Wednesday, August 11, 2010

Daily Markets - Trade Deficit Jumps To $49.9B

Daily Markets - Trade Deficit Jumps To $49.9B

Trade Deficit Jumps To $49.9B

Posted: 11 Aug 2010 12:05 PM PDT

In June, the nation’s Trade Deficit jumped to $49.90 billion from $41.98 billion in May, and from just $27.14 billion a year ago. That is an 18.9% rise for the month and a 83.9% increase from a year ago. It is far worse than the expectations which were for the trade deficit to be more or less unchanged from May.

It also strongly suggests that when the next look at second quarter GDP comes out that it will be revised downwards. The trade deficit is a direct subtraction from GDP in the form of … [visit site to read more]

Goldman Reveals Derivatives Revenue

Posted: 11 Aug 2010 12:05 PM PDT

Goldman Sachs Group Inc. (NYSE:GS) has revealed that 25% to 35% of its total revenue is gained from derivatives businesses, according to a report in The Wall Street Journal. The disclosure came in response to a request by the Financial Crisis Inquiry Commission (FCIC) related to its probe into the recent financial crisis.
 
In July 2009, a 10-member FCIC panel was appointed by the United States government to investigate the causes of the worst US financial and economic crisis since the Great … [visit site to read more]

Molina Prices Stock Offering

Posted: 11 Aug 2010 12:05 PM PDT

Molina Healthcare Inc. (NYSE:MOH) has priced its underwritten public offering of 4 million shares at $27.00 per share. The stock offering was announced on August 4.
 
According to the offering by Molina and the selling stockholders, the underwriters are given a month's option to purchase up to 600,000 shares to cover over-allotments. Of this, 350,000 shares will be offered by Molina and the remainder by the selling stockholders.
 
BofA Merrill Lynch, a wing of Bank of America (NYSE:BAC) … [visit site to read more]

RLI Corp. Upgraded To Outperform

Posted: 11 Aug 2010 12:05 PM PDT

We have recently upgraded RLI Corp. (NYSE:RLI) to Outperform from Neutral as we believe the company will benefit from its diversification into crop and other assumed property reinsurance. Extensive product offerings, strong local branch network and focus on specialty insurance lines are expected to aid top-line growth going forward.
 
RLI Corp.'s diversification into crop and other assumed property reinsurance drove higher premiums in the Property segment. Geographical expansion also led … [visit site to read more]

Noble Moves Ahead On Tamar

Posted: 11 Aug 2010 11:35 AM PDT

Independent oil & gas producer, Noble Energy Inc. (NYSE:NBL) received the go-ahead for developing an alternate natural gas field offshore Israel. The Israeli government gave its consent for the development of the Tamar South, which is expected to provide initial deliveries of gas by late 2012.
Noble's New Tamar Option
Noble Energy and its Tamar partners had last week recommended the Tamar South development option, to replace its previous Tamar North option, to Israel’s Minister of National … [visit site to read more]

Earnings Scorecard: Comcast Corp.

Posted: 11 Aug 2010 11:35 AM PDT

Comcast Corp. (NASDAQ:CMCSA) reported second quarter 2010 financial results, exceeding the Zacks Consensus Estimate by a penny. This better-than-expected performance was driven by solid customer growth and an improving advertising market.
 
Quarter's Highlights
 
Adjusted EPS in the reported quarter was 33 cents compared with 29 cents in the prior-year quarter. It included $22 million in operating expense, $2 million of interest expense and $35 million of other expense related to the … [visit site to read more]

Option Plays For Wednesday 11 August: BP, American Tower Group, Japan Index

Posted: 11 Aug 2010 11:33 AM PDT

iShares MSCI Japan Index (EWJ) - Since the middle of May, shares in the Japanese market tracker have lunged between a peak at $10.00 and $9.15 creating a neat trading range. With an overnight confidence in global stocks hitting the fan and a capitulation to a 15-year high for the yen, the EWJ has pretty much fallen from the top to smack bang in the middle of that same range in just three days. One option traders appears to be translating more of the same by selling that same strangle … [visit site to read more]

India Infrastructure ETF Destined To Shine

Posted: 11 Aug 2010 11:17 AM PDT

With the continuing innovation in the ETF landscape, the announcement of the India Infrastructure ETF (INXX), the first sector-specific India fund to track the nation's infrastructure sector, could be the answer to reaping the benefits of a sector that is destined to shine.
EGShares newest ETF carries an expense ratio of 0.85% and seeks to replicate the performance of the Indxx India Infrastructure Index, which is a benchmark that consists of 30 different companies that are influenced by … [visit site to read more]

MarkWest Fails To Top Zacks

Posted: 11 Aug 2010 11:05 AM PDT

MarkWest Energy Partners L.P. (NYSE:MWE), a master limited partnership (MLP), reported disappointing second quarter 2010 results. Earnings per unit, excluding marked-to-market derivative loss and compensation expense, came in at 3 cents, which were way below the Zacks Consensus Estimate of 20 cents and year-ago quarter earnings of 36 cents. The negative comparison reflects an increased operating expense.
The partnership generated revenues of $276.9 million, up 49.7% from the second quarter 2009 … [visit site to read more]

Netflix In Deal With EPIX

Posted: 11 Aug 2010 11:05 AM PDT

A leading provider of online movie rental services, Netflix Inc. (NASDAQ:NFLX) signed a multi- year movie licensing deal with the movies-on-demand and online company, EPIX. EPIX is a joint venture between Paramount Pictures, a unit of Viacom (Via.B), Metro-Goldwyn-Mayer Studios Inc. (NYSE:MGM) and Lionsgate (NYSE:LGF). Financial terms of the deal were not disclosed.
Under the agreement, Netflix will stream movies online to its subscribers from EPIX's library and new releases from Paramount, Lionsgate … [visit site to read more]

Forex Trading: EURUSD Poised For Another Move Down?

Posted: 11 Aug 2010 10:41 AM PDT

AOB Misses On EPS And Revs

Posted: 11 Aug 2010 10:35 AM PDT

American Oriental Bioengineering's (NYSE:AOB) second quarter fiscal 2010 earnings per share (EPS) came in at 7 cents per share, lower than the Zacks Consensus Estimate by 3 cents and the year-ago earnings by 9 cents. Although revenues increased from the year-ago period, earnings declined due to higher operating expenses.
 
Revenues in the reported quarter climbed 8.5% year over year to $77.3 million but fell short of the Zacks Consensus Revenue Estimate of $80 million. The year-over-year … [visit site to read more]

Myriad Genetics Beats Estimates

Posted: 11 Aug 2010 10:35 AM PDT

Myriad Genetics Inc. (NASDAQ:MYGN) recorded an EPS of 54 cents in the fourth quarter of 2010, surpassing the Zacks Consensus Estimate of 33 cents and 24 cents in the year-ago period. For the full year 2010, the company recorded 79% growth in EPS to $1.54, beating the Zacks Consensus Estimate of $1.32 per share.

Results in the fourth quarter included a $14.6 million one-time income tax benefit as a result of recording a deferred tax asset and booking additional research and development tax credits. … [visit site to read more]

Telus Beats On Wireless Growth

Posted: 11 Aug 2010 10:35 AM PDT

Telus Corporation (NYSE:TU), the second largest Canadian telecommunications company, reported second-quarter 2010 adjusted earnings per ADS of 86 U.S. cents (89 Canadian cents per share) outpacing the Zacks Consensus Estimate of 74 U.S. cents. Adjusted earnings climbed 25% year over year. Adjusted earnings exclude C$10 million or 3 Canadian cents in favorable tax-related adjustments.
Net income, excluding favorable tax-related adjustments, shot up 25% year over year to C$286 million ($276.7 … [visit site to read more]

Australian Dollar: The Downside Prevails

Posted: 11 Aug 2010 10:18 AM PDT

Update on supports and resistances. … [visit site to read more]

Canadian Dollar: The Downside Prevails

Posted: 11 Aug 2010 10:18 AM PDT

Update on supports and resistances. … [visit site to read more]

Mother Nature Could Hinder Russian ETFs

Posted: 11 Aug 2010 10:17 AM PDT

In the second quarter of the year, Russia's economy expanded by 5.2% from a year earlier and has been gaining strength; however, harsh weather conditions could hinder future growth in the Kremlin.
Russia's recent economic growth has primarily been accelerated by sizable increases in retail sales and investment as well as healthy commodity prices.  In June, retail sales in Russia saw their largest jump in nearly two years as unemployment levels continued to descend and consumers … [visit site to read more]

McDermott Bags $350M Oilfield Deal

Posted: 11 Aug 2010 10:05 AM PDT

Energy-focused engineering and construction firm McDermott International (NYSE:MDR) announced that one of its units has received a water injection system upgradation and enhancement contract from Abu Dhabi Marine Operating Company (also known as ADMA-OPCO). The transaction, valued at approximately $350 million, has been included in McDermott’s second-quarter 2010 bookings.
 
The project, encompassing two parts – pressure upgrade and capacity upgrade – will help ADMA-OPCO raise production … [visit site to read more]

Earnings Scorecard: Simon Property

Posted: 11 Aug 2010 10:05 AM PDT

 
Simon Property Group Inc. (NYSE:SPG), a leading real estate investment trust (REIT), reported its fiscal 2010 second quarter fund from operations (FFO) of $1.38 per share, which exceeded the Zacks Consensus Estimate by 4 cents. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
We cover below the results of the recent earnings announcement, subsequent analyst … [visit site to read more]

Viacom Downgraded To Neutral

Posted: 11 Aug 2010 09:35 AM PDT

We downgrade our recommendation for Viacom Inc. (VIA.B) to Neutral following mixed financial results for the third quarter of fiscal 2010. Net earnings soared in the reported quarter while revenue remained lackluster. The stock price has moved up by nearly 46% in the last one year and currently has limited upside potential.
 
Paramount Pictures continues to face sales decline primarily due to a massive drop in DVD sales. Quarterly revenue of the Filmed Entertainment segment was down 10% … [visit site to read more]

Earnings Scorecard: Aimco

Posted: 11 Aug 2010 09:35 AM PDT

Apartment Investment and Management Company, or Aimco (NYSE:AIV), as the real estate investment trust (REIT) is popularly known, reported fiscal 2010 second quarter recurring fund from operations (FFO) of 41 cents per share, which exceeded the Zacks Consensus Estimate by 8 cents. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
We cover below the results of the recent … [visit site to read more]

Grupo Aeroportuario’s Traffic Rises

Posted: 11 Aug 2010 09:35 AM PDT

Mexican airline operator, Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) has released its passenger traffic data for July 2010.
 
During the month, total passenger traffic grew 4.6% year over year with increases of 2.2% in domestic traffic and 20.8% in international traffic. The increase in passenger traffic was driven primarily by international passenger traffic, which went up due to the commencement of new routes by VivaAerobus and Aeromexico, and also due to the marginal … [visit site to read more]

What Will We Learn From FINRA’s Annual Meeting On 8-12-10?

Posted: 11 Aug 2010 09:20 AM PDT

Wall Street's self-regulatory organization, FINRA, holds its annual meeting tomorrow inWashington D.C.. What will we learn? Will FINRA's member firms vote for a number of non-binding proposals which would shine real light on the inner workings of this organization? America deserves to learn so much more than has ever been revealed about FINRA.
I have shared with many people that I believe the underlying tone of our markets would improve if FINRA were compelled to open its … [visit site to read more]

Liberty Global To Underperform

Posted: 11 Aug 2010 09:05 AM PDT

We downgrade our recommendation for Liberty Global Inc. (NASDAQ:LBTYA) to Underperform following its second quarter 2010 financial results, well below the Zacks Consensus Estimate. We do not find any immediate growth catalyst for Liberty Global. According to our assessment, the company will remain loss making throughout fiscal 2010.
 
Liberty Global is suffering from severe foreign exchange rate fluctuations. The company operates in 14 countries all outside of the U.S. Continuing foreign … [visit site to read more]

Arris Downgraded To Underperform

Posted: 11 Aug 2010 09:05 AM PDT

We downgrade our recommendation for Arris Group Inc. (NASDAQ:ARRS) to Underperform, following its disappointing second quarter 2010 financial results. Both revenues and EPS fell below the Zacks Consensus Estimates.
 
Arris is solely dependent on cable operators for its revenues. Most of the cable operators in the U.S. are on the verge of full deployment of high-speed DOCSIS 3.0 networks. This in turn significantly reduces the high margin Cable Modem Termination System (CMTS) business of Arris. … [visit site to read more]

Paul Sonkin Resource Page Updated

Posted: 11 Aug 2010 08:59 AM PDT

Paul Sonkin

I have created a resource page for value investor Paul sonkin. It will be a permanent link on Value Walk. to find it on the top menu bar go to value investors->the new value investors->Paul Sonkin
Paul Sonkin's Bio:
Paul D. Sonkin is the Portfolio Manager of The Hummingbird Value Fund and the Tarsier Nanocap Value Fund. Paul is currently an adjunct professor at Columbia University Graduate School of Business, where he teaches courses on security analysis and value … [visit site to read more]

Honeywell Wins Contract

Posted: 11 Aug 2010 08:35 AM PDT

Honeywell International Inc.'s (NYSE:HON) navigation system has been chosen by the U.S. army for deployment in the M119 howitzer, which is a lightweight 105-mm howitzer used by the United States Army. It can be easily airlifted, even by helicopter, or dropped by a parachute.
 
The contract is an indefinite delivery and indefinite quantity contract with a potential value of $65 million to the company.
 
With external shock tolerance, the navigator is capable of hitting its target from … [visit site to read more]

Earnings Scorecard: Tesoro

Posted: 11 Aug 2010 08:35 AM PDT

Late last month, independent refiner Tesoro Corporation (NYSE:TSO) announced its financial results for the second quarter ended June 30, 2010.
 
Now that the Wall Street analysts have had some time to digest the quarterly performance of Tesoro, they are weighing in their estimate revisions. Below we cover the results of the recent earnings announcement, subsequent analyst estimate revisions and Zacks ratings for the outlook for the stock. 
Earnings Review
 
On July 28, 2010, Tesoro … [visit site to read more]

3 Contracts In 1 Day For Jacobs

Posted: 11 Aug 2010 08:35 AM PDT

Jacobs Engineering Group Inc. (JEC) won three new contracts on August 10. The first one was from France based Heurtey Petrochem SA. Although the contract value was not disclosed, the total cost for the installation of project was projected at $100 million.
 
As per the agreement, Jacobs will furnish engineering services for a new hydrogen plant generation unit at the Naftna Industrija Srbije (NIS) refinery in Pancevo, Serbia.
 
The second contract came from Alamo Regional Mobility … [visit site to read more]

An Uncertain Homecoming: BP’s Return To Libya Decades After Gaddafi’s Revolution

Posted: 11 Aug 2010 08:29 AM PDT

After nearly 40 years, BP (NYSE:BP) is returning to Libya amid widespread controversy about an alleged link to the Lockerbie bomber’s release and fears about a potential oil disaster in the Mediterranean Sea.

Yet despite the oil giant’s enthusiasm, its future in Libya - a country boasting the largest crude oil reserves on the continent — may end up as murky as competitors that have ventured there.

Three years ago, BP signed a $900-million exploration and production deal with Libya, decades … [visit site to read more]

Forex Trading: AUDUSD Moves Closer To The Key 200 Day MA Support

Posted: 11 Aug 2010 08:28 AM PDT

The Fed’s “Tweaks” Keep The Bond Market Rally Alive

Posted: 11 Aug 2010 08:17 AM PDT

Fundamentals
A tweak here and there is music to the ears of bond futures bulls, as the lead month September 30-yr bond futures prices continue to climb, aided by the Federal Reserve’s announcement that it would purchase longer-term U.S. Treasuries. The announcement of the purchase came in the statement released after the one-day FOMC meeting concluded on Tuesday. Here the Fed did acknowledge that the economic recovery in the U.S. was losing some momentum, with the jobless rate remaining … [visit site to read more]

Join The Lexmark Revolution As It Guns For Hewlett-Packard’s Top Spot

Posted: 11 Aug 2010 07:54 AM PDT

Join the Lexmark Revolution as it Guns for Hewlett-Packard's Top Spot
by Alexander Moschina, Investment U Research
Wednesday, August 11, 2010
The second quarter of 2010 brought another big leap for Lexington, KY-based Lexmark International, Inc. (NYSE:LXK).

Sales were $1.03 billion, compared to revenue of $905 million a year earlier.
The printer manufacturer saw a profit increase of 400% compared to the same period last year.
Analysts expected earnings of 93 cents a share, but the company … [visit site to read more]

If You Tax Something, You Get Less Of It

Posted: 11 Aug 2010 07:23 AM PDT

“In New York, the average state, federal and local tax on a pack of 20 cigarettes is now $6.02. That includes an 8 percent combined state and local sales tax, as well as a $1.01 federal excise tax, according to the state tax department. New York raised its tax on July 1 to $1.60 a pack to generate $260 million to help offset a $9.2 billion budget gap.

A pack of Marlboros hovered around $6 or $7 a pack at Lucky 7 before the tax hike. Now, a pack costs $9.60. The store's cheapest, Grand Prix, … [visit site to read more]
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