- Citigroup (C) to outperform from market perform at Bernstein.
- Cubist Pharma (CBST) to outperform from neutral at RW Baird.
- Pentair (PNR) to buy from hold at Citigroup.
- Heritage Financial (HFWA) to outperform from market perform at Keefe Bruyette.
- SL Green Realty (SLG) and Digital Realty (DLR) to market perform from underperform at FBR Capital.
- MGM Resorts (MGM) to neutral from Sell at Janney Capital.
- Ciena (CIEN) to buy from neutral and Olin (OLN) to buy from underperform at BofA/Merrill.
- Mellanox (MLNX) to overweight from equal weight at Barclays.
- ConocoPhillips (COP) and Canadian Natural (CNQ) to overweight from neutral at JPMorgan.
- IDEX (IEX) to outperform from perform at Oppenheimer.
- Taiwan Semiconductor (TSM) to buy from hold at Deutsche Bank.
- Ctrip.com (CTRP) to positive from neutral at Susquehanna.
- Linear Technology (LLTC) and Analog Devices (ADI) to hold from sell at Auriga.
- Quicksilver (KWK) to outperform from market perform at BMO Capital.
iShares MSCI South Korea Index Fund (EWY) April put option implied volatility is at 25, July is at 29; compared to its 26-week average of 27, according to Track Data, suggesting less near-term price movement compared to outer month risk.
CBOE Volatility Index (VIX) closed up 1.53 to 19.44.
Update is by Stock Specialist Paul Foster of theflyonthewall.com.
Just when we thought the banking crisis was finished, we get another jolt. The U.S. Federal Reserve denied Bank of American (BAC) permission to raise its dividend.
If you recall, Bank of America is still struggling to absorb toxic assets it acquired with its purchase of Countrywide Mortgage. It has been on a slow climb back to fiscal health. At the end of 2010 the company was still bleeding, with a net loss of $1.2 billion.
On Wednesday March 2, this investor threw in his two cents worth (see:Serious Money: What Should Warren Buffett Do Next?) discussing possible acquisitions. Since all the "pro's", I use the term loosely, have had a say I thought I would give readers a chance to express some of their ideas too.
- Intel (INTC), ON Semiconductor (ONNN), Lattice Semiconductor (LSCC), Fairchild Semiconductor (FSC), STMicroelectronics (STM) and Altera (ALTR) to outperform from neutral at RW Baird.
- Capital One (COF) to overweight from equal weight at Morgan Stanley.
- Dollar Tree (DLTR) to buy from neutral at Goldman.
- Foot Locker (FL) to buy from neutral at Sterne Agee.
- Progressive (PGR) to buy from neutral at BofA/Merrill.
- Flow International (FLOW) to buy from neutral at Roth Capital.
- Signature Bank (SBNY) to buy from hold at Jefferies.
- HiSoft Technology (HSFT) to buy from neutral at UBS.
- Wells Fargo (WFC) to conviction buy from neutral at Goldman.
- Adobe (ADBE) to buy from neutral at UBS.
- Fifth Third Bancorp (FITB) to outperform from market perform at FBR Capital.
- Vail Resorts (MTN) and Goldcorp (GG) to buy from hold at Deutsche Bank.
- OmniVision (OVTI) to overweight from neutral at JPMorgan.
- Penn Virginia (PVA) to hold from sell at Canaccord.
- Hub Group (HUBG) to outperform from market perform at Morgan Keegan.
United States Oil Fund (USO) closed up 4.3% as WTI Crude futures have traded up 4.37% to $89.38, according to Bloomberg. Traders were focused on short-term February 38 calls. February put option implied volatility of 29 is below its 26-week average of 31 according to Track Data, suggesting decreasing price movement.
Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.
U.S. stocks closed higher yesterday after better-than-expected manufacturing data. The Dow Jones Industrial Average gained 0.43%, while the S&P 500 rose 0.14%. The Nasdaq 100 moved up 0.38%.
U.S. stock futures are mostly higher this morning as investors await earnings reports from several companies. However, shares of Apple Inc (AAPL) dropped in pre-market trading. Futures on the Dow Jones Industrial Average rose 37 points to 11,762.00 and S&P 500 futures gained 2.20 points to 1,292.20. Futures on the Nasdaq 100, however, dropped 12.50 points to 2,307.50.
U.S. markets were closed on Monday for the Martin Luther King Day holiday. Stocks closed higher on Friday, with the Dow gaining 55.48 points, or 0.47%.
The earnings season ramps up this week. Analysts polled by Thomson Reuters foresee strong reports from such big names as Apple (AAPL), eBay (EBAY), IBM (IBM), General Electric (GE), Google (GOOG), Schlumberger (SLB) and Southwest Airlines (LUV). And fast on the heels of last week's big earnings beat from JPMorgan Chase (JPM), there will be plenty more results from the financial sector to peruse this week.
Among the financials expected to post double-digit earnings growth this week are Capital One Financial (COF), Morgan Stanley (MS), SLM Corp. (SLM) and U.S. Bancorp (USB), but the week's biggest earnings winner may be Wells Fargo (WFC).
Here are the next four of my 2011 picks. I am behind schedule, after publishing the first 5 earlier in the week (see: Chasing Value: 2011 Stock Picks -- 5 of 11). This year instead of starting completely anew, I am adjusting my 2010 picks. There is no sense in abandoning good ideas just because the calendar turned a page.
You will actually find support of running themes I have been writing about over the past few months. One of these is the idea of making a contrarian investment in a basket of stocks that have been both scalded and scolded in the headlines. Six stocks were included in such a group that I called the "toxic stocks" (see: Chasing Value: Toxic Stock Update #3 -- BAC, BP, C, GE, GS, RIG).
Looking for a shopping list of new stock ideas for 2011?
Each year for 28 years, TheStockAdvisors.com has turned to the nation's most respected and well-known newsletter advisors and asked them for their favorite investment ideas for the coming 12 months.
With 65 advisors participating in this year's survey, there's something for every type of investor, from high-quality blue chips to speculative home runs.
There are lots of ideas running through my mind as I consider where the economy might be heading in 2011. What opportunities lay in front of us waiting to be picked up or passed over? Just five trading days left, and market activity will slow down except among fund managers making adjustments for tax purposes or window dressing. You should examine your tax situation, too.
In the middle of the summer with the stock market smoldering from the economic aftershocks of the BP (BP) oil spill, I decided to post a contrarian story emphasizing a very common refrain among value investors, "my pal Warren" being head of the class: buy on fear (sell on greed). This notion is continuing to work for what I called the toxic stock portfolio.
This is the third update to my ranting five months ago that six of the most reviled and most highly traded stocks featured by daily bad press as a group would outperform the overall market. It has, with the big winner rising from being one of the biggest losers.
Nobody knows what the future holds. But there are a few things shaping up that suggest certain things will most likely happen. Here are some of the major ones.
Interest Rates: Low at the beginning of the year, then headed higher for a long time. If you have an adjustable rate mortgage and you're still paying it, it's the perfect time to get it refinanced, if you can qualify. Interest rates are definitely going up; it's just a matter of when. As long as the Fed is pumping money in (QE2 is targeted with $800 billion .... with the possibility of more behind it), rates will stay low, unless investors think inflation will get way out of hand. Then rates will go higher no matter what the Fed does as investors sell longer term bonds to beat the coming inflation. Initially, rising interest rates will be bullish as they are a precursor to a healthy economy. But that bull will morph and become a bear when rates start jumping as the Fed tries to get ahead of inflation. Tricky business. Investors will do well to have floating rate assets and fixed rate liabilities.