FeedPosted May 25th 2010 9:30AM by Steven Mallas (RSS feed)
Filed under: Analyst Upgrades and Downgrades, Internet, Expedia Inc (EXPE)
Priceline.com (
PCLN) has a 52-week range indicative of some very interesting price action. The 52-week low is $98.51. The 52-week high is $273.93. The stock closed on Monday at $193.14, up just about 1% for the day.
The big brand of online travel, which competes with Expedia (
EXPE), received an
upgrade Monday. Soleil Securities took its rating of the company from hold to buy; however, the price target was lowered from $250 to $230 at the same time. It's always odd when that happens, but the important take-away here is the rating firm's belief in potential upside from current prices.
Continue reading Priceline.com Receives Upgrade: Should Investors Buy?
Posted May 25th 2010 9:00AM by Paul Foster (RSS feed)
Filed under: BP p.l.c. ADS (BP), Options, Anadarko Petroleum (APC), Transocean Ltd. (RIG)
MSCI Spain Index ETF (
EWP) closed at $33.07. The IBEX 35 Index is recently down 4.12%. The euro fell to its lowest level against the yen since November 2001 on concerns about the Spanish banking system. EWP over all option implied volatility of 50 is above its 26-week average of 32 according to Track Data, suggesting larger price movement.
Transocean (
RIG) closed at $53.96. The April 20th Gulf of Mexico explosion that led to a deepwater rig sinking and the spilling of oil is operated by RIG in a field 65% owned BP PLC (
BP) with minority partners Anadarko Petroleum (
APC) and Mitsui. Crude oil futures are recently down 3.75% to $67.58 according to Bloomberg. June option implied volatility is at 79, August is at 65; above its 26-week average of 39 according to Track Data, suggesting larger price movement.
Update is by Stock Specialist Paul Foster of theflyonthewall.comPosted May 25th 2010 8:25AM by Melly Alazraki (RSS feed)
Filed under: Before the Bell, International Markets, Market Matters, AutoZone Inc (AZO), BP p.l.c. ADS (BP), Economic Data, Housing, Financial Crisis
U.S. stocks market futures fell sharply again Tuesday morning, around 2.5% for the major indices' futures, indicating stocks are set for a big selloff that will take the Dow Jones Industrial Average index back below the 10,000 level. Already nearing 9-month lows, markets were set to begin the session lower as a combination of North Korea military action threats against the South and more Spanish banks woes further shook investors' confidence.
South Korean monitors said that Kim Jong Il last week ordered the military to get ready for combat. South Korean officials could not immediately confirm the report and the Defense Ministry and the Joint Chiefs of Staff said they have not obtained any signs suggesting unusual activity by North Korea's military. But that was enough to
send South Korea's market down 2.8%. Other Asian markets followed suit with Japan's Nikkei 225 stock average shedding 3.1%, Hong Kong's Hang Seng index falling 3.3%, and other markets dropping 2%-3% or more.
Continue reading Before the Bell: Futures Drop Sharply; Dow Could Lose 10,000 Level
Posted May 24th 2010 6:00PM by Joseph Lazzaro (RSS feed)
Filed under: Newmont Mining (NEM), Stocks to Buy
The shares of Newmont Mining Corporation (
NEM), first discussed here
on June 3, 2009 at a price of $46.42, continues to move higher, but it's not been a ride for squeamish investors.
However, if you can tolerate volatility, Newmont still has the right commodities for globalization's third decade: copper and gold.
Look for Newmont to post a 10-15% revenue gain in 2010, on both higher production and higher average prices for copper and gold. Global demand should support copper prices, and currency market uncertainty (and low, real interest rates) will continue to benefit gold prices.
Continue reading Newmont Mining: Choppy Uptrend
Posted May 24th 2010 5:30PM by Joseph Lazzaro (RSS feed)
Every U.S. economic expansion of duration has had a catalyst of significance. Sometimes its been a sector (like information technology in the 1990s), or a new dimension to the economy (rising home ownership after the end of World War II).
What could serve as the catalyst in 'the decade of 'the teens?' Exports, if President Barack Obama has his way. Obama wants to
double U.S. exports in five years.
Continue reading Will The Upcoming Decade Be One Of U.S. Exports?
Posted May 24th 2010 5:00PM by Jeff Reeves (RSS feed)
Filed under: McDonald's (MCD), Yum Brands (YUM), Burger King Hldgs (BKC), Stocks to Sell
Burger King Holdings, Inc. (
BKC) typically has fought with chief rival McDonald's Corporation (
MCD) when it came to prices and promotions. But recently Burger King has been in the middle of an internal battle -- specifically over a $1 double cheeseburger promotion, and ultimately, over whether corporate leaders can set pricing for individual restaurants.
Late last week, this food fight was decided when a judge ruled Burger King management had the right to dictate pricing to franchisees. But the real question is whether this mandate will help BKC stock break out of the doldrums. The company has the dubious distinction of being one of the few stocks that is actually trading lower than where it was in March 2009. The unfortunate reality is that this lawsuit isn't much of a victory for this battered burger giant unless it can actually show some top-line and bottom-line growth.
Continue reading BK Wins Lawsuit Over Burger Prices, Loses Investor Confidence
Posted May 24th 2010 4:40PM by Joseph Lazzaro (RSS feed)
The lingering European debt crisis has prompted investors to reduce positions in their highest-risk and growth-oriented plays, on the theory that European events may result in slower global economic growth.
The crisis has also increased 'risk aversion,' which has led to money flowing back into safe-haven currencies, such as the dollar and the yen. However, while the yen has been popular, due the country's low inflation rate and the currency's relative strength, there are signs that the currency will only be allowed to strengthen so much. The government of Japan has already hinted at an intervention. "Markets in principle should determine foreign exchange rates, but I think we must closely watch [markets] and ensure that there won't be any excessive yen rises," Japan's Finance Minister Naoto Kan said at a news conference Friday,
Dow Jones reported.
Continue reading Will Japan Prop-Up Dollars And Euros Versus The Yen?
Posted May 24th 2010 4:20PM by Steven Halpern (RSS feed)
"I found three small cap companies that are poised to benefit from the oil spill in the Gulf of Mexico; indeed, small cap investors may want to try and profit on the solution, rather than the problem," suggests
Ian Wyatt.
The editor of
Small Cap Investor explains, "All three are compelling for different reasons, and have their own risks and potential rewards. So let's take a quick look at Clean Harbors (
CLH), Nalco Holding Company (
NLC) and Lakeland Industries (
LAKE) and see how they are helping in the cleanup effort.
Continue reading Small Cap Trio: Cleaning up the Gulf
Posted May 24th 2010 4:00PM by Jon Ogg (RSS feed)
Filed under: Citigroup Inc. (C), Amer Intl Group (AIG), Alcatel-LucentADS (ALU), Genzyme (GENZ)
Today was one of the days where the only way to know where it would really end up was to have a crystal ball or time machine with a 4:00 PM destination. The only real data was existing home sales, and the overseas markets offered enough continued weakness and uncertainty that the news flow almost did not even matter. The three major stock indexes all spent at least some time in positive territory despite the woes of the day.
Here were the unofficial closing bell levels:
Dow 10,066.57 -126.82 (-1.24%)
S&P 500 1,073.63 -14.06 (-1.29%)
Nasdaq 2,213.55 -15.49 (-0.69%)
Top Analyst CallsContinue reading Closing Bell: Europe Still A Drag On The Market (C, ALU, MSFT, GENZ, AIG, IRE, NBG, BPOP)
Posted May 24th 2010 3:40PM by Elizabeth Harrow (RSS feed)
Filed under: International Markets, Law, Japan, Options, Technical Analysis, Visa Inc. (V)
Last week's ratification of the Durbin Amendment by U.S. lawmakers seemed to put Visa (V) on edge, with the credit card company now facing the prospect of curtailed interchange fees. (Of course, the firm's written statement cited concerns about potential harm to consumers -- a nice touch.)
So, with the forecast looking gloomy on the home front, perhaps it's no surprise that Visa is now trying to woo another major world power. According to Japan's The Nikkei, Visa "will urge the Japanese government to use credit cards for all of its purchases, from stationery items to parts for fighter jets, saying it would save the country a lot of money."
Continue reading Visa Execs Launch Full-Court Press on Japanese Government
Posted May 24th 2010 3:20PM by Brent Archer (RSS feed)
Filed under: Major Movement, Earnings Reports, Good news, China, Options, Technical Analysis
Yingli Green Energy (
YGE -
option chain) shares are rising today after
the company reported earnings this morning, posting a profit of $28 million, or 18 cents per share. Excluding one-time items, YGE earned 23 cents per share on revenue of $358 million. Analysts had forecast a profit of 22 cents per share on revenue of $353 million. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on YGE.
YGE opened this morning at $9.85. So far today the stock has hit a low of $9.66 and a high of $10.11. As of 12:150, YGE is trading at $9.85 up 0.28 (2.9%). The chart for YGE looks bearish.
Continue reading Yingli Green Energy Q1 Earnings Beat Forecast
Posted May 24th 2010 3:00PM by Steven Mallas (RSS feed)
Filed under: Earnings Reports, Campbell Soup (CPB)
Campbell Soup (
CPB) isn't seeing much action at the moment. With a little better than one hour to go before the closing bell, the foodstuffs company is up by several pennies to $35.54. That's not so exciting, but I'm sure shareholders are happy about the price action considering how the markets have been doing as of late; oh, and an earnings report was issued today, too, so at least there wasn't a hostile reaction to it.
The stock has held up very well over the last twelve months. Even though the 52-week range isn't wide, and the movement has been sideways in the recent past, I'd say the
following chart inspires some quantity of confidence in the shares.
Continue reading Campbell Soup Posts Higher Adjusted Profit
Posted May 24th 2010 2:30PM by Joseph Lazzaro (RSS feed)
Filed under: Stocks to Buy
Canadian Natural Resources (CNQ) has the assets an energy-hungry world needs. And its stock is worth a review.
Canadian Natural features balanced, low-risk assets, complemented by an oil sands production base.
CNQ's biggest project is its Horizon oil sands operation in the Athabasca oil sands region of Canada. The company estimates that there are 6 billion to 8 billion recoverable barrels available on this property.
Continue reading Canadian Natural Resources: 'Flash Crash' Creates an Opportunity
Posted May 24th 2010 2:00PM by Steven Halpern (RSS feed)
Filed under: Ford Motor (F), Newsletters, Stocks to Buy
"There is an asset class that allows investors to buy individual bonds as cheaply as individual stocks; exchange-traded debt securities trade on major U.S. exchanges with tickers, and trade just like stocks," says
Amy Calistri.
The editor of
The Daily Paycheck -- newsletter service focuses on developing and maintaining an income-generating portfolio -- explains, "There are dozens of exchange-traded debt securities available.
"Specifically, I've been keeping an eye on Ford Motor Credit 7.60% Notes (
FCJ). an exchange-traded debt securit, with an annual dividend of $1.90, providing a current yield of 7.9%.
"As background, Ford Motor Company (F) was the only one of the "Big Three" automobile manufacturers that didn't take a government handout.
"While certainly challenged during the economic downturn, Ford benefited from the relative weakness of its peers. Consumers preferred buying from Ford rather than a rival headed for bankruptcy court.
Continue reading High Yield from Ford Motor Credit Notes
Posted May 24th 2010 1:30PM by Wade Hansen (RSS feed)
Filed under: Options
Option traders are pushing up call option prices in the Management Services industry and are pushing up put option prices in the Gas Utilities industry today.
Any time the volatility skews above 1.00, it is an indication that calls are more expensive than puts. Typically, when calls are more expensive than puts, it means the demand for calls is greater than the demand for puts because investors believe the stock is going to rise in the future and they want to take advantage of that movement by buying calls.
The opposite is also true. Any time a volatility skews below 1.00, it is an indication that puts are more expensive than calls.
Bullish Volatility Skews
inVentiv Health, Inc. (
VTIV) -- part of the Management Services industry---came in at the top with a volatility skew of 1.23. This shouldn't be a surprise as VTIV is up 2.32 percent for the past month.
Continue reading inVentiv Health Tops Bullish Volatility Skews, Southwest Gas Tops Bearish Skews
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Before the Bell: Futures Drop Sharply; Dow Could Lose 10,000 Level
Get Serious About Buying Sirius XM
Goldman Sachs Reassesses Financials
