BloggingStocks

Should Geithner eliminate speculation in financial derivatives?

Connie Madon — Sat, 11 Jul 2009 17:30:00 EST

Filed under: Market matters, Options, Financial Crisis

First of all, let's look at what hedging really is. Take, for example, a farmer who grows corn. He knows that his cost for growing corn is, say, $3.00 per bushel. But he doesn't know what price the price of bushel of corn will be come harvest time. He looks at the September futures contract for corn and sees that the price is $3.30 per bushel.

To guarantee that he will get $3.30 at harvest time, he sells September corn contracts equal to his crop (each corn contract equals 5,000 bushels). When harvest time comes he delivers his corn to the appropriate delivery point designated by the Chicago Board of Trade exchange (CBOT) where the contracts are traded. It should be noted that if the price of the futures contract goes above $3.30 per bushel, the farmer may be called for margin money until he makes delivery, at which time his account is settled out.

Continue reading Should Geithner eliminate speculation in financial derivatives?

Should Geithner eliminate speculation in financial derivatives? originally appeared on BloggingStocks on Sat, 11 Jul 2009 17:30:00 EST. Please see our terms for use of feeds.

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Wireless Stock Watch: Shares of Ceragon are set for a rebound

Nikhil Hutheesing — Sat, 11 Jul 2009 16:00:00 EST

Filed under: AT and T (T), Research in Motion (RIMM)

Tel-Aviv based Ceragon Networks (NASDAQ: CRNT) will be releasing its second quarter earnings on July 20. After a miserable first quarter, in which profits fell 95% over the year-ago quarter, investors are skittish about the stock's prospects. My view: for investors, Ceragon is a good long-term play.

Here's why. First, the company has got a great business. It is a key player in helping wireless carriers increase the speed at which data flows over their networks. The company's equipment connects wireless base stations to a mobile operator's main network, where traffic flows. It's this transmission technology that is critically important to carriers as demand for data services -- and for smartphones -- rises. And they are both rising.

Continue reading Wireless Stock Watch: Shares of Ceragon are set for a rebound

Wireless Stock Watch: Shares of Ceragon are set for a rebound originally appeared on BloggingStocks on Sat, 11 Jul 2009 16:00:00 EST. Please see our terms for use of feeds.

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Biotech stock #3: Cepheid (CPHD)

Michael Shulman — Sat, 11 Jul 2009 14:30:00 EST

Filed under: Stocks to Buy

When my son had a huge boil under his arm, it turned out that it was filled with the killer staph, MRSA. It also turns out that my (otherwise) great doctor used a traditional lab to process the test, which took a week to determine it was MRSA.

Cepheid (NASDAQ: CPHD) manufactures the equipment and test that takes just two hours to do the same thing -- and is better and cheaper than traditional tests. CPHD wins 90%-plus of all competitive bids and its test could be available in low-tech facilities, such as doctor's offices or nursing homes, next year.

The big catalyst for this stock, however, is that Medicare will stop paying for all hospital-acquired infections except MRSA in October. So institutions need a quick test if they are going to be reimbursed for treatment.

The stock has fallen from $30 to under $9. It's worth $20 - $22 to an acquirer.

Your best strategy for life-changing profits?

Buy the call options.

Next: Biotech Stock #4

Continue reading Biotech stock #3: Cepheid (CPHD)

Biotech stock #3: Cepheid (CPHD) originally appeared on BloggingStocks on Sat, 11 Jul 2009 14:30:00 EST. Please see our terms for use of feeds.

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Biotech stock #2: Questcor Pharmaceuticals (QCOR)

Michael Shulman — Sat, 11 Jul 2009 13:00:00 EST

Filed under: Stocks to Buy

Imagine a company with 90%-plus margins and huge cashflow that uses its cash to carefully expand its business and buy back stock -- with a P/E under 8! That's Questcor Pharmaceuticals (NASDAQ: QCOR).

QCOR has a treatment that is approved for spasms from multiple sclerosis, but is mostly used to treat radical infantile spasms that kill or retard babies.

Your best strategy for life-changing profits?

Buy the stock and wait for it to appreciate or for the company to get bought out. You could also buy the (illiquid) options, or buy the stock and sell the calls.

Next: Biotech Stock #3

Biotech stock #2: Questcor Pharmaceuticals (QCOR) originally appeared on BloggingStocks on Sat, 11 Jul 2009 13:00:00 EST. Please see our terms for use of feeds.

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Lenny Dykstra's trainwreck CNBC interview

Zac Bissonnette — Sat, 11 Jul 2009 11:30:00 EST

Filed under: Scandals, Business of sports

It's hard to know where to begin in addressing this interview, so you pretty much just have to watch it: Days after filing for Chapter 11 bankruptcy protection, retired outfielder Lenny Dykstra sat down with CNBC's Jane Wells to explain what happened.

The result is probably the most awkward 18 minutes and 32 seconds of television you'll ever see in your life. It's hard not to feel bad for him -- it's been an MC Hammer-like rise and fall, and I can't even imagine what that's like to go through. But why the heck would he go on CNBC to offer such incoherent rambling? Why would his lawyers let him do this?

Lenny Dykstra's trainwreck CNBC interview originally appeared on BloggingStocks on Sat, 11 Jul 2009 11:30:00 EST. Please see our terms for use of feeds.

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Comfort Zone Investing: The glass isn't half empty -- it's half full

Ted Allrich — Sat, 11 Jul 2009 10:30:00 EST

Filed under: General Electric (GE), Coca-Cola (KO), International Business Machines (IBM), Comfort Zone Investing

Summertime....and the livin' ain't easy. The economy's in worse shape than the administration thought, even after pumping hundreds of billions of dollars into it. More people are losing their jobs. Unemployment's at 8.5% and according to many economists will go higher, maybe above 10% before the layoffs stop. Gas at the pump has gone above $3 again, even with the price of oil starting to show some weakness. Home prices are still going down and foreclosures continue to rise. Defaults on consumer credit is at all-time highs. When will it ever end?

Don't know. No one does. But that isn't a reason to stop investing, to quit preparing your portfolio for the next big upward move that will surely come. You doubt that? Just look at a price chart for the Dow Jones Industrial Average over the last 100 years. It's full of periods where the line is going down, only to be followed by large increases on the upside. Unless the whole capitalist system is gone forever, history will repeat. There will be an upward swing to this market, and it's more likely sooner rather than later.

Continue reading Comfort Zone Investing: The glass isn't half empty -- it's half full

Comfort Zone Investing: The glass isn't half empty -- it's half full originally appeared on BloggingStocks on Sat, 11 Jul 2009 10:30:00 EST. Please see our terms for use of feeds.

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Biotech stock #1: Gilead Sciences (GILD)

Michael Shulman — Sat, 11 Jul 2009 09:00:00 EST

Filed under: Gilead Sciences (GILD), Stocks to Buy

Few would argue with the claim that Gilead Sciences (NASDAQ: GILD) is the best-managed biopharma company on the planet.

It dominates the HIV treatment market and gets a 19%-plus royalty on Tamiflu, which is used to treat H1N1 (swine) flue. Gilead also has several drugs on or headed for the market to treat pulmonary disease and hard-to-treat high blood pressure.

Your best strategy for life-changing profits?

Buy the stock and sell the calls (then use the cash to buy puts on the market, which is headed down further.) Or buy long-term calls and keep an eye on them.

Next: Biotech Stock #2

Biotech stock #1: Gilead Sciences (GILD) originally appeared on BloggingStocks on Sat, 11 Jul 2009 09:00:00 EST. Please see our terms for use of feeds.

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Six bang-for-your-buck biotech stocks

Michael Shulman — Sat, 11 Jul 2009 08:00:00 EST

Filed under: Gilead Sciences (GILD), Stocks to Buy

Last year, as the market sank, one group actually went up -- large-cap, cashflow positive biotech and genomics companies.

This year, interest has shifted to the little guys -- the speculative biotech stocks that could be 10- or 20-baggers with one breakthrough.

Here are six biotech stocks with the potential to deliver life-changing profits:

Biotech Stock #1: Gilead Sciences (NASDAQ: GILD)
Biotech Stock #2: Questcor Pharmaceuticals (NASDAQ: QCOR)
Biotech Stock #3: Cepheid (NASDAQ: CPHD)
Biotech Stock #4: Curis (NASDAQ: CRIS)
Biotech Stock #5: Cerus Corp. (NASDAQ: CERS)
Biotech Stock #6: Illumina (NASDAQ: ILMN)

Six bang-for-your-buck biotech stocks originally appeared on BloggingStocks on Sat, 11 Jul 2009 08:00:00 EST. Please see our terms for use of feeds.

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California I.O.U.'s have hit home -- ugh!

Sheldon Liber — Fri, 10 Jul 2009 18:00:00 EST

Filed under: Other issues, Bad news, Management, Rants and raves, Scandals, Politics, Headline news, Recession, Financial Crisis

It was bound to happen. It is probably unavoidable for anyone to escape the cloud of California I.O.U.'s. Today one of my investment partners informed me that we received an I.O.U. from the State for space they lease in an office building where the State is one of the major tenants.

I'm sure our lender will be more than happy to take the I.O.U. instead of our regular mortgage payment -- for now -- maybe.

Continue reading California I.O.U.'s have hit home -- ugh!

California I.O.U.'s have hit home -- ugh! originally appeared on BloggingStocks on Fri, 10 Jul 2009 18:00:00 EST. Please see our terms for use of feeds.

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Pimco's Kiesel says: "sell your junk."

Connie Madon — Fri, 10 Jul 2009 17:40:00 EST

Filed under: Money and Finance Today, Housing, Recession

Mark Kiesel, at Pimco's Pacific Investment Management Company says it's best to sell your junk bonds now. Why is he saying this? The key factor is that economic growth is not there. Kiesel looks for only 1-2% growth in GDP next year.

All of this talk about "green shoots" simply is not materializing. Kiesel says the "green shoots" are turning to weeds. He further said that credit is not re circulating. Business financing costs range from 10-12%, making it difficult for some businesses to stay afloat.

Continue reading Pimco's Kiesel says: "sell your junk."

Pimco's Kiesel says: "sell your junk." originally appeared on BloggingStocks on Fri, 10 Jul 2009 17:40:00 EST. Please see our terms for use of feeds.

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Consumer sentiment down, according to everyone

Tom Johansmeyer — Fri, 10 Jul 2009 17:20:00 EST

Filed under: Recession, Financial Crisis

There are two competing positions on consumer sentiment right now. One is that it turned south last week, as people worried about their jobs - always a bad sign for spending. The other is that consumer sentiment didn't crap out in July: it fizzled in May. So, it's not a question of whether consumers aren't confident in the U.S. economic machine, it's just a matter of when the collective mood changed.

The July camp is set up around the Reuters/University of Michigan Surveys of Consumers, which makes now the weakest point for consumer sentiment since March. Those who favor May look to domestic demand for foreign goods, which went soft two months ago, bringing the monthly trade deficit to its narrowest since 1999. The U.S. trade gap unexpectedly tightened to $26 billion in May, with exports up 1.6% and imports down 0.6%, according to the U.S. Department of Commerce.

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Consumer sentiment down, according to everyone originally appeared on BloggingStocks on Fri, 10 Jul 2009 17:20:00 EST. Please see our terms for use of feeds.

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Regis equity raise offers lessons, stock still a sell

James Cullen — Fri, 10 Jul 2009 17:00:00 EST

Filed under: Competitive strategy, Stocks to Sell

Paul Foster says that options activity in salon company Regis Corporation (NYSE: RGS) indicates the stock is likely to have non-directional price movements over the short-term, following the company's announcement of a stock and debt offering. That could very well be true, but I think the short-term is overanalyzed, and the long-term story here is much clearer -- and Regis offers two important lessons about how to better-analyze the financing and operations of a company.

I was first introduced to Regis about a year ago, when the stock was part of a portfolio of about 35 positions I inherited responsibility for. As I went through the holdings and segmented them out into categories of attractiveness, Regis was consistently ranked near the bottom. The industry itself was unattractive, and the way the company implemented its strategy seemed to leave it particularly vulnerable to adverse financial markets.

Continue reading Regis equity raise offers lessons, stock still a sell

Regis equity raise offers lessons, stock still a sell originally appeared on BloggingStocks on Fri, 10 Jul 2009 17:00:00 EST. Please see our terms for use of feeds.

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What will happen if Baby Boomers retire with 401Ks that look like 201Ks?

Joseph Lazzaro — Fri, 10 Jul 2009 16:40:00 EST

Filed under: Forecasts, Employees, Politics, Recession

Academics, being a privileged and rarefied lot, almost by second nature consistently look down the field.

Hey, it's what one is supposed to do when one has lifetime job security and is freed of many of the burdens that occupy most others in the American workforce.

For the above reasons, and others, academics tend to see things others don't. Case in point: the slumping stock market, the U.S. recession, and decidedly less-cash-flush credit markets.

Continue reading What will happen if Baby Boomers retire with 401Ks that look like 201Ks?

What will happen if Baby Boomers retire with 401Ks that look like 201Ks? originally appeared on BloggingStocks on Fri, 10 Jul 2009 16:40:00 EST. Please see our terms for use of feeds.

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How much of an exit package should Richard Wagoner get?

Zac Bissonnette — Fri, 10 Jul 2009 16:20:00 EST

Filed under: General Motors (GM)

Nearly four months after being pushed out as CEO, former General Motors head honcho Richard Wagoner is still officially an employee of the company. The reason? The company is still trying to figure out how much it has to give him to go away and keep his mouth shut.

The Wall Street Journal reports (subscription required) that "GM is keeping Mr. Wagoner on staff -- albeit only technically -- as the government decides on pay and benefit criteria for the company's top officers, obligations that will be the responsibility of the new GM once it emerges from bankruptcy protection, company spokeswoman Julie Gibson said."

Wagoner could be eligible for pension benefits valued at around $20 million, but GM and the United States government have concluded that that's simply too much to pay someone for destroying a company.

It's not yet clear how much Wagoner will end up settling for but one thing is certain: It will be far, far more than he would receive in any merit-based system.

If Richard Wagoner gets a Greyhound bus ticket to haul himself back to Delaware, it will be way, way too much.

How much of an exit package should Richard Wagoner get? originally appeared on BloggingStocks on Fri, 10 Jul 2009 16:20:00 EST. Please see our terms for use of feeds.

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Closing Bell: When you are just glad the closing bell came (AIG, DELL, GMGMQ, CSCO, POT)

Jon Ogg — Fri, 10 Jul 2009 16:00:00 EST

Filed under: Cisco Systems (CSCO), Dell (DELL), General Motors (GM), Amer Intl Group (AIG), Potash Corp. of Saskatchewan (POT)

The University of Michigan has reported that its preliminary consumer sentiment report for July was atrocious. This was also probably the last day ahead of earnings season where traders could expect it to be quiet ahead of next week's earnings season flurry.

Here were the unofficial closing bell levels:

Dow 8,123.69 -59.48 (-0.73%)
S&P 500 877.40 -5.28 (-0.60%)
Nasdaq 1,753.38 +0.83 (0.05%)

Goldman Sachs Upgrades/Downgrades

Continue reading Closing Bell: When you are just glad the closing bell came (AIG, DELL, GMGMQ, CSCO, POT)

Closing Bell: When you are just glad the closing bell came (AIG, DELL, GMGMQ, CSCO, POT) originally appeared on BloggingStocks on Fri, 10 Jul 2009 16:00:00 EST. Please see our terms for use of feeds.

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Reiterating: United Technologies - The jet age has just begun

Joseph Lazzaro — Fri, 10 Jul 2009 15:50:00 EST

Filed under: United Technologies (UTX), Stocks to Buy

I'm reiterating my Buy rating for United Technologies (NYSE: UTX), first recommended on February 13, 2009 at a price of $47.09.

True, the recession has caused air travel - leisure and business - to sag, but nothing in this era suggests the United States' two most prominent expressions of modernism - the skyscraper and airplane - are likely to be in less demand, as the U.S./global economic recoveries begin. The First Call FY2009/FY2010 EPS estimates for UTX are $4.09 to $4.44.

Continue reading Reiterating: United Technologies - The jet age has just begun

Reiterating: United Technologies - The jet age has just begun originally appeared on BloggingStocks on Fri, 10 Jul 2009 15:50:00 EST. Please see our terms for use of feeds.

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PriceSmart not a buy after Q3 results

Steven Mallas — Fri, 10 Jul 2009 15:35:00 EST

Filed under: Earnings reports, Wal-Mart (WMT), Costco Wholesale (COST)

PriceSmart (NASDAQ: PSMT), an operator of warehouse clubs in Central America and the Caribbean and headquartered in San Diego, announced results for the third quarter on Friday. Judging by the reaction to the stock, I'd say the market wasn't too thrilled by the company's performance. As I write this, PriceSmart shares are down almost 14% on heavy volume in afternoon trading.

Net warehouse sales increased nearly 8%. Total revenue went up by a similar amount. Earnings came in at 30 cents per diluted share. Unfortunately, that means that PriceSmart's bottom line declined by 17%.

Continue reading PriceSmart not a buy after Q3 results

PriceSmart not a buy after Q3 results originally appeared on BloggingStocks on Fri, 10 Jul 2009 15:35:00 EST. Please see our terms for use of feeds.

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Gurus Roubini and Shiller see the need for more stimulus

Connie Madon — Fri, 10 Jul 2009 15:20:00 EST

Filed under: Forecasts, Money and Finance Today, Recession, Financial Crisis

The guru's of the present financial crisis, Nouriel Roubini and Robert Shiller, are saying that the present financial crisis may continue for another six months. They cite the psychological mood during the Great Depression when people were gripped with "fear," a fear that prolonged the depression and which President Franklin Roosevelt addressed.

People are not seeing job creation or an improvement in the economy. Consumer sentiment is deteriorating. The stock market is falling again. Specifically they cite:

Consumer confidence fell to 49.3 in June from 54.8 in May.
The economy shrank 5.5% in the first quarter.
The savings rate reached 6.9% in May, the highest since 1993.
Home prices in seven metropolitan areas fell .7% in April.

Continue reading Gurus Roubini and Shiller see the need for more stimulus

Gurus Roubini and Shiller see the need for more stimulus originally appeared on BloggingStocks on Fri, 10 Jul 2009 15:20:00 EST. Please see our terms for use of feeds.

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Reiterating: Verizon - A smooth oceanliner amid choppy seas

Joseph Lazzaro — Fri, 10 Jul 2009 15:00:00 EST

Filed under: Verizon Communications (VZ), Stocks to Buy

I'm reiterating my Buy rating for Verizon (NYSE: VZ), first recommended on February 12, 2009 at a price of $29.86.

Verizon has born the brunt of the recession and related credit shocks well. Further, while VZ's landline business will continue to be pressured by wireless, cable, and Internet phone services, FiOS will prevent some of that attrition. Meanwhile, VZ's dividend is rock solid and it has ample cash.

Continue reading Reiterating: Verizon - A smooth oceanliner amid choppy seas

Reiterating: Verizon - A smooth oceanliner amid choppy seas originally appeared on BloggingStocks on Fri, 10 Jul 2009 15:00:00 EST. Please see our terms for use of feeds.

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Redfin shows it is possible to make money in residential real estate

Tom Taulli — Fri, 10 Jul 2009 14:40:00 EST

Filed under: Next big thing

It's encouraging to see success with new ventures - especially in times like these. And, it looks like Redfin fits the bill.

In June, the company posted its first profit, with a 300% year-over-year increase in unique visitors. This is certainly impressive since Redfin is an online provider of real estate services. In fact, the consensus has been that eventually the company would eventually die.

Continue reading Redfin shows it is possible to make money in residential real estate

Redfin shows it is possible to make money in residential real estate originally appeared on BloggingStocks on Fri, 10 Jul 2009 14:40:00 EST. Please see our terms for use of feeds.

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BloggingStocks

Should Geithner eliminate speculation in financial derivatives?

Wireless Stock Watch: Shares of Ceragon are set for a rebound

Biotech stock #3: Cepheid (CPHD)

ADVERTISEMENT:

Biotech stock #2: Questcor Pharmaceuticals (QCOR)

Lenny Dykstra's trainwreck CNBC interview

Comfort Zone Investing: The glass isn't half empty -- it's half full

Biotech stock #1: Gilead Sciences (GILD)

Six bang-for-your-buck biotech stocks

California I.O.U.'s have hit home -- ugh!

Pimco's Kiesel says: "sell your junk."

Consumer sentiment down, according to everyone

Regis equity raise offers lessons, stock still a sell

What will happen if Baby Boomers retire with 401Ks that look like 201Ks?

How much of an exit package should Richard Wagoner get?

Closing Bell: When you are just glad the closing bell came (AIG, DELL, GMGMQ, CSCO, POT)

Reiterating: United Technologies - The jet age has just begun

PriceSmart not a buy after Q3 results

Gurus Roubini and Shiller see the need for more stimulus

ADVERTISEMENT:

Reiterating: Verizon - A smooth oceanliner amid choppy seas

Redfin shows it is possible to make money in residential real estate