Option traders appear to be setting up for a bullish move on Cobalt International Energy, Inc. (CIE). Traders plowed into 1,553 new call option contracts -- 4.65 times the average volume -- on the stock on Monday. And we know that traders were eager to get into this trade because 98% of the trades came in on the ask price.

Cobalt just bounced up off of support at $7. The stock closed Monday at $8.25, down 1.32% during the past month.

Continue reading Option Traders Buy Cobalt International Energy Calls and Mirant Puts

Option Traders Buy Cobalt International Energy Calls and Mirant Puts originally appeared on BloggingStocks on Mon, 30 Aug 2010 18:20:00 EST. Please see our terms for use of feeds.

Continue reading Costco's Profit Increases 46% in the Third Quarter

Costco's Profit Increases 46% in the Third Quarter originally appeared on BloggingStocks on Thu, 27 May 2010 10:40:00 EST. Please see our terms for use of feeds.

The Federal Reserve's next Beige Book report is scheduled to be released this week. This report is a compilation of anecdotal information on current economic conditions from each of the 12 Federal Reserve Bank districts, and it is released eight times a year. The data comes from interviews with business contacts, economists, market experts, and other sources. The previous report, released in January, showed some improvement in most districts and growth in consumer spending over the holiday period, though unemployment remained high. The December report showed modest improvement in eight of the districts.

Retailers were in the earnings spotlight last week and for the most part made a strong showing of it. Even as the earnings season winds down, some more retailers are scheduled to release quarterly results this week.

Continue reading The Week in Preview: Fed's Beige Book, More Retail Earnings and Canadian Banks

The Week in Preview: Fed's Beige Book, More Retail Earnings and Canadian Banks originally appeared on BloggingStocks on Sun, 28 Feb 2010 12:00:00 EST. Please see our terms for use of feeds.

Retailers appear to have been rescued at the last minute, according to data from the International Council of Shopping Centers. Shoppers looking for deals the week before Christmas -- and making up for the day lost to stormy weather on the East Coast -- spent aggressively, sparing the retail sector a dismal 2008-like performance.

The healthy conclusion to the holiday season led to a positive change from November and made December one of only three months (including September and October) in which retail sales increased year-over-year.

Continue reading Retailers Post Solid December, but Consumer Still Strapped

Retailers Post Solid December, but Consumer Still Strapped originally appeared on BloggingStocks on Fri, 08 Jan 2010 10:20:00 EST. Please see our terms for use of feeds.

This week, the world's top retailers will tell investors how the much-discussed holiday season went. Analysts expect a year-over-year gain of 1.3% for stores open at least a year, which of course uses a dismal 2008 as a benchmark.

The holiday shopping season is the last chance retailers get to pump up their financial statements before the close of their fiscal year, which usually comes at the end of January. For some retailers, up to 40% of their revenue comes in the weeks heading into Christmas.

Continue reading Retail Results to Come this Week, but Spring Is the Test

Retail Results to Come this Week, but Spring Is the Test originally appeared on BloggingStocks on Sun, 03 Jan 2010 13:20:00 EST. Please see our terms for use of feeds.

Food stamps are pumping up revenue at retailers across the country. Costco (COST), Wal-Mart (WMT) and others are seeing rushes an hour before funds are credited to electronic benefits transfer cards. Wal-Mart's CFO, Tom Schoewe, has noted the trend, telling Reuters, "Once the clock strikes midnight [on the last day of the month] and EBT cards are charged, you can see our results start to tick up."

Spending via EBT is not only increasing, it generally happens quickly. JPMorgan (JPM), which runs EBT programs for more than 20 states, reports that buyers run through 85% of food stamp funds within the first three days of their availability.

Continue reading Retailers See Market Opportunities Below the Poverty Line

Retailers See Market Opportunities Below the Poverty Line originally appeared on BloggingStocks on Mon, 21 Dec 2009 08:20:00 EST. Please see our terms for use of feeds.

Continue reading Costco (COST) reports weak November sales

Costco (COST) reports weak November sales originally appeared on BloggingStocks on Thu, 03 Dec 2009 13:30:00 EST. Please see our terms for use of feeds.

Consumer borrowing fell for the eighth straight month in September. This record-setting streak is due largely to tightening by lenders, unemployment and the conservative preference to pay down debt rather than spend. This widespread fit of fiscal responsibility, economists fret, could prevent a recovery from taking root, since consumer spending is responsible for 70% of the U.S. economy. This conventional thinking, of course, overlooks the fact that an eventual increase in spending that isn't fueled by consumer spending will yield a recovery that's more likely to last.

According to the Federal Reserve, borrowing fell at an annual rate of $14.8 billion in September -- it's biggest drop since July and much larger than the $10 billion predicted by economists. The behavior is exactly what you'd find in people worried about losing their jobs or focused on rebuilding safety funds and investment portfolios. Those who want to borrow are finding banks won't be complicit this time, as they clamp down on lending practices.

Continue reading Consumer spending falls victim to debt repayment

Consumer spending falls victim to debt repayment originally appeared on BloggingStocks on Sat, 07 Nov 2009 11:20:00 EST. Please see our terms for use of feeds.

There's a chill in the air and a slight up-tick in confidence. Holiday discounts are coming a bit earlier, too. For retailers, this has been a great combination, leading to the second consecutive month in which retail sales increased.

This follows more than a year of drops. Consumers aren't going crazy, but they are loosening their wallets a little bit. Consumer spending accounts for 70% of the U.S. economy, and the coming holiday season is where the action is -- for the retail sector and, consequently, for everyone else.

Continue reading Retail sales: Signs of life, but not yet a rising tide

Retail sales: Signs of life, but not yet a rising tide originally appeared on BloggingStocks on Fri, 06 Nov 2009 11:40:00 EST. Please see our terms for use of feeds.

Continue reading Costco to start accepting food stamps at all U.S. locations

Costco to start accepting food stamps at all U.S. locations originally appeared on BloggingStocks on Thu, 29 Oct 2009 17:00:00 EST. Please see our terms for use of feeds.

In the wake of COST's report, analyst Brian Sozzi of Wall Street Strategies reiterated his Buy rating and $66 price target on the equity. "In our view, 4Q09 will go a long way in supporting a higher valuation for Costco," wrote Sozzi in a research note this morning. "The company has managed to control costs, drive traffic to its warehouses consistently throughout the economic downturn, paid $300 million in annual dividends in FY09 (payout ratio of 26.0% second to only Wal-Mart in the sector), and has catalysts on the horizon to showcase earnings power above currently modeled for consensus EPS."

Continue reading Costco Wholesale surges after topping 4Q expectations

Costco Wholesale surges after topping 4Q expectations originally appeared on BloggingStocks on Wed, 07 Oct 2009 14:20:00 EST. Please see our terms for use of feeds.

Costco's (NASDAQ: COST) profits are off 6% for its fiscal fourth quarter. A stronger dollar and increased employee benefits costs are cited as the reasons. Nonetheless, the retailer did beat analyst expectations.

The company, which operates warehouse clubs, pulled in earnings of $374 million (85 cents per share) for the quarter ending August 30, 2009. While this is down from $398 million (90 cents per share) a year earlier, it was good enough to top the 77 cents per share that analysts polled by Thomson Reuters had forecast.

Continue reading Costco beats the Street, though earnings declined

Costco beats the Street, though earnings declined originally appeared on BloggingStocks on Wed, 07 Oct 2009 10:40:00 EST. Please see our terms for use of feeds.

Continue reading Costco Wholesale (COST) stumbles on Q3 earnings

Costco Wholesale (COST) stumbles on Q3 earnings originally appeared on BloggingStocks on Thu, 28 May 2009 12:40:00 EST. Please see our terms for use of feeds.

This post is part of a series featuring bargain stocks that are worth a look now. See more Cheap Stocks.

In troubled economic times, it seems like a no-brainer that discount retailers will fare better than their mid-market competitors. Of the discount group, Costco Wholesale (NASDAQ: COST) garners extra points for its brand recognition, broad geographic reach, and dedication to its customers.

Speaking of customer service, I recall being mildly shocked earlier this year upon reading this BusinessWeek article, which alleges that Costco often chooses to cater to its customer base rather than pleasing its investors. Amid skyrocketing commodity costs in July, the mega-retailer warned of a quarterly earnings shortfall, because of a reluctance to hike its own prices and potentially alienate its customer base.

I'm no CEO, but to my mind, the happiness of Costco's investors is directly pegged to how satisfied its customers are. If shoppers are turned off by price increases and take their business over to, say, Sam's Club -- what have the investors won? It takes a clear-headed management team to consider the long-term effects on its core customer base over the short-term demands of frustrated traders.

Continue reading Cheap Stocks: Costco Wholesale

Cheap Stocks: Costco Wholesale originally appeared on BloggingStocks on Sun, 07 Dec 2008 15:10:00 EST. Please see our terms for use of feeds.

"While many firms are struggling to survive, a lucky minority are built to weather the storm better," says growth stock specialist Karim Rahemtulla. In Xcelerated Profits Report, he eyes Costco Wholesale (NASDAQ: COST).

"Thanks to rising inflation and unemployment, coupled with a beaten-up economy, many retailers are braced for a harsh new reality this holiday season.

"Consumers have much tighter budgets and are cutting back on whatever they can. And that's where some 'one-stop' retailers like Costco can really take advantage.

"Although customers are more likely to avoid the electronics and other non-necessity stocking sections of the store these days, they still need to eat.

"So while other non-food departments are seeing a sales slowdown, Goldman Sachs recently reported that Costco is likely to enjoy strong food sales, which offset that.

"Goldman also noted that Costco boasts a strong balance sheet, with almost $3.3 billion in cash on the books, plus ample liquidity - factors that could encourage management to implement a stock buyback program.

"Compared to other retailers who are flat-out dreading this holiday season, that puts Costco in a strong position.

"And because the store has such a diverse range of products, all under one roof and available at bargain prices, Costco is one firm better prepared to ride out what could be a brutal season for retailers."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

Costco (COST): Built to 'weather the storm' originally appeared on BloggingStocks on Fri, 28 Nov 2008 15:15:00 EST. Please see our terms for use of feeds.

"I've always been a big fan of putting into the market on a regular basis regardless of what is happening in the overall market," explains Chuck Carlson, long considered one of the advisory industry's leading experts on dividend reinvestment plans.

Here, the editor of The DRIP Investor offers a 10-stock "autopilot" portfolio that is diversified among 10 high quality dividend-paying stocks and requiring a monthly investment of under $500.

Carlson says, "If I've learned anything in the more than a quarter of a century of following the markets, it is this fact - buying stocks when you know you should (i.e. during sharp down moves) is really difficult. Our heads says we should; after all, substantial market downturns create the best values.

"But our emotions usually take control, thus making it very difficult to pull the trigger and put money into the market when stocks are falling.

"That's why I've always been a big fan of 401(k) plans. With these investment vehicles, investment programs are put on 'autopilot,' with dollars being put into the market on a regular basis (usually each paycheck) regardless of what is happening in the overall market.

"Fortunately, investors can duplicate the autopilot feature of 401(k) plans with their DRIP investments by taking advantage of automatic monthly investment features provided by most DRIPs.

Continue reading 'Autopilot' portfolio: 10 stocks for long-term investors

'Autopilot' portfolio: 10 stocks for long-term investors originally appeared on BloggingStocks on Fri, 15 Aug 2008 17:44:00 EST. Please see our terms for use of feeds.

The details are worth knowing. Wal-Mart sales at stores open at least a year gained 3% while Costco's climbed 10%. Limited, the owner of the Victoria's Secret lingerie chain suffered a 5% decline. But Wal-Mart's results -- while strong -- were disappointing to investors who expected 3.4% growth. What is driving this increasing budget-consciousness? The beginning of back-to-school shopping, the suspension of sales taxes in some states, $4 a gallon gas, 9.6% inflation and seven months of job losses are all combining to push shoppers to discounters and away from pricier retail outlets.

Continue reading $4 gas sends Wal-Mart, Costco up; Limited down

$4 gas sends Wal-Mart, Costco up; Limited down originally appeared on BloggingStocks on Thu, 07 Aug 2008 09:20:00 EST. Please see our terms for use of feeds.

Costco warns of quarterly profit that will be 'well below expectations' originally appeared on BloggingStocks on Wed, 23 Jul 2008 10:36:00 EST. Please see our terms for use of feeds.

The Associated Press reports that a "Depression Era" mentality is taking hold among consumers. This matters to the overall economy since 70% of Gross Domestic Product (GDP) growth depends on consumer spending. Maybe this is good news because it will make people care more about spiritual matters, and less about material ones.

AP bolsters its consumer mentality shift with excerpts from a Nielsen survey that interviewed 50,000 consumers by e-mail during the first week of June. The survey found that

• 63% of consumers are cutting spending due to rising gas prices, up 18 percentage points from a year ago;
• 78% of consumers are combining shopping trips;
• 52% are eating out less often;
• Consumers are cutting more coupons;
• They do more of their shopping at super centers; and
• They buy less expensive brands.
  

Continue reading A 'Depression Era' mentality takes hold of consumers

A 'Depression Era' mentality takes hold of consumers originally appeared on BloggingStocks on Sun, 20 Jul 2008 17:45:00 EST. Please see our terms for use of feeds.

"Finding its way onto the short-term bullish list is discount retailer Costco Wholesale (NASDAQ: COST), our 'focus stock of the week'," says Chris Johnson in his contrarian advisor service, Insightful Investor.

"The warehouse giant is currently seeing a positive mix of technical strength along with growing pessimism that makes it a potential outperformer. Costco is one company that has maintained a level of demand not seen throughout the bulk of the retailing sector.

"COST's core business, which caters to small businesses and households willing to buy in bulk, has maintained strength despite the slowing economy. In fact, the company's latest earnings report, released March 5, beat analyst expectations by 23%.

"Reflective of its fundamental strength, COST's stock price has remained a relative strength leader by trading above its 50-day moving average. The equity has outperformed not only most of its peers in the retail group, but the overall market as well.

Continue reading Costco: 'Best of breed' discount retailer

Costco: 'Best of breed' discount retailer originally appeared on BloggingStocks on Thu, 17 Apr 2008 16:58:00 EST. Please see our terms for use of feeds.