Symbol Last Volume Event
MAN 68.36 4,365,600 Record Price Break Out
SSP 48.54 2,002,500 Record Price Break Out
EVVV 18.37 423,086 Record Price Break Out
REGN 17.99 352,023 Record Price Break Out
CRA 14.53 480,600 Trending Up
WDR 26.20 693,100 Trending Up
ITMN 21.08 7,767,153 Trending Up
PSTI 24.16 296,724 Trending Up
FMD 69.91 490,800 OverSold
CRME 10.41 528,945 OverSold
RUTH 19.38 219,797 OverSold
AA 27.52 9,666,600 Analyst Upgrade
CSC 51.59 2,281,200 Analyst Upgrade
ITMN 21.08 7,767,153 Analyst Upgrade
JBLU 10.66 6,627,480 Analyst Upgrade
Numbers are today's 10/17/2006
Outstanding performers ripe for inclusion in your portfolio or watch list.
Great list of stock's setravis. I was holding two position's in RGEN but done sold them,,should've held them longer.
Quote from: wrangler on October 17, 2006, 08:21:59 PM
Great list of stock's setravis. I was holding two position's in RGEN but done sold them,,should've held them longer.
Thanks Wrangler... ;D RGEN is doing well,I think you could have held on longer ;)
I have been thinking on something new that
I could come up with to give to the boards. May be this is it... ???
Will update to a new list now and then.
May be I should include a link to the stocks charts. :-\
I am going to include a list for possible shorts also. :o
Sound's like a good plan,,you might try to list them by the sector their in to. Buying stock's in a sector that's hot is usually a sign that the stock might go up because of the hot stock's causing it.
Will be looking forward to look at some of you're shopping cart for possible buy's
Thanks Setravis, I already have a portfolio of the stocks you cover most frequently and this list is very much appreciated.
Thanks for all your inputs and incites, it really helps.
uc.
Quote from: usedcasting on October 18, 2006, 08:37:04 AM
Thanks Setravis, I already have a portfolio of the stocks you cover most frequently and this list is very much appreciated.
Thanks for all your inputs and incites, it really helps.
uc.
Thank you Usedcasting !
I trust this Portfolio has made you some profits, at least I hope so.... ;D
Return the Applaud.... ;)
Outstanding performers ripe for inclusion in your portfolio or watch list.
Numbers are as of the close Friday 01/12/2007
Symbol Last Change Volume Event
CCU 36.18 0.38 8,467,200 Record Price Break Out
TSM 11.25 0.34 33,353,100 Record Price Break Out
FUL 29.45 3.05 1,570,200 Record Price Break Out
SYNT 31.67 2.67 2,115,174 Record Price Break Out
MAS 30.28 0.22 3,632,500 Trending Up
VOD 29.27 0.27 3,329,500 Trending Up
BIIB 50.97 0.53 3,147,767 Trending Up
ISIS 12.37 0.42 2,202,037 Trending Up
C 54.38 0.21 18,429,600 OverSold
WM 45.04 0.11 3,440,500 OverSold
GBM 21.29 0.17 880,000 OverSold
GRRF 15.00 0.60 509,031 OverSold
BUD 50.34 0.66 4,997,500 Analyst Upgrade
VLO 50.57 1.91 14,360,000 Analyst Upgrade
INFY 58.06 1.84 3,612,815 Analyst Upgrade
INTU 30.29 0.62 5,379,104 Analyst Upgrade
SeekingAlpha
Green Mountain Coffee Roasters: The Best Investment I Ever Made
Thursday December 21, 6:03 am ET
Andy Kern submits: I came of age financially in the era of irrational exuberance. It was the mid-1990s, and losing stocks were relatively rare. Everything, it seemed, was a winning pick and unfortunately it was also around then that I began picking stocks myself. Netscape. Sun Microsystems (NASDAQ: SUNW - News). AOL. This was too easy, I started to think. Fortunately, I was somewhat grounded by a levelheaded stock broker who, although not often pushing the types of stocks I would choose today, kept the little money I had safe. I know this because many of the picks I made without his advice proved to be disasters. (The 900% gain I once had on Sun evaporated and I eventually sold at a 50% loss.)
One stock my broker convinced me to buy was in a company called Green Mountain Coffee Roasters (NASDAQ: GMCR - News). It was 1997 and, adjusted for splits, my purchase price was around $5.00. The stock is now around $50, for an annualized return of about 27%. For ten years. The ride has not been a roller coaster, but it has been consistent. For me, it has been fun watching this company grow and my holdings grow along with it, all while the telecoms and dot-coms on which everyone else was so fixated soared, crashed and then disappeared.
In retrospect, the Green Mountain purchase seems somewhat prescient. It is exactly the type of company I look for today, but that I bought long before I knew the first thing about Warren Buffett. I am quite fortunate to have stumbled upon it, not only for its returns but for a lesson in how good business leads to success.
CEO Bob Stiller is an entrepreneur. He founded the company, has led the company throughout its history and still owns 32% of it personally. He is truly the patriarch of the company, and it is his value system that seems to guide the company. This value system is rooted in the following principle, as described on the company's website:
"Green Mountain Coffee is dedicated to conducting business in a manner that balances economic goals with environmental and social impacts on the local and global communities."
The hardened capitalist might object to this do-gooder business model, but that doesn't bother the company. It is the socially responsible business practices, in fact, that attract customers to Green Mountain products anyhow. The drinkers of gourmet coffees, of course, are stereotypically young and liberal, and generally not too keen on "big corporations" like GMCR. As evidence of Green Mountain's surmounting of this problem, observe the wild success of the company's fair-trade coffees and Paul Newman's "Newman's Own" product line.
When I first learned about Green Mountain's humanitarianism, I was skeptical. It just seems too easy for a firm to claim it is doing good, all while padding its own pockets. In ten years of watching the company and its philanthropy, I am convinced that I have not simply been getting lip service. Moreover, it is reassuring to know that folks with enough integrity to put charitable giving on the same level as profits are running my money. I trust the leaders of this company as much as I can trust any stranger.
While sitting across the table from Warren Buffett at lunch last fall, I asked him about a problem of mine that has impeded my investing ever since I first tried to emulate his style.
"You say to invest in companies run by managers that you trust, but how can I, as an individual without direct access to them, determine if those managers are trustworthy?"
His response?
"Look at how they are compensated."
How true. Rare is the crooked executive that doesn't first find a way to pay himself handsomely. Key Lay, for example, is said to have taken nearly a quarter of a billion dollars from Enron before its fall. Bernie Ebbers was paid over $10 million in salary alone in 2000.
According to Green Mountain's latest proxy statement, Bob Stiller was paid no more than $400,000 in 2005. The company's use of executive stock options has also been somewhat limited - Stiller also currently has options valued around $2,000,000. The next highest paid executives top out around $200,000 and far fewer options. These aren't Buffett-esque compensation numbers, but they also aren't outrageous, particularly for an individual who currently owns about $115 million worth of company stock.
I have neglected the fundamentals of the company in my analysis as that is not the focus, but can assure you they are terrific. Earnings have grown at a 21% clip to keep up with the rising stock price and ROE has averaged 17%, all while operating with very little debt, although recently the company did obtain a large revolving credit facility as part of its acquisition of single-cup-brewing-system maker Keurig, Inc. Keurig, it should be pointed out, is a fantastic competitive advantage to the company.
It is easy to overlook the honor of management when a company is performing well, but one should be careful not to do so. If the recent past has taught us anything, it is that a company is much more than a ticker symbol and a price, or even a balance sheet and an income statement. Trusting management is crucial to an investment decision, not only as a means to avoid disaster, but because trustworthy companies are just better businesses.
Hot Sectors (5-day % change)
Consumer Cyclical 2.62%
Technology 2.07%
Services 1.87%
Hot Industries (5-day % change)
Footwear 6.50%
Recreational Activities 5.92%
Jewelry & Silverware 5.91%
Motion Pictures 5.62%
Photography 5.57%
A List of "Possible Short candidates".
Underperformers ready for a tumble. If you like to play the short side.
Here is a compilation of lists of stocks currently undergoing one of 34 technical or fundamental events likely to affect stock price.
These could be ripe for inclusion in your portfolio or watch list.
Symbol Last Change Volume Event
MMR 12.15 -0.35 677,100 Record Price Low
MWA.B 13.90 -0.04 639,800 Record Price Low
MDTL 14.73 0.10 262,891 Record Price Low
OVTI 11.61 -0.33 3,381,039 Record Price Low
EDU 33.08 -2.42 868,500 Percent Loser
SAY 23.65 -1.57 5,129,900 Percent Loser
CWTR 20.70 -2.91 24,940,049 Percent Loser
BXS 25.10 -0.77 332,200 Trending Down
SOV 24.05 -0.39 4,698,400 Trending Down
CTCM 21.32 -0.56 639,861 Trending Down
WRLD 43.15 -0.88 694,229 Trending Down
DRI 39.86 -0.22 1,291,700 OverBought
MOS 21.70 -0.24 1,591,400 OverBought
SBUX 35.54 -0.23 6,342,204 OverBought
VRTX 36.90 -0.42 1,658,320 OverBought
MO 87.23 -0.72 9,505,600 Analyst Downgrade
STX 25.98 -0.31 6,284,500 Analyst Downgrade
AAPL 88.50 -0.57 47,999,869 Analyst Downgrade
CWTR 20.70 -2.91 24,940,049 Analyst Downgrade
7 Surprising 1-Star Stocks
CytRx (Nasdaq: CYTR)
47.4% 30-Day Return
122.4% One-Year Return
Ionatron (Nasdaq: IOTN)
37.2% 30-Day Return
47.1% One-Year Return
Telik (Nasdaq: TELK)
34% 30-Day Return
65.6% One-Year Return
Vanda Pharmaceuticals (Nasdaq: VNDA)
26.7% 30-Day Return
N/A
Blockbuster (NYSE: BBI)
26.1% 30-Day Return
70.7% One-Year Return
Benihana (Nasdaq: BNHN)
24.1% 30-Day Return
47.1% One-Year Return
Globecomm Systems (Nasdaq: GCOM)
22.6% 30-Day Return
41.5% One-Year Return
Wall Street's Wish List
"Actions speak louder than words."
It's an old saying with more than a grain of truth to it, I'll warrant. So why is it that when the Wall Street firms merely "initiate coverage" or "upgrade" their ratings on a company, that gets all the news coverage? After all, those are only words, when what really matters is how the big boys act. Luckily for Wall Street watchers, finding out which professionals put their money where their corporate mouthpieces are has become relatively easy in this Internet Age of ours. All we have to do is read MSN Money's list of which companies the Street is most actively buying.
And so, let's meet today's list of contenders:
30-Day Price Increase
Currently Fetching
CAPS Rating
Savient Pharmaceuticals (Nasdaq: SVNT)
32.00% 30-Day Price Increase
$14.75 Currently Fetching
**** CAPS Rating
Chase (AMEX: CCF)
30% 30-Day Price Increase
$33.07 Currently Fetching
**** CAPS Rating
LJ International
(Nasdaq: JADE)
52% 30-Day Price Increase
$6.63 Currently Fetching
**** CAPS Rating
iCAD (Nasdaq: ICAD)
48% 30-Day Price Increase
$4.35 Currently Fetching
**** CAPS Rating
CECO Environmental (Nasdaq: CECE)
49% 30-Day Price Increase
$13.40 Currently Fetching
*** CAPS Rating
Network Equipment (NYSE: NWK)
46% 30-Day Price Increase
$8.52 Currently Fetching
** CAPS Rating
Orbcomm (Nasdaq: ORBC)
38% 30-Day Price Increase
$12.15 Currently Fetching
Not rated
Chickens and eggs
Another well-worn saw asks us: Which came first, the chicken or the egg? As you've noticed by now, one characteristic that each of these stocks has in common is that they've experienced dramatic price increases over the last 30 days. But are the Wall Streeters buying because the stocks have gone up -- playing the momentum game -- or is their heavy buying causing the prices to spike? It could even be a combination of the two, a vicious circle of some buyers pushing the price up and others hopping aboard the bandwagon and enjoying the ride.
Can this chicken fly?
Wall Street's Wise Men were buying erratically this week, with no particular sector holding a noticeable advantage in their affections. Interestingly -- and this doesn't happen nearly as often as you might think -- CAPS players by and large agreed with Wall Street's picks, and the majority of the seven stocks named above enjoy better-than-average sentiment
A List of "Possible Long candidates".
Outstanding performers ripe for inclusion in your portfolio or watch list.
Numbers are as of the close Friday 02/09/2007
Symbol Last Change Volume Event
GM 36.00 2.21 28,644,500 Record Price Break Out
GPM 25.02 0.88 14,548,400 Record Price Break Out
PRTS 11.90 10.56 3,146,778 Record Price Break Out
SFLY 15.35 1.61 3,257,642 Record Price Break Out
DCP 17.00 0.65 350,000 Trending Up
PWI 19.48 0.31 363,700 Trending Up
INFA 13.36 0.17 1,955,623 Trending Up
GAP 28.12 0.18 276,000 OverSold
PBH 11.32 0.33 519,600 OverSold
DTSI 23.69 0.07 106,025 OverSold
EMC 14.56 0.06 36,057,300 Analyst Upgrade
GM 36.00 2.21 28,644,500 Analyst Upgrade
DRIV 54.56 2.56 5,433,895 Analyst Upgrade
A List of "Possible Short candidates".
Underperformers ready for a tumble. If you like to play the short side.
Here is a compilation of lists of stocks currently undergoing one of 34 technical or fundamental events likely to affect stock price.
These could be ripe for inclusion in your portfolio or watch list.
Numbers are as of the close Friday 02/09/2007
Symbol Last Change Volume Event
AMD 14.90 -0.23 30,651,800 Record Price Low
MU 12.56 -0.34 23,583,300 Record Price Low
ISLN 19.85 -0.98 648,338 Record Price Low
MPEL 18.62 -0.23 3,436,414 Record Price Low
FIG 31.00 -4.00 26,752,600 Percent Loser
MA 103.59 -11.14 28,206,100 Percent Loser
ENER 29.65 -5.85 9,264,231 Percent Loser
AW 12.31 -0.17 6,007,200 Trending Down
STX 26.05 -0.27 3,778,800 Trending Down
AEOS 31.65 -0.90 3,527,636 Trending Down
SOHU 24.20 -1.08 1,115,989 Trending Down
BAC 52.99 -0.33 11,423,700 OverBought
JNS 21.29 -0.34 1,674,100 OverBought
HBAN 23.65 -0.10 1,722,917 OverBought
PLXS 17.57 -0.14 905,516 OverBought
NEW 18.21 -1.02 23,751,300 Analyst Downgrade
ZQK 14.04 -0.48 9,679,300 Analyst Downgrade
ENER 29.65 -5.85 9,264,231 Analyst Downgrade
PENN 44.48 -1.75 3,850,862 Analyst Downgrade
Feb 12 (Reuters) - The New York Times reported the following stories on its business pages on Monday. Reuters has not verified these stories and does not vouch for their accuracy.
* A new experimental chip from Intel Corp. (INTC,Trade) could house as many as 80 separate processing engines, or cores.
* In the battle for the market share in big-screen TVs, upstart Syntax-Brillian Corp. (BRLC,Trade) made a splash by selling its sets for almost half its regular price.
* Nasdaq Stock Market Inc. ((NDAQ.O)) faces the task of rebuilding its foreign expansion strategy after the emphatic rejection this weekend of its second unwelcome bid to acquire the London Stock Exchange ((LSE.L)).
* Since McClatchy Co. (MNI,Trade) bought Knight Ridder Inc. last March, the company has performed worse than most of its peers.
* Home Depot Inc. (HD,Trade) is introducing a campaign unusual for its frankly emotional appeal.
* Privately owned Zizzle LLC, which snagged a lucrative toy-licensing agreement early on in its history, has now established itself as a significant force in the $23 billion toy industry.
* As part of a proposed class-action settlement, Italian insurance company Assicurazoni Generali ((GASI.MI)) has agreed to give heirs of Holocaust victims another 18 months to uncover documentation on unpaid life insurance policies at long-sealed Nazi archives.
* Vodafone Group Plc ((VOD.L)), the British cellphone operator, won control of one of India's fastest-growing telecommunications companies, Hutchison Essar, with an offer that values the company at about $19 billion, the company said on Monday.
* India's Hindalco Industries Ltd. ((HALC.BO)), the aluminum producer, said on Sunday that it would buy a North American rival, Novelis Inc. ((NVL.TO)), for $3.6 billion, another sign that cross-border deal making is heating up in India.
* Some video-game veterans plan to announce Monday the formation of a new publisher, Gamecock Media Group, that they hope will act as the equivalent of an independent film company for small game developers.
* Universal Music Group is negotiating a settlement with Bolt.com, an online community that it sued over copyright infringement.
TOP NEWS GAINERS:
SYM CLOSE %GAIN VOLUME NEWS
BEIC $0.090 350.00 6,591,500 Increased Production of TISCO Expected to Increase Market Demand
FICC $4.980 91.54 16,973,200 Definitive Merger Agreement w/C-BASS and Radian Group
IWRS $1.010 77.19 21,600 To Acquire 25 Claims Barkerville-Quesnel Area of British Columbia
BSQR $4.520 29.14 2,990,600 Q4 EPS 7c vs (3c) EPS +333% Y/Y
BMJ $8.910 25.85 107,900 Q3 EPS $1.65 vs $1.5 EPS +10% Y/Y; Guidance Comments
HURC $42.750 21.59 1,058,300 Q1 EPS 84c vs 48c Beats 66c Est
STMP $16.980 18.74 2,621,300 First Albany Ups to Buy from Neutral; Sets Tgt @ $19; Analyst Notes
ESST $1.270 17.59 985,000 Announces the Sale of HD Assets and Technologies; Appoints New Board Member
CNTF $9.850 17.12 1,205,000 Brean Murray Ups to Buy from Hold; Sets Tgt @ $11; Analyst Notes
AVSR $1.800 14.65 94,500 Agrees to Patent Settlement Litigation w/Tandberg
IEAM $5.720 11.07 619,500 Q2 EPS (19c) vs (12c) EPS -58% Y/Y; Guidance Comments
LTXX $6.240 10.44 2,144,600 Friedman Ups to Outperform from Mkt Perform; Ups Tgt to $7 vs $4.5; Analyst Notes
BWLD $54.810 9.66 2,124,800 Q4 EPS 66c vs 38c Beats 53c Est
Why This Stock Is a Winner.......
If you could wave a magic wand and bestow just one characteristic on all of your investments, what would it be? (Besides the ability to print money, that is.)
I began thinking about this after reading Tom Gardner's "A 25-Bagger in Five Years," where he identified three things that give a company the chance to achieve outsized gains over the years -- like 25-baggers that turn $5,000 into $125,000. Of the three he mentions, one characteristic is most important to me: A high level of insider ownership.
Why it matters
But this makes sense, right? Think about any of your major personal investments:
1. You are a stockholder, with a good deal of your wealth riding on this company's performance.
2. Founders and managers with high levels of ownership also have their wealth riding on the company's performance.
3. They are doing everything they can to increase the long-term value of their stock.......which is also your stock.
Having a wonderful time ...
With their reputations, their livelihoods, and their careers on the line, you can be fairly sure that these managers and board members are motivated to do what's best for the company. It's like having someone on the inside, working for you. Every day.
What is the opposite of that?
Businesses in which management has very little tied up in company stock. Where actions may be motivated by things that actually harm the stock's performance, like office politics, power plays, or working more with an eye on the clock (is it 5:00 yet?) than on improving the business model. Or, even worse, management that rewards itself with high salaries and bonuses that have nothing to do with outstanding performance.
Now, don't be chagrined if you find that some of your larger holdings have a low percentage of insider ownership. For example, General Electric (NYSE: GE) is only 0.12% owned by insiders. Altria (NYSE: MO) sports 0.18% insider ownership. Their sheer size makes it awfully tough for anyone to own a significant share of the entire business.
But smaller companies are a much different story. In small-cap land, CEOs and managers with high levels of ownership are much more likely to rise above the mediocrity and work toward the common goal of great stock performance.
For instance ...
I ran a screen for some companies with high insider ownership, but I went a bit beyond that. The following businesses also have strong sales and earnings growth, high margins, and high returns on equity.......A potentially winning combination.
Company Insider Sales EPS Net ROE*
Ownership Growth* Growth* Margin
GRMN 43% 73% 65% 29.0% 37.9%
GES 62% 27% 105% 10.4% 34.2%
HERO 24% 113% 242% 34.6% 39.0%
OXPS 31% 45% 46% 38.4% 47.9%
AEIS 21% 26% 470% 21.5% 28.4%
Insider ownership, especially in smaller companies, is one positive indicator in the quest for tomorrow's multibaggers. There are many more, of course, but insider ownership is one of the core variables to screen for.
Outstanding performers ripe for inclusion in your portfolio or watch list........
Symbol Last Change Volume Event
BID 41.02 1.04 2,370,530 Record Price Break Out
SCS 20.18 0.19 1,869,500 Record Price Break Out
CHTT 57.95 4.60 1,569,343 Record Price Break Out
STKL 11.97 0.30 1,841,656 Record Price Break Out
OEH 58.59 3.55 3,236,000 Trending Up
RHT 24.15 0.32 1,944,400 Trending Up
SIGM 31.02 0.57 2,620,836 Trending Up
STKL 11.97 0.30 1,841,656 Trending Up
JEC 47.27 0.71 1,184,200 OverSold
EMC 13.53 0.27 26,244,304 Analyst Upgrade
PG 63.84 0.89 14,690,720 Analyst Upgrade
IMCL 33.88 1.25 3,965,299 Analyst Upgrade
ATW 56.18 0.89 400,300 Recommendation!
NFI 6.26 0.06 7,542,761 Favorite!
NUAN 16.20 0.37 9,557,891 Top Pick!
TSL 45.43 3.45 1,335,900 Top Pick!
Underperformers ready for a tumble,
If you like to play the short side.
Symbol Last Change Volume Event
AMD 13.35 -0.25 28,363,267 Record Price Low
WMG 16.54 -0.66 1,060,400 Record Price Low
PPCO 10.13 -0.14 1,619,266 Record Price Low
CLC 30.62 -2.87 2,249,000 Percent Loser
MOT 17.50 -1.24 190,691,229 Percent Loser
INTU 27.54 -2.46 11,383,320 Percent Loser
MSD 10.59 -0.11 122,500 Trending Down
IM 19.49 0.04 697,600 OverBought
LPL 17.87 -0.34 1,014,400 OverBought
BOBJ 37.16 -0.38 1,594,780 OverBought
AUY 14.59 -0.28 9,630,900 Analyst Downgrade
MOT 17.50 -1.24 190,691,229 Analyst Downgrade
LLTC 33.50 -0.22 4,845,778 Analyst Downgrade
MEOH 22.60 -0.28 658,036 Analyst Downgrade
QID 52.52 0.41 12,407,917 Top Short!
FCX 61.91 -0.66 16,459,649 Top Short!
BIDU 102.59 1.63 1,942,692 Favorite Short!
CFC 36.38 -0.57 8,519,692 Favorite Short!
Outstanding performers ripe for inclusion in your portfolio or watch list.
It's One-Stop shopping for investment ideas.......
Symbol Last Change Volume Event
EMC 15.22 0.46 74,086,838 Record Price Break Out/
Earnings Surprise
PEP 65.80 1.24 12,026,572 Record Price Break Out
HLTH 16.15 0.43 6,452,418 Record Price Break Out
NTRS 64.27 1.73 2,283,217 Record Price Break Out
KFT 32.90 0.14 18,776,147 Trending Up
ODP 36.18 0.07 2,479,100 Trending Up
QSFT 17.42 0.52 1,571,889 Trending Up
SSCC 11.98 0.00 4,788,307 Trending Up
ESLR 11.90 -0.17 14,189,673 Earnings Surprise
BSX 16.10 0.10 17,778,442 Analyst Upgrade
MCO 68.40 2.68 11,226,400 Analyst Upgrade
COST 55.59 1.20 5,958,491 Analyst Upgrade
CMI 75.19 0.23 1,124,700 OverSold
PHI 52.27 1.13 413,900 OverSold
SBNY 32.29 0.67 201,139 OverSold
Underperformers ready for a tumble,
If you like to play the Short Side........
Symbol Last Change Volume Event
MU 10.95 -0.12 28,842,042 Record Price Low
SDS 54.77 -0.23 1,837,302 Record Price Low
CLWR 17.75 -0.86 6,131,060 Record Price Low
FBTX 15.21 -0.28 1,236,819 Record Price Low
FIC 37.08 -3.47 6,121,830 Percent Loser
KEY 36.36 -2.22 7,516,580 Percent Loser
AMTD 15.31 -1.56 31,843,006 Percent Loser
PALM 17.10 0.01 2,945,207 Trending Down
DVR 15.12 -0.13 347,500 OverBought
KBR 21.42 -0.48 6,494,998 OverBought
KNOT 22.73 -0.28 489,337 OverBought
PMTC 19.09 -0.18 1,364,012 OverBought
TER 16.35 -0.17 7,209,798 Analyst Downgrade
VLO 65.30 -1.61 16,128,320 Analyst Downgrade
JASO 24.93 -3.26 5,596,992 Analyst Downgrade
NVLS 32.09 -1.15 6,295,285 Analyst Downgrade
Nice list Setravis,
Applaud.
I wished you had a list of long stocks under $5 though ;D.
Ares
Today's notes.......Take a look at you all ! ;) ;D :D
Another reverse splitter BJCT which is being moved up pre-earnings announcement........
CCEL.......Vegas buy **Alert** ;D Double Bottom
Look @ also.......
TAOL.OB
VGNI.OB
VRA
7 Stocks You Need to Know for Wednesday
Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Excel Maritime Carriers (NYSE:EXM) missed earnings after the close on Tuesday; analysts were looking for $0.64 EPS, but EXM only announced $0.61. EXM's PowerRating is 7.
Medtronic (NYSE:MDT) beat earnings expectations, announcing $0.66 EPS over an expected $0.62 EPS. MDT's PowerRating is 7.
Dick's Sporting Goods (NYSE:DKS) announces earnings before the bell on Wednesday; look for $0.37 EPS. DKS's PowerRating is 4.
Analysts are looking for Eaton Vance (NYSE:EV) to report $0.21 EPS before the market opens on Wednesday morning. EV's PowerRating is 4.
Gamestop (NYSE:GME) reports quarterly earnings tomorrow before the market opens, with analysts looking for $0.16 EPS. GME's PowerRating is 4.
Target (NYSE:TGT) should announce $0.71 EPS when the company reports earnings before the bell on Wednesday morning. TGT's PowerRating is 5.
Abercrombie & Fitch (NYSE:ANF) reports Wednesday after the bell, so watch for heightened price action and volatility ahead of the close. ANF's PowerRating is 5.
Top Stories.......
Grant Life Sciences Stock Soars on Patent
Award for Cervical Cancer and HPV Diagnostics
Shares of Grant Life Sciences (GLIF) soared in Monday's session after
receiving notice of a U.S. patent award on Tuesday, September 11, for
"Peptides from E7 Protein of Human Papilloma Viruses 16 and 18 for
detecting and/or Diagnosing Cervical and Other Human Papilloma Virus
Associated Cancers." Hun-Chi Lin, Ph.D., Grant's President and Chief
Scientist explained, "This patent would protect our investment to date
in the development of our serum-based test for cervical cancer and allows
us to move forward confidently in seeking an appropriate development-
and-commercialization partner." Cervical cancer is predominantly
caused by human papillomavirus or HPV. Today, approximately 60 million
pap tests are performed annually in the United States, and an additional
60 million Pap Tests are performed annually in the rest of the
world, mainly in Canada, Western Europe and Japan. It is estimated
that outside of the United States, Canada, Western Europe and Japan,
approximately 1.7 billion women do not undergo regular cervical cancer
testing. In many cases, this scarcity of testing is the result of a lack of
economic resources. Pap Tests are the most common method for diagnosing
cervical cancer, but they have some significant shortcomings
that include false positive results and failure to diagnose cervical cancer
or pre-cancerous conditions in approximately 30% to 60% of cases. Pap
Tests are also unable to detect the presence of adenocarcinoma, a more
virulent cancer that stems from cervical cells with glandular or secretory
properties. The Company's non-invasive technology is used to detect
specific cervical cancer-causing proteins. The test utilizes antibodies
against these cancer-causing proteins for detection and once fully validated,
would serve as a low-cost complementary screen to existing Pap
technology. The test kit will contain the required container and reagents,
with a color change that indicates the presence of "detector" antibodies
that recognize the cancer-causing proteins. According to a New York
Times article on January 16, 2007, "The Pap smear, an annual ritual for
many women and the mainstay of cervical cancer prevention for more
than half a century, may start to fade in importance. Newer tests that
detects human papillomavirus, or HPV, which causes cervical cancer,
is starting to play a bigger role in screening." Currently, there are no
other companies developing a protein-based screening test that detects
antibodies to cervical cancer, but Grant will compete with HPV Tests in
the market. Manufacturers of HPV Tests include Digene Corporation,
Ventana Medical Systems (VMSI), Roche Diagnostics, Abbott Laboratories
(ABT), and Bayer Corporation (BAY). Grant's patented technology
may prove valid in the future to develop rapid tests for other diseases
and cancers. The Company also has exclusive worldwide rights to diagnostic
devices for HIV-1, HIV-2 and dengue fever. At June 30, 2007,
the Company had an accumulated deficit of $16.7 million and cash on
hand of $301,000.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
EntreMed Presents Data from Ph II
Trial of MKC-1 in Metastatic Breast Cancer
EntreMed, Inc. (ENMD) presented interim results for its Phase 2 clinical
study of MKC-1 in patients with metastatic breast cancer (MBC). The
study is being conducted at multiple centers across the United States
to evaluate the safety and efficacy of MKC-1 in metastatic breast cancer
patients who have failed therapy with anthracyclines and taxanes.
Results from the first stage of the single-agent study demonstrate that
orally-administered MKC-1 is well-tolerated without evidence of cumulative
toxicity in anthracycline/taxane refractory metastatic breast cancer
patients. Of the 35 evaluable patients, one complete response, two partial
responses, and three stable diseases of greater than four months
were observed. This study is continuing to enroll up to 53 evaluable
patients to confirm safety and assess the extent of objective responses
in this patient population.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
RadiSys Signs a Definitive
Agreement with Intel Corporation
RadiSys Corporation (RSYS) and Intel Corporation announced that
they have signed a definitive agreement for Intel to sell certain assets
of its modular communications platforms business to RadiSys. The acquisition
will further RadiSys' global leadership position in ATCA platforms
and solutions for telecommunication equipment manufacturers
worldwide and is expected to close in September, subject to normal
closing conditions. The consideration for this transaction will consist of
a purchase price of $25 million plus $6.75 million of inventory and other
considerations. RadiSys expects the transaction to add at least $50 million
of ongoing revenue per year once integrated into RadiSys' operations.
The two companies will be working together during the coming
months to seamlessly transition the assets in order to continue to offer
high quality service and support to all customers. A significant number of
the employees associated with these product lines, including engineering,
product testing/validation, operations and marketing personnel are
expected to accept offers from RadiSys and transition with the product
lines. Products associated with the sale include ATCA compute and
packet processing blades, ATCA chassis, and Chassis Management
Hardware and Software Modules, AMC module as well as cPCI blades,
cPCI chassis, and other legacy systems products.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Accentia Announce Evidence that
Chronic Sinusitis Is Caused by Fungus
Accentia Biopharmaceuticals (ABPI) announces evidence that most,
if not all cases of chronic sinusitis (CS), are due to a fungal-induced
inflammation as originally proposed by investigators at the Mayo Clinic.
The data were collected as part of the Company's ongoing pivotal
Phase 3 clinical trial for its lead pharmaceutical product, SinuNase(TM),
an intranasal formulation of the antifungal amphotericin B 0.01% suspension.
In order to be enrolled in the clinical trial, patients must have
had well-documented CS based on a history of the requisite symptoms,
nasal endoscopy findings, and CT scan demonstrating characteristic
mucosal changes in the sinuses. At the time of enrollment, all patients
have had nasal mucin collected. Subsequently, these specimens are
being tested for eosinophilic major basic protein (eMBP). In the first fifty
specimens now analyzed, all have been positive for eMBP, a toxic protein
released by inflammatory cells in response to fungi. The Company
believes that these findings strongly support a fungal-induced inflammation
as the cause of CS. SinuTest(TM), the diagnostic used to measure
eMBP in the nasal mucin, is a patented technology developed at the
Mayo Foundation for Medical Education and Research. The technology
is exclusively licensed to IMMCO Diagnostics, which has an exclusive
commercialization agreement with Accentia Biopharmaceuticals. The
Company believes that SinuTest will be a useful adjunct for identification
of patients who are suspected of having CS and who may be candidates
for treatment with SinuNase, assuming FDA approval.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Tri-S Security Awarded $13M Contract for
South Carolina w/Dept of Homeland Security
Tri-S Security Corp. (TRIS) announced that its wholly-owned subsidiary,
Paragon Systems, Inc., has been awarded a new contract with the U.S.
Department of the Homeland Security, for the State of South Carolina,
for $13.0 million. Paragon will begin the contract October 1st, 2007 and
the contract will run for five years at an estimated $2.6 million per year.
Paragon will provide security for federal government facilities throughout
the state of South Carolina. Over 100 armed security guards will be
deployed throughout the state.
▲TOP NEWS GAINERS.......
SYMBOL CLOSE %GAIN VOLUME NEWS
GBNS $0.074 640.00 817,800 Acquisition of Energetics, Inc. in Fort Worth, Texas
RENG $0.180 100.00 396,500 Signs LOI with Minera Del Pacifico S.A. to Acquire Mining Assets
KMA $5.810 66.48 6,081,400 Agreement to Be Acquired by Humana $6.20 Pr/Sh Cash and $50 Debt
GTEM $0.140 47.37 1,040,500 Jonathan Leinwand Replaces Peter Khoury as CEO
XTLB $1.740 28.89 1,183,000 Begins Ph Iib Clinical Trial of Bicifadine
TEGR $0.200 17.65 159,000 $1M Sale of Unregistered Common Stock to Esterna, Ltd. in Cyprus
NPLA $1.750 15.89 141,700 Customer Agrees to Purchase 1M thiNcoder Rotary Switches
ABPI $2.760 10.84 515,800 Announce Evidence that Chronic Sinusitis Is Caused by Fungus
PEFF $0.440 10.00 266,800 Enters AgreementWith a Global Contract Manufacturer
ARIA $4.950 4.65 895,100 FDA SPA Agreement for Ph 3 Trial of Deforolimus in Metastatic Sarcomas
OPNT $10.900 4.11 198,500 Subsidiary Wins Naval Indefinite Delivery/Indefinite Quantity Contract
ANX $2.380 2.59 966,000 FDA Approves NDA Plan for ANX-514 Formulation of Docetaxel
RSYS $11.470 1.59 241,700 Sign Definite Agreement with Intel Corporation
TOP STORIES.......
Flamel Enters into Development
and License Agreement With Wyeth Pharm
Flamel Technologies (FLML) announced that it has entered into a development
and license agreement with Wyeth Pharmaceuticals, a division
of Wyeth (WYE). The agreement is for the development and licensing of
a marketed protein to be delivered using Flamel's Medusa technology.
Flamel will receive an upfront payment and potential development fees,
milestones and royalty payments, the terms of which are not disclosed.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
DivX Announces Licensing
Agreement With QUALCOMM
DivX, Inc. (DIVX) announced a licensing agreement allowing QUALCOMM
to include DivX(R) technology in a range of QUALCOMM videoenabled
chipsets. This agreement will potentially allow consumers to
access high-quality DivX video on a wide range of mobile devices powered
by QUALCOMM's chipsets.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Rochester Medical Announces
Positive Results from Clinical Study
Rochester Medical Corporation (ROCM) publicized results from a significant
clinical study which further demonstrates the effectiveness of
its proprietary Infection Control Technology. The study concluded nitrofurazone-
impregnated urinary catheters, which were manufactured by
ROCM, reduced the incidence of catheter-associated bacteriuria and
funguria in adult trauma patients, reducing the need to change or prescribe
new antimicrobial therapy.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Vision-Sciences Receives Clearance
From FDA to Market New Line of EndoScopes
Vision-Sciences (VSCI) announced that it has received 510(k) clearance
from the U.S. Food and Drug Administration to market the Company's
new line of advanced digital, video-based flexible endoscopes, which
come with an integrated "built-in" light source, eliminating the need for a
separate camera head, light cable and optical coupler.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Novavax Announce that Candidates
Emerge for Varicella Zoster Virus Vaccine
Novavax, Inc. (NVAX) announced that several candidates have
emerged from an ongoing discovery program to create a novel vaccine
for preventing disease associated with the Varicella Zoster Virus (VZV)
in older adults. These candidates have met certain significant scientific
criteria established by the Company and are now targeted for pre-clinical
development.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Radyne Business Unit
Awarded $2.1 Million in Contracts
Radyne Corporation (RADN) announced that its AeroAstro business
unit was awarded contracts for two significant types of communication
equipment. AeroAstro received a Phase II contract to continue development
of a reconfigurable Digital Extra-Vehicular Activity Radio (DEVAR)
for NASA. AeroAstro was also awarded a $1.2 million contract for advanced
communications technologies. Under the NASA contract, Aero-
Astro is developing a state-of-the-art digital software-defined radio with
data transceiver capabilities for voice, telemetry, and video.
▲TOP NEWS GAINERS.......
SYMBOL CLOSE %GAIN VOLUME NEWS
SOLN $1.450 113.24 167,000 Appoints Colburn to Interim President/CEO
SNRNE $0.200 33.33 128,900 Q1 EPS (1c) vs (2c) EPS +50% Y/Y
VSCI $2.290 23.78 3,873,900 Receives Clearance From FDA to Market New Line of EndoScopes
ERFW $1.060 19.10 447,400 Announces Debt Payoff to GCA
CATT $7.550 17.24 327,300 Sees Q4 Revenues in Range of $9.5M to $10.5M
GPSN $0.110 15.79 1,631,100 To Acquire Business & Assets of Uplink Corp.
WRLS $6.310 15.57 673,900 Raises Full Year, Q4 Teleguard Revenue Guidance
INHX $1.490 13.74 560,100 Enters Into Exclusive Worldwide License Agreement With University of GA
SGMA $11.060 13.55 72,900 Q1 EPS 21c vs 7c EPS +200% Y/Y
FLOW $8.970 8.99 1,201,400 Northland Sec Ups to Outperform from Market Perform; Sets Tgt @ $11
FLML $9.920 8.53 2,189,900 Enters into Development and License Agreement With Wyeth Pharm
NVAX $3.660 7.39 1,046,300 Candidates Emerge for Varicella Zoster Virus Vaccine
DIVX $14.840 7.23 902,800 Announces Licensing Agreement With QUALCOMM
TOP STORIES.......
(MECA)
Magna Entertainment Announces
Reorganization; Tries to Get on the Right Track
Horse racing usually grabs the attention of most Americans three times
a year for a total period of 6.5 minutes which is the combined time it
takes for the horses to run the three legs of the Triple Crown. For the
more equestrian enthused, the Breeders' Cup has begun to supplement
their hankering for racing. For the racing fanatics, multiple races,
leagues, and variations in the lengths of races have emerged to meet
the demands of fans and gamblers alike. The fact remains, though,
that the industry has become increasingly ludicrous with the amount of
money associated with the sport. Everything from stud fees to horses
winnings have exploded over the past few years. Also increasing is the
amount of betting on the races. Pari-mutuel betting has become a big
business especially in the state of New York. That state government is
currently debating what to do with its ailing thoroughbred horse racing
franchise and if to allow Gov. Spitzer's recommendations on its administration
and oversight. Much like the state of New York's horse racing
and gambling business, Magna Entertainment Corp (MECA) is attempting
to restructure it business to minimize losses and attempt to become
profitable once again. Following the report of their second quarter earnings
on August 9th, the Company noted some drastic changes would be
implemented to maximize shareholder value. The Company engaged
Greenbrook Capital Partners Inc. to conduct a strategic review and also
noted that they would cease racing operations at their Austrian racetrack,
Magna Racino, at the end of its 2007 meet, relinquish their racing
license for Michigan Downs, and terminate their racetrack development
project in Dixon, California. The Company announced during Thursday's
session the results of the strategic review. The plan called for adopting
a strategy which would eliminate the Company's debt by December of
2008 through the divesture of assets that were expected to generate
$600M-$700M. It was also noted that the Company would enter into
strategic transaction involving their racing, gaming, and technology operations
along with a possible equity issuance, likely in 2008. To help
fund the Company through its execution of the plan to become debt
free, the Company announced a total of $100M in financing consisting
of a $20M PIPE with Fair Enterprise Limited, and an $80M short term
bridge loan from a subsidiary of MI Developments Inc. (MIM), which
Frank Stronach serves as Chairman of the Board. Also of note was
the strategic review done by Greenbrook Capital Partners is owned by
MECA's ex-CEO and president, Tom Hodgson. In the press release announcing
Hodgson's departure in March of 2006, Stronach stated, "Tom
Hodgson, our current President and CEO, joined MEC in early 2005
to develop and implement the Company's recapitalization plan which
was announced in July 2005. Under his leadership, the recapitalization
plan has progressed well. The Board has decided that, going forward,
MEC should seek a CEO with in-depth knowledge and experience in
the horseracing and gaming industry who can lead the Company in fully
exploiting its opportunities in this sector." Reading between the lines
in a speculative nature, it seems that Hodgson was in the process of
recapitalizing and reorganizing the Company, was interrupted by the
Board and possibly more so by Stronach, who was then appointed interim
CEO, and now needs Hodgson's help again in reorganizing the
Company and has put up his own money to pay for his mistake. Again,
this is purely speculative and just one reader's take on the news but
could be right on the money considering Stronach's multiple changing
of CEO's in his companies. In any event, it seems some mistakes were
made and the overall horse racing/gambling market hasn't grown to the
extent to what the Company originally thought. If they are successful in
shedding their debt, it could save the Company some $60M in interest
expense which was how much the Company paid in fiscal year 2006,
but top line numbers will obviously take a hit following disposal of revenue
producing assets. The trade off seems necessary to become cash
flow positive. Either way, shares gained 20% on 800,000 shares traded,
and with that kind of following and movement, someone feels the Company
could be on the right track. Investors would be wise to watch.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
(ADLR)
Adolor Reports the FDA Needs More
Time to Review Clinical Hold on Entereg(R)
Shares of Adolor Corporation (ADLR) declined today after the FDA said
it needed more time to complete its review of the submissions for the
release of the clinical hold on Entereg(R)(alvimopan). As a result, the
clinical hold for all alvimopan Investigational New Drug Applications
(INDs) remains in effect. The FDA did not indicate a time frame within
which its review would be completed. Adolor and its collaboration partner,
GlaxoSmithKline PLC (GSK), are seeking approval of alvimopan,
which is used for managing gastrointestinal side effects associated with
opioid use. Opioid analgesics, such as morphine, produce pain relief
by blocking pain signals through stimulation of opioid receptors located
on the surface of the nerves that transmit these signals. Because
there are opioid receptors also present in the gastrointestinal (GI) tract,
when opioids bind to these receptors, they can disrupt normal GI function
that allows for the passage of food through the GI tract and, consequently,
can cause patients to experience significant discomfort and
pain. These GI side effects include constipation, bloating, nausea and
vomiting. Entereg is also currently in late stage development to manage
postoperative ileus, a negative gastrointestinal side effect following
bowel resection surgery. Preliminary Phase III long-term safety results
of alvimopan in patients taking opioids for chronic non-cancer pain and
experiencing opioid-bowel dysfunction (OBD), showed an increase in
myocardial infarctions as compared with patients treated with placebo.
The preliminary results also showed an imbalance in the incidence of
neoplasms (benign, malignant, skin cancers and unspecified, including
polyps) and an increase in the incidence of fractures in patients receiving
Entereg, compared to placebo. The clinical hold previously forced
the Company to disband its sales force of approximately 35 people and
implement other workforce reductions. The Company's deficit accumulated
through June 30, 2007, was approximately $401.3 million, and
Adolor expects to continue to incur substantial losses in future periods.
Cash, cash equivalents and short-term investments were $158.3 million.
Progenics Pharmaceuticals, Inc. (PGNX) is developing methylnaltrexone
for the treatment of opioid-induced constipation without interfering
with pain relief. Progenics and Wyeth (WYE) are conducting two global
phase 3 clinical trials and targeting an NDA submission in early 2008.
There are also products on the market for use in treating irritable bowel
syndrome which may be evaluated for utility in opioid induced bowel
dysfunction. It is important to note that Glaxo has the right to terminate
the collaboration agreement with Adolor for safety related or adverse
regulatory events. Adolor's current revenues are derived from its agreement
with Glaxo. Adolor also has a number of discovery and clinical
research programs focused on the identification of novel compounds for
the treatment of pain. The Company's pain research efforts are focused
on designing small molecules for the development of medications that
produce pain relief equal to or superior to traditional narcotics, while
reducing or eliminating typical narcotic side effects. Brean Murray upgraded
ADLR yesterday to hold from sell, citing valuation.
▲TOP NEWS GAINERS.......
SYMBOL CLOSE %GAIN VOLUME NEWS
PLKT $0.730 35.19 527,200 2M in Private Placement Secured
MECA $2.230 19.89 810,600 Announces Short-Term Bridge Loan with MI Developments
EPM $2.580 18.89 278,000 Proved Reserves Increase 270% During Fiscal 2007
KAD $0.960 15.66 220,500 Completes Sale of Durable Medical Equipment Locations for $7.7M
GLOB $1.380 8.66 191,100 Wyndgate Tech Division Licenses Safe Trace Software to Cardio Center
NNBR $10.400 5.58 105,000 BoD Authorizes New Share Repurchase Program
WATG $6.320 5.33 57,000 Withdraws 6.5M Share Offering Based on Outlook
WX $27.470 4.93 1,488,900 Merrill Lynch Starts @ Buy; Sets Tgt @ $33
SCLD $1.370 3.79 289,700 Q3 EPS (5c) vs (46c) EPS +89% Y/Y
SPNC $14.670 2.44 414,500 To Appeal Decision in Patent Litigation
NTRZ $1.420 1.43 902,400 Baby Cereal Business Expands with the Addition of Two New Customers
SPPI $4.520 1.12 147,000 FDA Accepts ISO-Vorin Amendment; Action Date Set at 1/11/08
NR $5.540 1.09 864,300 To Acquire SEM Construction Company in Colorado for $21.3M
TOP STORIES.......
UTStarcom Announces
Contract with India's Bharti Airtel
UTStarcom, Inc. (UTSI) announced a contract to supply its industryleading
RollingStream(TM) end-to-end IPTV solution to Bharti Airtel,
one of India's leading integrated telecommunications service providers
with more than 46 million customers. UTStarcom's RollingStream solution
will enable Bharti Airtel to offer a completely new service to its
customers consisting of live broadcast television, time-shifted TV and
video-on-demand (VoD) bundled with the operator's existing broadband
and voice services, which can all be consolidated into a single bill sent
to customers at the end of each month. Airtel expects to offer this new
service bundle to customers in Gurgaon and the National Capital Region
(NCR) by the end of the year. The service will also be rolled out in
a phased manner across eight additional regions in the country.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Composite Technology Subsidiary
Ships First 2 Megawatt Wind Turbine
Composite Technology Corporation (CPTC) announced that its subsidiary
DeWind Inc., has shipped the first 2 megawatt D8.2 wind turbine for
commercial applications from its operations in Germany. This turbine
order has begun its long journey to San Juan, Argentina, where it will be
installed at 4,000 meters elevation near the customer's Veladero mining
operations and will be the only multi-megawatt turbine operating at that
elevation.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Depomed To Cut One-Fourth of its
Staff Due To Phase III Study Results
Depomed, Inc. (DEPO), will be reducing 25% of its staff. CEO Carl Pelzel,
said, "This reduction was difficult because it affects so many of our
loyal, talented and hardworking employees. However, it was necessary
in order to conserve cash and align our workforce to our needs in light
of the disappointing results of our Phase 3 study in postherpetic neuralgia.
The reduction in force is in addition to other ongoing cost-cutting
initiatives."
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Enterra Energy Announces the
Suspension of Monthly Distribution Payments
The Board of Directors of Enterra Energy Corp., the administrator of
Enterra Energy Trust (ENT) today announced that it has suspended its
monthly distribution payment to unitholders until further notice, but for
a minimum period of six months, commencing with the distribution to
unitholders on October 15, 2007. The Trust currently is in compliance
with all financial covenants under its credit facilities.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Vasogen Reports Plans for Confirmatory
Study Supporting Heart Failure Treatment
Vasogen Inc. (VSGN) announced plans for a confirmatory study that
would support an application for regulatory approval in the United States
of its Celacade technology for the treatment of patients with NYHA Class
II heart failure. The planned trial design indicates that as few as 300 patients
could provide sufficient data to confirm the finding of the phase III
ACCLAIM trial which demonstrated a 39% reduction (p equals 0.0003)
in the risk of death or cardiovascular hospitalizations for the large prespecified
subgroup of 689 NYHA class II heart failure patients.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Medical Discoveries Acquires
Privately-held Global Clean Energy Holdings
Medical Discoveries (MLSC) announced it has acquired privately-held
Los Angeles-based Global Clean Energy Holdings LLC, a subsidiary
of Mobius Risk Group LLC. The purchase includes certain proprietary
rights, intellectual property and other rights relating to both the cultivation
and production of feedstock oil from the Jatropha plant, and the
commercialization of the oil for the production of biodiesel. Medical
Discoveries has terminated its prior drug development operations, appointed
new members of management and directors, and intends to
change its name and ticker symbol to reflect its new focus on the biodiesel
alternative energy market. The Company also intends to relist on
the Over-the-Counter Bulletin Board.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
▲TOP NEWS GAINERS.......
SYMBOL CLOSE %GAIN VOLUME NEWS
MLSC $0.070 159.26% 1,171,700 Acquires Privately-held Global Clean Energy Hldgs
UTLS $0.350 150.00% 66,000 Element Service to Complete Reverse Merger w/ Utilisource by Jan. 1
INSP $17.380 31.17% 7,307,000 Sale to Idearc Nets $225M and Shareholder Payout
UTSI $3.090 14.87% 5,406,300 Announce Contract with Bharti Airtel
GNTA $1.390 8.59% 1,931,600 Initiates Clinical Trial w/ Oral Drug to Treat Bone Disease
CPTC $1.850 6.94% 3,375,100 Subsidiary Ships First 2 Megawatt Wind Turbine
RFIL $6.530 5.51% 44,300 Q3 EPS 12c vs 11c EPS +9% Y/Y
WPCS $10.740 4.78% 66,900 Q1 EPS 16c vs 16c Meets 16c Est
ULBI $11.630 4.59% 140,000 Awarded $24M Contract from Raytheon
VSGN $2.330 4.49% 135,000 Plans for Confirmatory Study Supporting Heart Failure Treatment
EGY $4.390 4.28% 646,800 Board Authorizes Buyback of Up to $20M
CTDC $6.150 2.50% 2,750,600 Announce Proposed Acquisition of Shenzhen Soyin Electrical Appliance
EJ $19.970 2.46% 1,479,300 CIBC Starts @ Sector Outperform
I had posted this in the Premium Service, Main Portfolio, located in the thread..."About the general market slump yesterday" created by David Randolph.
I got to thinking, I should share this with all here @ 3SOF. ;)
So I placed a copy of that post here.......
<><><><><><><><><><><><><><><><><><><><><><>
How the herd got fleeced on Wall Street,
Investors hit by big "volatility stick"
First let me say that I've never yet seen a significant stock market pullback or correction (like the one we've just seen) that didn't end with an overblown financial scare story.
Near the bottom of the last major pullback in late February/early March the media was pounding the drums of a housing collapse and a sub-prime mortgage meltdown. We were told by the press that this crisis would soon spill over into all major sectors of the economy and that financial markets would melt, including a crash in the stock market.
Did the stock market crash? Did the economy falter and the unemployment rate skyrocket? Did the housing market collapse even worse than it already had? The answer to each of these questions of course is "No!" What happened instead is that the stock market as measured by the S&P 500 found a strong level of support and took off from there to make an all-time high, traveling almost 200 points in the process.
This is how the media operate (on fear) and they make their money by telling people what they want to hear, which is always in line with the latest crisis of the hour.
There are a couple of things I've learned about the mainstream financial press over the years as it relates to the stock market. One is that you can always count on the press to spread fear and panic after a major market decline. There is currently no shortage of negatives the media can direct our attention to in order to get us worried: the oil price, the "credit crunch," the sub-prime meltdown and housing recession, the weak dollar, etc.
Too many investors have been under the media's spell as these investors have been too scared to take advantage of the two great buying opportunities the market has presented them with this year. The first one was in March and the other in August. This really isn't at all surprising given that most mainstream investors are under the control of the media, psychologically speaking (see Lonny Kocina's book, Media Hypnosis, for a more in-depth discussion of this concept of media mind control). As Don Hays puts it, "The news is the camouflage that drives the herd crazy."
Volatility is also used as a weapon against mainstream investors. It can be used, for instance, to clear small investors out of the way so that big money traders can scoop up shares at bargain prices. Most small investors simply can't afford a prolonged exposure to market volatility and are often forced to sell out to the big money traders, who in turn are more than happy to relieve the small traders of their shares at cheap prices.
From a psychological standpoint, volatility has been shown to increase anxiety and paranoia in most investors. It makes them more likely to let go of a potentially profitable long position at the slightest hint of weakness. Ironically, this helps bolster the stock market's support since an increase in worry has been shown to strengthen the market's "Wall of Worry." It comes as no surprise then that the recent market bottom was been accompanied by a huge increase in bearish sentiment, worry and volatility. It's as if investors have been collectively hit by a big "volatility stick" and are afraid to go anywhere near the stock market.
To underscore the point I've been trying to make that the most important role of market volatility, let's discuss the correlations between volatility increases and insider buying of stocks during market panics. Other than the obvious benefits that increased volatility confers to insider traders in making short term capital gains, it can also be used as a weapon to scare away the small investors from participating in a market uptrend as we've looked at here. Additional proof of this is the comparison that can be made between the Gambill Oscillator, which measures insider buying, and the Volatility Index.
The Gambill Oscillator tracks corporate insider activity in the Russell 3000 stocks. Along with the VXO, the Gambill Oscillator is showing the highest level of insider buying since the March 2003 bear market low. Since 2002 when this indicator was first created, whenever the oscillator went above 25% (which it did in the latest correction), the stock market was up over 10% in the coming six months and up 22% over the next year. The Gambill Oscillator hit a high reading of 75% during the broad market decline.
Another point worth making is that since 1990, whenever the Volatility Index has been between 30 and 40, as it was during the recent correction, the stock market has been up by an average of nearly 11% over the next six months. Moreover, the market's gains over the following 12 months has been an average 16.2%. This compares with average "normal" market returns of 4.8% and 10.2%, respectively, over the 6-month and 12-month time frames.
Bolstering this bullish stock market outlook based on the insider sales data is a recent report by a respected financial newspaper. According to the Financial Times, total insider buying in the U.S. stock market reached $252 million in August, the highest level since 2003. This compares to a seasonal average of $186 million. At the same time, insider sales have dropped sharply from a four-year monthly average of $4 billion to $2.9 billion.
Volatility can indeed be used as a "big stick" to hit small investors with and send them running for cover. But this stick has two edges and the end result of the recent volatility spike will be positive for stocks.
TOP STORIES.......
(KMAG)
KMA Global Solutions Gaining Traction
with Electronic Article Surveillance Labels
Thursday's action was dominated with talk on Capitol Hill in testimony
delivered to the House Financial Services Committee by Fed Chairman
Bernanke and Treasury Secretary Paulson. Rhetoric revolved around
reform regarding government sponsored enterprises, Fannie Mae and
Freddie Mac. Much of the talk regarded a lifting of the portfolio cap and
also a lifting on the size of the loans that these GSE's could buy. In
the small cap space, one company has had a fairly busy month. KMA
Global Solutions International Inc. (KMAG) is a leading worldwide manufacturer
and supplier of Electronic Article Surveillance (EAS) labels
for the multimedia, retail apparel, health/beauty aids, soft goods, and
over-the-counter pharmaceutical industries. KMAG provides low cost
solutions for retail protection against inventory theft, offering customized
labels that use a variety of patented formats to meet unique packaging
needs. In late August, the Company announced a significant expansion
to an agreement initiated last year, through which the company
supplies custom sewn-in Electronic Article Surveillance (EAS) source
tagging solutions to the vendors of a leading International casual wear
apparel manufacturer and retailer. The program was piloted for stores in
Canada, however having experienced a significant amount of success
as a result of the program, this well-known brand has decided to expand
the program to other major markets in its enterprise. Originally slated to
protect some 10 million pieces of apparel, the expansion will see that
figure leap to around 50 million pieces per year. In early September, the
Company announced that it was continuing to add well known retailers
to their growing list of clients but couldn't divulge their names for
security reasons. A few days later, the Company announced the receipt
of $1,000,000 through the exercise of existing investor warrants. This
brings the total amount received by the company from its January 2007
financing to more than $2,000,000. The Company noted that it is utilizing
proceeds received from the exercise of the warrants to purchase additional
EAS manufacturing equipment, as well as equipment upgrades.
Additionally, KMAG is making improvements at its new Hong Kong facility
to increase production and distribution capacity. The Company then
reported their 10-Q for the quarter ended July 31st that displayed a year
over year sales decline, but shortly there after, they reported that booked
orders, sales revenues in August would be the highest month on record
in the Company's history. Noted as the cause was new customers coming
on stream in August and the seasonal demands of KMAG's U.S.
based retailers, sales in month of August were more than 200% higher
than sales in August 2006. The Company has announced this week of
a deal supplying one million of their DUALTag products to Sony's DADC
division, which produces digital products for its gaming systems and
an allowance of a patent application from the United States Patent and
Trademark Office (USPTO) regarding KMAG's non-provisional application
for a patent on its DUALTag(tm) product. The application has been
examined and is allowed for issuance as a U.S. patent. Pending payment
of associated fees to the USPTO, KMA anticipates that it will be
granted patent rights in the DUALTag. In any event, the Company has
been fairly active over the past months announcing a variety of news.
With any follow through to Thursday's 'paint the tape' gain of 14%, the
name could become one to follow. Investors would be wise to watch.
<><><><><><><><><><><><><><><><><><><><><><><><><><>
(KAL)
Callisto Completes Enrollment for Ph II
Trial of Atiprimod for Neuroendocrine Cancer
Callisto Pharmaceuticals, Inc. (KAL) hit a 52-week low in Thursday session
following the announcement of the completion of enrollment in its
Phase II clinical trial of Atiprimod to treat low to intermediate grade neuroendocrine
carcinoma (advanced carcinoid cancer). The primary objective
of the Phase II clinical trial is to evaluate efficacy of Atiprimod in
patients with low to intermediate grade neuroendocrine carcinoma who
have metastatic or unresectable cancer and progression of their disease
despite standard therapy, Novartis' (NVS) Sandostatin(R) LAR(R)
(octreotide). Efficacy evaluations include the measure of target lesions
and the quantization of symptom relief. Approximately 7,000 cases of
carcinoid cancer are diagnosed in the U.S. annually. Carcinoid tumors,
or carcinoids, originate in hormone-producing cells of the gastrointestinal
(GI) tract, the respiratory tract, the hepatobiliary (liver) system and
the reproductive glands. The most common site of origin is the GI tract,
with tumors often developing in the rectum, and other sections of the
small intestine. Carcinoid tumors that metastasize to the liver have a
poor prognosis. Traditionally, chemotherapy relieves symptoms in less
than 30% of cases of metastatic carcinoid tumors, usually for less than
1 year. Carcinoid tumors typically produce a condition called "carcinoid
syndrome," which is caused by the release of hormones by the tumors
into the blood stream. The symptoms vary depending on which hormones
are released by the tumors, but typically include diarrhea, facial
flushing, wheezing, abdominal pain and valvular heart disease. Atiprimod,
exclusively licensed from Genzyme Inc. (DNA), is also in a Phase
I/IIa human clinical trial for relapsed or refractory multiple myeloma.
Another anti-cancer drug of Callisto, L-Annamycin, is being developed
as a treatment for forms of relapsed or refractory acute leukemia, a
currently incurable blood cancer. L- Annamycin has a novel therapeutic
profile, including potential activity against multi-drug resistant tumors
and significantly reduced cardiotoxicity, or damage to the heart, compared
to currently available drug alternatives. Callisto also has a proprietary
drug Guanilib in preclinical development for gastro-intestinal
disorders such as chronic constipation and irritable bowel syndrome.
As of June 30, 2007, the Company had an accumulated deficit of $64.4
million and cash of $689,000. Callisto recently closed a private placement
of 1,124,550 shares of Series B Convertible Preferred Stock and
22,491,000 warrants to certain investors for aggregate gross proceeds
of approximately $11.2 million. The Warrants are immediately exercisable
at $0.70 per share and are exercisable at any time within three
years from the date of issuance.
NEWS MOVERS.......
▲TOP NEWS GAINERS
SYMBOL CLOSE %GAIN VOLUME NEWS
HTLJ $0.250 38.89% 72,400 Subsidiary Awarded Two Contracts
PTLD $0.060 20.00% 760,600 Announces Acquisition of Angel Construction, Re-structures Liabilities
SHOR $16.500 17.19% 596,900 JP Morgan Starts @ Overweight; Analyst Notes
CHIP $4.000 14.61% 296,900 Generate Initial Revenue from Operations Ahead of Expectations
URZ $3.800 14.46% 415,500 To Acquire 81% Stake of Mineral Properties in Powder River Basin
APOG $27.440 11.64% 1,631,400 Q2 Adj EPS 40c vs 26c EPS +54% Y/Y; Guidance Varies from Consensus
NTO $6.600 10.74% 7,233,200 Offer to Acquire Yamana Gold Amended
VIAC $4.830 10.53% 193,200 Positive Data re Umbilical Cord blood for Sickle Cell and Thalassemia
PKE $32.950 7.19% 248,700 Q2 Adj EPS 45c vs 42c Beats 39c Est
NTCT $9.500 4.17% 400,300 Announces Revised Guidance for Second Quarter of Fiscal 2008
SDGL $0.101 3.06% 2,171,800 Receives $11.72 Million Contract
GLDC $3.090 2.83% 57,000 Q1 EPS 7c vs 2c EPS +250% Y/Y
AMN $102.690 2.78% 137,500 Q3 Adj EPS $2.27 vs $1.91 EPS +19% Y/Y
▼TOP NEWS LOSERS.......
SYMBOL CLOSE %LOSS VOLUME NEWS
BBAO $0.070 -61.11% 9,196,900 Files for Reorganization Under Chap 11 to Maintain Ongoing Operations
BCRX $8.000 -32.09% 6,563,900 Caris & Co Cuts to Average from Above Average; Analyst Notes
SYMD $0.830 -20.95% 1,218,500 Receives FDA Panel Recommendation for REPEL Adhesion Barrier
COT $8.210 -19.19% 2,054,500 Market Conditions Cause Lower Earnings Expectations for 2007
ETLY $0.430 -17.31% 985,100 Agreement to Acquire Innergy Power Corp.
SFN $8.120 -14.44% 795,900 Goldman Sachs Cuts to Sell from Neutral
ACIW $23.510 -11.22% 3,078,100 Q3 Adj EPS 10c vs 31c Misses 28c Est; Guidance Below Consensus
MNRO $34.490 -8.00% 175,800 Annouces Business Update for Second Quarter 2008
CVV $4.850 -7.62% 195,300 Prices Public Offering; Switching Listing to Nasdaq
DDMX $24.480 -5.19% 55,400 Q4 EPS 38c vs 31c Beats 36c Est; Guidance Varies from Consensus
KSP $39.500 -5.16% 237,300 Announces Public Offering of 3 Million Common Units
PIR $6.130 -4.67% 1,024,200 Q2 EPS (49c) vs (84c) Misses (44c) Est
CDI $28.500 -2.83% 206,100 Announces Sale of Todays Staffing Subsidiary
TOP STORIES.......
Progen Opens Lower on Disappointing
PI-88 Trial for Non-Small Cell Lung Cancer
Shares of Australian-based Progen Pharmaceuticals, Ltd. (PGLA)
opened the session lower after announcing that its Phase 2 trial of PI-88
in combination with the chemotherapeutic agent docetaxel to patients
with advanced non small cell lung cancer did not meet its primary endpoint
of significantly improving the progression-free rate at six months
compared to docetaxel alone. The trial also did not meet its secondary
endpoints of improvement in time to progression, response rate, overall
survival and quality of life measures. The overall data from this trial suggests
that no further investigation of PI-88 in combination with docetaxel
in patients with non small cell lung cancer that have failed platinum
based first line therapies is warranted. Progen's weakness on Monday
may have been tempered somewhat by the FDA's decision to award
Fast Track status for PI-88 for the prevention of tumor recurrence following
curative liver resection in patients with hepatocellular carcinoma.
The most common causes of this cancer are related to chronic infection
with hepatitis B and C. No products have been approved by the FDA to
prolong the time a patient remains disease free following surgery. PI-88
recently received positive opinion from European Committee for Orphan
Medical Products recommending the granting of orphan medicinal product
designation for PI-88 for the treatment of hepatocellular carcinoma.
"We remain committed to the ongoing development of PI-88, especially
given the exciting Phase 2 data seen in the primary liver cancer trial,"
said Justus Homburg, Progen's Chief Executive Officer. PI-88 has also
shown evidence of benefit in patients with melanoma, multiple myeloma
and prostate cancers. Phase 2 PI-88 results from prostate and melanoma
trials are expected in the first half and second half of calendar
2008, respectively. PI-88 may be more active for tumors that are at an
earlier disease stage. It controls tumor growth by limiting new blood vessel
formulation. It also limits cancer spreading. The anti-angiogenesis
class compounds (e.g. Genentech's (DNA) Avastin(R) and Bayer (BAY)
and Onyx's (ONXX) Nexavar(R), and Pfizer's (PFE) Sutent(R)) are estimated
to generate up to $10B in sales by 2010. The Company's PI-166
has been in-licensed for clinical development for the treatment of endstage
and inopearable primary liver cancer and is currently undergoing
Phase Ib clinical development in Australia.
<><><><><><><><><><><><><><><><><><><><><><><><><><>
NexMed Files NDA w/FDA for
Topical Alprox-TD(R) in Erectile Dysfunction
NexMed, Inc. (NEXM) filed a New Drug Application (NDA) for its topically
applied Alprox-TD(R) (alprostadil) cream for the treatment of
erectile dysfunction with the FDA. Erectile dysfunction is a highly
prevalent medical disorder that is estimated to affect over 152 million
men worldwide. The Company is focused on patented topical pharmaceutical
products based on a transdermal enhancement drug delivery
technology known as NexACT(R), which may enable an active drug to
be better absorbed through the skin. NexACT(R) overcomes the skin's
natural barrier properties and enabling high concentrations of the active
drug to rapidly penetrate the desired site. The NexACT technology also
has wide-ranging applicability in the development of transdermal dosage
forms such as patches, creams, gels, ointments, lotions, solutions
and intranasal sprays. The Company expects to receive a $3M milestone
payment from Novartis in early 2008. NexMed is also developing
Femprox(R), which is an alprostadil-based cream product intended
for the treatment of female sexual arousal disorder. The Company has
completed one U.S. Phase 2 study and a 400-patient study in China.
The Company does not intend to conduct additional studies for this
product until it has secured a co-development partner. Alprox-TD has
been selling in China and in Hong Kong since October 2001 and April
2002, respectively, under the Befar(R) name. NexMed receives modest
royalty payments for sales. Sales of Befar have been limited because
China has a limited number of patients who can afford erectile dysfunction
treatments. More than $150 billion in brand-name drug products
will be coming off patent by 2015. This could create opportunities for the
conversion of these products from injectable or oral dosage forms into
topical forms of creams or patches. The NexACT technology could also
enhance established brands, with the goal of extending product patent
life while enhancing efficacy and patient compliance.
<><><><><><><><><><><><><><><><><><><><><><><><><><><>
Baird Says Investors Seem Confused
re Array BioPharma Agreement w/Celgene
Shares of Array BioPharma Inc. (ARRY) declined in Monday's session
despite announcing a worldwide strategic collaboration with Celgene
Corporation (CELG) for the discovery, development and commercialization
of novel therapeutics in cancer and inflammation. Array said that Celgene
will make an upfront payment of $40 million to Array, and, in return,
Array will grant Celgene an option to select drugs developed under the
collaboration that are directed to two of four mutually selected discovery
targets. Additionally, Array is entitled to receive, for each drug, potential
milestone payments of approximately $200 million, if certain discovery,
development and regulatory milestones are achieved and $300 million if
certain commercial milestones are achieved, as well as royalties on net
sales. According to Baird, "Investors seemed confused as to the scope
and nature of the agreement because the $40 million up-front deal does
not cover any of ARRY's current named or clinical programs. We see
this deal as a huge validation of ARRY's discovery platform, and would
be incremental buyers on this detail." The firm continues to see the
stock as "one of the industry's most appealing small-cap stories." Array
believes that there is significant synergy between cancer and inflammatory
disease research areas, and developing drugs in one of the areas
may lead to therapies in the other area. Inflammatory diseases include
a broad range of conditions, most of which are classified by the tissue or
organ where the inflammation occurs. These conditions include rheumatoid
arthritis, psoriasis, chronic obstructive pulmonary disease, fibrotic
disease, Crohn's disease, and congestive heart failure and arteriosclerosis,
among others. The Company has 10 programs in its development
pipeline, eight of which are wholly owned by the Company. The Company
has also out-licensed two cancer programs to Genentech, Inc. (DNA)
and three to AstraZeneca (AZN). Through collaborations, Array has also
invented drug candidates that are currently in clinical development including
InterMune, Inc.'s (ITMN) hepatitis C virus protease inhibitor and
Eli Lilly's (LLY) CHK-1 inhibitor. The Company's primary competitors in
the research and discovery, licensing, development and commercialization
of drug candidates, includes Arena Pharmaceuticals Inc. (ARNA);
Arqule (ARQL); Cytokinetics Inc. (CYTK); Exelixis Inc. (EXEL); Incyte
Corporation (INCY); Theravance, Inc. (THRX); and Vertex Pharmaceuticals
Inc. (VRTX). Injectable protein therapeutics currently on the market
for inflammatory disease include Amgen's (AMGN) and Wyeth's (WYE)
Enbrel(R); Amgen's Kineret(R); Centocor's Remicade(R); and Abbott's
(ABT) Humira(R). The worldwide market for targeted cancer drugs is
expected to grow to $47 billion by 2012, representing the cancer drug
market's fastest growing segment. New markets for replacement drugs
to treat painful inflammatory disorders, are likely to develop.
▲TOP NEWS GAINERS
SYMBOL CLOSE %GAIN VOLUME NEWS
DCNAQ $0.285 32.56% 1,167,100 Completes Sale of North American Coupled Products Business
ASTT $0.620 19.25% 154,700 Subsidiary Receives New Financing from Chinese Bank Worth $20M
EMED $0.670 17.54% 476,800 OTC Listing to be Approved, Seeks Litigation For Infringement of Product
SCEY $1.470 15.75% 2,521,000 Adds 8,695 Acres of Oil and Gas Properties in Kansas
CSIQ $8.690 14.64% 1,013,100 Signs Agreement with the Govt of Suzhou New District to Build Park
SPKL $0.770 11.59% 2,449,600 IPO Commences with 4,352,780 Shares; to Open 13 More Units in U.S.
ABAT $4.730 10.51% 665,600 Enters Contract with Wuxi Angell Autocycle Co. Worth $4.6M for Batteries
SVNT $14.950 6.10% 690,700 Files Universal Shelf Registration Statement w/ the SEC for $200M
KNSY $26.130 5.24% 160,500 Expands Stock Buyback Program; Allowed to Repurchase up to 25M Shrs
POWI $31.200 4.31% 318,800 Wins Patent Infringement Lawsuit Against Fairchild Semiconductor
FRG $10.600 3.41% 424,600 Acquires Shares of Newwest Gold
CTIC $3.830 2.41% 152,500 Begins Ph III Trial of XYOTAX (TM)
TMM $3.240 2.21% 651,600 Reaches Settlement with Kansas City Southern
Outstanding performers ripe for inclusion in your portfolio or watch list.
Currently undergoing technical or fundamental events likely to affect stock price.
Symbol Last Event
EMC 20.51 Record Price Break Out
NEM 48.25 Record Price Break Out
AAPL 148.27 Record Price Break Out
CYTC 45.16 Record Price Break Out
PWI 26.25 Trending Up
STX 25.91 Trending Up
FRPT 18.45 Trending Up
SOLF 12.21 Trending Up
NICE 35.75 OverSold
EMC 20.51 Analyst Upgrade
MOT 18.04 Analyst Upgrade
ARBA 10.85 Analyst Upgrade
Currently undergoing technical or fundamental events likely to affect stock price.
Underperformers ready for a tumble,
If you like to play the short side........
Symbol Last Event
AMR 20.77 Record Price Low
LEN 24.18 Record Price Low
ACXM 20.54 Record Price Low
PLCE 24.79 Record Price Low
AMR 20.77 Percent Loser
CFC 18.38 Percent Loser
ARRS 11.98 Percent Loser
ETW 18.01 Trending Down
MSZ 23.27 Trending Down
BARE 23.76 Trending Down
SWHC 18.13 Trending Down
CBG 28.58 OverBought
S 18.29 OverBought
CLNE 15.52 OverBought
UNTD 14.14 OverBought
AUY 12.17 Analyst Downgrade
RHT 19.00 Analyst Downgrade
CREE 30.76 Analyst Downgrade
FDRY 17.90 Analyst Downgrade
ENEI.OB
Receives Second Contract
in the Past Two Weeks
Wednesday's session saw the Dow in the green as news that
the auto giant GM and the UAW agreed to preliminary terms
effectively ending the strike for the time being. Many in the industry
believed the agreement between the two could cause
other automakers to cut health care costs as the pact with GM included plans
for an independent retiree health care trust. Following the news, shares gained
some 7%, which was also fueled by energy inventory reports showing large increases compared
to expectations.
In the small cap space, one company announced another contract in the vehicle arena though it
is in the alternative energy space.
Ener1, Inc. (ENEI) is an alternative energy technology company that is developing lithium ion
batteries for hybrid electric vehicles (HEV) at its 80.5% owned EnerDel subsidiary, commercial
fuel cell products through its EnerFuel subsidiary, and nanotechnology- based materials and
manufacturing processes for batteries and other applications at its NanoEner subsidiary.
The U.S. Department of Energy (DOE) announced on Wednesday that it had awarded Ener1's
EnerDel subsidiary a $2.5 million contract over two years for plug-in hybrid vehicle (PHEV) research.
The award is for the development of cells for 10 and 40 mile range PHEVs using nanophase
lithium titanate coupled with a high voltage Nickel-Manganese cathode material.
The deal was the second one announced in the past few weeks. On September 18th, the Company
announced that its EnerDel subsidiary was awarded a lithium-ion battery technology development
contract from the United States Advanced Battery Consortium (USABC), an organization
whose members are Chrysler LLC, Ford Motor Company and General Motors Corporation.
USABC awarded the contract in collaboration with the U.S. Department of Energy (DOE) to
develop lithium-ion battery technology for hybrid-electric vehicle applications. The 18-month contract,
valued at $6.5 million, is the second of a three-phase USABC program and requires a 50
percent cost share. EnerDel successfully completed Phase I in June.
"We are pleased to award this contract to EnerDel as part of USABC's battery technology research
and development program," said Don Walkowicz, executive director of USCAR in the
press release. "The program is essential to advancing the goals of the FreedomCAR and Fuel
Partnership, yielding both near and long-term benefits for hybrid-electric and hydrogen-fueled
transportation."
Subhash Dhar, President of Ener1, said in the release, "We are pleased that USABC has awarded
the Phase II contract based upon the success we have demonstrated in Phase I. The contract
award recognizes our efforts to date, and the funds will greatly help EnerDel to deliver potentially
breakthrough technology in finished product form." Ulrik Grape, Chief Executive Officer of EnerDel,
added, "We expect to deliver results that will meet and exceed the battery performance
requirements of USABC and the DOE and that will set a very high standard of performance in
the United States."
USABC is a consortium of the United States Council for Automotive Research (USCAR). Its mission
is to develop electrochemical energy storage technologies that support commercialization
of fuel cell, hybrid and electric vehicles. USABC has a cooperative agreement with the DOE for
research and development of battery technologies.
With the two contracts, the Company has effectively increased their revenue dramatically and
withstanding a positive result from their research and developing, become one investors would
be wise to watch.
TOP STORIES.......
(EBS)
Emergent BioSolutions Signs
Three Year HHS Contract Worth $448M
Emergent BioSolutions Inc. (EBS), announced that it has signed a three
year contract with the U.S. Department of Health and Human Services
(HHS), with a total value of up to $448 million. Components of the contract
include: $400 million firm fixed-price for delivery of 18.75 million
doses of BioThrax(R) (Anthrax Vaccine Adsorbed) for inclusion in the
strategic national stockpile (SNS); $34 million for receipt of regulatory
approval of 4-year expiry dating for BioThrax payable through a combination
of a lump-sum payment reflecting a price per dose increase
for certain doses delivered prior to approval and an increase in the per
dose price to be paid for doses delivered following approval; up to $11.5
million in milestone payments in connection with advancement towards
a post-exposure prophylaxis (PEP) indication for BioThrax; and, $2.2
million for logistics services and other related support.
____________________________________________________________
(GNLB)
Genelabs Technologies Announces
Commitments to Raise $23.7M in Capital
Genelabs Technologies, Inc. (GNLB) announced that it has obtained
commitments from several institutional investors to purchase approximately
12.9 million shares of its common stock and warrants to purchase
approximately 2.6 million shares of its common stock for gross
proceeds of approximately $23.7 million. The investors have agreed to
purchase the shares and warrants for $1.84 per unit (each unit consisting
of one share and a warrant to purchase 0.20 shares of common
stock). The exercise price of the warrants will be $2.08 per share. The
warrants will be exercisable at any time prior to the fifth anniversary of
the closing of the transaction. The closing of the offering is expected to
take place on October 1, 2007, subject to satisfaction of customary closing
conditions. Genelabs plans to use the proceeds from this financing
to support its ongoing hepatitis C virus (HCV) drug discovery programs
and for general corporate purposes. The proceeds will not be used to
fund a new phase III clinical trial of Prestara. Deutsche Bank Securities
Inc. acted as exclusive placement agent in the transaction.
____________________________________________________________
(NPSP)
NPS Pharmaceuticals Announces
License Agreement with Nycomed for GATTEX
NPS Pharmaceuticals, Inc. (NPSP) and Nycomed announced that they
have entered into a definitive agreement which licenses to Nycomed the
rights to develop and commercialize GATTEX(TM) (teduglutide) outside
the United States, Canada and Mexico for the treatment of gastrointestinal
disorders. NPS will retain the right to develop and commercialize
GATTEX in North America. Under the terms of the agreement, NPS
has the potential to earn up to $185 million plus royalties. As an upfront
payment, NPS will receive from Nycomed $35 million: a $10 million nonrefundable
commitment fee upon signing the agreement and $25 million
within two weeks following the announcement of topline results from
the recently completed Phase 3 study of GATTEX in patients with short
bowel syndrome (SBS), which is expected early in the fourth quarter of
2007. Nycomed has the right to end the collaboration within two weeks
of the announcement of these results and forego the $25 million payment.
______________________________________________________________
(KERX)
Keryx Enters Into Licensing Agreement
With Japan Tobacco and Torii Pharmaceutical
Keryx Biopharmaceuticals (KERX) announced that it entered into a licensing
agreement with Japan Tobacco Inc. and Torii Pharmaceutical
Co., Ltd.,JT's pharmaceutical business subsidiary, under which JT and
Torii will hold the exclusive rights for the development and commercialization
of its hyperphosphatemia drug in Japan. The drug is currently in
phase II clinical development in the United States under the name of
"Zerenex(TM). The licensing arrangement calls for JT and Torii to pay
to Keryx up to $100 million in up-front license fees and payments upon
the achievement of pre-specified milestones, including up to $20 million
in up- front payments and near-term milestones. In addition, upon commercialization,
JT and Torii will make royalty payments to Keryx on net
sales of the drug in Japan. JT and Torii will be responsible for the future
development and commercialization costs in Japan.
▲TOP NEWS GAINERS.......
SYMBOL CLOSE %GAIN VOLUME NEWS
CNIC $3.560 101.13% 8,165,900 SEC Closes Investigation; Recommends No Enforcement Action
NEP $1.000 33.33% 24,700 Raises $12.7 Million in New Financing
NPSP $6.000 18.81% 2,489,800 Announce Licensing Agreement with Nycomed for GATTEX
EBS $9.220 18.36% 1,465,100 Signs 3 Year HHS Contract Worth $448M
NAVI $8.940 16.25% 1,014,500 Q4 Adj EPS (4c) vs (11c) Meets (4c) Est; Guidance Above Consensus
WGAT $0.430 13.22% 299,300 Announces Additional Investment of $1 Million
XFML $8.780 11.42% 10,073,500 Yucaipa Signs Agreement to Buy Block of Shares; David Olson Joins BoD
DCU $1.950 11.42% 20,800 Q4 EPS 4c vs 2c EPS +100% Y/Y
TGA $4.999 8.67% 457,600 Closes Acquisition of 2 Privately Held Companies for $59M
LPHI $38.000 8.08% 341,800 Q2 EPS 46c vs 2c EPS +2,200% Y/Y
PLCE $25.800 7.54% 3,390,000 Buckingham Ups to Accumulate from Neutral; Sets Tgt @ $35
SMSC $38.740 7.25% 1,498,300 Q2 Adj EPS 50c vs 39c Beats 39c Est; Guidance In-Line with Consensus
GY $11.990 6.01% 870,100 Q3 Adj EPS 25c vs (26c) Beats 6c Est
▼TOP NEWS LOSERS.......
SYMBOL CLOSE %LOSS VOLUME NEWS
VG $0.960 -26.15% 12,396,300 Stanford Group Cuts to Sell from Hold; Cuts Tgt to $0.75 vs $2
VOXW $5.500 -21.54% 27,600 Q4 EPS 1c vs (63c) EPS +102% Y/Y
CGPI $9.350 -15.99% 2,681,900 Leerink Swann Cuts to Mkt Perform from Outperform
CMGI $1.390 -13.13% 29,409,900 Q4 EPS (1c) vs (1c) EPS 0% Y/Y; Guidance In-Line with Consensus
LTRX $0.990 -9.17% 188,900 President/CEO Nussbaum Resigns; CFO Sakai Named Interim
XTLB $1.670 -7.22% 40,100 Falls Under $10M Equity Minimum; To Contest Delisting from NASDAQ
TGB $5.100 -5.38% 2,304,400 Raymond James Cuts to Outperform from Strong Buy
ZRBA $6.850 -4.73% 29,800 Q4 Adj EPS 28c vs 30c EPS -7% Y/Y
URST $0.305 -4.69% 95,600 Enters Into Option and Joint Venture Agreement With Temex Corp
CCBEF $2.150 -3.15% 234,700 Closes $9.36 Million Financing
MTSN $8.770 -3.09% 776,000 Announces Updated Guidance for Third Quarter of 2007
IW $1.680 -2.33% 86,900 Closes $3M Private Placement Financing Agreement
CTIC $3.710 -1.07% 72,600 Announces Meeting Results; Expects FY07 Net Loss Consistent w/FY06
Market Awareness.......
• AeroGrow International Inc (AGWI)
Specializing in the research, development, manufacturing and marketing
of consumer products for the emerging 'Kitchen Garden' product category,
and the developer of the world's first Kitchen Garden Appliance, the Aero-
Garden™.
• Dental Patient Care America, Inc. (otcbb: DPAT)
Provides multiple services to independent dental practitioners and organizes
dentists through a combination of acquiring practice assets and providing
management services.
• Element 21 Golf Co (otcbb: EGLF)
Manufacture & markets advanced scandium golf equip characterized by
playability properties exceeding those of all other materials.
• Riverdale Oil & Gas Corp. (otc: RVDO)
Has positioned itself in the oil and gas industry as an acquirer of substantial
lease acreage in prolific oil and gas producing regions in the domestic
United States.
Real-
BULLET POINTS TO PONDER.......
SIGNS AGREEMENT: Xinhua Finance Media (XFML) announced that The Yucaipa Companies
("Yucaipa"), an investment firm with holdings in Asia, Europe and the Americas, has signed an
agreement to purchase a block of existing shares from certain shareholders who have come out
of IPO lockup. David Olson, a Yucaipa partner, has agreed to join the board of XFMedia as an
independent director in connection with the transaction.
______________________________________________________________
RECEIVES $15M GRANT: GeoVax Labs, Inc. (GOVX), an Atlanta based biotechnology company,
announced receipt of an estimated $15,000,000 Integrated Preclinical/Clinical AIDS Vaccine
Development [IPCAVD] Grant to support its HIV/AIDS vaccine program. This large Grant was
awarded by the National Institutes of Health-National Institute of Allergy & Infectious Disease
[NIH-NIAID], an agency of the U.S. Government. Funding commences October 2007.
______________________________________________________________
COMPLETES LAUNCH: Secured Financial Network (SFNL) announced that the Company has
completed the build-out and official launch of its proprietary Payment Gateway, which going
forward will be marketed to both online and offline merchants under the "The RedFin Network"
brand name.
____________________________________________________________
BEGINS DOSING FIRST PATIENTS IN PH IB TRIAL: InterMune, Inc. (ITMN) announced that
the company has begun dosing the first patients in their Phase 1b multiple ascending dose
(MAD) clinical trial evaluating ITMN-191 (also called R7227) in patients with chronic hepatitis
C. ITMN-191 is a hepatitis C virus (HCV) protease inhibitor in development by InterMune and
its partner, Roche. InterMune also reported additional information from its recently completed
Phase 1a clinical trial of ITMN-191.
_____________________________________________________________
GRANTED PATENT: RAE Systems Inc. (RAE) was granted United States Patent Number
7,258,773 B2 for the first Solid Polymer Electrolyte (SPE(TM)) Oxygen Sensor. The patent included
54 claims. This sensor technology will find applications in the industrial safety and first responder
markets worldwide. Compared to other type oxygen sensors, it is unique in that is uses
a solid polymer in combination with normally available air and moisture rather than the traditional
hazardous electrolyte and lead wool. Three to five million oxygen sensors are currently being
used in industrial applications. This new SPE O2 sensor is already available in RAE Systems'
QRAE II four-gas monitor .
_____________________________________________________________
RECEIVES $572K ORDER: ICOP Digital, Inc. (ICOP) announced that the Company has received
a purchase order totaling $572,000 from the Alaska State Troopers for its ongoing deployment
of ICOP Model 20/20(R)-W digital in-car video systems in its patrol fleet.
INITIATES PHASE 2 CLINICAL TRIAL: Nastech Pharmaceutical Company Inc. (NSTK) announced
the start of a Phase 2 clinical trial evaluating the Company's rapid-acting Insulin Nasal
Spray in approximately 20 patients with type 2 diabetes. The study is a randomized, crossover
study evaluating formulations of Insulin Nasal Spray as compared to NovoLog(R) insulin aspart
(rDNA origin), an approved, rapid-acting injectable insulin, on post-meal glycemic control.
Data from Nastech's earlier Phase 1 pharmacokinetic and safety studies demonstrated that the
Company's Insulin Nasal Spray achieved faster time to maximum plasma levels than NovoLog
injection and Exubera(R) (insulin human [rDNA origin]) Inhalation Powder in healthy subjects.
Additionally, the intranasal formulations tested were well-tolerated and did not show any clinically
significant hypoglycemia.
___________________________________________________________
COMPLETES PRIME NATURAL ACQUISITION: True North Energy Corporation (TNEN) is
pleased to announce that it has closed the acquisition of Prime Natural Resources Inc., interests
in the Devon Fee Gas Unit and the O'Leary Gas Unit No. 1 in Brazoria County, Texas. "We look
at this transaction as a first of several that will add proven producing assets, with low risk exploitation
potential, to the foundation part of our portfolio," said John Folnovic, True North Energy
President and CEO.
___________________________________________________________
SIGNS LOI TO ACQUIRE 50% STAKE: GlobeTel Communications Corp. (GTEM), parent company
of Sanswire Networks LLC (Sanswire), and TAO Technologies GmbH, Stuttgart, Germany
announced that the two companies have signed a letter of intent whereby GlobeTel will purchase
50% of TAO, and TAO will be renamed Sanswire-TAO GmbH. The company will be focused on
the design, development and production of unmanned aerial vehicles. It is expected that Sanswire-
TAO will be based chiefly in Stuttgart, and maintain a presence in both Berlin and California.
The acquisition of 50% of TAO follows the October 2005 development agreement between
Sanswire and TAO that resulted in the construction and testing of the Sanswire 2A. The letter of
intent calls for TAO and GlobeTel/Sanswire to share sales and marketing rights of various aerial
vehicles developed and currently owned by TAO. Additionally, upon closing of definitive agreements,
TAO will grant to Sanswire-TAO the respective patents and intellectual property rights
covering the products, including the AirChain segmented airship. Sanswire assets, including
the 2A Technology Demonstrator Stratellite(TM), are being shipped to TAO's German facility to
incorporate design changes based upon flight test data from the ship's test flights, and, specifically,
advances made by TAO since the Sanswire 2A was originally designed.
▲TOP NEWS GAINERS.......
SYMBOL CLOSE %GAIN VOLUME NEWS
TEXG $0.750 200.00% 76,300 Appoints Dean Elliott to President; Jeffrey Joyce to CEO; Both to the BoD
NNBP $0.165 39.83% 4,284,600 Operational Finance Initiative Includes 20% Buyback, Investor Pursuit
MWXI $8.000 32.23% 14,100 Names New Board of Directors to Company, To Bring Industry Experience
CHNG $7.400 28.70% 1,183,000 Receives Govt Approval to Pursue Diversified Natural Gas Project
TDON $0.790 27.42% 196,800 Appoints Dan DiLeo to the Board of Advisors
MIVT $0.430 16.22% 574,300 Research Collaboration w/Smith & Nephew
SOLUQ $0.490 13.95% 3,936,500 Consensual Plan of Reorganization; Resolution of All Litigation
JSDA $11.440 11.50% 2,268,200 Announces Release of Seattle Seahawks Themed Sodas
VSR $8.000 11.27% 318,600 Awarded $225 Million Contract with $25 Million Plus for Versar
PGIC $5.110 4.93% 220,600 Signs Definitive Agreement for Sale of Worldwide Table Game Division
RMCF $17.030 4.16% 20,100 Q2 EPS 20c vs 16c EPS +25% Y/Y
NEOG $22.950 3.94% 186,800 Q1 EPS 21c vs 17c Beats 19c Est
JAV $5.200 1.96% 282,000 Awarded Patent for Nasal Formulation of Ketamine for Pain
TOP STORIES.......
(CRGN)
Cash Rich Biopharm
CuraGen Refocuses on Oncology
The markets Friday seemed some what leery of the Fed's decision in
the next few weeks on their interest rates. Multiple Fed speakers have
the market on edge with comments suggesting "markets shouldn't bake
into the cake more cuts", "Reasons for Sept 18 rate cut haven't gone
away", "deeper market turmoil could hurt job stability", and "financial
fragility is still an issue", "moderation in inflation allowed a rate cut, but
inflation is still at the upper bounds of the comfort zone". The comments
were confusing and somewhat misleading. The Fed just cut their rate by
50 basis points, but still point to inflation. The market rallied following the
initial announcement but has stalled since. With the 50 basis point cut,
the Fed caught many shorts off guard, and have even alluded to catching
them off guard again with past and Friday's comments. Basically it
seems like they want the bears to sit on the sidelines while the housing
instability runs its course. With so much speculation and uncertainty
surrounding the market, it might be time to find the 'safe' places to put
money. Under the mattress is certainly one place that comes to mind. In
the ground is another. Mining stocks that have large reserves and are
awaiting regulatory approval have popped up on many radar screens.
Another place that has always been somewhat safe is cash rich biopharmaceuticals.
CuraGen Corporation (CRGN) is one of those names.
The Company is dedicated to improving the lives of patients by developing
novel pharmaceutical products that address unmet medical needs.
CuraGen was founded when the massive undertaking to sequence the
human genome was just beginning. The Company's strategy was based
on discovering novel ways to combat disease through an understanding
of how genes and their resulting proteins function within the human
genome. The Company is now transforming itself into a more oncologyfocused
biotechnology company. They have Velafermin for oral mucositis
in Phase II and Belinostat for T-cell lymphoma, ovarian cancer, and
Leukemia in Phase II. CRGN also has two other candidates in earlier
phases. But one of the most attractive aspects is their $155.2 million in
cash and marketable securities that reside on the balance sheet while
their market cap is $80 million. On the flip side, the Company does have
$110M worth of subordinate debentures, a $475 million accumulated
deficit, and new management that will have to climb the learning curve
and decelerate the cash burn. In any event, with a couple of Phase II
drugs in the pipeline and substantial cash, along with new management
to turn the corner in becoming an oncology focused biopharm, the Company
easily becomes one to follow. Investors would be wise to watch.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
(CVTX)
CV Therapeutics Seeks Expansion of
Product Labeling for Ranexa(R) in Angina
CV Therapeutics (CVTX) submitted a supplemental new drug application
to the FDA seeking an expansion to the approved product labeling
for Ranexa(R)(ranolazine extended-release tablets). Ranexa
is currently indicated for the treatment of chronic angina, in patients
who have not achieved an adequate response with other antianginal
drugs, and should be used in combination with amlodipine, beta-blockers
or nitrates. The Company is requesting a new indication that significantly
reduces cautionary language. The Company believes that
data from the MERLIN TIMI-36 study could support expansion of the
existing Ranexa indication to first line angina. Angina (chest pain) occurs
when the heart's muscular wall is not getting enough oxygen. By
relaxing the blood vessels, antiangina drugs reduce the heart's work
load and increase the amount of oxygen-rich blood that reaches the
heart. Commonly used antiangina drugs include isosorbide dinitrate
(Isordil, Sorbitrate, and other brands) and nitroglycerin (Nitro-Bid, Nitro-
Dur, Nitrolingual Spray, Nitrostat Tablets, Transderm-Nitro, and other
brands). The Company is focused on the discovery, development and
commercialization of new small molecule drugs for the treatment of cardiovascular
diseases. Small molecule therapeutics can frequently be
administered orally on an outpatient basis. In contrast, large molecule
therapeutics, such as proteins or monoclonal antibodies, can very rarely
be formulated to accommodate oral outpatient administration. All product
sales are currently derived from Ranexa to customers within the
United States. Net product sales of Ranexa for the quarter ended June
30, 2007 were $15.3 million which represented an increase of 28%,
compared to $12.0 million of net product sales revenue recorded in the
quarter ended March 31, 2007. Another product candidate under development
is regadenoson, a selective A2A-adenosine receptor agonist for
potential use as a pharmacologic stress agent in myocardial perfusion
imaging studies. The Company submitted a new drug application for
regadenoson to the FDA in May 2007. Regulatory action on the application
is expected in the first half of 2008. As of June 30, 2007, the Company
had cash, cash equivalents and marketable securities of $216.5
million and an accumulated deficit of $1.2 billion. The Company expects
its R&D expenses to decrease in the second half of 2007, compared to
the first half of 2007, due to the completion of the MERLIN TIMI-36 clinical
study and the second regadenoson Phase 3 study. Cantor Fitzgerald
has a Buy rating on CVTX after an encouraging increase in Ranexa
growth in August. The firm anticipates growth in prescriptions to continue
in September. Ranexa was the first new pharmaceutical approach
to treat angina in the United States in more than 20 years. An additional
indication for Renexa as a first line angina treatment, if approved, could
significantly impact revenues.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
(HINT)
Hill International Awarded 3-year, $13.6M
Contract to Build Landmark Tameer Towers
Hill International (HINT) has been awarded a 3-year contract by Tameer
Holdings Investment to provide project management services for
the landmark Tameer Towers for an estimated value of approximately
$13.6M. Anticipated construction costs will total $1.6B, located in the
Centre Business District of the Shams Abu Dhabi project on Reem Island.
Consisting of six towers, the development includes a state-of-theart
300-meter-high office tower, 4 residential towers with heights varying
from 30-50 floors, and a 7-star luxury hotel. Tameer Towers is intended
to become an icon of Abu Dhabi, similar to the Petronas Towers of Kuala
Lumpur, the Eiffel Tower of Paris, or the Burj Al Arab of Dubai. Construction
began in September 2007 and is expected to be completed by
November 2010.
Story Stocks.......
Updated: 01-Oct-07
Quotes at time of story, top stories today: (Acxiom Corp.) (Walgreens) (United Parcel Service) (Nokia) (Citigroup)
Oct 01 2007 09:34AM ******
Acxiom Corp.
A $2.25 billion buyout agreement between Acxiom Corp. (ACXM, 19.79), provider of information management systems, and private equity firms ValueAct Capital Partners LP and Silver Lake Parters has fallen apart amid a wave of economic uncertainty and credit market fears. Negotiations to break off the deal were initially reported in The Wall Street Journal, but various sources have since confirmed the deal has officially fallen through.
Just a few months ago private equity buyouts were booming, but tightening credit markets have made for dubious deal terms, leaving would-be buyers uncertain of their investment returns. Recently, Harman International (HAR, 86.52)and SLM Corp. (SLM, 49.67) suffered setbacks to their buyouts after suitors second guessed the transactions.
In the face of economic uncertainty, Acxiom posted first quarter adjusted earnings of $0.09 per share in July, $0.12 less than the consensus estimate. As of last week's market close, shares of ACXM were trading at $19.79, well below the initial cash offer of $27.10 offered in May.
Getting out of the deal will likely come with a substantial termination fee, estimated at between $30 million and $40 million in total, according to The Journal.
--Jeffrey Ham, Briefing.com
Oct 01 2007 09:27AM ******
Walgreens
Drugstore company Walgreens (WAG 47.24) has a commendable earnings history. It isn't an unblemished history, though. Occasionally, Walgreens has come up short of the consensus EPS estimate by a penny or two. Today it caught us, and everyone else, by surprise in reporting a fiscal fourth quarter profit of $0.40 per share that was seven cents below expectations and down 2.4% from last year.
Walgreens cited lower generic drug reimbursements, higher salary and store expenses, and higher advertising costs for the disappointment. The quarterly performance was all the more disappointing given that the company had a lower tax rate and fewer shares outstanding than the year-ago period.
WAG is indicated 10% lower in pre-market trading. The response is understandable. A miss this big begs the question, why didn't Walgreens issue a warning ahead of time? Doing so might have limited the fallout. Now, it simply breeds confusion on the issue of whether this is a one-off situation or the start of something more that will prompt a downward revision to long-term earnings growth projections.
To its credit, Walgreens had a record fiscal year as net earnings increased 16.6% to $2.04 billion while diluted EPS jumped 18% to $2.03. Total sales increased 13.4% to $53.8 billion and comparable-store sales surged 8.1%.
The market isn't going to spend much time looking back. Fortunately, demographic trends augur well for Walgreens. That consideration, and its strong financial profile, are key reasons why we believe the issue remains a suitable holding for the long-term investor.
Given the fourth quarter surprise, though, WAG will be in the market's penalty box for a while as the market waits on Walgreens to get its expense structure in line and to validate the view that the fourth quarter disappointment was indeed a one-off situation.
--Patrick J. O'Hare, Briefing.com
Oct 01 2007 09:22AM ******
United Parcel Service
United Parcel Service (UPS, 75.10) announced late Sunday that a tentative agreement has been made with the International Brotherhood of Teamsters. If ratified, the new agreement will increase wages annually while allocating additional funds to pension and benefit trust accounts over five years.
According to reports, the Teamsters wanted to establish a new agreement before the U.S. Pension Protection Act takes effect on January 1.
The UPS announcement follows last week's labor agreement between General Motors (GM, 36.70) and the United Auto Workers Union.
--Jeffrey Ham, Briefing.com
Oct 01 2007 09:15AM ******
Nokia
Nokia Corp. (NOK 37.93) agreed to acquire navigation software maker Navteq Corp. (NVT 77.97), in an $8.1 billion deal to expand its mobile services offerings and further strengthen its position in the fast-growing mobile navigation area.
Nokia shares, which are up about 87% in 2007, were indicated more than 4% lower in pre-market activity, while Navteq shares edged slightly higher following the announcement on Monday. Other navigation companies such as Garmin (GRMN 119.40) and Trimble Navigation (TRMB 39.21) also traded lower in sympathy.
Under the agreement, Nokia will pay $78 per Navteq share, or approximately $8.1 billion in total. The deal has already been approved by the board of directors of both companies, but is still subject to customary closing conditions. It is expected to close in the first quarter of 2008.
Nokia does not expect the deal to affect share buy-backs or its future cash flow distribution strategy in terms of dividends and buy-backs. The acquisition is expected to be dilutive to earnings in 2008 and 2009 on a reported basis. However, on a cash basis, it is expected to be only slightly dilutive next year and slightly accretive in 2009.
--Richard Jahnke, Briefing.com
Oct 01 2007 08:22AM ******
Citigroup
Citigroup (C 46.67) warned Monday its third quarter earnings would fall approximately 60% from a year ago, due to dislocations in the mortgage-backed securities and credit markets and deterioration in the consumer credit environment. Its shares traded lower on the news, losing more than 2% in pre-market activity.
Citigroup attributed the substantial decline to weak performance in fixed income credit market activities, write-downs in leveraged loan commitments, and increases in consumer credit costs.
Given the recent disruption in the credit markets, triggered by the meltdown in the sub-prime lending industry, the company expects to write-down about $1.4 billion on funded and unfunded highly leveraged finance commitments. It will record a loss of roughly $1.3 billion on the value of sub-prime mortgage-backed securities and a loss of about $600 million in fixed income credit trading due to significant market volatility.
Although market conditions remain difficult to predict, the company said it expects to return to a normal earnings environment in the fourth quarter.
--Richard Jahnke, Briefing.com
Tech Stocks.......
3 Com (COMS 4.94 +1.26) confirmed that it has has signed a definitive merger agreement to be acquired by affiliates of Bain Capital Partners, for approx $2.2 bln in cash. Under the terms of the agreement, shareholders will receive $5.30 in cash for each share of COMS common stock they hold. The Board of Directors of COMS has unanimously approved the merger agreement and has resolved to recommend that COM's shareholders adopt the agreement.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
RF Microdevices (RFMD 6.73 +0.25) announced plans to expand its compound semiconductor manufacturing capacity to support growth expectations in the Company's Cellular and Multi-Market product groups. RFMD anticipates increased demand for its industry-leading compound semiconductor process technologies as a result of favorable market trends in the Company's primary markets. RFMD is currently increasing its manufacturing levels of both GaAs HBT and GaAs pHEMT in order to satisfy immediate forecasted demand.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Boenning & Scattergood initiated Comtech (CMTL 53.49 -0.10) with a Market Outperform and $70 tgt as firm believes at least three factors make the Comtech story especially compelling: 1) Market leadership in all three of its operating segments: Telecommunications Transmissions, Mobile Data Com, and RF Amplifiers. 2) Value-add technology that provides customers with a compelling ROI and quick payback period. 3) Expanding global demand for bandwidth should serve as a catalyst for all of Comtech's products in future years.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
AmTech lowered their ests on Advanced Micro (AMD 13.20 -0.08) for Q3, FY07 and FY08. They believe the co's late Barcelona introduction and disappointing early performance are an early indication of a bad marriage of process technology and design that will be hard to fix before a move to 45nm is required. The firm expects AMD to deliver on at least a few of the potential cost savings initiatives, but predicting which initiatives is the problem they say. They are lowering their tgt to $17 from $19.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Collins Stewart initiated Riverbed (RVBD 40.39 -1.43) with a Market Perform as firm believes RVBD will continue to benefit from its technology lead, broader market acceptance and distribution. However, they find the shares priced for perfection given our expectations for increased competition, eventual low-end commoditization and a gradual, rather than explosive build for WAN client software, partly due to competitive ASPs. Firm would become more positive on a 10% pullback in the shares.
In Play.......
Oct 02 2007 08:04AM ******
IntercontinentalExchange reports ICE Futures Europe reached a record 598,651 contracts traded in September ...
Oct 02 2007 08:04AM ******
Sulphco clarifies yesterday's registration statement Co announced that on October 1, 2007, it filed a registration statement on Form S-3 to register up to 9,087,859 shares of its common stock that are being offered by selling security holders. The majority of the shares being registered relate to financing transactions entered into by the co and the selling security holders in March and April 2007 (which are more fully described in the registration statement). All of the shares of common stock being offered are being offered and sold by the selling security holders. Accordingly, although the co may receive proceeds from time to time from the exercise of warrants and options by the selling security holders, it will not receive any proceeds from the resale of the shares by the selling security holders. This registration statement replaces the registration statement to register these same shares that was initially filed on May 29, 2007 and later withdrawn on July 18, 2007.
Oct 02 2007 08:02AM ******
InfoLogix Acquires Healthcare Informatics Associates; expects the transaction to be accretive to '07 EPS ...
Oct 02 2007 08:01AM ******
Walgreen reports September comparable same store sales +4.7%
Oct 02 2007 08:01AM ******
American Science & Engineering Receives $3.4 Million Order from Middle East Customer for Gemini Parcel Systems ...
Oct 02 2007 08:00AM ******
Fundtech's IGTplus Financial Messaging Gateway Deployed by UBS for US Dollar and Swiss Franc Clearing ...
Oct 02 2007 07:53AM ******
On The Wires Science Applications International (SAI) announces it won a contract from the Naval Surface Warfare Center, Carderock Division, to provide Shipboard Instrumentation and Systems Calibration to support the Navy's engineering agent for Calibration by providing programmatic and engineering services. This cost-plus-fixed-fee, SEAPORT-e Task Order has a 19-month base period and three options of varying lengths, with a total value of $25 mln if all options are exercised... Nokia's (NOK) new partnerships with content brands brings a range of high-quality mobile videos into compatible Nokia Nseries device owners. The new partners announced are to join YouTube and Reuters in providing mobile video content for the Nokia Video Center.
Oct 02 2007 07:38AM ******
R.H. Donnelley announces proposed offering of additional $500 mln of senior notes
Oct 02 2007 07:37AM ******
Dean Foods lowers Q3, Y07 EPS guidance; co announces reduction in workforce Co sees Q3 EPS of approx $0.15, compared to previous guidance of $0.24-0.28, vs $0.26 consensus. Co sees Y07 EPS of approx $1.25, compared to previous guidance of "the low end" of $1.52-1.58 vs $1.46 consensus. CEO says, "Rapidly increasing and record high dairy commodity costs have created a very challenging operating environment and 2007 results have been well short of our expectations. The third quarter has been particularly challenging as dairy commodity costs have risen sharply, hitting all time highs. This is by far the most difficult operating environment in the history of the company, reinforcing the importance of the long-term strategic initiatives we have underway." Co also announced a reduction in workforce that is expected to affect approx 600-700 positions. Implementation will begin immediately with a voluntary reduction program followed by an involuntary reduction, if necessary. The program is expected to conclude by late October.
Oct 02 2007 07:31AM ******
Genvec receives second-year funding from NIAID for HIV vaccine contract Co announces that the National Institute of Allergy and Infectious Disease, part of the National Institutes of Health, has executed its first option period (year two) under a previously announced five-year, $52 mln contract with GenVec for the production of HIV vaccines. GenVec will receive up to $5.1 mln for the second year of activities. These funds will support the transfer and scale-up of the co's manufacturing and purification technologies to the NIAID Dale and Betty Bumpers Vaccine Research Center's Vaccine Pilot Plant in Frederick, Maryland, which produces materials for clinical research.
Oct 02 2007 07:31AM ******
TASER says human studies and analytical reports released analyzing cardiovascular and physiologic effects of TASER X26 Co announces that 10 new medical and scientific study posters, abstracts, and papers were published that document recent medical and scientific studies of TASER technology. All of these studies affirmed the general safety of the TASER electronic control device. Six of these studies were presented at the Fourth Mediterranean Emergency Medicine Congress.
Oct 02 2007 07:31AM ******
NASDAQ to acquire Boston Stock Exchange and key exchange assets Co announced it has entered into a definitive agreement to acquire the Boston Stock Exchange, including the holding company, the Boston Equities Exchange, the Boston Stock Exchange Clearing Corporation, and BOX Regulation. Along with these businesses, NASDAQ will acquire an SRO license for trading both equities and options. NASDAQ's acquisition of the B.S.E. Group is valued at approximately $61 mln. NASDAQ will not acquire an interest in the Boston Options Exchange from the B.S.E. However, a regulatory framework for the B.O.X. market will remain in place. NASDAQ, through BOXR, will operate the regulatory services provider to the B.O.X., which is an options trading facility of the B.S.E.. NASDAQ and B.O.X. are discussing a plan regarding the future regulatory structure for B.O.X. As previously noted, NASDAQ anticipates organically launching The NASDAQ Options Market, a price/time priority options market in December 2007, subject to SEC approval.
Oct 02 2007 07:31AM ******
Cameron board of directors approves a 2-for-1 stock split to be effected in the form of a stock dividend; renews stockholder rights plan
Oct 02 2007 07:28AM ******
NASDAQ halted, news pending
Oct 02 2007 07:22AM ******
Citigroup to acquire remaining stake in Nikko Cordial through share exchange Co announced that it has reached an agreement with Nikko Cordial to acquire all issued shares of Nikko Cordial that Citi does not already own in exchange for shares of Citigroup. Under the terms of the agreement, Nikko Cordial's minority shareholders will be entitled to receive C shares with an expected value at the time the exchange ratio is determined of Yen 1,700 per Nikko Cordial share.
Oct 02 2007 07:11AM ******
On The Wires CB&I (CBI) announces it has been selected to participate in a major expansion project at a refinery in Alabama. CBI's contract value is estimated in excess of $160 mln... Iron Mountain (IRM) announces its acquisition of R.M.S. Services, a $27 mln records management co. Terms of the deal were not disclosed... Websense (WBSN) announces that the High Court of Justice of England and Wales has sanctioned the Scheme of Arrangement to implement the recommended offer for SurfControl plc by Websense S.C. Operations, a wholly owned subsidiary of Websense.
Oct 02 2007 07:03AM ******
ICF International awarded DHS contract valued up to $15 mln for new agency program Co announces it won a new contract with the U.S. Department of Homeland Security to assist the agency in the implementation of the new Chemical Facility Anti-Terrorism Standards. The contract, valued up to $15 mln, has a base period of one year with four option years. The first year is funded at $2.8 mln.
Oct 02 2007 07:03AM ******
ISIS Pharm announces it earns $5 mln milestone payment from Ortho-McNeil for initiation of phase 1 study of ISIS 325568 CO announces it has earned $5 mln from Ortho-McNeil, a Johnson & Johnson co, for achieving the first development milestone of initializing the Phase 1 clinical trial of ISIS 325568. The collaboration between Isis and OMI, announced on September 13, 2007, includes the licensing of two second-generation antisense drugs, ISIS 325568 and ISIS 377131, both of which represent novel approaches for the treatment of metabolic disease. ISIS 325568 was designed to selectively inhibit the production of glucagon receptor and has demonstrated improved glucose control in animal models of Type 2 diabetes.
Oct 02 2007 07:02AM ******
Pro-Pharamceutical names Anthony Squeglia CFO Co announced Anthony Squeglia has been named Chief Financial Officer, and Steven Schubert Vice President, Finance on a consulting basis. Mr. Squeglia succeeds Carl Lueders who resigned to pursue other interests. From 2003 to present, Mr. Squeglia was Vice President of Investor Relations for the Co and was instrumental in the Co's listing on the Amex, as well as in its fund-raising activities.
Oct 02 2007 07:02AM ******
Columbia Labs says vaginal progesterone gel may improve infant outcomes and reduce the rate of preterm birth in women with a short cervix in mid-pregnancy Co annnounces that babies born to women with high-risk pregnancies treated with Prochieve 8% appear to be less likely to need intensive care than babies born to mothers treated with placebo. The data are published in the October issue of Ultrasound in Obstetrics & Gynecology.
Oct 02 2007 07:02AM ******
Biopure announces that a 1-for-5 reverse stock split became effective at 12:01 a.m. Oct 2, 2007
Oct 02 2007 07:01AM ******
PetroQuest Energy increases Q3 production guidance and updates operating activities Co announced that the co is increasing its third quarter production guidance to approximately 85.5-87.5 MMcfe per day from its previously issued guidance of 82-87 MMcfe per day. The co is currently evaluating its previously released full year 2007 production guidance and expects to provide an update in conjunction with its third quarter earnings release. Operations Update In the Arkoma Basin, the co has installed production tubing on its fifth operated horizontal Woodford Shale well and it has tested at rates as high as 4.2 MMcfe per day, up from its previously reported test rate of approximately 2.6 MMcfe per day. The well continues to unload its fracture fluids and the co turned the well to sales this past weekend.
Oct 02 2007 06:59AM ******
Pepsi Bottling beats by $0.10, reports revs in-line; guides FY07 EPS above consensus Reports Q3 (Aug) earnings of $0.99 per share, excluding non-recurring items, $0.10 better than the Reuters Estimates consensus of $0.89; revenues rose 7.8% year/year to $3.73 bln vs the $3.7 bln consensus. Co issues upside guidance for FY07, sees EPS of $2.15-2.18, excluding non-recurring items, compared to previous guidance of $2.02-2.07, vs. $2.07 consensus. CEO says, said, "In the third quarter, we delivered record sales and comparable operating income driven by outstanding performance in the U.S. and Canada and in Europe, led by Russia. Our strong top-line growth, gross profit per case improvement and disciplined cost management led to solid profit and cash flow increases."
Oct 02 2007 06:56AM ******
Commerce Bancorp: TD Bank Financial Group to acquire Commerce Bancorp TD Bank Financial Group (TD) and CBH announce that they have signed a definitive agreement for TD to acquire CBH in a 75% stock and 25% cash transaction valued at US$8.5 bln... Under the agreement, Commerce shareholders will receive 0.4142 shares of a TD common share and US$10.50 in cash in exchange for each common share of Commerce Bancorp Inc. The consideration was negotiated on the basis of US$42.00 per share value for Commerce Bank. The transaction value based on the October 1, 2007 closing price of TD common shares is $42.37... On a GAAP basis, the transaction is expected to be 28 cents dilutive in fiscal 2008 and 22 cents dilutive in 2009 to TD's earnings, and 10 cents dilutive in 2008 and flat in 2009 on an adjusted basis.
Oct 02 2007 06:18AM ******
S&P futures vs fair value: -1.3. Nasdaq futures vs fair value: -2.3.
Oct 02 2007 06:18AM ******
European Markets FTSE...6526.60...+20.40...+0.3%. DAX...7964.32...+41.90...+0.5%.
Oct 02 2007 06:18AM ******
Asian Markets Nikkei...17046.78...+200.82...+1.2%. Hang Seng...28199.75...+1057.28...+3.9%.
Oct 02 2007 06:07AM ******
On The Wires Document Sciences (DOCX) announces a partnership with Volante Technologies to automate the production and transmission of trade confirmations over a range of messaging systems... Evolving Systems (EVOL) announces that Malaysia's leading telecom carrier has selected the co's Tertio Service Activation solution.
Oct 02 2007 06:04AM ******
Vector Capital to acquire Printronix for $108 mln in cash Co announces that it has signed a definitive agreement to be acquired by Vector Capital. Under the terms of the agreement, Printronix stockholders will receive $16.00 in cash for each share of Printronix common stock, representing a total price of $108 mln.
Oct 02 2007 04:39AM ******
On The Wires EDS (EDS) announces the UK Ministry of Defence has approved an amendment to the Defence Information Infrastructure contract; amendment enables EDS to increase its previously stated estimates for revenue from the MoD DII contract to 2015 by $489 mln.
Oct 02 2007 03:35AM ******
Polycom announces anticipated results for Q3 Co expects to report net revenues for Q3, in the range of $235 mln to $239 mln, compared with net revenues of $173.2 mln in Q306. Additionally, the co expects to report EPS for Q3 in the range of $0.33 and $0.35 on a non-GAAP basis, compared with $0.27 per diluted share in Q306, and between $0.19 and $0.21 on a GAAP basis, compared with $0.19 per diluted share for the comparable period last year. Reuters Consensus Estimates calls for Q307 non-GAAP EPS of $0.35 and revenue of $244.45 mln.
Oct 02 2007 03:31AM ******
Ocean Power Technologies receives additional $1.9 mln funding for U.S. Navy project Co announces that it has received additional funding of $1.9 mln for its on-going contract with the U.S. Navy to install the co's PowerBuoy systems off the island of Oahu.
Oct 02 2007 01:09AM ******
On The Wires Sony (SNE) and Qimonda AG (QI) announce that they have signed an agreement to found the joint venture Qreatic Design; the scope of the joint venture is the design of high-performance, low power, embedded and customer specific DRAMs for consumer and graphic applications.
Oct 02 2007 01:08AM ******
EFJ's EFJohnson subsidiary receives additional $1 mln order from DoD Co announces that its EFJohnson subsidiary has received an order from the DoD following the original $76 mln order announced on December 11, 2006. With this order, the co has announced follow-on orders in excess of $8 mln during 2007. The latest $1 mln order calls for EFJohnson to provide the DoD with additional Project 25 compliant portable radios.
Oct 02 2007 01:04AM ******
EFJ says revenues and earnings will be lower than previous guidance Co issues downside guidance for Q3 (Sep), sees Q3 (Sep) revs of $32.0-33.5 mln vs. $43.02 mln Reuters Estimates consensus. Co issues downside guidance for FY07 (Dec), sees FY07 (Dec) revs of $160-170 mln vs. $186.96 mln consensus. Co also announces it expects '07 income of $1 mln and a loss of $2 mln, vs its initial projection of $7 mln to $10 mln. Co says that the decline of the market for its Transcrypt product has been "significant." They expect it will drop to less than $5 mln for FY07 from an initial projecton of $20 mln.
CHINA RELATED NAMES SEE INCREASED MOMENTUM:
China. In the past few trading
days, multiple names related to the country have seen incredible volumes and price spikes. The
increased speculative nature in these momentum names have message boards and chat rooms
clamoring the Olympics, the weak dollar, and the country's hot economy as reasons behind the
movement. So the next question is how long it can last? Well the Olympics in Beijing are less than
a year away with many noting the country isn't quite ready to host something of that magnitude.
The dollar could continue to weaken with additional Fed rate changes and a slowing economy.
Many have already noted that the Chinese economy has all the ingredients for a bubble that will
eventually burst, though none can give a time frame. What is known is that speculative buying
on too many names is taking place now causing a dangerous game of musical chairs. China
Natural Resources Inc. (CHNR) could be one of those names. Shares have risen spiked from
under $14 to highs over $50 in just 4 trading days. The Company makes and sells dry, natural
rubber and liquid latex. During Thursday's session the Company responded to requests that they
comment on the recent increases in the price and trading volume of the Company's common
shares. The Company noted that there had been no significant developments in their business
or operations that would explain the recent increases save for those that have previously been
publicly reported. Their latest news report was an interim earnings release for their fiscal second
quarter of 17c on $4.35 million in revenue. China Technology Development Group (CTDC)
focuses on developing ingredients for health food products and food supplements utilizing bioactive
components of bamboo to enter the fast growing Chinese nutraceutical market. Besides
that, it is also one of the leading network security solution providers in China. Shares of CTDC
have spiked from just below $7 to over $10.50 before closing in the $9 area on Thursday. Their
latest news release was the retention of investor relation counsel. China Architectural Engineering
(RCH) shares were around $5 4 days ago. Thursday's high saw them trading at over $27.
The Company recently became a public stock through a reverse merger. General Steel Holdings
Inc. (GSI) is engaged in the manufacturing of hot-rolled steel sheets used in the construction of
small agricultural and vehicles. Shares gained 62% on Thursday, rallying from below $10 to over
$15 on no relevant news. The equity began trading on the AMEX during Wednesday's session.
The list could go on and on.
AFTER HOURS - TOP STORY
AFP Imaging Announces Genexa Medical
to Become Exclusive Canadian Distributor
AFP Imaging Corporation (AFPC), and its DENT-X division, announced
that Genexa Medical Inc. has become the exclusive Canadian
distributor for AFP Imaging's NewTom 3-D Cone Beam Computed
Tomography Dental Scanners and other technologies. Genexa Medical
had served as one of several Canadian distributors for DENT-X.
AFP estimates Canadian sales in the next 12 months to reach $4M
and that Genexa will complete approximately 8-10 NewTom Canadian
sales within the next 90 days.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
AFTER HOURS HEADLINES.......
SYMBOL NEWS
VSTY Announces Transfer to Nasdaq Capital Market.
CLUB
CEO Giardina Resigns for Health Reasons; Alimanestianu
Succeeds.
VRUS Accesses up to $30 Million of Working Capital.
GDCRF
Grants Aggregate of 591,000 Stock Options; Subject to 4-Month
Hold.
KSW Awarded Two Downtown Projects.
SABA
Q1 Adj EPS 0c vs (4c) Beats (1c) Est; Guidance Below
Consensus.
VRYAF
Undisclosed Multi-Billion Partner Purchases Additional Software
License.
UFI Treasurer Ronald Smith Replaces William M. Lowe, Jr. as CFO.
PXIA
Agrees with Source Global to Complete $46,250,000 Acquisition
of Verticals.
DMAN Q2 Adj EPS (2c) vs 1c Meets (2c) Est.
NASI Announces Extension of Loan Agreement.
MEH Receives Request under Hart-Scott-Rodino Act.
DSCM Announces Major Agreement with Revolution Health.
The mini-uptrend pause, which started Tuesday, caused the market indices to test their support levels, and the INDU (DJIA) fell slightly below 14,000. Nevertheless, indications are that this near-term correction in the market will be short, shallow and mainly sideways.
There are some early signs that the indices may stop correcting downward, and start to ratchet up again, maybe sometime today. The trade-term indicators are mixed. Some are neutral and some are oversold. An upward rotation in the QQQQ started about 3PM yesterday, and INDU and INX formed bases at the same time. Whether and when intraday the three indices carry through with a rally, as early as today, may depend on catalytic economic news this morning. News with such potential is discussed below along with several stocks in the news.
With a near-term rally expected shortly, this is a good time to examine uptrending stocks.
Absent the recent strength in tech and energy shares.
Technology issues were battered by weakness in semiconductor shares as Morgan Stanley initiated coverage of Intel , Advanced Micro Devices and Nvidia, with underperform ratings due to an "aggressive price environment" and an inventory glut. SanDisk shares dropped 2.9% in concert with weakness in Micron Technology, off 7.7%, which printed its third straight quarterly loss on Wednesday. Energy shares came under pressure as the US Energy Department's weekly inventory report disclosed an unexpected gain of 1.2 million barrels in crude, and oil prices dropped 28 cents to below $80 per barrel. Exxon Mobil shares fell 1%, after reaching another 52-week high Tuesday. And ConocoPhillips shares fell 1.7% on company assertions that refining margins in the third quarter would widely miss second quarter levels. In case readers need any reminder of the Fed's import on equity market prices, a recap may be in order. Following Fed interest rate cuts on September 17, the ensuing rally in equity markets generated 4.8% gains in the DJIA, 6.4% in the Nasdaq, and 4.7% in the S&P 500. It was a dismal August nonfarm payroll and its attendant recession concerns that catalyzed Fed members to adopt its more dovish tone, addressing growth concerns at the expense of inflationary ones, and presenting the Street with unexpected 50 bp rate cuts. With the worst of the credit crunch believed behind us, tomorrow's jobs figure may once again prove pivotal to the Fed decision on October 30-31. Yesterday's data suggest nonfarm payrolls have recovered from August lows, growing in line with expectations of 115K, although perhaps indicating a step-up in unemployment to a 4.7% rate. ADP's healthy 58K adds, in line with expectations, do not include government hirings, which are expected to have rebounded in September; initial jobless claims held steady at 317K, up 16K, still signaling a strong jobs market; Challenger job cuts have declined 9.7% from August levels, and 8.1% from a year earlier. Besides the benign jobs data, yesterday's ISM service index further dampened expectations for an additional interest rate cut as it pointed to improved employment and rising inflation numbers, with the index printing at 54.8 in September, well beyond the 50 point expansion level. Both the Bank of England and European Central Bank held rates at current levels, as expected.
In the corporate corner, Pier 1 shares advanced 9.8% due to insider buying and improved turnaround prospects. Radian shares fell 9.5% on news that Deloitte and Touche had quit as company auditors; the firm recently reported one of its market value collateralized debt obligations of asset-backed securities was in trouble, although S&P has maintained the company's AA-rating. CSX shares fell 2.6% on a lower rating by Morgan Stanley. Bear Stearns (off 0.7%) announced 310 mortgage-business firings; the company will host its semi-annual investor meeting today. Credit Suisse added to its 150 job cuts with 170 more in its commercial mortgage business. Las Vegas Sands shares fell 11.8% as investors realized the rumored 100% revenue gains likely to come in at a still-healthy 55% from Macau growth; Wynn shares dropped 9.9%. However, over the past 52 weeks Las Vegas Sands' shares are up 90%, and Wynn's up 120%. Marriott International posted third quarter results of 31 cents adjusted, topping estimates by one cent.
(HSPO.OB)
CEO Comments on Emergence of
Enlyten(TM) SportStrips(TM)
Interest in HealthSport, Inc. (HSPO) soared in Friday's session,
following a profile the Company's new edible film electrolyte delivery
product, Enlyten(TM) SportStrips(TM). The products were
profiled on CNBC's special segment, "The Business of Innovation."
Scientists and other sports medicine experts at Duke University have recognized
the strip delivery technology as an important breakthrough in combating electrolyte imbalances in
athletes and decreasing exercise-induced cramping. With an innovative and unique delivery method
through the soft tissue of the inner cheek and gum. The Enlyten SportStrips are absorbed faster
and more efficiently by bypassing the digestive system. The electrolyte ingredients are absorbed
directly into the blood stream avoiding efficacy loss prone to gastric absorption.
Several pro and college sports teams have begun using electrolyte replenishment for their athletes
before, during, and after training and games. Athletes and teams such as the Buffalo Bills, Miami
Dolphins and Dallas Cowboys, as well as Michigan State, Notre Dame , Purdue, Texas A&M and
University of Utah are offering this new alternative to traditional hydration products.
Enlyten SportStrips have recently become available in Dick's Sporting Goods (DKS) stores in Ohio
and Kentucky. They will also be distributed by Sports Authority, a major nationwide full-line sporting
goods retailer. Sports Authority will become the first retail distribution partner to offer the Enlyten
SportStrips in all of its 415 stores across 45 states with availability to consumers scheduled for
mid-October.
HealthSport President and CEO, Dan Kelly, told CNBC on Friday, "The Goliath in this industry is
obviously Gatorade. Gatorade has recently been telling NFL teams not to use our strips. He added,
our product is effective in reducing IV procedures for athletes that are one step away from dehydration."
Pepsico's (PEP) Gatorade(R) is trying to counter the entry of the Enlyten(TM) SportStrips(TM) into
the market. According to an unnamed source for Gatorade, " Our product is optimally and superiorly
formulated to provide necessary nutrients. Dehydration prevention requires liquids and electrolytes
and there is little or no evidence to the effectiveness of this new product."
Market share for Coca-Cola's (KO) POWERADE, POWERADE OPTION and AQUARIUS energy
drinks could also be affected.
HealthSport owns two subsidiaries, Enlyten, Inc., to market and distribute HealthSport's products;
and InnoZen, a formulator, developer and manufacturer of edible film strips that deliver drug actives
through buccal (between the cheek and gum) absorption. The Company acquired Innozen in
May 2007. Innozen was the developer of Chloraseptic(R) Sore Throat Relief Strips in June 2003.
Innozen has a distribution and supply agreement with Schering-Plough (SGP) for film strip products
in the cough and cold market.
The Company also recently announced the planned online and retail launch of PediaStrips(TM), an
edible electrolyte strip developed to combat children's dehydration due to illness, on November 1.
PediaStrips replace lost electrolytes associated with symptoms of flu, diarrhea, vomiting or extreme
climates. PediaStrips will be available in Grape, Orange and Berry flavor, but they have no calories,
sugars or carbohydrates.
"We are excited to have a children's product that helps avoid dehydration," said Dan Kelly. "All
too often you hear of children being hospitalized for symptoms of dehydration after having the flu
and we feel it is so important for parents to have a product that offers relief from this problem. The
PediaStrips delivery system ensures that children will get the proper nutrients in a fast and efficient
manner without the added sugars and liquids they may not need, while avoiding the hassles of
measuring the right amount of liquids."
The Company also plans to seek the formulation and development of new thin film products and
other products using various additional oral delivery systems. InnoZen has five patents pending and
has developed numerous trade secrets which it incorporates in the development and manufacturing
process of edible film strips.
New China IPO.......
STV up big first day was a bad start but jumped yesterday and so far today.
• China Digital TV Gains 75 Pct in Debut
AP (Fri, Oct 5)
52wk Range: 28.75 - 39.99
Volume: 1,121,600
Avg Vol (3m): 14,579,300
Technicals
Record Price High
Most Actives
Percentage Gainer
Price Gainer
Fundamentals
Key Data:
Market Cap (M): $1,553.91
P/E Ratio: 97.06
PEG Ratio: N/A
Next Earnings: N/A
Last Analyst Rating: N/A
Great posts Set.
Quote from: stocky on October 09, 2007, 09:30:40 PM
Great posts Set.
Thanks Stocky !
Good to hear from you...Trade em well my friend ;)
AFTER HOURS - TOP STORY.......
(LTDI.PK)
Latitude Industries Signs Agreement
with Mercury Marine Worth Over $600,000
Latitude Industries Inc. (LTDI), announced that it has entered into an
agreement with Mercury Marine to distribute their outboard engines.
Mercury Marine, with $2.3 Billion a year in sales, offers a wide variety
of outboard engines from the Four Stroke Verado to the High Performance
Optimax SX race engines of up to 300 horsepower, plus many
additional high performance accessories.
(FREE) and (BHO)
Small Cap Dry Bulk Shippers
Gain Momentum
Wednesday's session saw the Dow lose 85 points as one of its
main components announced delays on their newest product.
Boeing announced a delay on their 787 Dreamliner airplane
causing shares to fall 2.73%. Also contributing to the slide was
disappointing earnings results with many analysts expecting the market to give
up 3-5% over the course of the season on slower earnings growth based on
early reporters.
Monsanto and Alcoa reported earnings lower than expected while Chevron announced that it
would miss their third quarter guidance expectations. Costco Wholesale Corp was one of the
Company's who surprised with a profit rise of 4.7%, topping analyst forecasts.
In the small cap space, a couple of names saw an increase in buying and volume attracting many
momentum players. FreeSeas, Inc. (FREE) shares, spiked during the afternoon half of the session,
reaching a high of $10.40 on no news. The stock closed at $10.24, up 30%, on 1.62 million
shares traded. The Company is a commercial shipping company that operates Handysize and
Handymax vessels in the dry bulk markets. FreeSeas' vessels carry a variety of dry bulk commodities,
including coal, iron ore, and grains, or major bulks, as well as bauxite, phosphate, fertilizers
and steel products, or minor bulks.
The Company recently released earnings which showed year over year growth, though shares
lost over 11% over the following days after the announcement. Earnings displayed that revenue
grew by 19.3% over the same quarter of 2006 and by 44.2% for the first half of 2007 over first
half of 2006.
Net income for the second quarter improved to $1.71 million, compared to a loss of $0.6 million in
the same quarter of 2006 or $0.27 per share, based on 6,290,100 basic shares outstanding, compared
to $0.10 loss per share in same quarter 2006. Net income for the first half of 2007 reached
$2.62 million compared to a loss of $2.26 million in the first half of 2006, or $0.42 per share as of
June 30, 2007 as compared to $0.36 loss per share for the same period in 2006.
On September 27th, the Company announced that the M/V Free Jupiter would undergo an unscheduled
dry-docking to complete repairs following a grounding incident on September 21, 2007
off the coast of the Philippines. The dry-docking was expected to take place after the refloating
of the vessel and completion of the current trip charter. The Company expected that the vessel's
repairs and related expenses would be covered by the vessel's insurance.
The Company also announced that the M/V Free Destiny had been chartered at a rate of $28,000
per day on a spot charter of approximately 70 days. The addition of $1.96 million in revenue could
be the reason for the shares to have received the added attention.
Another name in the space also saw increased volume as also being a dry bulk carrier. B&H Carrier
Limited (BHO) currently owns and operates three IMO Type 2&3 Product / Chemical Carriers,
three Medium Range Product Tankers, two Panamax Product Tankers and seven Combination
Carriers. The seven Combination Carriers include one recently acquired vessel which the Company
holds a 50% interest.
On Wednesday, shares gained 12% on 268 thousand shares traded. Along with FREE, BHO
received the added addition on no news. With earnings from both of these names just around the
corner, investors would be wise to watch.
Press Release Source: Endocare, Inc.
Endocare Stock to Commence Trading on NASDAQ
Tuesday October 9, 6:00 am ET
IRVINE, Calif., Oct. 9 /PRNewswire-FirstCall/ -- Endocare, Inc. (OTC Bulletin Board: ECRE - News), an innovative medical device company focused on the development of minimally invasive technologies for tissue and tumor ablation, announced today that it has been approved for listing on NASDAQ. The Company's common stock will commence trading on The NASDAQ Capital Market under the symbol "ENDO" beginning tomorrow, October 10, 2007.
Craig T. Davenport, Endocare's Chief Executive Officer stated, "Our listing on NASDAQ is a significant milestone for Endocare, marking the completion of a long turnaround process. We believe that the NASDAQ listing should help us attract a broader audience of potential investors, resulting in a more liquid security and enhanced stockholder value over time."
About Endocare
Endocare, Inc. -- http://www.endocare.com -- is an innovative medical device company providing minimally invasive technologies for tissue and tumor ablation. Endocare has initially concentrated on developing technologies for the treatment of prostate cancer and believes that its proprietary technologies have broad applications across a number of markets, including the ablation of tumors in the kidney, lung and liver and palliative intervention (treatment of pain associated with metastases).
Statements contained in this release that are not historical facts are forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements relating to the Company's listing on The NASDAQ Capital Market. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those discussed in "Risk Factors" in the Company's Forms 10-K, Forms 10-Q and other filings with the U.S. Securities and Exchange Commission. Such risk factors include, but are not limited to, uncertainty regarding the effects of the listing of the Company's common stock on The NASDAQ Capital Market. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. The Company undertakes no obligation to revise, or update publicly, any forward-looking statements for any reason.
Investor Contact: Media Contact: For Additional Information:
Matt Clawson Len Hall Craig T. Davenport, CEO
Allen & Caron, Inc. Allen & Caron, Inc. Michael R. Rodriguez, CFO
(949) 474-4300 (949) 474-4300 Endocare, Inc.
[email protected] [email protected] (949) 450-5400
--------------------------------------------------------------------------------
Source: Endocare, Inc.
(PGNX)
Progenics To Begin Ph II Trial of
Oral Methylnaltrexone
Progenics Pharmaceuticals, Inc. (PGNX) got a modest boost at
Monday's open after announcing plans with Wyeth (WYE) to begin
two Phase 2 clinical trials to evaluate daily dosing of oral methylnaltrexone
in patients with chronic, non-malignant pain who are being
treated with opioids and are experiencing opioid-induced constipation.
Each study will separately evaluate a different oral formulations of methylnaltrexone.
Both studies are expected to take approximately six months to complete.
Methylnaltrexone, an investigational drug, is being studied as a treatment for the peripheral side effects
of opioid analgesics. It is designed to mitigate the effect of opioids on peripheral receptors without interfering
with central nervous system pain relief. Methylnaltrexone is being developed in subcutaneous and
oral forms to treat opioid-induced constipation. Currently, there is no approved medication that specifically
targets the underlying cause of opioid-induced constipation.
Wyeth and Progenics have an exclusive, worldwide agreement for the joint development and commercialization
of methylnaltrexone for the treatment of opioid-induced side effects, including constipation
and post-operative ileus (POI), a prolonged dysfunction of the gastrointestinal (GI) tract following
surgery. Wyeth received worldwide rights to methylnaltrexone, and Progenics retained an option to
co-promote the product in the United States.
Adolor Corporation (ADLR), in collaboration with GlaxoSmithKline plc (GSK), is developing an opioid
antagonist, Entereg(TM) (alvimopan), for post-operative ileus, which has completed phase 3 clinical trials,
and for opioid-induced bowel dysfunction, which is in phase 3 clinical trials. Entereg is further along
in the clinical development process than methylnaltrexone, and Adolor has received an approvable letter
from the FDA for Entereg regarding the treatment of post-operative ileus.
Mundipharma International Ltd, an independent company associated with Purdue Pharma, has an oral
PR oxycodone/naloxone combination tablet that has been licensed in Germany under the trade name
TARGIN(R) for adult patients with severe chronic pain and opioid-induced constipation. Oral naloxone
reduces the impact of opioid-induced constipation, while having no effect on the analgesic efficacy of
oxycodone and minimal central effects. The drug will also be submitted for registration in other European
countries.
In addition to the development of methylnaltrexone, Progenics is developing a novel viral-entry inhibitor
for HIV. This molecule is designed to inhibit the virus' ability to enter certain types of immune system
cells. The Company has successfully completed a phase 1a study with PRO 140.
The Company is also developing immunotherapies for prostate cancer, including monoclonal antibodies
directed against prostate specific membrane antigen ("PSMA"), a protein found on the surface of prostate
cancer cells. Vaccines designed to stimulate an immune response to PSMA are conducted through
a joint venture with Cytogen Corporation (CYTO). Recent findings on PSMA structure and biology may
have important implications for other cancers as well. According to the Prostate Cancer Research Institute,
"Monoclonal antibodies are the closest thing we have found so far to 'magic bullets,' which can be
carefully targeted to reach specific sites."
A substantial portion of revenues to date has been derived from federal government grants and research
contracts. As of June 30, 2007, the Company had an accumulated deficit of $223.2 million and cash on
hand of $139.1 million.
In September, Wellington Management Company, LLP, on behalf of its clients, reported an 11.8% ownership
in the Company's stock. This was increase of 7.06% beneficial ownership on June 30, 2007.
Bank of America recently initiated coverage of PGNX at a Buy rating with a price target of $31.
▲TOP NEWS GAINERS.......
SYMBOL CLOSE %GAIN VOLUME NEWS
ANTP $10.520 +38.97% 2,968,700 Q1 EPS 8c vs (4c) EPS +300% Y/Y.
NIHK $0.106 +32.50% 11,999,700 $6M in Convertibles Finance Purchase of Eagle Broadband IPTV Asset.
APDN $0.155 +29.17% 842,700 Closes on Initial Rounds of Bridge Financing Totaling $550K.
AFT $1.110 +26.14% 109,200 Signs Two Year Supply Agreement Worth $68 Million.
ACGI $0.710 +18.33% 540,600 $3M Purchase in Convertibles at $5 by Vicis to Foster Acquisitions, Sales.
BIOF $5.240 +17.49% 495,100 Response to Falling Stock Price with Repurchase Plan of $7.5M Shares.
STRN $10.560 +17.28% 395,200 Q3 EPS 27c vs 9c EPS +200% Y/Y; Guidance Comments.
TELK $3.940 +13.87% 8,888,500 Soars on Monday After FDA Removes Partial Hold on TELCYTA(R) Trial.
EPLN $0.710 +12.70% 42,900 Q2 EPS 2c vs 1c EPS +100% Y/Y.
ORCT $8.660 +9.90% 488,400 Enters Settlement Agreement with Conexants Systems for $14.2M.
MSTR $87.070 +9.59% 768,100 SunTrust Ups to Buy from Neutral; Analyst Notes.
INSP $19.780 +9.10% 1,443,800 Announces Sale of Mobile Services Business.
YTEC $13.850 +3.20% 555,600 Subsidiary Acquires 100% of Recency Technology for $3.3M in Cash.
A quick look at today's biggest up and down movers.
Oct 22, 2007
Winners & Sinners: Goodman Global, China Direct, Dollar Tree...
Goodman Global (GGL) shares are flying this morning after news that the company will be purchased by private equity firm Hellman & Friedman for $26.50 per share.
Royal Caribbean Cruises (RCL) is also moving in the green this morning after handily beating earnings expectations.
China Techfaith Wireless (CNTF) is soaring today after receiving a contract from China`s Ministry of Public Security to exclusively develop pocket PC phones for Chinese police forces.
Yahoo (YHOO) is also moving up today after beating 3Q earnings estimates.
Steven Madden Ltd. (SHOO) shares are flying after reports that third parties have expressed interest in purchasing the NY-based shoe maker.
Tempur-Pedic (TPX) is also in the green after 3Q profits beat estimates by 4 cents per share.
<><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>
Dollar Tree Stores (DLTR) shares are sliding after reports of its CFO resigning.
Also tumbling is Schering-Plough (SGP) after falling short of 3Q earnings expectations.
Thornburg Mortgage (TMA) is in the red this morning after disappointing earnings results and the cancellation of this quarter`s dividend payment.
Webmd (WBMD) is also to the downside after lowering its guidance for next quarter.
SanDisk Corp. (SNDK) is in the red this morning after disappointing investors with poor earnings results.
Schlumberger Ltd. (SLB) is also falling after lowering its outlook on natural gas processing.
NEWS MOVERS.......
(DAIO).......
AFTER HOURS - TOP STORY
Data I/O Reports Q3 Results;
EPS 18c vs 1c EPS +1,700% Y/Y
Data I/O Corporation (DAIO) reported Q3 results ended September
2007. Q3 Revenues were $7.28M; up more than 6% from the same
period a year ago. Q3 EPS was 18c; up more than 1,700% from Q3 a
year ago. Shares of DAIO were up $1.98, or more than 49% in After
Hours, early on Wednesday evening.
AFTER HOURS HEADLINES.......
SYMBOL NEWS
BPEV Approved for Exclusive Use of Brando Logo for Intl. Marketing.
RELL Hires 25-Year Finance Expert Kathleen Dvorak as VP, CFO & CSO.
ATAR Secures $10M Bluebay Credit Facility for Liquidity and Short
Term Biz Plan.
CGSE Agrees to Realtime Navigation Project with Motorola; to Begin
Next Month.
XRIT Completes $180M Acquisition of Pantone, Inc.
GFSI David Glenn Stepping Down from Board.
CBZ Acquiring Healthcare Business Resources.
PXG Announces Organizational Re-alignment; Appoints Scott Sporrer
Interim CFO.
ARSD Receives Approval for Joint Stock Company.
HF Arranges Refinancing for Ballston Tower in Virginia.
GAI Announces Intentions to Appeal SEB Patent Infringement Ruling.
Quote from: setravis on October 24, 2007, 11:32:02 PM
(DAIO).......
AFTER HOURS - TOP STORY
Data I/O Reports Q3 Results;
EPS 18c vs 1c EPS +1,700% Y/Y
Data I/O Corporation (DAIO) reported Q3 results ended September
2007. Q3 Revenues were $7.28M; up more than 6% from the same
period a year ago. Q3 EPS was 18c; up more than 1,700% from Q3 a
year ago. Shares of DAIO were up $1.98, or more than 49% in After
Hours, early on Wednesday evening.
DAIO.......Update !
<><><><><><><><><><><><><><><><><><><><><><><><><>
Press Release Source: Data I/O Corporation
Data I/O Announces Third Quarter Profits
Wednesday October 24, 4:30 pm ET
REDMOND, Wash., Oct. 24 /PRNewswire-FirstCall/ -- Data I/O Corporation (Nasdaq: DAIO - News), the leading provider of manual and automated device programming systems, today announced financial results for the third quarter of 2007.
Revenues for the third quarter of 2007 were $7.3 million, an increase of 26% compared with $5.8 million for the second quarter of 2007. New orders during the third quarter were $8.3 million, up 33% from the $6.2 million for the second quarter of 2007. The gross margin as a percentage of sales for the third quarter of 2007 was 62.0%, compared with 49.1% for the second quarter of 2007. The increase in gross margin percentage was primarily due to a favorable product mix; higher sales volume relative to fixed operating costs; sales channel mix being mostly direct; and savings from our restructuring actions, as well as favorable inventory material cost and labor and overhead variances.
In accordance with U.S. generally accepted accounting principles (GAAP), net income for the third quarter of 2007 was $1.6 million, or $0.18 per share, compared with a net income of $47,000 or $0.01 per share for the third quarter of 2006, and compared with a net loss of ($1.1 million), or ($0.13) per share, for the second quarter of 2007. Included in the results of each of these periods was $0.01 per share related to the impact of expensing options.
"We were pleased to report both the large orders to a new automotive customer announced earlier, as well as strong sales to wireless customers", said Fred Hume, president and CEO. "The substantial increase reported in gross margin, which combined with savings resulting from our restructuring actions were the leverage for delivering outstanding profitability for the third quarter."
Conference Call Information
A conference call discussing the third quarter and 2007 financial results will follow this release today at 2:00 p.m. Pacific time/5:00 p.m. Eastern time. To listen to the conference call, please dial (480) 629-9025 passcode: DAIO. A taped replay will be made available approximately one hour after the conclusion of the call and will remain available for one week. To access the replay, please dial (320) 365-3844, access code: 891734. The conference call will also be simultaneously webcast over the Internet; visit the News and Events section of the Data I/O Corporation website at http://www.dataio.com to access the call from the site. This webcast will be recorded and available for replay on the Data I/O Corporation website approximately two hours after the conclusion of the conference call.
About Data I/O Corporation
Celebrating 35 years of innovative leadership in the device programming industry, Data I/O Corporation (Nasdaq: DAIO - News), offers expertise in delivering intellectual property to programmable devices, with integrated manufacturing solutions that specifically address the requirements of engineering and manufacturing customers. Data I/O Corporation has headquarters in Redmond, WA, with sales and services offices worldwide. For further information, visit the company's website at http://www.dataio.com.
--------------------------------------------------------------------------------
Source: Data I/O Corporation
52wk Range: 2.92 - 4.49
Volume: 1,083,113
Avg Vol (3m): 21,113.6
Technicals
Record Price High
Gap Up
Percentage Gainer
Last Price Quote is:
45.43%above 13-day MA
56.85%above 50-day MA
RS Rating: 98
Fundamentals
Key Data:
Market Cap (M): $34.79
P/E Ratio: 2,941.18
PEG Ratio: N/A
Next Earnings: N/A
Last Analyst Rating: N/A
;) ;D
Wednesday's Biggest Stock Stars.......
A little late in posting....but you can still follow ;D
Follow up on DAIO.......
AFTER HOURS HEADLINES.......
Symbol News
AP
Stocks Rally As Credit Worries Remain
Tuesday November 6, 6:48 pm ET
By Madlen Read, AP Business Writer
Stocks Jump As Investors Buy Bargains and Energy and Metals Producers; Credit Worries Remain
NEW YORK (AP) -- Wall Street bounded higher Tuesday as investors still mindful of widening credit problems nonetheless went in search of bargain stocks. The Dow Jones industrial average rose 117 points, with soaring oil and precious metals prices driving up the companies that produce those commodities.
Investors remain haunted by the big debt problems at banks, notably Citigroup Inc. and Merrill Lynch & Co. But companies outside of the banking, lending and housing industries have been posting strong financial results -- on Tuesday, Tenet Healthcare Corp., Nortel Networks Corp. and Archer Daniels Midland Co. impressed Wall Street with their quarterly earnings.
And with no major bad news to follow up Citigroup's Sunday announcement that it was preparing to mark down another $8 billion to $11 billion of subprime debt, even bank stocks, pummeled in recent months, looked like bargains.
Citigroup fell, but JPMorgan Chase & Co., Bank of America Corp., Wachovia Corp., Wells Fargo and Washington Mutual Inc. -- which all hit 52-week lows Monday -- each jumped Tuesday.
"There was an absence of bad news," said Jim Herrick, manager of equity trading at Baird & Co. "But there's room for another shoe to drop. I don't think we're out of the woods yet. It's a classic relief rally."
The Dow rose 117.54 or 0.87 percent, to 13,660.94. The size of the gain masked the nervousness in the market; stocks were earlier in the session.
Broader stock indicators also turned higher. The Standard & Poor's 500 index rose 18.10, or 1.20 percent, to 1,520.27, and the Nasdaq composite index rose 30.00, or 1.07 percent, to 2,825.18.
Government bonds dipped as money flowed back into stocks. The yield on the 10-year Treasury note, which moves opposite the price, rose to 4.37 percent from 4.34 percent late Monday. The yield rose to 4.38 percent in after-hours trading.
The Dow is about 500 points, about 3.5 percent, below the all-time high close of 14,164.53 it reached Oct. 9. Many companies, particularly in the technology and industrial sectors, have been consistently posting strong quarterly results, and appear undervalued. But third-quarter weakness in the financial sector -- the biggest in the S&P 500 -- has dragged down overall U.S. earnings growth.
"We've had a pretty good run, as far as a return for the year for the broad market indices," said Janna Sampson, director of portfolio management at Oakbrook Investments, pointing out that the S&P 500 index is up more than 8 percent for the year. "There may not be, given the level of earnings growth, a lot more for this quarter."
The dollar reached yet another record low against the euro. The 13-nation currency rose to a high of $1.4569 before pulling back slightly.
Crude oil on the New York Mercantile Exchange briefly passed $97 a barrel for the first time, before settling up $2.72 at a record $96.70. Gold on the Nymex rose to another 27-year high, settling up $12.60 $823.40 an ounce.
One of the most active stocks on the NYSE Tuesday was silver and gold miner Coeur d'Alene Mines Corp., which shot higher on higher metals prices and a Bear Stearns analyst's comment that the stock is underpriced. Shares climbed 52 cents, or 13.5 percent, to $4.36.
Exxon Mobil Corp., one of the 30 Dow components, was another big gainer, rising $2.72, or 3.1 percent, to $90.38.
Anthony Conroy, managing director at BNY ConvergEx Group, said it's a stock-picker's market. "If you do your due diligence, you can make money in the markets."
In earnings news, hospital operator Tenet Healthcare reported its third-quarter loss narrowed on higher charges and more admissions in commercial managed care. Tenet rose 72 cents, or 22.3 percent, to $3.95.
Nortel Networks said it swung to a profit in the third quarter despite lower revenue. The Canadian telecom equipment supplier reported its best operating margin since 2004. Nortel rose $2.90, or 17.8 percent, to $19.18.
Agricultural processor Archer Daniels Midland Co. said its fiscal first-quarter profit rose 9 percent as improved results at its oilseeds processing business offset higher corn prices. ADM rose $2.37, or 6.9 percent, to $36.89.
Advancing issues outnumbered decliners by about 7 to 4 on the New York Stock Exchange, where consolidated volume came to 3.77 billion shares, up from 3.75 billion on Monday.
The Russell 2000 index of smaller companies rose 11.34, or 1.43 percent, to 801.77.
Fed Chairman Ben Bernanke spoke in San Antonio Tuesday afternoon, but his prepared remarks did not address monetary policy or the direction of interest rates. Investors are awaiting his scheduled testimony Thursday before Congress' Joint Economic Committee.
Overseas, Japan's Nikkei stock average closed down 1.62 percent, while Hong Kong's Hang Seng index rose 1.71 percent a day after falling 5 percent. Britain's FTSE 100 rose 0.21 percent, Germany's DAX index rose 0.25 percent, and France's CAC-40 rose 0.44 percent.
New York Stock Exchange: http://www.nyse.com
Nasdaq Stock Market: http://www.nasdaq.com
Why we Love Wild Penny Stocks....... :P
Penny stocks have huge potential, that's their blessing and their curse.
The potential rewards are enormous. Just take a look at the 500% gain tiny Point Therapeutics (Nasdaq: POTP) has posted in a little more than a month or the recent spike in the stock price of adult entertainment provider Private Media (Nasdaq: PRVT).
Those jumps look like easy gains, considering that Deere (NYSE: DE) would have to add another $150 in value to double its share price, and Chipotle (NYSE: CMG) would need to throw another $120 on the fire to eke out another double.
Everybody loves pennies
It's the potential for quick gains in stocks like Point Therapeutics and Private Media that keep investors coming back. We typed "penny stocks" into Google, and the search engine spit out "about 825,000" hits. We did the same for more time-tested terms such as "blue-chip stocks" and "dividend-paying stocks" and got just 154,000 and 115,000 hits, respectively.
Sure, we expected a discrepancy, but the size of the gap was startling. It became even more interesting when we broke those hits down with Google Trends. According to Trends, penny stocks are particularly alluring to investors in Las Vegas, Tampa, Orlando, and Calgary -- the locales where the term is most often searched.
Las Vegas makes a bit of sense. Those folks are gamblers.
Florida, though? We hope the folks googling "penny stocks" down there aren't retirees.
Pay attention to the SEC's entire definition, not just the stock price. Going solely on price would wrongly categorize billion-dollar companies such as Atmel (Nasdaq: ATML) and Aquila (NYSE: ILA) as penny stocks.
Regardless, the SEC is spot-on when it says that true penny stocks are among the surest ways to lose money in the stock market.
So why do we love penny stocks?
We love penny stocks because they're fascinating. The world of pennies is inhabited by pumpers and dumpers, hypesters and scammers, and hardworking average Joes hoping to strike it rich. In pennies, the logic and reason that applies in the rest of daily life is replaced by zeal and prayer.
However, we don't love them enough to actually buy them. Yes, they have big potential. But their daily gyrations are unpredictable -- the stock price movements have next to nothing to do with the underlying company the stock represents. In fact, trading in pennies is highly illiquid, and prices are often manipulated by forces not at all related to the business.
The dangers of incredible promises
If you're buying stocks without paying attention to the business you're buying, you might as well buy a lottery ticket. Or, to use another analogy, you might as well buy up every baseball card of a benchwarmer on the Akron Aeros AA baseball team and hope that he someday rises up, fulfills his potential, and becomes an all-star for the big-league Cleveland Indians.
There's a better way
Before you conclude that the rest of the stock market is boring -- with big stocks such as IBM having a "big day" when they move up 1% or so -- let us introduce you to some underfollowed small caps. They're nothing like penny stocks, yet they offer some of the best returns on the market. Unlike penny stocks, promising small caps:
File reliable financial statements
Are transparent
Have conference calls individual investors can listen to
Don't simply hype their stock in press releases
That's a starting point. There are more -- and more important -- criteria to help you find great small-cap companies.
for instance, looks for a balance sheet with lots of cash and no debt, and a tenured CEO (or CEO/founder, if possible) who holds a substantial ownership stake in the business. In other words, we're looking for big returns with good, old-fashioned, bottom-up analysis.
(USBE) US BioEnergy Expanding Ethanol Production.......
Oil will undoubtedly be a conversational piece over the holiday break.
The older and younger generation will collectively curse the big oil
companies, the government, and whoever else they can pin the spiking
price upon.
The winter and holiday season have historically been times of cheaper crude and, in
turn, gasoline at the pump, but not so this year. The two have basically switched as
this past summer saw somewhat tame prices while the third quarter saw crude rally from $71 to over $80
and now to almost $100 a barrel. But gas prices haven't really correlated with crude over the past few
weeks. The effects are slowly but surely beginning to make that move.
With crude making the strong moves, it hasn't raised consumer awareness as much because of the lack
of correlation with the gas prices, but that will certainly change over the coming weeks, and with that in
mind, one needs to look at the alternate energy names much harder as the sleeping consumer will undoubtedly
take notice in the near future.
While the market has seen a downturn with many thinking a recession could be on the horizon, it could
be time to look for cheap names to protect against the inevitable pullback.
In the alternate energy space, one name to look into that could be considered cheap relative to peers is
US BioEnergy Corp (USBE). The Company is one of the many ethanol producers in the US. The Company
IPO'ed in mid Dec of 2006 in the $14 area and have since seen their share price slide to the $7's.
Currently, Archer-Daniels Midland Company is the largest player in the space but isn't a pure play. Some
of the other producers similar in size to USBE are Aventine Renewable Energy Holdings Inc. (AVR) and
VeraSun Energy Corporation (VSE).
Last week, USBE reported earnings that displayed some growth in both bottom line and production quarter
over quarter. During the third quarter of 2007, the company sold 73.2 million gallons of ethanol at an
average selling price of $1.76 per gallon, compared with 67.1 million gallons of ethanol at an average
selling price of $1.91 per gallon for the second quarter of 2007. Revenues were $151 million compared
to $154.4 million for the second quarter. Earnings were reported at 15c a share versus 12c a share in the
earlier period.
The top line production growth is also expected to continue over the coming months. Their Marion, South
Dakota facility is expected to being production in the first quarter of 2008 with a 110 million gallon a year
capacity. Their Hankinson, North Dakota facility is expected to being production in the second quarter
of 2008 with a 110 million gallon a year capacity. Their Dyersville, Iowa facility is expected to being
production in the second quarter of 2008 with a 110 million gallon a year capacity. And their Janesville,
Minnesota facility is expected to being production in the third quarter of 2008 with a 110 million gallon a
year capacity.
Over the next year, USBE will be adding 440 million gallons a year in production to bring their total to the
750 million gallon a year range. But it has been noted that acquisition is now cheaper than new facility
production evidenced by recent acquisitions by USBE and VSE in the $2.20 to $2.40 a gallon price
range.
With production expected to be in the 750 million gallon a year range and an acquisition price of $2.20
a gallon, the value could be in the $1.65 billion range. Now consider the market cap which is only $556
million and one can see the discrepancy.
Even in simple comparisons to similar firms, USBE could be considered a better value play. VeraSun has
more shares outstanding, more than double long term debt, very similar EBITDA and slightly higher revenue
in the trailing twelve months, but the stock is trading 40% higher. On just a production comparison,
USBE could easily be considered the better choice. The only real difference is the amount of cash VSE
has ($320M) versus USBE's ($80M). Even so, USBE hypothetically could issue $300 million in notes and
end up with more cash than VSE and still have less long term debt.
AVR has produced revenue of $1.62 billion in the trailing twelve months which is more than double compared
to USBE, but their EBITDA ($60M) was significantly less than what USBE produced ($79M) in the
past year. Also, AVR has $39 million in cash versus USBE's $79 million. Additionally, AVR's short term
debt is $48 million compared to USBE's of only $15.8 million. Long term debt is comparable at $331 million
versus AVR's $300 million.
While some fundamental numbers are better in AVR or VSE, the majority could be considerably point
towards USBE as being a better value. And with the expected production coming online in the next year,
the name is certainly one to follow. With that in mind, investors would be wise to watch.
ClipResmpa
Aftermarket News Has Three Names on the Move.......
Wednesday's session saw the indices rally on the back of jobs
data which was reported higher than analyst estimates. The job
growth displayed numbers which were in stark contrast of any
expectation of recession. Even so, fear and anxiety remained
with continued subprime talk on the horizon. Headlines were
reporting that the Bush administration was proposing a 5 year
interest rate freeze on owner occupied subprime mortgages. Large investment
firms were also reporting the receipt of subpoenas to testify before congress
on the selling of these risky debt securities. The fear and anxiety were still expected to be enough
to tip the scales in favor of a cut in the interest rates by the Fed next week.
But the real news came post-market on Bidz.com Inc. (BIDZ), Hoku Scientific (HOKU) and Novastar
Financial (NFI).
BIDZ has been battling a negative mention by Citron Research which was published last week.
The Company refuted the allegations made by Citron in a conference call that did more harm than
good to the share price. Following the report and call, shares were effectively been cut in half.
But it still didn't dissuade analysts from coming to its defense. Roth, Think Equity, and Craig-Hallum
all maintained a Buy rating in their reports and noted the weakness as entry opportunities.
Roth even commended the Company in its attempt to address the negative report after shares
dropped some $2.50 during the call.
Prior to the Citron report, BIDZ had issued guidance on November 27th of $180 million to $182
million in revenue for the 2007 fiscal year. Fourth quarter revenue was expected at $56 million
to $58 million. The reason for the raised guidance was noted as the record Thanksgiving holiday
weekend which saw a substantial jump. 2008 revenue guidance was also released which noted
expectations for $225 million to $230 million in revenue and 47c to 51c in earnings per share.
In aftermarket action on Wednesday, the Company updated their guidance. In a little more than
a week, the Company noted that it now expected revenue for the year to be at the higher end of
their $180 million to $182 million view. Pretax income for the year was guided for $18 million to
$18.5 million. Pretax income for the fourth quarter was expected to be $5.6 million to $6 million
on $56 million to $58 million.
Not much changed except the Company's expectation of 2007 revenue coming in at the higher
end of their range. That and the fact that televisions (one of the questions brought up in the conference
call regarding shill bidding) are no longer available on the site. Aftermarket trading saw
shares hit highs in the $13.00 range before falling back down to closing levels.
Hoku Scientific, a clean energy technology company, which has been gathering extravagant
amounts of prepayment contracts for polysilicon in hopes of gathering enough to construct a plant
in Idaho, announced that the Company had signed a non binding term sheet with Merrill Lynch
for $185 million in financing to facilitate the cost of construction. Following the announcement,
shares jumped to the $10.40 range after closing at $9.80.
Novastar Financial Inc. shares, which had been on many trader's screens following their recent
activity, saw another boost following the subprime mortgage lender's waiver acceptance by
Wachovia. At issue was the Company's adjusted tangible net worth which had fallen below the
convent levels. The Company originally broke the covenant on September 30th, but received a
waiver until November 30th. The Company now announced that Wachovia has until December
7th, this Friday. The first waiver was for 2 months. The second is now only 7 days which could
signify Wachovia is running short on patience. Even so, shares were up some 30% in after market
trade.
Wednesday's aftermarket session saw a plethora of exciting, market affecting news cause some
large swings in after hour trading. If the action continues to Thursday's session, investors would
certainly be wise to watch.
(AXTI).......
AXT Secures $18.6M N. American Order
Through Control of Foreign Raw Materials
To boost last quarter's decreased revenues in the North American segment,
AXT, Inc., (AXTI) has entered into two supply agreements with
IQE plc of Somerset, New Jersey for for semi-insulating gallium arsenide
substrates for IQE's 2008 worldwide substrate requirements. This
agreement, valued at $15.1M, contains an option to purchase an additional
$3.5M of substrates. While the agreement represents a significant
contribution to North American revenues, it is the company's operations
abroad that determine its profitability here. While last quarter's revenues
in Japan have increased by $2.5M, it is in China's production of raw
materials where the company's financial stability depends. As a result,
AXT has focused strategic investments in private companies located in
China in order to gain access at a competitive cost to raw materials that
are critical to its substrate business. "We consider our China operation
to be the cornerstone of our growth strategy," said President and CEO
Morris Young. "Our presence in China brings us closer to many of our
customers and sources of raw materials, and improves our efficiency,
competitiveness, and control over production costs." In February 2007
AXT became a 51% owner of the Beijing Ji-Ya Semiconductor Material
Company, Ltd. The gallium extraction facility, located in Shan Xi, is capable
of providing approximately 20 tons of gallium annually and gives
the company a secure source of gallium. As the company has learned
from the past, access to gallium is the key to driving sales in the substrate
business. During early 2001, its production and revenues were affected
by a sudden lack of raw materials and the company was forced to
pay high prices on the gallium it purchased. With its new investment, the
likelihood of future supply problems is significantly reduced, thus protecting
AXT from price fluctuations. In addition, the company believes
the facility will be one of the lowest cost producers of 99.99 percent
pure gallium in the world." According to Young, the substrate industry in
a state of recovery. So as the industry recovers, producing gallium not
only gives AXT a competitive advantage in selling substrates, but in the
selling of raw materials to make those substrates. Under this type of umbrella,
AXT was able to enter into a reasonably priced supply agreement
with Recapture Metals Limited of Ontario, Canada to supply its subsidiary
in the People's Republic of China with one thousand kilograms per
month of 99.9% pure gallium for an 18 month period beginning July 1,
2007. As stated in its most recent 10Q, the company expects to invest
approximately $2.1M in capital projects for the remainder of 2007, and
believes its existing and planned facilities and equipment are sufficient
to fulfill current and expected future orders.
AFTER HOURS - TOP STORY
CV Therapeutics Announces FDA
Approval of New Labeling for Ranexa(R)
CV Therapeutics, Inc. (CVTX) announced that the FDA has approved
new language for the product labeling for Ranexa(R) (ranolazine extended-
release tablets) which describes the ability of ranolazine to
inhibit the late sodium current at therapeutic levels. Published data
on ranolazine's mechanism suggests that during ischemic episodes
excess sodium can flow into cardiac cells through sodium channels.
This excess sodium can trigger a subsequent overload of calcium
that can lead to problems with proper contraction and relaxation of
the heart. Late sodium current inhibition has been shown to improve
mechanical and electrical dysfunctions of cardiac cells under these
circumstances.
ANNOUNCES CLEARANCE FOR ACQUISITION: Pfizer (PFE) has received clearance from
the Federal Cartel Office of Germany (FCO) in connection with its offer to purchase all of the
outstanding shares of common stock of Coley Pharmaceutical Group, Inc. (COLY). Pfizer commenced
a tender offer on November 30, 2007 for all of the outstanding shares of Coley's common
stock for $8.00 per share in cash. The tender offer is scheduled to expire at 12:00 midnight,
New York City time, on Friday, December 28, 2007, unless the tender offer is extended.
Press Release Source: AllPennyStocks.com Media Inc.; The Alliance Enterprise, Corp.
AllPennyStocks.com Spotlights The Alliance Enterprise, Corp.
Wednesday October 31, 9:01 am ET
MISSISSAUGA, Ontario, Oct. 31, 2007 (PRIME NEWSWIRE) -- AllPennyStocks.com Media, Inc. (http://www.AllPennyStocks.com), a leading penny stock / small-cap information site, released its latest spotlight company The Alliance Enterprise, Corp. (Other OTC:AETR.PK - News).
The Alliance Enterprise Corporation (TAE) is a development stage company with a mission to become the worldwide provider of an aerial detection system for emerging markets that include: landmine detection and mapping, homeland security, security patrol of nuclear power plants, hydro dams, sensitive government installations, border patrol and harbor patrol.
The biggest dilemma facing the landmine problem today is determining which areas are clear of landmines and which are not. Inhabitants of these lands are using dogs and de-miners crawling on their stomachs, probing the earth's surface with a prod to qualify areas.
Many experts believe that under current conditions it would take more than 1,100 years to clear the entire world of mines provided that no additional mines are planted. Meanwhile, The Alliance Enterprise Corporation announced on October 23rd, 2007, the integration of a second airborne vehicle that is designed to rapidly identify land areas embedded with landmines 100 times faster than today's methods.
A complete AETR profile can be viewed at: http://www.allpennystocks.com/aps_us/company_spotlights/archives/aetr.asp
About AllPennyStocks.com Media Inc.:
AllPennyStocks.com is focused on the small-cap / penny stock market and has become a reputable name in the investment community. AllPennyStocks.com runs a Canadian and U.S. site to provide investors in Canada as well as the United States with informative and unique content and information. AllPennyStocks.com runs weekly penny stocks to watch, has a daily market write-up, provides company spotlights, runs a unique most active pages strictly for penny stocks trading on the TSX, TSX Venture, Nasdaq and OTCBB, and much more information for the average investor.
Although the majority of AllPennyStocks.com reports are independent, it has received compensation for carrying the report on The Alliance Enterprise, Corp. (Other OTC:AETR.PK - News); the amount is four thousand dollars by a non-affiliated third-party, Stock Performance Experts LLC. for its efforts in presenting the AETR profile on its web site and distributing it to its database of subscribers as well as other services. This creates an inherent conflict of interest and readers are encouraged to view the full disclaimer at http://www.allpennystocks.com/aps_us/company_spotlights/archives/aetr.asp.
Contact:
AllPennyStocks.com Media, Inc.
Peter Szafranski, President
905-361-5680
[email protected]--------------------------------------------------------------------------------
Source: AllPennyStocks.com Media Inc.; The Alliance Enterprise, Corp.
5 Stocks Approaching Greatness.......
Some of these names might surprise you. ;D ;)
Oilsands Quest (AMEX: BQI)
OmniVision Technologies (Nasdaq: OVTI)
First Marblehead (NYSE: FMD)
Penn West Energy Trust (NYSE: PWE)
Smith & Wesson Holding (Nasdaq: SWHC)
Top News Gainers.......
Top News Losers.......
Precious metals....... ;) ;D 8)
As the economy drops, GOLD is were investors hide their money... ;)
You could put all your cash in a box under the bed, but you'd still lose money because the sliding dollar is devaluing your purchasing power almost every day.
Seems to me the place to store cash is in appreciating assets. Right now that means precious metals, foodstuffs, and oil. If one of them takes a breather, switch your cash to something else in the gold-food-oil arena still going up. That's why I like the CanRoy stocks for parking cash - they are currently rising (more or less), and they pay a high yield while you wait.
Could be a big up day tomorrow if the Fed cuts rates enough.
AUY looks to be strong for an up move soon. Buy now.
Annual report 3/26/08
Watch this stock for movement in the next several days before 3/26 report.Year to date numbers look better than 2006.With gold at $1000/oz, this stock will move for the forseeable future.
Gold is starting to grab some big headlines which makes me think there will be a shake out.
I think Gold and silver are going higher...I have a feeling there will be a short term sell off.
If it keeps going up I'll just watch for now, if it dips I'll look to reenter.
Bullish on Latin America... ;) ;D
Gainers...
Losers...
Upside Movers Today , Thursday 03/20/2008.......
here are a few more to add to your list.
I just wish I would have bought all these on the 19th. :'(
oh well, obviously someone is making money out there.
The markets this week will focus on the state of the economy after last week's poor US unemployment report, any fresh news on the banking crisis front, and anticipation of Q1 corporate earnings which will start emerging over the next several weeks. Fed Chairman Bernanke speaks this week on Wednesday and Thursday. There are appearances by four other Fed officials this week. The Bank of England at its policy meeting that ends Thursday is generally expected to cut its base rate by 25 bp to 5.00%. The European Central Bank at its policy meeting on Thursday is expected to leave its refi rate unchanged at the 6-year high of 4.00% due to the Bank's continued concern about inflation. On the US calendar, Tuesday brings Feb pending home sales (expected –1.0%) and the minutes of the March 18 FOMC meeting (where the Fed cut the funds rate by 75 bp to the current level of 2.25%). Wednesday brings weekly mortgage applications and Feb wholesale inventories. Thursday brings t he weekly initial unemployment claims report (expected –22,000), Feb US trade deficit (expected -$57.5 bln vs -$58.2 bln in Jan), the 10-year TIPS auction, and March monthly chain store sales. Friday brings March import prices (expected +1.9% m/m) and early-April US consumer confidence (expected –0.5 to 69.0).
Fed policy – The markets last Friday boosted expectations for Fed easing by about 10 bp due to the very disappointing March unemployment report (payrolls –80,000, unemployment rate +0.3 to 3-year high of 5.1%). However, market expectations as of last Friday for Fed easing were still lower than the previous week due to the calmer banking situation. The Fed is now providing liquidity as needed to securities firms and UBS and Lehman Brothers were the most recent banks to raise substantial amounts of new capital. The market is now discounting a 36% chance for a 50 bp easing to 1.75% at the next FOMC meeting on April 29-30. The market is at most expecting an 80% chance of a 50 bp easing by August. The market is then expecting the Fed to start raising the funds rate in 2009 due to expectations for an economic recovery in 2009
Bullish factors for stock prices last Friday included (1) the rally in big oil companies as crude oil prices rose to over $106 per barrel, (2) the rally in utility stocks on speculation the Fed will keep lowering interest rates, making dividend paying utility companies more attractive, and (3) the rally in coal producers with Peabody Energy up 3.4%, Arch Coal up 6.6% and Massey Energy surging 18% after it said it expects higher metallurgical coal prices and will increase spending to capitalize on the demand.
Bearish factors for stock prices last Friday included (1) the larger than expected loss in jobs in the Mar nonfarm payrolls report and the rise in the unemployment rate to a 2-1/2 year high of 5.1%, increasing recession fears, (2) the 11% loss in Washington Mutual after analysts at Keefe, Bruyette & Woods said higher credit losses will cause a wider than expected loss at the argest US savings and loan this year and will erode earnings in 2009, and (3) the 4.8% drop in MBIA as Fitch Ratings downgraded the credit rating on the world's largest bond insurer and said it would need as much as $3.8 billion more in capital to deserve a AAA rating.
ANNOUNCES POSITIVE PRECLINICAL DATA: Pluristem Therapeutics Inc. (PSTI) announced
that the results from Fraunhofer Institute's additional pre-clinical study utilizing the Company's
proprietary PLacental eXpanded (PLX) cells in treating ischemic stroke showed statistical
significance utilizing functional as well as anatomical endpoints. PLX cells are mesenchymal
stromal cells (MSCs) obtained from the placenta and expanded using Pluristem's proprietary
3D PluriX(TM) technology. Fraunhofer Institute's scientists systemically injected PLX cells
into spontaneously hypertensive rats that had undergone middle cerebral artery occlusion, a
commonly accepted ischemic stroke model. The functional endpoints of improvement in beam
walking and neurological severity score and the anatomical endpoint of reduction in infarct size
reached statistical significance versus controls.
Watch List for Wednesday 4-16-2008
PTSC - News
http://finance.yahoo.com/q?s=PTSC.OB
Patriot Scientific announced today that the company's share repurchase plan has resumed and from time to time will be buying back its stock in the open market.
SRSR - Momentum
http://finance.yahoo.com/q/bc?s=SRSR.PK&t=5d
Sarissa Resources is an American junior exploration company that identifies and explores mineral properties in North America.
FSLR - Testing 52wk High
http://finance.yahoo.com/q/bc?s=FSLR&t=3m&l=on&z=m&q=l&c=
First Solar, Inc. designs, manufactures, and sells solar electric power modules using a proprietary thin film semiconductor technology.
I wish I would have seen your post in time. :'(
Quote from: pinoleropuro on April 16, 2008, 10:37:33 AM
I wish I would have seen your post in time. :'(
Sorry you didn't catch the post sooner... :(
Was unable to post this earlier in the day... :(
ICPR - Momentum
http://finance.yahoo.com/q/bc?s=ICPR.OB&t=5d
ICP Solar is a developer, manufacturer and marketer of solar cells and solar cell based products and building materials.
NEOP - Volume Alert
http://finance.yahoo.com/q/bc?s=NEOP.OB&t=5d
Neoprobe is a biomedical company focused on enhancing patient care and improving patient outcome by meeting the critical intraoperative diagnostic information needs of physicians and therapeutic treatment needs of patients.
BIDU - Breakout
http://finance.yahoo.com/q/bc?s=BIDU&t=5d&l=on&z=m&q=l&c=
Baidu.com, Inc. provides Chinese language Internet search services. Its services enable users to find relevant information online, including Web pages, news, images, and multimedia files through its Web site links.
Never invest in any stock....Do your DD first ! ;)
Watch List for Monday 4-21-2008.......
LTUS.OB - Volume Alert
http://finance.yahoo.com/q/bc?s=LTUS.OB&t=5d
Lotus Pharmaceuticals, Inc. ("Lotus") controls and operates Liangfang Pharmaceutical, Ltd. ("Liangfang") and Enze Jiashi Pharmaceutical, Ltd. ("Enze"), two Chinese pharmaceutical companies located in Beijing.
IDGG.OB - Momentum
http://finance.yahoo.com/q/bc?s=IDGG.OB&t=5d
Indigo-Energy Inc. is an independent Nevada energy company, engaged in the drilling, development, production and acquisition of certain oil and gas reserves located in the Upper Devonian sand formations in Kentucky
ETFC - Double Bottom
http://finance.yahoo.com/q/bc?s=ETFC&t=3m
E*TRADE Financial Corporation, through its subsidiaries, offers financial solutions to retail and institutional customers worldwide.
▲TOP NEWS GAINERS.......
▼TOP NEWS LOSERS.......
60-Week Moving Average.......
Its Do or Die for the Bears now.
If crude oil, gasoline, and heating oil come off their highs, and the U.S. Dollar really takes off, sending gold into a dustheap, then its pretty much going to be a massive breakout over the 60-week moving average in all of these indexes simultaneously.
Oil, coal, gold stocks will get weaker, but consumer stocks, homebuilders, and financials will rocket up and pull the major averages right on up and head to new highs.
I don't think any of the Wall St. pros are expecting it, nor are they positioned for it. There will be a wall of cash coming off the sidelines.
Watch List for Friday 4-25-2008
EMOC broke through a resistance level so keep an eye on it.
DLB - Momentum
http://finance.yahoo.com/q/bc?s=DLB&t=5d
Dolby Laboratories, Inc. engages in the development and delivery of products and technologies for the entertainment industry worldwide.
********************************************
CSGH - Volume Alert
http://finance.yahoo.com/q/bc?s=CSGH.OB&t=5d&l=on&z=m&q=l&c=
China Sun Group High-Tech Co., produces anode materials used in lithium ion batteries.
********************************************
BLLN - Volume Alert
http://finance.yahoo.com/q/bc?s=BLLN.PK&t=5d
Brilliant Technologies Corporation is a technology holding company devoted to research and development leading to commercialization of innovative, proprietary technologies.
Sinclair Obliterated
Man, if the FOMC stands pat on interest rates and says its ready to fight inflation and no need for rate cuts now because the economy is recovering but maybe rate cuts next year...
Gold could easily drop limit down in one day and crude oil could collapse by $20 or so, and we would have a 500 point rally day easy.
Sinclair's "This Is It!!" pronouncement would have announced a 3-year top in gold prices, and he and his CIGA followers would be obliterated.
Those who are pre-positioned in retail stocks, banks, etc. would make instant fortunes. Basically, it would be a repeat of 2006 when commodities topped and retail, airlines, etc. ran huge for 9 months.
Of course, if there is an "incident" over the weekend that sends crude up $5, then that's another story.
But its possible that Sinclair may be nearing the end of his career.
This week's US economic calendar is fairly busy with the key news centering on the Tue/Wed FOMC meeting and Friday's April unemployment report. Specifically, Tuesday brings the Feb composite home price index (expected –12% y/y), the April US consumer confidence report from the Conference Board (expected –2.5 to 62.0), and the beginning of the 2-day FOMC meeting. Wednesday brings the April ADP employment report (expected –60,000), Q1 GDP (expected +0.4%), the Q1 employment cost index (expected +0.8%), the April Chicago Purchasing Managers index (expected –0.2 to 48.0), and the FOMC's announcement of its monetary policy decision. Thursday brings weekly initial unemployment claims (expected +18,000), March personal income/consumption (expected +0.4% and +0.2%, respectively), March core PCE deflator (expected +2.0% y/y), March construction spending (expected –0.6%), April ISM manufacturing index (expected –0.6 to 48.0), and April total vehicle sales (expected 15.1 mln). Friday brings March factory orders (expected +0.2%) and the April unemployment report. April payrolls are expected to fall –78,000, which would be the fourth consecutive monthly decline and create a total 4-month loss of –310,000 people (Jan –76,000, Feb –76,000, March –80,000). Friday's April unemployment rate is expected to rise by +0.1 point to a new 3-year high of 5.2%.
FOMC policy – The market in the past several weeks has sharply curbed expectations for Fed easing, mainly because of ideas that the worst is past for the banking system crisis and because of serious upward inflation pressures. The market is now expecting only one more 25 bp rate cut to 2.00%, and then the market is expecting the FOMC to leave the funds rate unchanged at 2.00% through this summer. The market is then expecting the FOMC to start raising the funds rate, with an overall 75 bp rate hike to 2.75% expected by next summer. The market is not even fully expecting a rate cut at this week's FOMC meeting. Specifically, the market is discounting only a 78% chance for a 25 bp rate cut at this week's FOMC meeting, which is a big change from just a month ago when the market was fully expecting a 50 bp rate cut this week. If the Fed doesn't cut the funds rate by 25 bp this week, then the market is discounting a maximum 96% chance of that rate cut at the next FOMC meeting on June 24-25.
Bullish factors for stock prices last Friday included (1) UBS's upgrade of the US banking sector to "neutral" from "underweight" as UBS expects that "the return to balance sheet stability is taking place considerably faster than expected," (2) the 10% rally in Fannie Mae as Morgan Stanley said the widening difference in the Treasury yield curve will help drive Fannie Mae's earnings to $4.98 a share in 2009, (3) the rally in consumer stocks after JPMorgan Chase raised their outlook on the sector to "overweight" from "underweight," saying government tax rebates, Congressional proposals to bolster the mortgage market and cheap valuations will spur gains in the shares, (4) the 5.7% increase in American Express as the biggest US credit card lender reported Q1 profit from continuing operations of 84 cents a share, topping the 80 cent a share estimate by analysts, and (5) the $45 billion of US corporate bonds sold to investors last week, a sign that investors are more optimistic that banks and securities firms can weather credit-market losses.
Bearish factors for stock prices last Friday included (1) the 6.2% drop in Microsoft as the world's largest software maker reported an 11% drop in Q3 profit and said earnings for the current quarter may be 45 cents a share, below analysts estimates of 48 cents, (2) the bigger than expected drop in the April University of Michigan consumer confidence to a 26-year low, (3) the 9.4% drop in Ford after Merrill Lynch advised investors to sell the automaker citing its 64% gain since Mar 17 and "near-term headwinds," and (4) the continued surge in crude oil and its products as gasoline rose to an all-time high of $3.0815 per gallon.
SYNM - Volume Alert
http://finance.yahoo.com/q/bc?s=SYNM&t=5d
Syntroleum Corporation owns the Syntroleum(R) Process for Fischer-Tropsch (FT) conversion of synthesis gas derived from biomass, coal, natural gas and other carbon-based feedstocks into liquid hydrocarbons, the Synfining(R) Process for upgrading FT liquid hydrocarbons into middle distillate products such as synthetic diesel and jet fuels, and the Bio-Synfining.
COPI - Volume Alert
http://finance.yahoo.com/q?s=COPI.OB
Call Compliance, Inc., located in Glen Cove, NY, is a developer of technology-based compliance solutions for the teleservices industry.
VMW - Momentum
http://finance.yahoo.com/q/bc?s=VMW&t=5d
VMware, Inc. provides virtualization solutions. Its virtualization platform products include Player that enables individuals to run virtual machines on their desktops.
▲TOP NEWS GAINERS.......
▼TOP NEWS LOSERS.......
Watch List for Wednesday 05-01-2008.......
JBLU - Double Bottom
http://finance.yahoo.com/q/bc?s=JBLU&t=3m&l=on&z=m&q=l&c=
JetBlue Airways Corporation provides passenger air transportation services in the United States.
SRSR - Volume Alert
http://finance.yahoo.com/q/bc?s=SRSR.PK&t=5d
Sarissa Resources is an American junior exploration company that identifies and explores mineral properties in North America. Currently, Sarissa has interests in properties with base metal, precious metal, uranium and niobium prospects in Northern Ontario, Canada.
HAS - New 52wk High
http://finance.yahoo.com/q/bc?s=HAS&t=3m&l=on&z=m&q=l&c=
Hasbro, Inc. engages in the design, manufacture, and marketing of games and toys. The company principally provides children's and family leisure time and entertainment products and services.
05-02-2008
▲TOP NEWS GAINERS.......
Continued from last post...
05-02-2008
▲TOP NEWS GAINERS
05-02-2008
▼TOP NEWS LOSERS.......
Continued from last post...
05-02-2008
▼TOP NEWS LOSERS
I wonder if any of these would have a nice turn around for a quick trade.
any thoughts? or is that too risky?
Watch List for Tuesday 05/06/2008
UTVG an alert is up to $2.75 this morning and showing lots of strength.
VLCM - Momentum
http://finance.yahoo.com/q/bc?s=VLCM&t=5d
Volcom, Inc. designs, markets, and distributes young men and young women clothing, footwear, accessories, and related products primarily under the Volcom' brand name in the United States and internationally.
DRYS - Momentum
http://finance.yahoo.com/q/bc?s=DRYS&t=5d
DryShips, Inc. engages in the ownership and operation of drybulk carriers worldwide. The company's fleet carries various drybulk commodities, including coal, iron ore, grains, bauxite, phosphate, fertilizers, and steel products.
▲TOP NEWS GAINERS
Monday 05/05/2008
▼TOP NEWS LOSERS
Monday 05/05/2008
SmallCapInvestor.com
Small caps continue in the green
Tuesday May 6, 1:24 pm ET
Will Atkinson
After declining in morning trading, small-cap stocks began a rally around 10 a.m. ET, surging to more than 729. Better-than-expected earnings from several small-cap companies helped to act as a catalyst for the market rally. At 1:24 p.m. ET, the Russell 2000 (NYSEArca:IWM) was up 5.60, or 0.77%, at 729.95.
Despite the rally, several bearish indicators gave investors pause early in the session. Federal Reserve Chairman Ben Bernanke said late Monday that increasing home foreclosures might harm the economy. Adding to investors' concerns was mortgage firm Fannie Mae's (NYSE:FNM) reported a $2.2 billion loss on credit-associated costs, which enabled the company to post a wider-than-expected quarterly loss of $2.5 billion. Swiss banking giant USBUBS (NYSE:UBS) reported early Tuesday that it will cut 5,500 employees and sell $15 billion in risky debt to BlackRock, Inc. ](NYSE:BLK) at 25% off its face value.
Among sectors, the big losers include airlines, water utilities, fabricated plastic and rubber materials producers and personal services firms. On the flip side, companies associated with oil and gas operations, coal, motion picture services, gold and silver were gaining ground.
Some of the firms that have broken out in Tuesday's trading include China Finance Online Co. ](NasdaqGM:JRJC), which broke through $23 resistance and is now up about 9% at $23.94. After experiencing a sell-off at $56.75, vacuum and heat transfer equipment maker Graham Corp. ](AMEX:GHM) has managed to rise 5.01% to $57.90. Although it's up 11.85%, oil and gas firm GeoResources, Inc. (NasdaqGM:GEOI) has had trouble breaking away from the $17 notch.
Big winners include R.H. Donnelley Corp. (NYSE:RHD), which is up some 28% after the Cary, N.C.-based Yellow Pages publisher's competitor Idearc posted first-quarter earnings well above Wall Street expectations. R.H. Donnelley releases earnings on May 8. Innophos Holdings, Inc. (NasdaqGM:IPHS) is up about 21% after the phosphate producer reported late Monday that it swung to a first-quarter profit. China Technology Development Group Corp. (NasdaqCM:CTDC) is jumping more than 14% despite no significant news.
Among losers, Obagi Medical Products, Inc. (NasdaqGS:OMPI) is slipping 20% after the Long Beach, Calif.-based skin care products maker missed first-quarter earnings expectations by a solid margin of $0.05. Interline Brands, Inc. (NYSE:IBI) is sliding 15% after the Jacksonville, Fla.-based distributor of maintenance, repair and operations products said it projects second-quarter earnings below Wall Street analysts' expectations. Atlantic Tele-Network, Inc. (NasdaqGS:ATNI) shares are sinking about 15% after the Salem, Mass.-based provider of telecommunications services in the Caribbean and North America reported first-quarter revenue of $45.6 million, which missed analysts' expectation of $47.1 million.
SmallCapInvestor.com
RH Donnelley, Innophos Holdings and Dixie Group lead small-cap percentage gainers
Tuesday May 6, 12:16 pm ET
Will Atkinson
RH Donnelley Corp (NYSE:RHD - News), Innophos Holdings Inc (NasdaqGM:IPHS - News) and Dixie Group Inc (NasdaqGM:DXYN - News) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $750 million.
Hudson Highland Group Inc (NasdaqGM:HHGP - News), China Technology Development Group Corp (NasdaqCM:CTDC - News) and Citizens Republic Bancorp Inc (NasdaqGS:CRBC - News) are also among the biggest percentage gainers.
Here are the biggest percentage gainers among small caps:
Watch List for Wednesday 5-14-2008
GCOG - Volume Alert
http://finance.yahoo.com/q?s=GCOG.OB
Gulf Coast Oil & Gas, Inc., an exploration stage company, focuses in the acquisition of oil and gas exploration projects in the United States.
FRO - Breakout
http://finance.yahoo.com/q?s=FRO
Frontline, Ltd., through its subsidiaries, engages in the ownership and operation of oil tankers, including oil/bulk/ore (OBO) carriers.
SmallCapInvestor.com
Pyramid Oil, National Coal and A Power Energy Generation Systems among 52-week highs
Thursday May 15, 4:22 pm ET
Will Atkinson
Pyramid Oil Co (AMEX:PDO), National Coal Corp (NasdaqGM:NCOC) and A Power Energy Generation Systems (NasdaqCM:APWR) are among the new 52-week highs in Thursday's trading among companies with market capitalizations under $750 million.
Avant Immunotherapeutics Inc (NasdaqGM:AVAN), HQ Sustainable Maritime Industries Inc (AMEX:HQS) and UFP Technologies Inc (NasdaqCM:UFPT) are also among the new 52-week highs.
Here are the new 52-week highs among small caps:
Some more to look at besides PDO.......
FPP MXC HKN USEG SYNM ROYL EWST
▲TOP NEWS GAINERS.......Tuesday 05/20/2008
2008 Best Performing Stocks.......
Year to Date Biggest Percentage Gainers.
Buyout Stocks or Pending Buyout Stocks not in the list.
#1 MXC $40.95 +928%
#2 PDO $21.75 +549%
#3 FPP $5.70 +375%
#4 MBRK $4.48 +273%
#5 ENT $4.27 +268%
#6 JRCC $36.30 +224%
#7 GEOI $25.85 +187%
#8 AVAN $14.19 +183%
#9 FINL $6.55 +170%
#10 OFI $7.60 +167%
#11 CWEI $80.22 +157%
#12 WLT $88.72 +147%
#13 WHT $4.70 +145%
#14 MMR $31.54 +140%
#15 VSCI $4.60 +132%
Milk the cash cows.......
In every market, there are companies that can provide their own organic financing rather than take on debt. We call them cash cows.
Cash cows are companies that churn out gallons of free cash flow -- the cash that's left over after normal capital spending. There are good reasons to own stock in companies that generate strong free cash flow, and in a down market, those reasons become even more attractive.
When times are tough and interest rates are high, a company with free cash flow can use the excess cash to invest in itself, so that when the economy finally turns around, the company will be in a better position to take advantage of the good times.
Two stellar examples during the last bear market were Baxter (NYSE: BAX) and Johnson Controls (NYSE: JCI). Both companies had positive free cash flows in 2000, carried healthy balance sheets, and were thus able to focus on building their core businesses. By the time the market recovered, they were able to reap the benefits -- since March 2003, these stocks have risen 256% and 202%, respectively.
Two current cash cows are NVIDIA (Nasdaq: NVDA) and Morningstar (Nasdaq: MORN). Despite tremendous gains from both companies over the past three years, the stocks are well off their 52-week highs, but they nevertheless continue to generate gobs of free cash flow. Both are world-class brands, and the extra cash on hand will serve them well, no matter what the economy does next.
High gas prices hit consumers worldwide
Saturday May 31, 2:12 am ET
By Angela Charlton, Associated Press Writer
$11.29 a gallon in Turkey? Consumers worldwide wrestle with rising gasoline prices
PARIS (AP) -- Feeling woozy about the fortune you've just pumped into your gas tank? Drivers around the world share the sensation.
Consumers, gas retailers and governments are wrestling with a new energy order, where rising oil prices play a larger role than ever in the daily lives of increasingly mobile people. But as the cost of crude mounts, the effect on the price at the pump varies startlingly -- from Venezuela, where gas is cheaper than water, to Turkey, where a full tank can cost more than a domestic plane ticket.
Taxes and subsidies are the main reasons for the differences, along with lesser factors such as limited oil refining capacity and hard-to-reach geography that push up prices.
"I don't know why it is but... it hurts," says Marie Penucci, a violinist filling up her Volkswagen at an Esso station on the bypass that rings Paris.
As she pumped gas worth $9.66 a gallon she looked wistfully at a commuter climbing onto one of the city's cheap rent-a-bikes, an option not open to her since she travels long distances to perform.
High taxes in Europe and Japan have long accustomed consumers to staggering pump prices, which now are testing new pain thresholds -- and it could have been even worse, if a strong euro hadn't cushioned some of the blow. As a result, plenty of European adults never even bother to learn to drive, preferring cheap mass transit to cumbersome cars.
Subsidies in emerging economies such as China and India, meanwhile, shield consumers but hurt governments, which must find a way to afford rising market prices for oil.
Increasingly, they can't. Indonesians are staging protests against shrinking gasoline subsidies in a nation where nearly half the population of 235 million lives on less than $2 a day. And there are now 887 million vehicles in the world, up from 553 million vehicles just 15 years ago, and on track to nearly double to a billion by 2012, according to London-based consultancy Global Insight.
In Europe, taxes are often the focus, since the high tax burden means crude itself is a smaller part of the burden.
"The pain of a rise in prices is much less in Europe, because we may be paying a lot more here, but the rise in a percentage sense is a lot smaller," said Julius Walker, oil analyst at the Paris-based International Energy Agency.
The United States, with its relatively low taxes, is considered to have retail prices closer to what energy data charts call the "real cost" of gasoline -- which is closely linked to the price of oil.
So as oil prices have soared, average U.S. prices have gone up 144 percent in the past five years -- from $1.67 in May 2003 to $4.02 a gallon this month, according to the U.S. Energy Information Administration. Over the same period, gas prices in France went up 117 percent to $9.66 a gallon.
Proposals by U.S. presidential candidates John McCain and Hillary Clinton to suspend federal gas taxes this summer would lower the price tag -- but have little effect on the underlying oil price. French President Nicholas Sarkozy has urged the EU to cut value-added tax on fuel.
French fishermen and farmers, who need fuel for their trawlers and tractors, say their livelihoods are threatened by soaring prices and have blocked oil terminals around France and shipping traffic on the English Channel to demand government help. Italian, Portuguese and Spanish fisherman joined them and went on strike Friday. British and Bulgarian truckers are staging fuel protests, too.
Russia is proof that big oil-producing nations are not in any better shape when it comes to gasoline prices. Gas in the world's No. 2 oil producer runs about $3.68 a gallon -- nearly that in the United States, where the average wage is about six times higher.
Much of the Russian cost comes from taxes, which run between 60 and 70 percent. Limited refining capacity and the costs of transporting gasoline across the country's vast expanse also push up prices.
Turkey faces similar problems -- and even higher prices -- $11.29 a gallon, which for a full tank in a midsize car can reach nearly $200, enough for a domestic plane ticket.
In China, government-mandated low retail gasoline prices have helped farmers and China's urban poor but also have hurt conservation. In the first four months of 2008, gasoline consumption was up 5.5 percent from the same period last year.
Venezuela, too, is a gas-guzzler's wonderland. A gallon costs just 12 cents and consumers are snapping up SUVs even as Americans are shunning them. Thanks to long-held government subsidies and plenty of oil, Venezuelans see cheap fuel as a birthright.
Some policymakers in less oil-flush nations look to Brazil's use of ethanol as a potential solution. Ethanol from sugarcane is widely available in the world's No. 1 sugar producer and its 190 million people. Eight out of every 10 new cars sold are flex-fuel models that run on pure ethanol, gas or any combination of the two. The price for ethanol in Sao Paulo is currently running about half the price of gas, which runs $5.67 per gallon.
In Japan, gas station owners say some customers aren't filling up their tanks all the way.
"It's been tough. I had to switch to regular gasoline from premium class," said Hiroyuki Kashiwabara, a company employee in his 50s whose monthly spending on gasoline has increased by nearly 10,000 yen ($96) over the last couple of months. "My salary doesn't change and I can't cut back on my spending on food or anything else."
Americans, too, are beginning to trim their hearty gas appetites.
"We're beginning to see a slowdown in the U.S. in gasoline demand in particular. That's not so visible in other parts of the world," the IEA's Walker said.
Jean-Marc Jancovici, a French engineer and co-author of a philosophical treatise called "Fill It Up, Please!" despairs rising thirst in the developing world for shrinking oil resources.
"The real question is ... how to save peace and democracy in this context," he asks.
His answer? To rich-country consumers, at least, he says: Pick up your bike and "stop being petroleum slaves."
Interesting...to be a pinkie...
5 Stocks Attracting Top Investors.......
There's a reason more than 30,000 investors flock to Omaha each May and millions more rummage through the Berkshire Hathaway annual reports: Gleaning knowledge from proven investors is one way to find the stocks that will make you rich.
A sudden increase in bullish interest from top-rated investors could be a sign that the stock deserves further research.
Here are five such stocks:
Release of private Info... 8)
How stocks on my Watch List have performed....... ;D ;)
Here are 60 of those stocks
When they were added price ranged between $1.00 to $5.00
NBR - Approaching New 52wk High
Nabors Industries, Ltd. operates as a land drilling contractor. It conducts oil, gas, and geothermal land drilling operations in the United States, Alaska, Canada, South America, Mexico, the Caribbean, the Middle East, the Far East, Russia, and Africa.
NBR is still on a very positive upward slope and it does not look like it is about to change its ways. Today with oil down, the DOW down, and NG vacillating between up and down the stock is powering up about a buck and half to a new high. For this staid old stock that is a big move.
52wk Range: 23.61 - 45.85
Volume: 8,371,160
Avg Vol (3m): 7,126,140
Market Cap: 13.23B
P/E (ttm): 14.96
EPS (ttm): 3.14
Div & Yield: N/A (N/A)
Technicals
Record Price High
Most Actives
Percentage Gainer
Last Price Quote is:
7.83%above 13-day MA
17.75%above 50-day MA
RS Rating: 94
Fundamentals
Key Data:
Market Cap (M): $12,519.08
P/E Ratio: 14.64
PEG Ratio: 0.871166
Next Earnings: 07/22/2008
Last Analyst Rating: Outperform
AP
List of highest-paid CEOs in 2007
Monday June 16, 6:40 am ET
By The Associated Press
List of highest-paid CEOs in 2007, based on AP's compensation formula
The 10 highest-paid CEOs for 2007 at Standard & Poor's 500 companies based on calculations by The Associated Press. The total pay figures are rounded, and are based on the AP's compensation formula, which adds up salary, perks, bonuses, above-market interest on pay set aside for later, and company estimates for the value of stock options and stock awards on the day they were granted last year.
1. John Thain, Merrill Lynch, $83.1 million
2. Leslie Moonves, CBS Corp., $67.6 million
3. Richard Adkerson, Freeport-McMoran Copper & Gold Inc., $65.3 million
4. Bob Simpson, XTO Energy Inc., $56.6 million
5. Lloyd Blankfein, Goldman Sachs Group Inc., $53.9 million
6. Kenneth Chenault, American Express Co., $51.7 million
7. Eugene Isenberg, Nabors Industries Ltd., $44.6 million
8. John Mack, Morgan Stanley, $41.7 million
9. Glenn Murphy, Gap Inc., $39.1 million
10. Ray Irani, Occidental Petroleum Corp., $34.2 million
Hydrogen Names Still in Focus;
Shares Gain 15.5%
Thursday's session saw oil decline as China announced the
cutting of their subsidies on the commodity leaving much of the higher
prices increases on the China consumer. Saudi Arabia also
announced a supply increase of 200 thousand barrels a day. The
reports erased early market losses but still was hampered by the financials which
didn't join the mid day reversal. Citigroup forecast for substantial write downs and
higher credit costs and a less than expected decline in the jobless claims were the main factors.
In the small cap space, Evergreen Solar (ESLR) reported extremely large contract announcements.
The two new long-term sales contracts were valued at approximately $600 million. One
was with United States-based groSolar while the other was with German-based Wagner & Co
Solartechnik GmbH. The contracts extend through 2012 and bring the Company's total contractual
backlog to approximately $1.7 billion. Following the news, shares gained over 19% on heavy
buying even with the decline in oil on Thursday.
Another alternate energy name saw some increased attention on Thursday. As has been noted,
Honda announced the limited release of the Clarity hydrogen powered car. The announcement
has many hydrogen related names on the rise. Hydrogen Hybrid Technology (HYHY) saw another
13% tacked on to its market cap. Hydrogenics, Corp (HYGS) saw their shares gain over 15.5%
on heavy volume.
Hydrogenics is a developer and provider of hydrogen generation and fuel cell products and services,
serving the growing industrial and clean energy markets. Based in Ontario with operations
in Europe and Asia as well, the Company has its hand in many projects relating to green energy.
In early May, the Company reported first quarter revenue that was up 56% year over year at $10.7
million. The number gives the Company over $38 million in trailing twelve months. Backlog at the
end of March was reported at $29.6 million.
Profitability was achieved in the OnSite Generation business but overall, the loss was $4.3 million
for the quarter. However, the loss was an improvement of 48% compared to last year's first
quarter number of $8.3 million.
In late May, the Company reported that it had been selected to provide the hydrogen electrolyzer
for a community wind-hydrogen-diesel system in the community of Ramea, Newfoundland and
Labrador, Canada. By adding zero-emission hydrogen generation and storage, Newfoundland
and Labrador Hydro (Hydro), are anticipating an increase in the amount of electricity derived
from wind which will lead to a decreased dependence on diesel fuel. The Company noted that it
intended to deliver its commercially proven HySTAT(TM) onsite generation electrolyzer to Hydro
within one year.
With the push for alternative sources of energy and the recent buzz for all things hydrogen, the
name is certainly one to follow. With more improvements in cost cutting initiatives and increases
in margin percentages, investors would be wise to watch.
Sector Watch: Waste management stocks
If the state of the current market has you down in the dumps, look no further than waste management companies American Ecology Corp. (Nasdaq:ECOL) and Casella Waste Systems, Inc. (Nasdaq:CWST), market leaders in two of the best-performing segments – hazardous waste remediation and waste recycling.
Casella Waste Systems, Inc. is the nation's 12th-largest waste management firm and considered one of the most forward-looking by many industry analysts. This vertically integrated, regional player provides waste collection, transfer, disposal and recycling services to residential and commercial customers across 14 states in the eastern United States. At FY 2008 year end, Casella's operations consisted of 34 solid waste collection operations, 30 transfer stations, 11 disposal facilities, 38 recycling facilities and three landfill gas-to-energy facilities. The company also holds a 50% interest in a joint venture that manufactures and sells cellulose insulation made from recycled fiber, and has a 20% equity interest in a company that markets incentive-based recycling services to some 250 national and local customers.
Casella was one of the first waste management service providers to recognize an emerging industry trend favoring improved resource management and greater recycling. More than 150 million tons of material was recycled in the United States last year and recycling has become a $71 billion industry employing more than 50,000 workers nationwide. Casella currently derives more than 30% of revenues from recycling. In 2007, the company sold more than 400,000 tons of recycled paper and 15 million tons of recycled aluminum.
Since 2003, Casella has invested over $200 million in developing strategically located landfill capacity with the goals of strengthening its market position and creating a sustainable long-term franchise. Over 64.5 million tons of landfill capacity has been added, increasing total landfill capacity to 94.1 million tons. In late 2007, Casella began shifting its focus from development projects to harvesting cash flows from existing investments and repaying debt. Casella also continues to pursue tuck-in acquisitions in existing markets that can help maximize route density, improve asset utilization and stabilize pricing. A cost reduction program initiated last year has trimmed more than $4 million from the company's annual operating costs.
Casella's revenues grew 9.1% in FY 2008 to $579.5 million from $531.3 million in FY 2007 and EBITDA jumped 11.7% year over year to $123.5 million from $110.6 million. Excluding losses from discontinued operations and other non-recurring charges, 2008 per-share net losses increased slightly to $0.08 from $0.07 last year. The main reason for the net loss was reduced sales from the cellulose fiber joint venture due to the housing market slowdown. Casella has provided FY 2009 guidance indicating expectations of at least 7% revenue growth and 5% EBITDA growth. Analysts think this company can produce 13% annual growth over the next five years. My $18 price target for Casella shares suggests a 39% premium over Tuesday's closing price of $12.97. Shares have ranged between $9.64 and $16.20 over the last 52 weeks.
American Ecology Corp. is an important player in the $2 billion North American hazardous waste remediation market and has been providing these services for over 50 years. The company cleans up radioactive, hazardous, PCB and industry waste for government clients, utilities, refineries, chemical plants, steel manufacturers and medical labs. American Ecology treats hazardous waste at four facilities located in Idaho, Washington State, Nevada and Texas. The company derives half of its revenues from discrete projects for waste brokers and private sector clients, 18% from recurring services to utilities and chemical manufacturers and 14% from federal cleanup projects. Project work is mainly event-driven and can vary substantially in size and duration but the company also has multi-year contracts with the U.S. Army Corp. of Engineers for hazardous waste cleanup and with Honeywell International (NYSE:HON) for treatment and disposal of 1.2 million tons of chromite ore processing residue. A court order requires Honeywell to complete this cleanup by November 2009. American Ecology also has long-term contracts for hazardous waste cleanup with several steel mills that provide a reliable revenue stream.
Well-established service providers such as American Ecology are benefiting from a tougher regulatory environment that has increased the cost of in-house hazardous waste cleanup and encourages outsourcing, as well as more stable pricing resulting from industry consolidation. Business Week magazine recently ranked American Ecology 12th on its annual list of hot growth companies. American Ecology recorded its third consecutive year of revenue and income growth in 2007 and is off to a strong start in 2008, with first-quarter (ended March 31) revenues up 19% year over year to $46.2 million from $39 million and per-share earnings up 19% to $0.32 from $0.27. Management recently issued new guidance indicating expectations for full-year 2008 per-share earnings at the high end of its $1.17 to $1.23 range and at least 10% higher than 2007 per-share earnings. An optimistic outlook is also suggested by the company's decision in May to boost cash dividends 20% to a $0.72 annual rate. Analysts predict American Ecology will produce 20% average annual growth over the next five years. My $35 price target for American Ecology Corp. is 17% above Tuesday's closing price of 29.99. Over the last 52 weeks, shares have ranged between $18.51 and $30.36.
Other potentially attractive stocks in the waste management space include: Waste Services, Inc. (Nasdaq:WSII), a provider of integrated waste management services to customers in the United States and Canada; Heritage-Crystal Clean, Inc. (Nasdaq:HCCI), a provider of hazardous waste cleanup services to small and mid-sized businesses; WCA Waste Corporation (Nasdaq:WCAA) an integrated waste management firm serving the southern and central United States, and Perma-Fix Environmental Services, Inc. (Nasdaq:PESI), a provider of nuclear waste management and consulting services.
Stocks Extend Losses As Oil Climbs.......
BY VINCENT MAO
Posted 6/27/2008
Stocks finished lower after a rocky session Friday, extending the previous day's carnage. The major indexes tried to rebound throughout the session, but another spike in oil trumped those efforts.
August crude settled at $140.21 a barrel, up 57 cents. The net change was incorrectly reported in an earlier update.
According to preliminary data, the Dow dropped 0.9%, falling further in its nearly two-year low. The S&P 500 lost 0.4%, the Nasdaq and NYSE composite 0.2% each.
For the week, the Dow tumbled 4%, the Nasdaq 4%, the S&P 500 3%, the NYSE composite 2%.
Volume was tracking lower for most of the session but finished sharply higher on both exchanges, due to the reconstitution of the Russell indexes.
Tel Offshore Trust (TELOZ) dived 10.92, or 27%, to 30.05 in more than eight times normal trade. It finished just below its 50-day moving average. The oil and gas royalty trust said that an outside auditor found errors in its books related to properties and payments to the trust. It also announced a second-quarter distribution of 55 cents per unit.
VMware (VMW) gapped down and sank 7.87, or 13%, to 51.05 with a big jump in volume. The maker of virtualization software stumbled on news that rival Microsoft (MSFT) had started selling its Hyper-V virtualization software about six weeks ahead of schedule. Microsoft shares slipped 0.09 to 27.66.
A-Power Energy Generation Systems (APWR) fell 1.55, or 6%, to 25.06 in nearly double its average trade. That marked the alternative power firm's fifth down day in the past six sessions. For the week, the stock tumbled 19%, erasing the lion's share of last week's gains.
On the bright side, gold shares shined as the metal rose $16.20 to $931.30 an ounce.
Compania de Minas Buenaventura (BVN) gapped up and rose 2.67 to 64.44 in almost double its average volume. But the stock failed to close above its 50-day moving average.
Goldcorp (GG) gapped up and gained 2.02, or 5%, to a new closing high of 46.36 in heavy trading.
Atwood Oceanics (ATW) vaulted 6.50, or 6%, to a record high of 120.03 in nearly four times average volume. The offshore driller followed through after clearing a 113.66 buy point from a flat base Thursday.
Strayer Education (STRA) jumped 11.95, or 6%, to a new high of 223.95. Volume surged to nearly five times average. The for-profit school operator reports earnings July 24. Earnings are slated to climb 23% to $1.47 a share.
3:15 p.m. Update: Stocks Fight Back As Crude Backs Off From High
Stocks bounced off new session lows late Friday after crude pulled back from a new high near $143 a barrel. Despite the comeback, the major stock indexes were on pace to end the week with sharp losses.
At 2:44 p.m. EDT, the Dow had dropped 0.8%, up from intraday lows of 1.4%. The Nasdaq was off 0.4%, the S&P 500 0.3%, the NYSE composite 0.1%.
Volume was tracking slightly lower across the board.
Crude gushed to a new milestone of $142.93 a barrel, but finished well off session highs. The August contract settled at $140.21 a barrel, up 57 cents.
Worthington Industries (WOR) gapped down and swooned 3.03, or 13%, to 21.08 in heavy trading. Longbow cut the metal processor to neutral from buy. On Thursday, the stock had jumped 9% intraday but finished only fractionally higher.
Clean Harbors (CLHB) lost 1 point to close at 72.61 after active trading. The hazardous waste firm pulled back for the third straight session after it hit a record high Tuesday. Shares are now 7% past a 68.07 buy point from a flat base.
Amazon.com (AMZN) gapped down, falling 2.47 to 73.83. The Internet retailer reports second-quarter earnings July 23. Profit is seen rising 37% to 26 cents a share.
On the upside, Mariner Energy (ME) jumped 1.64, or 5%, to 34.83 in fast trade. The oil and gas producer reversed earlier losses after finding support at its 50-day moving average. Earnings for the current quarter are expected to surge 195%.
China Medical Technologies (CMED) gained 1.45 to 46.69 in active trading. The maker of ultrasound products is quickly building the right side of a new base.
1:15 p.m. Update: Stocks Degrade In Midday Trade
The major stock indexes worsened in midday trading Friday as higher oil again weighed.
At 12:44 p.m. EDT, the Dow and Nasdaq had each shed 0.6%. The S&P 500 was down 0.2%. The NYSE composite turned flat after rising as much as 0.6%.
Turnover was still tracking lower across the board.
August crude rose 1.28 to $140.92 a barrel.
Tel Offshore Trust (TELOZ) swooned 10.24, or 26%, to 30.73 in huge trade. The oil and gas royalty trust said that an outside auditor found errors in its books related to properties and payments to the trust.
Abaxis (ABAX) dropped 2.02, or 7%, to 25.31 in brisk trading. The maker of portable blood analysis systems came under pressure for the sixth straight session. Last month, the firm missed earnings views for the third straight quarter.
Compania de Minas Buenaventura (BVN) gapped up, gaining 2.90 to 64.67 in fast trade. The Peruvian miner regained its 50-day moving average. Earnings growth zoomed to 455% in the latest reported quarter, from 23% two quarters ago. Profit is slated to rocket 973% in the current period.
August gold rallied $12.40 to $927.5 an ounce.
Fertilizer makers turned higher. Intrepid Potash (IPI) climbed 1.30 to 66.80. The stock rebounded from an earlier 6% loss.
Potash Corp. of Saskatchewan (POT) ramped up 7.93 to 227.13. Despite the rebound, the stock appears to be on pace to end a four-week win streak.
11:15 a.m. Update: Rebound Efforts Fade In Morning Trade
The major stock indexes turned decisively lower in morning trading Friday, as rebound efforts gave way.
At 10:55 a.m. EDT, the NYSE composite was up 0.1%, recouping a bit of Thursday's 2.5% loss. The Nasdaq dropped 0.6%, holding near session lows. The Dow shed 0.5%, extending its near two-year low. Meanwhile, S&P 500 slipped 0.1%.
Volume was tracking lower across the board.
Crude oil climbed $1.55 to $141.19. Oil hit $142.26 in electronic trading this morning.
Forest Oil (FST) jumped 4.09 to 73.85 in fast trade. Deutsche Bank upgraded shares of the oil producer to buy from hold, citing strong volume growth. The stock now sits 18 past a 62.70 buy point from a three-weeks-tight pattern.
Atwood Oceanics (ATW) added 2.68 to a new high of 116.21. The stock cleared a flat base on Thursday.
VMware (VMW) gapped down and slumped 4.27, or 7%, to 54.65 in heavy volume. The maker of virtualization software fell on news that rival Microsoft (MSFT) would start selling its own virtualization six weeks ahead of schedule.
Priceline.com (PCLN) lost 3.55 to 123.45 in brisk trade. It fell further south of its 50-day moving average. The stock's Accumulation/Distribution Rating has weakened to C- from B+ last month.
Amphenol (APH) gapped down and fell 0.53 to 45.01 in active trading. But the electrical products maker bounced off session lows of 44.10.
10:15 a.m. Update: Stocks Bounce A Bit In Early Trade
Stocks were slightly higher in volatile trading early Friday, recouping some of the prior session's heavy losses. The major indexes opened higher, quickly faded, then recovered.
At 10 a.m. EDT, the NYSE composite was up 0.5%, the S&P 0.2% and the Nasdaq 0.1%. The Dow was mostly unchanged.
Volume was tracking lower on both exchanges.
Crude oil continued to ease from new record highs. The August contract rose 48 cents to $140.12 a barrel.
MasterCard (MA) fell 5.61 to 270.12 in brisk trading, putting the credit card firm further south of its 50-day moving average. The stock's Accumulation/Distribution Rating has fallen to C+ from A+ at the beginning of the month.
Intrepid Potash (IPI) gave up 2.50 to 62.99 in heavy trading. It's on pace to end a four-week win streak. The recent IPO has more than doubled since its April debut.
On the upside, AZZ (AZZ) gapped up, surging 5.33, or 18% to 37.60 after it smashed views and raised guidance. Before the open, the electrical equipment maker delivered Q1 earnings of 82 cents a share, up 141% from a year earlier and 28 cents ahead of analysts' estimates. Sales grew 33% to $100 million, also above views.
AZZ lifted its full-year earnings outlook to a range of $2.95 to $3.05 a share vs. views of $2.43. Sales are pegged in a range of $410 million to $425 million, or above estimates of $400 million.
Gold issues again shined as the precious metal tacked on $5.30 to $920.40 an ounce. Barrick Gold (ABX) rose 1.71 to 44.75 and regained its 50-day moving average.
Goldcorp (GG) gained 1.75 to 46.09 in fast trade. The Canadian gold producer reports earnings July 31. Profit is slated to more than double to 25 cents a share.
9:15 a.m. Update: Stocks Poised For Split Open
Stock futures pointed to a mixed open Friday, as better-than-expected economic data offset some effects of another new high in crude oil.
Nasdaq futures dropped 5 points vs. fair value, or the value of an index adjusted for interest rates and dividends. S&P 500 futures lost a fraction of a point, while Dow futures slipped 5 points.
August crude oil rose to a new record high of $142.26 a barrel in electronic trading, but later pulled back to $140.52.
On Thursday, oil prices rose on a weak dollar and fears that Libya would cut production.
In economic news, personal income climbed 1.9% in May, the biggest gain since September 2005 and well above expectations for a 0.4% increase. Fueled by the government's economic stimulus checks, personal spending rose 0.8%, slightly above forecasts.
The PCE deflator, the Fed's favored inflation gauge, edged up 0.1%. That was cooler than estimates of 0.2%. On an year-over-year basis, the PCE is up 2.1%
Research In Motion (RIMM) fell 3% in the pre-market after Credit Suisse started coverage with an underperform rating. Shares of the BlackBerry smart phone maker tumbled more than 13% Thursday on weaker-than-expected earnings and sales.
Palm (PALM), which makes the Treo and Centro smart phones, slid 4% in the pre-open after it posted its third straight quarterly loss. Late Thursday the company reported a fiscal Q4 loss of 22 cents a share, down from a 17-cent profit the prior year and 4 cents below views.
Accenture (ACN) edged up 1% in the pre-open after it delivered better-than-expected results. After Thursday's close, the consulting firm posted fiscal Q3 earnings of 74 cents a share, up 37% from a year earlier and a nickel above views. Sales grew 19% to $6.6 billion, also above views. The company raised its full-year outlook to a range of $2.63 to $2.65 a share vs. views of $2.59.
AK Steel (AKS) rallied 4% in the pre-market on news that it would replace Countrywide Financial in the S&P 500. Countrywide is being acquired by Banc of America (BAC).
Americans look for ray of hope in economic gloom...
Gas and food are expensive, but Americans find flicker of sunshine in economic gloom.
Americans see a slice of sunlight for the economy, as a widely watched report Tuesday showed people are not as pessimistic about the future as they were a month ago.
The housing market is still falling, but so have gas prices -- at least a little -- and that was enough to spark a little hope amid the deepest economic gloom in 16 years.
But economists warn that the slight uptick, which reverses a six-month slide since January, is likely to be only temporary and doesn't signal the beginning of a rally.
The Conference Board said Tuesday that its Consumer Confidence Index stands at 51.9 for July -- about half of what it was a year ago and still the lowest since the index registered 54.6 in October 1992, when the economy was coming out of a recession.
But the reading was slightly higher than the revised 51.0 level for June and a bit better than the 50 economists expected. Still, economists were cautious.
"The rebate checks have just been spent," said Bernard Baumohl, managing director of The Economic Outlook Group. "This is hardly the backdrop normally associated with a rebound in consumer confidence. What we'll see at best is a bounce around at these low levels for the next six to nine months. We are not going to get an improvement unless we get an improvement in housing and the job market sectors."
In fact, Baumohl believes that the odds of a recession this year have increased, citing the fading benefits of the federal stimulus checks, deteriorating household wealth and the slowdown of foreign economies.
There was more bad news about housing Tuesday. Home prices tumbled by the steepest rate ever in May, according to a closely monitored index. Prices dropped by 15.8 percent, according to the S&P/Case-Shiller 20-city index. The narrower 10-city index plunged 16.9 percent, its biggest decline in its 21-year history.
Stocks, however, rebounded a day after their steep tumble, as investors latched on to a drop in oil prices and the rise in confidence. The Dow Jones industrial average rose more than 188 points.
Economists and investors closely monitor sentiment since consumer spending represents about two-thirds of all economic activity. The tax rebates helped lift retail sales in May and June, but those benefits have faded, and analysts worry about whether shoppers will have extra money to spend on clothing and other nonessentials in the important back-to-school season.
Baumohl noted that while a slight decline in gas prices has a psychological impact on consumers, whether they will fall more is uncertain. The latest national survey shows gas prices have dropped a fraction below the $4-dollar mark. The average price of regular gasoline at self-serve stations was $3.996 a gallon Friday, according to the Lundberg Survey of 7,000 gas stations nationwide, released Sunday. Prices are at their lowest level since May 16, but the survey showed that the average U.S. price is $1.11 higher than it was a year ago.
The Conference Board's Present Situation Index, which measures shoppers' current assessment of the economy, was virtually flat at 65.3, compared to 65.4 in June, But the Expectations Index, which measures their outlook over the next six months, increased a bit to 43.0 from 41.4.
"Consumers' assessment of current conditions was little changed, suggesting there has been no significant improvement, nor significant deterioration, in business or labor market conditions," said Lynn Franco, director of The Conference Board Consumer Research Center, in a statement.
She added, however, that while people remain grim about short-term prospects, the modest improvement in their outlook provides some glimmer of hope. The slight improvement in the outlook "bears careful watching over the next few months," she said.
Economists are also keeping watch on the job market, since job security is key to consumers' confidence and willingness to spend. Cautious employers, uncertain about the economy and their own prospects, have cut jobs each month so far this year. Economists are bracing for more job losses when the government releases the employment report for July on Friday.
The Consumer Confidence report -- derived from responses received through July 22 of a representative sample of 5,000 U.S. households -- also showed that consumers' worries about business conditions and jobs aren't going away.
Those saying jobs are "hard to get" edged up, while those claiming jobs are "plentiful" declined. Those expecting fewer jobs in the months ahead increased, while those anticipating more jobs remained flat.
The Consumer Confidence survey has a margin of error of plus or minus 2.5 percentage points.
NYSE Market Movers...
This table shows the 30 most active NYSE-listed issues by volume
NASDAQ Market Movers...
This table shows the 10 most active Nasdaq-listed issues by volume
Unusual Volume for NASDAQ Stocks.......
Up on Unusual Volume
Stocks to watch Tuesday.......
HSYN - Volume Alert
Global Ecology Corporation has obtained exclusive rights to several EPA-approved technologies in the water treatment and soil remediation fields. This proprietary technology helps reduce algae, bottom sludge and harmful bacteria and is able to provide "green" and if needed, transportable methods to recover the usability of water, soil and land
NTRZ - Momentum
NutraCea (OTC Bulletin Board: NTRZ - News) is a world leader in the stabilization of rice bran. The Company applies its proprietary and patented technologies during the rice-milling process to stabilize the rice bran, which it then uses to manufacture ingredients and products that it distributes to a growing roster of customers around the world.
FBTX - Momentum
Franklin Bank Corp. operates as the bank holding company for Franklin Bank, S.S.B., a savings bank that provides community banking products and services.
Outstanding performers ripe for inclusion in your portfolio or watch list.
It's one-stop shopping....... ;D :D ;)
Is a compilation of lists of stocks currently undergoing one of 34 technical or fundamental events likely to affect stock price.
CMVT.PK - Volume Alert...
Comverse is the world's leading provider of software and systems enabling network-based messaging and content value-added services, prepaid, postpaid and converged billing and IP communications.
MDIN.OB - Volume Alert...
Med Gen Inc. in business since 1996, manufactures and markets specialty products using its proprietary delivery system. It is best known for producing the world's first patented liquid spray snoring relief formula, Snorenz.
EVSO.PK - News...
Evolution Solar joins Solar Electric Power Association.
http://biz.yahoo.com/bw/080807/20080807005711.html?.v=1
Weekly Wrap
The dollar rallied, oil prices plummeted and stocks soared. That is the simple summation of the week, yet it fails to capture some important subplots that spurred that action.
In terms of the dollar, it enjoyed a sharp reversal of its sagging fortune as traders unwound what had been an easy money, long trade in the euro. Their inclination for doing so has taken root in recent weeks with inflation pressures picking up in the U.S. and economic growth slowing down in Europe.
The assumption that the Fed is more inclined to raise interest rates helped drive some dollar buying ahead of Tuesday's FOMC meeting. As it so happened, the FOMC elected to leave the fed funds rate unchanged at 2.00% and provided a policy directive that left market participants inclined to think there won't be a tightening anytime soon.
The latter realization didn't weigh on the dollar. In fact, the greenback picked up momentum through the remainder of the week following an acknowledgment of weakening growth in the Euro zone by ECB President Trichet that prompted traders to think the ECB wouldn't be hiking rates further to fight inflation.
Support for the euro was pulled on this view and was transferred to the depressed dollar, which gained 3.3% against a basket of other major currencies.
The dollar's rally factored heavily in knocking down dollar-denominated commodity prices. Crude futures, understandably, garnered the most attention in the commodity selloff given the linkage they have to the macro economy.
Crude prices declined 7.9% for the week at Friday's settlement to $115.20 per barrel. They are now down 22% from the high they hit July 11.
As to be expected, the continued declines factored favorably for the market in general and for the transportation and retail stocks in particular. Transports on the week surged 5.4% while the S&P Retailing Index rallied 9.0% despite a battery of same-store sales results for July that were deemed by the market to be on the disappointing side of things.
The consumer discretionary sector was the best-performing sector for the week. It gained 7.7%. The energy sector (-4.0%) and the materials sector (-2.0%), meanwhile, were at the end of the performance table.
There were some striking moves in a number of areas throughout the week. The most striking move, arguably, was the one made by the financial sector.
Government sponsored enterprises Freddie Mac (FRE) and Fannie Mae (FNM) both reported huge quarterly losses, as did Dow component AIG (AIG). Although the stock of each of these companies was beaten back in material fashion following their reports, the financial sector held its ground for the most part.
Although rattled for a bit Thursday after Citigroup (C) agreed to settle allegations of misrepresentation in the marketing of auction rate securities and an indication from Moody's that it has placed American Express' (AXP) A1 rating on review for downgrade, the sector quickly regrouped and put in a strong showing Friday. The end result is that the financial sector added 1.0% for the week and is up 30% from its July 15 low.
The financial sector's relative strength in the face of bad news kept alive a buy-the-dip mentality. A reassuring earnings report and outlook from tech bellwether Cisco (CSCO) helped support that thinking, too, and proved instrumental in the tech sector's outperformance. Cisco's stock increased 10% for the week while the tech sector increased 6.0%.
The economic data seen during the week was mixed. Personal income and spending for June was better than expected, but the price deflator provided a negative surprise. The inflation fears were tempered, though, in the wake of the FOMC decision and with commodity prices continuing their decline. The ISM Services and Pending Home Sales reports also brought better than expected results.
Friday's report on Q2 productivity provided more encouraging inflation news when it was reported unit labor costs rose just 1.3% from the first quarter. That was a slower rate of increase than seen in the prior two quarters.
Weekly initial claims, however, were anything but good. They jumped to 455,000, which moved the 4-week moving average to 419,500 from 392,750. That is the highest 4-week average since July 12, 2003. Continuing claims increased 0.9% to 3.311 million.
The claims trend is a worrisome development that bears close watching. It reflects weakening conditions in the labor market that could impact consumer spending activity. That said, we would note that the 4-week moving average stood above 400K for 29 straight weeks in 2003, yet real GDP gains continued at a moderate pace throughout that year.
With this week's gain, the S&P 500 is up 8.0% from its July 15 low. It's not a stretch to think it is due for a consolidation period of some sort, particularly since there hasn't been any real new money driving the gains.
To the latter point, the level of assets in money market funds has actually increased 1.8% since July 16 to $3.56 trillion. This indicates there is still a lot of buying power on the sidelines, which can be read as a bullish development. At the same time, though, the increase in money market fund assets in the midst of this rally suggests investors, overall, are still in a capital preservation mode.
DALLAS, Dec 31, 2008 (BUSINESS WIRE) -- For the fourth quarter and for the year 2008, the Halter USX China Index (HXC) was down 23.08% and 56.67% respectively. During the same period (fourth quarter and year end), the Dow Jones Industrial Average decreased by 19.12% and 33.84% respectively, while the NASDAQ finished down 24.27% and 40.54%.
HXC is also pleased to announce the inclusion of 16 new constituents to its existing index of China-focused, U.S. listed companies including: Advanced Battery Technologies, Inc. (ABAT, Trade) designs, manufactures, and markets rechargeable polymer lithium-ion (PLI) batteries; AirMedia Group, Inc (AMCN, Trade) operates digital media network in China for air travel advertising; A-Power Energy Generation Systems (APWR, Trade) designs, constructs, and tests distributed power generation and micro power grids; ATA, Inc. (ATAI, Trade) provides computer-based testing services; BMP Sunstone Corporation (BJGP, Trade) operates as a pharmaceutical and over-the-counter manufacturing, marketing, and distribution company; China Architectural Engineering (CAEI, Trade) engages in the design, manufacturing, installation, and maintenance of structural glass and light structure building; China INSOnline Corp. (CHIO, Trade) operates as an Internet service and media company; China Natural Resources, Inc. (CHNR, Trade) engages in the exploration, mining, and development of zinc, iron, and other minerals; China Precision Steel, Inc. (CPSL, Trade) engages in the manufacture and sale of high precision cold-rolled steel products; AgFeed Industries, Inc. (FEED, Trade) engages in the research and development, manufacture, marketing, and sale of fodder and blended feed; HLS Systems International, Ltd. (HOLI, Trade) designs, develops, produces, sells, installs, and maintains automation and control equipment and systems; Harbin Electric, Inc. (HRBN, Trade) develops, engineers, manufactures, and sells customized linear motors, motor/controller automation systems, automobile specialty micro-motors, and other special motors; Jinpan International Limited (JST, Trade) engages in the design, manufacture, and sale of cast resin transformers for voltage distribution equipment; and Vimicro International Corp. (NASDAQ; VIMC) designs, develops, and markets semiconductor products and solutions.
It was also announced that China Techfaith Wireless Communication Technology Limited (CNTF, Trade), Origin Agritech Limited (SEED, Trade), Spreadtrum Communications Inc. (SPRD, Trade), Hurray! Holding Co., Ltd. (HRAY, Trade), Webzen Inc. (WZEN, Trade), China Housing & Land Development, Inc. (CHLN, Trade), China Direct, Inc (NASDAQ: CDSDD), SORL Auto Parts, Inc (SORL, Trade), Ninetowns Internet Technology Group Company Ltd. (NINE, Trade), Linktone Ltd (LTON, Trade), HSW International, Inc. (HSWI, Trade), and Deswell Industries Inc (DSWL, Trade) were removed from the Index.
About the Halter USX China Index
The Index, created by the Halter Financial Group and calculated and distributed by the Amex, is comprised of companies whose common stock is publicly traded in the United States and the majority of whose business is conducted within the People's Republic of China. The Halter USX China Index was created in response to the unique economic opportunities taking place in China, as well as the current dynamics in the United States capital markets. While there is strong demand for Chinese equity, U.S. investors still seek and prefer the transparency offered with a U.S. listing. For a company to be included in the Halter USX China Index it must conduct a majority of its business in China, maintain an average market cap of over $50 million for the preceding 40 trading days, trade on the NYSE, Amex or NASDAQ and be approved by USX Selection Committee. Investors can gain exposure to the Index by either investing in an exchange traded fund (ETF), the PowerShares Golden Dragon Halter USX China Portfolio (DSWL, Trade) or by purchasing an actively managed mutual fund, the Halter Pope USX China Fund (Symbol: HPCHX). For more information please visit www.usxchinaindex.com. The following 104 public companies currently comprise the Halter USX China Index:
3SBio, Inc. (SSRX)
51 Job, Inc. (JOBS)
Acorn International, Inc. (ATV)
Actions Semiconductor Co (ACTS)
Advanced Battery Technologies, Inc. (ABAT)
AgFeed Industries, Inc. (FEED)
Agria Corp. (GRO)
AirMedia Group, Inc (AMCN)
Aluminum Corp. of China Ltd. (ACH)
American Dairy, Inc (ADY)
A-Power Energy Generation Systems (APWR)
AsiaInfo Holdings, Inc. (ASIA)
ATA, Inc. (ATAI)
Baidu.com, Inc. (BIDU)
BMP Sunstone Corporation (BJGP)
Canadian Solar, Inc. (CSIQ)
CDC Corp (CHINA)
China Architectural Engineering (CAEI)
China Automotive Systems Inc (CAAS)
China BAK Battery, Inc. (CBAK)
China Digital TV Holdings Co., LTD. (STV)
China Eastern Airlines Corporation Ltd. (CEA)
China Finance Online (JRJC)
China Fire & Security Group (CFSG)
China Information Security Technology, Inc (CPBY)
China INSOnline Corp. (CHIO)
China Life Insurance Co Ltd (LFC)
China Medical Technologies, Inc. (CMED)
China Mobile Hong Kong Ltd. (CHL)
China National Offshore Oil Corp. (CEO)
China Natural Resources, Inc. (CHNR)
China Nepstar Chain Drugstore Ltd. (NPD)
China Unicom Ltd. (CHU)
China Petroleum and Chemical Corp (Sinopec) (SNP)
China Precision Steel, Inc. (CPSL)
China Security & Surveillance Technology, Inc. (CSR)
China Sky One Medical, Inc. (CSKI)
China Southern Airlines Company Ltd. (ZNH)
China Sunergy Co. Ltd. (CSUN)
China Telecom Corporation Ltd (CHA)
China Unicom Ltd (CHU)
China Yuchai International Ltd. (CYD)
ChinaCast Education Corp. (CAST)
ChinaEdu Corp. (CEDU)
Chindex International Inc (CHDX)
Cninsure, Inc. (CIS)
Cogo Group, Inc. (COGO)
Ctrip.com (CTRP)
E-House (China) Holdings Limited (EJ)
eLong (LONG)
Focus Media Holding Ltd. (NASDAQNM: FMCN)
Fuqi International, Inc. (FUQI)
Fushi International, Inc (FSIN)
General Steel Holdings, Inc. (GSI)
Giant Interactive Group, Inc. (GA)
Global Sources Ltd (GSOL)
Guangshen Railway Co Ltd (GSH)
Gushan Environmental Energy Ltd. (GU)
Harbin Electric, Inc. (HRBN)
HLS Systems International, Ltd. (HOLI)
Home Inns & Hotels Management, Inc. (HMIN)
HuaNeng Power International, Inc. (HNP)
JA Solar Holdings (JASO)
Jinpan International Limited (NASDAQ; JST)
KongZhong Corporation (KONG)
LDK Solar Co. Ltd. (LDK)
Longtop Financial Technologies Limited (LFT)
Medical International Limited (MR)
Nam Tai Electronics Inc (NTE)
Netease.com, Inc. (NTES)
New Oriental Education & Technology Group, Inc. (EDU)
Noah Education Holdings, Ltd. (NED)
Perfect World Co., Ltd. (PWRD)
PetroChina Co. Ltd. (PTR)
Qiao Xing Mobile Com (QXM)
Qiao Xing Universal Telephone, Inc. (XING)
Semiconductor Manufacturing International Corp (SMI)
Shanda Interactive Entertainment Ltd (SNDA)
Shengdatech Inc (SDTH)
Simcere Pharmaceutical Group (SCR)
Sina Corporation (SINA)
Sinopec Shanghai Petrochemcial Co. Ltd. (SHI)
Sinovac Biotech, Ltd. (SVA)
Sohu.com, Inc. (SOHU)
Solarfun Power Holdings Co., Ltd. (SOLF)
Suntech Power Holdings Co. Ltd. (STP)
Sutor Technology Group, Ltd. (SUTR)
The9 Limited (NCTY)
Tiens Biotech Group (TBV)
Tongjitang Chinese Medicines (TCM)
Trina Solar Limited (TSL)
UTStarcom Inc (UTSI)
Vimicro International Corp. (NASDAQ; VIMC)
VisionChina Media Inc. (VISN)
Wonder Automotive Technology, Inc. (WATG)
WSP Holdings Ltd. (WH)
Wuhan General Group (China), Inc. (WUHN)
WuXi Pharma Tech (Caymen) Inc. (WX)
Xinhua Finance Media Limited (XFML)
Xinyuan Real Estate Company Ltd. (XIN)
Yanzhou Coal Mining Co. Ltd. (YZC)
Yingli Green Energy Holdings Co. Ltd. (YGE)
Yucheng Technologies Limited (YTEC)
Zhongpin, Inc. (HOGS)
The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties.
SOURCE: Halter USX China Index
Halter USX China Index
Chelsea Augustine, 972-233-0300
Copyright Business Wire 2008
MONTREAL, Jan 07, 2009 /PRNewswire via COMTEX/ -- XplosiveStocks.com is pleased to offer a hot stock alerts service. Investors can receive FREE Stock Alerts by visiting the following link: http://www.xplosivestocks.com
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Indie Research
Stem Cell Enthusiasm Grows; The Pros Like Cytori (CYTX)
Tuesday January 27, 9:35 am ET
By the tickerspy.com Staff
There has long been a lot of hype surrounding the embryonic stem cell industry. Proponents of the therapy believe that the embryonic cells hold great promise, but advances have been stymied by rules put in place by the Bush administration.
Recently, however, biotech stocks focusing on stem cell research have surged higher on speculation that the Obama administration may soon lift stem cell restrictions. In addition, stem cell leader Geron (Nasdaq: GERN) received approval last week from the FDA to begin human trials on an embryonic stem cell-based treatment for spinal cord injuries. It will be the first human trial for stem cell therapy. Add it all up, and investors are suddenly interested in stem cell stocks again.
Because stem cell therapy is still such a young and unproven field, only a few Pro investors have exposure to the handful of stem cell pure plays. Among them is investment advisor P.R. Herzig, where portfolio managers describe themselves as "careful opportunists" and "contrarians by nature," according to the company website. At the end of Q3, the firm held a stake in Geron. A list of the other stocks among Herzig's top holdings is available at tickerspy.com.
Meanwhile, three Pro investors counted Cytori Therapeutics (Nasdaq: CYTX) among their top top-15, U.S.-listed equity holdings. Cytori makes devices that extract tissue and separate out stem cells.
tickerspy members are tracking stem cell stocks as well. The most popular stem cell stock among tickerspy members is StemCells (Nasdaq: STEM). Also popular are Aastrom Biosciences (Nasdaq: ASTM), Osiris (Nasdaq: OSIR), Neuralstem (AMEX: CUR), ThermoGenesis (Nasdaq: KOOL), Pluristem Therapeutics (Nasdaq: PSTI), and Opexa Therapeutics (Nasdaq: OPXA).
Pro portfolio performance is based on institutions' top-15 holdings as disclosed in quarter-end filings with the SEC. Pro performance does not take into account additional holdings beyond the top 15 nor does it include positions that are not required to be disclosed by the SEC. As such, Pro portfolio performance should be considered an approximation and not a precise record of how an institution has performed over time.
Fun and informative, tickerspy.com is a free investing website where you can track multiple stock portfolios, find and share the latest news about the companies you follow, and discuss stocks with other like-minded investors. Best of all, tickerspy.com lets you spy on the portfolios of nearly 3,000 Wall Street institutions and hedge funds and see graphs of their performance. Try tickerspy.com today and find out how you stack up against investing legends like Warren Buffett!
52wk Range: 1.76 - 8.56
Volume: 474,314
Avg Vol (3m): 139,471
Technicals
Last Price Quote is:
24.40%above 13-day MA
36.88%above 50-day MA
RS Rating: N/A
Fundamentals
Key Data:
Market Cap (M): $143.94
P/E Ratio: N/A
PEG Ratio: N/A
Next Earnings: 03/04/2009
Last Analyst Rating: Mkt Outperform
NAGOYA, Japan, Jan 30, 2009 (BUSINESS WIRE) -- Cytori (CYTX, Trade) announced that the first patient was enrolled in an investigator-initiated safety and feasibility study using adipose-derived stem and regenerative cells to treat stress urinary incontinence. The 10-patient study is being conducted independently by Nagoya University Hospital in Japan. Cytori's Celution(R) 800 System is being used to process and extract the patients' own adipose tissue-derived stem and regenerative cells at the time of surgery.
"The Celution System is uniquely able to provide real-time access to clinical grade stem and regenerative cells to meet the growing demand Cytori is seeing from physicians seeking regenerative medicine-based treatments," said Seijiro Shirahama, President, Cytori Asia Pacific. "As a result, hospitals are increasingly interested in a Celution purchase to fill this need in the marketplace. This demand is partially reflected in the seven investigator-initiated clinical studies taking place in Japan which use the Celution System."
As part of the study, stem cells were injected intra-muscularly into the sphincter as well as in combination with a measured volume of the patient's own fat tissue to create a bulking agent to support the urethra. The study will evaluate safety, functional endpoints including intraurethral pressure and leak point pressure, as well as subjective assessments of patient and physician satisfaction. Current treatments include use of collagen as a bulking agent to provide pressure against and support the urethra.
"There are a growing number of scientific publications that show adipose derived stem and regenerative cells can ameliorate urinary incontinence," said Momokazu Gotoh, M.D., Ph.D., Professor and Chairman, Department of Urology, Nagoya University Graduate School of Medicine. "Celution is the only feasible way to derive the cells in a clinically practical manner. This first case could not have gone better and the Celution System performed flawlessly."
Stress urinary incontinence can have a significant impact on a patient's quality of life, resulting in involuntary release of urine due a weakened urethral sphincter. The condition is more common in women and often comes about following child birth or menopause. It is estimated that approximately 9 million people in Japan, and more than 13 million women in the U.S., are affected by stress urinary incontinence.
About Cytori
Cytori's (CYTX, Trade) goal is to be the global leader in regenerative medicine. The company is dedicated to providing patients with new options for reconstructive surgery, developing treatments for cardiovascular disease, and banking patients' adult stem and regenerative cells. The Celution(R) 800 System is being introduced in Europe into the reconstructive surgery market while the Celution(R) 900 System is being commercialized globally for cryopreserving a patient's own stem and regenerative cells. Clinical trials are ongoing in cardiovascular disease and planned for spinal disc degeneration, gastrointestinal disorders, and other unmet medical needs. www.cytoritx.com
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking statements regarding events, trends and business prospects, which may affect our future operating results and financial position. Such statements are subject to risks and uncertainties that could cause our actual results and financial position to differ materially. Some of these risks and uncertainties include our history of operating losses, the need for further financing, regulatory uncertainties regarding the collection and results of, clinical data, dependence on third party performance, and other risks and uncertainties described under the "Risk Factors" in Cytori's Securities and Exchange Commission Filings. We assume no responsibility to update or revise any forward-looking statements to reflect events, trends or circumstances after the date they are made.
SOURCE: Cytori
Cytori Therapeutics
Tom Baker
Direct: 858-875-5258
[email protected] Copyright Business Wire 2009
US Earnings Calendar for February 4, 2009
Earnings Announcements for Wednesday, February 4
http://biz.yahoo.com/research/earncal/20090204.html?t=kool
AP
New jobless claims jump more than expected to 626K
Thursday February 5, 2:20 pm ET
By Christopher S. Rugaber, AP Economics Writer
Initial jobless claims surge more than expected to 626,000, while factory orders drop
WASHINGTON (AP) -- New jobless claims jumped far more than expected last week in an already dismal labor market, and there's no relief in sight for workers as mass layoffs persist.
The Labor Department reported Thursday that the number of newly jobless workers seeking benefits rose last week to a seasonally adjusted 626,000, from the previous week's upwardly revised figure of 591,000. The latest total is far more than analysts' expectations of 583,000.
That's also the highest since October 1982, when the economy was in a steep recession, though the work force has grown by about half since then.
The numbers reflect the large spate of layoffs announced last month by companies from all sectors of the economy, including Caterpillar Inc., Pfizer Inc. and Microsoft Corp. The layoffs continued Thursday with cosmetics maker Estee Lauder Cos. saying its fiscal second-quarter profit fell 30 percent and it plans to begin a four-year restructuring plan that will include cutting 2,000 staffers, or 6 percent of the work force. The company will also continue its hiring freeze.
Economists expect the government to issue a grim report Friday that will show the unemployment rate rose to 7.5 percent in January, up from 7.2 percent in December. That would be the highest rate in 17 years.
The housing slump and financial crisis have hammered spending by businesses and consumers, sending the economy into a recession that is expected to continue until at least the second half of this year.
The recession's impact was visible in other economic data Thursday. Factory orders fell by 3.9 percent in December, the Commerce Department said, a record fifth straight drop.
For all of 2008, orders for everything from autos to computers to food rose by only 0.4 percent, the weakest showing since orders actually fell by 1.8 percent in 2002.
Meanwhile, many retailers reported dismal January sales. The malaise crossed the spectrum of retailing, from department store chains to teen clothing chains.
Wet Seal Inc., Stage Stores Inc. and Children's Place Retail Stores Inc. were among those posting deeper-than-expected sales declines.
Wal-Mart Stores Inc., the world's largest retailer, was a notable exception, reporting sales that beat Wall Street's forecast, as shoppers continued to focus on necessities like groceries.
Wall Street reversed early losses and showed gains in afternoon trading. The Dow Jones industrial average added 110 points and broader stock indicators also rose.
Laid-off workers are having a harder time landing new jobs as companies impose hiring freezes in addition to job cuts.
The number of people that remained on the unemployment compensation rolls increased slightly to nearly 4.8 million, the Labor Department said, most since records began in 1967. The continuing claims data lags the number of new claims by one week.
As a proportion of the work force, the number of people receiving unemployment benefits is at the highest level since August 1982. But that doesn't include an additional 1.7 million people receiving unemployment insurance through an extension of benefits Congress approved last year, which brings the total to about 6.5 million.
The extension provides up to 33 additional weeks of benefits, on top of the 26 weeks typically provided by states.
The Labor Department said in a separate report that productivity rose at an annual rate of 3.2 percent in the final three months of last year, far above the 1.1 percent rise that economists had expected.
Productivity, which is the amount of output per hour of work, jumped because the number of hours worked during the period plunged faster than output declined. That reflected the massive wave of layoffs that occurred during the fourth quarter.
Unit labor costs, meanwhile, edged up at a 1.8 percent annual rate, far lower than the 2.9 percent rise that had been forecast. The results underscored how the deepening recession has removed the threat of inflation.
But more mass layoffs were announced this week. On Wednesday, Botox maker Allergan Inc. and Time Warner Inc.'s cable division announced large job cuts. A day earlier, PNC Financial Services Group, airplane maker Hawker Beechcraft Corp., Liz Claiborne Inc., King Pharmaceuticals Inc. and aerospace company Rockwell Collins Inc. announced layoffs. General Motors Corp., meanwhile, said it will offer buyouts to all of its hourly workers.
Macy's Inc. said Monday that it would eliminate 7,00 jobs.
Associated Press Writers Martin Crutsinger and Anne D'Innocenzio contributed to this report.
Four Stocks Near 52-Week Highs
U.S. Preview...
Global stocks and commodity prices are sharply higher this morning as G-20 members convening in London are optimistic that the worst of the global recession may be over. The European DJ Stoxx 50 this morning is up +3.67% and June S&Ps are up +15.20 points (+1.88%). The Asia-Pacific stock markets today closed sharply higher with Japan (+4.40%), Hong Kong (+7.41%), Chona (+1.11%), Taiwan (+3.00%), Australia (+2.81%), Singapore (+5.94%), South Korea (+3.56%), India (+4.51%). Leaders of the Group of 20 nations signaled they will endorse more cash for the IMF, seek to revive trade finance and put forth initiatives to rein in toxic assets, hedge funds, derivatives trading and excessive risk-taking by financial firms. Also boosting global financial stocks today is the action by the US Financial Accounting Standards Board to hold a final vote today on an overhaul of accounting rules that may increase profits at banks by more than 20%. The proposed changes to mark-to-market accounting, would allow companies to use "significant judgement" in valuing assets and reduce the amount of writedowns they must take on impaired investments, including mortgage-backed securities.
Unemployment claims – Today's weekly initial unemployment claims report is expected to show a small decline of -2,000 to 650,000 following last week's increase of +8,000 to 652,000. Meanwhile, weekly continuing claims are expected to rise another +20,000 to 5.580 million, adding to last week's surge of +122,000 to 5.560 million. Initial unemployment claims last week were just slightly below the 26-year high of 657,000 posted in the week ended March 6. However, initial claims have been moving basically sideways in the past several weeks, leading to some hope that the high rate of layoffs will not get much worse. At some point, businesses will have laid off as many employees as they believe are necessary to survive the recession and the level of layoffs will start to decline. The number of people receiving unemployment benefits, however, continues to soar. Last week's level was a record high for the series, which has a long history back to 1967. Regarding the labor market, traders are looking ahead to Friday's March unemployment report. March payrolls are expected to show another sharp decline of –658,000, adding to February's decline of –651,000. The March unemployment rate is expected to rise sharply by +0.4 points to a new 25-year high of 8.5%.
Factory orders – Today's Feb factory orders report is expected to show an increase of +1.4%, reversing part of January's decline of –1.9%. On a year-on-year basis, factory orders in January plunged by –19.2%, which was just above December's record low of –19.5% (the history of the factory orders series goes back to 1956). Expectations for an increase in Feb factory orders are based on the recently-released Feb durable goods orders report of +3.4% overall and +3.9% ex-transportation, which was much stronger than the market consensus at the time for a decline of –2.5% overall and –2.0% ex-transportation. The US manufacturing sector is in dire need of new orders to prevent even more layoffs and plant shutdowns. Wednesday's March ISM manufacturing index showed a stronger-than-expected increase of +0.5 points to 36.3, pushing the index farther above the 28-year low of 32.9 posted in December. The ISM index suggested that manufacturing executives are a little less pessim istic than they were in the past several months, although the very low index of 36.3 still indicates that US manufacturing sector is in a deep contraction.
Overnight U.S. Stock News...
June S&Ps this morning are up +15.20 points as optimism rises that the worst of the global recession may be over. The US stock market yesterday overcame early weakness and moved higher after mid-morning to finish the day with decent gains (Dow +2.01%, S&P 500 +1.66%, Nasdaq Composite +1.51%).
Bullish factors for stock prices yesterday included (1) a rally in homebuilders after the unexpected rise in US Feb pending home sales, (2) strength in industrial companies after the Mar ISM manufacturing index came in higher than expected, (3) a rally in bank stocks after comments from Treasury Secretary Geithner that there are "encouraging signs" that financial markets are recovering, and (4) a continued improvement in interbank lending rates after the 3-month dollar Libor rate fell to a 2-month low and the TED spread narrowed to a 1-month low.
Bearish factors for stock prices yesterday included (1) the largest monthly loss of jobs in the Mar ADP employment change since data began in 2001, which may signal a weaker-than-expected Mar nonfarm payrolls report on Friday, (2) an increased likelihood that General Motors and Chrysler will fall into bankruptcy on reports that President Obama believes a quick, negotiated bankruptcy is the most likely way for GM to restructure and become viable again, and (3) comments from Dallas Fed President Fisher that the economy's performance will probably gradually begin "getting less worse as we go through the year," and that positive growth won't happen until 2010.
Dow Chemical (DOW) is up 7% in European trading after the biggest US chemicals maker agreed to sell its Morton Salt unit to K+S AG, Europe's largest salt maker, for $1.68 billion in cash to help finance its acquisition of Rohm & Haas
Today's U.S. Market Focus...
June 10-year T-notes this morning are down -17.5 ticks as the sharp rally in global stock markets reduces demand for the safety of Treasuries. June T-note prices yesterday moved higher for the third straight day and closed up +6.5 ticks at a 1-week high. Bullish factors for T-note prices yesterday included (1) the largest monthly loss of jobs in the Mar ADP employment change since the data series began in 2001 (-742,000 versus expectations of -663,000), (2) a benign US inflation outlook after the prices paid sub-index of the Mar ISM manufacturing index rose half as much as expected (+2.0 to 31.0 versus expectations of +4.0 to 33.0), and (3) the Fed's purchase of $6 billion in Treasuries as part of its ongoing quantitative easing campaign. Bearish factors for T-note prices yesterday included (1) the unexpected rise in US Feb pending home sales (+2.1% versus expectations of no change), (2) reduced safe-haven demand for Treasuries as the stock market rallied, (3) the co ntinued thaw in interbank lending rates as the 3-month dollar Libor rate fell to a 2-month low of 1.18% and the Ted spread, the gap between what banks and the Treasury pay to borrow money for 3-months, narrowed to a 1-month low of 97 basis points, and (4) comments from Treasury Secretary Geithner that there are "encouraging signs" that financial markets are recovering.
The dollar index is weaker this morning with the dollar/yen +0.98 yen and the euro/dollar +1.00 cent. The dollar index yesterday finished with slight gains. Bullish factors for the dollar yesterday included (1) the drop in the yen to a 3-1/2 week low against the dollar after Japan's Q1 Tankan large manufacturers' sentiment survey tumbled to the lowest level since the survey began in 1974, (2) the jump in the Feb Euro-Zone unemployment rate to a near 3-year high, and (3) comments from ECB Council member Kranjec that he doesn't see any signs of an imminent economic recovery in the Euro-Zone. Bearish factors for the dollar yesterday included (1) the biggest monthly loss of jobs in the Mar ADP employment change (-742,000) since the data series began in 2001, and (2) the prediction from Daiwa Institute of Research that the euro will strengthen against the dollar to $1.45 by year-end as the ECB is unlikely to match the Fed's aggressiveness in printing money.
May crude oil prices this morning are up +$2.84 a barrel and May gasoline is +5.03 cents a gallon. Crude oil along with other commodities are receiving a boost today on signs the world economy is stabilizing which would increase overall demand. May crude oil prices yesterday moved lower and closed down -$1.27 a barrel and May gasoline closed -4.96 cents a gallon. May crude oil and May gasoline both posted 2-week lows yesterday. Bearish factors for crude oil prices yesterday included (1) the stronger dollar, (2) the +2.84 million bbl climb in the weekly DOE crude oil inventories to a 15-1/2 year high of 359.4 million bbl, (3) the unexpected rise in weekly DOE gasoline and distillate inventories (gasoline +2.23 million bbl versus expectations of a -1.5 million bbl drawdown and distillates +221,000 bbl versus expectations of a -1.5 million bbl drop), and (4) the declinei of US average fuel demand over the past four weeks of 18.9 million bpd of -4.4% y/y, the lowest cons umption level for a four-week period since October. Bullish factors for crude oil prices yesterday included (1) the rally in the stock market, stoking optimism that an improving economy will boost energy demand, and (2) PetroLogistics's cut in its OPEC-11 Mar crude oil supply estimate to 25.5 million bpd from 25.9 million bpd.
5 Stocks Bucking the Downtrend.......
4-Week
Price Change
Take-Two Interactive Software (Nasdaq: TTWO)
36.2%
American Eagle Outfitters (NYSE: AEO)
31.6%
International Paper (NYSE: IP)
41.8%
The Blackstone Group (NYSE: BX)
59.1%
Dendreon (Nasdaq: DNDN)
44.9%
MTIZ.PK
Watch it for Thursday 4-9-2009
MTIZ is thinly traded right now this means no one knows about the company yet. I believe the price looks very attractive for what the company is doing.
Do you remember when doctors use to hold up x-rays to a light to view them or when patient files were strictly on paper. Those days are quickly vanishing. Everything is going electronic.
MTIZ helps companies make this transition to go fully electronic. This is the wave of the future and MTIZ is making this happen right now!
MTIZ has products and services that streamline the management and operation functions of diagnostic imaging facilities, radiology groups, in-office imaging groups, small hospitals and physician offices.
Just think about it for 1 second. There are millions of medical offices in the world and all them are going electronic. MTIZ also just announced earlier today net income of $1.4 Mill for last year.
You can view a pictures of one of their medical x-ray program looks like here: http://www.metiscan.com/rbig.html
MTIZ just went public a few months ago through a reverse merger so this could be a ground opportunity.
Always do you own research and start at their site at: http://www.metiscan.com
MTIZ is thin right now which means it's also very volatile, so always make sure you understand the risk factor with lower priced stocks before you ever attempt anything and consult with your financial professional.
MTIZ low price also makes it a candidate for huge gains. In the past 2 months MTIZ has traded at levels 200% higher than where it is now so it may eventually test those levels again!!
The healthcare business is a very profitable business. You see a doctor for 5 minutes and they bill you an outrageous amount. This is also why they have money to spend on heathcare IT.
"Healthcare IT, which streamlines healthcare decision-making and the limitations of paper-based processed and traditional record-keeping, is set to surge from a national market valued at $1.8 billion in 2005 to one approaching $7 billion in 2010..." - Kaloroma Information.
MTIZ's solution for total electronic integration for a single medical diagnostic testing facility can save them approximately $300k per year.
MTIZ's managed solution overcomes 3 large barriers: cost, complexity of implementation, and support.
MTIZ recently stated they are positioned to capitalize or a portion of the Economic Stimulus Bill.
The plan allocates $20B to encourage the adoption of health information technology including payments to physicians who can demonstrate they are using electronic heath records (EHR) systems as Metiscan provides for diagnostic imaging facilities.
MTIZ's EHR system enables diagnostic imaging facilities to share radiological information between referring physicians, diagnostic imaging facilities, and radiologists electronically. The EHR incentives, as outlined in the economic stimulus bill, entitle physicians to reimbursement for implementation of the EHR system.
As you can see there's an incentive for Doctors to adopt an electronic system. Now only does this cut back on huge amounts of paper it makes managing data between offices more efficient.
MTIZ has 2 main systems.
Metiscan's Radiology Information System is a web-based software application that enables imaging centers to streamline their operations and securely manage the flow of patient data in real-time, from any location with internet access.
The RIS software is a rules-based workflow manager that directly uploads clinical paperwork to create electronic patient records. From scheduling to final report, the system replicates data from the initial order to multiple downstream transactions - this single point of entry reduces keystrokes, creates critical error free data and ensures the most efficient management of all aspects of radiology services.
The other system:
Teleradiology uses the Internet for secure electronic transmission of medical images to a remote site for diagnosis. By utilizing teleradiology, patient images are available for diagnosis immediately after the patient is scanned. This service is a more efficient use of medical resources that enhances and speeds the delivery of patient care.
You can get full details on their system at: http://www.metiscan.com
My Watch List Stocks...How they performed.
Create a Watch List, you will know what to buy and when to buy it.......
Here are 60 of those Watch List Stocks...
At time of being added to watch list ,stocks were in the range of $1 to $5
To be considered to add to list.
Watch for Wednesday 4-15-2009
VSPC - News...
ANVH - Volume Alert...
SBKC - Momentum...
Obama Budget Plan's Impact On Biotech Stocks...
Biotech stocks have been one of the best performing groups over the past several months, and have been showing great relative strength versus the S&P 500. However, a large portion of biotech stocks came under intense selling pressure in late February, and many stocks fell right through prior support levels on a large increase in volume. What could have caused this dramatic selloff?
It is important to note that the price for any given stock is the culmination of all market participants weighing in on all the data that is currently known, and what they believe will occur in the future. The markets are constantly in flux as they "price in" any changes to this data as quickly as possible. Usually, the larger the move, the more surprised market participants are by the data.
In late February, President Barack Obama released new details of his 2010 budget plan. In the plan, he called for access to cheaper generic versions of biotechnology medicines. He also stated that his administration would prevent deals that block generic alternatives and that the amount of market exclusivity would be consistent with the Hatch-Waxman law, which provides five years of patent exclusivity, which is much shorter than the 14 years that brand-name companies have been pushing for. Obviously, this news wasn't taken too well by investors, and many biotech stocks declined sharply.
Amgen (Nasdaq:AMGN) for instance, dropped more than 10 points just a few days after the budget plan was announced. It's interesting to note that, on the initial move lower, AMGN also broke down from a large triangle base it was consolidating in. There are several negative aspects to this chart that are worth watching in the coming weeks. Notice that AMGN set a lower pivot low, and has the faster moving averages breaking under the longer term 200-day moving average. It is now bouncing back into resistance levels on declining volume.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48019)
Celgene (Nasdaq:CELG) is another biotech that broke down from a triangle base after the budget plan was announced. A trader wouldn't necessarily need to know the catalyst for the breakdown, or even have to understand the implications of what was stated in the plan. The chart tells a trader very clearly that something is not right and that market participants are selling. Notice that CELG also has its moving averages bearishly aligned and is bouncing into resistance on declining volume.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48021)
Sequenom (Nasdaq:SQNM) is another biotech that has suffered through a nasty pullback over the past month. In fact, SQNM was showing signs of weakness well before the most recent pullback. Notice the exhaustion gap in September, after a nice rally that more than doubled the stock price. The stock quickly reversed and tested the 200-day moving average. It then attempted to rally, but rolled over, setting a lower high instead. Now it is starting to decline again, only on higher overall volume, setting up a large possible double top. The 50-day moving average is close to crossing over the 200-day moving average which is often called a death cross. The one contradiction I see in this chart is that the highest volume days over the past two months have been on positive days.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48022)
Biogen Idec (Nasdaq:BIIB) is another biotech stock that sold off on the budget plan news. It is not as weak as the others, but there are still several negative aspects to the chart. Notice how it reversed after testing the 200-day moving average, and broke under a small consolidation area. It has been alternately using the 200-day moving average as resistance and support, and has now fallen under that average. This is also another case of a stock bouncing into resistance on declining volume.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48020)
While the catalyst for such a broad move is often hard to pinpoint, in looking at the reaction for Teva Pharmaceuticals (Nasdaq:TEVA), it is quite clear that the threat of lower prices for generic alternatives is the main driver. TEVA experienced an opposite reaction to the news and traded higher, clearing a consolidation base in the process. Volume is picking up and the 50-day moving average is close to crossing over the 200-day moving average, which is often called a golden cross. The reason TEVA is reacting positively to this news is that it is a maker of generic drugs.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48023)
Bottom Line
Each of these stocks experienced a move that was correlated to a news event, and while the catalyst is not always apparent, the reaction is usually quite clear. Regardless of the event, it is always important to pay attention to the reaction, as this is what moves price. As traders, we must check our opinions at the door and follow the price action. The charts always show the reaction and allow traders to see what is occurring objectively.
Will these stocks continue to be under pressure, or was the reaction overblown? Tune in to the charts to see what happens next and, more importantly, profit from it. Join us in the 3SOF Community to weigh in on what you think will happen.
This Week's 5 Dumbest Stock Moves
April 17, 2009
Stupidity is contagious. It gets us all from time to time. Even respectable companies can catch it. As I do every week, let's take a look at five dumb financial events this week that may make your head spin.
1. Stupid analyst tricks
This week's incomprehensible analyst call comes from Pali Capital's Stacey Widlitz. She downgraded shares of Best Buy (NYSE: BBY) -- from "neutral" to "sell" -- fearing that a weak March for retail is going to eat into the stock's recent gains.
Circuit City completes its liquidation -- a superstore rival that moved $11.1 billion worth of consumer electronics in fiscal 2008 -- and she's down on the likely beneficiary? Consumer confidence is on the upswing, and she is down on the electronics niche that even bears the "consumer" name?
The call would make sense if Widlitz had a good track record in pegging Best Buy's direction, but she blew it just last month. The day before the retailer posted its results for the fourth quarter, she told clients to expect a pullback. Nope. The stock jumped 13% after a better-than-expected report the following day
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48028)
2. Don't put all of your eggs in a war-crafted basket
Shares of The9 (Nasdaq: NCTY) were slammed this week after it was revealed that the company would be losing its exclusive license to host World of Warcraft in China. NetEase.com (Nasdaq: NTES) will take over once The9's contract runs out in June.
This is a small victory for NetEase, because it's already a major player in online gaming in China. It's a big loss for The9. Despite the company's efforts to roll out proprietary games and license third-party content, World of Warcraft remains the key driver. It had years to use the blockbuster franchise as a tool to diversify, but hasn't done enough to prove that it can be successful without it.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48029)
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48030)
3. The mill kill cult
This week's incomprehensible buyout rumor comes from Wedge Partners and TheFlyOnTheWall, who claimed to hear chatter about Microsoft (Nasdaq: MSFT) buying China's SINA (Nasdaq: SINA).
This doesn't pass the sniff test on many different levels. SINA is in the process of acquiring an out-of-home advertising business that focuses on billboards, elevator posters, and monitors in high-traffic areas. Is this really Microsoft's future?
The deal also seems unlikely because the last time that Microsoft was sniffing around for even a partial stake in a leading new media company in China, regulators had fits. Who knows, in a few years the rumor may be that SINA is buying Microsoft?
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48031)
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48032)
4. Short people have no reason
Short interest at Sirius XM Radio (Nasdaq: SIRI) has ballooned to 181 million shares as of the end of March, a 13% spike from the 162 million shares sold short two weeks earlier.
Of the four Nasdaq-listed companies with the greatest short interest by share volume, Sirius XM is the only one to see an increase in bearish bets since mid-March.
This is actually good news for Sirius XM, because shorts need to ultimately cover their positions. It's also the largest short position in the company since the end of January. It was shortly after that when Sirius XM bottomed out at $0.05 a share. The stock has popped eightfold since then. So the dumb nod here goes to the shorts, sadly unaware of the new short squeeze they are nurturing.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48033)
5. Run your own business, please
GameStop (NYSE: GME) CEO Dan DeMatteo hit the CNBC airwaves, suggesting that console makers lower their prices to cope with the recession.
It may seem like an innocent comment, until you realize how self-serving it is. Hardware is a thin-margin business at GameStop. The company truly scores in game sales, scoring its thickest margins in pre-played/used sales. PS3 and Xbox 360 systems are supposedly being sold at a loss by the console companies, and GameStop wants them to take a bigger hit, so GameStop can sell more games?
If GameStop were so concerned about tightening operations in a recession, you would think that it would squeeze itself -- and narrow the wide disparity between its trade-in and resale prices -- first.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48034)
Let's beat the dumb drum...
What's Hot...
One for your watch list...
OPMG.OB - Momentum
Options Media Group Holdings, Inc., a leading Email Service Provider ("ESP") and Permission-based email and SMS/text messaging, and Lead Generation company, today announced that it has been named as a Top 50 List Manager in Nextmark's List Quality Report.
Profile:
Options Media Group Holdings, Inc.
123 NW 13th Street
Suite 300
Boca Raton, FL 33432
United States - Map
Phone: 561-368-5067
Fax: 561-892-2678
Web Site: http://www.optionsmedia.com
DETAILS
Index Membership: N/A
Sector: Technology
Industry: Internet Information Providers
Full Time Employees: 64
BUSINESS SUMMARY
Options Media Group Holdings, Inc. operates as an e-mail service provider (ESP) in the United States. It designs custom e-mail delivery solutions for companies that own or license customer lists and continually optimizes their system to enhance inbox deliverability. The company provides e-mail marketing solutions, including ASP solutions that have access to software, hardware, bandwidth, and domains and IP addresses, as well as the ability to upload and manage subscribers, review and upload campaign creative, and track results. It also offers consultation services and in-house solutions, such as installation, set up, and maintenance of the software platform, as well as platform management. The company serves approximately 100 e-mail marketing firms, corporate brand advertisers, and agencies. Options Media Group Holdings was founded in 2000 and is headquartered in Boca Raton, Florida.
http://yahoo.ar.wilink.com/Default.asp?ticker=AGT&mkt_code=YAH-HDLN-A&1239942072&action=search&action=search
What's Hot
The "Swine Flu" is all over the news.
Sector: Healthcare Industry: Biotechnology & Drugs
Here are the big gainers of the sector!
Missed this little pup....
PGPDQ has hit a new 6 month high and is up roughly 990% since Dec. 4th 2008!!!
Profile:
Pilgrim's Pride Corporation
4845 US Highway 271 North
Pittsburg, TX 75686
United States - Map
Phone: 903-434-1000
Fax: 972-290-7690
Web Site: http://www.pilgrimspride.com
DETAILS
Index Membership: N/A
Sector:
Industry:
Full Time Employees: 49,750
BUSINESS SUMMARY
Pilgrim’s Pride Corporation produces poultry products in the United States, Mexico, and Puerto Rico. The company offers prepared chicken products, such as portion-controlled breast fillets, tenderloins and strips, delicatessen products, salads, formed nuggets and patties, and bone-in chicken parts; fresh chicken products, which include refrigerated whole or cut-up chicken, and prepackaged case-ready chicken; and export and other chicken products, such as parts and whole chicken, either refrigerated or frozen for export or domestic use, as well as chicken prepared foods products for export. Pilgrim’s Pride Corporation’s prepared turkey products comprise turkey sausages, ground turkey, turkey hams and roasts, ground turkey breast products, salads, flavored turkey burgers, and cooked and further processed deli products; and fresh turkey products, which include turkey burgers, and fresh and frozen whole birds, as well as semiboneless whole turkey. Its other products comprise other types of meat along with various other staples, table eggs, commercial feeds, and related items and proteins. The company sells its products to foodservice customers, including chain restaurants, food processors, foodservice distributors, and other institutions; and retail customers, such as grocery store chains, wholesale clubs, and other retail distributors. It has operations in Alabama, Arkansas, Georgia, Kentucky, Louisiana, North Carolina, Tennessee, Texas, Virginia, West Virginia, Pennsylvania, Puerto Rico, and Mexico. Pilgrim’s Pride Corporation was founded in 1945 and is based in Pittsburg, Texas. On December 1, 2008 Pilgrim’s Pride Corporation, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas.
This Is Still A Trader's Market...
If you're thinking about going long term think again. The economy is still very unstable and in MHO it will take 1-2 years before things get back on track.
Right now short term profits is the way to go. If you make a profit don't be shy to take it. The market doesn't go straight up so any run that last 3-5 days could retrace.
I would also advise against holding stocks into earnings. Holding a stock through earnings is a huge risk and not worth it. JMHO of course.......
Stocks being BOUGHT heavily by institutional investors.
Coal stocks are a buy now...News on JRCC and earnings beat!!!
PGPDQ hit a new high this week representing a gain of roughly 1,100% since early Dec.!
There is a post on this one above.......
12 Extreme FDA Trades on New Product Decisions
Below are 12 companies with market caps below $200M which have pending new drug product decisions at the FDA that are expected to have a major impact on each of the underlying stock prices as the PDUFA decision dates approach and the decision is ultimately announced.
See the BioMedReports.com FDA Calendar.
1.) Vion Pharma (VION.OB): Onrigin (laromustine) Injection (formerly known as Cloretazine or VNP40101M) NDA (filed with the FDA on 2/17/09) with priority review request as a single agent for remission induction treatment for patients age 60 and older with de novo poor-risk acute myeloid leukemia (AML). 4/17/09 is date for FDA to accept the filing and rule on priority review request – if granted the PDUFA would be 8/17/09 instead of 12/17/09 for standard 10-month review.
2.) Discovery Labs (DSCO): Surfaxin (lucinactant) NDA for prevention of respiratory distress syndrome (RDS) in premature infants. DSCO received its third approvable letter for Surfaxin last May and submitted its complete response to the FDA in mid-October with an expected decision date of 4/17/09. The stock price dipped below a dollar after the FDA issued a six-month Class II review (as investors hoped for the shorter 60-day Class I review) for the NDA re-submission, but DSCO has rebounded sharply since that time and is up over 30% in the past few days and closed today at $1.72 per share.
3.) Northfield Labs (NFLD): PolyHeme BLA (priority review) for life-threatening red blood cell loss. The FDA accepted the Company's BLA for PolyHeme and granted a priority review in the treatment of life-threatening red blood cell loss with a PDUFA date of 4/30/09.
4.) Vanda Pharma (VNDA): The Company's iloperidone (formerly Fanapta) NDA resubmission is in response to a previous not approvable ruling by the FDA on 7/25/08. The PDUFA decision date for iloperidone as an atypical anti-psychotic treatment for schizophrenia is 5/6/09.
5.) Hemispherx Biopharma (HEB): Ampligen (Poly I: Poly C12U) NDA (three month PDUFA decision date delay was announced on 2/18/09 as additional data was submitted by HEB within three months of original decision date). Ampligen is an experimental treatment for chronic fatigue syndrome (which has no FDA-approved treatments) and the drug has an Orphan Drug Status with a PDUFA decision date of 5/25/09.
6.) Acusphere (ACUS.PK): Amended NDA for Imagify (Perflubutane Polymer Microspheres) for Injectable Suspension as a cardiac imaging agent for the detection of coronary artery disease. Amended indication would be limited to subsets of patients undergoing pharmacologic stress techniques compared to original request for more widespread use with an expected PDUFA decision date of 5/31/09.
7.) Arca biopharma (ABIO): Gencaro (bucindolol) NDA for the treatment of chronic heart failure with a PDUFA decision date of 5/31/09. ABIO also has a collaboration with LabCorp (LH) and a pending PMA for a genetic test which is designed to be used in conjunction with Gencaro. ABIO has identified genetic traits which the Company believes will predict patient responses to the drug and hopes to launch both as a personalized medicine combination to optimize treatment outcomes.
8.) BioDelivery Sciences (BDSI): Onsolis (BEMA fentanyl) NDA Re-Submission for breakthrough cancer pain with an expected decision date of 6/15/09 and a $27M milestone payment if approved from partner Meda AB (MDABF.PK). Onsolis is a small/dissolving polymer delivery system with opiate painkiller fentanyl designed for quick absorption through the cheek.
BDSI submitted a Risk Evaluation and Mitigation Strategy (REMS) for Onsolis last December based on the feedback it received from a complete response ruling by the FDA in August 2008. Since the FDA has informed BDSI that all other aspects of the NDA review are complete, the prospects for Onsolis approval are excellent, with an approval decision possible by mid-June based on a Class II (six-month) review by the agency on the re-submission.
9.) Spectrum Pharma (SPPI): Zevalin sBLA (priority review) as consolidation therapy follicular B-cell non-Hodgkin's lymphoma if a first-line treatment response is achieved. Cell Therapeutics (CTIC) recently sold its 50% interest in a joint venture between the two companies to market Zevalin so SPPI owns a 100% stake in the cancer drug. A three-month delay in the PDUFA decision date to 7/2/09 was announced on 2/23/09 as SPPI submitted additional data to the FDA, which was classified as a major amendment to the sBLA filing
SPPI also has a pending sNDA for Fusilev (levoleucovorin) for Injection to expand use of the drug in combination with 5-FU containing regimens in advanced metastatic colorectal cancer. The PDUFA decision date for the sNDA is 10/8/09.
10.) Labopharm (DDSS): A decision date of 7/18/09 is looming for the Company's rapid-onset formulation of trazodone (DDS-04A) for the treatment of depression through the 505(b)(2) regulatory pathway for new formulations drugs that are already on the market.
11.) Transcept Pharma (TSPT): The decision date for Intermezzo (zolpidem sublingual lozenge) NDA for use as-needed for insomnia from middle of night awakenings is 7/30/09.
12.) Advanced Life Sciences (ADLS): ADLS has a pending NDA for cethromycin as a once-daily antibiotic for the treatment of adults with mild to moderate community acquired pneumonia (CAP) with a decision date of 7/31/09. Also, the Anti-Infective Drugs Advisory Committee of the FDA is tentatively scheduled to meet on 6/2/09 to discuss the NDA for cethromycin.
;D Breakout Stocks...Will They Trend Up Or Top Out? ???
A healthy consolidation is often crucial for a stock emerging into a new trend. A consolidation occurs when a stock transitions from a trending move to a sideways trading range. These trading ranges serve a vital role in the life of the larger trend, as they allow for the exchange of hands from weak participants to stronger ones. This is healthy for a stock, as these new participants are less likely to get shaken out on typical market noise.
A sound base often takes time to develop, and quick or choppy bases often result in failed moves as there are still many participants from the prior trend anxious to take their profits. Once a stock emerges from a consolidation, the base will usually serve as a strong support or resistance level because that area is filled with other traders who missed the breakout and are anxious to avoid missing a second opportunity.
Computer Programs and Systems (Nasdaq:CPSI) is an example of a stock that has broken above a healthy consolidation. Notice how CPSI was consistently rejected by the $28.50 range on three separate attempts. Sellers were getting comfortable in this area and notice that once it was cleared, CPSI was able to climb over 20% fairly quickly. The only pullback was quickly met with buyers.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48225)
Sometimes a stock will gap out of one of these bases, surprising a large group of traders. First Solar (Nasdaq:FSLR) is a good example of what this looks like. Often this move will result in a breakaway gap, which can ignite a new trend and act as strong support moving forward. A breakaway gap is usually accompanied by a sharp increase in volume, revealing new interest and also how the participants on the other side of the trade were shocked into relinquishing their positions.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48226)
F5 Networks (Nasdaq:FFIV) is another example of a stock breaking out of a consolidation via a breakaway gap. It's interesting to note that the gap has yet to be filled after several days of trading. FFIV has been overbought for a few weeks without any considerable pullbacks, which further illustrates how the breakout often catches the other side by surprise.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48227)
Sohu.com (Nasdaq:SOHU) is a good example of how a consolidation can serve as support after a stock breaks out. SOHU was respecting the $50-$51 range as resistance while it consolidated for several months. It was able to decisively clear this area in late April, and quickly reversed back higher from the level when the stock pulled back to test it the next two sessions. While SOHU could easily pull back to test this area again, the stock should find eager buyers who missed the first run after the breakout.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48228)
Bottom Line
Most of the stocks above are overbought, which shouldn't be a surprise based on the sharp rally that has occurred in the general markets. Identifying promising trade candidates is only one step of a successful trading plan, and a trader must develop a methodology to weigh the risk and reward for each setup they take. What this type of analysis does accomplish, however, is to identify stocks that should be emerging into new trends higher. Each of these stocks is emerging from a consolidation in the direction of the prior trend and the path of least resistance favors a continuation move. A healthy consolidation provides the fuel necessary for a sustained move. Pullbacks should be met with buyers, and offer trading opportunities if the trend remains healthy. Do you think these stocks will continue to trend higher, or are they close to topping out? Let me know your opinion... ;) :D ;D
Why We Love Wild Penny Stocks...
Penny stocks have huge potential -- that's their blessing and their curse.
The potential rewards are enormous. Just take a look at the returns from Diedrich Coffee (Nasdaq: DDRX)
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48334)
Vanda Pharmaceuticals (Nasdaq: VNDA),
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48335)
or Cell Therapeutics (Nasdaq: CTIC),
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48336)
each of which has returned more than 500% over just the past six months! Neither traded for more than $0.65 per share six months back.
Those quick jumps look like easy gains, considering that CME Group (Nasdaq: CME)
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48337)
and PotashCorp (NYSE: POT) would need to add more than $270 and $110, respectively, to their share prices to even double.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48338)
Everybody loves pennies
It's the potential of quick gains in "cheap" stocks that keeps investors coming back. We typed "penny stocks" into Google, and the search engine spat out "about 1,870,000" hits. We did the same for more time-tested terms such as "blue-chip stocks" and "dividend stocks" -- the terms folks should be searching for in a bear market like this -- and got just 232,000 and 594,000 hits, respectively.
Sure, we expected a discrepancy, but the size of the gap was startling. It became even more interesting when we broke down those hits with Google Trends. According to Trends, penny stocks are particularly alluring to investors in Tampa, Miami, and Orlando -- the locales where the term is most often searched.
We hope the folks Googling "penny stocks" down there aren't retirees trying to cope with this crazy, crazy market.
This stock is set to take off! Or not.
According to the Securities and Exchange Commission, the term "penny stock" generally refers to low-priced (below $5), speculative securities of very small companies. To quote the SEC: "Investors in penny stocks should be prepared for the possibility that they may lose their whole investment." (It's worth noting that the emphasis in that last sentence is in the original.)
Pay attention to the SEC's entire definition, not just the stock price. Going solely on price would wrongly categorize billion-dollar companies Office Depot (NYSE: ODP)
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48339)
and Flextronics (Nasdaq: FLEX) as penny stocks.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48340)
--------------------------------------------------------------------------------------------
...Securities and Exchange Commission, the term "penny stock"
The term "penny stock" generally refers to low-priced (below $5), speculative securities of very small companies. While penny stocks generally are quoted over-the-counter, such as on the OTC Bulletin Board or in the Pink Sheets, they may also trade on securities exchanges, including foreign securities exchanges. In addition, penny stocks include the securities of certain private companies with no active trading market.
Before a broker-dealer can sell a penny stock, SEC rules require the firm to first approve the customer for the transaction and receive from the customer a written agreement to the transaction. The firm must furnish the customer a document describing the risks of investing in penny stocks. The firm must tell the customer the current market quotation, if any, for the penny stock and the compensation the firm and its broker will receive for the trade. Finally, the firm must send monthly account statements showing the market value of each penny stock held in the customer's account.
Penny stocks may trade infrequently, which means that it may be difficult to sell penny stock shares once you own them. Because it may be difficult to find quotations for certain penny stocks, they may be impossible to accurately price. Investors in penny stocks should be prepared for the possibility that they may lose their whole investment.
For more information, read the penny stock rules section of our Broker-Dealer Registration Guide. You may also want to review the penny stock rules (Securities Exchange Act Rules 3a51-1 and 15g-1 through 15g-100).
Before you consider investing in the stock of any small company, be sure to read our brochure, Microcap Stock: A Guide for Investors.
http://www.sec.gov/answers/penny.htm
-------------------------------------------------------------------------------------------
Regardless, the SEC is spot-on when it says that true penny stocks are among the surest ways to lose money in the stock market.
Well, then, why do we love penny stocks?
We love penny stocks because they're fascinating. The world of pennies is inhabited by hardworking average Joes and Janes hoping to strike it rich, as well as by pumpers and dumpers, hypesters and scammers. In pennies, the logic and reason that apply in the rest of daily life are replaced by zeal and prayer.
However, we don't love them enough to actually buy them. Yes, they have big potential, but their daily gyrations are unpredictable -- the stock price movements have next to nothing to do with the underlying company the stock represents. In fact, trading in pennies is highly illiquid, and prices are often manipulated by forces not at all related to the business.
The dangers of incredible promises
If you're buying stocks without paying attention to the businesses you're buying, then you might as well be buying a lottery ticket. Or, to use another analogy, you might as well buy up every baseball card of a benchwarmer on the Akron Aeros Class AA baseball team and hope that he someday rises up, fulfills his potential, and becomes an all-star for the big-league Cleveland Indians.
There's a better way
Before you start saying the rest of the stock market is boring -- though you're probably not saying that any longer -- let us introduce you to some underfollowed small caps. They're nothing like penny stocks, yet they still offer some of the best returns on the market. Unlike penny stocks, promising small caps:
•File reliable financial statements
•Are transparent
•Have conference calls that individual investors can listen to
•Don't simply hype their stock in press releases
That's a starting point. There are more -- and more important -- criteria to help you find great small-cap companies.
for instance, look for a balance sheet with lots of cash and no debt, and a tenured CEO (or founder, if possible) who holds a substantial ownership stake in the business. In other words, we're looking for big returns with good old-fashioned bottom-up analysis.
Swine Flu getting worse.......
The number of swine flu cases worldwide has surpassed 20,000 after the U.S. reported over 1,000 new infections.
4 new swine flu deaths reported in U.S.
Virus expected to continue spread in Southern Hemisphere
msnbc.com news services
updated 6:15 p.m. CT, Thurs., June 4, 2009
Health officials in Wisconsin, California, Illinois and Utah reported deaths from swine flu on Thursday and said all four patients had had other health problems.
The Wisconsin death, of a Milwaukee adult, was the state's first from the H1N1 virus. City Health Commissioner Bevan Baker would not release any details except to say that the person had a common underlying health condition that he would not specify.
A 74-year-old man from Gurnee, Ill., died Tuesday, according to the Lake County Health Department. Officials said he had significant medical conditions that increased his vulnerability.
Officials in California said a 9-year-old Concord girl had been diagnosed with swine flu and had a bacterial infection before she died May 29. The patient who died in Utah also was under 18, according to Gary Edwards, executive director of the Salt Lake Valley Health Department.
Officials with the U.S. Centers for Disease Control and Prevention said Thursday that there have been 11,468 probable and confirmed swine flu cases in the U.S., including 770 hospitalizations. They've confirmed 19 deaths; the four announced Thursday are not yet included in the government's tally.
The swine flu epidemic peaked in Mexico, the center of the outbreak, in late April, and now has spread throughout the Northern Hemisphere. But it will continue to be a threat south of the equator, where countries are entering the winter months and traditional flu season, according to the CDC study, one of the most comprehensive yet on the effect of the virus on people.
South America already has had more than 600 cases, including one death in Chile, while Australia has reported more than 500.
On Thursday, Mexico had confirmed 5,717 cases, including 106 deaths, as scientists test a backlog of samples from patients.
Swine flu has hit more than 66 countries, with the United States reporting the most cases.
The CDC said children and adults under 60 are at greater risk of dying, judging from confirmed cases. One reason could be that younger people and children haven't built up immunities to seasonal flu as older people have. About one-third of U.S. adults aged 60 and older who were tested had antibodies from vaccines or exposure to other flu strains that could also keep them from contracting swine flu, the report said.
In Mexico, only 2 percent of confirmed cases have been 60 years old or older. But 42 percent of patients were under the age of 15 and 32 percent were between the ages of 15 and 29. The remaining 24 percent were aged 30-59.
term predictions for the epidemic difficult, the CDC said, but "data suggest the outbreak likely has moved beyond its peak nationally" in Mexico.
Mexico, like the United States, has struggled to keep up with laboratory testing to confirm suspected cases of the flu. The outbreak has led to a surge in testing at Mexico's National Laboratory from 30 specimens to 900 daily.
The CDC has praised Mexico for its response. Mexico ordered schools closed April 27 and then followed up with a five-day national shutdown of nonessential businesses to curb the spread of swine flu.
"I think in retrospect some people might look back and say, well, maybe that was extreme. But from the public health perspective, we would say in the face of uncertainty that's erring on the side of being safe," said Dr. Scott F. Dowell, who heads the CDC's international swine flu team.
http://www.msnbc.msn.com/id/30503740/
Selected Healthcare Sectors Buck Market Dip
the tickerspy.com Staff
On Monday June 8, 2009, 11:24 am EDT
Related:Aastrom Biosciences, Inc., Geron Corporation, Generex Biotechnology Corp.
The market started the week in the red, but there was money to be made in a handful of healthcare subsectors.
Equity markets are largely lower today as investors await the government's decision on allowing banks to return TARP funds. The selloff has put a number of sectors under a lot of pressure, some falling an aggregated -5%. The healthcare industry is bucking the trend today, showing pockets of strength in multiple subsectors.
The Swine Flu and Bird Flu Stocks Index is among the day's top performers. It is trading higher by 1%.
Hemispherx Biopharma (AMEX: HEB - News) is the top swine flu stock, adding 9% to its impressive 77% five-day rally. It is followed by Novavax (NASDAQ: NVAX - News), which is up by 3%.
Generex Biotechnology's (NASDAQ: GNBT - News) -11% drop is not enough to pull the index into negative territory.
The Cancer Stocks Index is up fractionally today. Less than half of the Index's 35 equities are trading higher today, but the top performers are showing massive gains.
Keyrx Biopharmaceuticals (NASDAQ: KERX - News) is leading the way with 28% gains. Monday morning the company announced positive results from the Phase 2 study of its Zenerex drug. According to the FDA, the results were strong enough to warrant moving on to Phase 3 trials.
XOMA (NASDAQ: XOMA - News) and Peregrine Pharmaceuticals (NASDAQ: PPHM - News) are also helping the Index higher with gains of over 7%.
The Stem Cell Stocks Index is also in positive territory today, up by 0.6%. As of this writing, five of nine of the Index's stocks are trading higher.
Geron (NASDAQ: GERN - News) is the best performer today, up by 6%.
Aastrom Biosciences (NASDAQ: ASTM - News), StemCells (NASDAQ: STEM - News), and Thermogenesis (NASDAQ: KOOL - News) are all in positive territory as well.
With the exception of the Dialysis and Kidney Disease Stocks Index, Pain Management Stocks, and Diabetes Stocks, the remainder of the tickerspy healthcare Indexes are down today.
Investors can follow these and other Indexes and view related performance charts and metrics at tickerspy.com.
Fun and informative, tickerspy.com is a free investing website where you can track multiple stock portfolios and compare against 250 proprietary Indexes tracking themes from nanotech to agriculture to precious metals. Best of all, tickerspy.com lets you spy on the portfolios of nearly 3,000 Wall Street institutions and hedge funds and see graphs of their performance. Try tickerspy.com today and find out how you stack up against investing legends like Warren Buffett!
I think those who keep selling the swine flu stocks will regret their actions soon.
I'm accumulatinig more stock on the cheap! ;)
A 'Pandemic' Now Declared, Focus Back on Swine Flu Stocks
On Friday June 12, 2009, 12:00 pm EDT
The H1N1 virus is officially a pandemic, and vaccine stocks are responding.
Swine flu stocks are up again today, with some extending weekly gains to more than 20%. A number of companies released good news to end the week. From small-cap players to multi-billion dollar giants, shares are up big on high volume. Novartis (NYSE: NVS) announced today that it will have a swine flu vaccine ready by this fall. Shares are up by 4% on the news.
On Thursday, the World Health Organization raised its alert level on the virus to "Phase 6," indicating that it has officially become a pandemic.
As a whole the Swine Flu and Bird Flu Stocks Index is up by 2.5%. It is now beating the S&P 500 by 35.5% over the last month.
Generex Biotechnology (NASDAQ: GNBT) is leading the Index today with 10% gains. The company was granted five new patents for its drug delivery systems. The patents were awarded in Canada, Australia, New Zealand, Brazil, and Lebanon. The stock is still in negative territory this week by -3%.
Sinovac Biotech (AMEX: SVA) is adding another 3% to its industry-leading 30% weekly rally. On Monday the company announced that it had begun production of a swine flu vaccine, and noted that it could produce up to 30 million doses per year.
Vical (NASDAQ: VICL) has fallen from earlier highs, and is now trading up fractionally. Thomas Weisel initiated coverage of the company today with an Overweight rating and a $5 price target. The analyst cited Vical's proprietary technology, strategic partnerships, and licensing agreements.
GlaxoSmithKline (NYSE: GSK) and Hemispherx Biopharma (AMEX: HEB) are both ahead by more than 4% today.
Pure Bioscience (NASDAQ: PURE) and AVI Biopharma (NASDAQ: AVII) are industry laggards today, falling by -3% and -6% respectively.
As of this writing the Swine Flu and Bird Flu Stocks Index is a top-three performing tickerspy Index over the last month, gaining 39.5%.
Investors can follow the Swine Flu and Bird Flu Stocks Index and view related performance charts and metrics at tickerspy.com.
Investors can follow the Swine Flu and Bird Flu Stocks Index and view related performance charts and metrics at tickerspy.com.
http://www.tickerspy.com/index/Swine-Flu-and-Bird-Flu-Stocks?refer=2028Y3
Swine Flu Stocks - Just Wait Until Fall
I've been watching some of the Swine Flu Stocks I initially covered right when the first cases were identified with a mixture of a) disbelief in the volatility and gains on little fundamental substance contrasted with b) envy that I didn't pick the right one(s) and let 'em ride.
Novavax (NVAX): If we take Novavax as an example, I had highlighted here in this Novavax CEO interview article that while the stock had rallied coming off the breaking news, much of it seemed to be based on hype and I postulated that the large pharmas with the existing capacity and approved technologies would likely get the lionshare of the tenders for vaccines. Following my post on 4/30, shares dipped as much as 40% within weeks and unfortunately, I didn't play it right and make any money on the call. However, subsequently, shares are now up 34% vs. the S&P rally of 15% even inclusive of that dip. For a high Beta stock like this, perhaps not to be unexpected even in lieu of any Swine Flu news, but not too shabby either.
Some Other "Swine Flu Stocks" over the prior 3 month period:
AVII is up 152%
BCRX is up 157%
VICL is up 59%
DVAX is up 59%
SVA is up 79%
Each of these has a particular niche or stake in a swine flu breakout worth investigating further. Some have more diverse pipelines and approved products that don't rely so heavily on swine flu hype, and SVA is a Chinese biotech which adds an additional emerging market/preferred local China supplier tilt to the equation.
My calls that still stand:
a) Most of these "swine flu stocks" will not be able to retain their gains once the dust has settled.
b) Some will continue to run due to a large tender award here and there (if there isn't enough capacity to go around from large pharma, some of these smaller players will inevitably get some tenders)
c) Anyone making predictions on just how virulent and contagious the swine flu will become this fall doesn't know what they're talking about - anything can happen.
d) The revenues derived by the large pharmas like GSK will likely not see a meaningful impact to their bottom line (above and beyond what is already baked in to committed orders) given the relative small impact to revenues - and vaccines in general are a low margin business compared to small molecule products sold in massive scale like typical blockbusters.
Swine Flu Investing Idea
Rather than throwing money after individual stocks which are subject to massive volatility, perhaps consider some speculative cash going toward several cheap way out of the money call options on multiple stocks. If just one or two of them hit, the gains of Thousands % on the couple options that hit will more than offset the inevitable declines/losses you'll see in expired options that didn't go anywhere. I wouldn't advise LEAPS or waiting until January expiry. I think it will be quite evident by the Nov. time period both how severe the pandemic becomes and also, how effective/available the existing supplies of vaccines are. If things go well, expect options to expire worthless and your speculative play lost 100%. If things don't go so well on any of the multiple fronts, at least some of these shares could continue to see triple digit rallies, sending options returns into the 4-digit realm easily given the leverage employed and low starting share/strike prices.
Companies Involved in the Treatment of Swine Flu
Introduction
On June 11, 2009, the World Health Organization (WHO) declared the swine flu (swine influenza) outbreak as a global pandemic (worldwide outbreak of disease).
To date, 28,774 confirmed cases of swine flu have been reported in 74 countries across the world, including 13,000 confirmed cases in the U.S. The disease has caused 144 deaths throughout the world, including 27 deaths in the U.S. The origin of the swine flu outbreak can be traced to Mexico, where the virus has reportedly killed and infected 108 and 6,241 people respectively (data as of June 11, 2009).
Recently there have been sporadic cases of swine flu reported in countries throughout the world.
This report discusses the details of the disease, the estimates (by the World Health Organization) on the extent of the spreading of the disease, the companies who are currently selling products that are being used to treat this disease and companies that have new flu treatments in their pipelines, which may also be used to target swine flu disease.
Companies with Existing Treatments for Swine Flu
Gilead Sciences, Inc./Roche Holding Ltd. (GILD/RHHBY.PK) - Tamiflu (oseltamivir)
GlaxoSmithKline Plc./Biota Holdings Ltd. (GSK/BTAHY.PK) - Relenza (zanamivir)
Companies with Potential Vaccines and Treatments for Swine Flu
Biota Holdings Ltd. (BTAHY.PK) and Daiichi Sankyo - CS-8958
BioCryst Pharmaceuticals, Inc. (BCRX) - Peramivir Intravenous
Novavax Inc. (NVAX) - swine flu vaccines by using Virus-like particle (VLP) technology
MedImmune, a unit of AstraZeneca PLC (AZN) - needle-free, nasal spray swine flu vaccine by using Live Attenuated Influenza Vaccine (LAIV) technology
Novartis AG (NVS) - swine flu vaccine
Sanofi-Aventis (SNY) - swine flu vaccine
Baxter International Inc. (BAX) - swine flu vaccine
What Is Swine Flu?
Swine flu is a highly infectious, severe respiratory disease that most commonly occurs in pigs (swine). This disease is caused by the H1N1 strain of the Type A influenza virus (see explanation below).
Though swine flu frequently occurs in swine and causes high levels of illness, it has rarely been known to kill the swine. The 2009 flu outbreak is being referred to as 'Swine Flu' because the form of this virus bears the closest resemblance to the swine flu virus. The 2009 'Swine Flu' is being caused by a modified H1N1 form of the Type A influenza virus, which is infecting humans and has been shown to be fatal in some cases.
The origin of this new strain of H1N1 virus is still unknown, although most hypotheses point to the swine as being the originator of this new mutated (undergone changes in its structural composition) virus strain.
There are 3 types of influenza virus: Type A, Type B and Type C.
Type A influenza virus can cause flu in humans, animals and birds. It is the most infectious type of influenza virus, and is responsible for regular outbreaks.
Type B influenza virus infects only human beings. It causes a less severe infection than the Type A virus and does not cause outbreaks.
Type C influenza virus is able to infect only humans and animals; however, the flu in humans caused by this type of virus is very uncommon, as compared to Type A and Type B. It does not cause outbreaks.
Further explanations (i.e., why Type A can cause an outbreak while Type B and Type C cannot), descriptions, differences and unique characteristics of each of the aforementioned types of influenza virus are discussed later in the report.
The Type A influenza virus consists of two proteins called hemagglutinin (H protein) and neuraminidase (N protein). There are 16 types of H proteins (H1 to H16) and 9 types of N proteins (N1 to N9). Depending upon the combination of the types of H and N protein, there are various subtypes of the Type A influenza virus, like H1N1 (swine flu), H5N1 (avian flu) etc. The table below lists the various subtypes of the Type A influenza virus that have been found in humans, animals and birds.
In Humans: H1N1, H1N2, H2N2, H3N2, H5N1, H7N2, H7N3, H7N7, H9N2, H10N7
In Animals: Pigs: H1N1, H1N2, H3N2 Horses: H3N8, H7N7
In Birds: H1N1, H1N8, H2N9, H3N2, H3N8, H4N3, H4N6, H5N1, H5N9, H6N1, H6N2, H6N5, H6N8, H7N1, H7N3, H7N7, H8N4, H9N2, H9N6, H10N7, H10N8, H11N6, H11N9, H12N5, H13N6, H14N4, H15N4, H15N9
The swine flu virus (the H1N1, H1N2 and H3N2 subtypes of the Type A influenza virus) seldom infects human beings. The previously reported human cases of swine flu were confined to those who had direct contact with pigs, like people working in the swine industry. However, the current outbreak of swine flu in the human population in Mexico and the U.S is caused by an entirely new and mutated strain of the Type A influenza H1N1 virus, which has never been detected before.
It is theorized that the virus responsible for the current 'Swine Flu' outbreak is actually a mixture of the 3 types of H1N1 virus that are found in birds, pigs and humans (see table above). This new strain of the H1N1 virus does not appear to infect pigs, but is infecting only humans. The major concern is its ability to spread from one person to another. The disease started in Mexico, crossed the U.S. border and now threatens to develop into a pandemic. The World Bank estimates that a worldwide flu pandemic could cost approximately $3 trillion.
Despite being different, the virus responsible for the current outbreak shares the same name as the swine flu virus because after the initial analysis of the first few cases, this virus had shown many similar characteristics as that of the swine flu virus. Further analysis subsequently has revealed that the virus also contains some elements of the bird flu and the human flu virus.
On June 11th, 2009, the World Health Organization (WHO) raised the alert to Phase 6, declaring the swine flu as a global pandemic. This is the first influenza pandemic since 1968. The WHO is a United Nations agency that works to strengthen health activities and improve health services internationally. It has a numbered alert level scale, ranging from Phase 1 to Phase 6, which measures the spread and severity of infectious diseases like swine flu. An increase in the number of phase indicates an elevated risk of mass outbreak. The details of the phase alerts are as follows:
Phase 1: There are various flu viruses that circulate among animals. A Phase 1 alert indicates that the virus is circulating amongst animals but it does not cause any human infections.
Phase 2: Indicates that a flu virus in animals can also cause human infections and therefore is considered as a potential pandemic threat, but with low risk.
Phase 3: Indicates that the flu virus causes infection in humans, but there is no report of human-to-human transmission.
Phase 4: Indicates that the virus has a persistent ability to pass from one human being to another and is able to cause outbreaks in certain communities. It denotes a significant increase in pandemic threat.
Phase 5: Indicates that the virus easily spreads from human-to-human and has affected at least two countries in one region of the world. It gives a strong pandemic alert signal.
Phase 6: Indicates that the virus spreads from one country to another country located in different regions of the world, denoting an outbreak of pandemic.
Transmission of the Swine Flu Virus
Swine flu is a highly contagious disease and can directly transmit from an infected human to a healthy person. The human-to-human transmission of the swine flu virus occurs through air. When a swine flu infected person coughs or sneezes without covering his/her mouth and nose, the virus containing bodily fluid in the form of respiratory droplets (drops of moisture expelled from the nasal passages, mouth and throat) enter the air. When this air is inhaled by healthy individuals, the virus enters into his/her body through the respiratory tract.
Sometimes the infection spreads by touching some objects with the virus on their surface and then touching the mouth or nose. It can be noted that the virus does not spread by eating properly handled and prepared pork (pig meat), which is cooked at 160°F temperature.
Structure and Classification of the Influenza Virus
Almost all the round shaped influenza viruses consist of two parts: inner core and outer envelope
Inner core: The inner core comprises of the virus' genetic material called ribonucleic acid (RNA), which is responsible for the replication process of the virus. The RNA of the virus is found inside a protein called nucleoprotein (also called the structural protein of the virus) that helps in the viral replication process, as well as in selecting the proper host (such as a human, animal or bird cell) where the virus can attach itself and cause an infection.
Outer envelope: The outer envelope is made up of lipids (a type of fat) and proteins. In the Type A and the Type B influenza viruses, the two proteins (called surface proteins), namely H protein and N protein, are present in the lipid layer. In place of H and N surface proteins, the Type C influenza virus contains a different surface protein called glycoprotein 88 (gp88). The surface proteins help the virus to cause the infection in the host cell.
The classification of the influenza viruses into the three categories, namely Type A, Type B and Type C, is based on the type of nucleoprotein present in the inner core of the virus. The different types of influenza viruses have different nucleoproteins.
The Type A influenza virus can be classified into various subtypes, based upon the composition of the two surface proteins, H protein and N protein. As per the various combinations of the 16 types of H and 9 types of N proteins that have been identified till date, there are several subtypes of the virus, namely H1N1, H5N1 and others. All these subtypes can further be classified into different strains (the viruses belonging to the same subtype but with slight changes in the structure).
In contrast to the Type A influenza virus, the Type B and the Type C do not have subtypes, however, they also undergo small changes that results in the formation of a new strain of virus. The formation of subtypes and strains depend upon the ability of the virus to mutate. There are two specific ways by which the influenza virus mutates: Antigenic drift and Antigenic shift.
Antigenic drift – The Influenza viruses undergo small and steady changes in a part of the RNA that has the information of making the surface proteins (H protein and N protein in case of the Type A and B virus; gp88 protein in case of the Type C virus). These changes result in minor alterations in the structure of the surface proteins, resulting in the formation of new strains of the virus. This process is called antigenic drift. All types of influenza viruses (A, B and C) undergo antigenic drift.
Antigenic shift – This is a sudden and abrupt change in the virus that results in the formation of a new form of the virus. It is only the Type A influenza virus (and not B and C) that can undergo an antigenic shift. The Type A influenza virus is able to infect humans, animals as well as birds. Some animals, like pigs, catch the bird flu virus (the Type A influenza virus that normally affects birds), the human flu virus (the Type A influenza virus that normally affects humans) and the pig flu virus (the Type A influenza virus that normally affects pigs). As a result, inside a pig, all the three types of the A influenza viruses meet and can form an entirely new kind of the Type A influenza virus, which has a mixture of the surface proteins of the three original viruses.
This is what is theorized as the origin of the current swine flu outbreak. The causative Type A influenza virus is an entirely new virus and is a mixture of the three Type A influenza viruses that are found in birds, pigs and humans.
Reason Why Only the Type A Influenza Virus Causes Pandemics
Despite the fact that all the three types of influenza viruses can infect humans, it is only the Type A influenza virus that is capable of causing pandemics in the human population. Excluding the current swine flu pandemic (as declared on June 11, 2009 by WHO), the world has suffered three other flu pandemics, which are as follows:
The 1918 pandemic – This flu pandemic was the most severe one, which killed at least 675,000 people in the U.S. and 50 million people worldwide. It was caused by the H1N1 subtype of the Type A influenza virus. This virus originated in birds and mutated itself enough to acquire the ability to infect humans. The disease was first officially acknowledged in Spain in May 1918. In the early months of 1918 (the final year of World War I), a wave of flu appeared in the military camps all over U.S., France and Southern China. However, the news of the flu outbreak in these countries was censored for security reasons since these countries were involved in the war. The news of the outbreak spread around the world, only when the disease appeared in Spain, which was a neutral player in Word War I. Spain did not censor the news of the outbreak and the Spanish press documented the disease in detail.
The 1957 pandemic - This flu pandemic was moderately severe compared to the 1918 pandemic and it took 70,000 lives in the U.S. and killed 1 million to 2 million people worldwide. This was caused by the H2N2 subtype of the Type A influenza virus, which originated in birds, then eventually mutated and infected humans. This flu originated in China.
The 1968 pandemic – This flu pandemic was the least severe one amongst all three, causing at least 34,000 deaths in the U.S. and 700,000 deaths all over the world. It was caused by the H3N2 subtype of the Type A influenza virus, which also had a bird origin. This disease began in Hong Kong.
As opposed to Type B and Type C, the Type A influenza virus can cause a pandemic because it affects humans, pigs as well as birds. So along with undergoing a frequent and continuous antigenic drift, it has an ample chance of undergoing an antigenic shift, with different strains of the virus combining inside a host. An antigenic drift of the Type A influenza viruses is much easier to control than an antigenic shift.
An antigenic drift produces new strains of the subtypes of the Type A influenza virus. The human population has already been exposed to flu caused by these subtypes of the Type A influenza virus.
Thus, the entire genetic information of the virus is known, and has been used to develop preventive flu vaccines. The newly formed strain would be a result of an antigenic drift and just a slightly changed version of the subtype of the Type A influenza virus. Thus, the infections from these new strains can be controlled by using the already available preventive flu vaccines.
The only drawback is that the person needs to be vaccinated every year because as the virus undergoes an antigenic drift, a new strain is formed replacing the older strains against which the people had been previously vaccinated.
As a result, the immune system cannot recognize this new strain and an infection from this strain can occur in the body. This is why people often get infected with flu even though they have been vaccinated. It's because a new strain has developed and is attacking the body.
To overcome this problem, the government keeps a constant watch on the possible strains of the viruses that might cause an infection in the next flu season (November to March) and notifies the vaccine manufacturers about these strains so that the manufacturers can include the specified strains in the vaccines that are to be produced for the next flu season.
An antigenic shift results in the formation of an entirely new Type A influenza virus, which has never attacked the human population before. Therefore, the complete genetic information about this virus is unknown and there is no preventive vaccine available against this newly formed virus. Since human beings are exposed to this virus for the first time, their immune system does not have the mechanism to resist the virus.
In addition, the new Type A influenza virus formed after an antigenic shift generally is highly contagious for humans because it becomes airborne and thus, can spread from person to person by just a cough or a sneeze. This significantly increases the chances of the disease turning into a pandemic. Thus, an antigenic shift of the influenza virus is significantly more dangerous and problematic than an antigenic drift.
Even though the Type B influenza virus, shares a very similar structure (in respect to the surface proteins) to the Type A, it is less dangerous and causes milder illnesses, as compared to the Type A influenza virus. This is due to the fact that the Type B virus exclusively infects humans, so there is no chance for it to undergo an antigenic shift.
Thus, the Type B influenza virus can only undergo an antigenic drift, which occurs slowly in this virus and can be treated with minor modifications to the existing vaccines.
The Type C influenza virus infects animals but rarely infects human beings. The surface protein composition of this virus is entirely different from the Type A and the Type B. It contains only one surface protein, the gp88 protein, as compared to the two (H protein and N protein) proteins in the two other types of influenza viruses. The gp88 protein is much more stable than the H and N proteins and rarely undergoes any variation. There has been no report of any antigenic shift in this virus and even though it undergoes antigenic drift, it does so at a very slow rate.
The lack of possibilities of an antigenic shift in the Type B and C influenza viruses makes it practically impossible for them to cause a pandemic.
How Does the Swine Flu Virus Work?
In order to cause a viral infection, the virus must first enter a human cell. For doing so, the virus must locate a site (known as a receptor), which it can bind to and attach itself. In case of swine flu, a sugar molecule called sialic acid, which is present in the mucous membrane, acts as the receptor for the virus. (The mucous membrane is a group of cells that covers and lubricates the various passages and cavities exposed to air, including the mouth, nose and inner portion of the eyelids).
Thus, the Type A influenza virus causing swine flu enters the human body through the mucous membranes of the mouth, eyes or nose.
The swine flu virus consists of two proteins called hemagglutinin (H protein) and neuraminidase (N protein) on its surface. The H protein of the virus attaches itself with sialic acid in the mucus membrane. This binding of H protein with sialic acid permits the entry of the virus into the human cell.
Once inside the human cell, the virus releases its genetic material, called ribonucleic acid (RNA), which starts the production of new copies of the swine flu virus inside the body.
The virus reprograms the human cell to make viral proteins. By using the viral proteins synthesized inside the human cell, the swine flu virus multiplies rapidly and new copies of the virus are produced. Thus, the infected cell essentially becomes a virus-producing factory.
These newly synthesized swine flu viruses leave the infected human cell with the help of N protein and go on to infect the adjacent healthy cells.
The Current Effective Treatments for Swine Flu
Based on the U.S. government's declaration on April 26, 2009, that swine flu is a public-health emergency, on April 27, 2009, the U.S. Food and Drug Administration (FDA) recommended the off-label use of the existing flu drugs, Tamiflu (oseltamivir) by Gilead Sciences, Inc./Roche Holding Ltd. (GILD/RHHBY) and Relenza (zanamivir) by GlaxoSmithKline Plc./Biota Holdings Ltd. (GSK/BTAHY.PK) for the treatment and/or the prevention of an infection with the swine flu virus.
The U.S. government has released 25% (12.5 million dosages) of these drugs from the National Stockpile as a response to the swine flu outbreak.
Tamiflu: A pill, is approved as a treatment and a prevention of flu for individuals, who are over the age of 1, while Relenza, an inhaled drug, is approved for the treatment of flu for individuals who are over 7 years old and for the prevention of flu in individuals who are over 5 years old.
Off-label use: A physician's practice of prescribing a drug or medical device for indications beyond those approved by the FDA. For example – the drugs can be used beyond their approved age groups like Relenza can be given as a treatment for children under the age of 7, even though that is not included in its FDA approved label.
National stockpile: The U.S. government piles few million antiviral drugs as part of public health preparedness for a pandemic. This is called National Stockpile. At present, the U.S. government has 50 million anti-viral treatments in its National Stockpile.
Both Tamiflu and Relenza seem to be effective in improving the symptoms of swine flu. Additionally, the use of these drugs also helps to stop the spreading of the swine flu virus. However, these drugs are most effective when taken at an early stage (within 48 hours of the start of flu-like-symptoms).
Disadvantages of the Current Effective Treatments
Both Tamiflu and Relenza cannot be used as preventive therapies for the entire population. Unlike a flu vaccine, these drugs do not provide long-term protection and can be used as a preventive therapy only in short-term situations for people who are at increased risk of complications from swine flu.
Additionally, these drugs should be administered within a stipulated time period (within 48 hours of the start of flu-like-symptoms). This is important because the late initiation of treatment can reduce the efficacy of the drugs.
Moreover, there are dangers of the individual's development of resistance against these drugs, whereby these drugs will not be effective anymore.
No Vaccine Against Swine Flu
Currently, there are no vaccines available in the market, which can specifically give protection against swine flu. The currently approved flu vaccines like Afluria (made by CSL Limited), Fluarix (made by GlaxoSmithKline Biologicals, a subsidiary of GSK), FluLaval (made by ID Biomedical Corporation, a subsidiary of GSK), FluMist (made by MedImmune Vaccines Inc., a subsidiary of AstraZeneca Plc./AZN), Fluvirin (made by Novartis Vaccines and Diagnostics Limited, a subsidiary of Novartis AG/NVS) and Fluzone (made by Sanofi Pasteur Inc., a subsidiary of Sanofi-Aventis/SNY), will not be effective in preventing swine flu because these vaccines have been developed using the genetic information and details of the existing seasonal flu viruses.
Swine flu is caused by an entirely new virus that people have not been exposed to before. Mostly healthy adults are at risk of suffering from the serious complications of swine flu. The entire genetic information of swine flu is yet to be made available, hence, any effective vaccine development will at least take 4 - 6 months.
Upcoming Drugs for Flu: Potential Treatments of Swine Flu
CS-8958by Biota Holdings Ltd. (BTAHY.PK) and Daiichi Sankyo
Status: Phase III trial.
In March 2009, BTAHY.PK reported the completion of the enrollment process of the Phase III trial of CS-8958.
Mode of Administration: Inhaled
Mechanism of Action:
The flu virus attacks the human cells, multiplies and ultimately releases itself from the infected cells and infects new ones.
A protein, called viral neuraminidase, present on the surface of the virus enables the virus to get released from the infected cells.
CS-8958is a drug that inhibits the functioning of viral neuraminidase, thereby inhibiting the release of the virus from the infected cells.
Advantages of CS-8958:
In contrast to existing drugs like Tamiflu, which needs twice-daily oral administration for 5 days, and Relenza, which require twice-daily inhalation for 5 days, CS-8958 needs to be inhaled only once.
Peramivir Intravenous by BioCryst Pharmaceuticals, Inc. (BCRX)
Status: Phase II trial
In October 2008, the company reported positive data from the Phase II trial of Peramivir Intravenous.
Mode of Administration: Intravenous (injected in the vein) injection.
Mechanism of Action:
Peramivir Intravenous inhibits the functioning of viral neuraminidase, thereby inhibiting the release of the virus from the infected cells.
Advantages of Peramivir Intravenous:
Existing drugs like Tamiflu (which requires oral administration) and Relenza (which is inhaled) are difficult to be administered in unconscious flu patients. In contrast, Peramivir Intravenous is injected, hence, can be easily administered in unconscious patients.
Companies with Drugs that Potentially Target the Swine Flu Outbreak
The pharmaceutical and biotechnology companies that play an active role in the flu treatment and prevention market are expected to experience a substantial increase in the sales of their drugs if the outbreak of swine flu continues and the demand for the antiviral drugs, vaccines and other preventive measures increases drastically.
Roche Holding Ltd. (RHHBY.PK): It is a large-cap pharmaceutical company that focuses on the development and marketing of a wide range of pharmaceutical and diagnostic products. The company develops and markets Tamiflu, which is a drug approved for the treatment and the prevention of flu in individuals who are over 1 year old. Gilead Sciences, Inc. (GILD) co-develops Tamiflu and receives a 20% royalty on the net sales of the drug. RHHBY reported sales of approximately $349 million for the three months ended on March 31, 2009, for Tamiflu. RHHBY has increased the production of Tamiflu as the FDA has authorized the off-label use of Tamiflu for the treatment of swine flu.
GlaxoSmithKline Plc. (GSK): A large-cap pharmaceutical company, which is focused on the discovery, development and marketing of a variety of pharmaceutical and consumer health-related products. GSK in collaboration with Biota Holdings Ltd. (BTAHY.PK) develops and markets Relenza, which is approved as the treatment of flu for individuals who are over 7 years of age and as the prevention of flu in people, who are over 5 years old. GSK reported sales of approximately $462 million for the three months ended on March 31, 2009 for the drug. The FDA has authorized the emergency off-label use of Relenza for the treatment of swine flu, resulting in an escalated production of Relenza.
Biota Holdings Ltd. (BTAHY.PK): A pharmaceutical company that focuses on the development of drugs and vaccines for the treatment and the prevention of infections. In collaboration with Daiichi Sankyo of Japan, the company is developing a dry powder inhaled drug CS-8958 for the treatment of flu. The drug has been found to possess long-acting properties against the influenza virus and is also expected to work against swine flu virus.
BioCryst Pharmaceuticals Inc. (BCRX): A biotechnology company focused on the development of drugs for cancer, viral infections and immune system diseases. The company is developing Peramivir Intravenous, an antiviral drug for the treatment of flu.
Novavax Inc. (NVAX): The company focuses on developing vaccines for infectious diseases, using its proprietary technology platform known as virus-like particle (VLP) technology. This vaccine technology is one of the fastest methods for creating a vaccine, which is expected to successfully target the unmet market need for swine flu vaccine.
Virus-like particle (VLP) technology: By using this technology, a virus like particle (VLP) is made, which is structurally similar to the targeted virus (the live, disease-causing virus, against which a vaccine is being made) but does not contain the particular genetic information of the virus that is necessary for the viral replication process. When the VLP is injected into the body, it enters the human cells, just like a natural live virus. Since the VLPs look like the live virus, the immune system recognizes them as foreign, becomes activated and starts acting against them. Once the immune system gets exposed to and activated against a dummy virus (the VLP) it is able to recognize the virus if there's ever any future contact and mounts a strong attack against it at that time. Since, the VLPs resemble the live disease-causing virus, the immune system (which has been already exposed to the VLP) easily recognizes them as foreign and launches a powerful attack, when the actual live virus attacks the body.
Since, the VLP does not contain any genetic information necessary for the viral replication process, the dummy virus cannot replicate itself in the body so it does not pose any threat of infection to the person being vaccinated.
MedImmune, a unit of AstraZeneca PLC (AZN): MedImmune, wholly owned by AZN is focused on infection, cancer, respiratory diseases, inflammation, cardiovascular and gastrointestinal disease. The company is developing a needle-free, nasal spray swine flu vaccine by using its Live Attenuated Influenza Vaccine (LAIV) technology.
Live Attenuated Influenza Vaccine (LAIV) technology: By using this technology, a needle-free, nasal spray flu vaccine is made. This vaccine delivers live flu virus strains that are weakened so as not being able to cause the disease but prompt the recipient's body to produce an immune response against the virus.
Novartis AG (NVS): A multinational pharmaceutical company is developing swine flu vaccine. On June 12, 2009, NVS announced that it has produced the first batch of its swine flu vaccine, which will now be forwarded for pre-clinical testing and is also being considered for use in human clinical trials.
Sanofi-Aventis (SNY): A pharmaceutical company that focuses on enhancing the life of humans by providing medicines, vaccines and integrated health care solutions for cardiovascular, metabolic diseases, oncology, central nervous system disorders (the brain and the spinal cord disorders) and vaccines. Its vaccine unit has begun the development of swine flu vaccine.
Baxter International Inc. (BAX): This is a pharmaceutical company focused on the development and marketing of products for immune disorders, infectious diseases, kidney disease, trauma and other chronic and acute medical conditions. The company makes both seasonal and pandemic vaccines and has shown considerable interest in the development of a vaccine for swine flu.
3M Company (MMM): A diversified technology company with a wide portfolio of products and services (including health care products) to serve customers. The health care segment focuses on providing medical and surgical supplies, skin health and infection preventive products and dental products. The company makes protective face masks (marketed as N95 respirators), which are currently being used by people to prevent swine flu. This mask can effectively filter the virus from the air and prevent people from contracting the disease.
Financial Data
(Data as on May 4, 2009, the initial report date)
Roche Holding Ltd. (RHHBY.PK)
Stock Price as on May 4, 2009: $31.86
Market Cap as on May 4, 2009: $109,917.00
52 weeks Range: $26.01 - $93.41
Revenue FY08 ($MM): $39,772.40
EPS FY08: +$2.23
Cash Per Share: $5.26
R&D FY08 ($MM): $7,711.80
Gilead Sciences, Inc. (GILD)
Stock Price as on May 4, 2009: $44.90
Market Cap as on May 4, 2009: $40,865.29
52 weeks Range: $35.60 - $57.63
Revenue FY08 ($MM): $5,335.75
EPS FY08: +$2.10
Cash Per Share: $3.83
R&D FY08 ($MM): $721.76
GlaxoSmithKline Plc. (GSK)
Stock Price as on May 4, 2009: $30.95
Market Cap as on May 4, 2009: $80,160.50
52 weeks Range: $27.15 - $49.48
Revenue FY08 ($MM): $36,450.20
EPS FY08: +$2.64
Cash Per Share: $4.02
R&D FY08 ($MM): $5,247.80
Biota Holdings Ltd. (BTAHY.PK)
Stock Price as on May 4, 2009: $2.50
Market Cap as on May 4, 2009: N/A
52 weeks Range: $0.60 - $4.95
Revenue FY08 ($MM): N/A
EPS FY08: N/A
Cash Per Share: N/A
R&D FY08 ($MM): N/A
BioCryst Pharmaceuticals Inc. (BCRX)
Stock Price as on May 4, 2009: $3.08
Market Cap as on May 4, 2009: $118.06
52 weeks Range: $0.85 - $4.89
Revenue FY08 ($MM): $56.56
EPS FY08: -$0.65
Cash Per Share: $1.62
R&D FY08 ($MM): $73.32
Novavax Inc. (NVAX)
Stock Price as on May 4, 2009: $1.68
Market Cap as on May 4, 2009: $115.68
52 weeks Range: $0.52 - $3.88
Revenue FY08 ($MM): $1.06
EPS FY08: -$0.53
Cash Per Share: $0.50
R&D FY08 ($MM): $24.33
Sanofi-Aventis (SNY)
Stock Price as on May 4, 2009: $29.27
Market Cap as on May 4, 2009: $79,907.10
52 weeks Range: $23.95 - $39.68
Revenue FY08 ($MM): $38,233.00
EPS FY08: +$1.95
Cash Per Share: N/A
R&D FY08 ($MM): $6,069.90
Baxter International Inc. (BAX)
Stock Price as on May 4, 2009: $50.08
Market Cap as on May 4, 2009: $30,299.40
52 weeks Range: $46.63 - $71.53
Revenue FY08 ($MM): $12,348.00
EPS FY08: +$3.16
Cash Per Share: $2.74
R&D FY08 ($MM): $868.00
3M Company (MMM)
Stock Price as on May 4, 2009: $58.48
Market Cap as on May 4, 2009: $40,607.34
52 weeks Range: $40.87 - $79.89
Revenue FY08 ($MM): $25,269.00
EPS FY08: $4.89
Cash Per Share: $2.70
R&D FY08 ($MM): $1,404.00
AstraZeneca Plc. (AZN)
Stock Price as on May 4, 2009: $35.99
Market Cap as on May 4, 2009: $52,185.50
52 weeks Range: $29.96 - $49.85
Revenue FY08 ($MM): $31,601.00
EPS FY08: +$4.20
Cash Per Share: $3.10
R&D FY08 ($MM): $5,013.00
Novartis AG (NVS)
Stock Price as on May 4, 2009: $38.58
Market Cap as on May 4, 2009: $87,190.80
52 weeks Range: $33.34 - $61.30
Revenue FY08 ($MM): $42,584.00
EPS FY08: +$3.59
Cash Per Share: $3.43
R&D FY08 ($MM): $7,217.00
Swine Flu vs. Seasonal Flu
Seasonal Flu
Description in Short: Outbreak of flu that follows a predictable seasonal pattern and occurs almost every year, usually from November to March.
Symptoms: Fever, headache, tiredness, dry cough, sore throat, runny nose and muscle pain.
Market Size: U.S.: Approximately $2 billion annually
Patient Population: U.S.: Approximately 226,000 cases annually
Individuals at Risk: Old, very young and those individuals with chronic illnesses
Number of Deaths:
Worldwide: 250,000 – 500,000 people annually
U.S.: Approximately 36,000 people annually
Availability of Preventive Vaccines:
Six approved flu vaccines - Afluria (made by CSL Limited), Fluarix (made by GlaxoSmithKline Biologicals, a subsidiary of GSK), FluLaval (made by ID Biomedical Corporation, a subsidiary of GSK), FluMist (made by MedImmune Vaccines Inc., a subsidiary of AZN), Fluvirin (made by Novartis Vaccines and Diagnostics Limited, a subsidiary of NVS) and Fluzone (made by Sanofi Pasteur Inc., a subsidiary of SNY)
Available Treatments:
Tamiflu by GILD/RHHBY and Relenza by GSK/BTAHY.PK
Swine Flu
Description in Short: Sudden outbreak of a new type of flu, which has never occurred before
Symptoms: High fever (103-105°F), cough, sore throat, runny nose, nasal congestion, body aches, headache, chills, lack of appetite and fatigue, nausea, vomiting, diarrhea and dehydration
Market Size:
Estimated** U.S.: Approximately $120 billion
Patient Population:
Current:
Worldwide: 28,774 confirmed cases
U.S.: 13,000 confirmed cases
Estimated**
Worldwide: Approximately 1.5 billion cases
U.S.: Approximately 90 million
Individuals at Risk: Everyone, including young and healthy individuals who are not suffering from any kind of chronic illnesses
Number of Deaths:
Current*
Worldwide: 144 deaths
U.S.: 27 deaths
Estimated**
Worldwide: Approximately 70 million
U.S.: Approximately 2 million
Availability of Preventive Vaccines: None
Available Treatments: Tamiflu by GILD/RHHBY and Relenza by GSK/BTAHY.PK are being used off-label but no treatment that is specifically intended or indicated for the disease.
*Data as of June 11, 2009
** An estimate by the World Health Organization (WHO).
Effects on the Economy Due to Swine Flu
The swine flu outbreak poses a potential threat to the global economy. The world economy is currently suffering from the worst financial crisis in decades. If there is a widespread outbreak of swine flu pandemic, it is expected to cost approximately $3 trillion (an estimate by the World Bank), triggering a new threat to the already crippled economy.
The travel and tourism and airlines industries may undergo a major hit due to the outbreak of swine flu. All U.S. citizens have been asked to avoid nonessential travel to Mexico. The European Union has urged its citizens to avoid visiting affected parts of the U.S. and Mexico. Thailand, Australia, Japan and Singapore are certain countries that are screening travelers from North America for the disease. Hong Kong, Russia and Taiwan will quarantine visitors with flu-like symptoms.
The food industry has also been affected by the outbreak of the disease. The U.S. is a major exporter of pork. Many countries such as China and Russia, which are major importers of pork and pork products, have banned imports from the U.S.
Swine Flu vs. Bird Flu
Among the recent outbreaks of flu across the world, avian (bird) flu is a notable one and has been caused by the Type A influenza virus. Birds have been reported to be attacked by various subtypes of the Type A influenza virus including H1N1, H1N8, H2N9, H3N2, H3N8, H4N3, H4N6, H5N1, H5N9, H6N1, H6N2, H6N5, H6N8, H7N1, H7N3, H7N7, H8N4, H9N2, H9N6, H10N7, H10N8, H11N6, H11N9, H12N5, H13N6, H14N4, H15N4 and H15N9. However, all these subtypes are not responsible for causing severe infection in birds. Out of all these viruses, the H5N1 subtype of the Type A influenza virus is the most infective type, which caused serious avian flu and killed millions of poultry globally. An outbreak of avian flu was first reported in Asia in mid-2003.
There have been reports (predominantly in Asia), of the H5N1 virus spreading from birds to humans, primarily in people working closely with birds. Since 2003, there have been approximately 421 human cases of avian flu worldwide, which have resulted in 257 deaths. In the U.S, while the H5N1 virus caused outbreaks amongst poultry in 2003 and 2004, there was only one human infection reported in 2003. The symptoms of avian flu include fever, cough, sore throat, muscle aches, eye infections, pneumonia and respiratory problems.
The current swine flu outbreak is anticipated to be much more severe than avian flu because in the case of avian flu, the human-to-human transmission was very rare, whereas in case of swine flu, the virus has the ability to spread from one person to another, posing a high risk of a pandemic.
Swine Flu vs. Mad Cow Disease
Mad cow disease is an infectious, fatal disease in cattle that affects the brain of the animals. The causative agent of this disease is an abnormal protein called prion that destroys the brain tissues of the animals, making sponge like holes in parts of the brain, ultimately causing their death. The disease was first reported in the United Kingdom (UK) in 1986, which was followed by many European countries. Canada reported its first incident of mad cow disease in May 2003, followed by another incident in Washington in the U.S. in December 2003.
Humans get infected if they eat the diseased tissues of the infected cattle and develop the human form of the disease called Creutzfeldt-Jakob disease (CJD). The first case of CJD was identified in the UK in 1996. This disease is rare in human beings and approximately 200 people are known to die from CJD annually in the U.S. The symptoms include depression, anxiety, memory lapses, social withdrawal, lack of sleep, visual disturbances, fatigue and bizarre behavior.
CJD is not caused by any virus or bacteria. It is caused by an infectious protein and does not appear to get transmitted from person to person. Additionally, CJD is not contagious.
What Are the Steps to Prevent Swine Flu?
Frequent hand washing – Frequent washing of hands with soap and water is a highly recommended measure to combat swine flu because the swine flu virus can be contracted by touching objects contaminated by the virus. Since, it's unknown about how long the swine flu virus can survive on surrounding objects, it's highly recommended to have frequent hand washes.
Masks – Wearing a mask that is capable of protecting against infections can help prevent swine flu because it prevents the virus from entering the body via the respiratory tract.
Cover the mouth and nose during coughs and sneezes – Cover the mouth and nose by a tissue while coughing and sneezing and avoid touching the mouth and nose with one's hands because the swine flu virus is transmittable through the respiratory droplets of an infected person. This is important because an individual carrying the swine flu virus can be contagious for several days before showing any symptoms of the infection. The tissue, once used should be thrown away in the garbage immediately.
Stay at home – In case a person feels sick with flu-like symptoms, he/she should stay at home and not go to work, school and any social gathering. If the condition worsens, then he/she should contact a healthcare provider or a hospital emergency room. In this way, the infection can be prevented from spreading to others.
Avoid close contact as much as possible with people who are sick – Healthy individuals should avoid coming close to infected ones, which is a method of preventing the spread of the infection.
Conclusion
The current outbreak of the swine flu virus has reached a serious pandemic threat because it is a mutated form of a virus for which there are no specific preventive or curative treatments till date.
To make matters worse, the disease is highly contagious and can be spread from person to person via the airborne method. Current treatments for the disease include off-label use of some existing seasonal flu drugs but there are companies that are in the process of developing a treatment that is specifically indicated and targeted towards swine flu.
Until a definitive treatment is developed for this disease, the only solution is prevention and control.
Some of Today's Gainers...
The Bottom Line...
The markets are once again making it difficult for traders as they mixed some very important technical failures with a strong close this week that hints at an attempt to bottom out. The possibility of a bounce from this level is very real, especially in light of the markets being oversold on a few indicators. However, the path of least resistance is lower now, with the indexes in a near term pattern of lower lows and lower highs. Traders will need to closely monitor how the indexes deal with last weeks highs if tested in the coming week. In the grand scheme of things, the general indexes remain in a much larger trading range established over the past year. All the indexes are trading closer to the bottom of this range, and coupled with the recent price action, it is making for a vulnerable environment. Traders should continue to trade cautiously until a clearer direction emerges.
NGBF is a renewable biofuel provider that's primely positioned to become an industry leader by marketing a new class of "Second Generation" biofuels for use in diesel fuel applications including power generation, and commercial and industrial heating.
NGBF is on the leading edge of the biofuel industry because it has developed proprietary blending technology, which is simpler, cleaner and more cost and energy efficient than the chemical processes used to create traditional biodiesel fuel.
For those of you not familiar with the Biofuels sector, it is projected to boom in the upcoming decades and New Generation Biofuels is poised to transform this industry with its proprietary blending technology that has positioned the Company to meet the needs of its customers far better than any of its competitors.
Before we get into the specifics of how this Company has positioned itself for tremendous long term success in the Biofuels industry, we want to show you why technical indicators and market timing have us believing that NGBF is one of our most amazing picks ever and a tremendous opportunity if you act now!
NGBF is currently priced close to its 52 week low, , leading us to believe that it is EXTREMELY OVERSOLD and ready to make a huge price reversal making it a BUY at its present levels. Only a few months ago NGBF was more than double where it is today. It can easily return to these levels. In fact...
Leading Technical Indicators Show that NGBF is Extremely Oversold and Unappreciated
The 3 most commonly followed technical indicators used by the savviest and most profitable investors are Moving Average Convergence Divergence (MACD), the Relative Strength Index (RSI) and Stochastic Oscillators.
As you can see on the chart below, all three of these indicators point to NGBF being OVERSOLD right now, which means that any positive news or event could cause a HUGE Breakout!!!
ODP - 52wk Low
http://www.chartmoney.com/stockquotes.php?ticker=odp
Office Depot, Inc., together with its subsidiaries, supplies a range of office products and services.
Technicals
Record Price Low
Today's Market Focus.......
• December 10-year T-notes this morning are trading down -2.5 ticks. Dec 10-year T-note prices yesterday tumbled the entire session and closed down -26.5 ticks at 124-244. Bearish factors included (1) reduced concerns about the global economy after China's manufacturing activity accelerated more than expected in August and Australia's economy expanded in Q2 at its fastest pace in 3 years, (2) the unexpected increase in the Aug ISM manufacturing index (+0.8 to 56.3 versus expectations of -2.7 to 52.8), (3) the unexpected increase in the prices paid sub-index of the Aug ISM manufacturing index (+4.0 to 61.5 versus expectations of -2.2 to 55.3), and (4) reduced safe-haven demand for Treasuries after the stock market rallied sharply. Bullish factors included (1) the unexpected decline in jobs in the Aug ADP employment change (-10,000 versus expectations of +15,000), and (2) the larger-than-expected decline in Jul US construction spending which fell for the third straigh t month and the downward revision to Jun construction spending (Jul -1.0% versus expectations of -0.5% and Jun revised down to -0.8% from +0.1%).
• The dollar index this morning is slightly weaker with the dollar/yen -0.24 yen and the euro/dollar +0.22 cents. The dollar index yesterday slipped to a 1-1/2 week low and finished moderately lower. Bearish factors included (1) reduced safe-haven demand for the dollar after the stock market rallied sharply, (2) comments from Chinese Premier Jiabao that boosted the euro when he said China and western countries should work together to enhance the world's confidence in the euro and the European Union economy, and (3) the action by Bank of America Merrill Lynch to hike its year-end forecast for the yen to 81 to the dollar from a previous forecast of 90, citing expectations the Fed will increase monetary easing to preserve the US economic recovery. Bullish factors included (1) the unexpected decline in Jul German retail sales which fell for a second month and is negative for the euro, and (2) increased safe-haven demand for the dollar after the Aug ADP employment change une xpectedly declined, which fuels concern about Friday's Aug nonfarm payroll report.
• October crude oil prices this morning are trading down -32 cents a barrel and October gasoline is -0.20 of a cent per gallon. Oct crude oil prices yesterday moved higher and closed up +$1.99 a barrel. Oct gasoline closed higher by +3.17 cents per gallon. Bullish factors included (1) the fall in the dollar index to a 1-1/2 week low, (2) the acceleration in manufacturing in the US and China, the world's biggest energy-consuming countries, by more than expected last month, (3) the rally in the S&P 500 to a 1-week high, which bolsters confidence in the economic outlook and energy demand, (4) the larger-than-expected increase in weekly crude oil inventories (+3.42 million bbl versus expectations of +1.3 million bbl), (5) the unexpected decline in weekly distillate supplies (-739,000 bbl versus expectations of +1.0 million bbl), and (6) an increase in demand after total US fuel demand rose +0.4% to 19.6 million barrels a day in the past 4 weeks ending Aug 27. Bearish f actors included (1) the unexpected decline in July German retail sales for a second month, (2) the larger-than-expected decline in the Aug UK manufacturing PMI to its lowest level in 9 months, and (3) the larger-than-expected decline in Jul US construction spending which fell for the third straight month.
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The markets staged an impressive rally the past few days after threatening to continue their recent slide earlier in the week. The general indexes were looking vulnerable by late Tuesday as they headed for a retest of last week's lows, but a sharp gap higher on Wednesday caught bears flat footed and ended up leading to a three-day surge. The markets ended the week sharply higher and cemented the recent lows as support. They remain in a trading range, and could be on their way for a retest of the July highs.
Bottom Line...
This week's price action was very constructive as it showed aggressive buying near support levels. While this doesn't guarantee a bottom is in, it is the first step in a possible bottoming process. The markets have quickly gotten ahead of themselves, and while they may ride the current momentum a little higher, the more likely scenario is a retracement of at least a portion of this week's rally. The markets are still within a much broader trading range, and it is still too early to know if this is a larger topping process or if a new base is being formed. The levels to watch are pretty clear with this week's bounce clearly showing where support is, and the July highs marking resistance. With summer practically over, the next few weeks should usher in an increase in volume and provide more clues as to the next move in the markets. Either way, it is sure looking like there could be a strong move in autumn.
View by Fundamentals...
Healthy Profit Margin .Strong profit margin is a hallmark of any great stock. A profit margin of 50% means the company is generating 50 cents of profit for each $1 of sales.
Stocks with the high annual profit margin, sorted by profit margin, secondary sort by latest quarter EPS % change; price >= $15, average daily volume >= 400,000 shares, within 30% of a 52-week high.
BVN
CHKP
EPB
ICON
CELG
Markets Update
U.S. Stocks Nab Third Weekly Gain
Stocks ended mixed Friday, but notched their third straight weekly gain. Techs outshined on the session, thanks to upbeat earnings from Oracle (ORCL) and Research In Motion (RIMM). Both big-caps reported late Thursday.
The Nasdaq stretched its win streak to eight sessions, rising 0.5%. That's the longest hot streak since a 12-session marathon in July 2009.
Meanwhile, the S&P 500 rose 0.1%. But it pared gains after hitting resistance at the 1131 level. Meanwhile, the Dow also gained 0.1%, while the NYSE composite fell 0.2%. Turnover surged across the board due to the expiration of options and futures.
For the week, the Nasdaq rose 3.3% and NYSE composite 1.2%. The Dow and S&P 500 gained 1.4% each.
Thinly traded 51job (JOBS) rocketed 13% to a five-year high. The stock followed up after clearing a short consolidation Thursday. China-based 51job is a provider of human resources services. It has delivered three straight quarters of triple-digit earnings growth.
IPG Photonic (IPGP) rallied 4% and touched a fresh three-year high in fast trade. The stock cleared a 19.30 buy point on Aug. 3 on a cup base, and has gained 23%. IPG makes lasers for materials processing, telecom and medical applications. Analysts see its full-year earnings skyrocketing 542%. The stock is No. 53 in this week's IBD 100.
Radware (RDWR) gained 5% in nearly triple its average volume. The Israeli networking firm has gained 34% this week on reports that it may be a takeover target. Hewlett-Packard (HPQ) and IBM (IBM) have been named as potential suitors. Radware has shot up more than 50% from a 24.10 buy point in a cup-with-handle base cleared Aug. 24.
Energy XXI (EXXI) reversed early losses and rose 3% in nearly double its average volume. The stock cleared a 21.45 buy point in a cup-with-handle base. Earlier this month, the oil and gas producer reported fiscal Q4 earnings of 20 cents a share, smashing views of a nickel. Analysts see its full-year earnings surging 170%.
On the downside, Sina (SINA) reversed from a two-year high and dropped 5% in more than three times normal volume. Despite the downturn, the stock still sits 4% past a 46.02 buy point in a cup-with-handle base.
The National Association of Home Builder's housing market index will be out Monday along with earnings from homebuilder Lennar (LEN).
Markets Update
U.S. Stocks Fall On Economic Concerns
Economic worries sent stocks lower Wednesday. But equities ended off their worst levels of the session. Investors bought bonds on hopes of quantitative easing after Tuesday's Fed statement hinted at additional stimulus measures. Gold hit a fresh record high.
The Nasdaq settled 0.6% lower after being down more than 1% at its intraday bottom. Adobe Systems (ADBE) tumbled 19% after giving a soft sales outlook late Tuesday. But Apple (AAPL), Amazon.com (AMZN) and Google (GOOG) scored gains.
Meanwhile, the NYSE composite and S&P 500 fell 0.5% each and the Dow edged down 0.2%. Trade fell on the Nasdaq and NYSE.
Only a handful of leaders declined in heavy trading.
STR Holdings (STRI) fell 6% in nearly twice its average trade. The stock closed just above its recently formed 200-day moving average. STR, which makes encapsulants used in solar modules, went public in November 2009. Wednesday marked STR's fourth straight loss in heavy volume. The stock is now 28% off its 52-week high.
Aruba Networks (ARUN) shed 6% in brisk trading, wiping out Tuesday's move. But the stock remains 13% past an 18.51 buy point from a square box.
Riverbed Technology (RVBD) reversed early mild gains and fell 5% in heavy volume, its biggest one-day drop in almost three months. The stock, which had been in a rebound off its 10-week moving average, nearly hit a three-year high Monday.
Lululemon Athletica (LULU) fell 4% as its recent breakout continued to fizzle. The stock closed below a 43.47 buy point from a double-bottom base. The Retail-Apparel/Shoes/Accessories industry group slipped to 143rd from 113th among 197 IBD industry groups over the past week. It sports a 99 Earnings Per Share Rating.
On the upside, Netflix (NFLX) gapped up and rallied nearly 7% to a fresh record high. The entertainment firm expanded its video streaming service into Canada. It was No. 1 in Monday's IBD 100.
After the close, Red Hat (RHT) gained 3% after reporting fiscal Q2 earnings and sales above views. The stock fell 4% in heavy trading during Wednesday's regular session but was still 13% above a 32.62 buy point.
Initial jobless claims and leading economic indicators will be out Thursday. Nike (NKE) and Tibco Software (TIBX) will report earnings.
Flagging Restaurant Stocks Look Less Than Appetizing...
Restaurant stocks have been one of the strongest groups over the past year as stocks like McDonald's (NYSE:MCD), Yum! Brands (NYSE:YUM) and Chipotle Mexican Grill (NYSE:CMG) have moved to all-time highs. There was a real fear that many restaurant stocks would suffer through the recession and while many names are trading much lower, as a whole this sector has been trending higher for almost two years. But despite this group's strength, it doesn't really garner the same level of attention from the media that other market leaders receive.
Chipotle Mexican Grill (NYSE:CMG), for example, has proved to be a clear market leader. CMG had been in a consolidation through most of the summer, while the markets were threatening to break down. CMG then broke out of its base well ahead of the markets in September, and is now building a flag above its breakout area. Whether CMG can clear this flag now or not, it is clear that it is one of the strongest stocks in the market right now.
Flagging Restaurant Stocks Look Less Than Appetizing...
While many traders may be aware of CMG and its strength, other restaurant stocks like BJ's Restaurants (Nasdaq:BJRI) have also been performing well. While many of these are not already above their bases like CMG, they are building flags after clearing important resistance levels. BJRI has been building a base since April and recently cleared some resistance levels near $26. While the base for BJRI is not perfectly defined, there is a clear level of resistance just under $28. BJRI is currently flagging just under this level; a move above the flag could lead to a break above the entire base.
Flagging Restaurant Stocks Look Less Than Appetizing...
Cracker Barrel Old Country Store (Nasdaq:CBRL) is another restaurant stock building a flag just under key resistance levels. CBRL was trading in a well-defined channel over the past few months until recently breaking out of that range. It has begun to flag in the $50-$51 level. A breakout from the flag could lead to a break above the more important resistance level of $53.
Flagging Restaurant Stocks Look Less Than Appetizing...
Darden Restaurants (NYSE:DRI) also recently cleared resistance as it broke above the neckline of an inverse head and shoulders it has been building since May. DRI was able to clear pretty significant resistance around $44-$45 and is now flagging at that level. DRI's prior high was just above $48; a move above the flag should lead to at least a retest of this level.
Flagging Restaurant Stocks Look Less Than Appetizing...
The Bottom Line
Other stocks in this sector, such as DineEquity (NYSE: DIN) and Krispy Kreme Doughnuts (NYSE:KKD), are also showing similar flag patterns. Because institutions often accumulate a basket of stocks in a specific sector, traders should always be on alert when a pattern is found across multiple stocks. The bull flag is a bullish continuation pattern, and these stocks are all building this pattern after clearing important resistance levels. While not all flags are resolved to the upside, traders should be on high alert as this pattern often results in a sharp move once it is cleared.
Do you think these stocks can break out of their flags? ???
Brewers Looking Bullish...
Commentary:
In running through a screen for stocks near all-time highs, one group that kept popping up was brewers. These stocks are technically already in a bull market and many are emerging from recent bases. Any stock that was able to overcome the declines they suffered during our most recent bear market deserves some respect. The brewers were hit along with the rest of the markets, but ultimately, many of these stocks surged past their prior bull market highs several months ago. After consolidating for the past few months, these stocks are gaining momentum again and are starting to hit new highs.
Companhia de Bebidas das Americas (NYSE:ABV) is a brewer that is hitting all-time highs. ABV has managed to rally almost $100 from its bear market lows in late 2008. It had been trading in a sideways range for the better part of a year until recently beginning to move higher. It cleared an important level near $100 in June and then broke past $110 in September. The $110 level in particular is an area to watch as a possible support area moving forward.
Brewers Looking Bullish...
Fomento Económico Mexicano, S.A.B de C.V (NYSE:FMX) is another brewer trading near all-time highs. FMX cleared its base in late July and has been steadily rising since then. It has been hugging its 20-day moving average for several weeks as it pushes higher. The $50 level is a very important level to monitor, as this was its prior bull market high in 2008. FMX failed its first test of this level late in 2009 and then needed a few weeks to clear it in 2010. It finally managed to break out this month, which could force the hands of some short sellers.
Brewers Looking Bullish...
Boston Beer (NYSE:SAM) is another brewer near all-time highs, although it has not yet broken out. However, SAM cleared a huge resistance level near $54-$55 back in April and after a very volatile May, it followed through with a $20 rally into June. It has since settled into a consolidation that is taking the shape of a descending triangle. A move above the $70 level would get my attention as it could set a higher high and clear the trendline marking the top of the triangle. (For more, see Analyzing Chart Patterns: Triangles.)
Brewers Looking Bullish...
While Anheuser-Busch Inbev SA Sponsor (NYSE:BUD) is also at all-time highs, it should be noted that it didn't start trading until after the financial crisis. However, after trading sideways since it began trading in September 2009 through July of this year, it finally broke out. It initially looked like BUD would fail its breakout after dipping back into its base in August, but it gapped higher in September and took off from there. It is currently extended after a second gap, but showing great relative strength to the markets. The $55 level is one area to watch for possible support on a pullback.
Bottom Line...
While it's likely that the general markets will need to take a breather soon after experiencing a pretty sharp one-month rally, the benefit of the doubt currently lies with the bulls. When you have an up trending market, it makes sense to look for the strongest stocks, and the brewers currently fit the bill. They have been in a bull market of their own and this trend will likely continue if the markets can continue to head higher. Even if the markets take a breather, these stocks have proved themselves over the past several weeks and may find support relatively nearby. It's likely to take a severe market correction to derail their current trends.
•Biotech Stocks: Drug stocks inch higher as SIGA gains...
Drug stocks inch higher as SIGA gains
BOSTON (MarketWatch) -- Drug stocks inched higher early Thursday as shares of SIGA Technologies gained for the second day.
SIGA /quotes/comstock/15*!siga/quotes/nls/siga (SIGA 13.23, +0.39, +3.04%) shares were up 4% at $12.89 after soaring almost 50% on Wednesday on news that it an been awarded a potentially lucrative contract by the U.S. Department of Health and Human Services for its smallpox treatment.
The bio-defense firm stands to earn around $500 million from the contract, and up to $2.8 billion if all of the contract's options are exercised.
SIGA added that the contract will be officially awarded once it resolves questions regarding its small-business status with the Small Business Administration.
The NYSE Arca Pharmaceutical Index /quotes/comstock/10t!drg.x (DRG 317.16, +0.27, +0.09%) and the NYSE Arca Biotechnology Index /quotes/comstock/10t!btk.x (BTK 1,177, +8.49, +0.73%) were both nominally higher at 317.48 and 1174.74, respectively.
IBM authorizes $10B stock buyback...
ARMONK, N.Y. (AP) — IBM Corp. on Tuesday said its board approved an additional $10 billion in stock buybacks, representing nearly 6 percent of the computer company's outstanding shares.
IBM says the new buyback authorization adds to $2.3 billion remaining from a previous $8 billion authorization, issued in April.
The company also said it plans to request permission to buy even more shares at its next April board meeting.
IBM shares rose $1.07 to $140.91 in morning trading.
Companies often use buybacks to take advantage of low stock prices, but IBM's stock is close to its all-time high of $143.03, hit Oct. 18, just before it reported its third-quarter results.
IBM also said its board maintained the company's 65 cent quarterly dividend.
"IBM's higher value, higher margin business strategy has enabled the return of $91 billion since 2003 to our shareholders through share repurchases and dividends," Samuel J. Palmisano, IBM chairman, president and CEO, said in a statement.
Ten Stocks With Extreme Investor Optimism...
The following is a list of stocks seeing excessive optimism, as defined by analyst ratings, institutional ownership trends and options market activity.
All of these stocks have analyst ratings of "Buy" or better. Analyst ratings are presented on a linear scale, with ratings close to 1 indicating a "Strong Buy" analyst recommendation. Analyst ratings sourced from Finviz.
All of these stocks have seen institutional inflows over the last three months. Institutional data sourced from Reuters, based on holdings as of Friday, October 22.
All of these stocks have a large number of open call option positions relative to put option positions, i.e. bullish options market sentiment. Options data sourced from Schaeffer's.
Is this extreme optimism justified? If you're a contrarian, this bullishness might raise a flag.
The list has been sorted by change in institutional ownership over the last three months.
1. TriQuint Semiconductor, Inc. (TQNT): Semiconductor Industry. Market cap of $1.47B. Analyst rating at 2.3. Call open interest at 44,168 vs. put open interest at 6,628 (Put/Call ratio at 0.15). Institutional investors currently own 128,789,232 vs. 109,269,790 shares held 3 months ago (+17.86% change). The stock has gained 61.64% over the last year.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=49598)
2. SIGA Technologies, Inc. (SIGA): Drug Manufacturers Industry. Market cap of $630M. Analyst rating at 1.8. Call open interest at 19,352 vs. put open interest at 3,885 (Put/Call ratio at 0.2). Institutional investors currently own 14,089,556 vs. 12,973,442 shares held 3 months ago (+8.6% change). The stock has gained 94.36% over the last year.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=49599)
3. Exact Sciences Corporation (EXAS): Biotechnology Industry. Market cap of $315M. Analyst rating at 1.4. Call open interest at 56,393 vs. put open interest at 19,089 (Put/Call ratio at 0.34). Institutional investors currently own 18,182,294 vs. 17,472,989 shares held 3 months ago (+4.06% change). The stock has gained 190.0% over the last year.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=49600)
4. Genesis Energy LP (GEL): Oil & Gas Pipelines Industry. Market cap of $1.03B. Analyst rating at 1.8. Call open interest at 1,831 vs. put open interest at 794 (Put/Call ratio at 0.43). Institutional investors currently own 10,755,163 vs. 10,425,765 shares held 3 months ago (+3.16% change). The stock has gained 61.6% over the last year.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=49601)
5. Crosstex Energy LP (XTEX): Independent Oil & Gas Industry. Market cap of $691M. Analyst rating at 2.4. Call open interest at 630 vs. put open interest at 137 (Put/Call ratio at 0.22). Institutional investors currently own 16,457,137 vs. 16,134,580 shares held 3 months ago (+2.0% change). The stock has gained 101.46% over the last year.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=49602)
6. Taseko Mines Ltd. (TGB): Copper Industry. Market cap of $1.16B. Analyst rating at 2. Call open interest at 40,939 vs. put open interest at 11,834 (Put/Call ratio at 0.29). Institutional investors currently own 40,863,311 vs. 40,295,009 shares held 3 months ago (+1.41% change). The stock has gained 101.94% over the last year.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=49603)
7. Domtar Corporation (UFS): Paper & Paper Products Industry. Market cap of $3.18B. Analyst rating at 2.2. Call open interest at 13,476 vs. put open interest at 1,588 (Put/Call ratio at 0.12). Institutional investors currently own 41,652,097 vs. 41,109,465 shares held 3 months ago (+1.32% change). The stock has gained 71.78% over the last year.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=49604)
8. Sinclair Broadcast Group Inc. (SBGI): Broadcasting Industry. Market cap of $654M. Analyst rating at 2.4. Call open interest at 242 vs. put open interest at 60 (Put/Call ratio at 0.25). Institutional investors currently own 36,870,127 vs. 36,515,821 shares held 3 months ago (+0.97% change). The stock has gained 63.45% over the last year.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=49605)
9. Sapient Corp. (SAPE): Business Software & Services Industry. Market cap of $1.73B. Analyst rating at 2. Call open interest at 666 vs. put open interest at 114 (Put/Call ratio at 0.17). Institutional investors currently own 100,426,902 vs. 99,518,187 shares held 3 months ago (+0.91% change). The stock has gained 54.09% over the last year.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=49606)
10. Brigham Exploration Co. (BEXP): Independent Oil & Gas Industry. Market cap of $2.44B. Analyst rating at 2. Call open interest at 39,058 vs. put open interest at 13,891 (Put/Call ratio at 0.36). Institutional investors currently own 94,462,047 vs. 93,753,596 shares held 3 months ago (+0.76% change). The stock has gained 98.11% over the last year.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=49607)
4 Breakout Oil Stocks To Watch...
Commentary: In technical analysis, many consolidation patterns have names associated with them due to the shape that forms on the chart. While many traders get caught up with the names and whether the patterns develop perfectly, it is much more important to think about the psychology behind the pattern and why market participants are acting in a certain manner. The ascending triangle is usually a continuation pattern, and the key point traders need to understand is that this pattern often serves as a rest stop for a stock in an uptrend.
When a stock is in an uptrend, it will eventually start to lose momentum as traders who were long begin to take profits. Once buyers and sellers reach a stalemate, the stock will enter a period of consolidation where shares will be exchanged among traders betting on a continuation and other traders betting on a reversal. In an ascending triangle, the stock will typically stall at a fixed price level as it tests the top of the pattern. However, buyers will begin to buy at higher prices on dips, forming higher lows as the pattern progresses. Eventually, the stock will break out of one side of the triangle, confirming the pattern as either a continuation or reversal.
Recently, many oil pipeline stocks cleared an ascending triangle. This could mean a trend move higher for the sector is in the works. For instance, Boardwalk Pipeline Partners LP (NYSE:BWP) settled into an ascending triangle from July through September. It cleared the triangle later in September and after a run to $34 it has settled into a pullback toward the breakout area. The $32 level should be monitored for support; if BWP holds up in this area it could lead to a move to new highs.
4 Breakout Oil Stocks To Watch...
El Paso Pipeline Partners LP (NYSE:EPB) just finished breaking out of an ascending triangle a few days ago. One important aspect to look for in a triangle is whether the consolidation becomes more volatile and the stock's trading range narrows over time as traders reach an equilibrium. Notice how the trading range in EPB began in August at almost 4 points and eventually narrowed to under 1 point. This is typically a clue that consolidation is nearing an end.
4 Breakout Oil Stocks To Watch...
Atlas Pipeline Partners, L.P. (NYSE:APL) is another pipeline stock that recently cleared a triangle as well. APL formed an ascending triangle from August through October after a sharp gap higher in late July. APL never traded back into the gap, providing a clue that it would eventually resume its uptrend. APL eventually cleared the triangle in October, but has continued trading in a tight range. Traders should monitor the $20 level as the new breakout area.
4 Breakout Oil Stocks To Watch...
Commentary: In technical analysis, many consolidation patterns have names associated with them due to the shape that forms on the chart. While many traders get caught up with the names and whether the patterns develop perfectly, it is much more important to think about the psychology behind the pattern and why market participants are acting in a certain manner. The ascending triangle is usually a continuation pattern, and the key point traders need to understand is that this pattern often serves as a rest stop for a stock in an uptrend.
When a stock is in an uptrend, it will eventually start to lose momentum as traders who were long begin to take profits. Once buyers and sellers reach a stalemate, the stock will enter a period of consolidation where shares will be exchanged among traders betting on a continuation and other traders betting on a reversal. In an ascending triangle, the stock will typically stall at a fixed price level as it tests the top of the pattern. However, buyers will begin to buy at higher prices on dips, forming higher lows as the pattern progresses. Eventually, the stock will break out of one side of the triangle, confirming the pattern as either a continuation or reversal.
Buckeye Partners L.P. (NYSE:BPL) is an example of a pipeline that has not cleared its ascending triangle yet. BPL has been consolidating since August, and is currently testing the top of the triangle. Traders should monitor the $65 area as the breakout level, and $62.50 as a mark of a breakdown from the pattern.
Bottom Line
It's interesting that so many stocks in the same sector are following a similar pattern. Institutions will often accumulate a basket of stocks in a sector and it's possible that this is occurring in this group. While there could be a variety of catalysts for accumulation in this sector, the bottom line is that the charts are showing indications of a possible trend move higher. Traders should monitor the key levels identified by the triangle pattern and act accordingly.
Nasdaq stocks posting largest percentage increases
Top 10 Nasdaq-traded stocks posting largest percentage increases
On Friday November 5, 2010
A look at the 10 biggest percentage gainers on Nasdaq at 1 p.m.:
Telular Corp.(NASDAQ: WRLS) rose 42.5 percent to $5.77
Universal Electronics Inc.(NASDAQ: UEIC) rose 30.5 percent to $27.72
Asia Entertainment & Resources Ltd. (NASDAQ-GM:AERL) rose 22.3 percent to $9.87
TTM Technologies Inc. (NASDAQ: TTMI) rose 20.7 percent to $13.76
LiveDeal Inc. rose 19.5 percent to $7.48
ePlus Inc.(NASDAQ: PLUS) rose 19.2 percent to $25.03
Dehaier Medical Systems Ltd.(NasdaqCM: DHRM)rose 16.0 percent to $5.74
Jazz Pharmaceuticals Inc.(NASDAQ: JAZZ) rose 14.1 percent to $14.15
Atmel Corp.(NASDAQ: ATML) rose 13.8 percent to $10.16
Canterbury Park(NASDAQ: CPHC) rose 13.6 percent to $10.40.
NOVEMBER 11, 2010...
Obama Has a Listening Problem :D "You've got the talking down/Just not the listening." ;D
The idea that government can spend our way to prosperity doesn't make sense to voters...
By KARL ROVE
The rock star Sara Bareilles sang at President Barack Obama's Las Vegas rally for Sen. Harry Reid in October. Her biggest hit, "King of Anything," includes the lyrics, "You've got the talking down/Just not the listening." That pretty well sums up Mr. Obama's reaction to last week's midterm.
The president rejects the idea that voters don't like his policies on jobs and the economy. At his White House news conference last Wednesday, Mr. Obama observed, "If right now we had 5% unemployment instead of 9.6% . . . people would have more confidence in those policy choices."
Well, yes. But isn't unemployment much closer to 10% than 5% because the stimulus package didn't work as the president promised it would when he signed it? Mr. Obama's narrative that the economy's condition has nothing to do with his policies is nonsense.
When asked at the same news conference if he felt there was "a majority of Americans who think your policies are taking us in reverse," Mr. Obama waved off the criticism, saying that the "American people understand that we're still digging our way out of a pretty big mess."
Wrong again. Mr. Obama doesn't seem to understand that the midterm "shellacking" his party took was an explicit rejection of his policies, especially by independent voters.
This is borne out by a post-election poll released Tuesday by Democrat James Carville's Democracy Corps and Republican Ed Gillespie's Resurgent Republic. The survey found that 56% of independent voters voted for GOP candidates while just 38% voted Democratic, a 36-point swing from the 2006 midterm and a 26-point swing from the last presidential election.
Independents now look much more like Republicans than like Democrats—79% believe the country is on the wrong track and they're more than twice as likely to blame President Obama and the Democrats than to blame President Bush and Republicans.
Independents share the GOP view that the government is doing too many things better left to businesses and individuals. They trust the GOP more than Democrats on jobs and employment (50%-27%), the economy (48-25), government spending (50-23), the federal budget deficit (53-17), and taxes (54-23). A majority (51%) support extending all the Bush-era tax cuts even after hearing Mr. Obama's best arguments against extending them for people making over $250,000.
Instead of acknowledging the need for policy correction, Mr. Obama offers the now familiar excuse that it's all a communication problem. As he told the National Journal's Ron Fournier in October, his policy successes were "a lot for me to be able to communicate effectively to the public in any coherent way."
But the problem is not with the capacity of voters to grasp the brilliance of Mr. Obama's policies. Rather, the idea that government can spend our way to prosperity doesn't make sense to voters. The more they heard Mr. Obama talk about this approach, the more they rebelled.
Something similar happened with health care. The president dismisses the notion that last week's results were a rejection of ObamaCare, saying at his White House news conference that it would be "misreading the election" to argue "the American people want to see us for the next two years relitigate arguments that we had over the last two years."
But that's exactly what voters want. The Democracy Corps/Resurgent Republic poll found that 51% of all midterm voters and 57% of independents believe ObamaCare should be "repealed and replaced."
In the wake of last week's epic rebuke, Mr. Obama has two historical models to follow. He can react as President Bill Clinton did after Democrats' 1994 defeat and move to the center, which resulted in two of Mr. Clinton's greatest achievements: a balanced budget and welfare reform. Or he can emulate Harry Truman in 1947-48, sticking hard to a liberal agenda and fighting the congressional GOP for obstructing it.
It will be difficult for Mr. Obama to channel Mr. Clinton, who was a Third Way Democrat and politically nimble. In addition, after the 1994 midterms, Mr. Clinton was freed of the baggage of HillaryCare, which failed to become law. Mr. Obama is stuck with his deeply unpopular health-care reform.
But it may be even more difficult for him to pull off a Truman. It's hard to run against a "do nothing" Congress when your own party controls the Senate and the GOP's agenda is more popular than yours.
Mr. Obama is in a pickle without an obvious path to winning back independents. After turning on him so decisively, they may well tell him, in the words of Ms. Bareilles: "You sound so innocent, all full of good intent/Swear you know best/But you expect me to jump up on board with you/Ride off into your delusional sunset . . . Who cares if you disagree, you are not me/Who made you king of anything?"
Massive Insider Trading Investigation Could Nail Wall Street's Biggest Names...
Nov 22, 2010 12:20pm
The government is reportedly close to filing charges in the largest institutional insider-trading investigation in history.
According to initial reports, the investigation could ensnare Wall Street's biggest names: Goldman Sachs, SAC Capital, Wellington, Jennison, MFS Global, Maverick, Citadel, and others. (Here's a who's who of who might get nailed.)
The investigation reportedly focuses on "expert networks" -- consulting firms that pay industry participants to share insights and information with investors. Professional investors use these networks to gather information about real-time business conditions and trends in various industries (as well as, sometimes, information that could likely be characterized as "inside" information in any other context).
No matter where the investigation ends up, the government will likely present it as a huge step toward making the market "fair" for small investors. And the same small investors will likely view it as confirmation that the "game is rigged."
Both of these conclusions will miss a far more important point.
The REAL lesson most investors should take away from the largest institutional insider-trading investigation in history is that competition in the global financial markets is so intense that it's basically idiotic to trade.
Trading is what is known as a "zero sum game." To win, you have to beat the competition. (And you have to beat the competition by more than the amount that it costs you to trade, which is extraordinarily hard to do, especially after tax).
In our experience, most investors have no appreciation for how intense their competition is. They think, "Wow--look at all this information I have. Look at all my trading screens. Look at all my SEC filings. Look at my charts and graphs. Look at the smart fellow on TV telling me what to buy. Look at how many of my trades have made money!"
What they miss is that their competition has all this information, too -- so it doesn't give anyone an edge. They also don't understand that, in addition to all this information, the folks they are competing with have millions and millions of dollars to spend gathering information that will never be published anywhere or appear on an screen or chart or graph.
That's where the expert networks come in. That's where contact networks in general come in. That's where one-on-one meetings with managements and suppliers come in.
One glance from a CEO in response to a pointed question can contain more information than 500 pages of SEC filings. One nugget of scuttlebutt about the status of an important contract can make you more money than 500 hours of studying charts and graphs. Most small investors don't understand that their competition gets this sort of information all day long.
In short, it doesn't matter whether the trading game is played on "a level playing field" (and of course it isn't.) The New York Jets will still destroy any high-school football team, no matter what field the game is played on.
From the perspective of small investors, the game that is played every day in the global financial markets is equivalent to the New York Jets vs. a high-school football team. And it should be no mystery which team the small investors are playing on.
So what's the smart answer for small investors in a world in which the competition is so unbelievably intense?
Don't play the trading game.
Instead, play a game you can win.
What's that game?
Long-term investing, preferably via low-cost, tax-efficient index funds.
Unlike professional investors, small investors don't have to worry about their performance in a given week or month or year. They can avoid the second-to-second warfare that defines the professional investment business. They can be patient and allow Ben Graham's long-term "weighing machine" to eventually do its work.
If they do that, and keep their costs low enough, they'll outperform 75% or more of the professionals.
Just as important, they won't be willingly playing a game they are almost sure to lose.
Insider Trading Is "Everywhere," Matt Taibbi Says: "The Fear Is There's No End to It"
Nov 23, 2010 11:22am
When FBI agents raided the offices of three hedge funds on Monday, the reacton on Wall Street recalled the famous scene in Casablanca where Claude Rain's Capt. Renault character is "shocked, shocked to find that gambling is going on in here."
To Rolling Stone contributor Matt Taibi, author of Griftopia, there's nothing shocking at all about revelations of possible widespread insider trading on Wall Street. (See Massive Insider Trading Probe Could Nab Wall Street's Biggest Names)
"Everybody is trading on the inside somehow or another, so this isn't particularly surprising," Taibbi says. "A lot of sources I talked to suggested this is endemic to the entire culture."
The current investigations center around alleged insider trading prior to merger announcements such as MedImmune's takeover by AstraZeneca in 2007 and Merck's buyout of Schering-Plough in 2009, The WSJ reports.
While gaming takeovers is a "classic" form of insider trading, Taibbi says it's also evident in high-frequency trading, where exchanges provide a millisecond sneak peak at buy and sell orders, or the practice of clients front-running big orders by institutions.
"The real issue here is that it's everywhere," he says. "And the fear is there's no end to it."
Taibbi, who became widely known in financial circles in 2009 when he dubbed Goldman Sachs "a vampire squid on the face of humanity," says he is not cynical by nature. "But this Wall Street stuff is overwhelming," he says. "The more you look into it, the less you see the way out. The government seems so completely helpless to do anything positive in this situation."
Illegal insider trading...
SEC investigation into an insider trading ring among the big banks and hedge funds is just the tip of the iceberg. Also, lots of big banks are holding Irish bank debt and will have to take big losses in the bailout.
Technicals
Close Above the 50-day MA
Most Actives
Percentage Gainer
Last Price Quote is:
6.74%above 13-day MA
1.93%above 50-day MA
RS Rating: 9
Happy Hedge Fund Raid Day!: Six Hedgies to Know...
So the FBI is getting all Eliot Ness today, uncorking raids of hedge funds in Connecticut and Boston. The Journal has the coverage here, saying the sweeps by the Feds are tied to the big insider trading story it broke over the weekend:
The offices of Diamondback Capital Management LLC and Level Global Investors LP were raided. Both hedge funds are run by former managers of Steven Cohen's SAC Capital Advisors.
The third firm raided is Loch Capital Management LLC, based in Boston, people familiar with the matter say. Leonard Pierce, a lawyer for Loch Capital, declined to immediately comment.
"The FBI is executing court-authorized search warrants in an ongoing investigation," said Richard Kolko, an FBI spokesman, who declined to comment further.
So, it's still early in what Bess Levin over at DealBreaker is calling Insider Trading Fest(ivus) 2010. But we figured we'd lay out some of the leading characters at the firms that were paid a call by the boys in blue Monday. (We stress that nobody has been accused of any wrongdoing.)
Timothy and Todd McSweeney: The brothers founded Loch Capital, a Boston-based hedge fund manager that invests primarily in micro and small cap tech stocks, in 2002, according to a description of the fund on FactSet Lionshares. The Journal reports that the men are acquaintances with Steven Fortuna, a hedge-fund manager who pleaded guilty in the Galleon case and agreed to cooperate in that ongoing investigation.
David Ganek: The former SAC Capital trader and art collector founded hedge fund manager Level Global in 2003. "Level Global Investors invests long/short primarily in the stocks of US companies in the technology services, electronic technology and finance sectors. They invest mainly in mid- to large-cap companies and maintain a high turnover rate," according to FactSet Lionshares. Back in April, Goldman Sachs' buyout unit bought a minority stake in the fund.
Chad Loweth, Larry Sapanski and Richard Schimel: These former SAC traders started Stamford, Conn., based Diamondback Capital in 2005. Loweth left earlier this year. According to FactSet Lionshares, "the firm invests across all market caps. They tend to invest in the finance, retail and health technology sectors." Dow Jones Newswires reporter Joseph Checkler reported a few years back that Diamondback along with other SAC alums seemed especially enamored of biotech and healthcare stocks.
The Journal reached out for comment to all of the funds in question. Leonard Pierce, a lawyer for Loch Capital, declined to immediately comment. Messages left with Richard Schimel, Diamondback's co-chief investment officer, and Diamondback's general counsel, Joel Harary, on their office phones weren't immediately returned.
A spokesman for Level Global said, "We can confirm that agents from the Federal Bureau of Investigations visited our offices this morning as part of what we believe to be a broader investigation of the financial services industry discussed in media reports over the weekend. We are cooperating fully with the authorities and, at the same time, we are fully operational and continue to work diligently for the benefit of our investors."
U.S. Stocks Surge On Bullish U.S., Chinese Economic Data...
The major indexes zoomed in early trade Wednesday, as strong economic data in China and on the home front sent stocks to big gains.
The Nasdaq rocketed 2%, the NYSE composite and Dow jumped 1.8% each, and the S&P 500 added 1.2%. Volume climbed 17% on the NYSE and 14% on the Nasdaq vs. the same period Tuesday.
OmniVision Technologies (OVTI) gapped up 7% in massive trade. Late Tuesday, the maker of digital image sensors posted fiscal Q2 profit of 58 cents a share, topping estimates by a nickel. Quarterly revenue also beat the Street's consensus, and the company issued a fiscal Q3 forecast above analysts' views. The stock cleared a 25.75 buy point at the end of a cup-with-handle base on Oct. 26 and is far extended from that point.
Yanzhou Coal Mining (YZC) rose 5% in rapid turnover. The China-based coal mining stocks is one of many Chinese equities rallying this morning after a report on Chinese manufacturing showed big growth. Yanzhou's stock is rallying after finding support at its 50-day moving average. Its Accumulation/Distribution Rating is just a D, though.
Real D (RLD) gained 4% in heavy volume. The maker of 3D technology used in movie theater viewing went public at 16 a share on July 16. The stock cleared resistance around 20 on Oct. 27 and has nearly doubled from its IPO price.
The Market Message...
SECTOR ROTATION SHOWS BULLISH ENTHUSIASM
A way to determine whether or not investors are turning more optimistic on the economy (and stock market) is to study the trend of recent sector rotations. In an improving economy, investors tend to favor economically-sensitive stock groups. In a weakening economy, they favor defensive stock groups. The charts below reflect a much more upbeat mood on the American economy. The first chart shows relative strength lines for four economically-sensitive stock groups since midyear, and show all four groups rising faster than the S&P 500 (flat black line). In order of strength, they're energy, transports, small caps, and semiconductors. It's always a good sign when those groups are leading the market higher. By contrast, the second chart shows the three weakest groups since August to be healthcare, utilities, and consumer staples. Investors rotate out of those defensive stock groups in a strengthening economy.
Great looking 2 year chart for this stock...
Unusual Volume Leaders...
What follows is a look at stocks in the S&P 500
displaying unusual volume in today's trading session.
Lee Hobson's Top Holdings and New Stock Picks
by: Insider Monkey February 09, 2011
Lee Hobson is founder of Highside Capital Management hedge fund, which reported $2.16 Billion total assets in its last 13F filing. Hobson graduated from Princeton University in 1987 with a B.A. degree and received his M.B.A. from Harvard Business School in 1992.
Lee Hobson founded Highside Capital Management in 2003. Prior to forming Highside, Hobson was a Partner of Lee Ainslie's Maverick Capital from 1994 until 2003. In Maverick, he worked on investments in the consumer sector. He is also specialized in Latin America, which helped him to play an important role in Maverick's investments in this region. Before joining Maverick Capital, Hobson worked at PepsiCo (PEP) Foods International as an associate in the new business development division. Early in his career he worked as an analyst at Goldman Sachs (GS) in New York and at Societe Generale in Paris.
According to 13F filings, Lee Hobson's Highside Capital Management had at least 43 securities in its portfolio as of September 30th 2010. During the third quarter, Hobson bought 13 new stocks.
Here are his five largest new stock picks:
1. Expedia Inc (EXPE): Lee Hobson had $85 Million in EXPE shares at the end of September. These shares have lost 11.5% since then, underperforming the SPY by 27 percentage points. Roberto Mignone also started buying EXPE during the third quarter.
2. On Semiconductor Corporation (ONNN): ONNN is one of Lee Hobson's best performing new stock picks, returning nearly 55%. Hobson has $31 Million invested.
3. Chipotle Mexican Grill Inc (CMG): CMG was another good pick from Hobson. CMG outperformed the market by nearly 28 percentage points. Hobson has $29.2 Million invested.
4. J Crew Group Inc (JCG): Lee Hobson had $28 Million in JCG stock at the end of September. The stock gained 29.4% since then, beating the SPY by 13.9 percentage points.
5. Yum! Brands Inc (YUM): This was a weak performing stock, returning 7% since September. Hobson has $27.6 Million invested. Stephen Mandel also had 15 million shares of YUM valued at nearly $700 Million as of September 30th, 2010.
The value of the 13 new stocks in Hobson's portfolio was $337 Million at the end of September. The value weighted average performance of his new stock picks during the last 4 months was 11%+, underperforming the market by 4.5 percentage points. These new stocks are still a small proportion of Hobson's $2.16 Billion 13F portfolio.
Here is how Hobson's top 10 positions performed during the past four months:
1. SPDR Gold Trust (GLD): GLD was Hobson's biggest investment at the end of September 2010. GLD has gained 2.9% since the end of September, underperforming the SPY's 15.5% return. Hobson reduced his call option holdings by 30.4% in the third quarter but he still holds $383 Million in these options in his portfolio. There are several other hedge fund managers who also invested in gold.
2. Verisign Inc (VRSN): Hobson had almost $87 Million of Verisign shares at the end of September. Verisign has gained 11.2% since then. Hobson kept his Verisign holdings the same in the third quarter of 2010.
3. NII Holdings Inc (NIHD): Hobson had almost $86 Million in NIHD shares at the end of September. He reduced his holding by 4.5% during the third quarter of 2010. NIHD has gained 3.1% since then, underperforming the SPY by 12.4 percentage points.
4. Qualcomm Inc (QCOM): Hobson's $86 Million in Qualcomm has gained 21.8% since the end of September. Hobson has increased his stock holdings by 40.7% since the end of June. QCOM is also one of the stocks which insiders are selling like crazy.
5. Expedia Inc (EXPE): Hobson had $85 Million in EXPE shares at the end of September. These shares lost 11.5% since then, underperforming the SPY by 27 percentage points.
6. NVR Inc (NVR): Hobson has returned 16.8% from his NVR investment of $77 Million since the end of September. The stock outperformed the SPY by 1.3 percentage points. Hobson reduced the stock holdings by 4% during the third quarter of 2010.
7. Apple Inc (AAPL): Hobson increased his Apple stake by 32.5% during the third quarter. This was a timely move. Apple has returned 21.0% since then. Apple is also one of top stocks hedge funds own. Chase Coleman, Stephen Mandel, Barry Rosenstein, and David Einhorn are also among the hedge fund managers with huge Apple investments.
8. Cablevision (CVC): The stock had one of the best performances in his porfolio during last four months. CVC has returned almost 35.1% since the end of September, beating the market by a large margin. Hobson has increased stock holdings of CVC 35% since the previous 13F forms were filled at the end of June.
9. Citigroup Inc (C): Hobson had $67 Million in C shares at the end of September. This is another stock with 20%+ returns over the past four months. C gained 23.3% in four months, beating the SPY by 7.8 percentage points. C was also one of the 7 stocks insiders were buying like crazy in November.
10. Petsmart Inc (PETM): PETM has gained 18.5% since September, beating the SPY by 3.0 percentage points. Hobson had nearly $60 Million invested at the end of September.
Six of Hobson's top 10 positions managed to beat the market. The weighted average return of these stocks was 10.5% since the end of September, underperforming SPY's 15.5% return. We expected a better performance from Hobson but a 4 month time frame is still too short to judge a hedge fund manager.
Disclosure: I am long C, SPY.
About the author: Insider Monkey It's a well known fact that insiders profit from their transactions. More than 59,000 different insiders made public filings with the SEC in 2009. The year before that, more than 65,000 did. Blindly imitating all of these insiders won't yield much. Monkeying only the top insiders, the ones who have the best track record, is a different story. Insider Monkey uses a hybrid evaluation system that exploits insider transactions and other market anomalies to reduce the number of insiders who are worthy enough to monkey. Insider Monkey also provides high quality evidence based articles to inform individual investors about the intricacies of investing.
Ian Dogan
Insider Monkey's hybrid evaluation system ...More ...More was created in 2003 by Dr. Ian Dogan. Dr. Dogan has a Ph.D. in financial economics with a specialization in insider trading. Dr. Dogan has provided consulting services to institutional investors and hedge funds, and managed a $200+ million fund using a strategy he developed utilizing insider transactions. Dr. Dogan recently authored the insider trading chapter of soon to be published "The Handbook of Investment Anomalies" by Zacks Investment Research. Insider Monkey will serve the outcome of the methodologies developed by Dr. Dogan to ordinary investors who don't have access to academic quality research and tools to shape their investments.
Meena Krishnamsetty
Ms. Krishnamsetty is the Editor of Insider Monkey. Prior to creating Insider Monkey with Dr. Dogan, Ms. Krishnamsetty was Associate Producer at Bloomberg Television. Prior to that, Ms. Krishnamsetty was on the afternoon news team at CNBC. Additionally, Ms. Krishnamsetty reported for NPR and worked as a risk management consultant at Marsh & McLennan. Ms. Krishnamsetty has a M.S. in Journalism from Columbia University's Graduate School of Journalism.
For your inquiries please contact us at
[email protected]
An up to date look at one of my watch list...
20 stocks and how they have performed
Page 2 of the list...
Why not look at Page 3...
Freddie Mac posts $1.7B loss for Q4
Freddie Mac posts $1.7B loss for Q4; $19.8B for 2010; asks for additional $500 million in aid
Marcy Gordon, AP Business Writer, On Thursday February 24, 2011, 5:24 pm
WASHINGTON (AP) -- Government-controlled mortgage buyer Freddie Mac managed a narrower loss of $1.7 billion for the October-December quarter of last year. But it has asked for an additional $500 million in federal aid -- up from the $100 million it sought in the previous quarter.
Freddie Mac also posted a $19.8 billion loss for all of 2010.
The government rescued Freddie Mac and sibling company Fannie Mae in September 2008 to cover their losses on soured mortgage loans. It estimates the bailouts will cost taxpayers as much as $259 billion.
Freddie Mac's October-December loss attributable to common stockholders works out to 53 cents a share. It takes into account $1.6 billion in dividend payments to the government. It compares with a loss of $7.8 billion, or $2.39 a share, in the fourth quarter of 2009.
The company said the recovery of the housing market is still fragile.
"As we begin 2011, the housing recovering remains vulnerable to high levels of unemployment, delinquencies and foreclosures," Chief Executive Charles Haldeman said in a statement. "We expect national home prices to decline this year as housing will continue to take some time to recover."
Fannie Mae and Freddie Mac own or guarantee about half of all mortgages in the U.S., or nearly 31 million home loans worth more than $5 trillion. Along with other federal agencies, they played some part in almost 90 percent of new mortgages over the past year.
Fannie and Freddie buy home loans from banks and other lenders, package them into bonds with a guarantee against default and sell them to investors around the world.
The government's estimated cost of bailing out the mortgage giants far exceeds the $132.3 billion they have received from taxpayers so far. That would make theirs the costliest bailout of the financial crisis.
The two have been hit by massive losses on risky mortgages purchased from 2005 through 2008. The companies have tightened their lending standards after those loans started to go bad. Default rates on new loans are far lower.
The Obama administration unveiled a plan earlier this month to slowly dissolve the two mortgage giants. The aim is to shrink the government's role in the mortgage system. The proposal would remake decades of federal policy aimed at getting Americans to buy homes and probably would make home loans more expensive.
Exactly how far the government's role in mortgages would be reduced was left to Congress to decide. But all three options the administration presented would create a housing finance system that relies far more on private money.
Treasury Secretary Timothy Geithner will face questions from lawmakers next week at a congressional hearing on the proposal.
(This version CORRECTS Corrects total amount of money taxpayers have provided so far by subtracting dividends paid. This story is part of AP's general news and financial services.)
VANCOUVER, British Columbia, Feb. 25, 2011 /PRNewswire via COMTEX/ -- Today, Insiderslab.com found significant insider trading for Halliburton, EMC, Coca-Cola, Philip Morris, priceline.com, & ON Semiconductor.
It is a common phenomenon that a large cluster of insiders settled their trades in the same day. In general, groups of insider trading within a short period yield more information than a single settlement. Insiderslab.com focuses on large clusters, open market insider transactions in order to help investors foresee the strong signal hidden in the insider trading.
(Read full report by clicking the links, you may need to copy and paste the full link to your browser.)
Halliburton Company: Open-market Sale made by company C-Level Officers on Feb 22nd, at trade price (US$48.16). Disclose date: Feb 24th. Read Full Report: http://www.insiderslab.com/PR/022511A/HAL/Halliburton (HAL, Trade )
EMC Corporation: Market Option Sale made by company Directors on Feb 23rd, at trade price (US$26.30). Disclose date: Feb 24th. Read Full Report: http://www.insiderslab.com/PR/022511A/EMC/EMC (EMC, Trade )
The Coca-Cola Company: Open-market Purchase made by company Directors on Feb 23rd, at trade price (US$64.17). Disclose date: Feb 24th. Read Full Report: http://www.insiderslab.com/PR/022511A/KO/Coca-Cola (KO, Trade )
Philip Morris International Inc.: Open-market Sale made by company C-Level Officers on Feb 22nd, at trade price (US$61.88). Disclose date: Feb 24th. Read Full Report: http://www.insiderslab.com/PR/022511A/PM/Philip-Morris (PM, Trade )
priceline.com Incorporated: Open-market Sale made by company C-Level Officers on Feb 22nd, at trade price (US$436.30). Disclose date: Feb 24th. Read Full Report: http://www.insiderslab.com/PR/022511A/PCLN/priceline (PCLN, Trade )
ON Semiconductor Corp.: Open-market Sale made by company Directors on Feb 22nd, at trade price (US$11.01). Disclose date: Feb 24th. Read Full Report: http://www.insiderslab.com/PR/022511A/ONNN/ON-Semiconductor (ONNN, Trade )
Company insiders make thousands of filings each day, detailing their investment decisions. Insiderslab.com analyzes the raw data and compiles it into information that investors can use to enhance their investment research. You can subscribe to FREE insider trading alerts tracking all stocks on the OTCBB, NASDAQ, SP500, DOWJ and NYSE by visiting http://www.insiderslab.com .
Insider Filing Source Reference: All observations, analysis and reports are based on public information released by the U.S. Securities and Exchange Commission.
About Insiderslab.com:
Insiderslab.com is a leading provider of independent reports on insider trade. Services include insider trade reporting on blue chips and penny stocks, real-time insider trading alerts, and newsletters describing notable insider trades. Insiderslab.com features a team of experienced analysts striving to provide the investment community with the tools, software and data necessary to carry out more effective investment research. Insiderslab.com covers major stock markets in the U.S., Hong Kong, Mainland China, and Singapore. Stock trading research reports can be viewed at http://www.insiderslab.com in the U.S., and at http://www.insiders.hk in Asia.
Important Disclaimer:
Insiderslab.com is not a registered investment advisor. Nothing contained in any materials should be construed as a recommendation to buy or sell any security. Insiderslab.com and Insiders.hk are not compensated by any of the companies mentioned above, or in research reports compiled by its experts. All calculated numbers are statistics are based on the best available information and represent our best efforts toward accuracy. You hereby acknowledge that any reliance upon any materials in this press release shall be at your sole risk. You can visit http://www.insiderslab.com and http://www.insiders.hk for a more complete account of risks and disclosures.
CONTACT:
Insiders.hk, Insiderslab.com
[email protected][email protected]Tel: +1-778-2976120
SOURCE Insiderslab.com
Berkshire Hathaway to buy Lubrizol for $9B in cash
AP - Mon Mar 14, 5:18PM CDT
OMAHA, Neb. (AP) — Warren Buffett's company said Monday it will spend about $9 billion cash to add specialty chemical maker Lubrizol Corp. to the eclectic mix of businesses inside Berkshire Hathaway Inc.
The purchase may help satisfy Buffett's appetite for large acquisitions to boost Berkshire's earnings power, but the deal is still significantly smaller than last year's $26.7 billion acquisition of the Burlington Northern Santa Fe railroad.
"Lubrizol is exactly the sort of company with which we love to partner — the global leader in several market applications run by a talented CEO, James Hambrick," Buffett said in a statement.
Two years ago, Berkshire invested $3 billion in preferred shares of Dow Chemical to help finance Dow's $16.5 billion purchase of specialty chemical maker Rohm & Haas in 2009. That deal likely gave Buffett insight into the high-margin specialty chemical business.
In Monday's deal, Berkshire will pay $135 per share, a 28 percent premium to Lubrizol's closing stock price Friday of $105.44. The transaction also includes about $700 million in net debt.
Lubrizol, of Wickliffe, Ohio, makes chemicals for pharmaceutical companies, fuel additives for gasoline and diesel and other ingredients for the transportation sector. Last month, it reported that its fourth-quarter profit climbed 17 percent because of a $19 million tax benefit and higher sales. The company's revenue grew 11 percent to $1.32 billion.
Berkshire already owns a conglomerate of more than 125 manufacturing and service businesses called Marmon Holdings that may use some of Lubrizol's products. Marmon's businesses serve the transportation, energy and construction markets, and Marmon makes products ranging from railroad tank cars to metal fasteners.
Buffett biographer and Berkshire shareholder Andy Kilpatrick said he thinks Lubrizol will be a good fit because it appears to be a solid company.
"He's paying a reasonable premium, and he's getting an entire business with a brand name," said Kilpatrick, the stockbroker-author of "Of Permanent Value, the Story of Warren Buffett."
Stifel Nicolaus analyst Meyer Shields said Lubrizol should complement Berkshire's other businesses, and the deal wasn't surprising after Buffett's comment in his shareholder letter about actively hunting for acquisitions.
But Shields said Berkshire shareholders may have been better off, especially in the near future, if Berkshire would simply return some of its cash to shareholders in the form of a dividend instead of acquiring Lubrizol.
"There's no real economic benefit being created by these sort of transactions as far as I can tell," said Shields, who maintains a "Hold" rating on Berkshire's stock. "If you really can't find anything to do with your cash, it's perfectly OK to not do anything with your cash. Give it back."
Berkshire finished 2010 with about $38 billion cash on hand, so it had the resources ready for a deal. Buffett has never issued a dividend at Berkshire because he believes he can generate a greater return for shareholders by reinvesting the money.
Morningstar analyst Greggory Warren said he doesn't think Lubrizol was on anyone's radar before Monday, but it seems to fit with Berkshire's recent acquisitions and should be a good use for some of the company's cash.
"It's just another decent-returning business that he was able to get at a reasonable price and slot it into the portfolio," Warren said.
Berkshire, which is based in Omaha, Neb., owns roughly 80 subsidiaries, including insurance, clothing, utility, furniture, jewelry and corporate jet firms. It also has major investments in such companies as Coca-Cola Co., Washington Post Co. and Wells Fargo & Co.
Buffett, whose investing decisions are carefully scrutinized by the world of finance, said earlier this month that while he's interested in making acquisitions, it's hard to find big businesses that fit into Berkshire well. He also noted that businesses that do appeal to him usually aren't selling at the right price.
Buffett is regarded as a master of value investing — focusing on finding financially sound companies with underpriced shares. He has simple standards for what he looks for in an investment: easy-to-understand large companies with a strong competitive advantage that generate cash and above-average returns on capital.
Lubrizol says it is the top supplier of highly profitable lubricant additives in the world and a leading maker of ingredients for personal care products and pharmaceuticals.
Lubrizol said in documents filed with the Securities and Exchange Commission Monday that the reason the company appeals to Berkshire is a combination of its successful business, strong competitive position and consistent track record.
Hambrick, Lubrizol's CEO, said in a note to customers that few changes are expected as part of the deal because Berkshire plans to support the company's current long-term growth strategy.
Berkshire's biggest acquisition before BNSF was the $16 billion stock purchase of reinsurance giant General Re announced in 1998.
Berkshire Hathaway and Lubrizol expect the acquisition to close in the third quarter. After the deal is complete, Lubrizol will become a Berkshire Hathaway subsidiary. It will keep its Wickliffe, headquarters and continue to be led by current management.
Both companies' boards have unanimously approved the buyout, but it still needs the approval of Lubrizol shareholders.
Lubrizol shares gained $29.24, or 28 percent, to $134.68, while Berkshire Hathaway's Class B shares were down $1.09 to $84.21.
___
Online:
www.berkshirehathaway.com
www.lubrizol.com
Cisco completes $95M buyout of Inlet Technologies
AP - Mon Mar 14, 6:15PM CDT
SAN JOSE, Calif. (AP) — Cisco Systems Inc., the world's largest maker of networking gear, said Monday it completed its acquisition of privately-held Inlet Technologies for $95 million.
Raleigh, N.C.-based Inlet provides digital media processing platforms. Inlet's technology, which is used in streaming multimedia, adapts the quality of the video stream in real time based on network demand.
Its acquisition will strengthen the capabilities of Cisco's Videoscape TV platform, allowing service and content providers to deliver video to any device over any Internet-based network. Cisco Videoscape combines digital TV and online content with social media for home and mobile video entertainment devices.
With the close of the acquisition, Inlet employees become part of Cisco's Service Provider Video Technology Group.
San Jose, Calif.-based Cisco shares fell 10 cents to close at $17.85.
Lockheed Martin (LMT) wins $135.5 million Navy contract
AP - Mon Mar 14, 8:23PM CDT
WASHINGTON (AP) — Lockheed Martin Corp. has received a $135.5 million contract to deliver 14 outer wing assembly kits and related support services for the Navy's P-3C aircraft, the Defense Department said Monday.
The contract also calls for the company to provide engineering analysis, integrated logistics and associated technical data support.
Work on the project will be performed in Marietta, Ga., and is expected to be completed in June 2014.
Shares in Bethesda, Md.-based Lockheed Martin ended the regular session unchanged at $80.47.
Hewlett-Packard (HPQ) hikes dividend, outlines strategy
The Associated Press - AP - Mon Mar 14, 7:01PM CDT
SAN FRANCISCO (AP) — Hewlett-Packard Co. said Monday it plans to raise its dividend for the first time in over a decade and one day soon will sell "cloud computing" services to the public.
The changes are part of CEO Leo Apotheker's efforts to chart a new course for the world's biggest technology company by revenue. Apotheker took over at HP four months ago after his predecessor, Mark Hurd, was ousted in a sexual harassment scandal.
Apotheker's presentation Monday at a conference for industry analysts and reporters marked the first time he has publicly outlined his strategy for HP since taking the job.
He offered few details. The "public cloud" was one of the few new revelations.
When it launches, it will put HP in competition with Amazon.com and other companies that have piled on to one of technology's hottest trends: selling services over the Internet. Such services allow people to rent space on servers they don't own, to run websites, for example.
Selling technology for building cloud services emerged as a cornerstone of Apotheker's plans for tying together HP's disparate resources. HP is a technology conglomerate. It's the biggest maker of personal computers and printers, and also sells servers and mobile phones and computer-networking equipment and technology services.
In focusing on the cloud, HP is positioning itself as the trusted intermediary to link those technologies.
The dividend hike is an attempt to win over Wall Street.
The dividend has been 8 cents per share since 1998. It will rise to 12 cents per share the next time the board of directors declares a dividend, which should be in May, said HP's chief financial officer, Cathie Lesjak.
HP plans on increasing the dividend by a double-digit percentage every year, Lesjak said.
She also set a target of earnings of at least $7 per share, excluding items, by 2014. The company earned $4.58 per share, on that same basis, in the latest fiscal year.
Apotheker has been active behind the scenes. In an early attempt to win over HP's approximately 300,000 employees, one of his first acts as CEO was to reverse pay cuts imposed by Hurd. Shortly after he and a new chairman were hired, HP replaced a third of its board of directors, an unusually severe boardroom purging that targeted individuals who were particularly vocal in the negotiations over Hurd's ouster, both for and against the decision.
HP shares rose 21 cents, or .5 percent, to $41.70 in extended trading.
Boeing (BA) says key test for 747-8 complete
AP - Mon Mar 14, 8:14PM CDT
CHICAGO (AP) — Boeing Co. says it has finished a key phase of testing for the new passenger version of its big 747, and the plane could make its first flight as soon as Sunday.
The first test plane went through two days of simulations of its first flight. Boeing said the so-called "gauntlet testing" wrapped up late Sunday. On Monday it said the first flight of the new 747-8 Intercontinental will happen after final review of the plane's readiness to fly, taxi testing and receipt of documentation from the Federal Aviation Administration. The first flight could be delayed if the weather doesn't cooperate.
The cargo version of the new plane has been in flight tests for about a year. The passenger version will carry up to 467 people.
Summary Box: Automakers shut plants post-tsunami
The Associated Press - AP - Mon Mar 14, 6:09PM CDT
JAPAN AUTOMAKERS: Toyota, Honda and Nissan are halting production at a number of Japanese plants for most of the week after last week's devastating earthquake and tsunami. Toyota said the shutdowns would affect production of about 40,000 vehicles while Honda said it would affect more than 16,000 vehicles.
KEY MARKET: Japan is the second-largest auto producer in the world behind China. The U.S. is Japan's largest export market.
U.S. IMPACT: Analysts said they do not expect major disruptions to dealer supplies in the United States. About 70 percent or more of the vehicles sold in the U.S. by the three major Japanese car makers are built in North America.
Shares of La. nuclear cos. take hit on earthquake
AP - Mon Mar 14, 5:28PM CDT
BATON ROUGE, La. (AP) — The crisis with Japan's quake-damaged nuclear power stations chopped into the Monday stock prices of two Louisiana companies — one with plans to build new reactors and another that uses the plants to generate power for utility customers and wholesale electricity markets.
An industry group said it was too early to tell what effect the earthquake would have on the U.S. nuclear industry. An anti-nuclear group called for a halt on domestic nuclear activity, including the construction of new plants and the relicensing of older generators. A utility analyst said he didn't believe the crisis would kill the U.S. nuclear industry, but he expected delays in licensing new plants, and in the relicensing process.
Shares of The Shaw Group Inc., based in Baton Rouge, La., slid 9.2 percent, or $3.54, to close at $34.87 after trading at a 52-week low of $27.61 earlier in the session. Shaw has a 20 percent investment in Westinghouse nuclear power and has contracts for several new nuclear plants in the United States and China.
Shaw CEO Jim Bernhard said in a statement late Sunday that he does not expect Japan's problems to affect those projects.
"At this time, we do not believe there will be an impact on Shaw's nuclear projects currently under construction in the United States and China," Bernhard said. "Our customers have indicated they intend to move forward and we believe the construction timelines will continue as planned."
Shaw spokeswoman Gentry Brann said the company currently has contracts to build eight nuclear units in the United States and six in China. Four are under construction in China and four are under construction in the United States, she said.
Shares of Entergy Corp., which operates regulated power utilities in Louisiana, Mississippi, Arkansas and Texas, fell 4.9 percent, or $3.60, to close at $70.09 after falling as low as $69.32 Monday. New Orleans-based Entergy owns or manages 12 nuclear plants in the United States. Five of those that generate power for the wholesale market were intended for a spinoff into a separate company, but that deal was called off last year after New York state utility regulators refused to approve the move.
Entergy Nuclear spokesman Mike Boling said Monday that company officials have been monitoring the situation in Japan. "Our officials have been participating with others in the industry and seeing what we can learn from the damage to the Japanese plants and the mechanical response of the plant," Boling said.
In a statement after markets closed Monday, Entergy said its nuclear plants were designed to withstand earthquakes and flooding — and federal safety standards require that the plants be designed to stand up against any natural disaster that would be more severe than any recorded historical event.
On Monday, three nuclear reactors in Japan were overheating dangerously as authorities raced to prevent devastating meltdowns of the nuclear cores. There have been two hydrogen explosions at the plants.
Washington, D.C.-based Public Citizen said the Japan crisis demonstrated "nuclear power's Achilles' heel," calling it "sheer folly to pour resources into building and maintaining nuclear reactors in the U.S." The group called on the federal government to stop relicensing older nuclear reactors, stop construction of new ones and end federal subsidies for nuclear power projects.
"The U.S. should focus on developing wind power and assisting families in the installation of rooftop solar systems," said Tyson Slocum, director of Public Citizen's energy program.
The Nuclear Energy Institute, a Washington, D.C.-based industry group, said Monday that it expected the U.S. government to study what happened exactly with the Japan plants. "But it's premature to say what the effect might be on the nuclear renaissance under way in this country and around the world," said NEI spokesman Carl Babb.
Babb said utility companies would be studying their operations to "see if they have the proper procedures in place in case something like this would happen again." Babb said a number of U.S. nuclear plants — he did not have exact figures — are constructed near fault lines, "but that is factored as part of the design and they have tougher standards. These plants are constructed on the basis of a worst-case scenario."
Michael Worms, a utility analyst with BMO Capital Markets in New York, said there likely would be delays in permitting new plants.
" The first thing the industry will do is stop the bleeding in Japan," Worms said. "They'll do their investigation and try to figure out what to do to keep it from happening again. This will take a while."
Worms said it was possible that some design changes would be ordered — and that also could delay relicensing of plants, all depending upon the eventual findings of what went wrong in Japan.
"Is nuclear dead because of this?" he said. "I don't think so. It survived Three Mile Island and it survived Chernobyl. But caution here will be the better part of discretion."
These Networking Stocks Are Worth a Look...
T.S. Eliot once wrote that "April is the cruelest month." Yet a half-dozen companies that sell optical networking equipment would beg to differ: March has been quite cruel and they're hoping April will be far kinder.
The entire group rallied higher in the first week on word that Juniper Networks (JNPR) would be ordering more optical networking gear to be used in its switches and routers. But my Monday, March 7, a raft of bad news would overtake the sector. That morning, Ciena (CIEN) predicted sales in the upcoming quarter would take a hit, because customer orders had begun to slow and inventories of unsold optical networking components were piling up. Ciena, JDS Uniphase (JDSU), Finisar (FNSR), Oclaro (OCLR) and Oplink (OPLK) all fell at last 7% that day.
The bleeding wasn't finished. Finisar weighed-in the next day, predicting sales in the quarter ended in April would lag forecasts, thanks to slowing customer orders. Finisar added the concern for much of the slowdown was coming from China, a market that was expected to account for major growth in 2011.Those same stocks that fell by high single-digits on March 7, all fell by double-digits the next day. The next few days weren't much better, and all of these stocks are off 30% to 60% since then.
Some industry watchers saw this coming. Demand for optical networking gear, which helps data traffic to move very fast through communications networks, soared 40% in 2010, according to industry research firm Ovum. Much of that growth was the result of customers stockpiling equipment to avoid being hit by any supply shortages. With key customers now sitting on ample amounts of unused equipment, a sales slowdown now seems to have been inevitable in hindsight.
Looking ahead
The quarterly slowdown increasingly looks to be the result of an industry with limited visibility, but the major customers for optical networking equipment are nowhere near the end of the line in terms of growth. In China, for example, where optical networking helps boost data transmission speeds, only 100 million handsets will be 3-G-capable this year. That's twice the amount of 2010 but still a faction of the 850 million handsets in use in China.
In the United States, the installation of optical networking equipment will remain crucial if carriers are to keep up with the exploding amount of data being consumed on wireless networks. That's not to say the industry will see an immediate bounce back. Analysts at Stifel Nicolaus figure the inventory overhang may stick around through the summer. The key for investors is to see inventories coming down and not wait until they have truly been worked though. When that finally happens, demand is likely to rebound for many of these firms and analysts will start to speak of that turn before it happens, implying share price rebounds ahead of a pick-up in demand.
Analysts at ACI Research think near-term inventory concerns are obscuring a larger brighter picture. They attended the annual Optical Fiber Conference (OFC), held earlier this month in Los Angeles, and noted that part of the slowdown is the result of key customers looking to step back and be sure they're keeping up with all of the industry's advances: "With advances come discontinuities. This heralds a tremendous amount of volatility for public companies. But make no mistake. It was the most exciting OFC in recent memory." (They're referring to the wide range of new products released at the show.)
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Names to own
Analysts at Auriga Securities think Oclaro will be the first to rebound, thanks to a range of newly-released products reaching customers in the spring. "The June 2011 quarter is pivotal for the company as new products including ROADM (reconfigurable optical add-drop multiplexer) and 40G transceivers." They see shares rising from a current $11 to $14.
Longer-term, shares could rebound back to the 52-week high of $19 because Oclaro has considerable exposure to the Chinese market: China's Huawei, the world's second-largest telecom equipment provider, accounts for 17% of Oclaro's sales, a figure that has been steadily rising in recent years. Another play is San Jose, Calif.-based Neophotonics (NPTN), which derives 50% of sales from China. Shares of this early February 2011 IPO have already fallen by half from their peak.
Citigroup's analysts attended the same OFC conference and came away with their bullish industry view intact, despite the recent problems. They were particularly impressed with Ciena, predicting the company "will be a share gainer through the next cycle and expect to see a significant deal win over the next 90 days." They see shares rising from $24 to $34 in the next 12 months.
If you're a GARP (growth at a reasonable price) investor, you have to find high-growth industries that have become reasonably priced due to near-term growing pains. The optical networking stocks have plenty of room ahead of them, yet are currently being scorned while demand temporarily slows. As demand rebounds, so will these shares.
Stocks Owning Nuclear Plants Could Present Opportunity...
by: Analytical Chemist March 27, 2011
Two weeks ago a magnitude 8.9 earthquake struck off the coast of northern Japan. The earthquake, combined with the resulting tsunami caused terrible devastation, with over 10,000 dead as of the latest reporting. In the US, though, the predominant news coverage after the initial impact has been on the Fukushima Daiichi nuclear power plant.
Since both primary and backup power were knocked out, there have been a series of problems with the nuclear reactors, damaging them to the point that when the nuclear reaction has eventually cooled, the entire facility will have to be scrapped.
This has caused a worldwide conversation on the use and safety of nuclear power. Germany has shut down 7 of its 17 nuclear reactors, and has begun plans to accelerate the shutdown of all remaining power plants. In the US, to my knowledge no reactors have been shut down, but at least one power purchasing agreement that was in the works between CPS Energy and NRG Energy (NRG) has been called off.
Although nuclear power is the most cost effective carbon-neutral form of power production, and has shown over decades of real-world use to be significantly safer than using coal, oil, or natural gas, the recent events at the Fukushima Daiichi power plant have focused a spotlight on the dangers on nuclear power.
Curious about what companies in the United States use nuclear power, I compiled what I believe to be a comprehensive list of companies that own or operate nuclear power plants in the United States.
The list of nuclear power plants was obtained from the Nuclear Energy Institute (NEI). To determine the amount of nuclear power generation, the companies web sites and annual reports were consulted, and checked against the list compiled by the NEI. I used company figures from their web sites and annual reports to obtain total power generation capability numbers, and where possible checked the calculated percentage of nuclear power.
Where possible, I used the maximum generating capacity figures, rather than the particular mix used in a given year, or by sales to customers. Additionally, not all plants were owned and operated by the same company. Where possible, I used the larger figure of operating capacity and owned capacity. This is a better way to characterize the maximum possible liability for each company.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=50299)
Although I don't have space to talk about each company on this list, I have a short description of the 5 companies with the greatest dependence on nuclear energy here. I also have a few notes on some of the other companies below. Remember, the US as a whole gets 20% of its electricity from nuclear power.
Berkshire Hathaway (BRK.A) is on this list because it is owns MidAmerican Energy (MDPWK.PK). MidAmerican Energy generates only 6% of its electricity from nuclear sources. Additionally, MidAmerican Energy itself represents only 8.7% of total Berkshire revenues, so Berkshire's total investment in nuclear power is a very small percentage of its total business.
The largest generator of electricity overall is Southern Company (SO) at about 43 gigawatts (GW), but it actually has a below average nuclear proportion of only 15%. And the largest generator of nuclear power overall is Duke Energy (DUK), which owns or operates 14 nuclear reactors with a total electricity generation capability of nearly 7 GW. But the highest percentage of power generated by nuclear power plants is found at Exelon (EXC), with 93% of its power generation coming from nuclear plants. Exelon is the purest stock investment for those bullish on nuclear power.
NextEra Energy (NEE) is known for being the largest generator of solar energy in the country, and advertises that 95 percent of its power generation "comes from clean or renewable fuels." Its seven solar facilities total only 310 MW of electric capacity. This is dwarfed by its nuclear generation capability of 2554 MW, which represents about 14% of its total generating capacity. It also possesses large hydroelectric and wind power facilities. NextEra Energy is a possible attractive investment for those betting on non carbon-based sources of electricity.
One company not in the list that is a partial owner of several nuclear reactors in the United States is the French firm Electricité de France (Euronext Paris: EDF). I didn't include it on the list because it doesn't appear to be traded on any U.S. exchanges, though it is down more than 5% since the earthquake in Japan. I also didn't include any municipalities or local or regional power authorities with an ownership stake in nuclear reactors.
Nuclear power accounts for 20% of all electricity production in this country, and I hope you find helpful this list of companies owning or operating nuclear power plants. I was somewhat surprised that many of these stocks have not fallen in value very much; I was looking for opportunities to buy a beaten-down sector but didn't find the sector particularly beaten-down. I hope you find it useful as a reference.
The 5 Companies Most Dependent on Nuclear Power...
The difficulties in the aftereffects of the earthquake and resulting tsunami that hit Japan on March 11 have brought issues of nuclear safety to the world's attention. Germany, which had used nuclear power for 22% of its electricity, has already shut down seven of it 17 nuclear reactors, and plans to accelerate the shutdown of the remaining reactors. CPS Energy has cancelled its power purchase plan with NRG after NRG announced that the construction of two nuclear reactors would be slowed. I believe this is an overreaction, and wanted to look at some utilities with significant nuclear power production.
I recently compiled a list of the publicly-traded power generation companies and the percentage of their electricity generated by nuclear plants. Five of these companies depend on nuclear power for more than 30% of their total power generation. Where possible, I used the maximum generating capacity figures, rather than the particular mix used in a given year, or by sales to customers. Also where possible, I used numbers from power plants operated by the company, although if this number was smaller than the ownership, I used the larger of operating capacity and owned capacity.
The company most dependent on nuclear power in the U.S. is Exelon (EXC). Nuclear power plants produce 93% of its 31,000 MW power generation. It owns and operates nine nuclear plants, operates but does not own two other nuclear plants, and has one nuclear plant that it owns but does not operate. The operator in that case is PSEG Nuclear, a subsidiary of Public Service Enterprise Group (PEG). PEG, oddly enough, owns one of the two plants that Exelon operates but does not own. MidAmerican Energy, a subsidiary of Berkshire Hathaway (BRK.B), owns the other.
Exelon is making a strong push for more nuclear generation, including starting a series of upgrades to its nuclear plants in 2009 that are designed to increase power generation by 1300-1500 MW, equal to one new nuclear plant. Since the earthquake in Japan, Exelon has fallen 5% from $43.16 to $41.01 (all prices as of close on March 24). For comparison, the S&P 500 has risen about 0.4% in that time.
Next on the list of most dependent companies on nuclear power generation is the rural utility Central Vermont Public Service (CV). It claims to be the only Vermont company traded on the NYSE, and generates 54.5% of its electricity from nuclear sources, 38.4% from hydroelectric sources, 3.6% from wood (wood!), and 0.1% from CVPS CowPower, the nation's first "manure-to-energy program." It also made Forbes 100 Most Trustworthy Companies in America, and tied for second place on that list among publicly-traded small-cap companies. Central Vermont Public Service is actually up 1.7% to $23.49 from $23.09 since the Japanese earthquake.
Third on the list is the El Paso Electric Company (EE), an electric company providing power to western areas of Texas and southern New Mexico. 38% of its electricity is generated by the Palo Verde Nuclear Generating Station, which is jointly owned by seven companies and municipal power agencies. El Paso Electric Company stock is up about 4.3% over the last two weeks, from $28.63 to $29.85.
Constellation Energy (CEG) receives 32% of its electricity generation from nuclear sources, good for the fourth-highest percentage. Constellation operates and owns five nuclear reactors at three sites in Maryland and New York. The Long Island Power Authority and Electricité de France (EDF) are co-owners of the reactors. CEG is down 4.1% to $31.11 from its $32.45 close on March 11.
Lastly, Pinnacle West (PNW) like El Paso Electric, partially owns the Palo Verde Nuclear Generating Station. The Palo Verde Nuclear Generating Station represents 31% of the electricity generation capability of all power plants that Pinnacle West has ownership stakes in. It stock is down 3.4% from $43.56 to $42.10 since March 11.
CV and EE are the two lowest-capitalization public corporations that own or operate nuclear power plants. It is perhaps not surprisingly that these stocks have not been as affected by the coverage of the continuing problems faced at the Fukushima Daiichi power plant. I am, however, surprised that they have increased in value over the last two weeks. The other three stocks have fallen modestly, with Exelon having the greatest reliance on nuclear energy as well as the greatest drop in share price.
Harry Dent: "Major Crash" Coming for Stocks, Commodities Already Topping Out
http://finance.yahoo.com/blogs/daily-ticker/harry-dent-major-crash-coming-stocks-commodities-already-20110331-080715-415.html
The first quarter comes to a close today with major averages at or near multi-year highs. Expect "substantial" further gains for stocks before a "major top" occurs in late summer, says noted forecaster Harry Dent, founder of HS Dent and The Dent Method.
The good news, for those long, is Dent predicts the Dow will trade as high as 13,200 by mid-summer and the S&P 500 as high as 1430, or more-than 7% above current levels. The bad news is "then we could see another major crash," Dent says, forecasting the Dow could trade as low as 3300 in a worst-case scenario. "Bubbles go back to where they started or a little lower," he says. "The stock market bubble started at (Dow) 3800 in late 1994."
While Dent predicts the Dow's crash will play out over several years, he sees clear and present danger in gold, silver, oil and other commodities. "All investors should lighten up on or sell oil, silver, and gold as the U.S. dollar looks like it has bottomed and should rise ahead," he writes in the March issue of HS Dent Forecast.
In the accompanying video, Dent further explains his thinking for why commodities will stumble ahead of stocks, which is the opposite of what happened in 2007-08. In sum, he believes efforts by global central bankers to fight inflation — with the notable exception of the Fed -- will hurt growth in emerging markets as well as demand for many commodities.
As for the Fed, they are "checkmated," Dent says, suggesting the Ben Bernanke & Co. are damned if they do QE3 -- because the bond market will freak out -- and damned if they don't -- because the economy and financial markets are so dependent on easy money.
Stay tuned for additional segments to hear Dent's views on the economy, housing and the deflationary pressures detailed in his latest book The Great Depression Ahead, a bookend to his 1992 best-seller The Great Boom Ahead.
7 Problems That Could Derail the Global Recovery...
http://finance.yahoo.com/news/7-Problems-That-Could-Derail-usnews-491830938.html?x=0
At the beginning of the year, expectations for higher global growth in 2011 were high. Now, a string of unexpected events, like unrest in the Middle East and a devastating earthquake and tsunami in Japan, has cast a shadow over some of that optimism. In the United States, the housing market still looks weak and unemployment remains high. Add higher gas prices to the mix, and the outlook for global growth looks less rosy.
[In Pictures: 7 Problems That Could Derail the Economy.]
"The story really is how complex and interconnected the world economy is," says Jeffrey Cleveland, senior economist at money management firm Payden & Rygel. Here is a more complete list of events that could hinder the global economic recovery:
Rising commodity prices. Rising oil prices are on the minds of many consumers these days. The national average price of regular unleaded gasoline is $3.58, up 23 cents from a month ago, and 78 cents from a year ago as of March 29, according to AAA. Economists say gas prices are rising for two reasons: supply concerns in the Middle East and higher global economic growth expectations. Oil currently trades above $100 per barrel. Most economists say that once it reaches about $120, many consumers begin to change their driving habits. "But the key is it has to be a spike, and it needs to be sustained," Cleveland says.
[See 5 Reasons Investors Shouldn't Bail on Japan.]
Oil isn't the only commodity that's heading higher. In many emerging markets like China, India, and Brazil, soaring food prices have forced leaders to raise interest rates to quell inflationary pressures. Rising commodity prices also affect companies' bottom lines. "The biggest risk right now to the markets would be the compression in profit margins," says Brett Gallagher, deputy chief investment officer for Artio Global Investors. "Costs are rising faster than companies' abilities to pass those along." He's concerned that analysts haven't included higher commodity prices into their earnings forecasts.
Declining consumer sentiment. This month, the Thomson Reuters/University of Michigan consumer sentiment index fell 10 points to 67.5, its lowest level since November 2009. In a recent note, Theresa Chen, analyst at Barclays Capital, said: "We believe this is largely owed to increasing commodity prices, which puts pressure on household income and personal consumption."
Historically, consumer spending makes up about 70 percent of economic activity in the United States, and it has played a significant role in the recovery so far. "Consumer spending was a big part of that success story in the fourth quarter of 2010," Cleveland says. "Anything that derails that could be a problem."
The end of QE2. The Federal Reserve's $600 billion bond-buying program, commonly known as the second round of quantitative easing, or QE2, is set to expire in June. Once a buyer as big as the Fed exits the market, economists say they're uncertain who's going to step in to fill that gap. Before QE2, the Fed only purchased about 10 percent of the total treasuries in circulation, while private domestic purchasers bought about 40 percent and foreigners purchased the other half, says Madeline Schnapp, director of macroeconomic research at TrimTabs Investment Research. Now, about 70 percent of all purchases are made by the Fed, and 30 percent come from foreigners. That's a huge gap to fill, Schnapp says. She's worried that if no new domestic buyers emerge, interest rates could rise sharply. As the end of QE2 nears, she says, the Fed will be more clear about whether it will pursue another round of quantitative easing after June. "The market will begin to give you a hint about how it likes that decision probably about six weeks before the end of QE2," she says.
[See What Happens After QE2 Ends?]
Housing. A dramatic rise in interest rates could have ramifications for other parts of the economy, including the mortgage industry. The 30-year fixed mortgage rate currently stands at an historically low rate of about 5.1 percent, according to HSH.com, a publisher of mortgage and consumer loan information. Typically, lower interest rates spark more buying in the housing market, but that hasn't been the case this time around. "The combination of difficult-to-obtain financing, the very weak employment market, and a general sense of unease about how strong this recovery is coupled with home prices declining means there's very little incentive to rush out and go do something now," says Keith Gumbinger of HSH.com. In fact, last week new home sales plunged 16.9 percent to a record-low annual pace of 250,000 in February. The Standard & Poor's/Case-Shiller Home Price Index for January also showed that home prices fell for a sixth consecutive month. With such low demand, Gumbinger says a spike in interest rates could make an already bad situation worse. "A 6 percent interest rate in this market, or above 6 percent for a time, would be devastating," he says.
[See One Reason the Housing Bust Could End Soon.]
Unemployment. The unemployment rate still remains high at 8.9 percent. In February, the economy added 192,00 jobs, most of which were private sector jobs, which is encouraging news. Friday's highly anticipated jobs report could potentially bring better news. TrimTabs reported Wednesday that the economy created 293,000 new jobs in March. But the latest concern has to do with state and local governments. Many states are facing huge budget shortfalls, and politicians are calling for cuts. Employees of state and local governments (think teachers and firefighters) make up about 15 percent of the country's total employment, Cleveland says. "We've seen state and local governments shedding jobs since 2008, and I expect that to continue as they go through budget cuts," he says.
Sovereign debt worries in Europe. Portugal looks to be the next shoe to drop in the European debt crisis. Greece and Ireland have already taken bailouts from the European Union and the IMF, and economists say it's only a matter of time before the Portuguese government, which recently collapsed, will be forced to accept a bailout of its own. Portugal, like Greece and Ireland, is seen as a small economic player in the overall scheme of things. Economists say the real concern is that the crisis spreads to other areas of Europe. If a larger country like Spain, which recently had its debt downgraded by Moody's, was forced to take bailouts, the impact could be felt throughout the entire European Union. (Spain is the world's 12th largest economy.) "Spain is the Big Kahuna," Cleveland says.
[See The Case for (and Against) European Stocks.]
Japan fallout. The most obvious lingering question in Japan is what will happen with the damaged reactors at the Fukushima nuclear power plant. Otherwise, the most pressing long-term issue in Japan is its debt problems. The country's public debt-to-GDP ratio clocks in at 225 percent--more than three times as high as that of the United States. "We've been long worried about the amount of debt that the Japanese government has," Gallagher says. "They're going to have to borrow to rebuild, so it just compounds the longer term issue."
Most active Nasdaq-traded stocks
Nasdaq's 10 most active stocks at the close of trading
On Tuesday April 12, 2011, 6:03 pm EDT
NEW YORK (AP) -- A look at Nasdaq 10 most-active stocks at the close of trading:
Cisco Systems Inc. fell .2 percent to $17.44 with 62,758,500 shares traded.
Dell Inc. rose .7 percent to $14.70 with 19,500,100 shares traded.
Identive Group Inc. rose 113.9 percent to $5.69 with 33,802,800 shares traded.
Intel Corp. fell 1.8 percent to $19.76 with 51,170,800 shares traded.
Level 3 Communications Inc. fell 1.8 percent to $1.67 with 72,087,700 shares traded.
Micron Technology Inc. fell 2.0 percent to $10.53 with 41,918,800 shares traded.
Microsoft Corp. fell 1.3 percent to $25.64 with 36,177,100 shares traded.
Nvidia Corporation rose .3 percent to $17.37 with 20,890,900 shares traded.
Sirius XM Radio Inc. rose 1.7 percent to $1.81 with 30,935,800 shares traded.
Yahoo Inc. fell 1.4 percent to $16.36 with 19,557,400 shares traded.
A nice read...
How to Become a Millionaire in 3 Easy Steps
by Paul J. Lim and George Mannes
Monday, April 25, 2011
Remember that old Steve Martin joke about the secret formula for becoming a millionaire?
"First, get a million dollars ..."
Okay, getting the odometer on your investment portfolio to click over into seven digits isn't quite that easy. Only 7% of American households ever manage it, according to research firm Spectrem Group -- though it's certainly not for lack of desire.
While $1 million may not be worth what it was back when Martin was a wild and crazy guy in the late '70s, achieving that iconic number still has profound allure. It means that you're ahead of the game. You're assured a baseline retirement security. You've arrived.
Martin may have oversimplified, but the reality is that getting your portfolio to the $1 million mark is not nearly as difficult as you may think, even if you've managed to put away only a fraction of that amount so far. You just have to understand how to operate the three basic levers of wealth building: how much time you have to work with, how much you save, and how you invest that savings.
The slightest tug on one or two of these levers can dramatically affect your path to $1 million. Use our calculator to pinpoint when you're likely to become a millionaire based on your current situation and investing returns.
Lever 1: How Much Time You Allow
When you think about getting rich, what jumps to mind? Saving more money? Getting that money to work harder for you? Sure, those are critical elements. But they're not nearly as important as time: How long you allow dictates how you pull the other two levers -- which is why you want to estimate your schedule before going on to the next sections.
Sometimes you can't play with the time lever -- your kids will go to college when your kids go to college. But in certain cases, it's possible to control the clock.
Say you're now 45, want to retire at 62 with a million bucks, and have $250,000 saved. You've got 17 years. If you were saving $15,000 a year, adjusting for 3% inflation (meaning you put away $15,000 in year one, $15,450 in year two, and so on), and were able to earn 4% a year in real terms (7% before inflation), you wouldn't get there.
[Calculator: When will you be a millionaire?]
http://cgi.money.cnn.com/tools/millionaire/millionaire.html?iid=EL
But if you delayed retirement by just two years, you'd hit the mark. As Chris Dardaman, head of Brightworth, a financial planning firm in Atlanta, says: "It's not the end of the world if you can't save as much or invest as well as you want -- as long as you save and invest longer."
In part, how long it'll take to become a millionaire depends on where you are now. If you already have $500,000 saved, it might take only 10 to 15 years, in inflation-adjusted terms, provided you sock away $10,000 to $15,000 a year and your investments outpace inflation modestly.
But even if you're only a tenth of the way there -- like the typical worker who's been investing in a 401(k) for 10 to 20 years, according to the Employee Benefit Research Institute -- you can make it in two decades or less, if you save a good chunk of income or earn a decent return.
Of course, that's the dilemma. While the ability to save more is within your control, the ability to generate a certain return isn't 100% in your hands. And as your time horizon shrinks, so too will your ability to accurately predict how your investments are likely to perform. So let time determine which of the two other levers -- savings or investing- -- you pull harder.
If you want to get to seven figures in 10 years or less: Seriously ramp up savings
With only a few years to invest, there's a significant risk that even a seemingly safe investment strategy could fall short of your expectations, because of the wide range of possible outcomes.
For example, according to computer models run by Ibbotson Associates, a moderate 60% stock/40% bond strategy could result in annualized returns of as much as 16% over the next 10 years, but it could also result in worst-case losses of nearly 1% a year. While that gain would certainly speed things up, a sustained loss -- even a modest one -- could be devastating given your time frame.
So if your self-imposed deadline for achieving $1 million (or any financial goal) is tight, instead of banking on optimistic returns, you're better off trying to boost your savings as much as possible. Then invest in a balanced mix of 50% stocks and 50% bonds that can be expected to beat inflation by a modest two or three percentage points a year.
If you're willing to wait more than 10 years: Invest more aggressively
The longer you have to invest, the greater chance you give the market to smooth out any ups and downs. Back to that 60%/40% portfolio: Over 20 years, the annualized spread could narrow to gains between 2% and 14%. So you could even take on a little more risk -- increasing your equity exposure, say -- for the possibility of better returns.
The single most important thing you need to know about building wealth: You're far better off being a dogged saver who's a mediocre investor than being a below-average saver who can knock the socks off the S&P 500.
Lever 2: How Much You Save
"It's sort of like exercising," says Stuart Ritter, a financial planner with T. Rowe Price. "You can devise the most optimal splits between cardio and weight training. But if you only go to the gym for six minutes, it won't really help you that much."
Let's say you have 20 years to invest and $250,000 already amassed. You can see from the table at right that boosting your annual savings from a modest $5,000 to an aggressive $20,000 could increase your chances of hitting $1 million in today's dollars -- $1.8 million nominally in 2031 -- from 31% to 67%, assuming a 60% stock/40% bond portfolio. If instead you kept your savings rate the same but upped your stock allocation to 80%, your chances of success would be less than fifty-fifty.
Savings may be the safer bet, but it's often the tougher task. Here are four ways to crank up the amount you're banking per year, in ascending order of difficulty.
Easy: Use Other People's Money
You've heard this before, but it bears repeating: The simplest way to boost your savings is to max out your 401(k) match, since that's a hand-out from your employer. Say you make $100,000 and save 3% of pay. If you're eligible to receive 50 cents on the dollar for the first 6% of salary deferred a common match you'd be leaving $1,500 a year on the table.
Tax-advantaged accounts like 401(k)s and IRAs also allow you to build wealth faster, in that case by putting Uncle Sam's money to work for you. On the same salary, by contributing $10,000 annually to a 401(k), you'd immediately reduce your income taxes by $2,800, assuming you are single and in the 28% bracket.
For now you can think of it as saving the equivalent of $10,000 while ponying up only $7,200. But even after paying taxes at withdrawal, you'd still come out ahead in most cases thanks to tax-deferred compounding at a 6% annual return, you would be up by $1,600 a year if you'd been socking away $10,000 for 15 years.
(This is why we assume that you'll use tax-deferred accounts as well as tax-efficient investments such as index funds to avoid the drag of taxes on your returns.)
A Little Harder: Bump Up Savings Systematically
"The easiest way to save is to put as much of your savings on autopilot as you can," says Shlomo Benartzi, chief behavioral economist for Allianz Global Investors.
A decade ago he and University of Chicago economist Richard Thaler devised a 401(k) plan feature that allows workers to preset future contribution hikes -- that is, it lets them specify in advance how much they want to ratchet up savings. A 2007 study found that those who used this option boosted contribution rates from less than 4% to nearly 14% in about 3½ years' time. Those who didn't barely changed their deferrals.
Today half of large employers offer this type of feature, reports Hewitt Associates. If your company is among them, use the tool to step up contributions.
A $2,000 bump will feel like only $55 more per biweekly paycheck thanks to the tax benefit. And with the money tucked into savings, you'll be forced to adjust your spending. Your plan doesn't offer this option? Partner up with a co-worker, put a date on your calendars, and remind each other to call HR that day.
Harder Still: Live on Last Year's Budget
After the market crashed in 2008, retirees were commonly advised to forgo inflation-adjusting withdrawals on their nest eggs for a few years, to give their accounts time to heal. People who are working can adopt the same strategy with savings rates.
Say you earn $90,000 a year and save $9,000 of it. That means you "spend" $81,000 a year on discretionary items (such as entertainment and travel), non-discretionary items (mortgage, utilities), and taxes. Let's also assume your pay climbs 2% annually for the next five years. Your $90,000 salary will rise to more than $99,000. But if you were to increase your "spending" each year only enough to cover the additional taxes you'd owe, you'd be able to save an increasing amount every year -- for a total of $15,000 by year five.
The challenge here, and the reason this falls under "harder still," is that if inflation rises faster than the long-term historical average of 3% -- as some economists fear -- you'd really have to trim your spending.
This plan may not be feasible in any case if you have a medical condition, what with health care costs expected to continue outpacing income growth for the next several years.
Hardest: Boost Your Income
There's only so much you can save on a given salary. At some point, the limits of austerity (you have to buy new clothes sometime!) and the impact of inflation will make it impossible to squeeze more out of your budget. When that happens, your only option is to increase your income.
Landing a higher-paying job would be one way to up your income. But since that promises to be challenging in today's tight labor market, bringing in income beyond your full-time job may be a more optimal choice.
If you have the capacity to do consulting work in the evenings or on weekends, even a small project could help you boost yearly savings by $10,000 or so. Plus, this would allow you to save more tax-deferred: You could contribute 25% of freelance pay up to $49,000 to a SEP IRA.
You might go further by taking steps toward starting a small business while still employed a path about half of entrepreneurs have taken, says the Kauffman Foundation. Or, with housing prices down in most markets and mortgage rates near historic lows, you could take a calculated risk on real estate, investing in rental properties to boost income.
True, improving your investment results may not speed you to $1 million as quickly as jacking up your savings rate. But it can help.
Lever 3: How You Invest
Say your goal is to have a million in less than 20 years, that you have $250,000 put away and that you are taking great pains to save $30,000 a year. Even at that aggressive pace, you wouldn't hit your deadline if your portfolio simply kept up with inflation. However, if you earned a modest 1% a year after inflation, you'd get to the equivalent of $1 million today in 18 years ($1.7 million in nominal dollars). Every percentage point shaves off a little more time.
Of course, the strategies that promise the greatest potential returns also present the greatest potential for loss so you'll want to avoid serious long shots like buying manganese futures or trading the Thai baht. A few saner strategies, in ascending order of risk:
Safe Bet: Cut Your Costs
The returns you collect from mutual funds will always be hampered by the expenses you pay. Don't think reducing costs makes much of a difference?
At Money's request, Vanguard ran a series of simulations to see how various asset mixes are likely to perform over the next 20 years.
Turns out, a typical 60% stock/40% bond portfolio, charging 1.25% a year, has a great probability of generating at least 5% annually over the next two decades. At that rate -- assuming 3% inflation, current savings of $250,000 and additional contributions of $15,000 a year -- you'd get to a million in 23 years.
But if you were able to boost those returns to 6%, which you could do by reducing portfolio costs to 0.25%, you'd make it in 20 years.
You can easily create a 60/40 portfolio with an overall expense ratio under 0.25%. For example, put 40% in Schwab Total Stock Market Index (SWTSX - News) (expense ratio: 0.09%), 20% in Vanguard Total International Stock (VGTSX - News) (0.26%) and 40% in Vanguard Total Bond Market (VBMFX - News) (0.22%). All three are on the Money 70, our list of recommended mutual funds and ETFs.
Wondering if you couldn't achieve similarly positive results simply by picking better funds? Good luck consistently finding managers that will consistently outperform the market, says Thomas Idzorek, chief investment officer for Ibbotson Associates.
Less Safe Bet: Tilt Toward Small Bargains.
In this strategy, you would keep your overall stock-to-bond split the same. You'd just move some of your equity allocation out of big blue chips and into small-cap value stocks -- shares of small companies that are being overlooked or once-larger companies that have fallen on hard times and are selling at attractive prices.
Between July 1927 and the end of last year, the average small-cap value stock gained more than 14% annually, according to Ibbotson Associates, vs. 9.8% for the S&P 500.
It's not all roses, however: Such stocks tend to be more volatile than your garden-variety blue chip because they've either been battered or lack competitive advantage.
Also, there have been long stretches when they have been out of favor, such as the mid- to late 1990s. Finally, since these shares have returned nearly three times as much as the broad market over the past decade, it's hard to imagine they can keep churning out outsize gains -- at least in the short run.
But in the long term "there's no reason to believe small-cap values won't sustain their advantage," says Paul Merriman, founder of Merriman Capital Management.
So if you have at least two decades to invest, gradually shift small amounts from large-caps into small value through a fund like T. Rowe Price Small Cap Value (PRSVX - News), which is on the Money 70. Do so until the shares are a quarter of your equity allocation, and history says you'll see a real impact. Since the late 1920s, a 60% stock/40% bond portfolio with this small-cap value tilt returned 9.7% a year, while a traditional 60/40 index portfolio returned 8.7%. With that edge, in 25 years you'd turn $200,000 into $970,000 in today's purchasing power vs. $770,000 without the small-cap bent.
Riskier Bet: Step Up Your Stock Stake.
History shows that the simplest thing you can do to boost long-term investment performance is to dial up your equity exposure. Since 1926, the average 50% stock/50% bond portfolio gained 8.2%, according to Vanguard. Raising the stock stake just a bit, to 60%, would have resulted in annualized gains of 8.7%.
There's a trade-off, of course: The more you tilt toward stocks, the higher your chances of losing money in a single year. A 50/50 portfolio has lost value in 17 calendar years since 1926; a 60/40 has fallen 21 times; a 70/30 sank in 22 years; and an 80/20 dipped in 23.
You'll suffer the most if the market dives near the end of your time horizon, since you won't have a chance to recover. For example, if you entered 2008 the last year the market suffered losses -- with $1 million, you'd have had $798,000 at the end of the year with a 60/40 mix.
Were your portfolio instead invested at 50/50, your million would've ended up at $840,000. So even if you think you can handle a greater stock exposure now, be sure to reduce the percentage as you approach your goal date.
Riskiest Bet: Leverage Your Equities
Yale professors Ian Ayres and Barry Nalebuff think there's a problem with how we invest. When you're young and can tolerate being all in equities, you don't have much money. When you're older, you may want to be only 50% in stocks, but in dollar terms that dwarfs how much you had in the market in your youth.
Therefore, the duo have controversially posited that young investors -- those in their twenties and thirties -- should leverage their equity positions, sometimes by as much as 2 to 1. In other words, if you have $20,000 to invest, not only should all of that go into stocks, but you should borrow an additional $20,000 so you have $40,000 in equity exposure.
Ayres and Nalebuff crunched the numbers going back to 1871 and found that over a lifetime this strategy consistently beat the traditional 110-minus rule (where you subtract your age from 110 and put the resulting percentage in stocks). Their method resulted in accounts 14% larger, on average. Even in the worst case, their approach came out ahead by 3%.
These professors aren't talking about taking a flier on a single stock. They recommend investing in the broad market, which you can do using a margin account at your brokerage to buy an index fund or ETF.
Or you can leverage your bets through options contracts that give you the right to buy or sell an index, such as the S&P, in the future. You'd reduce your stock exposure as you age. In fact, the extra risk you take in your twenties and thirties would allow you to be even more conservative -- possibly keeping as little as 20% in equities -- toward the end of your career.
There are, of course, caveats: While the profs say that someone in his forties could still benefit by leveraging -- say, 1.2 to 1 -- older folks or those with a time horizon of less than 20 years should think twice about trying this strategy. Leverage will magnify any losses you suffer in equities.
And that could put you in dire straits if your brokerage issues a margin call, meaning it requires you to sell some of your holdings because your account value is too low. (This is also a risk for young people, but less dire.)
Finally, if you work in a volatile industry where your future income looks shaky, you can't afford this type of risk. But if you've got a stable job and decades to invest? It may just make you a million bucks.
Sectors and Industries...
Is a compilation of lists of stocks currently undergoing one of 34 technical or fundamental events likely to affect stock price. Outstanding performers ripe for inclusion in your portfolio or watch list.
Underperformers ready for a tumble. If you like to play the short side...
Is a compilation of lists of stocks currently undergoing one of 34 technical or fundamental events likely to affect stock price.
US stocks rise on hopes for new Greek aid package
Hopes for new Greek aid deal push stocks higher; sharp drop in consumer confidence pares gains
Stan Choe, AP Business Writer, On Tuesday May 31, 2011, 12:14 pm EDT
NEW YORK (AP) -- New hopes that a deal would be reached for Greece to avoid defaulting on its debts sent stocks higher Tuesday. The market gave up some of its gains following a surprise drop in U.S. consumer confidence.
The Dow Jones industrial average rose 70 points, or 0.6 percent, to 12,512 in midday trading. It had been up as many as 133 points earlier.
The Standard & Poor's 500 index rose 7 points, or 0.5 percent, to 1,338. The Nasdaq composite gained 16 points, or 0.6 percent, to 2,813. Crude oil and metals prices also rose.
The Conference Board reported that its monthly survey found that Americans are losing faith that the economy is improving. The surprisingly poor results were caused by worries about jobs and inflation. Economists had expected confidence to improve for a second straight month.
The weak report dented optimism among investors that Greece may be nearing a deal to get another package of financial aid from its neighbors in Europe. Germany may back off its push for an early restructuring of Greek bonds, a shift that would help Greece get more aid, according to a report from the Wall Street Journal. Many European banks hold Greek government bonds and could suffer losses if the country restructures its debt.
Fears that Greece may not receive its latest installment of emergency loans knocked stocks lower over the past month. The Dow Jones industrial average has dropped four straight weeks, its longest losing streak since February 2010. Investors worry that if Greece defaults it could cause traders to shun the debt of other weak European countries like Portugal and Spain, raising their borrowing costs and causing more havoc on world markets. Greece received a package of emergency loans a year ago but it has become clear in recent weeks that the country will still need more help.
Ashland Inc. rose 10.2 percent after saying it will buy Specialty Products Inc. for $3.2 billion in cash. It's the latest big purchase in the specialty chemicals industry. Earlier deals include Berkshire Hathaway Inc.'s $9 billion purchase of Lubrizol Corp., announced in March. Corporate dealmaking, along with strong earnings, helped propel stocks earlier in the year.
Canadian utility Fortis Inc. said Monday that it will buy Central Vermont Public Service Corp. for about $470 million in cash. Shares of Vermont's largest utility rose 41 percent Tuesday, their first day of trading since the announcement. U.S. markets were closed Monday for Memorial Day.
General Dynamics rose 4.4 percent after it said it received a $744 million contract to build two ships for the U.S. Navy.
Energy stocks rose along with the price of oil. Crude futures climbed $2 to top $102 per barrel. Cabot Oil & Gas Corp. rose 2.3 percent.
Investors mainly looked past another grim report on the U.S. housing market. Home prices in in 12 of the 20 cities tracked by the Standard & Poor's/Case-Shiller index dropped in March to the lowest levels since the housing bubble popped in 2006. "Home prices continue on their downward spiral with no relief in sight," said David Blitzer, chairman of the index committee at S&P Indices.
Oliver Pursche, president of Gary Goldberg Financial Services, said the report didn't hurt investors' confidence much because their expectations were so low for the U.S. housing market already.
"There's no shock factor there," Pursche said. "We knew it was going to be bad, and it is."
5 Tax Rip-Offs... >:D
From Social Security benefits being taxed to the AMT, here are unfair tax rules that should be repealed.
The ever-growing federal budget deficit and ongoing recession finally may force Congress to initiate meaningful federal income tax reform. Here are five tax rip-offs that should be fixed.
Employees Can't Deduct Health Premiums
If you're an employee who has to pay for your own health insurance, you don't get any tax write-off unless your company provides a cafeteria benefit plan. Many small and medium-sized companies don't, forcing their employees to pay health premiums with after-tax dollars. Meanwhile, employees with better benefit packages get tax-free company-paid health coverage, and self-employed folks are allowed to write off their health insurance premiums.
Renters Get No Tax Breaks
Homeowners are allowed to claim tax deductions for mortgage interest and property taxes. If they sell their homes for a profit, they can usually avoid paying any federal income tax on gains up to $250,000 or $500,000 for married couples. If they make energy-saving home improvements, they can claim tax credits. In contrast, renters get no tax breaks whatsoever.
The solution is not to give new tax breaks to renters. The solution is to repeal tax breaks for homeowners. Ouch.
The Alternative Minimum Tax (AMT)
The AMT was originally conceived as an alternative individual income tax system that forced super-high-earners who took unfair advantage of multiple tax breaks to pay at least some federal income tax. I have no problem with that concept. But over time, the AMT has morphed into a tax that mainly penalizes middle-income folks, who have lots of kids and pay lots of state and local taxes. To avoid ruffling the feathers of a large number of voters, Congress tweaks the AMT rules every year to prevent millions more from getting hit with the tax.
So why not just repeal the AMT and be done with it? Because the politicians want to keep it around as a backup revenue source -- just in case.
Social Security Benefits Are Taxed
When you start receiving Social Security benefits, you will discover the sad truth that between 50% and 85% of your payments might get hit with federal income tax (the taxable percentage goes up with your income). That's a big rip-off for two reasons.
First, you already paid Social Security taxes in the form of withholding from your salary. So now you are paying income tax on benefits based on a tax you paid years ago. Even worse, you already paid income tax on those Social Security taxes years ago, because they were included as part of your taxable salary. Bottom line: you get taxed twice on a tax. That is triple taxation folks. Thankfully, retirees who are at very low income levels don't have to pay the triple tax, but everybody else get socked.
Is this unfair? Of course. But Congress likes the revenue stream, so the problem is not going to get fixed until millions of Social Security recipients demand it.
Retirement Account Required Minimum Distributions
Do you have money in an IRA or 401(k) account? Once you turn age 70 , you must start taking annual required minimum distributions (RMDs). Guess what? Those RMDs are taxable, which is why Congress dreamed up the RMD rules in the first place. The politicians want to get their hands on some of your retirement account money sooner rather than later. If that means you don't have enough to live on, too bad.
President Obama has floated the idea of making up to $50,000 of retirement account balances exempt from the RMD rules. Good idea, but it doesn't go far enough. Let's just repeal the RMD rules and be done with it. Seniors should be allowed to keep their hard-earned retirement savings out of the government's hands.
Finally, lest you think otherwise, this column was not written from any particular political perspective. All the things I rant about have been around for years - during periods when both Republicans and Democrats have been in control. Bad tax policy is bad tax policy regardless of one's political affiliation. We need to start demanding an Internal Revenue Code that collects taxes in an efficient and transparent manner. What we have now falls far short on both counts.
Just What You Needed: Higher Taxes...
While you hear a lot about the federal income tax, you don't hear much about the Social Security tax. That's odd because for many folks especially the self-employed Social Security tax can be the bigger hit. Here are some little-known truths about how the Social Security tax works and how much it can amount to.
As an employee, your wages are hit with the 12.4% Social Security tax up to the annual wage ceiling. Half the Social Security tax bill (equal to 6.2%) is withheld from your paychecks. The other half is paid by your employer. Unless you understand how the tax works and closely examine your pay stubs, you may be blissfully unaware of how much the Social Security tax actually costs.
The Social Security tax wage ceiling for both 2010 and 2011 is $106,800. If you made that much or more last year, the Social Security tax hit on your 2010 wages was a whopping $13,243 (12.4% x $106,800). Half came out of your paycheck. Your employer paid the other half.
For 2011, the tax hit is less, thanks to a one-year 2 percentage-point reduction in the Social Security tax withholding rate on wages -- from the normal 6.2% to 4.2% (your employer's 6.2% rate is unchanged). For 2012 and beyond, however, Social Security tax withholding on your wages will jump back to the standard 6.2% rate.
While many employees may not realize the magnitude of the Social Security tax, self-employed folks know it all too well. That's because the self-employed must pay the entire 12.4% tax rate out of their own pockets, based on the amount of their net self-employment income. This is one big reason why companies often prefer to treat workers as self-employed independent contractors rather than employees. Companies don't owe any Social Security tax on amounts paid to independent contractors.
For both 2010 and 2011, the Social Security tax self-employment income ceiling is $106,800 (same as the wage ceiling for employees). So if your 2010 self-employment income was $106,800 or more, you paid the Social Security tax maximum of $13,243 last year (12.4% x $106,800 = $13,243).
In 2011, the hit will be less thanks to a one-year 2 percentage-point reduction in the Social Security tax rate on self-employment income -- from the normal 12.4% to 10.4%. For 2012 and beyond, however, the Social Security tax on self-employment income is scheduled to return to the standard 12.4% rate.
To give you an idea of how the Social Security tax can add up over your working life, consider my personal situation. In 35 years behind the grindstone (about half as an employee and the other half self-employed), I've paid $219,000 in Social Security tax. My employers paid another $41,000. That amounts to $260,000 in total. During my time as a self-employed guy, I've had some years where my Social Tax bill exceeded my combined federal and state income tax bills.
Believe me, if I could get the $260,000 back, stop paying the tax, and forego receiving any benefits, I would do it in a heartbeat. In fact, if I could just stop paying the tax in exchange for walking away from any future benefits, I would do that too. Why? Because I have big doubts I will actually receive the promised level of benefits when the time comes.
And thanks to the government's official contention that there has been little to no inflation over the past few years, the Social Security tax ceiling has been stuck at $106,800 since 2009. However, the latest Social Security Administration projection says it will start rising again in 2012 and beyond. The projected ceilings for the next nine years are as follows.
If these numbers pan out, the maximum Social Security tax hit in 2020 would be $19,009 (12.4% x $153,300). That's assuming Congress doesn't increase the tax rate, which could easily happen. There's also a chance the ceiling will be increased beyond what you see here or even entirely removed in an attempt to put the system on a sounder financial footing. If there's no ceiling, you would owe Social Security tax on wages and self-employment income on every dollar you earn.
Another misunderstanding about Social Security: Some people think the government has set up an account with their name on it to hold the money to pay for their future Social Security benefits. After all, that must be where all the Social Security taxes on people's wages and self-employment income go, right? Wrong. There are no individual accounts. In fact, when the Social Security system runs a surplus (which it has in most years until now), the federal government sucks out the excess cash and issues the system an IOU. But the only way those IOUs will ever be paid is through future taxes. Meanwhile, the system is now projected to run out of money (including those nebulous IOUs) in 2036 unless taxes are raised or benefits are cut.
Projected Social Security Tax Celing
2012 -- $110,700
2013 -- $114,900
2014 -- $120,000
2015 -- $125,400
2016 -- $130,800
2017 -- $135,900
2018 -- $141,300
2019 -- $146,700
2020 -- $153,300
Why No Jail Time for Wall Street CEOs?
by David Weidner
Wednesday, June 1, 2011
Commentary: Little reason to hope that justice will be served
NEW YORK (MarketWatch) — It's probably the most asked question to come out of the financial crisis: why aren't any Wall Street CEOs in jail?
It's asked on the message boards, over dinner, in the media, in Washington and in schools. Most people shrug and agree, someone important — Lloyd Blankfein at Goldman Sachs (NYSE: GS - News), Stan O'Neill, formerly of Merrill Lynch & Co., or Dick Fuld, the former CEO of Lehman Brothers — should go to jail, right?
A lot of us have tried to answer this question. Joe Nocera at the New York Times wrote in February that prosecutions were unlikely because "delusion is an ironclad defense." .
More recently, Roger Lowenstein, writing for Bloomberg BusinessWeek, concluded "risk-taking and stupidity aren't criminal." Lowenstein's argument won praise from the Times' Andrew Ross Sorkin who tweeted that Lowenstein was "probably right."
Finally, Bill Black, the University of Missouri at Kansas City law school professor, and one of clearest-thinking minds on culpability in the financial crisis, wrote a blistering takedown of both Lowenstein and Sorkin on The Big Picture blog by quoting their previous writing on Wall Street against them. In Sorkin's case:
"If the government spent half the time trying to ferret out fraud at major companies that it does tracking pump-and-dump schemes, we might have been able to stop the financial crisis, or at least we'd have a fighting chance at stopping the next one."
Taking down the 'Don'
The upshot of these assessments of legal culpability seems to be that while a successful prosecution may have long odds, it's probably worth doing. Indeed, the Financial Crisis Inquiry Commission and the Senate Investigations Subcommittee report on Wall Street, the Levin-Coburn report, both suggest further investigations are in order.
"It is possible for certain senior executives at major financial firms and banks to be held liable for the credit crisis," said Michael Chester, a partner at Skarzysnki Walsh & Black. "However, putting together a successful case will likely be much more problematic than most realize."
For one, regulators just haven't been keeping up, Chester said.
"Traditionally, these agencies have always amassed large amounts of information to use in subsequent criminal prosecutions. However, statistics show that these agencies have referred fewer financial cases to the U.S. Department of Justice in recent years."
Also, a ruling in the case against former Enron Chief Executive Jeff Skilling about the "honest services" statute now strictly applies to bribes and kickbacks, Chester said.
Moreover, the statute of limitations has run out on a lot of securities law claims, said Max Gardner, a consumer advocacy lawyer who's been working in the foreclosure space. He adds that it's difficult to pursue claims against securities sold by the banks these CEOs ran, because common-law fraud claims require a showing of intent.
"There's also the representations and warranties in the securitization documents themselves, including that there is good title to the mortgages and that they're not in default," he said. ""It's important to emphasize, however, that there could be suits against mortgage-backed securities sponsors, MBS servicers, and MBS trustees."
But those targets are admittedly below the executive suite for which we're aiming. It's hard, but not impossible, to believe those CEOs didn't know how reckless their standards had become on the mortgage and securitization front. Again, the Coburn-Levin report suggests there are some smoking guns that could link high-level executives who testified that they just didn't know what was happening.
Even if there was evidence enough to build a case, it probably wouldn't satisfy us.
"For those who sold financial products that misrepresented their credit worthiness, how far up the chain do you want to go?" asked Brian Greenberg, an accountant and investor based in Marlton, N.J. "Do you want to take down the 'Don'?
"In that case start with the Federal Reserve that made credit plentiful and cheap without any regard to creditworthiness of the buyer. If their excessive policy of pushing cheap money did not exist, then Wall Street would not have been able to push the 'junk' to the kids — er, public."
Greenberg makes a fair point. There's a lot of blame to go around.
It's the ability to mete out punishment that has its limits.
David Weidner covers Wall Street for MarketWatch.
Can't stand 4 more years of this PRESIDENT ::)
Government May Lose $14 Billion on Auto Bailout ...
JUNE 1, 2011, 5:16 P.M. ET
WASHINGTON—The White House said Wednesday that taxpayers could lose roughly $14 billion of the money spent on auto industry bailouts, despite the industry's recent recovery.
The White House cites the potential losses in a report, "The Resurgence of the American Automotive Industry," released ahead of President Barack Obama's trip Friday to a Chrysler Group LLC facility in Toledo, Ohio.
The report said that of the $80 billion in bailout money supplied to the auto industry, less than 20%, or $16 billion, ultimately may be lost. That's down from the 60% loss projected two years ago, the report said. The White House's top auto and manufacturing adviser, Ron Bloom, later specified the loss at closer to $14 billion.
While "there is no joy" in acknowledging that loss, the bailout succeeded in saving jobs and preventing a broader industry collapse, Mr. Bloom said.
"So while we are obviously extremely conscious of our obligation to get every penny we can for the taxpayer, we're also not going to apologize for the fact that there are literally hundreds and hundreds of thousands of Americans who are working today" because of the bailouts, he said.
The U.S. could lose more than $10 billion in General Motors Co. alone if the government sold its remaining shares of the auto maker at current share prices.
The Obama administration has signaled it wants to divest its remaining GM shares within the next few months. Under terms of GM's November initial public offering, the U.S. Treasury could begin selling additional shares of its GM holdings as of late last month. Mr. Bloom said Wednesday the administration has not settled on a price or date for selling its remaining shares, but said the administration may accept a loss.
"The president has made clear that he does not believe that is the proper role of government in the long term to be an owner of a private corporation," Mr. Bloom said. "And so we do not view ourselves as kind of market timer looking for the absolute best opportunity to sell."
The White House report said the money invested in GM and Chrysler ultimately saved the government tens of billions of dollars in direct and indirect costs, including the cost of unemployment insurance and lost tax receipts that the government would have incurred had the big Detroit auto makers collapsed. Since GM and Chrysler emerged from bankruptcy, the industry has created 115,000 jobs, its strongest period of growth since the late 1990s, the report said.
Mr. Obama's Toledo trip and the White House report are part of a broader Democratic effort to turn the industry bailout into a political advantage, particularly in Midwestern states that were hit hard by the recession and could provide key support for the president's re-election bid in 2012.
Treasury still holds 6% of Chrysler and is in discussions now to sell its remaining shares to Italian auto maker Fiat SpA, which now controls the Auburn Hills, Mich., auto maker. Fiat said last Friday that it hopes to exercise an option to buy the Treasury's remaining shares within 10 days.
The White House report also comes as the U.S. industry's sales have hit a lull. U.S. auto sales declined in May, in only the second significant slide since the fall of 2009, as short supplies, higher prices and economic worries weighed on demand, auto companies said Wednesday.
While most of the government's money flowed to GM and Chrysler as they underwent bankruptcy reorganizations, auto finance and parts suppliers also received aid.
A Blended Portfolio:
Top 5 Stock Picks for Diversification This Summer...
As sure as the summer months are for vacations to rejuvenate the mind and soul, they are also for the savvy investor to rejuvenate his portfolio.
We have seen the markets slow down and turn sluggish this past May and forecast that the lazy months of June, July and August will take a break from the great gains of earlier this year. This is the time to make changes to our holdings and prepare our portfolios to reap the gains of the latter half of 2011.
In almost every sector you can find a winner - a great company, with a great business model on the verge of moving ahead of its competition by leaps and bounds. I have gathered a list of five companies that fit such criteria. All are a good fit for any diversified portfolio.
Priceline.com Inc. (PCLN) is on our list for a Services company that has seen extraordinary gains in the past year with more room to grow. Priceline offers various travel services, including airline tickets, hotel rooms, car rentals, vacation packages, reservation services and much more. This is "THE" mecca for the price-conscious traveler with and arm's length itinerary. The company's gross travel bookings were up 57.3 percent year/year, where international gross bookings grew by 79 percent year/year. Not too shabby for a slow moving economy. Looking forward, Priceline President and CEO Boyd said,
Globally, we intend to retain our focus on extending our reach in established and new geographic markets and providing an outstanding consumer experience to build the strength of our brands.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=50518)
Polypore International Inc. (PPO) is our Industrial play that develops, manufactures and markets micro-porous membranes used in separation and filtration processes. The Energy Storage segment offers membranes that separate the cathode and anode in applications, including lithium batteries and lead-acid batteries. The Separations Media segment provides membranes that are used as high technology filtration element in various medical and industrial applications. Sales for the Energy Storage unit were up 35 percent year/year while sales for the Separation Media unit were up 12 percent year/year. Robert Toth, President and CEO, noted:
We are at the front end of long-term secular trends associated with mobile power and purity as it relates to high performance filtration. Our first quarter performance highlights the substantial growth potential associated with these trends and the strong demand affirms our confidence in the investments we've approved to date.
Polypore is the best when it comes down to their rank within the chemicals specialty group.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=50519)
Altera Corporation (ALTR) is a leading supplier of programmable semiconductors and related products that mainly serves customers in the telecom and wireless, industrial automation, military, networking and computer storage sectors. With a market cap of 15.18B, this Tech company has a profit margin of 40.89 percent with a return on equity of 43.56 percent. Altera's first quarter results blew away 2010's with sales up 33 percent year/year. According to John Daane, President/CEO/Chairman of the Board, Altera's 40-nm based products are now entering the best part of their growth phase which ensures its investors of the company's continuing progress upwards. Altera also offers a nice bonus, a $.24 a share yearly dividend for its share owners.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=50520)
Carbo Ceramics Inc. (CRR) is a fantastic player for the Oil and Gas industry. This company manufactures and supplies ceramic proppants primarily used in the fracturing process of natural gas and oil wells in the U.S. and internationally. With a market cap of 3.48B, they are more than your little start-up. Revenues last quarter were up 22 percent year/year, showing the commitment the U.S. has to providing jobs and sustainability in our own back yard. President and CEO Gary Kolstad commented:
CARBO is off to a good start in 2011, achieving the best quarter in the Company's history. Our technical marketing strategy continues to have a positive impact on increased well production and enhanced recovery. A clear result of this strategy is the continuing demand for ceramic proppant in both natural gas and liquids-rich resource plays, such as the Haynesville, Eagle Ford, Colony Wash, Permian, and the Bakken. Clients throughout the oil and gas industry turn to CARBO to meet their proppant demands, and we remain committed to growing our proppant franchise.
Carbo Ceramics also offers a yearly dividend of $.80 a share.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=50521)
VMWare, Inc. (VMW) is a great Tech play within the computer software group. This is a much different business than our tech pick Altera. VMWare provides virtualization infrastructure software solutions and related support and services primarily in the U.S. This company has been on fire for quite some time now. Recently VMWare reported revenues for the first quarter were up 33 percent year/year.
"The quarter's strong performance underscores the value that VMware is providing customers on their journey to cloud computing," said Paul Maritz, CEO. "Customers continue to invest in our portfolio of virtualization and cloud infrastructure solutions to remove complexity and enable IT as a Service."
The company has not only focused on products and customer satisfaction but have been on a buying spree acquiring businesses to help them grow in a direction that will bring unbelievable benefits in all areas of their business.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=50522)
Remember that the lazy months of summer are typically slow moving and we don't see much action in the markets during that period. Add, some great companies to your portfolio, stick to your long-term goals and sit back and wait for the rewards to come to you.
Stocks post fifth straight week of losses
Stocks extend losing streak after government job report shows weak hiring in May
Friday June 3
A weak employment report sent stocks sharply lower, closing out the fifth straight week of losses for the Dow Jones industrial average and the S&P 500 index.
Employers added only 54,000 new workers in May, the fewest in eight months and well below what analysts had expected, the Labor Department reported Friday. Private companies hired the fewest new workers in nearly a year, and the unemployment rate inched up to 9.1 percent from 9 percent.
The Dow fell 97 points, or 0.8 percent, to close at 12,151. The S&P 500 fell 13, or 1 percent, to 1,300. The Nasdaq composite fell 41, or 1.5 percent, to 2,733.
More than two stocks fell for every one that rose on the New York Stock Exchange. Trading volume was 3.6 billion shares.
Iraq finalizes 2 promising gas deals
Iraq inks 2 deals to develop promising gas fields as demand for power grows
Associated Press, On Sunday June 5, 2011
BAGHDAD (AP) -- Iraq on Sunday finalized deals with a pair of international consortiums to develop two promising natural gas fields, the latest step by the war-ravaged country to tap its own resources to fuel its growing power demands.
Iraqis have been struggling to rebuild their damaged electricity grid and improve power stations and lines. Blackouts are still common. Last summer, power shortages spurred demonstrations that turned deadly when security forces fired into crowds.
Turkey's TPAO-led consortium will develop the 4.6 trillion cubic feet Mansouriya field in eastern Iraq for $7 per barrel of oil equivalent. It plans to reach a peak production of at least 320 million cubic feet per day.
State-run Kuwait Energy and Korea Gas Corp., KOGAS, are teaming up with TPAO.
The second consortium that groups Kuwait Energy with TPAO will develop the 1.1 trillion cubic feet Siba field in the south. They will be paid $7.50 per barrel of oil equivalent to what they produce, with a peak production level estimated at 100 million cubic feet.
Peak production from the two fields must be sustained for 13 years. The first commercial gas to come on stream must be at least 25 percent of the planned peak production and must be achieved within the first three years.
"The ministry has drawn an ambitious plan to meet the needs for electricity, to meet the needs of gas-dependent industries and to make Iraq one of the leading countries that export gas," said Oil Minister Abdul-Karim Elaibi.
Since the 2003 U.S.-led invasion, Iraq has struggled to develop its oil and gas industry. The sector, which had been ravaged by years of sanctions-induced neglect and damage, saw development efforts move fitfully as looting and sabotage added to the damage it sustained during the war to oust Saddam Hussein. Demand has also exploded as Iraqis can buy appliances never available under Saddam's government.
Insurgents have often attacked oil facilities to undermine the government. Mansouriya field is located in one of the country's most volatile provinces, Diyala, which is east of Baghdad along the Iranian border. Siba field is in southern Iraq, which has generally been more stable than the rest of the country.
However late Saturday an oil storage tank was attacked in the southern province of Basra, two Iraqi oil officials said Sunday. The attack occurred near the Zubair oil field. No casualties were reported and firefighters controlled the blaze. Authorities were investigating whether rockets or bombs caused the attack.
The officials spoke on condition of anonymity because they were not authorized to release information.
Both deals signed Sunday were snatched during Iraq's third energy bidding round last October that offered three gas fields. The third field was the 5.6 trillion-cubic foot Akkas field near the Syrian border in western Iraq. That deal was initialed with South Korea's KOGAS last Wednesday and still must be approved by the Cabinet before it is finalized.
Iraq produces about 7,000 megawatts of electricity daily -- about half its actual need. That includes about 1,000 megawatts imported from Iran and Turkey.
Last month, Iraq signed a tentative deal with Iran to import 25 million cubic meters of natural gas daily to feed two power plants in the northeastern suburbs of Baghdad for five years. It still needs the backing of Iraq's Cabinet and parliament.
The 20-year deals offer Kuwait its first foothold in Iraq since Saddam invaded the tiny emirate in 1990, sparking the first Gulf War. Since then the two neighbors have argued over border and debt issues.
Turkey's TPAO has now secured three oil and gas deals in Iraq.
Iraq has awarded 15 oil and gas deals since 2008 to international energy companies in the first major investments in the country's energy industry in more than three decades.
The country, which sits atop the world's fourth-largest proven reserves of crude, also holds 126.7 trillion cubic feet of undeveloped gas reserves. For years, Iraq flared -- or burned off -- the gas largely because it lacked adequate facilities to process it.
China shops for Latin American oil, food, minerals
China on Latin American buying spree to lock in long-term needs in oil, minerals, food
Associated Press, On Sunday June 5, 2011
CARACAS, Venezuela (AP) -- Latin America is blessed with a wealth of natural resources such as oil, copper and soy, and seeks investment and loans to capitalize on them. China needs the commodities to keep its economy growing and has about $3 trillion in reserves to burn.
Those interests have come together in a burgeoning and unorthodox partnership, as China lends and invests tens of billions of dollars in countries around Latin America in return for a guaranteed flow of commodities, particularly oil.
Recent deals have made China a key financier to the governments of Venezuela and Argentina. At the same time, Chinese companies have secured a decade's worth of oil from Venezuela and Brazil, and steady supplies of wheat, soybeans and natural gas from Argentina.
China is breaking new ground by aggressively locking down commodities around Latin America through large loans, investments and other financial arrangements, said Orville Schell, director of the Center on U.S.-China Relations at the Asia Society in New York.
"I don't know of any other government which has done this sort of securing of rights for commodities and natural resources so systematically around the Third World as China, and they've used a whole host of new financial instruments to do this," Schell said.
"China's been very, very prolific in spreading its investments around Africa and Latin America, even though the terms aren't ideal."
Ernesto Fernandez Taboada, director of the Argentine-Chinese Chamber of Production, Industry and Commerce, said China is simply making sure it has the resources it needs to continue growing its economy, which, by some accounts, is projected to surpass the U.S.'s by 2020.
"For China, this is a strategic, long-term investment," Fernandez Taboada said. "They're thinking in the future, not just in the moment. These oil investments, for example, are for 15 to 20 years."
Some of the largest investments have gone to Brazil and Argentina, but China has extended even bigger loans to Venezuela, agreeing to provide more than $32 billion to President Hugo Chavez's government.
Venezuela will pay its debt in oil, and in increasing amounts of it during the next decade. The infusion of cash has swiftly made China Venezuela's biggest foreign lender, enabling Chavez to boost spending ahead of next year's presidential election.
"Viva China!" Chavez exclaimed during a televised meeting with business leaders from Beijing, thanking them for helping set up mobile phone factories and build railways and public housing in Venezuela. He gushed: "I'm in love with China."
The relationship is driven in part by Chavez's eagerness to form alliances that exclude the U.S. But it's also good business for Chinese companies: Venezuela says it has been exporting to China about 460,000 barrels a day, about 20 percent of its oil exports, according to official figures. It hopes to double that soon.
"Venezuela has what we need," said Chen Ping, political counselor at the Chinese Embassy in Caracas. "And we also have what they need, for example technology ... Therefore we can help each other mutually."
The loans are typically secured against revenues from oil sales to Chinese companies, purportedly at market prices, though there could be discounts in some cases, said Erica Downs, an expert at the Brookings Institution think tank in Washington. She wrote a March report on the China Development Bank's energy deals worldwide.
In many cases, financing is being channeled through the state-controlled China Development Bank, which has worked with Chinese companies to lock in commodity supplies.
Downs said such loans give Chinese state oil companies an edge by allowing them special access to local projects. In some cases, she said, such as in Venezuela and Argentina, the loans appear tied to hiring Chinese companies that carry out public works projects for the borrowing government.
China's financing has also been unique, she said, in that in recent years "virtually no other financial institutions were willing to lend such large amounts of capital for such long terms."
Countries such as Venezuela and Ecuador would otherwise have few options for obtaining such large lines of credit, in part due to their presidents' hostility toward traditional lenders such as the World Bank and the International Monetary Fund, Downs said.
The China Development Bank has become a convenient "lender of last resort," Downs said, and Venezuela's government, in fact, has become the bank's biggest foreign borrower.
In Ecuador, the Chinese oil company PetroChina agreed in 2009 to lend $1 billion to state company PetroEcuador in exchange for oil deliveries. The China Development Bank also agreed to lend $1 billion last year to Ecuador's government, to be repaid through oil shipments.
The Chinese stake appears set to grow exponentially.
Direct Chinese investments totaled more than $15 billion in Latin America and the Caribbean last year -- 9 percent of the region's foreign direct investment, according to a May report by the U.N. Economic Commission for Latin America and the Caribbean.
The report said that while the U.S. is still Latin America's largest investment source, China has climbed to third place, behind the Netherlands.
In Argentina, Chinese companies have even replaced U.S. and British corporations in controlling lucrative natural gas and oil resources.
Last year, the state-owned Chinese oil company CNOOC entered into a 50-50 joint venture with Bridas Energy Holdings Ltd., a family owned Argentine company. The joint venture then bought out British company BP's shares in Argentina-based Pan American Energy, giving it 18 percent of Argentina's oil and natural gas production. This year, the venture also purchased U.S.-based Exxon Mobil Corp.'s interests in Argentina, Paraguay and Uruguay, including a refinery and more than 700 service stations.
"Clearly, the U.S. remains the significant actor in Latin America and will remain so for the foreseeable future," said Eric Farnsworth, vice president of the Council of the Americas, a U.S.-based business group. "But China's a huge part of the scene now. It was commodities exports to China over the last five years that allowed Latin America to weather the economic turmoil."
One Chinese company not only locked in a long-term supply of commodities, but also set a more stable price for years to come and circumvented market rates, which have soared in part because of Chinese demand.
China and Chile created a $2 billion sales, finance and investment joint venture in 2005 that guaranteed China 836,250 metric tons of copper over 15 years, at rates partially fixed on what was then the market price of $2.07 a pound. Chile's state-owned Codelco mining company had to put up its entire 49 percent interest in the venture as collateral, and give China Minmetals Corp. an option to purchase 100 percent of one of the world's most promising copper mines.
Chileans criticized the deal as a threat to their patrimony as they became aware of its details and copper prices soared. Both sides backed off the Chinese purchase option in 2008 to fend off the criticism, but with copper now trading above $4 a pound, Chile's top client is still getting thousands of tons of copper at far below market prices.
China also controls 50 percent of Argentina's largest oil field, Cerro Dragon, and all the oil and gas reserves in the far southern Argentine province of Santa Cruz over the next 40 years, deals that became anti-government campaign issues in provincial elections.
During recent visits to Brazil, Schell said he has heard wariness from businesspeople about a system in which "Brazil sends their natural resources and China sends their flip-flops and consumer goods."
Rubens Barbosa, Brazilian ambassador to the U.S. from 1999 to 2004 and now a business consultant, said Brazilian officials have complained that cheap Chinese exports have destroyed domestic industries such as shoe and textile manufacturers. Brazil this year imposed antidumping tariffs on imports of some Chinese fibers within months of China becoming Brazil's biggest trading partner.
"With trade, we have a problem because the aggressiveness of Chinese companies is very strong," Barbosa said. "But the government still has a lot of interest in these relations with China. China is now the principal partner of Brazil."
China's commercial ties with Brazil continue to grow. About 14 percent of the South American country's oil production went to China in 2009, and that portion is expected to expand because Brazilian oil company Petrobras signed a 10-year deal with Chinese-owned Unipec Asia to export 150,000 barrels of oil a day in the first year. The deal calls for exports of 200,000 barrels a day for the next nine years. At the same time, Petrobras secured a $10 billion, 10-year loan from the China Development Bank.
Petrobras says the deals were separate and that the oil is not being used to pay back the loan. Still, the agreements ensure Chinese access to Brazil's booming oil production, which promises to skyrocket after vast offshore reserves discovered in 2008 come online.
China has also been active across Argentina. The China Development Bank has offered a $2.6 billion, 10-year loan to revive a freight train system connecting Buenos Aires to much of Argentina's central heartland. In the country's Rio Negro province, the Metallurgical Corporation of China has invested $80 million to reactivate an iron ore mine, and China's Beidahuang Group company has promised $1.4 billion in irrigation infrastructure in exchange for a 20-year contract to grow corn, wheat, soy and dairy on otherwise dry land for Chinese consumers.
And in remote southern Tierra del Fuego, near the tip of South America, Chinese companies are investing $1 billion, not only to produce fertilizer, but to build an energy plant, for which Argentina has promised China natural gas for 25 years.
"Two weeks ago, the Chinese commerce minister visited us with 60 business executives, and they showed great interest in investing in other sectors," Fernandez Taboada said. "There is a fundamental expansion of China in Latin America. In all the countries, from Mexico on south."
According to Schell, China is just getting started.
"This is a real tipping point moment, of which the Chinese investments in commodities and extractive resources of Latin America is just the opening bell," he said. "Who's got the money? And it's not the United States any longer. It's China. This is the next great pool of (foreign investment) that the world is going to reckon with in myriad ways."
Potential Longs to Watch This Week...
While the fundamental landscape remains dire, I remind myself that some of the best market movement comes when the hordes are ready to throw in the towel. The March 2009 bottom is a classic example of catching many flat-footed. But instead of relying on the talking heads and pundits to let me know the coast is all clear, I will continue to mine the charts for technically sound patterns that allow great risk/reward. Agnico-Eagle Mines, (AEM), Integrated Silicon Solution (ISSI), KBR Inc (KBR), Korn/Ferry Intl (KFY), and Power-One (PWER) make my short list of potential longs to watch this week. While I will not attempt to time a bounce from these levels, I have no problem going long when the setups present themselves.
Bernanke sees stronger growth in 2nd half of year
Bernanke links slowdown to gas prices and Japan crisis, sees higher growth in 2nd half of year
Tuesday June 7, 2011, 4:25 pm
WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke noted Tuesday that the job market and the economy have weakened in recent weeks. But he said the main reasons are higher gas prices and the Japan crises -- factors that should ease in coming months-- and predicted growth would strengthen later this year.
Bernanke made no mention of any new steps the Fed might take to boost the economy. The Fed's $600 billion Treasury bond-buying program is ending this month. The program was intended to keep interest rates low to strengthen the economy. But critics said it raised the risk of high inflation.
The Fed chairman said the economy still needs the benefit of low interest rates.
Stocks fell after Bernanke began speaking. The Dow Jones industrial average erased gains made earlier in the day and close down for the fifth straight day, as did broader indexes.
Bernanke noted the May jobs report released last week was disappointing. It showed the unemployment rate rose to 9.1 percent and the economy added just 54,000 jobs, the fewest in eight months. But he said he expected job creation and overall economic growth would rebound in coming months.
"Overall, the economic recovery appears to be continuing at a moderate pace, albeit at a rate that is both uneven across sectors and frustratingly slow from the perspective of millions of unemployed and underemployed workers," Bernanke said in his remarks to an international banking conference in Atlanta.
Bernanke said the central bank would not consider the recovery to be well established "until we see a sustained period of stronger job creation."
He repeated a pledge that central bank officials have been making for more than two years: that they will keep interest rates at record lows "for an extended period."
Bernanke said that consumer inflation has jumped 3.5 percent in the six months ending in April -- well above the average of less than 1 percent over the preceding two years. But he noted that most of the increase has been caused by higher gas prices, which have been creeping down in recent weeks. Excluding food and energy, inflation has been tame, he noted.
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::) and if you believe anything Bernanke sees , says or does...Then I got some Ocean Front Property I can sell you real cheap located in Colorado! ::)
SEC suspends trading of 17 penny stocks
SEC suspends trading in 17 penny stocks for 2 weeks as part of efforts to prevent fraud
June 7, 2011, 2:02 pm EDT
WASHINGTON (AP) -- The Securities and Exchange Commission on Tuesday suspended trading for two weeks in 17 small stocks in a move it said was part of its efforts to prevent fraud in thinly traded stocks.
The 17 companies are "microcap," or penny stocks that trade over the counter rather than on a major exchange. The SEC said there were questions about the adequacy and accuracy of information the companies have publicly reported.
The trading suspensions run from 9:30 a.m. EDT Tuesday to 11:59 p.m. EDT on June 20.
Stock promoters can sometimes conduct fraud schemes by taking large positions in thinly traded stocks and artificially inflating their price by touting them.
The SEC said the suspensions arose from a joint effort conducted by several regional offices, the agency's office of market intelligence and its new microcap fraud working group. The microcap fraud working group is targeting stock promoters as well as brokers, attorneys, auditors and others who work with them, SEC Enforcement Director Robert Khuzami said in a statement.
The companies are American Pacific Rim Commerce Group (APRM), based in Citra, Fla.; Anywhere MD Inc. (ANWM), Altascadero, Calif.; Calypso Wireless Inc. (CLYW), Houston; Cascadia Investments Inc. (CDIV), Tacoma, Wash.; CytoGenix Inc. (CYGX), Houston; Emerging Healthcare Solutions Inc. (EHSI), Houston; Evolution Solar Corp. (EVSO), The Woodlands, Texas; Global Resource Corp. (GBRC), Morrisville, N.C.; Go Solar USA Inc. (GSLO), New Orleans; Kore Nutrition Inc. (KORE), Henderson, Nev.; Laidlaw Energy Group Inc. (LLEG), New York; Mind Technologies Inc. (METK), Cardiff, Calif.; Montvale Technologies Inc. (IVVI), Montvale, N.J.; MSGI Security Solutions Inc. (MSGI), New York; Prime Star Group Inc. (PSGI), Las Vegas, Nev.; Solar Park Initiatives Inc. (SOPV), Ponte Verde Beach, Fla.; and United States Oil & Gas Corp. (USOG), Austin, Texas.
Last week the SEC imposed a similar suspension against Uniontown Energy Inc. (UTOG), based in Henderson, Nev., and Vancouver, Canada.
5 Cancer Treatment Companies For Your Watch List...
June 16, 2011
Cancer treatment is an ever-evolving business, with many potential breakthroughs and blockbusters being developed by small companies on any given day. Shareholders who are hoping to tag along as part of either an historical FDA approval or an historical share price run are always on the lookout for the next big 'mover and shaker'.
Here are five companies in the cancer sector that shouldn't be overlooked:
Immunocellular Therapeutics (IMUC.OB) - Shares of this company may very well be trading under the radar, even after having tripled in price during the past year on positive pipeline news. On light volume, shares dipped below the $1.90 mark on Tuesday, leaving the company with a market cap of $55 million. That cap is worth making note of, given the potential of the Immunocellular pipeline of immunotherapeutic cancer treatments.
The technology behind the IMUC pipeline takes the science behind Dendreon's (DNDN) Provenge a step further.
By targeting the stem cells that lead to the spreading of a patient's cancer, Immunocellular may very well be priming itself to usher in the new age of cancer treatment. The most advanced product, ICT-107, has thus far been proven to be highly effective in treating glioblastoma, and was recently featured on a CBS News broadcast in New York City.
It's expected that the company will look to be listed on a major exchange at some point in the near future, where it may draw more attention as a potential big player in the cancer immunotherapy market with a pipeline being readied to treat multiple cancer types. Keep an eye on this one.
Antigenics Inc. (AGEN) - A recent makeover left the former Antigenics and lead product Oncophage known as Agenus and Prophage, respectively. Prophage is being investigated in Phase II trials for the treatment of glioma. Three years ago this company was the first to have an immunotherapeutic cancer vaccine approved, when Russia approved Oncophage for use against kidney cancer in Russia. That approval never materialized into sales and a denial in Europe sent shares of AGEN spiraling down from its highs to level where it now trades, for under a buck.
After a long lull in relevant news, AGEN has again been making headlines.
Early results from the Phase II glioma trial indicate that those treated with Prophage are demonstrating increased overall survival, which is now the golden standard for cancer immunotherapy trials ever since Dendreon made that the goal of the Provenge Phase III.
In addition to the positive Prophage news, it was announced this week that AGEN's vaccine adjuvant, QS-21 Stimulon, was the subject of a licensing agreement with Integrated BioTherapeutics Inc. (IBT) for use in the development of a vaccine against Ebola and Marburg viruses. Per the agreement, Agenus will receive a licensing fee, potential milestone payments, and a royalty on sales of the product, should it be approved.
QS-21 is currently being used in 15 developmental vaccines and gives AGEN a potential revenue stream outside of Prophage.
While shares jumped modestly on the Stimulon news, they're still down on the year.
Dendreon (DNDN) - There's no doubt that Dendreon is already a huge winner as having received the first FDA approval for a cancer vaccine with Provenge last year, but that doesn't mean that all the gains in share price have been had; there's still more to come from this soon-to-be powerhouse.
DNDN has dipped to below the forty dollar mark as the market as a whole has pulled back recently, but the third and fourth quarters are when the company expects to ramp-up production enough to start making a dent in the large backlog of demand for Provenge.
The FDA approved additional manufacturing stations in Dendreon's New Jersey facility earlier this year, and it's expected that work station approval at the Los Angeles manufacturing facility will be announced at the end of this month, with approval at the Atlanta facility following shortly thereafter.
It's still very much a Golden Age for Dendreon, now the grand-daddy of cancer immunotherapy companies, but the share price gains are probably not over.
As the work-station and full-site manufacturing facilities come on-line later in the year - assuming FDA approval - the DNDN train might start chugging forward once again.
CytRx Corporation (CYTR) - Already a stock to watch due to a solid pipeline of cancer treating products, CytRx Corporation issued a Monday morning press release announcing positive preliminary results from its ongoing ENABLE Phase 2 proof-of-concept trial for bafetinib in the treatment of relapsed or refractory B-cell chronic lymphocytic leukemia (B-CLL).
According to Monday's PR, bafetinib has so far proven to be "clinically active" in patients who have failed to respond to previous treatments, an encouraging indicator that only strengthens the future potential of this company and its treatments.
Eleven of the sixteen patients enrolled were eligible for preliminary evaluation, with a total of thirty patients expected to be enrolled in in the trial.
Due to the positive preliminary results and low instances of adverse effects, future patients enrolled in the trial will receive a higher dosage, which effectively increases the chances of even greater results as the trial progresses.
CytRx CEO Steven A. Kriegsman, commenting on this important milestone for the company, stated that
"These favorable initial Phase 2 clinical trial results of bafetinib's activity and safety mark an important step in our goal to become a leading oncology therapeutics company. Further, we were able to obtain these results quickly after initiating enrollment in this clinical trial, validating our strategy to rapidly and cost-effectively conduct proof-of-concept trials in patients with advanced-stage cancers prior to moving into larger clinical trials."
In addition to the positive developments on the pipeline front, it's also encouraging for investors that management has, thus far, followed through on its plans and promises. While marching forward with the aforementioned strategy of conducting cost-effective proof-of-concept trials before moving into more widespread trials, the company has also been very successful at finding non-dilutive conditions of financing.
CYTR issued a press release last month announcing the sale of the worldwide rights for its molecular chaperone assets to the privately-held Orphazyme ApS, based in Copenhagen, Denmark. This deal, should all milestones be met, could be worth up to $120 million to the company, in addition to the royalties on sales that CytRx would receive should Orphazyme bring any products utilizing the technology to market.
Management also banked $17 million for the company through the sale of RXII stock and CytRx also received 163,000 shares of ANX in exchange for its 19.1% stake in SynthRx. Bafetinib, in addition to the ongoing ENCORE trial, is also being investigated for use in treating prostate and brain cancers. Should these encouraging results continue as the products move into Phase III, then CYTR shares would have some room to appreciate in value fairly significantly.
Given the positive developments from the pipeline and pattern of non-dilutive financing, it's well worth keeping an eye on this company.
Keryx Pharmaceuticals (KERX) - makes the list for its experimental Perifisone treatment, which is currently engaged in Phase III trials as an anti-cancer agent. The company also has Zerenex in Phase III for the treatment of kidney disease.
Both products have been successful thus far in trials, and although still trading off its 52-week highs, KERX is demonstration of the leaps-and-bounds a company's stock can make as it shifts from Phase II to Phase III trials.
It wasn't that long ago when KERX, then a 'Phase II' company, was trading for right around a dollar before trial results started rolling in. Those results were positive, Phase III trials were initiated fairly quickly, and now we're looking at a five dollar stock.
Shares have dipped below that mark recently, but another move higher could be in order during the lead-in to Phase III results. Already a big winner, there might be more to come from KERX.
Cancer Vaccines and Oncothyreon: Flying Higher as Market Sinks...
June 16, 2011
It was only a couple of weeks ago that Oncothyreon (ONTY) made headlines for spiking through the $6 mark on news that the company had initiated the Phase II portion of the Phase I/II for the anti-cancer agent PX-866. Since that time the market has taken a relative dive, with respect given to a Tuesday rebound, but ONTY shares continued trading higher, breaking through the seven dollar and topping out at $7.55 before stalling.
The only recent blip in the ONTY trading scheme came when immediately following a stock offering earlier this year, but the real catalyst that everyone is eyeballing right now revolves around Stimuvax. Partnered with Germany's Merck KGaA (MKGAF.PK), Stimuvax is being tested as an immunotherapeutic treatment for non-small cell lung cancer. Trials are currently winding down, with results expected to be released next year. It's also possible that some interim results will be released later this year, as the data is compiled and finalized for a 2012 release.
Oncothyreon doesn't begin and finish with Stimuvax. The company has put its cancer-fighting technology of kinase inihibitors behind multiple Phase II trials. Indications for which the kinase inhibitors are being tested are glioblastoma, head & neck and colorectal cancers. The rapid rise to a $7 share price -- a three-month double in price -- and $300 million market cap are solid indications that the market is starting to take notice of the potential value of this company and its treatments.
Dendreon (DNDN) is an example of what a successful cancer vaccine can do for a small company, and Oncothyreon looks to follow in those lofty footsteps set by DNDN. More importantly, the stage is being set for a huge breakthrough in the way we treat cancer, in my opinion. Did Dendreon open the floodgates for cancer vaccines? I wouldn't say there will be a "flood" of cancer vaccine approvals any time soon, but Provenge certainly set the standard by being the first to market in the United States.
The patient communities had long been looking for the likes of Provenge and other experimental vaccines to be approved, if only to have an alternative to the vicious side effects that chemotherapy and radiation treatments inflict on a patient's body and immune system. Now it looks like the immunotherapeutic approach to fighting cancer is catching on with the medical community as well.
Oncothyreon, with late-stage trials winding down and a big-named partner, looks to be among the better candidates to follow in the path set by Dendreon. Should the Stimuvax trial results prove to be successful, then expect a huge increase in ONTY share price.
While ONTY may be among the more solid late-stage picks, let's not forget about a couple of mid-stage picks that are looking to make a splash in the field of cancer immunotherapeutic medicine. Immunocellular Therapeutics (IMUC), whose technology targets the cancer stem cells that are thought to lead to cancer growth and spreading, could be the leader of the next generation of cancer vaccine companies.
Its approach to adding to the immunotherapeutic cancer treatments makes Immunotherapeutics a hot stock in a hot sector, and offers hope for patients who are always looking for the next life-saving or life-extending blockbuster. IMUC's technology also allows it to cut the logistics behind administering its new-era treatments, adding significantly more inherent value to its future than even Dendreon.
Cel-Sci Corp. (CVM) is another one that cannot be ignored. CVM's treatment for head and neck cancer, Multikine, is currently involved in a global Phase III trial and has blockbuster written all over it, should the trial come to a successful conclusion.
Watching ONTY shares fly higher in the midst of a market setback just shows the strength that could be had by a good cancer stock with products in mid-to-late stage trials, regardless of market conditions. Other cancer stocks to keep an eye on are Keryx Pharmaceuticals (KERX) (perifisone), CytRx (CYTR) (bafetinib + others), Agenus (AGEN) (Prophage) and Biovest International (BVTI) (BiovaxID).
Watch this sector; when one runs, there's always the possibility of a "sympathy run" for others in the sector as well.
Stocks end another week lower on Europe worries
Stocks fall on weak tech results and new concerns about European banks
Friday June 24, 2011
If weak financial results from big tech companies are a sign of what's to come, stock indexes are in for a tough summer.
Stocks fell Friday, giving the market another losing week, after poor earnings reports from two major technology companies suggested that companies invested less in new technology as the economic recovery slowed.
Fears of a spreading European debt crisis also weighed on markets. Italian bank stocks plunged and trading in some of them was halted after Moody's warned that it might downgrade their credit ratings.
"I think it spooked a lot of people," said Frederick Rizzo, who analyzes European banks for T. Rowe Price. "The markets are really emotional right now."
The Dow Jones industrial average fell 115.42 points, or 1 percent, to 11,934.58. The Standard & Poor's 500 index fell 15.05, or 1.2 percent, to 1,268.45. The Nasdaq composite fell 33.86, or 1.3 percent, to 2,652.89.
The decline erased all of this week's gains for the Dow Jones industrial average and S&P index. The broad stock market has now fallen for seven of the last eight weeks, largely because of concerns that the U.S. economy is slowing and that Europe's debt problems may lead to another financial crisis. The S&P 500 is down 7 percent since it hit a high for the year on April 29.
Technology stocks were broadly lower. Micron Technology Inc. fell 14.5 percent after the company said lower sales of computer chips hurt its earnings, which were far less than analysts had expected. Oracle Corp. fell 4 percent after its sales of computer hardware fell sharply. Cisco Systems Inc. fell 3.5 percent, and Microsoft Corp. lost 1.3 percent.
Government bond prices rose to their highest level of the year as investors favored lower-risk assets. The yield on the 10-year Treasury dipped to 2.86 percent.
The U.S. economy has cooled since late April. Recent reports on housing, employment, manufacturing and retail sales all have been weak. The debt crisis in Greece and fears that China's growth is slowing have also pushed markets lower.
"No one is expecting good news, but if it's worse than expectations, this is really a very shaky market," said Uri Landesman, president of Platinum Partners, a hedge fund.
Landesman expects that the Standard & Poor's 500 index will fall to 1,200 this summer as more companies report second-quarter earnings next month. The last time the S&P 500 crossed that threshold was in December 2010.
Stocks fell despite the fact that the government said the economy grew at a 1.9 percent annual rate in the first quarter, slightly higher than an earlier estimate of 1.8 percent. The figure still indicated very slow growth for a post-recession recovery. Economists expect little improvement in the second quarter, which ends next week.
Still, another government report showed that businesses ordered more machinery, equipment and airplanes in May than in April. Orders of such durable goods increased by 1.9 percent in May after a sharp decline in April.
Two stocks fell for every one that rose on the New York Stock Exchange. Volume was slightly above average at 4.4 billion shares.
QCOM...On Thursday July 21, 2011, 4:55 pm EDT
In earnings news, Qualcomm (Nasdaq: QCOM), the maker of chips for mobile phones, said its fiscal third-quarter profit rose to $1.04 billion, or 61 cents per share, from $767 million, or 47 cents per share, a year earlier. Revenue climbed to $3.62 billion from $2.7 billion. Excluding one-time items, California-based Qualcomm earned 73 cents a share. Analysts were expecting a profit of 71 cents. Qualcomm raised its full-year profit forecast to $3.15-$3.20 a share from $3.05-$3.13 and its revenue outlook to $14.7-$15 billion from $14.1-$14.7 billion. Shares of Qualcomm fell -0.6%.
Futures dip as debt stalemate curbs risk appetite...
On Wednesday July 27, 2011, 8:11 am
NEW YORK (Reuters) - Stocks were slightly lower on Wednesday as concerns over a possible debt default by the United States continued to weigh on investor sentiment.
A Republican plan to cut the U.S. deficit stiff opposition, piling anxiety onto investors and ordinary Americans hoping the government would not default on its debt obligations.
Even if a default is avoided, a plan that flinches from hefty deficit cuts could result in a downgrade of the U.S. government's triple-A rating and raise borrowing costs, dealing a severe blow to the economic recovery.
Credit Suisse strategists see a 50 percent chance of a credit ratings downgrade on U.S. debt, even if the ceiling is raised as key decisions on fiscal tightening are delayed until after the 2012 elections.
"The market is poised to move higher, considering how the earnings have been coming in, but investors are being held back from risk (trade) because of all these headlines out of Washington," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.
S&P 500 futures fell 2.9 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures were down 7 points, and Nasdaq 100 futures dipped 6.5 points.
Financial stocks were in focus after European banks such as Societe General (Paris:SOGN.PA - News) and Banco Santander (MCE:SAN.MC - News) fell after a downgrade by Goldman Sachs. The brokerage cut the banks to "neutral" from "overweight", saying doubts over a Greece rescue package have started to emerge.
Gold prices hit another record high at more than $1,623 an ounce, while the cost of insuring U.S. debt against a default in the next year hit a new high, according to data monitor Markit.
Dunkin' Brands Group Inc (Nasdaq:DNKN - News) has raised $422.75 million after pricing its IPO at $19 per share, well above the range set by underwriters.
Amazon.com Inc (NasdaqGS:AMZN - News) reported a surge in quarterly revenue late Tuesday, but profits slipped as the largest Internet retailer kept spending on distribution, technology and digital content. The stock was up 6 percent at $227.00 in premarket trade.
Boeing Co (NYSE:BA - News) shares rose 2.5 percent to $71.91 after the company reported quarterly results.
Dow Chemical Co (NYSE:DOW - News) shares were up 3.2 percent at $37.00 after the company said profit rose about 74 percent.
WellPoint Inc (NYSE:WLP - News) reported better-than-expected results, but its shares fell 3.9 percent to $70.70 after the company warned that costs for its Medicare plans for seniors were higher.
On the macroeconomic front, the market waited for June durable goods orders. Economists in a Reuters survey saw a rise in orders of 0.3 percent versus a 2.1 percent increase in May.
The stalemate in U.S. debt talks dragged down stocks for a second day on Tuesday, and light volume indicated that investors were reluctant to make bets despite another round of healthy earnings.
How a U.S. Debt Downgrade May Affect Consumers...
This is not yet one of those stuff-your-money-in-a-mattress moments.
Still, the talk in Washington of a federal budget crisis and possible default has given rise to all sorts of consumer fears of doomsday scenarios. Missed Social Security payments. Spikes in interest rates. Draconian cuts in government services.
But the most likely outcome, experts said in interviews this week, is that the nation's credit rating will be downgraded a notch. And if that turns out to be the case, investors and borrowers should be able to ride out any volatility.
Over the last few days, financial advisers have tried to allay investor fears by sending notes to clients with the same message they have delivered in past periods of market uncertainty: As long as you're diversified across different investments, the best action, in this case, is inaction.
The financial markets may become more volatile in the near-term, they say. And interest rates on several types of consumer loans will probably tick modestly higher because the rates track government-issued debt. But a credit downgrade is unlikely to cause a major shock to the system.
That said, the only investment that did not plunge in the 2008 market crisis was Treasuries, and they could conceivably lose some of their luster. "Sometimes I worry that a U.S. debt downgrade could have long-term negative psychological consequences as Americans realize the greatest power on earth is, alas, a mere mortal too," said Milo Benningfield, a certified financial planner in San Francisco. But "we're still looking pretty good relative to most everyone else in the world."
That does not mean there will not be a wide ripple effect, at least in the short term. The magnitude of the deficit reductions and their effect on the broader economy are another wild card. But in the near term, here's what investors and consumers can expect, and some advice from experts.
STOCKS AND BOND INVESTMENTS Both the stock and bond markets are expected to endure a period of volatility if the nation's debt drops a notch from its AAA perch. "Once a plan is in place, we would expect the markets to return to normal, and for investors to focus on more fundamental issues like long-term earnings growth and the economic health of countries around the globe," said Gus Sauter, chief investment officer at Vanguard.
"That said, it's simply not possible to gauge precisely how the equity and fixed income markets would react and for how long, so the best course of action is to ignore the headlines and maintain a long-term approach."
That sort of advice might come as cold comfort to people on the cusp of retirement, and for whom the memories of the recent downturn are fresh. That is why many advisers suggest that people who are living off their investments set aside enough cash so that they are not forced to sell investments during a rough patch.
"This is certainly creating a lot of concern, and the games being played in Washington by Congress are increasing the stress," said Diahann Lassus, a financial planner in New Providence, N.J. "Cash reserves are very important for both retirees and pre-retirees." She suggests six months to two years in cash, depending on the investor's age and specific situation.
A downgrade may cause Treasury yields to move modestly higher, which, in turn, may cause corporate, municipal and other bond issues to follow suit. Budget cuts, though, may have a more serious effect, depending on their severity. "If they really make some severe cuts, that is deleterious to the municipal bond space," said Marilyn Cohen, chief executive of Envision Capital Management, which manages bond portfolios. "That means less trickle-down to the states, cities and counties."
But if there are not enough cuts, she said, that could also cause the broader bond market to swoon.
MONEY MARKET FUNDS These funds hold 40 to 45 percent of the shorter-term Treasury debt outstanding, according to Deborah A. Cunningham, chief investment officer for money markets at Federated Investors. But if the nation's debt rating were downgraded, these funds would not be required to sell the Treasuries they hold. In fact, a fund would not be required to sell in the event of a default, either, as long as the fund deems the securities to be safe and able to make their interest payments.
"The money market world asset flow, what comes in and goes out, has been pretty benign," Ms. Cunningham said.
And she said she would not expect a downgrade to change those flows in any significant way. "The debt that is held in money market funds is so short in maturity that a downgrade will just not be an event that causes any kind of pricing concerns. As such, there shouldn't be issues for investors."
HOME LOANS AND CREDIT CARDS Fixed-rate mortgages generally track the 10-year Treasury note, whose interest rates would rise in the event of a downgrade. "The concern behind rates rising comes from the risk that investors — foreign and domestic — would rush to sell U.S. debt," said Cameron Findlay, chief economist at LendingTree.com, noting that a sell-off would push the price of the debt lower, while causing its yield to rise. "So the question then is by what magnitude, and that remains the unanswered element everyone is struggling with."
Shortly after a downgrade, he said he would expect interest rates to spike a bit, though he said he did not expect rates on fixed-rate mortgages to rise more than half a percentage point to a full percentage point, at most. Nor did he expect a rise in rates to affect the pace of lending. After all, stricter credit standards are making lending difficult.
But once the federal debt issue is resolved, he said he expected mortgage rates to fall back to the range they are in now. Rates on a 30-year fixed mortgage averaged 4.52 percent for the week ending July 21, according to Freddie Mac. Though adjustable-rate mortgages typically do not track the 10-year Treasury note, experts said those rates could still move modestly higher.
Home equity lines of credit, meanwhile, track the prime rate, which is generally pegged to the federal funds rate. "Do we expect that to increase any time soon?" he asked. "We don't. But if the risk of inflation increases, then, of course, the risk is that you will see that index start to increase."
Credit cards are also pegged to the prime rate, so any increase in interest rates is more likely to be a result of broader economic factors or a decision by lenders to increase their profit margins. But as Greg McBride, a senior financial analyst at Bankrate.com, said, lenders must give borrowers at least 45 days' notice before raising their interest rate, and that can be applied only to new balances.
STUDENT LOANS The interest rates on most private student loans are pegged to the London Interbank Offered Rate, or Libor, which is influenced by Treasury yields. So if the yields on government securities rise, student loan rates could rise as well, said Mark Kantrowitz, publisher of the FinAid and Fastweb Web sites. Borrowers taking out new loans, however, might see a greater increase in costs because of activity in the securities market backed by student loans.
Federal student loans are made by the government, which sells Treasuries to raise money to finance them. The government profits on the interest from the loans. If the government's cost of borrowing rose, the government's profit would decrease. But for now, since the interest rates are fixed, students would not necessarily see their costs rise unless Congress passed legislation to raise rates, he said. And then, the higher rates could apply only to new loans, he added.
The deficit reduction plan, which is likely to cut education spending, could have a broader effect on student lending. Some proposals, for instance, would cut subsidized interest on loans to graduate and professional students.
Experts also recommended contacting local representatives in Congress. "Let your Congressional leaders know you are paying attention by writing, e-mailing or calling them," Ms. Lassus, the financial planner, said.
Stock fall as lawmakers remain at odds over debt
Stocks fall as House Speaker Boehner postpones debt limit vote; durable goods orders slip
Wednesday July 27, 2011, 10:28 am
NEW YORK (AP) -- Stocks fell Wednesday as lawmakers remained at odds over how to avoid a debt default. A weak report on orders for manufactured goods also weighed on stocks.
House Speaker John Boehner had planned to hold a vote on his debt-limit plan on Wednesday. But that was postponed after conservative lawmakers scoffed at the proposal and congressional budget officials said it would have cut spending less than advertised. The White House had also threatened to veto Boehner's plan.
The stalemate has put financial markets on edge. If an agreement is not reached by Aug. 2, the U.S. may not have enough cash to pay all its bills and could default. If that happens, the U.S. would likely lose its triple-A credit rating, pushing up interest rates on mortgages and other kinds of loans. Stocks could also plunge.
Most investors still expect some kind of resolution in the coming days. But the uncertainty over possible changes to tax rates or government spending has made investors nervous, said Todd Salamone, senior vice president of research at Schaeffer's Investment Research. "Investors just want a lot of clarity," he said.
The Dow Jones industrial average fell 128 points, or 1 percent, to 12,374 in early trading. The Dow is headed for its fourth day of losses.
The Standard & Poor's 500 fell 19, or 1.4 percent, to 1,312. The Nasdaq composite index fell 59, or 2.1 percent, to 2,781.
The government said that orders for durable goods fell 2.1 percent in June because of a drop in orders for commercial aircraft, automobiles and heavy machinery. Manufacturing has been disrupted this year by parts shortages from Japan and higher energy prices.
Earnings results were mixed. Amazon.com Inc. rose 5.5 percent, the most of any company in the S&P 500, after the online retailer reported that its earnings and revenue were far higher than analysts were expecting.
Boeing Co. rose 3.1 percent after the company raised its earnings forecast for the year, even as it said it will not deliver as many of its new 787 and 747-8 long-haul planes this year.
Juniper Networks Inc. plunged 20 percent, the most of any company in the S&P 500, after the computer networking equipment maker issued an earnings forecast for the third quarter that was lower than many analysts expected. Computer networking equipment companies, including Cisco Systems Inc., have struggled this year because many Internet providers spent heavily on their products in 2010. As a result, they don't need as much new equipment now. Cisco fell 3 percent, while equipment maker JDS Uniphase Corp. fell 5.6 percent.
Delta Air Lines Inc. fell 6 percent. The airline's earnings were lower than analysts had anticipated because of higher jet fuel expenses and costs related to voluntary buyouts for 2,000 workers.
Precious metals continued to climb as investors looked for relatively safe places to park money. Gold rose $8.10 an ounce to $1,624.90. Silver edged up about 50 cents to $41.22 an ounce. Gold has risen about 1 percent this week, while silver is up nearly 3 percent.
Analysts: Senate plan saves $2.2 trillion
Budget analysts say Senate Democratic plan cuts deficits by $2.2. trillion, less than promised
Wednesday July 27, 2011, 9:54 am
WASHINGTON (AP) -- Budget analysts said Wednesday that a Senate Democratic plan to reduce the deficit and increase the nation's borrowing authority would save $2.2 trillion over a decade, more than a rival House Republican proposal but less than promised. With both bills stuck in neutral, Congress, financial markets and the public remained on edge days before the deadline for heading off a potentially calamitous default.
The Congressional Budget Office estimated that the plan by Senate Majority Leader Harry Reid, D-Nev., would result in savings of just over $2 trillion, some $500 billion less than Reid had promised. The Senate bill, however, would save more than a House Republican proposal by Speaker John Boehner, R-Ohio.
Nonpartisan congressional scorekeepers said his proposal would cut spending less than advertised, about $850 billion over 10 years, not the $1.2 trillion originally promised. The estimate, coupled with growing opposition from rank-and-file GOP conservatives, forced Boehner to postpone a scheduled vote on the bill to Thursday.
Republican and Democratic congressional leaders are scrambling to come up with an elusive compromise that could win the backing of President Barack Obama. The federal government faces a first-ever default absent a plan by Aug. 2, just six days away.
The CBO analysis of the Senate plan estimated that it would save $840 billion in non-war spending by government agencies. The analysis said it would reduce the government's interest payments by $375 billion over a decade. The bulk of the reductions would come from projected savings of $1 trillion from winding down wars in Iraq and Afghanistan.
Despite the stalled measures -- and angry partisan rhetoric -- the differences between the sides are narrowing, not widening. Boehner's plan represents significant movement from a bill the House passed last week, roughly half of its mandated spending cuts, for example. And Reid no longer is insisting on having tax increases as part of any plan to cut deficits.
Boehner needs to do more than pump up the legislation. He needs to shore up his standing with tea party-backed conservatives demanding deeper spending cuts to accompany an almost $1 trillion increase in the government's borrowing cap. Many conservatives already had promised to oppose it.
"We need more drastic cuts," said Rep. Jason Chaffetz, R-Utah. "I can't support it in its current form."
"I'm searching for a path toward yes but having a difficult time finding it," said Rep Bill Huizenga, R-Mich.
Unless he can wrestle the situation under control, Boehner risks losing leverage in his dealing with President Barack Obama and Democrats controlling the Senate.
Boehner's plan was not winning converts among some stalwart conservatives. It prompted Reid to declare that the bill was destined to fail in the Senate and it drew a White House veto threat. But it was framing the debate over how to reduce long-term deficits while raising the debt ceiling.
Tuesday's Congressional Budget Office analysis said the GOP measure would cut the deficit by about $850 billion over 10 years, not the $1.2 trillion originally promised. Even more embarrassing was a CBO finding that the measure, which would provide a $900 billion increase in the nation's borrowing cap, would generate just a $1 billion deficit cut over the coming year.
Boehner's plan would couple budget savings gleaned from 10 years of curbs on agency budgets with a two-track plan for increasing the government's borrowing cap by up to $2.7 trillion. The first increase of $900 billion would take effect immediately; the second increase could be awarded only after the recommendations of a special bipartisan congressional panel are enacted into law.
The White House says Boehner's measure would reopen the delicate and crucial debt discussions to unending political pressure during next year's campaigns and risk more uncertainty in the markets.
The White House promised to veto Boehner's measure if it were to reach Obama's desk.
It's unlikely to come to that. Reid, D-Nev., promised the measure would never make it through the Democratic-controlled Senate.
Reid held back on forcing a vote on his competing measure, which he unveiled Monday to poor reviews from Republicans like Senate Minority Leader Mitch McConnell of Kentucky. Reid appears to hope that his measure, which promises $2.7 trillion in spending cuts and would increase the debt limit enough to keep the government afloat past the 2012 elections, could emerge as the last viable option standing and could be modified with input from Republicans.
Those same Republicans blasted Reid's bill for $1 trillion in war-related savings they say are phony. But McConnell is emerging as a key figure in the endgame, and he sounded a conciliatory note in an appearance Tuesday.
"We need to get an outcome. And to get an outcome, a Republican House, a Democratic Senate and a Democratic president would have to reach an agreement," McConnell said. "So I'm prepared to accept something less than perfect, because perfect is not achievable."
One area of potential compromise could be how to treat the findings of a bipartisan congressional commission to identify further deficit reductions, especially in major health care programs such as Medicare and Medicaid. Both Reid and Boehner support the idea, though Boehner wants to make a future increase in the debt limit contingent on the proposed additional cuts being enacted into law.
Meanwhile, the clock was ticking down to next Tuesday's deadline to continue the government's borrowing powers and avert possible defaults on U.S. loans and obligations, like $23 billion worth of Social Security payments due Aug. 3. The Capitol's telephones were jammed after Obama urged the public to contact their representatives in his Monday night address.
Conservative bloggers and groups like the Club for Growth, which funds primary campaigns against Republicans it deems too squishy in their conservatism, denounced Boehner's bill as too weak. The U.S. Chamber of Commerce, closer to the GOP mainstream, urged support.
While Boehner searched for votes, some Americans seemed to edge closer to the notion that the Aug. 2 deadline might pass without a solution. The stock market fell again, although not dramatically. California planned to borrow about $5 billion from private investors as a hedge against a possible federal government default.
The White House spoke with veterans groups about what might happen to their benefits if a deal isn't reached. Obama has said he can't guarantee Social Security checks and payments to veterans and the disabled would go out on schedule.
Freshman Rep. Trey Gowdy, R-S.C., bristled at the idea that tea party-influenced newcomers are sheep-like ideologues willing to risk default.
"We're not a bunch of knuckle-dragging, mouth-breathing Neanderthals," Gowdy said. "We're interested in answering what we perceive to be the mandate, which is to stop the spending and change the way Washington handles money."
What's Wrong With America's Job Engine?
Wednesday, July 27, 2011
provided by
THE WALL STREET JOURNAL
Wary Companies Rely on Temps, Part-Timers, Hire Overseas
Over the past 10 years:
• The U.S. economy's output of goods and services has expanded 19%.
• Nonfinancial corporate profits have risen 85%.
• The labor force has grown by 10.1 million.
• But the number of private-sector jobs has fallen by nearly two million.
• And the percentage of American adults at work has dropped to 58.2%, a low not seen since 1983.
What's wrong with the American job engine? As United Technologies Corp. (NYSE: UTX - News) Chief Financial Officer Greg Hayes put it recently: "Sales have come back, but people have not.''
That's largely because the economy is growing much too slowly to absorb the available work force, and industries that usually hire early in a recovery—construction and small businesses—were crippled by the credit bust.
[More from WSJ.com: CEOs Say Don't Expect Much Hiring]
Then there's the confidence factor. If employers were sure they could sell more, they would hire more. If they were less uncertain about everything from the durability of the recovery to the details of regulation, they would be more inclined to step up their hiring.
Something else is going on, too, a phenomenon that predates the recession and has persisted through it: Changes in the way the job market works and how employers view labor.
Executives call it "structural cost reduction" or "flexibility." Northwestern University economist Robert Gordon calls it the rise of "the disposable worker," shorthand for a push by businesses to cut labor costs wherever they can, to an almost unprecedented degree.
Looking back at the percentage of Americans with jobs in the 1990s (rising) and the 2000s (falling), Princeton University economist Alan Krueger estimates that 70% of today's job shortage is simply cyclical, the result of a disappointing recovery from a deep recession. But he attributes 30% to changes in the job market that began a decade or more ago.
Consider these clues:
In the most recent recession and the previous two—in 1990-91 and 2001—employers were quicker to lay off workers and cut their hours than in previous downturns. Many also were slower to rehire. As a result, the "jobless recovery" has become the norm.
[More from WSJ.com: McDonald's Adds Apples to Kids Meals]
In the past, when business slumped, employers cut work forces and accepted less work per employee. During the deep recession of the early 1970s, the output of goods and services in the U.S. fell by 5% and employment by 2.5%. Economists puzzled over "labor hoarding," or the tendency of companies to hold on to unneeded workers.
No one talks about that any longer. Between the end of 2007 (when American employment peaked) and the end of 2009 (when it touched bottom), the U.S. economy's output of goods and services fell by 4.5%, but the number of workers fell by a much sharper 8.3%. Today's puzzle: How and why employers managed to boost productivity, or output per hour of work, like never before during the worst recession in decades?
In an earlier era, when more Americans worked on assembly lines, many layoffs were temporary. When business bounced back, workers were recalled, often because of union-contract guarantees.
At the worst of the 1980-82 recession, 1 in 5 of the unemployed were "temporary layoffs." In the recent recession, the proportion of temporary layoffs never exceeded 1 in 10. In part that's because fewer Americans work in factories, where production can be stopped and restarted; if a restaurant doesn't have enough customers, it goes out of business.
"When layoffs are temporary, subsequent recalls can take place quickly," say economists Erica Groshen and Simon Potter of the Federal Reserve Bank of New York. When layoffs are permanent, job recovery is slower, they say. If the employer wants to hire, there's the time-consuming chore of sifting through applications.
[More from WSJ.com: Post-Office Closure List Sent]
Corporate employers, their eyes firmly fixed on stock prices and the bottom line, prize flexibility over stability more than ever. The recession showed them they could do more with fewer workers than many of them previously realized.
In a survey of 2,000 companies earlier this year, McKinsey Global Institute, the think tank arm of the big consulting firm, found 58% of employers expect to have more part-time, temporary or contract workers over the next five years and 21.5% more "outsourced or offshored" workers.
"Technology," McKinsey says, "makes it possible for companies to manage labor as a variable input. Using new resource-scheduling systems, they can staff workers only when needed—for a full day or a few hours."
Temporary-help agencies are playing an ever-larger role—from providing clerical and factory workers to nurses and engineers.
Black & Veatch, a Kansas City, Mo., engineering firm, which shrank from 9,600 employees before the recession to about 8,700 today, is hiring about 100 workers a month. About 10% of its workers are temps, says Jim Lewis, the firm's human-resources chief. "That's a quick way to bring people in, and gives you a little time to see if growth is going to hold or not," he says.
It also makes it easier to cut back in tough times. Workers, in short, now can be hired "just in time." And many employers apparently don't think it's time yet. Because they can hire temps almost instantly, there's little need to hire in anticipation of a pickup in business.
When they do hire, big U.S.-based multinational companies are more able and more willing to hire overseas, both because wages are often cheaper there and because that's where the customers are.
In the 1990s, those multinationals added nearly two jobs in the U.S. for every new job overseas; in the 2000s, they cut their U.S. work forces by 2.9 million and increased them abroad by 2.4 million, according to the Commerce Department.
Hal Sirkin of Boston Consulting Group says rising wages in China are dulling its edge as a low-wage nirvana. In 2000, wages of Chinese production workers averaged 3% of what their American counterparts made. Today, they are at 9%. BCG expects the figure to reach 17% by 2015. Mr. Sirkin predicts that will prompt some manufacturers to move jobs back to the U.S.
How many? He is still working on an estimate. But one thing is clear, though, "These are $15-an-hour jobs," he says, "not $30-an-hour jobs."
Even though the government counts 4.68 unemployed workers for every job opening, some employers insist they can't find workers with the skills they need at wages they can afford.
Federal Reserve surveys of local economies find employers from Boston to Kansas City to San Francisco reporting difficulty in hiring workers "with specialized technical skills, particularly in the health-care and technology sectors."
But workers without college degrees find well-paying jobs scarce in the modern U.S. economy. The Bureau of Labor Statistics says there are 25.3 million Americans over age 25 without high-school diplomas: Only 9.8 million, or less than 40% of them, were working in June. About 1.6 million said they were looking for work; the rest weren't even looking.
S&P, Moody's U.S. downgrade irrelevant
S&P, Moody's Irrelevant on Treasurys
Wednesday, July 27, 2011
What ratings firms say about Treasurys matters less than many suppose.
To hear politicians, the fate of modern finance is now being decided by perhaps a dozen Manhattan bond geeks. Their job at Standard & Poor's and Moody's is to paste letter grades on governments so bond buyers can decide which are good for the money. Even America's president fears them. "A six-month extension of the debt ceiling might not be enough to avoid a credit downgrade," he warned the nation in an address Monday night, having already listed some of the consequences: "Interest rates would skyrocket on credit cards, on mortgages and on car loans."
Given that Treasury bonds have historically served as a benchmark against which the safety of other investments is judged, the spillover effects would be "extremely damaging" for the world economy, a senior advisor for the International Monetary Fund said this week.
Someone forgot to tell the investors who stake actual money in Treasury bonds, however. The closely watched 10-year Treasury has gained since the beginning of the year, dropping its yield from 3.4% to 3.0%. That means interest rates on the things the president mentioned aren't expected to "skyrocket" soon—not even if the rocket he had in mind is only one of those backyard balsa-wood-and-gunpowder fliers.
Maybe financial markets are waiting for the actual downgrades. But that would contradict an investment law as basic as gravity: Markets are forward-looking. At any given moment, they anticipate information that's known or even suspected. S&P announced a negative outlook on the U.S. (warning of a possible downgrade) in April, and Moody's announced something similar earlier this month. By now, anything that would have happened has happened.
It's not that investors doubt the judgment of raters, although the latter have attracted plenty of jeers in recent years, partly because their pay-me-to-rate-you business models are inherently awkward, and partly because they have missed some colossal collapses. Enron had an investment-grade credit rating four days before it went bankrupt. During the recent housing bust, mortgage securities that were sold as Parmigiano-Reggiano turned out to be a notch below Cheez Whiz. That has led some outside analysts to mutiny. In December, Meredith Whitney, who made her name covering banks, told CBS's "60 Minutes" that 50 to 100 "sizeable" municipalities could default on amounts totaling "hundreds of billions of dollars," directly contradicting the ratings agencies, who expect that municipal defaults will be isolated and manageable.
So far, the ratings agencies have been right on municipalities. I suspect that they've taken recent criticism to heart and are working hard to produce good research. And in fairness, creditworthiness is a complicated thing to judge, depending as it does on human behavior, and the agencies get plenty of calls right. If they say the U.S. is bucking for a downgrade, I'll take their word for it. I'm unfashionably bullish on America, but I'm not sure anything deserves a perfect credit rating, least of all something that can make its own money.
But I also think the opinions of S&P and Moody's (and Fitch, which says it will decide its opinion of the U.S. in August) are irrelevant when it comes to Treasurys. These firms add value by tracking a universe of bond issuers too vast for most investors to watch. Their opinions on Ford Motor or the city of Rochester, N.Y., matter greatly to bond buyers.
The world doesn't need help analyzing Treasurys, though. No entity in the world is more closely watched than the United States government, not even Lady Gaga. And none publishes more and better information on its financial condition. The sort of investors who decide Treasury prices—foreign governments, giant mutual funds, the Social Security Trust Fund—don't wait for S&P or Moody's to tell them whether to buy. They do the math themselves.
They also have limited choices. In a recent report for Wells Fargo Securities, economist Jay Bryson writes that investors aren't likely to dump Treasurys, simply because Europe has no unified debt security and most Asian capital markets are small and illiquid, save for that of Japan, which is in worse shape than the U.S. What about the fear that large investment funds, bound by prospectus to buy only AAA-rated bonds, would be forced to sell? Bryson calls this "overblown" for two reasons. Mutual funds hold just 7% of Treasurys. Also, Bryson's team reviewed prospectuses for the largest ones and found no such mandate.
So fear the debt and the deficit a little and political intransigence a lot, but don't fear the alphabetical Armageddon of a dozen researchers swapping their As for Bs. I'm guessing about the number, by the way. None of the agencies would tell me how many analysts decide their U.S. rating or even how much of the decision is based on perceptions rather than numbers. A document provided by Fitch says its minimum committee size is generally four analysts including one "senior director," and that those average six to seven years of tenure. That's comforting. If I'm wrong, I'd hate for the world's financial system to be brought down by new hires.
Coalition calls for end to oil and gas tax breaks
Coalition releases study on cost of oil and gas subsidies to taxpayers, rallies in Albuquerque
Wednesday July 27, 2011, 1:49 pm
ALBUQUERQUE, N.M. (AP) -- Watchdog groups are calling on Congress to end tax breaks for the oil and natural gas industry.
Taxpayers for Common Sense, the Checks and Balances Project and others planned to rally Wednesday outside the Internal Revenue Service building in Albuquerque, N.M.
The groups have released a study showing that the subsidies cost New Mexicans $104 million a year.
The report also outlines political campaign contributions from the industry to New Mexico's congressional delegation.
Defenders of New Mexico's oil and gas industry say it's a major source of revenue for the state.
According to the New Mexico Oil and Gas Association, the industry paid more than $1.5 billion in taxes, fees and royalties to the state during the 2010 fiscal year. It also paid an additional $141 million in local taxes.
Fed survey: Growth slows across much of the US
Fed survey: Growth slows in nearly half the US, due to weakness in housing and manufacturing
Wednesday July 27, 2011, 2:06 pm
WASHINGTON (AP) -- The economy worsened in about half the country earlier this summer because of weak home sales and signs of a slowdown in manufacturing.
A Federal Reserve survey says seven of the Fed's 12 bank regions reported slower growth in June and early July compared with the spring. That's a worse showing than in the previous survey.
Of the remaining five districts, four reported modest growth. A fifth, the Minneapolis district, said its economy was disrupted by bad weather and the shutdown of Minnesota's state government.
The job market remained weak in most districts, the report said. Employers added few jobs in June, the government said earlier this month.
Stocks to Watch: SodaStream, Gap, Akamai and More...
Thursday, 28 Jul 2011
Stocks were narrowly mixed Thursday as investors continued to remain on edge ahead of a key vote on a bill to cut the U.S. deficit in Congress, even after encouraging news that weekly jobless claims fell more than expected.
The Dow Jones Industrial Average opened higher, after skidding nearly 200 points in the previous session.
Here are six stocks that are on the move:
SodaStream
[SODA 70.79 5.74 (+8.82%) ]
The home carbonation system maker's price target raised to $80 from $60 at Oppenheimer.
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Gap
[GPS 19.52 0.56 (+2.95%) ]
The apparel retailer was upgraded to buy from hold at Jefferies.
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Akamai
[AKAM 23.84 -5.64 (-19.13%) ]
The internet services company's second quarter profit narrowly missed expectations.
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Whiting Petroleum
[WLL 55.76 -5.31 (-8.69%) ]
The oil and gas company was downgraded to market perform from outperform at BMO Capital.
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Sketchers USA
[SKX 16.95 2.65 (+18.53%) ]
The footwear retailer was upgraded to buy from hold at BB&T Capital Markets.
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Linn Energy
[LINE 39.78 0.01 (+0.03%) ]
The energy company's quarterly results missed estimates.
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Fed under pressure to act as world markets swoon...
Should read... Obama under pressure to act..."Act like he is a president that knows what the hell he is doing and Lead the country !"...but I know that want happen!!!
A trader works on the floor of the New York Stock Exchange August 4, 2011. REUTERS/Brendan McDermid
On Tuesday August 9, 2011, 9:44 am EDT
By Pedro Nicolaci da Costa
WASHINGTON (Reuters) - Federal Reserve policymakers began meeting on Tuesday under growing pressure to take some type of action to stem a financial market meltdown linked to fears of a new U.S. recession.
Members of the policy-setting Federal Open Market Committee started their meeting at 8 a.m. and are expected to deliver a policy statement around 2:15 p.m..
The Fed's policy toolkit looks rather depleted, making some question the likely effectiveness of any further monetary stimulus.
Still, some analysts think global equity declines and other market disruptions could force it to step up with some kind of intervention to try to calm the situation.
Shortly after the meeting started, the Labor Department said second-quarter productivity slipped at a 0.3 percent annual rate after a revised 0.6 percent fall in the first quarter -- mirroring the slowdown in economic growth in the first half of the year.
On Monday, U.S. stocks continued to slump, with the Dow Jones industrial average ending 5.55 percent lower following Friday's historic downgrade of the U.S. credit rating by Standard & Poor's.
Stock futures were up on Tuesday but trading was expected to remain volatile.
U.S. stocks saw their biggest one day drop since December 1, 2008, during the worst of the financial crisis of that year. Bank shares were severely punished, raising fears of a new market meltdown.
"If the Fed does nothing, it could prove to be a disappointment at this point," said JP Morgan analysts on a conference call to discuss the S&P downgrade.
Some economists argue the Fed is close to out of bullets. Interest rates are effectively zero and the Fed's balance sheet stands at a record $2.9 trillion after an unprecedented program of unconventional monetary easing.
Still, there are a few things the Fed could do to reassure markets, including to suggest it will revise down its growth forecasts -- the first signal that it is leaning toward further policy accommodation.
The central bank might also decide to begin reinvesting proceeds of maturing securities in its portfolio into longer-dated Treasury maturities, putting further downward pressure on long-term borrowing costs. Yet with those rates already at their lowest in over two years, there is a sense that such an effort might prove fruitless.
HOLDING FIRE ON BOND BUYS
Another move the Fed could make, but one that few expect, is another round of bond purchases. These are seen as controversial and only modestly effective, so policymakers will be reluctant to resort to them again.
"(It) depends on how confident the Fed is in their own forecast," said John Silvia, economist at Wells Fargo.
At the moment, it was difficult to imagine that such confidence was very high. In June, the Fed forecast growth of 2.7 percent to 2.9 percent for 2011. But that was before the rate of first-half expansion was revised sharply downward, and the employment picture worsened.
U.S. gross domestic product rose just 0.4 percent in the first quarter, and only 1.3 percent in the second quarter. Meanwhile, the jobless rate continues to hover above 9 percent with no clear hint that it is coming down soon.
Adding to concerns about the financial system, the latest rescue package from the European Central Bank, aimed at putting a floor on selling of Italian and Spanish bonds, was greeted with skepticism among investors.
Fed officials have noted that, while U.S. bank exposure to smaller European nations like Greece and Portugal is relatively minor, there is a certain contagion risk.
Market Overview...
11:30 am : Share volume is robust again this session, suggesting that there is a strong sense of conviction among traders. After months of anemic trading volume on the NYSE, share count on the big board has been bountiful for several consecutive sessions. The surge in participation comes as many retail investors react to the market's volatility.DJ30 +197.99 NASDAQ +74.23 SP500 +27.27 NASDAQ Adv/Vol/Dec 2013/1.20 bln/560 NYSE Adv/Vol/Dec 2666/665 mln/403
11:00 am : The major equity averages are sporting big gains, just shy of their session highs. As things currently stand, the stock market is on pace for its best single-session performance since a 3% surge in September 2010. Of course, this session's surge follows yesterday's 6.7% loss, which marked the worst one-day drop since December 2008.
The drastically improved mood among market participants has caused the Volatility Index (VIX) to drop more than 16% to about 40.0. The VIX, often euphemistically dubbed the Fear Gauge, surged yesterday to 48 for the first time since May 2010.DJ30 +180.52 NASDAQ +67.18 SP500 +25.22 NASDAQ Adv/Vol/Dec 2075/920 mln/479 NYSE Adv/Vol/Dec 2075/515 mln/334
10:35 am : The dollar index has been in negative territory all morning, which has helped provide price support to the commodity complex. The index has recovered modestly off of session lows and is around the 75.51 area. Overall, commodities are showing modest gains.
Crude oil futures have been in a general uptrend since early morning activity and recently moved back into positive territory. Crude hit session highs of $83.05/barrel about 20 minutes before floor trading began, and after its recent move, the energy component is back near that high. Currently, crude is up
Gold futures hit new all-time highs of $1782.40/oz in early morning trade. The precious metal has been in positive territory all session, but has been steadily pulling back since hitting that high. Silver, on the other hand, is showing sharp losses this morning and is by far the worst performing commodity so far today. Silver has been in the red all session and fell as low as $37.62/oz. In current activity, gold is up 1.1% at $1731.90/oz., while silver is down 4.0% at $37.78/oz.DJ30 +227.58 NASDAQ +74.82 SP500 +29.19 NASDAQ Adv/Vol/Dec 2075/846 mln/469 NYSE Adv/Vol/Dec 2673/483 mln/349
10:00 am : Stocks are surging to fresh morning highs. The effort comes after the stock market had its opening advance challenged, but managed to find support just above the neutral line.
Financials continue to lead this morning's climb. The sector is now up 3.7%, which makes it the top performing sector. Utilities are at the opposite end of things; the defensive-oriented sector is up just 0.2%.
Treasuries have actually trimmed some of their losses in the face of the stock market's rally. That has taken the yield on the 10-year Note to 2.37%. DJ30 +200.67 NASDAQ +60.05 SP500 +24.22 NASDAQ Adv/Vol/Dec 1865/250 mln/558 NYSE Adv/Vol/Dec 2328/175 mln/601
09:50 am : Stocks opened today's trade with impressive gains, but the move was quickly challenged by traders looking to sell the bounce. Pressure actually pushed the Dow to a fractional loss in negative territory before it was able to rebound alongside its counterparts.
Financials, which plummeted 10% in the prior session, have actually provided some support to the broad market this morning. The sector's 2.0% bounce comes as bargain hunters offer a bid for banks and diversified financial services plays after their beat down yesterday. DJ30 +93.92 NASDAQ +24.83 SP500 +10.07 NASDAQ Adv/Dec 1479/903 NYSE Adv/Dec 1855/1054
09:15 am : S&P futures vs fair value: +12.80. Nasdaq futures vs fair value: +13.70. Stock futures continue to suggest that the cash market will open with a gain in excess of 1%. Although that may sound strong, it is only modest when compared to the 6.7% drop suffered by the S&P 500 during the prior session's rout. Given that stocks have dropped so sharply in so little time -- almost 17% in 11 sessions -- many bargain hunters are showing a willingness to step in with a bid this morning. Some may even be encouraged by the notion that the FOMC may address the market's recent volatility and rekindled macro concerns when it issues its latest policy statement at 2:15 PM ET. No matter what the committee may say, though, many pundits continue to posit that the Fed is still without any new bullet to aim at the turmoil.
09:05 am : S&P futures vs fair value: +9.80. Nasdaq futures vs fair value: +8.70. Oil prices recently poked into positive territory, but were quick to slip back to a slight loss at $81.05 per barrel in the first few minutes of pit trade. The energy component had actually dropped well below $80 per barrel in overnight trade. Natural gas prices are up a solid 0.5% to $3.955 per MMBtu. Gold prices extended their climb by pushing to a new record high past $1750 per ounce, but the yellow metal has since eased back to $1747 per ounce, where it trades with a 2.0% gain. Silver has been slapped with some aggressive selling, however. The precious metal was last quoted with a 3.6% loss at $37.98 per ounce.
08:35 am : S&P futures vs fair value: +12.20. Nasdaq futures vs fair value: +12.20. Stock futures continue to sport a strong lead over fair value. Second quarter cost and productivity data, which were just posted, haven't really done anything to influence traders, though. Second quarter unit labor costs increased by 2.2%, as had been expected by many economists polled by Briefing.com. Productivity for the second quarter fell 0.3%, which isn't quite as steep as the 0.6% decline that had been anticipated, on average, among economists surveyed by Briefing.com.
08:05 am : S&P futures vs fair value: +12.00. Nasdaq futures vs fair value: +11.20. Stock futures are finally finding some relief following another extremely aggressive sell-off yesterday. The bid precedes the latest FOMC policy statement at 2:15 PM ET. Given recent market volatility and rekindled concerns about the macro environment, some participants anticipate that the committee will have something to say on the matter. Productivity and cost data for the second quarter are also on today's calendar; they are due at the bottom of the hour. Despite the improved tone to premarket trade, gold prices continue to climb. The yellow metal was last quoted with a gain of more than 2% at a new record above $1750 per ounce. Oil prices actually extended their downturn by falling below $80 per barrel overnight, but the energy component has since pared its loss to trade with only a fractional loss at $81.20 per barrel ahead of pit trade. Treasuries spiked higher in the prior session, but they have run into selling this morning. Early pressure has sent the yield on the benchmark 10-year Note up to 2.38%. The dollar is down, too. Renewed strength in the euro, and continued strength in the yen, has the Dollar Index down 0.5%.
06:51 am : [BRIEFING.COM] S&P futures vs fair value: +7.50. Nasdaq futures vs fair value: +2.00.
06:51 am : Nikkei...8944.48...-153.10...-1.70%. Hang Seng...19330.70...-1159.90...-5.70%.
06:51 am : FTSE...4962.24...-106.70...-2.10%. DAX...5708.72...-214.60...-3.60%.
In Play ®
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11:58AM Google edging up toward its session high and yesterday's peak at 568.84/569.00 (GOOG) 567.59 +21.57 :
11:49AM Gold futures extending bounce off of lows; now higher by $36.10 to $1749.10 (COMDX) :
11:46AM RigNet expands contract and provides managed remote communication services to Hercules Offshore (HERO) global fleet (RNET) 13.15 -0.22 :
10 Things You Need To Know Before The Opening Bell...
Mamta Badkar, On Wednesday August 10, 2011, 7:27 am EDT
Good morning. Here's what you need to know.
Asian indices were up in overnight trading with the Nikkei up 1.05%. Europe is mostly higher, but going back and forth. US futures are lower, as the rally fizzles out.
The FOMC's promise to keep rates ultra-low until 2013 is the talk of the day. Everyone's trying to figure out, still, what it all means. Goldman Sachs says: "QE3 is now our base case."
Yields on Italian treasury bills fell after the European Central Bank began buying the country's bonds. Italy sold $9.3 billion of bills today, and yields on its one-year bills fell to 2.959%, down from 3.67% at the July auction. Long-term Italian rates are also lower. Now here is the sad story of how Italy got to be such a wreck >
China's trade surplus surged to $31.5 billion in July, its highest point in over two years, with exports up 20.4% year-over-year, from 17.9% in June; and imports up 22.9% year-over-year, from 19.3% in June. The yuan jumped to a new high against the dollar on the news, but the outlook for China remains unclear amidst global economic uncertainty. Check out the 10 countries that will dominate world trade in 2050 >
The Bank of England has downgraded its growth forecast for 2011 on slower than expected global economic recovery. The bank cuts its growth forecast to 1.4% in 2011 and warned that inflation could surge to 5% this year.
With U.S. default narrowly avoided, President Obama has toughened his tone calling for federal spending that is aimed at creating jobs, and pulling away from talks of deficit cuts. He also added that democrats unlike Republicans see the government as a partner with the private sector. Check out the companies that will get crushed when the government stops spending >
Capital One Financial Corp. has agreed to buy HSBC's U.S. credit card unit for $32.7 billion. The sale is part of HSBC's $3.5 billion cost cutting plan.
The Treasury department releases its monthly budget for July at 2 PM ET. Consensus is for a deficit of $132 billion. Follow the release at Money Game >
In earnings news, Walt Disney beat expectations posting net income of $0.77 per share on revenue of $10.68 billion. The company's media networks arm reported a 5% rise in revenue, while revenue from its theme parks and resorts jumped 12%.
Another bank is hurting from its exposure to Eurozone debt. German Commerzbank was hit by a bigger than expected €760 million writedown on Greek bonds. The company's net profit was down 93% to €24 million and sales were down 24% to €2.4 billion. Refresher: Check out who gets crushed if Greece defaults >
BONUS - Angelina Jolie and her children were spotted painting at the Pottery Cafe in Richmond, London.
SEC investigating S&P's downgrade of U.S. debt: report
On Friday August 12, 2011, 1:40 am EDT
(Reuters) - The U.S. Securities and Exchange Commission (SEC) has asked rating agency Standard & Poor's (S&P) to disclose which employees knew of its decision to downgrade U.S. debt before it was announced last week, the Financial Times said, citing people familiar with the matter.
SEC's move is part of a preliminary examination into potential insider trading, the FT said.
The inquiry was made by the SEC's examination staff, which has oversight of credit rating firms, one person familiar with the matter told the newspaper.
However, the securities regulator is not aware of a leak from an S&P insider, nor was it aware of an aberrational trade, the paper said.
S&P and SEC could not immediately be reached for comment by Reuters.
The U.S. Senate Banking committee has begun looking into last week's decision by S&P's to downgrade the U.S. credit rating, a committee aide told Reuters on Monday.
10 Things You Need To Know Before The Opening Bell...
On Friday August 12, 2011, 7:23 am EDT
Good morning. Here's what you need to know.
•Following yesterday's explosive up-move in US markets, Asian indices were mixed in overnight trading with the Nikkei down 0.2%. Europe is in the green after ECB released lending data showing that banks didn't face liquidity issues. US markets aren't going anywhere.
•Also helping things in Europe: France, Spain, Italy and Belgium have begun a ban on short-selling today. France has banned short-sales of 11 stocks including Credit Agricole, BNP Paribas and Credit Suisse, that were dragging the CAC down yesterday. France is up about 2% today.
•More news of faltering recovery in Europe, as France's GDP growth remained flat in the April - June period, against a 0.9% rise in the first quarter. The 0% growth was attributed to a 0.7% drop in household consumption.
•Meanwhile, Greece's economy contracted 6.9% in the second quarter, but the figure is not based on seasonally adjusted data. Check out the updated guide to Europe's impending debt disaster >
•The Italian cabinet is meeting today to approve new measures to balance the budget by 2013, in a bid to ease concerns about the nation's public finances. This comes after Italian Finance Minister Giulio Tremonti's call for strong measures to balance the budget yesterday. Don't Miss: The sad story of how Italy got to be such a wreck >
•July retail sales came in line with expectations up 0.5%, and ex-autos and gasoline was up 0.3% >
•In earnings news, Nordstrom posted Q2 earnings of $175 million or $0.80 per share, on revenue of $2.72 billion. The company also raised its full-year profit outlook.
•GOP candidates faced-off at an eight-candidate debate, in Ames, Iowa late last night. Minnesota rivals Tim Pawlenty and Michele Bachmann had the most heated exchanges during the debate, while Mitt Romney directed his criticism at President Obama.
•Consumer sentiment data for August will be released at 9:55 AM ET, and business inventories for June will be released at 10 AM ET. Expectations are for a slight drop in consumer sentiment index to 63, and a 0.6% month-over-month change in business inventories. Follow the release at Money Games >
•It has been reported that Bank of America CEO Brian Moynihan met privately with Treasury Secretary Timothy Geithner and Federal Reserve governor Daniel Tarullo this week, as part of the bank's attempt to calm investor and employee concerns about its recent share slump. Check out the 16 strongest banks in the world >
•BONUS - Eva Longoria and George Lopez toasted their unemployment on air, as both their shows were cancelled.
4 Rules for the Seesaw Market...
The market roller coaster took another big dip down Wednesday, with the Dow tumbling more than 400 points midday before stabilizing a bit.
If you're like most non-professional traders, these kinds of wild market swings — down 635 Monday, up 430 Tuesday, down 400 Wednesday -- can be gut-wrenching, confusing and downright scary. (Rest assured, many professionals feel the same way - they just don't admit it.)
For those of you feeling paralyzed by the panic, here are some time-honored rules for a seesaw market:
If You Can't Take the Heat, Get Out: As my Breakout colleague Jeff Macke likes to say, if the market is keeping you up at night, you shouldn't be in it. This is particularly true for people at or near retirement age; you simply don't have the time (or income stream) to make up for big losses, a hard lesson many aging Baby Boomers learned in 2008. The same rule applies if you have funds in the stock market earmarked for a specific event in 5 years or less, like a house purchase, wedding or college tuition.
Contrary to what financial advisers tell you, there's no law stating your money has to be in the stock market, just as, contrary to what financial advisers tell you, there's no guarantee stocks will perform well "in the long run."
Don't Panic: If you don't need the money in your retirement account in 5 years or less, you're better off sitting tight vs. cutting and running. Unfortunately, many investors simply can't take the pain and are doing just that.
Transfers in the 4.7 million 401(k) accounts monitored by consultant Aon Hewitt exceeded $1.6 billion on Monday, more than three times the normal level, ABC News reports. "All of the assets moved Monday were taken out of stock funds and invested primarily in bond funds."
Historically speaking, retail investors get scared and sell out of stocks at important market bottoms. Pulling out after a big decline means locking in those losses, a mistake many investors compound by turning around and buying assets that may already be at inflated prices, such as gold and Treasuries in the current environment. That's why Wall Street pros refer to us as "the dumb money."
Have a Plan: Sometimes the most boring advice is the best advice.
Investors who have previously established set patterns of portfolio rebalancing, diversification of investments and long-term goals for their money tend to do better -- both emotionally and financially -- during periods of dramatic market upheaval, says Liz Ann Sonders, Charles Schwab's chief investment strategist.
Learn from Your Mistakes: As of July 1, 80% of workers in their 40s and 50s had more money in their 401(k) than they did in 2007, meaning they'd recouped the losses from 2008, according to data compiled for AP by the Employee Benefits Research Institute. After Monday's 6.66% decline, that figured had dropped to 64%, suggesting a lot of investors were just waiting to get back to even after 2008 but hadn't changed their behavior.
Just as refusing to open statements from your broker or 401(k) administrator doesn't count as "financial planning," neither does "hoping and praying" the market will come back.
Nobody knows how much longer the current market squall will last or how much lower stocks will go before it ends. Then again it's quite possible the selloff ends today (or tomorrow) and stocks will return to their rallying ways. What can be said with near-100% certainty is this won't be the last time the stock market embarks on a heart-stopping decline.
So sometime when the market's closed or (ha-ha) quiet in the next few days, take a minute to ask yourself a few questions:
•Am I doing anything different today then I was doing before the market crashed in 2008...or 2000?
•How much volatility can I really stomach and how much money can I really afford to lose, even if just on paper, even if just temporarily? In other words, what is your risk tolerance?
•Can I really do this myself? If the answer is "no," then you're much better off finding a financial adviser. A good one can help you navigate the stock market's highs and lows; he or she won't promise you the moon, and the fees paid will be well worth your piece of mind and your bottom line.
In the end, the best advice anyone can give you is this: Investor, know thyself...and proceed accordingly.
10 Stocks to Watch: Nvidia, AT&T...
On Friday August 12, 2011, 8:12 am EDT
NEW YORK (TheStreet) -- Chipmaker Nvidia swung to a profit, posting solid second-quarter numbers Thursday and delivering robust guidance.
Excluding items, Nvidia earned 32 cents a share in the June-ended period, compared to earnings of 8 cents a share in the prior year's quarter. Analysts surveyed by Thomson Reuters were looking for earnings of 25 cents a share.
For the third quarter, Nvidia expects sales between $1.06 billion and $1.08 billion, above Wall Street's estimate of $1.05 billion.
Shares were surging 10.4% to $14.81 in premarket trading Friday.
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AT&T hired Bank of America to advise it on asset sales as it seeks government approval of its planned acquisition of T-Mobile USA, according to a Wall Street Journal report.
AT&T shares were rising 0.2% to $28.50 and Bank of America shares were up 0.6% to $7.29.
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Department store J.C. Penney posted second-quarter earnings of 7 cents a share, in line with estimates.
J.C. Penney shares were rising 4.3% to $26.83.
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Department store Nordstrom reported second-quarter earnings of 80 cents a share vs. 66 cents a share last year. The Wall Street consensus target was for earnings of 74 cents a share.
The company projected earnings of $2.95 to $3.10 a share, up from $2.80 to $2.95 a share for the year. Analysts, on average, have been expecting earnings per share of $3.05.
Nordstrom shares were up 5% to $44.40.
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Red Robin Gourmet Burgers reported an adjusted profit of $7.5 million, or 48 cents a share, for the three months ended June 30 with revenue up 7.2% year over year to $215.8 million. The average estimate of analysts polled by Thomson Reuters was for a profit of 36 cents a share in the June period on revenue of $213.3 million.
Red Robin shares were climbing 12% to $33.85.
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Bank of New York Mellon was sued Thursday by Virginia and Florida over allegations the bank mishandled foreign exchange transactions for the states' pension funds.
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Reinsurer Validus has sued Transatlantic to force Transatlantic into considering its takeover offer over a deal with Allied World Assurance.
Validus is arguing that Transatlantic is "arbitrarily" snubbing it despite the higher value of its offer over Allied's.
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Wal-Mart is discussing the possibility of buying the Brazilian unit of French retailer Carrefour two years after a previous attempt at striking a deal failed due to a disagreement on pricing, The Wall Street Journal reported, citing sources familiar with the situation.
UBS is advising Wal-Mart on a potential offer, which could be between $6 billion and $8 billion, the Journal reported.
8 Blue Chips to Add Your Shopping List...
August 15, 2011
The Dow broke a record this past week by moving 400 points, four days in a row. Whenever markets show this kind of whipsaw action investors tend to shy from the fundamentals. Now more than ever, investors need to adhere to the basics. Some traders are trying to time the bottom, but as "investors" this is unnecessary. Investors are better off having a list of companies they are looking to buy but are not at a safe discount yet. Having a shopping list of well run companies makes it easier to find your bargains when the market panics.
Here are some blue chip companies with well established brands and international exposure. They have proven management and growing dividends that in all create safety and sustainability for investors. These stocks are great additions to your shopping list and a few are trading low enough for a position.
American Express (AXP): American Express is one of the most well run companies on our list. It has ever increasing exposure to the emerging middle class abroad. The company pays the lowest yield on the list at 1.6% and has increased it since 2003. It announced share repurchases earlier in the year and was one of the financials who did not cut its dividend during the last recession.
ConocoPhillips (COP): COP is trading just 30% over its book value. It has great management paired with a hefty yield of 4%. COP has really bounced back from its lows in 08' and has proven its profitability last year returning $11 billion in profits. It has solid fundamentals and the benefits that come with a potential rise in oil prices. Conoco is currently trading with a P/E of 8.30.
Coca Cola (KO): Coke is one of the most recognizable brands in the world. It has sales in almost every country. Its management has a long term plan to grow the company which is called "2020 Vision". As a defensive investor, it is always important to find management with their eyes on the horizon. Coke has a yield of 2.8% and has raised it consistently longer than many of us have been alive. Including dividends and share repurchases, Coke has returned billions to shareholders in recent years. Not to mention, it is Buffett's favorite holding.
Proctor and Gamble (PG): Proctor and Gamble is a true multinational. It has strong exposure overseas and is increasing market share in places like China and Russia. PG has been improving its efficiency since the recession and is heavily invested in emerging markets. It receives 58% from international sales. The company currently yields 3.4% and has raised its dividend 55 years straight.
McDonald's (MCD): McDonald's Jim Skinner is a fantastic CEO. His leadership has been proven by the success since he took over 7 years ago. The company has profited from restructuring under Skinner, but more importantly it has not stopped. McDonald's management is consistently adapting to a changing and increasingly international consumer. McDonald's receives over 2/3 of sales from overseas. Its P/E is a little high for me at 17. It might not have a margin of safety at the moment, but should certainly be on your shopping list. Its dividend yields 2.8% and has increased it every year since 76'.
PepsiCo (PEP): Pepsi, like Coke operates in the beverage industry. A very important distinction between the two, is Pepsi's snack business, Fritolay. Even Buffett, Coke's largest shareholder, has praised Fritolay saying "Fritolay is a fabulous business". Pepsi's beverage industry actually accounts for less than 50% of its total revenue. This diversification makes Pepsi less susceptible to sharp increases in costs. Pepsi's international sales account for about 50% of revenue. Its dividend yields 3.26% and has been raised 38 years in a row.
Exxon Mobil (XOM): Like COP, Exxon is Big Oil. But in this case, much bigger. Exxon has the largest market cap of any company traded on the NYSE. XOM has some of the highest oil production in its industry. This production coupled with its industry leading resource base makes XOM very attractive. Like the others, its management has a rich history of share repurchases. It currently yields 2.6% and has raised that dividend for over 25 years. The company faired better than most in the recent recession which can be attributed to its size, diversification, and solid financial position. It trades with a P/E of 10.20
General Electric (GE): GE is similar to PG in that it is increasing its focus on emerging markets. Over 50% of its total sales comes from overseas.The company has lower value metrics than most on the list including a P/B at 1.30. Its dividend yields 3.77% but had to be reduced during the recession. Its dividend is not as reliable as others on the list, but its payout ratio is not to high at 40%. GE has obviously gone through struggles in recent years but at this price, it is hard to overlook.
GE, COP, and XOM are the biggest bargains on the list. These are the companies I would consider initiating a position on while prices are this low. The others have more room to fall before they are at a definitive bargain, but they are all solid holdings if you already have a positition. If anything, they will let you sleep better at night.
Here is another article by SA Contributor "AssetInflation.com" with a different approach to similar Blue Chips.
Market Roller Coaster About to End ?
Tuesday August 16, 2011, 10:04 am EDT
NEW YORK (TheStreet) -- Summer is a time when many Americans seek out amusement parks for the thrills of riding a roller coaster. The climbs and drops at high-speed deliver an exciting mix of fear and exhilaration. But knowing the extent of the highs and lows and when it is going to be over play a crucial role in the fun of riding a metal roller coaster. Riding a market roller coaster offers no such assurances and is no fun at all.
To say last week was volatile for the markets would be a major understatement. The stock market posted one of its most volatile weeks ever with swings of greater than 4% during each of the first four days of the week, changing direction with each day. This pattern of performance has never before been seen in the 83-year history of the S&P 500 index. By Friday, stock market turbulence slowed. For the week, the S&P 500 was down 1.6% adding to the losses that now total 13% since the recent peak on July 7.
While the U.S. debt downgrade in the week before last grabbed a lot of attention and added to the lingering pessimism heading into last week, one of the primary drivers of last week's volatility was that eurozone leaders, while making some successful efforts, have not gone far enough to resolve the debt problems in the eurozone.
Investors feared a downgrade to France and another banking crisis stemming from some French banks noted by Moody's as at risk of a downgrade due to their exposure to troubled debt. Another key driver was the better-than-expected economic data on retail sales and the labor market along with the Fed confirming they intend to keep short-term interest rates low until mid-2013. This optimism that the U.S. economic soft spot was firming vied with the concern that the pace of economic growth in the United States may soften further as stimulus begins to fade.
While last week's volatility is unprecedented, we can take some comfort that the overall moves and sentiment in the market this summer are familiar; they echo those of last summer.
At the low point of last week, the S&P 500 was down 17%, similar to last summer's volatile 16% peak-to-trough decline.
The 10-year Treasury note yield has fallen 1.6 percentage points from the high of the year, similar to last summer's 1.6 percentage point decline from the high of the year.
The drivers of the decline are similar to last summer, as well. Last year, Europe's debt problems were a main cause of the market's decline, as was an economic soft spot in the United States as stimulus began to fade when the Federal Reserve ended the QE1 bond buying program and state and local governments were cutting back on spending.
So, maybe we have been on this market roller coaster before, and, if so, we might be near the end. Last year, the roller coaster did not leave the track and the summer plunge turned into a steep climb as stock and bond yields rose to new post-recession highs. We continue to believe this summer's drop will end with similar results and ultimately produce a modest single-digit gain for the S&P 500 in 2011.
We believe the fundamental underpinnings of solid corporate earnings growth (up 19% year-over-year in the second quarter), low valuations (the price-to-earnings ratio fell to levels not seen since 1989 during the lows of last week), and firming economic data (as Japan's economy rebounds from recession) will combine to support stocks, high-yield bonds, and other business cycle-sensitive investments.
However, there are factors we are watching to determine if this volatility is instead a precursor to a deeper and longer lasting bear market. In the next few weeks, there are a number of potentially market-moving events that may continue some of the volatility that was so pronounced last week.
With all the attention on Europe's sovereign debt problems, this week's meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy will garner much attention. The market wants to know how much larger the European bailout fund is going to be and under what conditions it may be used, although this is unlikely to be determined for a number of weeks.
A lot of retailers report second-quarter earnings this week. But the solid results will be tempered by an outlook clouded by the sharp decline in confidence seen in the widely-watched University of Michigan consumer sentiment index falling all the way back to the levels during the financial crisis. The question for markets is whether the stock market's violent sell off has become such a negative for consumer and business confidence that it will impact the economy and profits.
In 2010, the Fed's annual Jackson Hole meeting at the end of August hinted that QE2 may be coming and got the markets to acknowledge improving economic and profit data and rebound. The Jackson Hole meeting at the end of the month will be closely watched for indications of how the Fed may respond to further economic weakness. In the meantime, this week Dallas Fed President Richard Fisher will speak. Fisher is one of three Fed officials who dissented to the Fed's statement that interest rates would remain low through mid-2013 and his comments may add to volatility.
U.S. economic growth has started to show signs of improving. This can be seen in a number of economic readings including the fall in initial jobless claims to a four-month low of 395,000 in the past week, retail sales running 4% to 5% above a year-ago levels, and signs that industrial production has increased. In the coming week, gloomy housing-related data is on tap. But stronger readings on manufacturing in the Philadelphia Fed survey along with leading economic indicators may provide positive data points.
Although we expect volatility to continue, we foresee a more muted level than last week's market roller-coaster ride and a climb over the months ahead. In general, we advise investors to do what they normally do on a roller coaster: hang on tightly, grit your teeth, scream if you need to, but do not jump off.
It's a Technical Mess All Over the World:
Tuesday August 16, 2011
As markets around the world put the brakes on a nascent comeback rally after only 3 sessions, legendary chart analyst Louise Yamada says it's a technical mess all over the world. "We are at a critical juncture right now," warns Yamada. Be it the BRICs, other Emerging Markets, or Europe, Yamada says "all of them have come into long-term sell signals" with the exception of Japan, Thailand, Jakarta, and a few U.S. markets.
As if the debt concerns out of Greece, Italy, and France weren't enough, word comes today that the global slowdown is hitting Europe's largest and most stable economy: Germany. The country reported a weaker than expected second-quarter GDP rate of 0.1%, compared to 1.3% in Q1.
"Germany was the strongest market and it had a very severe setback...and went right to the bottom of the 2010 support," says Yamada. "So any further decline there and you bring into question whether the market goes to the 2009 lows."
In the case of the Germany's benchmark DAX (^GDAXI), that would be a fall to about 3600, nearly 40% below current levels. The index has suffered a 16% drop in August alone.
Another global powerhouse is also in question. Yamada points out that Hong Kong's Hang Seng Index (^HSI) is at the same ''critical juncture." Right now it sits at 2010 support levels and is now looking at the possibility of a further 40% support gap back to its 2009 trough.
But before you race off in search of a safe haven, Yamada says it's best to wait for some clear confirmation that the global downtrend has reversed. Until that happens, "rallies would be best used to lighten some positions."
Economists see growing risk of global recession
Weak economic data fuel recession fears, contribute to sharp fall in financial markets
August 18, 2011, 7:03 pm EDT
WASHINGTON (AP) -- Discouraging economic data from around the globe have heightened fears that another recession is on the way.
Fresh evidence emerged Thursday that U.S. home sales and manufacturing are weakening. Signs also surfaced that European banks are increasingly burdened by the region's debt crisis and sputtering economy.
The rising anxiety ignited a huge sell-off in stocks that led many investors to seek the safety of U.S. Treasurys.
Economists say the economic weakness and the stock markets' wild swings have begun to feed on themselves. Persistent drops in stock prices erode consumer and business confidence. Individuals and companies typically then spend and invest less. And when they do, stock prices tend to fall further.
"A negative feedback loop ... now appears to be in the making" in both the United States and Europe, Joachim Fels and Manoj Pradhan, economists at Morgan Stanley, said in a report Thursday. Both economies are "dangerously close to a recession. ... It won't take much in the form of additional shocks to tip the balance."
The risk of a recession is now about one in three, according to Morgan Stanley and Bank of America Merrill Lynch.
Among the worrisome economic signs:
-- A survey by the Federal Reserve Bank of Philadelphia shows that manufacturing in the mid-Atlantic region contracted in August by the most in more than two years. The steep drop, on top of a smaller decline in a New York Fed survey this week, means U.S. manufacturing probably contracted in August, economists said.
It would be the first decline since July 2009 -- a worrisome sign because manufacturing has been a key source of U.S. growth in the two years since economists say the Great Recession ended.
-- U.S. home sales fell in July for the third time in four months, the National Association of Realtors said. Sales dropped 3.5 percent to a seasonally adjusted annual rate of 4.67 million homes. That's far below the 6 million homes that economists say must be sold to sustain a healthy housing market.
Sales are lagging behind last year's pace -- the weakest since 1997. "There seems to be a correlation between the stock market and home prices," said Andrew Davidson, a New York-based mortgage industry consultant.
-- In Asia, Japan's exports fell for a fifth straight month. The world's No. 3 economy has fallen into a recession since its earthquake and tsunami in March. Its weakness is contributing to the global slowdown.
-- Consumer prices rose 0.5 percent in July, mostly due to more expensive gas and food. The "core" price index, which excludes volatile food and energy prices, rose 0.2 percent. The higher prices add to the burdens for Americans already squeezed by stagnant pay, though economists don't expect prices to rise much further. And gasoline has fallen this month.
Investors are also growing more anxious about Europe's sputtering economy and its leaders' ability to resolve the debt crisis. European bank stocks accelerated their fall Thursday.
European banks are being forced to pay more for the short-term loans they need to finance day-to-day operations. Some with heavy exposure to the debts of Greece and other weak countries are relying on loans from the European Central Bank because other private banks are reluctant to do business with them.
The ECB said Thursday that one bank had borrowed $500 million a day for seven days through the ECB's dollar lending program. It was the first time since February that a bank had used the program. The bank wasn't identified.
After all the volatility of the past month, the Dow Jones industrial average has lost more than 14 percent since July 21. That includes Thursday's drop of more than 419 points.
Some sectors of the U.S. economy still show strength. Retail sales are up. Gas prices have fallen. And job growth has been consistent, though below what's needed to reduce the unemployment rate.
Yet a consumer survey taken this month showed confidence in the economy fell to the lowest level in 31 years.
Morgan Stanley's calculation of a one-in-three risk of a new recession hinges, in part, on its expectation that Congress will let a Social Security tax cut, a business tax credit and extended unemployment benefits expire at year's end. It calculates that the expiration of those measures would reduce U.S. growth by 0.5 to 1 percentage point in 2012.
Jitters over the economy and financial markets may also reduce auto sales. That would be a blow to an industry that reported strong profits and healthy hiring earlier this year. J.D. Power and Associates has cut its 2011 sales forecast last week by 2 percent and its 2012 forecast by 3 percent.
On Tuesday, France's president, Nicolas Sarkozy, and German Chancellor Angela Merkel held an emergency meeting to discuss the continent's sluggish economy and debt crisis. Disappointment in the outcome of the meeting has contributed to the sell-off in European bank shares.
"All we got was more taxes and more bureaucracy and more austerity," said Neil MacKinnon, an economist at VTB Capital in London.
The German economy, Europe's biggest, slowed to a growth rate of 0.1 percent in the April-June quarter, after expanding at a 1.3 percent rate in the first quarter of this year. France's growth fell to zero in the April-June period after a 0.9 percent quarterly rate in the first quarter.
Still, Neil Dutta, an economist at Bank of America Merrill Lynch, said that most of the negative indicators, including the Philadelphia Fed index, reflect sentiment, rather than actual economic activity. Measures of the actual economy, like the number of people seeking unemployment benefits, haven't declined nearly as much.
The number applying for benefits rose 9,000 last week to a seasonally adjusted 408,000. The four-week average, a more reliable gauge of the job market, dropped for a seventh straight week to 402,500, the lowest level since April. The report suggests that the economy is creating jobs but not nearly enough to lower the high unemployment rate.
"We are not ready to say this is the death knell for the U.S. economy," Dutta said. Still, recession risks are rising, he added.
Liberty drops Barnes & Noble bid, to invest $204M
Liberty Media makes $204 million investment in Barnes & Noble, drops $1 billion takeover bid
Thursday August 18, 2011, 7:50 pm EDT
NEW YORK (AP) -- Barnes & Noble Inc. said Thursday that Liberty Media, the conglomerate controlled by John Malone, has dropped its $1 billion bid to buy the bookseller and instead will invest $204 million in the company.
In May, Liberty Media Corp. offered to buy all of Barnes & Noble, apparently enticed by the potential of the company's Nook electronic reader.
But Barnes & Noble said the takeover talks had been ditched in light of the investment agreement unveiled Thursday.
Under the terms of the deal, Liberty Media bought preferred stock convertible into about 12 million Barnes & Noble shares at $17 apiece, giving it about a 17 percent stake in the company. The preferred shares will pay an annual dividend of 7.75 percent.
Liberty Media will also get two seats on the company's board of directors, which is being expanded to 11 members. It has nominated Greg Maffei, its president and CEO, and Mark Carleton, a senior vice president at the media company, to take the seats on Barnes & Noble's board.
The investment is another boost for New York-based Barnes & Noble, which recently lost a major competitor with rival Borders Group going out of business.
Barnes & Noble had put itself up for sale last year in response to pressure from billionaire activist shareholder Ron Burkle, but the company didn't strike a deal. Burkle has since significantly trimmed his Barnes & Noble stake.
Barnes & Noble has struggled along with other traditional book sellers facing heightened competition from online retailers like Amazon.com and discounters like Wal-Mart Stores Inc.
Leonard Riggio, chairman of Barnes & Noble, said the capital injection from Liberty Media will go toward expanding the company's digital business.
Maffei said Liberty Media is "excited about Barnes & Noble's prospects as the leading bookseller in the U.S. and its growth opportunities in the digital world."
Malone's Liberty Media empire operates three publicly traded companies -- Liberty Interactive Inc., Liberty Starz Group and Liberty Capital Group -- through which it runs home-shopping network QVC and movie channel Starz. It also holds stakes in online, media and communications companies.
Some industry analysts have speculated that QVC could be used as a marketing vehicle for Barnes & Noble's Nook. The company's reader also has the potential to go beyond books to deliver all types of digital products, including music, magazines, TV shows and movies. That makes it a competitor not just to Amazon.com's Kindle but also to Apple Inc.'s iPad.
Barnes & Noble shares rose 41 cents, or 3.4 percent, to $12.50 in after-hours trading. During the regular session, the stock lost 90 cents, or 6.9 percent, as part of the market-wide decline.
Shares in Liberty Media, which is based in Englewood, Colo., were unchanged in extended trading. They ended the regular session down $4.92, or 6.8 percent, at $67.65.
Car dealers fear economy could scare off buyers
Stock market swings, jittery buyers threaten to stall US car and truck sales
Thursday August 18, 2011, 2:07 pm EDT
STERLING HEIGHTS, Mich. (AP) -- Jeff Swanson was in the market for a new car just a few weeks ago. Then the stock market went crazy.
So Swanson, 25, decided to keep his 10-year-old Pontiac Grand Prix for at least another year. Gyrations in stocks and talk of a weakening economy rattled Swanson's confidence about taking on another payment, even though his new job running a home for mentally disabled people seems to be secure.
"Everywhere you turn, other people are saying `Oh, I lost my job this week. I lost my job last week,'" says Swanson, who works for a non-profit that gets money from the state. "I want to be a little bit financially set in case something like that happens."
It's an increasingly common reaction among would-be car buyers that has dealers and automakers worried. In May, many believed sales would reach a healthy 13.5 million this year -- halfway between their peak in 2005 and their 30-year low in 2009. Now, such forecasts seem overly optimistic. Analysts say the swoon in financial markets and economic uncertainty could reduce auto sales by a few percentage points, shrink earnings and delay hiring in an industry that has been a recent leader in job creation.
"If it keeps going this way, yes, it's going to hurt business," says Jerry Seiner, who runs a group of dealerships in the Salt Lake City area that includes General Motors, Nissan and Kia.
Any reduction in sales would be especially painful for Toyota and Honda dealers, who are just starting to restock their showrooms after months of shortages brought on by Japan's earthquake.
In a sign of how sensitive buyers have become to stock swings, showrooms are active on days the market is up, but empty when it's down, Seiner says. The Dow Jones industrial average has fallen 10 percent since July 22, with wild swings up and down along the way.
Gilbert Baldwin, 66, a retired auto worker from Ypsilanti, Mich., decided to wait for the market to stabilize before replacing his 2002 Ford Explorer. He was shopping for a new car last month, but now he's worried about higher gas and food prices and the possibility of Social Security cuts as Congress looks for ways to cut the deficit.
The lack of confidence isn't what car dealers want to hear, especially in August, usually a strong sales month as dealers clear lots of 2011 models to make room for 2012 cars and trucks. Carmakers report August sales in the U.S. on Sept. 1.
In the Washington, D.C., area, which is likely to be hit by government spending cuts, sales at Tammy Darvish's chain of about two-dozen dealerships fell by more than 2 percent in early August. She's worried the slow pace could continue for the rest of the month.
But dealers say sales likely won't collapse in the second half of 2011, as they did in 2009. That's because banks are lending more freely, and lease deals, which went away during the recession, are making a comeback. Also, older cars will still need to be replaced. The average age of a car in the U.S. is 10.6 years, up more than a full year from 2008, according to the research firm Polk.
Indeed, the turmoil in financial markets isn't scaring off everyone.
Jason Ashton, 38, of Shelby Township, Mich., plans to trade in his 2006 Dodge Ram pickup for a roomier SUV that will fit his wife, two kids and equipment.
"You've got to have room for the family," he says, trying to swing a deal for a Durango at Van Dyke Dodge in Warren, Mich.
But Ashton, who installs software for auto companies, will buy only if he gets a price low enough to keep his monthly payment steady. He also won't spend as much on options as in the past, forgoing leather seats, for example.
J.D. Power and Associates cut its 2011 sales forecast last week by 2 percent, to 12.6 million new cars and trucks. It cut its 2012 forecast by 3 percent, to 14.1 million. Ford Motor Co. is sticking with its sales forecast of around 13 million for the year.
"We're not getting back to what was considered normal or healthy as quickly as possible, but it's still a pretty strong progression," says Jeff Schuster, executive director of global forecasting for J.D. Power. Sales bottomed at 10.4 million in 2009.
Since that year, the U.S. auto industry has grown remarkably, adding jobs faster than the economy as a whole. The industry has added about 77,000 jobs since June of 2009. That's an increase of 12 percent, compared with a rise of 0.2 percent for the economy overall.
People looking to buy a car later this year could benefit from any reduced demand today.
Carmakers are likely to roll out sweeter deals, Schuster says, "just to keep buyers active and give them another reason to come in."
Is the Fed Preventing a Housing Market Rebound?
Thursday August 18, 2011, 12:04 pm EDT
Its latest policy to keep interest rates near zero through mid-2013 could backfire and prevent home sales instead of encouraging them
Basic economic theory says that when mortgage interest rates are low, consumers should feel more encouraged to buy a home. But right now, that intuitive theory might not hold. Kathleen Madigan at Real Time Economics proposes that the Federal Reserve's latest proclamation -- that short-term interest rates would be kept near zero through mid-2013 - might discourage home buying. Could this be possible?
When Certainty Can Hurt
This might seem like a backwards idea. To be sure, the last thing that the Fed would aim for is to make the housing market worse off. So why would it allow one of its policies to keep home sales artificially low? This might be an unfortunate and unintended consequence of its desire to calm the broader market.
The logic works here because home prices are declining. Nobody is sure how far they might fall or when they'll finally hit bottom. But we can feel fairly confident that prices aren't there yet. But what do we now know? Interest rates will be low for another two years. So why hurry to buy a home now?
Savvy potential home buyers who can wait the market out now have a good reason to do so. They don't have to worry about interest rates rising before the market bottoms. Instead, they can wait for the market to continue to decline. If it appears to bottom out in the next two years, then they can step in and finally buy at that time. But if prices keep declining over this period, then they'll be smart to buy in the first half of 2013, just before interest rates might begin rising. In the near-term, you might be better off waiting.
This actually makes a lot of sense. Prior to the Fed's August revelation, one of the best arguments for why it might make sense to buy a home in the near future was that interest rates will rise. As long as the Fed is holding them down, then this argument begins to disintegrate.
Some Reasons to be Skeptical
But there are a couple of reasons why the Fed's action might not endanger home sales.
Mortgage Interest Tracks Long-Term Rates
First, the Fed's action specifically targets short-term interest rates. They'll certainly be very low through mid-2013. But a 15-, 20-, or 30-year mortgage will face prevailing long-term interest rates. While short-term interest rates often have some influence over longer-term rates, the two aren't always directly correlated. In other words, we could see longer-term interest rates begin to rise even as short-term rates are kept low.
For example, in October, the government may no longer guarantee very large mortgages in some markets. That should cause their interest rates to rise a little, since banks and investors will add a default risk premium to those rates. These and other market shocks specific to housing or longer-term rates could still affect mortgage interest rates.
Home Price Movements Are Regional
Second, home prices may continue to decline nationally, but some markets will stabilize faster than others. Some already appear to be healing. So the question of whether to take advantage of low interest rates really depends on where you want to buy a home. In worse-off markets, it may be wise to wait. But in markets showing signs of recovery, low rates might make now the perfect time to buy.
Will the Fed's Words Do More Harm Than Good?
Are we seeing this theory in action? We actually might be. On Wednesday, the Mortgage Bankers Association revealed that mortgage purchase applications plummeted 9% last week to their lowest level in more than a year. While they explained the reason for this decline as general consumer nervousness, what if the Fed was partially responsible? It did, after all, announce its new policy on Tuesday afternoon last week.
If this counterintuitive theory holds, then the Fed might want to revisit its decision. The U.S. economy would benefit significantly if home sales began to rebound. Residential investment is providing very little support to the nation's economic growth at this time, and the construction sector remains one of the hardest hit by layoffs. Perhaps in this case, a little uncertainty could have been a good thing.
With 9 million people unemployed why don't the Obama >:D loving Unions recruit a million or two of them?
You know train them, and give them work.
Oh, that's right, silly me, Unions don't create jobs, its businesses that create jobs. They are the ones that employ union workers. So keep following your savior and continue bashing businesses until your part of the 9 million.
Dumb asses better be glad to have a job in this obama run economy ! I'm 100% sure that the people standing in those unemployment lines would love to take their place...
Verizon workers going back to work, without deal...
Striking Verizon workers agree to head back to work without deal, will keep negotiating
Thousands of striking Verizon workers will return to work Tuesday, though their contract dispute isn't over yet. The 45,000 employees, who have been on strike since Aug. 7, agreed to return to work while they negotiate with Verizon Communications Inc. on the terms of a new contract.
Verizon workers picket outside one of the company's central offices in Philadelphia. The Communication Workers of America and the International Brotherhood of Electrical Workers issued a statement saying they have agreed to come back to work while they continue to negotiate with Verizon Communications Inc. About 45,000 Verizon landline workers from Massachusetts to Virginia went on strike on Aug. 7, fighting management demands for contract givebacks. At issue is the company's declining landline business in an age of mobile phones.
NEW YORK (AP) -- Thousands of striking Verizon workers will return to work Tuesday, though their contract dispute isn't over yet.
The 45,000 employees, who have been on strike since Aug. 7, agreed to return to work while they negotiate with Verizon Communications Inc. on the terms of a new contract. The workers are employed in nine states from Massachusetts to Virginia in the landline division.
Among the issues in dispute is the company's move to freeze pensions and its demand that workers contribute to their health insurance premiums. The company argues that it has to reduce benefits as the landline business deteriorates. More Americans are forgoing such lines in favor of mobile phones.
The employees' unions say the company is profitable and can afford to maintain the benefits.
For now, the two sides say they have narrowed their disagreements and have agreed on a structure for the negotiations. The workers will return to work under the terms of a contract that expired Aug. 6.
"The major issues remain to be discussed, but overall, issues now are focused and narrowed," the Communications Workers of America and the International Brotherhood of Electrical Workers said in a statement.
Marc Reed, Verizon's executive vice president of human resources, credited the company's managers with "ably meeting the needs of our customers" during the 14-day strike. This enabled the company to "withstand the strike without significant disruption to customer service," he said.
The company said it will "quickly address any backlog in repairs and unfulfilled requests for service."
The key to making money in the stock market is buying right before
a big move happens. That means knowing how to spot key market
turning points.
It also means not losing in a bear market and knowing to buy when a
bull market starts.
Do your DD!!!
Do your own DD and invest based on your DD, not mine !
;)
The Indian market witnessed a sharp rally in 2012. The Sensex gained a whooping 24.5 percent. In our report the reforms will be pushed through and that will accelerate the economic growth in India. It doesnt mean that we are going to get another year like this year, but we think we could get 15 percent, including dividends, in the Sensex next year.
There is stabilisation in Chinese economy, continued recovery in US and European, while still in a recession, in much safer territory than it was few months ago. I am optimistic going into 2013.
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Last Trade: .0322
Long Term Target Price: $1.40
Company Name: Biostem Corp.
Trade Date: Thu, July 25, 2013
Symbol traded: H_A IR
The rally could be coming (Must Read)! Released Huge news!
Global Economy: Stakes start rising over Washington gridlock
LONDON (Reuters) - The world is watching Washington's showdown over the federal budget and debt ceiling with the same feelings of horror, disbelief and ghoulish fascination that a slow-motion car crash produces.
The Republican-led House of Representatives is on a collision course with the Democratic White House. Both sides know the damage that would be inflicted on the country if the Treasury runs out of money later this month, risking an unprecedented debt default.
So one of them is sure to blink and swerve away. Aren't they?
Well, they haven't yet. Hard-line Republicans opposed to Obama's healthcare reform have already forced a shutdown of non-essential government functions since October 1 by blocking new spending authority.
"They're doing that, I would say, at the great expense of the average American, the U.S. economy and, to some degree, the global economy," said Jason Ware, chief analyst at Albion Financial Group in Salt Lake City.
After media reports that House Speaker John Boehner would work to avoid default, even if it meant relying on the votes of Democrats, as he did in August 2011, Boehner stressed that his party would continue to insist on budget cuts as a condition of raising the borrowing authority.
For the issuer of the world's reserve currency, whose interest rates form a global benchmark, to default would be nothing short of catastrophic, according to the U.S. Treasury.
That is why investors, though they have been selling stocks as a precaution, still believe a deal will be struck.
"You can come back from a government shutdown. You cannot come back from a default on the debt," said Ware.
The key to making money in the stock market is buying right before
a big move happens. That means knowing how to spot key market
turning points.
It also means not losing in a bear market and knowing to buy when a
bull market starts.
Do your DD!!!
Do your own DD and invest based on your DD, not mine !
:) ;) ;D
Capstone isn't the only company set to profit from a booming energy market. These three stock have the potential to soar!
3 Stocks to Get on Your Watch List
I follow quite a lot of companies, so the usefulness of a watch list for me cannot be overstated. Without my watch list, I'd be unable to keep up with my favorite sectors and see what's really moving the market. Even worse, I'd be lost when the time came to choose which stock I'm buying or shorting next.
Capstone Turbine (NASDAQ: CPST)
Speaking of companies with highly volatile hit-and-miss potential, microturbine developer Capstone Turbine has to come to mind.
Shares of Capstone have been extremely volatile lately as anything resembling an alternative energy system has shot through the roof, from fuel-cell systems and ethanol producers to turbine and microturbine developers.
For Capstone, sales growth has been no issue. A week ago today Capstone secured an order for 50 Captsone C65 microturbines for oil and gas shale companies around the country, raising the total number of microturbines in use via its distributor Horizon Power Systems to 550. This order came just one week after securing a 2.6 MW order for two of Capstone's natural gas-powered microturbines from Regatta Solutions to be used in select California hospitals.
For more evidence we can turn to Capstone's third-quarter highlights, released in February, where it delivered record product revenue of $29.9 million, boosted its backlog 7% to $160.4 million, and, more importantly, produced a six percentage point improvement in gross margin to 20%.
Of course, the one monkey on Capstone's back has been that it still hasn't reached breakeven EBITDA despite its rapid top-line growth and cost controls. However, I suspect that could change in either the fourth or first quarter. Although Capstone's profits won't be much to admire for the next year or two, as long as it can continue to push margins healthfully in the 20%-25% range there's a strong possibility that it could head much higher over the long run. Yet again, this isn't a company for the faint of heart -- but it has all the makings of a solid growth candidate.
Novavax (NASDAQ: NVAX)
The biotechnology sector offers a number of wildcard, predominantly clinical-stage stocks that have the potential to double -- or halve -- their value depending on the outcome of a single trial or two. One company that tends to fit the mold here is Novavax.
Novavax is a developer of vaccines designed to treat infectious diseases around the globe. The good news for shareholders is that Novavax is already generating revenue thanks to an influenza vaccine research contract through BARDA, as well as a handful of collaborative partnerships. Although Novavax could be giving up some of its earning potential by partnering up, it can also spread its costs and risks, allowing it more opportunities to find that elusive home run in the biotech sector.
Currently, the most exciting research ongoing for Novavax is a phase 2 study for respiratory syncytial virus, or RSV, a disease that infects a patient's lungs and breathing passages. Most people can recover from RSV infection, but it can be more serious for infants and the elderly. According to the Centers for Disease Control and Prevention, nearly all children will be infected with RSV by age two, hence the need for additional research.
However, investors may also want to consider that even though Novavax's pipeline is still young and predominantly unproven, the company is being valued at more than $1 billion in terms of overall value. It's quite possible that Novavax will continue to burn cash for the foreseeable future as it invests in new development programs and moves forward with its ongoing phase 1 and phase 2 studies. This doesn't necessarily mean the company won't succeed, but it does put downside pressure on a company that has historically produced losses and had a cumulative free-cash outflow of $279 million over the past decade.
It also wouldn't take much for Novavax to be knocked off its high horse if one of its primary studies in either RSV or influenza didn't meet its goals. I would personally guess that more than half of Novavax's current value is built into the success of its RSV and influenza platform, so a disappointment in either of these studies could seriously affect Novavax's share price.
One way or another, this has big-move potential, and risk-friendly investors should have this company on their watch lists.
White Mountains Insurance Group (NYSE: WTM)
The property and casualty reinsurance business is far from glamorous, but if a relatively conservative and nearly rock-steady investment exists within the sector, I would contend that White Mountains Insurance just might be it.
White Mountains is engaged in underwriting property and casualty insurance, as well as reinsuring products through the U.S. As you might imagine, this means that White Mountains can occasionally find itself at the mercy of Mother Nature. Events like Hurricane Sandy have a way of heavily impacting P&C insurers and reinsurers, and there's unfortunately very little these companies can do to predict when and where a natural disaster will strike.
However, one aspect that does work in favor of P&C insurers is that they possess the pricing power to boost premiums for existing customers on an as needed basis to ensure that they cover the catastrophe costs. The past year was incredibly kind to White Mountains, with very little in the way of catastrophe losses. Overall, this helped push the company's book value higher by 9.5% to $642 per share. With White Mountains operating out of four primary segments it noted significant strength from OneBeacon Insurance (NYSE: OB ) , whose book value grew 17.3% and whose combined ratio (a measure of margin for insurers) came in at a steady 92% compared to this quarter last year.
If I could nitpick one aspect of White Mountains' generally conservative approach to running a business, it's that its dividend is far too conservative. At just $1 annually, yielding less than 0.2%, dividend-seeking investors had best consider looking elsewhere.
That aside, White Mountains is currently valued at around 10% of its book value, which, historically, makes this a good time to buy. Don't expect miraculous growth with a diversified insurance company, but do expect to sleep well at night. I'd suggest giving White Mountains a closer inspection.
Add these companies to your personalized Watch List to keep up on the latest news with each company:
• Add Novavax to My Watch List.
• Add Capstone Turbine to My Watch List.
• Add White Mountains Insurance Group to My Watch List.