Archive for the ‘Stocks On The Move’ Category

Amazon A Possible Buy On Disapointing Forecast

Apr 23, 2010 Company News, Earnings, Stock Market, Stock to watch, Stocks On The Move, Trading Idea

Yesterday after the bell, online retailer Amazon (AMZN) reported better than expected 2010 Q1 revenue of $7.13 billion, against estimates of $6.87 billion and net income of $299 million or $0.66 per share, against forecasts of $0.61 per share.

Tempering the better than expected earnings news, the company reported that it expects operating profits for the 2010 Q2 period of $220 million to $320 million on revenue of $6.1 billion to $6.7 billion against forecasts of $6.43 billion in revenue and $327.8 million in operating profit.

On those forecasts, the company’s stock was sold off in after-hours trading, tradiing as low as $139.50 overnight. Fifteen minutes before the opening bell, the stock has recovered somewhat and is now only down $4.92 to $145.17.

Traders might want to watch the stock and if it continues to improve, go long the shares. That the stock is not down substantially could be a bullish sign and we may actually see it close higher today if the overall market is in bullish mode. If buying the stock, do so only if it is moving off the current lows of $145 and make this a one day trade, exiting the position today.

More on this topic (What's this?)
Your Cheat Sheet to Amazon’s 2nd Quarter Earnings (Wall St. Cheat Sheet, 7/21/10)
Amazon Inc (AMZN): Prices Could Go Down To $100 (Short-Term Trading, 4/18/10)
First Printing of ECONNED Sold Out Pre-Release (naked capitalism, 2/24/10)
Read more on Amazon.com at Wikinvest

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Stock To Watch – Phillips Van Heusen

Apr 22, 2010 Stock to watch, Stocks On The Move, Technical Analysis

On March 15, shares of apparel company Phillips Van Heusen (PVH), gapped higher at the open, starting the day at $52, from the prior day’s close of $47.74. The stock advanced on news that the company was acquiring Tommy Hilfiger. Since then through yesterday, the stock has risen an incredible 25.26%, dramatically outpacing the overall stock market.

The shares gave up some of those gains in the three sessions prior to yesterday, closing lower on Friday, Monday and Tuesday.

Yesterday, the stock turned around and broke above a very short-term trading range and it looks like we may see another wave of continued upside moves.

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Goldman and Google Send Stocks Crashing

Apr 16, 2010 Company News, Stock Market, Stocks On The Move

2010 Q1 results from Google (GOOG) after the bell yesterday, and news that the Securities and Exchange Commission is suing Goldman Sachs (GS) for fraud, sent the stock market into a tailspin today.

Google reported that for the Q1 period ending March 31, it had revenues of $6.775 billion and net income of $1.955 billion or $6.06 per share on a diluted basis, $6.76 on a non-GAAP basis. This actually beat Wall Street analysts’ consensus estimates, which were $4.95 billion on the revenue side and $6.60 on a per share basis. However, some analysts were looking for Google to exceed a “whisper” EPS of $6.76 per share.

Stocks opened a tad lower, with the Dow opening down just 0.91 points, on Google concerns, but by 10:18, we were back up in positive territory, although we saw a mild reversal again to the downside. Then at about 10:40am, the market was hit with the news that the SEC is suing Goldman Sachs for fraud.

The SEC is charging Goldman Sachs “for making materially misleading statements and omissions in connection with a synthetic collateralized debt obligation (“CDO”) GS&Co structured and marketed to investors.” According to the SEC, “this synthetic CDO, ABACUS 2007AC1, was tied to the performance of subprime residential mortgage-backed securities (“RMBS”) and was structured and marketed by GS&Co in early 2007 when the United States housing market and related securities were beginning to show signs of distress.”

In otherwords, the SEC is alleging that Goldman Sachs sold faulty products that it knew or should have known is faulty.
Furthermore, the SEC is charging that hedge fund company Paulson and Co, which was part of the CDO’s portfolio selection process, helped Goldman pick the specific mortgage securities that made up the CDO, but then Paulson and Co then turned around and bought puts (protection against downside moves) on certain aspects of the CDO. From the SEC’s standpoint, being that Paulson was in effect short the portfolio, it was in its interest to select components to go into the CDO, that it knew would experience credit events in the future, in which case, Paulson would profit.

The SEC further charges that Fabrice Toure, the Goldman Sachs employee who devised the transaction, misled ACA Management LLC (“ACA”), an outside third-party that analyed the credit risk in the underlying residential mortgage-backed securities, into believing that Paulson invested about $200 million in the CDO, when this was not the case.

Google lost $45.15 or 7.59% to close at $550.15, while Goldman Sachs was off $23.57 or $12.79%, to close at $160.70.

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Stock Of The Day – Wynn Resorts

Mar 22, 2010 Stock to watch, Stocks On The Move

Shares of casino operator Wynn Resorts (WYNN) rallied 6.68%, on a $4.79 climb to $76.54 in the stock. The stock also hit a new 52 week high of $76.89 intra-day, with today’s action.

WYNN rallied because investment bank Sanford C. Bernstein, raised its price target on Wynn competitor Las Vegas Sands (LVS) to $24, from $22. Las Vegas Sands’ shares were up $1.93 to $21.43, a 9.90% gain.

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Stock Of The Day – Cliffs Natural Resources

Mar 16, 2010 Stock to watch, Stocks On The Move

Shares of Cliffs Natural Resources (CLF) continue to make new 52 week highs almost everyday, with a new high being set intra-day today, at $66.97. Cliffs Natural Resources at 2:10pm is up $2.15 to $63.30, a 4.99% gain. There is no news out on the company.

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Stocks On The Move – 03/15/10

Mar 15, 2010 Company News, Stock to watch, Stocks On The Move

Shares of Google (GOOG) dropped $16.36 to $563.18, on concerns that the company might pull out of the Chinese market, as it doesn’t seem likely that the Chinese government is willing to give in on its censorship rules for internet companies.

Google’s shares dropped backed in January, after the company revealed that hackers had gained access to the Google email accounts of rights activist in China. The sophistication of the breach led to speculation that the Chinese government was behind the attacks, leading to concerns then that the company would give up the China market.

Google’s Chinese competitor Baidu (BIDU), rose $26.60 to $576.84 on the Google news, as it would be the most likely beneficiary of Google pulling out of the Chinese market.

CNX Gas Corporation (CXG) rallied $4.23 to $30.46 for 16.13%, after its parent company Consol Energy (CNX) said it is considering buying the CNX gas shares that it does not already own. Consol Energy was off 10% on the news, with a $5.48 decline to $48.85.

Shares of Amylin Pharmaceuticals (AMLN) were up $3.24 to $23.50, a nice gain of 15.99%, after the company revealed that the Food and Drug Administration had issued a complete response letter regarding the New Drug Application (NDA) for BYDUREON(TM) (exenatide for extended-release injectable suspension) to it and its development partners for the drug, Eli Lilly and Company (LLY) and Alkermes (ALKS).

Because the letter makes no request for new pre-clinical or clinical trials, it is assumed that the FDA is reviewing the drug favorably. LLY rose $0.08 to $36.01, while ALKS was up 41.80 to $14.01.

Business software maker Chordiant Software (CHRD) was up $1.18 to $4.99, a 30.97% gainer, on a buyout offer from Pegasystems (PEGA). Pegasystems will acquire the company for $5 per share or $161.5 million in an all cash deal.

Pegasystems rose $2.47 to $39.30 on the news. The deal is expected to close in the second quarter this year. A month ago, Chordiant rejected a $3.46 per share offer from CDC Software.

Apple (AAPL) was off $2.76 to $223.84, as technology shares came under pressure on the Google/China news.

Oil and gas producer Apache Corp (APA) was down $2.53 to $104.35 on a downgrade to Equal Weight, from Overweight by Morgan Stanley. Lower oil prices also weighed on energy shares.

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Phillips Van-Heusen Buying Tommy Hilfiger

Mar 15, 2010 Company News, Mergers & Acquisition, Stocks On The Move

Apparel company Phillips Van-Heusen (PVH), which is well-known for its namesake shirts, as well as several other well-known brands, including Calvin Klein, Izod, Bass, and Nautica among others, today announced that it is purchasing Tommy Hilfiger from Apax Partners for approximately $3 billion and the assumption of about $136 million in liabilities.

According to the company, “The combination will create one of the world’s largest and most profitable apparel companies; a global business with combined revenue of approximately $4.6 billion.”

With the purchase, Phillips Van-Heusen expects to realize about $40 million in annualized cost synergies. The company also expects that the deal will be immediately accretive to earnings before one time costs and accounting charges, with an earnings accretion of  $0.20 to $0.25 per share on a non-GAAP basis in the 2010 fiscal year ending January 30, 2011 and earnings accretion of $0.75 to $1.00 per share in the 2011 fiscal year ending January 29, 2012.

The deal was very well-received by Wall Street, with traders sending Phillips Van-Heusen shares up $4.66 to $52.40, for a 9.76% gain on the day. 

Apparel company Phillips Van-Heusen (PVH), which is well-known for its namesake shirts, as well as several other well-known brands, including Calvin Klein, Izod, Bass, and Nautica among others, today announced that it is purchasing Tommy Hilfiger from Apax Partners for approximately $3 billion and the assumption of about $136 million in liabilities.

 

According to the company, “The combination will create one of the world’s largest and most profitable apparel companies; a global business with combined revenue of approximately $4.6 billion.”

 

With the purchase, Phillips Van-Heusen expects to realize about $40 million in annualized cost synergies. The company also expects that the deal will be immediately accretive to earnings before one time costs and accounting charges, with an earnings accretion of  $0.20 to $0.25 per share on a non-GAAP basis in the 2010 fiscal year ending January 30, 2011 and earnings accretion of $0.75 to $1.00 per share in the 2011 fiscal year ending January 29, 2012.

 

The deal was very well-received by Wall Street, with traders sending Phillips Van-Heusen shares up $4.66 to $52.40, for a 9.76% gain on the day.

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St. Jude Medical Up 6%

Mar 15, 2010 Company News, Stock to watch, Stocks On The Move

St. Jude Medical (STJ) is the best performing stock in the S&P 500, in early trading. The shares are up $2.25 or 6.00%, to $39.75.

The company today announced that it had entered into a new marketing agreement with Siemens Medical Solutions, for its wireless PressureWire(TM) Aeris product, which is used for FFR measurements, which indicate the severity of blood flow blockages in the coronary arteries. The company also announced the availability of the next-generation of PressureWire(TM) Certus technology.

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Potash Corp Shares Could Be A Buy At Current Levels

Mar 12, 2010 Company News, Earnings, Stocks On The Move, Technical Analysis

Fertilizer maker Potash Corp of Saskatchewan (POT) added $8.34 or 7.13% to $125.27 on Friday March 12, after the company on Thursday evening, raised its current (first) quarter guidance to $1.30-$1.50 per share, which is a substantial improvement from the company’s own very recent estimates of $0.70-$1.00 per share, that was provided just six weeks ago, on January 28.

With analysts bound to question why the company would revise so sharply in so short a period, the company’s explanation was, “the upward revision reflects a sharp rebound in potash demand that is expected to drive a record quarter for North American sales volumes and strong offshore shipments, as well as higher-than-expected margins in nitrogen and phosphate.”

The dramatic improvement in the company’s fortunes, make the shares a buy, although we are now against resistance, with a double top formation in play at current levels. As such, we would look for a break above current levels, before going long the shares.

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Stock to Watch – Citigroup

Mar 12, 2010 Stock to watch, Stocks On The Move

Citigroup’s (C) beleaguered stock, which has severely under-performed the broader markets, has been on a tear (relatively speaking) the past four days. The stock has advanced from a close of $3.50 on March 5, to a close of $4.18 on Thursday March 11, with a higher close each day.

On Tuesday, the stock rallied 7.9% from $3.55 to $3.82 on no apparent news. On Wednesday, the stock extended its gains after the company priced some Trust Preferred Securities or TruPs, that were very well received.

While Citigroup offered only $2 billion worth of the securities at an initial rate of 8.875%, demand was so strong, with orders for the securities exceeding $5 billion, that Citigroup lowered the interest rate to 8.625% and then a final rate of 8.50%.

This suggests that the worst might be over for the bank and as a results, investors are buying the shares.

In a strong market, Citigroup shares are a buy. However, traders need to be cautioned that the stock is now right up against resistance. So while new buyers might be coming in, with the recent rally in the stock, which would send the shares higher, we may also see some pull back on some profit taking.

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