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Chasing Value: Time to Sell E*Trade?

E*Trade (ETFC) logoTwo weeks ago I decided to sell my shares of E*Trade (ETFC) after concluding it did not fit my investment criteria. It was one of my successful picks for 2010 and I made money having sold puts establishing a base price of $13.50. It closed Friday February 25 at $15.89.

I might not have chosen to post about this except for news that Ken Griffin's hedge fund Citadel Investment Group plans to sell much of its stake in E*Trade Financial. The largest shareholder selling out is news. Citadel will still hold valuable warrants, giving it the option of taking a very large position again, but for now there seems to be a change of heart for them as well.

Continue reading Chasing Value: Time to Sell E*Trade?

Week in Preview: Unemployment Rate, Retail Earnings, Bernanke Testimony

earnings expectationsThis week we turn the calendar page, and that change brings with it a raft of economic data. Scheduled for release on Monday are pending home sales and personal income numbers for January, as well as the Chicago PMI and car and truck sales data for February.

On Tuesday, look for the ISM Manufacturing Index for February and construction spending numbers for January. That's followed on Wednesday by the week's first employment data: the Challenger Job-Cuts announcement and the ADP employment report for February. Federal Reserve Chairman Ben Bernanke will deliver his semiannual monetary policy testimony before Congress on both days.

Continue reading Week in Preview: Unemployment Rate, Retail Earnings, Bernanke Testimony

Is Goodyear Undervalued?

Goodyear tiresGoodyear Tire and Rubber (GT) finally remounted major, psychological resistance at $10, pushing all the way to $15.35 this winter, before pulling back slightly. I first discussed the stock here on May 5, 2009, at a price of $13.30, and I obviously still like the shares.

Assuming the price of oil doesn't rise to the price of a preferred Bulova watch, the U.S. economic expansion will continue, and that demand, along with the global market, will generate at least adequate tire demand in the immediate years ahead.

Continue reading Is Goodyear Undervalued?

Ray of Light: Fed Sees Adequate U.S. GDP Growth for 2011-2013

Federal ReserveThe most recent datapoint of significance for investors has to be the U.S. Federal Reserve's revised summary of economic projections.

The Fed now sees a stronger U.S. economy in 2011, with the world's largest and most technologically advanced economy expected to grow 3.4% to 3.9%, up from the 3.0% to 3.6% November projection.

The Fed also expects the U.S. economy to grow 3.5% to 4.4% in 2012 and 3.7% to 4.6% in 2013, compared to the November estimates of 3.6% to 4.5% and 3.5% to 4.6%, respectively.

Continue reading Ray of Light: Fed Sees Adequate U.S. GDP Growth for 2011-2013

Increased Trading Volume and Regaining Market Share Essential for Nasdaq

NasdaqNasdaq OMX (NDAQ) is a leading global exchange group that runs the NASDAQ stock exchange. It is the largest cash equities securities market in the U.S. in terms of the number of listed companies and in the world in terms of share value traded. The company derives around 22% of its value from cash equity trading in the U.S. from Nasdaq stock market, Philadelphia stock exchange (PHLX) and Boston stock exchange (BX). Its main competitors are NYSE Euronext (NYX) and CME Group (CME).

We have a price estimate of $26.80 on Nasdaq OMX Group's stock which is about 6% below the current market price.

Continue reading Increased Trading Volume and Regaining Market Share Essential for Nasdaq

Comfort Zone Investing: Bubbles Always Burst

woman blowing a bubble - comfort zone investingIn the 1630's, it was tulips. More specifically, it was Semper Augustus, a tulip of extraordinary beauty; deep, deep blue with a band of white and touches of crimson flares. In its day, it was the must have thing. There was one man who owned the dozen flowers known to exist. He was offered the equivalent of one year's annual income from a wealthy merchant for one bulb. He turned it down.

Tulip prices increased throughout the decade as more speculators got into the game. In 1633, a farmhouse was traded for three rare bulbs. By 1636 any tulip could be sold for extraordinary sums. Futures markets started. Trades were made in fields or taverns, between farmers and merchants. Some bulbs were bought and sold 10 times in a day. One father left his seven children an inheritance of 70 tulips. One sold for the all-time record price of 5,200 guilders.

Then, one day in 1637 everyone decided to stop playing. No buyers showed up at the local tulip auction in Haarlem. Within days, panic started, then spread. Tulips that sold for 5,000 guilders soon went for less than 50. (Source: Tulipomania by Mike Dash)

Continue reading Comfort Zone Investing: Bubbles Always Burst

Canadian Pacific: Ride the Railroad Resurgence

Canadian Pacific Railway (CP) logoTake an investment page from Warren Buffett's playbook: Buffett likes the rails -- perhaps you should too? And Canadian Pacific Railway (CP) fits the bill.

Canadian Pacific was first discussed here on May 1, 2009, at a price of $37.47, and the stock continued to rise this winter after a period of choppy action last summer. Shares easily took out $60 resistance, tested $70, and will likely trend toward $80 by the end of 2011.

Canadian Pacific will probably register an impressive 7% to 9% revenue increase in 2011, after a 10% to 12% surge in 2010.

Continue reading Canadian Pacific: Ride the Railroad Resurgence

Options Update: Ford Volatility Flat; Shares Near Four-Month Lows

Ford (F) overall option implied volatility of 39 is near its 26-week average of 38, according to Track Data, suggesting nondirectional price movement.

JCPenney (JCP) announced better-than-expected cost controls and sales growth. Overall option implied volatility of 41 is near its 26-week average of 41, according to Track Data, suggesting nondirectional price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

DreamWorks Animation Drops After Earnings: Buying Opportunity?

DreamWorks Animation (DWA) was trading lower this afternoon in response to the company's latest earnings report which was released yesterday after the bell. At the time of this writing, the stock was down 2.4% to $27.43. That might sound bad, but it's actually a higher price than the intraday low of $26.71 (for further perspective, consider that the 52-week low for the shares is $26.61).

According to the Associated Press, the cartoon studio made an adjusted 47 cents per share. Oh man, know what the overall estimate was? Try 75 cents per share. Huge disparity. Honestly, I'm shocked the stock didn't drop beyond the 52-week low today based on such performance.

Continue reading DreamWorks Animation Drops After Earnings: Buying Opportunity?

Consider American Tower, Because It's Becoming a Wireless World

Most Americans go to an ATM to obtain some cash, but in the years ahead an AMT may dispense you some cash, as well, if you purchase shares in American Tower Corporation (AMT).

American Tower manages the largest independent portfolio of wireless communications and broadcast towers in North America. AMT currently manages more than 33,000 towers.

American T leases space on multi-tenant communications towers to wireless service providers, and radio/TV companies.

Continue reading Consider American Tower, Because It's Becoming a Wireless World

Coverage Launch: $57.50 Trefis Price Estimate for Las Vegas Sands

Las Vegas Sands (LVS) is a developer, owner and operator of destination casino resorts. It operates in the U.S., Macau, and Singapore. Competitors include Wynn Resorts, Limited (WYNN), MGM Resorts International (MGM), SJM (HKG:0880), Galaxy (HKG:0027) and Harrah's among others.

Continue reading Coverage Launch: $57.50 Trefis Price Estimate for Las Vegas Sands

Sales and Trading Key to Turning Morgan Stanley's Stock Around

Morgan Stanley (MS)Morgan Stanley (MS) is a global financial services firm that is engaged in four distinct business areas: investment banking, sales & trading, wealth management for high net worth individuals and asset management. It competes with other global financial services firms like Goldman Sachs (GS), Citigroup (C), UBS (UBS) and Credit Suisse (CS).

Continue reading Sales and Trading Key to Turning Morgan Stanley's Stock Around

Closing Bell: What Geopolitical Scare? (AAPL, DMD, NTRI, OVTI, SRZ, TRLG)

Today brought a recovery rally as no more solid developments came out of Libya despite the continuous turmoil. A lower revision to GDP came from state spending and a University of Michigan confidence reading at a 3-year high that came out was from before the Libya situation exploded.

Here were today's unofficial closing bell levels:

Dow Jones 12,130.45 +61.95 (0.51%)
S&P 500 1,319.88 +13.78 (1.06%)
Nasdaq 2,781.05 +43.15 (1.58%)

Continue reading Closing Bell: What Geopolitical Scare? (AAPL, DMD, NTRI, OVTI, SRZ, TRLG)

Bank of America New Account Fees Could Add Slight Additional Upside

Bank of America (BAC) logoBank of America (BAC), the largest bank in the U.S. based on the level of deposits, is testing new fee structure for its checking account service, which used to be free. The new pilot program for the customers in Arizona, Georgia and Massachusetts allow the customers to apply for various account types with a monthly fees ranging from $6 to $25. The bank plans to expand the program nationally later this year. Other banks such as JPMorgan (JPM), Citigroup (C) and Wells Fargo (WFC) have introduced new fees on the checking account service after the Dodd-Frank financial reform bill restricted banks from charging merchants processing fees on debit card transactions.

Continue reading Bank of America New Account Fees Could Add Slight Additional Upside

Ashland Is in an Uptrend

If, as outlined in December 2010, you took advantage of chemical company Ashland Inc.'s (ASH) dip to $49 to scoop-up shares, you made the correct move.

Ashland, re-considered on August 27, 2010 at a price of $48 after an initial $21 (80%) gain, exhibited sideways stock action last summer/fall, but has since ascended this winter to $56, after a test of $60, and I obviously still like the business model here.

Ashland will likely post a 5-6% revenue increase in 2011, propelled by a stronger performance in all business units.

Continue reading Ashland Is in an Uptrend

Next Page >

Symbol Lookup
IndexesChangePrice
DJIA+61.9512,130.45
NASDAQ+43.152,781.05
S&P; 500+13.781,319.88

Last updated: February 27, 2011: 09:32 PM

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