Category: Blog
S&P Emini Pivot Points for 11.16.2012
S&P Emini Pivot Points for 11.15.2012
AAPL & GOOG Daily Pivot Levels for 11.15.2012
ABT May Cure Your Portfolio (Part 1) 11.14.12
ABT announced the idea to split the stock on October 18th, 2011. The company plans to be split by 12/31/12. The press release said the, “Two publicly traded companies will offer shareholders distinct opportunities given unique investment identities, business profiles and attributes” and “builds on a decade of strategic and operational advancements.”
One company will be the research-based pharmaceutical firm and will focus on select specialty products with breakthrough innovation that serve patient needs in some of the most critical medical areas, such as immunology, Multiple Sclerosis, chronic kidney disease, Hepatitis C, women’s health and oncology. This company will continue to generate the majority of its revenue from developed markets. The company’s sustainable portfolio and advancing pipeline, including established biologics expertise, have the potential to deliver accelerating revenue growth in the coming years.
Then the other firm, the diversified medical products company, will be one of the largest and fastest growing investment opportunities in medical products with strong sales and ongoing earnings-per-share growth and a large, broad mix of products addressing many essential areas of health care. It will generate nearly 40 percent of its sales in high-growth emerging markets, with further expansion expected in the coming years.
AbbVie will be the drug portfolio and pipeline company, while Abbott, with nutritional products and devices, will be the other firm. More to come with this story.
Data from ABT IR
Apple & Google Pivot Points for 11.14.2012
A golden Opportunity 11.13.2012
It has been reported that the Chinese have imported more Gold from Hong Kong; further diversifying away from king dollar; more specifically, in September Chinese total imports increased by 30%. This figure is in line with historical efforts by the Chinese…rising to a total of 69.7 tons.
Another headline includes the looming fiscal cliff. Perhaps the closest thing to look at historically was how the respective markets acted during the USA debt ceiling and debt downgrade debacle. During this period of volatility, there was a clear divergence between gold and the equity markets. The current correlation coefficient is around a 0.64 (weekly bars over ten periods). Should the fiscal cliff happen tomorrow, given the aforementioned coefficient, one would expect the gold market to fall with the equity market. However, this coefficient has been anything but smooth over the years. It has flipped around from positive to negative many times over. The only thing that can be guaranteed it basically volatility.
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First Business Interview 10.29.2012
CNBC Interview 10.30.2012
Market Refresh: Post Sandy and David Einhorn Stocks 10.31.12
Ford (F) reported third quarter EPS of $0.40 vs an estimated $0.30; 33% beat. Revenue came in at $30.9 billion vs an estimated $31.07B. This was the best third quarter ever for F…mostly fueled my North America. F battled above its 150 day moving average (DMA) on 10/26/12. The 50 DMA sits at $10 even. The USA automotive sector seems to be running on all cylinders, in related news famed and feared hedge fund manager, David Einhorn, recently talked up shares of GM at the Value Investing Congress.
Mr. Einhorn also talked down shares of CMG. Here Mr. Einhorn pointed out that competition from Taco Bell, YUM, should be taking incremental share away from the higher priced CMG. While there is no doubt in the minds of value investors, especially given the record of Greenlight Capital (Mr. Einhorn’s Fund), he is correct…the technical picture is what some traders will be looking at however. CMG is quickly approaching the earnings gap day open, more specifically 10/19/12’s open of $251.95. Perhaps a close above this figure could trigger short covering into said gap, just as a trade, for the market has been favoring the shorts for some time now…and when most are leaned to one side of the boat, maybe it is best to fade them…for a short while.
Another controversial stock has been HLF. Here Mr. Einhorn appropriately pointed out some items of interest during their conference call, and since then the stock has tumbled 28%. HLF released earnings while the market was closed. HLF guided FY13 EPS $4.40-$4.55 vs $4.52 estimated and guided Q4 EPS $0.97-$1.01 vs $0.98 estimated. For Q3 HLF reported $1.04 vs $1.01 and revenue of $1B vs $996M. Management pointed out double-digit volume growth in all their geographic locations, but it will be interesting to see what the stock actually does considering all this news and HLF’s short interest (14%).
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