regarding auction-rate securities….as well as vigorous actions to shut down … [visit site to read more]

L-3 Comm Wins Contract

Posted: 19 Mar 2010 11:46 AM PDT

L-3 Communications Holdings Inc.'s (NYSE:LLL) Link Simulation & Training division has won a $20.9 million contract option for the F-16 Mission Training Center (MTC) program. This contract option, received from the Aeronautical Systems Center’s Training Systems Product Group at Wright Patterson Air Force Base, brings the total contract value for the program to $109.1 million. 

Under the contract option, L-3 Link will build and deliver an F-16 MTC suite that includes four … [visit site to read more]

NCS Posts Sluggish Results

Posted: 19 Mar 2010 11:31 AM PDT

Recently, NCI Building Systems, Inc. (NYSE:NCS) reported discouraging financial results for the first quarter of fiscal 2010. Revenues for the quarter contracted by 29.8% year-over-year driven by the decline in market demand as well as decrease in steel prices. Revenues reached $182.9 million, down from $260.4 million during the same period of fiscal 2009. 

All the three segments reported significant declines in sales. Engineered Building Systems sales fell 32.7%, while Metal Components and … [visit site to read more]

Embraer Posts Higher 4Q Profit

Posted: 19 Mar 2010 11:16 AM PDT

Empresa Brasileira de Aeronautica S.A. (NYSE:ERJ) reported improved results for the fourth quarter and full year 2009. Quarterly net sales decreased 11.5% and reached $1,609.9 million from $1,818.4 million in the year-ago quarter. Net revenue for 2009 fell 13.7% to $5,466.3 million from $6,335.2 million in 2008. 

During the quarter, net revenues in the commercial aviation segment decreased 41.1% year-over-year, revenues in executive aviation increased 67.1%. Revenues in the defense and … [visit site to read more]

Gold Role Reversal: Central Banks Now Net Gold Buyers

Posted: 19 Mar 2010 11:14 AM PDT

The world is turning upside down when central bankers are accumulating gold and ordinary people are not.
Last year, central banks were net buyers of gold for the first time since 1988. In fact, they bought the most gold in any year since 1964. Total central bank holdings worldwide, according to the World Gold Council, grew by 425 metric tons last year.
True, that's only 1.4% of the gold central banks already held. But it's the trend that matters: China, India, and Russia all added to their … [visit site to read more]

Jim Rogers: “It’s Time For Another Recession”

Posted: 19 Mar 2010 11:01 AM PDT

“We’re going to have another recession, I guarantee you … By 2012 say, it’s time for another recession,” Jim Rogers, chairman of Rogers Holdings, told CNBC. “The next time it’s going to be worse because we’ve shot all of our bullets,” he … [visit site to read more]

Meridian Slashes Outlook

Posted: 19 Mar 2010 11:01 AM PDT

Life science company, Meridian Bioscience, Inc. (NASDAQ:VIVO), recently slashed its outlook for fiscal 2010 (ending Sep 30, 2010) mainly due to a weaker-than-expected H1N1 season and lower C. difficile product revenues. 

The company now expects net sales in the range of $145 million - $153 million in fiscal 2010, down from the earlier guidance of $160 million - $165 million. Meridian expects earnings in the range of 70 - 80 cents, down significantly from the previous guidance of … [visit site to read more]

Video: Market Volatility High On Quadruple Witching

Posted: 19 Mar 2010 10:55 AM PDT

Floor trader Maier J. Tarlow of Raven Securities explains the effect quadruple witching has had on the Big Board this session. … [visit site to read more]

Video: Crude Prices Slide On Stronger Dollar

Posted: 19 Mar 2010 10:52 AM PDT

Front month crude prices were on the downside to close the week following a strengthening US dollar. … [visit site to read more]

Delta To Sell Piceance Properties

Posted: 19 Mar 2010 10:46 AM PDT

U.S. energy producer Delta Petroleum Corp. (NASDAQ:DPTR) has entered into an agreement with Denver-based Opon International LLC to sell a stake in some of its natural gas fields in Colorado for $400 million. Delta has also granted a 60-day exclusive period to Opon to arrange financing for the transaction, which is expected to close by Jun 1, 2010. 

As per the non-binding letter of intent signed between the companies, Delta plans to offload a 37.5% non-operated working interest in its Vega … [visit site to read more]

Teva Wins Race For Ratiopharm

Posted: 19 Mar 2010 10:31 AM PDT

Teva Pharmaceutical Industries Ltd. (NASDAQ:TEVA) recently announced its second major acquisition in a span of two years. The company announced its intention to acquire Germany's second largest generics producer, ratiopharm, for an enterprise value of €3.625 billion or approximately $5 billion. 

Teva's last major acquisition was that of Barr Pharmaceuticals, a US-based multinational generic pharmaceutical company with operations mainly in the US and Europe. This acquisition boosted … [visit site to read more]

CSC Wins Defense Deal

Posted: 19 Mar 2010 10:16 AM PDT

After getting named in Fortune Magazine's 'World's Most Admired Companies' list for 2010, CSC Inc. (NYSE:CSC) is in the headlines for grabbing a contract from the Department of Defense (DoD), wherein CSC will provide information technology help desk services to the DoD Dependents Schools-Europe (DoDDS-E). 

As per the agreement, the contract has a base period of one year, which can be extended by another four years, bringing the total five year contract value to $27.0 million. CSC … [visit site to read more]

Video: Market Movers: LYG, POL, BBY, PALM, MAR, CHH

Posted: 19 Mar 2010 10:07 AM PDT

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

Upgrading SanDisk To Outperform

Posted: 19 Mar 2010 10:01 AM PDT

We are upgrading SanDisk Corp. (NASDAQ:SNDK) to Outperform from Neutral based on strong fundamentals and consistent financial performance over the last couple of quarters. 

SanDisk has taken various steps to cut costs and is witnessing substantial margin improvements through restructuring efforts. In the fourth quarter and fiscal year 2009, the company posted better-than-expected results and exceeded management guidance while reducing its cost of production significantly. 

Sandisk's … [visit site to read more]

Teva Pharmaceutical Wins Fight In The Generic Drug Market Battle

Posted: 19 Mar 2010 10:01 AM PDT

Teva Pharmaceutical Industries Ltd. (NASDAQ:TEVA) will buy sought-after German generic producer Ratiopharm for $4.97 billion, continuing a trend of highly competitive merger-and-acquisition (M&A) activity in the pharmaceutical industry.

Competitors have pursued Ratiopharm for nine months because of its position as the second biggest generic producer in Germany. It was put up for sale in June to help pay off debt amassed by the previous owner’s stock market misfortune. Other contenders were … [visit site to read more]

Video: Risk Aversion Strong On Greece Concerns

Posted: 19 Mar 2010 09:53 AM PDT

Concerns over Greece possibly not receiving assistance from the EU has paved the way for a rise in risk aversion as the trading week comes to a close. … [visit site to read more]

Remain Neutral On Plexus

Posted: 19 Mar 2010 09:46 AM PDT

We maintain our Neutral rating on Plexus Corp. (NASDAQ:PLXS) but raise our price target to $39.00. Our target price represents a multiple of 19.4X our 2010 EPS estimate, a premium to the peer group and the S&P 500. 

Plexus exhibited incremental growth opportunities in the first quarter of 2010 and we expect growth to reaccelerate in the second half of fiscal 2010 and get stronger in the year 2011 as the economy recovers and spending improves. The company also provided a robust guidance … [visit site to read more]

Outsourcing: Why The Average American Seems To Be Doing Okay

Posted: 19 Mar 2010 09:40 AM PDT

We've been staying at the Taj Mahal Hotel for almost two weeks. What a great hotel. Calm. Civilized. Air conditioned! Every day, we come back from a hard day at work and settle into a comfortable wicker chair by the pool.
We no longer have to tell the young lady what we want. She knows. Even the Hindu gods must know what to do at 7 PM. In a few minutes, she brings a drink…
Last night, to deepen our research into the real India we went to a concert hall for a jazz performance by Mike Stern … [visit site to read more]

An Interesting Divergence

Posted: 19 Mar 2010 09:39 AM PDT

It’s no secret that credit and equity markets have almost been joined at the hip since the credit bubble began to burst. However, there has been an interesting divergence at key turning points, as the following chart suggests:

Are we seeing déjà vu all over again? Click here to read what I had to say on the subject in my last column of the week for DailyFinance, “When Credit Falls and Equities Rise, Stock Investors … [visit site to read more]

BP Plc (NYSE:BP) – Locks Up Access To New Set Of Oil Assets

Posted: 19 Mar 2010 09:30 AM PDT

London-based BP (NYSE:BP), the giant international oil and gas company, is considered one of the most undervalued of the "Big Oil" set by Agora Financial commodities expert Byron W. King. In his opinion, it was not well managed for many years in the 2000s, and even so far back as into the 1990s. However, he's seen a lot of intriguing news of late which he discusses in a recent update.
Here is King's latest take on BP:
"Under new management with CEO Tony Hayward, in the past 18 … [visit site to read more]

Suntech To Power Taiwan Project

Posted: 19 Mar 2010 09:30 AM PDT

Suntech Power Holdings Company Ltd. (NYSE:STP) has been selected to power Taiwan ’s largest solar power plant. The company will supply solar panels for the new 4.7MW solar plant in Young’an, Kaohsiung, which will nearly double the island’s current installed solar capacity of about 5MW.
 
The plant will be owned and operated by the Taiwan Power Company, and developed by Fortune Electric Company Ltd. Delivery of the 16,640 advanced polycrystalline modules, each with a peak power output of up … [visit site to read more]

Morning Stock Market Movers: Boeing, Nabors Industries, Aetna

Posted: 19 Mar 2010 09:16 AM PDT

Aetna, Inc. (NYSE:AET) - Shares of the third-largest health insurer in the U.S. are up 2.05% to $33.92 this morning after the firm said it expects first-quarter operating profits per share to beat average analyst forecasts. Options traders populated the July contract on the stock with bullish transactions. Investors picked up 1,100 calls at the July $36 strike for an average premium of $1.90 apiece. Call-buyers at this strike are prepared to profit should Aetna’s shares rally 11.75% over the … [visit site to read more]

Navistar Shows Breakeven Results

Posted: 19 Mar 2010 09:10 AM PDT

Navistar International Corporation (NYSE:NAV) has reported breakeven results for the first quarter of fiscal 2010 ended January 31, 2010, before non-recurring items. This compares to the Zacks Consensus Estimate of earnings of 92 cents per share and a year-ago profit of $48 million or 67 cents (before non-recurring items).
 
The decline in income was attributable to lower revenues due to weaker demand for the company's military vehicles. Revenue in the quarter fell 5% to $2.8 … [visit site to read more]

Medtronic Remains Neutral

Posted: 19 Mar 2010 08:50 AM PDT

We recently reiterated our 'Neutral' recommendation for Medtronic, Inc. (NYSE:MDT) with a target price of $47 based on a P/E of roughly 13.4x our fiscal 2011 EPS estimate of $3.52.
 
Medtronic reported third quarter fiscal 2010 earnings per share of 77 cents, surpassing the Zacks Consensus Estimate of 76 cents and the year-ago earnings of 71 cents.
 
Total revenues in the third quarter increased 10% year over year to $3.851 billion. Medtronic witnessed sales growth across all its … [visit site to read more]

April 7, 8pm, International House Gala Soiree. “Why The Recovery Isn’t Happening”

Posted: 19 Mar 2010 08:50 AM PDT

April 7, 8pm, International House Gala Soiree. “Why the Recovery Isn’t … [visit site to read more]

A Worried Postscript To The House Health Care Bill

Posted: 19 Mar 2010 08:48 AM PDT

Nothing that's legislated is perfect and in my view the good that will come from passing health care legislation outweighs the bad, but be warned: the pending House bill (that will go to the Senate for a "reconcilation" vote) does not repeal the antitrust exemption for health insurers, nor does it contain a public insurance option. It thereby will allow health insurers to continue to consolidate into even larger entities, gain as much market power as they can, and charge ever higher … [visit site to read more]

Boeing’s Bullish Outlook Boosts Aerospace ETFs

Posted: 19 Mar 2010 08:43 AM PDT

Boeing Co., the Chicago-based aerospace and defense corporation, announced on Friday that it plans to increase production of its 777 and 747 aircraft amidst strengthening demand from the airline industry. "We see 2010 as the year of overall economic recovery within the industry and 2011 a year where airlines return to profitability," said Randy Tinseth, Boeing's vice president of marketing. "As a result, we anticipate an increase in demand for airplanes in 2012 and beyond."
Boeing had … [visit site to read more]

The Economist Magazine Debate: “Is The Government An Agent Of Innovation?”

Posted: 19 Mar 2010 08:39 AM PDT

The Economist magazine debate: “Is the Government an Agent of Innovation?”:
March 23, 5pm, Haas School of Business, … [visit site to read more]

BP Acquires Devon: Another Feather In This Oil Heavyweight’s Cap

Posted: 19 Mar 2010 08:36 AM PDT

BP Acquires Devon: Another Feather in This Oil Heavyweight's Cap
by Tony Daltorio, Investment U Research
Friday, March 19, 2010
Management at oil giant BP ADR (NYSE:BP) must firmly believe in the old adage "Better late than never." Because after lusting after the natural resources off shore of Brazil for years, it's finally joined the party.
In BP's largest deal in seven years, the company bought assets from the U.S. independent oil and gas company Devon Energy (NYSE:DVN). The deal involved … [visit site to read more]

LSI Raises Guidance

Posted: 19 Mar 2010 08:30 AM PDT

LSI Corporation (NYSE:LSI) updated its outlook for the first quarter of 2010. The company now expects revenues between $620 million and $640 million, up from the previous guidance of around $590 – $620 million.
Headquartered in California, LSI Corporation designs, develops, and markets complex high-performance semiconductors and storage systems. The company provides silicon-to-system solutions that are used at the core of products that create, store, consume and transport digital … [visit site to read more]

Australian Dollar: The Downside Prevails

Posted: 19 Mar 2010 08:17 AM PDT

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

Canadian Dollar: Under Pressure

Posted: 19 Mar 2010 08:17 AM PDT

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

TriQuint Raises Outlook

Posted: 19 Mar 2010 08:10 AM PDT

TriQuint Semiconductor, Inc. (NASDAQ:TQNT) recently updated its guidance for the first quarter of 2010.
The company now expects revenues of $175 million, up 47% year over year and up from the previous guidance of $170 million – $175 million.
Results for the fourth quarter beat management expectations driven by growth from all end-markets. In particular, revenues from mobile devices and defense and aerospace have propelled growth. Mobile Devices grew 55% year over year and 15% sequentially. … [visit site to read more]

US Data Fails To Move The Markets

Posted: 19 Mar 2010 08:00 AM PDT

But luckily for me, economic data is what ruled the markets yesterday. We had a plethora of data released in the US, but the markets seemed to be focused on the release of CPI and the weekly jobs numbers. CPI led off Thursday morning's data showing that prices in the US were unchanged for the month in February from the 0.2% gains we saw at the start of the year. The core number was up 0.1% offsetting a 0.1% dip in January. The YOY (year on year) number showed a drop in the inflation rate to … [visit site to read more]

Video: Nike Runs Away With A Strong 3Q Profit

Posted: 19 Mar 2010 07:51 AM PDT

Nike Incorporated announced late Thurday that it posted a 3Q profit that more-than-doubled from one year earlier. … [visit site to read more]

Forget About Euro ETFs, British Pound ETFs Are The Real Danger

Posted: 19 Mar 2010 07:51 AM PDT

In recent weeks, the future of the euro has been a hot topic among investors, as the current "stress testing" of the common currency system has uncovered some worrisome flaws. The euro has slumped against many of its major rivals as fears about escalating budget crises in Greece, Spain, and Italy have caused investor anxiety. But for all the focus on the euro's struggles, most investors do not realize so far in 2010 British pound ETFs have lost more ground than euro ETFs. The … [visit site to read more]

Video: Asian Markets Close Week On The Upside

Posted: 19 Mar 2010 07:43 AM PDT

The major Asian/Pacific markets were on the upside to close out the week following a rise in commodity-related stocks. … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: LYG, BBY, CTAS

Posted: 19 Mar 2010 07:41 AM PDT

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

Forex Trading: USDCAD Squeezed To 100 Hour MA Resistance

Posted: 19 Mar 2010 07:33 AM PDT

 
The 1.0143-45 level is the 100 hour MA . It is also the 100 and 200 bar MA on the 5 minute chart.  If the market is to attract sellers this is the level. If it squeezes further the shorts could get … [visit site to read more]

Financial ETFs: Seven Ways To Play

Posted: 19 Mar 2010 07:28 AM PDT

The financial sector was one of the hardest areas of the economy in 2008 and early 2009, as years of excessive risk taking finally resulted in a meltdown that spurred several unprecedented emergency measures and set off one of the worst recessions in a generation. Since bottoming out last March, however, financials have surged higher, leading the way during the recovery effort (see the Top Ten ETF Performers Since The Market Bottom). While many financial ETFs remain well below pre-recession … [visit site to read more]

Forex Trading: EURUSD Falls Below The 1.3530 Low

Posted: 19 Mar 2010 07:24 AM PDT

The EURUSD has moved below the 1.3530 low price from March 5th and moved to a new low at 1.3519. The pair has longs caught and they scramble to cpver as the weekend approaches. The topside should now use the 1.3539 level as stops to the upside.  The 1.3512 area is support. The market based at this level in early March when the price was last at this area .  A move below targets … [visit site to read more]

The Dollar Index: The Move Isn’t Done

Posted: 19 Mar 2010 06:35 AM PDT

I will keep this brief as my rational for the new found strength in the Dollar Index is more observational than “scientific”. Some things you just can’t back test or measure in a methodical fashion or I just haven’t figured out how to do it.

On January 19, 2010, I wrote “Expecting The Dollar Index To Rise For 2010″, and I based this statement on the fact that 1) the Dollar Index had bottomed back in early, 2008; and 2) the Dollar Index was actually in a secular bull trend having found support … [visit site to read more]
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