U.S. stock futures are mixed this morning, as investors await jobless-claims data and earnings
report from Merck (MRK
). Futures on the Dow Jones Industrial Average
rose 7 points to 11,992 and S&P 500 futures fell 0.40 point to 1,299.60. Nasdaq 100 futures fell 3.50 to 2,316.25.
The Dow index gained 1.81 points or 0.02% to close at 12,042 yesterday.
Data on weekly jobless claims and fourth quarter productivity will be released at 8:30 a.m. ET. The ISM report on service sector activity in January and factory orders for December will both be released at 10 a.m. ET.
US retailers such as Wal-Mart Stores (WMT
) are scheduled to report same-store sales for January.
Continue reading Futures Mixed Ahead of Earnings, Economic Data, Retail Sales
- Home Depot (HD) to buy from neutral at Goldman.
- Delta Air Lines (DAL) to buy from neutral at BofA/Merrill.
- Heico (HEI) to outperform from sector perform at RBC Capital.
- Royal Dutch Shell (RDS.A) to outperform from neutral at Credit Suisse.
- MB Financial (MBFI) to outperform from neutral at RW Baird.
- Quest Diagnostics (DGX) to equal weight from underweight at Morgan Stanley.
- Oshkosh (OSK) to neutral from underweight at JPMorgan.
- Volterra (VLTR) and Silicon Laboratories (SLAB) to buy from neutral at Roth Capital.
- Ascena Retail Group (ASNA) to overweight from neutral at Piper Jaffray.
- Cytec Industries (CYT) to buy from hold at Deutsche Bank.
Continue reading Analyst Calls: DAL, CIEN, DGX, HD, IMAX, LOW, OSK, PENN, RDS.A, SWK ...
- Medtronic (MDT) to buy from neutral and 1-800-Flowers.com (FLWS) to neutral from sell at Goldman.
- CarMax (KMX) to outperform from perform at Oppenheimer.
- Points International (PTSEF) to buy from neutral at Merriman.
- Nokia (NOK) to market perform from underperform at Morgan Keegan.
- Amdocs (DOX) to overweight from equal weight at Barclays.
- Western Alliance (WAL) to outperform from sector perform at RBC Capital.
- Carbo Ceramics (CRR) to outperform from market perform at BMO Capital.
- Rackspace (RAX) to buy from hold at Benchmark Co.
- Brinker (EAT) to equal weight from underweight at Morgan Stanley.
Continue reading Analyst Calls: BP, EAT, JBLU, KMX, MDT, MYGN, NOK, NTRS, RAX, RDS.A, T ...
Can you hear me now? Well listen closely, Verizon Communications (VZ
) is going to get a bounce from the Apple Inc. (AAPL
) iPhone in 2011. Nothing you don't already know. Is there a more sure thing in the coming year? Long term it will fade some, but in 2011 the pent up demand has to have a positive impact.
The telephone companies everywhere are going to have a good year. Verizon is a great stock for Roth IRA's, paying a 5.41% yield. The dilution of the iPhone market may hurt AT&T, Inc. (T
) some, as VZ is helped, but it too is a good long term hold and pays an even higher yield at 5.76%.
If you want to diversify internationally there are multiple good choices and they pay even higher yields.
Continue reading Chasing Value: New Years Quick Takes
Could a stock that you made 1,100% on still have room to run? Yes, it is possible. In particular if it had a near death experience as a penny stock for a while.
That is the case with Newcastle Investments (NCT), the CMBS lender and real estate investment company that reached a recent high of $7.10 and has settled back down, most recently hovering between $6.70 to $7.00. It closed Thursday December 23 at $6.71.
Continue reading Chasing Value: 2011 Stock Picks -- Part 2
The list of stocks under consideration has been reduced from eleven to ten, to seven and now in today's story four. Starting with five major defense contractors and six major oil companies (see Chasing Value: You Must Own Defense and Oil for Safety), I began a search to find one stock in each sector that might be suitable for inclusion in my list of 2011 stock picks posted last week Chasing Value: 2011 Stock Picks -- The Journey Begin.
Today we continue our analysis by examining return on equity (ROE), return on invested capital (ROIC), and price-to-earnings-to-growth (PEG). Each stock is ranked by sector and metric from best to worst. Sometimes there are clear winners and others there is little to separate one stock from the next. However, in total, a picture can be drawn that does portray a superior opportunity.
Continue reading Chasing Value: Defense and Oil -- Part 3
We at BloggingStocks and everywhere else make the full gambit of prognostications, suggestions, predictions, guesses, analogies, and so forth in an attempt to improve potential investment opportunities for all our readers and provoke discussion.
All of this has its limits, but, if you are a fan of Professor Nassim NicholasTaleb and his best seller The Black Swan
then you already have been warned that the events that have the greatest impact on our lives and our investments are most often unpredictable. We cannot predict the future nor can we anticipate the tragedies that will tank our portfolio's.
While I do believe predicting the future is, how should I say, futile, there are general clues as to which way the wind blows.
Continue reading Chasing Value: You Must Own Defense and Oil for Safety
It's that time of year when I start thinking about my 2011 stock picks, and enough folks have been nudging me that I might as well get on with it. The list will not be finalized until the end of the month. During the interim time I will take readers through a number of possibilities, explaining the rational for my suggestions along the way and adding and subtracting until I get the list down to ten.
Today I will start by reviewing opportunities discussed in another post and determine which of these stocks might provide the best value. The list was originally cast as a globally diversified, large cap, dividend paying and relatively stable group of companies that would likely weather any storm. See: Chasing Value: Bonds, Gold, Stocks and Capital Flight
Continue reading Chasing Value: 2011 Stock Picks -- The Journey Begins
It certainly is presumptuous, perhaps even self serving of me to assume the market is going higher in the face of so much uncertainty
The reason I hold this belief is that so much money is sitting on the sidelines and much of it is getting restless. It's one thing for those on a fixed income to suffer because the Federal Reserve is keeping interest rates so low, but it is quite another thing to expect $2 trillion dollars of corporate cash to want to live like senior citizens. That cash is a bigger drag on earnings with each passing day.
Continue reading Chasing Value: Bonds, Gold, Stocks and Capital Flight
Jack Adamo, editor of Insiders Plus newsletter, has added to global integrated oil companies to the buy list of his model portfolio: Royal Dutch Shell class B (RDS.B) and PetroChina Company Ltd. (PTR).
The advisor explains, "Royal Dutch is the fifth largest integrated oil company as well as one of the oldest oil companies in the world. And PetroChina is the largest oil company in China. We are adding both stocks to our current model portfolio.
"As for Royal Dutch Shell, the company was poorly managed for a while, which resulted in a huge write-off of assets in 2004. Since that time management has been replaced and the newcomers are doing a good job cleaning up the mess.
Continue reading Oil Favorites: Royal Dutch Shell and PetroChina
- Auriga upgraded Leap Wireless (LEAP) to buy from hold following the company's Q2 results and analyst day, citing valuation, longer-term potential for consolidation and prospects for business improvements. Despite upgrading, the firm lowered its target for shares to $16 from $19.
- Goldman upgraded Barnes & Noble (BKS) to neutral from sell following the company's announcement to explore strategic alternatives. The firm raised its price target to $15 from $12.
- RBC Capital upgraded ESCO Technologies (ESE) to sector perform from underperform following the better-than-expected Q3 report. The firm raised its price target to $30 from $28.
- MetLife (MET) was upgraded to buy from neutral at BofA/Merrill.
- Priceline.com (PCLN) was upgraded to buy from hold at Stifel Nicolaus.
- HSBC (HBC) was upgraded to outperform from underperform at CLSA.
Continue reading Analyst Calls: AMD, BKC, BKS, BP, DOW, HBC, LEAP, LLY, MET, PCLN, ...
Until recently, my largest positions were in financial stocks Citigroup (C), Wells Fargo (WFC) and Bank of America (BAC). As a contrarian investor, I do buy on fear and sell on greed as "my pal Warren" has advised for many years. This has worked out to be very profitable over the past 18 months. However, in the past 30 days the financial stocks have dropped to second place in favor of oil and gas stocks.
I think the economic recovery is moving at a snail's pace, lowering anticipated demand for oil while gas was already depressed based on the same factors and the addition of numerous new large supplies. Add to this the mess in the Gulf of Mexico and the public's already negative sentiment about oil companies and you have the makings of depressed pricing in the sector.
Continue reading Chasing Value: Buffett Must Be Buying Oil
The new joint-venture
formed by Exxon-Mobil (XOM
), Chevron (CVX
), ConocoPhilips (COP
) and Royal Dutch Shell (RDS.A
) as a rapid response system to the Gulf of Mexico oil spill is best characterized as too little, too late.
The companies have initially committed a measly $1 billion to the force. A fund with a starting point of $20 billion-$30 billion would have been more appropriate and practical. The enormity and complexity of the BP's (BP
) Deepwater Horizon oil spill demonstrates how quickly a contain-and-cap operation can shoot over $1 billion. Oil
fell 56 cents to $78.74 per barrel in Friday morning trading.
Continue reading Big Oil's $1 Billion Rapid Response Venture: Too Little, Too Late
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