Daily Markets - We’re Now Witnessing A Veritable Debt Explosion In The Developed World

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• We’re Now Witnessing A Veritable Debt Explosion In The Developed World
• The Stock Market Rally Versus The World’s Economic Fundamentals
• A New ETN To Hedge In Volatile Markets
• Stock Market Valuation September 1st 2010
• Liberty Obtains New Credit Facility
• ABM Industries Misses Estimates
• Neutral On Plexus
• IBM Acquires Storwize
• BJ’s On Expansion Track
• Neutral On Excel Maritime
• Good News For Alimera’s Pipeline
• Spectra Grows With Asset Purchase
• Afternoon Cartoon
• Nissan To Boost China Output
• DryShips Initiated As Neutral

We’re Now Witnessing A Veritable Debt Explosion In The Developed World Posted: 01 Sep 2010 05:01 PM PDT The past 15 years have certainly been exciting for investors. During the second half of the 1990s we experienced one of the largest stock market bubbles of all times … and its bursting. Then, only a few years later, one of the biggest real estate bubbles … and its bursting. In the aftermath of these events the world stumbled into the most severe economic downturn since the Great Depression of the 1930s. And the banking system came to the brink of a total collapse. Unprecedented … [visit site to read more]

The Stock Market Rally Versus The World’s Economic Fundamentals Posted: 01 Sep 2010 04:50 PM PDT What passes for business reporting in the United States is too often a series of breathless reports about the stock market. When the Dow rises precipitously, as it did today (Wednesday), the business press predicts an end to the Great Recession. When the stock market plummets, as it did last week, the Great Recession is said to be worsening. Pay no attention. The stock market has as much to do with the real economy as the weather has to do with geology. Day by day there's no relationship at … [visit site to read more]

A New ETN To Hedge In Volatile Markets Posted: 01 Sep 2010 03:17 PM PDT On Wednesday, the newest weapon in Barclay's arsenal, the Barclays ETN+ S&P Veqtor Exchange Traded Note (VQT), began trading giving investors yet another way to hedge against volatility in the S&P 500. The new ETN, which is a type of unsecured, unsubordinated debt security, tracks the S&P 500 Veqtor Index, which provides broad equity market exposure with an implied volatility hedge by allocating between equity, volatility, and cash.  The Index allocates assets among the … [visit site to read more]

Stock Market Valuation September 1st 2010 Posted: 01 Sep 2010 01:51 PM PDT I update market valuations on a monthly basis. The point of this article is to measure the stock market based on six different metrics. This article does not look at the macro picture and try to predict where the economy is headed. It only uses these six metrics which have been very good past indicators of whether the market is fairly valued. I collaborate with my colleague Doug Short for some of the data in the article. Doug is an expert on market valuations, and I encourage readers to visit … [visit site to read more]

Liberty Obtains New Credit Facility Posted: 01 Sep 2010 12:05 PM PDT Liberty Property Trust (NYSE:LRY), a leading real estate investment trust (REIT), has recently obtained a new $500 million unsecured revolving credit facility due November 2013 that replaced its existing $600 million credit facility scheduled to mature in January 2011. The new facility also contains an accordion feature that allows Liberty Property to increase its credit facility amount up to $750 million.   The borrowings under the new credit facility will bear interest at LIBOR plus 230 … [visit site to read more]

ABM Industries Misses Estimates Posted: 01 Sep 2010 12:05 PM PDT ABM Industries Inc. (NYSE:ABM) reported third-quarter 2010 operating earnings of 36 cents per share, lagging the Zacks Consensus Estimate of 41 cents by 5 cents. However, the results compare favorably with 30 cents reported in the prior-year quarter. Net operating income was $18.8 million, up 19.7% from $15.7 million in the third quarter of 2009. A focus on client retention, restructuring the Janitorial business, as well as sales pipeline expansion and cost control measures aided the company to … [visit site to read more]

Neutral On Plexus Posted: 01 Sep 2010 11:35 AM PDT A leading provider of electronic manufacturing services, Plexus Corp. (NASDAQ:PLXS) exhibited incremental growth opportunities in the first nine months of 2010. Results were well above the Zacks Consensus Estimate.   We believe Plexus will remain well positioned for growth in 2011, based on new customer wins and improving end-market demand and contributions from the Coca-Cola (NYSE:KO) win.   However, the weakening demand trends are reflected in its soft outlook for the fourth quarter of … [visit site to read more]

IBM Acquires Storwize Posted: 01 Sep 2010 11:35 AM PDT Information Technology giant International Business Machines Corp. (NYSE:IBM) announced the completion of its acquisition of Storwize, a privately held data storage company. The deal was announced in July. The financial details of the acquisition were not disclosed.   Based in Marlborough, Massachusetts, Storwize develops online data compression software. IBM pointed out that Storwize also develops technology that reduces the amount of physical space required by companies to store data such … [visit site to read more]

BJ’s On Expansion Track Posted: 01 Sep 2010 11:05 AM PDT BJ's Restaurants Inc. (NASDAQ:BJRI), based in Orange County, California, recently announced that it has opened an 8,000 square feet restaurant, which accommodates a seating arrangement for 280 guests in Colorado Springs, Colorado. This is the fourth BJ's restaurant in Colorado, following its other three eateries in Aurora, Westminster and Boulder.   Located at the intersection of I-25 and N. Nevada Avenue in the University Village shopping center, this new restaurant is sure to benefit … [visit site to read more]

Neutral On Excel Maritime Posted: 01 Sep 2010 11:05 AM PDT We initiate coverage for Excel Maritime Carriers Ltd. (NYSE:EXM) with a Neutral recommendation, which means the stock will perform mostly in line with the broader market. The company reported mixed financial results for the second quarter of 2010. Revenues beat the Zacks Consensus Estimate but EPS fell below it.   The company has a number of competitive strengths, like experienced management team, strong customer relationships, and cost-efficient operations. The surging BDI (Baltic Dry … [visit site to read more]

Good News For Alimera’s Pipeline Posted: 01 Sep 2010 10:35 AM PDT Recently, Alimera Sciences' (ALIM) pipeline received a boost when the US Food and Drug Administration (FDA) accepted the New Drug Application (NDA) for its lead candidate, Iluvien. Furthermore, the agency has decided to review the application on a priority basis. The company is looking to gain approval for Iluvien for the treatment of diabetic macular edema (DME). The company filed the NDA with the FDA in late June 2010. The US regulatory authority generally reviews those drugs on a … [visit site to read more]

Spectra Grows With Asset Purchase Posted: 01 Sep 2010 10:35 AM PDT Spectra Energy Corp. (NYSE:SE) has completed the acquisition of Bobcat Gas Storage assets. The company acquired these assets for $540 million from Haddington Energy Partners III LP and GE Energy Financial Services.   Spectra intends to spend $400–$450 million in the next five years for further development of these assets and bring the facility’s total working gas storage capacity to 46 billion cubic feet.   The Bobcat assets are strategically located on the Gulf Coast near Henry Hub. … [visit site to read more]

Afternoon Cartoon Posted: 01 Sep 2010 10:08 AM PDT A little afternoon humor, courtesy of cartoonist Robert Ariail of the Spartanburg … [visit site to read more]

Nissan To Boost China Output Posted: 01 Sep 2010 10:05 AM PDT Nissan Motor (NASDAQ:NSANY) has revealed it plan to open a joint venture assembling facility in South China with its partner Dongfeng Motor Corp. This will be the second facility of the cars and light commercial vehicles joint venture in the country. It already operates a plant in Zhengzhou, capital of Henan Province. By opening the new facility, Nissan intends to ease capacity constraints due to the rising demand at its existing plants in Huadu and Xiangfan. The two plants have been running … [visit site to read more]

DryShips Initiated As Neutral Posted: 01 Sep 2010 10:05 AM PDT We initiate our coverage for DryShips Inc. (NASDAQ:DRYS) with a Neutral recommendation, which means the stock will perform mostly in line with the broader market. The company's second quarter 2010 financial results outperform the Zacks Consensus Estimates. Both dry bulk and drilling segments improve their respective top-line and operating margin. The surging BDI (Baltic Dry Index) also predicts that the shipping sector may witness a rebound during the second half 2010. Nevertheless, we remain … [visit site to read more]

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