Mar 24, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

Is The IMF To Greece What China Is To The U.S.?

Posted: 24 Mar 2010 05:40 PM PDT

If Greece eventually gets funding from the International Monetary Fund (”IMF”), it may not be so different from the U.S. getting its funding from China. There are two main fears in the eurzone against IMF involvement: a perception that Europe can’t solve its problems internally; and the potential influence of the IMF on European policies.

With respect to the former, in our assessment, Europe needs to swallow its pride. The IMF is equipped to deal with Greece. The European Union simply does … [visit site to read more]


US Economic Outlook: Inverting The Cost-Benefit Structure

Posted: 24 Mar 2010 04:00 PM PDT

"When you visit India…and I suppose it is true when you visit China or Brazil too…you don't even notice at first…it's not so much a thought…but more like a feeling…"
We were explaining to colleagues why it's the end of the world as we have known it.
Back to that in a minute…
The Dow rose 102 points yesterday. If this keeps up we're going to have to amend our view.
In our way of looking at things…we are still in a prolonged bounce following the big drop of '08-'09. … [visit site to read more]

New Home Prices: More Room To Fall

Posted: 24 Mar 2010 03:48 PM PDT

Over the past 48 hours, the Census Bureau and the National Association of Realtors have announced new and existing home sales, respectively, for February. As expected (at Financial Armageddon, at least) neither set of data points offered any real encouragement for those who keep harping on about a recovery in the sector.
In fact, a comparison of annualized sales and median price trends for both data series reveals an interesting divergence — one that suggests new home prices will need to fall … [visit site to read more]

US Inflationary Excesses: Understating The Obvious

Posted: 24 Mar 2010 03:45 PM PDT

Being a guy who understands that inflation in prices is the cause of economic misery, and also being a guy who spends a lot of his Precious Mogambo Time (PMT) politely informing people that they are morons for not buying gold, silver and oil to protect themselves from the inflation that must – must! – result from the Federal Reserve creating so much excess money and credit, I was very, very, VERY interested in the U.S. Bureau of Labor Statistics report that their Consumer Price Index for … [visit site to read more]

Synopsys Completes CoWare Deal

Posted: 24 Mar 2010 03:44 PM PDT

Leading electronic design automation (EDA) company Synopsys, Inc. (NASDAQ:SNPS) recently declared the completion of its acquisition of CoWare, Inc., which is also in the business of selling software and services for electronic systems design.
The company expects this acquisition to augment its portfolio of design and verification products, particularly for wireless, consumer and automotive design. We also expect the newly acquired technology to help Synopsys to deliver solutions based on open … [visit site to read more]

CEMIG Depends On Sales Volume

Posted: 24 Mar 2010 03:26 PM PDT

Recently, Companhia Energetica de Minas Gerais, or CEMIG (NYSE:CIG) posted results for the fourth quarter and year 2009. Net income for the quarter was R$434 million (US$248 million), up from R$246 million (US$107.4 million) in the same quarter of 2008 based on a 22.0% increase in net revenues during the quarter.
EPS was R$0.70 or 40 cents compared to R$0.57 or 25 cents in the same quarter of 2008. Reported EPADR also surpassed the Zacks Consensus Estimate of 37 cents.
Net revenues reached R$3,370 … [visit site to read more]

Italian PM: Euro Screwed Us All

Posted: 24 Mar 2010 03:24 PM PDT

Italian Prime Minister Silvio Berlusconi issued a blunt rebuke to the euro when he blamed his predecessor, Romano Prodi, for getting Italy into a disaster. He stated, "I can say that Prodi's euro screwed us all."
According to The Independent:
"Mr Berlusconi's comments hit the euro, which is sensitive to on-going hostility from Italian government members, and it fell to a low of $1.2036, but later recovered thanks to a drop in German unemployment.
"The European Commission leapt to … [visit site to read more]

Cognex & Fuji Resolve Dispute

Posted: 24 Mar 2010 03:10 PM PDT

Cognex Corporation (NASDAQ:CGNX) announced that it has reached a settlement with Fuji Machine Manufacturing Co., Ltd. and its U.S. subsidiary Fuji America Corporation, relating to the import and sale of equipment using machine vision software.
Other terms of the resolution were not disclosed. Cognex’s dispute with other machine vision companies continues in the United States International Trade Commission and in the District Court of Massachusetts.
In May 2009, Cognex had filed a complaint with the … [visit site to read more]

Stocks: Scant Value In Momentum Market

Posted: 24 Mar 2010 03:01 PM PDT

I have discussed various yardsticks of evaluating US equities over the past few days. In short, my conclusion is that while the longer-term technical picture points to the cyclical bull market still being intact, short-term measures are exceedingly overbought and valuations look stretched whichever way you slice and dice the fundamental metrics.
Of course, bull markets can stay overbought and overvalued for a long time and it is a mug’s game to try and pre-empt tops. It’s called a … [visit site to read more]

Delta Faces Penalty

Posted: 24 Mar 2010 02:53 PM PDT

Delta Airlines (NYSE:DAL) has been slapped with charges amounting to $1.45 million for non-compliance with safety standards. The Federal Aviation Administration (FAA) indicted Delta for a lack of proper windshield wiring on 32 of Northwest Airlines' Boeing 757s that were flown from 2005 to 2008.
Northwest operations merged with those of Delta Airlines last year. A total of 90,000 passenger flights were airborne between these periods.
In its maintenance instructions written in April 1990, … [visit site to read more]

Earnings Estimate Scorecard: TGI

Posted: 24 Mar 2010 02:35 PM PDT

On February 4, Triumph Group, Inc. (NYSE:TGI) reported results for the third quarter of fiscal 2010. Net income was $18.1 million or $1.08 per share, down from $20.1 million or $1.21 for the third quarter of the prior year.
The decrease in net income was the result of a huge increase in operating expense, which was partially offset by the increase in net revenues during the quarter. Reported EPS was also below the Zacks Consensus Estimate of $1.2.
Triumph has a mixed track record of earnings … [visit site to read more]

Hyperinflationists Have It Wrong

Posted: 24 Mar 2010 02:28 PM PDT

There are undoubtedly many people in long gold positions wondering whether the old yellow dog is going to get up and bark again anytime soon. Although hyperinflation hyperventilation has been catching on in recent months, especially amongst the deficit errorists, gold has been dead money since late November 2009.
What gives? We lay it all in the June issue of The Richebacher Letter in a section titled "Weimar 2.0." As we point out, hyperinflation requires extreme conditions not just on the … [visit site to read more]

PMI Wins Freddie’s Approval

Posted: 24 Mar 2010 02:17 PM PDT

California-based PMI Group Inc.'s (NYSE:PMI) principal operating subsidiary PMI Mortgage Insurance Co. ("MIC”), announced yesterday that it has won approval from Freddie Mac (NYSE:FRE) for PMI Mortgage Assurance Co., ("PMAC”) to directly sell mortgage guaranty insurance in some states.
The approval gives PMAC the right to sell insurance in states where PMI's current mortgage operation doesn’t meet the minimum capital requirements.
Last month, the mortgage insurer got approval from Fannie Mae … [visit site to read more]

Video: Verizon Wireless To Launch Official Skype Application This Thursday

Posted: 24 Mar 2010 02:04 PM PDT

After much anticipation, Skype mobile for Verizon will be available starting March 25 according to both companies. … [visit site to read more]

How Perceptions Have Changed: The Dollar Is Not Better Than The Euro, And The Euro Is Not Better Than The Dollar

Posted: 24 Mar 2010 02:01 PM PDT

Not long ago the euro was rising, and everybody seemed to hate the U.S dollar. During that market phase I constantly asked a rhetorical question: Why do you think the euro is any better than the dollar?

Now the European sovereign debt problems are making headlines, and everybody seems to hate the euro. Again I ask a rhetorical question: Why do you think the dollar is any better than the euro?

The Dollar Is Not Better Than the Euro, And the Euro Is Not Better Than the … [visit site to read more]

Don’t Lose Sleep Over Intermezzo

Posted: 24 Mar 2010 02:00 PM PDT

On January 20, 2010, Transcept (TSPT) management met with the U.S. FDA to discuss the complete response letter issued October 28, 2009 on Intermezzo. The letter brought up issues on potential inadvertent re-dosing in a single night and inadvertent dosing with less than four hours of bedtime remaining.
The FDA also requested additional data demonstrating that Intermezzo, when taken as directed in the middle of the night, would not present an unacceptable risk of next-day driving ability. Prior … [visit site to read more]

Video: NYSE Closing Bell Market Monitor: BAC, LEN, MF

Posted: 24 Mar 2010 01:54 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]

Video: Crude Prices Decline On Inventory Surge

Posted: 24 Mar 2010 01:50 PM PDT

Front month crude prices declined this session following a larger-than-expected rise in crude prices. … [visit site to read more]

Happy 10th Anniversary, Nasdaq 5,000… Will We See You Again By 2020?

Posted: 24 Mar 2010 01:47 PM PDT

What does a bubble feel like?
Chances are, if you have more than three gray hairs and have owned a house in the last decade, you've lived through two of them.
When you're three years old, or you're positioned perfectly in the middle of a stock market bubble, they can be euphoric.
But they don't end well. And if you don't get out in time, it can be disastrous.
So how can you tell when you're in the bubble? And how do you get out in time?
The Attitude That Sent the Nasdaq to 5,000
In … [visit site to read more]

Ensco Changes Name

Posted: 24 Mar 2010 01:46 PM PDT

Ensco International plc (NYSE:ESV) will be known as Ensco plc, effective March 31, 2010. Management said that this name change is part of the company's move to its new headquarters in London.
 
Though the company will rename itself, it will continue with the same lines of business and trade on the New York Stock Exchange under the existing ticker symbol "ESV”. Ensco is a leading supplier of offshore contract drilling services to the oil and gas industry. The company's drilling fleet … [visit site to read more]

Consolidated Thompson (TSE:CLM) – New Mine “Low-Cost” With A “Long Life”

Posted: 24 Mar 2010 01:37 PM PDT

Consolidated Thompson Iron Mines (TSE:CLM), the exploration and development company based in Montreal, just started production at its new iron ore mine in northern Canada. With shipments underway soon, the company is already considering how to expand the mine in the near future.
For more details, we turn to Chris Mayer, Agora Financial's editor of Mayer's Special Situations:
"Consolidated Thompson (TSE:CLM) is building a great iron ore mine. Last week, we got news that production has … [visit site to read more]

Good News For Stryker

Posted: 24 Mar 2010 01:31 PM PDT

Stryker Corporation (NYSE:SYK) recently received a clean bill from the U.S. Food and Drug Administration (FDA), the latter declaring that the actions undertaken by the company to address the issues raised in a 2007 warning letter are sufficient. No further formal corrective actions are required by the company.
 
In 2007, the FDA had issued a warning letter to Stryker regarding compliance with certain quality system requirements at the company's reconstructive implant manufacturing … [visit site to read more]

PBCT Initiated As Neutral

Posted: 24 Mar 2010 01:14 PM PDT

Recently, we initiated coverage on People's United Financial Inc. (NASDAQ:PBCT) with a Neutral recommendation. The company's fourth quarter earnings of 8 cents per share were in line with the Zacks Consensus Estimate. While commercial loan portfolio and deposits experienced growth, bottom-line results declined due to higher non-interest expenses and loan loss provisions.
 
PBCT continues to benefit from a healthy business portfolio that has grown inorganically over time. While the … [visit site to read more]

Polycom Makes Deal With H-P (revised)

Posted: 24 Mar 2010 01:13 PM PDT

In its efforts to counter the competitive threat from rival Tandberg, Polycom Inc. (NASDAQ:PLCM) scores a major gain.
Hewlett-Packard Co. (NYSE:HPQ) will continue to provide support and integration services on Tandberg to customers that want Tandberg technology as part of their unified communications and collaboration solution, but HP has entered into a strategic agreement with Polycom to sell its video conferencing products. According to Gartner Inc, the video conferencing market will grow at a CAGR … [visit site to read more]

Do Traders Add Value To Society?

Posted: 24 Mar 2010 01:01 PM PDT

Do traders add value to society? Or does their activity place a useless burden on stock markets? As a trader himself, Justice explores…

A few days ago, an interesting note showed up in the Taipan Daily mailbag. Via e-mail, reader James K. wonders aloud whether traders add value to society. He isn’t sure that they do.

Here is an excerpt:

Dropping a ton of money into a company, running it up, and then pulling out your winnings can’t be much benefit to society as a whole. It’s not … [visit site to read more]

Nike Remodels Factory Store

Posted: 24 Mar 2010 12:54 PM PDT

Nike Inc. (NYSE:NKE), a premier sports footwear, apparel and equipment manufacturing company, is currently remodeling its Factory Store in San Marcos, Texas, to give it a fresh makeover ahead of the FIFA World Cup Soccer scheduled to commence in June 2010.
 
With the refurbished look, Nike anticipates to attract more customer footfalls to capitalize on the growing popularity of soccer. The strategic move is also a part of the long-term plan to achieve a sales target of $23 billion by fiscal … [visit site to read more]

Video: “Markets Still Building Mmentum Despite Data”

Posted: 24 Mar 2010 12:49 PM PDT

Floor trader David Henderson shares his reasoning behind this sessions economic data and shares how he believes the markets will perform for the rest of the week. … [visit site to read more]

FDA Panel Rules Vs. Pixantrone

Posted: 24 Mar 2010 12:38 PM PDT

In a major disappointment for Cell Therapeutics' (CTIC), the US Food and Drug Administration’s (FDA) Oncologic Drugs Advisory Committee unanimously decided against the approval of the company's lead candidate pixantrone, citing lack of sufficient clinical data.
 
Cell Therapeutics is seeking approval of pixantrone for the treatment of relapsed or refractory aggressive non-Hodgkin's Lymphoma (NHL) in patients who have not responded to other treatment options.
 
Although the … [visit site to read more]

CenterPoint Energy Gets Grant

Posted: 24 Mar 2010 12:23 PM PDT

CenterPoint Energy Inc.'s (NYSE:CNP) electric transmission and distribution subsidiary, CenterPoint Energy Houston Electric, LLC, has signed an agreement with the U.S. Department of Energy (DOE) for a $200 million stimulus grant for its advanced metering system and intelligent grid projects.
 
The agreement is the culmination of negotiations that began in November 2009 after the DOE selected CenterPoint Energy as one of the six utilities to receive the maximum smart grid grant under the … [visit site to read more]

The Second Huge Stem Cell Breakthrough In A Week

Posted: 24 Mar 2010 12:13 PM PDT

This has been a singularly historic week in the annals of regenerative medicine. First, BioTime (AMEX:BTIM) CEO Dr. Michael West published proof that he can turn any adult cell into a completely rejuvenated stem cell. These induced pluripotent stem cells are as powerful as embryonic stem cells, but with none of the disadvantages. Then, in the same week, equally historic news came from International Stem Cell Corp. (OTCBB:ISCO) about its parthenogenic stem cells.
I'll explain the ISCO … [visit site to read more]

Eastman Expands Operation

Posted: 24 Mar 2010 12:07 PM PDT

Eastman Chemical Company's (NYSE:EMN) joint venture with SK Chemicals Company Ltd. (a Korean chemical company) − Eastman Fibers Korea Limited − has opened a new acetate tow manufacturing plant in Ulsan, Korea.
The new plant will produce 27,000 tons of cellulose acetate tow, a material used in cigarette filters. According to Eastman, production from the new plant will increase its total cellulose acetate tow capacity by about 15%, ramping up to 200,000 tons per annum. Eastman will source … [visit site to read more]

Video: 03/24 FX Options Report

Posted: 24 Mar 2010 11:43 AM PDT

The USD gained across the board. EUR/USD fell to multi-month lows, dragged down by ongoing debt fears over Greece and Portugal. … [visit site to read more]

Why The Best Investing Strategy Is Not Always The Best Trading Technique

Posted: 24 Mar 2010 11:32 AM PDT

Wednesday, March 24, 2010: Issue #1223
At the Investment U Conference in San Diego last week, I gave a talk called, "The Secret of the World's Greatest Investors."
What is that secret? I'll give you three hints:

Lord Rothschild said, "The time to buy is when there's blood running in the streets." He added that the way he got rich was he "always sold too soon."
John Templeton, the man who almost single-handedly pioneered the field of global investing, said the best bargains … [visit site to read more]

3 Ways “Free” Health Care Will Cost You Dearly

Posted: 24 Mar 2010 11:30 AM PDT

The health care reform bill has passed. Any time a bill this expensive and complicated gets this far along in the lawmaking process it's worth a second, closer look at the details that are likely to cause you the most heartburn.
Here are three points in particular from John Stossel at Fox Business:
"1) The ban on "discriminating" against anyone with a pre-existing condition. This is popular, and yet one of the most damaging part of the bill. It forbids insurance companies … [visit site to read more]
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