Tuesday, November 30, 2010

DailyMarkets.com - Currency Manipulation: Two Sides To Every Coin

DailyMarkets.com - Currency Manipulation: Two Sides To Every Coin

Currency Manipulation: Two Sides To Every Coin

Posted: 30 Nov 2010 11:57 AM PST

Recently, currency manipulation has garnered headline attention. We have been constantly bombarded with rhetoric out of Washington: "China isn't allowing its currency to appreciate fast enough"; "China's exchange rate policies are stealing jobs from America"; "We're playing fair, why can't China?" More often than not, the more vociferous proponents come from politicians who, in our opinion, are simply posturing for votes; attempting to provide catchy sound bites they … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Four Ways To Monitor The US Dollar And Risk Trade

Posted: 30 Nov 2010 11:54 AM PST

With European debt markets getting little relief thus far from the Ireland bailout, we need to keep a continued eye on the U.S. dollar. A weaker U.S. dollar tends to provide tailwinds for stocks, commodities, gold, and silver. Therefore, a longer-than-expected rally in the greenback may provide headwinds for these assets, with gold being the possible exception in the near-term.

We outlined some concerns relative to a dollar rally and risk aversion on November 10th. With the Federal … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Fred’s Posts Healthy Sales

Posted: 30 Nov 2010 11:35 AM PST

Fred's  Inc.(FRED- Analyst Report), a leading discount general merchandise store operator in the United States, recently posted healthy sales results for the four-week period ended November 27, 2010.
After registering a growth of 1.2% in October 2010, Fred's experienced comparable store sales growth of 4.7% in November. For the third quarter of 2010, comps climbed 1.5%. Increased store traffic and sound merchandise positively impacted the comparable store sales during the reported … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Accuray Lowered To Underperform

Posted: 30 Nov 2010 11:35 AM PST

We downgrade our recommendation for leading radiosurgery systems maker Accuray Incorporated (NASDAQ:ARAY) to Underperform following the company's lackluster first-quarter fiscal 2011 results and a tepid outlook. The first quarter loss per share of 8 cents was higher than the Zacks Consensus Estimate of a loss of 7 cents and the year-ago loss of 6 cents.
Net loss swelled 39% year over year on account of lower revenues. Sales dipped roughly 25% year over year, largely missing the Zacks Consensus … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Cemig Downgraded To Underperform

Posted: 30 Nov 2010 11:05 AM PST

We recently downgraded Companhia Energetica de Minas Gerais (NYSE:CIG), also known as CEMIG, from Neutral to an Underperform recommendation.
CEMIG is one of the largest integrated electric utilities in Brazil. It has more than 6,716 megawatts of installed generation capacity, deriving approximately 97% from hydroelectric power. 
Third Quarter Highlights
In the third quarter 2010, CEMIG's net earnings dipped 2.4% year over year to R$553.3 million (US$314.4 million), or R$0.89 per share, due … [visit site to read more] or compare Best Credit Cards and Best CD Rates

News Corp To Buy Wireless Generation

Posted: 30 Nov 2010 11:05 AM PST

News Corp. (NWSA )  has agreed to acquire 90% of Brooklyn-based education technology company Wireless Generation for a total consideration of $360 million in cash. The remaining 10% will be segregated between founder and CEO Larry Berger, President and COO Josh Reibel, and Executive Vice President and Chief Product Officer Laurence Holt who will continue to run the company.
A privately held company, Wireless Generation came into being in 2000. The company provides mobile and web … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Whitney Tilson On Insider Trading

Posted: 30 Nov 2010 10:51 AM PST

Whitney Tilson

I found some interesting comments by Whitney Tilson regarding the recent insider trading charges against several firms. Below are his comments:
Interesting to see that the insider trading case is related to soft dollars:
A sweeping insider-trading investigation is raising questions about how hedge funds and other big investors dole out a common, and controversial, currency that flows freely across Wall Street. The currency is known as soft dollars.

Stock brokerages award … [visit site to read more] or compare Best Credit Cards and Best CD Rates

KMP Remains On Growth Path

Posted: 30 Nov 2010 10:35 AM PST

The largest independent owner and operator of petroleum product pipelines in the U.S., Kinder Morgan Energy Partners L.P. (KMP) announced a 4.5% annualized increase in its cash distribution rate (or $4.60 vs. $4.40 per unit in 2010) for 2011. Total payout to its limited partners will be around $1.5 billion. At the same time, the partnership also retains its 2010 targeted distribution growth rate of 4.8% year over year.
Kinder Morgan generally serves as a benchmark for the master limited … [visit site to read more] or compare Best Credit Cards and Best CD Rates

How The Last Recession Shaped Up

Posted: 30 Nov 2010 10:35 AM PST

The recession is over. Or is it? Economic data assert it is safely behind us, but to most Americans, the change is not yet palpable. We are still reeling under the losses incurred during the recession, and trying to make better sense of what we have just been through.
In retrospect, what does our harrowing experience look like? Economists commonly describe the course of a recession as a V, U, W, or an L, denoting the ups and downs as they occur. Which of these does the latest phenomenon … [visit site to read more] or compare Best Credit Cards and Best CD Rates

AIG’s Exchange Offer Under-Tendered

Posted: 30 Nov 2010 10:35 AM PST

On November 23, American International Group Inc. (NYSE:AIG) announced the completion of its equity units exchange offering, whereby the company will exchange 4.9 million shares for 49.5 million corporate units by paying $161.8 million. However, this was only about two-third of the total 74.48 million of corporate units initially intended to be exchanged, leaving 28.9 million units outstanding.
Previously, AIG had also extended the expiry to November 23 from November 17, which was again postponed … [visit site to read more] or compare Best Credit Cards and Best CD Rates

AMAG Avoids Black Box Warning

Posted: 30 Nov 2010 10:35 AM PST

AMAG Pharmaceuticals Inc. (NASDAQ:AMAG) finally came to an agreement with the US Food and Drug Administration (FDA) regarding an updated label for Feraheme, thus resolving the matter which has been in discussion since the past two months. The shares reacted positively to the news, thereby boosting the stock.
Feraheme is an intravenous (IV) therapy for the treatment of iron deficiency anemia (IDA) in patients with chronic kidney disease (CKD). The drug can be used by patients irrespective of … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex Levels And Outlook For 30 November 2010: EUR/USD, GBP/USD, USD/JPY

Posted: 30 Nov 2010 10:30 AM PST

EUR/USD 1.30/1.2940 Target
Resistance 1:  1.3150; Resistance 2: 1.33;
Support 1: 1.30 (breaking); Support 2: 1.2940; Support 3: 1.2750

EUR/USD 11/30/2010

The EUR/USD shows no retracement attempt as it continues to dip below 1.30. The the market may find some support at 129.40. If there is a rebound from there, there are resistance pivots at 1.30, and 1.3150. On the downside, the market is looking to extend this decline towards 1.2750, and eventually to 1.26. This area, … [visit site to read more] or compare Best Credit Cards and Best CD Rates

ADC Telecommunications Outperforms

Posted: 30 Nov 2010 10:15 AM PST

ADC Telecommunications Inc. (NASDAQ:ADCT) declared excellent financial results for full-year 2010 that beat our expectations. Due to the change in the company's reporting fiscal year, management has compared results for the 12 month-period ended September 30, 2010 with the results of 11 months ended September 30, 2009. On July 12, 2010, Tyco Electronics Ltd. (NYSE:TEL) and ADC Telecommunications jointly announced that the two companies have entered into an agreement under which Tyco Electronics will … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Domain Names Grow At VeriSign

Posted: 30 Nov 2010 10:15 AM PST

Internet infrastructure services provider VeriSign Inc. (NASDAQ:VRSN) recently announced that the global base of internet domain names grew by nearly 3.8 million in the third quarter of 2010.
VeriSign's registry, security and communications services are essential for the smooth functioning of the online world. Moreover, the Internet keeps expanding. The use of the internet continues to increase phenomenally in Asia, much more than the combined markets of Europe and North America.
Registrations … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Coffee War Brewing As Starbucks – Kraft Rift Widens

Posted: 30 Nov 2010 10:08 AM PST

Seattle-based Starbucks Corp’s (NASDAQ:SBUX) impressive quarter had triggered a widespread Wall Street optimism, especially in the food and beverage sector, but analysts were keeping a close eye on the company after the coffee major had publicly announced its willingness to part ways with Kraft Foods Inc. (NYSE:KFT), a move that could shake up the single-cup coffee market in U.S. grocery stores.

Although the companies had expressed confidence to resolve the matter in private, the rift … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Did ‘Black Friday’ Mark The High For Retail Stocks?

Posted: 30 Nov 2010 09:55 AM PST

The retail sector has enjoyed a solid run off the August lows. The S&P 500 index gained 14.1% since the August low and XRT, SPDR S&P Retail Index ETF (XRT) has move 30.4%. The leadership from the sector has played a key role in the move of the broader index.

The sales data for the biggest shopping day of the year, 'Black Friday', was up 6.4% over 2009. However, the sector opened down 2.1% yesterday in response. Does this signal the top for the sector? It is too early … [visit site to read more] or compare Best Credit Cards and Best CD Rates

The End Of The US Dollar’s Rally?

Posted: 30 Nov 2010 09:53 AM PST

For the past week or so, the US dollar has rallied strongly against its major peers thanks to the drama in Ireland and in the Korean peninsula. Ireland needed about €85 billion ($114 billion) to help service its ballooning deficit and to provide some liquidity in its commercial banks. With the Irish economy contracting for the last three years, and its debt seen to exceed 120% of its total output, Ireland's long term credit score was downgraded. Last week, Ireland's credit rating … [visit site to read more] or compare Best Credit Cards and Best CD Rates

EUR/USD – Continued Steep Bearish Bias

Posted: 30 Nov 2010 09:46 AM PST

Price action on EUR/USD (a 4-hour chart of which is shown) as of Tuesday (11/30/2010) has just dipped tentatively under 1.3000, establishing a new 11-week low. P

rice action has continued its methodical bearishness of the past month (November), regularly breaking down below key support levels, pulling back (rallying) and retesting those previous support levels as resistance, and then continuing on its bearish way. This creates potential opportunities for short positioning on rallies … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Repsol May Reduce YPF Interest

Posted: 30 Nov 2010 09:35 AM PST

The Spanish oil integrated company, Repsol YPF S.A. (NYSE:REP) is planning to sell its 15% stake in its Argentine arm YPF SA. The divestiture is a part of the company's strategic moves toward reducing its holdings in Latin America.
Repsol will sell as much as 59.9 million shares of YPF at a maximum of $39.93 each, according to a U.S. Securities and Exchange Commission filing from YPF after the market closed on November 26. Repsol anticipates approximately $2.36 billion from this sale and intends … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Vale’s Secondary Public Offer

Posted: 30 Nov 2010 09:35 AM PST

Subsidiary of Brazilian mining giant, Vale S.A. (VALE), Mineração Naque S.A., declared the secondary public offer to acquire the balance 21.1% stake in Vale Fertilizantes S.A., Vale's fertilizer unit, for US$3.3 million. Vale recently acquired 20.27% in Vale Fertilizantes S.A. for $1.03 billion.
Currently, Vale is on a spending binge with a capital investment budget of $24 billion for fiscal 2011, more than double of $10.7 billion invested in the year ended September 30, 2010.
The … [visit site to read more] or compare Best Credit Cards and Best CD Rates

2nd Leg Of Home Price Declines Underway

Posted: 30 Nov 2010 09:35 AM PST

In September, home prices continued to slip, and the declines were very widespread. The Case-Schiller Composite 10 City index (C-10) fell 0.67% on a seasonally adjusted basis, and is up just 1.52% from a year ago. The broader Composite 20 City index (which includes the cities in the C-10) fell by 0.80% on the month and is up 0.55% from a year ago.

In August, the year-over-year gains were 2.50% for the C-10 and 1.61% for the C-20, so it looks like the year-over-year gains are rolling over. Of … [visit site to read more] or compare Best Credit Cards and Best CD Rates

The Showdown On Tax Cuts For The Rich

Posted: 30 Nov 2010 09:11 AM PST

The President met with Republican leaders at the White House this morning to talk about whether the Bush tax cuts should be extended to top taxpayers, at Republicans want.
 
No decision has been reached, but this is the first test of the President's resolve with the new Congress — and he should be tough as nails. The economics and politics both dictate it.
  
Taxpayers in the top 1 percent don't need it (they are now getting almost a quarter of all national income, the … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Digital Realty Gets Awarded

Posted: 30 Nov 2010 09:05 AM PST

Digital Realty Trust Inc. (NYSE:DLR), a niche real estate investment trust (REIT), was recently awarded the National Association of Industrial and Office Properties (NAIOP) 2010 Award of Excellence from the Northern Virginia Chapter for its new datacenter facility in Ashburn, Virginia.
The award was recognition of the unique technological design features, superior infrastructure and best-in-class asset management services employed in the facility. The property spanning 138,000 square feet of space … [visit site to read more] or compare Best Credit Cards and Best CD Rates

GM Sells Steering Biz To China

Posted: 30 Nov 2010 09:05 AM PST

General Motors (MTLQQ) has completed the sale of its Saginaw, Michigan-based Nexteer steering business to China-based Pacific Century Motors. Pacific Century Motors is a joint venture between Beijing-based auto components supplier Tempo Group and E-Town, the financing and investing arm of the Beijing municipal government.
None of the parties have disclosed the terms of the deal. However, some sources have revealed that the steering unit has been sold for about $450 million, making the biggest … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Oil Drops As Euro Decline Continues

Posted: 30 Nov 2010 08:58 AM PST

11/30/10 Front month crude prices fell this session following growing debt concerns for nations in the … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex Trading: EURUSD In Between Intraday Resistance And Support

Posted: 30 Nov 2010 08:50 AM PST

Dull Fiscal 2010 At Beacon

Posted: 30 Nov 2010 08:35 AM PST

Beacon Roofing Supply Inc. (NASDAQ:BECN) delivered earnings per share (EPS) of 37 cents in its fourth quarter ended September 30, 2010, falling short of the Zacks Consensus Estimate of 41 cents and 42 cents reported in the year-ago quarter. The results were hurt by weak industry and economic conditions and a lower gross margin rate, partially offset by reduced expenses, including lower interest expense and income taxes. Further, the year-ago period delivered record earnings, benefiting from strong … [visit site to read more] or compare Best Credit Cards and Best CD Rates

CHK Scoops Eagle Ford Acreages

Posted: 30 Nov 2010 08:35 AM PST

Chesapeake Energy Corporation (NYSE:CHK) signed a deal to acquire 23,180 net oil and natural gas leasehold acres in the Eagle Ford Shale area in south Texas from Australia’s Antares Energy Ltd. (NYSE:AZZ) and its partner, San Isidro Development Company. The acquisition will cost the company almost $200 million.
According to Antares, Chesapeake shelled out $8,628 per acre for its transactions in the area. The deal amount thereby represents a premium of more than 20% over the average value of last … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Toyota To Recall 650,000 Prius

Posted: 30 Nov 2010 08:30 AM PST

Toyota Motor Corp. (NYSE:TM) has announced that it will recall about 650,000 Prius cars worldwide in order to fix the hybrid system's cooling pumps. The automaker stated that the vehicles will be recalled to solely ensure customer satisfaction and not under any legal compulsion.
Toyota has received many complaints in and outside Japan, revealing that the cooling pumps are malfunctioning and causing the vehicles to overheat and lose power. However, no cases of injury or accidents related to the … [visit site to read more] or compare Best Credit Cards and Best CD Rates

CAT To Source Parts From China

Posted: 30 Nov 2010 08:30 AM PST

According to a Financial Times article, Caterpillar Inc. (NYSE:CAT) plans to fulfill the complex parts requirement of its current as well as upcoming manufacturing facilities in China by sourcing the same from Chinese suppliers rather than importing from Japan.
The company currently imports around 40% of components for its Chinese factories from Japan. The company intends to cut it down by at least a quarter within five years. Chinese suppliers will now have to expand their production beyond basic … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Trial Design Set For MDCO Candidate

Posted: 30 Nov 2010 08:30 AM PST

The Medicines Company (NASDAQ:MDCO) recently announced that the US Food and Drug Administration (FDA) has approved the design and planned analysis of the company's phase III program for oritavancin.
The Medicines Company is looking to conduct phase III studies with oritavancin in patients with acute bacterial skin and skin structure infection (ABSSSI). The studies will be conducted under the FDA's Special Protocol Assessment (SPA) program.
Phase III Program
The Medicines Company expects to … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Myriad Stays Neutral

Posted: 30 Nov 2010 08:30 AM PST

We recently reiterated our Neutral recommendation on Myriad Genetics (NASDAQ:MYGN).
Myriad reported an EPS of $0.24 for the first quarter of fiscal 2011, beating the Zacks Consensus Estimate by a penny. However, the EPS was 22.6% lower compared to $0.31 in the year-ago period. Revenues were $91.9 million, up 7.9% compared with the year-ago quarter's $85.1 million, but missed the Zacks Consensus Estimate of $93.0 million.
The company derives a majority of its revenues from Oncology, which increased … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Australian Dollar: Key ST Resistance At 10725

Posted: 30 Nov 2010 08:27 AM PST

Update on supports and resistances. … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Canadian Dollar: The Downside Prevails

Posted: 30 Nov 2010 08:27 AM PST

Update on supports and resistances. … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Trying To Find A Bottom

Posted: 30 Nov 2010 08:27 AM PST

Today’s Idea
The supply and demand fundamentals for Cotton remain very strong. However, China’s tightening may be the wild card, as the inability to get loans could undermine the supportive fundamentals. The chart is hinting that the market could see more downside on a strong close below 110.00. If the market is able to hold here, prices may stabilize or move higher. Some traders may wish to consider shorting the March futures contract on a close below 110.00, with a protective stop at 117.50 … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Mercado Abre A La Baja

Posted: 30 Nov 2010 08:25 AM PST

29-11-10 Índice del Standard & Poor’s Case Schiller cae 0,7% en … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Lowe’s Affirms 2010 Earnings Forecast

Posted: 30 Nov 2010 02:27 AM PST

11/30/10 Lowe’s announced Tuesday that it has affirmed its 2010 earnings forecast and sales … [visit site to read more] or compare Best Credit Cards and Best CD Rates
at

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