Apr 6, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

Your Choices For Keeping Cash Safe

Posted: 06 Apr 2010 12:01 PM PDT

Every time Easter approaches, I find myself thinking of baskets, eggs and all the other words we investors typically associate with portfolios and diversification.

So I was certainly ready with plenty of holiday-themed metaphors when a friend e-mailed me to say he’d sold his house and wanted advice on what to do with the proceeds.

Of course, the first thing I told him might surprise you: I didn’t say to invest in dividend stocks. Rather, I said his primary goal should be … [visit site to read more]

Avnet Expands Asian Presence

Posted: 06 Apr 2010 12:01 PM PDT

Avnet, Inc. (NYSE:AVT) announced that it would acquire certain assets of PT Datamation Purwana Utama and PT Mitra Bisinfo Utama (Datamation) of Indonesia.
 
Datamation is a value-added IT distributor providing server, storage and software products to enterprise system integrators and resellers throughout Indonesia. Datamation distributes a range of IT infrastructure products from leading suppliers including APC, HP, IBM, Lenovo NetApp and VMware from its headquarters in Jakarta and a sales … [visit site to read more]

VPHM Initiates Mid-Stage Study

Posted: 06 Apr 2010 11:46 AM PDT

Recently, ViroPharma Inc. (NASDAQ:VPHM) announced the initiation of a mid-stage study to evaluate Cinryze (C1 Esterase Inhibitor (Human)) for treating acute angioedema attacks in children (n=12) suffering from hereditary angioedema (HAE). 

A child has an even probability of being affected with hereditary angioedema if a parent suffers from HAE since it is an autosomal dominant disease. HAE is a rare, severely debilitating, fatal genetic disease caused by the deficiency of C1 inhibitor, a … [visit site to read more]

Pervasive Narrows Guidance

Posted: 06 Apr 2010 11:31 AM PDT

Pervasive Software Inc. (NASDAQ:PVSW) updated its guidance for the third quarter of fiscal 2010. The company now expects revenues of around $11.5 million - $11.7 million compared to the previous guidance of $11.0 million - $12.0 million. 

Earnings per share is now projected around 6 cents - 7 cents compared to the earlier forecast of 4 cents - 7 cents. This excludes amortization of purchased intangibles and stock-based compensation expense. Including these, EPS is … [visit site to read more]

Allegheny Sees Hike In W.Virginia

Posted: 06 Apr 2010 11:16 AM PDT

Allegheny Energy (NYSE:AYE) reached an agreement with the Public Service Commission of West Virginia, the Consumer Advocate Division and other parties regarding its request for a base rate hike. However the approval of the Public Service Commission of West Virginia is pending. 

Allegheny Energy, as per the agreement, will receive a base rate increase of 3.8% ($40 million annualized) with effect from Jun 29, 2010. Subsequently, effective Jan 1, 2011, the company's base rates will increase … [visit site to read more]

Why The Indian Stock Market Is Booming – And How You Can Take Advantage

Posted: 06 Apr 2010 11:16 AM PDT

Tuesday, April 6, 2010: Issue #1232
The Indian stock market is booming.
Having fallen along with other world markets during last year's crash, it actually bucked the global trend and was nowhere near testing its multi-year lows. And on Monday, Indian shares hit a 25-month high.
India's stock market returns over the past couple of years have actually beaten most other global markets. And with good reason…

While it's still classed as an emerging market, India's strength comes from the … [visit site to read more]

How To Stop Greedy Banks From Destroying U.S. Capitalism

Posted: 06 Apr 2010 11:01 AM PDT

A white paper on bank reform delivered to Congress and regulators last week by the Association of Mortgage Investors - the powerful lobbying group that represents huge institutional investors - warns that if the securitization market isn’t radically reformed “it will be difficult if not impossible for capital market investors to return to funding economic activity.”

What the report doesn’t say is that banks - standing in the way of bank reform - don’t want a simplified, standardized, … [visit site to read more]

Data Point Deceptions And The Lackluster Recovery

Posted: 06 Apr 2010 11:01 AM PDT

With all eyes on the Dow's advance toward 11,000 yesterday, your California editor fixed his eyes on the 10-year Treasury's advance toward 4.00%. By the end of the trading session, only one of the two had reached its target.

The 10-year Treasury kissed 4.00% – up from 3.20% just four months ago and up from 2.05% during the panic lows of late 2008. What does this rapid run-up in rates signify…and should we care?
"Don't know" and "Not sure," would be our responses. But let's … [visit site to read more]

CSC Raises Guidance

Posted: 06 Apr 2010 11:01 AM PDT

Falls Church, Virginia-based Computer Sciences Corp. (NYSE:CSC) has raised its full-year earnings per share to $5.05 - $5.15 per share, up from its previous guidance of $4.80 - $5.00 per share. 

The company expects to meet its revenue and operating margin targets. Accordingly, the revenue guidance remains unchanged at $16.0 billion to $16.5 billion, while operating margin guidance remains in the 8.6% to 8.8% range. The operating margin guidance implies an expansion of 25 to … [visit site to read more]

Buy-and-Hold Isn’t Dead: It’s More Important Than Ever

Posted: 06 Apr 2010 10:52 AM PDT

When it comes to the business of investing, there is no shortage of disagreements, and the rise of the ETF industry has added fuel to many of these fires. The active versus passive debate is always a hot topic, but a resolution to this divisive issue is nowhere in sight. A spin-off of this head-to-head battle has also intensified in recent years, as a growing number of investors and advisors have eschewed the traditional buy-and-hold philosophy in favor of "trend following" investing. There … [visit site to read more]

What’s Driving The Palladium ETF (PALL)?

Posted: 06 Apr 2010 10:49 AM PDT

When ETF Securities finally cleared the last of the regulatory hurdles last year and geared up to introduce the first physically-backed platinum and palladium ETFs, investor interest quickly surged. Although futures-based exposure to platinum had been available for several years, exposure to physical bullion prices represents an entirely different asset class–apparently one that investors were eager to access. As the buzz around these funds intensified, it became clear that commodity … [visit site to read more]

AAR Corp.’s New Contract

Posted: 06 Apr 2010 10:46 AM PDT

AAR Corp. (NYSE:AIR) has won a $24 million contract from the U.S. Army. According to the contract, the company will provide shelters for the Army. The company manufactures and designs special equipment and mobile tactical shelters for rapid deployment, which are generally used to mobilize, deploy and sustain forces.
 
A few days back, AAR Corp. received a $90 million contract from Bombardier Aerospace, Belfast, to design and manufacture composite flap track fairings for the wings of its new … [visit site to read more]

Merge Receives Fund

Posted: 06 Apr 2010 10:28 AM PDT

Merge Healthcare Incorporated (NASDAQ:MRGE) recently received $41.75 million from 14 institutional and other accredited investors when it completed a private placement of preferred and common stock with them. The fund will be used for the proposed acquisition of AMICAS Inc. (NASDAQ:AMCS). 
 
Merge is set to acquire AMICAS for $6.05 per share in cash aggregating $248 million. The acquisition is expected to be completed in the second quarter of 2010.
 
Merge has already obtained $200 … [visit site to read more]

AMAG Pharma Inks Deal

Posted: 06 Apr 2010 10:13 AM PDT

Recently, AMAG Pharmaceuticals Inc. (NASDAQ:AMAG) and Japan-based Takeda Pharmaceutical Co. Ltd. entered into a license, development and commercialization deal related to AMAG's Feraheme (ferumoxytol) injection for intravenous (IV) use across all potential indications for the drug.
 
Feraheme is an intravenous iron-replacement therapy for fighting anemia in patients with chronic kidney disease (CKD). The drug can be used by patients irrespective of dialysis.
 
The deal, potentially … [visit site to read more]

Summers To The US Economy: Bang, Zoom, Straight To The Moon!

Posted: 06 Apr 2010 10:00 AM PDT

No matter how absurd things get, they can always become more absurd.
"Summers: US nears 'escape velocity'
That's the headline on the weekend Financial Times.
Summers is jubilant. He got the latest employment figures on Friday. They tell the story of an economy that he thinks is headed into outer space, with 162,000 new jobs created in March. Hallelujah…all this intervention by the feds is paying off! Thank God Summers was on the job. If he hadn't been…well, the economy would have … [visit site to read more]

Gafisa Prices Global Offering

Posted: 06 Apr 2010 09:55 AM PDT

Gafisa S.A. (NYSE:GFA), one of Brazil’s leading diversified national homebuilders, has recently priced the global offering of its 74 million common shares and ADS (American Depository Shares). The ADSs were offered at US$14.03 each and the shares were offered at R$12.50 each. Each ADS equals two common shares.
 
The proceeds are expected to be used to acquire land and for strategic joint ventures and acquisitions, working capital and new developments.
 
Gafisa is extremely well … [visit site to read more]

Morning Stock Market Movers: Regions Financial, BP, International Game Technology

Posted: 06 Apr 2010 09:30 AM PDT

Regions Financial Corp. (NYSE:RF) - Shares of the provider of banking and bank-related services are up more than 6% in morning trading at a new 52-week high of $8.74 after receiving a plethora of analyst upgrades. Yesterday, Regions Financial was raised to 'buy’ from 'hold’ and given a 12-month target share price of $10.00 at Collins Stewart. Regions’ target share price was also raised to $8.00 from $7.00 at Credit Suisse this morning. Bullish options traders feasted on fresh call options at … [visit site to read more]

Australian Dollar: The Downside Prevails

Posted: 06 Apr 2010 09:17 AM PDT

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

Canadian Dollar: The Downside Prevails

Posted: 06 Apr 2010 09:17 AM PDT

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

Potential Reversal In Russell 2000 Index

Posted: 06 Apr 2010 09:11 AM PDT

I’ve looked at these many times in the past but we have another example today that may be worth taking note of.

The Russell 2000 just broke higher out of the recent volatility coil. Admittedly the coil was a bit sloppy which may call into question the validity of the signal. But as I’ve noted in the past, most of the time the initial move out of one of these coils tends to be a false move followed by a more powerful and more durable move in the opposite direction.

Considering … [visit site to read more]

Staples In Neutral Lane

Posted: 06 Apr 2010 09:02 AM PDT

We are maintaining a Neutral rating on Staples Inc. (NASDAQ:SPLS), the world's leading retailer of office products and services, with a target price of $24.00.
 
Staples, which anticipates a moderate recovery in the economy in fiscal 2010, is making prudent investments in the highly fragmented North American retail market. The company intends to expand its business technology (EasyTech) and copy-and-print services that generate higher profit margins, while enhancing its core supply … [visit site to read more]

Allergan Expands Urologics Portfolio

Posted: 06 Apr 2010 08:45 AM PDT

Allergan, Inc. (NYSE:AGN) recently entered into an agreement with Serenity Pharmaceuticals, for the development and commercialization of Ser-120, which is being studied for the treatment of nocturia. Nocturia, which is characterized by frequent urination during the night, is a common urological disorder observed in adults. 

Allergan will make an upfront payment of $43 million to Serenity for exclusive worldwide rights for the development, manufacture and commercialization of Ser-120. The … [visit site to read more]

AIG Raises Top Executives’ Salary

Posted: 06 Apr 2010 08:30 AM PDT

American International Group (NYSE:AIG) has raised the salaries for its Chief Financial Officer (CFO) and a senior insurance executive. In a regulatory filing last Friday, the company announced the 2010 pay packages of CFO David Herzog and Kristian Moor, who leads AIG’s global property-and-casualty-insurance business.
David Herzog would receive an annual cash salary of $495,000 and annual stock salary of $4.49 million in 2010. Additionally, he is eligible to receive up to $1.02 million as a … [visit site to read more]

Cocoa Grapples With Demand Question

Posted: 06 Apr 2010 08:17 AM PDT

Fundamentals
Cocoa futures seemed to have momentarily stalled, after flirting with the 3000 level last week. Traders seemed to be a bit less optimistic about the demand situation, with many market observers noting that chocolatiers and other end users of Cocoa beans seem well supplied at the moment. This puts users in a very advantageous position, where they can wait for prices to fall before making additional purchases. This is a letdown for Cocoa bulls, who believed that the slowing of Ivory … [visit site to read more]

Enterprise Buys Natural Gas Assets

Posted: 06 Apr 2010 08:15 AM PDT

Enterprise Products Partners L.P. (NYSE:EPD), a leading master limited partnership (MLP), is buying two natural gas gathering and treating systems for approximately $1.2 billion from M2 Midstream LLC (”Momentum”). The two systems are State Line system and the Fairplay system. 

Located in De Soto and Caddo parishes, Louisiana, and Panola County, Texas, the State Line system consists of 138 miles of natural gas pipeline, with a daily capacity of approximately 400 million cubic feet (MMcf) and … [visit site to read more]

Forex Trading: GBPUSD Moves Higher Toward Next Resistance Target

Posted: 06 Apr 2010 08:01 AM PDT

The GBPUSD is moving higher after moving above the 100 bar MA on the 5 minute chart (see morning video quick on the GBPUSD by clicking here). The price is up testing the next target at the 38.2% retracement at the 1.5197 level. Above that is the 200 bar MA on the same chart at the 1.5205 level.
Further above is the key 100 hour MA at the 1.5232 … [visit site to read more]

GlobalShares Launches Three New ETFs (GSZ, GSO, GSW)

Posted: 06 Apr 2010 07:38 AM PDT

Old Mutual Global Index Trackers, a South Africa-based division of asset Manager Old Mutual, launched three new ETFs on Tuesday, bringing the number of funds in its product line to five. The new ETFs include:

GlobalShares FTSE All-Cap Asia Pacific Ex Japan Fund (GSZ)
GlobalShares FTSE All-World ex U.S. Fund (GSO)
GlobalShares FTSE All-World Fund (GSW)

GSZ will track the performance of the FTSE All Cap Asia Pacific Ex Japan Index, a benchmark comprised of companies in the Asia Pacific … [visit site to read more]

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