Thursday, August 12, 2010

Daily Markets - Stock Picks For Friday 13 August: Citigroup, Motorola, Autodesk, Dynegy

Daily Markets - Stock Picks For Friday 13 August: Citigroup, Motorola, Autodesk, Dynegy

Stock Picks For Friday 13 August: Citigroup, Motorola, Autodesk, Dynegy

Posted: 12 Aug 2010 06:11 PM PDT

( click to enlarge )

Citigroup (NYSE:C) - The stock had a moderate bullish momentum Thursday closing at 3.87. The main scenario remains to the downside but as long as price stay above 3.85-3.87 area the upside correction scenario remains likely. Immediate resistance at 3.90 ( 200-day moving average ). Consistent move above this area could trigger further bullish pressure towards $4. On the downside, a break below 3.85 could end the upside correction targeting $3.77 region.

( click … [visit site to read more]


Ford’s Default Rating Rises To BB-

Posted: 12 Aug 2010 04:35 PM PDT

Fitch Ratings has upgraded ratings on both Ford Motor Co. (NYSE:F) and its finance arm, Ford Motor Credit Co. LLC (NYSE:FCZ), due to a strong performance by the company along with its debt reduction measures in the second quarter of 2010.
The issuer default ratings on the company and its subordinate have been raised to “BB-” from “B”, while maintaining a ‘Stable’ outlook. The new rating implies a high default risk combined with some limited margin of safety.
Ford has beaten Fitch’s expectations both … [visit site to read more]

GM Posts Second Profitable Quarter

Posted: 12 Aug 2010 04:35 PM PDT

The new General Motors (MTLQQ) recorded a profit of $1.3 billion or $2.55 per share in the second quarter of the year, compared to a loss of 12.9 billion or $21.12 in the second quarter of 2009, when the automaker was in the midst of bankruptcy filing.
The profit is due to the company’s aggressive cost reduction measures and streamlining of operations since its exit from the bankruptcy protection. The automaker relied heavily on rental-car, government and corporate fleets to drive sales, … [visit site to read more]

Tata Motors Earns $432 Million

Posted: 12 Aug 2010 04:35 PM PDT

Tata Motors Ltd. (NYSE:TTM) posted a profit of Rs.19.9 billion ($432 million) during the first quarter of its fiscal year, ended June 30, 2010. That was in sharp contrast to a loss of Rs.3.3 billion ($71 million) in the prior-year quarter. This is equivalent to earnings per share of Rs.34.80 (76 cents) during the quarter against a loss of Rs.6.40 (14 cents) a year ago.
Sales volume for the quarter surged 49% to 190,304 vehicles globally. Consequently, revenues soared 64% to Rs.270.6 billion ($5.9 … [visit site to read more]

MetLife Raises $6.6B For ALICO

Posted: 12 Aug 2010 03:35 PM PDT

In an attempt to raise capital for the pending ALICO acquisition, MetLife Inc. (NYSE:MET) announced earlier this month the closure of its open market stock offering worth $3.6 billion. In addition, the company also sealed the public offering of its senior debts worth $3.0 billion.
While the common stock offering consisted of 75 million shares with an additional 11.25 million shares in order to cover over-allotments, MetLife’s senior debt offering consisted of multiple securities with different … [visit site to read more]

Kohl’s Tops Consensus

Posted: 12 Aug 2010 03:35 PM PDT

Kohl’s Corp. (NYSE:KSS) registered second-quarter 2010 earnings of 84 cents per share, exceeding the Zacks Consensus Estimate of 81 cents by 3.7% and the year-ago earnings of 75 cents by 12.0%.
The company forecasts earnings of 57 cents–63 cents per share in the third quarter, well below the Zacks Consensus Estimate of 74 cents. Kohl’s expects fourth quarter earnings of $1.51–$1.59 per share. For fiscal 2010, the company forecasts earnings of $3.57–$3.70 per share, higher than the Zacks … [visit site to read more]

Pepco Signs Energy-Saving Contract

Posted: 12 Aug 2010 03:05 PM PDT

Diversified energy company Pepco Holdings Inc. (NYSE:POM) announced that its subsidiary, Pepco Energy Services, signed a $35 million comprehensive energy savings performance contract with Prince George’s County Maryland Public Schools.
As per the contract Pepco will provide 103 county schools with new infrastructure for effective utilization of energy. The company will emphasize on modernizing heating, cooling and ventilation, conservation of water, improvement in lighting system, energy controls … [visit site to read more]

Aegon Swings To Profit

Posted: 12 Aug 2010 03:05 PM PDT

Dutch insurer Aegon NV (NYSE:AEG) reported second quarter net income of €413 million (US$538 million), which came in substantially ahead of the net loss of €161 million (US$210 million) in the year-ago quarter. The momentous swing was primarily due to improved earnings, realized gains on investments, increased deposits and lower impairments.
Aegon’s underlying earnings before tax amounted to €522 million, compared with €415 in the year-ago quarter. This was primarily driven by improved … [visit site to read more]

Grainger July Sales Ride High

Posted: 12 Aug 2010 02:35 PM PDT

July sales at W.W. Grainger Inc. (NYSE:GWW) jumped 21%, the highest growth recorded by the company so far in fiscal 2010, driven by sales of items related to the oil spill clean-up in the Gulf of Mexico.
Acquisitions contributed 5 percentage points to the growth with favorable foreign exchange adding 1 percentage point. Excluding the impacts of acquisitions and foreign currency exchange rates, daily sales increased 15% during the month.
Geographically, daily sales in the United States rose 17%, … [visit site to read more]

StanCorp Downgraded To Underperform

Posted: 12 Aug 2010 02:35 PM PDT

We recently downgraded StanCorp Financial Group (NYSE:SFG) to Underperform from Neutral, as we suspect organic growth will remain restricted in the near term given the sluggish economic environment and challenging labor market conditions. Additionally, delinquencies on commercial mortgage loans are expected to remain modestly high in the foreseeable future.
StanCorp’s premiums remain stressed as the group insurance market continues to reflect a price-competitive sales environment with declines in … [visit site to read more]

Green Mountain Sells $250M Stock

Posted: 12 Aug 2010 02:35 PM PDT

Green Mountain Coffee Roasters, Inc. (NASDAQ:GMCR) entered into an agreement with Luigi Lavazza S.p.A to sell $250 million worth of common stock to the latter. Lavazza will purchase $250 million newly issued shares of GMCR’s $0.10 par value Common Stock, or approximately 7% of Green Mountain’s current outstanding shares.
Green Mountain will sell shares at a price equal to the 60-day volume weighted average price at closing minus 7.5%. The transaction is expected to close in September 2010 pending … [visit site to read more]

Four Ways To Play China’s Energy Stance

Posted: 12 Aug 2010 02:17 PM PDT

According to the International Energy Agency (IEA), China has taken the top spot as the world's largest energy consumer and as a result is pledging to develop cleaner energy.
Last year, China consumed 2.252 billion tons of energy equivalents, almost 4% more than the United States, driven by growth in its industrial and infrastructure sectors.  As for the future, the nation is likely to continue to see growth and is expected to witness a further increase in its appetite for … [visit site to read more]

Sports Feminists Vs. The Market

Posted: 12 Aug 2010 02:16 PM PDT

In 2009, more than 23 million sports fans attended a professional basketball game. But fans evinced significantly greater interest in the men's NBA, which captured 92.3 percent (21.39 million) of the total attendance, while women's professional basketball (WNBA) attracted only 7.7 percent of the total number of basketball fans (1.77 million, see chart above). In other words, 12 basketball fans attended an NBA game in 2009 for every one fan that attended a WNBA game.

Given the fact that … [visit site to read more]

Akamai Partners With Brightcove

Posted: 12 Aug 2010 02:05 PM PDT

Akamai Technologies Inc. (NASDAQ:AKAM), a leading provider of cloud optimization services, has formed an alliance with the cloud-based video platform company, Brightcove. The alliance is expected to make video publishing and distribution easier for all sizes of professionals and business organizations over the Internet.
 
Online video is gaining huge popularity with an increasing use of the Internet and a plethora of mobile devices in the market. Marketers, big and small alike, are using … [visit site to read more]

Earnings Scorecard: Wynn Resorts

Posted: 12 Aug 2010 02:05 PM PDT

Wynn Resorts Limited (NASDAQ:WYNN), a leading developer, owner and operator of destination casino resorts, posted better-than-expected second quarter 2010 results on July 29, 2010, buoyed by a solid performance from its Macau operations. The recent earnings announcement, subsequent analyst estimate revisions and the Zacks ratings for both the short-term and the long-term are covered in depth below.
 
Earnings Report Review
 
During the quarter, Wynn Resorts reported earnings of 52 cents … [visit site to read more]

Suncor Sells Assets Again

Posted: 12 Aug 2010 02:05 PM PDT

Canada’s premier integrated energy company Suncor Energy (NYSE:SU) has made an agreement with Direct Energy to offload certain natural gas properties situated in Alberta. The value of the assets has been finalized for C$375 million ($358.5 million), with an effective date of May 1, 2010.
The properties to be divested are known as Wildcat Hills, located near Cochrane, with production capacity of approximately 80 million cubic feet of natural gas and natural gas equivalent per day.
The deal will … [visit site to read more]

Intrade Odds At 62% For Republicans To Take House

Posted: 12 Aug 2010 01:58 PM PDT

Intrade odds for the Republicans to control the House are now at an all-time contract high of … [visit site to read more]

Earnings Scorecard: Molson Coors

Posted: 12 Aug 2010 01:35 PM PDT

Molson Coors Brewing Co. (NYSE:TAP) reported second-quarter earnings on August 3, 2010 that surpassed the Zacks Consensus Estimate in the wake of net sales growth, increased equity income from MillerCoors, favorable currency translation and a lower effective tax rate. This was partially offset by higher marketing and administrative expenses.
 
Analysts have had more than a week to digest the news. Below, we cover the recent earnings announcement, including the subsequent estimate revisions … [visit site to read more]

Wyndham Upgraded To Outperform

Posted: 12 Aug 2010 01:35 PM PDT

We are upgrading our rating on Wyndham Worldwide Corporation (NYSE:WYN) to Outperform from Neutral.
 
The rating upgrade is based on second quarter 2010 earnings, which were well ahead of the Zacks Consensus Estimates, primarily driven by better-than-expected business in Vacation Exchange and Rentals. Additionally, Wyndham is experiencing a surge in demand with a gradual recovery of the global economy. Business travelers are returning, with leisure demand increasing as well. Wyndham also … [visit site to read more]

Earnings Scorecard: Celanese

Posted: 12 Aug 2010 01:35 PM PDT

Specialty material company, Celanese Corporation (NYSE:CE) earned $1.12 per share in the second quarter of 2010, ahead of the Zacks Consensus Estimate of $1.02. Analysts have maintained a positive opinion on the stock. Celanese raised its earnings guidance by 15 cents for the full year 2010. Strong management guidance further added to the positive sentiment.
 
However, weak market conditions, lower spending and the recession led to volatility in share prices for most of the chemical makers … [visit site to read more]

Monsanto To Pay Higher Dividend

Posted: 12 Aug 2010 01:05 PM PDT

Monsanto (NYSE:MON) approved an increase in the quarterly dividend payment from 26.5 cents per share to 28 cents. The primary motive behind this is to enhance shareholder sentiments.
Monsanto also recently authorized a three-year share repurchase program of $1 billion. The increase in the production of SmartStax corn seeds is also expected to have a positive impact on top-line and bottom-line results. Monsanto is expected to experience a higher profit margin based on economies of … [visit site to read more]

Earnings Scorecard: ConocoPhillips

Posted: 12 Aug 2010 01:05 PM PDT

Last month, ConocoPhillips (NYSE:COP) announced its financial results for the second quarter ended June 30, 2010. The company reported robust second-quarter results thanks to the higher refining earnings, partially offset by lower exploration and production results.

ConocoPhillips intends to sell 40% of its stake to Lukoil in the third quarter and the remaining 60% by the end of 2011. Management estimates after-tax proceeds of $8.7 billion, which will be used toward share repurchases. … [visit site to read more]

Earnings Scorecard: ExxonMobil

Posted: 12 Aug 2010 01:05 PM PDT

Though ExxonMobil Corp. (NYSE:XOM) posted strong results in the second quarter, the stock performance was not so impressive. The company's share price has dropped approximately 11% year to date. While we believe the stock will perform in line with its peers and the S&P 500 over near to medium term, investors will have to wait and see the results of the XTO Energy integration.

Exxon completed the XTO merger in late June. With the entire business of XTO Energy now on Exxon's … [visit site to read more]

FDA Panel Backs Anti-Epileptic Drug

Posted: 12 Aug 2010 12:35 PM PDT

GlaxoSmithKline (NYSE:GSK) and Valeant Pharmaceuticals International (NYSE:VRX) recently received encouraging news in the form of a positive recommendation from a US Food and Drug Administration (FDA) advisory panel regarding their epilepsy candidate, ezogabine. Glaxo and Valeant are seeking approval for ezogabine both in the US and the EU for the treatment of adults with partial-onset seizures.
The FDA's Peripheral and Central Nervous System Drugs Advisory Committee reviewed the safety and … [visit site to read more]

Starwood Grows In Puerto Rico

Posted: 12 Aug 2010 12:35 PM PDT

Starwood Hotels & Resorts Worldwide Inc. (NYSE:HOT), with its Luxury Collection brand, is all set to explore Puerto Rico this November. The company will open its first luxury resort, St. Regis in Bahia Beach, Puerto Rico, following two other key Starwood hotel openings, W Vieques and Sheraton Puerto Rico Convention Center Hotel & Casino. With the addition of these three new hotels Starwood will double its portfolio in Puerto Rico in one year and plans to expand further.
St. Regis Bahia … [visit site to read more]

Flowserve Wins Another Order

Posted: 12 Aug 2010 12:35 PM PDT

Flowserve Corp. (NYSE:FLS), a leading US-based pumps maker, received an order from Hydrochem (S) Pte Ltd, a wholly-owned subsidiary of Hyflux Ltd. This is the second major order booked in the second quarter of 2010 for Flowserve's CALDER Dual Work Exchanger Energy-Recovery (DWEER) units.
The energy recovery system will be used in the Salalah Independent Water and Power Plant (Salalah IWPP) in Oman to generate energy from the high-pressure brine stream in the seawater reverse-osmosis (SWRO) … [visit site to read more]

Portland And Seattle Home Sales In June Were Above Both May And June 2009

Posted: 12 Aug 2010 12:26 PM PDT

1. Portland — A total of 3,008 new and resale houses and condos closed escrow during June in the five-county Portland-Vancouver-Beaverton metro area. June sales rose 5.2 percent from 2,859 in May and increased 11.3 percent from 2,703 in June 2009.

2.  Seattle — A total of 4,513 new and resale houses and condos closed escrow during June in the Seattle-Tacoma-Bellevue metropolitan statistical area encompassing King, Snohomish and Pierce counties. June sales rose 9.0 percent from … [visit site to read more]

Cushioning Losses With ETFs

Posted: 12 Aug 2010 12:17 PM PDT

As the markets continue to witness enhanced volatility and uncertainty, exchange traded funds [[ETFs]] which employ options as a way to hedge bets can provide insurance and additional income.   
These ETFs generally hold stocks while writing call options against their respective index, which enables one to have somewhat of an insurance policy against a downward spiraling market.  Additionally, these ETFs generate income when they sell their calls, which could dwindle away losses … [visit site to read more]

Intermodal Container Traffic Up Over 2008 & 2009

Posted: 12 Aug 2010 12:13 PM PDT

WASHINGTON, D.C. – Aug. 12, 2010 – “The Association of American Railroads today reported only moderate gains in rail traffic for the week ending Aug. 7, 2010. U.S. railroads originated 284,507 carloads for the week, up 3.5 percent compared with the same week in 2009, but down 13 percent from the same week in 2008. In order to offer a complete picture of the progress in rail traffic, AAR reports 2010 weekly rail traffic with comparison weeks in both 2009 and 2008. Note that U.S. rail … [visit site to read more]
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