Datasets:

nbettencourt
/

SC454k-formatted

Dataset card Data Studio Files Files and versions Community

Split (1)

train · 363k rows

text stringlengths 370 1.06M	weighted_avg_720_hrs float64 0 1.03k
Symbol: SLP Security: Simulations Plus, Inc. Related Stocks/Topics: TSEM\|Markets\|AEHR\|CTHR\|EMMS\|M\|NEWT\|CHCI\|MGIC\|ACLS\|MNDO\|PATK Title: Hot Penny Stocks to Buy - 24 Bargains Under $3 Type: News Publication: Louis Navellier Publication Author: Unknown Date: 2010-06-14 10:57:00 Article: One of my favorite [simple trading strategies](http://www.investorplace.com/experts/jeff_reeves/trading-strategies-rules-for-buying-stocks.html) for individual investors is to put your retirement money in a growing stock. That sounds pretty straightforward, but many investors quickly realize it's not as simple an investing strategy as it seems - especially when it comes to finding hot penny stocks to buy now. After all, many of the big-name stocks to buy that you hear about every day are massive blue chips that have already seen their biggest growth. And some of the penny stocks that are small up-and-comers are aggressive, risky investments that could cost you everything.So how do you find growing stocks - and specifically for smaller investors, the best penny stocks to buy? My advice to you is to look closely at the numbers. That means taking a hard look at earnings, sales and estimates for each investment you think is worthy of your retirement money. Related Article: [ETF Funds](http://www.investorplace.com/etf-advice/etf-exchange-traded-fund-investment-strategy-bond-investing-claymore-bulletshares.html) - The Best Way to Play Bonds Take one of my favorite penny stocks to buy, Antares Pharma Inc. ([AIS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AIS&selected=AIS)) ). This penny stock is a leading healthcare equipment company that focuses on self-injection pharmaceutical products and technologies, and topical gel-based products. Though the company is not yet profitable, it has narrowed its loss in each of the last three quarters and has met or exceeded Wall Street expectations in each of these periods. That's a sign of positive momentum for this penny stock. Also worth noting is that investors everywhere have been snatching up AIS stock - with shares up a whopping 57% year-to-date! (By the way, antares was one of my favorite [penny stocks to buy](http://www.investorplace.com/experts/louis_navellier/articles/penny-stocks-to-buy-investment-sirius-xm-siri-stock-tsem-tower-semiconductor-tiii-igoi-hpol-newt-drj-ais-imos-lmlp.html) last week, too)Related Article: [Asset Bubbles](http://www.investorplace.com/experts/ed_elfenbein/asset-bubble-investment-amazon-amzn-ebay-yahoo-yhoo-stock.html) - Past, Present and Future Another great penny stock to buy is apparel manufacturer Joes Jeans ([JOEZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JOEZ&selected=JOEZ)) ). JOEZ stock is up more than +70% year-to-date thanks to strong earnings and sales. Despite its premium clothing with expensive prices, Joes Jeans has turned a quarterly profit in each of the last four periods - including fourth-quarter profit that topped Wall Street estimates by 400%! That's earnings growth you can take to the bank, making JOEZ a great penny stock to buy now. Related Article: [Target vs Walmart](http://www.investorplace.com/experts/jim_woods/target-tgt-walmart-wmt-stock-earnings-buy-sell-same-store-sales.html) - Which Retail Stock is Better? Finally, let's look at Tower Semiconductor ([TSEM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TSEM&selected=TSEM)) ). The stock is up +51% year-to-date, and is benefitting from a new tech boom as consumers continue to snatch up high-tech electronics even though other areas of spending are lagging. TSEM's 1Q earnings report topped expectations by 366%, and the semiconductor stock has seen a number of upwards revisions in recent weeks to next quarter's numbers. That means yet another impressive earnings surprise could be in the works as Tower Semiconductor keeps raising the bar. (P.S. I also highlighted [Tower Semiconductor](http://www.investorplace.com/experts/louis_navellier/articles/tower-semiconductor-tsem-penny-stock-to-buy-investment.html) last week as a great penny stock to buy. It's up +7% in the last five trading days, proving I made a pretty good call!)Related Article: Check Out My Top 3 [Semiconductor Stocks to Buy](http://www.investorplace.com/experts/louis_navellier/articles/tech-stock-picks-semiconductor-cree-issi-integrated-silicon-volterra-vltr.html)You get the idea from these three examples. As you can see, following the numbers provides the clearest reasons to buy stocks. That goes for big blue chips, but also for penny stocks too. And when you're searching for the best low-priced penny stocks to buy, having concrete numbers is invaluable.To help you build a portfolio full of some growing penny stocks, check out these 24 picks that were all trading at less than $3 as of this morning's opening bell.As of this writing, Louis Navellier did not own a position in any of these stocks in personal or client portfolios. ****Related Articles: - [Apple iPhone 4 to Debut at Walmart](http://www.investorplace.com/experts/jeff_reeves/apple-iphone-walmart-sales-aapl-google-android-goog-aapl-wmt.html) - How much do you know about [dividend stock investing](http://www.investorplace.com/dividend-stocks/dividend-stock-investing-quiz-part11.html) ? Find out in a quick, free quiz! - [Dell SEC settlement](http://www.investorplace.com/experts/paul_ausick/articles/dell-computer-sec-investigation-settlement-intel-intc-advanced-micro-devices-amd.html) - Stock reserves $100 million for case Stock Price 4 days before: 2.12132 Stock Price 2 days before: 2.12659 Stock Price 1 day before: 2.12131 Stock Price at release: 2.09881 Risk-Free Rate at release: 0.0002	2.52882
Symbol: NR Security: Newpark Resources, Inc. Related Stocks/Topics: Markets\|CRNT Title: Monday Winners: Ceragon Networks, Newpark Resources and YRC Worldwide Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-06-14 12:08:00 Article: Among the biggest winners in Monday's early trading are Ceragon Networks (Nasdaq: CRNT) , YRC Worldwide (Nasdaq: YRCW) and Newpark Resources ([NR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NR&selected=NR)) ) . Ceragon Networks' Slump comes to an End Analysts at Merriman Curhan and Morgan Joseph are either lucky or smart. Both firms just boosted Ceragon Networks (Nasdaq: CRNT) from "neutral" to "buy," just as the provider of wireless telecom equipment secured a solid $9 million new order from the Philippines. Little-known Ceragon has built an impressive track record in emerging markets such as the Philippines and India, helping those countries' major telecom operators upgrade their wireless networks to handle advanced, high-speed data communications. The company is also a key supplier to Clearwire (Nasdaq: CLWR) , which is building a high-speed mobile network in the United States.In the past few quarters, the company posted solid results and boosted sales at a respectable clip. Yet its shares have taken a big hit in this sell-off, and the price-to-earnings ratio (P/E) on projected 2011 EPS has fallen from 20 to 12 in just the past three months, even as per-share profits are expected to grow more than +40% next year. This morning's order from the Philippines increased the likelihood that the projected growth forecasts will be met.Part of the recent sell-off in shares is attributable to a slowdown in orders from Clearwire, and that could persist into the June quarter as well, as Clearwire works off its inventory of Ceragon equipment. Orders and sales to this key customer could rebound by the September quarter, boosting the still-growing international business. As an added kicker, $92 million (37%) of the company's market value is held in its cash balance. Action to Take --> Investors should prepare for some noise out of the June quarters, but shares are undeniably cheap based on the mid-term and long-term view. Potential second-quarter weakness is likely already factored into the stock, and can be bought at these levels, even after Monday's gains.-------------------------------------Truckers set to turn Up It's been a forgettable few years for truck-based freight carriers. The weak economy hurt both volumes and pricing, turning an industry with a history of solid profits into a money-loser. Rail-based freight carriers turned the screws further, aggressively pricing their services to levels that made it even harder for the truckers to compete. Adding insult, union-negotiated wage rates made it harder to bring down costs, as we noted in our look late last month at Arkansas Best (Nasdaq: ABFS) . But a long-awaited turnaround may just be beginning. ABFS's rival, YRC Worldwide (Nasdaq: YRCW) , which had a near-brush with bankruptcy, just announced that volumes are rising, operating profits will be in the black in the second quarter, and lenders have given the company even more wiggle room. That's good for a +10% jump in Monday trading. Barring another economic slowdown, YRC will not likely have to face a bankruptcy judge. But management notes that the balance sheet remains precarious and will need a little more support in coming months. Action to Take --> We suggested to investors in late May that shares of Arkansas Best appeared very oversold, and that thesis remains intact. But shares of YRCW simply carry too much risk, especially with concerns that any economic growth will remain muted. To the extent that the economy does slip back, and the weakest hands such as YRC flush out, that could be an opportunity for healthier rivals such as Arkansas Best.-------------------------------------Newpark Resources Higher on Cramer Comments Shares of Newpark Resources ([NR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NR&selected=NR)) ) shot up +10% at the market open, and have been rising further from there. Newpark provides a wide range of products and services to drillers, including waste disposal services. The shares' ascent is due to bullish comments from CNBC's Jim Cramer.In this particular instance, it appears that Mr. Cramer needed to do more homework. Newpark's waste management services entail the waste that is typically generated from regular drilling activity, and not from a massive clean-up as we are now seeing along the Gulf. In fact, Newpark may take a near-term hit to its business as drilling activity in the region slows down. Action to Take --> If history is any guide, shares will give back much of Monday's gain once investors go past Mr. Cramer's cursory research. Newpark is indeed an attractive stock -- in the long-term -- but not for the reasons that the stock evangelist believes. If you like this name, wait for full clarification on how much the drilling slowdown will affect its business. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanStaff WriterStreetAuthorityDisclosure: David Sterman does not own shares of any security mentioned in this article. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 5.97376 Stock Price 2 days before: 6.84356 Stock Price 1 day before: 6.86078 Stock Price at release: 6.99926 Risk-Free Rate at release: 0.0002	7
Symbol: OPY Security: Oppenheimer Holdings Inc. Related Stocks/Topics: DELL\|Markets\|JEF\|GS\|IPO\|INTC\|RJF\|SCO\|ORCL\|BX\|JPM\|SF Title: The Pain and Potential Gain from a Dead IPO Market Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-06-15 01:31:00 Article: The initial public offering ([IPO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IPO&selected=IPO)) ) market is now in lockdown. Frozen. Shuttered. Throw away the key. With all the turmoil roiling the markets, more than 30 companies have had to step away from the IPO starting line in the last six weeks. Even if the market turned up sharply right away, it would take some time for bankers to prime the pump to get these deals back on the docket. And if the market remains a bit nerve-wracking, these still-private companies may stay that way for an extended time. Bankers Lament The IPO shutdown comes as a real disappointment for investment banks, as these deals, with their 7% commissions, generate boatloads of profits. That's often how these banks justify carrying teams of research analysts, who otherwise would not pull their weight in an era when many clients trade through electronic networks for almost nothing. In the past, these active clients would send large trades at five cents a share -- known as "the nickel business" -- to firms in exchange for analyst research and a cut of promising IPOs. These days, analyst research doesn't hold the same respect with clients, and without the IPO activity to at least provide some value, the relationship between sell-side departments (analyst teams at investment banks) and buy-side firms (the hedge funds and mutual funds that serve as clients) is even further frayed.The timing is unfortunate. A number of investment banks have just been getting back on their feet in recent quarters, and analysts will likely need to start lowering their profit forecasts if the IPO market remains depressed. For the big banks like Goldman Sachs ([GS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GS&selected=GS)) ) or JP Morgan ([JPM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JPM&selected=JPM)) ) , investment banking fees and research trading commissions are only a small part of their overall business. But for smaller firms such as Jefferies ([JEF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JEF&selected=JEF)) ) , Stifel Financial ([SF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SF&selected=SF)) ) , Oppenheimer ([OPY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=OPY&selected=OPY)) ) and Raymond James ([RJF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RJF&selected=RJF)) ) , investors may need to brace for weaker-than-expected results. Good News for Buyers Companies that are pushed away from the IPO gate can stay away only so long. Many times they are funded with the notion that their original investors will soon be able to recoup their investment. And if these backers, such as venture capital (VCs) firms, are on the hook to keep these companies going, they may look for alternatives. When this has happened in the past, these VCs have reached out to private equity firms like KKR Financial ([KFN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KFN&selected=KFN)) ) or the Blackstone Group ([BX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BX&selected=BX)) ) to take the private companies off of their hands.But if these stalled IPOs are in the high-tech field, then the cash-rich large public players also field phone calls. In past cycles, when the IPO market was closed, Cisco Systems (Nasdaq: CSCO) , Oracle (Nasdaq: ORCL) , Intel (Nasdaq: INTC) , EMC ([EMC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EMC&selected=EMC)) ) and others have pounced on small private names, often at fire-sale prices. Action to Take --> There is so much to like about tech stocks like these right now. Many have very strong balance sheets, which can be used to buy back stock while the market is slumping, or used to acquire these almost-IPOs. Moreover, tech spending is now solidly rising, if recent earnings reports are any indication. I am a big fan of Dell Inc. (Nasdaq: DELL) , thanks to its balance sheet-led downside support, but all of the above-noted tech names hold appeal. Conversely, look to trim positions in investment banks if the IPO market doesn't re-open before the next earnings season in July. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanStaff WriterStreetAuthorityDisclosure: David Sterman owns shares of Neither StreetAuthority and LCC nor the editor hold positions in any securities mentioned in this report.. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 25.781 Stock Price 2 days before: 26.0363 Stock Price 1 day before: 26.0748 Stock Price at release: 26.5012 Risk-Free Rate at release: 0.0003	25.2584
Symbol: CAL Security: Caleres, Inc. Related Stocks/Topics: SPY\|Markets\|UNG\|XAL\|SPX\|DAL Title: Options Coach: How to Trade Index and ETF Options Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-06-15 02:30:00 Article: When investors first enter the realm of options trading, they typically stick to buying vanilla puts and calls on individual stocks. However, stocks aren't the only optionable entities on Wall Street. Whether you're bullish on utilities or bearish on regional banks, there's a good chance that you can find an index or exchange-traded fund ([ETF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ETF&selected=ETF)) ) that aligns with your trading ideas. What's more, these vehicles allow you to diversify your portfolio, without loading up on a multitude of stocks or options, creating a low cost way to reduce risk.But, before we get ahead of ourselves, let's back up a bit. An index is a statistical compilation of several stocks that are related in some manner into one number. For example, the S&P 500 Index ([SPX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SPX&selected=SPX)) ) includes a broad swath of U.S. equities, but a stock must maintain a specific market capitalization and liquidity to garner inclusion, among other deciding factors. [why not trade ETF options?](http://www.schaeffersresearch.com/images/commentary/2009/090617sywtto1.gif) Meanwhile, an exchange-traded fund (more commonly referred to as an ETF) is an investment vehicle that contains a pool of securities representing a sector or specific index. ETFs are composed like mutual funds, but they trade just like stocks.In other words, both indexes and ETFs represent the performance of a particular group or sector of the stock market. Whether you're interested in commodities, home builders, defense stocks, or alternative energy, I guarantee you can find an index or ETF that's focused on that specific sector.So, how do you play ETF or index options? Just as you would any other option. Let's say that you anticipate a short-term rally in the airline sector. You could always buy stock in Delta Air Lines ([DAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DAL&selected=DAL)) ) and hope for the best -- but what if Delta's entire fleet is spirited away by pirates in the dead of night, and the shares tank as a result? You'd miss out on the entire airline-sector rally! [providing a buffer](http://www.schaeffersresearch.com/images/commentary/2009/090617sywtto3.gif) This is where index and ETF options come in handy -- if you're bullish (or bearish) on a given sector, but you want to protect yourself against weakness (or strength) in any one particular security within that group. In this instance, you could purchase a call option on the AMEX Airline Index ([XAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=XAL&selected=XAL)) ).By placing your bet on XAL, you'll gain exposure to sector heavyweights such as Delta, UAL Corp. ([UAUA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UAUA&selected=UAUA)) ), Continental Airlines ([CAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CAL&selected=CAL)) ), and US Airways ([LCC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LCC&selected=LCC)) ). If the group rallies as you expect, the use of a call option will maximize your profits. Ideally, the group's overall performance will effectively offset any outliers -- in the above worst-case scenario, that would be the hypothetically tanking shares of Delta. And even if the sector fails to soar, your only loss on the position will be the premium you paid to enter the option trade. [way to hedge](http://www.schaeffersresearch.com/images/commentary/2009/090617sywtto4.gif) You can also use ETF and index options to inexpensively hedge your stock holdings, your other option positions, or even your entire portfolio. For example, let's say you've decided to short a specific stock within the natural gas sector. However, you're concerned that rising natural gas prices could throw a wrench in your trading strategy. In order to hedge against this possibility, you could purchase a call option on the United States Natural Gas Fund ([UNG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UNG&selected=UNG)) ). In this manner, you can take part in a sector-wide rally, and any gains in the long option will help to offset potential losses on the stock you sold short. Think of the premium you pay for the UNG call as a car insurance payment -- you hope you won't need it, but it's there just in case.Alternatively, let's say that you anticipate a period of short-term weakness in the broader equities market. In order to buffer some of the losses in your stock portfolio, you could purchase put options on the S&P Depository Receipts ([SPY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SPY&selected=SPY)) ). This ETF tracks the performance of the broader market as represented by the S&P 500 Index, so a SPY put option would allow you to capitalize on weakness in the market as a whole.Overall, there's no reason not to trade ETF and index options. There are a variety of uses -- in addition to straightforward speculation, you can use them to hedge, or in tandem with other option plays as part of a pairs trade. There's no time like the present to familiarize yourself with these endlessly useful trading tools.Schaeffer's Investment Research Inc. offers real-time option trading services, as well as daily, weekly and monthly newsletters. Please click [here](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=M&CODE=SIRG07D) to sign up for free newsletters. The SchaeffersResearch.com Web site provides financial news, education and commentary, plus stock screeners, filters and many other tools. Founder Bernie Schaeffer is the author of the groundbreaking book, The Option Advisor: Wealth-Building Techniques Using Equity & Index Options . All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 22.5467 Stock Price 2 days before: 23.7903 Stock Price 1 day before: 23.8202 Stock Price at release: 24.5255 Risk-Free Rate at release: 0.0003	24.1943
Symbol: JBLU Security: JetBlue Airways Corporation Related Stocks/Topics: LUV\|Markets\|CAL\|AMR\|XAL\|DAL Title: These Surprising Stocks are Ignoring the Market's Gravity Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-06-15 04:28:00 Article: As far as many investors are concerned, airline stocks should be avoided like the plague. Every time the economy hits a rough patch, these heavily-indebted companies look as if they're lunging toward bankruptcy. Countless investors have had to dump airline stocks after losing most of their investment, vowing "never again."Truth is, this whole industry makes for lousy investing but great trading. At the bottom of the economic crisis, for example shares of United Airlines parent UAL (Nasdaq: [UAUA](http://streetauthority.com/stocks/UAUA) ) fell to $3 as the company faced open-ended losses. Shares are up +800% since then. If history is any guide, share prices will fall sharply again once investors are spooked by a slowing economy or a spike in oil prices. And after that, shares will again post a sharp rebound. You just have to play the cycle. Buy-and-hold doesn't work here. The swings may not be as wild as in the past, though, as carriers have learned to live with less debt and lower costs -- ingredients crucial to surviving a downturn. Right now, the airline industry is benefiting from many tailwinds, and the AMEX Airline Index (AMEX: [XAL](http://streetauthority.com/stocks/XAL) ) has risen +15% since early May, even as the rest of the market was slumping. During the past five trading sessions, the [index](http://investinganswers.com/term/index-971) has risen +10%, the best gain of any sector. Gains are coming from a combination of good passenger statistics from the airlines, and positive analyst comments. Importantly, this is an industry on which you need to do your own research. The analysts that follow the airline stocks have a tendency to only slowly update their outlooks and forecasts, even as salient data come in much more frequently. For example, the price of oil may fall from $80 to $70 a barrel, but many analysts won't let that important factor alter their forecasts until the next time quarterly results are delivered. Not to bash the analysts -- they are a bright group with deep industry knowledge -- but their stock-picking record has not been stellar.So how can you do your own research? By keeping tabs on the following major factors. If you do, you'll have a sense of when to buy or sell these stocks before the analysts change their ratings: - Oil prices. Jet fuel is a bit more expensive than gasoline, but its pricing largely correlates with the direction of oil prices. Sharp moves up or down in the price of oil are a big factor. Airlines start to feel real pain as oil prices rise, but they don't always benefit when prices fall. That's because falling oil prices are often related to concerns that global economic activity may be cooling. Generally speaking, oil prices between $60 and $80 a barrel represent an ideal range for airlines as these levels signal a healthy economy yet manageable fuel costs. As a personal rule of thumb, I would never buy airline stocks when oil prices are outside of that range. - Hedging. But that logic does not apply to the carriers that are wise enough to lock in jet fuel prices when they are lower. If you have the time, peruse the recent SEC filings where carriers discuss how much of their future fuel needs are hedged, for how long and at what price. Rising or falling prices affect different air carriers to varying degrees. Earlier this spring, an analyst upgraded U.S. Airways (NYSE: [LCC](http://streetauthority.com/stocks/LCC) ) when fuel prices dropped. U.S. Airways had neglected to [hedge](http://investinganswers.com/term/hedge-345) , so it stood the most to gain from oil's fall. - Domestic vs. international. A clear dichotomy has emerged in the global travel market. The U.S. market is quickly improving, as more seats are filled at higher prices. Year-over-year profit comparisons for domestic-focused carriers such as Southwest (NYSE: [LUV](http://streetauthority.com/stocks/LUV) ) , JetBlue (NYSE: [JBLU](http://streetauthority.com/stocks/JBLU) ) and U.S. Airways are going to look very good in the June quarter. If the U.S. economy keeps rebounding and unemployment drops over the next year or two, then profits should spike well higher from here for these names. Notably, their bigger rivals have cut back on many routes, so competition is less intense. The major carriers such as AMR (NYSE: [AMR](http://streetauthority.com/stocks/AMR) ) , the parent of American Airlines, and Delta (NYSE: [DAL](http://streetauthority.com/stocks/DAL) ) could be hurt by further economic troubles in Europe, though their U.S. business should look quite good. - Merger mania. Delta 's decision to merge with Northwest has proved to be a smart move, as excess costs and overlapping routes were pared. Now, investors expect to see the same synergies result from UAL's merger with Continental (NYSE: [CAL](http://streetauthority.com/stocks/CAL) ) . The deal is not only good for those two carriers, but for the whole industry, as it leads to more rational pricing schemes. It also can be a boost to the low-cost carriers like Southwest and JetBlue that look to build [market share](http://investinganswers.com/term/market-share-778) in areas where the big carriers have pulled back too much. Action to Take --> Despite the recent move, airline stocks still look very attractive -- if you believe that the economy will keep improving. But know that these shares could sharply retrench if oil prices rise or the economy loses steam. I remain a fan of Southwest and JetBlue, as they have proven they can avoid losses in the bad times and still post solid profits in the good times.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanStaff WriterStreetAuthorityDisclosure: David Sterman does not own shares of any security mentioned in this article. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 6.26729 Stock Price 2 days before: 6.7353 Stock Price 1 day before: 6.74495 Stock Price at release: 6.70422 Risk-Free Rate at release: 0.0003	6.22099
Symbol: CAL Security: Caleres, Inc. Related Stocks/Topics: LUV\|Markets\|AMR\|XAL\|JBLU\|DAL Title: These Surprising Stocks are Ignoring the Market's Gravity Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-06-15 04:28:00 Article: As far as many investors are concerned, airline stocks should be avoided like the plague. Every time the economy hits a rough patch, these heavily-indebted companies look as if they're lunging toward bankruptcy. Countless investors have had to dump airline stocks after losing most of their investment, vowing "never again."Truth is, this whole industry makes for lousy investing but great trading. At the bottom of the economic crisis, for example shares of United Airlines parent UAL (Nasdaq: [UAUA](http://streetauthority.com/stocks/UAUA) ) fell to $3 as the company faced open-ended losses. Shares are up +800% since then. If history is any guide, share prices will fall sharply again once investors are spooked by a slowing economy or a spike in oil prices. And after that, shares will again post a sharp rebound. You just have to play the cycle. Buy-and-hold doesn't work here. The swings may not be as wild as in the past, though, as carriers have learned to live with less debt and lower costs -- ingredients crucial to surviving a downturn. Right now, the airline industry is benefiting from many tailwinds, and the AMEX Airline Index (AMEX: [XAL](http://streetauthority.com/stocks/XAL) ) has risen +15% since early May, even as the rest of the market was slumping. During the past five trading sessions, the [index](http://investinganswers.com/term/index-971) has risen +10%, the best gain of any sector. Gains are coming from a combination of good passenger statistics from the airlines, and positive analyst comments. Importantly, this is an industry on which you need to do your own research. The analysts that follow the airline stocks have a tendency to only slowly update their outlooks and forecasts, even as salient data come in much more frequently. For example, the price of oil may fall from $80 to $70 a barrel, but many analysts won't let that important factor alter their forecasts until the next time quarterly results are delivered. Not to bash the analysts -- they are a bright group with deep industry knowledge -- but their stock-picking record has not been stellar.So how can you do your own research? By keeping tabs on the following major factors. If you do, you'll have a sense of when to buy or sell these stocks before the analysts change their ratings: - Oil prices. Jet fuel is a bit more expensive than gasoline, but its pricing largely correlates with the direction of oil prices. Sharp moves up or down in the price of oil are a big factor. Airlines start to feel real pain as oil prices rise, but they don't always benefit when prices fall. That's because falling oil prices are often related to concerns that global economic activity may be cooling. Generally speaking, oil prices between $60 and $80 a barrel represent an ideal range for airlines as these levels signal a healthy economy yet manageable fuel costs. As a personal rule of thumb, I would never buy airline stocks when oil prices are outside of that range. - Hedging. But that logic does not apply to the carriers that are wise enough to lock in jet fuel prices when they are lower. If you have the time, peruse the recent SEC filings where carriers discuss how much of their future fuel needs are hedged, for how long and at what price. Rising or falling prices affect different air carriers to varying degrees. Earlier this spring, an analyst upgraded U.S. Airways (NYSE: [LCC](http://streetauthority.com/stocks/LCC) ) when fuel prices dropped. U.S. Airways had neglected to [hedge](http://investinganswers.com/term/hedge-345) , so it stood the most to gain from oil's fall. - Domestic vs. international. A clear dichotomy has emerged in the global travel market. The U.S. market is quickly improving, as more seats are filled at higher prices. Year-over-year profit comparisons for domestic-focused carriers such as Southwest (NYSE: [LUV](http://streetauthority.com/stocks/LUV) ) , JetBlue (NYSE: [JBLU](http://streetauthority.com/stocks/JBLU) ) and U.S. Airways are going to look very good in the June quarter. If the U.S. economy keeps rebounding and unemployment drops over the next year or two, then profits should spike well higher from here for these names. Notably, their bigger rivals have cut back on many routes, so competition is less intense. The major carriers such as AMR (NYSE: [AMR](http://streetauthority.com/stocks/AMR) ) , the parent of American Airlines, and Delta (NYSE: [DAL](http://streetauthority.com/stocks/DAL) ) could be hurt by further economic troubles in Europe, though their U.S. business should look quite good. - Merger mania. Delta 's decision to merge with Northwest has proved to be a smart move, as excess costs and overlapping routes were pared. Now, investors expect to see the same synergies result from UAL's merger with Continental (NYSE: [CAL](http://streetauthority.com/stocks/CAL) ) . The deal is not only good for those two carriers, but for the whole industry, as it leads to more rational pricing schemes. It also can be a boost to the low-cost carriers like Southwest and JetBlue that look to build [market share](http://investinganswers.com/term/market-share-778) in areas where the big carriers have pulled back too much. Action to Take --> Despite the recent move, airline stocks still look very attractive -- if you believe that the economy will keep improving. But know that these shares could sharply retrench if oil prices rise or the economy loses steam. I remain a fan of Southwest and JetBlue, as they have proven they can avoid losses in the bad times and still post solid profits in the good times.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanStaff WriterStreetAuthorityDisclosure: David Sterman does not own shares of any security mentioned in this article. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 22.5467 Stock Price 2 days before: 23.7903 Stock Price 1 day before: 23.8202 Stock Price at release: 24.5255 Risk-Free Rate at release: 0.0003	24.1943
Symbol: LZB Security: La-Z-Boy Incorporated Related Stocks/Topics: Markets\|WMT\|BBY Title: Tuesday Losers: Callaway Golf, La-Z-Boy and Best Buy Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-06-15 11:40:00 Article: Among the biggest losers in Tuesday's early trading are Callaway Golf ([ELY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ELY&selected=ELY)) ) , La-Z-Boy ([LZB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LZB&selected=LZB)) ) and Best Buy ([BBY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BBY&selected=BBY)) ) . Golf and the Economy Shares of Callaway Golf ([ELY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ELY&selected=ELY)) ) are hitting a new low for the year this morning, down more than -7%, after the golf equipment maker cited a weak global economy for flat year-over-year quarterly results. Analysts had been expecting Callaway to post robust year-over-year comparisons. The timing is bad; the second quarter is Callaway's seasonally strongest, from a sales and profit perspective. The company historically loses money in the third and fourth quarters as golf pro shops and sporting goods stores wind down their inventories and hold off on new purchases.It's hard to know whether the tepid results are the result of a weak economy, or simply that the number of golfers is declining. The sport has always had a relatively high age demographic, and needs to keep pulling in new younger golfers to replace the ones that are retiring from the game. It's not clear that the industry has been successful, as more courses are being closed than opened these days. Action to Take --> In four of the past six years, Callaway has either lost money or earned very little. Most investors remained a fan of the stock simply based on ever-present buyout rumors. This shortfall is going to once again lead to rumors that Callaway Golf is up for sale. Shares could get a rebound from Tuesday's sell-off on that speculation. One day, Callaway may be indeed be bought, but not likely in the near-term. No need to look for value in these beaten-down shares.-------------------------------------Marked Down at Best Buy There are only a small group of companies that should always be on your radar. These are usually very well-managed, dominate their market, generate lots of cash, and have a very resonant brand with consumers. And when these companies post the occasional weak quarter, shares can take a hit, creating one of the few times every year when shares are marked down and sport lower valuations.That's the chance in Best Buy ([BBY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BBY&selected=BBY)) ) today. The electronics retailer announced Tuesday evening that it had missed per-share profit estimates by $0.11, sending shares down more than -6% in Tuesday trading. Consumers remain cautious, shopping for less expensive electronic devices. That's crimping margins, and explains why bottom-line results were even weaker than top-line results. But short-term investors may be overlooking the fact this retailer has little direct competition now that Circuit City is gone, which explains the company's belief that it boosted market share by 100 basis points from a year ago. Other retailers such as Wal-Mart ([WMT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WMT&selected=WMT)) ) are targeting the niche, and could create a challenge from a pricing perspective, but Best Buy remains the go-to brand as far as electronics shoppers are concerned. Action to Take --> Best Buy's management stood by full-year earnings guidance, implying that subsequent quarters will be more robust to offset the recent shortfall. That may be too optimistic, especially if they are counting on a revived consumer. So be prepared for another challenging quarter or two this year. But shares are quite attractive, as this is a dominant company now trading for less than 10 times projected (February) 2012 profits.-------------------------------------La-Z-Boy: Selling on the News Looking at the recent stock action, investors bid up shares of La-Z-Boy ([LZB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LZB&selected=LZB)) ) on expectations that the eponymous furniture maker would deliver solid quarterly results, highlighted by lower expenses and a sharp year-over-year profit gain. That's just what they got when results were released Monday night, but shares are off a heady -16% in Tuesday trading. A classic case of "buy on the rumor, sell on the news."As is the case with Best Buy, this is a long-term survivor that has managed to thrive even as other furniture makers mimic its offerings. The cost cuts noted above are turning this into an impressive profit story, as returns are expected to rise more than 80% in the current fiscal year that ends next April.Further profit gains from there are simply a function of consumer spending. If past economic cycles are any guide, sales will likely rebound at a +5% to +7% pace in subsequent years (through a combination of modest volume gains and small price hikes). Per-share profits could expand in the low double-digits. With shares trading at around 10 times this year's profits, that's a bargain. Action to Take --> These shares may be dead money for a awhile as the consumer remains in a funk, but the long-term outlook is quite appealing in relation to today's sharp sell-off.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanStaff WriterStreetAuthorityDisclosure: David Sterman does not own shares of any security mentioned in this article. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 11.869 Stock Price 2 days before: 12.4289 Stock Price 1 day before: 12.7202 Stock Price at release: 10.2252 Risk-Free Rate at release: 0.0003	7.523
Symbol: DO Security: Diamond Offshore Drilling, Inc. Related Stocks/Topics: KSS\|Personal Finance Title: Get Paid While You Wait For Solid Investments To Rebound Type: News Publication: Investing Answers Publication Author: Unknown Date: 2010-06-15 12:15:00 Article: The S&P 500 dropped -8.2% in May, leaving investors with some tough decisions to make in June. The downdraft pushed many solid investments into the loss column, year-to-date.If you are sitting with a loss on a fundamentally sound investment, what can you do? Here are some options:Buy You could buy more shares now and reduce your [cost basis](http://investinganswers.com/term/cost-basis-1037) . This, of course, isn't the easiest thing to do. If the market continues to drift downwards -- or even sideways -- over the short-term, you'll have that much more invested in a non-performing asset. **SellBite the bullet and sell at a loss. Then, sit on the sidelines and wait for some positive movement and try to pick up the stock on the upswing. Of course this strategy isn't without its issues.If the stock starts to move within 30 days of your sale, there might be some tax implications if you buy it back. If you need to wait longer than 30 days to avoid the [wash](http://investinganswers.com/term/wash-862) rule, you might miss out on some nice gains. (Read this [explanation of the wash rule](http://www.investinganswers.com/term/wash-sale-867) ) Or you could just invest in something else. But if this is fundamentally the same company as it was when you bought it, why wouldn't it still be on your short list to buy?HoldJust hold on to the stock and ride it out. You'll avoid spending any more money on trading commissions. And you won't miss any price [appreciation](http://investinganswers.com/term/appreciation-1107) on the upswing. Of course there is the possibility we are heading into a sideways-trading market -- so you might spend a long summer staring at your losses. Or…You Could Get Paid to HoldEvery day, investors get paid to hold stocks in their portfolios. In fact, it's a tried and true investment strategy employed by retirees and income investors.How do they do it? They write -- or sell -- covered call options. When someone buys a [call option](http://investinganswers.com/term/call-option-950) , they pay a premium to buy the right to purchase a stock at a specified price, called the strike price. They buy the right, but are not obligated, to go though with the sale. In fact, most options are bought, but not exercised, by the time they expire.So to make a little extra income off of a holding, an investor can sell a call option and collect the premium. When the call writer owns the underlying stock, it is called a "covered call." The vast majority of time, the call option is not exercised, and the investor keeps the underlying shares. Investors can then write another covered call to collect even more income. If the call is exercised, the call writer has to surrender the shares at the specified price.Here's an example:Let's say you bought 100 shares of the department store chain Kohl's ([KSS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KSS&selected=KSS)) ) on January 5th for $54.00. The store seemed busy over the holidays and you believed the performance of the retail sector was going to be rosier than expected. And to some extent, you were right. Your position gained throughout the year -- until May came along. Today, it is hovering at about $51 a share.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) You still very much like Kohl's outlook and would like to hold on to the stock. But May's retail sales were just released and were lower than expected -- down -1.2%. So it might be a while before the market bids this stock back up to your breakeven price.In the meantime, you could write a call on Kohl's at a strike price of $55.00 and collect a $2.00 a share premium. The option would expire in October.By collecting the $2.00 per share call premium, you are now breakeven at $52 a share -- instead of your original purchase price of $54 a share. And if the option never gets exercised, you'll keep the shares and collect even more income by writing subsequent call options. If the share price runs past $55, you'll have to surrender you shares, but at a +5.7% profit.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Before the call option is exercised, you can buy a call option at any for the same strike price and [expiration date](http://investinganswers.com/term/expiration-date-763) to erase the trade. Options are offered at many different strike prices above and below the current market price. They also have different expiration dates. It might take a little shopping around to find the right combination that fits your needs and goals.With the tough decisions investors are facing this month, it's nice to have another choice -- one that can turn a loss into a profit -- or a long unprofitable wait into to an income-producing exercise. (Read more about [options selling strategies here](http://investinganswers.com/education/options-when-sell-not-buy-1336) .)Action to Take -->** I've found two securities you can use to put this strategy into practice.1. With the oil troubles in the Gulf, shares of the offshore drilling contractor Diamond Offshore Drilling ([DO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DO&selected=DO)) ) lost -20.2% in May. The industry is holding its breath, waiting to see what new offshore drilling regulations will materialize. This could keep a lid on the share price in the near term. Right now, investors can get a $3.80 per share premium to sell a DO call option at a strike price of $66.75 a share. DO is now trading near $61 per share and the option expires in September.2. Shares of the seed and herbicide company Monsanto ([MON](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MON&selected=MON)) ) lost -19.3% of their value in May. It's been a tough year for this agribusiness powerhouse. Crop prices are low, which makes farmers less likely to spring for Monsanto's state-of-the art products. And this situation may not change until the next planting season. Right now, you can get a $2.50 per share premium to sell a call option at a strike price of $55.00 per share. MON is trading at roughly $51.25 per share and the option expires in October. Stock Price 4 days before: 60.0688 Stock Price 2 days before: 61.1 Stock Price 1 day before: 62.0916 Stock Price at release: 62.9166 Risk-Free Rate at release: 0.0003	64.4992
Symbol: CSIQ Security: Canadian Solar Inc. Related Stocks/Topics: CBOE\|Markets\|FDX\|CPI\|SPX Title: Opening View: Are DJIA, SPX Finally Emerging from Correction? Or was Tuesday a Head Fake? Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-06-16 07:57:00 Article: Both the Dow Jones Industrial Average ([DJIA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DJIA&selected=DJIA)) ) and the S&P 500 Index ([SPX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SPX&selected=SPX)) ) vaulted above their respective 200-day moving averages yesterday, giving market technicians something to crow about. For the SPX, the 200-day trendline is often considered a demarcation point between bull and bear markets. As such, continued strength above this trendline by the SPX could be a sign that we are nearing the end of a bull market correction. Such strength remains to be seen, however, as early trading is hinting that yesterday's rally may have been a bit overdone, with futures on the DJIA and SPX trading roughly 45 and 6 points below fair value, respectively. Look for the Dow to find short-term support near 10,300, or 10,200 on a steeper sell-off, while the SPX could find a floor near 1,110, or 1,090 should the decline gain momentum. Finally, the CBOE Market Volatility Index ([VIX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VIX&selected=VIX)) ) has plunged more than 30% since setting a near-term peak of 37.38 on Tuesday last week. The so-called fear index has pulled back to within striking distance of support in the 25 region, a level the VIX has not closed below since May 5.In earnings news, FedEx Corp. ([FDX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FDX&selected=FDX)) ) reported fourth-quarter earnings of $1.33 per share on revenue of $9.43 billion. Analysts were looking for earnings of $1.32 per share on sales of $9.04 billion. Looking ahead, the company said it sees first-quarter earnings of 85 cents to $1.05 per share, and fiscal 2011 earnings of $4.40 to $5 per share. Investors are not happy with the report, however, and FDX shares have dipped more than 3% in pre-market trading. Elsewhere, merger and acquisition activity from Covidien Plc ([COV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=COV&selected=COV)) ) stole early headlines. Specifically, the medical equipment firm said that it is buying Somanetics Corp. ([SMTS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SMTS&selected=SMTS)) ) for $250 million, or $25 per share. Covidien said the acquisition would broaden its product offerings and create earnings growth. The deal values Somanetics at a premium of $6.10, or 32%, over its closing price of $18.90 per share on Tuesday. Earnings Preview On the earnings front, Canadian Solar Inc. ([CSIQ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CSIQ&selected=CSIQ)) ) is slated to report its quarterly figures today. Keep your browser at [SchaeffersResearch.com](http://www.schaeffersresearch.com/) for more news as it breaks. Economic Calendar The economic calendar brings the release of weekly crude inventories today, as well as May housing starts, the May Producer Price Index ([PPI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PPI&selected=PPI)) ) and core PPI, and May industrial production data. Thursday will be chock full of economic data. Traders will get a look at initial jobless claims, the May Consumer Price Index ([CPI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CPI&selected=CPI)) ) and core CPI, the Conference Board's leading indicators index for May, and the Philadelphia Fed Index for June. Friday closes with no major economic reports. Market Statistics Equity option activity on the Chicago Board Options Exchange ([CBOE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBOE&selected=CBOE)) ) saw 1,234,698 call contracts traded on Tuesday, compared to 690,993 put contracts. The resultant single-session put/call ratio arrived at 0.56, while the 21-day moving average slipped to 0.66. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/100616ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/100616ov2.gif)The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher. [Dow, S&P and Nasdaq futures](http://www.schaeffersresearch.com/images/commentary/2010/100616ov3.gif) Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up [here](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=O&CODE=SIRG07D) for free daily delivery, straight to your inbox, before the opening bell. Overseas Trading Overseas trading has a positive bias this morning, as seven of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a gain of 0.28%. In Asia, stocks climbed after a number of successful European bond auctions eased investor concerns about the euro zone's solvency crisis. European shares edged up, extending their rally to six days. Overseas market information comes to you courtesy of [Schaeffer's Daily Bulletin](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=D&CODE=UB08FREE14) . [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/100616ov4.gif)Currencies and Commodities Sour economic news out of Europe and a little buyers' remorse following yesterday's rally is providing a bit of a safe-haven bid for the U.S. dollar this morning. What's more, news that jobless claims rose more than expected in the U.K. is weighing on the euro and the pound, providing extra lift for the greenback. Against this backdrop, the U.S. Dollar Index has risen 0.3% to 86.24 in pre-market trading. Meanwhile, gold futures are tentatively higher, gaining $1.50 to trade at $1,235.90 an ounce in London. Finally, crude futures are retreating this morning, dropping 0.37% to $77.62 per barrel on European economic concerns ahead of today's report on U.S. petroleum supplies. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/100616ov5.gif)**Unusual Put and Call Activity:For an explanation of how to use this information, check out our [Education Center](http://www.schaeffersresearch.com/schaeffersu/) topics on [Option Volume](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?ID=220#220) and [Open Interest Configurations](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?id=221) . [Unusual options activity - puts](http://www.schaeffersresearch.com/images/commentary/2010/100616ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/100616ov7.gif) [Click here for the new spring issue of SENTIMENT magazine](http://www.schaeffersresearch.com/redirect.aspx?CODE=SIRMAG10DGENERAL&PAGE=1)** All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 10.3455 Stock Price 2 days before: 10.8659 Stock Price 1 day before: 10.6771 Stock Price at release: 11.2869 Risk-Free Rate at release: 0.0006	12.9818
Symbol: SCL Security: Stepan Company Related Stocks/Topics: KIRK\|Markets Title: Cash Rich Firms That Investment Legends Might Like Type: News Publication: Validea Publication Author: Unknown Date: 2010-06-17 01:00:00 Article: We've all heard the reasons to be fearful of stocks right now -- potential spillover from the European debt crisis, questions about the housing recovery's sustainability, a burgeoning national debt and budget deficits. All of those (and more) have been highlighted pretty extensively in the media.But there are also plenty of reasons to be optimistic. And in a recent opinion piece for The Wall Street Journal, [strategist Bob Doll pointed out some particularly interesting bullish signs,](http://online.wsj.com/article/SB10001424052748703561604575282893796461472.html) . In fact, Doll (portfolio manager and chief equity strategist for fundamental equities for Blackrock) said that despite the formidable challenges the U.S. faces, "overweight positions in U.S. equities are more than warranted" right now. One of the most interesting factors Doll addresses involves corporate balance sheets. Unlike many companies in other countries, U.S. firms went into cost-cutting mode and became much more efficient when the financial crisis hit, he writes. As demand rebounds, that has them in very good shape. For nonfinancial companies, cash on the balance sheet is close to 11% of assets -- a 60-year high, he says. And he notes that, according to Citigroup, unit labor costs are falling at the fastest pace in 40 years."The importance of improving America's productivity growth can't be overstated. High productivity tends to lower unit labor costs and boost corporate profits," Doll writes. "High cash levels are already generating dividend increases, share buybacks, capital investments and M&A activity -- all extremely shareholder friendly."Doll's comments on clean, cash-rich balance sheets and increased productivity got me wondering which U.S. firms might have those characteristics, and also have shares that get approval from my Guru Strategies (each of which is based on the published approach of a different investing great). I searched for Guru Strategy-approved companies that have current ratios (current assets/current liabilities) of at least 2.0 and more net current assets than long-term debt (criteria that my Benjamin Graham-inspired method uses); free cash flow yields (free cash flow/share price) of at least 9%; and profit margins of at least 5%. I found several stocks that fit the bill. Here's a look at some of the best of the bunch. Kirkland's, Inc. ([KIRK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KIRK&selected=KIRK)) ): This Nashville-based home decor retailer has about 280 stores across 28 states. The small-cap ($414 million market cap) has a very strong balance sheet, with no long-term debt and a current ratio of 3.04. And it also has a free cash flow yield of 9.4%.Kirkland's gets approval from two of my models. The strategy I base on the writings of hedge fund guru Joel Greenblatt likes the firm's strong 16.0% earnings yield and 43.8% return on capital. The model I base on the approach of Motley Fool founders Tom and David Gardner, meanwhile, likes Kirkland's 9.0% profit margins, lack of any long-term debt, and exceptionally low 0.08 P/E/Growth ratio, a sign that this fast-growing stock is selling on the cheap. Aeropostale Inc. ([ARO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ARO&selected=ARO)) ): This New York City-based teen clothing retailer -- which has profit margins of 10.6%, a free cash flow yield of 9.1%, and a current ratio of 2.52 -- gets approval from four of models, including my Warren Buffett-based strategy. The Buffett approach looks for firms with lengthy histories of earnings growth, manageable debt, and high returns on equity (which is a sign of the "durable competitive advantage" Buffett is known to seek). Aeropostale fits the bill. Its EPS have increased in every year of the past decade; it has no long-term debt; and its 10-year average ROE is an impressive 32.9%.My Peter Lynch-based strategy, meanwhile, considers Aeropostale a "fast-grower" -- Lynch's favorite type of investment -- thanks to its impressive 33.6% long-term EPS growth rate. (I use an average of the three-, four-, and five-year EPS figures to determine a long-term rate.) Lynch famously used the P/E/Growth ratio to find bargain-priced growth stocks, and Aeropostale's 0.37 P/E/G falls into my Lynch model's best-case category (below 0.5). This model also likes that Aeropostale has no long-term debt.The Greenblatt-based approach is also keen on Aeropostale. It likes the firm's 16.1% earnings yield and 71.6% return on capital.Finally, my James O'Shaughnessy-based growth stock model likes that Aeropostale has upped earnings in each of the past five years, and that it has a key combination of characteristics -- a solid relative strength of 67 (a sign the market is embracing the stock) and a low price/sales ratio of 1.25 (a sign it hasn't become too pricey). Stepan Company ([SCL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SCL&selected=SCL)) ): This Illinois-based company makes chemicals used in consumer and industrial cleaning compounds, including detergents, shampoos, lotions, toothpastes and cosmetics. Its products are also used in agriculture, food, pharmaceuticals, resins and plasticizers, and thermal insulation products. Stepan ($686 million market cap) has a current ratio of 2.17, free cash flow yield of 15.4%, more than twice as much net current assets as long-term debt, and profit margins of 5.3%. The market has also been embracing it, part of the reason it gets high marks from my Momentum Investor strategy. The stock has a relative strength of 81, and Wall Street's appreciation of it appears to be merited: The firm has been growing earnings at a 40.8% clip over the past five years, has a 27.6% return on equity, and a reasonable debt/equity ratio of 31% -- all reasons that the Momentum model likes the stock. The Gymboree Corporation ([GYMB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GYMB&selected=GYMB)) ): Based in San Francisco, Gymboree offers play programs for children, as well as children's toys and clothing, and has close to 1,000 stores around the U.S., and in Canada. The $1.3 billion market cap firm has a free cash flow yield of more than 10%, profit margins of 10.5%, and a current ratio of 3.74.Gymboree gets approval from both my Peter Lynch- and James O'Shaughnessy-based models. My Lynch-based strategy considers the stock a "fast-grower" because of its 28.1% long-term growth rate. It likes Gymboree's 0.44 P/E/G ratio, and the fact that it has no long-term debt.My O'Shaughnessy-based growth model, meanwhile, is keen on Gymboree's solid 64 relative strength and reasonable 1.3 P/S ratio. It also likes that the firm has upped EPS in each of the past five years.Disclosure: I'm long KIRK, ARO, and GYMB. Stock Price 4 days before: 68.6927 Stock Price 2 days before: 71.8748 Stock Price 1 day before: 69.3881 Stock Price at release: 70.2732 Risk-Free Rate at release: 0.0005	69.0749
Symbol: GIII Security: G-III Apparel Group, Ltd. Related Stocks/Topics: UFI\|Markets\|SKX\|BOOT\|GIL\|DECK\|DLA\|SHOO\|LULU\|B Title: Stocks to Buy - 12 Apparel and Luxury Stocks Looking Good Type: News Publication: Louis Navellier Publication Author: Unknown Date: 2010-06-17 05:29:00 Article: Retirement investors may be surprised to learn that some of the best stocks to buy right now are actually luxury stocks and consumer discretionary plays. While it's true that overall spending isn't quite as impressive as it was before the financial crisis, many luxury stocks, clothing companies and discretionary retailers are doing big business. A consumer stock that manufacturers shoes or jeans may be a perfect fit for your [trading strategy](http://www.investorplace.com/experts/jeff_reeves/trading-strategies-rules-for-buying-stocks.html) .Take Gildan Activewear ([GIL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GIL&selected=GIL)) ), a Canada based clothing company that sells its goods to to screenprinters in North America and Europe. Gildan stock is up about 30% year-to-date in 2010, and has more than doubled in the last year. GIL stock continues to set new highs and shows no sign of slowing down.Whether you favor [high yield dividend stocks](http://www.investorplace.com/experts/jeff_reeves/high-yield-dividend-stocks-investing-strategy-trading-strategies-tgt-cat-via-aeo-casy-bcr.html) or whether you're a more aggressive investor, you simple have to take notice that this mid cap stock is making noise right now. Some investors think that breakneck growth like that can only be found in the best emerging markets. And while its true that [BRIC investments](http://www.investorplace.com/experts/richard_young/articles/emerging-market-Brazil-a-Great-BRIC-Investment.html) in Brazil, India, China and Russia can have big growth they can also come with big risk. When you buy a Western company like this, you don't have to worry about foreign currency exchange rates or political unrest. You just have to focus on the sales and the profits.Another example is Lululemon Athletica ([LULU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LULU&selected=LULU)) ), a yoga-inspired apparel company that provides trendy but functional athletic clothing. LULU stock has done even better, with 47% gains since January 1 and a whopping +236% gain the last year!And then there's one of my favorite small-cap stocks, Skechers USA ([SKX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SKX&selected=SKX)) ). This fashionable footwear company caters primarily to America's biggest spending machine -- teenagers. The stock is up +43% year-to-date and is up nearly +350% in the last 12 months! (Full disclosure: I just recommended this small-cap stock to readers of my Emerging Growth newsletter) So what gives? Why is it that discretionary stocks focused on sneakers, yoga pants and athletic socks can be doing so well if consumers are holding back on spending?Well frankly, because clothing doesn't last. Either stuff goes out of style, your kids outgrow their shoes or you just plain wear out your wardrobe. Consumers can only put off their spending for so long. Equally important is that many of the apparel stocks I'm watching right now cater to the upper echelon of consumers who just plain haven't been hurt by the recession - or at least want to keep up appearances. Take Joes Jeans ([JOEZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JOEZ&selected=JOEZ)) ), a company that sells premium jeans for a few hundred dollars as well as pricey shoes, jackets and accessories. Not exactly a retail play for the recession, right? Well JOEZ stock is up +70% in 2010 so far and has tripled in the past year. So much for a lack of consumer spending! What's more, Joes Jeans has a [PE ratio](http://www.investorplace.com/experts/jeff_reeves/pe-ratio-price-earnings-investing-101-strategy-investment-stocks.html) in the single digits right now, indiciating this stock is far from overbought.And don't think that a rising tide will lift all boats in the clothing and luxury goods sector. The bottom line is that some companies are indeed struggling because they fail to connect with consumers, whether about the price point of their products or because of bad taste.That's another reason I'm so bullish on Skechers USA. The billion-dollar-plus company offers 3,000 styles of trendy footwear in all different shapes and sizes for men, women and children. And recently, the company announced that it will begin producing a new line of Skechers-branded backpacks, messenger bags and totes. Skechers expects the bags to hit store shelves this fall - just in time for school. This stock clearly isn't resting on its laurels and wants to keep the momentum going.If you're shopping for a clothing or luxury stock to diversify your portfolio, here are my 12 favorites right now as identified by my stock rating database, Portfolio Grader:A [simple trading strategy](http://www.investorplace.com/experts/jeff_reeves/trading-strategies-rules-for-buying-stocks.html) is to follow the money -- and many of these stocks have doubled in the last year. That means if you're a momentum investor or you place a premium on growth instead of [PE ratios](http://www.investorplace.com/experts/jeff_reeves/pe-ratio-price-earnings-investing-101-strategy-investment-stocks.html) , these stocks may be right for you. Full disclosure: As of this writing, Louis Navellier was recommending Skechers in his Emerging Growthnewsletter.About Portfolio Grader: Every Sunday, renowned growth stock expert Louis Navellier runs a fundamental analysis on the top 5,000 Wall Street companies. Armed with this research, Navellier offers a rating for each company reflected as a simple letter grade, with A being "strong buy" and F being "strong sell." [Portfolio Grader's stock data is free and open to the public and can be accessed online here](http://www.investorplace.com/order/?sid=CK3108). ****Related Articles: - [Apple iPhone 4 to Debut at Walmart](http://www.investorplace.com/experts/jeff_reeves/apple-iphone-walmart-sales-aapl-google-android-goog-aapl-wmt.html) - [BRIC funds investing](http://www.investorplace.com/experts/jeff_reeves/bric-funds-brazil-investments-emerging-market-stocks.html) - Why Brazil is better than China, India and Russia - [Stocks to Buy - 3 Small Cap Semiconductor Standouts (CREE, VLTR, ISSI)](http://www.investorplace.com/experts/louis_navellier/articles/tech-stock-picks-semiconductor-cree-issi-integrated-silicon-volterra-vltr.html) Stock Price 4 days before: 26.3485 Stock Price 2 days before: 26.4229 Stock Price 1 day before: 26.4835 Stock Price at release: 26.4973 Risk-Free Rate at release: 0.0005	21.2895
Symbol: B Security: Barnes Group Inc. Related Stocks/Topics: UFI\|Markets\|SKX\|BOOT\|GIL\|DECK\|DLA\|SHOO\|GIII\|LULU Title: Stocks to Buy - 12 Apparel and Luxury Stocks Looking Good Type: News Publication: Louis Navellier Publication Author: Unknown Date: 2010-06-17 05:29:00 Article: Retirement investors may be surprised to learn that some of the best stocks to buy right now are actually luxury stocks and consumer discretionary plays. While it's true that overall spending isn't quite as impressive as it was before the financial crisis, many luxury stocks, clothing companies and discretionary retailers are doing big business. A consumer stock that manufacturers shoes or jeans may be a perfect fit for your [trading strategy](http://www.investorplace.com/experts/jeff_reeves/trading-strategies-rules-for-buying-stocks.html) .Take Gildan Activewear ([GIL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GIL&selected=GIL)) ), a Canada based clothing company that sells its goods to to screenprinters in North America and Europe. Gildan stock is up about 30% year-to-date in 2010, and has more than doubled in the last year. GIL stock continues to set new highs and shows no sign of slowing down.Whether you favor [high yield dividend stocks](http://www.investorplace.com/experts/jeff_reeves/high-yield-dividend-stocks-investing-strategy-trading-strategies-tgt-cat-via-aeo-casy-bcr.html) or whether you're a more aggressive investor, you simple have to take notice that this mid cap stock is making noise right now. Some investors think that breakneck growth like that can only be found in the best emerging markets. And while its true that [BRIC investments](http://www.investorplace.com/experts/richard_young/articles/emerging-market-Brazil-a-Great-BRIC-Investment.html) in Brazil, India, China and Russia can have big growth they can also come with big risk. When you buy a Western company like this, you don't have to worry about foreign currency exchange rates or political unrest. You just have to focus on the sales and the profits.Another example is Lululemon Athletica ([LULU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LULU&selected=LULU)) ), a yoga-inspired apparel company that provides trendy but functional athletic clothing. LULU stock has done even better, with 47% gains since January 1 and a whopping +236% gain the last year!And then there's one of my favorite small-cap stocks, Skechers USA ([SKX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SKX&selected=SKX)) ). This fashionable footwear company caters primarily to America's biggest spending machine -- teenagers. The stock is up +43% year-to-date and is up nearly +350% in the last 12 months! (Full disclosure: I just recommended this small-cap stock to readers of my Emerging Growth newsletter) So what gives? Why is it that discretionary stocks focused on sneakers, yoga pants and athletic socks can be doing so well if consumers are holding back on spending?Well frankly, because clothing doesn't last. Either stuff goes out of style, your kids outgrow their shoes or you just plain wear out your wardrobe. Consumers can only put off their spending for so long. Equally important is that many of the apparel stocks I'm watching right now cater to the upper echelon of consumers who just plain haven't been hurt by the recession - or at least want to keep up appearances. Take Joes Jeans ([JOEZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JOEZ&selected=JOEZ)) ), a company that sells premium jeans for a few hundred dollars as well as pricey shoes, jackets and accessories. Not exactly a retail play for the recession, right? Well JOEZ stock is up +70% in 2010 so far and has tripled in the past year. So much for a lack of consumer spending! What's more, Joes Jeans has a [PE ratio](http://www.investorplace.com/experts/jeff_reeves/pe-ratio-price-earnings-investing-101-strategy-investment-stocks.html) in the single digits right now, indiciating this stock is far from overbought.And don't think that a rising tide will lift all boats in the clothing and luxury goods sector. The bottom line is that some companies are indeed struggling because they fail to connect with consumers, whether about the price point of their products or because of bad taste.That's another reason I'm so bullish on Skechers USA. The billion-dollar-plus company offers 3,000 styles of trendy footwear in all different shapes and sizes for men, women and children. And recently, the company announced that it will begin producing a new line of Skechers-branded backpacks, messenger bags and totes. Skechers expects the bags to hit store shelves this fall - just in time for school. This stock clearly isn't resting on its laurels and wants to keep the momentum going.If you're shopping for a clothing or luxury stock to diversify your portfolio, here are my 12 favorites right now as identified by my stock rating database, Portfolio Grader:A [simple trading strategy](http://www.investorplace.com/experts/jeff_reeves/trading-strategies-rules-for-buying-stocks.html) is to follow the money -- and many of these stocks have doubled in the last year. That means if you're a momentum investor or you place a premium on growth instead of [PE ratios](http://www.investorplace.com/experts/jeff_reeves/pe-ratio-price-earnings-investing-101-strategy-investment-stocks.html) , these stocks may be right for you. Full disclosure: As of this writing, Louis Navellier was recommending Skechers in his Emerging Growthnewsletter.About Portfolio Grader: Every Sunday, renowned growth stock expert Louis Navellier runs a fundamental analysis on the top 5,000 Wall Street companies. Armed with this research, Navellier offers a rating for each company reflected as a simple letter grade, with A being "strong buy" and F being "strong sell." [Portfolio Grader's stock data is free and open to the public and can be accessed online here](http://www.investorplace.com/order/?sid=CK3108). ****Related Articles: - [Apple iPhone 4 to Debut at Walmart](http://www.investorplace.com/experts/jeff_reeves/apple-iphone-walmart-sales-aapl-google-android-goog-aapl-wmt.html) - [BRIC funds investing](http://www.investorplace.com/experts/jeff_reeves/bric-funds-brazil-investments-emerging-market-stocks.html) - Why Brazil is better than China, India and Russia - [Stocks to Buy - 3 Small Cap Semiconductor Standouts (CREE, VLTR, ISSI)](http://www.investorplace.com/experts/louis_navellier/articles/tech-stock-picks-semiconductor-cree-issi-integrated-silicon-volterra-vltr.html) Stock Price 4 days before: 18.085 Stock Price 2 days before: 18.2969 Stock Price 1 day before: 18.5592 Stock Price at release: 18.5066 Risk-Free Rate at release: 0.0005	16.11
Symbol: SOHU Security: Sohu.com Limited Related Stocks/Topics: Markets Title: Sohu.com (NASDAQ:SOHU) put volume spikes on selling Type: News Publication: Jud Pyle Publication Author: Unknown Date: 2010-06-17 07:41:00 Article: Roughly one month before Chinese Internet company Sohu.com Inc. (NASDAQ: SOHU ) might announce earnings figures, at least one option investor boosted put volume, most likely betting that the stock could experience limited downside throughout the rest of the year.Shares of SOHU dropped 16 cents to $43.52 during afternoon trading without any news from the company. The company released its most recent earnings figures on April 26 (the company announced earnings of 73 cents a share and beat estimates by one cent), and the market expects the next report around July 26. Heavy put volume changed hands during today's session thanks to investors who appeared to expect SOHU shares to experience limited downside during the next seven months. At 12:33 p.m. EST, a block totaling 11,000 January 2011 40 puts changed hands versus current open interest of 474 contracts, indicating this volume was initiated to open. By the end of Thursday's trading session, roughly 11,500 of these out-of-the-money (OTM) puts had changed hands at a premium of $4.10 per contract, which was the bid price when the volume hit the tape. This options action suggests the investors who sold the puts are betting that SOHU shares will not drop more than 17% during the longer term. These put sellers will make a maximum profit of the credit collected, or $4.10 per contract, if SOHU shares are trading higher than $35.90 at January 2011 options expiration. If SOHU shares drop below the breakeven price, the sellers will incur significant but limited losses as the stock moves closer to zero.For a visual of the risk/reward of this short put position, open a free [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)virtual trading account**** today and gain access to essential tools to stock and option trading.A look at time and sales shows that at 12:42 p.m. EST, a block of 387,600 SOHU shares changed hands for $43.20 each, indicating that this investor tied a stock position to the short put action, turning a directional play into a delta-neutral volatility play. The number of shares that crossed the tape represents how many market makers would have to buy in order to make this trade delta-neutral. While the options action seems moderately bullish, it's interesting that this investor decided to turn a moderately bullish directional options play into a volatility bet. Implied volatility of the January 2011 40 puts is 44% compared to the stock's 30-day historical volatility of 35%. Stock Price 4 days before: 43.6846 Stock Price 2 days before: 43.6503 Stock Price 1 day before: 43.5229 Stock Price at release: 43.8045 Risk-Free Rate at release: 0.0005	41.9062
Symbol: B Security: Barnes Group Inc. Related Stocks/Topics: Markets Title: Stocks to Buy – 12 Apparel and Luxury Stocks Looking Good Type: News Publication: Louis Navellier Publication Author: Unknown Date: 2010-06-17 10:39:00 Article: Retirement investors may be surprised to learn that some of the best stocks to buy right now are actually luxury stocks and consumer discretionary plays. While it's true that overall spending isn't quite as impressive as it was before the financial crisis, many luxury stocks, clothing companies and discretionary retailers are doing big business. A consumer stock that manufacturers shoes or jeans may be a perfect fit for your [trading strategy](http://www.investorplace.com/experts/jeff_reeves/trading-strategies-rules-for-buying-stocks.html) .Take Gildan Activewear ([GIL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GIL&selected=GIL)) ), a Canada based clothing company that sells its goods to to screenprinters in North America and Europe. Gildan stock is up about 30% year-to-date in 2010, and has more than doubled in the last year. GIL stock continues to set new highs and shows no sign of slowing down.Whether you favor [high yield dividend stocks](http://www.investorplace.com/experts/jeff_reeves/high-yield-dividend-stocks-investing-strategy-trading-strategies-tgt-cat-via-aeo-casy-bcr.html) or whether you're a more aggressive investor, you simple have to take notice that this mid cap stock is making noise right now. Some investors think that breakneck growth like that can only be found in the best emerging markets. And while its true that [BRIC investments](http://www.investorplace.com/experts/richard_young/articles/emerging-market-Brazil-a-Great-BRIC-Investment.html) in Brazil, India, China and Russia can have big growth they can also come with big risk. When you buy a Western company like this, you don't have to worry about foreign currency exchange rates or political unrest. You just have to focus on the sales and the profits.Another example is Lululemon Athletica ([LULU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LULU&selected=LULU)) ), a yoga-inspired apparel company that provides trendy but functional athletic clothing. LULU stock has done even better, with 47% gains since January 1 and a whopping +236% gain the last year!And then there's one of my favorite small-cap stocks, Skechers USA ([SKX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SKX&selected=SKX)) ). This fashionable footwear company caters primarily to America's biggest spending machine - teenagers. The stock is up +43% year-to-date and is up nearly +350% in the last 12 months! (Full disclosure: I just recommended this small-cap stock to readers of my Emerging Growth newsletter) So what gives? Why is it that discretionary stocks focused on sneakers, yoga pants and athletic socks can be doing so well if consumers are holding back on spending?Well frankly, because clothing doesn't last. Either stuff goes out of style, your kids outgrow their shoes or you just plain wear out your wardrobe. Consumers can only put off their spending for so long. Equally important is that many of the apparel stocks I'm watching right now cater to the upper echelon of consumers who just plain haven't been hurt by the recession - or at least want to keep up appearances. Take Joes Jeans ([JOEZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JOEZ&selected=JOEZ)) ), a company that sells premium jeans for a few hundred dollars as well as pricey shoes, jackets and accessories. Not exactly a retail play for the recession, right? Well JOEZ stock is up +70% in 2010 so far and has tripled in the past year. So much for a lack of consumer spending! What's more, Joes Jeans has a [PE ratio](http://www.investorplace.com/experts/jeff_reeves/pe-ratio-price-earnings-investing-101-strategy-investment-stocks.html) in the single digits right now, indiciating this stock is far from overbought.And don't think that a rising tide will lift all boats in the clothing and luxury goods sector. The bottom line is that some companies are indeed struggling because they fail to connect with consumers, whether about the price point of their products or because of bad taste.That's another reason I'm so bullish on Skechers USA. The billion-dollar-plus company offers 3,000 styles of trendy footwear in all different shapes and sizes for men, women and children. And recently, the company announced that it will begin producing a new line of Skechers-branded backpacks, messenger bags and totes. Skechers expects the bags to hit store shelves this fall - just in time for school. This stock clearly isn't resting on its laurels and wants to keep the momentum going.If you're shopping for a clothing or luxury stock to diversify your portfolio, here are my 12 favorites right now as identified by my stock rating database, Portfolio Grader:Symbol Stock NameMarket Cap ([B](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=B&selected=B)) ) PG Grade GIL Gildan Activewear Inc.$3.76Strong Buy LULU Lululemon Athletica Inc.$3.75Strong BuyDECK Deckers Outdoor Corp.$2.05Strong BuySKX Skechers USA Inc. (Cl A)$1.93Strong BuySHOO Steven Madden Ltd.$0.93Strong BuyGIII G-III Apparel Group Ltd.$0.50Strong BuyUFI Unifi Inc.$0.25Strong BuyCFI Culp Inc.$0.16Strong BuyJOEZ Joe's Jeans Inc.$0.14Strong BuyDLA Delta Apparel Co.$0.13Strong BuyDFZ R.G. Barry Corp.$0.13Strong BuyBOOT LaCrosse Footwear Inc.$0.13Strong BuyA [simple trading strategy](http://www.investorplace.com/experts/jeff_reeves/trading-strategies-rules-for-buying-stocks.html) is to follow the money - and many of these stocks have doubled in the last year. That means if you're a momentum investor or you place a premium on growth instead of [PE ratios](http://www.investorplace.com/experts/jeff_reeves/pe-ratio-price-earnings-investing-101-strategy-investment-stocks.html) , these stocks may be right for you. Full disclosure: As of this writing, Louis Navellier was recommending Skechers in his Emerging Growthnewsletter.About Portfolio Grader: Every Sunday, renowned growth stock expert Louis Navellier runs a fundamental analysis on the top 5,000 Wall Street companies. Armed with this research, Navellier offers a rating for each company reflected as a simple letter grade, with A being "strong buy" and F being "strong sell." [Portfolio Grader's stock data is free and open to the public and can be accessed online here](http://www.investorplace.com/order/?sid=CK3108). [Tell us what you think here.](mailto:[email protected]) Stock Price 4 days before: 18.085 Stock Price 2 days before: 18.3766 Stock Price 1 day before: 18.4046 Stock Price at release: 18.1248 Risk-Free Rate at release: 0.0005	16.11
Symbol: WGO Security: Winnebago Industries, Inc. Related Stocks/Topics: ABT\|Markets\|NBIX Title: Thursday Winners: Neurocrine Biosciences, Pier One and Winnebago Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-06-17 11:06:00 Article: Among the biggest winners in Thursday's early trading are Neurocrine Biosciences, (Nasdaq: [NBIX](http://streetauthority.com/stocks/NBIX) ) , Pier One (NYSE: [PIR](http://streetauthority.com/stocks/PIR) ) and Winnebago (NYSE: [WGO](http://streetauthority.com/stocks/WGO) ) . A Key Positive for Consumer Spending Raise your hand if you thought demand for mobile homes would snap back very quickly while unemployment remains so high. Me neither. Winnebago (NYSE: [WGO](http://streetauthority.com/stocks/WGO) ) just announced that it doubled the amount of mobile homes and campers it made in its fiscal third quarter compared with a year earlier. Results were especially lousy last year, but this business is clearly rebounding faster than most expected. Sales of its most expensive "Class A" motor homes were notably robust. That's in keeping with positive retail reports from firms like Saks (NYSE: [SKS](http://streetauthority.com/stocks/SKS) ) that also cater to the well-heeled set. Winnebago is up +16% on the bullish news. This marks the second straight quarter that Winnebago has made money, after a six-quarter losing streak. Can it be sustained? Management says that inventories are fairly lean, down -14% from a year ago, and it's increasingly clear that spending has returned among upper income consumers.What's not clear is how strong a rebound Winnebago can expect. The company routinely earned $1 to $2 a share from 2001 through 2007. To get back to that level, the company needs to hope that the expanded pool of aging baby boomers likes to drive the blue highways. Yet as long as unemployment stays high, customers of more marginal financial means probably need to hold off on such an expensive purchase. Action to Take --> Look for analysts to raise their 2011 fiscal forecasts from the current $0.54 per share to around $1. Shares appear reasonably priced at around 13 times that figure. It may take several years for per-share profits to move past the $1.50 mark, but long-term investors should find this stock to be a bargain in that context. Shares rose sharply after the last quarterly report, and then fell sharply. This time around, shares should hold their gains -- and then some.------------------------------------Pier One Follow-up In early June, [we noted](http://streetauthority.com/node/456150/) that retailer Pier One (NYSE: [PIR](http://streetauthority.com/stocks/PIR) ) posted impressive sales results, and we anticipated a fairly robust profit report when the company ultimately released quarterly results. The news is in, and it's good: Instead of an anticipated minor loss, Pier One eked out a profit, which is atypical for the retailer in this seasonally slow quarter.Sales at stores open more than one year rose +14% from a year ago. That's what reduced competition can do for you. And fewer rivals means fewer price wars: gross margins rose a hefty 700 basis points to 37.4%. Action to Take --> As we noted a few weeks ago, earnings estimates are likely to rise, and shares, even after this morning's 5% gain, are still quite attractive. We stand by our earlier sentiment that "with less competition to worry about, this retailer could keep rising from the ashes, and shares could move into the low teens." That's a +30% to +40% gain from current levels.------------------------------------A Key Endorsement for Neurocrine Biosciences For the second day in a row, we're highlighting robust gains for Neurocrine Biosciences (Nasdaq: [NBIX](http://streetauthority.com/stocks/NBIX) ) . On Wednesday, the company secured an impressive agreement with Abbott Labs (NYSE: [ABT](http://streetauthority.com/stocks/ABT) ) .A mere day later, Neurocrine has signed another partner to help develop and market a separate promising drug. Germany's Boehringer Ingelheim will pay $10 million now, and up to $225 million later, to help bring Neurocrine's diabetes-fighting molecular research to fruition. This effort is not as far along as the drug being jointly developed with Abbott Labs, so shares are posting a more muted 5% gain, after rising 14% on Wednesday. Yet you can argue that two partners and two promising research efforts make shares even more appealing, as it reduces the odds that the company will strike out as it wends further into clinical trials. A two-trick pony is better than one. Action to Take --> We suggested Wednesday that "the near-term gains have been made in the stock, and you couldn't be faulted for taking profits." And we were wrong. We added that investors may be able to get in on a share price pullback. Now, such a pullback looks less likely. We're hesitant to place a value on these shares, but this week's flurry of deal-making is pretty darn impressive, and should make Neurocrine a household name among biotech investors.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.-- David StermanStaff WriterStreetAuthorityDisclosure: David Sterman owns shares of Neither StreetAuthority and LCC nor the editor hold positions in any securities mentioned in this report.. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 11.0443 Stock Price 2 days before: 11.2871 Stock Price 1 day before: 11.1009 Stock Price at release: 12.3733 Risk-Free Rate at release: 0.0005	9.80739
Symbol: PRDO Security: Perdoceo Education Corporation Related Stocks/Topics: Markets Title: Bears hit Career Education, DeVry Type: News Publication: optionMONSTER Publication Author: Unknown Date: 2010-06-17 11:32:00 Article: Education stocks have been under pressure amid regulatory concerns, and today the bears are targeting two companies in the sector.optionMONSTER's Depth Charge tracking system detected unusual put buying in DeVry and Career Education, which operate colleges and training schools. In CECO, the June 26 strike was active as traders positioned for at least a 5 percent drop by tomorrow's close. [CECO Chart](http://www.optionmonster.com/cms/commentary/images/ceco617.png) CECO puts traded 13,983 times at that strike, mostly for $0.20 to $0.30, against open interest of 1,294 contracts. The stock rose 0.07 percent in morning trading but has lost more than one-fifth of its value since April 21. The company also faced a bearish trade last week.Investors have been selling the stocks since Credit Suisse warned the government may tighten rules on student loans and Deputy Education Undersecretary Robert Shireman criticized the industry.CECO is struggling to hold support at its 200-day moving average (purple line on chart), and today's put buyers apparently think that it could break below that level in the near term.The bears took a slightly longer view on DV, buying the July 50 puts for $0.75 to $0.95. Some 4,051 contracts traded, representing about 33 times open interest in the strike. DV, which has spent the entire month below its 200-day moving average, fell 0.16 percent to $56.96.Overall activity was more than four times greater than average in both stocks so far today, with puts accounting for 99 percent of combined volume. (Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved. Stock Price 4 days before: 0.0 Stock Price 2 days before: 0.0 Stock Price 1 day before: 0.0 Stock Price at release: 0.0 Risk-Free Rate at release: 0.0005	0
Symbol: SAFE Security: Safehold Inc. Related Stocks/Topics: Markets Title: Crude Extends Decline amid Worries over Economic Slowdown Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-06-18 07:01:00 Article: Crude oil weakens further in European session with the font-month WTI contract breaking below 76 (currently trading at 75.6), after surging to a 5-week high of 78.13 2 days ago. Brent crude also reverses earlier gains and slides to 77.8. The contract soared to 79.59 yesterday, the highest level since May 14. Apart from disappointing US economic data that raised doubts about energy demand in the world's biggest economy, comments from Bin Xia, an adviser from People's Bank of China ([PBOC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PBOC&selected=PBOC)) ), about slowdown in China also hurt sentiment.At a conference in Shanghai, Xia said that China's economy will slow down in the second half and it's unlikely to record double-digit growth for the full year. At the same time, he said that the Chinese monetary policy should return to a normalized level in the second half of the year. However, in the long-term, the overall economic development should remain strong and may catch or exceed that of the US by about 2030. Despite optimistic long-term outlook, the market worries that slowdown in growth will dampen oil demand in the medium -term. Gold changes little after attempting to re-test the record higher yesterday. Yin Zhongqing, Vice Chairman of the finance committee of the congress, commented that China should increase its holdings of gold and oil in its reserve for diversification. However, this opinion may not be shared by others in the government. China's State Administration of Foreign Exchange ([SAFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SAFE&selected=SAFE)) ) said last week in its annual report that the 'relatively high volatility and costs of holding and trading gold' limit the metal's use for asset allocation.G-20 leaders will meet next week and Chinese representatives urge to focus on debt crisis in the Eurozone rather than on RMB appreciation. Indeed, apart from the US, countries such as Brazil and India have urged China to adopt a more flexible stance in RMB in recent months. In a quarterly report released today, the World Bank also said 'more exchange-rate flexibility would make monetary policy more independent'. We expect the debate over RMB appreciation between China and other countries should benefit gold as the conflict raises geopolitical tensions. The same happened in 2009 and March 2010. Escalation in US-China trade and currency spats dampened China's demand for US Treasury (maybe as revenge) and spurred gold buying.Concerning macroeconomic data, UK's public sector net borrowing ([PSNB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PSNB&selected=PSNB)) ) increased less than expected to 16B pound in May from 10B pound. The market had anticipated a bigger rise to 18B pound. However, the data did not catch much attention as the focus has been shifted to the emergency budget on June 22. Stock Price 4 days before: 0.0 Stock Price 2 days before: 0.0 Stock Price 1 day before: 0.0 Stock Price at release: 0.0 Risk-Free Rate at release: 0.0004	0
Symbol: ALT Security: Altimmune, Inc. Related Stocks/Topics: Markets\|MINT Title: iShares Active? Big Deal Type: News Publication: IndexUniverse Publication Author: Unknown Date: 2010-06-18 07:45:00 Article: It's not often that I read headlines on our own Web site and my heart skips a beat. But that's exactly what happened when I read about iShares filing for a new series of actively managed ETFs.To the outside observer, this may not be a big deal, but I feel some personal sense of the world changing. Some 16 years ago, I was a managing director at the predecessor company of iShares, Wells Fargo Nikko Investment Advisors. WFNIA, as it was known back then, was at the front end of nerdy investment management. Blake Grossman, now counting his huge stacks of money from the BlackRock acquisition of BGI, was the quintessential "smartest guy in the room," a protege of Bill Sharpe, and an advocate of academic investment theory. But, once I got my heart started again, I put myself back in those 20-something shoes from the early '90s, and recalled the countless debates over quantitative-active strategies that occurred nearly daily in the halls of WFNIA and, post-acquisition, Barclays Global Investors. Even then, while the bulk of BGI's assets were in the form of super-low-margin index products, a substantial portion of the firm's revenue came from quantitative strategies-then called "tilts and timing" strategies-which would have to be considered active by any rational observer.And while most of the public continues to think of the surviving BlackRock group as a passive manager, Grossman and Co. were quietly building the quant side of the house into a bigger and bigger business.To date, iShares has launched just one product based on this academic legacy, the iShares Diversified Alternatives Trust (NYSEArca:ALT). Like those other active strategies that BlackRock, nee WFNIA, has had under the covers, it charges a lot more than the passive stuff-95 basis points to be precise. At the moment, that expense drag has represented pretty much all of the returns of the fund since its inception last year-it's down about 30 basis points since it launched in November of last year.These new filings are very light on specifics, but it seems clear to me where they're headed. I don't expect BlackRock to start filling smoky rooms with stock pickers and value hunters. Instead, I expect them to roll their core, high-margin strategies out to the market in tightly controlled packages like ALT.Why now? Because active ETFs may finally have arrived. For reference, here's the current state of the SEC-defined active universe; that is, those funds that disclose their portfolio every morning to reflect yesterday's trading activity. [Editor's Note:The original table was missing a few active ETFs, and has been updated.]Blame it all on MINT. Pimco's breakout success, the Pimco Enhanced Short Maturity Strategy (NYSEArca:MINT), which we've talked about recently, has proven that investors will pile into an active ETF if the timing and the product are right. In Pimco's case, the fact that it's fixed income likely helps-the portfolio broadcasts a yield, which is nearly a promise of performance when you're dealing with the short end of the duration curve. Similarly, the currency products are technically actively managed, but the performance of the products is relatively easy to predict, at least in terms of relative performance to their benchmarks.ALT, while definitely still a niche product, with just over $55 million under management, has experienced steady growth in assets, despite fairly mundane performance numbers.It's too early to call it a movement, but the filing from iShares could definitely be writing on the wall.[Don't forget to check IndexUniverse.com's ETF Data section.](http://www.indexuniverse.com/data.html?utm_source=nasdaq.com&utm_medium=rss&utm_campaign=data)[Copyright ® 2010 Index Publications LLC](http://www.indexuniverse.com/) . All Rights Reserved. Stock Price 4 days before: 50.7412 Stock Price 2 days before: 50.4845 Stock Price 1 day before: 50.3794 Stock Price at release: 50.3324 Risk-Free Rate at release: 0.0004	49.692
Symbol: XRX Security: Xerox Holdings Corporation Related Stocks/Topics: Markets Title: Bullish position extended in Xerox Type: News Publication: optionMONSTER Publication Author: Unknown Date: 2010-06-21 01:46:00 Article: Xerox has experienced a pullback after a rally earlier in the year, and one investor is positioning for more gains. [XRX Chart](http://www.optionmonster.com/cms/commentary/images/xrx621.png) optionMONSTER's Heat Seeker tracking system detected the purchase of 10,000 October 9 calls for $1.18 to $1.20 and the sale of a matching number of July 9 calls for $0.70 to $0.73. Volume was below open interest in the July contracts but not the October strikes, indicating a position was rollwed forward by three months. XRX rose 1.06 percent to $9.53 in late-morning trading. The imaging company is down 9 percent since it peaked at a 20-month high of $11.72 on April 23 but has been bouncing higher for the last two weeks. The stock been making steadily higher lows since March 2009, which some chart watchers may interpret as evidence of a continued uptrend.The company's profit beat forecasts and management issued bullish guidance the last time it reported earnings on April 21. The next release is scheduled for before the premarket of July 22. It will be the first complete quarter since XRX purchased Affiliated Computer Services.Today's option trade, known as a call roll, gives the investor more time to make money from XRX pushing higher. It cost about $0.50 to implement.The transaction pushed total options volume in the name to seven times greater than average, calls accounting for 97 percent of the activity.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved. Stock Price 4 days before: 9.48337 Stock Price 2 days before: 9.41019 Stock Price 1 day before: 9.51244 Stock Price at release: 9.52118 Risk-Free Rate at release: 0.0005	8.48778
Symbol: GCI Security: Gannett Co., Inc. Related Stocks/Topics: NYT\|Markets\|USA\|NWS Title: Newspaper Stocks Refute the Skeptics Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-06-21 06:01:00 Article: At a weekend get together, I heard from many family members and friends about what they consider to be must-reads to stay up to speed on a daily basis. All seemed to agree that weekly news magazines such as Time and Newsweek seemed to be losing their relevance, moving too slowly in a world that has ever-shortening news cycles. Others noted that the Internet keeps them informed, but acknowledged that there is still a large credibility gap between journalism and blogging. And a few others noted that their local papers in cities such as Minneapolis or Miami were losing their ability to broadly cover important events as they continue to gut their newsrooms.And all seemed to agree that News Corp.'s (Nasdaq: [NWS](http://streetauthority.com/stocks/NWS) )The Wall Street Journal , New York Times Company's (NYSE: [NYT](http://streetauthority.com/stocks/NYT) )The New York Times , and Gannett's (NYSE: [GCI](http://streetauthority.com/stocks/GCI) )USA Today still managed to maintain devotees with their respective foci on business news ([WSJ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WSJ&selected=WSJ)) ), international and domestic politics and policy ([NYT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NYT&selected=NYT)) ), and consumer-friendly sports, entertainment and "light news" ([USA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=USA&selected=USA)) ). Yet many investors have concluded that these publishing powerhouses are facing a mortal decline, and are still dubious of these stocks, even as they bounced up from their lows. For example, The New York Times Company saw its sales shrink -3% in 2007, -8% in 2008, and -17% in 2009. Gannett has been caught in a similar revenue spiral. But with the economy having bottomed, revenues are expected to stabilize this year and next. And with costs sharply lower from a few years ago, profits are rebounding.Indeed, share prices are well up form their nadir. The New York Times was up +6% on Monday, capping a +25% move in the last two weeks.The key question for investors: is this a business poised for an upturn as ad spending rises, or just a false dawn as these companies prove unable to monetize their brands in a world where "news wants to be free."Newspaper readership is indeed in a steady decline, but these firms can still thrive by getting a bigger slice of a smaller pie. A number of newspaper chains are in bankruptcy, or have been so gutted that they are no longer able to adequately cover their regions, let alone national and international news.And that's where The New York Times and USA Today come into play. Each of those newspapers may start seeing circulation gains in some of the markets where the local papers have lost any tangible readership interest. (Call a friend in south Florida and ask them about their local papers to get a sense of what I mean). Any major retrenchment by a local publisher is an opportunity for expansion for these national papers. These publishers can offer these locals a ready-made co-branded national or international section that represents a cheaper path to non-regional coverage while providing them with 100% margin licensing revenue. Or they can pounce while rivals retrench by boosting circulation in other cities outside the New York area. These companies already have a high degree of fixed costs servicing other regions, so incremental revenue gains would help boost variable profits. The increased national circulation would also sit well with national advertisers, many of which are increasingly shunning radio and broadcast television.For Gannett, the prescription is simple: Stay the course. Management has been taking a series of steps that should eventually find appeal with investors such as a steady pay down in debt. Long-term debt/equity has fallen from 71.8% to below 40%. Cost cuts are also helping. Revenue fell -4% in the most recent quarter, but expenses were down -9%. And don't write off the broadcast assets. Gannett owns and operates 23 TV stations, 12 of which are NBC affiliates, and all of which still contribute a considerable amount of [cash flow](http://investinganswers.com/term/cash-flow-1175) .In a similar vein, The New York Times is expected to more than double profits this year, even as sales fall another -1% to -2%. If ad rates finally turn up, then strong profit gains would continue.Yet even as ad rates firm and competition withers, these two publishers still face a very real problem: their websites. The New York Times' website is so good that it is cannibalizing circulation sales, especially since it is 100% cheaper than the print version.It has become conventional wisdom that online versions of newspapers must be free. But as The Wall Street Journal has proven, you can have it both ways. Online readers for the WSJ get a discounted rate from the print version, largely to reflect the savings associated with printing and distribution Of course, the Times already tried to charge for content once, putting its editorial page writers behind a wall. That half-hearted attempt was a mistake, and led readers to consume the remaining 85% of daily content that was still open to the public. By next year, the Times plans to put the wall back up, charging more for content. In a world where The New York Times remains a must read for New Yorkers, and an increasingly important source of news for many who live outside the New York area as well, the paper will find that it remains indispensable. For that matter, according to Alexa.com, 35% of all NYT.com online readers come from outside the United States, where physical delivery isn't even an option.As is the case with the WSJ , pricing needs to be well below that of the print version, to reflect the smaller costs associated with the website. If I am typical of many online readers, I would hate the idea of paying for my daily New York Times fix, but I would ultimately do so anyway.Do the math. The New York Times has roughly 12 million to 15 million unique visitors to its site in any given month. Let's assume that the paper allows partial free access to 15-20 top stories per day, enabling it to maintain decent traffic levels from casual surfers, and thus enabling traffic and ad revenues to remain at reasonable levels. Then let's assume that only 500,000 readers are willing to pay $100 per year for full online access (which is the same price of the online WSJ ). That works out to be $50 million in incremental revenues. As noted, online ad revenue would take a partial hit as fewer pages would be served to readers that are unwilling pony up for a subscription fee. Action to Take --> Investors remain uncertain as to whether these large publishers can really survive. The real question should be "to what extent can they thrive?" Competition is on the ropes, any economic recovery would boost ad rates, and their websites will still figure out a way to bring in solid revenue gains. Gannett looks especially appealing, selling for around eight times profits.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.-- David StermanStaff WriterStreetAuthorityDisclosure: David Sterman does not own shares of any security mentioned in this article. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 16.5339 Stock Price 2 days before: 16.6341 Stock Price 1 day before: 16.7604 Stock Price at release: 16.7575 Risk-Free Rate at release: 0.0005	14.2054
Symbol: CENX Security: Century Aluminum Company Related Stocks/Topics: AA\|Markets\|UMC\|PKX\|X Title: Monday Winners: Century Aluminum, United Micro and Perfect World Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-06-21 11:51:00 Article: Among the biggest winners in Monday's early trading are Century Aluminum (Nasdaq: [CENX](http://streetauthority.com/stocks/CENX) ) , United Micro (NYSE: [UMC](http://streetauthority.com/stocks/UMC) ) and Perfect World (Nasdaq: [PWRD](http://streetauthority.com/stocks/PWRD) ) . Aluminum Stocks love a Stronger Yuan A wide range of aluminum and steel stocks are rallying this morning, led by a +11% gain for Century Aluminum (Nasdaq: [CENX](http://streetauthority.com/stocks/CENX) ) . Many of these firms, such as Alcoa (NYSE: [AA](http://streetauthority.com/stocks/AA) ) , POSCO (NYSE: [PKX](http://streetauthority.com/stocks/PKX) ) or U.S. Steel (NYSE: [X](http://streetauthority.com/stocks/X) ) have struggled to raise prices while Chinese rivals flooded the market with lower cost products. If China indeed is set to finally strengthen its [currency](http://investinganswers.com/term/currency-120) , other Asian countries may follow suit. And that would enable these aluminum and steel producers to raise prices or take [market share](http://investinganswers.com/term/market-share-778) . Action to Take --> A stronger Yuan helps, but a balanced and stable growing global economy is the real panacea for this group, as that would allow for improved pricing and profits. It's too soon to know if the currency moves will aid the results of these firms, so it's not clear if there is stronger near-term upside for these rallying names.-------------------------------------A Foundry bags New Business Shares of United Micro (NYSE: [UMC](http://streetauthority.com/stocks/UMC) ) are up more than +6% this morning after the Taiwan-based company announced a joint venture to co-develop a low-power chip with Japan's Elpida. By pooling these resources, these firms can trim R&D costs while staying on the cutting edge. And UMC, the world's second-largest maker of chips, also benefits by securing production rights to the new chip they plan to co-develop. Chip foundries can be hugely profitable when kept busy.Just a week ago, UMC announced that second-quarter sales would be strong, and added that its foundries should be quite busy for the rest of the year as well. That should enable the company to post a sharp +300% gain in profits this year. Action to Take --> Analysts expect profits to rise another +20% in 2011 to around $0.25 a share. Yet those forecasts now look too conservative in light of recent announcements. (Investors should note that UMC has earned more than $0.20 a share only once in any [fiscal year](http://investinganswers.com/term/fiscal-year-1316) during the past decade). The company should post record profits next year, but at around 10 to 11 times likely upward-revised forecasts, shares may have limited potential [appreciation](http://investinganswers.com/term/appreciation-1107) from here - at least until we know more about the company's chip development plans with Elpida. This is a name that is suitable for further research, but know that chip foundries rarely garner high [price-to-earnings ratio (P/E)](http://investinganswers.com/term/price-earnings-ratio-pe-459) multiples.-------------------------------------Perfect World: A Possible Yuan Play Chinese video gaming stocks have taken it on the chin this year, but investors may start to warm up to the sector once again. A stronger Yuan would lead to higher results in terms of dollars, so look for analysts to boost their profit forecasts if and when China actually starts to strengthen its currency. Shares of Perfect World (Nasdaq: [PWRD](http://streetauthority.com/stocks/PWRD) ) are up +8.5% on that sentiment. Right now, analysts think Perfect World can earn close to $4 a share in 2011. But a stronger Yuan may lift that view closer to $4.25 - all other things being equal. Shares trade at just six times that figure. Action to Take --> Analysts will likely hold off boosting profit forecasts until it becomes clear that China will let its currency rise. Once that process is underway, expect a solid boost in estimates for all China-based consumers that sell into the Chinese domestic market. Perfect World is just one of many stocks that hold the dual support of low P/Es and rising profits.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanStaff WriterStreetAuthorityDisclosure: David Sterman does not own shares of any security mentioned in this article. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 10.1152 Stock Price 2 days before: 10.11 Stock Price 1 day before: 10.2757 Stock Price at release: 11.1399 Risk-Free Rate at release: 0.0005	9.6777
Symbol: CENX Security: Century Aluminum Company Related Stocks/Topics: Markets\|AA Title: Euphoria Fades, but this China Play is for Real Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-06-22 03:14:00 Article: By the end of Monday's trading, investors began to question whether China will really follow through with plans to boost its [currency](http://investinganswers.com/term/currency-120) . Earlier in the day, [we opined](http://www.streetauthority.com/node/456249) that change is coming, albeit more slowly than many would like.Even after the dust settled and many China-related stocks gave back their gains, shares of metals makers - especially aluminum producers - held onto sharp advances. Both Alcoa (NYSE: [AA](http://streetauthority.com/stocks/AA) ) and Century Aluminum (Nasdaq: [CENX](http://streetauthority.com/stocks/CENX) ) rose more than +10% on intra-day basis on Monday, and were holding most of those gains in Tuesday trading. For both of these firms, investors need to brace for some short-term pain but real long-term gains. A Tough Start to Earnings Season Alcoa, which always kicks off [earnings season](http://investinganswers.com/term/earnings-season-344) , will likely set a somber tone. Analysts have been lowering their second-quarter profit forecast from $0.28 to $0.16 during the past few weeks, and that still looks too high. Spot pricing for aluminum has been steadily dropping, and that could push Alcoa's per-share profits closer to the $0.10 mark. In a similar vein, Century Aluminum may also be on track to miss analysts' second-quarter forecasts when they are released later in July. That's why share prices have been in freefall for these aluminum producers prior to Monday's China-related spike.The weakening outlook is due to a global aluminum glut. The London Metals Exchange ([LME](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LME&selected=LME)) ) has been carrying about 4.5 million tons in its inventory. But Chinese inventories have doubled in the last six months to around 500,000 tons. Taken together, those two locales carried more than five million tons on hand, an industry record. (Inventories have since fallen four straight weeks and now stand at about 4.97 million tons). Prior to the economic slowdown, there were typically about one million tons of aluminum in inventory.And with so much inventory on hand, spot pricing for aluminum has been falling sharply, from $1.11 a pound in late April to a recent $0.88.As that analysis shows, it is the increase in Chinese inventories that has made all the difference. And that factor is likely to reverse as the yuan slowly builds strength. Even before any move in the yuan, a number of Chinese producers are said to be operating at negative cash costs (which means that their operating expenses are higher than the sales prices they can get for smelted aluminum). While firms such as Alcoa and Century Aluminum operate much more inexpensively (thanks to better [vertical integration](http://investinganswers.com/term/vertical-integration-871) and smelters in regions where power is cheap), they had to give up profits as their Chinese rivals ramped up output.Energy is expensive in China. And Chinese officials have repeatedly stressed that the nation's energy resources shouldn't be frittered away on money-losing industries. So even though a stronger yuan will lower the cost of imported oil and gas, it won't be enough to turn these money losers into money makers. Which is why many analysts think China will start to curtail aluminum production. Action to Take --> As noted earlier, aluminum now fetches less than $0.90 a pound. Some of these money-losing Chinese smelters are likely going off-line as we speak. Aluminum would have to move back up above $1.05 a pound before production re-starts. Yet right now, analysts are tweaking their models to account for $0.90 aluminum. Goldman Sachs, for example, just cut its 2011 [EPS](http://investinganswers.com/term/earnings-share-eps-1003) forecast for Alcoa from $1.20 to $1.05. (As a point of context, Alcoa earned an average of $2.50 a share from 2005 through 2007).On the upcoming earnings reports, look for estimates to fall to reflect a sobering pricing outlook. Ironically, that lowered view will be arriving just as the changing industry dynamics should enable pricing to rise back up. So wait for these stocks to digest the bad news, and then pounce. Alco is scheduled to report quarterly results on July 12.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanStaff WriterStreetAuthorityDisclosure: David Sterman owns shares of Neither StreetAuthority and LCC nor the editor hold positions in any securities mentioned in this report.. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 10.0364 Stock Price 2 days before: 10.2757 Stock Price 1 day before: 10.2858 Stock Price at release: 10.7836 Risk-Free Rate at release: 0.0008	9.74886
Symbol: CSIQ Security: Canadian Solar Inc. Related Stocks/Topics: CBOE\|Markets\|KMX\|NKE\|ADBE\|DRI\|SPX\|JBL Title: Opening View: SPX Looking Up at 1,100 Again; Is DJIA at a Crossroads? Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-06-23 07:56:00 Article: The Dow Jones Industrial Average ([DJIA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DJIA&selected=DJIA)) ) was hammered for a 149-point loss yesterday, and the DJIA enters today trading below a 50% retracement of its 2010 high and low. The position is precarious in that the Dow is hovering just above key support at the 10,290 area, home to prior resistance and its 10-day moving average, even as traders prepare for the Fed's decision on U.S. monetary policy. Along the same lines, the S&P 500 Index ([SPX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SPX&selected=SPX)) ) plunged below its widely watched 200-day moving average yesterday. This trendline is viewed by many market technicians as a bull/bear market line of demarcation. Heading into the open, futures on the DJIA and the SPX are trading about 41 points and 4.5 points above fair value, respectively. Finally, keep in mind that market headwinds could be significant in this post-expiration week environment, as traders reestablish hedges that expired last week. This activity could also increase volatility, as seen by the CBOE Market Volatility Index's ([VIX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VIX&selected=VIX)) ) continued rebound from support at its 200-day moving average.In earnings news, Adobe Systems Inc. ([ADBE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ADBE&selected=ADBE)) ) reported second-quarter earnings of 44 cents per share, excluding items, as revenue rose to $943 million. Analysts had expected Adobe to post a profit of 43 cents per share on $905.9 million in revenue. In pre-market trading, ADBE shares were last seen lower by more than 2%. Elsewhere, Red Hat Inc.'s ([RHT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RHT&selected=RHT)) ) first-quarter earnings, excluding items, came in at 18 cents per share, with revenue jumping 20% to $209 million. The quarterly results were in line with Wall Street's views, while revenue topped expectations for $202.9 million. RHT shares were flat in pre-market trading.Rounding out our equity coverage, Jabil Circuit Inc. ([JBL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JBL&selected=JBL)) ) said that it swung to a third-quarter profit of $52 million, or 24 cents per share, as revenue grew to $3.46 billion from $2.62 billion. Analysts had expected earnings of 34 cents per share on revenue of $3.21 billion. Heading into the open, JBL shares have vaulted nearly 9% higher. Earnings Preview On the earnings front, Canadian Solar Inc. ([CSIQ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CSIQ&selected=CSIQ)) ), CarMax Inc. ([KMX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KMX&selected=KMX)) ), Rite Aid Corp. ([RAD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RAD&selected=RAD)) ), Bed Bath & Beyond Inc. ([BBBY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BBBY&selected=BBBY)) ), Darden Restaurants Inc. ([DRI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DRI&selected=DRI)) ), and NIKE Inc. ([NKE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NKE&selected=NKE)) ) are scheduled to release their quarterly reports today. Keep your browser at [SchaeffersResearch.com](http://www.schaeffersresearch.com/) for more news as it breaks. Economic Calendar Weekly U.S. petroleum supplies will be overshadowed later today by the Federal Open Market Committee's interest rate decision. Tomorrow brings the usual weekly initial jobless claims, as well as May's durable goods orders. Finally, we round out the week with the initial third-quarter gross domestic product reading and June's final University of Michigan consumer sentiment index. Market Statistics Equity option activity on the Chicago Board Options Exchange ([CBOE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBOE&selected=CBOE)) ) saw 1,017,734 call contracts traded on Tuesday, compared to 649,261 put contracts. The resultant single-session put/call ratio arrived at 0.64, while the 21-day moving average slipped to 0.62. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/100623ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/100623ov2.gif)The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher. [Dow, S&P and Nasdaq futures](http://www.schaeffersresearch.com/images/commentary/2010/100623ov3.gif) Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up [here](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=O&CODE=SIRG07D) for free daily delivery, straight to your inbox, before the opening bell. Overseas Trading Overseas trading is in poor shape this morning, as only two of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a loss of 0.42%. In Asia, stocks dropped as weaker-than-expected U.S. housing data and declining commodities prices weighed on investor sentiment. Meanwhile, European shares fell for a second straight day on caution over global economic growth. Financials were among the leading losers. Overseas market information comes to you courtesy of [Schaeffer's Daily Bulletin](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=D&CODE=UB08FREE14) . [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/100623ov4.gif)Currencies and Commodities With the Fed's monetary policy statement just hours away, currency traders are allowing the U.S. dollar to languish. Most analysts expect the central bank to hold rates steady and maintain its "extended period" policy on record low rates, a factor which has sapped the dollar's strength. Heading into the open, the U.S. Dollar Index is off 0.13% at 86.00. Meanwhile, the weaker dollar is having an uplifting effect on gold prices, with the front-month contract up $5.10 at $1,245.90 in London. Finally, a sharp build in U.S. petroleum stockpiles is being blamed for a decline in crude oil futures in early activity. The American Petroleum Institute reported last night that crude inventories rose by 3.69 million barrels, igniting debate over rising supply and declining demand. At last check, crude futures were down 37 cents at $77.48 per barrel. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/100623ov5.gif)**Unusual Put and Call Activity:For an explanation of how to use this information, check out our [Education Center](http://www.schaeffersresearch.com/schaeffersu/) topics on [Option Volume](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?ID=220#220) and [Open Interest Configurations](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?id=221) . [Unusual options activity - puts](http://www.schaeffersresearch.com/images/commentary/2010/100623ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/100623ov7.gif) [Click here for the new spring issue of SENTIMENT magazine](http://www.schaeffersresearch.com/redirect.aspx?CODE=SIRMAG10DGENERAL&PAGE=1)** All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 11.6779 Stock Price 2 days before: 12.1448 Stock Price 1 day before: 11.8055 Stock Price at release: 11.1077 Risk-Free Rate at release: 0.0007	13.6866
Symbol: APOG Security: Apogee Enterprises, Inc. Related Stocks/Topics: Markets\|PRGS Title: Wednesday Losers: Wilmington Trust, Apogee Enterprises and Progress Software Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-06-23 11:06:00 Article: Among the biggest losers in Wednesday's early trading are Apogee Enterprises (Nasdaq: [APOG](http://streetauthority.com/stocks/APOG) ) , Wilmington Trust (NYSE: [WL](http://streetauthority.com/stocks/WL) ) and Progress Software (Nasdaq: [PRGS](http://streetauthority.com/stocks/PRGS) ) . Paying up for Delaying an Integration Over the past decade, Progress Software (Nasdaq: [PRGS](http://streetauthority.com/stocks/PRGS) ) , which offers various applications to enhance communication between various computer programs and networks, pursued a growth-through-acquisition strategy. The deal-making frenzy paid off in the form of steadily-rising earnings before interest, tax, depreciation and amortization [(EBITDA)](http://investinganswers.com/term/earnings-interest-tax-depreciation-and-amortization-ebitda-1058) , at least until the downturn hit. But an economic slowdown has a way of exposing operational weaknesses. That led the board to instill new management. And the new management quickly realized that the company should have integrated all of those deals into one platform a long time earlier. So they took the painful step of merging four disparate sales teams into one, knowing that it might disrupt sales activities in the near-term. And sales have indeed taken a moderate hit. Progress noted on Tuesday evening that sales rose 9% from a year ago, below the growth rate posted by rivals such as Pegasystems (Nadaq: PEGA) and Informatica (Nasdaq: [INFA](http://streetauthority.com/stocks/INFA) ) . And that led management to lower fiscal (November) 2010 guidance. Shares are off -7% this morning on that downbeat view. **Action to Take --> Once the integration effort is complete, investors may again come to appreciate the robust amount of IT spending taking place in this sector. Progress will remain a formidable competitor, but shares may stay restrained until the new management team can prove that the integration efforts paid off.------------------------------------Wilmington Trust Slumps Badly Prior to publishing a fresh report on a company -- especially one that involves a rating change -- a stock will sometimes move for reasons that can't always be explained at the time. That may help explain why shares of Wilmington Trust (NYSE: [WL](http://streetauthority.com/stocks/WL) ) started falling Tuesday afternoon, hours before analysts at SunTrust lowered their rating on the stock. The actual release of that report is pushing shares down another -7% today to their lowest levels since February.The analysts note that Wilmington Trust, a full-service financial firm, may be experiencing a rising tide of troubled loans. Wilmington has flubbed several quarters in a row, and analysts have shifted their thinking that this year would mark a profit [turnaround](http://investinganswers.com/term/turnaround-888) . Now, they anticipate more losses, and think that 2011 will be the profit inflection point. Action to Take --> There's no need to buy into this dip. It looks as if earnings estimates will need to fall even further before shares find a floor. ------------------------------------Apogee Awaits the Construction Upturn As we noted in [our look at Tuesday's losers](http://www.streetauthority.com/node/456257)USG (NYSE: [USG](http://streetauthority.com/stocks/USG) ) is generating persistent losses while housing construction remains in a funk. A day later, we're hearing about similar open-ended losses at Apogee (Nasdaq: [APOG](http://streetauthority.com/stocks/APOG) ) , which makes specialized windows in commercial construction. The company on Tuesday evening reported a -21% drop in sales, and a $6 million operating loss, good for a double-digit drop in the stock on Wednesday. With $50 million in net cash still in the bank, Apogee could keep losing money for many quarters to come without running into trouble.Long-term investors may want to stay focused on the company's potential in a better economic environment. Just a few years ago, Apogee routinely generated $2 to $3 a share in [operating income](http://investinganswers.com/term/operating-income-1207) , and $1.50 to $2 a share in [net income](http://investinganswers.com/term/net-income-808) . Action to Take -->** Shares, which traded for close to $30 in 2007, now trade just above $10. Even if the stock eventually retraces just half of that move, investors are still looking at considerable upside. In this market, it pays to buy high-quality companies that lack " [timeliness](http://investinganswers.com/term/timeliness-1349) ." Over time, these stocks will show nice gains as their sector strengthens, though shares may move sideways on the near-term.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.-- David StermanStaff WriterStreetAuthorityDisclosure: David Sterman does not own shares of any security mentioned in this article. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 13.0702 Stock Price 2 days before: 13.3355 Stock Price 1 day before: 13.1693 Stock Price at release: 11.836 Risk-Free Rate at release: 0.0007	11.4927
Symbol: ROIC Security: Retail Opportunity Investments Corp. Related Stocks/Topics: Markets Title: Wednesday Winners: Jabil Circuit, CarMax and ZymoGenetics Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-06-23 11:37:00 Article: Among the biggest winners in Wednesday's early trading are Jabil Circuit (NYSE: [JBL](http://streetauthority.com/stocks/JBL) ) , CarMax (NYSE: [KMX](http://streetauthority.com/stocks/KMX) ) , and ZymoGenetics (Nasdaq: [ZGEN](http://streetauthority.com/stocks/ZGEN) ) . Jabil's Bright Outlook Good news for investors of Jabil Circuit (NYSE: [JBL](http://streetauthority.com/stocks/JBL) ) , and for investors everywhere that are looking for signs that the global economy is getting stronger. Jabil, which provides outsourced manufacturing services to a wide range of technology firms, delivered another impressive quarter Tuesday night, pushing shares up +9% in Wednesday trading. You can see the company's momentum build quarter by quarter. Fiscal first-quarter sales fell about -7% from year-earlier levels, second quarter sales rose by about +4%, and the company just announced that fiscal third quarter sales rose a whopping +32% to $3.45 billion, nicely ahead of the $3.2 billion forecast. Fiscal fourth-quarter sales are now expected to rise +25% to +30% from a year earlier to around $3.9 billion, far ahead of the $3.3 billion consensus sales estimate. Excluding a series of one-time charges, profits are also expected to exceed the consensus forecast in this fiscal fourth quarter. Action to Take --> Is it any wonder why this is a leading gainer today? Look for analysts to boost their fiscal (August) 2011 profit forecasts from the current $1.63 to around $2. Even with shares rising smartly today, they still trade for just over seven times that upwardly revised forecast. Most impressively, Jabil never earned so much as $1 a share in years past. Management, after tinkering with costs and exiting low-margin contracts, has really built up a head of steam for Jabil.------------------------------------Used Cars in Hot Demand Sales of new cars and trucks have rebounded at a solid clip after the recent economic crisis, yet many shoppers are still searching for a good used car to replace their aging jalopies. That trend is showing up in CarMax's (NYSE: [KMX](http://streetauthority.com/stocks/KMX) ) quarterly results. The nation's largest seller of used cars noted on Wednesday morning that fiscal first quarter sales rose an impressive +23%, nearly double the growth rate that analysts had been expecting. And that led to a 33% upside profit surprise, marking the fifth straight quarter in which profits exceeded forecasts by a wide [margin](http://investinganswers.com/term/margin-82) . That's pushing shares up +9% today.CarMax has a strong reputation among institutional investors. The company has typically earned a fairly high rate of [return on invested capital ( ](http://investinganswers.com/term/return-invested-capital-roic-1188) [ROIC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ROIC&selected=ROIC) ) by identifying store locales and by making vehicle purchasing decisions that will give it the best bang for the buck. CarMax makes roughly $2,000 on every car it sells, which is higher than almost all independent used car dealers. And the company sure moves a lot of metal. More than 100,000 cars were sold off its lots at its 103 locations in the May quarter -- the highest amount in several years. Action to Take --> Growth rates should moderate from here, as the auto retailer comes up against tougher year-over-year comparisons. Look for CarMax to earn close to $2 a share in fiscal (February) 2012, much higher than the current consensus $1.40 forecast. It may take awhile for the consensus to rise that high as management won't issue fresh guidance until next winter, and many analysts may neglect to extrapolate the first quarter strength into subsequent quarters. Even after today's spike, shares trade for a very reasonable 11 times 2012 profits, and may eventually trade up to be valued at 14 or 15 times earnings, good for a +30% to +35% gain. ------------------------------------ZymoGenetics gets an Upgrade It's always helpful when analyst's lay out a clear and simple case for a stock. UBS has just upgraded ZymoGenetics (Nasdaq: [ZGEN](http://streetauthority.com/stocks/ZGEN) ) to "buy," with a $6.50 price target. They note that shares are undervalued, after falling from $6.50 in mid-April to a recent $4.27. Shares are getting a +7% boost on Wednesday.ZymoGenetics is pursuing a number of promising drugs, and the UBS analysts have placed a value on each one. For example, its Recothrom drug, which controls moderate bleeding and is already on the market, is worth $1.59 a share. Three other drugs that are in the midst of clinical trials are worth a collective $3 a share, and the company also has $1.89 a share in cash. Add it up, and you're just two pennies shy of that $6.50 price target. Action to Take --> As with any biotech firm, the actual value of those three in-development drugs will be a lot more or less than UBS believes, depending on whether the trials are a success and they get the FDA nod. But this does look like a nice combination of proven value (Recothrom plus cash), that likely puts a $3.50 floor on the stock. Even after Wednesday's spike, shares still have +30% upside to UBS' target price.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.-- David StermanStaff WriterStreetAuthorityDisclosure: David Sterman does not own shares of any security mentioned in this article. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 1.21053 Stock Price 2 days before: 9.65086 Stock Price 1 day before: 9.70092 Stock Price at release: 9.77656 Risk-Free Rate at release: 0.0007	9.77098
Symbol: GCI Security: Gannett Co., Inc. Related Stocks/Topics: Markets Title: Strategy sees Gannett pushing lower Type: News Publication: optionMONSTER Publication Author: Unknown Date: 2010-06-23 12:08:00 Article: Gannett is showing signs of rolling over, and one investor is positioning for another push to the downside. [GCI](http://www.optionmonster.com/cms/commentary/images/gci.png) optionMONSTER's Depth Charge tracking system detected the purchase of 1,250 August 16 puts for $1.20 and the sale of an equal number of August 14 puts for $0.50. The transactions came against virtually no existing open interest and resulted in a debit of $0.70. GCI fell 2.2 percent to $15.98 in morning trading. The newspaper publisher is up 8 percent since dipping below $14 on June 4 but then dropped after trying to hold above its 50-day moving average.The recent peak represented a lower high than those recorded in April and May. The stock has also been making incrementally lower lows, which some traders may interpret as evidence of a bearish trend.The option strategy, known as a bearish put spread, will ean a maximum profit of about 186 percent if GCI closes at or below $14 on expiration.Smaller declines in advertising and big cost cuts allowed the company to report better-than-expected earnings on April 16. The next release hasn't yet been scheduled.Overall options volume in GCI is 4 times greater than average so far today, with puts accounting for 94 percent of the activity. (Chart courtesy oftradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved. Stock Price 4 days before: 16.6341 Stock Price 2 days before: 17.0312 Stock Price 1 day before: 16.6309 Stock Price at release: 15.9781 Risk-Free Rate at release: 0.0007	13.7994
Symbol: BRY Security: Berry Corporation Related Stocks/Topics: Markets\|RRC Title: Chris Pikul Favors 'Oily' Names; Cautious on Gas Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-06-24 04:02:00 Article: Chris Pikul Favors 'Oily' Names; Cautious on Gas [](http://www.addthis.com/bookmark.php?v=250&pub=xa-4b26e4054a784caa) Source: Brian Sylvester of [The Energy Report](http://www.theenergyreport.com/) 6/24/10[http://www.theenergyreport.com/pub/na/6625](http://www.theenergyreport.com/pub/na/6625)[Image](http://img.ibtimes.com/www/data/articles/full/2010/06/24/14385.jpg) Morgan Keegan Analyst Chris Pikul is bullish on oil and soft on gas but believes you can still "win the game" by being a discriminating investor in oil and gas E&P companies. "You need to be really focused on gas companies with the best quality assets and strong balance sheets. . .you really have to pick and choose," says Chris, a big picture value investor who never stops thinking about how different market factors will influence the equities he covers. In this exclusive interview with The Energy Report, Chris' impeccable attention to detail is on display as he picks a few of his favorites in the E&P space. . .just for you. The Energy Report: In a recent research report, you said: "While we can endlessly debate the direction of short- and long-term gas prices, we think the argument for oil remains more visible and fundamentally appealing for E&P investors." Have recent events such as the Gulf Oil crisis, China's slower growth and Greece's sovereign bailout changed your thesis?Chris Pikul: Well, that's an insightful question. Broadly speaking, we've discovered quite a bit of new gas supplies here in the U.S. I think there's a consensus among industry personnel that $4, sub-$5 and possibly up to $6 gas is not a high enough price to satisfy the market on the longer term. Obviously, I think there's a supply and demand imbalance that could certainly result in lower prices. We need to be cautious of gas prices and how they're going to impact the equities.On the oil side, we're still growing our demand; China is certainly a big part of that. I think the oil market can still be characterized as, perhaps, supply challenged. That's in sharp contrast to what has happened in the U.S. gas market, which is domestic and not quite as subject to global influences, at least not just yet.Has that thesis changed? I would have to say, "not really," though the difficulty with the oil side of the equation over the past couple of years has certainly been how the commodity trades in relation to the dollar. It's created quite a bit of volatility. The dramatic change in oil prices from $30 to $150 hasn't really been supported one way or the other by dramatic changes in supply or demand. You're seeing a lot of assets move around as investor preferences change asset classes in relation to perceived risks in currencies, such as the euro as a result of, as you mentioned, the Greek sovereign debt. That can certainly create some swings in oil. So I wouldn't say I am any less bullish on oil, but this sector is giving us opportunities to pick and choose good entry points, and it's been a trader's market. I would say in the longer term that our preference for oil remains unchanged.Any sort of limitations on deepwater drilling has the potential to be modestly bullish for both gas and oil prices. But, again, the U.S. is really a marginal supplier of oil; so, perhaps less impact on oil, potentially bigger impact on the domestic gas supply. TER: The report I referred to earlier was published in January. In that report, your 2010 price projections for oil and gas were $70 and $5.50, respectively. Why were you lower than consensus from the get-go?CP: Well, that's also a very interesting question. I think it is important to establish to investors a reasonable price deck that people should be willing to buy into. If you're going to start buying into very optimistic futures strips, and buying into the $85-$90-$100 oil argument to justify equity investments when prices are between $70 and $80, I think that dramatically increases your risk exposure. I'm really trying to be less predictive of these prices and more interested in determining a reasonable rate range. And certainly in the case of oil, I simply wanted to be conservative; but with gas, I felt that there was some potential weakness that could find its way into that market. We have certainly seen that; I think it bounced up close to $6 at the end of the year, and then we wandered down to $4.The problem is while we definitely had a weaker gas price in 2009, some of the gas stocks certainly participated in the market rebound; so, you had a decoupling of gas market fundamentals and equity performance. To me, that also increased the relative risk of owning gas companies. And we have certainly seen some more definitive outperformance from the oil names than the gas names this year; so I think the gas stocks are slowly starting to reflect perhaps some changing investor sentiment as to the pace of or timing of any real recovery in natural gas prices. TER: What is that investor sentiment?CP: I think people believed fewer operating gas rigs were going to have a big supply impact. I think a lot of people were a little surprised that never seemed to find its way into the domestic production numbers last year. Meanwhile, oil prices are giving a much better margin in the group. I think this notion of a pending gas recovery has sort of kept people involved on the equity side. You're starting to see some of that diminish. The luster is coming off that argument, so you're seeing people gravitate more towards the oily names. TER: What are your oil and gas projections for 2011?CP: I'm at $75 and $5.25, respectively, for 2011. Clearly we've seen a little rally in gas prices here for various reasons, but I think that $5.25 could even be a little aggressive. Consensus is still $5.75 for gas; I don't quite know how much faith to place in these consensus numbers, but it still seems like a recovery is baked into some people's expectations of the gas market. I am about as aggressive as I want to be on the gas side. TER: In another report, you said: "Based on our view that natural gas prices will display much less volatility in 2010. . .We think margin and cost control will become even more important tools for investors to help differentiate between E&P companies." At the same time, you rated [Petrohawk Energy Corporation ( ](http://www.theenergyreport.com/cs/user/print/co/1602) [HK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HK&selected=HK) ) as an outperformer, even though it had the lowest margin of any company on your list. Please explain that decision. CP: As Petrohawk starts to ramp up production in its Haynesville Shale play, you're going to see company-wide margins improve; and, really, their margins are more a function of pricing right now.The problem that the market is having with a lot of these gas names-and certainly one that I wrestled with-is that for the first time we're looking at a tremendous resource potential beyond what a company already books as proved. In Petrohawk's case, they're talking 30 TCF; that's a 10x plus multiple to where they are proved-clearly that resource is worth something.We understand that investors are only willing to pay forward for so much of a resource, but this is sort of a new paradigm for people. In the past, if you had two, three, four, or five times proved in inventory, that was considered quite a multiple of resource to proved. I would expect to see relatively stronger multiples for these gas companies. This inventory is worth something; $4 or perhaps it's not worth that much. People don't think it will be worth that much but it's an important factor. I think that's part of the reason we didn't see these gas stocks necessarily directly track gas prices last year because, while gas prices were wandering lower, well results were continuing to get better and people were proving up more resources. It was creating a little bit of a conflict for investors.When I say "less volatility," we think increasing supply that would perhaps temper the market, albeit in the $4-$5 range, but rather than relying on gas-price upside, which remember pre-Haynesville, the gas market was still considered supply challenged. So, the prospect for high prices or permanent $7 plus sort of pricing was part of investor psychology, and pricing upside does create a lot of the upward justification for equity investment in some of these companies. In a $4-$5 price environment, investors are going to have to shift their focus when considering investing in a gas company; certainly operating margins are going to be a more important component. In an area like the Haynesville, you have very productive wells and generally low lifting costs. As more and more of Petrohawk's production shifts into Haynesville production, we should see company-wide margins improve. To their credit, they had among the lowest lifting costs in the group; so, you're seeing their overall net margins compressed more by pricing than by operating efficiency. TER: Earlier you said that investors will have a de facto preference for some of the more oily names. What are some of the more "oily" names you like?CP: Here at Morgan Keegan one of our top picks for the year was [Whiting Petroleum Corporation ( ](http://www.theenergyreport.com/cs/user/print/co/1273) [WLL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WLL&selected=WLL) ) , a company that has a nice footprint in the Bakken Shale play. Let me just say there's much less oil focus with smaller cap and E&P companies, so the sandbox is a little smaller when it comes to identifying oil companies. A little harder to find but within my specific coverage group right now I have [Berry Petroleum Company ( ](http://www.theenergyreport.com/cs/user/print/co/1038) [BRY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BRY&selected=BRY) ) , Whiting, [Concho Resources Inc. ( ](http://www.theenergyreport.com/cs/user/print/co/2114) [CXO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CXO&selected=CXO) ) was a recent addition, [Continental Resources Inc. ( ](http://www.theenergyreport.com/cs/user/print/co/1560) [CLR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CLR&selected=CLR) ) , and certainly [Kodiak Oil and Gas Corp. ( ](http://www.theenergyreport.com/cs/user/print/co/1317) [KOG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KOG&selected=KOG) ) in the smaller caps.These companies certainly stand out. And as the preference for oil seems to have increased, we're certainly seeing outperformance in many of these companies. But Whiting is one that I like for the footprint in the Bakken, and it has an interesting exploration program where the company's had some pretty good success on a fringe area of the Bakken it's calling Lewis & Clark. It has a very big footprint there of 200,000 acres; that's one that can be a catalyst for the shares. Whiting's evaluation didn't typically reflect the high multiples that people are willing to pay for high-margin oily growth from peers, like Continental, which has a much bigger acreage footprint-over 600,000 acres in the Bakken. TER: What's your target price on Whiting?CP: Well, officially, we don't have target prices at Morgan Keegan so I'll probably have to defer that question; but we have fair value ranges that tend to change based on fluctuations. TER: Tell us about the other companies you mentioned, perhaps Berry. CP: Berry is a heavy oil producer and it's kind of in a unique position. The company benefits from low gas prices to generate steam for their thermal recovery operations in California. So they're benefiting on both sides-lower gas prices and higher oil. We think that stock trades relatively cheaply, less than what we think their proved reserves are worth (in other words, what they've already discovered). The stock seems to have found a range below $35 that we peg as what their reserves are worth, granted that is forecasting another year of reserve growth. Berry should appeal to a lot of value investors, even though it's still growing at a decent, respectable rate of about 10%. TER: You mentioned a couple of others-Concho and Kodiak; how about those?CP: Concho operates in the Permian Basin, which typically has been viewed over the past several years as a tired, mature basin. But this is a place where oil is still being produced. Concho has been a consolidator; it bought some decent acquisitions late last year. This is a company that is primarily oily and has a very good growth profile. For investors looking for a lot of oily exposure, this has been a popular name. You're seeing a fairly robust multiple there; but if oil stays at these levels or reaches the $80-$85 or $90 consensus number, there's certainly a lot of upside to the assets. That's sort of a simple story, but people are looking to the Permian, people wanting to acquire assets. This is an area that can certainly be ripe for additional growth through M&A activity going forward. TER: Is new technology basically making resources available in older basins that were not available previously? CP: Oh, very much so, and you really saw it on the gas side. The technology was developed for the Barnett Shale in terms of horizontal drilling. As the industry found better ways to expose the drill bit to more rock and to more efficiently stimulate that rock, we transitioned into the overpressure Haynesville. And now the Marcellus and the Granite Wash-this new drilling completion technology-certainly opened a tremendous wealth of gas resources, which is still being digested by politicians and investors alike. There are some arguments that certainly gas should feature a more prominent role in the nation's energy future, though that hasn't gained a lot of traction until just recently.And, generally speaking, though the process and the technologies are a little different, what we're seeing in the Bakken in terms of 10,000-ft. horizontal laterals, is 18 stages of completion-that same sort of technology is helping to open up oily plays as well. TER: Earlier you mentioned that gas-company stocks had experienced dramatic rises last year even though the gas price did not experience much of a rise at all. What's the outlook for gas companies for the remainder of 2010?CP: I think part of the reason for the outperformance last year was because we were coming off a very distressed equity market; in some cases, stocks traded quite low for a brief period of time. On a calendar-year basis, you certainly saw gas equities participate in the overall energy and broader market recovery; although looking forward, I think gas prices could very well be between $4 and $5 this year. I think that's probably incrementally negative to what investor perception may be. Most companies have fairly attractive hedges still in place that are supporting cash flows. The problem some of these companies are facing is that these higher-priced hedges put in place a year or two ago-call it $6.50 up to $7-roll off in 2011, even though they're growing production sometimes in the neighborhood of 30%-40%.Cash flow is growing much less because the realized pricing is going to be down in 2011. So for companies still bootstrapping a new shale program, they're outspending cash flow. You need to be really focused on gas companies with the best-quality assets and strong balance sheets to ensure they can develop these assets in this kind of price environment. You really have to pick and choose. I think it gets a little harder to do that on the gas side. There are still quality companies out there with very attractive, long-term potential. TER: Speaking of "long-term potential," which E&P gas names are you following that have attractive, long-term potential?CP: One of the easiest cases you can make is for [Range Resources Corporation ( ](http://www.theenergyreport.com/cs/user/print/co/1594) [RRC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RRC&selected=RRC) ) . We've seen a lot of joint ventures in the Marcellus, where they're one of the biggest acreage holders-deals between $10,000 and $14,000 per acre just to get into these plays. There have certainly been some transactions for less, in the $5,000-6,000 range, but we see Range as the first mover in this play with ramping production. They're over 100 MMcfe a day now; they're in a liquids-rich portion of the play, which increased margins. Marcellus, for the time being, gets a small premium in pricing in the Northeast vs. Henry Hub. Marcellus has a lot of attractive features, so that's drawing a lot of investors from other E&P companies.If you apply some of those acreage metrics to Range-call it 900,000 in the Marcellus Fairway-you can get into some pretty dramatically higher equity prices. So, if you're going to believe in something north of $10,000 an acre, you can get to an $80 stock pretty easily. Right now, I believe the stock is probably more reflective of a $5,000-6,000 an acre implied value on their Marcellus stuff. And that doesn't really apply much value to any of the other assets the company has in the Barnett outside of what they've already proven. I think that's one gas name where even recent transactions in a relatively weak fundamental environment suggest the long-term outlook will be fairly bright. TER: What about some other names?CP: Well, Petrohawk, like I said, they have a very attractive Eagle Ford Shale position, which has a liquidy component. It seems to be trendy to be liquidy and, make no mistake, Petrohawk is certainly very levered to gas prices at this point-but from an asset perspective and from where they trade vs. what we think their proved NAV is worth, which again I am pegging at year-end 2010 at a $5.70 benchmark price, somewhere in the neighborhood of $15. They're trading at a premium to what they've already proven, but with such large resource potential behind what they've already proven, I certainly think that a healthy premium to what they've already proved is in order despite a gas market that has some pricing risk over the next 6-12 months.Again, asset quality and the balance sheet are very important considerations in any gas investment in this environment. I think a company with a little bit of a different twist on the gas component is [Bill Barrett Corporation ( ](http://www.theenergyreport.com/cs/user/print/co/1340) [BBG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BBG&selected=BBG) ) , a company I recently upgraded. Traditionally, the Rocky Mountains has been a region compromised by natural gas prices due to pipeline infrastructure issues that have resulted in sometimes dramatically lower gas vs. national prices. With the pullback in drilling, especially in the Rockies, Bill Barrett actually has very strong margins and good liquid production from their Piceance play. And with that pricing disadvantage gone, certainly for the time being and perhaps over the longer term, I think that makes their assets more attractive. They traded at really a rock-bottom valuation compared to the group. They have some legislative issues that may be resolved this summer, which will allow them to reaccelerate drilling in one of their core properties. That could result in some very strong production growth in 2011. So, that's a much cheaper, much more palatable way to play the gas market. They certainly don't have the kind of resource potential that companies like Range and Petrohawk represent, but I certainly don't think you're paying for it in this environment. TER: Are there any other even smaller names that you like?CP: Kodiak, as I mentioned before, has about 30,000 net acres in the Bakken. It's a little bit of a smaller player but one that will be growing production rapidly. They, potentially, could double production this year. They also have some potential in the Three Forks/Sanish area, which various companies are in various stages of proving up. Both of these formations could be productive areas of the Bakken. This is very much a growth vehicle, but one that is more palatable to small-cap people. TER: Any thoughts you'd like to leave our readers with?CP: This is an exciting group to follow. A lot of factors can influence the equity prices here; and with the problems in the Gulf going on, there are a lot of different ways to analyze this group. Right now, the volatile swings give you some opportunities to periodically dip in and own some very good-quality companies. We're seeing anywhere from 10%-20% moves in a week or two. It hurts to be on the wrong side of these; but, if you're timing your way into quality companies, I think you could really look back at this as a quality time to be adding select companies. It's challenging, but it gives you a chance to win the game.Chris Pikul, CFA, joined the firm in 2007 as a senior equity research analyst covering the energy exploration and production sector. Pikul is based in Denver, Colo. Prior to joining Morgan Keegan, Pikul was an analyst with A.G. Edwards for seven years covering small and mid-cap energy stocks. He also worked for four years at Invesco Funds. A chartered financial analyst, Pikul received his bachelor's and master's degrees in finance from the University of Colorado.Want to read more exclusive Energy Report interviews like this? [Sign up](http://www.theenergyreport.com/cs/user/print/htdocs/38) for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our [Expert Insights](http://www.theenergyreport.com/pub/htdocs/exclusive.html) page. DISCLOSURE:1) Brian Sylvester of The Energy Report conducted this interview. He personally and/or his family own the following companies mentioned in this interview: None.2) The following companies mentioned in the interview are sponsors of The Energy Report: None.3) Chris Pikul: I personally and/or my family own shares of the following companies mentioned in this interview: None. I personally and/or my family am paid by the following companies mentioned in this interview: None. See Morgan Keegan disclosure. Morgan Keegan Disclosure:Morgan Keegan & Co., Inc. has managed or co-managed a public offering of equity securities for these companies in the past 12 months: BRY, CXPO, EXXI and HK.Morgan Keegan & Co., Inc. has received compensation for investment banking services from these companies in the past 12 months: BRY, BPZ, CXPO, EXXI and HK. Morgan Keegan & Co., Inc. expects to receive or intends to seek compensation for investment banking services from these companies in the next 3 months: BRY, BPZ, EXXI, HK and XTO.Streetwise - [The Energy Report](http://www.theenergyreport.com/) is Copyright © 2010 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.The Energy Report does not render general or specific [investment advice](https://www.nasdaq.com/education/stock-market-where-buyers-and-sellers-meet) and does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report.From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported. Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.Participating companies provide the logos used in The Energy Report. These logos are trademarks and are the property of the individual companies.Streetwise Reports LLCP.O. Box 1099Kenwood, CA 95452Tel.: (707) 282-5593Fax: (707) 282-5592Email: [[email protected]](mailto:[email protected]) Stock Price 4 days before: 32.5544 Stock Price 2 days before: 32.0397 Stock Price 1 day before: 31.1663 Stock Price at release: 29.9594 Risk-Free Rate at release: 0.0007	29.7646
Symbol: RDUS Security: Radius Health, Inc. Related Stocks/Topics: Markets\|ORCL\|KBH\|ACN\|NEM Title: Market Wrap-Up for June 25 (ACN, ORCL, KBH, NEM, ABX, MON, SCHN, more) Type: News Publication: Dividend.com Publication Author: Unknown Date: 2010-06-25 04:16:00 Article: We are entering the period at the end of the quarter where fund managers like to prop up their portfolios with stocks that have been acting well throughout the quarter.The term is called "window dressing". We have not seen much of this phenomenen occur yet, but it could still happen, with 4 trading days left in the month. Investors may get an opportunity to make some adjustments as well if certain stock holdings warrant a move. Looking at today's session, there were a couple of earnings highlights from last night that are powering the gainers list. Oracle ([ORCL](http://www.dividend.com/dividend-stocks/technology/application-software/orcl-oracle-corp/)) ) and Accenture ([ACN](http://www.dividend.com/dividend-stocks/services/management-services/acn-accenture-plc/)) ) saw its results cheered by Wall Street. KB Home ([KBH](http://www.dividend.com/dividend-stocks/industrial-goods/residential-construction/kbh-kb-home/)) ) had a bit of the opposite happening following its results, with selling pushing the stock to new 52-week lows. Gold-related shares have been big winners this quarter and are once again moving up today. Barrick Gold ([ABX](http://www.dividend.com/dividend-stocks/basic-materials/gold/abx-barrick-gold/)) ) and Newmont Mining ([NEM](http://www.dividend.com/dividend-stocks/basic-materials/gold/nem-newmont-mining/)) ) are pacing the gains. Volume spiked toward the close as some of the indices rebalanced as they do usually do in the last week of June.Looking ahead to next week, we will be getting results from companies such as Barnes & Noble ([BKS](http://www.dividend.com/dividend-stocks/services/specialty-retail-other/bks-barnes-and-noble/)) ) , Monsanto ([MON](http://www.dividend.com/dividend-stocks/basic-materials/agricultural-chemicals/mon-monsanto/)) ) , and Schnitzer Steel ([SCHN](http://www.dividend.com/dividend-stocks/basic-materials/steel-and-iron/schn-schnitzer-steel/)) ) . Be sure to catch up with the latest watchlists this weekend in Dividend.com Premium.Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php) . Created by Dividend.com Stock Price 4 days before: 0.0 Stock Price 2 days before: 0.0 Stock Price 1 day before: 0.0 Stock Price at release: 0.0 Risk-Free Rate at release: 0.0005	0
Symbol: MNKD Security: MannKind Corporation Related Stocks/Topics: ORCL\|Markets\|ACN\|SAP Title: Friday Winners: Oracle, Accenture and MannKind Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-06-25 11:05:00 Article: Among the biggest winners in Friday's early trading are Oracle (Nasdaq: [ORCL](http://streetauthority.com/stocks/ORCL) ) , Accenture (NYSE: [ACN](http://streetauthority.com/stocks/ACN) ) and MannKind (Nasdaq: [MNKD](http://streetauthority.com/stocks/MNKD) ) .HTML clipboard Oracle makes Quick Progress with Sun When software developer Oracle (Nasdaq: [ORCL](http://streetauthority.com/stocks/ORCL) ) announced plans to acquire Sun Microsystems last year, most thought that CEO Larry Ellison had finally gone too far with the company's growth-through-acquisition strategy. After all, Oracle is a software giant, and had little experience selling the kinds of hardware that Sun Micro sold. Moreover, Sun had become a no-growth platform that was barely profitable. Well, score one for Oracle. Fiscal fourth-quarter results that were released Thursday evening show that Sun is contributing to growth and profitability already. And that's pushing shares up nearly +3% in Friday trading. Oracle believes that by adding Sun, it now has a more comprehensive platform that is opening up more sales opportunities. The company spent a fair share of its press release trash-talking rival SAP (NYSE: [SAP](http://streetauthority.com/stocks/SAP) ) , which would be quite an unusual move -- if it were any company other Oracle, that is nothing if not brash.Oracle also noted that Sun could contribute $2 billion in [cash flow](http://investinganswers.com/term/cash-flow-1175) by next year, which would be well above what most analysts had come to expect. But it's too soon to sound the all-clear. Sun had lost a lot of momentum before being acquired, and it's too soon to conclude after one quarter that Oracle can truly rebuild [market share](http://investinganswers.com/term/market-share-778) for Sun's servers.Most important for investors, Oracle says that demand in Europe has been quite strong. I have been speculating that Euro-related woes would start to hurt U.S. multinationals in the coming [earnings season](http://investinganswers.com/term/earnings-season-344) , but that's not the case here. "There's no question the U.K. government and a number of our big customers have been impacted by different things in Europe, but we have so many products and so much diversity in our European base that things are going well for us so far," said company president Safra Catz on the conference call. Action to Take --> Some of the quarterly strength may be due to an end-of-fiscal-year sales push. But as is the case with many other tech giants, shares trade at very reasonable multiples, and Oracle appears set for continued respectable growth in the near-term. Management's task is to queue up the next large deal to maintain growth over the mid-term. Despite Friday's rally, shares look quite attractive.-------------------------------------Accenture's Euro Headwinds Shares of consulting firm Accenture (NYSE: [ACN](http://streetauthority.com/stocks/ACN) ) are showing the perils of doing business in Europe these days. The company announced on Thursday evening that sales grew +8% in its fiscal third quarter, but the weaker euro trimmed that figure to +4%. That should give you an insight as to what we may see as earnings season gears up in a few weeks. Despite the [currency](http://investinganswers.com/term/currency-120) headwind, analysts applaud the results, and shares are up nearly +6% in Friday trading. The rebound is a bit of a "relief rally," as investors had been pushing shares down in recent weeks on Europe-related concerns. Accenture derives more than half of its revenue outside of the United States. This has to be seen as a positive trading sign for many stocks that have also been pushed down recently on Europe concerns. Perhaps we're set up for a "sell on the rumor, buy on the news" rally. Action to Take --> Regardless of all the background noise, this is a low-growth business. Analysts at Kaufman Brothers note that the company is having a hard time securing new contracts, deal sizes are getting smaller, and competition is intense. "A 7% bookings decline a year into the economic recovery simply does not support the widespread thesis that Accenture is a likely beneficiary of a nice cyclical recovery in IT spend, in our view," they note. Despite the rebound on Friday, this looks to be one of the slower-growing business models in the tech consulting sector.-------------------------------------MannKind's Doubters Remain When it comes to biotech stocks, investors and analysts' emotions can run high. These stocks trade on perception: will a new drug or device prove effective or be a dud? -- and major sums of money are made or lost on that question. MannKind (Nasdaq; MNKD) , which is developing an inhalable form of insulin, is a poster child for this kind of controversy. Legions of diabetics would surely benefit from no longer needing to use a syringe for insulin. But the company's detractors say that Afrezza, its key drug, is not as effective, and won't get the nod from the Food and Drug Administration ([FDA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FDA&selected=FDA)) ).MannKind is playing offense on Friday, stating that Afrezza is comparably effective to injectable forms of insulin, and also doesn't yield the weight gain seen with injectable insulin. The company is expected to release its findings on Saturday at the American Diabetes Association's annual meeting. Shares are up nearly +6% on Friday in anticipation of that meeting, after rising more than +10% on Thursday. Action to Take --> In addition to diabetes, MannKind also believes that its inhalable devices can be used as a drug delivery mechanism for cancer vaccines. Clearly, the company is facing a large market opportunity, but shares have been dogged by a seemingly tepid response from the FDA, which has questioned Afrezza's efficacy. That news pushed shares down sharply a few months ago. I'll leave it to biotech experts to decide whether these approaches have a high degree of success. The stock certainly merits further research. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.-- David StermanStaff WriterStreetAuthorityDisclosure: David Sterman does not own shares of any security mentioned in this article. © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 5.91981 Stock Price 2 days before: 6.11037 Stock Price 1 day before: 6.02138 Stock Price at release: 7.04 Risk-Free Rate at release: 0.0005	6.52733
Symbol: DX Security: Dynex Capital, Inc. Related Stocks/Topics: Markets\|IPO\|NOC\|FMC Title: Commodity Trends:Fuel price hike to stoke inflation Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-06-28 03:20:00 Article: India's inflation is set to zoom with the announcement by the Manmohan Singh government on the freeing up of petrol and diesel prices. The announcement has raised hopes of a further decontrol of the oil sector over the next few years, which could help balance public finances and let private companies challenge state-run firms' decades-old retailing monopoly.Prices of cooking gas and kerosene, the biggest component of subsidies, were raised lower than recommended by a panel of experts, to avoid burdening poor people and ward off opposition within the coalition. Meanwhile, India's annual monsoon rains, key to farm output and economic growth, are expected to be better than previously forecast, raising prospects of good harvests and possibly helping cool double-digit food inflation. Monsoon rains, which deliver 75-90 percent of India's rainfall, are expected to be at 102 percent of the long-period average for the June-September season, the weather office and government officials said on Friday.POINTERS Mangalore key port for coffee exports Mangalore has emerged the key port for export of coffee. If reports from exporters turn out to be true, it has become the leading port for the commodity's exports this fiscal. With Maersk stopping its direct line service to Chennai from the US east coast, the Karnataka port has turned out to be the favourite of the exporter. "C/offee is exported in green and soluble or instant forms. Chennai is the port for export of instant," said Mr Milan Shah, an exporter based in Bangalore. FMC may allow sugar futures by October The commodity market regulator, the Forward Markets Commission ([FMC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FMC&selected=FMC)) ) plans to allow sugar futures trading by October. The trading in the commodity is banned till September 31 due to a rapid rise in the commodity's prices in the recent past."Earlier, we had planned to wait till September to have a better view about crop prospects. However, as the crop acreage is higher this year with a better production estimate, we will not extend the ban beyond September 31," B C Khatua, chairman, FMC, said on the sidelines of a consumer awareness programme organised by the National Multi Commodity Exchange here.(Europe crisis hits India coffee exports The impact of Europe's economic crisis on India's coffee exports has started to show, in the form of weak demand for the robusta parchment variety. Major exporters have expressed concern that despite the spurt in robusta and arabica prices on the London and New York coffee exchanges over the last month, sales have not picked up to the anticipated level. India produces 15,000-20,000 tonnes of robusta parchment, all of which is exported. While the latest crop was expected to be above 25,000 tonnes, growers said there were feeble inquiries for the same. The debt-hit countries -Greece, Italy, Spain and Portugal - account for 34 per cent of India's coffee exports. MCX gets approval for IPO India's largest commodity bourse, Multi Commodity Exchange ([MCX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MCX&selected=MCX)) ), has got unconditional approval from regulator Forward Market Commission ([FMC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FMC&selected=FMC)) ) to launch an initial public offer ([IPO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IPO&selected=IPO)) ).On April 22, FMC had granted a no-objection certificate ([NOC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NOC&selected=NOC)) ) to MCX for its proposed IPO, subject to the condition that the exchange sells a 10 per cent stake to public sector firms and agri-co-operatives.However, the exchange could not find any buyers for its offer last month and hence approached the FMC for exemption of this condition. NSEL to launch 15 commoidities under E-Series National Spot Exchange Ltd. ([NSEL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NSEL&selected=NSEL)) ) has announced its plan to launch 15 commodities under E-Series for developing a full-fledged "cash" or "investment" segment in commodities. This is happening for the first time in the history of the commodity market in India, according to an NSEL release. Commodity exchanges are generally known for providing a hedge instrument for protection against price risks. But they do not provide an instrument for investment where retail investors can park their funds with a view to enjoying price appreciation. In order to cater to this need, the market has to develop and launch investment products in commodities. This will give birth to a niche segment of commodity market investors, who wish to diversify their portfolio by parking part of their surplus funds in commodities, the release said BSE Sensex steady The benchmark index of the Bombay Stock Exchange ([BSE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BSE&selected=BSE)) ), the Sensex, closed barely changed for the week, but dropped 0.9% on Friday, in tandem with world markets on worries of global economic recovery and expectations of tighter financial regulation ahead of a summit of the Group of 20 nations in Toronto.However, losses were capped as investors cheered a new gas supply agreement between the recently reconciled Ambani brothers and as the government approved market-determined petrol prices. The 30-share BSE Index declined for the second session as it closed down 0.88% or 155.71 points, to finish at 17,574.53. Bullion Spot Gold prices declined in the first half of the week but wiped out major losses towards the end of the week as risk aversion in the financial markets increased demand for the yellow metal. Spot gold prices touched a record high of $1265/oz in the previous week. China's indication to end its currency peg against the dollar led to risk appetite in the financial markets in the initial part of the week. But the positive sentiments faded away on concerns over the European crisis. Credit ratings agency, Standard and Poor's, slashed its economic growth forecast for Spain to the average of 0.7 percent a year through 2016 in the last week. The Federal Reserve left interest rates unchanged below 0.25% last week.The FOMC committee said that the financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad. Economic data from the US since the last week has been very poor indicating signs of a fragile recovery. Gold prices have gained around 14% on a year-to-date basis. Even the major central banks of the world are adding gold to their reserves to stay insulated in times of financial uncertainty. The Central Bank of Russia bought another 26.6 tonnes of gold over the past quarter, the World Gold Council reported. The official gold holdings of the central bank now accounts to 668.6 tonnes or 5.5% of its total reserves. The Philippines central bank bought 9.5 tonnes of gold, taking its gold holdings to 164.7 tonnes or 13.7% of total reserves. For the coming week, Gold prices will continue to gain in the medium term as the Euro-zone concerns still persist. Fears over the sovereign debt crisis in the Euro-zone will continue to haunt the investor sentiments. Moreover, economic data released from the US is indicating signs of a fragile recovery in the world's largest economy. This will help the gold prices to gain as the yellow metal is treated as a traditional safe-haven investment in times of financial uncertainty. For the coming week, Spot gold has a strong support at $1222/$1205 levels and resistance at $1270/$1290 levels. MCX August Gold has a strong support at Rs.18500/Rs.18440 levels and resistance at Rs.19200/Rs.19300 levels. Base Metals Base metal prices gained on the LME in the later part of the week on the back of the weakness in the US dollar index ([DX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DX&selected=DX)) ). The weakness in the DX made the metal prices more attractive for holders of other currencies. Copper prices gained more than 2.5% on the LME last week. Weakness in the DX coupled with positive data from Japan helped the red metal prices to gain. Japan's output of rolled copper product increased by 50.4 percent to 72,627 tonnes from a year earlier. Another factor that supported copper prices was the declining inventories at the LME warehouse. Inventories reached 454,250 tonnes, the lowest level in this year. We expect the DX to strengthen as risk aversion in the global financial markets will lead to higher demand. The G20 summit which begins on Saturday is a close watch as the financial ministers of the major economies would discuss on economic and financial reforms. Metal prices may wipe out gains and come under pressure taking cues from the movement in the DX. MCX June Copper shall find a strong support at 295/290 levels and resistance at 313/318 levels for the coming week. Energy Crude oil prices came under pressure last week after the US energy department reported that crude stockpiles rose 2.02 million barrels to 365.1 million in the week ended June 18. Concern over rising inventories in the US is denting the outlook for crude oil. Moreover, the International Energy Agency ([IEA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IEA&selected=IEA)) ) said in its report that growth in world oil demand will slow in the next five years as the pace of Chinese consumption moderates. Consumption will climb 1 percent to 91.93 million barrels a day in 2015, down from 1.5 percent growth in 2010. The National Hurricane center said on Thursday that Hurricane Celia strengthened to a Category 5 storm but it did not pose a threat to land. Crude oil prices will trade with a negative bias taking cues from the movement in the DX. The stronger DX will keep the crude oil prices under check. But, any news from the hurricane front could provide support to the prices. MCX July Contract shall find a strong support at 3450/3400 levels and resistance at 3680/3730 levels for the coming week. NYMEX August Crude has support around $73/$70 levels whereas resistance is seen around $80.50/$84.20 levels. Soybean Last week, NCDEX July Soybean prices opened the week at Rs 1907/quintal and touched a high of Rs 1916/quintal on first day of the week aftermath it fell slightly on account of weak fundamentals of oilseeds (domestic as well as global). But found good support at Rs 1892/quintal and finally closed at Rs 1908/quintal with a gains of Rs 4/quintal as compared to previous week's close of Rs 1988/quintal. Prices moved in a narrow range of Rs 1892-1916 per quintal in the last week on lack of fresh fundamentals. Higher carry-over soybean stocks this year as compared to last year and progress of monsoon. In the coming weeks, higher global soybean production estimate this year as compared to last year and poor export demand of domestic soy-meal may drag price down. The Solvent Extractors' Association of India has compiled data of oil meals export for the first two months of financial year i.e. April and May 2010, it is reduced to 3.78 lakh tonnes as compared to 4.17 lakh tonnes in April 2009 i.e. down by 9%. It is only due to lower crushing and disparity. NCDEX July contract shall find a strong support at 1870/1850 levels and resistance at 1925/1960 levels for the coming week. Pepper Black pepper prices surged in the last week on account of thin arrivals i.e. 30-40 metric tonnes. There are reports that the Indonesian crop is expected to be lower this year as compared to last year. Demand from the local stockists is present in good quantity in anticipation of higher prices in near term. Prices at the spot market surged by 4.53 percent and touched a high of Rs. 17, 144/qtl. In the coming week, prices are expected to be firm. NCDEX July contract shall find a strong support at 16750/16300 levels and resistance at 17800/18100 levels for the coming week. Rubber Physical rubber prices have zoomed to Rs 177 per kg for RSS 4 grade thereby recording an all-time high supported by bullish cues from global markets. Natural rubber prices gain last week on fears that heavy rains will lhurt output in Thailand, the largest producer of rubber.A monsoon is dumping heavy rains on many parts of Thailand, the world's largest NR producer, and rains are not expected to dissipate soon. NR for November delivery increased by 4.3 yen to 285.2 yen/kilogram ($3,184/metric ton) before settling at 284.7 yen on the Tokyo Commodity Exchange.India's spot rubber prices zoomed from Rs 170 per kg levels to Rs 177 even as supplies were limited at higher prices.NMCE July contract zoomed from Rs 168.48 to Rs 177.85 while August contract rose from Rs 163.50 to Rs 170.50. TOCOM June futures contract expired higher indicating growth in global demand,Analysts said that China, the world's biggest importer of natural rubber, is expected to increase its imports of NR to 1.68 million tons this year, up from 1.59 million in 2009. Inventory levels there are said to be "worse than expected," Bloomberg reported. As a result, analysts expect rubber prices to potentially increase 26% next year.In the near term, NMCE July has support at Rs 170 and August has support at Rs 168, the undertone will continue to be bullish with profit taking likely to weaken prices. Chana After exhibiting weakness for some time, chana prices have gained last week thanks to rising spot market demand and squeezed supplies. Production of chana in 2009-10 is estimated to be 7.38 mn tonnes as against 7.05 mn tonnes last year. Monsoon months favour chana as vegetable supplies are affected due to rains raising the demand for pulses such as chana and its cheaper substitute yellow peas. Chana has a major bearish factor in higher output hopes although demand in spot markets from dal millers is gaining momenturm. The July Contract at NCDEX rose from rs 2165 to Rs 2220 while August contract rose from Rs 2207 to Rs 2280 suggesting near term demand for chana is good and spot market demand is supportive of futures. (With analytical inputs from Angel Commodities, Mumbai) Stock Price 4 days before: 9.54597 Stock Price 2 days before: 10.3579 Stock Price 1 day before: 9.44553 Stock Price at release: 9.50008 Risk-Free Rate at release: 0.0007	9.97039
Symbol: ASA Security: ASA Gold and Precious Metals Limited Related Stocks/Topics: XAU\|Markets\|BAC\|FXC\|AXP\|RUT\|SPX\|NEM\|GGN Title: Look Out Below Type: News Publication: Unknown Publication Author: Unknown Date: 2010-06-28 07:45:00 Article: **After four days of declines, most market watchers expected a relief rally on Friday. And when a finalized version of a financial reform bill was agreed upon by the Senate and House, a rally was sparked.Bank stocks and related financial stocks surged on the news. Diversified financial services gained 3.4%, investment banks and brokerages gained 3.1%, and specialized financials were up 3.4%. Overall, the financial sector gained 2.8%. American Express Company (NYSE: [AXP](http://moneycentral.msn.com/detail/stock_quote?symbol=AXP) ) gained 3.7%, and Bank of America Corporation (NYSE: [BAC](http://moneycentral.msn.com/detail/stock_quote?symbol=BAC) ) rose 2.7%. But just two hours after the long-awaited deal, the market sagged even though the financials held their ground. And by the close, only a handful of sectors had retained the gains made earlier.Small caps in the Russell 2000 ([RUT](http://moneycentral.msn.com/detail/stock_quote?symbol=RUT)) ) jumped 1.9%, and the materials sector, led by gold and silver stocks, held its gains. Newmont Mining Corporation (NYSE: [NEM](http://moneycentral.msn.com/detail/stock_quote?symbol=NEM) ) rose 4.61%, and Freeport-McMoRan Copper & Gold Inc. (NYSE: [FCX](http://moneycentral.msn.com/detail/stock_quote?symbol=FCX) ) gained 4.93%. ASA Limited (NYSE: [ASA](http://moneycentral.msn.com/detail/stock_quote?symbol=ASA) ) rose 3.25%, and Gabelli Global Gold, Natural Resources &Income Trust (AMEX: [GGN](http://moneycentral.msn.com/detail/stock_quote?symbol=GGN) ) gained 1.82%.Volume was high as adjustments were made to match a rebalancing of the Russell indices, which will begin trading today.The final GDP reading for Q1 showed that the economy grew at a rate of 2.7%, which was slower than expected. Personal consumption growth increased, but at a rate of 3%, just missing estimates.The final consumer sentiment survey for June showed an improvement to 76 for the best reading since January 2008. However, none of the economic reports appeared to impact the day's trading results. The U.S. dollar fell versus the euro and the yen.At the close the Dow Jones Industrial Average ([DJI](http://moneycentral.msn.com/detail/stock_quote?symbol=DJI)) ) was down 9 points to 10,144, the S&P 500 ([SPX](http://moneycentral.msn.com/detail/stock_quote?symbol=SPX)) ) gained 3 points at 1,077, and the Nasdaq ([NASD](http://moneycentral.msn.com/detail/stock_quote?symbol=NASD)) ) rose 6 points to 2,223.The NYSE traded 2.6 billion shares with advancers ahead of decliners by almost 3-to-1. The Nasdaq crossed 1.7 billion shares, and advancers there were ahead by just over 2-to-1.Crude Oil for August delivery rose $2.35 to $78.86 a barrel on fear of a developing storm system in the Gulf of Mexico. The weather system (Alex) could develop into the first hurricane of the season. The Energy Select Sector SPDR (NYSE: [XLE](http://moneycentral.msn.com/detail/stock_quote?symbol=XLE) ) closed at $52.49, up 15 cents.August gold rose $10.30 to settle at $1,256.20 an ounce, and the PHLX Gold/Silver Sector Index (NASDAQ: [XAU](http://moneycentral.msn.com/detail/stock_quote?symbol=XAU) ) rose 6.45 points to 185.12. What the Markets Are Saying On Monday, June 21, stocks advanced early following a report that China would allow its currency to float more freely -- a potentially good piece of news. Buyers launched a brief attack on the 50-day moving averages, but by late afternoon, all of the early gains were lost and the day closed on a most disturbing note -- a daily reversal down. The negative impact of such a decline and reversal on good news could not have been worse. What followed were four days down, with Friday ending in a draw. Friday's struggle was almost as significant as Monday's decline in that the financials were ignited by the relief of the announced agreement to finally get a financial regulation bill going. But instead of the rally broadening, it remained confined to just the financial and financial services groups, and the bulls had to suffer another in a string of technical disappointments.With the major indices now below their respective 200-day moving averages, there has been significant technical damage to the market. We could get a "dead cat bounce" early in the week, but with the long Independence Day weekend ahead and some formidable resistance above, it is unlikely that any major gains will be made this week.As for the resistance, rallies will most likely be contained by the conjunction of a falling 50-day moving average and a rising 200-day moving average for each index. The market is now in a short- and intermediate-term decline, and the long-term trend is in doubt. If the indices close below the important February to May/June lows, then look out below. Today's Trading Landscape**Earnings to be reported after the close include: Barnes & Noble, Micron and SMSC. Economic report due: personal income and outlays (the consensus expects 0.5% for personal income, 0.2% for consumer spending). If you have questions or comments for Sam Collins, please e-mail him at [[email protected]](mailto:[email protected]) . Related Articles: - [Give Sprint a Second Chance](http://www.optionszone.com/trading-picks/trade-of-the-day/2010/06/stock-picks-sprint-nextel-corporation-s.html) - [7 Tips for Trading Options Like a Long-term Investor](http://www.optionszone.com/options-trading-101/getting-started/leaps-tips-for-trading-options-like-a-long-term-investor.html) - [7 Ways to Tell a Stock is Headed Down](http://www.optionszone.com/technical-analysis/chart-patterns/bearish-chart-patterns.html)** Double Your Money as the Market Plunges and Then Soars** The Dow is headed for 9,000 -- you can either get run over OR go along for a profitable ride. Download your FREE options trading guide for details on how to make a ton of money on the short side of the market. [Get your free copy here, including two trades you can make right now.](http://www.investorplace.com/order/?sid=HA4284) [](http://www.optionszone.com/order/?sid=NP3332) Stock Price 4 days before: 27.5411 Stock Price 2 days before: 27.9053 Stock Price 1 day before: 27.8832 Stock Price at release: 27.8645 Risk-Free Rate at release: 0.0007	25.7578
Symbol: HAIN Security: The Hain Celestial Group, Inc. Related Stocks/Topics: Unknown Title: How to Profit from the Organic Trend Type: News Publication: Cabot Wealth Network Publication Author: Unknown Date: 2010-06-29 11:41:00 Article: By Chloe LuttsOver a decade ago, in 1999, the New York Times ran an article titled "Squash With Altered Genes Raises Fears of 'Superweeds.' " As the article explained, scientists were worried that a new genetically engineered squash could pass its genes--and its laboratory-given resistance to a devastating squash virus--to wild squash plants. These plants would then gain an unfair advantage over other plants, both wild and cultivated, and become "superweeds."At the time, the threat genetically modified ([GM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GM&selected=GM)) ) crops posed to the environment was unknown and largely uninvestigated. The Agriculture Department's voluntary approval process for new GM crops relied on research done by the very companies applying for approval. (The virus-resistant squash was approved based on the seed company's tests on a total of 14 individual wild squashes, none of which had the virus.) As of November 1999, every single proposed GM crop brought before the Agriculture Department had been approved. Twenty to forty-five percent of the country's corn, soybean and cotton fields were already planted with GM crops. The squash only raised unusual concern because it had known wild relatives, unlike corn, soybeans and cotton. But the squash was approved regardless, and farmers began planting it. As far as I can tell, it did not create any mutant squash superweeds.However, the superweed threat would surface again. Five years later, in 2004, a fight was brewing over the approval of a genetically engineered grass. The "Roundup Ready" bentgrass, designed for use on golf courses, was engineered to be immune to the widely used herbicide Roundup (and its generic version, glyphosate.) Again, scientists were warning that the spread of the grass' GM genes to wild relatives could create grass superweeds that couldn't be killed by the popular herbicide.This time, the issue got a little more attention, thanks largely to a study done by scientists from the Environmental Protection Agency. The study used a much larger plot of test grass than any of the previous company studies. In the EPA study, pots of non-GM bentgrass were placed at varying distances from the field of Roundup Ready bentgrass. When the potted non-GM grass was tested at the end of the study, the scientists were shocked to discover that pots as far as 13 miles away from the test field had been pollinated by the GM bentgrass. This was much farther than anyone had anticipated pollen from the GM grass travelling.The study's findings generated considerable press. Similar stories began turning up around the world, from papaya plantations in Hawaii to cornfields in Nebraska and Mexico. In Hawaii, pollen from GM plants had contaminated a nearby organic (non-GM) papaya plantation, voiding the farmer's organic certification and forcing him to cut down all his papaya trees. In Canada, herbicide-resistant genes from GM canola were found in wild mustard seed. The agritechnology industry played down the results, but the approval process for the GM bentgrass was derailed nevertheless. Two years later, the EPA put the final nail in the GM bentgrass' coffin when follow-up tests discovered the Roundup resistance gene in wild grasses near the former test site. (The next year, Scotts, one of the developers of the GM bentgrass, was made to pay $500,000 to resolve allegations that it violated testing rules during the approval process.) In an August 2006 article about the newest findings, Times reporter Andrew Pollack summed the situation up nicely, writing: "One concern often raised by critics of agricultural biotechnology is that genes that make crops resistant to herbicides or pests may escape to wild relatives, creating 'superweeds' that would be harder to eradicate." He then added: "That is hardly a risk for the main types of genetically engineered crops grown in the United States--soybeans, corn and cotton--because they generally do not have wild, weedy relatives in this country." This fact about soybeans, corn and cotton was widely accepted by farmers and the USDA. Even though the bentgrass proposal was dead, GM versions of these three crops continued to gain in popularity. Farmers particularly loved the Roundup Ready varieties, which made weed control as easy as regular spraying of the powerful herbicide. It even had environmental benefits: more effective herbicide-based weed control meant farmers didn't need to till their fields to uproot weeds, which decreased the amount of toxic pesticide- and herbicide-laden runoff from farms. By 2010, 90% of the soybeans and 70% of the corn and cotton grown in the U.S. were Roundup Ready varieties.---Then, one day, the superweed predictions came true. The scientists were right that corn, soybeans and cotton couldn't spread their altered genes to wild relatives. However, the combined use of Roundup Ready crops and Roundup had become so prevalent that Roundup resistant weeds developed anyway. With Roundup clearing away the rest of the weedy competition, weeds with Roundup resistance were free to take over fields. (This resistance developed from natural genetic mutations, just as antibiotic-resistant infections like MRSA have developed in response to antibiotic overuse.) Ten species of Roundup-resistant weeds have been documented in 22 states. They include horseweed, giant ragweed and pigweed, which can grow as much as three inches in a day.The weeds are forcing farmers to add second and third steps to their previously simple weed-control systems. Some are supplanting Roundup with a second herbicide, to kill what Roundup can't, while others have returned to tilling their fields. Some are doing both, increasing the amount of toxic runoff leaching from fields into our waterways.The agritechnology companies are addressing the issue as well. Monsanto--which, as the inventor of Roundup and the major supplier of Roundup Ready seeds, has the most to lose--has been giving cotton farmers subsidies to buy supplemental herbicides. And all the major agritechnology companies--including Bayer, Syngenta and Dow Chemical, as well as Monsanto--are developing new GM crops with resistance to multiple herbicides and pesticides. But while GM crops with multiple resistances might help farmers defeat pigweed, they'll do nothing to address the superweed problem in the long run. Not only will superweeds eventually develop resistance to the new herbicides, but in the meantime, farmers will be applying even more herbicide to their land, releasing more toxic chemicals into the environment. An arms race against the weeds is a war we can't win.A better alternative, supported by many scientists, environmentalists and a growing number of farmers, is to diversify our approach to weed control. Instead of planting the same crops and spraying the same herbicide on millions of square miles of land, some farmers are starting to diversify their crops and sprays, rotate their plantings and vary their weed control methods. It's more work, and can cost more (although it can also save farmers thousands on GM seeds--a 50 lb. bag of Roundup Ready corn costs about $200.) However, it's the best way to keep American farming sustainable, so we'll be able to feed ourselves for decades to come.Personally, I'd also like to see the USDA introduce labels for food containing genetically modified ingredients. This would make consumers aware of what they're eating, and allow them to "vote with their dollar" if they so choose. Alternatively, the USDA could introduce an optional certification for foods that don't contain GM ingredients--even if the public knew that some food contained these bio-engineered ingredients, they might make an effort to avoid them (I know I would). Food certified as organic by the USDA is already free of GM ingredients, so if you're concerned about the effect of GM crops on the environment, buying organic supports farmers dedicated to alternative practices.---Turning to investing, what stocks can you buy to benefit from a gradual move away from industrial farming of GM crops? Well, you could short Monsanto ([MON](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MON&selected=MON)) ), as one of our contributing editors recommended in the April 21, 2010, Dick Davis Digest. That's paid off quite well for his subscribers already. However, Monsanto is a large, powerful company and I anticipate its downfall being a slow one that will drag out over years, if not decades. I wouldn't bet on MON to keep declining in a strong market.Instead, I'd take a more optimistic approach to this situation, and bet on one of the many up-and-coming companies that will benefit from a move toward natural and organic foods and farming. One such company is the Hain Celestial Group ([HAIN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HAIN&selected=HAIN)) ), a manufacturer of natural, organic and specialty foods. The company's brands include Arrowhead Mills organic breads, Avalon Organics personal care products, Health Valley Organic cereals, Spectrum natural oils, number-one soy milk brand WestSoy, Terra brand vegetable chips and DeBoles organic, whole wheat and gluten-free pastas. HAIN was recommended as a stock to watch by Cabot Green Investor Editor Brendan Coffey in the latest Dick Davis Digest. Brendan wrote:"In May, Carl Icahn announced he had acquired an 11.9% stake in the company, proclaiming the firm undervalued and saying founder [Irwin] Simon was on board with the goal of maximizing the company's shareholder value. … Some of Icahn's thinking likely focuses on the fact that even as organic foods have maintained themselves through the recession, sales are bound to improve as the economy perks up and consumers feel freer with their spending, especially in the U.S., where Hain generates about 81% of its sales. The recession showed that Hain has a good core of true believers who buy organic no matter what, while a rebound will bring in the marginal customer who is willing to return to the 10% to 15% premium Hain charges for its products."Organic and natural foods are already a huge growth industry. The high toll processed foods are taking on our bodies is already becoming well known. As the high environmental costs of industrial agriculture are gradually brought to the public's consciousness, I think this trend will only speed up.Wishing you success in your investing and beyond,Chloe LuttsFor Cabot Wealth Advisory Stock Price 4 days before: 21.141 Stock Price 2 days before: 21.403 Stock Price 1 day before: 21.6477 Stock Price at release: 20.3749 Risk-Free Rate at release: 0.0009	20.8671
Symbol: CSIQ Security: Canadian Solar Inc. Related Stocks/Topics: CBOE\|Markets\|SPX\|BA\|GIS Title: Opening View: DJIA, SPX Hope to Find Support Near Year's Lows Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-06-30 07:58:00 Article: The Dow Jones Industrial Average ([DJIA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DJIA&selected=DJIA)) ) waved as it blew past the 10,000 level yesterday, plunging nearly 270 points to test its 2010 lows near 9,800. The blue-chip barometer paused briefly near the 9,900 region, but fear surrounding a weakening global economy proved too much. The S&P 500 Index ([SPX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SPX&selected=SPX)) ), however, breached its 2010 nadir, to close at its lowest point since Oct. 20, 2009. Should the market turn lower today, support might be found near 9,800 for the Dow, and 1,030 for the SPX. However, it appears that we may get at least a minor dead-cat bounce today, as futures on the DJIA and SPX are trading roughly 38 points and 4.6 points above fair value, respectively. Finally, the CBOE Market Volatility Index ([VIX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VIX&selected=VIX)) ) spiked more than 17% yesterday. However, the fear index was held in check by the 35 level. While we are far from out of the woods just yet, we may see a pullback in the VIX today, should pre-market equities trading carry over into the open.In equity news, The Boeing Company ([BA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BA&selected=BA)) ) announced that it is buying combat-systems provider Argon ST ([STST](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=STST&selected=STST)) ) for $34.50 per share, or about $775 million. The transaction is expected to close by the end of the third quarter, pending regulatory approval. "Combining the strength of Boeing with the experience of Argon ST will significantly accelerate our capabilities in sensors, communications technologies and information management," said Dennis Muilenburg, chief executive of Boeing Defense, Space & Security. Elsewhere, General Mills, Inc. ([GIS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GIS&selected=GIS)) ) reported earnings of 41 cents per share on revenue of $3.6 billion. Analysts were expecting a profit of 41 cents per share on revenue of $3.55 billion. GIS results fell slightly short of those from the year-ago period, when the company posted a profit of 43 cents per share on $3.65 billion in revenue.Finally, Sealy Corporation ([ZZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ZZ&selected=ZZ)) ) reported a second-quarter profit of 2 cents per share on revenue of $316.5 million. The results were just shy of the consensus estimate for a profit of 2 cents per share on revenue of $319.86 million. Earnings Preview On the earnings front, Canadian Solar Inc. ([CSIQ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CSIQ&selected=CSIQ)) ), Monsanto Company ([MON](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MON&selected=MON)) ) and Apollo Group Inc. ([APOL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=APOL&selected=APOL)) ) will post their quarterly results today. Keep your browser at [SchaeffersResearch.com](http://www.schaeffersresearch.com/) for more news as it breaks. Economic Calendar The usual weekly U.S. petroleum supplies will arrive later this morning, accompanied by ADP private sector employment numbers for June and the Chicago Purchasing Managers' Index for June. Thursday brings the usual weekly initial jobless claims, as well as reports on construction spending in May and auto sales in June. We round out the week with the Big Kahuna: nonfarm payrolls and the unemployment rate for June. Market Statistics Equity option activity on the Chicago Board Options Exchange ([CBOE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBOE&selected=CBOE)) ) saw 1,178,380 call contracts traded on Tuesday, compared to 927,616 put contracts. The resultant single-session put/call ratio arrived at 0.79, while the 21-day moving average rose to 0.66. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/100630ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/100630ov2.gif)The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher. [Dow, S&P and Nasdaq futures](http://www.schaeffersresearch.com/images/commentary/2010/100630ov3.gif) Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up [here](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=O&CODE=SIRG07D) for free daily delivery, straight to your inbox, before the opening bell. Overseas Trading Overseas trading is mixed this morning, which is a significant improvement over Tuesday's performance. At last check, six of the 10 foreign indexes that we track were in positive territory, with a cumulative average return of 0.20%. In Asia, stocks fell after renewed jitters about the global economic outlook sparked a sell-off on Wall Street. Global financial markets faced pressure after data showed a steep fall in U.S. consumer confidence and a sharp downward revision to China's leading indicators index. Meanwhile, European shares rose in choppy trading, after the European Central Bank ([ECB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ECB&selected=ECB)) ) announced results for its latest liquidity operation. Specifically, the ECB lent banks 131.9 billion euros ($161.4 billion) in three-month funds -- less than expected -- as banks face the repayment of close to half a trillion euros in 12-month funds. Overseas market information comes to you courtesy of [Schaeffer's Daily Bulletin](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=D&CODE=UB08FREE14) . [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/100630ov4.gif)Currencies and Commodities The European Central Bank auction has returned some confidence to world markets this morning, and traders are once again moving out of safe-havens, like currencies, and back into stocks. As such, the U.S. Dollar Index is off 0.37% heading into the open. However, the dollar's weakness has not translated into strength for gold, as the front-month contract is up a mere $1.50 at $1,243.90 an ounce in London. Crude oil, however, is taking advantage of the drooping dollar, with the most-active contract up 50 cents at $76.44 per barrel. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/100630ov5.gif)**Unusual Put and Call Activity:For an explanation of how to use this information, check out our [Education Center](http://www.schaeffersresearch.com/schaeffersu/) topics on [Option Volume](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?ID=220#220) and [Open Interest Configurations](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?id=221) . [Unusual options activity - puts](http://www.schaeffersresearch.com/images/commentary/2010/100630ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/100630ov7.gif) [Click here for the new spring issue of SENTIMENT magazine](http://www.schaeffersresearch.com/redirect.aspx?CODE=SIRMAG10DGENERAL&PAGE=1)** All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 10.4782 Stock Price 2 days before: 10.6005 Stock Price 1 day before: 10.3279 Stock Price at release: 10.2047 Risk-Free Rate at release: 0.0017	12.5006
Symbol: IPI Security: Intrepid Potash, Inc. Related Stocks/Topics: Markets\|MOS Title: Trader calls floor on Intrepid Potash Type: News Publication: optionMONSTER Publication Author: Unknown Date: 2010-06-30 08:35:00 Article: Intrepid Potash plunged to a 14-month low yesterday, but one investor wagered that it will hold its ground. [ipi](http://www.optionmonster.com/cms/commentary/images/ipi%206-29-10.png) optionMONSTER's tracking programs detected the sale of 5,235 August 18 puts for $0.60 against no existing open interest. The trade pushed total option volume in the fertilizer company to eight times greater than average in the session. IPI fell 3.34 percent to $19.95 yesterday and has lost 31 percent of its value in the last three months. The shares have mostly followed other agriculture and material names lower amid concerns about a slowing global economy.The stock has apparently been a favorite among the bears because short interest climbed to a whopping 66 percent of the float as of mid-June. In contrast, related companies such as Mosaic and Potash of Saskatchewan have almost no short interest.Yesterday's put trade reflects a belief that IPI will hold above $18, a level that it has held since the market bottomed in March 2009. If the stock holds that price, the investor will get to keep the $0.60 premium. If it falls below, he or she will have to buy the shares for $18.The strategy will also profit from the accelerating pace of time decay that will take place as expiration nears and erases the value of the puts sold short. (See our Education section)(Chart courtesy oftradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved. Stock Price 4 days before: 21.1372 Stock Price 2 days before: 21.1115 Stock Price 1 day before: 20.1875 Stock Price at release: 19.8897 Risk-Free Rate at release: 0.0017	23.6133
Symbol: JBLU Security: JetBlue Airways Corporation Related Stocks/Topics: LUV\|Markets\|CAL\|AMR\|XAL\|DAL Title: Tailwinds are in Place for This Industry -- Down the Road Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-01 03:10:00 Article: During the past few years, airlines staged a remarkable comeback. The major legacy carriers such as Continental (NYSE: [CAL](http://streetauthority.com/stocks/CAL) ) , Delta (NYSE: [DAL](http://streetauthority.com/stocks/DAL) ) , AMR's (NYSE: [AMR](http://streetauthority.com/stocks/AMR) ) American Airlines and UAL's (Nasdaq: [UAUA](http://streetauthority.com/stocks/UAUA) ) United took a lot of planes out of service, cut major cost-saving labor agreements, and benefited from sharply lower fuel prices. Large losses became large profits, helping the AMEX Airline Index (AMEX: [XAL](http://streetauthority.com/stocks/XAL) ) to rise from around $12 in March 2009 to $40 in mid-June.Yet in recent weeks, the [index](http://investinganswers.com/term/index-971) has headed south, falling for eight straight sessions before a modest [uptick](http://investinganswers.com/term/uptick-781) on Wednesday. The sector saw some life when Delta 's CEO Richard Anderson spoke bullishly earlier in the day at his company's annual meeting. "The recession was a 'terrible cycle' that has wreaked havoc on balance sheets and stocks," he said, "but we are now moving into an up cycle." That's certainly the case, by any measure. Ticket prices are higher, leading to +20% year-over-year gains in passenger revenue per average seat mile (known by the unwieldy industry moniker PRASM), fuel costs remain manageable, and the European volcano scare has abated, boosting air traffic on the Continent to pre-recession levels.Firming prices and low costs add up to money in the bank: Continental, Delta , AMR and UAL should see profits rise sharply this year, posting their best gains in years. Continental for example, has a decent shot of earning even more than the $3.74 a share bagged in 2007, a high point for the last decade.But clouds loom on the horizon. For starters, management talked labor into major concessions a few years ago, and many of those contracts are coming up for re-negotiation. You can bet that labor will be a lot less cooperative this time around.In addition, even as European air travel has posted a solid rebound, further economic weakness on the Continent could spell trouble. Remember that planes have the same expenses whether they are half-full or completely full. As a rule of thumb, a plane needs to be roughly two-thirds filled to be operating at break-even. Right now, the load factor (the percentage of seats filled) is inching toward 80%. It helps that there are roughly 15% fewer planes flying than in 2008. The major carriers will begin releasing their latest load factors and PRASMs in the coming days (starting with Continental after the bell on Thursday), and share prices may move quickly up or down on that data.Finally, the industry is always one step away from a profit-sapping spike in oil prices or a terrorism-related slump in air travel. Neither of those factors is of concern at the moment, but they can arrive without warning. As the accompanying table shows, these stocks are dirt cheap, with several of them trading for less than five times projected 2011 earnings. Those [price-to-earnings ratio (P/E)](http://investinganswers.com/term/price-earnings-ratio-pe-459) multiples are based on consensus estimates. And analysts are assuming very strong profit growth in 2011. But should they? After all, labor costs are set to rise, and it may be awhile before the global economy is truly healthy. So further volume and pricing gains may be hard to achieve. Action to Take ---> It increasingly looks as if 2011 profit estimates will need to come down. So the industry [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) ratios are probably not as low as they appear in our table. But the kind of earnings power that analysts expect to see in 2011 could still well happen in 2012 or 2013. So shares are indeed quite cheap if you have that kind of time horizon.It's worth noting that Southwest Air (NYSE: [LUV](http://streetauthority.com/stocks/LUV) ) is not as exposed to rising labor costs, as it inked more recent labor contracts. So analysts' estimates for LUV are not likely to come under the same pressure. In addition, this is the first time in its history that JetBlue (Nasdaq: [JBLU](http://streetauthority.com/stocks/JBLU) ) has traded for less than ten times projected earnings. JetBlue also has a better labor cost profile than the big carriers. These two low-cost carriers are also less exposed to the possibly turbulent European air market, making them the safer plays, even if they sport higher P/E ratios than the larger legacy carriers.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanStaff WriterStreetAuthorityDisclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://streetauthority.com/news/tailwinds-are-place-industry-down-road-456309) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 5.80796 Stock Price 2 days before: 5.68743 Stock Price 1 day before: 5.57501 Stock Price at release: 5.53174 Risk-Free Rate at release: 0.0016	6.40134
Symbol: CAL Security: Caleres, Inc. Related Stocks/Topics: LUV\|Markets\|AMR\|XAL\|JBLU\|DAL Title: Tailwinds are in Place for This Industry -- Down the Road Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-01 03:10:00 Article: During the past few years, airlines staged a remarkable comeback. The major legacy carriers such as Continental (NYSE: [CAL](http://streetauthority.com/stocks/CAL) ) , Delta (NYSE: [DAL](http://streetauthority.com/stocks/DAL) ) , AMR's (NYSE: [AMR](http://streetauthority.com/stocks/AMR) ) American Airlines and UAL's (Nasdaq: [UAUA](http://streetauthority.com/stocks/UAUA) ) United took a lot of planes out of service, cut major cost-saving labor agreements, and benefited from sharply lower fuel prices. Large losses became large profits, helping the AMEX Airline Index (AMEX: [XAL](http://streetauthority.com/stocks/XAL) ) to rise from around $12 in March 2009 to $40 in mid-June.Yet in recent weeks, the [index](http://investinganswers.com/term/index-971) has headed south, falling for eight straight sessions before a modest [uptick](http://investinganswers.com/term/uptick-781) on Wednesday. The sector saw some life when Delta 's CEO Richard Anderson spoke bullishly earlier in the day at his company's annual meeting. "The recession was a 'terrible cycle' that has wreaked havoc on balance sheets and stocks," he said, "but we are now moving into an up cycle." That's certainly the case, by any measure. Ticket prices are higher, leading to +20% year-over-year gains in passenger revenue per average seat mile (known by the unwieldy industry moniker PRASM), fuel costs remain manageable, and the European volcano scare has abated, boosting air traffic on the Continent to pre-recession levels.Firming prices and low costs add up to money in the bank: Continental, Delta , AMR and UAL should see profits rise sharply this year, posting their best gains in years. Continental for example, has a decent shot of earning even more than the $3.74 a share bagged in 2007, a high point for the last decade.But clouds loom on the horizon. For starters, management talked labor into major concessions a few years ago, and many of those contracts are coming up for re-negotiation. You can bet that labor will be a lot less cooperative this time around.In addition, even as European air travel has posted a solid rebound, further economic weakness on the Continent could spell trouble. Remember that planes have the same expenses whether they are half-full or completely full. As a rule of thumb, a plane needs to be roughly two-thirds filled to be operating at break-even. Right now, the load factor (the percentage of seats filled) is inching toward 80%. It helps that there are roughly 15% fewer planes flying than in 2008. The major carriers will begin releasing their latest load factors and PRASMs in the coming days (starting with Continental after the bell on Thursday), and share prices may move quickly up or down on that data.Finally, the industry is always one step away from a profit-sapping spike in oil prices or a terrorism-related slump in air travel. Neither of those factors is of concern at the moment, but they can arrive without warning. As the accompanying table shows, these stocks are dirt cheap, with several of them trading for less than five times projected 2011 earnings. Those [price-to-earnings ratio (P/E)](http://investinganswers.com/term/price-earnings-ratio-pe-459) multiples are based on consensus estimates. And analysts are assuming very strong profit growth in 2011. But should they? After all, labor costs are set to rise, and it may be awhile before the global economy is truly healthy. So further volume and pricing gains may be hard to achieve. Action to Take ---> It increasingly looks as if 2011 profit estimates will need to come down. So the industry [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) ratios are probably not as low as they appear in our table. But the kind of earnings power that analysts expect to see in 2011 could still well happen in 2012 or 2013. So shares are indeed quite cheap if you have that kind of time horizon.It's worth noting that Southwest Air (NYSE: [LUV](http://streetauthority.com/stocks/LUV) ) is not as exposed to rising labor costs, as it inked more recent labor contracts. So analysts' estimates for LUV are not likely to come under the same pressure. In addition, this is the first time in its history that JetBlue (Nasdaq: [JBLU](http://streetauthority.com/stocks/JBLU) ) has traded for less than ten times projected earnings. JetBlue also has a better labor cost profile than the big carriers. These two low-cost carriers are also less exposed to the possibly turbulent European air market, making them the safer plays, even if they sport higher P/E ratios than the larger legacy carriers.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanStaff WriterStreetAuthorityDisclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://streetauthority.com/news/tailwinds-are-place-industry-down-road-456309) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 22.1334 Stock Price 2 days before: 21.6512 Stock Price 1 day before: 21.4089 Stock Price at release: 22.0999 Risk-Free Rate at release: 0.0016	25.0217
Symbol: IAG Security: IAMGOLD Corporation Related Stocks/Topics: CF\|Markets\|SUN\|GES\|AU\|ANF\|AEM Title: Dividend Highlights and Lowlights for July 1 Type: News Publication: Dividend.com Publication Author: Unknown Date: 2010-07-01 04:46:00 Article: These were some of the biggest dividend stock performers on the upside and the downside in today's market action. Highlights Kenneth Cole ([KCP](http://www.dividend.com/dividend-stocks/consumer-goods/textile-apparel-footwear-and-accessories/kcp-kenneth-cole/)) ) - up 4% Abercrombie & Fitch ([ANF](http://www.dividend.com/dividend-stocks/services/apparel-stores/anf-abercrombie-and-fitch/)) ) - up 4%Guess, Inc. ([GES](http://www.dividend.com/dividend-stocks/services/apparel-stores/ges-guess-inc/)) ) - up 3%CF Industries ([CF](http://www.dividend.com/dividend-stocks/basic-materials/agricultural-chemicals/cf-cf-industries/)) ) - up 3%Anadarko Petroleum ([APC](http://www.dividend.com/dividend-stocks/basic-materials/independent-oil-and-gas/apc-anadarko-petroleum/)) ) - up 3%Lowlights AngloGold ([AU](http://www.dividend.com/dividend-stocks/basic-materials/gold/au-anglogold/)) ) - down 6% Pep Boys ([PBY](http://www.dividend.com/dividend-stocks/services/auto-parts-stores/pby-pep-boys/)) ) - down 6%Agnico-Eagle Mines ([AEM](http://www.dividend.com/dividend-stocks/basic-materials/gold/aem-agnico-eagle-mines/)) ) - down 5%IAMGOLD Corp. ([IAG](http://www.dividend.com/dividend-stocks/basic-materials/gold/iag-iamgold-corp/)) ) - down 5%Sunoco Inc. ([SUN](http://www.dividend.com/dividend-stocks/basic-materials/oil-and-gas-refining-and-marketing/sun-sunoco-inc/)) ) - down 5%Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php) . [Sponsored Links](https://popup.taboola.com/en/?template=colorbox&utm_source=nasdaq-nasdaq&utm_medium=referral&utm_content=thumbnails-a-mid:Mid%20Article%20Thumbnails:) [Sponsored Links](https://popup.taboola.com/en/?template=colorbox&utm_source=nasdaq-nasdaq&utm_medium=referral&utm_content=thumbnails-a-mid:Mid%20Article%20Thumbnails:)[Promoted Links](https://popup.taboola.com/en/?template=colorbox&utm_source=nasdaq-nasdaq&utm_medium=referral&utm_content=thumbnails-a-mid:Mid%20Article%20Thumbnails:) [Promoted Links](https://popup.taboola.com/en/?template=colorbox&utm_source=nasdaq-nasdaq&utm_medium=referral&utm_content=thumbnails-a-mid:Mid%20Article%20Thumbnails:)[](https://www.sunrun.com/lp/get-storage?utm_campaign=pm_disp_tab_paid_pt_dr_us_sr6036&utm_adgroup=powerthrough%20-%20dr%20-%20no%20offer&utm_content=int_battery_promo_dark_39&campid=sr6036&utm_source=taboola&utm_medium=paid-display&tblci=GiDVOcW8oVg8zYdEtjgixHOw480_8bT53MZ3sZlavdk18SCdnWIoqu29g7Kn5Ph7MKXsTg#tblciGiDVOcW8oVg8zYdEtjgixHOw480_8bT53MZ3sZlavdk18SCdnWIoqu29g7Kn5Ph7MKXsTg) [Home Backup Battery for $39.99 a month Sunrun Get Offer](https://www.sunrun.com/lp/get-storage?utm_campaign=pm_disp_tab_paid_pt_dr_us_sr6036&utm_adgroup=powerthrough%20-%20dr%20-%20no%20offer&utm_content=int_battery_promo_dark_39&campid=sr6036&utm_source=taboola&utm_medium=paid-display&tblci=GiDVOcW8oVg8zYdEtjgixHOw480_8bT53MZ3sZlavdk18SCdnWIoqu29g7Kn5Ph7MKXsTg#tblciGiDVOcW8oVg8zYdEtjgixHOw480_8bT53MZ3sZlavdk18SCdnWIoqu29g7Kn5Ph7MKXsTg) Created by Dividend.com Stock Price 4 days before: 18.507 Stock Price 2 days before: 18.3029 Stock Price 1 day before: 17.659 Stock Price at release: 17.6076 Risk-Free Rate at release: 0.0016	15.7759
Symbol: GES Security: Guess', Inc. Related Stocks/Topics: CF\|Markets\|IAG\|SUN\|AU\|ANF\|AEM Title: Dividend Highlights and Lowlights for July 1 Type: News Publication: Dividend.com Publication Author: Unknown Date: 2010-07-01 04:46:00 Article: These were some of the biggest dividend stock performers on the upside and the downside in today's market action. Highlights Kenneth Cole ([KCP](http://www.dividend.com/dividend-stocks/consumer-goods/textile-apparel-footwear-and-accessories/kcp-kenneth-cole/)) ) - up 4% Abercrombie & Fitch ([ANF](http://www.dividend.com/dividend-stocks/services/apparel-stores/anf-abercrombie-and-fitch/)) ) - up 4%Guess, Inc. ([GES](http://www.dividend.com/dividend-stocks/services/apparel-stores/ges-guess-inc/)) ) - up 3%CF Industries ([CF](http://www.dividend.com/dividend-stocks/basic-materials/agricultural-chemicals/cf-cf-industries/)) ) - up 3%Anadarko Petroleum ([APC](http://www.dividend.com/dividend-stocks/basic-materials/independent-oil-and-gas/apc-anadarko-petroleum/)) ) - up 3%Lowlights AngloGold ([AU](http://www.dividend.com/dividend-stocks/basic-materials/gold/au-anglogold/)) ) - down 6% Pep Boys ([PBY](http://www.dividend.com/dividend-stocks/services/auto-parts-stores/pby-pep-boys/)) ) - down 6%Agnico-Eagle Mines ([AEM](http://www.dividend.com/dividend-stocks/basic-materials/gold/aem-agnico-eagle-mines/)) ) - down 5%IAMGOLD Corp. ([IAG](http://www.dividend.com/dividend-stocks/basic-materials/gold/iag-iamgold-corp/)) ) - down 5%Sunoco Inc. ([SUN](http://www.dividend.com/dividend-stocks/basic-materials/oil-and-gas-refining-and-marketing/sun-sunoco-inc/)) ) - down 5%Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php) . Created by Dividend.com Stock Price 4 days before: 32.8701 Stock Price 2 days before: 32.0233 Stock Price 1 day before: 31.3952 Stock Price at release: 31.1748 Risk-Free Rate at release: 0.0016	35.6467
Symbol: GCI Security: Gannett Co., Inc. Related Stocks/Topics: Markets Title: Gannett (NYSE:GCI) put volume spikes Type: News Publication: Jud Pyle Publication Author: Unknown Date: 2010-07-01 08:16:00 Article: Gannet (NYSE: GCI ) shares lost 16 cents, or roughly 1.5%, to $13.25 on the day Thursday, slightly underperforming the broad-market sell off on the day. The shares have now dropped nearly 20% in a little more than a week. The August 11 puts were active this afternoon thanks to investors who appear to be willing to bet that GCI could decline another 17% between now and August options expiration.At 3:40 EST, more than 15,000 of the August 11-strike puts traded for 50 cents per contract. There is currently no open interest in this strike, so obviously this volume was likely initiated to open. Based on the price action, this trade was initiated by a buyer. The investor who traded these puts will make money if GCI shares are trading lower than $10.50 at August options expiration in approximately 51 days. If the stock is trading below this breakeven level, the investor will begin to make money and continue to do so in direct relation to the stock's movement toward zero. On the other hand, if GCI shares remain higher than $10.50, this long put trade caps maximum loss at the premium paid, or 50 cents per contract. One clue we have that buyers initiated this action is the rise of implied volatility on the day. The puts closed last night at 40 cents, which was an implied volatility of 70%. Today, that implied volatility has risen to closer to 75%. A price of 50 cents is obviously a 10-cent rise in the options today. Given that they had a delta of roughly 20, the options should have gained more like 2 cents, not 10.Gannet confirmed today that they will release earnings results on July 16, before the market opens. Analysts are expecting the company to have earned 52 cents in this, their second fiscal quarter. That compares with earnings of 50 cents in the first quarter. What is interesting about this put purchase is that July options will not have expired by the time earnings are released. So if the bet is that earnings are a catalyst, then the investor could have spent less and bought the July contracts. But instead, they are paying up for an extra 35 days of option life. Stock Price 4 days before: 14.8872 Stock Price 2 days before: 14.6485 Stock Price 1 day before: 13.8919 Stock Price at release: 13.4578 Risk-Free Rate at release: 0.0016	13.1539
Symbol: RDUS Security: Radius Health, Inc. Related Stocks/Topics: Markets Title: Schnitzer Steel Swings to Q3 Profit as Volumes Surge (SCHN) Type: News Publication: Dividend.com Publication Author: Unknown Date: 2010-07-01 08:40:00 Article: Metals recycler Schnitzer Steel Industries, Inc. ([SCHN](http://www.dividend.com/dividend-stocks/basic-materials/steel-and-iron/schn-schnitzer-steel/)) ) late Wednesday posted a higher-than-expected third quarter profit, as sales more than doubled from last year.The Portland, OR-based company reported fiscal third quarter net income of $63.8 million, or $1.43 per share, compared with a net loss of $4.2 million, or 1 cent per share, in the year-ago period. Revenue rose more than 100%, to $703.5 million. On average, Wall Street analysts expected a much smaller profit of 87 cents per share, on lower sales of $671.8 million.Looking ahead, the company warned that fourth quarter margins from ferrous metals would be "significantly lower" than third quarter.Schnitzer Steel shares rose 80 cents, or +2%, in premarket trading Thursday. The Bottom Line We removed shares of SCHN back on July 24, 2008, when the stock was trading at $79.57. The company has a .18% dividend yield, based on last night's closing stock price of $39.20. The stock has technical support in the $33-$37 price area. If the shares can firm up, we see overhead resistance around the $45 price level. We would remain on the sidelines for nowSchnitzer Steel Industries, Inc. ([SCHN](http://www.dividend.com/dividend-stocks/basic-materials/steel-and-iron/schn-schnitzer-steel/)) ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars. Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php) . Created by Dividend.com Stock Price 4 days before: 0.0 Stock Price 2 days before: 0.0 Stock Price 1 day before: 0.0 Stock Price at release: 0.0 Risk-Free Rate at release: 0.0016	0
Symbol: CAL Security: Caleres, Inc. Related Stocks/Topics: BAC\|Markets\|GS\|NSC\|MA\|JPM\|V Title: Market Wrap-Up for July 2 (NSC, BAC, GS, JPM, MA, V, FDO, more) Type: News Publication: Dividend.com Publication Author: Unknown Date: 2010-07-02 04:20:00 Article: The markets had their second tough week in a row as we head into a 3-day Holiday weekend. (Markets are closed on Monday in observance of the 4th of July Holiday.Next week will also be one of the lighter-volume weeks as far as summer vacation weeks are concerned. Earnings results will be on the light side with Family Dollar Stores ([FDO](http://www.dividend.com/dividend-stocks/services/discount-variety-stores/fdo-family-dollars-stores/)) ) one of the better-known names that we will be seeing results from. As for today's market session, the jobs number came in and the results were as to be expected with no major surprises. Again, it will be interesting to hear any anecdotes from companies on their employee forecasts. Job creation continues to be a steady concern that we have been focusing on, especially how it translates into consumer confidence. Volume began to drift off in the afternoon, and despite some afternoon buying, the markets could not muster a positive close. Transports were especially hit hard with airlines and railroad plays taking a hit. Companies like Continental Airlines ( CAL ) and Norfolk Southern ([NSC](http://www.dividend.com/dividend-stocks/services/railroads/nsc-norfolk-southern/)) ) led the way lower.We anticipate a decent amount of companies will be coming off our weekend watchlists as we sharpen our pencil on the what we feel could be the next targets to be added to our recommended list. One quick thing I wanted to make a mention of that I get asked often is what tells do I look at if I want to get a quick snapshot of the markets. One of the main sectors I like to focus on if time is tight would the financials. As we ran up the last year or so, the financials were not as embraced and that has been a concern for us. Look at companies like Bank of America ([BAC](http://www.dividend.com/dividend-stocks/financial/money-center-banks/bac-bank-of-america/)) ) , Goldman Sachs ([GS](http://www.dividend.com/dividend-stocks/financial/investment-brokerage-national/gs-goldman-sachs/)) ) , and JP Morgan ([JPM](http://www.dividend.com/dividend-stocks/financial/money-center-banks/jpm-jp-morgan-chase/)) ) as some examples of laggards. Where we do see some fund flow in the sector are the credit-card spending plays like Visa ([V](http://www.dividend.com/dividend-stocks/services/business-services/v-visa/)) ) and Mastercard ([MA](http://www.dividend.com/dividend-stocks/services/business-services/ma-mastercard/)) ) . These are quite volatile, and not as juicy from a yield standpoint. They are better suited for aggressive investors.That's it everybody. We want to wish everyone a happy and safe holiday weekend and don't forget to check into Dividend.com Premium for the latest watchlist changes.Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php) . Created by Dividend.com Stock Price 4 days before: 22.3105 Stock Price 2 days before: 21.4089 Stock Price 1 day before: 22.0999 Stock Price at release: 22.1043 Risk-Free Rate at release: 0.0016	25.0217
Symbol: GCI Security: Gannett Co., Inc. Related Stocks/Topics: Markets Title: Big media names draw bearish bets Type: News Publication: optionMONSTER Publication Author: Unknown Date: 2010-07-02 08:23:00 Article: The bears targeted big media yesterday, snapping up puts in a content company, a broadcaster and a newspaper publisher. [via](http://www.optionmonster.com/cms/commentary/images/via-b%207-1-10.png) optionMONSTER's Depth Charge tracking system detected a late-day surge of put buying in Viacom, CBS, and Gannett that drove total options activity to more than 15 times the average level in each. The trades came amid heavy stock volume in the names as well. The VIA.B August 25 puts were the busiest strike, with a single block of 20,247 purchased for $0.40 against open interest of just 11 contracts. The shares fell 1.94 percent to $30.76 yesterday and would need to decline further, near their September lows, for the puts to turn a profit.At about the same time, 15,495 August 11 puts were bought in GCI for $0.50. The newspaper chain, which owns USA Today, fell 0.74 percent to $13.36 yesterday and is down 19 percent in the last two weeks.In CBS, put buyers targeted the August 10 contracts, which saw volume of 14,296 against no existing pen interest. The operator of radio and television channels declined 0.62 percent to $12.85 yesterday. The puts, which priced for $0.30, and won't make any money unless CBS falls at least 25 percent by expiration.The three companies reported improvements in business conditions during their last earnings reports. However, each is now trading below its 50-day moving average and showing signs of rolling over.Given the timing of the trades, yesterday's put activity was probably the work of a single large investor positioning for the three companies to break down to significantly lower lows. This trader may expect management teams to issue bearish comments this earnings season, hampered by signs that the global economy is weakening. The next scheduled events that could serve as potential catalysts for the stocks include GCI's earnings release on July 16 and CBS's announcement on August 3. Both will come out after the close.(Chart courtesy oftradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved. Stock Price 4 days before: 14.8911 Stock Price 2 days before: 13.8919 Stock Price 1 day before: 13.4578 Stock Price at release: 13.4607 Risk-Free Rate at release: 0.0016	13.1539
Symbol: ODP Security: The ODP Corporation Related Stocks/Topics: Markets Title: FBR Capital Reiterates "Underperform" Rating for Staples; Low-Margin Contract up for Bidding (SPLS) Type: News Publication: Dividend.com Publication Author: Unknown Date: 2010-07-02 08:54:00 Article: Office supply giant Staples, Inc. ([SPLS](http://www.dividend.com/dividend-stocks/services/specialty-retail-other/spls-staples/)) ) saw its "Underperform" rating reiterated on Friday, citing an upcoming low-margin government contract that is up for bidding in mid-July.The firm commented, "A $600M supplier contract is up for bid: U.S. Communities/LA County ("LA"), consisting of 10,000 agencies across the nation: local government, municipalities, counties, universities…Bids are due 7/15/10. We expect to hear a decision as to which supplier(s) are awarded the contract on or around 8/15/10, although LA has not committed to an exact date of decision. We expect the new contract to take effect Jan. 1, 2011, at this point…Based upon our channel checks, there appears to be three primary bidders for the national contract at this stage: the incumbent supplier, Office Depot ([ODP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODP&selected=ODP)) ), Staples (Nasdaq: SPLS) and a consortium of 94 local dealers that operate under the network of American Office Products, inc. ([AOPD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AOPD&selected=AOPD)) )…The LA contract is inherently low margin. SPLS has stated that it views its NAD business as not the price leader in the marketplace. SPLS focuses instead on increasing average order size and encouraging more web-based ordering to make its contracts more efficient and profitable (see the aforementioned items from the Q&A). An overly aggressive bid by SPLS would also be inconsistent with SPLS' pursuit of 12% NAD margins (up from 8.7% today), in our view." Staples shares were mostly flat in premarket trading Friday. The Bottom Line We have avoided shares of Staples since our early June 2008 coverage began, when the stock was trading at $23.23. The company has a dividend yield of 1.87%, based on last night's closing stock price of $19.27. The stock has technical support in the $16 price area. If the stock can continue to firm up, we see overhead resistance around the all-time high levels of $21-$23 a share. We would remain on the sidelines for now.Staples, Inc. ([SPLS](http://www.dividend.com/dividend-stocks/services/specialty-retail-other/spls-staples/)) ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php) . Created by Dividend.com Stock Price 4 days before: 4.60755 Stock Price 2 days before: 3.96277 Stock Price 1 day before: 4.04224 Stock Price at release: 4.17162 Risk-Free Rate at release: 0.0016	4.37653
Symbol: WGO Security: Winnebago Industries, Inc. Related Stocks/Topics: Unknown Title: Friday Winners: Thor Industries, Arena Pharma and Allergan Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-02 12:29:00 Article: Among the biggest winners in Friday's early trading are Thor Industries (NYSE: [THO](http://streetauthority.com/stocks/THO) ) , Arena Pharma (Nasdaq: [ARNA](http://streetauthority.com/stocks/ARNA) ) and Allergan (NYSE: [AGN](http://streetauthority.com/stocks/AGN) ) . Thor headed for Upside?Investors in Thor Industries (NYSE: [THO](http://streetauthority.com/stocks/THO) ) can breathe a sigh of relief. The maker of recreational vehicles announced on Thursday evening that it has just become current with its delinquent regulatory filings. And it appears that no major restatements will be necessary. That's pushing shares up nearly +9% in Friday trading. Could more gains be in the offing? We [recently noticed](http://www.streetauthority.com/node/456232) the surprising strength from rival Winnebago Industries (NYSE: [WGO](http://streetauthority.com/stocks/WGO) ) . At the time, Winnebago said demand for its motor homes is rising sharply (though curiously, Winnebago's shares have slid back more than -20% since then). Action to Take --> Shares of Thor are fairly cheap, at around 10 times next year's [EPS](http://investinganswers.com/term/earnings-share-eps-1003) forecast of $2.40. And it's worth noting that the economy is still in a funk, and subsequent earnings may be even more robust. Shares of Thor fell from $35 to $25 in the past two months, but now look set to climb back up.-------------------------------------Not too Late for Arena Shares of Arena Pharmaceutical (Nasdaq: [ARNA](http://streetauthority.com/stocks/ARNA) ) are surging for the second straight day, after the company signed a far-reaching sales agreement with Eisai. Shares had initially cooled after [a sharp pop on Thursday morning](http://www.streetauthority.com/node/456307) , as investors questioned why Arena didn't secure an even larger upfront payment for its anti-obesity drug. But since then, the bullish argument has won out, to wit, Arena stands to rake in huge gobs of money if its drug is a hit. The current [market value](http://investinganswers.com/term/market-value-779) is not even half of the potential windfall. Action to Take --> Don't forget that Arena may still land another partner for foreign marketing rights. That stands as another catalyst for this undervalued stock.-------------------------------------More Healthcare M&A to come The past few months have seen a large number of deals consummated among biotech players and others in the healthcare industry. Now get ready for a big one. Sanofi-Aventis (NYSE: [SNY](http://streetauthority.com/stocks/SNY) ) disclosed that it may look to pull off a $20 billion whopper. Only a few targets are so large as to justify that kind of expenditure. Investors are betting that it will be Allergan (NYSE: [AGN](http://streetauthority.com/stocks/AGN) ) , which is up +6% on Friday. Allergan has been a serial acquirer itself, and now sells products into a broad range of healthcare niches. Its $19 billion market cap (after today's rise) tucks neatly below Sanofi's threshold, although if Sanofi can't go much past $20 billion, Allergan investors shouldn't expect too high a premium. Action to Take --> There's an old investing axiom worth repeating: you should never buy a stock based on its [buyout](http://investinganswers.com/term/buyout-949) appeal. And on its own fundamental traits, it's hard to find value in Allergan's shares. They trade for 20 times projected 2010 profits, yet the company is only growing at a +6% to +7% pace.Allergan may indeed be sold for a modest premium, but shares could give back today's gains if a deal doesn't materialize in coming sessions. If Sanofi is just now starting in the process of finding ideal targets, it could be months before any such offer is made.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.-- David StermanStaff WriterStreetAuthorityDisclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://streetauthority.com/news/friday-winners-thor-industries-arena-pharma-and-allergan-456313) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 10.9533 Stock Price 2 days before: 10.4003 Stock Price 1 day before: 9.47166 Stock Price at release: 9.72196 Risk-Free Rate at release: 0.0016	10.759
Symbol: DAN Security: Dana Incorporated Related Stocks/Topics: Markets Title: Traders turning bullish on Dana again Type: News Publication: optionMONSTER Publication Author: Unknown Date: 2010-07-06 01:24:00 Article: Dana Holding is staging one of the most impressive runs after the crash, and now investors are getting bullish again.optionMONSTER's Heat Seeker tracking system detected both put selling and call buying in the auto-parts maker, which rallied more than 70,000 percent between March 2009 and May 2010. The transactions reflect a belief downside is limited and more gains are coming. [DAN Chart](http://www.optionmonster.com/cms/commentary/images/dan706.png) One investor sold 1,050 July 10 puts for about $0.58 against open interest of 176 contracts. The transaction occurred when the shares traded for $9.70, meaning they were $0.30 in the money. He or she stands to make $0.28 if the shares remain at that level through expiration, with a maximum gain of $0.60 if DAN climbs over $10.The move was unusual because most put sellers target out-of-the-money strikes. In this case it makes sense because the next available strike is $7.50, where there is currently no bid.DAN rose 1.42 percent to $9.63 in early afternoon trading and has lost 17 percent of its value in the last two weeks. The stock is now trying to hold the lower end of the $9.40-to-$14 range where it's traded since mid-December.Management raised its full-year guidance the last time the company reported earnings on April 29.About two hours after the puts were sold, an investor purchased a block of 2,500 December 15 calls for $0.45 against open interest of 1,873. He or she needs the shares to rally by about 60 percent by expiration for the trade to turn a profit. Overall options volume in DAN is nine times greater than average so far today.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved. Stock Price 4 days before: 9.76763 Stock Price 2 days before: 9.47623 Stock Price 1 day before: 9.76716 Stock Price at release: 9.7825 Risk-Free Rate at release: 0.0017	12.2707
Symbol: EFC Security: Ellington Financial Inc. Related Stocks/Topics: AMT\|Financial Advisors Title: Roth IRA Conversions And College Planning Type: News Publication: Financial Advisor Magazine Publication Author: Unknown Date: 2010-07-06 03:23:00 Article: Much has been written about the potential benefits, and tax liability, of converting an eligible individual retirement account (IRA) to a Roth IRA account in 2010. However, very little has been written about this decision and its impact on college planning. So it is important to note that the additional income resulting from a Roth conversion may or may not lower the financial aid eligibility of an account owner's college-age children, and may or may not impact the parent's eligibility to claim the American Opportunity Credit (also known as the Hope Tax Credit).This article explores the ripple effects that a Roth conversion can have on the overall cost of college and the account owner's retirement savings. Planning insights are highlighted for the purpose of giving advisors a suggested track to run on when discussing Roth conversions with prospects and clients-a great way to tie college planning directly to investable assets. And the good news, as we shall see, is that Roth conversions can make sense for many account owners before their children enter college, while they are in college and even when they are finishing college. The Roth Conversion Rules Prior to 2010, IRA owners whose income exceeded $100,000 were not permitted to convert their IRAs to Roth IRAs. However, in 2010 and beyond, the income limitation has been removed and IRA owners can now convert their eligible IRAs to Roth IRAs, regardless of income.When converting all or part of an eligible IRA to a Roth IRA, the account owner is required to pay regular income tax on the entire amount of the conversion from a pre-tax eligible IRA account (Taxes on IRAs with after-tax contributions are calculated differently and non-spousal inherited IRAs are not eligible for conversion). Income from 2010 conversions can be reported on either the taxpayer's 2010 tax return or split between tax years 2011 and 2012 returns. This flexibility allows IRA owners to choose the reporting option with the greatest tax benefit.The tax rules on distributions after a Roth conversion are slightly different from those of non-conversion Roth IRA accounts. One of the biggest differences is that account owners under age 59½ are required to hold the converted Roth account for five years before they can take any distributions without a penalty, providing that an exception does not apply, like college tuition, death, disability, etc. With a regular Roth account, as long as the account owner holds the account for more than five years, the account owner can at least take his/her contributions (basis) out before age 59½ without a penalty. There is no holding period for tax-free and penalty-free distributions from Roth IRAs that are converted after the account owner's age of 59½. College Financial Aid Rules Expected family contribution or EFC is the minimum amount a family is expected to pay toward the cost of college, and is primarily based on the assets and income of the parents and student. A student's eligibility for need-based financial aid is determined by a simple need analysis formula that subtracts the student's expected family contribution ([EFC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EFC&selected=EFC)) ) from a college's total cost of attendance to determine financial need (cost of attendance - EFC = financial need). If a student's EFC is less than a college's cost of attendance then the student qualifies for need-based financial aid. Roth Conversion And College Aid Eligibility Roth conversions will create taxable ordinary income for the account owner in 2010, or split between 2011 and 2012, if reported over those two years. The conversion income will be reported as part of the account owner's total income on the college financial aid forms that need to be filed, if the account owner has a child entering or in college. The additional income from the Roth conversion will raise the student's expected family contribution ([EFC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EFC&selected=EFC)) ), but the higher EFC may or may not exceed the cost of attendance of the college that the student is considering, or already attending. Therefore, the conversion income may or may not decrease the student's aid eligibility. For example, parents with an adjusted gross income of $120,000, and two children will have an EFC based on income alone of about $25,000 per year with one child entering college. If that child attends a college that costs $20,000 per year, the child will not qualify for need-based student aid because the EFC is greater than the cost of attendance of the college (Cost - EFC = Need or Eligibility). On the other hand, if the parents decide to convert $80,000 of eligible IRA assets to Roth IRA assets, then the student's EFC will go from $25,000 per year to $52,000 per year. All the additional income does is raise their EFC further above the cost of attendance. So it doesn't impact the student's aid eligibility because the student is already not eligible.Conversely, if the student is attending a college with an annual sticker price of $50,000 per year, then the $80,000 of Roth conversion income referenced above will definitely reduce the student's aid eligibility because the conversion income will drive the EFC up to $52,000 per year, which is more than the college's cost of attendance ($50,000 cost - a $52,000 EFC = $0 of aid eligibility). However, it should be noted that if the student is eligible for aid, there is no guarantee of exactly how much aid the student will receive from the college or what form of aid it will be (student loans, work-study, scholarships or grants). So you have to think about college aid eligibility with that in mind. Roth Conversions And The American Opportunity Credit When it comes to college, there is financial aid and what we call "tax aid." Tax aid primarily refers to the American Opportunity Credit (otherwise known as the Hope Tax Credit) that taxpayers can claim on their federal tax return when paying for qualified tuition expenses. For many families, tax aid is more certain than financial aid because if they are eligible for it, they get it. Remember, if a student qualifies for need-based financial aid, there is no guarantee that the college will "meet" 100% of the student's financial need, or if the aid will be in the form of grants or student loans. Fortunately, the American Opportunity Credit (also known as the Hope Credit) is worth up to $2,500 per year per student.The income phase-out to be eligible to claim this tax credit is $180,000 of modified adjusted gross income (MAGI) on joint tax returns. It is partially phased out between $160,000 - $180,000, and it is completely phased out for incomes in excess of $180,000.Continuing with the example above, if the parents do not do a Roth conversion their income will remain at $120,000 per year and they will qualify for the American Opportunity (Hope) Credit. If they do a conversion, their income will swell to $200,000 and they will be phased-out of eligibility to claim the tax credit. Therefore, the decision to make a Roth conversion should consider the impact on both financial aid and tax aid. Planning Opportunities If the student does not qualify for need-based aid and the parents can convert an amount of regular IRA assets to a Roth without becoming phased-out of eligibility for the college tax credit, then a conversion may be ideal because it will not impact aid eligibility and the tax credit can help offset the federal tax on the conversion income, dollar-for-dollar up to a maximum of $2,500 per year per child enrolled in college.If the student doesn't qualify for need-based financial aid and the parents are already phased-out of eligibility for the tax credit, then the conversion decision goes back to being purely focused on issues of taxation and what assets to use to pay the tax on the conversion income. In other words, it has no impact on college funding.If the student does qualify for need-based aid and the parents are eligible for the tax credit, then further consideration of a Roth conversion is warranted, with attention paid to the potential loss or reduction of financial aid and/or tax aid. However, even in this situation there is a planning opportunity. Consider the following example of an account owner with a child that has completed the spring semester of her junior year in college.To apply for financial aid for her senior year of college, the 2010-2011 academic year, she would have had to complete the financial aid forms before the end of June 2010, and she would have had to report her parent's income from 2009 on the aid forms. Therefore, since she will be finishing college in 2011, and will not be applying for financial aid again, the account owner can make a Roth conversion in 2010 and it will not affect the student's need-based financial aid eligibility.Conversely, for those parents whose children are a few years away from entering college, the question of a Roth conversion becomes one more focused on how the parent(s) will pay the tax on the conversion income and if it makes sense long-term for retirement. But there are tax and college planning considerations too. It is widely accepted that the best way to pay the tax on the conversion income is to use dollars from outside of the Roth account, thus allowing those tax-favored Roth dollars in the account to continue to grow. Going back to the financial aid calculation for a moment, regular taxable assets sitting in stocks and bonds, mutual funds, savings accounts, etc, are counted against the family for aid purposes. So by doing a Roth conversion a few years before completing the college financial aid forms (the FAFSA and CSS Profile), and using some of the parent's assets that would have to be reported on the aid forms to pay the tax on the conversion, you can kill four birds with one stone. - It generates the conversion income before the student files for financial aid, so it won't raise the student's EFC. - Using the parent's assets to pay the tax on the conversion income reduces the amount of the assets that the family has to report on the financial aid forms. So it may also reduce the student's expected contribution, and thereby increase aid eligibility. However, you must remember that the family still needs to pay for college, so you shouldn't plan to use the parent's assets to pay the tax on the conversion income if they need those assets to pay for college. - The conversion income will not occur during the college years, and thus will not reduce the parent's eligibility for the Hope tax credit if they would otherwise qualify. - This strategy uses dollars from outside the Roth account to pay the taxes on the conversion income, so the dollars in the Roth can continue to grow on a tax-favored basis. Furthermore, should the parents choose to do so, they may take distributions from their Roth conversion account to pay for qualified college tuition expenses without a penalty, even if the account owner is under age 59½ and has not had the conversion account for more than five years. This is because payment of qualified higher education expenses is one of the exceptions in the premature withdrawal rules that govern IRA and Roth IRA accounts."Even if you are under age 59½, if you paid expenses for higher education during the year, part (or all) of any distribution may not be subject to the 10% additional tax. The part not subject to the tax is generally the amount that is not more than the qualified higher education expenses (tuition, fees, books, room and board) for the year for education furnished at an eligible educational institution (any college, university, vocational school or other postsecondary educational institution eligible to participate in the student aid programs administered by the U.S. Department of Education). The education must be for you, your spouse, or the children or grandchildren of you or your spouse." Source, IRS publication 590Conclusion While there are many factors that should be considered when deciding whether to do a Roth IRA conversion, some of the benefits can include greater long-term tax savings, no required minimum distributions after age 70½, and potentially lower estate taxes. The main points to consider are below: - If the account owner has or will have children in college - If the children are or will be eligible for need-based financial aid - If the parents are eligible to claim the American Opportunity (Hope) Credit - If there are dollars to pay the tax on the conversion income from outside of the Roth account - The possibility of an increase in the account owner's tax bracket in the year of conversion - Estimated future tax rates - The timing of future distributions from the converted Roth account - The impact of conversion income on those receiving Medicare and Social Security benefits - The potential impact of the alternative minimum tax ([AMT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMT&selected=AMT)) ) - Age of the account owner at the time of conversion - The flexibility to re-characterize the converted Roth assets and recoup the taxes paid There are many advantages to converting an IRA account to a Roth IRA, but the conversion decision needs to be made with respect to other areas of the account owner's financial planning, especially those with college-age children. Taking into consideration the insights and strategies shared above, many account owners may be able to convert their eligible IRA account to a Roth IRA, while also maximizing tax and financial aid for their college-age children. Ultimately, through overall lower college costs, and the potential for tax-free growth in a Roth IRA account, the account owner may have more wealth at retirement and could even leave a greater inheritance to loved ones.Troy Onink and Bernard Whalen are the CEO and president, respectively, of Stratagee, a provider of college planning content, services and software. Stratagee is the developer of the Smart Search software that advisors can use to determine where a student may be able to Get Into College and Get Aid®. The firm's soon-to-be-released YBS software helps advisors deliver Your Best Strategy® to pay for independent school and college. Please visit [www.Stratagee.com](http://www.stratagee.com/) for more information.Financial Advisor magazine reaches 90,000 financial planners and investment advisors through its print publication and its [Web site](http://www.fa-mag.com/) . It also publishes [FA green](http://www.fa-mag.com/green) , for advisors interested in socially responsible investing, and [Private Wealth](http://www.fa-mag.com/pw-mag) , for advisors targeting the ultra high-net-worth market. Copyright © 2010 Charter Financial Publishing Network Inc. All Rights Reserved. Stock Price 4 days before: 0.0 Stock Price 2 days before: 0.0 Stock Price 1 day before: 0.0 Stock Price at release: 0.0 Risk-Free Rate at release: 0.0017	0
Symbol: IAG Security: IAMGOLD Corporation Related Stocks/Topics: BP\|Markets\|HAL\|CLF\|BTU Title: Dividend Highlights and Lowlights for July 6 Type: News Publication: Dividend.com Publication Author: Unknown Date: 2010-07-06 04:51:00 Article: These were some of the biggest dividend stock performers on the upside and the downside in today's market action. Highlights BP PLC ([BP](http://www.dividend.com/dividend-stocks/basic-materials/major-integrated-oil-and-gas/bp-bp-plc/)) ) - up 9% Tyco International ([TYC](http://www.dividend.com/dividend-stocks/technology/diversified-electronics/tyc-tyco-international/)) ) - up 4%Peabody Energy ([BTU](http://www.dividend.com/dividend-stocks/basic-materials/industrial-metals-and-minerals/btu-peabody-energy/)) ) - up 3%Halliburton ([HAL](http://www.dividend.com/dividend-stocks/basic-materials/oil-and-gas-equipment-and-services/hal-halliburton/)) ) - up 3%Massey Energy ([MEE](http://www.dividend.com/dividend-stocks/basic-materials/industrial-metals-and-minerals/mee-massey-energy/)) ) - up 3%Lowlights Ethan Allen ([ETH](http://www.dividend.com/dividend-stocks/consumer-goods/home-furnishings-and-fixtures/eth-ethan-allen/)) ) - down 8% Cliffs Natural Resources Inc. ([CLF](http://www.dividend.com/dividend-stocks/basic-materials/steel-and-iron/clf-cliffs-natural-resources-inc/)) ) - down 5%Pep Boys ([PBY](http://www.dividend.com/dividend-stocks/services/auto-parts-stores/pby-pep-boys/)) ) - down 5%IAMGOLD Corp. ([IAG](http://www.dividend.com/dividend-stocks/basic-materials/gold/iag-iamgold-corp/)) ) - down 4%Monsanto ([MON](http://www.dividend.com/dividend-stocks/basic-materials/agricultural-chemicals/mon-monsanto/)) ) - down 3%Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php) . Created by Dividend.com Stock Price 4 days before: 16.8143 Stock Price 2 days before: 16.795 Stock Price 1 day before: 16.6686 Stock Price at release: 16.6656 Risk-Free Rate at release: 0.0017	17.1791
Symbol: CLNE Security: Clean Energy Fuels Corp. Related Stocks/Topics: FDX\|Markets\|UPS\|UNG\|HMC\|FCG\|CHK\|T Title: The Time is Right for This Sector Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-06 05:11:00 Article: Careful what you wish for. That's the hard-learned lesson gleaned by investors and industry executives seeking their fortune in natural gas. Just a few years ago, they wished to find more natural gas in the ground and under the sea bed. They did, hitting mother lode after mother lode. Now, we're awash in natural gas and a glut has led to a sharp slump in prices.Could that slump be coming to an end? A host of factors are lining up to help boost demand and possibly curtail supply of this relatively clean burning energy source. If you live in the Northeastern United States, then you can already guess what Factor No. 1 is. Furnace-like conditions are leading to a sharp spike in electricity usage. Several long-term weather forecasting services predict temperatures will stay above average clear through the end of August. If that's the case, the amount of natural gas in storage could start to come down quickly and that should start to provide a tangible lift to prices.Factor No. 2 relies on the "bath-like" conditions of water temperatures in the Gulf of Mexico. Meteorologists have noted a strong correlation between water temperatures in the Gulf and strong hurricanes. And based on that, they think that we'll be in for a doozy of a hurricane season. The peak of storm activity is expected to begin in a few weeks and last into October. Recall that in 2005, hurricanes Katrina and Rita caused natural gas prices to soar, as a good deal of production was taken off-line. The Department of Energy estimates a median 166 billion cubic feet of gas production could be lost during the 2010 hurricane season -- nearly three days of domestic supply.Factor No. 3 is more of a wildcard: the Obama administration has disappointed industry watchers for failing to provide a greater boost to natural gas-powered vehicles. But the industry isn't waiting around. Honda (NYSE: [HMC](http://streetauthority.com/stocks/HMC) ) already sells natural gas vehicles, Fiat has announced plans to do the same with the next generation of Chrysler cars and trucks, and major fleet operators such as UPS (NYSE: [UPS](http://streetauthority.com/stocks/UPS) ) , FedEx (NYSE: [FDX](http://streetauthority.com/stocks/FDX) ) and AT&T (NYSE: [T](http://streetauthority.com/stocks/T) ) are quickly converting hundreds of vehicles to run on natural gas. Where will they fill up? Clean Energy Fuels Corp. (Nasdaq: [CLNE](http://streetauthority.com/stocks/CLNE) ) is building natural gas fueling stations. If natural gas can secure a reliable role as a transportation energy source, then prices would likely find a floor solidly above current levels. Supply restraint For natural gas producers, a re-balancing of supply and demand can't come fast enough. Even though they were sitting on newly-discovered massive energy fields, they steadily throttled back production in a bid to keep a lid on supply. Trouble is, demand also dropped, and many of the natural gas fields that did come online produced a lot more gas than expected. But it's only a matter of time before the restraint pays off. Natural gas fields have a finite shelf life and eventually yield smaller and smaller amounts of gas. As older wells get depleted, total output should drop, allowing prices to rise back up.You get a sense of the anticipated supply and demand trends by looking at [futures](http://investinganswers.com/term/futures-1002) prices. Contracts for delivery of natural gas that expire in August have already risen from around $4.15 per thousand cubic feet to a recent $4.81. Looking out 18 months to January 2012, those same contracts go for around $6. Current prices likely account for Factor No.1 noted above (warming summer weather), but if the second and third factors cited above come into play, natural gas futures contracts could quickly move toward the $8 mark. Action to Take --> There are a host of ways to play the resurgent natural gas sector. The U.S. Natural Gas Fund (NYSE: [UNG](http://streetauthority.com/stocks/UNG) ) , at a recent $8, is up roughly $1 from the spring, yet nowhere near the $60 levels seen just a few years ago when natural gas was trading in double-digits.Or you could buy a basket of natural gas plays through the First Trust ISE-Revere Natural Gas Fund (NYSE: [FCG](http://streetauthority.com/stocks/FCG) ) . The [index fund](http://investinganswers.com/term/index-fund-972) carries fees of up to 0.60% and concentrates on firms that are mostly exposed to natural gas prices.A number of energy firms have exposure to both and oil and gas, and would not rally as sharply in an environment of natural gas prices. For investors looking for high reward with high risk, can check out Chesapeake Energy (NYSE: [CHK](http://streetauthority.com/stocks/CHK) ) . Chesapeake employs a hefty amount of debt [leverage](http://investinganswers.com/term/leverage-61) , which really hurt the company when gas prices slumped, but would magnify earnings if prices were to rise.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. Most recently, he served as Managing Editor of RealMoney.com, the premium website of TheStreet.com. David has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV, and has a master's degree in management from Georgia Tech. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://streetauthority.com/a/time-right-sector-456320) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 14.8733 Stock Price 2 days before: 14.4217 Stock Price 1 day before: 14.6671 Stock Price at release: 14.6784 Risk-Free Rate at release: 0.0017	17.0442
Symbol: ADTN Security: ADTRAN Holdings, Inc. Related Stocks/Topics: Markets Title: Adtran facing downside strategy Type: News Publication: optionMONSTER Publication Author: Unknown Date: 2010-07-06 07:24:00 Article: Adtran is showing signs of a potential bearish reversal, and one investor is positioning for a drop. [adtn](http://www.optionmonster.com/cms/commentary/images/adtn%207-5-10.png) optionMONSTER's Depth Charge tracking system detected the purchase of about 2,500 July 25 puts for $0.35 to $0.40 and the sale of a matching number of August 30 calls for $0.40. The trade resulted in a small credit and pushed total options volume in the networking stock to 15 times more than average. ADTN fell 1.20 percent to $27.24 on Friday and has spent the last four months consolidating between $25 and $30. Shares of the networking technology company gapped to a four-year high of $29.92 in mid-April after issuing a strong earnings report and providing a bullish second-quarter forecast.However, it gapped lower six sessions later and since then has been unable to regain those levels. Some traders may interpret the price action as an "island reversal" chart pattern and expect the next move to be lower.Friday's option trade is designed to leverage such a move and will generate profit if ADTN closes below $25 by July 16. The investor took the unusual step of selling calls that expire one month later and is therefore at risk of losing money if the shares rally above $30 by August expiration.Selling longer-dated calls allowed the trader receive a higher premium to finance the purchase of the puts. The decision reflects a belief the shares will push lower in the near term and stay down.The date of the next earnings release hasn't yet been announced but will probably be soon because the last one was on April 14. (Chart courtesy oftradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved. Stock Price 4 days before: 27.7147 Stock Price 2 days before: 27.3826 Stock Price 1 day before: 27.5656 Stock Price at release: 27.5675 Risk-Free Rate at release: 0.0017	32.1423
Symbol: GCO Security: Genesco Inc. Related Stocks/Topics: Markets\|FL\|SKX Title: Call buyers try Skechers on for size Type: News Publication: optionMONSTER Publication Author: Unknown Date: 2010-07-06 07:24:00 Article: Shoe retailers were one of the strongest sectors early this year, and now one investor is looking for Skechers to rally once again.optionMONSTER's Heat Seeker tracking system detected steady and determined buying in the August 40 calls throughout Friday's session, driving premiums from $2 to as high as $2.82. While the stock rose as trading progressed, most of the appreciation in the options resulted from strong demand for the calls. [SKX](http://www.optionmonster.com/cms/commentary/images/skx%207-5-10.png) SKX climbed 3.82 percent to $38.04 Friday but has pulled back sharply after hitting an all-time higher of $44.90 on June 21. The shares have been making incrementally higher lows for the last year and have managed to stay above the 100-day moving average (purple line on chart) in recent months, even as most other stocks collapsed far below that level.The company has been ripping higher on strong financial results and after announcing overseas expansion plans. Its last earnings report on April 28 crushed forecasts.The next release hasn't been scheduled but will likely occur late this month. Judging by Friday's option action, the bulls expect SKX to rally into the news. They need the stock to climb at least 12 percent by August expiration for their positions to turn a profit.Some investors may consider the company inexpensive because it has a price-earnings growth ratio of 0.77 times, indicating a low earnings multiple relative to the pace at which it's forecast to grow.Other shoe retailers such as Genesco, Finish Line, and Foot Locker haven't held their ground as well as SKX. Those competitors are all trading below their 100-day moving averages. Overall options volume in SKX was about seven times greater than average in the session, with calls accounting for 87 percent of the activity.(Chart courtesy oftradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved. Stock Price 4 days before: 26.59 Stock Price 2 days before: 26.4952 Stock Price 1 day before: 26.8131 Stock Price at release: 26.835 Risk-Free Rate at release: 0.0017	27.0083
Symbol: ODP Security: The ODP Corporation Related Stocks/Topics: XAU\|Markets\|BP\|XOM\|XLE\|AXP\|BA Title: This Bear Market Ain't No Bull Type: News Publication: Unknown Publication Author: Unknown Date: 2010-07-06 11:23:00 Article: **Strong gains by the euro and foreign market stocks gave the U.S. market its first advance in eight sessions. Despite a higher opening with the Dow up more than 170 points in the first 30 minutes, stocks faded for the rest of the day and were in the red by 3:30 p.m. But several late buying programs salvaged the day, and the three major indices closed higher.But any gains were hard fought with little news to support large block buying. Consumer discretionary stocks closed lower and small caps closed in the red. Office Depot, Inc. (NYSE: [ODP](http://moneycentral.msn.com/detail/stock_quote?symbol=ODP) ) fell 4.9%, Sears Holdings Corporation (NASDAQ: [SHLD](http://moneycentral.msn.com/detail/stock_quote?symbol=SHLD) ) fell 4%. The Boeing Company (NYSE: [BA](http://moneycentral.msn.com/detail/stock_quote?symbol=BA) ) was off 0.9% and American Express Company (NYSE: [AXP](http://moneycentral.msn.com/detail/stock_quote?symbol=AXP) ) fell 0.5%. The Russell 2000 was down 1.5%. The only economic news came from the ISM service index for June. The index came in at 53.8, which was lower than expected. The report, however, had little influence on the market.Energy stocks gained as BP plc (NYSE: [BP](http://moneycentral.msn.com/detail/stock_quote?symbol=BP) ) rebounded, up 8.7%, and Exxon Mobil Corporation (NYSE: [XOM](http://moneycentral.msn.com/detail/stock_quote?symbol=XOM) ) gained 1.57%. The utility sector was the biggest gainer, up 1.2%.At the close, the Dow Jones Industrial Average was up 57 points to 9,744, the S&P 500 rose 5 points to 1,028, and the Nasdaq gained 2 points to 2,094.The NYSE traded 1.3 billion shares with advancers just slightly ahead of decliners. The Nasdaq crossed 662 million shares with decliners ahead of advancers by almost 2-to-1.Crude oil for delivery in August fell 16 cents to $71.98 as worries over a possible failure of an international recovery dominated the session. The Energy Select Sector SPDR (NYSE: [XLE](http://moneycentral.msn.com/detail/stock_quote?symbol=XLE) ) closed at $49.86, up 48 cents. August gold fell $12.60 to settle at $1,195.10 an ounce, and the PHLX Gold/Silver Sector Index (NASDAQ: [XAU](http://moneycentral.msn.com/detail/stock_quote?symbol=XAU) ) lost 1.39 points, closing at 168.37. It was the sixth consecutive day down for the XAU, and its third day under its 200-day moving average. What the Markets Are Saying Some technicians will make preliminary calls of "bull" or "bear" on the strength of one index or system. And some the systems, like the well-known "Dow Theory," have been exceptionally accurate. However, the reliance on just one system for its predictive value, while ignoring scores of other technical tools, would be like a carpenter trying to build a house with just a saw or just a hammer. There is a complete toolbox of technical tools, and I try to use the most trustworthy before building a house of either bullish or bearish evidence.Therefore, when [I said Friday](http://www.optionszone.com/market-commentary/daily-market-outlook/2010/07/market-analysis-attention-new-bear-market-is-here.html) , that a new bear market has begun, that advice was based on the conjunction of many important, back-tested indicators that are telling us that the overall stock market is headed lower.One of those indicators is the "death cross." This highly bearish indicator occurs when the 10-week moving average crosses the 40-week moving average (i.e., 50-day crosses 200-day) and is usually followed by a downtrend for an extended period of time.But the death cross, and its bullish counterpart, the gold cross, are not perfect. A June 30 [Bloomberg article](http://www.businessweek.com/news/2010-06-30/death-cross-in-s-p-500-may-not-lead-to-rout-technical-analysis.html) correctly points out inconsistencies in the indicator's ability to predict, but admits that the S&P 500 fell 7.7% in the six months following the last death cross on Dec. 19, 2007. My own call was based on the following evidence:1) The broad-based NYSE Composite has executed a death cross (50-day moving average crossing down through the 200-day).2) The other major indices are just a session or two away from the same signal. And many are forming a "horn" or "broadening top" -- an unusual but highly accurate formation most often seen at market tops.3) The Dow Industrials, Dow Transports, and Dow Utilities have a pattern of lower highs and lower lows for a Dow bear-market confirmation.4) Finally, the S&P 12-month moving average has been decisively penetrated by June's falling prices, which was triggered on the final day of the month.In addition, the range of sentiment indicators are flashing "oversold," and any rally is little more than a technical reaction. A bounce in the market indices here is not likely to have legs. Our internal indicators -- [Moving Average Convergence/Divergence ( ](http://www.optionszone.com/learn-more/john-lansing/moving-averages-what-the-macd-can-tell-you.html) [MACD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MACD&selected=MACD) ) , stochastic, momentum, and Collins-Bollinger Reversal ([CBR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBR&selected=CBR)) ) -- have also flashed "bear Market." Even though this is an incomplete list of all indicators, their significance as primary signals over long periods has been tested. They are not perfect, but when taken together, they are very persuasive. Today's Trading Landscape**Earnings to be reported before the opening include: Canadian Solar and Family Dollar. Earnings to be reported after the close include: WD-40 Company. Economic reports due: MBA purchase applications, ICSC-Goldman Sachs store sales, Redbook, and Treasury STRIPS.If you have questions or comments for Sam Collins, please e-mail him at [[email protected]](mailto:[email protected]) . Related Articles: - [Time to Bank Your Profits in This ETF](http://www.optionszone.com/trading-picks/trade-of-the-day/2010/07/stock-picks-proshares-ultrashort-russell2000-value-etf-sjh.html) - [Best and Worst Stocks for July](http://www.optionszone.com/trading-picks/stocks/2010/06/top-stocks-to-buy-and-stocks-to-sell-for-july.html) - [8 Explosive Option Trades](http://www.optionszone.com/trading-picks/options/2010/07/explosive-options-trades.html)** Are You Ready for Dow 9,000?** John Lansing, trading maverick who called the market turn in March 2009, last summer's "rebound rally," gold's meteoric rise and a continued "bull run" earlier this year, now sees huge trouble ahead, and then a surprising rally that will take the Dow back to new all-time highs. [Here's why -- plus how to double your money as the market plunges and then soars.](http://www.investorplace.com/order/?sid=HA4282) [](http://www.optionszone.com/order/?sid=NP3332) Stock Price 4 days before: 4.04767 Stock Price 2 days before: 4.09065 Stock Price 1 day before: 4.23579 Stock Price at release: 4.07003 Risk-Free Rate at release: 0.0017	4.78622
Symbol: SAFE Security: Safehold Inc. Related Stocks/Topics: Markets Title: Gold Weakens as China Denies the Yellow Metal's Importance in Portfolio Diversification Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-07-07 05:38:00 Article: Gold price weakens further after breaking below 1200 yesterday. The benchmark contract falls to a 6-week low at 1186 in European session. Lack of catalysts, rebound and USD and profit-taking are factors driving the yellow metal lower.Appetite for gold was also hammered as the State Administration of Foreign Exchange ([SAFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SAFE&selected=SAFE)) ) in China reiterated gold will not become a main investment channel of its foreign exchange reserves. In the third in a series of statements explaining its work to the Chinese public, SAFE said that 'the US Treasury market is a very important market for China' as the bonds deliver 'fair good security, liquidity and market depth with low transaction costs'. At the same time, gold investment would not help China diversify its portfolio, according to SAFE. Crude oil remains soft in European session as stock markets lose ground. Currently trading at 71.7, the front-month contract for WTI crude oil has plunged for a 7th day, the longest streak since early May. Although the US Energy Department will likely report decline in crude oil inventory in the weekly report tomorrow, investors still choose to dump the commodity as they concern about the macroeconomic outlook. Moreover, correlation between oil and stock markets has been high. Therefore, falls in equities should lead to oil weaknesses.Stocks were generally lower in Asia. The MSCI Asia Pacific Index fell -0.7% while Hong Kong's Hang Seng Index slipped -1.1% and Australia's S&P/ASX 200 index edged down -0.5%. Chinese oil companies were one of the biggest losers as Chinese government's imposition of resources tax will reduce profits.China will implement a resource tax on coal, oil and natural gas in its western regions, citing Premier Wen Jiabao. 'Western regions' should include provinces named Shaanxi, Gansu, Ningxia, Qinghai, Xinjiang, Sichuan, Chongqing, Yunnan, Guizhou, Tibet, Guangxi, and Inner Mongolia. The tax, introduced in Xinjiang last month, is expected to expand to the western part of China and then to the world country. The news, however, came earlier than previously anticipated and it's detrimental to oil companies with large exposure in the western area. Among the 3 biggest listed oil companies, Petrochina will be hurt the most while CNOOC the least.European bourses open lower, paring gains made yesterday as weak US ISM services index hurt sentiment. Although the final estimate of Eurozone's 1Q10 GDP was unchanged from the previous reading (+0.2% q/q and +0.6% y/y), investors worry that growth in Germany's factory orders would have eased to +0.4% m/m in May, from +2.8% in the previous month.We have a light economic calendar today. Apart from Germany's factory orders, Canada will release the Ivey PMI which probably improved to 64 in June from 62.7 a month ago. Stock Price 4 days before: 0.0 Stock Price 2 days before: 0.0 Stock Price 1 day before: 0.0 Stock Price at release: 0.0 Risk-Free Rate at release: 0.0017	0
Symbol: XRX Security: Xerox Holdings Corporation Related Stocks/Topics: DELL\|Markets\|COF\|XOM\|JCI\|COP\|HMC\|CVX\|PKX Title: These Overlooked Blue Chips Offer Shelter in the Storm Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-07 06:31:00 Article: It's getting tough out there. On any given day, the market seems to drop right out of the gate, or instead start off strong only to slump later in the day. The net result: when the [closing bell](http://investinganswers.com/term/closing-bell-116) rings, stock of all stripes steadily march lower.In times like these, capital preservation becomes a real concern. You want exposure to stocks when the next rally comes, but you also want to sleep at night. Where to find stocks that can weather the storm? Well, we've run a list of large cap stocks that have slumped enough to see their [P/E](http://investinganswers.com/term/price-earnings-ratio-pe-459) rates fall by a solid amount, even though they are still on the up leg of the earnings cycle.As you'll note in the table above, several of these stocks -- especially the oil-and-gas plays, now offer juicy dividend yields. Royal Dutch Shell's (NYSE: [RDS](http://streetauthority.com/stocks/RDS) ) 5% [dividend yield](http://investinganswers.com/term/dividend-yield-361) likely looked impressive in early May when its shares were touching a 52-week high. But the recent slump in its shares has pushed the [yield](http://investinganswers.com/term/yield-1406) up to an even more impressive 7.0% yield.You know it's tough out there when venerable Honda Motor (NYSE: [HMC](http://streetauthority.com/stocks/HMC) ) is trading at just 10 times next year's profits. This is a company that has experienced flawless sales execution, has a sterling reputation with consumers, and is well-prepared to handle increasingly stringent efficiency and emissions regulations. As we've also discussed, investors are running as fast as they can from tech stocks. Dell (Nasdaq: [DELL](http://streetauthority.com/stocks/DELL) ) is hitting another fresh low this week, and now trades for just eight times projected 2011 profits. (That's closer to a P/E ratio of six when the company's hefty cash balance is excluded). A Diversified Industrialist gets Marked Down Most of the stocks on this list have their fortunes tied to one industry in particular. But Johnson Controls (NYSE: [JCI](http://streetauthority.com/stocks/JCI) ) can boast of solid diversity among its customer base. JCI makes batteries, auto parts, heating/ventilation/AC ([HVAC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HVAC&selected=HVAC)) ) systems and other products. It's also increasingly seen as a "green play" because its HVAC division has secured a wide range of new contracts to retrofit existing buildings in order to become as energy efficient as possible. That's now a $12 billion business for the company.It's easy to see the appeal of this business: In general, the payback period for saving electricity is much quicker than for investing in alternative energy generation. Typically, the costs associated with reducing electricity usage are recovered within three to four years; whereas the payback period for a solar or wind plant is more typically seven to eight years. JCI's battery division also has a green sheen. Its new lithium ion batteries (developed in conjunction with partner Saft) should become a key supplier to the nascent electric and hybrid vehicle markets.Of course, the company still makes money on legacy products. For example, JCI's traditional car battery business controls roughly one-third of the market for after-market batteries. That's a nice recurring business, as a typical car will go through at least three to four batteries in its lifetime. Johnson also makes a range of other auto interior products such as seats, door panels and electronics.But the most important thing to know about Johnson Controls can't be found among its customers or its products. Instead, it is the company's cost structure, which has shed so much weight in recent years that the company is considered to be the leanest in its field. During the past two years, the company has closed 31 plants, pared its workforce by about -12% and can still make a profit, even if the economy slumps again.Analysts think JCI can generate roughly $34 billion in sales this year, up a solid +19% from last year, but still about $4 billion below fiscal (September) 2008 levels. Once the economy gets back on its feet and sales move back toward the $40 billion mark, those cots cuts should yield record profits. Action to Take --> Johnson Controls has typically traded for between seven and 20 times forward earnings. Right now, the forward multiple is much closer to the low end of that range. Assuming shares trade up to the mid-point of that range, or 13 times projected earnings, and if the fiscal 2011 [EPS](http://investinganswers.com/term/earnings-share-eps-1003) forecast of $2.42 is to be believed, then shares should rise back up to the upper $30s. That's +50% above current levels. When sales claw back to the $40 billion mark, perhaps in fiscal 2012, per share profits should exceed $3. Not bad for a $26 stock. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. Most recently, he served as Managing Editor of RealMoney.com, the premium website of TheStreet.com. David has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV, and has a master's degree in management from Georgia Tech. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://streetauthority.com/a/these-overlooked-blue-chips-offer-shelter-storm-456321) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 7.95426 Stock Price 2 days before: 8.13622 Stock Price 1 day before: 8.14699 Stock Price at release: 7.97255 Risk-Free Rate at release: 0.0017	9.41436
Symbol: SA Security: Seabridge Gold Inc. Related Stocks/Topics: Markets Title: B. I. S. - Bullion Is Simoleons Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-07-07 09:46:00 Article: Good Morning,Just one day after letting it be known that it has no intentions of disgorging its dollar or euro foreign exchange reserve holdings, the Chinese State Administration for Foreign Exchange said that gold cannot be considered as a mainstream investment vehicle for its reserves. The reasons? The same ones we have often attempted to cite in these very columns: a small market, limited availability of large amounts, liquidity problems related to sizeable amounts.Marketwatch relays it as follows: "SAFE also said gold bullion won't make a big portion of it forex reserves in future because supply is limited and bullion doesn't have a very good track record on a risk-to-reward basis over the past 30 years."Gold has an inflation protection feature, but many other assets have this feature," the group said." Of course, when we did mention such minor 'details' -based on direct conversations with credible [local] sources- they were met with e-mailed howls (and worse) of incredulity and accusation of China playing poker. Does any of this imply that China will not keep adding some gold to reserves (provided they continue to grow)? Not at all; just not at the time, price, and in the amounts being virtually dictated by Internet forums and by agenda-driven hard-money zealots. Without mincing words, China basically said that the 'nuclear option' (dollar out/ gold in) is right o u t.The Chinese S.A.F.E. feels...unsafe placing a significant portion of its nearly 2.5 trillion dollars into an asset that would a) go much higher in value once China is seen as a buyer of large tonnage and b) getting stuck with such huge amounts would place the agency -indeed the country-into an illiquid position, should it ever need to dispose of portions of such holdings. Fiat or not, currencies remain the asset of choice (with gold a modest amount) for Chinese reserves allocation and management.Here is something that is possibly 'bigger' news than the Chinese agency's reluctance to load up on too much of a good thing: the fact that those (and others) central banks that did increase their gold reserves did so for perhaps a far more practical reason that gold bugs had conjectured last year. Recall that much noise was made about how central banks (previously the [gold market](https://www.nasdaq.com/market-activity/commodities/GCCMX) s putative top public enemy) had turned into net buyers and were now seen as becoming bedfellows to the 'man-in-the-street.'Well, it turns out that recent central bank gold buyers took that newly acquired shiny stuff and...promptly raised cash with it, by 'pawning' it with the Bank for International Settlements. The upshot? They were able to raise some $14 billion (that's against 349 tonnes of the yellow metal!) in sorely needed cash with the stash. Since December! Such swaps might yet place the entire gold-buying spree among central banks in 2009 in a different light. Not that the motivation is abnormal.Consider: Gold is a very effective means of raising cash. Gold was trading at record levels. Cash was (and is still) needed. A swap with the BIS allows one to raise said cash and buy the bullion back later (presumably when prices subside). Of course, no one know what happens if the BIS decides to liquidate such collateral on the open market-if the need arises due to a sovereign default. A staggering (by swap standards) 32 tonnes of bullion was pledged with the BIS in April alone. Such a swap would indeed be the largest on record. Observers have not named suspects but even India (the recent taker of 200 tonnes of IMF gold) was not off the list. In so many words, the gold bars that were supposed to have been taken off the market (perhaps for good) and gather dust in the basement, are instead gathering dollars from the BIS.The BusinessInsider.com goes as far as characterizing the swaps as a 'dumping' of gold by various central banks. Standard Bank ([SA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SA&selected=SA)) ) analysts use a bit milder tone in reporting the development, however, they too note that: "the data from the BIS which suggest some European central banks are raising cash via gold swaps, combined with a rising Euribor and Italy who have to roll substantial amount of debt between August and November is cause for concern." In all, not the best of timing for such news, given that the World Gold Council has just sent out a hefty-sized report on the wisdom of...central bank gold buying. To more than 800 central bankers. Who might get ideas...None of this stopped commodity guru Jim Rogers for (once again) issuing a clarion call to sell, sell, sell and buy, buy, buy. Buy what? Rice and other underpriced agricultural commodities mainly, and silver. And gold, which will - in his opinion, and without saying when- go to $2K per ounce. Sell what? Bonds, of course. Anything debt-related. What a shocker.Meanwhile, in overnight dealings, the yellow metal touched price levels of near $1184.00 per ounce in a continuation of its decline to new fresh six-week lows. The aforementioned Chinese policy statement contributed to the slippage in price but the hope was there that physical bargain hunters would step in and lend some support to the metal especially as relative strength indicators point to oversold conditions for the first time in nearly four months.Also after nearly four months from a post WWII peak of nearly 9%, the unemployment levels in the OECD countries are showing further signs of improvement. Job creation remains a difficult challenge albeit emerging market economies are doing their share in leading the recovery in the global economy. Nearly 17 million jobs were eliminated in the relatively brief 2007-2010 period as the global recession unfolded with a vengeance that harked back to the 1973 oil crisis, said the OECD this morning. Growth-related apprehensions are not absent from the market however. Not by a long-shot. The US stock index futures niche showed a potential dip in the making for the midweek session. This, as nervousness about Chinese and US economic strength continued to plague investment sentiment. Tuesday's letdown came from ISM non-manufacturing data.Elliott Wave guru Robert Prechter opines that the stock market faces its biggest potential decline in 300 years (someone in our archives lost all records going back more than a century, thus we cannot give you a sensible point of reference as to what such a drop might mean...). The US dollar continued to receive safe-haven bids in the wake of the ISM data, and stocks looked set for a wobbly start today. The euro eased back to under $1.26 albeit regional economic growth came in at 0.2% for Q1 -a 0.10 percent improvement from the final quarter of 2009.Spot metals dealings opened Wednesday's session with...more losses. This time, the selling was not limited to gold however. Silver and the noble metals also declined as the trading day got underway. Spot gold started off with a $6.50 per ounce loss, quoted at $1187.60 while silver fell 17 cents to $17.67 the ounce. Platinum lost $12 and palladium dropped $2 - the former quoted at $1501.00 and the latter at $434.00 per ounce. Rhodium was stable at $2400 after having shed $30 in the previous session.As oversold conditions could attract fresh buyers, caution is advisable for the bears. Nevertheless, the formation of a bearish 'double-top' reversal pattern and the violation of a 5-month long uptrend will have the NYMEX bulls competing with those in Pamplona, Spain for being...on the run at the moment. Hopefully, no one gets gored in either place...?Happy Trading.Jon Nadler Senior Analyst, Kitco Metals Inc.North America US & Canada Toll Free: 1 (877) 839-8036 Websites: www.kitco.com and www.kitco.cn Blog: http://www.kitco.com/ind/index.html#nadler Stock Price 4 days before: 28.9374 Stock Price 2 days before: 28.8506 Stock Price 1 day before: 28.4907 Stock Price at release: 28.0969 Risk-Free Rate at release: 0.0017	25.6609
Symbol: IMAX Security: IMAX Corporation Related Stocks/Topics: Personal Finance Title: Imax posts $9M "Eclipse" weekend, recovers some lost ground Type: News Publication: NASDAQ.com News Publication Author: Unknown Date: 2010-07-07 11:32:00 Article: IMAX Corporation's ([IMAX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IMAX&selected=IMAX)) ) positive quarterly figures were not matched by its [stocks](https://www.nasdaq.com/) ' performance on Tuesday. Shares of IMAX tumbled 12 percent in trading after the long weekend. Despite news that the company had taken in $9 million in ticket sales for the "The Twilight Saga: Eclipse," averaging $47,000 per screen, investors bailed out of the stock.On Wednesday, however, the company announced that its second-quarter IMAX DMR sales totaled $115 million, an increase of 37 percent over last year's second-quarter box office. The news led to an early 4 percent bump in the company's stock value, to $12.76 per share, on what looked to be another day of high-volume trading. IMAX relies on its patented Digital Media Remastering to transfer conventional films into a format that can be displayed on the immense IMAX screens. It has now become common for major blockbusters like the Twilight movies, Avatar, and Batman to release simultaneously in regular theaters and IMAX DMR screns.The company also announced that it has announced deals for 89 new IMAX systems so far this year, up from 35 in 2009. Stock Price 4 days before: 0.0 Stock Price 2 days before: 0.0 Stock Price 1 day before: 0.0 Stock Price at release: 0.0 Risk-Free Rate at release: 0.0017	0
Symbol: SRI Security: Stoneridge, Inc. Related Stocks/Topics: Markets\|STT Title: Wednesday Winners: Sirius XM Radio, State Street and JA Solar Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-07 12:59:00 Article: Among the biggest winners in Wednesday's early trading are Sirius XM Radio (Nasdaq: [SIRI](http://streetauthority.com/stocks/SIRI) ) , State Street (NYSE: [STT](http://streetauthority.com/stocks/STT) ) and JA Solar (Nasdaq: [JASO](http://streetauthority.com/stocks/JASO) ) . Sirius continues its Phoenix-like rise In the depths of the economic crisis, Sirius XM (Nasdaq: [SIRI](http://streetauthority.com/stocks/SIRI) ) looked headed for oblivion. The company's [balance sheet](http://investinganswers.com/term/balance-sheet-1083) was in tatters and demand for its satellite radio services was slumping, thanks to moribund new car sales. Just 12 months ago, Sirius announced that it had lost nearly 200,000 subscribers in the most recent quarter. For such a high fixed-cost business, a shrinking customer base is a real problem. One year later, Sirius is now looking far healthier. Its balance sheet is somewhat cleaner and no longer holds any near-term debt bombs. More importantly, the customer base is growing once again. On Wednesday morning, the company announced that it added nearly 600,000 net new subscribers, the highest quarterly figure in recent years. That's pushing shares up +6% in Wednesday trading. Action to Take --> We'll have a much deeper look into the company later today.------------------------------------State Street hints at a Bright Outlook to come from Financial Stocks Individual investors have been proceeding cautiously in the stock market ever since it bottomed out 15 months ago, but institutional investors like mutual funds and [hedge](http://investinganswers.com/term/hedge-345) funds jumped back into the market with both feet. That's been great news for State Street (NYSE: [STT](http://streetauthority.com/stocks/STT) ) , which caters to investing pros. The company announced Wednesday morning that it generated very strong second quarter results, helping to push shares up +10%. State Street's bullish report sets a positive tone for other financial firms as we head into [earnings season](http://investinganswers.com/term/earnings-season-344) . Action to Take --> Shares had touched 52-week lows last week, so management likely felt compelled to release supportive news now rather than wait for the July 20th earnings release date. The solid Q2 results could represent a real rebound. Analysts had expected full-year profits to badly lag 2009 results, but it now looks as if profits will be only modestly lower this year. But serious questions remain about the U.S. and European economies in the near and mid-term, so it's unclear if the current strength will extend into 2011. That's likely to cap further price [appreciation](http://investinganswers.com/term/appreciation-1107) in the near-term.------------------------------------Glimcher gets Some Analyst Support With all the data points showing a still-weak consumer sector, investors have been lightening their stakes in mall operators and other owners of retail properties. Shares of Glimcher Realty Trust (NYSE: [GRT](http://streetauthority.com/stocks/GRT) ) , which owns malls throughout the United States, has seen its stock fall in nine out of the last 10 sessions, capped off by a -7% plunge on Tuesday.That brought analysts at Hilliard Lyons to the company's defense. The firm just raised its rating from "Neutral" to "Buy," noting the stock's juicy [yield](http://investinganswers.com/term/yield-1406) of almost 8.0% and -30% undervaluation relative to the $7 price target. Shares are up roughly +5% on that move. Action to Take --> A bounce was inevitable after such a losing streak, but clear headwinds remain. Glimcher carries too much debt relative to its asset base -- a hangover from the heady days of 2007 when mall [REITs](http://investinganswers.com/term/real-estate-investment-trust-reit-1169) borrowed heavily to consolidate the industry. Glimcher also faces a rising tide of vacant properties that may stay vacant until the economy picks up steam. At some point, the company's alluring [dividend](http://investinganswers.com/term/dividend-1304) may need to be trimmed. [Caveat Emptor](http://investinganswers.com/term/caveat-emptor-74) .[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither StreetAuthority, LLC nor the David Sterman hold positions in any securities mentioned in this report.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. Most recently, he served as Managing Editor of RealMoney.com, the premium website of TheStreet.com. David has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV, and has a master's degree in management from Georgia Tech. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://streetauthority.com/news/wednesday-winners-sirius-xm-radio-state-street-and-ja-solar-456323) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 7.16686 Stock Price 2 days before: 7.32987 Stock Price 1 day before: 7.3235 Stock Price at release: 7.25266 Risk-Free Rate at release: 0.0017	10.8919
Symbol: GCI Security: Gannett Co., Inc. Related Stocks/Topics: Markets\|SPX Title: Speculators Single Out Gannett Co., Inc. and Madison Square Garden, Inc. Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-07-08 10:40:00 Article: Media mogul Gannett Co., Inc. ([GCI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GCI&selected=GCI)) ) and basketball behemoth Madison Square Garden, Inc. ([MSG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MSG&selected=MSG)) ) were both favorites in the options pits on Wednesday. In fact, both stocks were singled out for spread strategies, after GCI received upbeat analyst attention and MSG attracted buyers stricken with LeBron James Fever. Let's take a look... Gannett Co., Inc. ([GCI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GCI&selected=GCI)) )The shares of GCI ticked higher yesterday, after analysts at Zacks Investment Research noted improving advertising trends for the publisher. As a result, one spread strategist employed puts to bet bullishly on the stock, but hedged his bets in the event of a pullback. More specifically, the investor sold several hundred August 16 puts for the bid price of $2.54 apiece, and simultaneously purchased an equal amount of August 14 puts for the ask price of $1.28 each. In other words, the trader initiated a bull put spread on GCI for a net credit of $1.26 per pair of puts.By constructing the credit spread, the strategist is hoping the shares of GCI finish north of the $16 level when August-dated options expire. In this best-case scenario, the puts will expire worthless, allowing the trader to retain the entire premium received at initiation - which represents the maximum potential reward on the play.Meanwhile, the addition of the purchased 14-strike puts limits the trader's maximum potential risk at $0.74 per pair of puts (difference between strikes minus net credit), should the shares of GCI backpedal beneath the $14 level within the puts' lifetime. Nevertheless, the investor will avoid the red as long as the stock settles no lower than breakeven at the $14.74 level (sold put strike minus net credit) at expiration. [Bull put spread on GCI](http://www.schaeffersresearch.com/images/commentary/2009/100708GCIspread.gif) On the charts, the shares of GCI have struggled lately, underperforming the broader S&P 500 Index ([SPX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SPX&selected=SPX)) ) by 10% during the past 60 sessions. However, the stock recently bounced off support in the $13 level, which has acted as a technical backstop in 2010. Nevertheless, it may have been wise for the spread strategist to guard his position against a near-term retreat, as any rally attempts by the stock could be stifled by its 10-week and 20-week moving averages. [Weekly chart of GCI since December 2009](http://www.schaeffersresearch.com/images/commentary/2009/100708GCIweekly.gif)Madison Square Garden, Inc. ([MSG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MSG&selected=MSG)) ) Moving on, MSG was a star in the options arena yesterday, as the owner of the New York Knicks capitalized on hopes LeBron James would sign with the team. Like an NBA version of The Bachelor , James has batted his eyelashes at many suitors over the past few weeks, meeting with several teams and even having dinner with Jay-Z, a minority owner of the New Jersey Nets.Nevertheless, the two-time MVP for the Cleveland Cavaliers will put an end to the media madness tonight, with James slated to announce his decision during a one-hour broadcast on ESPN.Ahead of the event, one options trader took the neutral road less traveled by implementing a short-term strangle on MSG. More specifically, the investor bought symmetrical blocks of July 20 puts and July 22.50 calls for the ask prices of $0.60 and $0.50, respectively. As such, the strategist initiated the strangle for an initial debit of $1.10 per pair of contracts, which represents the maximum potential risk on the play.To make money, the investor needs the shares of MSG to make a monstrous move in either direction before the options expire. If LeBron deflates MSG shareholders' hopes tonight by not signing with the Knicks, a pullback beneath the $18.90 level (put strike minus net debit) would generate a profit on the play. On the flip side, should King James opt for the Big Apple, a rally north of the $23.60 level (call strike plus net debit) would result in a profit. [Long strangle on MSG](http://www.schaeffersresearch.com/images/commentary/2009/100708MSGspread2.gif) Technically speaking, the shares of MSG haven't exactly been known for volatility. In fact, the Wall Street freshman has spent most of its relatively short life bouncing between support in the $19.50 level and resistance in the $22.50 area. However, with all of the media hype surrounding James's future in the NBA, there's no telling what's in store for the security after tonight. [Long strangle on MSG](http://www.schaeffersresearch.com/images/commentary/2009/100708MSGweekly.gif) [Follow Schaeffer's to the San Francisco MoneyShow Aug. 19 - 21, 2010! Click here for details, including a list of scheduled presentations and how to register.](http://www.schaeffersresearch.com/edge/road.aspx) All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 13.1939 Stock Price 2 days before: 13.68 Stock Price 1 day before: 13.6435 Stock Price at release: 14.3465 Risk-Free Rate at release: 0.0017	13.1557
Symbol: BKE Security: The Buckle, Inc. Related Stocks/Topics: Markets\|CAR\|ANF Title: Thursday Winners: JC Penney, Abercrombie & Fitch and Avis Budget Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-08 12:15:00 Article: Among the biggest winners in Thursday's early trading are JC Penney (NYSE: [JCP](http://streetauthority.com/stocks/JCP) ) , Abercrombie & Fitch (NYSE: [ANF](http://streetauthority.com/stocks/ANF) ) and Avis Budget (NYSE: [CAR](http://streetauthority.com/stocks/CAR) ) . JC Penney defies the Skeptics When a stock goes into freefall, you can often assume that bad news is on the way. So after watching shares of JC Penney (NYSE: [JCP](http://streetauthority.com/stocks/JCP) ) lose a third of their value during the past three months, it was safe to assume business was slowing down. But the retailer has actually been faring well, seeing same store sales rise +4.5% in June ahead of the consensus +3.4% forecast. That's pushing shares up nearly+7% in Thursday trading. The JC Penney sales results highlight the real challenge in this market. Fear has been the prime motivation. As investors see a stock chart start to weaken, they sell into the slump and assume there must be negative information coming. That's why it's crucial to stick with your convictions. If you think that a company is well-positioned for the years to come, then stand your ground. Yes, it's painful to watch a dismal stock chart, but many of today's losers will be tomorrow's winners once fear no longer rules the roost. Action to Take --> At 10 times fiscal (January) 2012 profits, shares of JC Penney have likely found a floor in the low $20s and should be appealing for those with longer time horizons. But strong near-term upside is likely to be muted until government data tells us that the economy will clearly avoid a second downturn.------------------------------------Abercrombie's Sudden Turnaround Whereas broad line retailers like JC Penney tend to grow (or shrink) at a moderate pace, teen-focused retailers tend to see same-store sales figures swing wildly. Teenagers show tremendous brand loyalty for short bursts until the herd moves on to the next hot retailer. A decade ago, Abercrombie & Fitch (NYSE: [ANF](http://streetauthority.com/stocks/ANF) ) was the most heavily-pursued ratail brand for teens and investors. In 2008, Abercrombie lost its cachet to rivals like Aeropostale (NYSE: [ARO](http://streetauthority.com/stocks/ARO) ) , seeing its shares go from $80 to $15 in just six months.Recent sales data have implied that Abercrombie still lagged its hotter rivals. So what to make of Thursday's announcement that same-store sales rose a heady +9% in June? Rivals Wet Seal (Nasdaq: [WTSLA](http://streetauthority.com/stocks/WTSLA) ) , Buckle (NYSE: [BKE](http://streetauthority.com/stocks/BKE) ) and Hot Topic (Nasdaq: [HOTT](http://streetauthority.com/stocks/HOTT) ) all saw same-store sales fall.The short answer is that Abercrombie is back -- for now. Same store sales gains are largely a reflection of improved [market share](http://investinganswers.com/term/market-share-778) , as teen spending remains fairly muted in this era of high unemployment, especially since summer jobs are increasingly scarce. Action to Take --> Abercrombie & Fitch once again looks like an earnings growth story. Per share profits are expected to rise roughly +70% this year and another +40% in fiscal (January) 2012 to about $2.60. But the wild market share swings keep these teen-focused retailers from ever getting too high a multiple. Aeropostale, for example, with its impressive sales and profit momentum, still trade for just 10 times next year's profits. If you are going to play this space, Aeropostale still looks like the better bet, despite Abercrombie's current momentum.------------------------------------A Healthier Rental Car Market Shares of Avis Budget Group (NYSE: [CAR](http://streetauthority.com/stocks/CAR) ) are up sharply for the second straight day after rival Dollar Thrifty (NYSE: [DTG](http://streetauthority.com/stocks/DTG) ) announced Wednesday morning that it would post very strong [operating income](http://investinganswers.com/term/operating-income-1207) in its second quarter. Dollar Thrifty has agreed to be acquired by industry leader Hertz (NYSE: [HTZ](http://streetauthority.com/stocks/HTZ) ) , which is great news for Avis as well. That's because Hertz is expected to eliminate some Dollar Thrifty locations at airports and elsewhere that directly compete with Hertz. So consumers will be faced with a smaller array of rental car choices, enabling the rental car firms to boost prices. Action to Take --> Shares of Avis had run up toward the $12 mark in anticipation of this industry-boosting [consolidation](http://investinganswers.com/term/consolidation-1294) , but they've given back about -20% since then -- despite this week's rally -- and trade for a very reasonable eight times projected 2011 profits. When the economy gets back on its feet, earnings for this economically-sensitive company could power higher, implying an even lower multiple for peak earnings.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. Most recently, he served as Managing Editor of RealMoney.com, the premium website of TheStreet.com. David has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV, and has a master's degree in management from Georgia Tech. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://streetauthority.com/news/thursday-winners-jc-penney-abercrombie-fitch-and-avis-budget-456331) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 31.9382 Stock Price 2 days before: 31.867 Stock Price 1 day before: 31.2839 Stock Price at release: 28.5439 Risk-Free Rate at release: 0.0017	26.2358
Symbol: SAFE Security: Safehold Inc. Related Stocks/Topics: Markets Title: Will China's statement hit gold prices? Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-07-09 02:27:00 Article: The statement of China's State Administration of Foreign Exchange ([SAFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SAFE&selected=SAFE)) ) is unlikely to impact the bullion market.The SAFE described Beijing as a responsible long-term investor and doesn't seek the power to control recipients of its investment. It said gold is a store of value and can be used for urgent payment. However, there are some limits to investing in gold and it cannot become a main channel for investing our foreign exchange reserves. First, the size of the [gold market](https://www.nasdaq.com/market-activity/commodities/GCCMX) is limited. Annual global gold output is about 2,400 tonnes and there is a basic balance between its supply and demand now.If China buys a large amount of gold, it will surely push up the global gold price. China's gold price basically matches the global level, so when Chinese people go to buy gold jewellery in shopping centres, they face surging prices. That will eventually hurt the interest of Chinese consumers.The announcement caused a minor stir in gold prices, sending bullion down around $6 or 0.8%, to $1,188.75 in the first 30 minutes after the news broke.Analysts said this won't have a big impact. The market is under pressure for other reasons, there is a worry of a bigger pullback and there is a flight to cash.China has increased its gold holdings by more than 400 tonnes in the past few years to 1,054 tonnes. Even if it doubled that amount, gold's share of SAFE's portfolio would increase by only one or two percentage points. With China the leading global gold producer for the last three years, there is no point for them to buy from outside and disturb the market.Though they are increasing their gold reserves in a slow and steady manner, those purchases have been largely internal. This news is unlikely to have any major impact on gold as China wasn't behind the gold bull run.Analysts said Beijing's comments, which echo those made in March and June, may be a bid to keep domestic prices in check as it builds its golden hoard from domestic supplies. Stock Price 4 days before: 0.0 Stock Price 2 days before: 0.0 Stock Price 1 day before: 0.0 Stock Price at release: 0.0 Risk-Free Rate at release: 0.0016	0
Symbol: CAL Security: Caleres, Inc. Related Stocks/Topics: CBOE\|Markets Title: Options Trade of the Day: A Calendar Spread on Continental Airlines Inc. Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-07-09 03:23:00 Article: Just because a company is in the process of being purchased doesn't mean you can't use options to speculate on the stock's price action. Take today's options activity on Continental Airlines Inc. ([CAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CAL&selected=CAL)) ), for example. Despite UAL Corp.'s ([UAUA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UAUA&selected=UAUA)) ) pending acquisition of CAL, options traders have sent more than 4,000 call contracts across the tape on the security so far today. Most of this volume crossed on CAL's July 23 strike, though the August 23 strike also saw considerable activitiy.After digging around in CAL's options activity, I found a rather interesting trade encompassing both strikes. Specifically, a block of 300 July 23 calls traded at about 12:18 p.m. Eastern time on the Chicago Board Options Exchange ([CBOE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBOE&selected=CBOE)) ) for the bid price of $0.55. At the same time, and on the same exchange, 300 August 23 calls changed hands for the ask price of $1.66. Given this data, it would appear that we are looking at a potential calendar spread on Continental Airlines. This strategy is also known as a time spread, or a horizontal spread. [CAL July 23 and August 23 call volume](http://www.schaeffersresearch.com/images/commentary/2010/100709CAL1.gif) For those not familiar with this options strategy, a calendar spread is the simultaneous purchase and sale of an equal number of calls (or puts) on a given underlying stock at the same strike but with different expiration dates. The calendar spread trader is looking for accelerated erosion in the time value of the front-month option, which he hopes to buy back at expiration for practically nothing, while collecting a larger premium by selling to close the back-month option. The Anatomy of a Continental Airlines Calendar Spread Drilling down on today's CAL calendar spread, the trader sold 300 July 23 calls for $16,500 -- ($0.55 * 100) * 300 = $16,500. At the same time, the trader purchased 300 August 23 calls for $49,800 -- ($1.66 * 100) * 300 = $49,800. The total outlay for this position would be $33,300 -- $49,800 - $16,500 = $33,300. [CAL calendar spread breakdown](http://www.schaeffersresearch.com/images/commentary/2010/100709CAL2.gif) The maximum loss on this trade is limited to the net debit of $1.11, or $111 per contract, paid when the trade was established. Meanwhile, the maximum profit is limited to the premium received for the back-month option when it is sold to close out the position, minus the cost to buy back the front-month call, minus the net debit paid to establish the position. The maximum profit is achieved if CAL closes at $23 per share on July expiration.Since there are two expiration dates for this trade, and we cannot know for certain what the exact value of the August 23 call will be when the July 23 call expires, we can only estimate the approximate return on the CAL calendar spread. In the best-case scenario, CAL would close at the 23 strike when July options expire, allowing the July 23 call to expire worthless. At that point, the August 23 call would be worth only its time value and implied volatility -- no intrinsic value.In this example, the August 23 call will be worth an estimated $1.54 at July expiration, according to [IVolatility.com's](http://www.ivolatility.com/calc/) pricing calculator, allowing the trader to sell to close the position for $1.54 per contract. After subtracting out the cost of the position ($1.11), the trader would snag a profit of $0.43, or $43 per contract. Below is a chart for a rough visual representation: [CAL calendar spread profit/loss chart](http://www.schaeffersresearch.com/images/commentary/2010/100709CAL3.gif)Implied Volatility The most ideal calendar spread trade occurs when near-month implied volatilities are high relative to options with a longer life. Optimally, the spread trader needs implied volatility to remain steady on the shorter-term sold option (or to increase on the purchased option). The best-case scenario for a calendar spread is that the sold option expires out of the money, while the purchased option retains time premium. At the time of the trade, implieds for the CAL July 23 call arrived at 52.40%, while the implied volatility for the August 23 call rested at 58.31%. [Follow Schaeffer's to the San Francisco MoneyShow Aug. 19 -- 21, 2010! Click here for details, including a list of scheduled presentations and how to register.](http://www.schaeffersresearch.com/edge/road.aspx) All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 20.5285 Stock Price 2 days before: 20.4309 Stock Price 1 day before: 21.6148 Stock Price at release: 22.1642 Risk-Free Rate at release: 0.0016	23.5894
Symbol: SAFE Security: Safehold Inc. Related Stocks/Topics: Markets Title: China won't dump dollar for gold Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-07-09 05:51:00 Article: **** If bullion investors thought the recent move by China to free yuan from dollar will help gold in a big way, think again. China seems to be not much interested in dumping gold forever, even though Beijing is ready to give flexibility to yuan.In a recent statement, China's State Administration of Foreign Exchange ([SAFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SAFE&selected=SAFE)) ), which administers China's $2.4 trillion in reserves, said it would not use its foreign exchange reserves as an atomic weapon against investment targets. The statement is a declaration of confidence in the US dollar; it is also a grudging acceptance of the limits of its bluster last year, when it stoked fears of a dollar collapse by feeding ill-informed market speculation that it would dump its huge holdings of US government debt.It is hard to construct a reassuring statement around the words atomic weapon, but that is exactly what China's SAFE did. SAFE also made its clearest articulations to date on why it would be difficult for China to diversify its foreign exchange reserves meaningfully by buying gold.Gold is globally recognised as a store of value and can be used for urgent payment, but there are some limits to investing in gold, and it cannot become a main channel for investing our foreign exchange reserves, the statement noted.It pointed out that the [gold market](https://www.nasdaq.com/market-activity/commodities/GCCMX) was limited and gold prices were very volatile. Additionally, SAFE noted, gold investments don't generate returns, and in fact, investors have to bear costs -- on storage, transportation and insurance. Looking back at its performance over the past 30 years, the risk-return balance of gold is not very good... Gold can be a hedge against inflation, but quite a few other assets can too.The SAFE said buying gold would not help very much in diversifying China's foreign exchange reserves. China had increased its gold reserve by more than 400 tonnes in the past few years, and its gold reserves now stood at 1,054 tonnes. "Even if we double the amount, it can only diversify about $30-40 billion of China's foreign exchange reserves," it noted. Even then, the proportion of gold reserves in China's forex reserves would increase by only one or two percentage points, it observed. China is in fact diversifying its foreign exchange reserves at the margin -- into a very surprising avenue. There has been a very clear pick-up in China's purchases of Japanese Government Bonds (JGBs) so far this year. China has bought net $5.8 billion of JGBs so far this year, including some $2.2 billion purchased in April alone.This is an astounding turnaround from the net selling of $0.9 billion in 2009 and net purchases of $0.25 billion in 2008. Stock Price 4 days before: 0.0 Stock Price 2 days before: 0.0 Stock Price 1 day before: 0.0 Stock Price at release: 0.0 Risk-Free Rate at release: 0.0016	0
Symbol: SCSC Security: ScanSource, Inc. Related Stocks/Topics: BIDU\|Markets\|INTC\|GOOG Title: Friday Winners: Nanometrics, Scansource and Google Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-09 11:46:00 Article: Among the biggest winners in Friday's early trading are Nanometrics (Nasdaq: [NANO](http://www.streetauthority.com/stocks/NANO) ) , ScanSource (Nasdaq: [SCSC](http://www.streetauthority.com/stocks/SCSC) ) and Google (Nasdaq: [GOOG](http://www.streetauthority.com/stocks/GOOG) ) . Nanometrics' Rebuttal Shares of semiconductor test equipment maker Nanometrics (Nasdaq: [NANO](http://www.streetauthority.com/stocks/NANO) ) are rebounding +4.5% on Friday after the company issued a press release Thursday evening refuting bearish comments from analysts at Oppenheimer. Analysts had slashed their sales and profit forecasts while cutting their target price from $13 to $10 after the company lost out on a lucrative new contract with Intel (Nasdaq: [INTC](http://www.streetauthority.com/stocks/INTC) ) . Management did not directly address the analysts' assertions, but instead simply noted that "the current business environment is extremely healthy." Investors will need to wait until the August 5th conference call to find out what that really means. Action to Take --> Nanometrics' quarterly results have been very erratic, and management may be signaling that the current quarter will be one of the more robust ones. That does nothing to assuage Oppenheimer's concerns that long-term growth rates may need to be tempered. As is the case with many tech stocks right now, shares are quite cheap at about eight times projected 2010 profits. The real catalyst for this and other tech stocks is a lifting of fears that industry sales are on the cusp of heading south. That may not happen until investors come to believe that the global economy is on healthy footing.-------------------------------------ScanSource's Bullish View Investors that continually check the health of spending among small and medium-sized businesses often eagerly await the end-of-quarter sales announcement from ScanSource (Nasdaq: [SCSC](http://www.streetauthority.com/stocks/SCSC) ) . The company distributes a range of small electronics such as barcode systems, point-of-sale systems and telephone equipment to companies that are too small to deal directly with manufacturers.It's a hopeful sign for the economy that ScanSource just pre-announced robust sales numbers. Sales will likely be around $575 million, up from $441 million last year and above the $540 million consensus forecast -- a company record. The pre-announcement is pushing shares up more than +5%. Although ScanSource won't release full fiscal fourth quarter results until August, per share profits are likely to be about +10% higher than analysts forecast. Action to Take --> Shares of ScanSource have been in the $25 to $30 range for much of the past five years, even as sales have risen +30% during that time. The company is mostly focused on the North American market and is insulated from international economic concerns, but it's too soon call this bullish report a trend, as quarterly sales reports have been quite erratic. ScanSource represents much more of a solid long-term holding than a short-term trade. -------------------------------------Google looks to rebuild Lost Chinese Market Share In the battle between the world's most promising new tech economy and the world's hottest tech company, the company blinked. Google (Nasdaq: [GOOG](http://www.streetauthority.com/stocks/GOOG) ) is officially back in business in China after agreeing to alter how users access its search service. The move is pushing shares up, even as it garners jeers from human rights campaigners that had hoped Google would stand firm with its anti-censorship stance.The business-boosting move for Google is a clear negative for Chinese search competitor Baidu.com (Nasdaq: [BIDU](http://www.streetauthority.com/stocks/BIDU) ) , which was able to almost completely dominate the market while Google was inactive. Shares of Baidu are trading down -3% on Friday but above levels seen when Google's market re-entry first hit the tape.It remains to be seen how much brand loyalty Baidu was able to garner in Google's absence. Action to Take --> The move is unlikely to alter analysts' earnings forecasts for Google, as China likely represents less than 2% of total sales. But if the search giant is able to regain a foothold and also eventually become a player in the PC software and mobile phone markets in China through its Android platform, then China could eventually come to represent a major growth driver. Only a quarter of the Chinese population has Internet access, but the market could triple in size to achieve penetration rates similar to those found in Japan and Korea.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: David Sterman does not own shares of any security mentioned in this article.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. Most recently, he served as Managing Editor of RealMoney.com, the premium website of TheStreet.com. David has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV, and has a master's degree in management from Georgia Tech. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/news/friday-winners-nanometrics-scansource-and-google-456338) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 23.8419 Stock Price 2 days before: 23.7721 Stock Price 1 day before: 24.7845 Stock Price at release: 26.4475 Risk-Free Rate at release: 0.0016	27.5088
Symbol: BKE Security: The Buckle, Inc. Related Stocks/Topics: BTU\|Markets\|TD\|GPS\|MAT\|COP\|PNC\|STT\|FCX\|X Title: Dividend Stock Leaders for the Week of July 6-9 (STT, PNC, BTU, X, FDO, GPS, more) Type: News Publication: Dividend.com Publication Author: Unknown Date: 2010-07-10 08:21:00 Article: Here are some of the biggest dividend stock winners and losers from the week that just ended. CompanyFri. CloseWeekly% ChangeU.S. Steel ([X](http://www.dividend.com/dividend-stocks/industrial-goods/metal-fabrication/x-us-steel/)) ).88+13.86%State Street Corp ([STT](http://www.dividend.com/dividend-stocks/financial/regional-northeast-banks/stt-state-street-corp/)) ).21+13.41%Freeport-McMoran ([FCX](http://www.dividend.com/dividend-stocks/basic-materials/copper/fcx-freeport-mcmoran/)) ).98+12.71%PNC Bank Corp. ([PNC](http://www.dividend.com/dividend-stocks/financial/money-center-banks/pnc-pnc-financial/)) ).89+11.17%Peabody Energy Corporation ([BTU](http://www.dividend.com/dividend-stocks/basic-materials/industrial-metals-and-minerals/btu-peabody-energy/)) ).29+11.03%Mattel ([MAT](http://www.dividend.com/dividend-stocks/consumer-goods/toys-and-games/mat-mattel/)) ).57+7.73%Toronto Dominion Bank (the) ([TD](http://www.dividend.com/dividend-stocks/financial/foreign-money-center-banks/td-toronto-dominion-bank/)) ).15+7.59%ConocoPhillips ([COP](http://www.dividend.com/dividend-stocks/basic-materials/major-integrated-oil-and-gas/cop-conocophillips/)) ).30+7.13%Gap Inc. ([GPS](http://www.dividend.com/dividend-stocks/services/apparel-stores/gps-gap-stores/)) ).53-4.88%Lincare Holdings Inc. ([LNCR](http://www.dividend.com/dividend-stocks/healthcare/home-health-care/lncr-lincare-holdings/)) ).17-5.69%Family Dollar Stores Inc. ([FDO](http://www.dividend.com/dividend-stocks/services/discount-variety-stores/fdo-family-dollars-stores/)) ).00-6.78%Buckle Inc. (The) ([BKE](http://www.dividend.com/dividend-stocks/services/apparel-stores/bke-buckle-inc/)) ).43-10.93% Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php) . Created by Dividend.com Stock Price 4 days before: 32.456 Stock Price 2 days before: 30.8416 Stock Price 1 day before: 28.598 Stock Price at release: 28.4277 Risk-Free Rate at release: 0.0016	26.4541
Symbol: PBT Security: Permian Basin Royalty Trust Related Stocks/Topics: Markets\|DUG\|SLB\|BTE Title: Income in a Zero-Rate World - Revisited Type: News Publication: SeekingAlpha Publication Author: Unknown Date: 2010-07-11 04:59:00 Article: [Andy Sutton](http://www.suttonfinance.net/) submits:It has been 18 months now since the [original piece](http://seekingalpha.com/article/117890-income-in-a-zero-rate-world) of the same name. Quite a lot has happened in those 18 months, but we still have the zero-rate world and along with it all of the accompanying problems. One positive side for fixed-income style investors has been the ability to make nice capital gains on bonds. But how about those who are interested in monthly or quarterly income and don't wish to trade in and out of traditional fixed income instruments? In this essay, we'll take a look at the portfolio model that was created 18 months ago and see how it has performed.One important thing to note is that one of the Canadian Trusts (Harvest Energy) no longer does business by that name. It was purchased by Korean National Oil Corporation (([KNOC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KNOC&selected=KNOC)) )) at the end of last year. It was perhaps the first casualty of Canada's ill-fated decision to change the taxing structure for Trusts and it was a big one. Harvest was one of very few vertically integrated Oil & Gas operations, meaning that it owned refinery operations in addition to its exploration and production program. It was viciously attacked by short-sellers during the months leading up to the acquisition and when shareholders were offered a roughly 40% premium over the then $6 and change trading price, they jumped and Harvest was lost. Trimming your Hedges The hedging tool used in this particular Portfolio Model was the UltraShort Oil & Gas ETF ([DUG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DUG&selected=DUG)) ) since it correlated fairly well with the mix of assets represented. However, one of the drawbacks of these ETFs is their propensity to leave gains on the table based on the objectives they pursue. This reality has become somewhat better understood by investors, but let's go over it again if for no other purpose than to reinforce the point.From the ProShares website:What they're saying is if you purchase this type of fund and it moves 2X the inverse of the correlated index or security, that if the underlying issue moves down 20%, you would expect the price of the 2X inverse fund to go up 40%. It doesn't always work that way. Depending on the price action, you could actually end up with a much lower gain, especially if the price action is volatile and choppy.Again, this is not meant to be an indictment of these types of funds, but rather to point out that no hedge is going to be perfect and you'd better keep your eye on the ball if you want to be successful. The Sample Portfolio Model Let's see how our components have fared over the past 18 months: [Sample Portfolio Model](http://www.sutton-associates.net/issue_images/model_07092010.jpg) For the 18 months ended June 2010, the portfolio model is up substantially not counting dividends. Assuming the purchase of the same 100 shares each and 250 shares of DUG as in the original article, our portfolio on 11/20/2008 would have cost us $31,969. As of 7/8/2010, it would be worth $47,964 for an increase of 50%. During the same time, the portfolio threw off $2,634 in dividends making the effective yield of the portfolio 8.24% and bringing in $146.33/month in dividend/distribution income. $146 doesn't sound like a lot of money, but when you consider deploying a $100,000 or $200,000 portfolio in this fashion, suddenly you're talking about some very nice cash flow - certainly in excess of what can be found at the local bank. The performance metrics stated above assumed that the positions were all started on 11/20/2008; a significant market bottom. Waiting until 3/6/2009 to begin them would have resulted in slightly higher gains. We put a few of these positions to work in our newsletter portfolio on 3/13/09 and they have performed in spectacular fashion. [Model Performance](http://www.sutton-associates.net/issue_images/model_performance_07092010.jpg) During the same period of time, the Dow Jones Industrials are up just 34%, with well under one-half the yield of this model. The S&P500 is up only 33% with just over one quarter the yield of the model. Conclusions One thing that has worked extremely well for me in practice is the strategic placement and removal of hedging devices. I am not talking about trading hedges; that is a completely different animal. What I am talking about is searching for multi-month trends and then placing or removing hedges based on the results of that research. For the average investor who has neither the time nor the inclination to get involved at this level, selecting a solid hedge, putting it in place, and monitoring once a week should suffice.Still other investors who don't mind potential wild fluctuations in their core holdings, but are interested merely in yield, will construct a similar portfolio and put 100% of their capital to work earning dividends. We could have pumped the yield of our sample model up considerably by doing that, but decided on a more conservative approach and were willing to leave a point or two of yield on the table in favor of more stable performance.One thing to note is that many of these components have had their dividends cut since 11/20/2008. Several have been cut significantly. A few were cut, and are now beginning to increase again. One of the lesser-known ramifications of the ongoing credit crisis is that many small and midsize companies have had a difficult time raising capital at reasonable rates. This resulted in a more protective position taken on by management as they've sought to preserve cash for operations. This has led to dividend cuts in many cases. Falling share prices in 2008 and 2009 made it easy to do so since they could cut the dividend and still maintain a similar yield for new investors. The argument could certainly made that this is irrelevant since 8% is 8% no matter what the price/distribution levels, but I think it needs to be mentioned to maintain a spirit of objectivity. Disclosures: Long PWE, PGH, KMPSee also [Cramer's Mad Money - The Greatest Comeback Story in U.S. History (7/27/10)](http://seekingalpha.com/article/216886-cramer-s-mad-money-the-greatest-comeback-story-in-u-s-history-7-27-10?source=nasdaq) on seekingalpha.com Stock Price 4 days before: 17.9381 Stock Price 2 days before: 18.7734 Stock Price 1 day before: 18.945 Stock Price at release: 18.8417 Risk-Free Rate at release: 0.0016	19.1508
Symbol: JBLU Security: JetBlue Airways Corporation Related Stocks/Topics: LUV\|Markets\|CAL\|AMR\|ALK\|DAL Title: Airline Industry: Growth Returning Type: News Publication: SeekingAlpha Publication Author: Unknown Date: 2010-07-11 05:43:00 Article: [Robert Herbst](http://www.airlinefinancials.com/) submits:Is "growth" really returning to the airline industry? Based on almost daily press releases, airlines appear to be adding new destinations every week.Analysis by [AirlineFinancials.com](http://www.airlinefinancials.com/) shows most airlines are not adding any significant growth, but simply moving the chairs around the deck, as opposed to adding new ones. In other words, most airlines are - transferring - aircraft and resources from one route to another opposed to - adding - capacity. Airline industry for this report includes the nine largest US airlines: Delta ([DAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DAL&selected=DAL)) ), American ([AMR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMR&selected=AMR)) ), United ([UAUA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UAUA&selected=UAUA)) ), Continental ([CAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CAL&selected=CAL)) ), US Airways ([LCC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LCC&selected=LCC)) ), Southwest ([LUV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LUV&selected=LUV)) ), JetBlue ([JBLU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JBLU&selected=JBLU)) ), Alaska ([ALK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ALK&selected=ALK)) ), and Air Tran ([AAI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AAI&selected=AAI)) ). Except where noted, data represents mainline operations. Mainline Operations - 1st Half 2010 Compared to 1st Half 2009Contrary to popular belief, available seat mile capacity (ASMs) shows Alaska, Air Tran, and JetBlue as the only major airlines actually adding capacity compared to last year. Collectively the nine airlines covered in this analysis flew 5.8 billion less ASMs in the first half of 2010 than they flew in the same time period a year ago.United had the largest year-over-year capacity decline at 3.8%, followed closely by Southwest at a 3.3% decline. JetBlue had the largest increase at 5.8% (see following chart). Full-Year 2010 Capacity Projections Compared to 2009 Based on each airline's investor updates, Air Tran, Alaska, and JetBlue will once again lead the industry in 2010 capacity growth compared to 2009. Only Southwest and United are projected not to add any capacity for 2010 (see following chart). Regional Affiliates - YOY Change 2007 - 2010Another current misnomer is that the legacy mainline airlines have all increased their regional affiliate capacity while shrinking the mainline. Reality is, United is the only airline to have continuous increases in their regional affiliate capacity. Regional affiliate capacity for Delta, American, Continental, US Airways, and Alaska has been flat to declining over the last three years.As a ratio of total consolidated capacity for 2010, US Airways is projected to have the highest regional impact, closely followed by United and Delta. American has by far the least amount of regional capacity compared to other legacy competitors (see following chart). Ten-Year Look BackCapacity Change - 2nd Quarter 2010 Compared to 2nd Quarter 2000 The last major profitable growth period for the airline industry ended nearly ten years ago. Year 2000 was the last full year following approximately five years of record profits and growth for the airline industry.Even after accounting for the 45% capacity increase from Alaska, 73% increase from Southwest, 345% increase from Air Tran, and the 8.7 billion ASM increase from upstart JetBlue, these nine airlines plus their merged partners, cumulatively operated 6.4% less ASM's than they did in the same time period ten years ago (see following chart).Note for 2nd quarter 2000 capacity: Delta includes Northwest, American includes TWA, and US Airways includes America West. Load Factor Change - 2nd Quarter 2010 Compared to 2nd Quarter 2000One of the most significant industry changes over the last decade is the increase in every airlines' load factor. Specifically for the 2nd quarter, Southwest's 6.7% change in load factor was the industry's smallest increase compared to ten years ago. All other airlines increased load factors from 10.3% to 14.6% (see following chart). Note: Load factor is the percentage of passenger seats sold. Conclusion: It is the opinion of AirlineFinancials.com that passenger demand reconciled with little to no increase in capacity will continue to provide record load factors for at least the 3rd quarter of 2010. Further, this historically high traffic demand combined with lower fuel costs than previously projected will lead to significant profits for most of the airline industry.Data sources are SEC, BTS and Corporate filings. Disclosure:See also [Overlooked Value Investment Ideas](http://seekingalpha.com/article/216927-overlooked-value-investment-ideas?source=nasdaq) on seekingalpha.com Stock Price 4 days before: 5.47933 Stock Price 2 days before: 5.68344 Stock Price 1 day before: 5.93605 Stock Price at release: 5.90642 Risk-Free Rate at release: 0.0016	6.4734
Symbol: CAL Security: Caleres, Inc. Related Stocks/Topics: LUV\|Markets\|AMR\|JBLU\|ALK\|DAL Title: Airline Industry: Growth Returning Type: News Publication: SeekingAlpha Publication Author: Unknown Date: 2010-07-11 05:43:00 Article: [Robert Herbst](http://www.airlinefinancials.com/) submits:Is "growth" really returning to the airline industry? Based on almost daily press releases, airlines appear to be adding new destinations every week.Analysis by [AirlineFinancials.com](http://www.airlinefinancials.com/) shows most airlines are not adding any significant growth, but simply moving the chairs around the deck, as opposed to adding new ones. In other words, most airlines are - transferring - aircraft and resources from one route to another opposed to - adding - capacity. Airline industry for this report includes the nine largest US airlines: Delta ([DAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DAL&selected=DAL)) ), American ([AMR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMR&selected=AMR)) ), United ([UAUA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UAUA&selected=UAUA)) ), Continental ([CAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CAL&selected=CAL)) ), US Airways ([LCC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LCC&selected=LCC)) ), Southwest ([LUV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LUV&selected=LUV)) ), JetBlue ([JBLU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JBLU&selected=JBLU)) ), Alaska ([ALK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ALK&selected=ALK)) ), and Air Tran ([AAI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AAI&selected=AAI)) ). Except where noted, data represents mainline operations. Mainline Operations - 1st Half 2010 Compared to 1st Half 2009Contrary to popular belief, available seat mile capacity (ASMs) shows Alaska, Air Tran, and JetBlue as the only major airlines actually adding capacity compared to last year. Collectively the nine airlines covered in this analysis flew 5.8 billion less ASMs in the first half of 2010 than they flew in the same time period a year ago.United had the largest year-over-year capacity decline at 3.8%, followed closely by Southwest at a 3.3% decline. JetBlue had the largest increase at 5.8% (see following chart). Full-Year 2010 Capacity Projections Compared to 2009 Based on each airline's investor updates, Air Tran, Alaska, and JetBlue will once again lead the industry in 2010 capacity growth compared to 2009. Only Southwest and United are projected not to add any capacity for 2010 (see following chart). Regional Affiliates - YOY Change 2007 - 2010Another current misnomer is that the legacy mainline airlines have all increased their regional affiliate capacity while shrinking the mainline. Reality is, United is the only airline to have continuous increases in their regional affiliate capacity. Regional affiliate capacity for Delta, American, Continental, US Airways, and Alaska has been flat to declining over the last three years.As a ratio of total consolidated capacity for 2010, US Airways is projected to have the highest regional impact, closely followed by United and Delta. American has by far the least amount of regional capacity compared to other legacy competitors (see following chart). Ten-Year Look BackCapacity Change - 2nd Quarter 2010 Compared to 2nd Quarter 2000 The last major profitable growth period for the airline industry ended nearly ten years ago. Year 2000 was the last full year following approximately five years of record profits and growth for the airline industry.Even after accounting for the 45% capacity increase from Alaska, 73% increase from Southwest, 345% increase from Air Tran, and the 8.7 billion ASM increase from upstart JetBlue, these nine airlines plus their merged partners, cumulatively operated 6.4% less ASM's than they did in the same time period ten years ago (see following chart).Note for 2nd quarter 2000 capacity: Delta includes Northwest, American includes TWA, and US Airways includes America West. Load Factor Change - 2nd Quarter 2010 Compared to 2nd Quarter 2000One of the most significant industry changes over the last decade is the increase in every airlines' load factor. Specifically for the 2nd quarter, Southwest's 6.7% change in load factor was the industry's smallest increase compared to ten years ago. All other airlines increased load factors from 10.3% to 14.6% (see following chart). Note: Load factor is the percentage of passenger seats sold. Conclusion: It is the opinion of AirlineFinancials.com that passenger demand reconciled with little to no increase in capacity will continue to provide record load factors for at least the 3rd quarter of 2010. Further, this historically high traffic demand combined with lower fuel costs than previously projected will lead to significant profits for most of the airline industry.Data sources are SEC, BTS and Corporate filings. Disclosure:See also [Overlooked Value Investment Ideas](http://seekingalpha.com/article/216927-overlooked-value-investment-ideas?source=nasdaq) on seekingalpha.com Stock Price 4 days before: 20.4309 Stock Price 2 days before: 22.1642 Stock Price 1 day before: 22.8571 Stock Price at release: 22.5897 Risk-Free Rate at release: 0.0016	24.098
Symbol: KALU Security: Kaiser Aluminum Corporation Related Stocks/Topics: LPX\|Markets\|DDS\|AEE\|GSAT\|AA\|TRN\|PNM\|CENX\|VLO\|HLX\|RCL Title: The Very Best Value Plays for Patient Investors Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-12 02:37:00 Article: Long before the days of growth stocks, investors used to search for value in stocks that were trading for less than the net assets on their balance sheets. It was a tried-and-true formula for protecting your downside while searching for upside.The stock market's original gurus - Columbia Business School's Benjamin Graham and David Dodd - laid out a pretty simple premise in their 1934 book Security Analysis : Since we have no crystal ball that tells us where a business is headed, we can only place a value on things we already know. And we know that if a company chose to shut down tomorrow, sell off its assets, pay off its debts, and turn it all into cash, we can get a sense of what value exists. This is a company's tangible [book value](http://investinganswers.com/term/book-value-1080) , which excludes non-cash [balance sheet](http://investinganswers.com/term/balance-sheet-1083) items such as goodwill and amortization. And as those esteemed authors noted, if the stock market's value of a company (known as market capitalization) is less than that tangible book value, then you've got a potential bargain. In theory, a stock's value should never fall below tangible book value, because investors should bid shares back up right to the point where those two values are equal -- also known as "trading at book." But the market is never that efficient. Sometimes, a stock will fall below its intrinsic worth and trade well below tangible book value. In bull markets, you can always find a few dozen stocks trading below book. And in markets like the current one, you'll find hundreds.In some instances, investors are right to ignore stated book value. For example, if a company is losing money, cash will decline and so will book value. Alcoa (NYSE: [AA](http://www.streetauthority.com/stocks/AA) ) , which kicks off [earnings season](http://investinganswers.com/term/earnings-season-344) every quarter, is a fine example. Tangible book value has fallen from $12.76 per share at the end of 2007 to a recent $7.40. Shares fell down to just $5 at the height of the economic crisis, because investors knew that tangible book value would keep shrinking in the face of open-ended losses.In other instances, a company will carry assets at their cost, but those assets may no longer be worth as much. For example, oil refiners Valero (NYSE: [VLO](http://www.streetauthority.com/stocks/VLO) ) and Western Refining (NYSE: [WNR](http://www.streetauthority.com/stocks/WNR) ) spent billions of dollars to build massive facilities to produce gasoline and diesel fuel. But the industry is awash in too much capacity, and neither firm would get all of its money back if they wanted to sell some of those refineries.In some extreme instances, these stocks not only trade below book value, but below cash levels. Telecom equipment maker Sycamore Networks (Nasdaq: [SCMR](http://www.streetauthority.com/stocks/SCMR) ) is valued by investors at roughly $500 million. Yet Sycamore has roughly $635 million in short and long-term investments.Presumably, a rival could come along and pay a 25% premium to the company's current [market value](http://investinganswers.com/term/market-value-779) and get the whole business for free by sucking out that cash. This is a clear instance where Graham & Dodd would be scratching their heads. I ran a screen and found hundreds of stocks trading below book. I've greatly condensed that list for you by, among other things, placing a $500 million minimum on market value. I've also eliminated a number of financial services firms due to anomalies associated with the stated values of their assets and liabilities (though we retained some financial names on the list that do represent clearly-valued balance sheet items). Ingram Micro (NYSE: [IM](http://www.streetauthority.com/stocks/IM) )As the table shows, some stocks trade for sharp discounts to book value. And many of these stocks have likely found a floor, even if the rest of the market slumps further. For example, shares of Ingram Micro, the world's largest distributor of office equipment and electronics, have fallen to just 85% of tangible book value on fears that European sales will slump in coming quarters.But value investors should be ready to pounce. That's because tangible book value has risen from $10.59 in 2004 to a recent $18.32. Almost all of that gain is attributable to a rising cash hoard, which now approaches $1 billion. And that figure is likely to keep rising, as Ingram Micro should remain nicely profitable, even if European sales slump. Ingram Micro has never lost money (excluding a one-time charge in 2009) in its history. Dillard's (NYSE: [DDS](http://www.streetauthority.com/stocks/DDS) )There are two things you need to know about this long-standing department store chain. Management has a very spotty track record in terms of sales and profit growth, and the company is sitting on a gold mine in terms of real estate . The company's portfolio of stores is likely worth at least the $3 billion that it is being valued on its books. Yet the whole company is valued at less than half of that figure.Dillard's results are sharply improved this year, as earnings per share should more than double. But the country is still awash in too much retail space. So Dillard's would need to wait before trying to raise cash by selling any stores. But if it comes to that, investors should note that many of Dillard's stores are situated in prime locations. Meanwhile, the whole company is valued at just 69% of tangible book value. **Royal Caribbean (NYSE: [RCL](http://www.streetauthority.com/stocks/RCL) ) A cruise ship just isn't worth as much anymore. They cost oodles of money to build, and are currently being packed in with discount-seeking bargain hunters. Many ships are barely generating more profits than the loans taken out to pay for them. Part of the problem stems from a glut of cruise ships that were built while the economy was humming. It takes several years to build a ship, so new ones kept coming, even as the economy slumped.But over time, demand for cruises should catch up with supply, and the value of the cruise ships built by Royal Caribbean will start to rise back to the value of their construction costs. Shares would need to rise by 21% just to get back up to tangible book value. Action to Take -->** These value situations require patience. Indeed, Graham & Dodd preached " [Buy and Hold](http://investinganswers.com/term/buy-and-hold-948) ." In the meantime, these stocks are likely to fall by less than other stocks that trade far above book value. So you get (eventual) reward without too much risk. Of these companies profiled, Ingram Micro is the most likely to see tangible book value keep rising, while investors in Royal Caribbean and Dillard's will need to wait for the market for their assets (ships and real estate , respectively) to become better appreciated.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More... Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/a/very-best-value-plays-patient-investors-456345) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 36.8423 Stock Price 2 days before: 37.4968 Stock Price 1 day before: 37.2649 Stock Price at release: 37.264 Risk-Free Rate at release: 0.0016	39.2793
Symbol: HLX Security: Helix Energy Solutions Group, Inc. Related Stocks/Topics: LPX\|Markets\|DDS\|AEE\|GSAT\|AA\|TRN\|PNM\|CENX\|VLO\|RCL\|KALU Title: The Very Best Value Plays for Patient Investors Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-12 02:37:00 Article: Long before the days of growth stocks, investors used to search for value in stocks that were trading for less than the net assets on their balance sheets. It was a tried-and-true formula for protecting your downside while searching for upside.The stock market's original gurus - Columbia Business School's Benjamin Graham and David Dodd - laid out a pretty simple premise in their 1934 book Security Analysis : Since we have no crystal ball that tells us where a business is headed, we can only place a value on things we already know. And we know that if a company chose to shut down tomorrow, sell off its assets, pay off its debts, and turn it all into cash, we can get a sense of what value exists. This is a company's tangible [book value](http://investinganswers.com/term/book-value-1080) , which excludes non-cash [balance sheet](http://investinganswers.com/term/balance-sheet-1083) items such as goodwill and amortization. And as those esteemed authors noted, if the stock market's value of a company (known as market capitalization) is less than that tangible book value, then you've got a potential bargain. In theory, a stock's value should never fall below tangible book value, because investors should bid shares back up right to the point where those two values are equal -- also known as "trading at book." But the market is never that efficient. Sometimes, a stock will fall below its intrinsic worth and trade well below tangible book value. In bull markets, you can always find a few dozen stocks trading below book. And in markets like the current one, you'll find hundreds.In some instances, investors are right to ignore stated book value. For example, if a company is losing money, cash will decline and so will book value. Alcoa (NYSE: [AA](http://www.streetauthority.com/stocks/AA) ) , which kicks off [earnings season](http://investinganswers.com/term/earnings-season-344) every quarter, is a fine example. Tangible book value has fallen from $12.76 per share at the end of 2007 to a recent $7.40. Shares fell down to just $5 at the height of the economic crisis, because investors knew that tangible book value would keep shrinking in the face of open-ended losses.In other instances, a company will carry assets at their cost, but those assets may no longer be worth as much. For example, oil refiners Valero (NYSE: [VLO](http://www.streetauthority.com/stocks/VLO) ) and Western Refining (NYSE: [WNR](http://www.streetauthority.com/stocks/WNR) ) spent billions of dollars to build massive facilities to produce gasoline and diesel fuel. But the industry is awash in too much capacity, and neither firm would get all of its money back if they wanted to sell some of those refineries.In some extreme instances, these stocks not only trade below book value, but below cash levels. Telecom equipment maker Sycamore Networks (Nasdaq: [SCMR](http://www.streetauthority.com/stocks/SCMR) ) is valued by investors at roughly $500 million. Yet Sycamore has roughly $635 million in short and long-term investments.Presumably, a rival could come along and pay a 25% premium to the company's current [market value](http://investinganswers.com/term/market-value-779) and get the whole business for free by sucking out that cash. This is a clear instance where Graham & Dodd would be scratching their heads. I ran a screen and found hundreds of stocks trading below book. I've greatly condensed that list for you by, among other things, placing a $500 million minimum on market value. I've also eliminated a number of financial services firms due to anomalies associated with the stated values of their assets and liabilities (though we retained some financial names on the list that do represent clearly-valued balance sheet items). Ingram Micro (NYSE: [IM](http://www.streetauthority.com/stocks/IM) )As the table shows, some stocks trade for sharp discounts to book value. And many of these stocks have likely found a floor, even if the rest of the market slumps further. For example, shares of Ingram Micro, the world's largest distributor of office equipment and electronics, have fallen to just 85% of tangible book value on fears that European sales will slump in coming quarters.But value investors should be ready to pounce. That's because tangible book value has risen from $10.59 in 2004 to a recent $18.32. Almost all of that gain is attributable to a rising cash hoard, which now approaches $1 billion. And that figure is likely to keep rising, as Ingram Micro should remain nicely profitable, even if European sales slump. Ingram Micro has never lost money (excluding a one-time charge in 2009) in its history. Dillard's (NYSE: [DDS](http://www.streetauthority.com/stocks/DDS) )There are two things you need to know about this long-standing department store chain. Management has a very spotty track record in terms of sales and profit growth, and the company is sitting on a gold mine in terms of real estate . The company's portfolio of stores is likely worth at least the $3 billion that it is being valued on its books. Yet the whole company is valued at less than half of that figure.Dillard's results are sharply improved this year, as earnings per share should more than double. But the country is still awash in too much retail space. So Dillard's would need to wait before trying to raise cash by selling any stores. But if it comes to that, investors should note that many of Dillard's stores are situated in prime locations. Meanwhile, the whole company is valued at just 69% of tangible book value. **Royal Caribbean (NYSE: [RCL](http://www.streetauthority.com/stocks/RCL) ) A cruise ship just isn't worth as much anymore. They cost oodles of money to build, and are currently being packed in with discount-seeking bargain hunters. Many ships are barely generating more profits than the loans taken out to pay for them. Part of the problem stems from a glut of cruise ships that were built while the economy was humming. It takes several years to build a ship, so new ones kept coming, even as the economy slumped.But over time, demand for cruises should catch up with supply, and the value of the cruise ships built by Royal Caribbean will start to rise back to the value of their construction costs. Shares would need to rise by 21% just to get back up to tangible book value. Action to Take -->** These value situations require patience. Indeed, Graham & Dodd preached " [Buy and Hold](http://investinganswers.com/term/buy-and-hold-948) ." In the meantime, these stocks are likely to fall by less than other stocks that trade far above book value. So you get (eventual) reward without too much risk. Of these companies profiled, Ingram Micro is the most likely to see tangible book value keep rising, while investors in Royal Caribbean and Dillard's will need to wait for the market for their assets (ships and real estate , respectively) to become better appreciated.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More... Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/a/very-best-value-plays-patient-investors-456345) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 10.1067 Stock Price 2 days before: 10.4215 Stock Price 1 day before: 10.4886 Stock Price at release: 10.488 Risk-Free Rate at release: 0.0016	10.1607
Symbol: CENX Security: Century Aluminum Company Related Stocks/Topics: LPX\|Markets\|DDS\|AEE\|GSAT\|AA\|TRN\|PNM\|VLO\|HLX\|RCL\|KALU Title: The Very Best Value Plays for Patient Investors Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-12 02:37:00 Article: Long before the days of growth stocks, investors used to search for value in stocks that were trading for less than the net assets on their balance sheets. It was a tried-and-true formula for protecting your downside while searching for upside.The stock market's original gurus - Columbia Business School's Benjamin Graham and David Dodd - laid out a pretty simple premise in their 1934 book Security Analysis : Since we have no crystal ball that tells us where a business is headed, we can only place a value on things we already know. And we know that if a company chose to shut down tomorrow, sell off its assets, pay off its debts, and turn it all into cash, we can get a sense of what value exists. This is a company's tangible [book value](http://investinganswers.com/term/book-value-1080) , which excludes non-cash [balance sheet](http://investinganswers.com/term/balance-sheet-1083) items such as goodwill and amortization. And as those esteemed authors noted, if the stock market's value of a company (known as market capitalization) is less than that tangible book value, then you've got a potential bargain. In theory, a stock's value should never fall below tangible book value, because investors should bid shares back up right to the point where those two values are equal -- also known as "trading at book." But the market is never that efficient. Sometimes, a stock will fall below its intrinsic worth and trade well below tangible book value. In bull markets, you can always find a few dozen stocks trading below book. And in markets like the current one, you'll find hundreds.In some instances, investors are right to ignore stated book value. For example, if a company is losing money, cash will decline and so will book value. Alcoa (NYSE: [AA](http://www.streetauthority.com/stocks/AA) ) , which kicks off [earnings season](http://investinganswers.com/term/earnings-season-344) every quarter, is a fine example. Tangible book value has fallen from $12.76 per share at the end of 2007 to a recent $7.40. Shares fell down to just $5 at the height of the economic crisis, because investors knew that tangible book value would keep shrinking in the face of open-ended losses.In other instances, a company will carry assets at their cost, but those assets may no longer be worth as much. For example, oil refiners Valero (NYSE: [VLO](http://www.streetauthority.com/stocks/VLO) ) and Western Refining (NYSE: [WNR](http://www.streetauthority.com/stocks/WNR) ) spent billions of dollars to build massive facilities to produce gasoline and diesel fuel. But the industry is awash in too much capacity, and neither firm would get all of its money back if they wanted to sell some of those refineries.In some extreme instances, these stocks not only trade below book value, but below cash levels. Telecom equipment maker Sycamore Networks (Nasdaq: [SCMR](http://www.streetauthority.com/stocks/SCMR) ) is valued by investors at roughly $500 million. Yet Sycamore has roughly $635 million in short and long-term investments.Presumably, a rival could come along and pay a 25% premium to the company's current [market value](http://investinganswers.com/term/market-value-779) and get the whole business for free by sucking out that cash. This is a clear instance where Graham & Dodd would be scratching their heads. I ran a screen and found hundreds of stocks trading below book. I've greatly condensed that list for you by, among other things, placing a $500 million minimum on market value. I've also eliminated a number of financial services firms due to anomalies associated with the stated values of their assets and liabilities (though we retained some financial names on the list that do represent clearly-valued balance sheet items). Ingram Micro (NYSE: [IM](http://www.streetauthority.com/stocks/IM) )As the table shows, some stocks trade for sharp discounts to book value. And many of these stocks have likely found a floor, even if the rest of the market slumps further. For example, shares of Ingram Micro, the world's largest distributor of office equipment and electronics, have fallen to just 85% of tangible book value on fears that European sales will slump in coming quarters.But value investors should be ready to pounce. That's because tangible book value has risen from $10.59 in 2004 to a recent $18.32. Almost all of that gain is attributable to a rising cash hoard, which now approaches $1 billion. And that figure is likely to keep rising, as Ingram Micro should remain nicely profitable, even if European sales slump. Ingram Micro has never lost money (excluding a one-time charge in 2009) in its history. Dillard's (NYSE: [DDS](http://www.streetauthority.com/stocks/DDS) )There are two things you need to know about this long-standing department store chain. Management has a very spotty track record in terms of sales and profit growth, and the company is sitting on a gold mine in terms of real estate . The company's portfolio of stores is likely worth at least the $3 billion that it is being valued on its books. Yet the whole company is valued at less than half of that figure.Dillard's results are sharply improved this year, as earnings per share should more than double. But the country is still awash in too much retail space. So Dillard's would need to wait before trying to raise cash by selling any stores. But if it comes to that, investors should note that many of Dillard's stores are situated in prime locations. Meanwhile, the whole company is valued at just 69% of tangible book value. **Royal Caribbean (NYSE: [RCL](http://www.streetauthority.com/stocks/RCL) ) A cruise ship just isn't worth as much anymore. They cost oodles of money to build, and are currently being packed in with discount-seeking bargain hunters. Many ships are barely generating more profits than the loans taken out to pay for them. Part of the problem stems from a glut of cruise ships that were built while the economy was humming. It takes several years to build a ship, so new ones kept coming, even as the economy slumped.But over time, demand for cruises should catch up with supply, and the value of the cruise ships built by Royal Caribbean will start to rise back to the value of their construction costs. Shares would need to rise by 21% just to get back up to tangible book value. Action to Take -->** These value situations require patience. Indeed, Graham & Dodd preached " [Buy and Hold](http://investinganswers.com/term/buy-and-hold-948) ." In the meantime, these stocks are likely to fall by less than other stocks that trade far above book value. So you get (eventual) reward without too much risk. Of these companies profiled, Ingram Micro is the most likely to see tangible book value keep rising, while investors in Royal Caribbean and Dillard's will need to wait for the market for their assets (ships and real estate , respectively) to become better appreciated.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More... Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/a/very-best-value-plays-patient-investors-456345) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 9.21958 Stock Price 2 days before: 9.89758 Stock Price 1 day before: 9.93393 Stock Price at release: 9.93837 Risk-Free Rate at release: 0.0016	10.5769
Symbol: GTN Security: Gray Television, Inc. Related Stocks/Topics: TSEM\|Markets\|ACLS\|EMMS Title: 9 Penny Stock Picks Under $3 Type: News Publication: Louis Navellier Publication Author: Unknown Date: 2010-07-12 03:37:00 Article: Penny stock investing doesn't have to involve super risky stocks that can erase your retirement money. Penny stock recommendations also can encapsulate low-priced stocks that are more stable, trading at bargain prices and low valuations. These bargain investments trade for between $1 and $3 - very cheap compared to traditional equities. Though they are not trading for a few cents like some penny stock recommendations, these stocks are worth the extra share price because they have added stability.But to be sure, these low priced stocks are still very aggressive. That's because the biggest appeal of penny stocks to most investors is the ability for a stock to double quickly and deliver huger returns. Here are 9 pricey penny stock recommendations from this week for investors looking for low-priced picks with the ability to surge, but more stable companies that won't collapse overnight.Abraxas Petroleum Corp. ([AXAS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AXAS&selected=AXAS)) )Industry: Oil, gas and consumable fuels Market Cap: $207.4 millionThis San Antonio based independent energy company is primarily engaged in the production of oil and gas. Abraxas Petroleum Corp ([AXAS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AXAS&selected=AXAS)) ) has recently seen tremendous growth, and is up +57.3% since April. While other larger oil companies have fallen on hard times, Abraxas has continued to improve, and currently holds a stock price of $3.01. This penny stock has vastly outperformed the broader markets like Dow Jones Industrial average and the S&P, which are down -2.3% and -3.2% on the year, respectively.Axcelis Technologies Inc. ([ACLS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ACLS&selected=ACLS)) )Industry: Semiconductors and semiconductor equipment Market Cap: $164.5 millionPenny Stock Axcelis Technologies Inc. ([ACLS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ACLS&selected=ACLS)) ) designs, manufactures and services the semiconductor chips used by big-name technology companies like IBM, Intel, Texas Instruments and Samsung Electronics. Based in Boston's North Shore, this technology company has seen a +22% increase since January, and currently boasts a modest stock price of $1.71. With the introduction of a new energy implanter in late June, Axcelis has its clients excited for higher productivity and lower costs, which should only improve the stock's value.Emmis Communication Corp. ([EMMS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EMMS&selected=EMMS)) )Industry: Media Market Cap: $82.7 million Emmis Communication Corp. ([EMMS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EMMS&selected=EMMS)) ) is a media company primarily focused on radio broadcasting. This penny stock owns and operates numerous AM and FM radio stations in major U.S. cities including New York, Chicago and Los Angeles. Additionally, this media company owns numerous magazines including Texas Monthly , Los Angeles Monthly and Atlanta Monthly , among others. Emmis Communication's stock has made tremendous strides in the last several months, and is up 94% since April. While other media companies are struggling in the radio and print industries, Emmis is clearly thriving.Gray Television Inc. ([GTN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GTN&selected=GTN)) )Industry: Media Market Cap: $164.5 million Gray Television Inc ([GTN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GTN&selected=GTN)) ) owns 36 television stations in 30 separate television markets across the U.S. This Atlanta based media company works with several major affiliates including NBC, ABC, CBS and FOX, and has also seen large gains in 2010. Since January, this penny stock is up 66.7%, and has a current price of $2.50 per share. Additionally, Gray Television has outperformed earnings estimates three of the last four quarters, and looks to continue its success in the next quarter. ICO Global Communications Holdings Ltd. ([ICOG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ICOG&selected=ICOG)) )Industry: Wireless telecommunication services Market Cap: $405.6 millionWireless telecommunication service provider ICO Global Communications Holdings Ltd. ([ICOG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ICOG&selected=ICOG)) ) is a development stage mobile satellite service operator. Despite the fact that ICO has not been able to complete any additional satellites since December 2004, the penny stock has one satellite in orbit, and 10 satellites currently in the production stage. ICO has seen a 58.3% increase in stock price during 2010, and is currently selling at a price of $1.72.Joe's Jeans Inc. ([JOEZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JOEZ&selected=JOEZ)) )Industry: Textiles Apparel and luxury goods Market Cap: $119.4 million Joe's Jeans Inc. ([JOEZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JOEZ&selected=JOEZ)) ) is involved in the developing, marketing and design of its Joe's products, which include denim jeans, casual wear and accessories. Joe's sells its products through department stores, specialty retailers, distributors and its own retail stores worldwide. This penny stock has seen a rise of +68.2% since the start of 2010 and has outperformed earnings estimates two of the last four quarters. Joe's is a unique retailer in that it provides "luxury" denim products, at a price much lower than other luxury denim competitors.LTX-Credence Corp. (LTXC)Industry: Semiconductors and semiconductor equipment Market Cap: $395.0 million LTX-Credence Corp. ([LTXC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LTXC&selected=LTXC)) ) designs, produces and markets automated semiconductor test equipment. Its equipment is used for testing various technological products including cable modems, cell phones, PDAs, televisions, digital cameras and automotive electronics. The product of a 2008 merger between LTX Corp. and Credence Systems Corporation, this penny stock has fared well in 2010, up +69.1% since January. Having outperformed earnings estimates each of the last four quarters, LTX-Credence Corp is looking for another strong showing this earnings season.Network Engines Inc. (NENG)Industry: Communications equipment Market Cap: $110.8 millionCommunications equipment company Network Engines Inc. ([NENG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NENG&selected=NENG)) ), produces server-based platforms and appliance solutions for information technology networks. Based in Canton, Mass., this penny stock has seen a major rise in 2010, up $1.46, and increase of nearly +109%. Likewise, Network Engines has doubled earnings estimates for the past two quarters, and should remain a strong stock after its June announcement regarding the completion of a new frame solution which will support 4G apps.Tower Semiconductor Ltd. ([TSEM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TSEM&selected=TSEM)) )Industry: Semiconductors and semiconductor equipment Market Cap: $274.6 million Tower Semiconductor Ltd. ([TSEM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TSEM&selected=TSEM)) ) is involved with the manufacturing and design of semiconductors. In addition to producing semiconductors for its clients, this penny stock also provides design and technical services for its customers. Having outperformed earnings estimates by 367% in the last quarter, Tower Semiconductor is up +42.3% since January. Analysts are also estimating that Tower's revenue will continue to grow next quarter, as a $5 million revenue increase is projected. Vonage Holdings Corp. ([VG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VG&selected=VG)) )Industry: Diversified telecommunication services Market Cap: $457.2 millionVoice and messaging service company Vonage Holdings Corp. ([VG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VG&selected=VG)) ) uses broadband networks to provide its customers with their telephone service. With the 2009 offering of Vonage World Mobile, customers can place calls to 60 different countries for a monthly flat rate of $24.99. This penny stock also provides residential services to its customers, and offers discount rates for bundling mobile and residential services. Since January, Vonage's stock is up $1.04, representing an increase of +74.3%. The fact that its mobile calling application is available for the iPhone and Blackberry makes Vonage a very strong penny stock at the moment. GameChanger Stocks to Build Your Wealth - GameChangers are companies that rewrite the rules, revolutionizing the way we live and thrive. Companies like Apple and Dendreon. Their business breakthroughs delivered handsome profits for savvy investors who got in early. Discover the next generation of GameChangers you should be buying now. [Download your FREE copy of Hilary Kramer's new report here](http://www.investorplace.com/order/?sid=NA4110) . Stock Price 4 days before: 2.42996 Stock Price 2 days before: 2.47307 Stock Price 1 day before: 2.50163 Stock Price at release: 2.50264 Risk-Free Rate at release: 0.0016	2.66477
Symbol: UEC Security: Uranium Energy Corp. Related Stocks/Topics: Unknown Title: Shares of this U.S. Nuclear Energy Company get a Bounce from China Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-12 05:15:00 Article: In a bid to cut its dependence on coal, China has thrown its weight behind the nuclear option -- in a really big way. And China's not alone. In my [recent look at nuclear power's renaissance](http://streetauthority.com/a/profiting-nuclear-power-renaissance-456154) , the United States, India, and many other countries are ramping up their nuclear output.Throughout China, more than two dozen nuclear plants are being built at a furious pace. To help fuel all those plants, China recently signed a new contract with U.S.-based Cameco ([CCJ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CCJ&selected=CCJ)) ) , the world's largest publicly-traded producer of uranium. The contract, like everything in China, is on a grand scale. China anticipates buying 5,000 tons of uranium this year. That's twice as much as it consumes annually. Yet looked at another way, it's the amount that China will eventually consume every year once these plants come on line. So this is no one-time deal. China's state-owned China National Nuclear Corporation ([CNNC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CNNC&selected=CNNC)) ) signed a deal with Cameco in late June to buy 23 million pounds of uranium by 2020.And all that buying should start to have an impact on uranium prices. The radioactive material sold for roughly $55 a year ago, but has recently slumped to $41, according to UX Consulting. But analysts at RBC Capital Markets think we're heading back to those 2009 prices. And down the road, uranium may fetch more than $100 a pound, as it did in 2007.And investors are finally starting to re-focus on this commodity: shares of Cameco, which bottomed out on July 2, have since been slowly rising and were up +4.4% today at $23.85 per share.Yet shares remain more than -60% below 2007 levels. What would it take to get the stock back up toward those past highs? An increasing perception that demand for uranium will eventually overtake supply. Back in 2007, in the face of rising demand, too many new mines were opened, creating a glut. It will take a year or two to eliminate that glut, but it appears the necessary supply and demand trends have finally started to move in that direction. Action to Take --> Shares of Cameco appear to have +20% to +30% upside if uranium prices move back into the $50s. Shares could double if uranium prices start to cross the $100 threshold. (Prices briefly touched $136 in 2007). Investors may also want to check out smaller producers such as Uranium Energy Corp. ([UEC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UEC&selected=UEC)) ) , which owns several mines in the Western United States. [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/news/shares-us-nuclear-energy-company-get-bounce-china-456346) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 2.32237 Stock Price 2 days before: 2.42177 Stock Price 1 day before: 2.46668 Stock Price at release: 2.46759 Risk-Free Rate at release: 0.0016	2.53292
Symbol: ROIC Security: Retail Opportunity Investments Corp. Related Stocks/Topics: Markets\|MSFT\|GSAT\|AAPL\|CSCO\|HIG Title: 5 Stocks Secretly Watering Down Your Investment Type: News Publication: Nathan Slaughter Publication Author: Unknown Date: 2010-07-12 06:05:00 Article: Anybody who's ever divvied up a pizza understands that the more people at the table, the thinner the slices need to be to accommodate everyone. You don't have to love pizza like I do to understand this principle. It's the same with stocks. The more shares outstanding, the smaller the stake in the company each share represents.But most investors don't track the outstanding share count of the stocks they hold, and that can spell big trouble. Between 2000 and 2004, the share count for JDS Uniphase (Nasdaq: JDSU) doubled from 90 million to 180 million. That's the same as if the [stock split](http://investinganswers.com/term/stock-split-1244) 2-for-1. You know what happens to a stock's price after a split -- it gets cut in half. And well it should, your stake in the business gets cut down the middle.JDS Uniphase wasn't (and still isn't) profitable, but to illustrate, let's assume it maintained annual [net income](http://investinganswers.com/term/net-income-808) of $180 million. In that case, doubling the share base would cause earnings per share to slide from $2 to $1. If the market is only willing to pay a certain multiple per dollar of profits (say, 20 times earnings), then we can reasonably expect the share price to drop by half -- you can't escape the cold laws of math. The stock actually hemorrhaged more than 98% of its market cap during the years in question.Simply put, if each share represents a smaller ownership claim than it did before, then investors won't pay quite as much for it -- regardless of whether the business is worth $10 million or $10 billion. So putting new shares into circulation is a sure-fire way to erode the value of a stock.There are several ways this happens. Maybe a company is lavishing its top executives with stock options that are later exercised. Or it could be the result of convertible bonds, preferred shares or warrants being exchanged for common shares. Or perhaps it was just a secondary stock offering to raise cash; we've seen plenty of those in the past year.Unfortunately for investors, you won't see the dilution data publicized much. Companies are quick to tell you how much money they invested in repurchases, but rarely mention the other side of the picture. For example, between June 2002 and June 2005, Microsoft (Nasdaq: MSFT) cheered itself for spending $18 billion to buy back 674 million shares. But at the end of the three years, there were just as many shares outstanding as the beginning. Why? Because the company issued 666 million new shares during the same period. In other words, it was repurchasing shares with one hand and doling them out with the other.And then there are companies who treat their shares as a form of [currency](http://investinganswers.com/term/currency-120) for acquisitions. Networking giant Cisco Systems (Nasdaq: CSCO) went on a major shopping spree in the "Dot.com" era, buying up dozens of smaller rivals. Instead of paying the old-fashioned way, the company simply handed out 1.7 billion new shares between 1996 and 2002. For the most part, little regard was given to valuation -- easy to do when you're spending somebody else's money. In the end, CSCO shareholders paid the price when the value of those acquisitions was later written off one by one. Meanwhile, CSCO shares have been stuck in neutral since the tech crash.But the most toxic are cash-strapped companies with no choice but to give equity stakes to bondholders or sell new stock on the open market just to keep the lights on and the doors open.Whatever the cause, the issuance of new shares is dilutive to existing investors. With all this in mind, the companies in the table below have ballooning share counts -- and disappointed investors.By itself, an increase in the number of shares isn't always a reason for panic. Sometimes there are extenuating circumstances -- the entire financial sector has been forced to recapitalize in the wake of the subprime meltdown. And there are always growing businesses like Apple (Nasdaq: AAPL) that have issued plenty in recent years and still rewarded investors handsomely. The key is to gauge how effectively a company is deploying the proceeds -- returns on invested capital ([ROIC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ROIC&selected=ROIC)) ) can be a good start -- it measures how well a company puts its capital to use. Those in the table above rank poorly by that measure and have other red flags that warrant caution.YRC Worldwide, for example, just orchestrated a $537 million equity-for-debt swap to stay afloat. ETrade just completed a secondary stock offering and has over $1 billion in convertible bonds that will soon be exchanged for common shares. Action to Take -->* If you own any of the stocks listed above, you might consider selling as your position has been heavily watered down... and that means the value of your holdings has eroded. All things equal, I prefer larger slices of stable companies loaded with meaty assets and cash flows instead of seeing those shares become worth less and less.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- Nathan SlaughterNathan Slaughter, Chief Investment Strategist of Market Advisor and The ETF Authority, has developed a long and successful track record over the years by finding profitable investments no matter where they hide. Nathan's previous experience includes a long tenure at AXA/Equitable Advisors, one of the world's largest financial planning firms. He also honed his research skills at Morgan Keegan, where he managed millions in portfolio assets and performed consultative retirement planning services. Read more... Disclosure: Neither Nathan Slaughter nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/a/5-stocks-secretly-watering-down-your-investment-456347) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 9.70354 Stock Price 2 days before: 1.16167 Stock Price 1 day before: 9.23695 Stock Price at release: 9.64633 Risk-Free Rate at release: 0.0016	9.71585
Symbol: GEL Security: Genesis Energy, L.P. Related Stocks/Topics: Markets\|EPD\|PAA Title: John Edwards: Playing MLPs? Play Defense Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-07-13 04:47:00 Article: John Edwards: Playing MLPs? Play Defense Source: Brian Sylvester of [The Energy Report](http://www.theenergyreport.com/) 07/13/2010[http://www.theenergyreport.com/cs/user/print/na/6788](http://www.theenergyreport.com/cs/user/print/na/6788)[Image](http://img.ibtimes.com/www/data/articles/full/2010/07/13/14806.jpg) Master Limited Partnerships (MLPs) have delivered compound annual returns of 18.5% over the last 10 years. That's about 6% more than income trusts and 7% better than utilities-and most investment-grade MLPs maintain, and sometimes even grow, cash distributions in stressed markets. MLPs remain sensitive to global economic volatility, but some defensive-oriented MLP names still have strong growth characteristics in their distribution outlook. In this exclusive interview with The Energy Report, Morgan Keegan Analyst John Edwards provides a selection of "defensive-oriented" MLPs for you to choose from. The Energy Report: The Alerian MLP Total Return Index has had three straight weeks of growth, rallying almost 9% from its closing low of 752.35 on May 20. It remains about 4.4% below the all-time high set in April. What are the fundamentals underpinning this boom period for MLPs? John Edwards: I don't know if I would describe this as a boom. It's more a recovery from a dip. The sector did set a high on April 26; then there was a retrenchment. A variety of factors contributed to that, not the least of which is that the sector might have gotten a bit ahead of itself. We think that investors need to continue to be mindful of the sovereign debt risks that exist in Europe. We believe there's a pretty strong correlation to that being a contributing factor to market volatility, as it poses risks for deflation. Deflation in turn means it poses risks to the banking system over there. In turn, higher volatility is strongly correlated with yield spreads on MLPs. We've seen yield spreads widen out a bit, but obviously we're seeing volatility in the Chicago Board Options Exchange Volatility Index ([VIX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VIX&selected=VIX)) ). That's come down a bit, so we've seen MLPs come back a bit from where they were. They have pulled back 6% to 8%. Now we're starting to make headway back toward the highs. TER: John, you said in a June 15 report that "downside protection to the double-dip recession scenario" was among the attractions to investing in MLPs, but later in that same report you talk about, as you talked about earlier in this interview, sovereign debt issues posing risks to MLPs. So how can MLPs be double-dip recession proof and at the same time be very sensitive global economic events?JE: On its face it might appear to be a contradiction, but it's really not. The reason is that most of the MLPs have done a lot of work to get their balance sheets in shape. There's been a lot of capital markets activity. So far this year, the capital markets activity has been significantly ahead of actual expectations for capital spending. Given that, we view MLPs as providing attractive downside protection because there's not going to be as much demand for capital going forward. The other factor is that MLPs, even during times when markets were extremely stressed, particularly investment-grade MLPs, were able to access capital markets, while some of the smaller names were not able to access capital at any price. We think that MLPs have proven themselves during very stressful financial times. In particular, the large caps with large asset bases and large integrated footprints have demonstrated they can function very well when a defensive orientation is required and were able to deliver on their distributions and, in many instances, grow their distributions through the challenging times. But we are mindful that when markets are stressed, yield spreads widen out, pushing MLP valuations down and as such, for the longer term, we advocate the higher-quality names. TER: Well, that certainly was the case during the market crash of 2008. But how did MLPs fare in the 2000 crash and even further back?JE: We can look at 2000. You had a technology bubble at that time. There's a very heavy retail component to investors in MLPs, which is still over 40% of the capitalization today. We believe a lot of retail investors were moving out of MLPs into high-growth technology plays right when the technology bubble was peaking, so MLPs did not perform particularly well back then. Following the collapse of the NASDAQ, MLPs actually performed extremely well as there was significant rotation back into the sector. Then, if you go all the way back to the 1980s, there were very few MLPs in existence, so it does not make a lot of sense analytically to look at what happened then as a guide for trying to make assessments today. TER: What's the biggest competition for MLPs as far as investment dollars? Is it utilities? Is it bonds?JE: I think it's both. I think MLPs are viewed as an alternative to bonds and alternative to utilities and REITs. TER: So why should an investor choose an MLP over bonds or utilities or income trusts? [John Edwards](file:///C:/DOCUME%7E1/User/LOCALS%7E1/Temp/msohtmlclip1/01/clip_image002.jpg) Source: Factset, Alerian.com, MK estimatesNote 1: Returns for 5/31/00-5/28/10 except Oil Services and E&P since Dec 31, 2000JE: That's a great question. There are a number of reasons. If you look at MLPs compared to REITs or utilities, which are the most common things they get compared to, MLPs over the last 10 years have delivered compound returns of about 18.5% (that's assuming a market-cap-weighted total return calculation). It would be higher if you used an equal-weighted total return calculation. REITs have delivered 12.1% returns compounded; utilities, 11%. That's through the end of May 2010. The standard deviation for MLPs is lower at 4.9%; REITs, 7.1%; utilities, 5.6%. The correlation to the S&P 500 is also lower so it provides a better diversification benefit. It's 0.38 for MLPs against 0.625 for utilities. The beta is also lower. It's only 0.4 times; REITs are close to the market; utilities, 0.6 times. The reward to volatility, the sharp ratio, is significantly higher. The reward to systemic risk is also significantly higher. Then when we calculate the alpha it's significantly higher. We're calculating a 16% alpha for the MLPs sector; 12.3% for REITs; and 9.5% for utilities. If you make the volatility equal to the S&P 500, the outperformance is even more dramatic. The excess return over the S&P 500 is huge. For all those reasons, we think MLPs remain a pretty compelling asset class for investors to consider. TER: In a June research report you said, "We continue to advise focusing on investment- grade names with a large asset footprint, diversified cash flow, proven ability to raise capital and limited commodity exposure." With that in mind you recommend the following large caps: [Kinder Morgan Energy Partners, L.P. ( ](http://www.theenergyreport.com/cs/user/print/co/1571) [KMP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KMP&selected=KMP) ) , [Enterprise Products Partners, L.P. ( ](http://www.theenergyreport.com/cs/user/print/co/2450) [EPD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPD&selected=EPD) ) and [Plains All American Pipeline, L.P. ( ](http://www.theenergyreport.com/cs/user/print/co/2323) [PAA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PAA&selected=PAA) ) . Please tell us about those companies. JE: We believe those companies fit the majority of the characteristics you mentioned. Enterprise Products has the largest market cap of any MLP in the sector. Kinder Morgan has the second largest market cap. They have proven their ability to access capital markets during very challenging times as we saw in 2008 and 2009. They both fit the bill in terms of being very large, having diverse cash flow, etc. They both have some commodity exposure, so they don't completely meet that metric, but we think that's more than offset by all the positives and their proven track records.Plains All American? They've also demonstrated very good performance during times of stress. It's largely a fee-based business with low exposure to commodity prices. We basically consider these companies more or less core holdings in the MLP sector. Obviously, with Kinder Morgan Energy Partners you can also own it under an alternative security ticker, KMR. It is actually economically equivalent to KMP, but instead of getting a distribution, you get paid in more stock. TER: So it's [Kinder Morgan Management, LLC ( ](http://www.theenergyreport.com/cs/user/print/co/2518) [KMR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KMR&selected=KMR) ) ? JE: Yes. The stock is functionally equivalent to a unit in KMP. Each share of stock is used to purchase a unit of KMP. TER: On the Morgan Keegan website it says that your company's research efforts focus on "the undiscovered growing firms striving to be tomorrow's blue chip stocks." Are there some of those in the mid-cap MLPs space?JE: Since we know about them I can't really call them undiscovered, but there are some growth MLP opportunities. But given our macro view of the sovereign debt risk and sovereign credit risk that exist today, we suggest investors be defensively-oriented. Nonetheless, there are still some companies in the MLP world that have defensive characteristics, but still have what we believe are strong growth characteristics in their distribution outlook. One name that we like in that regard is [Spectra Energy Partners, L.P. ( ](http://www.theenergyreport.com/cs/user/print/co/2334) [SEP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SEP&selected=SEP) ) . It has very low, if any, commodity risk. It's mostly contracted pipeline and hub pipe assets.We also like [Inergy, L.P. ( ](http://www.theenergyreport.com/cs/user/print/co/1665) [NRGY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NRGY&selected=NRGY) ) . It has a company general partner in [Inergy Holdings, L.P. ( ](http://www.theenergyreport.com/cs/user/print/co/2516) [NRGP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NRGP&selected=NRGP) ) . Its assets are involved in the propane business-propane distribution, as well as a midstream. The cash flow derived from propane is roughly 60% of the total; the other 40% is from their midstream, gas storage and pipeline assets. It's very defensive oriented, very well positioned. It has a 6% distribution growth outlook for the next several years. Its company general partner has distribution growth prospects well into the double digits. Those are some that offer particularly good opportunities. TER: Any others?JE: There are a couple of others where we think the distribution growth is well above average. [Sunoco Logistics Partners, L.P. ( ](http://www.theenergyreport.com/cs/user/print/co/2465) [SXL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SXL&selected=SXL) ) is one. It's sort of a smaller version of Plains All American in that it's strong in terminals, storage and crude oil transport. It also has a little bit different mix. It also has products pipelines transport, for example. We also like [MarkWest Energy Partners, L.P. ( ](http://www.theenergyreport.com/cs/user/print/co/2319) [MWE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MWE&selected=MWE) ) in that is has a lot of assets in the Marcellus Shale play where they effectively have a first-mover advantage in terms of being an independent mid-stream infrastructure provider there. We think distribution growth, which has been flat recently as they continue to invest capital and strengthen their balance sheet, should start to pick up in 2011 and should average better distribution growth from that point forward because of their asset position. The caveat is that they have greater commodity exposure than some of the larger cap names.Another smaller cap play that we like is [Genesis Energy, L.P. ( ](http://www.theenergyreport.com/cs/user/print/co/1666) [GEL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GEL&selected=GEL) ) . They have a somewhat diversified asset footprint but very strong balance sheet, very strong distribution coverage and sustainable distribution growth outlook in the 8%-9% range. That gives you some tickers we think people should consider. TER: What are some of your favorite General Partner ([GP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GP&selected=GP)) ) MLPs?JE: I already mentioned one, NRGP, which is the general partner to Inergy L.P. NRGP has the incentive distribution rights to NRGY. That's why we're looking for very strong distributions, mid- to upper-teens for the next three years. We also cover [Energy Transfer Equity, L.P. ( ](http://www.theenergyreport.com/cs/user/print/co/2517) [ETE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ETE&selected=ETE) ) and [Enterprise GP Holdings, L.P. ( ](http://www.theenergyreport.com/cs/user/print/co/2317) [EPE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPE&selected=EPE) ) , which is the GP to Enterprise Products Partners. In general, the general partners tend to trade at lower yields and have faster distribution growth. Currently, Enterprise GP Holdings' yield is below 5%. But with that one you're looking at low double-digit distribution growth for probably for the next three to five years. TER: What accounts for that faster distribution growth?JE: What accounts for it is really the math associated with the way the incentive distribution rights work. The distribution rights are split between the Limited Partner ([LP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LP&selected=LP)) ) unit holder and General Partner ([GP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GP&selected=GP)) ) unit holder. The distribution rights typically start out with 2% going to the GP unit holder and 98% to the LP unit holder. Then there are certain benchmarks where it will trigger a change in the allocation, which is part of the partnership agreements. Just for talking purposes, let's say you had a $1.00 distribution going to the LP unit holder at the point where you had a 98% / 2% distribution split. So $0.98 of distribution payout would go the LP unit holder, $0.02 to the GP unit holder. Then let's say the distribution payout hits $1.20. Typically, the splits will change to 85% to the LP unit holder and 15% to the GP unit holder. At $1.20, if you have a 15% payout to the GP unit holder instead of $0.02, you're going to be closer to $0.20. You can see that's very fast growth.Then let's say the next threshold where you change the splits is a distribution payout of $1.50. There it changes to 75% / 25%. You'd have about $0.50 going to the GP unit holder. Again, a very fast growth rate. Then if you move up to the next threshold, like around $2.00, it might be a 50% / 50% split, with $1.00 going to the LP unit holder and $1.00 to the GP unit holder. With a GP you start from a lower base, but you end up growing the incentives much faster. They typically trade at a lower yield but you can often get a very strong return by being able to participate as an investor in the opportunity to access those stronger distribution growth rates. The flip side is that if the LP has to hold or slow down the growth in distributions, then you see a much greater rate of change reflected at the GP level. Hence the higher growth rates and lower yields are accompanied by greater risk. TER: They are also MLP funds. Could you provide a brief description of the differences between an open-end fund and a closed-end fund for our readers?JE: A closed-end fund can trade at a price that's different than the underlying net asset value. Typically, open-end funds will trade in line with their underlying net asset value. Open-end funds in effect are mark to market, if you will, with their underlying asset. A closed-end fund doesn't have to. It can trade at a discount or premium to what its underlying holdings are worth. That's the fundamental difference. TER: And do you have an opinion about investing in one or the other? JE: There are a lot of funds out there. I think there are a lot of good funds out there. It's just a way for investors to perhaps participate in the sector through a diversified approach as opposed to perhaps building a portfolio of MLPs, which is what we recommend. TER: Do you have any thoughts on the MLP sector that you would like to leave us with?JE: We still think that MLPs, particularly for the long term, offer a compelling opportunity for investors. With the bounce back off the lows, our outlook for the rest of 2010 is attractive. We're thinking somewhere in the 7% to 13% range in terms of total return. Given that the sector is up and has delivered returns in the 15%-18% (as of July 9) range so far this year, we think that's pretty good. We think it's something investors should continue to consider for their portfolios.John Edwards, CFA, joined Morgan Keegan in October 2006 as a vice president, covering energy infrastructure master limited partnerships. Prior to joining Morgan Keegan, Edwards was a managing partner of Vektor Investment Group, LLC, where he consulted on energy infrastructure projects and real estate development. Edwards also worked with Deutsche Bank Securities as a vice president and senior analyst covering natural gas pipelines and as an associate analyst covering automotive suppliers. Edwards began his career in the energy industry with Edison International where he worked in regulatory finance, M&A, project finance and business development. He received his BA from Occidental College in Los Angeles, California, and an MBA from California State University, Fullerton. He is also a member of the Financial Analysts Society of Houston, Tex.Learn more about MLPs. Read [Michael Blum: ABCs of MLPs](http://www.theenergyreport.com/pub/na/6697) and visit The Energy Report's [MLP Directory](http://www.theenergyreport.com/pub/htdocs/mlp.html) . Want to read more exclusive Energy Report interviews like this? [Sign up](http://www.theenergyreport.com/cs/user/print/htdocs/38) for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our [Expert Insights](http://www.theenergyreport.com/pub/htdocs/exclusive.html) page. DISCLOSURE:1) Brian Sylvester of The Energy Report conducted this interview. He personally and/or his family own the following companies mentioned in this interview: None.2) The following companies mentioned in the interview are sponsors of The Energy Report: None.3) John Edwards: Name of Pub/Broadcast: Streetwise ReportsDate of Interview: Jun 23, 2010Name of Interviewer: Brian SylvesterSubject Companies Mentioned: EPD, KMP, KMR, GEL, NRGY, NRGP, ETE, ETP, EPD, SEP, MWETopic of Discussion: MLP SectorMorgan Keegan or affiliates own 1% or more of any securities mentioned: NA Member of household financial interest: NASubject Company Client of MK during Last 12 mos: EPD, KMP, GEL, ETP. . .investment bankingMK Received compensation last 12 months: EPD, KMP, GEL, ETPI have rec'd comp from companies mentioned: NAI or member of my household officer, director, advisor to Company mentioned: NAOther conflicts of MK or me: MK may, from time to time, perform or solicit investment banking or other services for or from a company, person or entities mentioned in this overview.Streetwise - [The Energy Report](http://www.theenergyreport.com/) is Copyright © 2010 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.The Energy Report does not render general or specific [investment advice](https://www.nasdaq.com/education/stock-market-where-buyers-and-sellers-meet) and does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report. From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.Participating companies provide the logos used in The Energy Report. These logos are trademarks and are the property of the individual companies.Streetwise Reports LLCP.O. Box 1099Kenwood, CA 95452Tel.: (707) 282-5593Fax: (707) 282-5592Email: [[email protected]](mailto:[email protected]) Stock Price 4 days before: 19.952 Stock Price 2 days before: 20.0404 Stock Price 1 day before: 20.0395 Stock Price at release: 20.1275 Risk-Free Rate at release: 0.0016	19.7178
Symbol: CBRL Security: Cracker Barrel Old Country Store, Inc. Related Stocks/Topics: Markets Title: Bear takes a bite out of Cracker Barrel Type: News Publication: optionMONSTER Publication Author: Unknown Date: 2010-07-13 04:54:00 Article: Cracker Barrel Old Country Store has been drifting lower since hitting an all-time high three months ago, and now one bear is looking for a big drop. [CRBL Chart](http://www.optionmonster.com/cms/commentary/images/crblpre713.png) optionMONSTER's Depth Charge tracking system detected the purchase of 3,000 December 40 puts for $1.85 and the sale of a matching number of December 35 puts for $0.90. Volume was more than 11 times open interest in both strikes. This bearish put spread cost a net debit of $0.95 and will earn a maximum profit of 426 percent if CBRL closes at or below $35 on expiration.The restaurant and retail stock fell 0.35 percent to $47.80 yesterday and is down 9 percent since topping out at $53.43 on April 22. Profit and sales were better than expected on May 25 and management boosted full-year guidance, but the shares continued to drift lower.CBRL appears to be developing resistance at its 50-day moving average (black line on chart) and has been trading below its 100-day moving average (red line) for the last two weeks, technical factors that some traders may consider evidence of a bearish trend.Overall options volume in the name was 22 times greater than average in yesterday's session, with puts accounting for a bearish 98 percent of the activity.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved. Stock Price 4 days before: 47.5602 Stock Price 2 days before: 47.8969 Stock Price 1 day before: 47.8977 Stock Price at release: 48.325 Risk-Free Rate at release: 0.0016	46.7698
Symbol: REX Security: REX American Resources Corporation Related Stocks/Topics: Markets\|AZTA\|AMAT Title: Tuesday Winners: Vivus, Ivanhoe Mines and Brooks Automation Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-13 10:59:00 Article: Among the biggest winners in Tuesday's early trading are VIVUS (Nasdaq: VVUS) , Ivanhoe Mines ([IVN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IVN&selected=IVN)) ) and Brooks Automation (Nasdaq: BRKS) . VIVUS: No News is Good News Only a day after shares of VIVUS (Nasdaq: VVUS) [slumped on fears](http://www.streetauthority.com/node/456343) that its anti-obesity drugs would prove too risky for approval by the U.S. Food and Drug Administration ([FDA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FDA&selected=FDA)) ) the biotech company got a possible dose of good news. The FDA acknowledged that its combination drug is indeed effective. And that's pushing shares up nearly +13% this morning. The pair of drugs simultaneously suppress appetite while boosting impulse control. But -- and it's a big one -- the drug combo raised five separate safety concerns, which will surely be fodder for an outside panel to discuss when it meets on Thursday. Those concerns were anticipated, which is why investors are not reacting with alarm. Action to Take --> VIVUS may indeed win FDA approval, although it would likely come with restrictions. Meanwhile, drugs being tested by Arena Phramaceuticals (Nasdaq: ARNA) and Orexigen (Nasdaq: OREX) may not have such restrictions, so doctors may be hesitant to prescribe VIVUS' drug. Both of those stocks are up more than +5% this morning as well. VIVUS' drug is too risky to chase, despite today's seemingly positive development.------------------------------------Ivanhoe puts up a "For Sale" Sign For a number of years, mining firms have coveted the massive and potentially lucrative Mongolian real estate holdings of Ivanhoe Mines ([IVN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IVN&selected=IVN)) ) . The company seemingly secured the rights to the mineral rich fields out of nowhere, before most firms even knew that Mongolia had such rich deposits of gold, copper and uranium. Since then, the company has repeatedly rebuffed overtures from peers that have tried to buy the company. The United Kingdom's Rio Tinto ([RTP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RTP&selected=RTP)) ) eventually prevailed, and now owns roughly 30% of Ivanhoe, with rights to take that ownership up to 45%.Fearing that Rio Tinto would go past that 45% threshold and eventually boost its stake above 50% and take control, Ivanhoe installed a "poison pill" restriction that would have led to massive dilution if any investors tried such a move. "No fair," shouted Rio Tinto. Well, Ivanhoe has agreed to temporarily suspend the poison pill plan, paving the way for Rio Tinto to boost its stake. Ivanhoe's investors are breathing a sigh of relief, pushing shares up nearly +12%, as any further investment would bring in badly needed capital. Action to Take --> Shares are also rising on the perception that Ivanhoe will eventually be acquired at a nice premium to the current price. Adding further intrigue, China's Chinalco, which is Rio Tinto's largest shareholder, also covets that Mongolian mineral belt. Don't be surprised if a bidding war ensues while Rio Tinto's stake remains below 50%. When all is said and done, Ivanhoe could receive a bid north of $20 from either party. That's more than +20% above the current price. ------------------------------------Brooks Automation confirms the Semiconductor Bull Thesis In recent quarters, the semiconductor industry has been beset by a paradox. Quarterly results -- and forward guidance -- have been strong, yet shares have been in freefall. The majority of chip and chip-equipment stocks now trade for less than ten times projected profits. Clearly, many investors assume the industry's recent upturn won't last.But as Brooks Automation (Nasdaq: BRKS) told investors Monday evening, business remains quite robust. Brooks, which provides automation tools for the semiconductor fabrication process, notes that bookings are strong, which should enable the company to exceed sales and profit forecasts for the quarters ended in June and September. And that's pushing shares up nearly +12% in Tuesday trading. Action to Take --> Brooks won't exceed forecasts by a wide margin , but the fact that guidance isn't negative is reason enough for investors to bid shares up. If this industry can sustain growth into the next year or two, then shares are poised for a powerful rally. It's hard to single out Brooks Automation as especially appealing, as it is simply as cheap as many of its peers. For my money, industry titan Applied Materials (Nasdaq: AMAT) holds the greatest appeal, as it provides the broadest exposure to the group, while trading at around 11 times next year's profits.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More... Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/news/tuesday-winners-vivus-ivanhoe-mines-and-brooks-automation-456348) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 15.682 Stock Price 2 days before: 16.0197 Stock Price 1 day before: 16.032 Stock Price at release: 16.1865 Risk-Free Rate at release: 0.0016	14.0771
Symbol: CAL Security: Caleres, Inc. Related Stocks/Topics: IYT\|Markets\|LUV\|SEA Title: McCall’s Call: Transport ETFs Create Choices Type: News Publication: IndexUniverse Publication Author: Unknown Date: 2010-07-14 07:31:00 Article: Transportation stocks have long been a proxy for the overall economic landscape, and investors now have access to four equity ETFs that focus on different parts of the sector as they search for ways to profit as the economy recovers unevenly from its worst downturn since the 1930s.Having different ETF choices, from a broad-based fund to niche portfolios focused on airlines, maritime shipping or green transportation, is a luxury for investors because the outlook for transportation equities is different depending on where you're looking. For example, the Association of American Railroads reported rail traffic for the first week of July that was better than the two previous years. Carloads were up 18.8 percent compared with the same period in 2009. News is looking up for airlines too. Southwest ([LUV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LUV&selected=LUV)) ) showed a 5 percent traffic gain in June, while Continental's ([CAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CAL&selected=CAL)) ) rose 4.7 percent.That said, the shipping sector is sending negative signals. The Baltic Dry Index, a measure of freight around the globe, extended its losing streak to 31 straight sessions. Because iron ore demand is the largest source of dry bulk shipping, the slowdown suggests the global economy, in particular China, could be slowing.Again, investors these days are lucky to have finely tuned index products focused on transportation as they try to make sense of the contradictory indicators in the economy. Unlike many other sector ETFs, the four U.S. funds focused on transportation aren't duplicative. The Big-Picture ETF The granddaddy of them all is the iShares Dow Jones Transportation ETF (NYSEArca:IYT), which has been trading since late 2003. The ETF has over $500 million in assets and seeks to track the performance of the widely popular Dow Jones Transportation Index.Investors who would like to get a piece of the entire transportation sector should consider opting for IYT because it offers exposure to the railroads, airlines, shipping, trucking, freight delivery, etc. The expense ratio of 0.47 percent is acceptable and the 1.3 percent dividend yield is a small bonus. (Full disclosure:My firm owns IYT shares.) Up, Up And Away Even though IYT has outperformed the S&P 500 Index so far this year, airline stocks have done even better.The Claymore/NYSE Arca Airline ETF (NYSEArca:FAA) is up over 12 percent in 2010 as its 24 airline stocks attract money. The ETF has a slightly higher expense ratio of 0.65 percent, but that is acceptable due to the niche exposure it offers. About two-thirds of FAA's allocation is U.S. companies.With more consolidation in the sector likely and airlines beginning to turn things around with a stabilizing economy, the airline ETF could be well-positioned to continue flying high. Sailing With 'SEA'The Claymore/Delta Global Shipping ETF (NYSEArca:SEA) is an interesting ETF because the original shipping ETF offered by Claymore closed and a new product was relaunched in June.Within one month, the ETF has been able to attract $131 million in assets, a very impressive start for a niche ETF that is highly leveraged to the overall global economy. The original SEA had gathered $153 million by the time it closed. SEA's expense ratio is 0.65 percent, the same as FAA, and there are a total of 30 stocks in the allocation. One of the benefits of SEA is the true international exposure; the U.S. only accounts for a quarter of the portfolio, followed by Greece at 13 percent, then China and Japan, which make up 10 percent each.Another feature of SEA is the diversity within the shipping sector. The ETF includes companies that ship everything from dry bulk goods to petroleum products, and even includes a ship-financing firm among its holdings. If the goal is to get an above-average-risk ETF that is tied to the global economic recovery, SEA is a great choice. Renewable Transports ETF The last ETF in the sector is a small player that has just $5 million in assets, the PowerShares Global Progressive Transportation ETF (Nasdaq:PTRP). It tracks an index that invests in companies involved in the advancement of efficient transportation. Think of electric cars, energy conservation and efficiency, as well as lithium batteries.While I'm a big fan of this niche ETF, the lack of assets and low liquidity force my firm to stay clear at this time. The 38 stocks held by the ETF are spread around the globe, with the U.S. making up a third of the allocation. The expense ratio of 0.75 percent is acceptable to me and, if you believe in the green movement, it's a low price to pay for such international diversification. PTRP is another example of how hard it is for an ETF with a great idea, but not enough marketing behind it, to get its name out. Final Picks As you've probably figured out by now, I'm a fan of all four of the transportation ETFs, but only own one at this time, the broad-based IYT. Going forward, I'd love to see PTRP begin trading more, and this would open the door to a buy recommendation. What's more, SEA and FAA are great niche products that could find their way into one of my firm's portfolios as well. So stay tuned!Matthew D. McCall is editor of The ETF Bulletin andpresident of Penn Financial Group LLC, a Ridgewood, N.J.-based wealth management firm specializing in investment strategies using ETFs.[Don't forget to check IndexUniverse.com's ETF Data section.](http://www.indexuniverse.com/data.html?utm_source=nasdaq.com&utm_medium=rss&utm_campaign=data)[Copyright ® 2010 Index Publications LLC](http://www.indexuniverse.com/) . All Rights Reserved. Stock Price 4 days before: 22.8571 Stock Price 2 days before: 22.5763 Stock Price 1 day before: 23.2413 Stock Price at release: 23.8548 Risk-Free Rate at release: 0.0016	22.6464
Symbol: ADTN Security: ADTRAN Holdings, Inc. Related Stocks/Topics: Unknown Title: Wednesday Winners: Intel, Expeditors Intl and Adtran Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-14 10:44:00 Article: Among the biggest winners in Wednesday's early trading are Intel (Nasdaq: INTC) , Expeditors Int'l (Nasdaq: EXPD) and Adtran (Nasdaq: ADTN) . Intel sets a Positive Tone Luckily for tech investors, Intel (Nasdaq: INTC) has weighed in with quarterly results at the very beginning of [earnings season](http://investinganswers.com/term/earnings-season-344) . Rather than wait it out for weeks to see if the sky is falling (as shares of high tech companies seem to indicate these days), Intel has quickly established a bullish tone for the whole tech sector. On Tuesday evening, the chip giant announced second quarter sales of $10.8 billion -- roughly +5% ahead of forecasts -- and earnings per share of $0.51, which was roughly +15% ahead of consensus estimates. That's good for a +4% gain in Wednesday trading. The results are all the more impressive when you consider that Europe is likely mired in a slump. That means that the North American and Asian markets were robust. Intel also spoke positively about anticipated results for the third quarter, noting that both sales and gross margins should come in above consensus estimates. Some of this strength is attributable to Intel's market-leading position. But it's also due to a robust level of spending on computers, which is why firms like Dell (Nasdaq: DELL) and Seagate ([STX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=STX&selected=STX)) ) are also up nicely in Wednesday trading. Action to Take --> With Wednesday's gain, shares of Intel still seem reasonably priced at around 10 ten times likely fiscal 2011 profits. When investors come to believe that this rebound is sustainable, that forward [price-to-earnings ratio (P/E)](http://investinganswers.com/term/price-earnings-ratio-pe-459) should move up into the 12 to 14 range.------------------------------------Expeditors doesn't see a Slowdown Just as Intel has signaled a bullish tone for tech spending, Expeditors International (Nasdaq: EXPD) suggests that the broader economy is also faring well. The company provides a wide range of services to air and ocean-based freight shippers, and notes that all manners of shipping activity were strong in the second quarter. "Our customers seem to be doing well as compared with 2009," said chairman and CEO Peter Rose in a company press release.It's clear that the global economy faces stiff challenges, but reports like these also underscore the notion an imminent re-collapse in the global economy is just not in the cards. Much of the trading action in stock markets throughout May and June implied that investors should remain fearful, but if we get more commentary from other firms like this, and if earnings season doesn't hold too many bombshells, we may be in for a robust summer rally. Action to Take --> Expeditors pre-announced robust profits for its second quarter on Tuesday evening, though it declined to provide specific revenue details. However, investors shouldn't get carried away with this stock. The +7% gain today leaves shares trading at more than 15 times likely upwardly revised projected 2011 profits. Considering that global economic headwinds remain in place, a higher multiple isn't warranted right now. ------------------------------------Adtran validates Tyco Just a day after its rival, ADC Telecom (Nasdaq: ADCT) agreed to be bought by Tyco ([TYC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TYC&selected=TYC)) ) , Adtran (Nasdaq: ADTN) announced solid quarterly results. Sales rose +24% from a year ago, while profits surged +47%. Adtran provides high-speed network connection equipment to telecom operators and large enterprises. Management notes that demand is strong in every niche in which the company operates. Action to Take --> We'll have a deeper look at this whole group and identify what Tyco's acquisition means, in a separate article later today.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article. [StreetAuthority](http://www.streetauthority.com/news/wednesday-winners-intel-expeditors-intl-and-adtran-456353) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 28.5471 Stock Price 2 days before: 28.1763 Stock Price 1 day before: 28.606 Stock Price at release: 30.63 Risk-Free Rate at release: 0.0016	29.5753
Symbol: CLNE Security: Clean Energy Fuels Corp. Related Stocks/Topics: Personal Finance Title: Part of 'Pickens Plan' looks to ride in on Senate bill Type: News Publication: NASDAQ.com News Publication Author: Unknown Date: 2010-07-15 01:17:00 Article: A plan suggested by Texas oil tycoon T. Boone Pickens to promote natural gas investment will probably get added to a Senate energy bill, the Wall Street Journal [reports](http://online.wsj.com/article/BT-CO-20100714-713101.html) .A major beneficiary will be Clean Energy Fuels Corporation ([CLNE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CLNE&selected=CLNE)) ), which jumped over 9 percent to trade at $16.69 per share on Thursday. Pickens owns a 46 percent stake in Clean Energy Fuels, which specializes in providing natural gas for alternative-fuel vehicles.The Senate will begin debating the energy bill in the last week of July, and Democrats hope to vote on and pass it before the August recess.Pickens calls for the conversion of half of the country's trucking fleet from diesel to natural gas, saying it would save $100 billion that would otherwise go to OPEC nations.In an op-ed published Thursday on the [Huffington Post](http://www.huffingtonpost.com/t-boone-pickens/pickens-updates-white-boa_b_647365.html) , Pickens wrote that his plans "would also kick-start an entirely new natural gas vehicle industry in the United States, which would equal jobs at all levels of production. I've said from the beginning that we need a bipartisan, American plan to use our domestic resources - natural gas, solar wind, ethanol, and hydro." Stock Price 4 days before: 15.4639 Stock Price 2 days before: 15.4418 Stock Price 1 day before: 15.3691 Stock Price at release: 16.0682 Risk-Free Rate at release: 0.0016	15.3193
Symbol: RC Security: Ready Capital Corporation Related Stocks/Topics: Markets Title: Appleton Exploration Inc. Remains 1c Higher, But Off Day High on Mali Update Type: News Publication: MTNewswires Publication Author: Unknown Date: 2010-07-15 02:42:00 Article: Appleton Exploration Inc. (AEX.V) remains up 1 cent to 10.5 cents, but off a day high of 12 cents struck late morning, after announcing results from a further thirteen reverse circulation ([RC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RC&selected=RC)) ) holes focused on the southern segment of the Dialafara Prospect on the Manalo Gold Project, Mali, West Africa.It said these new results, in conjunction with previous drilling to date, now define a minimum 450 metre strikelength trend of encouraging gold mineralization. The latest results include: 61 metres of 1.45 grams per tonne (g/t) Au, 27 metres of 1.50 g/t Au and 3 metres of 26.88 g/t Au. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited. Stock Price 4 days before: 6.75 Stock Price 2 days before: 6.58504 Stock Price 1 day before: 6.4949 Stock Price at release: 6.38974 Risk-Free Rate at release: 0.0016	7.2085
Symbol: CAL Security: Caleres, Inc. Related Stocks/Topics: Markets Title: Option trade alert on Continental (NYSE:CAL) bull put spread Type: News Publication: Karla Yeh Publication Author: Unknown Date: 2010-07-15 04:45:00 Article: After the airline index set new 52-week highs earlier this week, shares of Continental Airlines Inc. (NYSE: CAL ) are currently in the red after opening higher out of the gate. Along with this slide came a spike in put volume during morning trading thanks to an investor who appears to have taken a moderately bullish stance on the airline company.At 10:12 a.m. EST, 20,000 July 17-20 put spreads changed hands for a net premium of 15 cents per spread . Current open interest of the July 17 puts is 68 contracts while the July 20 puts are home to current open interest of 4,000 contracts, indicating this investor most likely traded the spreads to open. The July 17 puts changed hands for 13 cents per contract, which was closer to the ask price at the time of the trades, while the July 20 puts crossed for 28 cents per contract, which was closer to the bid price when the volume hit the tape. This options action indicates the investor collected 15 cents on a moderately bullish bet that CAL shares will still be trading higher than $20 at July options expiration in 28 days. This options action suggests investors do not expect CAL shares to drop more than 16% during the near term. If CAL shares are trading lower than $19.85 (the breakeven price), the investor loses some of the premium collected, and incurs a maximum loss of $2.85 (the difference between the strikes minus the premium collected) if the stock is trading lower than $17 at July options expiration. CAL did not announce any news today and the stock has dropped six cents to $24.72 during morning trading. Analysts expect the company's earnings report around July 22.For a visual of the risk/reward dynamics of this bull put spread, open a free [Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) DOLE shares are relatively unchanged at $10.60 so far on the day. The stock reached a 52-week high of roughly $12.50 in March, and options action on the tape suggests at least one investor expects the stock to head closer to the recent highs prior to January 2011 options expiration. virtual trading account today and gain access to essential trading tools like the probability and profit/loss calculators. Stock Price 4 days before: 22.5897 Stock Price 2 days before: 23.2413 Stock Price 1 day before: 23.8548 Stock Price at release: 24.1943 Risk-Free Rate at release: 0.0016	22.8128
Symbol: RC Security: Ready Capital Corporation Related Stocks/Topics: Markets Title: Appleton Exploration Inc. Edges Up on Mali Update Type: News Publication: MTNewswires Publication Author: Unknown Date: 2010-07-15 11:01:00 Article: Appleton Exploration Inc. (AEX.V) has edged up 1 cent to 10.5 cents after announcing results from a further thirteen reverse circulation ([RC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RC&selected=RC)) ) holes focused on the southern segment of the Dialafara Prospect on the Manalo Gold Project, Mali, West Africa.It said these new results, in conjunction with previous drilling to date, now define a minimum 450 metre strikelength trend of encouraging gold mineralization. The latest results include: 61 metres of 1.45 grams per tonne (g/t) Au, 27 metres of 1.50 g/t Au and 3 metres of 26.88 g/t Au. Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited. Stock Price 4 days before: 6.75 Stock Price 2 days before: 6.58504 Stock Price 1 day before: 6.43844 Stock Price at release: 6.38974 Risk-Free Rate at release: 0.0016	7.2085
Symbol: CLNE Security: Clean Energy Fuels Corp. Related Stocks/Topics: Markets Title: Thursday Winners: Arena Pharma, Clean Energy and West Marine Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-15 11:01:00 Article: Among the biggest winners in Thursday's early trading are Arena Pharma (Nasdaq: ARNA) , Clean Energy (Nasdaq: CLNE) and West Marine(Nasdaq: WMAR) . Arena's Bull Run Shares of Arena Pharmaceuticals (Nasdaq: ARNA) continue to ascend, rising another +12% on Thursday, good for a +50% gain during the past three weeks. [We first told you](http://www.streetauthority.com/node/456307) of Arena's promising anti-obesity drug in early July. Today's gains are due to a rising perception that Arena's drug is more promising than those of rivals Oreixigen (Nasdaq: OREX) and VIVUS (Nasdaq: VVUS) . And investors are starting to realize that if Arena can capture a big part of this market, then it stands to reap massive sums of money from marketing partner Eisai. Action to Take --> Even with the recent run, shares still trade for less than half of the potential total value of the Eisai relationship -- and that's just for the United States. If and when Arena inks a foreign partner, shares could spike even higher.------------------------------------Clean Energy's Legislative Hopes Shares of Clean Energy (Nasdaq: CLNE) are rising +12% on hopes that imminent Congressional legislation will provide incentives to adopt natural gas as a transportation fuel source. Clean Energy operates a network of natural gas fueling stations, primarily to fleet operators.Last week, [we opined](http://www.streetauthority.com/node/456320) that Clean Energy would get a lift from any government-related initiatives to jump-start the industry.Senate Democrats reportedly plan to unveil the energy bill next week. Senator Reid (D-NV) will attempt to begin debate on the bill the week of July 26. But they've got a short window. The Senate is scheduled to begin a month-long summer recess on Aug. 6. Action to Take --> Shares of Clean Energy have spiked and slumped as the prospects for Federal legislation have waxed and waned. In the absence of any support, Clean Energy may struggle to meet aggressive 2011 sales and profit forecasts. As of now, analysts anticipate that the industry will get government support, and that the company will be in the black for the first time in its history in 2011. If legislation is passed, shares would quickly move into the $20s.------------------------------------West Marine's Rebound Any boat owner can tell you that this leisure industry has been dead for several years. Boat sellers have found few buyers, and many boaters have opted to simply keep their boats out of the water to save money. But the industry is springing back to life recently as boat sales rise and marina slips fill up once again. That notion was underscored by surprisingly strong quarterly results from West Marine (Nasdaq: WMAR) , which operates a nationwide chain of stores and an eponymous catalog catering to boat owners.West Marine announced an +8.4% jump in same-store sales in its fiscal first quarter ended in April (though that's less than timely as we are already near the end of the next quarter). After three straight years of falling sales, analysts generally stopped following this retailer, so it's unclear where these results were relative to expectations. But fund managers and other investors have certainly anticipated the rebound, pushing shares up nearly threefold during the past 18 months. If West Marine can maintain this sales momentum, it should be able to post solid profits thanks to heavy cost cuts. In 2009, West Marine posted its first profit since 2005, even though sales fell another -7%. Action to Take --> By my rough math, West Marine could earn $1 a share this year as the company is now in its seasonally most profitable quarters. Shares, despite today's +6% gain, could have further upside -- if the U.S. economy can start to build a head of steam. This is a very economically sensitive sector, and West Marine appears positioned to thrive during the good times.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/news/thursday-winners-arena-pharma-clean-energy-and-west-marine-456356) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 15.4639 Stock Price 2 days before: 15.219 Stock Price 1 day before: 15.4123 Stock Price at release: 16.7855 Risk-Free Rate at release: 0.0016	15.3193
Symbol: PBI Security: Pitney Bowes Inc. Related Stocks/Topics: Markets Title: Protection extended on Pitney Bowes Type: News Publication: optionMONSTER Publication Author: Unknown Date: 2010-07-16 01:40:00 Article: Pitney Bowes is still bottoming after the 2008 market crash, and one investor is keeping an insurance policy on the beaten-down postage company.The trader sold an existing position in 2,576 July 25 puts for $1.50 and $1.55, then bought an equal number of October 25 puts for $2.50. The put roll cost them a net debit of $0.975 and will give them an extra three months of downside exposure. [PBI Chart](http://www.optionmonster.com/cms/commentary/images/pbipre716.png) PBI fell 0.34 percent to $23.54 yesterday and is still trapped in the same range where it traded in October 2008--one month after the collapse of Lehman Brothers, Fannie Mae, Freddie Mac, and American International Group brought the stock market to its knees.While many companies have doubled and tripled from those levels, PBI has ground sideways amid a heavy debt load and lagging demand for its paper-based mailing systems. It has, however, been making higher lows since March 2009.Yesterday's option trade was probably implemented by a shareholder who thinks that PBI is bottoming but wants to keep protection in place using puts.The decision to use in-the-money contracts is also noteworthy because they will track declines in the share price more closely. The strategy is consistent with an expectation that the stock is unlikely to fall sharply.The next scheduled event that could serve as a potential catalyst is the company's second-quarter earnings report after the bell on Aug. 3. Overall options volume in the stock was 13 times greater than average yesterday, with puts accounting for 95 percent of the activity.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved. Stock Price 4 days before: 23.0365 Stock Price 2 days before: 23.3921 Stock Price 1 day before: 23.6046 Stock Price at release: 23.4931 Risk-Free Rate at release: 0.0014	19.5639
Symbol: ADTN Security: ADTRAN Holdings, Inc. Related Stocks/Topics: Markets\|ASML\|INTC\|AMD\|GOOG\|IYR\|DLR\|INFY Title: Chip names come through for tech bulls Type: News Publication: optionMONSTER Publication Author: Unknown Date: 2010-07-16 02:40:00 Article: Option traders were bullish on semiconductors as earnings season began, and they haven't been disappointed.All four key chip-related names that have released earnings beat estimates and sounded a bullish tone on the market for their products. Each one rallied on the reports. Advanced Micro Devices, which makes computer processors, kept the winning streak alive yesterday afternoon when it surpassed earnings forecasts by nearly 100 percent on a revenue beat of $100 million. Like rival Intel, which crushed its numbers two days earlier, AMD also had enough confidence in future demand to provide aggressive guidance.Earlier in the week ASML and Novellus, whose equipment is used to make semiconductors, reported similarly strong numbers.On one hand, the companies are benefiting from the same trend of falling costs that have occurred across most businesses. But the important driver that distinguishes chipmakers from other manufacturers is that we appear to be in the midst of secular boom for their products that could make the 1990s tech revolution look like child's play. [AMD Chart](http://www.optionmonster.com/cms/commentary/images/amdpre716.png) One reason is the huge surge in wireless devices, which were still in their infancy 10-15 years ago. The second reason is globalization. In May 1999, for instance, global chip sales totaled $11.3 billion, of which $6.1 billion occurred in the Americas and Europe. Fast-forward 11 years to May 2010, and global sales had more than doubled to a record $24.7 billion, but the Americas and Europe had only inched higher to a mere $7.4 billion, according to the Semiconductor Industry Association.Corporate spending is another driver because companies are buying both desktop computers and migrating their applications from in-house servers to cloud-computing services run by companies such as NetApp and EMC, and powered with software from companies such as VMware. INTC's data-center segment, for instance, recorded a staggering 42 percent revenue gain versus last year. Its PC-related business grew a more modest 31 percent.Digital Realty Trust illustrates the strength of the trend. While it's structured as a real-estate investment trust, its property consists of buildings to house the same cyber clouds. This has kept DLR immune from the other problems in the real-estate sector, and caused its shares to rally 13 percent in the last three months while the iShares Dow Jones U.S. Real Estate Index exchange-traded fund ([IYR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IYR&selected=IYR)) ) is down 4 percent in the same period. DLR is also trading near its all-time highs, while the average REIT is down by almost half since early 2007.The market does a great job of digesting all of this information, and it clearly sensed the positive developments in semiconductors before the numbers were announced. Over the 20-session period ended last Friday, call volume in the sector was 78 percent greater than put volume. And, the calls were heavily bought rather than sold, which indicates a strongly bullish sentiment.Adtran showed that the bullish trend extends to the networking sector when its second-quarter results crushed forecasts. The shares gapped higher on Wednesday and proceeded to trade at their highest price since late 2005.However, the strength in technology didn't extend to Google, which is showing both weakening top-line performance and a worrying growth in its cost structure. Revenue beat forecasts by less than 2 percent but its earnings badly missed because its headcount surged 6 percent sequentially. The news was similar to the headlines from Infosys, where higher employee costs took a bite out of profitability and caused the shares to gap lower on Wednesday. Given that the whole point of outsourcing work to India is the access to cheap labor, this trend could also prove a new long-term threat to the company's business model--especially with U.S. wages stagnant.Earnings reports will shift to big financials today as investors digest numbers from Bank of America, Citigroup, and General Electric, which has a large financial component. Options activity has been the most bullish in BAC and C. Both have both seen heavy call buying over the last month and have rallied so far in July.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved. Stock Price 4 days before: 28.5473 Stock Price 2 days before: 31.2796 Stock Price 1 day before: 31.2785 Stock Price at release: 31.3019 Risk-Free Rate at release: 0.0014	29.618
Symbol: HLX Security: Helix Energy Solutions Group, Inc. Related Stocks/Topics: LPX\|Personal Finance\|DDS\|AEE\|AA\|TRN\|PNM\|VLO\|RCL Title: The Very Best Value Plays for Patient Investors Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-16 04:46:00 Article: Long before the days of growth stocks, investors used to search for value in stocks that were trading for less than the net assets on their balance sheets. It was a tried-and-true formula for protecting your downside while searching for upside.The stock market's original gurus - Columbia Business School's Benjamin Graham and David Dodd - laid out a pretty simple premise in their 1934 book Security Analysis : Since we have no crystal ball that tells us where a business is headed, we can only place a value on things we already know. And we know that if a company chose to shut down tomorrow, sell off its assets, pay off its debts, and turn it all into cash, we can get a sense of what value exists. This is a company's tangible [book value](http://www.investinganswers.com/term/book-value-1080) , which excludes non-cash [balance sheet](http://www.investinganswers.com/term/balance-sheet-1083) items such as goodwill and amortization. And as those esteemed authors noted, if the stock market's value of a company (known as market capitalization) is less than that tangible book value, then you've got a potential bargain. In theory, a stock's value should never fall below tangible book value, because investors should bid shares back up right to the point where those two values are equal -- also known as "trading at book." But the market is never that efficient. Sometimes, a stock will fall below its intrinsic worth and trade well below tangible book value. In bull markets, you can always find a few dozen stocks trading below book. And in markets like the current one, you'll find hundreds.In some instances, investors are right to ignore stated book value. For example, if a company is losing money, cash will decline and so will book value. Alcoa ([AA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AA&selected=AA)) ) , which kicks off [earnings season](http://www.investinganswers.com/term/earnings-season-344) every quarter, is a fine example. Tangible book value has fallen from $12.76 per share at the end of 2007 to a recent $7.40. Shares fell down to just $5 at the height of the economic crisis, because investors knew that tangible book value would keep shrinking in the face of open-ended losses.In other instances, a company will carry assets at their cost, but those assets may no longer be worth as much. For example, oil refiners Valero ([VLO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VLO&selected=VLO)) ) and Western Refining ([WNR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WNR&selected=WNR)) ) spent billions of dollars to build massive facilities to produce gasoline and diesel fuel. But the industry is awash in too much capacity, and neither firm would get all of its money back if they wanted to sell some of those refineries.In some extreme instances, these stocks not only trade below book value, but below cash levels. Telecom equipment maker Sycamore Networks (Nasdaq: SCMR) is valued by investors at roughly $500 million. Yet Sycamore has roughly $635 million in short and long-term investments.Presumably, a rival could come along and pay a 25% premium to the company's current [market value](http://www.investinganswers.com/term/market-value-779) and get the whole business for free by sucking out that cash. This is a clear instance where Graham & Dodd would be scratching their heads. I ran a screen and found hundreds of stocks trading below book. I've greatly condensed that list for you by, among other things, placing a $500 million minimum on market value. I've also eliminated a number of financial services firms due to anomalies associated with the stated values of their assets and liabilities (though we retained some financial names on the list that do represent clearly-valued balance sheet items). Ingram Micro ([IM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IM&selected=IM)) )As the table shows, some stocks trade for sharp discounts to book value. And many of these stocks have likely found a floor, even if the rest of the market slumps further. For example, shares of Ingram Micro, the world's largest distributor of office equipment and electronics, have fallen to just 85% of tangible book value on fears that European sales will slump in coming quarters.But value investors should be ready to pounce. That's because tangible book value has risen from $10.59 in 2004 to a recent $18.32. Almost all of that gain is attributable to a rising cash hoard, which now approaches $1 billion. And that figure is likely to keep rising, as Ingram Micro should remain nicely profitable, even if European sales slump. Ingram Micro has never lost money (excluding a one-time charge in 2009) in its history. Dillard's ([DDS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DDS&selected=DDS)) )There are two things you need to know about this long-standing department store chain. Management has a very spotty track record in terms of sales and profit growth, and the company is sitting on a gold mine in terms of real estate . The company's portfolio of stores is likely worth at least the $3 billion that it is being valued on its books. Yet the whole company is valued at less than half of that figure.Dillard's results are sharply improved this year, as earnings per share should more than double. But the country is still awash in too much retail space. So Dillard's would need to wait before trying to raise cash by selling any stores. But if it comes to that, investors should note that many of Dillard's stores are situated in prime locations. Meanwhile, the whole company is valued at just 69% of tangible book value. ****Royal Caribbean ([RCL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RCL&selected=RCL)) ) A cruise ship just isn't worth as much anymore. They cost oodles of money to build, and are currently being packed in with discount-seeking bargain hunters. Many ships are barely generating more profits than the loans taken out to pay for them. Part of the problem stems from a glut of cruise ships that were built while the economy was humming. It takes several years to build a ship, so new ones kept coming, even as the economy slumped.But over time, demand for cruises should catch up with supply, and the value of the cruise ships built by Royal Caribbean will start to rise back to the value of their construction costs. Shares would need to rise by 21% just to get back up to tangible book value.Action to Take --> These value situations require patience. Indeed, Graham & Dodd preached " [Buy and Hold](http://www.investinganswers.com/term/buy-and-hold-948) ." In the meantime, these stocks are likely to fall by less than other stocks that trade far above book value. So you get (eventual) reward without too much risk. Of these companies profiled, Ingram Micro is the most likely to see tangible book value keep rising, while investors in Royal Caribbean and Dillard's will need to wait for the market for their assets (ships and real estate , respectively) to become better appreciated.[InvestingAnswers](http://www.investinganswers.com/a/very-best-value-plays-patient-investors-1461) Stock Price 4 days before: 10.488 Stock Price 2 days before: 10.2161 Stock Price 1 day before: 10.3802 Stock Price at release: 10.1382 Risk-Free Rate at release: 0.0014	9.43433
Symbol: GCI Security: Gannett Co., Inc. Related Stocks/Topics: CBOE\|Markets\|BAC\|MAT\|GE\|CPI\|JPM\|C Title: Opening View: DJIA Fights for Gains; Bank of America Earnings Fail to Impress Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-07-16 07:45:00 Article: The Dow Jones Industrial Average's (DJIA) seven-day winning streak came to an end at seven days in a row on Thursday, despite an impressive late-session rally back from a triple-digit loss that nearly pushed the Dow positive for the session. The DJIA managed to hold support in the 10,300 area, with longer-term support at the 10,250 region kicking in as well. However, the Dow is still locked below 10,400, which continues to be a thorn in the bulls' side. Still, the blue-chip barometer is on pace for a weekly gain of 1.5%, which complements the prior week's gain of 5% rather nicely. Elsewhere, the S&P 500 Index (SPX) has been unable to overcome its own technical demon in the 1,100 region, though support at 1,080 is holding firm. Heading into the open, futures on the DJIA and the SPX are pointing toward a flat start to the regular session of trading, as Wall Street digests the latest round of earnings reports from the likes of Bank of America Corp. ([BAC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BAC&selected=BAC)) ) and General Electric Co. ([GE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GE&selected=GE)) ).Speaking of earnings, Bank of America Corp. ([BAC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BAC&selected=BAC)) ) said that its second-quarter profit fell to $3.1 billion, or 27 cents per share. Net income applicable to common shareholders was $2.8 billion, while total revenue net of interest expense was $29.2 billion. Analysts had expected earnings of 22 cents per share on revenue of $29.6 billion. BAC shares were last seen lower by 0.84% in pre-market trading. Meanwhile, General Electric Co.'s ([GE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GE&selected=GE)) ) second-quarter profit rose 16% to $3.11 billion, or 28 cents per share, even as revenue fell 4% to $37.44 billion. GE Capital saw segment profit jump 93%, with NBC Universal profits growing 13%. On a continuing operations basis, GE earned 30 cents per share, topping analyst expectations for a profit of 27 cents per share. GE shares have edged 0.26% higher in pre-market trading.Finally, Keefe, Bruyette & Woods upgraded its 2010 earnings outlook for JPMorgan & Chase Co. ([JPM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JPM&selected=JPM)) ), a day after the banking giant released its quarterly earnings report. The brokerage firm now expects JPM to earn $3.69 per share in fiscal 2010, up from its previous forecast for $2.97 per share. The firm reiterated its "outperform" rating on JPM, with a target price of $57 per share. Separately, analysts at FBR Capital Markets reiterated its "outperform" rating and $45 target per-share price target for JPM. Earnings Preview On the earnings front, Citigroup Inc. ([C](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=C&selected=C)) ), Gannett Co. Inc. ([GCI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GCI&selected=GCI)) ), and Mattel Inc. ([MAT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MAT&selected=MAT)) ) are scheduled to release their quarterly earnings report today. Keep your browser at [SchaeffersResearch.com](http://www.schaeffersresearch.com/) for more news as it breaks. Economic Calendar We finish off a week packed full of data with June's consumer price index ([CPI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CPI&selected=CPI)) ), the core CPI, and the University of Michigan's consumer sentiment index for July. Market Statistics Equity option activity on the Chicago Board Options Exchange ([CBOE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBOE&selected=CBOE)) ) saw 1,266,977 call contracts traded on Thursday, compared to 766,551 put contracts. The resultant single-session put/call ratio arrived at 0.61, while the 21-day moving average held at 0.64. [Volatility indices](http://www.schaeffersresearch.com/images/commentary/2010/100716ov1.gif) [NYSE and Nasdaq summary](http://www.schaeffersresearch.com/images/commentary/2010/100716ov2.gif)The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher. [Dow, S&P and Nasdaq futures](http://www.schaeffersresearch.com/images/commentary/2010/100716ov3.gif) Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up [here](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=O&CODE=SIRG07D) for free daily delivery, straight to your inbox, before the opening bell. Overseas Trading Overseas trading is mixed this morning, as only six of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a gain of 0.03%. In Asia, stocks closed mostly lower. European stocks rallied as investors positioned themselves ahead of U.S. banking giants Bank of America and Citigroup. Overseas market information comes to you courtesy of [Schaeffer's Daily Bulletin](http://www.schaeffersresearch.com/ajax/SchaefferEzineSignUp.aspx?ezine=D&CODE=UB08FREE14) . [Overseas markets](http://www.schaeffersresearch.com/images/commentary/2010/100716ov4.gif)Currencies and Commodities Persistent concerns about economic growth in the U.S. are keeping pressure on the dollar, even as the euro rebounds from near annual lows and the Japanese yen benefits from safe-haven buying. As a result, the U.S. Dollar Index has dropped 0.34% to trade at 82.28, setting the index on course for a week-over-week loss of nearly 2%. Commodities, meanwhile, are struggling to maintain a positive bias this morning, despite the weaker greenback. For instance, gold futures are off $2.50 at $1,205.80 in London. Finally, crude oil has added a mere nine cents to trade at $77.10 per barrel in electronic trading. [Currencies and commodities](http://www.schaeffersresearch.com/images/commentary/2010/100716ov5.gif)**Unusual Put and Call Activity:For an explanation of how to use this information, check out our [Education Center](http://www.schaeffersresearch.com/schaeffersu/) topics on [Option Volume](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?ID=220#220) and [Open Interest Configurations](http://www.schaeffersresearch.com/schaeffersu/content/expectational+analysis+sentiment+option+volume+and+put/call+volume+ratio/Education.aspx?id=221) . [Unusual options activity - puts](http://www.schaeffersresearch.com/images/commentary/2010/100716ov6.gif) [Unusual options activity - calls](http://www.schaeffersresearch.com/images/commentary/2010/100716ov7.gif) [Click here for the new spring issue of SENTIMENT magazine](http://www.schaeffersresearch.com/redirect.aspx?CODE=SIRMAG10DGENERAL&PAGE=1)** All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 14.7488 Stock Price 2 days before: 14.6487 Stock Price 1 day before: 14.797 Stock Price at release: 15.1944 Risk-Free Rate at release: 0.0014	12.5117
Symbol: DO Security: Diamond Offshore Drilling, Inc. Related Stocks/Topics: Markets Title: Options Trade of the Day: Vertical Ratio Put Spread on Diamond Offshore Drilling Inc. Type: News Publication: Schaeffer Publication Author: Unknown Date: 2010-07-19 01:45:00 Article: Shares of Diamond Offshore Drilling Inc. ([DO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DO&selected=DO)) ) are trading fractionally higher today, as traders respond to new developments in the Gulf oil spill disaster. Options traders aren't buying into DO's recent stability near $60 per share, sending more than 4,000 bearishly oriented puts across the tape so far today. In fact, DO's put volume has already outstripped the stock's daily average by more than four to one. The most popular strike has been the August 50 put, where some 2,100 contracts have crossed the tape.While digging through DO's put volume, I ran across a block of 78 contracts at the August 55 strike, which traded on the International Securities Exchange ([ISE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ISE&selected=ISE)) ) for the ask price of $0.93, or $93 per contact. I found the other leg of this spread on the popular August 50 put, where 156 contracts traded for the bid price of $0.37, or $37 per contract. Given this data, we could be looking at the initiation of a vertical ratio put spread, or a debit spread , on Diamond Offshore Drilling Inc. [DO option volume details](http://www.schaeffersresearch.com/images/commentary/2010/100719DO1.gif)The Anatomy of an Diamond Offshore Drilling Inc. Vertical Ratio Put Spread Breaking down this vertical ratio spread, the trader would have purchased 78 August 55 puts for a total outlay of $7,254 -- (0.93 * 100) * 78 = $7,254. Meanwhile, the trader also sold 156 August 50 puts for a total credit of $5,772 -- (0.37 * 100) * 156 = $5,772. Combining these two legs results in a net debit of $1,482 -- $7,254 - $5,772 = -$1,482. [DO vertical ratio put spread details](http://www.schaeffersresearch.com/images/commentary/2010/100719DO2.gif) The maximum profit on this vertical ratio put spread is achieved when the underlying stock falls to the sold strike, which would be the 50 level in this case. However, since twice as many August 50 puts were sold, this spread position will begin to lose money after DO moves below $50 per share. Once DO breaches this region, only half of the 156 sold August 50 puts are hedged by the 78 purchased August 55 puts. As such, the trader will begin to lose money on the unhedged portion of those sold August 50 puts as DO moves lower. Below is a chart for a rough visual representation of the trade's profit/loss scenario: [DO vertical ratio put spread profit/loss chart](http://www.schaeffersresearch.com/images/commentary/2010/100719DO3.gif)Implied Volatility While ordinary vertical put spreads are not greatly impacted by rising implied volatility, a spike in implieds could be detrimental to a ratio spread. Since the trader has sold more contracts than he has purchased, rising implied volatility on these options would negatively impact the position, as it would make it more costly to repurchase these contracts should the trader need to do so. At the time of the trade, implieds for the August 50 puts arrived at 53.46%, while the implied volatility for the August 55 put rested at 58.21%. DO's one-month historical volatility arrived at 26.25% as of the close of trading on Friday, meaning the aforementioned options are considerably expensive at the moment. [Follow Schaeffer's to the San Francisco MoneyShow Aug. 19 -- 21, 2010! Click here for details, including a list of scheduled presentations and how to register.](http://www.schaeffersresearch.com/edge/road.aspx) All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited. Stock Price 4 days before: 65.9811 Stock Price 2 days before: 62.7123 Stock Price 1 day before: 63.2876 Stock Price at release: 63.3314 Risk-Free Rate at release: 0.0015	62.2774
Symbol: NR Security: Newpark Resources, Inc. Related Stocks/Topics: Markets Title: Commodity Trends: No ban on cardamom futures Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-07-19 02:43:00 Article: With open interest in cardamom futures surging, rumors of a ban on the contract also started circulating until Forward Markets Commission clarified that there would be no ban on cardamom futures.The excessive heating in the cardamom counter is borne by the rise in open interest - outstanding buy/sell positions - from May 7 despite a 15% margin being imposed on the buy side. The aggregate OI of the front month contract rose from 3,214 contracts on May 7 to 6,727 contracts intraday on Monday even as the price rose from Rs 1,409 to Rs 1,850 over the same period. Rising OI with rising price indicates buying interest. POINTERS Stock exchanges can't hold more than 5% in national comexes The government has clarified that no single stock exchange can hold more than a five per cent stake in any national commodity exchange. And, in an amendment to the existing guidelines, the combined shareholding of all these stock exchanges in any national commodity exchange ([NCE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NCE&selected=NCE)) ) is to be capped at 10 per cent.Also, any single commodity exchange, along with persons acting in concert, cannot hold more than 15 per cent stake in an NCE. In addition, the cumulative shareholding of stock or commodity exchanges, along with those of persons acting in concert, cannot exceed 20 per cent in an NCE.As a result of the new rules, the National Stock Exchange will have to bring down its stake in the National Commodity and Derivatives Exchange ([NCDEX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NCDEX&selected=NCDEX)) ) to five per cent from the existing 15 per cent. Food Inflation to come down in two weeks Food inflation would come down substantially in the coming two weeks, Chief Economic Advisor Kaushik Basu said even as the prices of fruit and vegetables have gone through the roof.He, however, cautioned that core inflation, which excludes food and fuel, was on the rise. Core inflation rose sharply to 8.6 per cent in June, more than double from 3.5 per cent in December 2009."Food inflation continues to slow down and non-food inflation is on a slow pick-up... Food price inflation for the week ended July 29 will be substantially lower than the food inflation data released this week," Basu told reporters here. He added the food inflation had flattened since November 2009. Ra for Rupee In keeping with India's growing economic might and its status as a major investment destination, the hitherto humble rupee is all set to get a distinct identity in the form of a new symbol. The Union Cabinet on Thursday gave its approval to the symbol which combines the Roman letter 'R' with the Devnagri 'Ra' .The symbol will catapult the rupee into the company of four 'elite' currencies which have similarly distinct identities - the US dollar, euro, yen and British pound. Food inflation falls to 12.81 %The annual food inflation, based on the Wholesale Price Index, rose 12.81 per cent for the week ended July 3, marginally above the previous week's year-on-year rise of 12.63 per cent. Fuel inflation eased to 14.27 per cent during the latest week, mainly due to a decline in prices of furnace oil, compared with a rise of 18.02 per cent for the week ending June 26.Data released by the Commerce Ministry on Thursday showed inflation in pulses increased 29 per cent, and milk 16 per cent during the latest week, even as vegetables dipped by six per cent. The index for primary articles was up at 16.25 per cent compared with 16.08 per cent a week-ago, while the sub-index for non-food items was up 18.85 per cent from previous week's 18.6 per cent increase. Tata Coffee to invest in Africa Tata Coffee Ltd., Asia's largest publicly traded grower of the bean, may invest 1.3 billion rupees ($27.7 million) in a factory to make instant coffee in Africa to meet rising global demand. The company, majority-owned by Tata Global Beverages Ltd., may build the plant in Uganda, Africa's biggest producer of the robusta variety, or Kenya, central Africa, Managing Director Hameed Huq said in an interview. Tata Coffee may also consider acquiring a company in the continent, he said. Bangalore-based Tata Coffee expects a global economic recovery to help boost demand for instant coffee, a market valued at $19.6 billion, according to researcher Euromonitor International. Starbucks Corp., the world's largest coffee-shop operator, in April raised its annual forecast after reporting second-quarter profit that beat analysts' estimates, helped by sales of Via instant coffee Gold Precious metals complex weakened as Euro rebounded and US inflation declined on fall in energy prices. Gold prices declined to the lowest levels in two weeks as lower energy prices pushed US consumer prices lower for third straight month. Fresh outflow from SPDR trust also led to weakening of gold prices. Gold prices have fallen 1.8% this week.Spot gold prices traded in $1,185 to $1,189 range. US August gold fell 1.7% in the weekend to $1,188 per ounce.The factors that led to fall of gold include euro's rebound that reduced demand for the precious metal as a haven against European-debt concerns. The euro was headed for the third straight weekly gain after topping $1.30 for the first time since May 10. Gold rose to a record $1,266.50 an ounce on June 21 and surged to all-time highs in euros, U.K. pounds and Swiss francs last month amid Europe's fiscal crisis.Gold historically has moved in tandem with the euro as an alternative to the dollar. This year, as Europe's sovereign-debt woes unfolded, investors sold euros and bought gold and dollars as stores of value. Precious metals with wider industrial applications fell on signs that the U.S. economic recovery is slowing, eroding demand for raw materials.Silver futures for September delivery fell 57.4 cents, or 3.1 percent, to $17.788 an ounce on the Comex. The price was down 1.6 percent for the week. Platinum futures for October delivery dropped $21.60, or 1.4 percent, to $1,512.10 an ounce on the New York Mercantile Exchange. The metal lost 1.4 percent this week.Palladium futures for September delivery declined $18.60, or 4 percent, to $448.60 an ounce on the Nymex, for a weekly decline of 1.8 percent.India's gold collection under exchange-traded funds rose 76 percent in June from a year ago to 10.453 tonnes as the yellow metal hit its all-time high, data from the funds showed. MCX Aug Gold falls sharply to 18324, in bearish market. Support levels 18200/18090; resistance at 18470, 18630. Base Metals US Copper futures have fallen the most in two weeks on concerns of slowing economy that is likely to limit demand for metals used in homes, cars and appliances. September delivery at Comex Nymex fell to $ 2.9295, the lowest closing since July 2. It traded in $3.03 to $2.925 range. A series of data related to US was negative for base metals. US manufacturing contracted in June, consumer sentiment sank to all month low in July. Concerns of double dip recession also impacted market sentiments. China and US are the world's most metal consuming nations. Copper prices have slumped 12 percent this year Confidence among U.S. consumers tumbled in July to the lowest level in a year, according to the Thomson Reuters/University of Michigan index of sentiment. Consumer spending accounts for 70 percent of the U.S. economy.LME Stocks have fallen 1300 tonnes to 426,425 down more than 100,000 tonnes from this Mid February. Comex copper inventories unchanged at 101,210.On the London Metal Exchange, copper for delivery in three months lost $195, or 2.9 percent, to $6,485 a metric ton ($2.94 a pound). Aluminum, zinc, nickel, lead and tin prices also fell.MCX Aug Cooper weakened to Rs 306 from Rs 316 and is in range bound trade. Support levels are 303, 299 and resistance at 313 and 320. Crude Oil Crude Oil prices fell on speculation that US economic recovery has slowed down, reducing fuel demand in the world's largest energy consuming country. Equity markets weakening also impacted market sentiments. Crude oil Aug contract at Nymex fell to $76, Brent Crude oil for September fell to $75.37 on ICE. Oil in New York traded in $71.09 to $79.38 range failing to test 200 day moving average of $77.48 and is likely to test $74.33 (the 50 day moving average).An Energy Department report on July 14 showed that U.S. fuel demand dropped 4 percent to 18.8 million barrels a day last week. It was the lowest level since the week ended April 23 and the biggest drop since. Supplies of gasoline and distillate fuel-that includes the heating oil and diesel increased as crude oil stock piles dropped. OPEC has said that global crude oil demand will rise 1.05 mn barrels a day or 1.2% next year at 86.41 mn barrels.Petroleum market has attained short run equilibrium and equity market sentiments are determing the movements in crude oil as economic recovery is central to both markets.In another report, the Labor Department said the U.S.Consumer Price Index dipped 0.1 percent last month, after falling 0.2 percent, on lower energy costs.MCX Aug Crude gains marginally at 3594 after peaking to 3667. Support levels at 3530, 3460, resistance 3665, 3735. Rubber Rubber prices in Indian spot markets fell from Rs 185 levels to Rs 180 on buyer resistance even as analysts predict that prices are set to soften in two months on increased supplies and rise in domestic arrivals. NMCE August contract fell from Rs 181.70 to Rs 173.80 while Tocom July contract gained from 350 yen to 355 yen. The trade bodies representing rubber-based industries in India have pressed for a reduction in the import duty of natural rubber ([NR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NR&selected=NR)) ), to help bail out the industrial units struggling with the exorbitantly high prices.These industries have been demanding a reduction in duty by 10 per cent, on a par with the import duty on rubber-based finished goods like tyre. At a hearing with the government-appointed panel, chaired by the Rubber Board chairman, they pointed to the need to be on an equal footing with Chinese manufacturers in accessing NR at cheaper global rates.Data and estimates from the Association of Natural Rubber Producing Countries ([ANRPC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ANRPC&selected=ANRPC)) ) indicate global supply of natural rubber will grow this year at a slower rate that previously anticipated. Forecasts based on preliminary estimates and reports available up to mid-June point to a 5.2 per cent growth, lower than the 6.3 per cent rate anticipated in March and 6.1 per cent rate anticipated in May.When the 6.3% output growth for this year was anticipated in March, the ANRPC cautioned this to be an optimistic rate and pointed out a host of constraints in attaining this. Two major constraints in the list were existing yielding rubber trees in major producing countries were largely planted during 1980s and they have now reached senile stage having low yield; and the anticipated rate assumed a favourable climate during the whole year. The association cautions that the revised 5.2 per cent rate may be subject to further downward revisions. Provisional full-year figures estimate 2010 global natural rubber will reach 9,384,000 tonnes, up 5.2 per cent on 2009. Soybeans India's soy complex gained during the weak with soybean, soyoil hiting contract highs bolstered by rally in overseas markets, weak rains in Madhya Pradesh and drop in edible oil imports. US Soybean rose 2% on Thursday on strong US export sales and worries about hot weather that could threaten yields in Midwest.Farmers in India's top soybean producing states accelerated sowing in the past week after good rainfall, but further progress would depend on monsoon rains.India's vegetable oil imports fell an annual 6 percent in June, dropping for the six straight month but not as sharply as market expectations as farmers held back oilseed sales anticipating higher prices later.India's vegetable oil imports fell 6% in June dropping for sixth straight month. NCDEX Aug soybean rose from Rs 1949 to Rs 2006 while soyoil rose from Rs 457 levels to Rs 465 levels while Aug rapeseed contract rose from Rs 531.4 to Rs 537 levels on drop in vegetable oil imports and reports that farmers may sow in lesser area due to fall in prices this year while cotton acreage is set to improve. Among other factors, improved spot demand for Malaysian palm oil also support market bulls. Edible oil demand rises during monsoon season and ahead of the festival season of August and September.NCDEX Aug Soybean has support at 1990 levels while Aug soyoil has support at Rs 450 levels and Aug Rapeseed contract has support at Rs 528. Progress of monsoon and spot market demand to be vital factors for soy complex in the coming weak. Chana Chana market has gained this week on lower rainfall in major kharif pulses growing regions and improved spot demand. Pulses demand rises during monsoon as short supply of vegetables pushes up prices and markets anticipate rise in demand ahead of festival season. NCDEX July contract rose from Rs 2222 to RS 2234 while NCDEX August rose from Rs 2303 to Rs 2311. Among the positive factors include strong millers demand, Kharif pulses acreage is expected to rise 15-20 % this season on the back of rising prices during the past few years. With lower rainfall reported in major growing regions, chana prices have support at 2210 for July and Rs 2200 for August contracts. Stock Price 4 days before: 6.93853 Stock Price 2 days before: 6.85678 Stock Price 1 day before: 7.16171 Stock Price at release: 7.16585 Risk-Free Rate at release: 0.0015	8.52079
Symbol: IMOS Security: ChipMOS TECHNOLOGIES INC. Related Stocks/Topics: TSEM\|Markets\|INTC\|IBM\|ACLS\|TXN\|TEVA\|WSTL Title: 11 Penny Stocks to Sell Now Type: News Publication: Louis Navellier Publication Author: Unknown Date: 2010-07-19 04:57:00 Article: When it comes to penny stock investing and buying inexpensive stocks, sometimes investors think that they can find bargains for just a few dollars a share. Sometimes they are right - but other times these penny stocks can expose your portfolio to big risk and lose you a bundle in a hurry.Penny stock investing tends to be riskier than investing in large cap stocks, but that doesn't mean you have to settle for losers in your quest for big penny stocks that take off. Here are 11 penny stock losers to avoid: ********ICO Global Communications Holdings ([ICOG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ICOG&selected=ICOG)) )Industry: Wireless Communication Services Market Cap: $418.3 million ICO Global Communications Holdings ([ICOG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ICOG&selected=ICOG)) ) is a development-stage mobile satellite service operator with one medium earth orbit satellite currently functioning. ICOG also has 10 additional satellites in various stages of completion. While this penny stock is up 52.8% since January, it has started to decline in recent weeks, and is down -3% since July 8. Interestingly, ICO has not made progress on any of its satellites since 2004, due to a disagreement with the satellites' producer, Boeing. That's not a very encouraging sign and tells me investors should steer clear of this penny stock. Antares Pharma Inc. ([AIS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AIS&selected=AIS)) )Industry: Health Care Equipment Market Cap: $128.6 millionFocusing on self-injection pharmaceutical technology and gel-based products, Antares Pharma Inc. ([AIS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AIS&selected=AIS)) ) has seen a -21.5% decrease over the past month. That's much worse than the broader markets, as the Down Jones Industrial Average and Nasdaq are down -2.9% and -5.1% over the past month, respectively. The New Jersey based AIS has a multi-product deal with Teva Pharmaceutical Industries ([TEVA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TEVA&selected=TEVA)) ), and is involved with the production of various disposable and reusable auto injectors. That's a plus, however, experts have predicted and earnings decrease over the next two quarters for this penny stock. That has turned me off Antares. Axcelis Technologies Inc. ([ACLS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ACLS&selected=ACLS)) )Industry: Semiconductors Market Cap: $179.1 millionPenny Stock Axcelis Technologies Inc. ([ACLS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ACLS&selected=ACLS)) ) designs, manufactures and services semiconductor chips, while also providing service, support, equipment upgrades, spare parts and customer training. ACLS works with some notable technology companies including Intel ([INTC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=INTC&selected=INTC)) ), IBM ([IBM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IBM&selected=IBM)) ), Texas Instruments ([TXN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TXN&selected=TXN)) ) and Samsung. While Axcelis was up 68.8% from January to May, the stock has fallen sharply since then, and is down -25.9% over the past three months. Additionally, this penny stock has underperformed earnings estimates three of the last four quarters. Tower Semiconductor ([TSEM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TSEM&selected=TSEM)) )Industry: Semiconductors Market Cap: $278.6 million Tower Semiconductor ([TSEM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TSEM&selected=TSEM)) ) is an independent specialty foundry that manufactures semiconductors. This penny stock's products are used in a wide range of consumer electronics including personal computers, medical device products and automotive products. With a -12.5% decrease over the last months Tower's stock is currently trading at $1.39 per share and has slightly underperformed the broader markets. Also counting against TSEM is that Tower has missed analysts' earnings estimate three of the last four quarters. RAM Energy Resources Inc. ([RAME](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RAME&selected=RAME)) )Industry: Oil Gas & Consumable Fuels Market Cap: $145.3 millionWorking primarily in Texas, Louisiana and Oklahoma, RAM Energy Inc ([RAME](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RAME&selected=RAME)) ) is an independent oil and natural gas company involved in the exploration, acquisition, development and production of oil and natural gas properties. Ram has seen a decrease of -19.6% in the last month, and is down -9.8% for 2010. With a current stock price of $1.84, this penny stock has underperformed analysts' earnings estimates two of the last four quarters. ChipMOS Technologies Ltd. ([IMOS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IMOS&selected=IMOS)) )Industry: Semiconductors Market Cap: $109.2 million ChipMOS Technologies ([IMOS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IMOS&selected=IMOS)) ) is a holding company that provides several testing services for various types of semiconductors. While the Taiwanese company may be up on the year, this penny stock has slid -19.8% in the last month. In its latest earnings report, ChipMOS announced a profit margin of -16.2% as well as a return on assets of -6.9%. This stock has remained anything but stable over the past few months. Quest Capital Corp. (QCC)Industry: Diversified Financial Services Market Cap: $209.3 million Quest Capital Corp ([QCC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=QCC&selected=QCC)) ) provides real estate mortgage financing to owners of land, multi-unit residential buildings and commercial properties. Generating revenue through interest on its loans, this penny stock has remained stable and is up a bit since mid-June. However, Quest's latest income statement has analysts feeling uneasy as the financial service provide reported a loss in revenue of -18.6% as well as a quarterly revenue growth of -38.2%. Quaterra Resources Inc. ([QMM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=QMM&selected=QMM)) )Industry: Metals & Mining Market Cap: $141.1 millionMining and exploration company Quaterra Resources Inc. ([QMM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=QMM&selected=QMM)) ) is involved in indentifying, acquiring and evaluating prospects in mining-friendly jurisdictions. Focusing on precious metals and base metals in Mexico and the western United States, this penny stock has seen a decrease of -39.8% in 2010. Despite the announcement in June that Quaterra will partner with Grande Portage Resources Ltd. in an effort to explore the Herbert Glacier gold property, near Juneau, Alaska, Quaterra still remains a risky and underperforming stock. CombinatoRx Inc. (CRXX)Industry: Biotechnology Market Cap: $127.2 millionBiopharmaceutical company CombinatoRx Inc. ([CRXX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CRXX&selected=CRXX)) ) develops drugs focused on the treatment of pain and inflammation. The penny stock, which merged with Neuromed Pharmaceuticals in 2009, conducts preclinical and clinical trials while seeking intellectual property protection for its technology and products. Trading for $1.43 per share, CominatoRx has dropped -12.2% over the past month. While the Massachusetts based company was performing well earlier in the year, its recent slide has analysts ready to sell. Ladenburg Thalmann Financial Services ([LTS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LTS&selected=LTS)) )Industry: Capital Markets Market Cap: $188.1 million Ladenburg Thalmann Financial Services ([LTS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LTS&selected=LTS)) ) is involved with investment banking, equity research, independent brokerage, advisory services and asset management services. LTS has seen steady decline over the past three months, and is down 17% since mid-April. With a stock price of $1.09, this penny stock missed the earnings estimate by a whopping -200% last quarter, and is projected to be in the red this quarter as well. Westell Technologies Inc. ([WSTL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WSTL&selected=WSTL)) )Industry: Communications Equipment Market Cap: $106 million Westell Technologies Inc. ([WSTL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WSTL&selected=WSTL)) ) is a holding company that distributes telecommunications products, which are sold primarily to telecommunications companies. This penny stock is also involved with the production of DSL modems for homes and small offices. While Westell's stock is up 31.7% since the start of 2010, its earnings have certainly leveled off. Up just 1.9% over the past month, Westell's stock price of $1.58 has analysts and experts concerned. Top 5 Stocks to Own Now These must-have companies are just hitting their stride and are poised to outperform the market in the short-term. Investing pro Louis Navellier reveals his top five picks to own now in this free stock guide - [download your FREE copy here](http://www.investorplace.com/order/?sid=XH3252) . Stock Price 4 days before: 1.42866 Stock Price 2 days before: 1.36325 Stock Price 1 day before: 1.39209 Stock Price at release: 1.39347 Risk-Free Rate at release: 0.0015	1.22005
Symbol: PRDO Security: Perdoceo Education Corporation Related Stocks/Topics: Markets Title: Apollo calls sold despite stock rally Type: News Publication: optionMONSTER Publication Author: Unknown Date: 2010-07-19 11:40:00 Article: Apollo Group is ripping higher, but option traders apparently believe that the rally will peter out.Our tracking systems detected the sale of 6,700 August 55 calls for $0.55 against open interest of 1,096 contracts. Overall option volume in the operator of for-profit colleges is 4 times greater than average so far today. [APOL Chart](http://www.optionmonster.com/cms/commentary/images/apol719.png) APOL rose 7.79 percent to $49.12 in morning trading and is up 16 percent so far this month. The stock is rallying along with related companies such as Career Education, Corinthian Colleges, and DeVry on a report last week that regulators might treat the industry more gently than had been feared.Education stocks have been falling since late May on concern the government would reduce students' ability to pay tuition with borrowed money.Today's rally in APOL came after the stock climbed as much as 5 percent on Friday, but surrendered most of the gains as the broader market fell. The stock is now attempting to push through its 50-day moving average, and some chart watchers may expect resistance at this level.Writing calls let the investor collect premium for agreeing to sell the stock at $55 on expiration. It may have been executed by a shareholder looking to earn income or as an outright bearish play by a trader who thinks the stock has limited upside.If APOL remains below $55, the value of the contracts sold short will evaporate over the next five weeks and let the investor keep the premium. The company's earnings and revenue beat forecasts the last time it issued results on June 30, although guidance was tepid.(Chart courtesy of tradeMONSTER) Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved. Stock Price 4 days before: 0.0 Stock Price 2 days before: 0.0 Stock Price 1 day before: 0.0 Stock Price at release: 0.0 Risk-Free Rate at release: 0.0015	0
Symbol: HOV Security: Hovnanian Enterprises, Inc. Related Stocks/Topics: XAL\|Markets\|PETS\|DAL Title: Monday Losers: PetMed Express, Delta Air Lines and Hovnanian Enterprises Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-19 11:55:00 Article: Among the biggest losers in Monday's early trading are PetMed Express (Nasdaq: PETS) , [Delta](http://investinganswers.com/term/delta-79) Air Lines ([DAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DAL&selected=DAL)) ) and Hovnanian Enterprises ([HOV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HOV&selected=HOV)) ) . Discretionary Spending Cuts hurt PetsMed Express There are three possible reasons why sales at direct-to-consumer pet drug prescription retailer PetsMed Express (Nasdaq: PETS) are falling -- as the company just announced. Perhaps it's because PETS aired fewer TV ads in the second quarter. Or maybe it's that fewer people are keeping pets in these cost-constrained times. Or perhaps it's an industry that is now fully mature. After all, sales growth has been steadily decelerating, from very strong during 2002, 2003 and 2004, to moderately strong in the next three to four years, to below +10% in the most recent [fiscal year](http://investinganswers.com/term/fiscal-year-1316) . For fiscal (March) 2011), the company be looking at flat growth -- at best. Action to Take --> PetsMed's just-announced quarterly profit results trailed analysts' forecasts by nearly 20%, and that's knocking -9% off of the value of shares, as forward forecasts will likely need to come down. Shares are unlikely to see a bounce any time soon, and could come down a bit further from today's levels as large shareholders rotate out of the stock in coming weeks. Notably, shares of pet-focused PetSmart (Nasdaq: PETM) trade within 10% of their 52-week high, and if that retailer's recent very high level of promotional activity is any guide, quarterly results (which will be released in late August) may be pressured there as well.-------------------------------------Delta signals Airline Industry Revenue Weakness Shares of Delta Air Lines ([DAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DAL&selected=DAL)) ) are off roughly -9% after the nation's largest air carrier posted second-quarter sales on Monday that were roughly $100 million below forecasts. Shares of UAL (Nasdaq: UAUA) , [parent company](http://investinganswers.com/term/parent-company-611) of United Airlines, are off -8%, while U.S. Airways ([LCC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LCC&selected=LCC)) ) is off -9%, in sympathy with Delta's results.Only recently, Delta's CEO Richard Anderson told shareholders that industry conditions were quite robust. And a quick survey of analysts' forecasts implies that revenue should keep growing at a solid clip later this year and into 2011. Analysts may look to moderate their revenue growth assumptions. And as we [suggested earlier this month](http://www.streetauthority.com/node/456309) , labor-induced cost pressures may start to build.As recently as mid-June, investors had become more bullish on the group, pushing the AMEX Airline Index ([XAL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=XAL&selected=XAL)) ) above 40. It's off nearly -4% today to around 36.5. Depending on what the other major air carriers have to say, we could see that [index](http://investinganswers.com/term/index-971) slump further in coming days. Action to Take --> Delta now trades for less than five times projected 2011 profits, which may tell us that many investors don't believe analysts' forecasts. Those forecasts are likely to be trimmed, but shares of Delta will still look quite cheap. Wait for sector results to be digested, but you can then take a flier on one of these cheap stocks, as it is increasingly clear that the United States and Europe should be able to avoid a double-dip. -------------------------------------Home Builders can't Wait Forever At the end of 2008, economists expected the housing market to start to rebound about 18 months later. And ever since then, any upturn has still looked to be that far off. Recent home builder data indicate that a 2011 rebound may not even happen. Trouble is, homebuilders can't wait forever. Some of them keep losing money, and eventually the well may run dry.Take Hovnanian Enterprises ([HOV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HOV&selected=HOV)) ) as an example. The New Jersey-based home builder lost $3 a share in fiscal (October) 2009, is on track to lose another $1.50 per share this year (excluding a one-time gain), and perhaps a similar amount next year. Moreover, [long-term debt](http://investinganswers.com/term/long-term-debt-965) stands at more than $1.7 billion, and lenders like to see positive [cash flow](http://investinganswers.com/term/cash-flow-1175) to help support future debt re-payments. And those lenders often have an option to call in a loan if a company can't meet cash flow targets.And that's especially why Hovnanian -- and other home builders -- would like to see a housing rebound. Sooner rather than later, they may need to start selling off assets just to keep the bankers at bay. Action to Take --> Shares of Hovnanian are off nearly -6% on Monday, and have lost more than half of their value during the past three months. As the housing crisis rolls on, shares could come under even greater pressure. Hovnanian may look to sell stock to lighten the debt load , but that could lead to very large dilution.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/news/monday-losers-petmed-express-delta-air-lines-and-hovnanian-enterprises-456367) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 4.04865 Stock Price 2 days before: 4.04104 Stock Price 1 day before: 4.03414 Stock Price at release: 3.76319 Risk-Free Rate at release: 0.0015	4.08754
Symbol: DBD Security: Diebold Nixdorf, Incorporated Related Stocks/Topics: EXC\|Markets\|PG\|ACN Title: How Likely is Another Flash Crash? Type: News Publication: ETFguide Publication Author: Unknown Date: 2010-07-20 02:24:00 Article: SAN DIEGO (ETFguide.com) - I have good news and bad news. Here's the good news: The May 6th 'Flash Crash' that spooked global markets is over. Now for the bad news: It's exact causes still aren't known and could reoccur.What was the 'Flash Crash' and how did it happen? And moreover, how likely is another similar episode in the future? Let's investigate together. The Anatomy of an Epic Decline The 'Flash Crash' on May 6th triggered a massive decline in stocks and sent shockwaves throughout global financial markets. The Dow Jones Industrial Average (NYSEArca: DIA), a barometer of 30 U.S. blue chip stocks, fell a record 998.5 points or 9.2% in value. Other leading market indexes like the S&P 500 (NYSEArca: SPY) and Nasdaq Composite (NasdaqGS: ONEQ) were also hammered.Among the most surprising aspects of the 'Flash Crash' was the suspicious trading activity of certain stocks. Procter and Gamble ([PG](https://www.nasdaq.com/symbol/pg)) ) fell almost 37% before quickly rebounding. Other stocks like Accenture ([ACN](https://www.nasdaq.com/symbol/acn)) ) and Exelon ([EXC](https://www.nasdaq.com/symbol/exc)) ) briefly traded for cents.And perhaps the most amazing part of the stock market's colossal decline on May 6th wasn't the $1 trillion that temporarily vanished, but its unprecedented immediately rebound. By the final 15 minutes of the trading session, stocks reversed their intraday losses. When, besides never, has this ever happened in stock market history?Questions and Answers There are various explanations of why the 'Flash Crash' occurred and virtually all of them are unsatisfactory. The Wall Street Journal suggested a large order of put options by a hedge fund might have been a factor. Another report claims a $4 billion trade of e-mini contracts on the Chicago Mercantile Exchange was at fault. Others blame an errant trade made by someone that pressed the wrong button their keyboard.In Congressional testimony, S.E.C. Chairwoman Mary Schapiro said 'stub quotes' may have caused certain stocks to trade for 1 cent a share. 'The absurd result of valuable stocks being executed for a penny likely was attributable to the use of a practice called stub quoting,'' she stated. 'When a market order is submitted for a stock, if available liquidity has already been taken out, the market order will seek the next available liquidity, regardless of price. When a market maker's liquidity has been exhausted, or if it is unwilling to provide liquidity, it may at that time submit what is called a stub quote - for example, an offer to buy a given stock at a penny. A stub quote is essentially a place holder quote because that quote would never - it is thought - be reached.' While Schapiro's explanation sounds intellectually smart, she never explained why the S.E.C. allowed harmful stub quotes to exist in the first place. Since then, the S.E.C. has moved to ban the practice. Finding a Cure Any honest doctor will openly admit it's difficult to cure a problem when you don't know its exact causes. In fact, prescribing medication without knowing the source of the patient's problem could endanger their life. None of this, of course, has stopped Wall Street's cop, the S.E.C., from prescribing a wide range of experimental solutions.Better communication and oversight among the public exchanges that list securities and derivatives is being tried.Among the other fixes being tested are trading cubs also known as circuit breakers. The system acts as a sort of fire alarm that automatically halts trading for five minutes on any S&P 500 stock that rises or declines more than 10% within a five-minute period.How well have the fire alarms been performing?On June 2nd, the share price of Diebold ([DBD](https://www.nasdaq.com/symbol/dbd)) ) briefly fell 35% before circuit breakers went into effect. In other words, the problem of market crashes in both individual securities and broadly diversified benchmarks still hasn't been resolved. Do you believe in tame lions and tigers? How about tame markets?I don't. Stock Price 4 days before: 28.2556 Stock Price 2 days before: 27.6581 Stock Price 1 day before: 27.665 Stock Price at release: 27.5444 Risk-Free Rate at release: 0.0016	27.2072
Symbol: NRC Security: National Research Corporation Related Stocks/Topics: CEI\|Markets\|EFR\|UUU\|KEP\|MGA Title: Geordie Mark: Glowing Reviews for Uranium Plays Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-07-20 03:45:00 Article: Geordie Mark: Glowing Reviews for Uranium Plays Source: Brian Sylvester of [The Energy Report](http://www.theenergyreport.com/) 7/20/10[http://www.theenergyreport.com/cs/user/print/na/6850](http://www.theenergyreport.com/cs/user/print/na/6850)[Image](http://img.ibtimes.com/www/data/articles/full/2010/07/20/15043.jpg) You don't hear a lot of talk about uranium these days. It's just not as sexy as gold or silver. But with a host of reactors slated for construction, the sector is rife with opportunities. Haywood Securities Analyst Geordie Mark visits numerous uranium projects each year, researching plays at all levels. In this exclusive interview with The Energy Report, Geordie tells us why he's given "sector outperform" ratings to no less than 11 companies. It could be the most comprehensive global roundup of uranium plays anywhere. The Energy Report: The spot price for uranium was $40.75 a pound on June 21, when the long-term price for uranium was $58-a spread of $17.25, or 42%. What's poised to support a 42% price increase? Geordie Mark: The spot price actually moved up to $41.75 that night, the first move to the upside in quite a number of months. It's a positive response to demand coming onstream. The long-term contract market is very different from the spot market; and, historically, it's significantly bigger in terms of the volumes that are traded. We're seeing the spot price moving to meet those contract prices going forward. We also think there's a backdrop of significant demand increase due to a delay in the development-stage projects resulting from financial crisis issues and general market conditions. TER: How far out do you see the spot price and the futures price meeting?GM: We're looking at a marriage maybe even by the end of 2011, with a spot price of $65 and a long-term move out to $70. We certainly expect to narrow the current gap by that point. TER: And you said part of that is due to the number of projects coming onstream?GM: That's right. A few development-stage companies will go into production but, certainly compared to 2007, there have been delays due to equity raising. The number of new projects going forward has been stymied when those projects needed significant capex for development. TER: At the same time we have a number of new reactors being built. GM: That's true. Over the last two years, we've seen some significant growth in the number of reactors going into construction. I think something like a 58% increase in the number of reactors are on the planning board; that's a very good size in terms of a steady increase in future demand. TER: Given the number of reactors being built or scheduled, why haven't uranium stocks performed better of late?GM: There's a relationship between share prices and general market conditions. Over the last two years, both spot and long-term prices have come off somewhat in response to global financial conditions. I believe spot has come down from about $59 and long-term prices from $80. Company valuations are quite closely linked to commodity prices, so you're basically seeing the relationship to a softening in the commodity price over that two-year period. TER: So with demand slated to rise significantly, we should see a corresponding rise in share prices of uranium miners and explorers? GM: That's our target forecast for our covered companies and where we see the commodity price going in response to increasing demand. I think the interesting thing is that increasing demand not only corresponds to the number of new reactors coming onstream but also policies echoing out of Europe regarding extending the life of existing reactor fleets. You're seeing a number of different avenues in which nearer-term demand could increase, which only adds to the longer-term demand of new reactors. There are incremental policy changes toward nuclear power, too, certainly across Europe and coming across through North America. Obviously it's happening in Asia, with China and South Korea furnishing fairly large reactor-unit increases for their countries. TER: Some of the most promising uranium projects are in Australia. Although the country is considering a new tax on miners, the Mineral Resources Rent Tax ([MRRT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MRRT&selected=MRRT)) ), a recent change in leadership in the governing party could be a favorable development. Could you update us on the political climate in Australia as it pertains to the uranium players there?GM: Well, Australia is interesting. It has the world's largest accumulated known uranium resources and the largest uranium deposit-Olympic Dam. At the moment, Australia's federal government allows uranium mining, and other regulations basically filter down state by state. Western Australia is now open to uranium mining. South Australia has an active uranium mining history, as does the Northern Territory. The more recent super-tax proposal, which the Labour Party put forward, created an uncertainty in terms of the value of both current and future mining projects. Julia Gillard, the new Prime Minister, has made motions toward the industry in terms of coming forward and talking about possible modifications to the mining taxation rules. For the time being, it's hard telling how ultimately this will break down. TER: Your research talks about some sector outperformers among the conventional explorers. You've mentioned [Energy Fuels Inc. ( ](http://www.theenergyreport.com/cs/user/print/co/636) [EFR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EFR&selected=EFR) ) , [Mega Uranium Ltd. ( ](http://www.theenergyreport.com/cs/user/print/co/181) [MGA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MGA&selected=MGA) ) and [Strateco Resources Inc. (TSX.V:RSC)](http://www.theenergyreport.com/cs/user/print/co/313) . Please update us on those companies. GM: They provide investors with exposure to uranium in different jurisdictions. For example, Mega has the Lake Maitland project in Western Australia, which is opening up for uranium mining and where a significant proportion of Mega's assets are located. The company has good partners in a Japanese consortium, which owns about 35% of the asset at Lake Maitland. Mega provides people with exposure to a near-term uranium producer that has a significant support base in terms of these partners. I think that's one of the more favorable new projects in Australia. We anticipate production maybe in 2013. It would be a lower-cost producer, probably in the high $20s in terms of USD per pound of production. TER: How much would Mega produce annually at Lake Maitland?GM: We're looking at about 1.65 million pounds; it's small-scale production. It's basically a thin layer at surface that doesn't require conventional mining. It's unconsolidated mud effectively, so 1.65 million pounds a year for the life of the project. TER: Does Mega have any other projects in Australia?GM: Lake Maitland is their primary project. Their second main asset in Australia is Ben Lomond, up in far northern Queensland, just outside the city of Townsville. It's a modest-grade deposit; it's got potential. They've got a bunch of other exploration plays around the world, particularly in Canada. TER: What's your target price on Mega?GM: $0.80. TER: Before we go further, could you give us an overview of cash costs-low, medium and high-in terms of uranium production?GM: Sure. Certainly low cash costs now would be below around $25 a pound. Medium would be upper $20s and $30s. High costs are $40s and above. TER: Okay. What can you tell us about Strateco?GM: Matoush is a very nice deposit in Québec; very handsome grades, close to 0.6% U3O8. It has a resource of about 20 million pounds of uranium U3O8-small, but higher grade. Our interpretation is that Matoush is the most advanced project for a development-stage company in Canada. Strateco has a big program going at the moment -another 60,000 meters of drilling this year to look for extensions of mineralization, and another 60,000 meters planned for 2011. The orebody is still open. Guy Hébert, the president and CEO, is also working out permitting. We're looking at permits for the project to start underground development for bulk sampling. TER: How long would it take for them to get the assay results from that bulk sample?GM: We're looking at a couple of years, probably 2012. They have to develop the underground workings first. The main thing in the interim is the underground development itself, and also the exploration drilling they're doing. It takes time. That's why we think Strateco is ahead of its peers in terms of submitting proposals to the Canadian Nuclear Safety Commission ([CNSC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CNSC&selected=CNSC)) ) for licensing and permitting approval. Canada is highly regulated, which is a good thing. It's mandated, and these things take time. TER: Alright, what about the others?GM: Energy Fuels, that's a uranium-, vanadium-oriented company in Utah and western Colorado. We like them because of the duality of the commodities. In addition to uranium, they have the vanadium, which is an integral component in steel manufacturing. That gives them a bit of a boost. Energy Fuels would be a moderate to higher-cost producer and shares many similarities with [Denison Mines Corp. (TSX:DML; NYSE.A:DNN)](http://www.theenergyreport.com/cs/user/print/co/168) and its mining and processing operations in the United States. TER: What are some of their assets?GM: They have the Piñon Ridge Mill project, permits for which are under review. That process should be complete by early next year. They have a couple of mines that are fully permitted and will be underground mining on the Colorado Plateau. Energy Fuels has the potential to go into production at their Whirlwind Mine, but they don't have a mill there yet. TER: A recent edition of Haywood Securities' Uranium Weekly gives sector outperform ratings to [Paladin Energy Ltd. (ASX:PDN; TSX:PDN)](http://www.theenergyreport.com/cs/user/print/co/138) and Denison. What upsides do you see there? GM: I favor Paladin simply because they have two conventional open-pit mines in Africa where they're ramping up production. There's one in Namibia, which is the world's fourth largest uranium-producing country. The new mine that they commissioned last year in Malawi is Kayelekera. Paladin's a conventional player with production costs of around $30 a pound; it's a Tier-2 producer at the moment and is looking to expand from there. The company also has development plans in Australia and elsewhere in Africa. They've done quite well-they've proven themselves to be the new player in terms of conventional mining and milling in the uranium sector. TER: Are they approaching [Cameco Corp. (NYSE:CCJ; TSX:CCO)](http://www.theenergyreport.com/cs/user/print/co/173) status?GM: No, not yet. Cameco is fairly substantial, quite diverse; but Paladin is a Tier 2. There are not many Tier 2 producers out there; they include [Uranium One Inc. ( ](http://www.theenergyreport.com/cs/user/print/co/324) [UUU](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UUU&selected=UUU) ) , Paladin and Denison in that fold. TER: Tell us about Denison. GM: Denison is basically a North American uranium producer and also produces vanadium from its Utah operations. It's a higher-cost producer, and certainly the leveraged play in the space. Denison has basically reconstituted itself over the last year and a half in terms of raising equity to minimize long-term debt. They've also brought in KEPCO as a partner- [Korea Electric Power Company ( ](http://www.theenergyreport.com/cs/user/print/co/2211) [KEP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=KEP&selected=KEP) ) . Basically, Denison is slowly ramping up its production in the U.S. They've cut down a few of the higher-cost producing mines to be more prudent in their mining and producing operations. For example, they have a partnership with [AREVA ( ](http://www.theenergyreport.com/cs/user/print/co/171) [CEI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CEI&selected=CEI) ) at the McClean Lake facility in Canada, which is probably going on care and maintenance in July. TER: Why is that?GM: AREVA operates that, so it's largely their decision. . .probably looking toward future prices to see when it comes back onstream. Denison also produces vanadium, and they have a very exciting discovery in the Athabasca Basin-the Phoenix Zone in the Wheeler River joint venture. Phoenix has had some outstanding drill results over the last year. They're aiming to get a resource estimate out on that by the end of 2010. Quite an exceptional discovery, I think. TER: In that same issue of Uranium Weekly, you talk about some in-situ miners. Among your sector outperformers are [Uranium Energy Corp. (NYSE.A:UEC)](http://www.theenergyreport.com/cs/user/print/co/402) , [Ur-Energy (NYSE:URG; TSX:URE)](http://www.theenergyreport.com/cs/user/print/co/525) and [Uranerz Energy Corporation (TSX:URZ; NYSE.A:URZ)](http://www.theenergyreport.com/cs/user/print/co/329) . Tell us about those. GM: Uranium Energy, Ur-Energy and Uranerz are all in the U.S., all looking at in-situ uranium recovery-so no physical mining, all sandstone-hosted. We see near-term production out of all three of the companies. That's this year for Uranium Energy, probably next year for Ur-Energy and late 2011, early 2012 for Uranerz. TER: This year for Uranium Energy?GM: Yes. We're looking at Uranium Energy entering production in October from their Hobson plant and mining from their well fields at Palangana-both in Texas; so, with this timeline, it will effectively be the world's next uranium producing company. It's quite an exciting development for the space and the company. They have another project, Goliad, which could potentially add to their production and should get its final permitting by the end of this year. We like Uranium Energy's lower-cost production base. They're not large but their cash costs are probably around $22, so quite good there. Production scale potentially 1M-2M pounds annually. TER: Has the share price moved in anticipation of production?GM: No, not as yet. TER: Given that its pending production profile hasn't been taken into account, might it be a good buying opportunity?GM: We certainly like them. Our target there is $3.90. They're trading at around $2.40, so we think that offers a good opportunity. They have a number of catalysts going forward and a big exploration plan around their existing resources. They will update their resource estimate in September; production in October. We're looking at getting a second well field project 'Goliad' permitted by the end of the year. A third project called, Seager-Salvo, could have an initial resource estimate by year-end, as well. TER: What about Ur-Energy?GM: Ur-Energy and Uranerz are good peer companies. They're both in Wyoming, and both submitted applications to go into mining around the end of 2007, beginning of 2008. We're looking at production next year for Ur-Energy and early 2012 for Uranerz. Let's go through Ur-Energy. They've got a very good cash position and have the Lost Creek and Lost Soldier deposits. They've been operating from Lost Creek first-they're looking at development there. We're looking at the Nuclear Regulatory Commission ([NRC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NRC&selected=NRC)) ) ultimately providing final permits and licenses to go into production in the second half of this year. It's the same for Uranerz. We're looking at probably starting to build at the end of this year, beginning of next year. Lower-cost producer, small scale. TER: Let's go back to what's happening in Africa. Haywood's research would seem to agree that Africa has a number of promising uranium explorers and developers. Could you talk about some of the juniors Haywood thinks are poised for significant share appreciation?GM: Africa is blossoming as a region for uranium discovery. [Mantra Resources Ltd. (TSX:MRL; ASX:MRU)](http://www.theenergyreport.com/cs/user/print/co/1685) and [Extract Resources Ltd. (TSX:EXT; ASX:EXT)](http://www.theenergyreport.com/cs/user/print/co/2012) have made some genuine new discoveries there over the last year or two. I think the best thing about Africa is the probability of making discoveries that are more easily exploitable in terms of being at or near surface, so they're amenable to open-pit mining. Mantra has an exceptional deposit, the Mkuju River Project in Tanzania. I think the company published its first resource estimate at the beginning of last year. . .more than doubled it within a year and still has the potential to increase that resource. They're looking at production in the second half of 2012. That's a very quick timeline to production. They're still looking at increasing the capacity from their plant and milling operation. We're looking at a modest cash cost of about $25 a pound. Mantra has a lot of positives going forward.Extract made an outstanding discovery at Rossing South in Namibia. This is 6 km. south of the existing Rossing Mine that [Rio Tinto Ltd. (LSE:RIO; NYSE:TP; ASX:RIO)](http://www.theenergyreport.com/cs/user/print/co/184) operates. They have close to 300 million pounds of defined resources, which they identified in rapid time. Their resources are significantly higher grade than the existing Rossing operation and they're looking at expanding on that. It's a world-class discovery, a fact that their share price has reflected over the last 18 months. TER: That's great. Any others?GM: [Bannerman Resources Ltd. (TSX:BAN; ASX:BMN)](http://www.theenergyreport.com/cs/user/print/co/1394) has done a lot of work in terms of defining the Etango deposit, which has about 160+ million pounds of uranium. It's tens of kilometers away from Extract's Rossing South. They're all very close together, and all alaskite-hosted. That means the mining and processing techniques are well known and understood given the long history of mining at the Rossing Mine. The Etango deposit is defined over 6 km. of strike length. It crops out-it's at surface and shallow. Bannerman doesn't have the grade that Extract has, so they're a more leveraged play in the space; but we still like Bannerman in terms of a large strategic resource. We're looking at cost of production in the high $30s or maybe $40 a pound.The big thing there is that they should get their ultimate mining license over the next few months, so they'll be one of only three operations to have licenses to go into production. The big players are looking for resources with potential for large-scale production in areas that allow uranium mining. And that's where Bannerman, Extract and Mantra all come out quite well. TER: Thank you, Geordie, for updating us on all of these exciting developments.Dr. Geordie Mark, a research analyst with Haywood Securities, focuses principally on uranium companies involved in exploration, development and production. He joined Haywood Securities from the junior exploration sector, where he was vice president of exploration for Cash Minerals, which concentrated on uranium and iron oxide-copper-gold targets across Canada. Immediately prior to joining the exploration industry full-time, Dr. Mark lectured in economic geology at Monash University, Australia and served as an industry consultant. He completed his Ph.D. in geology in 1998 at James Cook University's Economic Geology Research Unit in Australia, specializing in aqueous geochemistry and igneous petrology applied to ore-forming systems.Want to read more exclusive Energy Report interviews like this? [Sign up](http://www.theenergyreport.com/cs/user/print/htdocs/38) for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our [Expert Insights](http://www.theenergyreport.com/pub/htdocs/exclusive.html) page. DISCLOSURE:1) Brian Sylvester of The Energy Report conducted this interview. He personally and/or his family own the following companies mentioned in this interview: None.2) The following companies mentioned in the interview are sponsors of The Energy Report: Mega Uranium.3) Geordie Mark: I personally and/or my family own shares of the following companies mentioned in this interview: Paladin Energy. I personally and/or my family am paid by the following companies mentioned in this interview: None.4) As of the end of the month immediately preceding this publication either Haywood Securities, Inc., its officers or directors beneficially owned 1% or more of Mantra Resources.5) Haywood Securities Inc. or an Affiliate has managed or co-managed or participated as selling group in a public offering of Extract Resources, Mantra Resources, Mega Uranium and Uranerz Energy in the past 12 months. Streetwise - [The Energy Report](http://www.theenergyreport.com/) is Copyright © 2010 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.The Energy Report does not render general or specific [investment advice](https://www.nasdaq.com/education/stock-market-where-buyers-and-sellers-meet) and does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report.From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734. Participating companies provide the logos used in The Energy Report. These logos are trademarks and are the property of the individual companies.Streetwise Reports LLCP.O. Box 1099Kenwood, CA 95452Tel.: (707) 282-5593Fax: (707) 282-5592Email: [[email protected]](mailto:[email protected]) Stock Price 4 days before: 24.9994 Stock Price 2 days before: 24.8535 Stock Price 1 day before: 24.854 Stock Price at release: 24.8061 Risk-Free Rate at release: 0.0016	24.9078
Symbol: RDUS Security: Radius Health, Inc. Related Stocks/Topics: Markets\|BHP\|IBM\|ZION\|HOG\|STT\|TXN\|FCX\|CLF\|PEP Title: Dividend Market Wrap for July 20 (IBM, TXN, PEP, HOG, STT, FCX, CLF, more) Type: News Publication: Dividend.com Publication Author: Unknown Date: 2010-07-20 04:12:00 Article: As we dig into the barrage of earnings that have started coming our way, we see that analysts are having a tough time trying to tiptoe around where companies' future earnings estimates should be set at.Currency fluctuations (which we warned readers about several weeks back) were like an anvil that came crashing down on Tupperware's earnings today, as well as the company's weak projected outlook. Besides currency issues there are other factors at play. At some point, companies need to justify stock price growth with growth with growing revenues. Legendary basketball coach Pat Riley would always say, "No Rebounds, No Rings." Well, the same concept applies to the stock market: "No Revenue Growth, No Price Appreciation." Taking a peek at today's action, we saw earnings hit shares of IBM Corp ([IBM](http://www.dividend.com/dividend-stocks/technology/diversified-computer-systems/ibm-ibm-corp/)) ) , Texas Instruments ([TXN](http://www.dividend.com/dividend-stocks/technology/semiconductor-broad-line/txn-texas-instruments/)) ) , and Zion's Bancorp ([ZION](http://www.dividend.com/dividend-stocks/financial/regional-pacific-banks/zion-zions-bancorp/)) ) . Companies bucking the early drop were Pepsico ([PEP](http://www.dividend.com/dividend-stocks/consumer-goods/processed-and-packaged-goods/pep-pepsico/)) ) , Harley Davidson ([HOG](http://www.dividend.com/dividend-stocks/consumer-goods/recreational-vehicles/hog-harley-davidson/)) ) , and State Street ([STT](http://www.dividend.com/dividend-stocks/financial/regional-northeast-banks/stt-state-street-corp/)) ) , all of which traded nicely higher following their results. Commodity-related stocks are back to seeing some bottom-fishers today. Momentum traders adopted many of the volatile plays in the recent years, and continue to be attracted to the volatility in the shares. Names leading the snapback charge included Cliff's Natural Resources ([CLF](http://www.dividend.com/dividend-stocks/basic-materials/steel-and-iron/clf-cliffs-natural-resources-inc/)) ) , Schnitzer Steel ([SCHN](http://www.dividend.com/dividend-stocks/basic-materials/steel-and-iron/schn-schnitzer-steel/)) ) , BHP Billiton ([BHP](http://www.dividend.com/dividend-stocks/basic-materials/industrial-metals-and-minerals/bhp-bhp-billiton-ltd/)) ) and Freeport McMoran ([FCX](http://www.dividend.com/dividend-stocks/basic-materials/copper/fcx-freeport-mcmoran/)) ) . Volume came back off of yesterday's low levels, but we are still logging unimpressive tallies on up days, as opposed to stronger volume on down days.We are looking at our dividend recommendations as well as companies on our watchlist for possible ratings changes, so be sure to look for any alerts we send out in the event the Best Dividend Stocks list is updated.Be sure to visit our complete recommended list of the [Best Dividend Stocks](http://www.dividend.com/dividend-stocks/best-dividend-stocks.php) , as well as a detailed explanation of [our ratings system here](http://www.dividend.com/dividend-stock-rating-system.php) . Created by Dividend.com Stock Price 4 days before: 0.0 Stock Price 2 days before: 0.0 Stock Price 1 day before: 0.0 Stock Price at release: 0.0 Risk-Free Rate at release: 0.0016	0
Symbol: PRDO Security: Perdoceo Education Corporation Related Stocks/Topics: Markets Title: Investors Should Carefully Study the For-Profit Education Model Type: News Publication: SeekingAlpha Publication Author: Unknown Date: 2010-07-20 07:51:00 Article: [Matthew R. Green](http://matthewrgreen.blogspot.com/) submits:Monday witnessed the biggest one-day rally that for-profit education stocks have seen this year, coming on the heels of the sector's three-week old rally. The question of whether the rally can be sustained is complicated, however.Not very much has changed with regard to the fundamentals, which have been driven by uncertainty since the middle of 2009. For-profit education stocks were some of the market's best performers through 2008, when they were viewed as beneficiaries of the recession that has sent many back to school. But serious questions have been raised regarding the for-profit business model and the industry's practices. As we know, questions ranging from the quality of the education they provide to the large amounts of debt their students incur have gotten the attention of Congress, and short-sellers have entered the fray. While it is unlikely that Congress will do nothing, the sector will inevitably continue to be volatile until the dust settles on Capitol Hill. Due to the recent rally and continued uncertainty, it would be wise to wait for another definitive down leg or at least until the technicals of the sector are overextended to initiate a short position. Last month, Congress held hearings on the for-profit sector for the first time since 2002. Among those called to testify was Steve Eisman, who made waves at the Ira Sohn Conference in May with his [presentation](http://www.marketfolly.com/2010/05/steve-eisman-frontpoint-partners-ira.html) about the sector's problems. In this presentation, he compared the for-profits and their growth to that of the subprime mortgage industry, and suggested that the outcome will be similar. Just like the housing market needed more people to take out mortgages to keep growing, the for-profit sector needs to continually increase enrollment (and revenue via federal loans) to beat earnings. One twist, however. Big banks aren't going to be on the hook if it ends in a debacle; the taxpayers will. In fact, he suggested that up to $275 billion of federal loans made to for-profit sector students will end up in default over the next decade. In another alarming statistic courtesy of the Department of Education, while for-profit students make up only 10% of the U.S. higher-education student population, they constitute 34% of the defaults.A clear divide exists among investors concerning the future of the industry and its business model. One of the reasons that Eisman's thesis is notable is the fact that many other hedge fund managers, John Paulson and Stephen Mandel to name a few, have been long the sector.It should come as no surprise that many investors are long. Since Apollo Group ([APOL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=APOL&selected=APOL)) ), the parent company of the University of Phoenix, went public in 1994, it has produced a nearly 4,000% return for investors. However, it is currently down 50% since peaking in April 2004. By any measure, that is a remarkable run. As Congress has begun scrutinizing the sector this year, the stocks have fallen anywhere from 10% to 50%. Since April, the stocks of Apollo Group, DeVry ([DV](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DV&selected=DV)) ), and Corinthian ([COCO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=COCO&selected=COCO)) ) have declined 24%, 29% and 47%, respectively. Whether the current rally sustains or not will largely depend on whether Congress takes action this year to curb the for-profit's lifeblood; federal Stafford Loans and Pell Grants. Apollo Group July 2007-Present(Click to enlarge)[](http://static.seekingalpha.com/uploads/2010/7/19/545720-127958912713937-Matthew-Green_origin.png)Corinthian Colleges July 2007-Present(Click to enlarge)** [](http://static.seekingalpha.com/uploads/2010/7/19/545720-127958923801519-Matthew-Green_origin.png) As early as 1990, congressional hearings were held with the same concerns that exist today. Back then, Senator Sam Nunn of Georgia characterized the industry's primary business as "processing federal student loans." Whether they are from 1990 or 2010, the numbers confirm that statement. In 2009, over 85% of revenue at Apollo Group's University of Phoenix came from federal student loans. The rest of the industry operates with similar percentages of revenue flowing into their coffers from Washington. Any barriers that are raised to limit their access will further impede the industry's ability to grow and meet investor expectations. As such, the industry has assembled an army of lobbyists, and the battle is just beginning.One of the lobbyists' victories thus far was the origin of Monday's rally. The proposed "gainful employment" rule would require that for-profit students are adequately trained in order to attain a job sufficient to pay back their loans. A report from Signal Hill Capital that was released on Monday speculated that the proposed regulations will be "softened." The other mission of lobbyists over the next year will be to maintain the "cohort-default rate." This figure is the primary measure of student loan performance, but it only measures defaults within the first-two years of repayment. According to data from the Dept. of Education (available [here](http://www2.ed.gov/offices/OSFAP/defaultmanagement/cdr.html) ), the default rate is similar among private, public, and for-profit schools within the first two years. The default rate among for-profit students rises much higher than the others from year three of repayment onward. Expect the lobbyists to oppose changes in this rule head-on, so ask to mask their true rate of default. If the true rate was more widely known, it would call into question the return American taxpayers are getting for subsidizing the education, or lack thereof, of students at these institutions. Several for-profit lobbyists have implied or said that that it would be unfair for the government to penalize the for-profit sector because they serve a riskier sector of the population. That is akin to disgraced mortgage lenders saying that it would be unfair to penalize them for originating the "liar" and "ninja" (no jobs, no income) home loans to a risky sector of the population that clearly did not have the ability to pay them back. They further go into arguments that there are "good and bad apples," within the for-profit industry and to penalize the entire sector would be counterproductive. That may be so, but in the case of the housing bubble, for every prudent lender who tried to do it right, like Bill Dallas, there was a Daniel Sadek or Angelo Mozilo who would eventually personify the problems of the entire sector.As we all know, one of the main causes of the housing crisis was the fact that mortgage originators were paid based on the volume of loans they provided to the big banks. In the same way, for-profit school admissions counselors are paid based on the number of students that they enroll.In the May 4, 2010 edition of PBS's Frontline , former University of Phoenix admissions counselors reflected on the high-pressure sales tactics they were required to use to get students to sign off on loans needed for enrollment. One counselor reflected on closing individuals who were clearly not prepared to do college-level work. Despite having basic admissions standards (e.g. a high school diploma or GED), the lack of preparation of many students leads to a much higher dropout rate at the for-profits, and this drives defaults higher as these dropouts are stuck with the debt. For-profit institutions clearly want to maintain their image of providing a necessary service to working class students, despite providing a substandard level of instruction and then expecting them to pay back debts which they cannot handle with the jobs they end up working.Therefore, one of several scenarios could result in an immediate drop in enrollment (translation: profits) at the for-profits. First, if the employment picture improves markedly the number of individuals going back to school will drop. Currently, many of those who are students at for-profits would normally enroll at lower-cost community colleges, but admissions standards have risen in that sector due to the higher demand for spots since 2007-08. If the situation improves, for-profits will no longer have as much overflow capacity to suck up. Second and more likely, if the government limits the for-profits access to federal loans, their enrollments will drop precipitously. The reason is simply because Congress is likely to take the case of predatory student lending much more seriously than some might think. Considering the current deficits being run in Washington, and the fact that U.S. taxpayers are subsidizing these institutions that produce a limited return on the taxpayer's money, a thorough review of their business model and practices is warranted and, more importantly, prudent. Disclosure:** No positionsSee also [QE, Or Not QE, That Is the Question](http://seekingalpha.com/article/219664-qe-or-not-qe-that-is-the-question?source=nasdaq) on seekingalpha.com Stock Price 4 days before: 0.0 Stock Price 2 days before: 0.0 Stock Price 1 day before: 0.0 Stock Price at release: 0.0 Risk-Free Rate at release: 0.0016	0
Symbol: AMSC Security: American Superconductor Corporation Related Stocks/Topics: Markets\|PBW\|CLNE\|FSLR Title: 4 Ways to Profit from the Coming Boom in Alternative Energy Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-20 10:31:00 Article: Love is a fickle thing. When oil prices surged past $100 a barrel in 2008, investors fell madly in love with alternative energy stocks. But when oil prices crashed, and when signs emerged that government budget problems would curtail the industry-friendly subsidies, so did investor ardor for this young industry. The PowerShares Wilderhill Clean Energy Exchange Traded Fund ([PBW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PBW&selected=PBW)) ) slid from $28 in early 2008 to below $10 today.These ups and downs are par for the course in any young industry. Sales initially soar, then the key companies raise loads of cash to aggressively boost capacity -- often times to a point where supply exceeds demand. Prices for items -- such as solar panels and wind turbines in this case -- then plunge, leading investors to assume that profits will never be robust. But it usually just takes time. Eventually, the industry learns to keep capacity expansion at a minimum, demand keeps rising, and prices eventually firm. And that's just what looks to be happening in the field of alternative energy.And even as the industry works out these growth kinks, global policy makers are looking for a fresh round of industry support. U.S. Energy Secretary John Chu is heading up a Washington D.C. conference this week with government ministers and corporate executives from more than 20 countries to accelerate the deployment of clean-energy technologies. Participants are expected to announce new renewable energy and energy efficiency partnerships on Tuesday afternoon.To be sure, some of yesterday's hot stocks won't return to their 2008 heights. That's because they lack a technological edge that will give them the room to boost prices and profit margins. So even as this industry looks set for a rebound in coming years, it pays to stick with the best-of-breed. Here are four companies that are emerging as the leaders in their respective spaces. American Superconductor (Nasdaq: AMSC)This maker of wind turbines and the electronic systems that are the heart of every wind farm has been on a growth tear. Sales have risen at least +60% in each of the past three years, thanks largely to a supply agreement with China's Sinovel, one of the world's largest builder of wind farms.But shares have taken the occasional hit from concerns that Sinovel might stop placing orders. So American Superconductor is now pursuing deals in India, Korea and elsewhere in Asia. Management has recently started to ink new deals, even as Sinovel signed on for another $445 million long-term deal with AMSC in mid-May.Analysts had been lowering their growth assumptions, but have recently started to boost them back up, as Sinovel and other customers step up to the plate. They think sales can rise more than +30% in fiscal (March) 2011, and another +20% in fiscal 2012. That's fueling +30% annual profit growth.Shares, which had moved back up above the $33 mark when the Sinovel new contract was announced, have since shed about -20%. And they now trade for a very reasonable 17 times projected 2012 earnings. First Solar (Nasdaq: FSLR)First Solar is the global leader in the production of thin-film solar, which captures less of the sun's energy than traditional silicon-based solar panels but can be made far more cheaply and also can be deployed in a wider variety of applications. Over the years, the company has managed to steadily cut production costs, pushing prices down below levels where rivals could make money, even if those rivals' technological approach yielded more energy from each solar panel. In 2007, the company was able to build modules for roughly $1.40 per watt of power. That figure breached the $1 mark late in 2008, and could approach $0.75 sometime later this year. The company now spends roughly $100 million per year on research and development.That leading-edge approach led to fast-rising [market share](http://investinganswers.com/term/market-share-778) . Sales doubled or tripled every year from 2003 to 2008, and "only" grew +66% in 2009. Annual revenue now tops $2 billion. But the "laws of bigness" are starting to bite. Sales growth should cool to +25% this year and next. More important, a shift in the [business model](http://investinganswers.com/term/business-model-584) toward the development of massive solar power farms is leading to an apparent reduction in gross margins. So those sales gains are likely to lead to flat profit results. But this is simply a functioning of [accounting](http://investinganswers.com/term/accounting-835) . Once these near-term projects are completed, margins should rebound. So although earnings per share are stuck in the $7 range in 2009, 2010, and 2011, they should soar above $10 by 2012 as margins return to normal on a much higher sales base. Shares have lost half of their value during the past two years as investor enthusiasm toward the industry has waned. But as investors start to look out a few years, they can see a path toward far higher profits, and perhaps, a rebounding stock price. EnerNoc (Nasdaq: ENOC)We profiled this energy efficiency play [back in April](http://www.streetauthority.com/node/1263) , concluding that "thanks to favorable tax breaks for smart-grid investments, the utility industry is expected to keep deploying (the company's) grid-enhancing solutions for the foreseeable future." Yet we cautioned that profits are unlikely to look robust until 2012 or 2013.But investors should stay focused on the top-line, where sales have grown at least +74% in every year since the company began operating in 2004. They should grow close to +50% again this year, and forecasts of +19% growth next year look too conservative in light of sharply rising [backlog](http://investinganswers.com/term/backlog-866) . **Clean Energy (Nasdaq: CLNE) If you're looking for a timely play on the current legislative plans brewing in Washington, then check out Clean Energy, which runs a network of natural gas fueling stations. Just last week, [we touched on](http://www.streetauthority.com/node/456356) the company in our "Winners" roundup, suggesting that "if legislation is passed, shares would quickly move into the $20s." On Monday CLNE closed at $15.59 a share.Natural gas legislation is a double-edged sword for this company. It would love to see demand for natural gas as a transportation fuel meaningfully build. But not to the point where it becomes expensive. Part of the charm of this business model is that it is relatively clean burning and very inexpensive relative to gasoline. The first factor will remain in place, and Clean Energy's boosters hope the second factor will as well. Action to Take -->** Alternative energy is not a fad. It just seemed that way the last 18 months. We don't need to see $100 oil for these business models to really shine. But that wouldn't hurt, either.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/a/4-ways-profit-coming-boom-alternative-energy-456372) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 28.5956 Stock Price 2 days before: 28.2131 Stock Price 1 day before: 28.003 Stock Price at release: 28.1546 Risk-Free Rate at release: 0.0016	27.609
Symbol: CLNE Security: Clean Energy Fuels Corp. Related Stocks/Topics: AMSC\|Markets\|PBW\|FSLR Title: 4 Ways to Profit from the Coming Boom in Alternative Energy Type: News Publication: David Sterman Publication Author: Unknown Date: 2010-07-20 10:31:00 Article: Love is a fickle thing. When oil prices surged past $100 a barrel in 2008, investors fell madly in love with alternative energy stocks. But when oil prices crashed, and when signs emerged that government budget problems would curtail the industry-friendly subsidies, so did investor ardor for this young industry. The PowerShares Wilderhill Clean Energy Exchange Traded Fund ([PBW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PBW&selected=PBW)) ) slid from $28 in early 2008 to below $10 today.These ups and downs are par for the course in any young industry. Sales initially soar, then the key companies raise loads of cash to aggressively boost capacity -- often times to a point where supply exceeds demand. Prices for items -- such as solar panels and wind turbines in this case -- then plunge, leading investors to assume that profits will never be robust. But it usually just takes time. Eventually, the industry learns to keep capacity expansion at a minimum, demand keeps rising, and prices eventually firm. And that's just what looks to be happening in the field of alternative energy.And even as the industry works out these growth kinks, global policy makers are looking for a fresh round of industry support. U.S. Energy Secretary John Chu is heading up a Washington D.C. conference this week with government ministers and corporate executives from more than 20 countries to accelerate the deployment of clean-energy technologies. Participants are expected to announce new renewable energy and energy efficiency partnerships on Tuesday afternoon.To be sure, some of yesterday's hot stocks won't return to their 2008 heights. That's because they lack a technological edge that will give them the room to boost prices and profit margins. So even as this industry looks set for a rebound in coming years, it pays to stick with the best-of-breed. Here are four companies that are emerging as the leaders in their respective spaces. American Superconductor (Nasdaq: AMSC)This maker of wind turbines and the electronic systems that are the heart of every wind farm has been on a growth tear. Sales have risen at least +60% in each of the past three years, thanks largely to a supply agreement with China's Sinovel, one of the world's largest builder of wind farms.But shares have taken the occasional hit from concerns that Sinovel might stop placing orders. So American Superconductor is now pursuing deals in India, Korea and elsewhere in Asia. Management has recently started to ink new deals, even as Sinovel signed on for another $445 million long-term deal with AMSC in mid-May.Analysts had been lowering their growth assumptions, but have recently started to boost them back up, as Sinovel and other customers step up to the plate. They think sales can rise more than +30% in fiscal (March) 2011, and another +20% in fiscal 2012. That's fueling +30% annual profit growth.Shares, which had moved back up above the $33 mark when the Sinovel new contract was announced, have since shed about -20%. And they now trade for a very reasonable 17 times projected 2012 earnings. First Solar (Nasdaq: FSLR)First Solar is the global leader in the production of thin-film solar, which captures less of the sun's energy than traditional silicon-based solar panels but can be made far more cheaply and also can be deployed in a wider variety of applications. Over the years, the company has managed to steadily cut production costs, pushing prices down below levels where rivals could make money, even if those rivals' technological approach yielded more energy from each solar panel. In 2007, the company was able to build modules for roughly $1.40 per watt of power. That figure breached the $1 mark late in 2008, and could approach $0.75 sometime later this year. The company now spends roughly $100 million per year on research and development.That leading-edge approach led to fast-rising [market share](http://investinganswers.com/term/market-share-778) . Sales doubled or tripled every year from 2003 to 2008, and "only" grew +66% in 2009. Annual revenue now tops $2 billion. But the "laws of bigness" are starting to bite. Sales growth should cool to +25% this year and next. More important, a shift in the [business model](http://investinganswers.com/term/business-model-584) toward the development of massive solar power farms is leading to an apparent reduction in gross margins. So those sales gains are likely to lead to flat profit results. But this is simply a functioning of [accounting](http://investinganswers.com/term/accounting-835) . Once these near-term projects are completed, margins should rebound. So although earnings per share are stuck in the $7 range in 2009, 2010, and 2011, they should soar above $10 by 2012 as margins return to normal on a much higher sales base. Shares have lost half of their value during the past two years as investor enthusiasm toward the industry has waned. But as investors start to look out a few years, they can see a path toward far higher profits, and perhaps, a rebounding stock price. EnerNoc (Nasdaq: ENOC)We profiled this energy efficiency play [back in April](http://www.streetauthority.com/node/1263) , concluding that "thanks to favorable tax breaks for smart-grid investments, the utility industry is expected to keep deploying (the company's) grid-enhancing solutions for the foreseeable future." Yet we cautioned that profits are unlikely to look robust until 2012 or 2013.But investors should stay focused on the top-line, where sales have grown at least +74% in every year since the company began operating in 2004. They should grow close to +50% again this year, and forecasts of +19% growth next year look too conservative in light of sharply rising [backlog](http://investinganswers.com/term/backlog-866) . **Clean Energy (Nasdaq: CLNE) If you're looking for a timely play on the current legislative plans brewing in Washington, then check out Clean Energy, which runs a network of natural gas fueling stations. Just last week, [we touched on](http://www.streetauthority.com/node/456356) the company in our "Winners" roundup, suggesting that "if legislation is passed, shares would quickly move into the $20s." On Monday CLNE closed at $15.59 a share.Natural gas legislation is a double-edged sword for this company. It would love to see demand for natural gas as a transportation fuel meaningfully build. But not to the point where it becomes expensive. Part of the charm of this business model is that it is relatively clean burning and very inexpensive relative to gasoline. The first factor will remain in place, and Clean Energy's boosters hope the second factor will as well. Action to Take -->** Alternative energy is not a fad. It just seemed that way the last 18 months. We don't need to see $100 oil for these business models to really shine. But that wouldn't hurt, either.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png)-- David StermanDavid Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More...Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.[StreetAuthority](http://www.streetauthority.com/a/4-ways-profit-coming-boom-alternative-energy-456372) © Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved. Stock Price 4 days before: 15.8045 Stock Price 2 days before: 15.8764 Stock Price 1 day before: 15.3181 Stock Price at release: 15.6338 Risk-Free Rate at release: 0.0016	15.4268
Symbol: ALT Security: Altimmune, Inc. Related Stocks/Topics: SPY\|Markets\|HYD\|GLD\|FXY Title: McCall’s Call: An Anti-Volatility ETF Solution Type: News Publication: IndexUniverse Publication Author: Unknown Date: 2010-07-21 08:05:00 Article: If the CBOE Volatility Index, better known as the VIX, is any indication of the volatility in stocks, the last three months have been tough for investors to handle from day to day. The VIX spiked in May to levels seen only once in the last eight years, suggesting daily moves in stocks will be well above average, and I share that view.Because most indicators suggest we can expect more volatility in the coming months and because I share that view, it's integral that investors build a portfolio with specific ETFs that can combat the daily swings in equities by using exchange-traded products. Playing VIX If you're fairly certain volatility will remain with us for a while and the goal is to make that bet and profit from it, two ETNs are now available to do just that.The iPath S&P 500 VIX Short-Term Futures ETN (NYSEArca:VXX) seeks to replicate the S&P 500 VIX Short-Term Futures Index by investing directly in VIX futures. The ETN will invest in the front-month and second-month contracts and roll out its holdings as each successive futures contract expires.Investors who want an ETN that smoothes out volatility can turn to the iPath S&P 500 VIX Mid-Term Futures ETN (NYSEArca:VXZ) that invests in the fourth, fifth, sixth and seventh month of VIX futures contracts. The ETN also keeps rolling positions to maintain exposure to the appropriate midterm contracts.To give you an idea of how investors would have fared during the last big spike in volatility, I'm highlighting the time frame between April 12 and May 20. During that time, the SPDR S&P 500 ETF (NYSEArca:SPY) lost 10 percent, while the VXX gained 75 percent and VXZ jumped 45 percent. Currencies And Commodities A spike in the VIX will often bring lower equity prices along with it as fear among investors increases. The Rydex CurrencyShares Japanese Yen ETF (NYSEArca:FXY) has long been a safe haven during volatile and uncertain times. During the same time period, as mentioned above, the FXY gained 4 percent and is sitting just below a multiyear high. We own FXY for our clients as one of our volatility-hedge ETFs.Commodity markets are not immune to volatility and can even experience more dramatic swings than equities.However, one commodity in general tends to outperform during times of volatility-and that's gold. The SPDR Gold ETF (NYSEArca:GLD) was able to gain 2.5 percent during the spike in the VIX during April and May.Because gold is considered an alternative to equities and currencies, investors will flock to the precious metal during times of high volatility and uncertainty. Actively Managed And Fixed-Income ETFs Typically I'm not a big fan of actively managed ETFs. But I'll make an exception for the iShares Diversified Alternatives Trust (NYSEArca:ALT). ALT takes long/short positions in currencies, interest rates, commodities, futures contracts and certain stock or bond indexes. As of June 30, some of the largest positions in the trust included long S&P 500 e-Mini futures, short Australia SPI 200 futures, long 90-day sterling futures, short euro and long the U.S. 10-year Treasury note.During the second quarter, ALT was up 0.4 percent versus a drop of 12 percent for the S&P 500.If the goal is to find an ETF that can minimize volatility and at the same time offer the potential for a solid return, I've found the winner:the Market Vectors High-Yield Muni ETF (NYSEArca:HYD).HYD invests 75 percent of its assets in noninvestment-grade junk bonds and 25 percent in investment-grade municipal bonds. The ETF has remained within a 3 percent trading range based on closing prices during all of 2010, helping it meet the low-volatility requirement.So far in 2010, HYD is up 1.5 percent, not including dividends, and the ETF is on pace to give investors a tax-equivalent yield of over 10 percent for the year. Composing The Anti-Volatility Portfolio My anti-volatility portfolio will consist of equal weighting of VXZ, FXY, GLD, ALT and HYD. When backtesting the anti-volatility portfolio in 2010, it makes it clear that investors will outperform an all-equity ETF portfolio with a lot less risk. The S&P 500 has fallen 4.5 percent, while the anti-volatility portfolio increased by 9 percent in 2010 through July 16.Keep in mind that during a bull market the odds will favor an all-equity ETF portfolio, but with the increased potential return comes increased risk. At the end of the day, the most important factor to consider when investing is reward vs. risk.Matthew D. McCall is editor of The ETF Bulletin andpresident of Penn Financial Group LLC, a Ridgewood, N.J.-based wealth management firm specializing in investment strategies using ETFs.[Don't forget to check IndexUniverse.com's ETF Data section.](http://www.indexuniverse.com/data.html?utm_source=nasdaq.com&utm_medium=rss&utm_campaign=data)[Copyright ® 2010 Index Publications LLC](http://www.indexuniverse.com/) . All Rights Reserved. Stock Price 4 days before: 49.7263 Stock Price 2 days before: 49.6895 Stock Price 1 day before: 49.4621 Stock Price at release: 49.4958 Risk-Free Rate at release: 0.0016	50.0829
Symbol: SA Security: Seabridge Gold Inc. Related Stocks/Topics: Markets Title: Big Wheels Keep on Pre-Rolling Type: News Publication: International Business Times Publication Author: Unknown Date: 2010-07-22 09:46:00 Article: Good Morning,Gold prices slipped back under the $1190 level on the heels of yesterday's deflation-tinged remarks by Fed Chairman Bernanke and ahead of the release of European bank stress test results tomorrow. The metal appears caught between those who attempt to load up on some ounces at levels they perceive as relative bargains, and those who believe we have seen the highs for the year and that the bounces to the $1200 and up to the $1220 value zones present selling opportunities as well as cash-raising ones.For the moment, the deflationist crowd appears to have the upper hand, although there is indeed a growing faction of players who are throwing in at least a portion of the golden towel on the perception that the sky will no longer fall in Europe and that is any future crisis can be expected in the US, it might be a deflationary one. That is quite a switch from the positioning intended to avoid the deleterious effects of what was seen as hyper-inflation coming down the road, as well as from the fear-driven, crisis-obsessed safe-haven bids that the yellow metal received in spades in May and June.Let's put a couple of things into perspective here; the euro has rallied more than 8% from a multi-year low recorded just last month. Some of the PIIGS have successfully managed to sell bonds-to the tune of some 50 billion euros, actually. Europe's manufacturing and service sectors have shown signs of expansion.And now, some of the names that were thought to be on a 'do not resuscitate' list when bank stress test results will be announced -names such as the Bank of Ireland, or Allied Irish Bank- will not only not require life support but are seen as quite able to raise the capital they might still need down the road. As Supertramp's (oft-used by doom & gloom economists) album cover asks: "Crisis? What Crisis?"Gold opened with a gain of $1.40 per ounce this Thursday morning, quoted at $1187.50 on the bid side. Silver opened with a 13-cent gain and was quoted at $17.81 per ounce. Platinum and palladium climbed by modest amounts, with the former up $2.00 at $1515.00 and the latter higher by $5 at $450 the troy ounce. A $10 rise was on tap for rhodium, which started the day with a $2140.00 quote on the bid side.Over in the supply/demand picture for the noble metals, platinum producer Lonmin announced this morning that it expects to meet its 700,000-ounce sales target for the year despite the series of furnace failures it has experienced at its facilities over the past three years. On the other side of the noble metals' market equation, our friends at Standard Bank ([SA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SA&selected=SA)) ) report that China's demand for platinum from Switzerland has been declining steadily since the start of the year. However, this situation did change in May, when platinum imports from Switzerland to China jumped. Swiss customs data for June has confirmed China (and HK) have continued to import platinum, with 170,000oz of the metal flowing from Switzerland to China in May and June. China also turned into a net importer of palladium from Switzerland in June. After consistently exporting palladium to Switzerland since December last year, China has imported 11K oz of palladium from Switzerland in June.All of the above were being recorded as against a 0.49 drop in the US dollar on the trade-weighted index but a steady (at $1.286) euro and gains in European equities as well as US stock futures. Growth in the European service and manufacturing sectors as well as better than anticipated British retail sales overpowered Thursday's remarks by Mr. Bernanke that the US economic outlook is 'unusually uncertain.' Only the dollar appeared to take a hit from his observations.The take-away notepad from yesterday's testimony by the Fed Chairman contains a simple but perhaps quite telling statistic: Mr. Bernanke talked about stimulus exit strategies more than about further accommodations (easing) by a factor of ten. Not a misprint. Ten. "Unusual Uncertainties" notwithstanding (the new slogan to replace "extended period?") the message implicit in Mr. Bernanke's words ought to be clear to anyone still deluding themselves about what the Fed might do.It is (still) just a question of when. The lifeblood of the carry-traders is slowly but surely running out. Thus, despite a concrete pledge of a specific date and an exact hour when the exodus from stimulus shall commence, Mr. Bernanke -in effect- pledged that it shall be done. So much for a Fed seen as 'asleep at the wheel' in some circles. And, yes, we disagree with projections that rate hikes from the Fed will not come until 2012.Last week we brought you opinion that the recent lavish attention bestowed upon gold by certain speculative funds was really all about profit and that silly word "contango." Now, Bloomberg cautions -in a lengthy, but excellent expose on ETFs of the commodity ilk- that that silly word is perhaps more sinister than silly. The real silly word award goes to ...drum roll...."pre-rolling." No, not the latest installment in the Cheech and Chong film series. "Contango isn't the only reason commodity ETFs make lousy buy-and-hold investments. Professional futures traders exploit the ETFs' monthly rolls to make easy profits at the little guy's expense. Unlike ETF managers, the professionals don't trade at set times. They can buy the next month ahead of the big programmed rolls to drive up the price, or sell before the ETF, pushing down the price investors get paid for expiring futures. The strategy is called pre-rolling." Read all about the wacky world of commodity ETFs and why you are more likely to lose money than to make it, here: [http://www.bloomberg.com/news/2010-07-22/etfs-imperil-commodity-investors-when-contango-conspires-with-pre-rolling.html](http://www.bloomberg.com/news/2010-07-22/etfs-imperil-commodity-investors-when-contango-conspires-with-pre-rolling.html) And now, in closing, for something completely different: Forum chatter. Underground talk. Speculation intended to explain the perhaps inexplicable. Could it contain kernels of truth? Only The Shadow knows...At any rate, as gold prices were caving last week, one explanation (tendered over at ZeroHedge.com) was that one name -recently seen mentioned in the same line with the word 'gold' -was among the culprits responsible for the drop. Could it be? Well, it turns out, it could -especially when other components of your portfolio are hurting. Here is what was seen on the Internets one day last week:"With a holding of 168 million shares of BAC and 506 million in Citi, Paulson and Co. is down nearly $300 million on just its top two positions alone. When one adds the other top ten positions, which include $3.5 billion worth of GLD, as well as massive positions in ANG, CMCSA, STI, TRE, RIO, BSC, COF, WFC, MGM and many others, it is not surprising that the market is rife with rumors that the once vaunted bearish and now very much bullish (who according to Goldman's carefully crafted settlement press release yesterday, only achieved his subprime-related wealth due to prospectus misrepresentations by Goldman, which is now permanently in the public record) is down about $1 billion for the day so far.Of course, on a NAV of $31 billion this is not all that big, but likely will not help with the recent surge in redemption requests.... Or the need for liquidations. Gold is plunging, and according to market rumors the primary culprit is once again JP, whose GLD holdings that are merely a type of share class (which needs to be indexed lower as the AUM drops) are getting liquidated, pushing spot far lower. "We are not ones for rumours. But. Whether it was "JP" whose fund was bailing, or other ones, the pesky words 'need for liquidations' keeps resurfacing. Kinda like it did in 2008. And when that kind of need arises, much bathwater -and a number of babies as well - are thrown out to meet it. Happy Trading. Watch for choppy conditions to rival a summer flight over Kansas. Jon Nadler****Senior Analyst,Kitco Metals Inc. North America US & Canada Toll Free: 1(877) 839-8036Websites: [www.kitco.com](https://mail.kitco.com/exchweb/bin/redir.asp?URL=http://www.kitco.com/)and [www.kitco.cn](https://mail.kitco.com/exchweb/bin/redir.asp?URL=http://www.kitco.cn/)****Blog: [http://www.kitco.com/ind/index.html#nadler](https://mail.kitco.com/exchweb/bin/redir.asp?URL=http://www.kitco.com/ind/index.html%23nadler) Stock Price 4 days before: 27.1239 Stock Price 2 days before: 24.6132 Stock Price 1 day before: 25.816 Stock Price at release: 26.3078 Risk-Free Rate at release: 0.0015	28.0282
Symbol: XRX Security: Xerox Holdings Corporation Related Stocks/Topics: Markets Title: Xerox (XRX) trade banks on long-term upside Type: News Publication: Karla Yeh Publication Author: Unknown Date: 2010-07-22 12:40:00 Article: Xerox Corp. (NYSE: XRX ) announced positive earnings ahead of the bell on Thursday, and the good news sent the stock on a big rally during morning trading. Call volume out of the gate in the business equipment name suggest an investor expects the stock to climb even higher during the long term.Around 9:59 a.m. EST, more than 10,300 at-the-money (ATM) January 2011 9 calls changed hands for an average price of $1.08 per contract. This price was right at the ask when the volume hit the tape. Current open interest in these ATM calls is 1,000 contracts. It looks like an investor opened long call positions on a bet that XRX shares will be trading higher than $10.80 at January 2011 options expiration. While this breakeven price is lower than the stock's 52-week high, it's interesting that this call buyer expects at least 17% of upside throughout the remainder of the year. If the stock is trading at $10.80 when these calls expire, the investor takes back some of the premium paid. If the stock soars higher and is trading higher than the breakeven price, the investor could make unlimited profits to the upside. Long call trades such as this cap maximum loss at the premium paid, or $1.80 in this particular case. The investor loses the entire debit if the stock drops lower than the strike price.It is possible that this investor tied the options action to a stock position, turning the bullish action into a delta-neutral volatility play. For the purposes of this article, however, we will focus only on the call volume on the tape.Ahead of the opening bell today, XRX announced earnings of 24 cents per share. This figure beat estimates by three cents. In addition, the company issued upside guidance for its fiscal year 2010. During morning trading, XRX climbed 8% to $9.08. The stock is trading roughly 21% lower than its 52-week high of $11.72 reached in April. Stock Price 4 days before: 8.26455 Stock Price 2 days before: 8.13 Stock Price 1 day before: 8.47552 Stock Price at release: 9.2 Risk-Free Rate at release: 0.0015	8.99122

Subsets and Splits