Mar 8, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

Is The Market Always Right?

Posted: 08 Mar 2010 05:01 PM PST

Arguing with the market in the short term is an exercise in futility - all it gets you is frustrated, or maybe even thrown out of the game.

How do you do well in markets? Easy - just buy low and sell high. Make sure the trend is your friend, then cut your losses and let your profits run. If you can just remember that it’s mind over matter and practice makes perfect, in no time at all you’ll be on easy street.

Okay, enough of that. Ugh.

The point of that opening paragraph - sarcasm, as … [visit site to read more]


Gravest Financial Dangers And Greatest Profit Opportunities

Posted: 08 Mar 2010 04:01 PM PST

We now face the gravest financial dangers - and the greatest profit opportunities - in two generations.

But before I tell you about what the future could bring, let me tell you how my family and I have come to this place and time.

Over a half century ago, my father founded our Sound Dollar Committee, a nonprofit organization with a clear mission - to promote a balanced budget, avoid the erosion of America’s credit, and defend the U.S. dollar.

And nearly four decades ago, I founded … [visit site to read more]

Cartoon: Soaring Deficit

Posted: 08 Mar 2010 03:01 PM PST

Source: Nate Beeler, Comics.com, March 1, … [visit site to read more]

DuPont To Open A New Facility

Posted: 08 Mar 2010 02:30 PM PST

The world’s second-leading chemical company, DuPont (NYSE:DD) has recently announced that its subsidiary, Pioneer Hi-Bred, plans to construct a commercial and parent soybean seed production facility in New Madrid County, Missouri. Pioneer is building the $55 million project to meet rising demand for its products and help farmers meet the strong global demand for grain.
Pioneer Hi-Bred, a DuPont business, is the world’s leading source of customized solutions for farmers, livestock producers and … [visit site to read more]

Virgin Media On Super-fast Wideband

Posted: 08 Mar 2010 02:15 PM PST

Virgin Media Inc. (NASDAQ:VMED), a leading cable MSO in the U.K., is all set to introduce the super-fast EuroDOCSIS 3.0 (Wideband) network offering with a downstream speed of 100 Mbps and an upstream speed of at least 10 Mbps by the end of 2010. The company currently offers EuroDOCSIS 3.0 network in three different tiers, offering downstream speed of 10 Mbps, 20 mbps, and 50 Mbps. Virgin Media added 63,600 cable broadband subscribers in the fourth quarter 2009, an increase from over 57,100 added in … [visit site to read more]

Medtronic Retains Neutral Rec

Posted: 08 Mar 2010 02:00 PM PST

Medtronic, Inc. (NYSE:MDT) is balanced currently in terms of performance following its strong third quarter fiscal 2010 results. The earnings estimate revision for the company also demonstrated a mixed trend in the past seven days after its results were posted. This satisfies our Neutral recommendation for the stock with a Zacks #3 Rank.
Quarterly Results
Medtronic recently reported third quarter fiscal 2010 earnings per share of 77 cents, beating the Zacks Consensus Estimate of 76 cents and the … [visit site to read more]

Limited Brands On The Rise

Posted: 08 Mar 2010 01:40 PM PST

Limited Brands Inc.'s (NYSE:LTD) sustained focus on cost containment, inventory control, merchandise initiatives and effective capital management has kept it afloat in a difficult consumer environment. The company ended fiscal year 2009 and posted better-than-expected earnings results.
The quarterly earnings of $1.01 per share outdid the Zacks Consensus Estimate of 98 cents and rose 49% from 68 cents delivered in the prior-year quarter. Net sales for the quarter rose 2% to $3,063.4 million, … [visit site to read more]

Video: NYSE Closing Bell Market Monitor: AIG, HPQ, BK, MCD

Posted: 08 Mar 2010 01:38 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: VNQ Jumps, UNG Slips

Posted: 08 Mar 2010 01:36 PM PST

Following Friday's jobs report, which came at the end of a week full of widely-anticipated data releases, trading got off to a slow start Monday, as most benchmarks finished nearly unchanged on the day. Overseas, Greek Prime Minister called on U.S. officials to investigate speculation in currency markets, alleging that current borrowing costs threatened to derail the country's fragile financial state. "We will have a very hard time implementing our reform program if the gains from our … [visit site to read more]

Agilent On Road To Recovery

Posted: 08 Mar 2010 01:20 PM PST

Following stellar results in the fiscal first quarter ended January 2010, Agilent Technologies' (NYSE:A) CFO, Adrian Dillon, has left the company. However, despite Dillon's long stint at Agilent, share prices did not reflect concern due to his departure. This is mainly because the company's end markets are seeing strong recovery that Agilent is well positioned to take advantage of.
Stronger Markets
Revenue was ahead of the Zacks Consensus in the last quarter, with North America … [visit site to read more]

When Is The Best Time For You To Look At Junior Miners?

Posted: 08 Mar 2010 01:05 PM PST

After a relatively quick run up in the value of gold, when's a good time to consider taking another look?  Recently, the Wall Street Journal examined the junior miners, and the good opportunities there may be for investors interested in wisely timing stock purchases of early-stage firms.
From Wall Street Journal:
"For too many investors, though, this pursuit of El Dorado ends up as a financial nightmare. Even if you are lucky enough to pick a miner that finds a rich vein of gold, you … [visit site to read more]

Merge Set To Acquire AMICAS

Posted: 08 Mar 2010 01:02 PM PST

Merge Healthcare Inc. (NASDAQ:MRGE) is set to acquire AMICAS, Inc. (NASDAQ:AMCS) for $6.05 per share in cash aggregating $248 million. Merge’s bid is well ahead of Thoma Bravo LLC’s bid of $5.35 per share in cash. The acquisition is expected to be completed in the second quarter of 2010.
The companies have opted for a cash tender offer for all of AMICAS’ outstanding common stock. The offer is expected to commence in about two weeks. Any untendered shares of AMICAS common stock will be converted into the … [visit site to read more]

Active ETFs Don’t Compete With Index ETFs

Posted: 08 Mar 2010 01:01 PM PST

When comparisons are made between actively-managed ETFs and their competitors, they are often compared with their passive counterparts. The 4 pillars of the ETF structure that gives it such an advantage is their liquidity, tax efficiency, transparency and of course low cost. The argument is made that Active ETFs are deficient to Index ETFs because they are usually more costly, less tax efficient because of more trading costs, and less transparent because active managers are reluctant to … [visit site to read more]

S&P May Downgrade Valmont

Posted: 08 Mar 2010 12:47 PM PST

Standard & Poor’s Ratings Services has put Valmont Industries Inc. (NYSE:VMI), the U.S. maker of lighting poles and support structures, on a negative credit review. The news comes after VMI announced that it has agreed to acquire British industrial engineering firm Delta Plc. for £284.5 million ($429.1 million) in cash. The offer represents a premium of 20.3% to Delta’s closing price on March 3, 2009.
Standard & Poor’s may downgrade Valmont due to the debt the company is taking on with … [visit site to read more]

CBO Debt Projections: Make Room For “Crowding Out”

Posted: 08 Mar 2010 12:43 PM PST

The latest deficit projection from the Congressional Budget Office was conveniently revealed just prior to the close of business on Friday.
"Why so?" You ask suspiciously.
"Because," we respond in a hushed tone.
The CBO's latest numbers reveal that President Obama's proposed fiscal 2011 budget would add $9.7 trillion to the national debt over the next 10 years. The White House projection is only slightly less staggering – $8.5 trillion.
Further, the CBO projects the national debt … [visit site to read more]

Video: Panasonic Partners With Best Buy To Market 3D TV’s

Posted: 08 Mar 2010 12:41 PM PST

Panasonic announced plans Monday to partner with Best Buy to market and boost sales of its 3D TV’s in the United States. … [visit site to read more]

Video: Crude Prices Trade Flat

Posted: 08 Mar 2010 12:40 PM PST

Front month crude prices were trading within a tight range this session following a lack of economic data. … [visit site to read more]

Manulife Expands In China

Posted: 08 Mar 2010 12:32 PM PST

Manulife Financial Corporation (NYSE:MFC) is continuously growing its operations in China. Recently, the China Insurance Regulatory Commission (CIRC) has approved Manulife-Sinochem, Manulife’s joint venture company, to operate in Linyi and Yancheng. Manulife-Sinochem is now licensed in 41 cities of China.
Manulife-Sinochem is a joint venture company between Manulife (International) Limited (51%) and China Foreign Economic and Trade Trust & Investment Company, a member of the Sinochem group … [visit site to read more]

Volcano Reports Higher Revenues

Posted: 08 Mar 2010 12:17 PM PST

Volcano Corporation (NASDAQ:VOLC) reported EPS of 9 cents in the fourth quarter; well above the Zacks Consensus Estimate for a loss of 3 cents, and the year-ago result of 4 cents. Fourth-quarter revenues increased 44% to $71 million.
Including one-time items, the company reported a loss of 25 cents, down from the year-ago net income of 3 cents.
For the full year, the company reported a loss of 23 cents, down from 4 cents in the year-ago period. Full year revenues increased 33% to $227.9 million. … [visit site to read more]

DISH Shows Signs Of Turnaround

Posted: 08 Mar 2010 12:02 PM PST

Earnings estimates for DISH Network Inc. (NASDAQ:DISH) are on the rise following the company's encouraging financial results for fourth quarter 2009 with significant growth in net subscriber additions. Fourth quarter EPS of 40 cents was above the Zacks Consensus Estimate of 33 cents. Quarterly total revenue also increased 1.4% to $2.96 billion, from $2.92 billion in the year-ago period.
DISH is the second largest satellite TV provider in the U.S. after DIRECT TV (NASDAQ:DTV) and the third largest … [visit site to read more]

Six Stocks With Healthy Dividends

Posted: 08 Mar 2010 12:01 PM PST

It’s been a tough time for income investors lately.

Ten-year Treasuries pay less than 4%. The Standard & Poor’s 500 Index yields just over 2%. Money market fund returns are microscopic, paying an average of just 0.05%. (At that rate, it will take your money one thousand years to double.)

What should you do?

Take a look not at the stock market, but inside it. The S&P 500 may yield 2.1%, but many individual stocks are yielding far more. In addition, yields are about to arch … [visit site to read more]

ENSCO: A Mixed Bag Of Revisions

Posted: 08 Mar 2010 11:46 AM PST

Despite modestly better-than-expected fourth quarter results, earnings estimates of the first two quarters and full-year 2010 for ENSCO International plc (NYSE:ESV) are on a downtrend. However, for 2011, estimates are on the rise.
Fourth Quarter Recap
Earnings per share from continuing operations came in at $1.24 in the fourth quarter of 2009, topping the Zacks Consensus Estimate of $1.22. However, on a year-over-year basis, ENSCO's earnings per share declined 42%, while revenues were down 17.4% … [visit site to read more]

Bail Out Our Schools

Posted: 08 Mar 2010 11:41 AM PST

Any day now, the Obama administration will announce $4.35 billion in extra federal funds for under-performing public schools. That's fine, but relative to the financial squeeze all the nation's public schools now face it's a cruel joke.
The recession has ravaged state and local budgets, most of which aren't allowed to run deficits. That's meant major cuts in public schools and universities, and a giant future deficit in the education of our people.
Across America, schools are … [visit site to read more]

Consumer Debt And The Supply-Demand Dynamic

Posted: 08 Mar 2010 11:34 AM PST

I was recently reminded of the old argument about Say's Law, and that reminded me that it was Keynes who twisted Say's theories around to create the ridiculous argument that supply created its own demand, which I say is a load of crap, which pretty much sums up a lot of what Keynes did, probably because he was an egotistical idiot-savant who erroneously thought that he could put economics and human behavior in terms of absolutes that you could turn into equations, a particular, arrogant … [visit site to read more]

Northrop Wins Navy Contract

Posted: 08 Mar 2010 11:32 AM PST

Northrop Grumman Corporation (NYSE:NOC) was awarded a contract by the U.S. Navy for its Consolidated Afloat Networks and Enterprise Services (CANES) program. The company will streamline and update shipboard network systems to improve interoperability and affordability across the U.S. Navy's fleet.
 
Northrop's technology and services partner for the contract is Bethesda, Maryland based IBM Global Business Services, part of International Business Machines Corporation (NYSE:IBM).
 
The … [visit site to read more]

NYSE Initiated As Neutral

Posted: 08 Mar 2010 11:17 AM PST

Recently, we have initiated coverage on NYSE Euronext Inc. (NYSE:NYX) with a Neutral recommendation. The company's fourth quarter operating earnings per share of 58 cents came in substantially ahead of the Zacks Consensus Estimate of 48 cents, reflecting an increased momentum in the business model, continuing benefit of the various cost reduction programs and successful integration of the NYFIX acquisition. However, the top line declined on weak volumes.
 
NYSE continues to drive its … [visit site to read more]

$WMT, $MCD - My Two Favorite Stocks For Generating Income In Today’s Market

Posted: 08 Mar 2010 11:17 AM PST

By Tom Dyson

In last week’s DailyWealth, Steve Sjuggerud published compelling research suggesting the worst is past and there’s another bubble coming. The Federal Reserve is the reason. We’ve never before seen recessions when the Federal Reserve is in “accommodating” mode and interest rates are at zero.

“The recession is most certainly over,” he wrote. “In fact, the more likely scenario is a boom.”

I hate to take the opposite side of a trade from Steve. He has an uncanny ability to always be … [visit site to read more]

Forex Trading: USDJPY In A Quiet Range As The Market Consolidates The Sharp Two Day Gains.

Posted: 08 Mar 2010 11:11 AM PST

The USDJPY has been in a quiet range in the NY session. The low in the NY session has gone down to 90.21. The high has reached 90.48.  The price is trading in between the two extremes at the 90.35.  This is also where the 100 and 200 bar MA on the 5 minute chart is found.  The close on Friday was 90.33.  The price is at it's equilibrium level.

The consolidation is not all surprising. On Friday the price moved from a low of 88.97 to the high today at … [visit site to read more]

Japanese Small-Caps Hold Big Rewards For Contrarian Investors

Posted: 08 Mar 2010 11:06 AM PST

Mention Japan to any global money manager and he or she will probably react with a frustrated look and a weary sigh.
That's because too many investors have lost fortunes trying to call Japan's market bottom ever since the Nikkei 225 index began falling from its peak of 40,000 in 1989. So naturally, skepticism runs deep about any real improvement over there.
But this time may be different.
Really.
After all, Japan has a new government with new ideas of how to run the country. In taking … [visit site to read more]

China Seeks To Reduce Risk While Continuing Economic Expansion

Posted: 08 Mar 2010 11:01 AM PST

Chinese Premier Wen Jiabao on Friday pledged to maintain economic growth of at least 8% in 2010, while gradually drawing down government spending and taking measures to guard against inflation and potentially devastating asset bubbles.

The remarks came during Wen’s annual report to the National People’s Congress in Beijing - which is the equivalent of the United States’ State of the Union speech - and they highlight the central government’s determination to promote responsible levels of … [visit site to read more]

Goldman Vends Prysmian Stake

Posted: 08 Mar 2010 10:58 AM PST

In a bid to contract the size of its private property holdings in Italy, on March 5, Goldman Sachs Group Inc. (NYSE:GS) sold its remaining 16.8% share in Prysmian SpA, an Italy-based cable maker, through Goldman International. Accordingly, about 31.9 million shares were sold at a price of €12.75 per share for a deal worth approximately €396 million ($538 million). Goldman had acquired Prysmian in 2005 through a private equity deal.
 
While 1.5 million shares were acquired by Prysmian's … [visit site to read more]

Good News For Cell Therapeutics

Posted: 08 Mar 2010 10:46 AM PST

In a positive development, Cell Therapeutics (CTIC) announced that the US Food and Drug Administration (FDA) has completed its inspection of the company's manufacturing facility in Italy and found it to be compliant with all the required norms. The facility manufactures Cell Therapeutics' Pixuvri (pixantrone), which is currently under FDA review.
 
Cell Therapeutics is seeking FDA approval of pixantrone for the treatment of relapsed or refractory aggressive non-Hodgkin's Lymphoma … [visit site to read more]

From The Greenspan Put To The Kohn Put: Our Brilliant Central Bankers

Posted: 08 Mar 2010 10:45 AM PST

Federal Reserve Vice Chairman Donald Kohn announced his retirement on March 1, 2010. In his obligatory lament, Federal Reserve Chairman Ben S. Bernanke was half right: "The Federal Reserve and the country owe a tremendous debt of gratitude to Don Kohn." What is good for the Fed is generally not good for the country. The influence of Donald Kohn supports this view.
A rarity, Kohn rose through the ranks of the Federal Reserve System. After 32 years of grunt work, he was named a Federal … [visit site to read more]

Why The SEC Sued Me – And Why You Should Care

Posted: 08 Mar 2010 10:27 AM PST

The reason you might have heard about my Securities and Exchange Commission (SEC) lawsuit is because I didn't settle the case.
When most people are sued by the SEC, they do their best to put the matter behind them – as quickly and quietly as possible.
This normally involves paying a large fine and essentially promising "not to do it again." If you pay the fine, the chances are good most people will ignore the matter. You're not required to admit any guilt. Thus, the damage to your … [visit site to read more]

CNOOC’s New Developments

Posted: 08 Mar 2010 10:13 AM PST

China’s CNOOC Ltd (NYSE:CEO) and France-based Total SA (NYSE:TOT) have recently submitted their development plans for three Ugandan oil blocks to the Ugandan government. The decision of the government is expected before the end of this month, as per Dow Jones Newswires.
 
More than 1 billion barrels of oil have been discovered in these blocks. U.K.-based Tullow Oil, with a 50% ownership in two of these blocks and 100% in the third, has selected CNOOC and Total as potential partners for their … [visit site to read more]

The $21 Billion Hot Potato That No One Wants!

Posted: 08 Mar 2010 10:01 AM PST

With global investors attacking any sovereign government that’s running massive deficits or stuck with a pile of bad debts …

And with Uncle Sam obviously the world’s greatest debtor, beggar and fiat money printer …

Some folks at the Treasury Department now fear the United States could be the next victim.

So they’re scrambling to get rid of at least SOME of the junk they piled up during the great bailout frenzy of 2009.

Case in point:
The government officials running Fannie … [visit site to read more]

CA Inc On A Roll

Posted: 08 Mar 2010 09:57 AM PST

Leading IT management and software company CA Inc. (NASDAQ:CA) has been placed in the “Leaders” quadrant by renowned technology research firm Gartner, in Gartner’s "Magic Quadrant for Application Performance Monitoring” report. The technology research major has reached this conclusion after analyzing and evaluating the performance of 19 deserving application management software companies.
 
As per the findings of this report, the IT major's byte code instrumentation-based Introscope … [visit site to read more]

Video: Greece Assistance Speculation Boosts Euro

Posted: 08 Mar 2010 09:57 AM PST

Higher-yielding assets received a boost this session following speculation that wealthier euro-zone nations will assist Greece financially. … [visit site to read more]

Video: Market Movers: AIG, MET, YGE, ICO, RIMM, YHOO

Posted: 08 Mar 2010 09:54 AM PST

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

Boeing Wins $1.6B Turkish Deal

Posted: 08 Mar 2010 09:42 AM PST

Boeing Company (NYSE:BA) has won a $1.6 billion order from Turkish Airlines. The company will supply 20 airplanes of the 737 series. Half of this would be 737-800s and the other half 737-900ER (Extended Range) airplanes.
 
Based in Istanbul, Turkish Airlines currently operates a fleet of 66 Boeing airplanes, including 58 Next-Generation 737s. It ferries approximately 25 million passengers a year, with direct flights to 120 international and 37 domestic destinations.
 
Boeing's … [visit site to read more]

Video: Bovis Homes Constructs A Net Profit For 2009

Posted: 08 Mar 2010 09:34 AM PST

UK-based Bovis Homes Group PLC reported Monday that it posted a net profit of 3.49 million British pounds for 2009. … [visit site to read more]

Walgreen: Earnings Preview

Posted: 08 Mar 2010 09:23 AM PST

Walgreen (NYSE:WAG) is scheduled to report its second quarter results of fiscal 2010 on March 23, 2010. The Zacks Consensus Estimate for the quarter is pegged at a profit of 72 cents.
 
Going by past trends, Walgreen has surpassed expectations in the last two quarters. The company had a positive surprise of 8.33% and 12.82% in the first quarter of fiscal 2010 and fourth quarter of fiscal 2009, respectively, with a positive four-quarter average of 3.2%. This means that, on an average, the … [visit site to read more]

European Monetary Fund: You Heard It Here First

Posted: 08 Mar 2010 08:43 AM PST

Well… After a couple of weeks of waiting, and wondering if it was going to print or not… There was a very nice article in The Wall Street Journal on Saturday that featured… Me! And my Pfennig! I'm sure that most of you missed it, so if by chance you would want to read what Jeff Opdyke had to say about me and the Pfennig… Click here.
Well… Friday's Jobs Jamboree turned out to be very interesting, after looking under the hood… According to the Bureau of Labor Statistics (BLS) the … [visit site to read more]

Analyst Interviews: Retail Industry Stock Review

Posted: 07 Mar 2010 09:00 PM PST

Better-than-expected holiday-period sales and improving confidence among U.S. consumers appear to be indicative that the worst part of the recession may be over. This observation is borne out by the evidence that consumers have loosened their purse strings amid the high unemployment situation and tight credit conditions.
According to the Commerce Department figures, retail purchases increased 0.5% last month, reflecting the third gain in the past four months. The increase was also above the … [visit site to read more]

FX Options Weekly Outlook

Posted: 07 Mar 2010 02:00 PM PST

Jason Ayres, founder of OptionSource.net, provides a look a head of this week’s FX activity. … [visit site to read more]

What’s More Important: Price Per Ounce Or Ounces Owned?

Posted: 07 Mar 2010 07:00 AM PST

In a recent conversation with a fellow gold analyst, he was emphatic that the price one pays for physical gold should be ignored. "What's far more important," he insisted, "is how many ounces I own in relation to the total value of my assets."
Building a core position in gold bullion is a smart goal, to be sure, and a strategy Casey Research has been advising for years. However, ignoring the price you pay for gold could be seen as foolhardy; sure, it's insurance, but isn't price … [visit site to read more]
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