WALL STREET GETS BOOST FROM EARNING REPORTS.
In general earning are better than expectations. I would like to point out some of the companies I recommended in the past.
Huntington Bancshares Inc (HBAN:$6.558,0$0.728,012.49%) rose to $6.60 at 2:07 PM ET on April 21, 2010 in heavy volume of 99,066,982 shares. The bank reported earning of $0.01 better than expected.
Hovnanian Jumps Nearly 12% on Reported $1 Mil Settlement 04/21 08:57 AM
-- Hovnanian (HOV:$6.33,00$0.68,0012.04%) is up after news on Tuesday that the company will pay a $1 million civil penalty to settle allegations it violated the Clean Water Act at nearly 600 construction sites around the United States, U.S. authorities said.
Seagate shares rise following better earnings, levels to watch 04/21 06:02 AM
The stock is up nearly 5% in the pre-market, following better than expected earnings news announced last night after market close. The move above the $20 level has broken the stock above resistance at the 50-day moving average. This is bullish price behavior. Resistance levels to watch as potential upside objectives are at $20.70, $21.02, $21.35, $21.70, $22.08. Support is at $20.02, and $19.69.
Wednesday, April 21, 2010
Tuesday, April 20, 2010
Mid-Day ETF Update: Shares Higher as Goldman Results Raise Investor Sentiment 04/20 10:33 AM
So what happened to the sell off from Friday ? IT IS FORGOTEN by now.
The DOW is up 25 points after Monday rose 75 points, and just about to recoup all loses from last Friday.
(read BLOG April 19.)
Earning are very strong in general, and those good new are what propel the market higher.
Fixed-Income Trading Roars For Goldman, Others In 2010 04/20 10:40 AM
GOLDMAN SACHS earned $3.3 Billion Dollars.
NEW YORK (Dow Jones)--Goldman Sachs Group Inc.'s (GS:$160.96,00$-2.36,00-1.45%) fixed-income group turned in a record performance in the first quarter, underscoring the investment bank's dominance in a business that is driving Wall Street's resurgence.
Some of my past recommendations how they trade today!
“CWTR” at $8.11. ‘NSM’ at $15.66. ‘AMD’ at $9.78. ‘MSFT’ at $31.78. ‘AMAT’ at $14.41.
So what happened to the sell off from Friday ? IT IS FORGOTEN by now.
The DOW is up 25 points after Monday rose 75 points, and just about to recoup all loses from last Friday.
(read BLOG April 19.)
Earning are very strong in general, and those good new are what propel the market higher.
Fixed-Income Trading Roars For Goldman, Others In 2010 04/20 10:40 AM
GOLDMAN SACHS earned $3.3 Billion Dollars.
NEW YORK (Dow Jones)--Goldman Sachs Group Inc.'s (GS:$160.96,00$-2.36,00-1.45%) fixed-income group turned in a record performance in the first quarter, underscoring the investment bank's dominance in a business that is driving Wall Street's resurgence.
Some of my past recommendations how they trade today!
“CWTR” at $8.11. ‘NSM’ at $15.66. ‘AMD’ at $9.78. ‘MSFT’ at $31.78. ‘AMAT’ at $14.41.
Monday, April 19, 2010
MOOD OF THE MARKET !
This is influenced by many factors, the economy, politics, social and natural events which may occur anywhere in the world. The event may or may not have a direct bearing on the stock market but can dramatically effect the mode of the market in a positive or negative way. Those events are short lived and have no permanent effect on the FUNDAMENTALS of most companies.
Last Friday the markets went down strongly because the SEC charge ‘GS’ with security fraud. By the end of the day the DOW lost 125 points and the S&P lost 19 points. IS ‘GS’ problems have anything to do with the Technology sectors or any other parts on the market ?
IS THIS AN OPPORTUNITY TO BUY STOCKS AT LOWER PRICE ?
Wall Street Reaction to Goldman Sachs Charges Looks Overblown: Barron's
-- Goldman Sachs' (GS:$160.70,00$0.00,000.00%) reputation took a huge hit Friday when the Securities and Exchange Commission charged the firm with securities fraud in the underwriting of a $1 billion collateralized-debt obligation backed by sub prime mortgages. But don't count Goldman out, says a feature in this week's Barron's.
GS fell 12.8% Friday but shares are edging just higher in pre-market trading this morning.
BY THE END OF THE DAY THE DOW WAS UP SO WAS GOLDMAN SACHS.
This is influenced by many factors, the economy, politics, social and natural events which may occur anywhere in the world. The event may or may not have a direct bearing on the stock market but can dramatically effect the mode of the market in a positive or negative way. Those events are short lived and have no permanent effect on the FUNDAMENTALS of most companies.
Last Friday the markets went down strongly because the SEC charge ‘GS’ with security fraud. By the end of the day the DOW lost 125 points and the S&P lost 19 points. IS ‘GS’ problems have anything to do with the Technology sectors or any other parts on the market ?
IS THIS AN OPPORTUNITY TO BUY STOCKS AT LOWER PRICE ?
Wall Street Reaction to Goldman Sachs Charges Looks Overblown: Barron's
-- Goldman Sachs' (GS:$160.70,00$0.00,000.00%) reputation took a huge hit Friday when the Securities and Exchange Commission charged the firm with securities fraud in the underwriting of a $1 billion collateralized-debt obligation backed by sub prime mortgages. But don't count Goldman out, says a feature in this week's Barron's.
GS fell 12.8% Friday but shares are edging just higher in pre-market trading this morning.
BY THE END OF THE DAY THE DOW WAS UP SO WAS GOLDMAN SACHS.
Friday, April 16, 2010
MERGER AND ACQUISIONS (M&A)
On March 1, 2010 I wrote about the possibility that ’ETFC’ will be bought by a larger company.
TODAY.
e*Trade Rises 7% on Speculation TD Ameritrade May Be Interested in Company .
-- e*Trade (ETFC) is up after Reuters reports that TD Ameritrade (AMTD:$20.41,00$0.23,001.14%) has a lot of cash and could be interested in an acquisition.
The story said that in November, AMTD CEO Fred Tomczyk said an acquisition would be the best use of its cash cushion, and that it would consider a deal for struggling smaller rival ETFC.
He told Reuters on Wednesday ETFC "is on a better footing today than they were a year or two ago, no question. But that doesn't mean it's over. They still have their issues to work out. They're through the worst."
Price: 1.82, Change: +0.12 , Percent Change: +7.06
On March 1, 2010 I wrote about the possibility that ’ETFC’ will be bought by a larger company.
TODAY.
e*Trade Rises 7% on Speculation TD Ameritrade May Be Interested in Company .
-- e*Trade (ETFC) is up after Reuters reports that TD Ameritrade (AMTD:$20.41,00$0.23,001.14%) has a lot of cash and could be interested in an acquisition.
The story said that in November, AMTD CEO Fred Tomczyk said an acquisition would be the best use of its cash cushion, and that it would consider a deal for struggling smaller rival ETFC.
He told Reuters on Wednesday ETFC "is on a better footing today than they were a year or two ago, no question. But that doesn't mean it's over. They still have their issues to work out. They're through the worst."
Price: 1.82, Change: +0.12 , Percent Change: +7.06
Thursday, April 15, 2010
IS IT A TIME TO SELL !
One of the most difficult decision investor has to make is when to sell a stock which he has a nice profit.
On 2/3/2010 we recommended ’BRCD’ at $5.30 a share, today is about $6.55 a share, About 20% return for about 2 months. So SELL or HOLD?
On March 3, 2010 we recommended ’C’ at $3.40 a share. Today is trading over $5.00 a share, A profit
Of about 50% within 40 days. So what to do? SELL or HOLD.
‘MSFT’ was recommended the 2nd time to buy on 4/5/2010 at about $28.65. Today is trading at $30.85.
The company will release it’s earning within a week, So Sell or Hold till the earning or sell today?
‘HOV’ and ’BZH’ were recommended on 3/16/2010. ’HOV’ to buy at $4.49 a share, Today is at about $5.72 a share, a gain of 20% for a month. ’BZH’ at the same day was recommended to by at $5.00 a share, today is trading at $5.82 a share, almost 14% return for this month.
If I had to make a decision , I will sell all those mention stock in order to take profit and waiting for a correction to buy them back.
One of the most difficult decision investor has to make is when to sell a stock which he has a nice profit.
On 2/3/2010 we recommended ’BRCD’ at $5.30 a share, today is about $6.55 a share, About 20% return for about 2 months. So SELL or HOLD?
On March 3, 2010 we recommended ’C’ at $3.40 a share. Today is trading over $5.00 a share, A profit
Of about 50% within 40 days. So what to do? SELL or HOLD.
‘MSFT’ was recommended the 2nd time to buy on 4/5/2010 at about $28.65. Today is trading at $30.85.
The company will release it’s earning within a week, So Sell or Hold till the earning or sell today?
‘HOV’ and ’BZH’ were recommended on 3/16/2010. ’HOV’ to buy at $4.49 a share, Today is at about $5.72 a share, a gain of 20% for a month. ’BZH’ at the same day was recommended to by at $5.00 a share, today is trading at $5.82 a share, almost 14% return for this month.
If I had to make a decision , I will sell all those mention stock in order to take profit and waiting for a correction to buy them back.
Wednesday, April 14, 2010
Intel Opens Pre-Market Trade at Fresh Extended-Hours Highs 04/14 04:02 AM
INTC earning are$0.43 vs. $0.38 estimated. VERY GOOD AND UPBET REPORT.
-- Intel (INTC:$22.7699,$0.231,01.02%) is recording a plus-side range of 23.72 to a high of 23.92 in early pre-market action, outpacing an after-hours high of 23.76 recorded Tuesday night after the company reported better-than-expected results and guidance. The stock traded mostly between 23.50 and 23.76 in last night's session.
Also, today as the stock reach yearly high many brokerage houses issue coverage on ’INTC’. (FBR CAPITL, KAUFMAN, OPPENHEIMER, CREDIT SUISSE,)
WHERE THEY WERE WHEN THE STOCK TRADED AT $18.00 a share?
JPM earning $0.74 vs. Thompson Reuters forecast was $0.64 EPS, up 85% from a year earlier.
JPMorgan Touching Fresh Highs in Pre-Market 04/14 04:47 AM
JPMorgan 1Q Profit Rises 55% As Economy Continues To Heal
-- JPMorgan (JPM:$45.87,00$-0.27,00-0.59%) shares are firming from 46 to a recent pre-market high of 47.30. Stock is seeing a good mix of volume as it nears its 52-week high of 47.47. Sellers have been active at 46.80 and above but thus far have not been able to stymie the advance.
Price: 47.28, Change: +1.41, Percent Change:
INTC earning are$0.43 vs. $0.38 estimated. VERY GOOD AND UPBET REPORT.
-- Intel (INTC:$22.7699,$0.231,01.02%) is recording a plus-side range of 23.72 to a high of 23.92 in early pre-market action, outpacing an after-hours high of 23.76 recorded Tuesday night after the company reported better-than-expected results and guidance. The stock traded mostly between 23.50 and 23.76 in last night's session.
Also, today as the stock reach yearly high many brokerage houses issue coverage on ’INTC’. (FBR CAPITL, KAUFMAN, OPPENHEIMER, CREDIT SUISSE,)
WHERE THEY WERE WHEN THE STOCK TRADED AT $18.00 a share?
JPM earning $0.74 vs. Thompson Reuters forecast was $0.64 EPS, up 85% from a year earlier.
JPMorgan Touching Fresh Highs in Pre-Market 04/14 04:47 AM
JPMorgan 1Q Profit Rises 55% As Economy Continues To Heal
-- JPMorgan (JPM:$45.87,00$-0.27,00-0.59%) shares are firming from 46 to a recent pre-market high of 47.30. Stock is seeing a good mix of volume as it nears its 52-week high of 47.47. Sellers have been active at 46.80 and above but thus far have not been able to stymie the advance.
Price: 47.28, Change: +1.41, Percent Change:
Tuesday, April 13, 2010
UBS downgrades 5 regional-bank stocks 04/13 07:02 AM
BOSTON (Market Watch) -- UBS analysts led by Heather Wolf on Tuesday downgraded several regional-bank stocks, saying they now see "additional headwinds" to the recovery in earnings. "We continue to believe the pace of earnings recovery will fall well short of expectations," the analysts wrote in a note. "We think the recent rally and ensuing valuations are unsustainable, and the group is poised for a meaningful pullback." UBS cut Huntington Bancshares Inc. (HBAN:$5.62,00$-0.41,00-6.80%) , KeyCorp (KEY:$7.94,00$-0.40,00-4.80%) , Regions Financial Corp. (RF:$8.435,0$-0.305,0-3.49%) and TCF Financial Corp. (TCB:$16.29,00$-0.69,00-4.06%) to sell from neutral, while Commerce Bancshares Inc. (CBSH:$40.60,00$-1.44,00-3.43%) was dropped to neutral from buy. All five stocks traded lower Tuesday morning.
AS for myself, I do not believe in this downgrade. At this point I will buy ‘HBAN’ which is the only bank I follow from this list. To buy it around $5.60 will reward the investor nicely.
‘STX’
Analyst Actions: Wedbush Downgrades Seagate to Neutral from Outperform - Shares Lower in Pre Market 04/13 06:03 AM
-- Shares of Seagate (STX:$18.39,00$-0.69,00-3.62%) were down in pre-market trading after the company was downgraded to Neutral from Outperform at Wedbush.
Seagate (STX:$18.39,00$-0.69,00-3.62%) shares .
‘STX’ will reports it’s earning on April 20,2010. By this time Seagate will be trading much higher , therefore I believe that to buy the stock today is an opportunity to make some money within the next week or so.
BOSTON (Market Watch) -- UBS analysts led by Heather Wolf on Tuesday downgraded several regional-bank stocks, saying they now see "additional headwinds" to the recovery in earnings. "We continue to believe the pace of earnings recovery will fall well short of expectations," the analysts wrote in a note. "We think the recent rally and ensuing valuations are unsustainable, and the group is poised for a meaningful pullback." UBS cut Huntington Bancshares Inc. (HBAN:$5.62,00$-0.41,00-6.80%) , KeyCorp (KEY:$7.94,00$-0.40,00-4.80%) , Regions Financial Corp. (RF:$8.435,0$-0.305,0-3.49%) and TCF Financial Corp. (TCB:$16.29,00$-0.69,00-4.06%) to sell from neutral, while Commerce Bancshares Inc. (CBSH:$40.60,00$-1.44,00-3.43%) was dropped to neutral from buy. All five stocks traded lower Tuesday morning.
AS for myself, I do not believe in this downgrade. At this point I will buy ‘HBAN’ which is the only bank I follow from this list. To buy it around $5.60 will reward the investor nicely.
‘STX’
Analyst Actions: Wedbush Downgrades Seagate to Neutral from Outperform - Shares Lower in Pre Market 04/13 06:03 AM
-- Shares of Seagate (STX:$18.39,00$-0.69,00-3.62%) were down in pre-market trading after the company was downgraded to Neutral from Outperform at Wedbush.
Seagate (STX:$18.39,00$-0.69,00-3.62%) shares .
‘STX’ will reports it’s earning on April 20,2010. By this time Seagate will be trading much higher , therefore I believe that to buy the stock today is an opportunity to make some money within the next week or so.
Monday, April 12, 2010
The first time in the last 18 months, the DOW is over 11,000. AS earning reports are about to begin, it seems to be that investors are confident that the most earning will be better than estimated.
Merger and acquisitions are on the rise. We wrote about it on 3/10/2010. (see blog). So far none of my recommendations haThe DOW is trading at over 11,000.
s not be taken over, although some of them are in play. (please read blog).
Companies in the news.
‘HBAN’ Huntington Bancshares Inc sets a new 52-week high at $6.60
‘XRX’ XEROX CORP sets a new 52-week high at $10.56
‘LSCC’ Lattice Semiconductor Corp sets a new 52-week high at $425.
‘GE’ General Electric Co sets a new 52-week high at $18.95
‘ MGM‘ MGM Mirage sets a new 52-week high at $15.50
‘MSFT’ Microsoft Ushers in the Next Generation of the Social Phone With KIN, a New Windows Phone
Microsoft, Sharp, Verizon Wireless and Vodafone unveil KIN, a new Windows Phone designed for broadcasting and sharing everyday moments. 04/12 10:05 AM
Merger and acquisitions are on the rise. We wrote about it on 3/10/2010. (see blog). So far none of my recommendations haThe DOW is trading at over 11,000.
s not be taken over, although some of them are in play. (please read blog).
Companies in the news.
‘HBAN’ Huntington Bancshares Inc sets a new 52-week high at $6.60
‘XRX’ XEROX CORP sets a new 52-week high at $10.56
‘LSCC’ Lattice Semiconductor Corp sets a new 52-week high at $425.
‘GE’ General Electric Co sets a new 52-week high at $18.95
‘ MGM‘ MGM Mirage sets a new 52-week high at $15.50
‘MSFT’ Microsoft Ushers in the Next Generation of the Social Phone With KIN, a New Windows Phone
Microsoft, Sharp, Verizon Wireless and Vodafone unveil KIN, a new Windows Phone designed for broadcasting and sharing everyday moments. 04/12 10:05 AM
Friday, April 9, 2010
Intel, AMD seen posting gains on rising PC, server demand
Semiconductor behemoths to kick off technology earnings season
Intel Corp. (INTC:$22.45,00$0.14,000.63%) and Advanced Micro Devices (AMD:$9.35,00$-0.07,00-0.74%) will kick off earnings season for the high-tech industry next week, with analysts expecting both chip behemoths to post sales gains on strengthening demand for personal computers and servers.
But analysts also will likely watch for signs of excessive supply as concerns linger about the state of the economy, despite the view that corporate technology demand is on the rise.
Other points of interest.
‘MSFT’ is trading at $30.25 a share.
‘BRCD’ is trading at $6.35 a share.
‘C’ is trading at $4.55 a share.
‘CWTR’ is trading at $7.70.
Semiconductor behemoths to kick off technology earnings season
Intel Corp. (INTC:$22.45,00$0.14,000.63%) and Advanced Micro Devices (AMD:$9.35,00$-0.07,00-0.74%) will kick off earnings season for the high-tech industry next week, with analysts expecting both chip behemoths to post sales gains on strengthening demand for personal computers and servers.
But analysts also will likely watch for signs of excessive supply as concerns linger about the state of the economy, despite the view that corporate technology demand is on the rise.
Other points of interest.
‘MSFT’ is trading at $30.25 a share.
‘BRCD’ is trading at $6.35 a share.
‘C’ is trading at $4.55 a share.
‘CWTR’ is trading at $7.70.
Thursday, April 8, 2010
NEWS ABOUT OUR STOCKS BUY LIST.
Wet Seal Inc. (WTSLA:$5.03,) , the Foothill Ranch, Calif., retailer, reported that for March, comparable-store sales rose 6.3% as total sales rose 9.3% to $56 million. A survey of analysts by Thomson Reuters was estimating same-store sales up 5.4
‘MSFT’ COVERAGE INITIATED: Microsoft (MSFT) initiated by Soleil. Initial rating Buy. 04/08 04:29 AM
‘SKS’ Saks March Same-Store Sales Up 12.7% - Shares Up 1.5% 04/08 05:39 AM
‘JASO’ China In-Focus: JA Solar Ups Q1 Shipment Guidance 04/08 03:44 AM
‘SOLF’ Trading at $8.57 a share.
Wet Seal Inc. (WTSLA:$5.03,) , the Foothill Ranch, Calif., retailer, reported that for March, comparable-store sales rose 6.3% as total sales rose 9.3% to $56 million. A survey of analysts by Thomson Reuters was estimating same-store sales up 5.4
‘MSFT’ COVERAGE INITIATED: Microsoft (MSFT) initiated by Soleil. Initial rating Buy. 04/08 04:29 AM
‘SKS’ Saks March Same-Store Sales Up 12.7% - Shares Up 1.5% 04/08 05:39 AM
‘JASO’ China In-Focus: JA Solar Ups Q1 Shipment Guidance 04/08 03:44 AM
‘SOLF’ Trading at $8.57 a share.
Wednesday, April 7, 2010
EARNING SEASON
During the month of April, most of the S&P companies will report their first quarter earning.
In general estimated are very positive and anticipations are that most of the companies will do very well.
The sectors that will do the best according to my opinion are the Financial and the Technology.
The ’ETF’ for the financial are ’XLF’ and ’UYG’ and for the Technology is the ’XLK’.( we wrote about them 2/25,2010)
Some companies I recommend to buy before earning release are;
Bank of America ’BAC’, Huntington Bank ’HBAN, Fifth Third Bancorp ’FITB’, Zion Bancorp ’ZION’.
Microsoft ’MSFT’, E-Trade ’ETFC’, Intel Corp ’INTC’ Advanced Micro ’AMD’
Please check the BLOG for recommendations that were made in the last month. LET ME RMINED TO ALL OF YOU THAT investor must always take profit when they are made.
‘XLF’ Jan 1 2010 was at $14.41, today is at $16.41. UP 13%.
‘XLK’ Jan 1 2010 was at $22.91, today is at $23.35.
‘UYG’ Jan 1 2010 was at $5.65, today is at $7.21. UP 27%.
During the month of April, most of the S&P companies will report their first quarter earning.
In general estimated are very positive and anticipations are that most of the companies will do very well.
The sectors that will do the best according to my opinion are the Financial and the Technology.
The ’ETF’ for the financial are ’XLF’ and ’UYG’ and for the Technology is the ’XLK’.( we wrote about them 2/25,2010)
Some companies I recommend to buy before earning release are;
Bank of America ’BAC’, Huntington Bank ’HBAN, Fifth Third Bancorp ’FITB’, Zion Bancorp ’ZION’.
Microsoft ’MSFT’, E-Trade ’ETFC’, Intel Corp ’INTC’ Advanced Micro ’AMD’
Please check the BLOG for recommendations that were made in the last month. LET ME RMINED TO ALL OF YOU THAT investor must always take profit when they are made.
‘XLF’ Jan 1 2010 was at $14.41, today is at $16.41. UP 13%.
‘XLK’ Jan 1 2010 was at $22.91, today is at $23.35.
‘UYG’ Jan 1 2010 was at $5.65, today is at $7.21. UP 27%.
Tuesday, April 6, 2010
STOCK IN THE NEWS
‘WTSLA’ was recommended by me on 3/26/2010, (see blog) . Today COVERAGE REITERATED: Wet Seal (WTSLA) reiterated by Credit Suisse. Reiterated rating Outperform. 04/06 05:06 AM
‘MPEL’ I recommended to buy MPEL at $4.64 a share on 4/1/2010. Today the stock was trading at over $5.50 a share, over 20% gained in a week. Time to sell !
‘BRCD’ is trading around $6.10 a share, on 2/23, (see blob 2010) when I recommended to buy it. is it a time to sell in order to take profit or to hold for a take over ? Or just trade it over and over again.
‘WTSLA’ was recommended by me on 3/26/2010, (see blog) . Today COVERAGE REITERATED: Wet Seal (WTSLA) reiterated by Credit Suisse. Reiterated rating Outperform. 04/06 05:06 AM
‘MPEL’ I recommended to buy MPEL at $4.64 a share on 4/1/2010. Today the stock was trading at over $5.50 a share, over 20% gained in a week. Time to sell !
‘BRCD’ is trading around $6.10 a share, on 2/23, (see blob 2010) when I recommended to buy it. is it a time to sell in order to take profit or to hold for a take over ? Or just trade it over and over again.
Monday, April 5, 2010
UNEMPLOYMENT RATE REMAINS AT 9.7%.
Helped by the Federal Government hiring for the Census, the US economy got its best jobs report in three years as employers added 162,000 jobs in March. Big chunk of the jobs increase were 48,000 positions for the Census Bureau.
Also there were revisions to the last two months reports. (I told you so, see blog March 4, 2010).
MSFT on March 2, 2010 I recommended to buy MSFT at around $28.50, On March 25, the stock could be sold at over $30.50 a share. On last Thursday MSFT was trading just over $28.50, an opportunity to buy it again. The point is that a trader can do very well in this market conditions.
On 4/1/2010 I recommended ‘MPEL’, today UPGRADE: Melco Crown Entertainment (MPEL) upgraded by JP Morgan from Neutral to Overweight. 04/05 02:25 AM.
The US bonds keep losing ground. The 10 years bonds fell to a yearly low of 97.00 with a yield of 4%. A $1,000 bond has a value of $970.
Helped by the Federal Government hiring for the Census, the US economy got its best jobs report in three years as employers added 162,000 jobs in March. Big chunk of the jobs increase were 48,000 positions for the Census Bureau.
Also there were revisions to the last two months reports. (I told you so, see blog March 4, 2010).
MSFT on March 2, 2010 I recommended to buy MSFT at around $28.50, On March 25, the stock could be sold at over $30.50 a share. On last Thursday MSFT was trading just over $28.50, an opportunity to buy it again. The point is that a trader can do very well in this market conditions.
On 4/1/2010 I recommended ‘MPEL’, today UPGRADE: Melco Crown Entertainment (MPEL) upgraded by JP Morgan from Neutral to Overweight. 04/05 02:25 AM.
The US bonds keep losing ground. The 10 years bonds fell to a yearly low of 97.00 with a yield of 4%. A $1,000 bond has a value of $970.
Thursday, April 1, 2010
STOCKS RECOMODATIONS
Micron Technology (MU:$10.37,00$-0.42,00-3.89%) late Wednesday reported Q2 EPS $0.39 vs $0.23 a year earlier and topping the Thomson Reuters mean analyst estimate for $0.24. Sales of $1.96 billion are up from $1.74 billion a year earlier. The Street looked for $1.83 billion.
Target price by the end of the year is $18 a share.
Melco Crown Entertainment Limited (MPEL:$4.64,00$-0.16,00-3.33%) is a developer, owner and through a Macau subsidiary which holds a gaming sub-concession, an operator of casino gaming and entertainment casino resort facilities. The Company currently operates Altira Macau (formerly Crown Macau), a casino hotel located at Taipa, Macau and City of Dreams (www.cityofdreamsmacau.com), an integrated urban casino resort located in Cotai, Macau. The Company's business also includes the Mocha Clubs (www.mochaclubs.com), which feature a total of approximately 1,500 gaming machines in eight locations and comprise the largest non-casino based operations of electronic gaming machines in Macau.
MPEL my target price is around $10 a share by year end.
Micron Technology (MU:$10.37,00$-0.42,00-3.89%) late Wednesday reported Q2 EPS $0.39 vs $0.23 a year earlier and topping the Thomson Reuters mean analyst estimate for $0.24. Sales of $1.96 billion are up from $1.74 billion a year earlier. The Street looked for $1.83 billion.
Target price by the end of the year is $18 a share.
Melco Crown Entertainment Limited (MPEL:$4.64,00$-0.16,00-3.33%) is a developer, owner and through a Macau subsidiary which holds a gaming sub-concession, an operator of casino gaming and entertainment casino resort facilities. The Company currently operates Altira Macau (formerly Crown Macau), a casino hotel located at Taipa, Macau and City of Dreams (www.cityofdreamsmacau.com), an integrated urban casino resort located in Cotai, Macau. The Company's business also includes the Mocha Clubs (www.mochaclubs.com), which feature a total of approximately 1,500 gaming machines in eight locations and comprise the largest non-casino based operations of electronic gaming machines in Macau.
MPEL my target price is around $10 a share by year end.
Wednesday, March 31, 2010
SUMMARY OF THE FIRST QUARTER
The DOW closed at 10,856
The S&P closed at 1,169
The NASDAQ closed at 2,397
Let’s see the results of my recommendations for this quarter.
JASO on 2/28/2010 was recommend to buy at $5 a share on 3/30/2010. It traded at $5.90 - a gain of almost 20% .
SOLF on 2/28/2010 was recommended to buy at $6 a share. Today it traded at $7.95 - up almost 33% .
MSFT was recommended 3/2/2010 to buy at $28.50. On 3/28/2010 it traded at $30.50-up almost 9%.
C on 3/4/2010 was recommended to buy at $3.40. On 3/28/2010, it traded at $4.35- a gain of 33%.
AMAT was recommended to buy on 3/9/2010 at $12.40 a share. Today, it traded at $13.73- up almost 11%.
Additionally, there were buy recommendations issued on other stocks last month. I shall revisit them next month to see how they appreciated.
The point is, investors selling stocks to secure a profits it is what is all about. Sometimes a profit can be achieved in few days and sometimes they have to wait weeks or months. Therefore, each time the opportunity comes along to secure a profit, TAKE IT.
The DOW closed at 10,856
The S&P closed at 1,169
The NASDAQ closed at 2,397
Let’s see the results of my recommendations for this quarter.
JASO on 2/28/2010 was recommend to buy at $5 a share on 3/30/2010. It traded at $5.90 - a gain of almost 20% .
SOLF on 2/28/2010 was recommended to buy at $6 a share. Today it traded at $7.95 - up almost 33% .
MSFT was recommended 3/2/2010 to buy at $28.50. On 3/28/2010 it traded at $30.50-up almost 9%.
C on 3/4/2010 was recommended to buy at $3.40. On 3/28/2010, it traded at $4.35- a gain of 33%.
AMAT was recommended to buy on 3/9/2010 at $12.40 a share. Today, it traded at $13.73- up almost 11%.
Additionally, there were buy recommendations issued on other stocks last month. I shall revisit them next month to see how they appreciated.
The point is, investors selling stocks to secure a profits it is what is all about. Sometimes a profit can be achieved in few days and sometimes they have to wait weeks or months. Therefore, each time the opportunity comes along to secure a profit, TAKE IT.
Tuesday, March 30, 2010
Citi shares feel the heat as Treasury prepares to sell stake 03/29 02:57 PM
Citigroup Inc. (C:$4.06,00$-0.12,00-2.87%) declined 3% to close at $4.18 Monday after the Treasury Department said it will begin to unwind its sizable stake in the banking giant this year.
The Treasury plans to sell 7.7 billion shares of Citi it owns as a result of the financial bailout over the course of 2010 subject to market conditions.
"Treasury intends to sell its Citigroup (C:$4.06,00$-0.12,00-2.87%) common shares into the market through various means in an orderly and measured fashion," it said in a statement.
As I said in the past, as soon as ’C’ become free of the Treasury holding the company will do well and the stock price will be much higher by the end of the year.
(See Blog March 4, 2010.)
Citigroup Inc. (C:$4.06,00$-0.12,00-2.87%) declined 3% to close at $4.18 Monday after the Treasury Department said it will begin to unwind its sizable stake in the banking giant this year.
The Treasury plans to sell 7.7 billion shares of Citi it owns as a result of the financial bailout over the course of 2010 subject to market conditions.
"Treasury intends to sell its Citigroup (C:$4.06,00$-0.12,00-2.87%) common shares into the market through various means in an orderly and measured fashion," it said in a statement.
As I said in the past, as soon as ’C’ become free of the Treasury holding the company will do well and the stock price will be much higher by the end of the year.
(See Blog March 4, 2010.)
Friday, March 26, 2010
WET SEAL Inc, (WTSLA)
Wet Seal Inc. Reports Un-audited Consolidated Earnings Results for the Fourth Quarter and Year Ended January 30, 2010; Provides Earnings Guidance for the First Quarter of Fiscal 2010; to Open 25 to 40 Net Stores; Provides Capital Expenditure Guidance for the Full Year 2010.
The Wet Seal (WTSLA:$4.68,00$0.08,001.74%) reports Q4 sales of $151 million, down from $154.9 mln a year ago. Net income was $0.79 per share, vs. $0.04 per share a year ago. Ex a benefit, EPS was $0.10 per share, ahead of the company's guidance of $0.08 to $0.09 per share, and up from $0.09 per share last year. The Street view was $151 mln in revs and earnings of $0.08 per share.
For Q1, the company is guiding for sales between $138 and $140 million, vs. the Street view of $136 million. Today the price of WTSLA is $4.80 a share.
Many institutions, as a general rule, will not invest in a company which it’s stock is trading below $5 a share. As per the guidance of WTSLA it seems to be that the company is on the right track to be a major ten-age choice of shopping destination. If this is the case than WTSLA can earn as much as a $1 a share for the year 2011, and the stock price can reach $12 a share by the end of the year
Wet Seal Inc. Reports Un-audited Consolidated Earnings Results for the Fourth Quarter and Year Ended January 30, 2010; Provides Earnings Guidance for the First Quarter of Fiscal 2010; to Open 25 to 40 Net Stores; Provides Capital Expenditure Guidance for the Full Year 2010.
The Wet Seal (WTSLA:$4.68,00$0.08,001.74%) reports Q4 sales of $151 million, down from $154.9 mln a year ago. Net income was $0.79 per share, vs. $0.04 per share a year ago. Ex a benefit, EPS was $0.10 per share, ahead of the company's guidance of $0.08 to $0.09 per share, and up from $0.09 per share last year. The Street view was $151 mln in revs and earnings of $0.08 per share.
For Q1, the company is guiding for sales between $138 and $140 million, vs. the Street view of $136 million. Today the price of WTSLA is $4.80 a share.
Many institutions, as a general rule, will not invest in a company which it’s stock is trading below $5 a share. As per the guidance of WTSLA it seems to be that the company is on the right track to be a major ten-age choice of shopping destination. If this is the case than WTSLA can earn as much as a $1 a share for the year 2011, and the stock price can reach $12 a share by the end of the year
Thursday, March 25, 2010
STOCK MARKET AT 18 MONTHS HIGH
At 11:30 am the DOW was up over 100 points to 10933, the S&P was trading at 1178 while the NASDAQ was up 30 points to 2428. All those markets were at 18 months high. About 50 companies which are part of the S&P 500 were trading at 52 weeks high.
At the same time the US BONDS lose ground. The 10 years bonds were trading at 97.875 with a yield of 3.90 In other words, a $1,000 face value 10 years bonds is valued today only at $978.75
So, where are we going from this point.
The stock market is a forward looking mechanism . It tells us that companies will do very well in the next six to nine months, The economy will improve somewhat while the unemployment will stay high.
The stock market will keep going up, and the value of US bonds will go down.
At 11:30 am the DOW was up over 100 points to 10933, the S&P was trading at 1178 while the NASDAQ was up 30 points to 2428. All those markets were at 18 months high. About 50 companies which are part of the S&P 500 were trading at 52 weeks high.
At the same time the US BONDS lose ground. The 10 years bonds were trading at 97.875 with a yield of 3.90 In other words, a $1,000 face value 10 years bonds is valued today only at $978.75
So, where are we going from this point.
The stock market is a forward looking mechanism . It tells us that companies will do very well in the next six to nine months, The economy will improve somewhat while the unemployment will stay high.
The stock market will keep going up, and the value of US bonds will go down.
Wednesday, March 24, 2010
Home-builder sector up slightly as new-home sales slow 03/24 08:39 AM
Home-builder stocks showed gains on Wednesday even as government data showed a continued slowing of new-home sales.
Lennar Corp. (LEN:$17.90,00$0.84,004.92%) led the pack with gains of 4.7% after the home builder's first-quarter loss narrowed to $6.5 million, or 4 cents a share, as revenue fell 3.1% to $574.4 million, beating Wall Street estimates. Lennar (LEN:$17.90,00$0.84,004.92%) , however, reported that new home orders for the quarter rose 18% to 2,577.
Other home builders showed gains on the day. Hovnanian Enterprises Inc. (HOV:$4.875000,$0.205000,4.39%) shares rose 3%. Shares of “BZH’ rose to $4.90 a share , up 2%. Sales of new homes fell for the fourth-straight month according to February data to its lowest rate since the Commerce Department started keeping figures in 1963. Seasonally adjusted, new-homes sales declined 2.2% to an annual pace of 308,000. The number of new homes for sale increased 1.3% to 236,000, or a 9.2 month inventory based on the current sales rate.
Home-builder stocks showed gains on Wednesday even as government data showed a continued slowing of new-home sales.
Lennar Corp. (LEN:$17.90,00$0.84,004.92%) led the pack with gains of 4.7% after the home builder's first-quarter loss narrowed to $6.5 million, or 4 cents a share, as revenue fell 3.1% to $574.4 million, beating Wall Street estimates. Lennar (LEN:$17.90,00$0.84,004.92%) , however, reported that new home orders for the quarter rose 18% to 2,577.
Other home builders showed gains on the day. Hovnanian Enterprises Inc. (HOV:$4.875000,$0.205000,4.39%) shares rose 3%. Shares of “BZH’ rose to $4.90 a share , up 2%. Sales of new homes fell for the fourth-straight month according to February data to its lowest rate since the Commerce Department started keeping figures in 1963. Seasonally adjusted, new-homes sales declined 2.2% to an annual pace of 308,000. The number of new homes for sale increased 1.3% to 236,000, or a 9.2 month inventory based on the current sales rate.
Tuesday, March 23, 2010
SAKS, Inc (SKS)
Today, J. P. Morgan raised ‘SKS’ to overweight from neutral. They had a target price on the stock at $7 a share. Yesterday ’SKS’ closed at $8.76 way over J. P. Morgan target price. Where they were when the stock was trading as low as $6.25 earlier this year ? It is an example how analysts” take a cover” after a stock move up or down and the only way to be right is to change their opinion on a stock after it made it’s move.
I personally believe that ’SKS’ will move much higher to as high as $20 a share by the end of the year, also there is the possibility that the company will be a target of “take over”.
COLDWATER CREEK, Inc (CWTR)
At $7 a share, I believe ‘CWTR’ that it is a under value. The company had it’s challenges in the past and with some personal changes it moves in the right direction. Sales will increase, as the economy getting better and with inventory control ’CWTR‘ can reach $12 a share
Today, J. P. Morgan raised ‘SKS’ to overweight from neutral. They had a target price on the stock at $7 a share. Yesterday ’SKS’ closed at $8.76 way over J. P. Morgan target price. Where they were when the stock was trading as low as $6.25 earlier this year ? It is an example how analysts” take a cover” after a stock move up or down and the only way to be right is to change their opinion on a stock after it made it’s move.
I personally believe that ’SKS’ will move much higher to as high as $20 a share by the end of the year, also there is the possibility that the company will be a target of “take over”.
COLDWATER CREEK, Inc (CWTR)
At $7 a share, I believe ‘CWTR’ that it is a under value. The company had it’s challenges in the past and with some personal changes it moves in the right direction. Sales will increase, as the economy getting better and with inventory control ’CWTR‘ can reach $12 a share
Monday, March 22, 2010
Monday after Quadruple Witching.
As written on Friday, the DOW reversed itself and was up 40 point during the morning . The same amount it lost on Friday. This reversal was exactly as I anticipated.
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Many of the stocks that closed Friday were just under strike price also reversed their course. Listed below are just a few examples,
STX closed Friday under just under $19 a share . In today’s the morning trading, the stock rose to over $19.50.
MU closed Friday under $10 a share . On opening this morning, the stock rose to $10.25 a share .
Others such ax BX, C, RFMD and many more followed suit.
On the flip side, stocks that closed over their strike price opened down. Owners of the calls sold the stocks in order to profit from the application of the options. Just one example was AMD . AMD closed Friday at over $9 a share. The stock opened on Monday morning trading as low $8.80. Once again there are numerous examples to validate my claim.
As written on Friday, the DOW reversed itself and was up 40 point during the morning . The same amount it lost on Friday. This reversal was exactly as I anticipated.
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Many of the stocks that closed Friday were just under strike price also reversed their course. Listed below are just a few examples,
STX closed Friday under just under $19 a share . In today’s the morning trading, the stock rose to over $19.50.
MU closed Friday under $10 a share . On opening this morning, the stock rose to $10.25 a share .
Others such ax BX, C, RFMD and many more followed suit.
On the flip side, stocks that closed over their strike price opened down. Owners of the calls sold the stocks in order to profit from the application of the options. Just one example was AMD . AMD closed Friday at over $9 a share. The stock opened on Monday morning trading as low $8.80. Once again there are numerous examples to validate my claim.
Friday, March 19, 2010
Today is Quadruple Witching. (see blog March 15)
Without any reason, the Dow closed down 40 points at 10,738. The NASDAQ lost 16 points
to close at 2,374. The S&P lost 7 points to close at 1,159.
Volatility occurred due to the expiration of Quadruple Witching options. Some stocks closed just under the strike price. Therefore on Monday morning, those stocks will still be in the owners’ portfolio. Here are some examples:
RFMD closed at $4.95. During the week, it traded over $5.00 a share. RFMD is anticipated to open higher Monday morning.
STX closed at $18.96 after trading most of the week above $19 a share. It is most likely to open higher Monday morning.
MU closed at $9.96 after trading most of the week above $10 a share. It too is likely to open higher Monday morning.
BX closed at $13.99 after trading above $14 a share most of the week. The stock likely open higher Monday morning.
Some stocks closed above options expirations and are most likely to open down Monday morning.
Below are some examples
AMD closed at $9.15.
INTC closed at $22.01
AMZN closed at $130.30
If no major events occur this weekend, the stock market is likely to open higher Monday morning.
Without any reason, the Dow closed down 40 points at 10,738. The NASDAQ lost 16 points
to close at 2,374. The S&P lost 7 points to close at 1,159.
Volatility occurred due to the expiration of Quadruple Witching options. Some stocks closed just under the strike price. Therefore on Monday morning, those stocks will still be in the owners’ portfolio. Here are some examples:
RFMD closed at $4.95. During the week, it traded over $5.00 a share. RFMD is anticipated to open higher Monday morning.
STX closed at $18.96 after trading most of the week above $19 a share. It is most likely to open higher Monday morning.
MU closed at $9.96 after trading most of the week above $10 a share. It too is likely to open higher Monday morning.
BX closed at $13.99 after trading above $14 a share most of the week. The stock likely open higher Monday morning.
Some stocks closed above options expirations and are most likely to open down Monday morning.
Below are some examples
AMD closed at $9.15.
INTC closed at $22.01
AMZN closed at $130.30
If no major events occur this weekend, the stock market is likely to open higher Monday morning.
Thursday, March 18, 2010
PRODUCER PRICE INDEXES - FEBRUARY 2010
The Consumer Price Index (CPI) program produces monthly data on changes in the prices paid by consumers for a representative basket of goods and services.
The Consumer Price Index for February 2010 was seasonally adjusted. As reported by U.S. Bureau of Labor Statistics today, the Consumer Price Index (CPI-U) remained unchanged for February 2010 . Over the last 12 months, the index has increased by 2.1% before seasonal adjustment.
The U.S. Bureau of Labor Statistics reported today, after seasonally adjusted, the Producer Price Index for Finished Goods declined 0.6% in February. This decrease followed a 1.4% advance in January and a 0.4% percent increase in December, 2009. At the earlier stages of processing, prices received by producers of intermediate goods increased- up 0.1% and the crude goods index fell 3.5%. On an unadjusted basis, prices for finished goods advanced 4.4% for the 12 month period that ended in February 2010.
The “CPI” and the “PPI” are the cost of all items LESS the cost of FOOD and ENERGY. Food and energy statistics are the most important for the consumers and in those areas inflation is rapidly increasing. The government statistics are misleading consumers.
The Consumer Price Index (CPI) program produces monthly data on changes in the prices paid by consumers for a representative basket of goods and services.
The Consumer Price Index for February 2010 was seasonally adjusted. As reported by U.S. Bureau of Labor Statistics today, the Consumer Price Index (CPI-U) remained unchanged for February 2010 . Over the last 12 months, the index has increased by 2.1% before seasonal adjustment.
The U.S. Bureau of Labor Statistics reported today, after seasonally adjusted, the Producer Price Index for Finished Goods declined 0.6% in February. This decrease followed a 1.4% advance in January and a 0.4% percent increase in December, 2009. At the earlier stages of processing, prices received by producers of intermediate goods increased- up 0.1% and the crude goods index fell 3.5%. On an unadjusted basis, prices for finished goods advanced 4.4% for the 12 month period that ended in February 2010.
The “CPI” and the “PPI” are the cost of all items LESS the cost of FOOD and ENERGY. Food and energy statistics are the most important for the consumers and in those areas inflation is rapidly increasing. The government statistics are misleading consumers.
Wednesday, March 17, 2010
The Stock market reach it’s highest point for 2010.
During the trading day, the Dow reach 10750, the NASDAQ was trading at 2390 and the S&P reach 1165.
Technology Select Sector SPDR approaching 52-week high 03/17 10:44 AM
The Technology Sector (XLK) is nearing its 52-week high, which was set at the start of the year, at $23.30. Given the heavy weight in the S&P 500, at over 21%, a breakout move as we have seen now in the Financials (XLF), Consumer Staples (XLP), Consumer Discretionary (XLY), and the Industrials (XLI), could be necessary ingredient for reaching the much-hoped-for1200 area. As a reminder, this was the area from which the index collapsed in October 2008. On a breakout above $23.30, the following resistance levels could become additional upside objectives: $23.41, $23.83, $24.26, $24.65, $25.05. Support is currently at $22.62, the 10-day moving average and the uptrend support line proxy for the short-term move.
Financial ETF doubles in a year (XLF) 03/17 11:23 AM
The rally in the Financial Select Sector SPDR Fund on Wednesday means the exchange-traded fund has more than doubled in value from a year ago. The ETF set a new 52-week high of $15.97 a share on Wednesday. One year ago on March 17, 2009, the fund touched a session low of $7.87, according to data from FactSet Research.
The only reason why the market will not continue higher today is because option expirations this Friday.
(see BLOG March 15,)
During the trading day, the Dow reach 10750, the NASDAQ was trading at 2390 and the S&P reach 1165.
Technology Select Sector SPDR approaching 52-week high 03/17 10:44 AM
The Technology Sector (XLK) is nearing its 52-week high, which was set at the start of the year, at $23.30. Given the heavy weight in the S&P 500, at over 21%, a breakout move as we have seen now in the Financials (XLF), Consumer Staples (XLP), Consumer Discretionary (XLY), and the Industrials (XLI), could be necessary ingredient for reaching the much-hoped-for1200 area. As a reminder, this was the area from which the index collapsed in October 2008. On a breakout above $23.30, the following resistance levels could become additional upside objectives: $23.41, $23.83, $24.26, $24.65, $25.05. Support is currently at $22.62, the 10-day moving average and the uptrend support line proxy for the short-term move.
Financial ETF doubles in a year (XLF) 03/17 11:23 AM
The rally in the Financial Select Sector SPDR Fund on Wednesday means the exchange-traded fund has more than doubled in value from a year ago. The ETF set a new 52-week high of $15.97 a share on Wednesday. One year ago on March 17, 2009, the fund touched a session low of $7.87, according to data from FactSet Research.
The only reason why the market will not continue higher today is because option expirations this Friday.
(see BLOG March 15,)
Tuesday, March 16, 2010
IS IT TIME TO LOOK AT HOME BUILDERS ?
The real estate in the United States will rebound soon. No one can predict the precise moment it will occur. However, indications are that the worst is behind us.
During the last few years, housing inventory has been depleted. Interest rates are historically low. With the prospect that interest rates will rise soon, buyers who sat on the fence, will make their move and purchase a home.
Organically, the population in the USA is growing. New immigrants are likely to purchase a house at once, as they did in the old country.
On the other hand, foreclosures and short sales are historically high. Those people who lose their houses will move lower cost accommodations. Buyers of those properties are real home owners and investors who are looking for a long term investments.
The two companies I believe will do very well in the near future are;
Hovnanian Enterprises. Inc (HOV) and Beazer Homes USA, Inc (BZH)
Hovnanian (HOV:$4.49,00$0.17,003.94%) earlier this month reported net income of $236.20 million for the fiscal first quarter - its first profit since 2006. Hovnanian received a $291.3 million tax benefit.
Beazer Homes was recently up 22c to $4.94 on renewed takeover chatter. The BZH April option implied volatility is at 67, May puts are at 64 - below its 26-week moving average of 88. Additionally, call option volume of 5,767 contracts compares to put volume of 50,976 contracts according to Track Data, suggesting traders taking positions for price movement.
Buy ‘HOV’ at around $4 a share. The target price by the end of the year is $10 a share.
Buy ‘BZH’ at below $5 a share with target price at $12 a share by the end of the year.
The real estate in the United States will rebound soon. No one can predict the precise moment it will occur. However, indications are that the worst is behind us.
During the last few years, housing inventory has been depleted. Interest rates are historically low. With the prospect that interest rates will rise soon, buyers who sat on the fence, will make their move and purchase a home.
Organically, the population in the USA is growing. New immigrants are likely to purchase a house at once, as they did in the old country.
On the other hand, foreclosures and short sales are historically high. Those people who lose their houses will move lower cost accommodations. Buyers of those properties are real home owners and investors who are looking for a long term investments.
The two companies I believe will do very well in the near future are;
Hovnanian Enterprises. Inc (HOV) and Beazer Homes USA, Inc (BZH)
Hovnanian (HOV:$4.49,00$0.17,003.94%) earlier this month reported net income of $236.20 million for the fiscal first quarter - its first profit since 2006. Hovnanian received a $291.3 million tax benefit.
Beazer Homes was recently up 22c to $4.94 on renewed takeover chatter. The BZH April option implied volatility is at 67, May puts are at 64 - below its 26-week moving average of 88. Additionally, call option volume of 5,767 contracts compares to put volume of 50,976 contracts according to Track Data, suggesting traders taking positions for price movement.
Buy ‘HOV’ at around $4 a share. The target price by the end of the year is $10 a share.
Buy ‘BZH’ at below $5 a share with target price at $12 a share by the end of the year.
Monday, March 15, 2010
QUADRUPLE WITCHING OPTION EXPERATION.
Alert: Friday March 19 , 2010 Quadruple Witching of Option Expirations
Quadruple Witching
What Does Quadruple Witching Mean?On this day, all contracts for stock index futures, stock index options, stock options
and single stock futures (SSF) expire. Quadruple witching days occurs on the third Friday of March, June, September and December of every year.
Historically, Quadruple Witching is a very volatile trading day. Additionally, in most instances the following Monday, we can observe the reverse of what the market did on Friday of quadruple witching.
In the last few years, investors have learned to accept the volatility that occurs. Trading can be heavy and volatile a few days prior to quadruple witching.
Many times stocks will close that Friday just below the option expiration strike price. For example the stock of XYZ may close Friday trading at $9.98, a few cents below $10 strike price. At that point, the option expire worthless and the owner will keep the stock in his portfolio.
If Friday is a down day, the investor will have the opportunity to buy the stock of his/her choice. If Friday closes up, then the investor will have the opportunity to sell stocks with the anticipation of buying them back the following Monday at much lower price
Alert: Friday March 19 , 2010 Quadruple Witching of Option Expirations
Quadruple Witching
What Does Quadruple Witching Mean?On this day, all contracts for stock index futures, stock index options, stock options
and single stock futures (SSF) expire. Quadruple witching days occurs on the third Friday of March, June, September and December of every year.
Historically, Quadruple Witching is a very volatile trading day. Additionally, in most instances the following Monday, we can observe the reverse of what the market did on Friday of quadruple witching.
In the last few years, investors have learned to accept the volatility that occurs. Trading can be heavy and volatile a few days prior to quadruple witching.
Many times stocks will close that Friday just below the option expiration strike price. For example the stock of XYZ may close Friday trading at $9.98, a few cents below $10 strike price. At that point, the option expire worthless and the owner will keep the stock in his portfolio.
If Friday is a down day, the investor will have the opportunity to buy the stock of his/her choice. If Friday closes up, then the investor will have the opportunity to sell stocks with the anticipation of buying them back the following Monday at much lower price
Friday, March 12, 2010
STOCK IN THE NEWS, A STRONG BUY.
Target price $20 per share.
National Semiconductor Corporation Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended February 28, 2010; Provides Revenue Guidance for the Fourth Quarter of Fiscal 2010; Declares Cash Dividend Payable on April 12, 2010. The yield is 2.28%.
National Semiconductor Corporation (NSM:$14.36,00$0.02,000.14%) reported unaudited consolidated earnings results for the third quarter and nine months ended February 28, 2010. For the quarter, the company reported net income of $53.2 million or $0.22 per basic and diluted share on net sales of $361.9 million against net income of $21.1 million or $0.09 per basic and diluted share on net sales of $292.4 million for the same period a year ago. Operating income of $86.0 million compared to $30.3 million a year ago. Income before taxes of $72.4 million compared to $61.4 million a year ago.
For the nine months, the company reported net income of $130.0 million or $0.55 per basic share and $0.54 per diluted share on net sales of $1,020.9 million against net income of $21.1 million or $0.60 per basic share and $0.58 per diluted share on net sales of $1,179.6 million for the same period a year ago. Operating income of $210.2 million compared to $253.4 million a year ago. Income before taxes of $172.1 million compared to $193.2 million a year ago. Net cash provided by operating activities of $246.2 million compared to $292.2 million a year ago. Purchase of property, plant and equipment of $25.9million compared to $75.7 million a year ago.
The company is projecting revenues to be between $375 million and $390 million (up approximately 4% to 8 sequentially) in the fourth quarter of fiscal 2010.
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Target price $20 per share.
National Semiconductor Corporation Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended February 28, 2010; Provides Revenue Guidance for the Fourth Quarter of Fiscal 2010; Declares Cash Dividend Payable on April 12, 2010. The yield is 2.28%.
National Semiconductor Corporation (NSM:$14.36,00$0.02,000.14%) reported unaudited consolidated earnings results for the third quarter and nine months ended February 28, 2010. For the quarter, the company reported net income of $53.2 million or $0.22 per basic and diluted share on net sales of $361.9 million against net income of $21.1 million or $0.09 per basic and diluted share on net sales of $292.4 million for the same period a year ago. Operating income of $86.0 million compared to $30.3 million a year ago. Income before taxes of $72.4 million compared to $61.4 million a year ago.
For the nine months, the company reported net income of $130.0 million or $0.55 per basic share and $0.54 per diluted share on net sales of $1,020.9 million against net income of $21.1 million or $0.60 per basic share and $0.58 per diluted share on net sales of $1,179.6 million for the same period a year ago. Operating income of $210.2 million compared to $253.4 million a year ago. Income before taxes of $172.1 million compared to $193.2 million a year ago. Net cash provided by operating activities of $246.2 million compared to $292.2 million a year ago. Purchase of property, plant and equipment of $25.9million compared to $75.7 million a year ago.
The company is projecting revenues to be between $375 million and $390 million (up approximately 4% to 8 sequentially) in the fourth quarter of fiscal 2010.
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Thursday, March 11, 2010
ECONOMIC CALENDAR
Most investors know by now the value of economic indicators. In general, they indicate how the economic condition of the country and offer a glimpse into the near future. Some indicators are more important than others. Some have no value at all except to provide headlines for the media. For example during the month of March 2010, the calendar had no less than 58 indicators. Some days had as many as six indicators.
Let’s look at them:
March 1, 1). Personal Income and Outlays. 2). ISM Manufacturing Index. 3). Construction Spending.
March 2, 1.) Motor Vehicle Sales.
March 3, 1). Challenger Job Cut. 2). ADP Employment report. 3). ISM Non Manufacturing Index.
4). EIA Petroleum report.
March 4. 1). Monster Employment report. 2). Jobless Claims. 3). Productivity and Cost. 4) .Factory orders.
5). Pending Home sales Index . 6.Money Supply.
March 5. 1). EMPLOYMENT SITUATION. 2). Consumer credit.
March 10. 1). Wholesales Trade. 2). EIA Petreleum Status Report.
March 11. 1).International Trade. 2).Jobless claims. 3) .Money Supply.
March 12. 1).Retail Sales. 2).Consumer sentiment. 3).Business Inventories.
March 15. 1).Empire State Manufacturing Index. 2). Treasury International Capital. 3).Industrial Production.
4). Housing Market Index.
March 16. 1). Housing Start. 2).Import and Export Prices. 3).FOMC Meeting Annoncment.
March 17. 1). PRODUCER PRICE INDEX. 2).EIA Petroleum Report.
March 18. 1). COSUMER PRICE INDEX. 2) .Jobless Claims. 3). Current Account. 4). Leading Indicators.
5). Philadelphia Fed Survey. 6). Money Supply.
March 19. QUADRUPLE WITCHING OPTION EXPERATION.
March 23. 1.) Existing Home Sale.
March 24. 1). Durable Goods Order. 2). New Home Sales. 3).EIA Petroleum Report.
March 25. 1) .Jobless Claims. 2). Money Supply.
March 26. 1). GDP. 2). Corporate Profit. 3). Consumer Sentiment.
March 29. 1). Personal Income and outlays.
March 30. 1). S&P Case Shiller HPI. 2). Consumer Sentiment. 3) . State Street Investors Confident Index.
4). Farm Prices.
March 31. 1). ADP Employment Report. 2) .Chicago PMI. 3). Factory Outlay. 4). EIA Petroleum Report.
So which one of those is important? My opinion is that only those in Capital Letter are worthy to watch for.
Most investors know by now the value of economic indicators. In general, they indicate how the economic condition of the country and offer a glimpse into the near future. Some indicators are more important than others. Some have no value at all except to provide headlines for the media. For example during the month of March 2010, the calendar had no less than 58 indicators. Some days had as many as six indicators.
Let’s look at them:
March 1, 1). Personal Income and Outlays. 2). ISM Manufacturing Index. 3). Construction Spending.
March 2, 1.) Motor Vehicle Sales.
March 3, 1). Challenger Job Cut. 2). ADP Employment report. 3). ISM Non Manufacturing Index.
4). EIA Petroleum report.
March 4. 1). Monster Employment report. 2). Jobless Claims. 3). Productivity and Cost. 4) .Factory orders.
5). Pending Home sales Index . 6.Money Supply.
March 5. 1). EMPLOYMENT SITUATION. 2). Consumer credit.
March 10. 1). Wholesales Trade. 2). EIA Petreleum Status Report.
March 11. 1).International Trade. 2).Jobless claims. 3) .Money Supply.
March 12. 1).Retail Sales. 2).Consumer sentiment. 3).Business Inventories.
March 15. 1).Empire State Manufacturing Index. 2). Treasury International Capital. 3).Industrial Production.
4). Housing Market Index.
March 16. 1). Housing Start. 2).Import and Export Prices. 3).FOMC Meeting Annoncment.
March 17. 1). PRODUCER PRICE INDEX. 2).EIA Petroleum Report.
March 18. 1). COSUMER PRICE INDEX. 2) .Jobless Claims. 3). Current Account. 4). Leading Indicators.
5). Philadelphia Fed Survey. 6). Money Supply.
March 19. QUADRUPLE WITCHING OPTION EXPERATION.
March 23. 1.) Existing Home Sale.
March 24. 1). Durable Goods Order. 2). New Home Sales. 3).EIA Petroleum Report.
March 25. 1) .Jobless Claims. 2). Money Supply.
March 26. 1). GDP. 2). Corporate Profit. 3). Consumer Sentiment.
March 29. 1). Personal Income and outlays.
March 30. 1). S&P Case Shiller HPI. 2). Consumer Sentiment. 3) . State Street Investors Confident Index.
4). Farm Prices.
March 31. 1). ADP Employment Report. 2) .Chicago PMI. 3). Factory Outlay. 4). EIA Petroleum Report.
So which one of those is important? My opinion is that only those in Capital Letter are worthy to watch for.
Wednesday, March 10, 2010
MERGERS AND ACQUISITIONS(M&A)
Dealmakers predict an up tick in mergers and acquisitions (M&A) in the year 2010. According to a survey by the Association for Corporate Growth, corporate and dealmakers anticipate an increase in M&A this year. The manufacturing, financial services and health care sector are expected to lead the way.
The latest data suggests that during year 2010, 642 acquisitions worth $32billion has been announced by U.S. companies for targeted assets within the USA and around the world.
There are several different thoughts regarding M&A. However according to my opinion, many companies are still trading below their intrinsic value. In other words, it is “cheaper” to buy an existing company then to establish a new company from scratch in the same business. Today there are many cash rich companies. In order to grow their business, a buyer prefers to buy a “cheap” company with a bright future, offering a buyer excellent opportunities.
In conclusion the next few years, we will see an increase in M&A. Companies will be sold at a premium to their current stock prices. The acquired company will free up dollars in order for investors to purchase stocks of other companies.
Dealmakers predict an up tick in mergers and acquisitions (M&A) in the year 2010. According to a survey by the Association for Corporate Growth, corporate and dealmakers anticipate an increase in M&A this year. The manufacturing, financial services and health care sector are expected to lead the way.
The latest data suggests that during year 2010, 642 acquisitions worth $32billion has been announced by U.S. companies for targeted assets within the USA and around the world.
There are several different thoughts regarding M&A. However according to my opinion, many companies are still trading below their intrinsic value. In other words, it is “cheaper” to buy an existing company then to establish a new company from scratch in the same business. Today there are many cash rich companies. In order to grow their business, a buyer prefers to buy a “cheap” company with a bright future, offering a buyer excellent opportunities.
In conclusion the next few years, we will see an increase in M&A. Companies will be sold at a premium to their current stock prices. The acquired company will free up dollars in order for investors to purchase stocks of other companies.
Tuesday, March 9, 2010
Stock of the day.
APPLIED MATERIALS, Inc. (AMAT)
‘AMAT’ is a global leader in Nano-Manufacturing Technology and solutions with a broad portfolios of innovation equipments. Also the company provide equipments, services and software products for the fabrication of semiconductors chips, flat panels, solar photovoltaic cells and flexible electronics and efficient glass panels.
Worldwide spending on semiconductors fabrication equipments is expected to rise sharply during the year 2010, fuelled by a rebounding chip market according to the industry group. According to GARTNER Inc, Chip spending will rise over 77% this year vs. last year, to as much as 30B Dollars.
‘AMAT’ is going to be one of the beneficiary of this trend. On March 8, 2010 the company increased it’s dividend 17% to a yield of 2.27%, and a buyback of $2B of it’s own stock.
When a company buy it’s own stock it is believed that the stock is under value at current market prices, also when a company increase it’s dividend pay out it show a better profit in the near future.
According to my opinion ’AMAT’ is a strong buy with a target price of $20 a share by the end of the year.
APPLIED MATERIALS, Inc. (AMAT)
‘AMAT’ is a global leader in Nano-Manufacturing Technology and solutions with a broad portfolios of innovation equipments. Also the company provide equipments, services and software products for the fabrication of semiconductors chips, flat panels, solar photovoltaic cells and flexible electronics and efficient glass panels.
Worldwide spending on semiconductors fabrication equipments is expected to rise sharply during the year 2010, fuelled by a rebounding chip market according to the industry group. According to GARTNER Inc, Chip spending will rise over 77% this year vs. last year, to as much as 30B Dollars.
‘AMAT’ is going to be one of the beneficiary of this trend. On March 8, 2010 the company increased it’s dividend 17% to a yield of 2.27%, and a buyback of $2B of it’s own stock.
When a company buy it’s own stock it is believed that the stock is under value at current market prices, also when a company increase it’s dividend pay out it show a better profit in the near future.
According to my opinion ’AMAT’ is a strong buy with a target price of $20 a share by the end of the year.
Monday, March 8, 2010
IS THERE IS A BUBBLE IN US BONDS?
Today the US Government 10-Year bonds traded at 99.27 and yielded 3.71%. In other words, a bond that had a par value of $1,000 at maturity was currently trading below par at $992.70.
U.S. interest rates currently are historically low. Because of the recession, the Federal Reserve has kept interest rates artificially low in order to stimulate the economy.
One of the mandates of the Federal Reserve is to fight inflation. One tool at their deposal is to increase interest rates.
As the economy recovers and the unemployement numbers decline, the U. S. Federal Reserve will begin to increase interest rates. The moment they begin to do so, the interest rate increases will be frequent and dramatic. The result will be a decrease in the value of the U.S. 10 Years Bonds. It is very possible that the bonds can lose as much as 30% of their value in the next two years.
According to the latest Wall Street survey , most of the new money invested in Wall Street was invested in bond funds. Because of the latest market volatility, many investors feel more secure in the Bond market without any understanding that their losses could be significant. Additionally understand that upon maturity, the bond will be paid their full par value. The question is “do investors want to wait ten years to get their money back” ?
Today the US Government 10-Year bonds traded at 99.27 and yielded 3.71%. In other words, a bond that had a par value of $1,000 at maturity was currently trading below par at $992.70.
U.S. interest rates currently are historically low. Because of the recession, the Federal Reserve has kept interest rates artificially low in order to stimulate the economy.
One of the mandates of the Federal Reserve is to fight inflation. One tool at their deposal is to increase interest rates.
As the economy recovers and the unemployement numbers decline, the U. S. Federal Reserve will begin to increase interest rates. The moment they begin to do so, the interest rate increases will be frequent and dramatic. The result will be a decrease in the value of the U.S. 10 Years Bonds. It is very possible that the bonds can lose as much as 30% of their value in the next two years.
According to the latest Wall Street survey , most of the new money invested in Wall Street was invested in bond funds. Because of the latest market volatility, many investors feel more secure in the Bond market without any understanding that their losses could be significant. Additionally understand that upon maturity, the bond will be paid their full par value. The question is “do investors want to wait ten years to get their money back” ?
Friday, March 5, 2010
Today, the US February unemployment report was released at 8:30 am. It revealed that another 36,000 American workers lost their jobs. Unemployment remained at 9.7%. The market expected worse numbers then reported. Therefore, at opening the stock market rose 95 points.
According to some statistics, the real unemployment number is 14.8 millions. I personally am skeptical regarding the numbers released today. I anticipate a revision of these figures. It is commonplace for the US government to revise numbers within a month, no matter what the report is issued.
SOLAEFUN POWER HOLDINGS CO. LTD “SOLF”
Yesterday “SOLF” reported their earnings for last quarter. The company returned to profitability and anticipates their 2010 volume of their shipments to be up 20%, from 500MW to 600MW. Prices for PV modules are about $1.95 per unit. As the development of solar energy becomes cheaper, it will be more affordable for buyers to purchase and use this technology. Therefore, it will become more practical for the masses to use. Future earnings can only improve.
In the past, I recommended this company. The 52 week low is about $2.28 a share and the 52 week high is $10.78. According to my opinion, the stock trading today around $7 a share is a buy.
According to some statistics, the real unemployment number is 14.8 millions. I personally am skeptical regarding the numbers released today. I anticipate a revision of these figures. It is commonplace for the US government to revise numbers within a month, no matter what the report is issued.
SOLAEFUN POWER HOLDINGS CO. LTD “SOLF”
Yesterday “SOLF” reported their earnings for last quarter. The company returned to profitability and anticipates their 2010 volume of their shipments to be up 20%, from 500MW to 600MW. Prices for PV modules are about $1.95 per unit. As the development of solar energy becomes cheaper, it will be more affordable for buyers to purchase and use this technology. Therefore, it will become more practical for the masses to use. Future earnings can only improve.
In the past, I recommended this company. The 52 week low is about $2.28 a share and the 52 week high is $10.78. According to my opinion, the stock trading today around $7 a share is a buy.
Thursday, March 4, 2010
Today’s trading was extremely cautious in anticipation of the February’s monthly jobs report due to be released tomorrow at 8:30 am.
This report is released once a month on the first Friday of each month. Many times the market reacts drastically to this report. Reaction to the report is usually short lived. For the most part by the next day, no one seems to care about the results. It is a great opportunity to sell stock if the report is positive. However if the report is disappointing, it is a good opportunity to purchase stock. At the end of the day, reversing the trade can turn out to be a good short term trade.
Today the CEO of CITIGROUP (C ) Vikram Pandit testified in front of the TARP panel. During his testimony he made very interesting points. It seems that “C” is on the road to a full recovery.
The bank has changed their methods of operations and will return to profitability within a short time. The big cloud hanging over “C” is the government. As of today, US Treasury Department has a huge investment in CITIGROUP. The US Treasury has 25 Billion dollars invested and owns about 27% of “C” stock.
The Treasury Department has plans to sell a large chunk of the stock at the end of March, after the lockup is over. The belief is that at one point “C” will repay their obligations to the Government. At that point, “C” will trade as a public company, free of US Government controls.
Currently the stock is trading around $3.40 a share. I believe that after the Treasury Department will sell their shares at the end of March, the stock will rise dramatically. I think that the stock can finish the year at over $5.00 a share. A 50% return on your money from today‘s closing price.
This report is released once a month on the first Friday of each month. Many times the market reacts drastically to this report. Reaction to the report is usually short lived. For the most part by the next day, no one seems to care about the results. It is a great opportunity to sell stock if the report is positive. However if the report is disappointing, it is a good opportunity to purchase stock. At the end of the day, reversing the trade can turn out to be a good short term trade.
Today the CEO of CITIGROUP (C ) Vikram Pandit testified in front of the TARP panel. During his testimony he made very interesting points. It seems that “C” is on the road to a full recovery.
The bank has changed their methods of operations and will return to profitability within a short time. The big cloud hanging over “C” is the government. As of today, US Treasury Department has a huge investment in CITIGROUP. The US Treasury has 25 Billion dollars invested and owns about 27% of “C” stock.
The Treasury Department has plans to sell a large chunk of the stock at the end of March, after the lockup is over. The belief is that at one point “C” will repay their obligations to the Government. At that point, “C” will trade as a public company, free of US Government controls.
Currently the stock is trading around $3.40 a share. I believe that after the Treasury Department will sell their shares at the end of March, the stock will rise dramatically. I think that the stock can finish the year at over $5.00 a share. A 50% return on your money from today‘s closing price.
Wednesday, March 3, 2010
A STOCK ANALIST ON WALL STREET CAN BE WRONG ALL HIS/HER LIFE, YET PEOPLE WILL KEEP LISTENING TO HIM/HER.
Here is just one of thousands of examples.
BANCO SANTANDER CENTAL (STD).
On February 24, 2010, “STD” was downgraded by BARCLAY CAPITAL from equal weight to underweight. In other words, sell the stock. “STD” was trading that day at $12.70 a share. Today March 3, 2010, the stock is trading at over $13.75 a share. A gain of over 8% for this week.
According to my opinion, “STD” is a buy at any price below $12.50 a share. The bank’s EPS (earnings per share) is over $1.50 a share. The P/E (price earnings ratio) is about 9. The dividend of 6.75% is fairly secure.
As always, markets are created by buyers and sellers. The buyer will purchase a stock because the investor believes that the stock will go up. Conversely, the seller will sell the stock because he believes that the stock will go down. The challenge for investors is to choose whether to be a buyer or seller
Here is just one of thousands of examples.
BANCO SANTANDER CENTAL (STD).
On February 24, 2010, “STD” was downgraded by BARCLAY CAPITAL from equal weight to underweight. In other words, sell the stock. “STD” was trading that day at $12.70 a share. Today March 3, 2010, the stock is trading at over $13.75 a share. A gain of over 8% for this week.
According to my opinion, “STD” is a buy at any price below $12.50 a share. The bank’s EPS (earnings per share) is over $1.50 a share. The P/E (price earnings ratio) is about 9. The dividend of 6.75% is fairly secure.
As always, markets are created by buyers and sellers. The buyer will purchase a stock because the investor believes that the stock will go up. Conversely, the seller will sell the stock because he believes that the stock will go down. The challenge for investors is to choose whether to be a buyer or seller
Tuesday, March 2, 2010
STOCK OF THE DAY
MICROSOFT CORPORATION (MSFT)
MSFT is trading today at $28.50 a share. The company is one of the most successful corporations on Wall Street. MSFT has almost $40 billion in cash while the operation generates almost One Billion Dollars net a month. During this year, MSFT unveiled their new operating system (WINDOW 7) and are scheduled to release their business upgrade of OFFICE and WORKS. The future is very promising and the stock is poised to go significantly higher.
Here are possibilities of how to trade MSFT.
Buy the stock outright and wait for the stock to appreciate. The target price is $33 a share within six months.
Buy the stock at $28.50 today and to sell covered calls against it. The calls should be for July 2010.
As example, buy 1,000 shares at today price and the cost will be $28,500. By selling covered calls for
July 2010 with a strike price of $30, a $1,000 premium is earned. The net cost of the stock will be only
$27,500 and the owner has to hold the stock till option expiration (July 1, 2010). If MSFT will be over
$30
a share, the owner will lose the stock and will pocket a $2,500 profit-a gain of almost 10% for 5 months.
Sell April 2010 puts with a strike price of $28 against MSFT for $650. If MSFT dips below $28 a share within two months, the stock will be given to the owner at $28 a share. For example, the owner will receive $650 for the obligation to buy 1,000 shares at $28 each. The net cost for the owner will be only $27,350 for 1,000 shares of MSFT. That is considerably lower than today trading price. However if the stock during the next two months will stay above $28 a share, the owner will pocket the premium of $650 without ever buying the stock.
MICROSOFT CORPORATION (MSFT)
MSFT is trading today at $28.50 a share. The company is one of the most successful corporations on Wall Street. MSFT has almost $40 billion in cash while the operation generates almost One Billion Dollars net a month. During this year, MSFT unveiled their new operating system (WINDOW 7) and are scheduled to release their business upgrade of OFFICE and WORKS. The future is very promising and the stock is poised to go significantly higher.
Here are possibilities of how to trade MSFT.
Buy the stock outright and wait for the stock to appreciate. The target price is $33 a share within six months.
Buy the stock at $28.50 today and to sell covered calls against it. The calls should be for July 2010.
As example, buy 1,000 shares at today price and the cost will be $28,500. By selling covered calls for
July 2010 with a strike price of $30, a $1,000 premium is earned. The net cost of the stock will be only
$27,500 and the owner has to hold the stock till option expiration (July 1, 2010). If MSFT will be over
$30
a share, the owner will lose the stock and will pocket a $2,500 profit-a gain of almost 10% for 5 months.
Sell April 2010 puts with a strike price of $28 against MSFT for $650. If MSFT dips below $28 a share within two months, the stock will be given to the owner at $28 a share. For example, the owner will receive $650 for the obligation to buy 1,000 shares at $28 each. The net cost for the owner will be only $27,350 for 1,000 shares of MSFT. That is considerably lower than today trading price. However if the stock during the next two months will stay above $28 a share, the owner will pocket the premium of $650 without ever buying the stock.
Monday, March 1, 2010
The Semiconductor Industry Association (SIA) announced on Monday, March 12010 that worldwide chip sales in January rose to $22.5 billion. A significant 47.5% increase from the same month a year ago. Additionally, chip sales were higher in January 2010 from December 2009.
This confirms the recommendation of February 24, 2010 regarding the upgrade of computers and software in order to improve productivity and to stay current in difficult business conditions. In the past I recommended some stocks that will be winners this year. Add to the list APPLIED MATRIALS, Inc (AMAT) and MICRON TECHNOLOGY, Inc (MU).
Take Over Potential.
It is extremely likely that E*TRADE FINANCIALS CORPORATION ’ETFC’ will be taken over this year by one of the largest discount brokerage houses -perhaps Charles Schwab or Ameritrade It is very difficult for the largest brokerage houses to grow organically. Therefore in order to increase their accounts and cash potential from market money accounts, they need to acquire a smaller brokerage firms.
This confirms the recommendation of February 24, 2010 regarding the upgrade of computers and software in order to improve productivity and to stay current in difficult business conditions. In the past I recommended some stocks that will be winners this year. Add to the list APPLIED MATRIALS, Inc (AMAT) and MICRON TECHNOLOGY, Inc (MU).
Take Over Potential.
It is extremely likely that E*TRADE FINANCIALS CORPORATION ’ETFC’ will be taken over this year by one of the largest discount brokerage houses -perhaps Charles Schwab or Ameritrade It is very difficult for the largest brokerage houses to grow organically. Therefore in order to increase their accounts and cash potential from market money accounts, they need to acquire a smaller brokerage firms.
Friday, February 26, 2010
Solar energy technology uses the power of the sun in order to generate clean energy. As of today, many of the companies involved in this technology receives government subsidies in order to stay in business . As the technology will mature, the consumer costs will decrease. Because it will become affordable, there is a great potential for the future for this industry.
Two companies to consider are. ’JASO‘ (JA SOLAR HOLDINGS, CO, LTD). ’JASO‘ is buy below $5 a share. The other company is ’SOLF’ (SOLARFUN POWER DOLDINGS CO,LTD.) ’SOLF’ below $6 a share is a must for an investor to purchase.
Two companies to consider are. ’JASO‘ (JA SOLAR HOLDINGS, CO, LTD). ’JASO‘ is buy below $5 a share. The other company is ’SOLF’ (SOLARFUN POWER DOLDINGS CO,LTD.) ’SOLF’ below $6 a share is a must for an investor to purchase.
Thursday, February 25, 2010
At 8:30 AM, the U.S Department of Labor reported weekly jobless claims rose to 496,000. This number is significantly worse then Wall Street economists expected. Consequently, the stock market was down 150 points at the opening. The day before, the Dow closed up 100 points. Ironically, every day there is a story as to what causes the market to move in one direction or another. In retrospect, last year’s daily trader achieved better financial gains than the long term investor.
Going forward, how should an investor trade ? A investor should choose a few stocks for a long term position. On a day that the market is down severely, the trader should purchase those stocks. ETF’s are a great choice to make for investment purposes. Some choices include ‘QQQQ’ ‘XLF’ ‘XLK’ and ‘DIA’ . As the market rises, consider selling those positions. Until all potential world problems significantly decrease, this is an important strategy for an investor to follow. Resolution will take years.
‘BRCD’ was trading today as high as $5.75 a share. If you purchased the stock three days ago as recommended, an investor would have gained over 7% for three days. NOT BAD!
Going forward, how should an investor trade ? A investor should choose a few stocks for a long term position. On a day that the market is down severely, the trader should purchase those stocks. ETF’s are a great choice to make for investment purposes. Some choices include ‘QQQQ’ ‘XLF’ ‘XLK’ and ‘DIA’ . As the market rises, consider selling those positions. Until all potential world problems significantly decrease, this is an important strategy for an investor to follow. Resolution will take years.
‘BRCD’ was trading today as high as $5.75 a share. If you purchased the stock three days ago as recommended, an investor would have gained over 7% for three days. NOT BAD!
Wednesday, February 24, 2010
Today, GARTNER predicted that global chip revenues will increase 20% during the year 2010. GARTNER is a technology industry research firm monitoring the development of the technology industry worldwide.
Many companies within the IT and the technology industry are cash rich including giants such as Microsoft, Intel, Cisco Systems and many more. Technology did not participate in government bailout programs nor suffered any political backlash. This summer Microsoft will release their new version of OFFICE and WORKS. Together with their new operating system and Windows 7, their will be HUGH worldwide demand to upgrade PCs.
Microsoft (MSFT) is a must own for investors. Other companies such as Advanced Micro Devices (AMD),
Dell Computers (DELL) and Seagate Technology (SEG) will also do very well this year. For investors fearful of purchasing individual stocks, consider the tech options ETF (Exchange Traded Fund) XLK. XLK can be used as umbrella for the tech sector.
Many companies within the IT and the technology industry are cash rich including giants such as Microsoft, Intel, Cisco Systems and many more. Technology did not participate in government bailout programs nor suffered any political backlash. This summer Microsoft will release their new version of OFFICE and WORKS. Together with their new operating system and Windows 7, their will be HUGH worldwide demand to upgrade PCs.
Microsoft (MSFT) is a must own for investors. Other companies such as Advanced Micro Devices (AMD),
Dell Computers (DELL) and Seagate Technology (SEG) will also do very well this year. For investors fearful of purchasing individual stocks, consider the tech options ETF (Exchange Traded Fund) XLK. XLK can be used as umbrella for the tech sector.
Tuesday, February 23, 2010
On Wall Street they are two types of people who give advice about the Stock Market. The first group do not know anything and the second group do not know that they do not know.
Every person has his/her opinion of what to buy and what to sell. The only knowledge we have is how much premium people are willing to pay today in order to own this stock in the future.
A buyer of covered calls has the right to purchase the stock within a specific period of time at pre determined price. The buyer of the covered calls has to pay the seller the premium in cash immediately. The seller keeps the premium money and he has the obligation to deliver the stock at a fixed price to the buyer. The price of the covered calls is determined by what the market perceives are the chances of this stock to go up value.
Every person has his/her opinion of what to buy and what to sell. The only knowledge we have is how much premium people are willing to pay today in order to own this stock in the future.
A buyer of covered calls has the right to purchase the stock within a specific period of time at pre determined price. The buyer of the covered calls has to pay the seller the premium in cash immediately. The seller keeps the premium money and he has the obligation to deliver the stock at a fixed price to the buyer. The price of the covered calls is determined by what the market perceives are the chances of this stock to go up value.
“BRCD” Brocade Communications Systems Inc was trading @$6.69 a share at yesterday’s closing.
After hours, the company released earnings . BRCD had a profit of $0.11 a share. However, Wall Street considered their full year outlook disappointing.
.
BRCD will open trading Feb 23rd at a loss of about 20%, around $5.50 a share. At this point , a few brokerage houses downgraded the company. from a buy recommendation to a hold.
At this time the stock is down already 20%. Investors who bought the stock based on a buy recommendations were left holding the stock at $5.30 a share.
The brokerage houses who lowered the opinions included Jefferies, Stifel Nicolaus and RBC Capital Mkt.
In my humble opinion, this is the right time to buy BRCD at $5.30 share. Additionally, there is a good possibility that the company will be taken over by a larger one.
Let’s see how BRCD will be trading in 3 months from today.
INVESTMENT IDEA
Buy ISHARE of ‘DVY’ at $44.30 a share. DVY yields a dividend about 3.8%. Write covered calls against the stock for September 18th with a target price of $45 a share. If investor buys 1,000 shares it will cost him $44,300. The sale of the covered calls will yield $1,850. The net cost is $42,450. If the ETF will be taken away by September 18th,` the gain will be about $2,550. This appreciation of about 6% plus the 3.8% dividend ,will derive a 10% income for 7 months.
After hours, the company released earnings . BRCD had a profit of $0.11 a share. However, Wall Street considered their full year outlook disappointing.
.
BRCD will open trading Feb 23rd at a loss of about 20%, around $5.50 a share. At this point , a few brokerage houses downgraded the company. from a buy recommendation to a hold.
At this time the stock is down already 20%. Investors who bought the stock based on a buy recommendations were left holding the stock at $5.30 a share.
The brokerage houses who lowered the opinions included Jefferies, Stifel Nicolaus and RBC Capital Mkt.
In my humble opinion, this is the right time to buy BRCD at $5.30 share. Additionally, there is a good possibility that the company will be taken over by a larger one.
Let’s see how BRCD will be trading in 3 months from today.
INVESTMENT IDEA
Buy ISHARE of ‘DVY’ at $44.30 a share. DVY yields a dividend about 3.8%. Write covered calls against the stock for September 18th with a target price of $45 a share. If investor buys 1,000 shares it will cost him $44,300. The sale of the covered calls will yield $1,850. The net cost is $42,450. If the ETF will be taken away by September 18th,` the gain will be about $2,550. This appreciation of about 6% plus the 3.8% dividend ,will derive a 10% income for 7 months.
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