Sabrient Divers – 02/02/2012
by Sabrient - February 2nd, 2012 12:00 am
Top 5 Divers |
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| Stock | Rating | Analysis | ||
| HSP | STRONGSELL | Projected value for Hospira is diminishing and long term growth rates are declining — someone throw them a lifeline. | ||
| CCL | STRONGSELL | Projected long-term growth for Carnival is going down, expected value is decreasing, and tough times are ahead. | ||
| EOC | STRONGSELL | We project an unfortunate decrease in value for ENDESA, and we’re not alone in this opinion as other analysts are also reducing expectations. | ||
| APC | STRONGSELL | Recent earnings changes for Anadarko are troublesome, as is a sinking projected valuation. | ||
| ALTR | SELL | Analysts are lowering long-term growth expectations for Altera, and showing agreement about short-term earnings declines as well. | ||
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Corinthian Colleges Call Options In Demand After Earnings Beat
by Option Review - February 1st, 2012 1:54 pm
Today’s tickers: COCO, IPXL & BEN
COCO - Corinthian Colleges, Inc. – Shares in the for-profit provider of post-secondary, career-oriented education programs increased as much as 44.2% to an intraday high of $4.37 at the start of the session after the Company’s full-year 2012 earnings forecast of $0.30 a share beat average analyst expectations of $0.24 a share. The stock is off earlier post-earnings report highs, but continues to trade up 30.0% on the day at $3.93 as of 12:30 p.m. in New York. Options traders positioning for shares in Corinthian Colleges to extend gains in the near term purchased more than 2,800 calls at the Feb. $4.0 strike for an average premium of $0.27 apiece. Investors long the calls may profit at February expiration in the event that COCO’s shares rally 8.7% over the current price of $3.93 to exceed the average breakeven point at $4.27. Bullish call buying spread to the Mar. $4.0 strike, where around 375 contracts were purchased for an average premium of $0.38 each.
IPXL - Impax Laboratories, Inc. – The specialty pharmaceutical company popped up on our ‘hot by options volume’ market scanner this morning after one strategist took a large stake in front-month calls. Shares in Impax Laboratories surged 10.85% to $20.93 today on news Impax Pharmaceuticals, the branded drugs unit of Hayward, California-based Impax Laboratories, Inc., licensed exclusive U.S. commercial rights to Zomig® from AstraZeneca. Zomig is a drug used to treat acute migraine headaches with or without aura. The options trader responsible for the single largest transaction in IPXL options today appears to have purchased 2,000 calls at the Feb. $20 strike for an average premium of $0.80 per contract. The size of the position is noteworthy relative to overall open interest of…
Wall of Worry Wednesday – View From the Top
by Phil - February 1st, 2012 8:16 am
Here's your "rally."
You'd better be making money in the markets because your cash, your home, your savings, your income – everything else you have has been slashed 5% in the past 18 days in order to make you feel better about the markets. Americans have roughly $100Tn in Dollar-denominated assets and it cost us $5Tn in less than 3 weeks to prop up the markets. Was it worth it? Will the next 5% be worth it too?
Welcome to the World of weak-Dollar policies. The Fed confirmed it's rumored $1Tn extension of QE on the 24th, by extending ZIRP through 2014 (and we did the math on the price of that policy last Thursday), $1Tn is nearly a 10% expansion of our Money Supply so of course the Dollar begins selling off but one would think the equally easy ECB would balance it out a bit but, so far, not at all as the Euro was already unnaturally weak against the Dollar out of fear of a currency collapse. As that comes off the table, even the Trillions of Euros being shoveled into bailouts seem RESPONSIBLE when compared to our own Fed's constant money drops. At least the EU demands to see some sort of balance sheet improvements before they hand out funds…
So far, the chart remains the same and we have the same gap up from $131.20 on the SPY to our $132 ceiling (see yesterday's notes) that we have had day after day after day as the pre-market programs do their very best to give us the illusion of strength – even while our currency is collapsing and that $132 we can get for one of our SPY shares buys 5% less stuff than it did 3 weeks ago.
But the chart LOOKS good and we got our official "golden cross" yesterday but, funny thing – it did not set off a buying frenzy – did it? One might pause to wonder why buyers are ignoring the most significant technical buy signal the markets can give if one were inclined to think but that is an activity that is actively discouraged in America these days and believe me – they'll know if you try it!
That's right, we are now arresting people for tweeting as homeland security yanked Leigh Van Bryan off a plane, detained him and sent him home…
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Sabrient Risers – 2/1/2012
by Sabrient - February 1st, 2012 12:00 am
Top 5 Risers |
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| Stock | Rating | Analysis | ||
| ASBC | BUY | Many analysts are expecting higher than previously expected long term growth from Associated Bancorp, and its near-term earnings outlook is also improving. | ||
| BC | BUY | Brunswick has shown a remarkable increase in projected value recently, with the majority of analysts expecting higher than previously expected earnings. | ||
| KMT | BUY | Kennametal is one of the top candidates projected to achieve both higher than previously projected earnings in the short run and a higher earnings growth rate in the long run. | ||
| CZZ | STRONGBUY | The recent earnings history for Cosan Ltd shows significant improvement while projected valuation continues to rise. | ||
| OKS | STRONGBUY | Many analysts are expecting higher than previously expected long term growth from ONEOK Partners, and its near-term earnings outlook is also improving. | ||
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Sabrient Divers – 02/01/2012
by Sabrient - February 1st, 2012 12:00 am
Top 5 Divers |
||||
| Stock | Rating | Analysis | ||
| HSP | STRONGSELL | Projected value for Hospira is diminishing and long term growth rates are declining — someone throw them a lifeline. | ||
| CCL | STRONGSELL | Projected long-term growth for Carnival is going down, expected value is decreasing, and tough times are ahead. | ||
| FCX | SELL | A consensus is building that Freeport-McMoRan is showing weakening near term and long term prospects. | ||
| EOC | STRONGSELL | We project an unfortunate decrease in value for ENDESA, and we’re not alone in this opinion as other analysts are also reducing expectations. | ||
| ALTR | SELL | A consensus is building that Altera is showing weakening near term and long term prospects. | ||
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CBO REPORT – OMG!
by ilene - January 31st, 2012 9:47 pm
Courtesy of Bruce Krasting
The Congressional Budget Office (CBO) is out with its annual report. It’s a blockbuster. This 165 page monster is filled with dozens of charts, graphs and detailed projections. It will be talked about for weeks. The report provides a dismal outlook for the economy. There is one data point I'd like to focus on.
Here is the CBO forecast for real GDP for 2012 and 2013:
The 1.1% Real GDP number for 2013 surprised me. The CBO’s expectations are way under those of both the “Blue Chip” economists and the Federal Reserve:
What does it mean if the economy is going to slow, as CBO now thinks? Some consequences:
The CBO now forecasts Social Security to run into trouble in just a few years. This is a very substantial change in the outlook for SS. Changed fortunes make it certain that America’s favorite entitlement program will be on the table for a significant re-vamp.
The CBO has answered two critical question:
1) In what year does SS first goes into deficit (including interest)?
2) What is the size of the SS Trust Fund when #1 has been achieved?
Key data is here:
Using this information, we can estimate the Trust Funds (TF) balances over time, and compare them to what SS forecast in its report to Congress ten-months ago:
The bottom line is that the SSTF is going to top out three years ahead of “schedule” and be $800B shy of what it was “supposed” to be.
I think the CBO report has created a big headache for a good number of folks in D.C. Most of them are running for office this year. They certainly won't be able to wave the CBO report as a measure of how well they are doing.
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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...
Ilene is editor and affiliate program
coordinator for PSW. She manages the Favorites backup site
(