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Put Spread Players Target Cree

Semiconductor specialist Cree Inc. (CREE) was targeted by bearish bettors on Tuesday. During the course of the session, put volume on the shares rose to 1.75 times the usual level, with roughly 16,000 of these skeptically skewed contracts crossing the tape.

Data from the International Securities Exchange (ISE) confirms a downbeat bias to the day's options trading. On Tuesday, speculators on the ISE bought to open 3,193 puts on CREE, compared to just 643 calls. The equity's single-day ISE put/call volume ratio stands at 4.97, revealing that bearish contracts were nearly five times more popular than their bullish counterparts.

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Wall Street Awaits Q2 Earnings from Apollo Group

Earnings season is winding down, but there are still a few companies that have yet to take their turn in Wall Street's spotlight. Ahead of Monday's opening bell, for-profit education issue Apollo Group, Inc. (APOL) is scheduled to unveil its fiscal second-quarter results.

Analysts surveyed by Thomson Reuters are expecting Apollo to report a profit of 81 cents per share, up from 77 cents per share in the year-ago quarter. Sales for the period are projected to arrive at $1.07 billion.

Continue reading Wall Street Awaits Q2 Earnings from Apollo Group

Can Crocs Continue Its Quest for New Highs?

On Thursday, the shares of Crocs, Inc. (CROX) shuffled to a new 52-week high for the second time in as many sessions. The equity topped out at $8.47 on an intraday basis, marking its best price since July 2008. But with the stock hovering near a 20-month peak, can the shares continue to climb -- or are they due for a pullback?

If today's drop of more than 2% is any indication, it seems that CROX's positive momentum is cooling. The stock's Relative Strength Index (RSI) stands at 63, not far from overbought territory, so this modest retreat isn't terribly surprising.

Continue reading Can Crocs Continue Its Quest for New Highs?

What's in Store for SunPower After Earnings?

After the closing bell, SunPower Corporation (SPWRA) will take the spotlight to reveal its fourth-quarter earnings. Analysts surveyed by Thomson Reuters are expecting the solar concern to report net income of 49 cents per share, down from its year-ago profit of 70 cents per share. Sales for the period are expected to arrive at $491 million.

SunPower has a solid history in the earnings spotlight, having exceeded Wall Street's consensus expectations in three of the past four reporting periods. Judging by a recent uptick in call buying, some traders appear to be anticipating another upside surprise.

Continue reading What's in Store for SunPower After Earnings?

Human Genome Sciences Sags on Downbeat Drug Data

Human Genome Sciences (HGSI) slipped into the red right out of the gate Wednesday morning, as traders reacted to the company's latest round of clinical drug data. HGSI said that its experimental lung cancer drug, mapatumumab, was well-tolerated by patients in a study, but the drug fared no better than a placebo in disease response or progression-free survival.

Full results of the study will be presented "at an appropriate scientific meeting later in 2010," according to a company release.

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Comerica Selling Stock to Repay TARP Debt

Regional banking issue Comerica (CMA) is in focus today, after announcing last night that it will sell $800 million in common stock in order to repay its debt to the U.S. government. Under the terms of the Troubled Asset Relief Program (TARP). Comerica owes Uncle Sam about $2.25 billion. At this point, the Dallas-based bank is among the few remaining financial institutions yet to repay its TARP debt.

This morning, Comerica priced its common stock offering at $35 per share, representing a discount to Monday's close at $36.29. The shares have quickly backpedaled as a result, slipping below recent support at their 10-day and 20-day moving averages.

Continue reading Comerica Selling Stock to Repay TARP Debt

Barron's Is Bullish on C.H. Robinson Worldwide

C.H. Robinson Worldwide (CHRW) was the subject of a rosy write-up in Barron's over the weekend, with the financial publication noting that the company is well-positioned to benefit as "trends in the transportation industry are reaching an inflection point." In fact, portfolio manager Quoc Tran of Lateef Investment Management believes that "a stake in C.H. Robinson [is] the best way to enjoy a rebound in the transportation sector."

The stock enjoyed a modest boost Monday morning in the wake of the Barron's endorsement, with CHRW breaking out above short-term pressure from its 10-day and 20-day moving averages. The stock has added roughly 40% during the past year, capitalizing on support from its longer-term 10-month and 20-month trendlines.

Continue reading Barron's Is Bullish on C.H. Robinson Worldwide

Fannie Mae's Mortgage Delinquencies Climbed in December

Late Wednesday, Fannie Mae (FNM) confessed that delinquencies on loans in its single-family guarantee business increased to 5.38% in December, marking a steep increase from 2.42% in December 2008. The multifamily delinquency rate arrived at 0.63% for the final month of 2009, compared to 0.30% in December 2008.

Additionally, Fannie Mae reported that its mortgage investment portfolio contracted by 44.8% to $735.2 billion in January

Continue reading Fannie Mae's Mortgage Delinquencies Climbed in December

Oshkosh Smacked by Bearish Barron's Article

Defense firm Oshkosh Corporation (OSK) is wallowing in red ink, after Barron's published a downbeat article on the company over the weekend. After securing a $3 billion, five-year Army contract, the author warns that "Oshkosh may have won the battle but lost the war."

The main thrust of the article appears to be an argument against further price appreciation for OSK, which has "gained 448% over the past 12 months based on a booming military business," according to Barron's. Plus, Tom Harenburg, a longtime investor in the company, adds that profit margins on the Army deal "are meager."

Continue reading Oshkosh Smacked by Bearish Barron's Article

Campbell Soup Slips After Slashing Guidance

Bright and early this morning, Campbell Soup Co. (CPB) lowered its forecast for fiscal 2010 sales. The company now expects sales to grow 2.5% to 3.5% during the current fiscal year, down from its previous projection for sales growth of 4% to 5%. However, earnings for 2010 are still expected to rise 9% to 11% on an annualized basis from $2.21 per share in fiscal 2009.

Campbell also announced this morning that it's launching "a comprehensive plan to boost the performance of its condensed soup portfolio" in the U.S. More than 60% of the company's condensed line will be spruced up with product improvements, sodium reductions, updated packaging, and a fresh marketing approach.

Continue reading Campbell Soup Slips After Slashing Guidance

Baidu Blazes Past 4Q Earnings Expectations

Shares of Baidu (BIDU) are pointed sharply higher in after-hours trading, with investors cheering the company's fourth-quarter earnings report. The Internet-search issue swung to a profit of $62.7 million, or $1.80 per American depositary share, while revenue jumped 40% to $184.7 million. Analysts were looking for a slimmer per-share profit of $1.69, according to Thomson Reuters.

Looking ahead, BIDU said it expects first-quarter revenue to range between $176 million and $181 million, compared to consensus expectations for revenue of $170 million. This upbeat forecast sent the stock surging to a gain of nearly 9% in electronic trading.

Continue reading Baidu Blazes Past 4Q Earnings Expectations

Low Expectations for MasterCard's 4Q Earnings

MasterCard Incorporated (MA) is scheduled to take its turn in the earnings spotlight before the market opens tomorrow morning. Analysts surveyed by Thomson Reuters are expecting the credit card issue to report a fourth-quarter profit of $2.46 per share, which would mark a significant improvement over the company's year-ago earnings of $1.87 per share.

While the bar is set pretty high, MasterCard has a solid history of topping consensus expectations -- the company has bested Wall Street's earnings predictions in each of the previous four reporting periods. Despite MasterCard's solid history on the earnings front, though, pessimism is heavy as investors await the firm's fourth-quarter results.

Continue reading Low Expectations for MasterCard's 4Q Earnings

Berkshire Hathaway's B Shares Bombarded by Bears

The financial world was rocked, more or less, when Berkshire Hathaway (BRK.B) recently announced a plan to split its B shares -- billionaire investor Warren Buffett, the company's chairman and CEO, famously refused to split the stock for years. (In fact, the A shares are still trading in six-digit territory, upwards of $100,000 apiece.)

On Monday, option players didn't hesitate to express their reservations about the stock split. During the course of the session, speculators on the International Securities Exchange (ISE) bought to open 4,736 puts on BRK.B, compared to just 2,559 calls. The single-day put/call volume ratio arrived at 1.85, with bearish bets nearly doubling their bullish counterparts.

Continue reading Berkshire Hathaway's B Shares Bombarded by Bears

Traders Bet on a VIX Bounce with Call Options

The CBOE Market Volatility Index (VIX) is up nearly 10% this afternoon, buoyed by a down day in the U.S. equities market. Today's jump in the VIX likely comes as no surprise to option speculators, who have recently been loading up on VIX call options.

During the past five days, option traders on the Chicago Board Options Exchange (CBOE) have bought to open 177,441 calls on the VIX, compared to just 74,637 puts. In other words, about 2.38 times more calls than puts have been purchased on the so-called "fear index" during the past week.

Continue reading Traders Bet on a VIX Bounce with Call Options

Bears Not Buying Buffalo Wild Wings Upgrade

Casual restaurant chain Buffalo Wild Wings (BWLD) scored an upgrade on Monday, with Morgan Keegan raising its rating from market perform to outperform. As a result, the shares kicked off the week by rallying more than 4%, and reclaiming a perch above the 10-day and 20-day moving averages.

However, option traders were hardly impressed by Morgan Keegan's bullish note, or by the stock's resulting gains. During the course of Monday's session, speculators on the International Securities Exchange (ISE) bought to open 1,000 puts on BWLD, compared to just 181 calls. The equity's single-day put/call volume ratio of 5.52 reveals that bearish bets were snapped up at a much faster pace than their bullish counterparts.

Continue reading Bears Not Buying Buffalo Wild Wings Upgrade

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IndexesChangePrice
DJIA-74.9212,454.83
NASDAQ-1.852,837.53
S&P 500-2.861,317.82

Last updated: May 28, 2012: 11:28 AM

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