Ford (F) overall option implied volatility of 39 is near its 26-week average of 38, according to Track Data, suggesting nondirectional price movement.

JCPenney (JCP) announced better-than-expected cost controls and sales growth. Overall option implied volatility of 41 is near its 26-week average of 41, according to Track Data, suggesting nondirectional price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: Ford Volatility Flat; Shares Near Four-Month Lows originally appeared on BloggingStocks on Sat, 26 Feb 2011 08:10:00 EST. Please see our terms for use of feeds.

Barnes & Noble, the Gap, RadioShack, and Sears -- that may sound like the lineup at the local mall, but in fact they are just a few of the retailers scheduled to step into the earnings spotlight this week. Following last week's disappointing January retail sales numbers from the Commerce Department but strong fourth-quarter reports from Abercrombie & Fitch (ANF) and Nordstrom (JWN), the coming week will offer plenty more data on the sector for investors to mull over.

Walmart

Bentonville-based Walmart (WMT) offered free holiday shipping, closed its Moscow office and named a chief merchandising officer during its fourth quarter. Analysts surveyed by Thomson Reuters forecast earnings for that period to come to $1.31 per share, up from $1.17 in the same quarter of last year. The world's largest retailer also is expected to post revenues of $117.7 billion for the three months that ended in January. That's 3.5% more than a year earlier.

Continue reading Week in Preview: Walmart, Home Depot and More Retail Earnings

Week in Preview: Walmart, Home Depot and More Retail Earnings originally appeared on BloggingStocks on Sun, 20 Feb 2011 12:30:00 EST. Please see our terms for use of feeds.

On Thursday, Dillard's (DDS) announced that it plans to form a wholly-owned real estate investment trust. The company will transfer some of its properties to the REIT and then lease back the properties from the entity. The company said that the move may enhance its ability to access debt or preferred stock and improve its liquidity.

The market is currently pricing REITs at rich valuations, and the transaction will allow Dillard's to better monetize its significant real-estate assets. By transferring these holdings into a publicly traded REIT, Dillard's should be able to unlock additional shareholder value. According to Craig Johnson, an analyst at Customer Growth Partners, "the sum of the parts can be greater than the sum of the whole."

Continue reading Buy Select Retailers on Dillard's Move into REITs

Buy Select Retailers on Dillard's Move into REITs originally appeared on BloggingStocks on Fri, 21 Jan 2011 11:30:00 EST. Please see our terms for use of feeds.

JCPenney (JCP) January 32 and February 30 puts are active with total call volume of 18K calls, 10K puts. Pershing Square reported a 16.5% stake in the company on October 8th. Overall option implied volatility of 37 is below its 26-week average of 41 according to Track Data, suggesting decreasing price movement.

Amazon (AMZN) February put option implied volatility is at 38, July is at 37; near its 26-week average of 36 into Q4 EPS on January 27, suggesting slightly larger price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: JCPenney Calls Active on Low Volatility originally appeared on BloggingStocks on Fri, 21 Jan 2011 09:30:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Diamond Offshore (DO) to conviction buy from sell and Baker Hughes (BHI) to buy from neutral at Goldman.
• Frontier Communications (FTR) to outperform from market perform at Wells Fargo.
• Syntel (SYNT) to outperform from market perform at Wells Fargo, to buy from hold at Deutsche Bank and to buy from neutral at Janney Capital.
• Kulicke & Soffa (KLIC) and Fiserv (FISV) to outperform from perform at Oppenheimer.
• 3M (MMM) to neutral from underweight and Tyco (TYC) to overweight from neutral at JPMorgan.
• Collective Brands (PSS) and Nordstrom (JWN) to overweight from equal weight, as well as Foot Locker (FL) to equal weight from underweight, at Morgan Stanley.
• Amazon.com (AMZN) to buy from hold at Lazard Capital.
• Yamana Gold (AUY) to outperform from neutral at Credit Suisse.

Continue reading Analyst Calls: APC, AMZN, CME, DO, GPS, H, JCP, JWN, KSS, PM SYNT ...

Analyst Calls: APC, AMZN, CME, DO, GPS, H, JCP, JWN, KSS, PM SYNT ... originally appeared on BloggingStocks on Fri, 07 Jan 2011 11:20:00 EST. Please see our terms for use of feeds.

JCPenney (JCP), first discussed here on April 13, 2009, at a price of $26.52, is set to record a memorable year, from a stock chart standpoint, with the close of 2010.

The stock rose to $33 then dropped in bear-hug fashion to about $19 this summer -- coming too close for comfort to the $17 sell/stop loss, before reversing and vaulting above $30 this autumn. The shares currently trade at/near $33, and given the gyrations, now may be a good time to consider taking some profits off the table with JCP.

Continue reading JCPenney: Time to Take Some Profits off the Table?

JCPenney: Time to Take Some Profits off the Table? originally appeared on BloggingStocks on Wed, 22 Dec 2010 14:00:00 EST. Please see our terms for use of feeds.

JCPenney (JCP - option chain) shares are rising today after the company announced this morning that its same-store sales rose 9.2% in November. Analysts were expecting a jump of only 3.1%. Today's high is up $15.39 from a 52-Week Low of $19.42. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on JCP.

JCP opened this morning at $34.50. So far today the stock has hit a low of $33.89 and a high of $35.00. As of 11:55, JCP is trading at $34.59 up 0.89 (2.6%). The chart for JCP looks neutral and S&P gives JCP a neutral 3 STARS (out of 5) hold ranking.

Continue reading JCPenney Posts Strong November Sales

JCPenney Posts Strong November Sales originally appeared on BloggingStocks on Thu, 02 Dec 2010 13:30:00 EST. Please see our terms for use of feeds.

MSCI Spain Index ETF (EWP) overall option implied volatility of 34 is near its 26-week average of 34, according to Track Data, suggesting non-directional price movement.

JCPenney (JCP) option implied volatility has decreased since Pershing Square reported a 16.5% stake in the company on Oct. 8. Overall option implied volatility of 41 is below its 26-week average of 44, according to Track Data, suggesting decreasing price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: MSCI Spain Index ETF Put Volatility Flat as Fund Trends Lower originally appeared on BloggingStocks on Wed, 01 Dec 2010 08:30:00 EST. Please see our terms for use of feeds.

Last week, Macy's (M) and JCPenney (JCP) kicked off the retail earnings season by posting better-than-expected earnings for the most recent quarter. Many more quarterly reports from retailers are due this week, and by and large expectations of analysts surveyed by Thomson Reuters are high.

Walmart (WMT), the king of retailers, is expected to buck the trend, though. Analysts anticipate that the Bentonville-based company will report that its third-quarter earnings grew only 6.7% year-over-year to 90 cents per share. During the three months that ended in October, Walmart announced an acquisition in South Africa and kicked-off the holiday shopping season, and revenue for that period is predicted to have risen 3.0% to $102.4 billion. Looking ahead to the fourth quarter, analysts so far expect sequential and year-over-year growth of both earnings and revenue. Walmart results have not fallen short of consensus estimates in the past five quarters.

Continue reading Week in Preview: Retailers Offer Up Earnings (WMT, ANF, LOW, TGT)

Week in Preview: Retailers Offer Up Earnings (WMT, ANF, LOW, TGT) originally appeared on BloggingStocks on Sun, 14 Nov 2010 12:30:00 EST. Please see our terms for use of feeds.

Continue reading JCPenney Worth a Look After Q3 Report?

JCPenney Worth a Look After Q3 Report? originally appeared on BloggingStocks on Fri, 12 Nov 2010 14:00:00 EST. Please see our terms for use of feeds.

In the world of retail, JCPenney (JCP) has shown it resilience in a highly competitive sector.

The company said its third-quarter earnings increased 63%, as reported in the Wall Street Journal (subscription required). Net profit came in at $44 million or 19 cents per share, up from $27 million or 11 cents per share a year earlier. Total sales edged up 0.2% to $4.19 billion. Same-store sales rose 1.9%. Shoes and men's apparel were the strongest categories.

Continue reading JCPenney's Third-Quarter Profit Jumps 63%

JCPenney's Third-Quarter Profit Jumps 63% originally appeared on BloggingStocks on Fri, 12 Nov 2010 12:00:00 EST. Please see our terms for use of feeds.

This week, JCPenney (JCP), Kohl's (KSS) and Macy's (M) are the first of the major retailers to report results for the most recent quarter.

Macy's launched an American Express credit card and increased its mobile presence during the fiscal fourth quarter. The analysts surveyed by Thomson Reuters forecast Macy's earnings for that period come to three cents per share, which compares to a net loss of three cents per share in the same period of last year. The Cincinnati-based department store operator is expected to post revenue of $5.6 billion for the three months that ended in October, which is 5.2% more than a year earlier. For the full year, the forecast calls for earnings of $1.50 per share (+6.7%) and $8.2 billion in revenue (+4.3%). Macy's earnings results have been better than expected in recent quarters by a penny or a few per share.

Continue reading Week in Preview: Macy's, Priceline, Others Kick Off Retail Earnings

Week in Preview: Macy's, Priceline, Others Kick Off Retail Earnings originally appeared on BloggingStocks on Sun, 07 Nov 2010 12:30:00 EST. Please see our terms for use of feeds.

You have got to admit that JCPenney (JCP) has been one heck of an interesting stock. Look at the one-year chart. In a short time, the shares have gone from a 52-week low to almost returning to the 52-week high. Simply amazing.

Back in the middle of August, Trey Thoelcke recorded the dip to the nadir. Bad guidance was the culprit. Continuing the narrative, Joseph Lazzaro wrote a bullish piece on the retailer in the latter part of September. And then, on October 8, Brent Archer came up with an option strategy to take advantage of news reporting a significant stock stake in the business taken on by Pershing Square Capital.

Continue reading JCPenney: Buy or Sell?

JCPenney: Buy or Sell? originally appeared on BloggingStocks on Sat, 16 Oct 2010 09:40:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• JPMorgan upgraded Smith Micro (SMSI) to overweight from neutral and raised its price target to $15 from $9, citing the release of a WiFi iPad with MiFi from Verizon and Apple.
• Jefferies upgraded Whole Foods (WFMI) to buy from hold and raised its price target to $45 from $36, citing checks that indicate sales are accelerating and the company has been focused on expense control.
• Wells Fargo upgraded Ensco (ESV) and raised its price target to $54 to $56 from $46 to $47, citing valuation, the lifted deepwater drilling ban and higher oil prices.
• Gran Tierra Energy (GTE) was upgraded to buy from hold at Wunderlich, citing the company's Moqueta oil discovery as well as other near-term exploration opportunities, and raised its price target to $12.50 from $7.00.
• Chico's FAS (CHS) was upgraded to buy from hold at KeyBanc and set a $13 price target.
• UR-Energy (URE) was upgraded to buy from hold at KeyBanc.

Continue reading Analyst Calls: AMSC, CBOE, ERTS, ESV, JCP, PDE, SMSI, TTWO, UAL, WFMI ...

Analyst Calls: AMSC, CBOE, ERTS, ESV, JCP, PDE, SMSI, TTWO, UAL, WFMI ... originally appeared on BloggingStocks on Fri, 15 Oct 2010 12:00:00 EST. Please see our terms for use of feeds.

JCPenney (JCP - option chain) shares are rising today on news that Bill Ackman's Pershing Square Capital reported in an SEC filing that it has taken a 16.5% share of JCP. On the heels of yesterday's September sales increase, the future is looking a little brighter for JCP. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on JCP.

JCP opened Friday morning at $32.24. In morning trading the stock hit a low of $32.14 and a high of $33.88. As of 11:10, JCP was trading at $33.05 up $1.41 (4.5%). The chart for JCP looks neutral and S&P gives JCP a neutral 3 STARS (out of 5) hold ranking.

Continue reading JCPenney Spikes Higher on Pershing Capital Stake Disclosure

JCPenney Spikes Higher on Pershing Capital Stake Disclosure originally appeared on BloggingStocks on Fri, 08 Oct 2010 12:00:00 EST. Please see our terms for use of feeds.

The shares of JC Penney (JCP), first discussed here on April 13, 2009, at a price of $26.52, created jitters among investors this summer, plummeting in bear hug fashion to about $19 from $33, and coming within a couple of points of the sell/stop loss at $17.

However, the selling appears to be over, and although the recent move higher to $24 could be viewed as short-covering, the calculation here is that JCP, a retail survivor, is headed north. Therefore, if you missed the April 2009 buy-in, now would be good to time to consider JCP if you can tolerate moderate risk.

Continue reading The U.S. Recession Ends, and JC Penney Is Still Standing

The U.S. Recession Ends, and JC Penney Is Still Standing originally appeared on BloggingStocks on Mon, 20 Sep 2010 15:00:00 EST. Please see our terms for use of feeds.

Options Update: Newmont Mining Up on Record Gold Prices originally appeared on BloggingStocks on Tue, 14 Sep 2010 17:30:00 EST. Please see our terms for use of feeds.

Continue reading DSW: Buy or Sell After Q2 Report?

DSW: Buy or Sell After Q2 Report? originally appeared on BloggingStocks on Tue, 31 Aug 2010 18:00:00 EST. Please see our terms for use of feeds.

As the earnings season begins to wind down, retail earnings move into the spotlight. Already, JCPenney (JCP), Kohl's (KSS) and Macy's (M) have posted earnings that topped consensus estimates, though the former two also offered disappointing guidance, and Nordstrom (JWN) met earnings expectations.

Many more retailers are scheduled to post their second-quarter results this week, including Walmart (WMT), Abercrombie & Fitch (ANF), and Dollar Tree Stores (DLTR), whose earnings expectations we'll take a closer look at here.

Continue reading The Week in Preview: Earnings from Walmart, Abercrombie and Other Retailers

The Week in Preview: Earnings from Walmart, Abercrombie and Other Retailers originally appeared on BloggingStocks on Sun, 15 Aug 2010 12:30:00 EST. Please see our terms for use of feeds.

JCPenney (JCP) fell to a new 52-week low of $20.20 Friday morning after its second-quarter results included weaker-than-expected full-year earnings estimates.

JCPenney said growth of store and Internet sales, as well as tightly controlling expenses, resulted in record-level gross margins for the period. Earnings totaled $14 million, or 6 cents per share, in the quarter, compared to a loss of $1 million, or break-even per share, in the same quarter of last year. Analysts' estimates were topped by a penny per share.

Continue reading JCPenney Falls to 52-Week Low on Weak Guidance

JCPenney Falls to 52-Week Low on Weak Guidance originally appeared on BloggingStocks on Fri, 13 Aug 2010 11:00:00 EST. Please see our terms for use of feeds.