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1600.0
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2012-06-21 00:00:00 UTC
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An Important Update on 2 of My Real-Money Portfolio Holdings
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AA
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https://www.nasdaq.com/articles/important-update-2-my-real-money-portfolio-holdings-2012-06-21
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nan
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nan
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If you're a subscriber of my $100,000 Real-Money Portfolio , then you know I've been focusing on stocks that have the potential for serious multi-year gains. By definition, this means stocks that are out of favor right now. And in the face of a tough stock market this spring, many have them have stayed out of favor.
The portfolio is off roughly 7%, but I'm undeterred because I know I own a basket of compelling long-term opportunities and expect my patience to be rewarded -- handsomely.
The key for these stocks is to start delivering on the thesis I've laid out for them. As an example, I was early to the game with my pick of battery maker Exide Technologies (Nasdaq: XIDE ) , as the company went on to offer another dismal quarter after I bought it. Yet Exide has begun to turn the corner , with shares beginning the month trading at just $2.30, but since rallying 35% to above $3. I'm still underwater with this pick, but I expect the company's turnaround efforts to slowly being recognized by more investors, eventually getting this stock back above $5, where it stood last summer.
The FDA validates this biotech stock
Another pick in portfolio is showing signs of life as well. Shares of Ligand Pharmaceuticals (Nasdaq: LGND ) are up more than 20% this week on word that the Food & Drug Administration (FDA) is likely to approve the drug carfilzomib when it votes on July 27. This is a blood cancer drug being developed by Onyx Pharmaceuticals. (Nasdaq: ONXX ), which traded up a hefty 40% on the news.
Why is this good news for Ligand?
Because this drug has been paired with Ligand's captisol technology, which has clearly boosted the drug's efficacy in clinical trials. Captisol works to make existing drugs more stable, leading to more precise dosing, which I discussed in February .
As I noted back then, Onyx's "carfilzomib could be on the market a year from now. The company and the analysts who follow Ligand say this drug also has the potential to be a blockbuster." Now, it appears that sales will begin in 2012, not in 2013 as I anticipated, which means that Ligand's 2.7% royalty streams on carfilzomib sales will help bring in cash as soon as the third quarter.
The opportunity for captisol -- in tandem with carfilzomib -- may be even greater than many analysts had been expecting. Onyx apparently intends to test the drug in higher doses, which would call for a higher usage of captisol as well. As of now, analysts expect carfilzomib generate $350 million to $550 million in sales by 2016, which translates into $10-15 million in annual royalties for Ligand by then. Onyx is also working with another captisol-enhanced drug -- Opromozib -- which is currently slated to enter Phase II clinical trials.
I am equally intrigued by the validation that likely (though not guaranteed) FDA approval brings to the technology. Ligand is working with a range of other drug firms, and a rejection might have led those partners to second-guess their own captisol-related drug development efforts.
[block:block=16]Risks to Consider: As is the case with any biotech, it's virtually impossible to gauge any sort of timeline of future activity. Many of the key drivers for this stock are out of Ligand's hands and in the hands of partners. This stock could be dead money for a few quarters, or we may hear of more stock catalysts in coming months. That's why I implore investors to think of this and other stocks in my portfolio as multi-year opportunities.
Obviously, I'd love to secure major gains much sooner, but these stocks are quite inexpensive precisely because the timing of an upward move for each of these stocks is unclear. I only know that, for the most part, these stocks are trading near a floor in terms of valuation.
Action to Take --> We're getting close to the start of earnings season . In coming weeks, I intend to give you a fresh deep look at the stocks in my portfolio because I want you to have a clear sense of what to expect on upcoming conference calls.
For now, please know that everyone one of these stocks still retains the initial investment thesis that attracted me to them. More to the point, these stocks could hit a rough patch if the market takes a fresh tumble. So if you own any of these stocks, then please stand firm. Long-term patience will be rewarded in many of these names.
[ Note: Be sure not to miss a single thing and have $100,000 Portfolio updates sent to your email inbox, free for a limited time, as soon as they're published by signing up here .]
All prices are as of Thursday, June 21.Security (Ticker)SharesInitial Purchase DateAvg.
Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,095.4 01/04/12 .44 .45 ,447 -8.7%Alcoa ( AA ) 501.8 01/06/12 .32 .69 ,360 -7.0%Cree ( CREE ) 400 01/12/12 .22 .04 ,616 -0.3%Exide ( XIDE ) 1,500 02/01/12 .41 .10 ,643 N/A N/A-9.5%Citigroup ( C ) 400.1 02/06/12 .68 .28 ,315 -10.9%Ligand Pharma (LGND) 350 02/13/12 .87 .49 ,772 11.0%Marathon Oil (MRO) 200 02/24/12 .01 .00 ,833 N/A-31.4%Calgon Carbon(CCC) 400 03/14/12 .38 .60 ,440 N/A N/A-11.7%Echelon (ELON) 1,000 03/30/12 .51 .34 ,340 N/A-26.0%MDC Partners (MDCA) 512.8 04/09/12 .57 .71 ,979 N/A N/A-8.1%Freeport-McMoran (FCX) 200 04/24/12 .00 .92 ,784 N/A N/A-8.4%Zoltek (ZOLT) 600 05/11/12 .16 .66 ,196 N/A-5.6%Weatherford Industries (WFT) 500 05/21/12 .48 .24 ,120 N/A-2.1%GoodYear (GT) 600 06/08/12 .32 .44 ,864 N/A N/A10.7%Security Holdings ,708$ Cash Holdings ,732Total Return since January 2012* ,440-7.6%* Individual security returns are shown as of the date each security was added to this portfolio. Individual security gains/losses include both capital gains and all dividends paid. However, total returns for the portfolio and the S&P are listed since the portfolio was funded with 0,000 of real money on Jan. 4, 2012.
Visit this link to view a listing of all previously-closed 0,000 Real-Money Portfolio holdings.
-- David Sterman
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of XIDE, LGND in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,095.4 01/04/12 .44 .45 ,447 -8.7%Alcoa ( AA ) 501.8 01/06/12 .32 .69 ,360 -7.0%Cree ( CREE ) 400 01/12/12 .22 .04 ,616 -0.3%Exide ( XIDE ) 1,500 02/01/12 .41 .10 ,643 N/A N/A-9.5%Citigroup ( C ) 400.1 02/06/12 .68 .28 ,315 -10.9%Ligand Pharma (LGND) 350 02/13/12 .87 .49 ,772 11.0%Marathon Oil (MRO) 200 02/24/12 .01 .00 ,833 N/A-31.4%Calgon Carbon(CCC) 400 03/14/12 .38 .60 ,440 N/A N/A-11.7%Echelon (ELON) 1,000 03/30/12 .51 .34 ,340 N/A-26.0%MDC Partners (MDCA) 512.8 04/09/12 .57 .71 ,979 N/A N/A-8.1%Freeport-McMoran (FCX) 200 04/24/12 .00 .92 ,784 N/A N/A-8.4%Zoltek (ZOLT) 600 05/11/12 .16 .66 ,196 N/A-5.6%Weatherford Industries (WFT) 500 05/21/12 .48 .24 ,120 N/A-2.1%GoodYear (GT) 600 06/08/12 .32 .44 ,864 N/A N/A10.7%Security Holdings ,708$ Cash Holdings ,732Total Return since January 2012* ,440-7.6%* Individual security returns are shown as of the date each security was added to this portfolio. As an example, I was early to the game with my pick of battery maker Exide Technologies (Nasdaq: XIDE ) , as the company went on to offer another dismal quarter after I bought it. I'm still underwater with this pick, but I expect the company's turnaround efforts to slowly being recognized by more investors, eventually getting this stock back above $5, where it stood last summer.
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Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,095.4 01/04/12 .44 .45 ,447 -8.7%Alcoa ( AA ) 501.8 01/06/12 .32 .69 ,360 -7.0%Cree ( CREE ) 400 01/12/12 .22 .04 ,616 -0.3%Exide ( XIDE ) 1,500 02/01/12 .41 .10 ,643 N/A N/A-9.5%Citigroup ( C ) 400.1 02/06/12 .68 .28 ,315 -10.9%Ligand Pharma (LGND) 350 02/13/12 .87 .49 ,772 11.0%Marathon Oil (MRO) 200 02/24/12 .01 .00 ,833 N/A-31.4%Calgon Carbon(CCC) 400 03/14/12 .38 .60 ,440 N/A N/A-11.7%Echelon (ELON) 1,000 03/30/12 .51 .34 ,340 N/A-26.0%MDC Partners (MDCA) 512.8 04/09/12 .57 .71 ,979 N/A N/A-8.1%Freeport-McMoran (FCX) 200 04/24/12 .00 .92 ,784 N/A N/A-8.4%Zoltek (ZOLT) 600 05/11/12 .16 .66 ,196 N/A-5.6%Weatherford Industries (WFT) 500 05/21/12 .48 .24 ,120 N/A-2.1%GoodYear (GT) 600 06/08/12 .32 .44 ,864 N/A N/A10.7%Security Holdings ,708$ Cash Holdings ,732Total Return since January 2012* ,440-7.6%* Individual security returns are shown as of the date each security was added to this portfolio. Shares of Ligand Pharmaceuticals (Nasdaq: LGND ) are up more than 20% this week on word that the Food & Drug Administration (FDA) is likely to approve the drug carfilzomib when it votes on July 27. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. © Copyright 2001-2010 StreetAuthority, LLC.
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Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,095.4 01/04/12 .44 .45 ,447 -8.7%Alcoa ( AA ) 501.8 01/06/12 .32 .69 ,360 -7.0%Cree ( CREE ) 400 01/12/12 .22 .04 ,616 -0.3%Exide ( XIDE ) 1,500 02/01/12 .41 .10 ,643 N/A N/A-9.5%Citigroup ( C ) 400.1 02/06/12 .68 .28 ,315 -10.9%Ligand Pharma (LGND) 350 02/13/12 .87 .49 ,772 11.0%Marathon Oil (MRO) 200 02/24/12 .01 .00 ,833 N/A-31.4%Calgon Carbon(CCC) 400 03/14/12 .38 .60 ,440 N/A N/A-11.7%Echelon (ELON) 1,000 03/30/12 .51 .34 ,340 N/A-26.0%MDC Partners (MDCA) 512.8 04/09/12 .57 .71 ,979 N/A N/A-8.1%Freeport-McMoran (FCX) 200 04/24/12 .00 .92 ,784 N/A N/A-8.4%Zoltek (ZOLT) 600 05/11/12 .16 .66 ,196 N/A-5.6%Weatherford Industries (WFT) 500 05/21/12 .48 .24 ,120 N/A-2.1%GoodYear (GT) 600 06/08/12 .32 .44 ,864 N/A N/A10.7%Security Holdings ,708$ Cash Holdings ,732Total Return since January 2012* ,440-7.6%* Individual security returns are shown as of the date each security was added to this portfolio. Shares of Ligand Pharmaceuticals (Nasdaq: LGND ) are up more than 20% this week on word that the Food & Drug Administration (FDA) is likely to approve the drug carfilzomib when it votes on July 27. Obviously, I'd love to secure major gains much sooner, but these stocks are quite inexpensive precisely because the timing of an upward move for each of these stocks is unclear.
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Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,095.4 01/04/12 .44 .45 ,447 -8.7%Alcoa ( AA ) 501.8 01/06/12 .32 .69 ,360 -7.0%Cree ( CREE ) 400 01/12/12 .22 .04 ,616 -0.3%Exide ( XIDE ) 1,500 02/01/12 .41 .10 ,643 N/A N/A-9.5%Citigroup ( C ) 400.1 02/06/12 .68 .28 ,315 -10.9%Ligand Pharma (LGND) 350 02/13/12 .87 .49 ,772 11.0%Marathon Oil (MRO) 200 02/24/12 .01 .00 ,833 N/A-31.4%Calgon Carbon(CCC) 400 03/14/12 .38 .60 ,440 N/A N/A-11.7%Echelon (ELON) 1,000 03/30/12 .51 .34 ,340 N/A-26.0%MDC Partners (MDCA) 512.8 04/09/12 .57 .71 ,979 N/A N/A-8.1%Freeport-McMoran (FCX) 200 04/24/12 .00 .92 ,784 N/A N/A-8.4%Zoltek (ZOLT) 600 05/11/12 .16 .66 ,196 N/A-5.6%Weatherford Industries (WFT) 500 05/21/12 .48 .24 ,120 N/A-2.1%GoodYear (GT) 600 06/08/12 .32 .44 ,864 N/A N/A10.7%Security Holdings ,708$ Cash Holdings ,732Total Return since January 2012* ,440-7.6%* Individual security returns are shown as of the date each security was added to this portfolio. The key for these stocks is to start delivering on the thesis I've laid out for them. As I noted back then, Onyx's "carfilzomib could be on the market a year from now.
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1601.0
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2012-06-21 00:00:00 UTC
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Alcoa’s Target, Estimates Lowered at Goldman Sachs Ahead of Earnings (AA)
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AA
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https://www.nasdaq.com/articles/alcoas-target-estimates-lowered-goldman-sachs-ahead-earnings-aa-2012-06-21
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nan
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nan
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Aluminum producer Alcoa Inc. ( AA ) on Thursday caught some negative commentary from analysts at Goldman Sachs.
The firm cut its price target on AA from $11 to $10, suggesting a smaller 12% upside to the stock's Wednesday closing price of $8.92. Goldman also lowered its earnings estimates for the company through 2014, citing lower aluminum pricing assumptions.
Alcoa shares posted small losses in premarket trading Thursday.
The Bottom Line
Shares of Alcoa ( AA ) have a 1.35% dividend yield, based on last night's closing stock price of $8.92. The stock has technical support in the $8 price area. If the shares can firm up, we see overhead resistance around the $10-$11 price levels.
Alcoa Inc. ( AA ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aluminum producer Alcoa Inc. ( AA ) on Thursday caught some negative commentary from analysts at Goldman Sachs. The Bottom Line Shares of Alcoa ( AA ) have a 1.35% dividend yield, based on last night's closing stock price of $8.92. The firm cut its price target on AA from $11 to $10, suggesting a smaller 12% upside to the stock's Wednesday closing price of $8.92.
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Aluminum producer Alcoa Inc. ( AA ) on Thursday caught some negative commentary from analysts at Goldman Sachs. The firm cut its price target on AA from $11 to $10, suggesting a smaller 12% upside to the stock's Wednesday closing price of $8.92. The Bottom Line Shares of Alcoa ( AA ) have a 1.35% dividend yield, based on last night's closing stock price of $8.92.
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The firm cut its price target on AA from $11 to $10, suggesting a smaller 12% upside to the stock's Wednesday closing price of $8.92. The Bottom Line Shares of Alcoa ( AA ) have a 1.35% dividend yield, based on last night's closing stock price of $8.92. Aluminum producer Alcoa Inc. ( AA ) on Thursday caught some negative commentary from analysts at Goldman Sachs.
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Aluminum producer Alcoa Inc. ( AA ) on Thursday caught some negative commentary from analysts at Goldman Sachs. The firm cut its price target on AA from $11 to $10, suggesting a smaller 12% upside to the stock's Wednesday closing price of $8.92. The Bottom Line Shares of Alcoa ( AA ) have a 1.35% dividend yield, based on last night's closing stock price of $8.92.
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1602.0
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2012-06-18 00:00:00 UTC
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Avoiding a Greek Tragedy. Now What? - Analyst Blog
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AA
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https://www.nasdaq.com/articles/avoiding-greek-tragedy-now-what-analyst-blog-2012-06-18
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nan
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nan
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In the choice between 'bad' and 'worse' available to the Greeks in Sunday's election, they made the 'right' call and opted for the 'bad' option. This is a big sigh of relief for Europe and the global financial system.
But don't look for a relief rally today as the market's attention shifts promptly from Greece to Spain, where yields on government bonds are rising and reaching unsustainable levels, requiring some sort of intervention. As such, the positive aspect of today's trading action is that we were able to avoid a major or catastrophic negative.
Spanish government bond yields are up above the dangerous 7% level today, which effectively means a very restrictive capital market access for the government. Greece, Ireland, and Portugal needed outside intervention when they reached these levels. Spain's banking bailout a few days back obviously wasn't enough and the G-20 summit getting underway in Mexico today has limited room for doing anything good.
A major intervention from the European Central Bank (ECB) in the form of another round of long-term refinancing operation (LTRO) will most certainly break the negative momentum in Spanish (and Italian) government bond markets. But the ECB believes that doing more LTRO will relieve the pressure on Euro-zone political leaders to take the tough decisions needed to 'fix' the problem, such as moving towards a banking or fiscal union. The question is whether Spain has the ability to sustain these above-7% yields while it waits for Euro-zone leaders to make the right decisions in the summit meeting later this month.
The ECB is not the only central bank in the spotlight this week. The Federal Reserve is in focus as we get the official post-meeting statement from the FOMC on Wednesday followed by Bernanke's press conference that afternoon. Market participants are looking for the Fed to do 'something' on Wednesday.
But what and how effective that 'something' will be is up in the air at this stage. They could extend 'Operation Twist,' which ends at the end of this month, extend their interest rate 'guidance,' or announce a new round of quantitative easing or bond purchases. I don't think 'doing nothing' is one of the options, given how high expectations are some sort of new Fed action. But we will have to wait till Wednesday to find out.
Europe and the Fed aside, we have a number of major housing industry reports coming out this week, including the homebuilder sentiment index this morning, Housing Starts on Tuesday, and Existing Home sales on Thursday. We will also start keeping tabs on second quarter earnings reports this week, with results from companies like FedEx ( FDX ) and Oracle ( ORCL ) coming out.
The financial press typically associates the start of the earnings season with Alcoa's ( AA ) report each quarter. But in reality, the earnings season gets underway before that, as many companies have fiscal quarters that end at different months than the end of the calendar quarter. For example, Alcoa will release its second quarter 2012 results in July, while a number of major companies whose fiscal quarters end in May will report before that. We will be counting results from all the companies with May quarter ends, like Oracle and FedEx, as part of the second quarter of 2012.
Current expectations are for second quarter 2012 earnings to be up 2.1% from the same period last year, reflecting a modest 0.6% revenue increase and a 13 basis point expansion in margins. This compares to earnings growth of 7.9% in the first quarter, which reflected gains of 4.7% on the top-line and margin expansion of 21 basis points.
Pretty much all of the second quarter earnings growth is coming from the Finance sector. Excluding Finance, total earnings in the second quarter will be down 4% from the same period last year. We will be getting 'second quarter' results from 12 companies in the S&P 500 this week.
ALCOA INC (AA): Free Stock Analysis Report
FEDEX CORP (FDX): Free Stock Analysis Report
ORACLE CORP (ORCL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The financial press typically associates the start of the earnings season with Alcoa's ( AA ) report each quarter. ALCOA INC (AA): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. But don't look for a relief rally today as the market's attention shifts promptly from Greece to Spain, where yields on government bonds are rising and reaching unsustainable levels, requiring some sort of intervention.
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The financial press typically associates the start of the earnings season with Alcoa's ( AA ) report each quarter. ALCOA INC (AA): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. We will also start keeping tabs on second quarter earnings reports this week, with results from companies like FedEx ( FDX ) and Oracle ( ORCL ) coming out.
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The financial press typically associates the start of the earnings season with Alcoa's ( AA ) report each quarter. ALCOA INC (AA): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. But don't look for a relief rally today as the market's attention shifts promptly from Greece to Spain, where yields on government bonds are rising and reaching unsustainable levels, requiring some sort of intervention.
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The financial press typically associates the start of the earnings season with Alcoa's ( AA ) report each quarter. ALCOA INC (AA): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. But don't look for a relief rally today as the market's attention shifts promptly from Greece to Spain, where yields on government bonds are rising and reaching unsustainable levels, requiring some sort of intervention.
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1603.0
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2012-06-18 00:00:00 UTC
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Ahead of Wall Street - June 18, 2012 - Ahead of Wall Street
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AA
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https://www.nasdaq.com/articles/ahead-wall-street-june-18-2012-ahead-wall-street-2012-06-18
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nan
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nan
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Monday, June 18, 2012
In the choice between 'bad' and 'worse' available to the Greeks in Sunday's election, they made the 'right' call and opted for the 'bad' option. This is a big sigh of relief for Europe and the global financial system. But don't look for a relief rally today as the market's attention shifts promptly from Greece to Spain, where yields on government bonds are rising and reaching unsustainable levels, requiring some sort of intervention. As such, the positive aspect of today's trading action is that we were able to avoid a major or catastrophic negative.
Spanish government bond yields are up above the dangerous 7% level today, which effectively means a very restrictive capital market access for the government. Greece, Ireland, and Portugal needed outside intervention when they reached these levels. Spain's banking bailout a few days back obviously wasn't enough and G-20 summit getting underway in Mexico today has limited room for doing anything good.
A major intervention from the European Central Bank (ECB) in the form of another round of long-term refinancing operation (LTRO) will most certainly break the negative momentum in Spanish (and Italian) government bond markets. But the ECB believes that doing more LTRO will relieve the pressure on Euro-zone political leaders to take the tough decisions needed to 'fix' the problem, such as moving towards a banking or fiscal union. The question is whether Spain has the ability to sustain these above-7% yields while it waits for Euro-zone leaders to make the right decisions in the summit meeting later this month.
The ECB is not the only central bank in the spotlight this week. The Federal Reserve is in focus as we get the official post-meeting statement from the FOMC on Wednesday followed by Bernanke's press conference that afternoon. Market participants are looking for the Fed to do 'something' on Wednesday. But what and how effective that 'something' will be is up in the air at this stage. They could extend 'Operation Twist' which ends at the end of this month, extend their interest rate 'guidance', or announce a new round of quantitative easing or bond purchases. I don't think 'doing nothing' is one of the options, given how high expectations are some sort of new Fed action. But we will have to wait till Wednesday to find out.
Europe and the Fed aside, we have a number of major housing industry reports coming out this week, including the homebuilder sentiment index this morning, Housing Starts on Tuesday, and Existing Home sales on Thursday. We will also start keeping tabs on second quarter earnings reports this week, with results from companies like FedEx ( FDX ) and Oracle ( ORCL ) coming out.
The financial press typically associates the start of the earnings season with Alcoa 's ( AA ) report each quarter. But in reality, the earnings season gets underway before that as many companies have fiscal quarters that end at different months than the end of the calendar quarter. For example, Alcoa will release its second quarter 2012 results in July, while a number of major companies whose fiscal quarters end in May will report before that. We will be counting results from all the companies with May quarter ends, like Oracle and FedEx, as part of the second quarter of 2012.
Current expectations are for second quarter 2012 earnings to be up 2.1% from the same period last year, reflecting a modest 0.6% revenue increase and a 13 basis point expansion in margins. This compares to earnings growth of 7.9% in the first quarter, which reflected gains of 4.7% on the top-line and margin expansion of 21 basis points. Pretty much all of the second quarter earnings growth is coming from the Finance sector. Excluding Finance, total earnings in the second quarter will be down 4% from the same period last year. We will be getting 'second quarter' results from 12 companies in the S&P 500 this week.
Sheraz Mian
Director of Research
ALCOA INC (AA): Free Stock Analysis Report
FEDEX CORP (FDX): Free Stock Analysis Report
ORACLE CORP (ORCL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The financial press typically associates the start of the earnings season with Alcoa 's ( AA ) report each quarter. Sheraz Mian Director of Research ALCOA INC (AA): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. But don't look for a relief rally today as the market's attention shifts promptly from Greece to Spain, where yields on government bonds are rising and reaching unsustainable levels, requiring some sort of intervention.
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Sheraz Mian Director of Research ALCOA INC (AA): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. The financial press typically associates the start of the earnings season with Alcoa 's ( AA ) report each quarter. We will also start keeping tabs on second quarter earnings reports this week, with results from companies like FedEx ( FDX ) and Oracle ( ORCL ) coming out.
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Sheraz Mian Director of Research ALCOA INC (AA): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. The financial press typically associates the start of the earnings season with Alcoa 's ( AA ) report each quarter. But in reality, the earnings season gets underway before that as many companies have fiscal quarters that end at different months than the end of the calendar quarter.
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The financial press typically associates the start of the earnings season with Alcoa 's ( AA ) report each quarter. Sheraz Mian Director of Research ALCOA INC (AA): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. But don't look for a relief rally today as the market's attention shifts promptly from Greece to Spain, where yields on government bonds are rising and reaching unsustainable levels, requiring some sort of intervention.
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1604.0
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2012-06-14 00:00:00 UTC
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Neutral on BHP Billiton - Analyst Blog
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AA
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https://www.nasdaq.com/articles/neutral-on-bhp-billiton-analyst-blog-2012-06-14
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nan
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nan
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We are maintaining our Neutral recommendation on BHP Billiton Ltd ( BHP ).
We believe that the company is well-positioned to reap profits from worldwide industrial and infrastructure progress, based on the transition of the emerging economies from construction to consumption-based growth. The ongoing industrialization in China, the largest iron-ore importer, and other developing economies, including India, hold future optimism and are expected to drive long-term demand for its products.
The company is committed to long-term growth through its key investment strategy. Such investments are expected to add momentum to the company's pipeline of high-return growth projects, which are diversified across commodity, geography and customers.
The company's centralized procurement of key input components, as well as its long-term partnership with suppliers, ensure easy accessibility to raw material and mining equipment. Moreover, its strategic acquisitions and the divestiture of non-performing assets help to control and strengthen its balance sheet while raising investor confidence on the stock.
The flipside scenario, however, raises concerns. Demand for the company's products is usually cyclical with a risk of a slower-than-expected global growth rate. Exchange rate fluctuations, a worldwide upsurge in oil prices and/or rising core inflation may also have a significant impact on the company's financial results.
Adverse weather conditions and geopolitical risks continue to impact BHP Billiton's financial health. Moreover, delays in mining approvals from governments and huge mining taxes continue to compress margins.
BHP Billiton faces industry-wide pressures from equipment shortages, labor crises, high cost competitors as well as volatile metal and mineral prices. Moreover, depleting natural resources and the subsequent search for new mines raise exploration and development costs.
However, the company still has a competitive advantage above its peers based on its diversified portfolio of low cost and high quality assets. The company competes with big industry players, such as Vale S.A ( VALE ) and Alcoa Inc ( AA ).
BHP Billiton carries a Zacks #3 Rank, which translates into a short-term (1-3 months) 'Hold' rating.
ALCOA INC (AA): Free Stock Analysis Report
BHP BILLITN LTD (BHP): Free Stock Analysis Report
VALE SA (VALE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company competes with big industry players, such as Vale S.A ( VALE ) and Alcoa Inc ( AA ). ALCOA INC (AA): Free Stock Analysis Report BHP BILLITN LTD (BHP): Free Stock Analysis Report VALE SA (VALE): Free Stock Analysis Report To read this article on Zacks.com click here. The ongoing industrialization in China, the largest iron-ore importer, and other developing economies, including India, hold future optimism and are expected to drive long-term demand for its products.
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ALCOA INC (AA): Free Stock Analysis Report BHP BILLITN LTD (BHP): Free Stock Analysis Report VALE SA (VALE): Free Stock Analysis Report To read this article on Zacks.com click here. The company competes with big industry players, such as Vale S.A ( VALE ) and Alcoa Inc ( AA ). Adverse weather conditions and geopolitical risks continue to impact BHP Billiton's financial health.
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ALCOA INC (AA): Free Stock Analysis Report BHP BILLITN LTD (BHP): Free Stock Analysis Report VALE SA (VALE): Free Stock Analysis Report To read this article on Zacks.com click here. The company competes with big industry players, such as Vale S.A ( VALE ) and Alcoa Inc ( AA ). The company's centralized procurement of key input components, as well as its long-term partnership with suppliers, ensure easy accessibility to raw material and mining equipment.
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The company competes with big industry players, such as Vale S.A ( VALE ) and Alcoa Inc ( AA ). ALCOA INC (AA): Free Stock Analysis Report BHP BILLITN LTD (BHP): Free Stock Analysis Report VALE SA (VALE): Free Stock Analysis Report To read this article on Zacks.com click here. We are maintaining our Neutral recommendation on BHP Billiton Ltd ( BHP ).
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1605.0
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2012-06-14 00:00:00 UTC
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Alcoa Honored with Two Awards - Analyst Blog
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AA
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https://www.nasdaq.com/articles/alcoa-honored-with-two-awards-analyst-blog-2012-06-14
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nan
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nan
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Alcoa Inc. ( AA ) has received two awards for aluminum excellence at the American Metal Market annual aluminum summit held in New York. The company received an Innovation Award for its next-generation of aluminum-lithium alloys for the aerospace industry. The award was received by the President of Alcoa Forgings and Extrusions, and the President of Alcoa Aerospace, Transportation and Industrial Products.
The demand for aluminum-lithium alloys has led Alcoa to build a facility near its plant in Lafayette, Indiana. The facility is expected to produce largest, aluminum-lithium ingots in the world, which are anticipated to contain least impurities. Alcoa expects the site to add 20,000 tons of capacity to its network. The aluminum-lithium alloys are being considered over titanium and legacy alloys that are used in the aerospace industry. These new alloys will help the customers to save fuel as well as facilitate in doing away with the production risks.
The company's Vice President and Chief Sustainability Officer Kevin Anton was the recipient of the Charles Martin Hall Award as Aluminum Ambassador/Advocate of the Year for his efforts to promote sustainability for Alcoa and the U.S. Aluminum Association trade organization. The award was conferred on Kevin due to the sustainability efforts on aluminum, which has a unique property that can be recycled infinitely. The company uses a Sustainability Scorecard to align sustainability targets with business strategy and this forms the very basis of Alcoa.
Kevin Anton's efforts for leading the first-ever Action to Accelerate Recycling Summit, held in early 2012 in Dallas, were also recognized. The purpose of the summit was to achieve significantly higher recycling rates.
Pennsylvania-based Alcoa Inc. is among the world's leading producers of primary and fabricated aluminum and alumina. It competes with Aluminum Corporation Of China Limited ( ACH ) and RioTinto plc. ( RIO ).
Currently, the stock maintains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) "Hold" rating. We have a long-term "Neutral" recommendation on Alcoa.
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
RIO TINTO-ADR (RIO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) has received two awards for aluminum excellence at the American Metal Market annual aluminum summit held in New York. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. The demand for aluminum-lithium alloys has led Alcoa to build a facility near its plant in Lafayette, Indiana.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa Inc. ( AA ) has received two awards for aluminum excellence at the American Metal Market annual aluminum summit held in New York. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa Inc. ( AA ) has received two awards for aluminum excellence at the American Metal Market annual aluminum summit held in New York. The award was received by the President of Alcoa Forgings and Extrusions, and the President of Alcoa Aerospace, Transportation and Industrial Products.
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Alcoa Inc. ( AA ) has received two awards for aluminum excellence at the American Metal Market annual aluminum summit held in New York. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. The facility is expected to produce largest, aluminum-lithium ingots in the world, which are anticipated to contain least impurities.
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1606.0
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2012-06-07 00:00:00 UTC
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These 13 Stocks Are a Major Bargain
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AA
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https://www.nasdaq.com/articles/these-13-stocks-are-major-bargain-2012-06-07
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nan
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nan
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Lost in all of the noise of a slumping, rebounding and slumping-again global economy is a remarkable success story. A wide range of U.S. manufacturers have been sharpening their game, and are now retaining or even taking market share from tough competitors such as Germany, Japan, China, Brazil and elsewhere.
Indeed, the rising tide of exports from U.S. factories to foreign markets has been one of the most under-reported stories of recent years. It's the single biggest factor behind a long string of upside earnings surprises coming out of America's heartland, and I think it's where there are significant gains for investors.
From Alcoa ( AA ) to Ford ( F ) to Caterpillar ( CAT ) , American manufacturers are now dominating their industries and poised for better days ahead.
Sadly, the recent market meltdown has rendered this great story moot. Industrial stocks are being sold off aggressively, as if they were simply broken businesses. Sure, the slower global economy will hurt a bit, but these industrial stocks don't deserve the pummeling they've taken.
A quick glance through various earnings forecasts makes you wonder why investors think these businesses are broken. In many instances, analysts expect these companies to actually boost profits over the next few years as they continue to take market share and boost their internal manufacturing efficiencies.
Maybe the analysts are wrong. Perhaps these companies won't deliver the sold profit growth expected of them and will simply generate flat profits until the rest of the world gets back on its feet. We'll get a better read in a month or so when second quarter results start to roll in.
For now, we can only see how these industrial stocks are trading in relation to current analyst forecasts. And boy are they cheap. I've compiled a list of 13 industrial stocks (or companies that serve the nation's industrial base of manufacturers), focusing on companies that are expected to keep boosting profits at a healthy clip. Each one trades for less than nine times projected 2013 profits (and less than 7.5 times projected 2014 profits). Every stock has moved down more than 30% from its 52-week high , putting them back in the "on sale" bin.
Solid value at this price
To be sure, these will never be high-multiple stocks, simply due to the cyclical nature of their annual operating results. For most industrial stocks, the forward multiple can typically move into the teens when earnings are depressed, as investors start to value them against better expected results down the road. And when earnings hit a cyclical peak, EPS starts to fall -- and they will rarely be valued at more than 10 times earnings. The fact that many of these stocks trade for much less than that on somewhat-depressed 2013 results highlights the fact that shares have plenty of room to rise as earnings forecasts start to build into mid-decade.
A good company can make money even in a slump
We can look at United Rentals ( URI ) as an example of how investors may be misreading where we stand in the current industrial cycle. The company rents a wide range of construction equipment, and has seen results being constrained by a still-weak construction market.
Still, ahead of any uptick in construction activity, management is doing a solid job of focusing on the bottom line . EBITDA is expected to roughly double this year to $1.8 billion, aided in part by an acquisition . Once the synergies have been fully derived from that acquisition, EBITDA is expected to rise another 30% to $2.4 billion in 2013, according to Goldman Sachs. That should set the stage for EPS of nearly $5 in 2013, and this figure is likely to approach $6 by 2014 when construction activity builds higher. Shares have fallen from $45 earlier this spring to a recent $32, well below Goldman Sachs' $50 price target .
This company's transformation unlocks profits
Even as the economy stumbles on its path to firmer growth, many industrial companies have been streamlining processes and developing new products to boost sales and profits. Allegheny Technologies ( ATI ) is a clear-cut example, as the company has moved away from its steel-making roots and pursued valued-added niche markets such as specialty metals that are used in aerospace, medical and energy industry applications. For example, the company's titanium products help jet engines burn hotter, which improves combustion.
After $2 billion worth of investments in the business, its transformation is now largely complete and Allegheny looks poised for solid secular growth, regardless of whether the economy grows at a tepid or moderate pace. The company's EBITDA should exceed $750 million this year, and analysts see that figure surpassing $1 billion in 2013.
A falling level of capital spending should eventually convert much of that EBITDA into rising free cash flow . Free cash flow is likely to be break-even this year, before approaching $2 a share in 2013 and perhaps more than $4 a share in 2014, according to consensus forecasts. Shares, which have slumped from $65 a year ago to a recent $30, don't begin to reflect that kind of free cash flow strength.
Risks to Consider: Many of these industrial firms rely on exports and the EPS forecasts in the above-noted table may need to be trimmed a bit.
Action to Take --> This is a good time to research these industrial stocks ahead of second-quarter results. If these companies can support the analysts' views that sales and profits can hold up -- and possibly grow -- in this tough environment, then investors will start to take note of these very cheap stock prices. But if you wait too long, your chance to grab a good stock at a bargain price may be gone.
-- David Sterman
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of F, AA, in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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From Alcoa ( AA ) to Ford ( F ) to Caterpillar ( CAT ) , American manufacturers are now dominating their industries and poised for better days ahead. StreetAuthority LLC owns shares of F, AA, in one or more if its "real money" portfolios. Allegheny Technologies ( ATI ) is a clear-cut example, as the company has moved away from its steel-making roots and pursued valued-added niche markets such as specialty metals that are used in aerospace, medical and energy industry applications.
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From Alcoa ( AA ) to Ford ( F ) to Caterpillar ( CAT ) , American manufacturers are now dominating their industries and poised for better days ahead. StreetAuthority LLC owns shares of F, AA, in one or more if its "real money" portfolios. A falling level of capital spending should eventually convert much of that EBITDA into rising free cash flow .
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From Alcoa ( AA ) to Ford ( F ) to Caterpillar ( CAT ) , American manufacturers are now dominating their industries and poised for better days ahead. StreetAuthority LLC owns shares of F, AA, in one or more if its "real money" portfolios. I've compiled a list of 13 industrial stocks (or companies that serve the nation's industrial base of manufacturers), focusing on companies that are expected to keep boosting profits at a healthy clip.
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From Alcoa ( AA ) to Ford ( F ) to Caterpillar ( CAT ) , American manufacturers are now dominating their industries and poised for better days ahead. StreetAuthority LLC owns shares of F, AA, in one or more if its "real money" portfolios. For most industrial stocks, the forward multiple can typically move into the teens when earnings are depressed, as investors start to value them against better expected results down the road.
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1607.0
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2012-06-05 00:00:00 UTC
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Alcoa Adopts Natural Reforestation - Analyst Blog
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AA
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https://www.nasdaq.com/articles/alcoa-adopts-natural-reforestation-analyst-blog-2012-06-05
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nan
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nan
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Aluminum giant Alcoa Inc. ( AA ) announced that the company is using a very cost effective and natural way of reforestation at its Juruti bauxite mine in Brazil. The method is based on the theory of nucleation, where reforestation is done using small dense nuclei of plants and animals, which facilitate the arrival of other species.
At the Juruti mine, a modern nucleation method is applied, where birds and other elements of nature help recover the soil rather than the conventional method of reforestation. The nucleation method uses lesser number of machineries leading to lesser usage of diesel oil and low emissions.
The mine is pursuing a natural process, where artificial shelters are provided for animals and conditions are such that there is a natural regeneration of species, which attracts animals and creates a food chain in the restoration process. The process is quite eco friendly and saves costs. The Juruti mine is amongst the first places in Brazil to use the nucleation method to conserve the environment.
Alcoa released its first-quarter 2012 results in April. The company reported earnings of 9 cents per share in the quarter in contrast to a loss of 18 cents in the fourth quarter of 2011. However, it came below the earnings of 27 cents a share recorded in the first quarter of 2011.
Excluding restructuring charges and other items, Alcoa's profit came in at 10 cents per share, beating the Zacks Consensus Estimate of a loss of 4 cents per share. Higher production and volumes as well as improved market conditions drove Alcoa's results.
Quarterly revenues inched up 0.3% sequentially to $6,006 million and edged up 0.8% over the prior-year quarter, surpassing the Zacks Consensus Estimate of $5,735 million. The increase in revenues was driven by strong results in Global Rolled Products and Engineered Products and Solutions.
For 2012, Alcoa expects global aerospace market to grow by 3 percentage points on a year-over-year basis to 13% to 14%. The company also expects global growth for the automotive sector to be in the range of 3%-7%, commercial transportation in the range of 1%-5%, packaging in the range of 2%-3%, building and construction in the range of 2.5%-3.5%, and industrial gas turbine in the band of 1%-2%.
The company believes that there will be a deficit in global aluminum supply in 2012. Besides, Alcoa reiterated its expectation that aluminum demand will grow by 7% globally in the year.
Pennsylvania-based Alcoa Inc. is among the world's leading producers of primary and fabricated aluminum and alumina. It competes with Aluminum Corporation Of China Limited ( ACH ) and RioTinto plc. ( RIO ).
Currently, the stock maintains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) "Hold" rating. We have a long-term "Neutral" recommendation on the shares of the company.
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
RIO TINTO-ADR (RIO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aluminum giant Alcoa Inc. ( AA ) announced that the company is using a very cost effective and natural way of reforestation at its Juruti bauxite mine in Brazil. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. The method is based on the theory of nucleation, where reforestation is done using small dense nuclei of plants and animals, which facilitate the arrival of other species.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Aluminum giant Alcoa Inc. ( AA ) announced that the company is using a very cost effective and natural way of reforestation at its Juruti bauxite mine in Brazil. Excluding restructuring charges and other items, Alcoa's profit came in at 10 cents per share, beating the Zacks Consensus Estimate of a loss of 4 cents per share.
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Aluminum giant Alcoa Inc. ( AA ) announced that the company is using a very cost effective and natural way of reforestation at its Juruti bauxite mine in Brazil. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Excluding restructuring charges and other items, Alcoa's profit came in at 10 cents per share, beating the Zacks Consensus Estimate of a loss of 4 cents per share.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Aluminum giant Alcoa Inc. ( AA ) announced that the company is using a very cost effective and natural way of reforestation at its Juruti bauxite mine in Brazil. At the Juruti mine, a modern nucleation method is applied, where birds and other elements of nature help recover the soil rather than the conventional method of reforestation.
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1608.0
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2012-06-04 00:00:00 UTC
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Alcoa Achieves Safety Landmark - Analyst Blog
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AA
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https://www.nasdaq.com/articles/alcoa-achieves-safety-landmark-analyst-blog-2012-06-04
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nan
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nan
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The world's leading aluminum producer, AlcoaInc. ( AA ), has achieved a significant safety milestone in its joint venture with Saudi Arabian mining company Ma'aden. The Ma'aden Alcoa joint venture recorded 25 million hours of work without losing a work day due to injury while constructing an aluminum smelter at Ras Al Khair in Saudi Arabia.
The safety milestone was accomplished by 39 construction companies with a workforce consisting of people from various cultures, languages and nations.
The joint venture is developing a fully integrated aluminum complex, which includes an aluminum smelter with a capacity of 740,000 metric tons a year, and expects to complete the project by 2013. The workforce involved with the project has grown rapidly to 12,400 workers from 200 at the beginning of the period, which makes the achievement even more remarkable.
The Ma'aden Alcoa joint venture is building a fully integrated industrial complex to supply primary aluminum, alumina and aluminum products. The complex, once completed, will be the lowest-cost supplier of these products in the world and will cater to emerging markets in the Middle East and other regions.
The complex will consist of a bauxite mine whose initial capacity will be 4 million metric tons a year, an alumina refinery with a preliminary capacity of 1.8 million metric tons per year and an aluminum smelter as mentioned earlier. It would also include a rolling mill which will produce food grade can sheet, the first of its kind in the Middle East and among the most technically advanced in the world.
The smelter and the mill are scheduled to begin commercial production in 2013. The mine and refinery are expected to begin commercial production in 2014. Till then, Alcoa will supply alumina for the smelter.
Pennsylvania-based Alcoa is among the world's leading producers of primary and fabricated aluminum, and alumina. It competes with Aluminum Corporation Of China Limited , or Chalco ( ACH ) and Rio Tinto plc . ( RIO ).
Currently, Alcoa maintains a short-term Zacks #3 Rank (Hold), in line with our long-term Neutral recommendation on the stock.
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
RIO TINTO-ADR (RIO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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( AA ), has achieved a significant safety milestone in its joint venture with Saudi Arabian mining company Ma'aden. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. The complex, once completed, will be the lowest-cost supplier of these products in the world and will cater to emerging markets in the Middle East and other regions.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. ( AA ), has achieved a significant safety milestone in its joint venture with Saudi Arabian mining company Ma'aden. The joint venture is developing a fully integrated aluminum complex, which includes an aluminum smelter with a capacity of 740,000 metric tons a year, and expects to complete the project by 2013.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. ( AA ), has achieved a significant safety milestone in its joint venture with Saudi Arabian mining company Ma'aden. The joint venture is developing a fully integrated aluminum complex, which includes an aluminum smelter with a capacity of 740,000 metric tons a year, and expects to complete the project by 2013.
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( AA ), has achieved a significant safety milestone in its joint venture with Saudi Arabian mining company Ma'aden. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. The joint venture is developing a fully integrated aluminum complex, which includes an aluminum smelter with a capacity of 740,000 metric tons a year, and expects to complete the project by 2013.
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1609.0
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2012-06-01 00:00:00 UTC
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Pre-Market Most Active for Jun 1, 2012 : QQQ, BAC, FB, BP, VOD, F, AA, C, BHP, PLXT, AAPL, GRPN
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AA
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https://www.nasdaq.com/articles/pre-market-most-active-jun-1-2012-qqq-bac-fb-bp-vod-f-aa-c-bhp-plxt-aapl-grpn-2012-06-01
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The NASDAQ 100 Pre-Market Indicator is down -27.93 to 2,496.94. The total Pre-Market volume is currently 8,842,903 shares traded.
The following are the most active stocks for the pre-market session :
PowerShares QQQ Trust, Series 1 ( QQQ ) is -1.18 at $60.88, with 2,568,492 shares traded. This represents a 21.93% increase from its 52 Week Low.
Bank of America Corporation ( BAC ) is -0.23 at $7.12, with 2,544,852 shares traded. BAC's current last sale is 71.2% of the target price of $10.
Facebook, Inc. ( FB ) is -0.95 at $28.65, with 654,377 shares traded. As reported by Zacks, the current mean recommendation for FB is in the "buy range".
BP p.l.c. ( BP ) is +0.54 at $37.00, with 374,442 shares traded. As reported by Zacks, the current mean recommendation for BP is in the "buy range".
Vodafone Group Plc ( VOD ) is -0.13 at $26.66, with 372,482 shares traded. As reported by Zacks, the current mean recommendation for VOD is in the "buy range".
Ford Motor Company ( F ) is -0.16 at $10.40, with 240,636 shares traded. As reported by Zacks, the current mean recommendation for F is in the "buy range".
Alcoa Inc. ( AA ) is -0.16 at $8.39, with 235,619 shares traded. AA's current last sale is 75.42% of the target price of $11.125.
Citigroup Inc. ( C ) is -0.69 at $25.82, with 216,860 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2012. The consensus EPS forecast is $1.01. As reported by Zacks, the current mean recommendation for C is in the "buy range".
BHP Billiton Limited ( BHP ) is -1.68 at $59.85, with 194,093 shares traded. As reported by Zacks, the current mean recommendation for BHP is in the "buy range".
PLX Technology, Inc. ( PLXT ) is unchanged at $6.33, with 178,000 shares traded. PLXT's current last sale is 90.43% of the target price of $7.
Apple Inc. ( AAPL ) is -8.1 at $569.63, with 177,552 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Groupon, Inc. ( GRPN ) is -0.75 at $9.89, with 169,005 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2012. The consensus EPS forecast is $-0.02. GRPN's current last sale is 58.18% of the target price of $17.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) is -0.16 at $8.39, with 235,619 shares traded. AA's current last sale is 75.42% of the target price of $11.125. Apple Inc. ( AAPL ) is -8.1 at $569.63, with 177,552 shares traded.
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Alcoa Inc. ( AA ) is -0.16 at $8.39, with 235,619 shares traded. AA's current last sale is 75.42% of the target price of $11.125. Apple Inc. ( AAPL ) is -8.1 at $569.63, with 177,552 shares traded.
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Alcoa Inc. ( AA ) is -0.16 at $8.39, with 235,619 shares traded. AA's current last sale is 75.42% of the target price of $11.125. Apple Inc. ( AAPL ) is -8.1 at $569.63, with 177,552 shares traded.
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Alcoa Inc. ( AA ) is -0.16 at $8.39, with 235,619 shares traded. AA's current last sale is 75.42% of the target price of $11.125. Apple Inc. ( AAPL ) is -8.1 at $569.63, with 177,552 shares traded.
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1610.0
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2012-05-31 00:00:00 UTC
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Get Ready for the Commodities Rebound
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AA
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https://www.nasdaq.com/articles/get-ready-commodities-rebound-2012-05-31
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nan
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nan
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According to official data, the Chinese economy is cooling a bit, with 2012 growth projected to come in around 7% or 8% -- a multi-year low.
Don't you believe it.
Statistics provided by the Chinese government are strictly a form of propaganda, used to influence global markets and quell domestic social unrest. According to many economists that work outside of the government, the Chinese economy is growing at a much slower pace, a result of sharply-falling exports and manufacturing activity.
How do we know this? Because commodity prices have been slumping badly, and China's insatiable demand for raw materials is now the single-biggest factor in commodity markets.
Consider these stats:
- Copper prices have fallen to a recent $3.40 from $4.50 per pound last summer.
- Crude oil prices have dropped 15% in just one month.
- Iron ore prices have fallen nearly 10% in the past month as China decided to forego bidding on recent spot market shipments.
Yet here's the good news for commodity investors: China's leaders tend to panic in the face of any major slowdown for fear that social troubles will bubble up. Back in 2008, they launched a half-trillion dollar stimulus plan to jumpstart the economy, and the efforts are now seen as a key factor behind China's ability to keep growing even as the economies of key trading partners fell into recession .
Chinese leaders are taking action again. In recent months, through the country's National Development and ReformCommission (NDRC), a rising number of massive projects are getting the green light, from steel mills to housing to wind turbines. Roughly 200 projects are typically announced by the NDRC each month. That figure moved 20% higher in March, April and May.
"Infrastructure investment will be the de facto key policy tool in the next few months, which supports our forecast for a rebound in growth in H2," analysts at Societe Generale recently noted. And China's increase in projects should set the stage for an eventual rebound in economic activity -- and commodity prices.
In addition the rising tide of projects, here's what else the Chinese government has done in just the last 30 days:
- Cut the required reserve ratio for banks by 50 basis points.
- Provided several billions of dollars in subsidies to buy more energy-efficient home appliances.
- Streamlined regulations to boost investment in highways, medical institutions, railway projects and the banking industry.
A tilt toward consumerism
Even as the government applies a jolt to the economy, it's fair to wonder whether China can avoid a deep slump while Europe -- its leading trade partner -- is in such a funk. Yet the nature of China's economy is shifting from a pure export focus to more balanced one that relies on more domestic demand. And an increasingly affluent (and growing) Chinese middle class will likely lead to more demand for everything from houses to jewelry to cars -- all of which should help commodity prices in one way or another in the long-term.
Waiting forthe Fed
Looking beyond China, there is another, perhaps more powerful reason to anticipate a rebound for commodities prices. A number of economists say the U.S. economy will likely slow down in coming months, in large part due to the paralysis associated with Europe and our own year-end looming tax battles. They add that the Federal Reserve stands ready to support the economy through another injection of liquidity into bond markets -- known as QE3. The prior two programs of quantitative easing gave a solid boost to commodity prices for a very straightforward reason: the added liquidity injected into the economy leads to a search for more speculative assets, such as gold, oil, copper and even stocks -- rather than low-interest bonds .
In effect, China and the United States are already -- or soon will be -- taking steps to boost their economies. This doesn't mean commodity prices have hit bottom right now and will soon turn up. Yet it does mean that the factors behind the recent commodity sell-off will eventually reverse.
The ways to play
I remain a big fan of Freeport-McMoRan (NYSE: FCX ) and Alcoa (NYSE: AA ) , both of which are in my $100,000 Real-Money Portfolio . Though copper prices have been weakening, it's important to note that the copper market is expected to remain under-supplied this year. Aluminum prices are already so low --at a recent ninety cents per pound -- that high-cost processing plants are slowly being taken off-line, which should eventually lead to firming prices.
Beyond these two stocks, there are other bargains emerging in the commodity space. For example, Brazilian mining firm Vale (NYSE: VALE ) has shed roughly $75 billion in market value in the past year, and trades for just 5.5 times (depressed) 2012 profits. ArcelorMittal (NYSE: MT ) , the world's largest steel maker, has seen its stock fall 86% to a recent $14, from $100 back in 2008.
All of these stocks carry the risk that the global economy in general -- and China in particular -- comes in for a very hard landing . These commodity and share prices are already beginning to reflect such a dire outcome.
Action to Take --> I still prefer Alcoa and Freeport-McMoRan because their balance sheets provide more of a backstop, though ArcelorMittal and other commodity stocks might have even more upside when sentiments toward commodities reverse. Either way, you should be looking to add exposure to these stocks in your portfolio soon.
[ Note: Be sure not to miss a single thing and have $100,000 Portfolio updates sent to your email inbox, free for a limited time, as soon as they're published by signing up here .]
-- David Sterman
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of FCX, AA in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The ways to play I remain a big fan of Freeport-McMoRan (NYSE: FCX ) and Alcoa (NYSE: AA ) , both of which are in my $100,000 Real-Money Portfolio . StreetAuthority LLC owns shares of FCX, AA in one or more if its "real money" portfolios. In recent months, through the country's National Development and ReformCommission (NDRC), a rising number of massive projects are getting the green light, from steel mills to housing to wind turbines.
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The ways to play I remain a big fan of Freeport-McMoRan (NYSE: FCX ) and Alcoa (NYSE: AA ) , both of which are in my $100,000 Real-Money Portfolio . StreetAuthority LLC owns shares of FCX, AA in one or more if its "real money" portfolios. For example, Brazilian mining firm Vale (NYSE: VALE ) has shed roughly $75 billion in market value in the past year, and trades for just 5.5 times (depressed) 2012 profits.
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The ways to play I remain a big fan of Freeport-McMoRan (NYSE: FCX ) and Alcoa (NYSE: AA ) , both of which are in my $100,000 Real-Money Portfolio . StreetAuthority LLC owns shares of FCX, AA in one or more if its "real money" portfolios. Because commodity prices have been slumping badly, and China's insatiable demand for raw materials is now the single-biggest factor in commodity markets.
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StreetAuthority LLC owns shares of FCX, AA in one or more if its "real money" portfolios. The ways to play I remain a big fan of Freeport-McMoRan (NYSE: FCX ) and Alcoa (NYSE: AA ) , both of which are in my $100,000 Real-Money Portfolio . And China's increase in projects should set the stage for an eventual rebound in economic activity -- and commodity prices.
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1611.0
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2012-05-29 00:00:00 UTC
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After Hours Most Active for May 29, 2012 : WMB, PPL, PEG, AA, RAI, TEVA, BAC, RIMM, QQQ, FB, MSFT, DELL
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AA
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https://www.nasdaq.com/articles/after-hours-most-active-may-29-2012-wmb-ppl-peg-aa-rai-teva-bac-rimm-qqq-fb-msft-dell-2012
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nan
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The NASDAQ 100 After Hours Indicator is up 1.14 to 2,560.11. The total After hours volume is currently 22,967,607 shares traded.
The following are the most active stocks for the after hours session :
Williams Companies, Inc. (The) ( WMB ) is unchanged at $31.39, with 3,823,877 shares traded. As reported by Zacks, the current mean recommendation for WMB is in the "buy range".
PPL Corporation ( PPL ) is unchanged at $27.61, with 3,155,343 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2012. The consensus EPS forecast is $0.61. PPL's current last sale is 97.73% of the target price of $28.25.
Public Service Enterprise Group Incorporated ( PEG ) is unchanged at $30.78, with 2,815,895 shares traded. PEG's current last sale is 96.19% of the target price of $32.
Alcoa Inc. ( AA ) is unchanged at $8.89, with 2,776,482 shares traded. AA's current last sale is 79.91% of the target price of $11.125.
Reynolds American Inc ( RAI ) is -0.101 at $42.23, with 2,737,837 shares traded. RAI's current last sale is 101.76% of the target price of $41.5.
Teva Pharmaceutical Industries Limited ( TEVA ) is +0.07 at $38.17, with 2,600,458 shares traded. As reported by Zacks, the current mean recommendation for TEVA is in the "buy range".
Bank of America Corporation ( BAC ) is +0.01 at $7.45, with 2,490,923 shares traded. BAC's current last sale is 74.5% of the target price of $10.
Research in Motion Limited ( RIMM ) is -0.98 at $10.25, with 1,885,317 shares traded. RIMM's current last sale is 78.85% of the target price of $13.
PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.07 at $62.91, with 919,245 shares traded. This represents a 26% increase from its 52 Week Low.
Facebook, Inc. ( FB ) is -0.04 at $28.78, with 840,708 shares traded., following a 52-week high recorded in today's regular session.
Microsoft Corporation ( MSFT ) is -0.1192 at $29.44, with 730,271 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2012. The consensus EPS forecast is $0.67. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Dell Inc. ( DELL ) is +0.04 at $12.70, with 674,325 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jan 2013. The consensus EPS forecast is $0.55. DELL's current last sale is 79.38% of the target price of $16.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) is unchanged at $8.89, with 2,776,482 shares traded. AA's current last sale is 79.91% of the target price of $11.125. The following are the most active stocks for the after hours session : Williams Companies, Inc. (The) ( WMB ) is unchanged at $31.39, with 3,823,877 shares traded.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Alcoa Inc. ( AA ) is unchanged at $8.89, with 2,776,482 shares traded. AA's current last sale is 79.91% of the target price of $11.125.
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Alcoa Inc. ( AA ) is unchanged at $8.89, with 2,776,482 shares traded. AA's current last sale is 79.91% of the target price of $11.125. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2012.
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Alcoa Inc. ( AA ) is unchanged at $8.89, with 2,776,482 shares traded. AA's current last sale is 79.91% of the target price of $11.125. The following are the most active stocks for the after hours session : Williams Companies, Inc. (The) ( WMB ) is unchanged at $31.39, with 3,823,877 shares traded.
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1612.0
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2012-05-28 00:00:00 UTC
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3 "Deep Value" Stocks You Can't Afford to Ignore
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AA
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https://www.nasdaq.com/articles/3-deep-value-stocks-you-cant-afford-ignore-2012-05-28
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nan
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nan
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In a rising stock market , it pays to focus on a company's income statement . Each move up in the share price usually correlates to the company's bottom-line performance. But when the market is in sell-off mode, you should shift your focus to the balance sheet . That's where you can measure a company's real worth and get a handle on how much risk the stock can hold.
Although a company's market value can fall below the level of tangible book value on its balance sheet, it is likely to fall much less than most, even if the broader market plunges to fresh lows. That's no small concern at a time when the European and Chinese economies are now weakening. Fresh reports point to a global economic slowdown, and you should be focusing on defensive "below book" stocks right now. These carry solid upside like growth stocks, but defensive stocks that trade below tangible book value will allow you to sleep better at night.
After reviewing the 1,500 stocks that comprise the S&P 400 (which tracks mid-cap stocks), S&P 500 (large-caps) and S&P 600 (small caps) indices, I've found that roughly 7% of them trade below tangible book value right now. These are the stocks should be catching your eye right now. And I'll share my thoughts on three of them in a moment.
But first a quick note... A lot of these "below book" stocks are in the financial services sector, including big banks such as Morgan Stanley (NYSE: MS ) , at 51% of tangible book, Bank of America (NYSE: BAC ) at 51%, and Citigroup (NYSE: C ) , at 53% of tangible book. If you're a follower of my $100,000 Real-Money Portfolio , then you know I've been pounding the table on these stocks for some time now. These banks are under huge pressure right now on fears that the Greek economic crisis will de-stabilize global financial markets. If and when this crisis is diffused, these banks may post a huge rally.
Here are three other "below book" plays that are in my sights right now...
1. Arkansas Best (Nasdaq: ABFS )
This trucking firm delivered a sub-par first quarter, and shares have been pummeled, falling more than 50% from the 52-week high . First-quarter sales of $440 million missed forecasts by about $10 million. And for a company that has relatively high labor costs, sales leverage is crucial. Analysts at Citigroup "believe Arkansas will see weaker margins than peers until the cost structure disadvantage from its union contract is resolved."
But the sell-off has gone too far. The company's market value of $330 million is far below the $449 million on the balance sheet. Said another way, nearly half of the company's market value is supported by the trucker's $183 million net cash position. Of course investors are concerned that a slow economy could cause that balance sheet to weaken. Yet Arkansas Best has generated negative free cash flow only once in the past eight years, when it shed $59 million in 2009. Notably, the trucking industry has become much leaner since 2009, and it's highly unlikely that free cash flow will turn negative this time around -- assuming a mild U.S. recession .
Meanwhile, shares are so cheap that Citigroup, which has a "Neutral" rating on the stock, still suggests shares are worth $18 -- 40% above current levels. That target price is just three times Citigroup's projected 2012 EBITDA forecast. It also happens to coincide with tangible book value.
2. Century Aluminum (Nasdaq: CENX )
Though Alcoa (NYSE: AA ) remains my favorite aluminum producer due to its industry-leading cost structure, it's very hard to deny the appeal of this second-tier producer, which would benefit from the same pricing dynamics from which I expect Alcoa to eventually benefit.
Spot aluminum prices at a recent $0.90 per pound are leading to significant industry output cuts, which should benefit pricing down the road. But the industry is in pain right now, as evidenced by the fact that Century Aluminum's market value has fallen more than 50% in the past year to a recent $625 million, even though it carries more than $1 billion in tangible book value on its balance sheet.
Even in a tough pricing and demand environment, Century Aluminum's free cash flow should still be around $0.90 a share this year, according to Goldman Sachs analysts. They anticipate a modest rebound for aluminum in the next few years, which should help free cash flow to hit $1.30 per share by 2014. In that context, the recent $7 stock price looks like a screaming bargain.
3. Valero (NYSE: VLO )
Turning crude oil into gasoline, diesel and other distillate fuels has historically been a lousy business. International competition made it very hard for U.S. refineries to generate targeted returns on capital investments. But the tide is starting to turn. European refineries are less capable of converting heavy crude oil, and American counterparts, which are equipped to work with this lower-cost source of crude oil, are starting to benefit.
As a result, the investment community is starting to warm up to these oil refining stocks. And some see deep value in Valero, the nation's largest oil refinery, which also operates a network of retail gas stations. The key for this stock is to own it when its return on capital is higher than its cost of capital . That hasn't been the case in recent years, but net returns are now positive and expected to keep expanding.
Refineries generated positive net returns from 2003 through 2007, and a similar cycle is playing out now. Back then, the sector traded for about 4.5 times the EBITDA run rate, based on enterprise value . By that metric, Valero should be worth around $28 a share. That's around 25% upside from the recent stock price. This kind of upside can also be found when looking at the balance sheet. Valero carries a market value of $12.2 billion but holds $15.7 billion in tangible book value.
Risks to Consider: These stocks are all economically sensitive. Anything deeper than a mild economic recession in the United States could hurt shares.
Action to Take --> Though these stocks may lack some of the upside sizzle of high-growth stocks, they have solid asset support and are likely to fare better than most if the market weakens further. As I said earlier, you should keep an eye on these types of stocks and pounce on them when you think the time is right. The three stocks above are a good place to start.
[ Note: Be sure not to miss a single thing and have $100,000 Portfolio updates sent to your email inbox, free for a limited time, as soon as they're published by signing up here .]
-- David Sterman
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of AA, C in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Century Aluminum (Nasdaq: CENX ) Though Alcoa (NYSE: AA ) remains my favorite aluminum producer due to its industry-leading cost structure, it's very hard to deny the appeal of this second-tier producer, which would benefit from the same pricing dynamics from which I expect Alcoa to eventually benefit. StreetAuthority LLC owns shares of AA, C in one or more if its "real money" portfolios. Notably, the trucking industry has become much leaner since 2009, and it's highly unlikely that free cash flow will turn negative this time around -- assuming a mild U.S. recession .
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Century Aluminum (Nasdaq: CENX ) Though Alcoa (NYSE: AA ) remains my favorite aluminum producer due to its industry-leading cost structure, it's very hard to deny the appeal of this second-tier producer, which would benefit from the same pricing dynamics from which I expect Alcoa to eventually benefit. StreetAuthority LLC owns shares of AA, C in one or more if its "real money" portfolios. These carry solid upside like growth stocks, but defensive stocks that trade below tangible book value will allow you to sleep better at night.
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Century Aluminum (Nasdaq: CENX ) Though Alcoa (NYSE: AA ) remains my favorite aluminum producer due to its industry-leading cost structure, it's very hard to deny the appeal of this second-tier producer, which would benefit from the same pricing dynamics from which I expect Alcoa to eventually benefit. StreetAuthority LLC owns shares of AA, C in one or more if its "real money" portfolios. These carry solid upside like growth stocks, but defensive stocks that trade below tangible book value will allow you to sleep better at night.
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Century Aluminum (Nasdaq: CENX ) Though Alcoa (NYSE: AA ) remains my favorite aluminum producer due to its industry-leading cost structure, it's very hard to deny the appeal of this second-tier producer, which would benefit from the same pricing dynamics from which I expect Alcoa to eventually benefit. StreetAuthority LLC owns shares of AA, C in one or more if its "real money" portfolios. Although a company's market value can fall below the level of tangible book value on its balance sheet, it is likely to fall much less than most, even if the broader market plunges to fresh lows.
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1613.0
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2012-05-25 00:00:00 UTC
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Alcoa Gets Certificate by MBDC - Analyst Blog
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AA
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https://www.nasdaq.com/articles/alcoa-gets-certificate-by-mbdc-analyst-blog-2012-05-25
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nan
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Aluminum giant, Alcoa Inc. ( AA ) announced that its global line of wheel products have been Cradle to Cradle Certified by McDonough Braungart Design Chemistry (MBDC) at the Silver level driven by the production processes that are environmentally safe and healthy, and aluminum that is infinitely recyclable.
The company's wheels products are the first in the transportation industry to receive certification from the Cradle to Cradle Certified Program. MBDC, a global sustainability consulting and product certification firm, developed the Cradle to Cradle concept in 1995. Sustainability forms an integral part of Alcoa's products and this certification ensures that the company provides its customers the most safe and environmentally-conducive products.
MBDC assesses products for safety to human and environmental health, designs products for future use cycles, and sustainable manufacturing processes. Products are evaluated on a number of grounds like material health, material reutilization, renewable energy use, water stewardship and social responsibility.
Alcoa released its first-quarter 2012 results in April. The company reported earnings of 9 cents per share in the quarter compared with a loss of 18 cents in the fourth quarter of 2011. However, it came below the earnings of 27 cents a share recorded in the first quarter of 2011.
Excluding restructuring charges and other items, Alcoa's profit came in at 10 cents per share, beating the Zacks Consensus Estimate of a loss of 4 cents. The impressive results coupled with the company's bullish outlook pushed its stock price by 5.4% to $9.82 in after-hours trading. Higher production and volumes as well as improved market conditions drove Alcoa's results.
Quarterly revenues increased by 0.3% sequentially to $6,006 million and edged up 0.8% over the prior-year quarter. It surpassed the Zacks Consensus Estimate of $5,735 million. The increase in revenues was driven by strong results in Global Rolled Products and Engineered Products and Solutions.
For 2012, Alcoa expects global aerospace market to grow by 3 percentage points to 13%-14%. The company also expects global growth for the automotive sector to be in the range of 3%-7%, commercial transportation in the range of 1%-5%, packaging in the range of 2%-3%, building and construction in the range of 2.5%-3.5%, and industrial gas turbine in the band of 1%-2%.
The company believes that there will be a deficit in global aluminum supply in 2012. Besides, Alcoa reiterated its expectation that aluminum demand will grow by 7% globally in the year.
Pennsylvania-based Alcoa Inc. is among the world's leading producers of primary and fabricated aluminum and alumina. It competes with Aluminum Corporation Of China Limited ( ACH ) and RioTinto plc. ( RIO )
We believe that the Alcoa's cost reduction measures are offsetting the negative impact of higher energy and raw material costs on its profitability to some extent. The company aims to reduce costs in its upstream business and achieve record profits in its mid stream and downstream businesses. It is also divesting underperforming assets through its restructuring program.
Currently, the stock maintains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) "Hold" rating. We have a long-term "Neutral" recommendation on the shares of the company.
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
RIO TINTO-ADR (RIO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aluminum giant, Alcoa Inc. ( AA ) announced that its global line of wheel products have been Cradle to Cradle Certified by McDonough Braungart Design Chemistry (MBDC) at the Silver level driven by the production processes that are environmentally safe and healthy, and aluminum that is infinitely recyclable. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. The impressive results coupled with the company's bullish outlook pushed its stock price by 5.4% to $9.82 in after-hours trading.
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Aluminum giant, Alcoa Inc. ( AA ) announced that its global line of wheel products have been Cradle to Cradle Certified by McDonough Braungart Design Chemistry (MBDC) at the Silver level driven by the production processes that are environmentally safe and healthy, and aluminum that is infinitely recyclable. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Excluding restructuring charges and other items, Alcoa's profit came in at 10 cents per share, beating the Zacks Consensus Estimate of a loss of 4 cents.
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Aluminum giant, Alcoa Inc. ( AA ) announced that its global line of wheel products have been Cradle to Cradle Certified by McDonough Braungart Design Chemistry (MBDC) at the Silver level driven by the production processes that are environmentally safe and healthy, and aluminum that is infinitely recyclable. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Sustainability forms an integral part of Alcoa's products and this certification ensures that the company provides its customers the most safe and environmentally-conducive products.
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Aluminum giant, Alcoa Inc. ( AA ) announced that its global line of wheel products have been Cradle to Cradle Certified by McDonough Braungart Design Chemistry (MBDC) at the Silver level driven by the production processes that are environmentally safe and healthy, and aluminum that is infinitely recyclable. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. The company's wheels products are the first in the transportation industry to receive certification from the Cradle to Cradle Certified Program.
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1614.0
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2012-05-25 00:00:00 UTC
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Stocks See Red Ahead of Long Weekend, But Hold Onto Weekly Gains
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AA
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https://www.nasdaq.com/articles/stocks-see-red-ahead-long-weekend-hold-weekly-gains-2012-05-25
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nan
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nan
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The Dow Jones Industrial Average (DJI) took a bit of a dive today, as the bulls stayed on the sidelines ahead of the Memorial Day weekend. "It's Friday and we all get a three-day break from worrying about Greece and Europe," stated Schaeffer's Senior Technical Strategist Ryan Detrick. "I'd say it was a light news day, but seeing the Thomson Reuters/University of Michigan consumer sentiment survey come in at its highest level since October 2007 was a nice sign. Remember, regardless of what happens in Europe, the U.S. economy has been holding tough. Seeing a confident consumer is a great sign."
Keep reading to see what else was on our radar today:
Did the SPX find a foothold above key technical level?
Sing a song of Facebook ( FB ): Monday, Bloody Monday.
And now, a look at the numbers...
The Dow Jones Industrial Average (DJI - 12,454.83) touched a session peak of 12,533.12 earlier today, and tumbled as low as the 12,421.53 mark in the last hour of trading. But in the end, the Dow turned in a deficit of 74.9 points, or 0.6%. Just seven of the 30 blue chips crossed the finish line with wins, as Hewlett-Packard ( HPQ ) led the outperformers with a 2.6% jump. Boeing ( BA ) paced the 22 losing components with a roughly 2% decline, while Alcoa ( AA ) remained unchanged. The blue-chip barometer inched 0.7% higher for the week, snapping its three-week losing streak.
The S&P 500 Index (SPX - 1,317.82) couldn't keep its head above the breakeven mark today, and gave up 2.9 points, or 0.2%, by the closing bell. The Nasdaq Composite (COMP - 2,837.53) also closed lower, pulling back 1.9 points, or 0.07%. For the week, the SPX added 1.7%, while the COMP notched a 2.1% increase.
The CBOE Market Volatility Index (VIX - 21.76) moved north by 1% today, closing off of its session peak of 22.29, but sawed off 13.3% over the past week. The VIX still managed a second consecutive weekly finish above 20.
Today's highlight : "As was expected, we saw some profit taking ahead of the long weekend and the previous four-day win streak for the SPX," said Detrick. "But in the end, last week's lows held. We've noted several times how important the 1,290 area is , and although it's still early, so far so good."
Turning to today's major market stories...
A synthetic long stock position was opened following Pandora Media's ( P ) earnings-induced jump.
Options bears rolled out their positions on Yahoo! (YHOO) .
Weekly call activity spiked as Chesapeake Energy (CHK) enjoyed a recent surge .
Retailers Wal-Mart (WMT) and Bed Bath & Beyond (BBY) leapt to new highs.
Are short sellers hedging their bets on Seattle Genetics (SGEN) ?
Analysts adjusted their positions on agriculture issue Agrium (AGU) and semiconductor stock ARM Holdings (ARMH) .
Options speculators converged on financial firms Fifth Third Bancorp (FITB) and Citigroup (C) .
Schaeffer's columnist Adam Warner examined the Facebook ( FB ) IPO with a little help from U2.
For today's activity in commodities, options, and more, head to page 2.
Continued anxiety about Iran's nuclear program and an uptick in domestic consumer confidence supported oil futures for a second straight day. By the close, July-dated oil edged up 20 cents, or 0.2%, to finish at $90.86 a barrel. The commodity tallied a 0.7% drop on the week.
Gold futures also rose for a second consecutive session, as bargain-hunting investors sought the malleable metal ahead of the holiday weekend. Although the dollar rallied today, gold for June delivery was able to add $11.40, or 0.7%, and land at $1,568.90 an ounce. For the week, however, the commodity slipped 1.4%.
Levels to Watch in Trading :
Dow Jones Industrial Average (DJI - 12,454.83) - support at 11,500; resistance at 14,000
S&P 500 Index (SPX - 1,317.82) - support at 1,100; resistance at 1,500
Nasdaq Composite (COMP - 2,837.53) - support at 2,400; resistance at 3,400
For today's notable annual highs and lows, click here .
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Boeing ( BA ) paced the 22 losing components with a roughly 2% decline, while Alcoa ( AA ) remained unchanged. The Dow Jones Industrial Average (DJI) took a bit of a dive today, as the bulls stayed on the sidelines ahead of the Memorial Day weekend. The Dow Jones Industrial Average (DJI - 12,454.83) touched a session peak of 12,533.12 earlier today, and tumbled as low as the 12,421.53 mark in the last hour of trading.
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Boeing ( BA ) paced the 22 losing components with a roughly 2% decline, while Alcoa ( AA ) remained unchanged. The Dow Jones Industrial Average (DJI) took a bit of a dive today, as the bulls stayed on the sidelines ahead of the Memorial Day weekend. The Dow Jones Industrial Average (DJI - 12,454.83) touched a session peak of 12,533.12 earlier today, and tumbled as low as the 12,421.53 mark in the last hour of trading.
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Boeing ( BA ) paced the 22 losing components with a roughly 2% decline, while Alcoa ( AA ) remained unchanged. The Dow Jones Industrial Average (DJI) took a bit of a dive today, as the bulls stayed on the sidelines ahead of the Memorial Day weekend. The CBOE Market Volatility Index (VIX - 21.76) moved north by 1% today, closing off of its session peak of 22.29, but sawed off 13.3% over the past week.
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Boeing ( BA ) paced the 22 losing components with a roughly 2% decline, while Alcoa ( AA ) remained unchanged. The S&P 500 Index (SPX - 1,317.82) couldn't keep its head above the breakeven mark today, and gave up 2.9 points, or 0.2%, by the closing bell. The VIX still managed a second consecutive weekly finish above 20.
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1615.0
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2012-05-23 00:00:00 UTC
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Now Is a Great Chance to Buy My 3 Favorite Stocks
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https://www.nasdaq.com/articles/now-great-chance-buy-my-3-favorite-stocks-2012-05-23
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nan
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We're inching ever closer to an official" market correction ." The S&P 500 is down almost 10% from its recent peak, which means we'll soon hear that phrase bandied about in the financial media.
These pullbacks are painful but bring a silver lining: good companies see their stocks pushed down to levels that create even deeper bargains for investors.
I've been scanning themarket in search of these newly-uncovered bargains, but am also keeping an eye on the stocks I know best -- the ones in my $100,000 Real-Money Portfolio . These are my top stock ideas, and though I could add a fresh stock pick to this portfolio, I'd rather own even more of my favorite stocks, especially now that external events have forced them down along with thismarket . In a few minutes, I'll tell you exactly what I'm planning to buy with my spare cash...
An excuse to sell
There are only two kinds of stockmarket environments. The first is in which any news is seen in a positive light, and a company can deliver bad news and not see its stock punished. The second is in which investors fail to respond positively to good news and instead look for reasons to sell a stock -- sometimes sharply. That's where we are right now. It's no fun thinking about buying stocks in such an environment, but it's thatcontrarian positioning that allows you to outperform the market over the long haul.
The trading action in Cree Inc. (Nasdaq: CREE ) is instructive. The company's chief financial officer (CFO) a nnounced plans to leave the firm, pushingshares down 9% on Tuesday, May 22, and down nearly 20% in the past two weeks.
Any time you see an executive leave a company -- especially the person in charge of finances -- you should take note. This can be a red flag thataccounting troubles are brewing. Yet in this case, there is a far more prosaic explanation: Cree's CFO is anxious to take on a greater management role, which he will soon have with a new employer. The fact that he plans to stick around as a consultant until mid-June tells you he's not leaving a house on fire.
This stock is now down to levels not seen since early February, and it's too much for me to pass up. Even as I expect more choppy results in the next few quarters (which could push the stock even lower), I also keep sight of the fact that Cree's long-term outlook is very bright .
Ignoring the good news
We learned this week thatbond- rating agency Moody's has boosted Ford Motor's (NYSE: F ) debt toinvestment grade . The fact that the upgrade comes during a tough stretch for the globaleconomy tells you just how healthy Ford is . And the move isn't just symbolic. An investment-grade rating gives Ford even greater financial flexibility and should allow it toswap out high-yield debt for lower-yielding debt, saving millions in borrowing costs. And after Ford has shored up its pension fund, the company will have a much freer hand to initiate a major stock buyback ordividend boost. Even as Ford's stock got a modest pop on the news, investors are still largely avoiding this stock, as it hovers near its lows for 2012.
Guilt by association
Even when companies deliver no news, their stock can still get punished. The trading debacle at JP Morgan (NYSE: JPM ) has put fresh pressure on all banking stocks , including Citigroup (NYSE: C ) , which is now down nearly 25% since the middle of April.
More than $25 billion inmarket value has simply vanished. The fact thatshares now trade for roughly half of their projected year-end tangiblebook value is simply stunning. I've always known this stock will hit speed bumps on its way to a much higher share price, but the current valuations strike me as absurd.
Taking action
In response to the ever-lower share prices for these companies, I am playing offense. First, I am adding 100shares to my current 300-share position in Cree. That's a possibly risky move in light of the fact that this company is struggling to meet quarterly forecasts right now, but my 1-2 year time horizon makes me less concerned.
Second, I am adding 100 shares to my 300-share position in Citigroup. This stock is roughly 20% lower than where I first bought it, even though Citigroup's longer-term prospects remain quite bright.
Lastly, I am not adding to my 1,090-share position in Ford. It's already my largest holding, and it would be unwise to have even greater portfolio concentration in this stock. It's a bummer, because shares of Ford below $10.50 are a compelling value in light of the company's current balance sheet and projected mid-decade income statement .
Risks to Consider: I'm wise enough to know that a bottom may not be in for this market. These buys might be premature. But I need to pounce on value and not act as a market timer.
Action to Take --> As noted, I will buy 100 additional shares of both Cree and Citigroup. Please also note that I may send out a short e-mail in coming days announcing plans to sell my 300 shares of the Direxion Daily Small CapBear 3X ETF (NYSE: TZA ) . The current wave of selling may soon exhaust itself, and I'd like to free up that cash for fresh buys. (If you haven't already signed up to receive my latest updates (which are currently at no cost to you), then I highly urge you to do so by following this link . This market can turn on a dime, and you'll want to be on top of things in order to strike while the iron is hot.)
All prices are as of Wednesday, May 23.Security (Ticker)SharesInitial Purchase DateAvg.
Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,090 01/04/12 .44 .35,282 -9.6%Alcoa ( AA ) 500 01/06/12 .32 .37,185 -10.4%Cree ( CREE ) 300 01/12/12 .22 .64,692 10.3%Exide ( XIDE ) 1,500 02/01/12 .41 .33,495 N/A N/A-31.9%Citigroup ( C ) 300 02/06/12 .28 .27,880 -21.2%Ligand Pharma (LGND) 350 02/13/12 .87 .30,955 -23.9%Marathon Oil (MRO) 200 02/24/12 .01 .97,794 N/A-31.6%Direxion Small Cap (TZA) 300 02/29/12 .42 .02,905 N/A N/A24.8%Calgon Carbon(CCC) 400 03/14/12 .38 .93,172 N/A N/A-16.1%Echelon (ELON) 1,000 03/30/12 .51 .42,420 N/A-24.3%MDC Partners (MDCA) 500 04/09/12 .57 .31,655 N/A N/A-12.2%Freeport-McMoran (FCX) 200 04/24/12 .00 .47,294 N/A N/A-15.1%Zoltek (ZOLT) 600 05/11/12 .16 .38,428 N/A-19.6%Weatherford Industries (WFT) 500 05/21/12 .48 .40,200 N/A-0.8%Security Holdings,986$ Cash Holdings ,184Total Return since January 2012* ,170-12.8%* Individual security returns are shown as of the date each security was added to this portfolio. However, total returns for the portfolio and the S&P are listed since the portfolio was funded with 0,000 of real money on Jan. 4, 2012.
Visit this link to view a listing of all previously-closed 0,000 Real-Money Portfolio holdings.
-- David Sterman
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of CREE, F, TZA, C in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,090 01/04/12 .44 .35,282 -9.6%Alcoa ( AA ) 500 01/06/12 .32 .37,185 -10.4%Cree ( CREE ) 300 01/12/12 .22 .64,692 10.3%Exide ( XIDE ) 1,500 02/01/12 .41 .33,495 N/A N/A-31.9%Citigroup ( C ) 300 02/06/12 .28 .27,880 -21.2%Ligand Pharma (LGND) 350 02/13/12 .87 .30,955 -23.9%Marathon Oil (MRO) 200 02/24/12 .01 .97,794 N/A-31.6%Direxion Small Cap (TZA) 300 02/29/12 .42 .02,905 N/A N/A24.8%Calgon Carbon(CCC) 400 03/14/12 .38 .93,172 N/A N/A-16.1%Echelon (ELON) 1,000 03/30/12 .51 .42,420 N/A-24.3%MDC Partners (MDCA) 500 04/09/12 .57 .31,655 N/A N/A-12.2%Freeport-McMoran (FCX) 200 04/24/12 .00 .47,294 N/A N/A-15.1%Zoltek (ZOLT) 600 05/11/12 .16 .38,428 N/A-19.6%Weatherford Industries (WFT) 500 05/21/12 .48 .40,200 N/A-0.8%Security Holdings,986$ Cash Holdings ,184Total Return since January 2012* ,170-12.8%* Individual security returns are shown as of the date each security was added to this portfolio. Ignoring the good news We learned this week thatbond- rating agency Moody's has boosted Ford Motor's (NYSE: F ) debt toinvestment grade . That's a possibly risky move in light of the fact that this company is struggling to meet quarterly forecasts right now, but my 1-2 year time horizon makes me less concerned.
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Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,090 01/04/12 .44 .35,282 -9.6%Alcoa ( AA ) 500 01/06/12 .32 .37,185 -10.4%Cree ( CREE ) 300 01/12/12 .22 .64,692 10.3%Exide ( XIDE ) 1,500 02/01/12 .41 .33,495 N/A N/A-31.9%Citigroup ( C ) 300 02/06/12 .28 .27,880 -21.2%Ligand Pharma (LGND) 350 02/13/12 .87 .30,955 -23.9%Marathon Oil (MRO) 200 02/24/12 .01 .97,794 N/A-31.6%Direxion Small Cap (TZA) 300 02/29/12 .42 .02,905 N/A N/A24.8%Calgon Carbon(CCC) 400 03/14/12 .38 .93,172 N/A N/A-16.1%Echelon (ELON) 1,000 03/30/12 .51 .42,420 N/A-24.3%MDC Partners (MDCA) 500 04/09/12 .57 .31,655 N/A N/A-12.2%Freeport-McMoran (FCX) 200 04/24/12 .00 .47,294 N/A N/A-15.1%Zoltek (ZOLT) 600 05/11/12 .16 .38,428 N/A-19.6%Weatherford Industries (WFT) 500 05/21/12 .48 .40,200 N/A-0.8%Security Holdings,986$ Cash Holdings ,184Total Return since January 2012* ,170-12.8%* Individual security returns are shown as of the date each security was added to this portfolio. Ignoring the good news We learned this week thatbond- rating agency Moody's has boosted Ford Motor's (NYSE: F ) debt toinvestment grade . -- David Sterman David Sterman does not personally hold positions in any securities mentioned in this article.
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Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,090 01/04/12 .44 .35,282 -9.6%Alcoa ( AA ) 500 01/06/12 .32 .37,185 -10.4%Cree ( CREE ) 300 01/12/12 .22 .64,692 10.3%Exide ( XIDE ) 1,500 02/01/12 .41 .33,495 N/A N/A-31.9%Citigroup ( C ) 300 02/06/12 .28 .27,880 -21.2%Ligand Pharma (LGND) 350 02/13/12 .87 .30,955 -23.9%Marathon Oil (MRO) 200 02/24/12 .01 .97,794 N/A-31.6%Direxion Small Cap (TZA) 300 02/29/12 .42 .02,905 N/A N/A24.8%Calgon Carbon(CCC) 400 03/14/12 .38 .93,172 N/A N/A-16.1%Echelon (ELON) 1,000 03/30/12 .51 .42,420 N/A-24.3%MDC Partners (MDCA) 500 04/09/12 .57 .31,655 N/A N/A-12.2%Freeport-McMoran (FCX) 200 04/24/12 .00 .47,294 N/A N/A-15.1%Zoltek (ZOLT) 600 05/11/12 .16 .38,428 N/A-19.6%Weatherford Industries (WFT) 500 05/21/12 .48 .40,200 N/A-0.8%Security Holdings,986$ Cash Holdings ,184Total Return since January 2012* ,170-12.8%* Individual security returns are shown as of the date each security was added to this portfolio. These are my top stock ideas, and though I could add a fresh stock pick to this portfolio, I'd rather own even more of my favorite stocks, especially now that external events have forced them down along with thismarket . The first is in which any news is seen in a positive light, and a company can deliver bad news and not see its stock punished.
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Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,090 01/04/12 .44 .35,282 -9.6%Alcoa ( AA ) 500 01/06/12 .32 .37,185 -10.4%Cree ( CREE ) 300 01/12/12 .22 .64,692 10.3%Exide ( XIDE ) 1,500 02/01/12 .41 .33,495 N/A N/A-31.9%Citigroup ( C ) 300 02/06/12 .28 .27,880 -21.2%Ligand Pharma (LGND) 350 02/13/12 .87 .30,955 -23.9%Marathon Oil (MRO) 200 02/24/12 .01 .97,794 N/A-31.6%Direxion Small Cap (TZA) 300 02/29/12 .42 .02,905 N/A N/A24.8%Calgon Carbon(CCC) 400 03/14/12 .38 .93,172 N/A N/A-16.1%Echelon (ELON) 1,000 03/30/12 .51 .42,420 N/A-24.3%MDC Partners (MDCA) 500 04/09/12 .57 .31,655 N/A N/A-12.2%Freeport-McMoran (FCX) 200 04/24/12 .00 .47,294 N/A N/A-15.1%Zoltek (ZOLT) 600 05/11/12 .16 .38,428 N/A-19.6%Weatherford Industries (WFT) 500 05/21/12 .48 .40,200 N/A-0.8%Security Holdings,986$ Cash Holdings ,184Total Return since January 2012* ,170-12.8%* Individual security returns are shown as of the date each security was added to this portfolio. The first is in which any news is seen in a positive light, and a company can deliver bad news and not see its stock punished. First, I am adding 100shares to my current 300-share position in Cree.
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1616.0
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2012-05-22 00:00:00 UTC
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Stock Market News for May 22, 2012 - Market News
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https://www.nasdaq.com/articles/stock-market-news-for-may-22-2012-market-news-2012-05-22
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The Dow and S&P 500 finally snapped their six-day losing streak and the Nasdaq also chalked up gains as investors chose to focus on positive signs from China rather than being bogged down yet again by European concerns. China's Premier Wen Jiabao has prioritized spurring economic growth over curbing inflation. Elsewhere the G8 meeting ended with no clear decisions regarding the prevailing economic situation. Luckily this failed to dent investors' mood. On the other hand, Facebook continued to lose its sheen for the second consecutive day as it closed in the red zone yesterday.
The Dow Jones Industrial Average (DJI) inched down 1.1% to end at 12,504.48. The Standard & poor 500 (S&P 500) jumped 1.6% and signed off yesterday's trading session at 1,315.99. The tech-laden Nasdaq Composite Index soared 2.5% and closed at 2,847.21. After rallying higher all through last week, the fear-gauge CBOE Volatility Index (VIX) slumped 12.3% yesterday to settle at 22.01. Consolidated volumes on the New York Stock Exchange, Nasdaq and the American Stock Exchange were roughly 6.77 billion shares, lower than last year's daily average of 7.84 billion.
Yesterday's gains came after a series of losses for the benchmarks. Investors finally witnessed a positive rally, where each benchmark jumped by over a percent, after the markets ended in the red on every single day last week. Consequently, it was the markets' worst weekly drop since last November. The Dow registered its first-triple digit gains since April 26th and reversed its six-consecutive days of losses. Only seven of the 30 Dow components ended in the red yesterday and stocks like Alcoa, Inc. (NYSE: AA ), The Boeing Company (NYSE: BA ), Caterpillar Inc. (NYSE: CAT ), E. I. du Pont de Nemours and Company (NYSE: DD ), Hewlett-Packard Company (NYSE: HPQ ) and United Technologies Corp. (NYSE: UTX ) jumped 2.0%, 3.8%, 3.7%, 1.9%, 2.0% and 1.8%, respectively, to let the Dow notch up its third finish in the green this month.
The S&P 500 and Nasdaq also shared the laurels, as the former snapped its six-day losing streak while the Nasdaq rebounded after suffering losses for five-straight days. The S&P 500 has suffered a heavy battering at the hands of European financial woes amidst a mixed bag of economic readings. Since the end of April, the S&P 500 has lost 7.8%. However, things were better yesterday and the S&P 500 had its best day in almost two months. As for Nasdaq, the tech-laden index enjoyed its best one-day percentage gain since December last year.
Movement in the Nasdaq is often guided by its biggest component - Apple Inc. (NASDAQ: AAPL ). The iPhone and iPad maker, which is also the largest company in terms of market value, jumped 5.8% yesterday and made a significant contribution in enabling the Nasdaq to outperform the fellow benchmarks. A similar trend was also noticed in the benchmarks' last quarterly performance, where a significant surge in Apple's shares boosted Nasdaq that emerged as the biggest winner. Yesterday's gains in Apple were the largest since April 25, a day after Apple reported its quarterly results.
However, the new Nasdaq component Facebook, Inc.'s (NASDAQ: FB ) fortunes on the Street seems to be gloomy for the moment. Last Friday, all the hoopla about its debut on the Street quickly faded, and the company's shares which gained 10% in the morning, ended with a mere 0.6% gain on its first-day of trading. Its second day of trading was even more disappointing as it crashed by 11% to close at $34.03 a share.
Nonetheless, this hardly affected the broader markets, as investors were buoyed by Chinese Premier Wen Jiabao's stance on economic growth being more important than curbing inflation. Jiabao said: "We should continue to implement a proactive fiscal policy and a prudent monetary policy while giving more priority to maintaining growth". He could well sense the urgency the economy needs amidst the growing global financial woes and said: "To prevent the economy from slowing down too rapidly is of great urgency". He further added: "No matter the fiscal policy or the monetary policy, we cannot afford to wait and see and miss the right timing… We must implement the policies in a timely manner if we believe they're right". These comments were sufficient encouragement for investors and were clearly reflected in the markets' uptrend.
However, while the leader of the second-largest economy sparked off hopes, the G-8 meeting failed to create optimism as it provided no clear indication on financial issues. The weekend summit held in Washington and consisting of leaders from U.S., German and Britain, did suggest that leaders would want Greece to stay in the euro, but no concrete plan was announced regarding the same. Therefore, with enough ambiguity among investors, news from the G-8 summit could hardly boost the markets.
ALCOA INC (AA): Free Stock Analysis Report
APPLE INC (AAPL): Free Stock Analysis Report
BOEING CO (BA): Free Stock Analysis Report
CATERPILLAR INC (CAT): Free Stock Analysis Report
DU PONT (EI) DE (DD): Free Stock Analysis Report
FACEBOOK INC-A (FB): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
UTD TECHS CORP (UTX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Only seven of the 30 Dow components ended in the red yesterday and stocks like Alcoa, Inc. (NYSE: AA ), The Boeing Company (NYSE: BA ), Caterpillar Inc. (NYSE: CAT ), E. I. du Pont de Nemours and Company (NYSE: DD ), Hewlett-Packard Company (NYSE: HPQ ) and United Technologies Corp. (NYSE: UTX ) jumped 2.0%, 3.8%, 3.7%, 1.9%, 2.0% and 1.8%, respectively, to let the Dow notch up its third finish in the green this month. Movement in the Nasdaq is often guided by its biggest component - Apple Inc. (NASDAQ: AAPL ). ALCOA INC (AA): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report FACEBOOK INC-A (FB): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report UTD TECHS CORP (UTX): Free Stock Analysis Report To read this article on Zacks.com click here.
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Only seven of the 30 Dow components ended in the red yesterday and stocks like Alcoa, Inc. (NYSE: AA ), The Boeing Company (NYSE: BA ), Caterpillar Inc. (NYSE: CAT ), E. I. du Pont de Nemours and Company (NYSE: DD ), Hewlett-Packard Company (NYSE: HPQ ) and United Technologies Corp. (NYSE: UTX ) jumped 2.0%, 3.8%, 3.7%, 1.9%, 2.0% and 1.8%, respectively, to let the Dow notch up its third finish in the green this month. ALCOA INC (AA): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report FACEBOOK INC-A (FB): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report UTD TECHS CORP (UTX): Free Stock Analysis Report To read this article on Zacks.com click here. Movement in the Nasdaq is often guided by its biggest component - Apple Inc. (NASDAQ: AAPL ).
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Only seven of the 30 Dow components ended in the red yesterday and stocks like Alcoa, Inc. (NYSE: AA ), The Boeing Company (NYSE: BA ), Caterpillar Inc. (NYSE: CAT ), E. I. du Pont de Nemours and Company (NYSE: DD ), Hewlett-Packard Company (NYSE: HPQ ) and United Technologies Corp. (NYSE: UTX ) jumped 2.0%, 3.8%, 3.7%, 1.9%, 2.0% and 1.8%, respectively, to let the Dow notch up its third finish in the green this month. ALCOA INC (AA): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report FACEBOOK INC-A (FB): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report UTD TECHS CORP (UTX): Free Stock Analysis Report To read this article on Zacks.com click here. Movement in the Nasdaq is often guided by its biggest component - Apple Inc. (NASDAQ: AAPL ).
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Only seven of the 30 Dow components ended in the red yesterday and stocks like Alcoa, Inc. (NYSE: AA ), The Boeing Company (NYSE: BA ), Caterpillar Inc. (NYSE: CAT ), E. I. du Pont de Nemours and Company (NYSE: DD ), Hewlett-Packard Company (NYSE: HPQ ) and United Technologies Corp. (NYSE: UTX ) jumped 2.0%, 3.8%, 3.7%, 1.9%, 2.0% and 1.8%, respectively, to let the Dow notch up its third finish in the green this month. Movement in the Nasdaq is often guided by its biggest component - Apple Inc. (NASDAQ: AAPL ). ALCOA INC (AA): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report FACEBOOK INC-A (FB): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report UTD TECHS CORP (UTX): Free Stock Analysis Report To read this article on Zacks.com click here.
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1617.0
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2012-05-22 00:00:00 UTC
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Dow, SPX Tip-Toe Breakeven During Dramatic Last-Minute Sell-Off
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https://www.nasdaq.com/articles/dow-spx-tip-toe-breakeven-during-dramatic-last-minute-sell-2012-05-22
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The Dow Jones Industrial Average (DJI) traveled in positive territory for most of the day, but lost its grip during the final half hour of trading, flailing into the red. "The very oversold bounce that started yesterday ran out of steam as the trading day progressed," said Schaeffer's Senior Technical Strategist Ryan Detrick. "With big news from a European Union meeting slated for tomorrow -- remember, Europe seems to be all we can think about anymore -- it looks like we're back to a skittish market bent on holding stocks overnight."
Keep reading to see what else was on our radar today:
Just how much did Wall Street's recent weakness weigh on Facebook's ( FB ) IPO ?
Plus, Schaeffer's Senior Equities Analyst Joe Bell's confidence is building on the home construction sector.
And now, a look at the numbers...
The Dow Jones Industrial Average (DJI - 12,502.81) climbed as high as the 12,575.96 mark today before depleting all its gains in the last 30 minutes of trading. By the time the dust settled, the blue-chip barometer was off by 1.7 points, or 0.01%. Half of the Dow's 30 components closed lower, as Alcoa ( AA ) led the losing issues with a 1.3% deficit. JPMorgan Chase ( JPM ) paced the 14 outperformers with a 4.6% jump. Walt Disney ( DIS ) remained unchanged.
The S&P 500 Index (SPX - 1,316.63) ended basically flat, after falling from a session peak of 1,328.49. Ultimately, the SPX closed up by 0.6 point, or 0.05%. The Nasdaq Composite (COMP - 2,839.08) suffered a similar fate, and finished with the worst performance of its peers, inching to a loss of 8.1 points, or 0.3%.
Bouncing from support off its 20-day moving average, the CBOE Market Volatility Index (VIX - 22.48) increased by 2.1% today, and landed below its session high of 23.19. This marked the VIX's seventh consecutive daily close atop the 20 level.
Today's highlight : "There were two buyouts today and this was a nice sign," claimed Detrick. "Benihana ( BNHN ) and Ariba (ARBA) were both up about 20% on the day. This suggests firms are still finding value in stocks, even if most investors have decided to shun stocks at these levels."
Turning to today's major market stories...
Thanks to an upbeat existing home sales report , the SPDR S&P Homebuilders ETF (XHB) prolonged its rally atop a key technical level .
A bear call spread was implemented on EMC Corporation (EMC).
Short sellers and bearish options traders alike flooded beleaguered RadioShack (RSH) .
Following solid earnings reports, Cracker Barrel (CBRL) and DSW (DSW) leapt to fresh highs.
Put players are hoping that ARBA loses its grip on recent technical support .
Natural gas and oil producer Devon Energy (DVN) and coffee king Starbucks (SBUX) were pegged with opposing brokerage notes.
Weekly call buyers bet on a rise in Apple (AAPL) shares , while weekly options activity surged ahead of Hewlett-Packard's (HPQ) Wednesday earnings report .
A call spread strategist predicts a near-term upside for Groupon (GRPN) .
Cree (CREE) backpedaled after its chief financial officer (CFO) resigned, but call buying continued to soar .
Schaeffer's Contributor Adam Warner weighed Facebook's ( FB ) ugly debut against the current market conditions.
For today's activity in commodities, options, and more, head to page 2.
Oil futures turned south today, as anxieties remain heightened on what an unresolved euro-zone crisis means for the rest of the global economy. Also, a possible deal to let U.N. inspectors into Iranian nuclear facilities bolstered speculation that sanctions might be averted for the oil-rich nation. As the dollar strengthened, crude for June delivery dropped 91 cents, or 1%, to settle at $91.66 a barrel.
Gold futures closed lower for a second straight session, feeling the pinch of a higher greenback, ongoing euro-zone financial woes, and Fitch Ratings' credit downgrade of Japan. June-dated gold shed $12.10, or 0.8%, to land at $1,576.60 an ounce.
Levels to Watch in Trading :
Dow Jones Industrial Average (DJI - 12,502.81) - support at 11,500; resistance at 14,000
S&P 500 Index (SPX - 1,316.63) - support at 1,100; resistance at 1,500
Nasdaq Composite (COMP - 2,839.08) - support at 2,400; resistance at 3,400
For today's notable annual highs and lows, click here .
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Half of the Dow's 30 components closed lower, as Alcoa ( AA ) led the losing issues with a 1.3% deficit. Weekly call buyers bet on a rise in Apple (AAPL) shares , while weekly options activity surged ahead of Hewlett-Packard's (HPQ) Wednesday earnings report . The Dow Jones Industrial Average (DJI) traveled in positive territory for most of the day, but lost its grip during the final half hour of trading, flailing into the red.
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Half of the Dow's 30 components closed lower, as Alcoa ( AA ) led the losing issues with a 1.3% deficit. Weekly call buyers bet on a rise in Apple (AAPL) shares , while weekly options activity surged ahead of Hewlett-Packard's (HPQ) Wednesday earnings report . The Dow Jones Industrial Average (DJI) traveled in positive territory for most of the day, but lost its grip during the final half hour of trading, flailing into the red.
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Half of the Dow's 30 components closed lower, as Alcoa ( AA ) led the losing issues with a 1.3% deficit. Weekly call buyers bet on a rise in Apple (AAPL) shares , while weekly options activity surged ahead of Hewlett-Packard's (HPQ) Wednesday earnings report . Bouncing from support off its 20-day moving average, the CBOE Market Volatility Index (VIX - 22.48) increased by 2.1% today, and landed below its session high of 23.19.
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Half of the Dow's 30 components closed lower, as Alcoa ( AA ) led the losing issues with a 1.3% deficit. Weekly call buyers bet on a rise in Apple (AAPL) shares , while weekly options activity surged ahead of Hewlett-Packard's (HPQ) Wednesday earnings report . By the time the dust settled, the blue-chip barometer was off by 1.7 points, or 0.01%.
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1618.0
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2012-05-17 00:00:00 UTC
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Almost Every Oil Well Will Need This Company's Technology
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AA
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https://www.nasdaq.com/articles/almost-every-oil-well-will-need-companys-technology-2012-05-17
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nan
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nan
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Investors looking at energy stocks may have a bit of whiplash these days. Oil prices appear fairly firm while natural gas prices still remain near multi-year lows. In other countries, natural gas prices are surging, as demand rises in places that have de-commissioned nuclear power plants, such as Japan and Germany.
Here at StreetAuthority, we take a much broader view of oil, gas, coal, nuclear and many other commodities. Many of us remain focused on the multi-decade trend that is playing out before our eyes. Demand for energy and other commodities -- in all forms -- is in a long-term uptrend, even as supplies remain constant. Over time, we'll see periods of scarcity that ignite a powerful rally in prices. And it's crucial to keep identifying the commodity producers that will be perfectly positioned for the next boom.
Yet here in the spring of 2012, it's a bit hard to see that long-term trend in action. Many commodities are falling from their peaks as European economic concerns weigh heavily. As an example, my focus on Marathon Oil (NYSE: MRO ) in my $100,000 Real-Money Portfolio a few months ago was premature, and shares are underwater at the moment. Oil and natural gas prices have fallen since mid-winter, and they could even fall a bit more before the eventual inevitable rebound comes.
Perhaps this is a good time to focus away from oil and gas stocks and toward the companies that simply provide the products and services that energy drillers need. Yet if you hear from the industry's biggest players like Schlumberger (NYSE: SLB ) and Halliburton (NYSE: HAL ) , they'll tell you that all of the global cross-currents are creating a mixed picture for them right now as well. On recent conference calls, both of these firms conceded that the customers (energy drillers) are calling the shots right now. So price concessions are essential if they want to win contracts.
But at least one industry player is bucking that trend. It focuses on a certain niche that is seeing strong demand -- and strong pricing. And that sets the stage for solid results in the quarters to come.
From gas to oil
By now, everyone knows about "fracking" (or hydraulic fracturing wells), which has been able to tap hard-to-reach shale formations. But a problem has emerged. Many fracked wells need some help when it comes time to harvest oil along with the gas. Sometimes heavy oil just wants to stay put and needs to be coaxed up to the surface by other means. That's where "artificial lift" comes in. This technique involves a range of other technologies (from the insertion of a mechanical pump inside the well to the injection of various gases into the well) to boost pressure.
At the risk of over-simplifying, fracking is used to tap a fresh well to get the natural gas to come to the surface. Artificial lift is used later on the same well when harder-to-tap oil is brought up. Because of this, artificial lift producers are more beholden to oil prices (which are still reasonably strong), and not the struggling natural gas market .
One of the leading providers of artificial lift systems: Weatherford Industries (NYSE: WFT ) . This company controls one-third of the domestic artificial lift market, and the technology is one of Weatherford's most profitable lines of business.
And it's about to get even more profitable.
As analysts at JP Morgan recently noted, "the artificial lift market is just now gaining pricing traction, as almost every completed oil well will require some type of artificial lift." We're talking about nearly 1,400 oil wells now in service, up more than 40% from a year ago.
The Downside Protection --> After falling more than 40% from the 52-week high , this is a very inexpensive stock, trading at just 7.5 times consensus 2013 profit forecasts of around $1.70 a share. Rival Schlumberger's 2013 multiple is around 12, while Baker Hughes (NYSE: BHI ) trades for about 9.5 times projected profits. Yet Weatherford is actually the best-positioned, thanks to that high degree of exposure to artificial lift technology. Schlumberger and Baker Hughes are more tightly focused on the moribund gas fracking market. Said another way, Weatherford's 7.5 times forward multiple is at a 45% discount to where it has historically traded at during the past five years.
Why is this stock so cheap? It's because Weatherford still derives more than half of its revenue (though less than half of its profits) from foreign markets. And outside the United States, energy producers have the upper hand on pricing, and the company's foreign profits are likely to be flat -- at best -- this year. Yet Weatherford's foreign results will have a silver lining. The company had entered into a series of poorly-priced contracts a few years ago that are now expiring, and management is convinced that contract renewals will yield much better profitability. This is one oil services company that will actually have a better story to tell in its foreign sales division.
Another boost: industry pricing pressures are most pronounced in offshore drilling projects off the coast of Africa and Brazil. Weatherford is mostly focused on land-based drilling, which has not seen the same level of pricing pressures.
Shares are also inexpensive because Weatherford delivered the embarrassing news this past winter that it didn't calculate its global tax liabilities accurately. That led some investors to think that the management team is "the gang that couldn't shoot straight," but Weatherford has more recently significantly beefed up its financial controls.
Upside Triggers --> This stock is a story about profit margins. In recent years, Weatherford had too much capacity, and its under-utilized gear and overhead created a drag on margins. As sales grow, expenses are likely to remain in check, allowing margins to expand. The expected strength in the high-margin artificial lift segment should help Weatherford post some of the most impressive margin gains in the industry in coming quarters. Weatherford's EBITDA margins were slightly below 20% in 2010 and just above 20% in 2011. This year, they are on track to hit 23%, and they could approach 25% by 2013. That helps explain why analysts see EPS ( earnings per share) growing at a steady 30% pace.
Action to Take --> Unlike most of my other picks in my $100,000 Real-Money Portfolio , I view Weatherford more as a trade than an investment. This isn't a play on a multi-year cycle, but instead on the rest of 2012 (and perhaps some of 2013) playing out more robustly than the dowdy share price indicates.
48 hours after you read this, I will be making a pair of moves in my portfolio. First, I will be taking advantage of the recent market weakness to sell 300 shares (or one-half) of my position in the Direxion Daily Small CapBear 3X Shares ETF (NYSE: TZA ) . At the same time, I will buy 500 shares (worth roughly $6,100 at current prices) of Weatherford Industries. I also suggest investors put in a stop loss at $10, though as I recently noted, I will not be deploying the stop-loss limits myself. Shares can be bought under $15.
All prices are as of Thursday, May 17.Security (Ticker)SharesInitial Purchase DateAvg.
Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,090 01/04/12 .44 .11,014 -11.7%Alcoa ( AA ) 500 01/06/12 .32 .45,226 -9.7%Cree ( CREE ) 300 01/12/12 .22 .01,003 29.1%Exide ( XIDE ) 1,500 02/01/12 .41 .32,480 N/A N/A-32.1%Citigroup ( C ) 300 02/06/12 .28 .84,052 -19.4%Ligand Pharma (LGND) 350 02/13/12 .87 .71,099 -21.2%Marathon Oil (MRO) 200 02/24/12 .01 .34,868 N/A-30.5%Direxion Small Cap (TZA) 600 02/29/12 .42 .24,344 N/A N/A20.6%Calgon Carbon(CCC) 400 03/14/12 .38 .30,320 N/A N/A-13.7%Echelon (ELON) 1,000 03/30/12 .51 .47,471 N/A-23.1%MDC Partners (MDCA) 500 04/09/12 .57 .60,800 N/A N/A-9.4%Freeport-McMoran (FCX) 200 04/24/12 .00 .45,489 N/A N/A-12.4%Zoltek (ZOLT) 600 05/11/12 .16 .31,986 N/A-9.4%Security Holdings,152$ Cash Holdings ,155Total Return since January 2012* ,307-10.7%* Individual security returns are shown as of the date each security was added to this portfolio. However, total returns for the portfolio and the S&P are listed since the portfolio was funded with 0,000 of real money on Jan. 4, 2012.
Visit this link to view a listing of all previously-closed 0,000 Real-Money Portfolio holdings.
-- David Sterman
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of TZA, MRO in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,090 01/04/12 .44 .11,014 -11.7%Alcoa ( AA ) 500 01/06/12 .32 .45,226 -9.7%Cree ( CREE ) 300 01/12/12 .22 .01,003 29.1%Exide ( XIDE ) 1,500 02/01/12 .41 .32,480 N/A N/A-32.1%Citigroup ( C ) 300 02/06/12 .28 .84,052 -19.4%Ligand Pharma (LGND) 350 02/13/12 .87 .71,099 -21.2%Marathon Oil (MRO) 200 02/24/12 .01 .34,868 N/A-30.5%Direxion Small Cap (TZA) 600 02/29/12 .42 .24,344 N/A N/A20.6%Calgon Carbon(CCC) 400 03/14/12 .38 .30,320 N/A N/A-13.7%Echelon (ELON) 1,000 03/30/12 .51 .47,471 N/A-23.1%MDC Partners (MDCA) 500 04/09/12 .57 .60,800 N/A N/A-9.4%Freeport-McMoran (FCX) 200 04/24/12 .00 .45,489 N/A N/A-12.4%Zoltek (ZOLT) 600 05/11/12 .16 .31,986 N/A-9.4%Security Holdings,152$ Cash Holdings ,155Total Return since January 2012* ,307-10.7%* Individual security returns are shown as of the date each security was added to this portfolio. In other countries, natural gas prices are surging, as demand rises in places that have de-commissioned nuclear power plants, such as Japan and Germany. Shares are also inexpensive because Weatherford delivered the embarrassing news this past winter that it didn't calculate its global tax liabilities accurately.
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Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,090 01/04/12 .44 .11,014 -11.7%Alcoa ( AA ) 500 01/06/12 .32 .45,226 -9.7%Cree ( CREE ) 300 01/12/12 .22 .01,003 29.1%Exide ( XIDE ) 1,500 02/01/12 .41 .32,480 N/A N/A-32.1%Citigroup ( C ) 300 02/06/12 .28 .84,052 -19.4%Ligand Pharma (LGND) 350 02/13/12 .87 .71,099 -21.2%Marathon Oil (MRO) 200 02/24/12 .01 .34,868 N/A-30.5%Direxion Small Cap (TZA) 600 02/29/12 .42 .24,344 N/A N/A20.6%Calgon Carbon(CCC) 400 03/14/12 .38 .30,320 N/A N/A-13.7%Echelon (ELON) 1,000 03/30/12 .51 .47,471 N/A-23.1%MDC Partners (MDCA) 500 04/09/12 .57 .60,800 N/A N/A-9.4%Freeport-McMoran (FCX) 200 04/24/12 .00 .45,489 N/A N/A-12.4%Zoltek (ZOLT) 600 05/11/12 .16 .31,986 N/A-9.4%Security Holdings,152$ Cash Holdings ,155Total Return since January 2012* ,307-10.7%* Individual security returns are shown as of the date each security was added to this portfolio. Rival Schlumberger's 2013 multiple is around 12, while Baker Hughes (NYSE: BHI ) trades for about 9.5 times projected profits. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. © Copyright 2001-2010 StreetAuthority, LLC.
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Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,090 01/04/12 .44 .11,014 -11.7%Alcoa ( AA ) 500 01/06/12 .32 .45,226 -9.7%Cree ( CREE ) 300 01/12/12 .22 .01,003 29.1%Exide ( XIDE ) 1,500 02/01/12 .41 .32,480 N/A N/A-32.1%Citigroup ( C ) 300 02/06/12 .28 .84,052 -19.4%Ligand Pharma (LGND) 350 02/13/12 .87 .71,099 -21.2%Marathon Oil (MRO) 200 02/24/12 .01 .34,868 N/A-30.5%Direxion Small Cap (TZA) 600 02/29/12 .42 .24,344 N/A N/A20.6%Calgon Carbon(CCC) 400 03/14/12 .38 .30,320 N/A N/A-13.7%Echelon (ELON) 1,000 03/30/12 .51 .47,471 N/A-23.1%MDC Partners (MDCA) 500 04/09/12 .57 .60,800 N/A N/A-9.4%Freeport-McMoran (FCX) 200 04/24/12 .00 .45,489 N/A N/A-12.4%Zoltek (ZOLT) 600 05/11/12 .16 .31,986 N/A-9.4%Security Holdings,152$ Cash Holdings ,155Total Return since January 2012* ,307-10.7%* Individual security returns are shown as of the date each security was added to this portfolio. Oil prices appear fairly firm while natural gas prices still remain near multi-year lows. Because of this, artificial lift producers are more beholden to oil prices (which are still reasonably strong), and not the struggling natural gas market .
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Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,090 01/04/12 .44 .11,014 -11.7%Alcoa ( AA ) 500 01/06/12 .32 .45,226 -9.7%Cree ( CREE ) 300 01/12/12 .22 .01,003 29.1%Exide ( XIDE ) 1,500 02/01/12 .41 .32,480 N/A N/A-32.1%Citigroup ( C ) 300 02/06/12 .28 .84,052 -19.4%Ligand Pharma (LGND) 350 02/13/12 .87 .71,099 -21.2%Marathon Oil (MRO) 200 02/24/12 .01 .34,868 N/A-30.5%Direxion Small Cap (TZA) 600 02/29/12 .42 .24,344 N/A N/A20.6%Calgon Carbon(CCC) 400 03/14/12 .38 .30,320 N/A N/A-13.7%Echelon (ELON) 1,000 03/30/12 .51 .47,471 N/A-23.1%MDC Partners (MDCA) 500 04/09/12 .57 .60,800 N/A N/A-9.4%Freeport-McMoran (FCX) 200 04/24/12 .00 .45,489 N/A N/A-12.4%Zoltek (ZOLT) 600 05/11/12 .16 .31,986 N/A-9.4%Security Holdings,152$ Cash Holdings ,155Total Return since January 2012* ,307-10.7%* Individual security returns are shown as of the date each security was added to this portfolio. Because of this, artificial lift producers are more beholden to oil prices (which are still reasonably strong), and not the struggling natural gas market . This company controls one-third of the domestic artificial lift market, and the technology is one of Weatherford's most profitable lines of business.
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1619.0
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2012-05-16 00:00:00 UTC
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After Hours Most Active for May 16, 2012 : STD, AAXJ, SLE, EBR, KFN, HLF, AA, CMCSA, CMCSK, QQQ, QCOM, MSFT
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AA
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https://www.nasdaq.com/articles/after-hours-most-active-may-16-2012-std-aaxj-sle-ebr-kfn-hlf-aa-cmcsa-cmcsk-qqq-qcom-msft
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up .26 to 2,561.82. The total After hours volume is currently 28,288,586 shares traded.
The following are the most active stocks for the after hours session :
Banco Santander, S.A. ( STD ) is +0.0103 at $5.68, with 12,028,868 shares traded., following a 52-week high recorded in today's regular session.
iShares MSCI All Country Asia ex Japan Index Fund ( AAXJ ) is +0.2152 at $51.45, with 8,419,257 shares traded. This represents a 16.21% increase from its 52 Week Low.
Sara Lee Corporation ( SLE ) is unchanged at $21.16, with 2,571,339 shares traded. Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2012. The consensus EPS forecast is $0.25. SLE's current last sale is 96.18% of the target price of $22.
Centrais Elc Braz Pfb B Elbras ( EBR ) is -0.0444 at $7.91, with 2,010,700 shares traded. EBR's current last sale is 40.54% of the target price of $19.5.
KKR Financial Holdings LLC ( KFN ) is -0.06 at $8.17, with 1,467,000 shares traded. As reported by Zacks, the current mean recommendation for KFN is in the "buy range".
Herbalife LTD. ( HLF ) is +2.99 at $52.50, with 1,336,700 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2012. The consensus EPS forecast is $0.96. As reported by Zacks, the current mean recommendation for HLF is in the "buy range".
Alcoa Inc. ( AA ) is +0.02 at $8.51, with 1,322,919 shares traded. AA's current last sale is 76.49% of the target price of $11.125.
Comcast Corporation ( CMCSA ) is +0.1253 at $28.98, with 959,416 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2012. The consensus EPS forecast is $0.49. As reported by Zacks, the current mean recommendation for CMCSA is in the "buy range".
Comcast Corporation ( CMCSK ) is +0.1194 at $28.57, with 648,702 shares traded. As reported by Zacks, the current mean recommendation for CMCSK is in the "strong buy range".
PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.08 at $62.86, with 407,315 shares traded. This represents a 25.9% increase from its 52 Week Low.
QUALCOMM Incorporated ( QCOM ) is -0.01 at $59.10, with 399,052 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013. The consensus EPS forecast is $0.99. As reported by Zacks, the current mean recommendation for QCOM is in the "buy range".
Microsoft Corporation ( MSFT ) is +0.0482 at $29.95, with 340,148 shares traded. Over the last four weeks they have had 16 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2012. The consensus EPS forecast is $0.66. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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iShares MSCI All Country Asia ex Japan Index Fund ( AAXJ ) is +0.2152 at $51.45, with 8,419,257 shares traded. Alcoa Inc. ( AA ) is +0.02 at $8.51, with 1,322,919 shares traded. AA's current last sale is 76.49% of the target price of $11.125.
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iShares MSCI All Country Asia ex Japan Index Fund ( AAXJ ) is +0.2152 at $51.45, with 8,419,257 shares traded. Alcoa Inc. ( AA ) is +0.02 at $8.51, with 1,322,919 shares traded. AA's current last sale is 76.49% of the target price of $11.125.
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iShares MSCI All Country Asia ex Japan Index Fund ( AAXJ ) is +0.2152 at $51.45, with 8,419,257 shares traded. Alcoa Inc. ( AA ) is +0.02 at $8.51, with 1,322,919 shares traded. AA's current last sale is 76.49% of the target price of $11.125.
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iShares MSCI All Country Asia ex Japan Index Fund ( AAXJ ) is +0.2152 at $51.45, with 8,419,257 shares traded. Alcoa Inc. ( AA ) is +0.02 at $8.51, with 1,322,919 shares traded. AA's current last sale is 76.49% of the target price of $11.125.
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1620.0
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2012-05-14 00:00:00 UTC
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Largest option buying in equities so far
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AA
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https://www.nasdaq.com/articles/largest-option-buying-equities-so-far-2012-05-14
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nan
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nan
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Nearing the halfway mark in today's session, here are the individual equity names with the most call and put buying on optionMONSTER's ActionTracker data system.
Walt Disney (DIS): More than 10,000 July 49 calls were bought, mostly for $0.35, as investors look for upside in the share price. DIS fell 0.61 percent to $45.28.
Goldman Sachs (GS): An investor bought about 10,000 May 110 puts for about $10 and sold a matching number of June 110 puts for $11.30, seeking more time for a losing market-neutral trade to turn around. GS fell 1.75 percent to $100.35.
Hewlett-Packard (HPQ): A block of 6,800 June 24 calls were bought for $0.53 as investors look for upside in the share price. HPQ fell 0.91 percent to $22.94.
Alcoa (AA): A block of 10,000 January 9 puts were bought for $1.07 as investors position for a drop in the stock price. AA fell 0.33 percent to $9.03.
Arcos Dorados (ARCO): Investors bought the November 12.50 puts and sold the November 17.50 calls. Volume was below open interest at both strikes, but the activity reflects a bearish outlook for the shares. ARCO fell 2.35 percent to $13.73.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa (AA): A block of 10,000 January 9 puts were bought for $1.07 as investors position for a drop in the stock price. AA fell 0.33 percent to $9.03. Nearing the halfway mark in today's session, here are the individual equity names with the most call and put buying on optionMONSTER's ActionTracker data system.
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Alcoa (AA): A block of 10,000 January 9 puts were bought for $1.07 as investors position for a drop in the stock price. AA fell 0.33 percent to $9.03. Hewlett-Packard (HPQ): A block of 6,800 June 24 calls were bought for $0.53 as investors look for upside in the share price.
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Alcoa (AA): A block of 10,000 January 9 puts were bought for $1.07 as investors position for a drop in the stock price. AA fell 0.33 percent to $9.03. Goldman Sachs (GS): An investor bought about 10,000 May 110 puts for about $10 and sold a matching number of June 110 puts for $11.30, seeking more time for a losing market-neutral trade to turn around.
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Alcoa (AA): A block of 10,000 January 9 puts were bought for $1.07 as investors position for a drop in the stock price. AA fell 0.33 percent to $9.03. DIS fell 0.61 percent to $45.28.
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1621.0
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2012-05-09 00:00:00 UTC
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A Company I Love Can Now be Had at the Right Price
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AA
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https://www.nasdaq.com/articles/company-i-love-can-now-be-had-right-price-2012-05-09
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nan
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nan
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As Aesop once noted, patience is a virtue, and to wait will never hurt you. I had to remind myself of that as a stock I once planned to put in my $100,000 Real-Money Portfolio ran away from me.
In early January, I laid out the investment case behind carbon-fiber maker Zoltek (Nasdaq: ZOLT ) , which you can read about here . At the time,shares traded below $8, but they moved up nearly 8% by the time my self-induced 48-hour buying embargo had been lifted (this gives you a chance to get in on the trade ahead of me). Frankly, my decision to hold off buying at that time caused some distress. Just a few weeks later, shares soared to $13 on the heels of a solidquarterly report , which I discussed here .
At that point, I could only wait and see if shares returned to levels where I consider them to have solid downside support. Well, my patience paid off, and I've gotten a second chance to add this stock to my portfolio.
From risk-on to risk-off
That bipolar stock chart has more to do with investors' current mood right now, and not what is happening at this company. At the start of the year, investors were flocking to companies like Zoltek that had robust growth prospects. This was known as a "risk-on" environment, as investors actually sought out riskier stocks. These days, they are in a different mood. Companies with a strong set of growth prospects are being shunned if they aren't delivering the goods right now. So this company, which delivered a great fourth quarter but merely a good first quarter, is now being seen in a very different light.
Here's what I wrote back in January: "Zoltek looks to be moderately profitable in fiscal (September) 2012, perhaps earning around $0.25 a share. Yet with further sales gains,EPS (earnings per share) could grow sharply, perhaps reaching $1 a share by fiscal 2014." That's still the case, and a stock price below $10 is simply too hard to pass up.
What did fiscal second quarter numbers tell us? Zoltek will continue to deliver erratic results on the way to a higher growth plane. Second-quarter EPS of $0.10 was roughly in-line with forecasts, after first-quarter (December) EPS of $0.28 had blown past estimates of a nickel in profits. The sequential pullback in earnings is solely a function of seasonality. In fact, Zoltek would have beaten EPS forecasts by about 50% were it not for the impact of foreign exchange losses.
Investors would have looked past the numbers if Zoltek offered up robust second-quarter guidance. But management only discusses long-term targets and not short-term ones. In fact, analysts expect merely decent results in the current quarter. Sales are expected to rise just a bit to $49 million (from $47 million in the first quarter) and EPS should be around $0.15. Sales should exceed $50 million by the fiscal fourth quarter, setting the stage for EPS of nearly $0.20. Still, that must be seen as a comedown for investors that saw first-quarter EPS of $0.28 just a few months back.
Net/net, look for Zoltek to enter fiscal 2013 with an annualizedprofit run rate exceeding $0.70 a share. With just a bit better utilization of the company's manufacturingoverhead in fiscal 2014, per share profits, as I've noted, could exceed $1.
The Downside Protection --> Shares have rarely traded below tangiblebook value , and they are back near that level again (That figure stood at $8.47 at the end of March, and should keep rising as long as Zoltek remains profitable.)
Upside Triggers --> One of the challenges for this company is that it has myriad growth drivers, but we don't know when they will all fall into place at the same time. For example, the company has sought to do more business with various wind turbine manufacturers, to reduce dependence on Spanish giant Vestas, which is Zoltek's top customer. Wind-based revenue outside of Vestas now accounts for 20% of that segment's sales -- up from nothing a few years ago -- but Zoltek must keep making headway in this area. Thankfully, Vestas (more than 40% of sales in the first half of fiscal 2012) has a full order book and has given signs of solid order flows to Zoltek in coming quarters.
In the airplane segment, results rise and fall based on how muchinventory key customers are carrying. The inventory build-up and build-downs explains why quarterly results are seemingly erratic. And in the auto segment, Zoltek is just now getting going, having recently signed a business development agreement with auto parts maker Magna International (NYSE: MGA ) . All of these drivers should fuel solid top andbottom line growth during the next few years, but the ride will surely be bumpy.
Action to Take --> I will buy 600 shares (or roughly $5,500 worth) of Zoltek roughly 48 hours after you read this. Shares can be bought under $11.
All prices are as of Tuesday, May 8.Security (Ticker)SharesInitial Purchase DateAvg.
Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,090 01/04/12 .44 .61,565 -7.3%Alcoa ( AA ) 500 01/06/12 .32 .21,605 -1.5%Cree ( CREE ) 300 01/12/12 .22 .30,690 38.9%Exide ( XIDE ) 1,500 02/01/12 .41 .74,110 N/A N/A-19.9%Citigroup ( C ) 300 02/06/12 .28 .32,396 -6.0%Ligand Pharma (LGND) 350 02/13/12 .87 .72,452 -14.4%Marathon Oil (MRO) 200 02/24/12 .01 .17,234 N/A-25.3%Direxion Small Cap (TZA) 600 02/29/12 .42 .66,790 N/A N/A6.6%Calgon Carbon(CCC) 400 03/14/12 .38 .32,728 N/A N/A-7.1%Echelon (ELON) 1,000 03/30/12 .51 .27,270 N/A-5.4%MDC Partners (MDCA) 500 04/09/12 .57 .95,975 N/A N/A-6.1%Freeport-McMoran (FCX) 200 04/24/12 .00 .62,124 N/A N/A-3.9%Security Holdings,939$ Cash Holdings ,660Total Return since January 2012* ,599-5.4%* Individual security returns are shown as of the date each security was added to this portfolio. However, total returns for the portfolio and the S&P are listed since the portfolio was funded with 0,000 of real money on Jan. 4, 2012.
Visit this link to view a listing of all previously-closed positions.
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC does not hold positions in any securities mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,090 01/04/12 .44 .61,565 -7.3%Alcoa ( AA ) 500 01/06/12 .32 .21,605 -1.5%Cree ( CREE ) 300 01/12/12 .22 .30,690 38.9%Exide ( XIDE ) 1,500 02/01/12 .41 .74,110 N/A N/A-19.9%Citigroup ( C ) 300 02/06/12 .28 .32,396 -6.0%Ligand Pharma (LGND) 350 02/13/12 .87 .72,452 -14.4%Marathon Oil (MRO) 200 02/24/12 .01 .17,234 N/A-25.3%Direxion Small Cap (TZA) 600 02/29/12 .42 .66,790 N/A N/A6.6%Calgon Carbon(CCC) 400 03/14/12 .38 .32,728 N/A N/A-7.1%Echelon (ELON) 1,000 03/30/12 .51 .27,270 N/A-5.4%MDC Partners (MDCA) 500 04/09/12 .57 .95,975 N/A N/A-6.1%Freeport-McMoran (FCX) 200 04/24/12 .00 .62,124 N/A N/A-3.9%Security Holdings,939$ Cash Holdings ,660Total Return since January 2012* ,599-5.4%* Individual security returns are shown as of the date each security was added to this portfolio. The Downside Protection --> Shares have rarely traded below tangiblebook value , and they are back near that level again (That figure stood at $8.47 at the end of March, and should keep rising as long as Zoltek remains profitable.) For example, the company has sought to do more business with various wind turbine manufacturers, to reduce dependence on Spanish giant Vestas, which is Zoltek's top customer.
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Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,090 01/04/12 .44 .61,565 -7.3%Alcoa ( AA ) 500 01/06/12 .32 .21,605 -1.5%Cree ( CREE ) 300 01/12/12 .22 .30,690 38.9%Exide ( XIDE ) 1,500 02/01/12 .41 .74,110 N/A N/A-19.9%Citigroup ( C ) 300 02/06/12 .28 .32,396 -6.0%Ligand Pharma (LGND) 350 02/13/12 .87 .72,452 -14.4%Marathon Oil (MRO) 200 02/24/12 .01 .17,234 N/A-25.3%Direxion Small Cap (TZA) 600 02/29/12 .42 .66,790 N/A N/A6.6%Calgon Carbon(CCC) 400 03/14/12 .38 .32,728 N/A N/A-7.1%Echelon (ELON) 1,000 03/30/12 .51 .27,270 N/A-5.4%MDC Partners (MDCA) 500 04/09/12 .57 .95,975 N/A N/A-6.1%Freeport-McMoran (FCX) 200 04/24/12 .00 .62,124 N/A N/A-3.9%Security Holdings,939$ Cash Holdings ,660Total Return since January 2012* ,599-5.4%* Individual security returns are shown as of the date each security was added to this portfolio. Sales should exceed $50 million by the fiscal fourth quarter, setting the stage for EPS of nearly $0.20. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. © Copyright 2001-2010 StreetAuthority, LLC.
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Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,090 01/04/12 .44 .61,565 -7.3%Alcoa ( AA ) 500 01/06/12 .32 .21,605 -1.5%Cree ( CREE ) 300 01/12/12 .22 .30,690 38.9%Exide ( XIDE ) 1,500 02/01/12 .41 .74,110 N/A N/A-19.9%Citigroup ( C ) 300 02/06/12 .28 .32,396 -6.0%Ligand Pharma (LGND) 350 02/13/12 .87 .72,452 -14.4%Marathon Oil (MRO) 200 02/24/12 .01 .17,234 N/A-25.3%Direxion Small Cap (TZA) 600 02/29/12 .42 .66,790 N/A N/A6.6%Calgon Carbon(CCC) 400 03/14/12 .38 .32,728 N/A N/A-7.1%Echelon (ELON) 1,000 03/30/12 .51 .27,270 N/A-5.4%MDC Partners (MDCA) 500 04/09/12 .57 .95,975 N/A N/A-6.1%Freeport-McMoran (FCX) 200 04/24/12 .00 .62,124 N/A N/A-3.9%Security Holdings,939$ Cash Holdings ,660Total Return since January 2012* ,599-5.4%* Individual security returns are shown as of the date each security was added to this portfolio. Here's what I wrote back in January: "Zoltek looks to be moderately profitable in fiscal (September) 2012, perhaps earning around $0.25 a share. Yet with further sales gains,EPS (earnings per share) could grow sharply, perhaps reaching $1 a share by fiscal 2014."
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Purchase PriceRecent PriceCurrent ValueBuy UnderTargetTotal ReturnFord Motor ( F ) 1,090 01/04/12 .44 .61,565 -7.3%Alcoa ( AA ) 500 01/06/12 .32 .21,605 -1.5%Cree ( CREE ) 300 01/12/12 .22 .30,690 38.9%Exide ( XIDE ) 1,500 02/01/12 .41 .74,110 N/A N/A-19.9%Citigroup ( C ) 300 02/06/12 .28 .32,396 -6.0%Ligand Pharma (LGND) 350 02/13/12 .87 .72,452 -14.4%Marathon Oil (MRO) 200 02/24/12 .01 .17,234 N/A-25.3%Direxion Small Cap (TZA) 600 02/29/12 .42 .66,790 N/A N/A6.6%Calgon Carbon(CCC) 400 03/14/12 .38 .32,728 N/A N/A-7.1%Echelon (ELON) 1,000 03/30/12 .51 .27,270 N/A-5.4%MDC Partners (MDCA) 500 04/09/12 .57 .95,975 N/A N/A-6.1%Freeport-McMoran (FCX) 200 04/24/12 .00 .62,124 N/A N/A-3.9%Security Holdings,939$ Cash Holdings ,660Total Return since January 2012* ,599-5.4%* Individual security returns are shown as of the date each security was added to this portfolio. At the start of the year, investors were flocking to companies like Zoltek that had robust growth prospects. Yet with further sales gains,EPS (earnings per share) could grow sharply, perhaps reaching $1 a share by fiscal 2014."
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1622.0
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2012-05-03 00:00:00 UTC
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Stock Market News for May 3, 2012 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-may-3-2012-market-news-2012-05-03
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nan
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nan
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Lower-than-expected private sector hiring spooked investors and dragged the benchmarks lower yesterday. In addition, new orders for U.S. factory goods declined by its highest margin in three years and factory activity contracted yet again in the Euro zone.
The Dow Jones Industrial Average (DJI) slipped 0.1% to settle at 13,268.57. The Standard & Poor 500 (S&P 500) declined by 0.3% and closed yesterday's trading session at 1,402.31. However, the tech-laden Nasdaq Composite Index managed to end in the green, gaining 0.3% to finish at 3,059.85. The fear-gauge CBOE Volatility Index (VIX) edged up 1.7% to settle at 16.9. Consolidated volumes on the New York Stock Exchange, the Nasdaq and the American Stock Index were 6.4 billion shares, lower than the daily average of roughly 6.76 billion. For every three stocks that moved down on the NYSE, only a couple of stocks could close in the green.
This decline comes just a day after the Dow reached its highest point since late 2007. Among the 30 Dow components, only 14 managed to end in positive territory but none managed robust gains. Intel Corporation (NASDAQ: INTC ) led the advancers with modest gains of 0.8% followed by The Home Depot, Inc. (NYSE: HD ), Procter & Gamble Co. (NYSE: PG ), and Caterpillar Inc. (NYSE: CAT ), which gained 0.7%, 0.6% and 0.5%, respectively. On the other hand, the declines were much larger and included the likes of Alcoa, Inc. (NYSE: AA ), Bank of America Corporation (NYSE: BAC ), Chevron Corporation (NYSE: CVX ) and JPMorgan Chase & Co. (NYSE: JPM ) and they plunged 2.4%, 1.8%, 1.2% and 1.4%, respectively.
While encouraging economic data helped benchmarks to soar on Tuesday, Wednesday's declines were sparked off by concerns over dismal reports. The Automatic Data Processing, Inc.'s (NASDAQ: ADP ) National Employment Report stated that U.S. nonfarm private business sector added only 119,000 jobs in April, far lower than expectations of an addition of 177,000 jobs. According to the report: "Employment in the private, service-providing sector increased 123,000 in April, after rising 158,000 in March. Employment in the private, goods-producing sector declined 4,000 jobs in April. Manufacturing employment dropped 5,000 jobs, the first loss since September of last year".
Meanwhile, jobs numbers for March was modestly revised downward from 209,000 to 201,000. Market expectations took a downturn and investors expect nonfarm payroll data to show additions of 125,000 to 150,000 jobs as against 170,000 job additions estimated by Reuters.
Markets were also jolted by data from across the Atlantic, which painted dismal picture of the labor market and factory activity. Data suggested that unemployment in the Eurozone has touched its highest level in 15 years, soaring to 10.9% in March. In 1997, the unemployment rate in the region had hovered around 10.95% for the months of February, March and April. Separately, the Manufacturing Purchasing Managers' Index (PMI) declined to 45.9 in April from March's reading of 47.7. The index has now reached its lowest point since June 2009.
Coming back to the domestic front, new orders for U.S. factory goods declined by its highest margin in three years. According to the U.S. Department of Commerce, new orders for manufactured goods in March declined 1.5% to $460.5 billion. This drop was higher than consensus estimates of a decline of 1.6%, but reversed February's increase of 1.1%.
ALCOA INC (AA): Free Stock Analysis Report
AUTOMATIC DATA (ADP): Free Stock Analysis Report
BANK OF AMER CP (BAC): Free Stock Analysis Report
CATERPILLAR INC (CAT): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
HOME DEPOT (HD): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
PROCTER & GAMBL (PG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the other hand, the declines were much larger and included the likes of Alcoa, Inc. (NYSE: AA ), Bank of America Corporation (NYSE: BAC ), Chevron Corporation (NYSE: CVX ) and JPMorgan Chase & Co. (NYSE: JPM ) and they plunged 2.4%, 1.8%, 1.2% and 1.4%, respectively. ALCOA INC (AA): Free Stock Analysis Report AUTOMATIC DATA (ADP): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report HOME DEPOT (HD): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report PROCTER & GAMBL (PG): Free Stock Analysis Report To read this article on Zacks.com click here. Lower-than-expected private sector hiring spooked investors and dragged the benchmarks lower yesterday.
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On the other hand, the declines were much larger and included the likes of Alcoa, Inc. (NYSE: AA ), Bank of America Corporation (NYSE: BAC ), Chevron Corporation (NYSE: CVX ) and JPMorgan Chase & Co. (NYSE: JPM ) and they plunged 2.4%, 1.8%, 1.2% and 1.4%, respectively. ALCOA INC (AA): Free Stock Analysis Report AUTOMATIC DATA (ADP): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report HOME DEPOT (HD): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report PROCTER & GAMBL (PG): Free Stock Analysis Report To read this article on Zacks.com click here. Intel Corporation (NASDAQ: INTC ) led the advancers with modest gains of 0.8% followed by The Home Depot, Inc. (NYSE: HD ), Procter & Gamble Co. (NYSE: PG ), and Caterpillar Inc. (NYSE: CAT ), which gained 0.7%, 0.6% and 0.5%, respectively.
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On the other hand, the declines were much larger and included the likes of Alcoa, Inc. (NYSE: AA ), Bank of America Corporation (NYSE: BAC ), Chevron Corporation (NYSE: CVX ) and JPMorgan Chase & Co. (NYSE: JPM ) and they plunged 2.4%, 1.8%, 1.2% and 1.4%, respectively. ALCOA INC (AA): Free Stock Analysis Report AUTOMATIC DATA (ADP): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report HOME DEPOT (HD): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report PROCTER & GAMBL (PG): Free Stock Analysis Report To read this article on Zacks.com click here. The Automatic Data Processing, Inc.'s (NASDAQ: ADP ) National Employment Report stated that U.S. nonfarm private business sector added only 119,000 jobs in April, far lower than expectations of an addition of 177,000 jobs.
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On the other hand, the declines were much larger and included the likes of Alcoa, Inc. (NYSE: AA ), Bank of America Corporation (NYSE: BAC ), Chevron Corporation (NYSE: CVX ) and JPMorgan Chase & Co. (NYSE: JPM ) and they plunged 2.4%, 1.8%, 1.2% and 1.4%, respectively. ALCOA INC (AA): Free Stock Analysis Report AUTOMATIC DATA (ADP): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report HOME DEPOT (HD): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report PROCTER & GAMBL (PG): Free Stock Analysis Report To read this article on Zacks.com click here. For every three stocks that moved down on the NYSE, only a couple of stocks could close in the green.
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1623.0
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2012-05-02 00:00:00 UTC
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Stock Market News for May 2, 2012 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-may-2-2012-market-news-2012-05-02
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nan
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nan
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Markets started May on a winning note following a report which stated that manufacturing had expanded at its fastest pace since June last year. Alongside, the data also suggested growth in hiring, orders and production. These reports enabled the Dow to touch its highest level since late 2007 and all of the 10 industry groups of the S&P 500 ended in the green.
The Dow Jones Industrial Average (DJI) gained 0.5% to settle the day at 13,279.32. The Standard & Poor 500 (S&P 500) jumped 0.6% to finish Tuesday's trading session at 1,405.82. The tech-laden Nasdaq Composite Index edged up 0.1% to close at 3,050.44. The fear-gauge CBOE Volatility Index (VIX) decreased 3.2% to settle at 16.60. For 62% of the advancing stocks on the NYSE, 34% stocks traded lower. The remaining stocks were left unchanged. Total volume on the NYSE was 3.8 billion shares.
The Dow has now recorded its highest level since December 28, 2007. The index was hovering around its key level of 13, 000 and has now extended its gains over this level by precisely 279.32 points. Yesterday, 22 of the 30 Dow components ended in positive territory with Alcoa, Inc. (NYSE: AA ), Bank of America Corporation (NYSE: BAC ), Chevron Corporation (NYSE: CVX ), Walt Disney Co. (NYSE: DIS ), Hewlett-Packard Company (NYSE: HPQ ) and JPMorgan Chase & Co. (NYSE: JPM ) gaining 2.5%, 2.5%, 1.6%, 1.6%, 1.7% and 1.9%, respectively. Moreover, losses among the eight components were minimal with Cisco Systems, Inc.'s (NASDAQ: CSCO ) 0.9% decline being the largest.
Stocks in the S&P 500 also chalked up gains and none of the 10 industry groups in the S&P had to settle in the negative zone. Energy and financials led the 10 industry groups with Energy Select Sector SPDR (XLE) jumping 1.4% and Financial Select Sector SPDR (XLF) gaining 1.0%. Among energy stocks, Exxon Mobil Corporation (NYSE: XOM ), Chevron Corporation (NYSE: CVX ), ConocoPhillips (NYSE: COP ) and Marathon Oil Corporation (NYSE: MRO ) jumped 0.8%, 1.6%, 3.5% and 2.9%, respectively. Another bellwether, Chesapeake Energy Corporation (NYSE: CHK ) soared 6.3% after it fired its chairman Aubrey McClendon, who was blamed for a controversial plan which enabled him to buy stakes in every well the company drilled.
As for the financial bellwethers, American Express Company (NYSE: AXP ), Morgan Stanley (NYSE: MS ) and Wells Fargo & Company (NYSE: WFC ) joined the list of Bank of America and JP Morgan, as mentioned earlier, and they gained 1.3%, 1.2% and 2.0%, respectively.
Benchmarks did not have a healthy run in April. The Dow moved into the green with marginal gains of 1.5 points in April. On the other hand, the S&P 500 dropped 0.8% to reverse its four-month winning streak and end in the negative zone in April. The Nasdaq too finished in the negative zone, dropping 1.5% for the month.
In contrast, benchmarks have started this month on a winning note which was attributable to the manufacturing data released by the Institute for Supply Management. The PMI increased from 53.4% in March to 54.8% in April. This was the 33 rd straight month of gains for the manufacturing sector with 16 of the 18 industries recording overall growth. The increase was also well ahead of consensus estimates of a reading of 52.9%. The PMI accounted for the 35 th consecutive month of growth in the overall economy. Bradley J. Holcomb, chairman of Institute for Supply Management Manufacturing Business Survey Committee said: "The past relationship between the PMI and the overall economy indicates that the average PMI for January through April (53.7 percent) corresponds to a 3.8 percent increase in real gross domestic product (GDP). In addition, if the PMI for April (54.8 percent) is annualized, it corresponds to a 4.1 percent increase in real GDP annually".
Additionally, New Orders and the Production and Employment Indexes also increased. The New Orders Index increased by 3.7 percentage points to 58.2 percent in April from 54.5% in March. The Production Index gained 2.7 percentage points, reaching 61% in April, up from March's reading of 58.3%. In addition, the Employment Index expanded for the 31 st consecutive month, increasing by 1.2 percentage points from the 56.1% recorded in March to 57.3% in April.
ALCOA INC (AA): Free Stock Analysis Report
AMER EXPRESS CO (AXP): Free Stock Analysis Report
BANK OF AMER CP (BAC): Free Stock Analysis Report
CHESAPEAKE ENGY (CHK): Free Stock Analysis Report
CONOCOPHILLIPS (COP): Free Stock Analysis Report
CISCO SYSTEMS (CSCO): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
DISNEY WALT (DIS): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
MARATHON OIL CP (MRO): Free Stock Analysis Report
MORGAN STANLEY (MS): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Yesterday, 22 of the 30 Dow components ended in positive territory with Alcoa, Inc. (NYSE: AA ), Bank of America Corporation (NYSE: BAC ), Chevron Corporation (NYSE: CVX ), Walt Disney Co. (NYSE: DIS ), Hewlett-Packard Company (NYSE: HPQ ) and JPMorgan Chase & Co. (NYSE: JPM ) gaining 2.5%, 2.5%, 1.6%, 1.6%, 1.7% and 1.9%, respectively. ALCOA INC (AA): Free Stock Analysis Report AMER EXPRESS CO (AXP): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CHESAPEAKE ENGY (CHK): Free Stock Analysis Report CONOCOPHILLIPS (COP): Free Stock Analysis Report CISCO SYSTEMS (CSCO): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report DISNEY WALT (DIS): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MARATHON OIL CP (MRO): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. Another bellwether, Chesapeake Energy Corporation (NYSE: CHK ) soared 6.3% after it fired its chairman Aubrey McClendon, who was blamed for a controversial plan which enabled him to buy stakes in every well the company drilled.
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Yesterday, 22 of the 30 Dow components ended in positive territory with Alcoa, Inc. (NYSE: AA ), Bank of America Corporation (NYSE: BAC ), Chevron Corporation (NYSE: CVX ), Walt Disney Co. (NYSE: DIS ), Hewlett-Packard Company (NYSE: HPQ ) and JPMorgan Chase & Co. (NYSE: JPM ) gaining 2.5%, 2.5%, 1.6%, 1.6%, 1.7% and 1.9%, respectively. ALCOA INC (AA): Free Stock Analysis Report AMER EXPRESS CO (AXP): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CHESAPEAKE ENGY (CHK): Free Stock Analysis Report CONOCOPHILLIPS (COP): Free Stock Analysis Report CISCO SYSTEMS (CSCO): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report DISNEY WALT (DIS): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MARATHON OIL CP (MRO): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. Among energy stocks, Exxon Mobil Corporation (NYSE: XOM ), Chevron Corporation (NYSE: CVX ), ConocoPhillips (NYSE: COP ) and Marathon Oil Corporation (NYSE: MRO ) jumped 0.8%, 1.6%, 3.5% and 2.9%, respectively.
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Yesterday, 22 of the 30 Dow components ended in positive territory with Alcoa, Inc. (NYSE: AA ), Bank of America Corporation (NYSE: BAC ), Chevron Corporation (NYSE: CVX ), Walt Disney Co. (NYSE: DIS ), Hewlett-Packard Company (NYSE: HPQ ) and JPMorgan Chase & Co. (NYSE: JPM ) gaining 2.5%, 2.5%, 1.6%, 1.6%, 1.7% and 1.9%, respectively. ALCOA INC (AA): Free Stock Analysis Report AMER EXPRESS CO (AXP): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CHESAPEAKE ENGY (CHK): Free Stock Analysis Report CONOCOPHILLIPS (COP): Free Stock Analysis Report CISCO SYSTEMS (CSCO): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report DISNEY WALT (DIS): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MARATHON OIL CP (MRO): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. Bradley J. Holcomb, chairman of Institute for Supply Management Manufacturing Business Survey Committee said: "The past relationship between the PMI and the overall economy indicates that the average PMI for January through April (53.7 percent) corresponds to a 3.8 percent increase in real gross domestic product (GDP).
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Yesterday, 22 of the 30 Dow components ended in positive territory with Alcoa, Inc. (NYSE: AA ), Bank of America Corporation (NYSE: BAC ), Chevron Corporation (NYSE: CVX ), Walt Disney Co. (NYSE: DIS ), Hewlett-Packard Company (NYSE: HPQ ) and JPMorgan Chase & Co. (NYSE: JPM ) gaining 2.5%, 2.5%, 1.6%, 1.6%, 1.7% and 1.9%, respectively. ALCOA INC (AA): Free Stock Analysis Report AMER EXPRESS CO (AXP): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CHESAPEAKE ENGY (CHK): Free Stock Analysis Report CONOCOPHILLIPS (COP): Free Stock Analysis Report CISCO SYSTEMS (CSCO): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report DISNEY WALT (DIS): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MARATHON OIL CP (MRO): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks in the S&P 500 also chalked up gains and none of the 10 industry groups in the S&P had to settle in the negative zone.
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1624.0
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2012-05-02 00:00:00 UTC
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SPX 1,400 Stays Put; Investor Sentiment on the Rise
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AA
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https://www.nasdaq.com/articles/spx-1400-stays-put-investor-sentiment-rise-2012-05-02
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nan
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nan
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At its session low, the Dow Jones Industrial Average (DJI) was off some 87 points. "But in the end, it was nice to see that the buyers stepped up and the market finished well off its lows," reflected Senior Technical Strategist Ryan Detrick. "Volume was light, and I'd expect more of that tomorrow as everyone gets ready for Friday's jobs report."
Click through to see what else was on our radar today:
See why Senior Equity Analyst Joe Bell is excited about regional banks and homebuilders, but turned off by big banks .
"Sell in May and go away"? Quantitative Analyst Chris Prybal researched an old market adage for the Dow.
Optimism was on the rise last week, according to the latest investor sentiment survey.
Plus, is it time to short the iShares Russell 2000 Index Fund ( IWM ) ?
And now, a look at the numbers...
The Dow Jones Industrial Average (DJI - 13,268.73) fell as low as the 13,192.21 mark, but was able to pare some of its losses and end with a deficit of just 10.8 points, or 0.08%. Just over half of Dow's 30 components finished lower, as Alcoa ( AA ) led the 16 laggards with a 2.4% slide. On the other hand, Intel ( INTC ) and Home Depot ( HD ) paced the winning blue chips with gains of 0.8% each.
The S&P 500 Index (SPX - 1,402.31) held its footing above 1,400, but ended the day with a 3.5-point, or 0.3%, decline. Meanwhile, the Nasdaq Composite (COMP - 3,059.85) climbed higher by 9.4 points, or 0.3%, turning in the best performance of its fellow benchmarks.
The CBOE Market Volatility Index (VIX - 16.88) pulled back from its intraday peak of 17.63, but added 1.7% by the time the dust settled. The VIX reclaimed its seat atop its 40-day moving average.
Newsmakers...
Private-sector employers added 119,000 jobs in April, according to payroll giant ADP . The report fell short of expectations, which called for an increase of 175,000.
Factory orders tumbled by 1.5% in March to $460.46 billion, said the Commerce Department , marking the steepest monthly decline since January 2009. However, the sizable drop arrived right in line with the consensus estimate.
Today's highlight : "Today's talk was all about the weak ADP numbers," said Detrick. "There's no doubt we've seen some weakening on the jobs front over the past month, and this is further confirmation. Still, this could just be a small blip on the radar, which makes Friday's monthly jobs number all that much more important."
Turning to today's major market stories...
Chris Prybal checked out the Dow's monthly returns to see if you should really "sell in May."
There is a potential head-and-shoulders formation taking shape on the iShares Russell 2000 Index Fund ( IWM ).
This week's Investors Intelligence (II) survey showed a rise in bullish sentiment.
Joe Bell highlighted five sectors that could make waves in the current market.
Salesforce.com ( CRM ) and Lorillard (LO) rocketed to new all-time highs in April.
Front-month put volume soared ahead of Green Mountain Coffee Roasters' (GMCR) earnings report.
Last night's quarterly results from True Religion Apparel (TRLG) and Cavium (CAVM) spawned dissimilar brokerage notes.
New highs and new lows: TripAdvisor (TRIP) and First Solar (FSLR) were among the standouts in today's session.
Ryan Detrick explained why increased call buying on the VIX can be a boon for stocks.
For today's activity in commodities, options, and more, head to page 2.
Oil futures tumbled lower today, as the commodity took a hit on data showing that private-sector jobs grew at their slowest pace in seven months. A larger-than-expected increase in domestic crude inventories -- which hit their highest level since September 1990 -- also weighed on black gold. By the close, June-dated crude lopped off 94 cents, or 0.9%, to land at $105.22 a barrel.
Similarly, gold futures tallied their third straight loss, as a stronger dollar held the precious metal in negative territory all day. Gold for June delivery dropped $8.40, or 0.5%, to settle at $1,654 an ounce.
Levels to Watch in Trading :
Dow Jones Industrial Average (DJI - 13,268.73) - support at 11,500; resistance at 14,000
S&P 500 Index (SPX - 1,402.31) - support at 1,100; resistance at 1,500
Nasdaq Composite (COMP - 3,059.85) - support at 2,400; resistance at 3,400
For today's notable annual highs and lows, click here .
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Just over half of Dow's 30 components finished lower, as Alcoa ( AA ) led the 16 laggards with a 2.4% slide. The Dow Jones Industrial Average (DJI - 13,268.73) fell as low as the 13,192.21 mark, but was able to pare some of its losses and end with a deficit of just 10.8 points, or 0.08%. Oil futures tumbled lower today, as the commodity took a hit on data showing that private-sector jobs grew at their slowest pace in seven months.
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Just over half of Dow's 30 components finished lower, as Alcoa ( AA ) led the 16 laggards with a 2.4% slide. Plus, is it time to short the iShares Russell 2000 Index Fund ( IWM ) ? The Dow Jones Industrial Average (DJI - 13,268.73) fell as low as the 13,192.21 mark, but was able to pare some of its losses and end with a deficit of just 10.8 points, or 0.08%.
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Just over half of Dow's 30 components finished lower, as Alcoa ( AA ) led the 16 laggards with a 2.4% slide. Turning to today's major market stories... Chris Prybal checked out the Dow's monthly returns to see if you should really "sell in May." Oil futures tumbled lower today, as the commodity took a hit on data showing that private-sector jobs grew at their slowest pace in seven months.
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Just over half of Dow's 30 components finished lower, as Alcoa ( AA ) led the 16 laggards with a 2.4% slide. At its session low, the Dow Jones Industrial Average (DJI) was off some 87 points. Plus, is it time to short the iShares Russell 2000 Index Fund ( IWM ) ?
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1625.0
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2012-05-01 00:00:00 UTC
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Dow Blossoms to a Multi-Year Best Amid ISM Green Shoots
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https://www.nasdaq.com/articles/dow-blossoms-multi-year-best-amid-ism-green-shoots-2012-05-01
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The Dow Jones Industrial Average (DJI) kicked off the new month with some triple-digit action today. This upbeat activity only emboldened Senior Technical Strategist Ryan Detrick's stance that the "economy isn't dropping off a cliff." Detrick continued, "Sure, the jobs data has been weakening, but today's manufacturing data in the U.S. and China hammered home that the economy is still growing."
Keep reading to see what else was on our radar today:
Financials and homebuilders got a boost from the surprising ISM manufacturing data.
A new trio of key technical levels have emerged for the S&P 500 Index ( SPX ).
Plus, take a walk through the world of weekly options with columnist Adam Warner.
And now, a look at the numbers...
The Dow Jones Industrial Average (DJI - 13,279.32) was up more than 125 points at its session peak of 13,338.66 -- it highest price since December 2007. Ultimately, the blue-chip barometer pared its gains to 65.7 points, or 0.5%. All but eight of the Dow's 30 components finished higher, as Bank of America ( BAC ) and Alcoa ( AA ) paced the winning majority with identical 2.5% gains. Cisco Systems ( CSCO ) led the losing issues with a 0.9% drop.
The S&P 500 Index (SPX - 1,405.82) jumped back atop 1,400, and turned in the best performance of its peers. By the close, the SPX was up 7.9 points, or 0.6%. Meanwhile, the Nasdaq Composite (COMP - 3,050.44) edged up 4.1 points, or 0.1%.
The CBOE Market Volatility Index (VIX - 16.60) peeled back from its intraday high of 17.49, lopping off 3.2% by the time the dust settled. With today's slide, the VIX slipped back under its 40-day moving average.
Newsmakers...
The ISM manufacturing index climbed to 54.8 in April, up from the March reading of 53.4. The monthly gain came as a pleasant surprise, with economists bracing for a decline to 52.9.
Today's highlight : "Given this is my first day back after a week-long Disney cruise, the fact that I got through all of my emails in less than five hours is a moral victory," laughed Detrick. "All kidding aside, a big positive was news that P.F. Chang's ( PFCB ) was bought out for a nearly 30% premium," said Ryan. "We've been seeing signs that the credit markets are healthier, as bank lending is greatly improving. Now, to see some active merger-and-acquisition activity is another very optimistic sign."
Turning to today's major market stories...
Senior Options Strategist Tony Venosa highlighted three technical areas to watch for the SPX .
Ahead of their respective quarterly reports, contrarians may want to take notice of Garmin (GRMN), MasterCard (MA), and OpenTable (OPEN) .
As First Solar (FSLR) prepares to enter the earnings confessional, call activity surged .
Put sellers tuned into Comcast (CMCSA) .
Short interested ballooned on downtrending ViroPharma (VPHM).
Prior to its first-quarter earnings report, put players converged on Macy's (M) .
Qualcomm (QCOM) and Texas Instruments (TXN) were tapped with opposing brokerage notes from Macquarie.
Buyout bids pushed both Collective Brands (PSS) and PFCB to new highs.
Adam Warner explained why he's no longer so suspicious of weekly options .
For today's activity in commodities, options, and more, head to page 2.
Oil futures closed higher, thanks to a surprise increase in the ISM manufacturing index. Despite a rise in the dollar, June-dated crude jumped $1.29, or 1.2%, to land at $106.16 a barrel. This marked the highest settlement for black gold in five weeks.
Conversely, the upbeat manufacturing data and stronger greenback pushed safe-haven gold futures lower for a second straight day. Gold for June delivery decreased $1.80, or 0.1%, to end at $1,662.40 an ounce.
Levels to Watch in Trading :
Dow Jones Industrial Average (DJI - 13,279.32) - support at 11,500; resistance at 14,000
S&P 500 Index (SPX - 1,405.82) - support at 1,100; resistance at 1,500
Nasdaq Composite (COMP - 3,050.44) - support at 2,400; resistance at 3,400
For today's notable annual highs and lows, click here .
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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All but eight of the Dow's 30 components finished higher, as Bank of America ( BAC ) and Alcoa ( AA ) paced the winning majority with identical 2.5% gains. Today's highlight : "Given this is my first day back after a week-long Disney cruise, the fact that I got through all of my emails in less than five hours is a moral victory," laughed Detrick. Turning to today's major market stories... Senior Options Strategist Tony Venosa highlighted three technical areas to watch for the SPX .
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All but eight of the Dow's 30 components finished higher, as Bank of America ( BAC ) and Alcoa ( AA ) paced the winning majority with identical 2.5% gains. This upbeat activity only emboldened Senior Technical Strategist Ryan Detrick's stance that the "economy isn't dropping off a cliff." Turning to today's major market stories... Senior Options Strategist Tony Venosa highlighted three technical areas to watch for the SPX .
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All but eight of the Dow's 30 components finished higher, as Bank of America ( BAC ) and Alcoa ( AA ) paced the winning majority with identical 2.5% gains. Turning to today's major market stories... Senior Options Strategist Tony Venosa highlighted three technical areas to watch for the SPX . Levels to Watch in Trading : Dow Jones Industrial Average (DJI - 13,279.32) - support at 11,500; resistance at 14,000 S&P 500 Index (SPX - 1,405.82) - support at 1,100; resistance at 1,500 Nasdaq Composite (COMP - 3,050.44) - support at 2,400; resistance at 3,400 For today's notable annual highs and lows, click here .
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All but eight of the Dow's 30 components finished higher, as Bank of America ( BAC ) and Alcoa ( AA ) paced the winning majority with identical 2.5% gains. By the close, the SPX was up 7.9 points, or 0.6%. Now, to see some active merger-and-acquisition activity is another very optimistic sign."
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1626.0
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2012-04-30 00:00:00 UTC
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It's Time to Cut your European Exposure Right Now
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AA
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https://www.nasdaq.com/articles/its-time-cut-your-european-exposure-right-now-2012-04-30
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nan
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nan
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Sitting in the banking centers of London, Paris and Zurich, the top European money managers have all been singing the same tune lately: "Focus on America." These investment pros were greatly concerned about the U.S. economy a few years ago, but increasingly think that our country represents the best-multi-year growth opportunities for their portfolios.
They pair that tune with another one: "Get out of Europe."
That's good advice. So far, major European economies have managed to sidestep the huge boulders being hurled from places like Greece, Italy and Spain. Not anymore. Even as recent interventionist measures removed the risk of a major meltdown (for now), the largest European economies are only now starting to buckle, and there's a real possibility that they'll endure another tough recession .
You can already see cracks emerging in places like the United Kingdom, where government spending equates to roughly half of gross domestic product (compared to about 33% in the United States). Efforts to shrink the government, however necessary they may be, are a brake on economic growth. The British economy had been expected to grow 0.2% in the first quarter, but instead shrank -0.1%.
Meanwhile, the French and German economies had been expected to eke out very small gains this year, perhaps in the 0.5% to 1.0% range. Yet recent reports indicate that those forecasts -- just four months old, are already too aggressive. For example, French polling firm Insee found that consumer spending plunged in March. An early read on second-quarter data imply that the French economy has returned to recession mode for the first time since 2009. Over in Germany, just 27.6% of consumers expect to maintain their level of discretionary spending, according to an April survey, down from 38.6% in March. Germany may avoid recession this year, but just barely.
The incipient weakness is due to the fact key trading partners such as Italy, the Netherlands and Spain are all expected to experience a moderate to severe economic contraction this year. In effect, a negative feedback loop between Northern Europe and Southern Europe has reappeared for the first time since 2009.
In response to the darkening economic picture, talks are set to commence next month that look for ways to throttle back many of the painful austerity measures in place, in order to keep the economic slump from deepening. How the bond markets -- and by extension stock markets -- digest the news that borrowings will remain extremely high is an open question.
For now, the best move is to start reducing your exposure to Europe. A number of companies in your portfolio likely have a degree of exposure to the continent, and you can get that information by looking at a company's 10-Q or 10-K filings with the Securities and ExchangeCommission (they're also readily available in the Investor Relations section of corporate websites).
To save you so me time, I've made a list of companies that get at least 40% of sales from Europe. If you own any of the stocks in the table below, then you really need to question the merits of owning them right now..
The list of companies that derive between 30% and 40% of sales from Europe is considerably longer, including firms such as Hewlett Packard (NYSE: HPQ ) , Johnson Controls (NYSE: JCI ) , eBay (Nasdaq: EBAY ) , Google (Nasdaq: GOOG ) and Dow Chemical (NYSE: DOW ) . It's tough to say on a case-by case basis whether you should continue to hold these stocks or not, but you should review your thesis for owning any stock that falls into this range.
In some instances, share prices have already slumped due to weak European demand. That's surely the case with Ford (NYSE: F ) and Alcoa (NYSE: AA ) , two members of my $100,000 Real-Money Portfolio . They are now extremely cheap, both in terms of price-to-earnings and price-to-book. The proverbial cows are already out of the barn with these two stocks, so it pays to instead focus on their deep value opportunities.
But you do have to wonder what a yet-weaker Europe means for companies such as Priceline.com (Nasdaq: PCLN ) , Accenture (NYSE: ACN ) and McDonald's (NYSE: MCD ) . These stocks trade right near their 52-week highs.
Risks to Consider: Upside risks? It's hard to see them. The possible moves to lighten the austerity push may help stop the bleeding of confidence and spending, but that's not a strong likelihood.
Action to Take --> The U.S. economy continues to remain remarkably unscathed, so Europe's troubles aren't a reason to turn bearish on U.S. stocks. Still, events can change quickly, and you need to be prepared to take swift action to lock-in profits if global financial markets start to grumble.
[ Note: Be sure not to miss a single thing and have $100,000 Portfolio updates sent to your email inbox, free for a limited time, as soon as they're published by signing up here .]
-- David Sterman
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority owns shares of F, AA, GOOG in one or more if its real-money or investment portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That's surely the case with Ford (NYSE: F ) and Alcoa (NYSE: AA ) , two members of my $100,000 Real-Money Portfolio . StreetAuthority owns shares of F, AA, GOOG in one or more if its real-money or investment portfolios. Sitting in the banking centers of London, Paris and Zurich, the top European money managers have all been singing the same tune lately: "Focus on America."
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That's surely the case with Ford (NYSE: F ) and Alcoa (NYSE: AA ) , two members of my $100,000 Real-Money Portfolio . StreetAuthority owns shares of F, AA, GOOG in one or more if its real-money or investment portfolios. The list of companies that derive between 30% and 40% of sales from Europe is considerably longer, including firms such as Hewlett Packard (NYSE: HPQ ) , Johnson Controls (NYSE: JCI ) , eBay (Nasdaq: EBAY ) , Google (Nasdaq: GOOG ) and Dow Chemical (NYSE: DOW ) .
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That's surely the case with Ford (NYSE: F ) and Alcoa (NYSE: AA ) , two members of my $100,000 Real-Money Portfolio . StreetAuthority owns shares of F, AA, GOOG in one or more if its real-money or investment portfolios. Even as recent interventionist measures removed the risk of a major meltdown (for now), the largest European economies are only now starting to buckle, and there's a real possibility that they'll endure another tough recession .
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StreetAuthority owns shares of F, AA, GOOG in one or more if its real-money or investment portfolios. That's surely the case with Ford (NYSE: F ) and Alcoa (NYSE: AA ) , two members of my $100,000 Real-Money Portfolio . Meanwhile, the French and German economies had been expected to eke out very small gains this year, perhaps in the 0.5% to 1.0% range.
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1627.0
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2012-04-23 00:00:00 UTC
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After Hours Most Active for Apr 23, 2012 : ANR, NOK, NFLX, BAC, QQQ, AFL, GE, AA, CSCO, QCOM, DTV, JBLU
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AA
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https://www.nasdaq.com/articles/after-hours-most-active-apr-23-2012-anr-nok-nflx-bac-qqq-afl-ge-aa-csco-qcom-dtv-jblu-2012
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The NASDAQ 100 After Hours Indicator is up .49 to 2,653.99. The total After hours volume is currently 27,215,723 shares traded.
The following are the most active stocks for the after hours session :
Alpha Natural Resources, inc. ( ANR ) is -0.5275 at $15.59, with 4,006,239 shares traded. As reported by Zacks, the current mean recommendation for ANR is in the "buy range".
Nokia Corporation ( NOK ) is unchanged at $3.65, with 3,529,318 shares traded., following a 52-week high recorded in today's regular session.
Netflix, Inc. ( NFLX ) is -14.11 at $87.73, with 3,157,325 shares traded. RTT News Reports: Netflix Slips To Loss In Q1 - Quick Facts
Bank of America Corporation ( BAC ) is +0.01 at $8.19, with 1,661,086 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2012. The consensus EPS forecast is $0.17. BAC's current last sale is 81.9% of the target price of $10.
PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.08 at $65.17, with 1,590,985 shares traded. This represents a 30.52% increase from its 52 Week Low.
Aflac Incorporated ( AFL ) is -0.6407 at $40.72, with 1,211,687 shares traded.AFL is scheduled to provide an earnings report on 4/24/2012, for the fiscal quarter ending Mar2012. The consensus earnings per share forecast is 1.65 per share, which represents a 163 percent increase over the EPS one Year Ago
General Electric Company ( GE ) is unchanged at $19.07, with 1,152,672 shares traded. As reported by Zacks, the current mean recommendation for GE is in the "buy range".
Alcoa Inc. ( AA ) is +0.02 at $9.65, with 1,137,919 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2012. The consensus EPS forecast is $0.12. AA's current last sale is 86.74% of the target price of $11.125.
Cisco Systems, Inc. ( CSCO ) is unchanged at $19.68, with 671,784 shares traded. CSCO's current last sale is 87.47% of the target price of $22.5.
QUALCOMM Incorporated ( QCOM ) is +0.152 at $61.71, with 584,080 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2012. The consensus EPS forecast is $0.88. As reported by Zacks, the current mean recommendation for QCOM is in the "buy range".
DIRECTV ( DTV ) is unchanged at $47.30, with 423,199 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2012. The consensus EPS forecast is $1.07. As reported by Zacks, the current mean recommendation for DTV is in the "buy range".
JetBlue Airways Corporation ( JBLU ) is -0.01 at $4.61, with 391,349 shares traded.JBLU is scheduled to provide an earnings report on 4/26/2012, for the fiscal quarter ending Mar2012. The consensus earnings per share forecast is 0.07 per share, which represents a 1 percent increase over the EPS one Year Ago
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) is +0.02 at $9.65, with 1,137,919 shares traded. AA's current last sale is 86.74% of the target price of $11.125. RTT News Reports: Netflix Slips To Loss In Q1 - Quick Facts Bank of America Corporation ( BAC ) is +0.01 at $8.19, with 1,661,086 shares traded.
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Alcoa Inc. ( AA ) is +0.02 at $9.65, with 1,137,919 shares traded. AA's current last sale is 86.74% of the target price of $11.125. Aflac Incorporated ( AFL ) is -0.6407 at $40.72, with 1,211,687 shares traded.AFL is scheduled to provide an earnings report on 4/24/2012, for the fiscal quarter ending Mar2012.
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Alcoa Inc. ( AA ) is +0.02 at $9.65, with 1,137,919 shares traded. AA's current last sale is 86.74% of the target price of $11.125. The consensus earnings per share forecast is 1.65 per share, which represents a 163 percent increase over the EPS one Year Ago General Electric Company ( GE ) is unchanged at $19.07, with 1,152,672 shares traded.
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Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2012. Alcoa Inc. ( AA ) is +0.02 at $9.65, with 1,137,919 shares traded. AA's current last sale is 86.74% of the target price of $11.125.
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1628.0
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2012-04-20 00:00:00 UTC
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After Hours Most Active for Apr 20, 2012 : TXN, BAC, QQQ, S, MSFT, SIRI, CSCO, BPI, INTC, AA, FSLR, F
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AA
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https://www.nasdaq.com/articles/after-hours-most-active-apr-20-2012-txn-bac-qqq-s-msft-siri-csco-bpi-intc-aa-fslr-f-2012
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nan
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The NASDAQ 100 After Hours Indicator is up 1.09 to 2,677.13. The total After hours volume is currently 34,695,743 shares traded.
The following are the most active stocks for the after hours session :
Texas Instruments Incorporated ( TXN ) is +0.1061 at $32.58, with 14,999,738 shares traded.TXN is scheduled to provide an earnings report on 4/23/2012, for the fiscal quarter ending Mar2012. The consensus earnings per share forecast is 0.29 per share, which represents a 55 percent increase over the EPS one Year Ago
Bank of America Corporation ( BAC ) is -0.015 at $8.35, with 4,199,633 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2012. The consensus EPS forecast is $0.17. BAC's current last sale is 83.45% of the target price of $10.
PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.06 at $65.74, with 3,275,900 shares traded. This represents a 31.66% increase from its 52 Week Low.
Sprint Nextel Corporation ( S ) is +0.02 at $2.39, with 2,659,686 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2012. The consensus EPS forecast is $-0.42. S is scheduled to provide an earnings report on 4/25/2012, for the fiscal quarter ending Mar2012. The consensus earnings per share forecast is -0.42 per share, which represents a -15 percent increase over the EPS one Year Ago
Microsoft Corporation ( MSFT ) is +0.03 at $32.45, with 2,598,198 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Sirius XM Radio Inc. ( SIRI ) is -0.005 at $2.22, with 2,158,106 shares traded. As reported in the last short interest update the days to cover for SIRI is 7.096741; this calculation is based on the average trading volume of the stock.
Cisco Systems, Inc. ( CSCO ) is -0.0024 at $19.91, with 1,383,667 shares traded. CSCO's current last sale is 88.48% of the target price of $22.5.
Bridgepoint Education ( BPI ) is unchanged at $21.30, with 1,251,075 shares traded. As reported in the last short interest update the days to cover for BPI is 25.969735; this calculation is based on the average trading volume of the stock.
Intel Corporation ( INTC ) is -0.0033 at $27.60, with 1,227,376 shares traded. Over the last four weeks they have had 12 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2012. The consensus EPS forecast is $0.53. INTC's current last sale is 91.99% of the target price of $30.
Alcoa Inc. ( AA ) is +0.01 at $9.71, with 1,188,011 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2012. The consensus EPS forecast is $0.12. AA's current last sale is 87.28% of the target price of $11.125.
First Solar, Inc. ( FSLR ) is +0.1 at $20.75, with 1,150,110 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2012. The consensus EPS forecast is $0.44. FSLR's current last sale is 79.81% of the target price of $26.
Ford Motor Company ( F ) is +0.03 at $11.44, with 714,573 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2012. The consensus EPS forecast is $0.36. F is scheduled to provide an earnings report on 4/26/2012, for the fiscal quarter ending Mar2012. The consensus earnings per share forecast is 0.36 per share, which represents a 62 percent increase over the EPS one Year Ago
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) is +0.01 at $9.71, with 1,188,011 shares traded. AA's current last sale is 87.28% of the target price of $11.125. The following are the most active stocks for the after hours session : Texas Instruments Incorporated ( TXN ) is +0.1061 at $32.58, with 14,999,738 shares traded.TXN is scheduled to provide an earnings report on 4/23/2012, for the fiscal quarter ending Mar2012.
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Alcoa Inc. ( AA ) is +0.01 at $9.71, with 1,188,011 shares traded. AA's current last sale is 87.28% of the target price of $11.125. The consensus earnings per share forecast is 0.29 per share, which represents a 55 percent increase over the EPS one Year Ago Bank of America Corporation ( BAC ) is -0.015 at $8.35, with 4,199,633 shares traded.
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Alcoa Inc. ( AA ) is +0.01 at $9.71, with 1,188,011 shares traded. AA's current last sale is 87.28% of the target price of $11.125. The consensus earnings per share forecast is 0.29 per share, which represents a 55 percent increase over the EPS one Year Ago Bank of America Corporation ( BAC ) is -0.015 at $8.35, with 4,199,633 shares traded.
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Alcoa Inc. ( AA ) is +0.01 at $9.71, with 1,188,011 shares traded. AA's current last sale is 87.28% of the target price of $11.125. The following are the most active stocks for the after hours session : Texas Instruments Incorporated ( TXN ) is +0.1061 at $32.58, with 14,999,738 shares traded.TXN is scheduled to provide an earnings report on 4/23/2012, for the fiscal quarter ending Mar2012.
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1629.0
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2012-04-13 00:00:00 UTC
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Stock Market News for April 13, 2012 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-april-13-2012-market-news-2012-04-13
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nan
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nan
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Improving growth prospects in the world's second-largest economy, China, and positive developments from the European region drove the markets significantly higher, negating much of week's losses so far. Global cues also overshadowed a rise in weekly jobless claims, ensuring benchmarks' second-straight day of gains. Meanwhile, after investors waited for Google's results through the trading session, the tech-giant delivered encouraging numbers after the closing bell.
The Dow Jones Industrial Average (DJI) soared 181.19 points or 1.4% to close at 12,986.58. The Standard & Poor 500 (S&P 500) also jumped 1.4% and finished yesterday's trading session at 1,387.57. The tech-laden Nasdaq Composite Index surged 1.3% and climbed up to 3,055.55. The fear-gauge CBOE Volatility Index slumped, losing 14.1% and closed at 17.20. Consolidated volumes on the New York Stock Exchange, the American Stock Exchange and Nasdaq were 6.14 billion shares, lower than last year's daily average of 7.84 billion. Advancing stocks completely outshined the decliners on the NYSE; as for 80% of the stocks that gained, a mere 17% stocks traded lower. The remaining 3% stocks were left unchanged.
Yesterday's gains have now pushed benchmarks closer to their key levels. Losses suffered since last week had dragged the Dow, S&P 500 and Nasdaq below their key levels of 13, 000, 1,400 and 3, 000, respectively. While the &P 500 was the first to drop below its key level last Wednesday, dismal nonfarm payroll data released last Friday had dragged the blue-chip index below 13, 000 earlier this week on Monday. A day later, Nasdaq dropped below 3, 000 following reports of surging borrowing costs in Spain and Italy and less-than-expected imports in China However, Nasdaq's stay below 3, 000 was short-lived and it soon rebounded over that level. The Dow and S&P 500 are yet to catch up with their individual key levels, but they are now shy only by 13.42 and 12.43 points, respectively. Additionally, the S&P 500 is now back over its 50-day moving average.
Incidentally, while concerns from Europe and China had dented the markets over the past few trading sessions, positive developments from the same regions have now helped markets climb higher. Firstly, investors had a lot to cheer about following positive developments in Europe. Luckily yesterday, Italy witnessed a successful bond auction as the nation sold $6.4 billion of government bonds. Spanish bond-yields also showed declining trends and have dropped to 5.8%.
Meanwhile, with the GDP report due late at night, rumors of China's first-quarter GDP coming in better-than-expected at 9% compared with prior estimates of 8.4%, boosted the benchmarks through the trading session. Strong growth in the world's second-largest economy is certainly good news for the global financial arena. Therefore, there will surely be a lot to cheer about if the region finally comes out with robust GDP numbers.
Investors also negated dismal domestic labor data, as they remained occupied with global events. The U.S. Department of Labor reported that the advance figure for seasonally adjusted initial claims jumped 13,000 to 380,000, for the week ending April 7, up from previous week's revised figure of 367,000. The jump in initial claims was also significantly higher than consensus estimates of initial claims clocking up a figure of 357, 000.
Coming to sectoral stocks, materials put up a good performance and the Materials Select Sector SPDR ( XLB ) gained 2.7%. Stocks including E. I. du Pont de Nemours and Company (NYSE: DD ), Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX ), Newmont Mining Corp. (NYSE: NEM ), Southern Copper Corp. (NYSE: SCCO ) and Alpha Natural Resources, Inc. (NYSE: ANR ) soared 1.9%, 5.9%, 3.2%, 5.5% and 9.9%, respectively.
Meanwhile, with the earnings season already getting an unofficial kick-start with Alcoa, Inc. (NYSE: AA ) reporting encouraging figures on Tuesday, it was Google Inc.'s (NASDAQ: GOOG ) results that investors were waiting for and the tech giant did not disappoint. On Friday, financial bellwethers JPMorgan Chase & Co. (NYSE: JPM ) and Wells Fargo & Company (NYSE: WFC ) will report their results after the closing bell.
ALCOA INC ( AA ): Free Stock Analysis Report
ALPHA NATRL RES ( ANR ): Free Stock Analysis Report
DU PONT ( EI ) DE ( DD ): Free Stock Analysis Report
FREEPT MC COP-B (FCX): Free Stock Analysis Report
GOOGLE INC-CL A (GOOG): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
NEWMONT MINING (NEM): Free Stock Analysis Report
SOUTHERN COPPER (SCCO): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meanwhile, with the earnings season already getting an unofficial kick-start with Alcoa, Inc. (NYSE: AA ) reporting encouraging figures on Tuesday, it was Google Inc.'s (NASDAQ: GOOG ) results that investors were waiting for and the tech giant did not disappoint. ALCOA INC ( AA ): Free Stock Analysis Report ALPHA NATRL RES ( ANR ): Free Stock Analysis Report DU PONT ( EI ) DE ( DD ): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOOGLE INC-CL A (GOOG): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report To read this article on Zacks.com click here. Improving growth prospects in the world's second-largest economy, China, and positive developments from the European region drove the markets significantly higher, negating much of week's losses so far.
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ALCOA INC ( AA ): Free Stock Analysis Report ALPHA NATRL RES ( ANR ): Free Stock Analysis Report DU PONT ( EI ) DE ( DD ): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOOGLE INC-CL A (GOOG): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, with the earnings season already getting an unofficial kick-start with Alcoa, Inc. (NYSE: AA ) reporting encouraging figures on Tuesday, it was Google Inc.'s (NASDAQ: GOOG ) results that investors were waiting for and the tech giant did not disappoint. Stocks including E. I. du Pont de Nemours and Company (NYSE: DD ), Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX ), Newmont Mining Corp. (NYSE: NEM ), Southern Copper Corp. (NYSE: SCCO ) and Alpha Natural Resources, Inc. (NYSE: ANR ) soared 1.9%, 5.9%, 3.2%, 5.5% and 9.9%, respectively.
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ALCOA INC ( AA ): Free Stock Analysis Report ALPHA NATRL RES ( ANR ): Free Stock Analysis Report DU PONT ( EI ) DE ( DD ): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOOGLE INC-CL A (GOOG): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, with the earnings season already getting an unofficial kick-start with Alcoa, Inc. (NYSE: AA ) reporting encouraging figures on Tuesday, it was Google Inc.'s (NASDAQ: GOOG ) results that investors were waiting for and the tech giant did not disappoint. Advancing stocks completely outshined the decliners on the NYSE; as for 80% of the stocks that gained, a mere 17% stocks traded lower.
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Meanwhile, with the earnings season already getting an unofficial kick-start with Alcoa, Inc. (NYSE: AA ) reporting encouraging figures on Tuesday, it was Google Inc.'s (NASDAQ: GOOG ) results that investors were waiting for and the tech giant did not disappoint. ALCOA INC ( AA ): Free Stock Analysis Report ALPHA NATRL RES ( ANR ): Free Stock Analysis Report DU PONT ( EI ) DE ( DD ): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOOGLE INC-CL A (GOOG): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report To read this article on Zacks.com click here. Improving growth prospects in the world's second-largest economy, China, and positive developments from the European region drove the markets significantly higher, negating much of week's losses so far.
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1630.0
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2012-04-13 00:00:00 UTC
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The ONE Thing that Could Ruin a Great Investment
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AA
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https://www.nasdaq.com/articles/one-thing-could-ruin-great-investment-2012-04-13
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nan
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nan
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It's always intriguing to look at the list of the most heavily-shorted stocks. Many investors like to see which companies are expected to tumble by various short-interest gauges. Owning these stocks long-term can give pause, and perhaps a reason to sell if short sellers' arguments appear to be on the mark. Other investors use the list of the most heavily-shorted stocks to find short candidates themselves. And that's a huge mistake. That's because the most-heavily shorted stocks are often the biggest gainers when major events come to pass.
We've seen this phenomenon again in recent days. On Tuesday morning, April 10, distressed grocery chain Supervalu ( SVU ) weighed-in with quarterly results. They were pretty bad, but perhaps not as bad as the most aggressive short-sellers assumed. These short sellers had been holding 73 million shares in short accounts, making this the fourth most-shorted stock on the New York Stock Exchange. That short interest equated to an eye-popping 14 days' worth of trading volume .
Simply delivering bad but not horrible earnings led investors to embark on massive short-covering. By the end of trading on Thursday, shares had risen a hefty 23%. Some of that upward spike surely came from short-sellers covering their position by buying back borrowed stock. Roughly 10 million shares traded hands daily going into the quarterly report , though that figure spiked to 38 million on the day results were released.
Later that day, Alcoa ( AA ) weighed in with results that were better than analysts had forecasted. As the fifth most heavily-shorted stock on the market , it should come as no surprise that shares quickly zoomed higher and are now up nearly 10% in the last few trading sessions.
The key takeaway: it might be wiser to see if heavily-shorted stocks have more upside than the short-sellers might think. If so, those shorts may unwittingly force shares up for you with all of their buying efforts as they cover positions.
This is food for thought as we head into the teeth of the earnings season . Here are some of the top targets for short sellers, and the expected dates for them to report results.
Risks and rewards...
Safeway ( SWY ) , another heavily-shorted grocer, also highlights the risk of betting against such stocks. Rumors have swirled that the company may get acquired, and these rumors appear to have little merit. Still, just the rumor has likely spooked short-sellers, and shares are now up for four straight sessions (at the time of this writing).
To be sure, some companies appear to deserve to attention of short-sellers. For example, I laid out the long-term threats in place for video-game retailer Gamestop ( GME )back in October 2011 , and though shares are off more than 10% since then (as the broader market has moved steadily upward), recently released sales data imply even worsening quarterly results in the periods ahead. Sales of video games and consoles slid sharply in March, according to NPD Group, and it's getting harder to see how this company can earn more than $3 a share in fiscal (January) 2013 and 2014, as analysts currently anticipate. Still, with such a huge short position in place, it may be wiser to sell this stock (if you own it long) and then short it outright.
Profiting from the "short squeeze "
If you want to angle to profit from a potential short squeeze , it makes sense to target stocks that have huge short positions in relation to their daily trading volume (known as "days-to-cover").
These stocks include:
• St. Joe ( JOE ) , a real-estate concern, with 36 days to cover
• Briggs & Stratton (BGG) , small engine maker, with 28 days to cover
• Meredith Corp (MDP) , a media firm, with 27 days to cover
• A merican Greetings (AM) , which makes greeting cards with 26 days to cover.
[block:block=16]You should only look to go against short sellers with these stocks if your own research provides a clear case that business trends are OK and not in trouble as short sellers likely suspect.
Risks to Consider: It only pays to focus on a potential short squeeze if you think the market is going higher. A slumping market could well prove these short-sellers right, even if they're wrong.
Action to Take --> You should always check the size of the short position before investing in any stock. If you're going long, then you'll want to at least know what the shorts are thinking. And if you're thinking of going short, tread very carefully, lest you get caught up in a short squeeze if the total short position is already quite large.
[ Note: If you haven't heard about this unique opportunity, then I want to tell you about it now. StreetAuthority has staked me with $100,000 of real money to invest in my absolute best ideas. For a limited time, you'll be able to follow along with me completely free. Go here to learn more .]
-- David Sterman
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Later that day, Alcoa ( AA ) weighed in with results that were better than analysts had forecasted. StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios. Owning these stocks long-term can give pause, and perhaps a reason to sell if short sellers' arguments appear to be on the mark.
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Later that day, Alcoa ( AA ) weighed in with results that were better than analysts had forecasted. StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios. Roughly 10 million shares traded hands daily going into the quarterly report , though that figure spiked to 38 million on the day results were released.
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Later that day, Alcoa ( AA ) weighed in with results that were better than analysts had forecasted. StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios. These short sellers had been holding 73 million shares in short accounts, making this the fourth most-shorted stock on the New York Stock Exchange.
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Later that day, Alcoa ( AA ) weighed in with results that were better than analysts had forecasted. StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios. As the fifth most heavily-shorted stock on the market , it should come as no surprise that shares quickly zoomed higher and are now up nearly 10% in the last few trading sessions.
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1631.0
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2012-04-12 00:00:00 UTC
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Stock Market News for April 12, 2012 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-april-12-2012-market-news-2012-04-12
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nan
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nan
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Just a day after markets' suffered their biggest fall of the year, a single positive earnings report reversed the benchmarks' five-day losing streak on Wednesday. Markets' uptrend yesterday was also boosted by a fall in Spain's borrowing costs, a concern which had dealt serious injuries to the markets over the last few days.
The Dow Jones Industrial Average (DJI) gained 0.7% to close at 12,805.39. The Standard & Poor 500 (S&P 500) also jumped 0.7% and finished yesterday's trading session at 1,368.71. The tech-laden Nasdaq Composite Index moved up 0.8% and settled at 3,016.46. The fear-gauge CBOE Volatility Index (VIX) also slipped from its path of a continuous uptrend, shedding a meager 1.8% to close at 20.02. Consolidated volumes on New York Stock Exchange, the American Stock Exchange and the Nasdaq remained low at 6.31 billion shares, falling behind last year's daily average of 7.84 billion. Advancing stocks on the NYSE stormed past the decliners; as for 78% stocks that gained, only 20% stocks traded lower. The remaining 2% stocks were left unchanged.
Yesterday's bounce back was not enough to negate all of the week's losses and the Dow, S&P 500 and Nasdaq are still down 2%, 2.1%, and 2.1%, respectively, for the week. Nonetheless, after investors were left distraught by the negative trend of the benchmarks over the past five trading days, any gains will help to buoy sentiment. The gains made yesterday not only helped limit the week's losses and end the losing streak, but also lifted the Nasdaq back to its key level. Tuesday's 1.8% loss in the tech-laden index had dragged it below 3, 000, but the gains made yesterday enabled it to remain 16 points ahead of the key level. However, investors will have to wait for more positive trends to see the blue-chip index and S&P 500 climb back to their respective key levels of 13, 000 and 1, 400.
It was Alcoa, Inc.'s (NYSE: AA ) results that surprised the Street after it declared profits for the quarter. The largest U.S. aluminum producer reported earnings per share of $0.09, contrary to estimates of a loss of $0.04 per share. Alcoa also bounced back to profits after it reported a loss of $0.18 in the prior quarter. Alcoa, a bellwether in its domain, is the first among the Dow components to report results, and is bound to grab investors' attention. This earnings report also unofficially kick-starts the earnings season, and will surely help the broader rally. Alcoa's shares jumped 6.2% to lead the gains among the 30 Dow components, followed by the likes of Cisco Systems, Inc. (NASDAQ: CSCO ), The Boeing Company (NYSE: BA ), Intel Corporation (NASDAQ: INTC ), AT&T, Inc. (NYSE: T ) and Verizon Communications Inc. (NYSE: VZ ), which jumped 2.4%, 1.7%, 1.5%, 1.1% and 1.6%, respectively.
Additionally, Dow components and financial behemoths, Bank of America Corporation (NYSE: BAC ) and JPMorgan Chase & Co. (NYSE: JPM ) surged 3.8% and 2.4%, respectively, following the broader rally in the financial sector. The financial sector was one of the leading gainers among S&P's 10 industry groups and the Financial Select Sector SPDR ( XLF ) gained 1.6%. Among other financial shares, American Express Company (NYSE: AXP ), Citigroup, Inc. (NYSE: C ), The Goldman Sachs Group, Inc. (NYSE: GS ), Morgan Stanley (NYSE: MS ) and UBS AG (NYSE: UBS ) gained 1.4%, 2.2%, 1.2%, 1.2% and 2.4%, respectively.
Separately, news from Europe was on the positive side. Developments from the continent have dampened investors' mood since last week. In a sign of improved confidence in the nation's economic scenario, Spain's 10-year bond yield dropped to 5.8% yesterday. For the moment, this was a significant enough catalyst to boost investor sentiment as investors are well aware of the consequences of surging borrowing costs. Not long ago Ireland, Portugal and Greece suffered economic turmoil with their borrowing costs reaching 'unsustainable levels'. Also helping to keep the positive sentiment alive was European Central Bank's Executive Board member Benoit Coeure's statement that the Securities Market Programme ( SMP ) that authorized the ECB to buy euro-zone nations' debt whenever needed remained intact.
ALCOA INC ( AA ): Free Stock Analysis Report
AMER EXPRESS CO ( AXP ): Free Stock Analysis Report
BOEING CO ( BA ): Free Stock Analysis Report
BANK OF AMER CP (BAC): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
CISCO SYSTEMS (CSCO): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
MORGAN STANLEY (MS): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
UBS AG (UBS): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It was Alcoa, Inc.'s (NYSE: AA ) results that surprised the Street after it declared profits for the quarter. ALCOA INC ( AA ): Free Stock Analysis Report AMER EXPRESS CO ( AXP ): Free Stock Analysis Report BOEING CO ( BA ): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report CISCO SYSTEMS (CSCO): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report AT&T INC (T): Free Stock Analysis Report UBS AG (UBS): Free Stock Analysis Report VERIZON COMM (VZ): Free Stock Analysis Report To read this article on Zacks.com click here. Just a day after markets' suffered their biggest fall of the year, a single positive earnings report reversed the benchmarks' five-day losing streak on Wednesday.
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ALCOA INC ( AA ): Free Stock Analysis Report AMER EXPRESS CO ( AXP ): Free Stock Analysis Report BOEING CO ( BA ): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report CISCO SYSTEMS (CSCO): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report AT&T INC (T): Free Stock Analysis Report UBS AG (UBS): Free Stock Analysis Report VERIZON COMM (VZ): Free Stock Analysis Report To read this article on Zacks.com click here. It was Alcoa, Inc.'s (NYSE: AA ) results that surprised the Street after it declared profits for the quarter. Alcoa's shares jumped 6.2% to lead the gains among the 30 Dow components, followed by the likes of Cisco Systems, Inc. (NASDAQ: CSCO ), The Boeing Company (NYSE: BA ), Intel Corporation (NASDAQ: INTC ), AT&T, Inc. (NYSE: T ) and Verizon Communications Inc. (NYSE: VZ ), which jumped 2.4%, 1.7%, 1.5%, 1.1% and 1.6%, respectively.
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ALCOA INC ( AA ): Free Stock Analysis Report AMER EXPRESS CO ( AXP ): Free Stock Analysis Report BOEING CO ( BA ): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report CISCO SYSTEMS (CSCO): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report AT&T INC (T): Free Stock Analysis Report UBS AG (UBS): Free Stock Analysis Report VERIZON COMM (VZ): Free Stock Analysis Report To read this article on Zacks.com click here. It was Alcoa, Inc.'s (NYSE: AA ) results that surprised the Street after it declared profits for the quarter. Alcoa's shares jumped 6.2% to lead the gains among the 30 Dow components, followed by the likes of Cisco Systems, Inc. (NASDAQ: CSCO ), The Boeing Company (NYSE: BA ), Intel Corporation (NASDAQ: INTC ), AT&T, Inc. (NYSE: T ) and Verizon Communications Inc. (NYSE: VZ ), which jumped 2.4%, 1.7%, 1.5%, 1.1% and 1.6%, respectively.
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It was Alcoa, Inc.'s (NYSE: AA ) results that surprised the Street after it declared profits for the quarter. ALCOA INC ( AA ): Free Stock Analysis Report AMER EXPRESS CO ( AXP ): Free Stock Analysis Report BOEING CO ( BA ): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report CISCO SYSTEMS (CSCO): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report AT&T INC (T): Free Stock Analysis Report UBS AG (UBS): Free Stock Analysis Report VERIZON COMM (VZ): Free Stock Analysis Report To read this article on Zacks.com click here. Markets' uptrend yesterday was also boosted by a fall in Spain's borrowing costs, a concern which had dealt serious injuries to the markets over the last few days.
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1632.0
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2012-04-12 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Alcoa, Nokia, Chevron, Titan Machinery and Sara Lee - Press Releases
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AA
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-alcoa-nokia-chevron-titan-machinery-and-sara-lee-press
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nan
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nan
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For Immediate Release
Chicago, IL - April 12, 2012 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Alcoa ( AA ), Nokia ( NOK ), Chevron ( CVX ), Titan Machinery ( TITN ) and Sara Lee Corporation ( SLE ).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Wednesday's Analyst Blog:
Q1: Déjà Vu All Over Again?
Alcoa's ( AA ) positive results may not have much relevance beyond the basic materials and commodity sectors, but it nevertheless provides further evidence that it may not take much to reassure investors on the earnings front given how low expectations have dropped.
It is perhaps premature to expect the earnings season to put a stop to the stock market slide of the last few days. But given the subdued expectations, earnings reports are unlikely to produce more pain for the market, either.
While the pullback was not unexpected following uninterrupted gains of the last six months, some have started calling it a repeat performance of last year when the market lost momentum around this time after a strong start. I am hesitant to say that 'this time is different,' but the similarities are only surface-deep. For starters, the U.S. economy is on a lot stronger footing this year than was the case last year, with multiple areas of fundamental support. Momentum in the labor market, despite the March jobs miss, appears to be a lot more sustainable and entrenched, helping improve the prospects for consumer spending.
And while Europe has re-emerged as a cloud in recent days, centered this time on Spain, the threat it poses to the U.S. and global economy are magnitudes lower than the existential concerns about the common currency union last year. Bottom line, the stock market slide of the last days may actually be the pullback that many had been looking for, but it is unlikely to prove as enduring as what the market faced last year.
As mentioned at the top, Alcoa provided a good start to the first quarter earnings season after the close on Tuesday by coming out with better-than-expected results and guiding towards strong demand outlook for aluminum. It is still early going in the reporting cycle, but we got two major pre-announcements- a negative one from Nokia ( NOK ) and a positive one from Chevron ( CVX ). We also have a solid earnings report from Titan Machinery ( TITN ), the farming and construction equipment maker.
Sara Lee Buys Brazilian Coffee
Sara Lee Corporation ( SLE ) recently announced that it has acquired a small Brazilian espresso coffee maker, Expresso Coffee. The acquired business already holds a license to sell coffee under Sara Lee's Pilão brand in more than 1,000 coffee shops across São Paulo and Rio de Janeiro.
Financial terms of the deal were not disclosed. The acquisition places Sara Lee in the fast growing and attractive markets of São Paulo and Rio de Janeiro.
Sara Lee is on track to split the company into two publicly traded companies: an international coffee and tea business and a North American retail, foodservice and specialty meats business. Post spin-off, the international coffee and tea business will be domiciled in the Netherlands and will move its headquarters to Amsterdam in the second half of 2012.
Its operations will be spread across Europe, Brazil, Australia and Thailand and will include popular tea and coffee brands such as Douwe Egberts, Senseo, L'OR EspressO, Marcilla, Pilão, Moccona, Pickwick and Hornimans. Sara Lee will name its international coffee and tea business, D.E Master Blenders 1753. The spin-off is expected to be completed by June this year.
The spin-off is part of Sara Lee's plan to trim its portfolio in order to provide the best foundation for a strong and focused business. Sara Lee has been shedding its redundant units one by one to focus on its most profitable food and beverage businesses.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515 .
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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ALCOA INC ( AA ): Free Stock Analysis Report
CHEVRON CORP ( CVX ): Free Stock Analysis Report
NOKIA CP-ADR A ( NOK ): Free Stock Analysis Report
SARA LEE ( SLE ): Free Stock Analysis Report
TITAN MACHINERY ( TITN ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include Alcoa ( AA ), Nokia ( NOK ), Chevron ( CVX ), Titan Machinery ( TITN ) and Sara Lee Corporation ( SLE ). Alcoa's ( AA ) positive results may not have much relevance beyond the basic materials and commodity sectors, but it nevertheless provides further evidence that it may not take much to reassure investors on the earnings front given how low expectations have dropped. 9339 support@zacks.com http://www.zacks.com ALCOA INC ( AA ): Free Stock Analysis Report CHEVRON CORP ( CVX ): Free Stock Analysis Report NOKIA CP-ADR A ( NOK ): Free Stock Analysis Report SARA LEE ( SLE ): Free Stock Analysis Report TITAN MACHINERY ( TITN ): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Alcoa ( AA ), Nokia ( NOK ), Chevron ( CVX ), Titan Machinery ( TITN ) and Sara Lee Corporation ( SLE ). 9339 support@zacks.com http://www.zacks.com ALCOA INC ( AA ): Free Stock Analysis Report CHEVRON CORP ( CVX ): Free Stock Analysis Report NOKIA CP-ADR A ( NOK ): Free Stock Analysis Report SARA LEE ( SLE ): Free Stock Analysis Report TITAN MACHINERY ( TITN ): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa's ( AA ) positive results may not have much relevance beyond the basic materials and commodity sectors, but it nevertheless provides further evidence that it may not take much to reassure investors on the earnings front given how low expectations have dropped.
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9339 support@zacks.com http://www.zacks.com ALCOA INC ( AA ): Free Stock Analysis Report CHEVRON CORP ( CVX ): Free Stock Analysis Report NOKIA CP-ADR A ( NOK ): Free Stock Analysis Report SARA LEE ( SLE ): Free Stock Analysis Report TITAN MACHINERY ( TITN ): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Alcoa ( AA ), Nokia ( NOK ), Chevron ( CVX ), Titan Machinery ( TITN ) and Sara Lee Corporation ( SLE ). Alcoa's ( AA ) positive results may not have much relevance beyond the basic materials and commodity sectors, but it nevertheless provides further evidence that it may not take much to reassure investors on the earnings front given how low expectations have dropped.
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9339 support@zacks.com http://www.zacks.com ALCOA INC ( AA ): Free Stock Analysis Report CHEVRON CORP ( CVX ): Free Stock Analysis Report NOKIA CP-ADR A ( NOK ): Free Stock Analysis Report SARA LEE ( SLE ): Free Stock Analysis Report TITAN MACHINERY ( TITN ): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Alcoa ( AA ), Nokia ( NOK ), Chevron ( CVX ), Titan Machinery ( TITN ) and Sara Lee Corporation ( SLE ). Alcoa's ( AA ) positive results may not have much relevance beyond the basic materials and commodity sectors, but it nevertheless provides further evidence that it may not take much to reassure investors on the earnings front given how low expectations have dropped.
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1633.0
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2012-04-12 00:00:00 UTC
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Largest option buying in equities so far
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AA
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https://www.nasdaq.com/articles/largest-option-buying-equities-so-far-2012-04-12
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Nearing the halfway mark in today's session, here are the individual equity names with the most call and put buying on optionMONSTER's ActionTracker data system.
Alcoa (AA): There is heavy buying in the April 10 calls and the May 10 calls as investors look for the metal producer to rally in coming weeks. AA rose 3.23 percent to $10.22.
Hewlett-Packard (HPQ): Traders bought more than 10,000 May 25 calls, mostly for $0.67 to $0.75, looking for upside in the stock. HPQ rose 6.41 percent to $24.91
Freeport-McMoRan Copper & Gold (FCX): Almost 30,000 April 37 puts traded for $0.86 to $0.90, but volume was below open interest in the strike. FCX rose 4.64 percent to $37.44.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa (AA): There is heavy buying in the April 10 calls and the May 10 calls as investors look for the metal producer to rally in coming weeks. AA rose 3.23 percent to $10.22. Nearing the halfway mark in today's session, here are the individual equity names with the most call and put buying on optionMONSTER's ActionTracker data system.
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AA rose 3.23 percent to $10.22. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Alcoa (AA): There is heavy buying in the April 10 calls and the May 10 calls as investors look for the metal producer to rally in coming weeks.
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Alcoa (AA): There is heavy buying in the April 10 calls and the May 10 calls as investors look for the metal producer to rally in coming weeks. AA rose 3.23 percent to $10.22. Nearing the halfway mark in today's session, here are the individual equity names with the most call and put buying on optionMONSTER's ActionTracker data system.
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AA rose 3.23 percent to $10.22. Alcoa (AA): There is heavy buying in the April 10 calls and the May 10 calls as investors look for the metal producer to rally in coming weeks. Nearing the halfway mark in today's session, here are the individual equity names with the most call and put buying on optionMONSTER's ActionTracker data system.
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1634.0
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2012-04-12 00:00:00 UTC
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BHP Billiton in News Again - Analyst Blog
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AA
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https://www.nasdaq.com/articles/bhp-billiton-in-news-again-analyst-blog-2012-04-12
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Two conflicting events placed BHPBilliton Ltd ( BHP ) on a delicate ground this week. On the positive, the company received funding approval for a spar facility project. Undermining the optimism was the closure of its Norwich Park coal mine.
Yesterday, BHP Billiton announced the approval of US$708 million initial funding for Mad Dog Phase 2 project in the deepwater Gulf of Mexico. The pre-commitment funding will facilitate detailed engineering and the procurement of hull, topsides and subsea equipment.
The proposed Mad Dog Phase 2 project - a partnership between operator BP ( BP , 60.5% share), BHP Billiton (23.9%) and Chevron ( CVX , 15.6%) - includes development of a second spar facility with all subsea production and injection wells.
As per the agreement, the new facility will be constructed with a design capacity of approximately 130,000 barrels of oil per day to be exported via the Mardi Gras Pipelines. The first production is scheduled for calendar year 2018.
The US$708 million funding - a strategic part of BHP Billiton's extensive organic growth program - is not only expected to generate positive business under all market conditions but will also provide the company an edge over its peers, such as Vale S.A ( VALE ) and Alcoa Inc ( AA ).
In a separate story, BHP Billiton Mitsubishi Alliance ( BMA ) announced its intention to cease production at the Norwich Park coal mine for an indefinite period. A seven-week mine viability review revealed that lower production, significant increase in mining costs and lower coal prices led to losses.
The company has decided against resuming operations but expressed its commitment to maximize redeployment opportunities for the employees till the time Norwich Park is reinstated as a sustainable and profitable low-cost mine.
BHP Billiton's pipeline of high-return growth projects, business diversifications as well as substantial increase in production of metals and energy appear encouraging. Nevertheless, execution risks like natural calamities, upsurge in oil prices, rising core inflation in the emerging markets and degradation of ore grade clouds such encouraging outlook. Thus we currently hold a long-term Neutral recommendation on the stock.
Also, BHP Billiton carries a Zacks #3 Rank, which translates into a short-term (1-3 months) Hold rating.
ALCOA INC ( AA ): Free Stock Analysis Report
BHP BILLITN LTD ( BHP ): Free Stock Analysis Report
BP PLC ( BP ): Free Stock Analysis Report
CHEVRON CORP ( CVX ): Free Stock Analysis Report
VALE SA (VALE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The US$708 million funding - a strategic part of BHP Billiton's extensive organic growth program - is not only expected to generate positive business under all market conditions but will also provide the company an edge over its peers, such as Vale S.A ( VALE ) and Alcoa Inc ( AA ). ALCOA INC ( AA ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report BP PLC ( BP ): Free Stock Analysis Report CHEVRON CORP ( CVX ): Free Stock Analysis Report VALE SA (VALE): Free Stock Analysis Report To read this article on Zacks.com click here. In a separate story, BHP Billiton Mitsubishi Alliance ( BMA ) announced its intention to cease production at the Norwich Park coal mine for an indefinite period.
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ALCOA INC ( AA ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report BP PLC ( BP ): Free Stock Analysis Report CHEVRON CORP ( CVX ): Free Stock Analysis Report VALE SA (VALE): Free Stock Analysis Report To read this article on Zacks.com click here. The US$708 million funding - a strategic part of BHP Billiton's extensive organic growth program - is not only expected to generate positive business under all market conditions but will also provide the company an edge over its peers, such as Vale S.A ( VALE ) and Alcoa Inc ( AA ). Yesterday, BHP Billiton announced the approval of US$708 million initial funding for Mad Dog Phase 2 project in the deepwater Gulf of Mexico.
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The US$708 million funding - a strategic part of BHP Billiton's extensive organic growth program - is not only expected to generate positive business under all market conditions but will also provide the company an edge over its peers, such as Vale S.A ( VALE ) and Alcoa Inc ( AA ). ALCOA INC ( AA ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report BP PLC ( BP ): Free Stock Analysis Report CHEVRON CORP ( CVX ): Free Stock Analysis Report VALE SA (VALE): Free Stock Analysis Report To read this article on Zacks.com click here. The proposed Mad Dog Phase 2 project - a partnership between operator BP ( BP , 60.5% share), BHP Billiton (23.9%) and Chevron ( CVX , 15.6%) - includes development of a second spar facility with all subsea production and injection wells.
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The US$708 million funding - a strategic part of BHP Billiton's extensive organic growth program - is not only expected to generate positive business under all market conditions but will also provide the company an edge over its peers, such as Vale S.A ( VALE ) and Alcoa Inc ( AA ). ALCOA INC ( AA ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report BP PLC ( BP ): Free Stock Analysis Report CHEVRON CORP ( CVX ): Free Stock Analysis Report VALE SA (VALE): Free Stock Analysis Report To read this article on Zacks.com click here. On the positive, the company received funding approval for a spar facility project.
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1635.0
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2012-04-11 00:00:00 UTC
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Pre-Market Most Active for Apr 11, 2012 : NOK, BAC, AA, SLT, QQQ, SNY, ALU, SIRI, AAPL, TZOO, MSFT, RIMM
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AA
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https://www.nasdaq.com/articles/pre-market-most-active-apr-11-2012-nok-bac-aa-slt-qqq-sny-alu-siri-aapl-tzoo-msft-rimm
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The NASDAQ 100 Pre-Market Indicator is up 16.19 to 2,711.31. The total Pre-Market volume is currently 3,039,455 shares traded.
The following are the most active stocks for the pre-market session:
Nokia Corporation ( NOK ) is -0.68 at $4.35, with 14,024,744 shares traded. As reported in the last short interest update the days to cover for NOK is 7.72717; this calculation is based on the average trading volume of the stock.
Bank of America Corporation ( BAC ) is +0.21 at $8.75, with 3,338,958 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2012. The consensus EPS forecast is $0.12. BAC's current last sale is 87.5% of the target price of $10.
Alcoa Inc. ( AA ) is +0.5199 at $9.84, with 3,162,889 shares traded. AA's current last sale is 88.45% of the target price of $11.125.
Sterlite Industries (India) Limited ( SLT ) is unchanged at $7.94, with 1,313,182 shares traded. SLT's current last sale is 69.65% of the target price of $11.4.
PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.52 at $66.65, with 1,004,381 shares traded. This represents a 33.49% increase from its 52 Week Low.
Sanofi ( SNY ) is +0.29 at $36.50, with 858,000 shares traded. SNY's current last sale is 89.02% of the target price of $41.
Alcatel Lucent ( ALU ) is +0.12 at $2.10, with 610,235 shares traded. ALU's current last sale is 78.65% of the target price of $2.67.
Sirius XM Radio Inc. ( SIRI ) is +0.03 at $2.25, with 229,313 shares traded. SIRI's current last sale is 88.24% of the target price of $2.55.
Apple Inc. ( AAPL ) is +6.96 at $635.40, with 193,505 shares traded. Over the last four weeks they have had 18 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2012. The consensus EPS forecast is $9.8. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Travelzoo Inc ( TZOO ) is +6.19 at $27.25, with 192,829 shares traded. As reported in the last short interest update the days to cover for TZOO is 7.18108; this calculation is based on the average trading volume of the stock.
Microsoft Corporation ( MSFT ) is +0.13 at $30.60, with 174,025 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Research in Motion Limited ( RIMM ) is +0.03 at $12.96, with 88,251 shares traded. RIMM's current last sale is 99.69% of the target price of $13.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) is +0.5199 at $9.84, with 3,162,889 shares traded. AA's current last sale is 88.45% of the target price of $11.125. Apple Inc. ( AAPL ) is +6.96 at $635.40, with 193,505 shares traded.
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Alcoa Inc. ( AA ) is +0.5199 at $9.84, with 3,162,889 shares traded. AA's current last sale is 88.45% of the target price of $11.125. Apple Inc. ( AAPL ) is +6.96 at $635.40, with 193,505 shares traded.
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Alcoa Inc. ( AA ) is +0.5199 at $9.84, with 3,162,889 shares traded. AA's current last sale is 88.45% of the target price of $11.125. Apple Inc. ( AAPL ) is +6.96 at $635.40, with 193,505 shares traded.
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AA's current last sale is 88.45% of the target price of $11.125. Alcoa Inc. ( AA ) is +0.5199 at $9.84, with 3,162,889 shares traded. Apple Inc. ( AAPL ) is +6.96 at $635.40, with 193,505 shares traded.
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1636.0
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2012-04-11 00:00:00 UTC
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Alcoa Kicks off Earnings Season, Swings to Surprise Q1 Profit (AA)
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AA
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https://www.nasdaq.com/articles/alcoa-kicks-earnings-season-swings-surprise-q1-profit-aa-2012-04-11
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Aluminum producer Alcoa Inc. ( AA ) late Tuesday posted better-than-expected first quarter earnings results, sending its shares surging higher in aftermarket trading.
The New York-based company reported first quarter net income of $94 million, or 9 cents per share, compared with $308 million, or 27 cents per share, in the year-ago period. Excluding special items, adjusted profit was 10 cents per share.
Revenue edged slightly higher from last year to $6 billion.
On average, Wall Street analysts expected a net loss of 4 cents per share, on lower revenue of $5.77 billion.
Looking ahead, AA reaffirmed its previously-announced forecast for a 7% rise in global aluminum demand.
Alcoa shares rose 53 cents, or +5.7%, in premarket trading Wednesday.
The Bottom Line
Shares of Alcoa ( AA ) have a 1.29% dividend yield, based on last night's closing stock price of $9.32. The stock has technical support in the $8.00-$8.50 price area. If the shares can firm up, we see overhead resistance around the $11 price level.
Alcoa Inc. ( AA ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aluminum producer Alcoa Inc. ( AA ) late Tuesday posted better-than-expected first quarter earnings results, sending its shares surging higher in aftermarket trading. The Bottom Line Shares of Alcoa ( AA ) have a 1.29% dividend yield, based on last night's closing stock price of $9.32. Looking ahead, AA reaffirmed its previously-announced forecast for a 7% rise in global aluminum demand.
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Aluminum producer Alcoa Inc. ( AA ) late Tuesday posted better-than-expected first quarter earnings results, sending its shares surging higher in aftermarket trading. Looking ahead, AA reaffirmed its previously-announced forecast for a 7% rise in global aluminum demand. The Bottom Line Shares of Alcoa ( AA ) have a 1.29% dividend yield, based on last night's closing stock price of $9.32.
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Aluminum producer Alcoa Inc. ( AA ) late Tuesday posted better-than-expected first quarter earnings results, sending its shares surging higher in aftermarket trading. The Bottom Line Shares of Alcoa ( AA ) have a 1.29% dividend yield, based on last night's closing stock price of $9.32. Looking ahead, AA reaffirmed its previously-announced forecast for a 7% rise in global aluminum demand.
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The Bottom Line Shares of Alcoa ( AA ) have a 1.29% dividend yield, based on last night's closing stock price of $9.32. Aluminum producer Alcoa Inc. ( AA ) late Tuesday posted better-than-expected first quarter earnings results, sending its shares surging higher in aftermarket trading. Looking ahead, AA reaffirmed its previously-announced forecast for a 7% rise in global aluminum demand.
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1637.0
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2012-04-11 00:00:00 UTC
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Market Wrap-Up for Apr.11 (AA, NOK, BA, CSC, UTX, more)
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AA
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https://www.nasdaq.com/articles/market-wrap-apr11-aa-nok-ba-csc-utx-more-2012-04-11
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All it took for the markets to get back some of yesterday's selling was a surprise earnings beat from Dow component Alcoa ( AA ). The markets in Europe were higher as well.
With the markets suffering their first major losing streak of 2012 (down for 5 consecutive sessions), traders were certainly looking for an oversold bounce. It will be interesting to see how the market reacts when other key companies begin reporting in the coming days and weeks. Momentum traders need to be very careful, as any bit of a letdown can cause havoc to a trader's portfolio. Dividend investors could see some new names come on to our radar if the markets overreact on the negative side to upcoming earnings reports. Likewise, we are evaluating our current recommendations for any potential move to the sidelines in some of them.
Elsewhere, Wall Street analyst upgrades helped boost stocks like Boeing ( BA ), BB&T ( BBT ), Las Vegas Sands ( LVS ), and United Technologies ( UTX ) in today's early pop. On the flipside, bad earnings-related forecasts out of Nokia ( NOK ) ( read more ) and Computer Sciences ( CSC ) ( more here ) had those two companies struggling amid today's rally.
Bullish 1st Quarter for Dividends
Standard & Poors just put out some positive statistics from its first quarter dividend tally:
- The value of net dividend enhancements (increases less decreases) skyrocketed 27.6%, to a record $24.2 billion from $19 billion in 2011′s opening quarter.
- S&P counted 677 payout hikes, extras, and resumptions, up 32.7% from 510 during the corresponding 2011 stretch.
- Dividend cuts and omissions, at 31, were flat with a year earlier.
- Payout ratios (dividends as a percentage of earnings), which historically average 52%, remain close to their lows, at under 30%. (This fact certainly shows companies have room to keep raising payouts as corporate cash levels continue to grow).
Financial Institutions Back to Their Old (Predatory) Ways
The New York Times had an interesting article out this morning talking about credit card lenders moving back into the sub-prime borrowers' space. Apparently, recent lessons from the financial bailouts/crisis have already been forgotten.
According to recent data from Equifax, credit card lenders gave out 1.1 million new cards to borrowers with damaged credit in December, up 12.3 percent from the same month a year earlier. These borrowers accounted for 23 percent of new auto loans in the fourth quarter of 2011, up from 17 percent in the same period of 2009.
The problem with the sub-prime space is that those risky borrowers almost never say "no" when lenders are willing to finance a purchase. Far too many people have a habitual need to have "stuff" - usually the newest and priciest they can buy. Hence, the debt spiral continues until folks collapse under the weight of bills they can't afford. In response, lenders begin to cry for help. The next thing you know, here comes the Federal Reserve with yet another financial institution rescue package in hand, courtesy of the American taxpayer.
This ugly cycle almost always begins and ends the same way. Is this sort of financial activity indicative of a healthy economy? I think we all know the answer to that.
Eliminating the Competition: Facebook-Style
The media is abuzz about Facebook's just-announced acquisition of photo-sharing app company Instagram for $1 billion. The price tag shocked many who can't believe the company (Instagram) was not generating any revenue (yes, zero revenue), but had 30 million users and counting. You see, the big theme right now on Wall Street is social media and mobile apps. Sharing photos is a huge part of this equation, with as much of two-thirds of users' activity on Facebook dedicated to interacting with photos.
So, many analysts believe Facebook needed to make acquisition, if only to eliminate a potential threat to its business. Don't be surprised to see many more threats pop up along the way, as scores of highly-funded VC-backed startups are still in line on the investment hype runway.
The most bullish onlookers say that Facebook's Instagram purchase reminds them of Google's $1.65 billion all-stock acquisition of YouTube back in 2006. At the time, YouTube had essentially zero revenue. Since then, Google has been successful in monetizing the service with ads. For Facebook, monetizing Instagram won't be so easy.
In the end, will the move make sense? For the VC's and founders of Instagram, the deal is a no-brainer. But at some point, profits and revenue will be the ultimate measuring stick.
17 Money Mistakes People Make (Part 2)
Continuing yesterday's list of common money excuses, with my response to them below…
Excuse #7 - "Old cars just aren't safe."
My Response: This is where having a good and trusting mechanic can pay big dividends (pun intended). Stay up on your regular oil & filter changes. State inspection regulations have become less strict so more cars are passing, but don't let this fool you into thinking you can skip car maintenance. Leasing cars is a great win for car dealers, but generally not for most consumers.
Excuse #8 - "I'll start my budget next month."
My Response: Procrastination is a big enemy of the investor. The "budget" word may not be too sexy, but there are great sites out there today that make the task a bit less of a drag. Mint.com is one of the more popular places to check out.
Excuse #9 - "I work hard so I deserve to have it!"
My Response: Nothing wrong with that. Just work a bit harder if you want the finest things in life and make sure you are earning enough money that the spending doesn't create a big hole.
Excuse #10 - "I want my kids to have it better than I did."
My Response: When it comes to education, definitely. But other material things are just that and will not make your kids love you more. Ask most any parent and they will agree.
Excuse #11 - "It's cheaper to eat out than eat at home."
My Response: The better answer may be that is is much more fun to eat out, but certainly not cheaper in most cases. There's nothing wrong with learning to work your way around a kitchen or even reach for a box of cereal or TV dinner once in a while if time constraints kick in.
Excuse #12 - "I'll save next year when I'm making more money."
My Response: There is no better time to start saving/investing than when you actually have a job. For many, this excuse can be the most deadliest when it comes to building wealth. Everyone knows the older you get, the more expenses you incur (getting married, having kids, vacations, cars, etc.).
An Important Note Regarding the Best Dividend Stocks List
We want to make sure everyone understands that the stocks on our Best Dividend Stocks List are the names we currently like for new investor capital, regardless of what date the stock was first recommended on. If and when a stock is removed from the list, we will clearly state whether the stock should be sold (which is rare but occasionally will happen), or simply held in one's account until we see a better entry point or catalyst.
And here's one last thing to remember about what we do here at Dividend.com: it's not just the names that we recommend that can help you build wealth, but also the things we try to steer you away from that are just as important. Forget about speculative or penny stocks, chasing unprofitable IPOs, and listening to the manic talking heads in the business media!
Our Beat The Markets with Dividend Stocks eBook Has Arrived!
We just debuted our brand new 275-page eBook, exclusively on Dividend.com! In this digital-only book, we look ahead to 2012 and the main factors that could affect dividend investors. A $39.95 value, the eBook is a free download for paid Dividend.com Premium subscribers.
Beat The Markets with Dividend Stocks contains a full economic forecast for 2012, including in-depth analysis on 65 of the biggest dividend stocks out there. It's a great way to get prepared for your investing next year! So head over to the Dividend.com Premium homepage now to download your copy.
A Dividend Capture Strategy for Active Investors
We now offer complete U.S. dividend data for all Dividend.com Premium members, so anyone that focuses on "Dividend Capture" trading strategies should have plenty of good stuff to research each day. Just check our enhanced Ex-Dividend Calendar , which is the best in the business, to search for upcoming payouts.
Speaking of dividend capture, Dividend.com Premium members can also access a 9-page report we published on the essential elements to any successful dividend capture strategy. Be sure to check it out here on the Premium homepage .
Thanks for reading everybody. I'll see you tomorrow!
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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All it took for the markets to get back some of yesterday's selling was a surprise earnings beat from Dow component Alcoa ( AA ). Elsewhere, Wall Street analyst upgrades helped boost stocks like Boeing ( BA ), BB&T ( BBT ), Las Vegas Sands ( LVS ), and United Technologies ( UTX ) in today's early pop. On the flipside, bad earnings-related forecasts out of Nokia ( NOK ) ( read more ) and Computer Sciences ( CSC ) ( more here ) had those two companies struggling amid today's rally.
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All it took for the markets to get back some of yesterday's selling was a surprise earnings beat from Dow component Alcoa ( AA ). Financial Institutions Back to Their Old (Predatory) Ways The New York Times had an interesting article out this morning talking about credit card lenders moving back into the sub-prime borrowers' space. 17 Money Mistakes People Make (Part 2) Continuing yesterday's list of common money excuses, with my response to them below… Excuse #7 - "Old cars just aren't safe."
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All it took for the markets to get back some of yesterday's selling was a surprise earnings beat from Dow component Alcoa ( AA ). 17 Money Mistakes People Make (Part 2) Continuing yesterday's list of common money excuses, with my response to them below… Excuse #7 - "Old cars just aren't safe." An Important Note Regarding the Best Dividend Stocks List We want to make sure everyone understands that the stocks on our Best Dividend Stocks List are the names we currently like for new investor capital, regardless of what date the stock was first recommended on.
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All it took for the markets to get back some of yesterday's selling was a surprise earnings beat from Dow component Alcoa ( AA ). Dividend investors could see some new names come on to our radar if the markets overreact on the negative side to upcoming earnings reports. The most bullish onlookers say that Facebook's Instagram purchase reminds them of Google's $1.65 billion all-stock acquisition of YouTube back in 2006.
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1638.0
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2012-04-11 00:00:00 UTC
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One Important Question this Earnings Season - Real Time Insight
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https://www.nasdaq.com/articles/one-important-question-earnings-season-real-time-insight-2012-04-11
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Earnings season unofficially kicked off Tuesday night with an encouraging report from Alcoa ( AA ). But things don't really get rolling until next week.
This earnings season is an important one in many ways. One of the big questions this quarter is: will strength in the U.S. economy offset weakness in Europe and China?
One of the reasons for the stock market rally in the first quarter of this year was because of improving domestic economic data despite weakness from overseas. Now we will see how individual companies are faring.
As for Alcoa, shares soared after the company delivered better than expected results. The reason: strength in the U.S. offset weakness in China and Europe. But they're hardly a bellwether for the overall economy.
So do you think strong domestic results will continue to overshadow softness abroad for the overall market? What other important questions will be answered this earnings season? Chime in below.
ALCOA INC ( AA ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Earnings season unofficially kicked off Tuesday night with an encouraging report from Alcoa ( AA ). ALCOA INC ( AA ): Free Stock Analysis Report To read this article on Zacks.com click here. One of the reasons for the stock market rally in the first quarter of this year was because of improving domestic economic data despite weakness from overseas.
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Earnings season unofficially kicked off Tuesday night with an encouraging report from Alcoa ( AA ). ALCOA INC ( AA ): Free Stock Analysis Report To read this article on Zacks.com click here. One of the big questions this quarter is: will strength in the U.S. economy offset weakness in Europe and China?
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Earnings season unofficially kicked off Tuesday night with an encouraging report from Alcoa ( AA ). ALCOA INC ( AA ): Free Stock Analysis Report To read this article on Zacks.com click here. One of the big questions this quarter is: will strength in the U.S. economy offset weakness in Europe and China?
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Earnings season unofficially kicked off Tuesday night with an encouraging report from Alcoa ( AA ). ALCOA INC ( AA ): Free Stock Analysis Report To read this article on Zacks.com click here. One of the big questions this quarter is: will strength in the U.S. economy offset weakness in Europe and China?
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1639.0
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2012-04-10 00:00:00 UTC
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These 4 Indicators Could Tell You Where the Market is Heading Next
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AA
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https://www.nasdaq.com/articles/these-4-indicators-could-tell-you-where-market-heading-next-2012-04-10
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When aluminum producer Alcoa ( AA ) reports first-quarter results after the bell on Tuesday, April 10, earnings season will officially be underway. What happens to stocks for the next two to three weeks will almost exclusively be a function of what major companies have to say about current business trends. Few investors will have time to focus on anything else -- but they should. Behind the scenes, a steady release of economic data -- especially regarding consumer, business and investor sentiment -- will dictate the trading mood well beyond the current earnings season.
We just got a clear read on how small businesses are feeling. The NFIB Small Business OptimismIndex , which I focused on last month , was released on April 10. The news is sobering. After six straight monthly gains, theindex fell in March, thanks to a pullback in nine of the 10 components that make up the index . And the analysts at NFIB deliver a real wake-upcall after parsing the data:
"The mood of owners is subdued -- they just can't seem to shake off the uncertainties out there, and confidence that the management team in Washington can deal with the effectively is flagging. What we saw in March is painfully familiar -- this was the same pattern of growth followed by months of decline from 2011. History appears to be repeating itself -- and not in a good way."
As I wrote a month ago, "this index actually spiked to 94 last January and February and then dropped back into the 80s. If you sold stocks in April after seeing the NFIB pullback in March 2011, then you would have avoided the heavy losses the market produced later that summer."
The current reading of 92.5 isn't a disaster but the trend needs to be watched. Here's what else you should keep an eye on in coming weeks.
1. Mutual-fund inflows
One of the key factors behind the recent rally has been a decision by mutual fund and hedge fund managers to put their idle cash into play. For mutual fund managers, the move was a bit curious, as funds flowed out of domestic stock funds in the first quarter due to residual wariness by individual investors. That means mutual funds have used up much of their latent firepower, unless they get more money to put to work.
Will that happen? History is promising. After people send off their tax returns, oftentimes their next move is to replenish their retirement plans, so the second half of April and May are usually periods of net inflows to mutual funds. The key question: Will investors earmark those funds for equity funds and exchange-traded funds (ETFs) or bond mutual funds and ETFs?
You can track the weekly flows here . According to Lipper, bonds are getting most of the love right now, as many investors failed to be seduced by the market's recent upturn.
2. Individual investor sentiment
There are some investors that remain quite bullish . According to the most recent weekly snapshot of investor sentiment from the American Association of Individual Investors (AAII), bulls outnumber bears by a four-to-three margin . That shouldn't make you bullish, however, as investor sentiment actually tends to negatively correlate with future market direction. In fact, I would love to see this indicator turn starkly negative, which would be great for stocks, as I wrote about back in 2010 .
Bulls really predominated this survey in early February of this year, casting more than 50% of the votes (while bears had just 20%). That bullish reading stands at just 38% (as of April 4), so we may be seeing a move towards a "stocks are hated" backdrop.
3. What about the banks?
Professional money managers often seek out the direction of banking stocks before making any buy or sell decisions. That's because this group tends to provide a read on broader economic trends.
A quick look at regional banks in this chart should give pause...
4. Consumer sentiment
Twice a month, pollsters at the University of Michigancall 500 households to ask about their personal sense of well-being and their opinion on where the economy is headed. The latest reading, which will be released this Friday, April 13, could be a tough one because it comes on the heels of last Friday's underwhelming monthly employment report.
The consumer sentiment reading stood at 77.1 at the end of March, which was among the highest readings in four years. (The index peaked at 77.5 in early 2011 and then slumped badly into the summer, dropping to a low of 55.7 last August.)
This time around, economists are all over the map, with some expecting a pretty sharp pullback to 74, which would be the lowest of 2012 so far, while the most bullish economists anticipate a move up to around 78.5.
Risks to Consider: It's crucial that you not fixate on one data point to dictate your next move. Economic data are notoriously erratic, and the trend is more important than any single reading.
Action to Take --> Treat these data points as part of a mosaic. If all of them are pointing in the same direction, then you need to take heed. Friday's employment report was surely sobering, as was the just-released NFIB Small Business Optimism Index. Even as you track earnings season, keep an eye on these indicators and plan accordingly.
[ Note: If you haven't heard about this unique opportunity, then I want to tell you about it now. StreetAuthority has staked me with $100,000 of real money to invest in my absolute best ideas. For a limited time, you'll be able to follow along with me completely free. Go here to learn more .]
-- David Sterman
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When aluminum producer Alcoa ( AA ) reports first-quarter results after the bell on Tuesday, April 10, earnings season will officially be underway. According to the most recent weekly snapshot of investor sentiment from the American Association of Individual Investors (AAII), bulls outnumber bears by a four-to-three margin . StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios.
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When aluminum producer Alcoa ( AA ) reports first-quarter results after the bell on Tuesday, April 10, earnings season will officially be underway. According to the most recent weekly snapshot of investor sentiment from the American Association of Individual Investors (AAII), bulls outnumber bears by a four-to-three margin . StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios.
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When aluminum producer Alcoa ( AA ) reports first-quarter results after the bell on Tuesday, April 10, earnings season will officially be underway. According to the most recent weekly snapshot of investor sentiment from the American Association of Individual Investors (AAII), bulls outnumber bears by a four-to-three margin . StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios.
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When aluminum producer Alcoa ( AA ) reports first-quarter results after the bell on Tuesday, April 10, earnings season will officially be underway. According to the most recent weekly snapshot of investor sentiment from the American Association of Individual Investors (AAII), bulls outnumber bears by a four-to-three margin . StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios.
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1640.0
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2012-04-10 00:00:00 UTC
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After Hours Most Active for Apr 10, 2012 : WIN, AA, BAC, CSCO, AEP, QCOM, STD, QQQ, GE, SVU, MSFT, AMAT
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AA
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https://www.nasdaq.com/articles/after-hours-most-active-apr-10-2012-win-aa-bac-csco-aep-qcom-std-qqq-ge-svu-msft-amat-2012
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The NASDAQ 100 After Hours Indicator is up 5.2 to 2,700.32. The total After hours volume is currently 31,185,133 shares traded.
The following are the most active stocks for the after hours session:
Windstream Corporation ( WIN ) is unchanged at $11.21, with 6,124,241 shares traded. As reported in the last short interest update the days to cover for WIN is 7.444757; this calculation is based on the average trading volume of the stock.
Alcoa Inc. ( AA ) is +0.5299 at $9.85, with 4,321,735 shares traded. RTT News Reports: Stocks Fall Sharply On Economic Worries, Dow Hits 2-Month Low - U.S. Commentary
Bank of America Corporation ( BAC ) is +0.06 at $8.60, with 2,884,511 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2012. The consensus EPS forecast is $0.12. BAC's current last sale is 86% of the target price of $10.
Cisco Systems, Inc. ( CSCO ) is +0.08 at $19.63, with 1,901,899 shares traded. As reported by Zacks, the current mean recommendation for CSCO is in the "buy range".
American Electric Power Company, Inc. ( AEP ) is -0.01 at $37.21, with 1,756,025 shares traded. AEP's current last sale is 88.6% of the target price of $42.
QUALCOMM Incorporated ( QCOM ) is -0.0612 at $66.16, with 1,754,903 shares traded. As reported by Zacks, the current mean recommendation for QCOM is in the "buy range".
Banco Santander, S.A. ( STD ) is +0.08 at $6.59, with 1,504,540 shares traded., following a 52-week high recorded in today's regular session.
PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.15 at $66.28, with 876,518 shares traded. This represents a 32.75% increase from its 52 Week Low.
General Electric Company ( GE ) is +0.0103 at $18.75, with 820,414 shares traded. As reported by Zacks, the current mean recommendation for GE is in the "buy range".
SuperValu Inc. ( SVU ) is -0.0894 at $6.04, with 787,258 shares traded. RTT News Reports: Stocks Fall Sharply On Economic Worries, Dow Hits 2-Month Low - U.S. Commentary
Microsoft Corporation ( MSFT ) is +0.07 at $30.54, with 750,927 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Applied Materials, Inc. ( AMAT ) is -0.0349 at $11.72, with 641,630 shares traded. AMAT's current last sale is 80.79% of the target price of $14.5.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) is +0.5299 at $9.85, with 4,321,735 shares traded. As reported in the last short interest update the days to cover for WIN is 7.444757; this calculation is based on the average trading volume of the stock. RTT News Reports: Stocks Fall Sharply On Economic Worries, Dow Hits 2-Month Low - U.S. Commentary Bank of America Corporation ( BAC ) is +0.06 at $8.60, with 2,884,511 shares traded.
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Alcoa Inc. ( AA ) is +0.5299 at $9.85, with 4,321,735 shares traded. The total After hours volume is currently 31,185,133 shares traded. RTT News Reports: Stocks Fall Sharply On Economic Worries, Dow Hits 2-Month Low - U.S. Commentary Bank of America Corporation ( BAC ) is +0.06 at $8.60, with 2,884,511 shares traded.
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Alcoa Inc. ( AA ) is +0.5299 at $9.85, with 4,321,735 shares traded. The following are the most active stocks for the after hours session: Windstream Corporation ( WIN ) is unchanged at $11.21, with 6,124,241 shares traded. RTT News Reports: Stocks Fall Sharply On Economic Worries, Dow Hits 2-Month Low - U.S. Commentary Bank of America Corporation ( BAC ) is +0.06 at $8.60, with 2,884,511 shares traded.
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Alcoa Inc. ( AA ) is +0.5299 at $9.85, with 4,321,735 shares traded. The following are the most active stocks for the after hours session: Windstream Corporation ( WIN ) is unchanged at $11.21, with 6,124,241 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2012.
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1641.0
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2012-04-10 00:00:00 UTC
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Zacks Bull and Bear of the Day Highlights: Aetna, Citi Trends, Alcoa, AOL and Microsoft - Press Releases
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AA
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https://www.nasdaq.com/articles/zacks-bull-and-bear-of-the-day-highlights%3A-aetna-citi-trends-alcoa-aol-and-microsoft-press
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For Immediate Release
Chicago, IL - April 10, 2012 - Zacks Equity Research highlights Aetna Inc. ( AET ) as the Bull of the Day and Citi Trends, Inc. ( CTRN ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Alcoa ( AA ), AOL ( AOL ) and Microsoft ( MSFT ).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2678 .
Here is a synopsis of all five stocks:
Bull of the Day :
We reiterate our outperform rating on Aetna Inc. ( AET ) prior to the release of its first-quarter earnings scheduled on April 25, 2012, to reflect its better-than-average operating fundamentals and expected strong performance in 2012.
The company ended the year 2011 with better performances, demonstrating growth in membership, revenues, operating margins and cash flow on the back of low medical utilization, pricing discipline, medical cost management strategies and cost controls. In 2011, the company made strategic investments in acquisitions and technologies, with the intent to extend its core health business and also to capitalize on exciting new consumer as well as provider opportunities emerging in the marketplace.
Aetna's strong operating results and significant capital generation will allow it to continue investing for the future. We expect the company to keep performing better in 2012. The Zacks Consensus estimates earnings of $1.39 per share for first quarter 2012, which translates into an expected earnings growth of 10.5% year over year.
Bear of the Day :
Citi Trends, Inc.'s ( CTRN ) falling comparable store sales, coupled with rising cost of goods sold and operating expenses, battered fourth-quarter 2011 results. The company incurred a quarterly loss of $0.18 per share, falling drastically from the year-ago quarter earnings of $0.64 per share. The results, however, bettered the Zacks Consensus Estimate of a loss of $0.20 per share.
Further, due to uncertainty hovering around sales, given the global economic unrest, the company decided not to provide any guidelines unless it finds any near-term catalysts to drive sales. Intense competition from other retailers, seasonal nature of business and risks associated with sourcing merchandise from developing countries may further undermine the company's future growth prospects.
Currently, we are maintaining a long-term Underperform recommendation on the stock. Our target price of $10.00 is based on P/CF (price-to-cash flow) multiple of 8.27x.
Latest Posts on the Zacks Analyst Blog :
Jobs & the Market: Weather or Not?
In the run-up to the March jobs report, a number of economic forecasters had started wondering about the extent of temporary contribution from this year's unusually warm winter. Even Ben Bernanke found the labor market strength of the last few months difficult to reconcile with the relatively slow pace of underlying economic improvement. We will know for sure only after we get the April jobs numbers in about three week, but weather seems to be the most plausible explanation for March's unexpected under-200K labor market reading.
The government's monthly household survey (the unemployment rate comes out of this report) lists the number of people not at work because of weather. The non-seasonally adjusted March reading showed an 82K drop on this count, significantly below the historical level for this month. The same number for the preceding three months was above trend compared to history, meaning that the weather gains of the pre-March months likely got reversed in March. The persistent downtrend in weekly jobless claims and other labor market indicators over the last many months would argue against a fundamental weakness in underlying momentum.
In corporate news, the first quarter earnings season gets underway unofficially on Tuesday with Alcoa's ( AA ) report, with aggregate earnings growth expectations at their lowest level since the start of earnings recovery in 2009. Barring unusual negative surprises, I would expect this earnings season to be largely uneventful. Given the low hurdle rates as a result of subdued expectations, the focus will be management guidance for the coming quarter, particularly with how they see the Chinese and European situation impacting their profitability.
In other news, shares of AOL ( AOL ) will be in the spotlight today after the company announced the sale of over 800 patents to Microsoft ( MSFT ) for $1.06 billion in cash.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649 .
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=7158 .
About Zacks
Zacks.com is a property of Zacks Investment Research , Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT Len knew he could find patterns instock market datathat would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank , which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment
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ALCOA INC ( AA ): Free Stock Analysis Report
AETNA INC-NEW ( AET ): Free Stock Analysis Report
AOL INC ( AOL ): Free Stock Analysis Report
CITI TRENDS INC ( CTRN ): Free Stock Analysis Report
MICROSOFT CORP ( MSFT ): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, Zacks Equity Research provides analysis on Alcoa ( AA ), AOL ( AOL ) and Microsoft ( MSFT ). In corporate news, the first quarter earnings season gets underway unofficially on Tuesday with Alcoa's ( AA ) report, with aggregate earnings growth expectations at their lowest level since the start of earnings recovery in 2009. 9339 support@zacks.com http://www.zacks.com ALCOA INC ( AA ): Free Stock Analysis Report AETNA INC-NEW ( AET ): Free Stock Analysis Report AOL INC ( AOL ): Free Stock Analysis Report CITI TRENDS INC ( CTRN ): Free Stock Analysis Report MICROSOFT CORP ( MSFT ): Free Stock Analysis Report To read this article on Zacks.com click here.
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In addition, Zacks Equity Research provides analysis on Alcoa ( AA ), AOL ( AOL ) and Microsoft ( MSFT ). 9339 support@zacks.com http://www.zacks.com ALCOA INC ( AA ): Free Stock Analysis Report AETNA INC-NEW ( AET ): Free Stock Analysis Report AOL INC ( AOL ): Free Stock Analysis Report CITI TRENDS INC ( CTRN ): Free Stock Analysis Report MICROSOFT CORP ( MSFT ): Free Stock Analysis Report To read this article on Zacks.com click here. In corporate news, the first quarter earnings season gets underway unofficially on Tuesday with Alcoa's ( AA ) report, with aggregate earnings growth expectations at their lowest level since the start of earnings recovery in 2009.
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9339 support@zacks.com http://www.zacks.com ALCOA INC ( AA ): Free Stock Analysis Report AETNA INC-NEW ( AET ): Free Stock Analysis Report AOL INC ( AOL ): Free Stock Analysis Report CITI TRENDS INC ( CTRN ): Free Stock Analysis Report MICROSOFT CORP ( MSFT ): Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Zacks Equity Research provides analysis on Alcoa ( AA ), AOL ( AOL ) and Microsoft ( MSFT ). In corporate news, the first quarter earnings season gets underway unofficially on Tuesday with Alcoa's ( AA ) report, with aggregate earnings growth expectations at their lowest level since the start of earnings recovery in 2009.
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In addition, Zacks Equity Research provides analysis on Alcoa ( AA ), AOL ( AOL ) and Microsoft ( MSFT ). In corporate news, the first quarter earnings season gets underway unofficially on Tuesday with Alcoa's ( AA ) report, with aggregate earnings growth expectations at their lowest level since the start of earnings recovery in 2009. 9339 support@zacks.com http://www.zacks.com ALCOA INC ( AA ): Free Stock Analysis Report AETNA INC-NEW ( AET ): Free Stock Analysis Report AOL INC ( AOL ): Free Stock Analysis Report CITI TRENDS INC ( CTRN ): Free Stock Analysis Report MICROSOFT CORP ( MSFT ): Free Stock Analysis Report To read this article on Zacks.com click here.
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1642.0
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2012-04-10 00:00:00 UTC
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Ahead of Wall Street - April 10, 2012 - Ahead of Wall Street
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AA
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https://www.nasdaq.com/articles/ahead-wall-street-april-10-2012-ahead-wall-street-2012-04-10
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nan
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Tuesday, April 10, 2012
With nothing major on the economic front, market action today will likely reflect the loss of momentum following Friday's jobs surprise. But the overall tone should be a lot less negative than what we encountered on Monday as market participants look ahead to the start of the first quarter reporting season with Alcoa's ( AA ) after the close today.
The economic docket is relatively on the lighter side this week, with the Fed's Beige Book on Wednesday, Trade Deficit on Thursday, and CPI on Friday as the only major reports. Thursday's Jobless Claims data could be important, as it will be the first labor market reading after Friday's non-farm payroll miss. I don't envision any sharp moves in the market in the coming days, though an air of tentativeness will likely prevail as the market sizes up the underlying momentum in the labor market and the odds of further Fed action.
Worries about Spain's ability to control its deficit situation have revived following last week's poor bond auction. This has helped reverse the downtrend in the country's market interest rates, with benchmark government bond yields reaching their highest level of the year. Italian bond yields have started moving up in solidarity with Spain in recent days as well, though we must concede that interest rates for both countries remain below late last year's dangerous levels. The situation in Spain may not have reached the Greek levels yet, but it is nevertheless a reminder to investors that Europe remains far from settled.
Alcoa's results later today may not give us a good preview of first quarter results for the corporate sector as a whole. But we will see Google's (GOOG) results on Thursday and J.P.Morgan ( JPM ) and Wells Fargo's ( WFC ) on Friday. It will be interesting to see continuation of last quarter's trend of positive trend in banks' loan portfolios. These specific reports aside, I don't envision any major negative surprises coming out of this reporting season given the fairly subdued expectations.
More so than growth rates and beats, the focus will be on guidance and outlook, as expectations for the coming quarters have not come down as much as they have for the first quarter. In fact, expectations for the first quarter are the lowest of any quarter this year, with growth expected to improve in the back half of the year. While the domestic economic scene appears promising enough, it is far from clear at this stage if it will prove to be enough to offset the unfavorable developments in Europe and China. Bottom line, while I don't expect any major negative surprises from the reporting season, it may help in better anchoring expectations for the remainder of the year. And those estimate revisions will most likely be to the down side.
Sheraz Mian
Director of Research
ALCOA INC ( AA ): Free Stock Analysis Report
GOOGLE INC-CL A ( GOOG ): Free Stock Analysis Report
JPMORGAN CHASE ( JPM ): Free Stock Analysis Report
WELLS FARGO-NEW ( WFC ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But the overall tone should be a lot less negative than what we encountered on Monday as market participants look ahead to the start of the first quarter reporting season with Alcoa's ( AA ) after the close today. Sheraz Mian Director of Research ALCOA INC ( AA ): Free Stock Analysis Report GOOGLE INC-CL A ( GOOG ): Free Stock Analysis Report JPMORGAN CHASE ( JPM ): Free Stock Analysis Report WELLS FARGO-NEW ( WFC ): Free Stock Analysis Report To read this article on Zacks.com click here. The economic docket is relatively on the lighter side this week, with the Fed's Beige Book on Wednesday, Trade Deficit on Thursday, and CPI on Friday as the only major reports.
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Sheraz Mian Director of Research ALCOA INC ( AA ): Free Stock Analysis Report GOOGLE INC-CL A ( GOOG ): Free Stock Analysis Report JPMORGAN CHASE ( JPM ): Free Stock Analysis Report WELLS FARGO-NEW ( WFC ): Free Stock Analysis Report To read this article on Zacks.com click here. But the overall tone should be a lot less negative than what we encountered on Monday as market participants look ahead to the start of the first quarter reporting season with Alcoa's ( AA ) after the close today. This has helped reverse the downtrend in the country's market interest rates, with benchmark government bond yields reaching their highest level of the year.
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Sheraz Mian Director of Research ALCOA INC ( AA ): Free Stock Analysis Report GOOGLE INC-CL A ( GOOG ): Free Stock Analysis Report JPMORGAN CHASE ( JPM ): Free Stock Analysis Report WELLS FARGO-NEW ( WFC ): Free Stock Analysis Report To read this article on Zacks.com click here. But the overall tone should be a lot less negative than what we encountered on Monday as market participants look ahead to the start of the first quarter reporting season with Alcoa's ( AA ) after the close today. I don't envision any sharp moves in the market in the coming days, though an air of tentativeness will likely prevail as the market sizes up the underlying momentum in the labor market and the odds of further Fed action.
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But the overall tone should be a lot less negative than what we encountered on Monday as market participants look ahead to the start of the first quarter reporting season with Alcoa's ( AA ) after the close today. Sheraz Mian Director of Research ALCOA INC ( AA ): Free Stock Analysis Report GOOGLE INC-CL A ( GOOG ): Free Stock Analysis Report JPMORGAN CHASE ( JPM ): Free Stock Analysis Report WELLS FARGO-NEW ( WFC ): Free Stock Analysis Report To read this article on Zacks.com click here. The economic docket is relatively on the lighter side this week, with the Fed's Beige Book on Wednesday, Trade Deficit on Thursday, and CPI on Friday as the only major reports.
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1643.0
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2012-04-10 00:00:00 UTC
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Market Looks Ahead to Earnings - Analyst Blog
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AA
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https://www.nasdaq.com/articles/market-looks-ahead-earnings-analyst-blog-2012-04-10
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nan
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nan
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With nothing major on the economic front, market action today will likely reflect the loss of momentum following Friday's jobs surprise. But the overall tone should be a lot less negative than what we encountered on Monday as market participants look ahead to the start of the first quarter reporting season with Alcoa's ( AA ) after the close today.
The economic docket is relatively on the lighter side this week, with the Fed's Beige Book on Wednesday, Trade Deficit on Thursday, and CPI on Friday as the only major reports. Thursday's Jobless Claims data could be important, as it will be the first labor market reading after Friday's non-farm payroll miss.
I don't envision any sharp moves in the market in the coming days, though an air of tentativeness will likely prevail as the market sizes up the underlying momentum in the labor market and the odds of further Fed action.
Worries about Spain's ability to control its deficit situation have revived following last week's poor bond auction. This has helped reverse the downtrend in the country's market interest rates, with benchmark government bond yields reaching their highest level of the year. Italian bond yields have started moving up in solidarity with Spain in recent days as well, though we must concede that interest rates for both countries remain below late last year's dangerous levels. The situation in Spain may not have reached the Greek levels yet, but it is nevertheless a reminder to investors that Europe remains far from settled.
Alcoa's results later today may not give us a good preview of first quarter results for the corporate sector as a whole. But we will see Google's ( GOOG ) results on Thursday and J.P.Morgan ( JPM ) and Wells Fargo's ( WFC ) on Friday. It will be interesting to see continuation of last quarter's trend of positive trend in banks' loan portfolios. These specific reports aside, I don't envision any major negative surprises coming out of this reporting season given the fairly subdued expectations.
More so than growth rates and beats, the focus will be on guidance and outlook, as expectations for the coming quarters have not come down as much as they have for the first quarter. In fact, expectations for the first quarter are the lowest of any quarter this year, with growth expected to improve in the back half of the year.
While the domestic economic scene appears promising enough, it is far from clear at this stage if it will prove to be enough to offset the unfavorable developments in Europe and China.
Bottom line: while I don't expect any major negative surprises from the reporting season, it may help in better anchoring expectations for the remainder of the year. And those estimate revisions will most likely be to the downside.
ALCOA INC ( AA ): Free Stock Analysis Report
GOOGLE INC-CL A ( GOOG ): Free Stock Analysis Report
JPMORGAN CHASE ( JPM ): Free Stock Analysis Report
WELLS FARGO-NEW ( WFC ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But the overall tone should be a lot less negative than what we encountered on Monday as market participants look ahead to the start of the first quarter reporting season with Alcoa's ( AA ) after the close today. ALCOA INC ( AA ): Free Stock Analysis Report GOOGLE INC-CL A ( GOOG ): Free Stock Analysis Report JPMORGAN CHASE ( JPM ): Free Stock Analysis Report WELLS FARGO-NEW ( WFC ): Free Stock Analysis Report To read this article on Zacks.com click here. The economic docket is relatively on the lighter side this week, with the Fed's Beige Book on Wednesday, Trade Deficit on Thursday, and CPI on Friday as the only major reports.
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ALCOA INC ( AA ): Free Stock Analysis Report GOOGLE INC-CL A ( GOOG ): Free Stock Analysis Report JPMORGAN CHASE ( JPM ): Free Stock Analysis Report WELLS FARGO-NEW ( WFC ): Free Stock Analysis Report To read this article on Zacks.com click here. But the overall tone should be a lot less negative than what we encountered on Monday as market participants look ahead to the start of the first quarter reporting season with Alcoa's ( AA ) after the close today. This has helped reverse the downtrend in the country's market interest rates, with benchmark government bond yields reaching their highest level of the year.
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ALCOA INC ( AA ): Free Stock Analysis Report GOOGLE INC-CL A ( GOOG ): Free Stock Analysis Report JPMORGAN CHASE ( JPM ): Free Stock Analysis Report WELLS FARGO-NEW ( WFC ): Free Stock Analysis Report To read this article on Zacks.com click here. But the overall tone should be a lot less negative than what we encountered on Monday as market participants look ahead to the start of the first quarter reporting season with Alcoa's ( AA ) after the close today. I don't envision any sharp moves in the market in the coming days, though an air of tentativeness will likely prevail as the market sizes up the underlying momentum in the labor market and the odds of further Fed action.
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But the overall tone should be a lot less negative than what we encountered on Monday as market participants look ahead to the start of the first quarter reporting season with Alcoa's ( AA ) after the close today. ALCOA INC ( AA ): Free Stock Analysis Report GOOGLE INC-CL A ( GOOG ): Free Stock Analysis Report JPMORGAN CHASE ( JPM ): Free Stock Analysis Report WELLS FARGO-NEW ( WFC ): Free Stock Analysis Report To read this article on Zacks.com click here. The situation in Spain may not have reached the Greek levels yet, but it is nevertheless a reminder to investors that Europe remains far from settled.
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1644.0
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2012-04-10 00:00:00 UTC
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Q1 Preview: Lagging Demand Forces Alcoa (AA) into Production Cuts, Limited Rebound In Sight
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AA
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https://www.nasdaq.com/articles/q1-preview-lagging-demand-forces-alcoa-aa-production-cuts-limited-rebound-sight-2012-04-10
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nan
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nan
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Alcoa Inc. ( AA ) shares are trading down nearly 2 percent ahead of the company's first-quarter 2012 report, generally regarded as the unofficial kickoff to earnings season. The figures are expected out after the market closes Tuesday.
The Street is looking for Alcoa to produce a loss of 4 cents per share on revenue of $5.77 billion. During the same quarter last year, Alcoa reported earnings of 28 cents per share and revenue of $5.96 billion. Over the last six quarters, Alcoa has managed to miss Street expectations by an average of 21 percent, tipped off with its second-quarter report last year.
In April, Alcoa said it was cutting alumina production by 390,000 metric tons, allowing production to come more in-line with smelter curtailments.
Through the quarter, Alcoa shares gained 16.2 percent to $10.02 at the end of March. This is a nice pop after Alcoa finished 43 percent lower in 2011. Over the last 52-week time frame, Alcoa shares have traded within a range of $8.45 to $18.19.
Analysts are fairly even on the prospects for Alcoa over the next year, with eight having a Buy rating, 10 at Hold, and three with a Sell-equivalent call on the stock. The analyst price target average is $11.75, ranging from $8 to $18.
Analyst Comments
Goldman Sachs sees a loss of 3 cents per share, which is ahead of the market. The firm is focusing its attention on the slowdown in Europe, where Alcoa derives about 20 percent of its total top-line results. Goldman sees uncertainty and slow demand in Europe as well as low aluminum prices more than offsetting any positive sentiment with Alcoa's position in the aerospace industry as well as aluminum-alumina price decoupling.
The firm has a Neutral rating and $11 target on the shares.
Deutsche Bank sees Alcoa issuing a loss of 5 cents per share in the quarter. Earnings will be negatively impacted by $30 million in raw material and maintenance expenses in alumina, $10 million in foreign exchange, and $25 million in energy-related costs in Primary metals.
The firm commented: "At 1Q12E EBITDA rates and without a significant recovery in aluminum prices, we believe Alcoa may resort to ~6% equity issuance in 2012 to fund a $650m pension gap, otherwise leverage will rise." Aluminum pricing in the quarter should come in at $1.12 per pound, which is a one cent increase in the benchmark LME price more than offset by weaker permia of 14 cents per pound.
Deutsche expects Alcoa to provide an update on recent capacity cuts: "While 90k ton cut in Spanish smelters scheduled by 1H12, Union pressure has post-poned 150k ton Italian smelter cuts until end-2012. In addition, Alcoa has put its 190k tons Point Henry (Australia) smelter under review on rising costs/ strong AUD."
Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results within seconds of their release. You can also check out Alcoa's past performance at Streetinsider's Alcoa's Income Statement .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) shares are trading down nearly 2 percent ahead of the company's first-quarter 2012 report, generally regarded as the unofficial kickoff to earnings season. Over the last six quarters, Alcoa has managed to miss Street expectations by an average of 21 percent, tipped off with its second-quarter report last year. The firm commented: "At 1Q12E EBITDA rates and without a significant recovery in aluminum prices, we believe Alcoa may resort to ~6% equity issuance in 2012 to fund a $650m pension gap, otherwise leverage will rise."
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Alcoa Inc. ( AA ) shares are trading down nearly 2 percent ahead of the company's first-quarter 2012 report, generally regarded as the unofficial kickoff to earnings season. During the same quarter last year, Alcoa reported earnings of 28 cents per share and revenue of $5.96 billion. The analyst price target average is $11.75, ranging from $8 to $18.
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Alcoa Inc. ( AA ) shares are trading down nearly 2 percent ahead of the company's first-quarter 2012 report, generally regarded as the unofficial kickoff to earnings season. During the same quarter last year, Alcoa reported earnings of 28 cents per share and revenue of $5.96 billion. Deutsche Bank sees Alcoa issuing a loss of 5 cents per share in the quarter.
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Alcoa Inc. ( AA ) shares are trading down nearly 2 percent ahead of the company's first-quarter 2012 report, generally regarded as the unofficial kickoff to earnings season. The analyst price target average is $11.75, ranging from $8 to $18. Analyst Comments Goldman Sachs sees a loss of 3 cents per share, which is ahead of the market.
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1645.0
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2012-04-09 00:00:00 UTC
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Ahead of Wall Street - April 9, 2012 - Ahead of Wall Street
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AA
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https://www.nasdaq.com/articles/ahead-wall-street-april-9-2012-ahead-wall-street-2012-04-09
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nan
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nan
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Monday, April 9, 2012
Stocks will be struggling with a key question in today's trading action - was Friday's jobs miss a weather-related payback or a recurrence of a fundamental weakness along the lines what we encountered around this time in 2011 and 2010? I would say it's all weather, with the boost from the warm winter months getting reversed in March, but the overall positive trend line remaining in place. That said, the market's first reaction to the sub-par payroll reading will most likely be negative.
In the run-up to the March jobs report, a number of economic forecasters had started wondering about the extent of temporary contribution from this year's unusually warm winter. Even Ben Bernanke found the labor market strength of the last few months difficult to reconcile with the relatively slow pace of underlying economic improvement. We will know for sure only after we get the April jobs numbers in about three week, but weather seems to be the most plausible explanation for March's unexpected under-200K labor market reading.
The government's monthly household survey (the unemployment rate comes out of this report) lists the number of people not at work because of weather. The non-seasonally adjusted March reading showed an 82K drop on this count, significantly below the historical level for this month. The same number for the preceding three months was above trend compared to history, meaning that the weather gains of the pre-March months likely got reversed in March. The persistent downtrend in weekly jobless claims and other labor market indicators over the last many months would argue against a fundamental weakness in underlying momentum.
In corporate news, the first quarter earnings season gets underway unofficially on Tuesday with Alcoa's ( AA ) report, with aggregate earnings growth expectations at their lowest level since the start of earnings recovery in 2009. Barring unusual negative surprises, I would expect this earnings season to be largely uneventful. Given the low hurdle rates as a result of subdued expectations, the focus will be management guidance for the coming quarter, particularly with how they see the Chinese and European situation impacting their profitability.
In other news, shares of AOL ( AOL ) will be in the spotlight today after the company announced the sale of over 800 patents to Microsoft ( MSFT ) for $1.06 billion in cash.
Sheraz Mian
Director of Research
ALCOA INC ( AA ): Free Stock Analysis Report
AOL INC ( AOL ): Free Stock Analysis Report
MICROSOFT CORP ( MSFT ): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In corporate news, the first quarter earnings season gets underway unofficially on Tuesday with Alcoa's ( AA ) report, with aggregate earnings growth expectations at their lowest level since the start of earnings recovery in 2009. Sheraz Mian Director of Research ALCOA INC ( AA ): Free Stock Analysis Report AOL INC ( AOL ): Free Stock Analysis Report MICROSOFT CORP ( MSFT ): Free Stock Analysis Report To read this article on Zacks.com click here. Monday, April 9, 2012 Stocks will be struggling with a key question in today's trading action - was Friday's jobs miss a weather-related payback or a recurrence of a fundamental weakness along the lines what we encountered around this time in 2011 and 2010?
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Sheraz Mian Director of Research ALCOA INC ( AA ): Free Stock Analysis Report AOL INC ( AOL ): Free Stock Analysis Report MICROSOFT CORP ( MSFT ): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In corporate news, the first quarter earnings season gets underway unofficially on Tuesday with Alcoa's ( AA ) report, with aggregate earnings growth expectations at their lowest level since the start of earnings recovery in 2009.
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In corporate news, the first quarter earnings season gets underway unofficially on Tuesday with Alcoa's ( AA ) report, with aggregate earnings growth expectations at their lowest level since the start of earnings recovery in 2009. Sheraz Mian Director of Research ALCOA INC ( AA ): Free Stock Analysis Report AOL INC ( AOL ): Free Stock Analysis Report MICROSOFT CORP ( MSFT ): Free Stock Analysis Report To read this article on Zacks.com click here. The same number for the preceding three months was above trend compared to history, meaning that the weather gains of the pre-March months likely got reversed in March.
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In corporate news, the first quarter earnings season gets underway unofficially on Tuesday with Alcoa's ( AA ) report, with aggregate earnings growth expectations at their lowest level since the start of earnings recovery in 2009. Sheraz Mian Director of Research ALCOA INC ( AA ): Free Stock Analysis Report AOL INC ( AOL ): Free Stock Analysis Report MICROSOFT CORP ( MSFT ): Free Stock Analysis Report To read this article on Zacks.com click here. We will know for sure only after we get the April jobs numbers in about three week, but weather seems to be the most plausible explanation for March's unexpected under-200K labor market reading.
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1646.0
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2012-04-09 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Alcoa, Aluminum Corporation of China, Rio Tinto, BHP Billiton and AutoNation - Press Releases
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AA
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-alcoa-aluminum-corporation-of-china-rio-tinto-bhp
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nan
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nan
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For Immediate Release
Chicago, IL - April 9, 2012 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Alcoa Inc. ( AA ), Aluminum Corporation of China Limited ( ACH ), Rio Tinto plc. ( RIO ), BHP Billiton Ltd. ( BHP ) and AutoNation Inc. ( AN ).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Thursday's Analyst Blog:
Earnings Preview: Alcoa
Alcoa Inc. ( AA ) is scheduled to report its first-quarter 2012 results after the market closes on Tuesday, April 10. The Zacks Consensus Estimate for the quarter is a loss of 4 cents per share, representing a significant year over year decrease of 112.5%.
With respect to earnings surprises, the company missed the Zacks Consensus Estimate in three of the trailing four quarters while exceeding in one of the quarters. This is reflected in the average earnings surprise of -109.64%.
Fourth-Quarter and Full Year 2011 Synopsis
Excluding restructuring charge of $159 million and other items, Alcoa's loss came in at 3 cents per share in the fourth quarter of 2011, below the Zacks Consensus Estimate of a profit of 1 cent. It is the company's first loss in the last nine quarters. The disappointing results were driven by higher costs of energy and transportation. For full-year 2011, Alcoa reported income from continuing operations of $614 million, or 55 cents per share, more than double of 2010 results.
Despite a 6% year over year rise in revenues to $6 billion, business was down in most industries including construction, industrial products, packaging and commercial transportation. For 2011, revenues increased 19% to $25 billion from $21 billion in 2010.
Company's Outlook
For 2012, Alcoa expects global aluminum demand to grow 7% due to global deficit in primary aluminum supply. The company expects global aluminum demand to double by 2020 compared with 2010.
Agreement of Estimate Revisions
In the past 30 days, two analysts made downward revisions while one analyst made upward revision for the first quarter of 2012. In the last seven days, none of the analysts made any downward revision but only one analyst made an upward revision of estimate.
Magnitude of Estimate Revisions
In the last 30 days, the Zacks Consensus Estimate for the quarter has decreased to a loss of 4 cents per share from a loss of 3 cents prior to that. Over the last 90 days, the Zacks Consensus Estimate for the quarter plunged to a loss of 4 cents per share from a profit of 13 cents prior to that.
Our Viewpoint
We believe that the company's outlook depends on the uncertainties in the aluminum market. We are concerned about volatile prices of aluminum and rising raw material costs.
Alcoa also faces stiff competition from Aluminum Corporation of China Limited ( ACH ), Rio Tinto plc. ( RIO ) and BHP Billiton Ltd. ( BHP ). In view of the above stated reasons, the company retains a Zacks #3 Rank, indicating a short-term (1 to 3 months) "Hold" rating and we have a long-term (more than 6 months) "Neutral" recommendation on the stock.
Alcoa Inc. ( AA ) is scheduled to report its first-quarter 2012 results after the market closes on Tuesday, April 10. The Zacks Consensus Estimate for the quarter is a loss of 4 cents per share, representing a significant year over year decrease of 112.5%.
With respect to earnings surprises, the company missed the Zacks Consensus Estimate in three of the trailing four quarters while exceeding in one of the quarters. This is reflected in the average earnings surprise of -109.64%.
Fourth-Quarter and Full Year 2011 Synopsis
Excluding restructuring charge of $159 million and other items, Alcoa's loss came in at 3 cents per share in the fourth quarter of 2011, below the Zacks Consensus Estimate of a profit of 1 cent. It is the company's first loss in the last nine quarters. The disappointing results were driven by higher costs of energy and transportation. For full-year 2011, Alcoa reported income from continuing operations of $614 million, or 55 cents per share, more than double of 2010 results.
Despite a 6% year over year rise in revenues to $6 billion, business was down in most industries including construction, industrial products, packaging and commercial transportation. For 2011, revenues increased 19% to $25 billion from $21 billion in 2010.
Company's Outlook
For 2012, Alcoa expects global aluminum demand to grow 7% due to global deficit in primary aluminum supply. The company expects global aluminum demand to double by 2020 compared with 2010.
Agreement of Estimate Revisions
In the past 30 days, two analysts made downward revisions while one analyst made upward revision for the first quarter of 2012. In the last seven days, none of the analysts made any downward revision but only one analyst made an upward revision of estimate.
Magnitude of Estimate Revisions
In the last 30 days, the Zacks Consensus Estimate for the quarter has decreased to a loss of 4 cents per share from a loss of 3 cents prior to that. Over the last 90 days, the Zacks Consensus Estimate for the quarter plunged to a loss of 4 cents per share from a profit of 13 cents prior to that.
Our Viewpoint
We believe that the company's outlook depends on the uncertainties in the aluminum market. We are concerned about volatile prices of aluminum and rising raw material costs.
Alcoa also faces stiff competition from Aluminum Corporation of China Limited ( ACH ), Rio Tinto plc. ( RIO ) and BHP Billiton Ltd. ( BHP ). In view of the above stated reasons, the company retains a Zacks #3 Rank, indicating a short-term (1 to 3 months) Hold rating and we have a long-term (more than 6 months) Neutral recommendation on the stock.
AutoNation Sales Escalate 15%
AutoNation Inc. ( AN ) posted a 15% increase in new vehicle sales to 25,489 units in March 2012 compared with the same month in the previous year. The company recorded improvement in sales in all of its segments.
Sales in the Domestic segment hiked 26% to 7,991 vehicles; Imports increased 10% to 13,403 vehicles and the Premium Luxury segment rose 10% to 4,095 vehicles during the month.
Last month, light vehicle sales in the U.S. grew 10% to seasonally adjusted annual rate of 14.4 million units from 13.1 million units in the same month of 2011. The increase was driven by higher demand for fuel-efficient small cars and compacts due to rising gas prices. Mild weather and increasing age of vehicles on road stimulated sales during the month.
Large vehicles also performed well during the month. The improvement was driven by attractive promotions on trucks, along with expanding opportunities in the job market and higher consumer confidence.
AutoNation offers a range of automotive products and services, including new vehicles, used vehicles, vehicle maintenance and repair services, vehicle parts, extended service contracts, vehicle protection products, and other aftermarket products.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515 .
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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns instock market datathat would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518 .
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ALCOA INC ( AA ): Free Stock Analysis Report
ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report
AUTONATION INC ( AN ): Free Stock Analysis Report
BHP BILLITN LTD ( BHP ): Free Stock Analysis Report
RIO TINTO-ADR ( RIO ): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include Alcoa Inc. ( AA ), Aluminum Corporation of China Limited ( ACH ), Rio Tinto plc. Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513 Here are highlights from Thursday's Analyst Blog: Earnings Preview: Alcoa Alcoa Inc. ( AA ) is scheduled to report its first-quarter 2012 results after the market closes on Tuesday, April 10. Alcoa Inc. ( AA ) is scheduled to report its first-quarter 2012 results after the market closes on Tuesday, April 10.
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Stocks recently featured in the blog include Alcoa Inc. ( AA ), Aluminum Corporation of China Limited ( ACH ), Rio Tinto plc. Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513 Here are highlights from Thursday's Analyst Blog: Earnings Preview: Alcoa Alcoa Inc. ( AA ) is scheduled to report its first-quarter 2012 results after the market closes on Tuesday, April 10. 9339 support@zacks.com http://www.zacks.com ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report AUTONATION INC ( AN ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here.
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Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513 Here are highlights from Thursday's Analyst Blog: Earnings Preview: Alcoa Alcoa Inc. ( AA ) is scheduled to report its first-quarter 2012 results after the market closes on Tuesday, April 10. 9339 support@zacks.com http://www.zacks.com ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report AUTONATION INC ( AN ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Alcoa Inc. ( AA ), Aluminum Corporation of China Limited ( ACH ), Rio Tinto plc.
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Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513 Here are highlights from Thursday's Analyst Blog: Earnings Preview: Alcoa Alcoa Inc. ( AA ) is scheduled to report its first-quarter 2012 results after the market closes on Tuesday, April 10. 9339 support@zacks.com http://www.zacks.com ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report AUTONATION INC ( AN ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Alcoa Inc. ( AA ), Aluminum Corporation of China Limited ( ACH ), Rio Tinto plc.
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1647.0
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2012-04-09 00:00:00 UTC
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Stock Market Today: The Green Jacket Might Not Fit
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AA
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https://www.nasdaq.com/articles/stock-market-today-green-jacket-might-not-fit-2012-04-09
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nan
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nan
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By ETF Stocks
Stocks are going to need a magic bullet of a Bubba Watson shot to get out of the trees this week. Last Friday’s Employment Situation results landed in the rough and has the indexes poised to fall to or below their respective 50 day-averages during the week.
To pull stocks out of the woods, bulls are going to need to pull off a shot that starts out under and between the trees, ascends and hooks 40 yards to land softly on the green. With a light economic schedule on tap and debt smoke rising once again in Euroland, the only club left in the bag this week is earnings.
First quarter results are next up and officially tee it up on Tuesday with Alcoa, Inc. (AA) and the biggest name of the week, Google Inc. (GOOG) reports on Thursday. Analysts believe 2012’s first-quarter profit results will produce less than 1% growth relative to the same timeframe in 2011. Additionally, the financial models on Wall Street predict that six of the main 10 sectors will produce lower results than a year ago.
As a result of the flat-line profit outlook, it is ETF Stocks view the forward guidance will be more important than actual results. Managements’ second quarter forecasts will be the deciding factor on the shot traders are likely to play next.
With risk and fear returning to the market, it could be time for investors to get a little defensive. ETF Stocks suggests considering an inverse ETF like ProShares Short QQQ (PSQ). The exchange traded fund seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the NASDAQ-100 Index®.
In English, it means that if the NASDAQ-100 loses 1%, PSQ should gain roughly 1%. To get to its 50-day average, the index would need to drop roughly 3% from last Thursday’s close.
If we are at the onset of a much waited for correction, a retracement of 33% of the recent rally is the initial signpost market technicians will look for. Coincidently, that would place the NASDAQ near support at the March low of 2900ish, or 5.8% lower than last week’s close of 3080.
ETF Stocks doesn’t see ProShares Short QQQ (PSQ) as a long-term investment strategy. Rather, we see it as more of an insurance policy against what looks like a rough patch ahead. Consider it your utility club with a difficult lie to play. If it all goes right and you make good contact, the ball lands safely on the green. If not, you are not likely to do too much damage and still have a clear shot to the pin to play next.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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First quarter results are next up and officially tee it up on Tuesday with Alcoa, Inc. (AA) and the biggest name of the week, Google Inc. (GOOG) reports on Thursday. With a light economic schedule on tap and debt smoke rising once again in Euroland, the only club left in the bag this week is earnings. Additionally, the financial models on Wall Street predict that six of the main 10 sectors will produce lower results than a year ago.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. First quarter results are next up and officially tee it up on Tuesday with Alcoa, Inc. (AA) and the biggest name of the week, Google Inc. (GOOG) reports on Thursday. ETF Stocks suggests considering an inverse ETF like ProShares Short QQQ (PSQ).
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First quarter results are next up and officially tee it up on Tuesday with Alcoa, Inc. (AA) and the biggest name of the week, Google Inc. (GOOG) reports on Thursday. By ETF Stocks Stocks are going to need a magic bullet of a Bubba Watson shot to get out of the trees this week. Last Friday’s Employment Situation results landed in the rough and has the indexes poised to fall to or below their respective 50 day-averages during the week.
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First quarter results are next up and officially tee it up on Tuesday with Alcoa, Inc. (AA) and the biggest name of the week, Google Inc. (GOOG) reports on Thursday. As a result of the flat-line profit outlook, it is ETF Stocks view the forward guidance will be more important than actual results. To get to its 50-day average, the index would need to drop roughly 3% from last Thursday’s close.
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1648.0
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2012-04-06 00:00:00 UTC
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Why You Should Ignore Earnings Season and Hold These 2 Deep-Value Stocks
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AA
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https://www.nasdaq.com/articles/why-you-should-ignore-earnings-season-and-hold-these-2-deep-value-stocks-2012-04-06
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nan
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nan
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It's been a tough week for stocks as investors adjust to the reality that the Federal Reserve won't be providing any more liquidity to the U.S. economy . Get ready for more tough weeks ahead, too -- earnings season is about to get underway and companies look poised to deliver earnings that range from so-so to disappointing. That's because Europe remains in a weak condition, and Asia isn't looking much better, either.
As an example, technology firm Polycom (Nasdaq: PLCM) just slashed its first-quarter guidance, noting that sales in Asia will grow less than 10% from a year ago, well below recent 15% to 25% year-over-year growth rates. In the United States, Polycom now expects sales to rise just 1% to 3% from a year ago. That shortfall led to a quick 20% beat-down in the stock.
I hold a similarly cautious view. As I'll note in a moment, there will be a few quarterly shortfalls in my $100,00 Real-Money Portfolio as well, though that won't lead me to make any moves, as these stocks already trade at deep-value levels. The key takeaway: these stocks could see renewed near-term selling pressure, but still look poised to post solid gains for the next 1-2 years.
Here's a quick preview of two key portfolio holdings. (I will help set expectations for other holdings in the portfolio as earnings season progresses.)
Alcoa ( AA )
This aluminum producer looks set to kick off earnings season next Tuesday, April 10, on a sour note. Analysts expect the company to lose a nickel a share, before turning a $0.12 a share profit in the current quarter. Both of those views now look too optimistic. That's because aluminum prices have fallen nearly every day for two straight weeks. As of Thursday, April 4, aluminum sold for $0.93 per pound on the spot market , which is a 10% drop in the past month.
I'm concerned that the consensus forecast for the first quarter doesn't fully account for weak industry conditions in March. And I simply can't see how Alcoa can earn the $0.12 a share that analyst expect in the current quarter.
In hindsight, I am glad I locked in some small gains in mid-March when I sold half of my position in Alcoa.
And here's the strange thing... If Alcoa's results are as bad as I fear, then I'd likely buy more stock. That's because the stock will no longer be vulnerable to unrealistic future expectations, and more importantly, could create a better backdrop for the company.
Recall that Alcoa is the lowest-cost producer in the industry. Aluminum at $0.93 per pound causes Alcoa to report aGAAP loss, but still generate a modestly positive operatingcash flow . But at that price, many of Alcoa's rivals are flat out losing money. Low aluminum prices will lead some of these firms to follow Alcoa's lead by shutting capacity. This should cause prices to firm later this year, and perhaps much better pricing in 2013 as the global economy picks up steam. That's why I remain a long-termbull on Alcoa.
Ford ( F )
Domestic auto sales have been trending better than most expected just three months ago, which should have enabled Ford to meet or exceed first-quarter consensus estimates. But the automaker may in fact trail profit forecasts, earning up to a nickel less than the $0.38earnings per share ( EPS ) consensus. I take that view after parsing through Ford management's comments regarding current business trends at this week's New York Auto Show .
The key negatives:
• Ford's Latin American division likely lost even more money in the first quarter than it did in the fourth quarter of 2011. That region has seen slowing growth, especially in Brazil, so dealers were stuck with high inventories that need to be drawn down.
• Europe has not gotten any better, and management guides for a similar sequential loss as was seen in the fourth quarter. (Notably, management thinks European results will markedly improve later this year on the heels of a product cycle refresh.)
• Ford underestimated the strength of the U.S. market and didn't build enough of the most popular vehicles. The good news is that scarcity brings firm pricing, and Ford points to better-than-expected profit margin trends in North America. Ford will be sharply boosting production this summer to regain any lost market share .
Still, this is a company on a clear upward long-term trajectory. It's crucial that you not lose sight of the fact that Ford now has the best management team in the business, an extremely competitive line-up of cars and trucks, a balance sheet that has never been this strong, and major operating leverage to meet the rising auto sales expected in the next few years.
Despite the first-quarter shortfall, the outlook for the rest of 2012 is strong enough that full-year EPS consensus forecasts of around $1.50 a share -- an 8% gain -- still look quite attainable. And if Europe and Latin America stabilize in 2013, then Ford could easily earn $2 a share or more -- compared to the current $1.70 a share consensus. Simply put, you need to sit tight on a stock that has that kind of earnings potential yet trades for just $12.50 (a forward P/E of about 6).
Risks to Consider: Spain and Italy are showing troubling signs in recent days as bond yields move up, so the "stabilizing Europe" thesis for 2013 may not come to pass, hurting both Alcoa and Ford along with many other U.S. multinationals.
Action to Take --> You shouldn't be too concerned about deep value stocks like Alcoa and Ford as we head into a tricky earnings season, but you do need to assess the wisdom of some of your more richly-valued holdings.
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of F, AA in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa ( AA ) This aluminum producer looks set to kick off earnings season next Tuesday, April 10, on a sour note. Aluminum at $0.93 per pound causes Alcoa to report aGAAP loss, but still generate a modestly positive operatingcash flow . StreetAuthority LLC owns shares of F, AA in one or more if its "real money" portfolios.
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Alcoa ( AA ) This aluminum producer looks set to kick off earnings season next Tuesday, April 10, on a sour note. Aluminum at $0.93 per pound causes Alcoa to report aGAAP loss, but still generate a modestly positive operatingcash flow . StreetAuthority LLC owns shares of F, AA in one or more if its "real money" portfolios.
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Alcoa ( AA ) This aluminum producer looks set to kick off earnings season next Tuesday, April 10, on a sour note. Aluminum at $0.93 per pound causes Alcoa to report aGAAP loss, but still generate a modestly positive operatingcash flow . StreetAuthority LLC owns shares of F, AA in one or more if its "real money" portfolios.
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Alcoa ( AA ) This aluminum producer looks set to kick off earnings season next Tuesday, April 10, on a sour note. Aluminum at $0.93 per pound causes Alcoa to report aGAAP loss, but still generate a modestly positive operatingcash flow . StreetAuthority LLC owns shares of F, AA in one or more if its "real money" portfolios.
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1649.0
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2012-04-06 00:00:00 UTC
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Alcoa Cuts Alumina Capacity; 1Q Report Due Tuesday
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AA
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https://www.nasdaq.com/articles/alcoa-cuts-alumina-capacity-1q-report-due-tuesday-2012-04-06
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nan
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nan
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Alcoa Inc. ( AA ), the U.S. aluminum giant, said Thursday it will reduce its annual alumina production capacity by 2 percent this year, aimed at matching output with its plans to reduce smelter capacity amid a global oversupply that has hurt prices.
The move comes after a drop in prices of alumina, a key ingredient for aluminum production, to levels where some of the world's highest-cost refineries would not be profitable. Spot alumina prices in March were around $315 per ton, down from above $400, while aluminum prices slumped almost 20 percent in a year.
The New York-based aluminum products maker said it will reduce alumina production capacity by 390,000 metric tons a year, or about 2 percent of Alcoa's total capacity. The cuts are targeted at the Atlantic region, which represents about half of the company's global refining capacity of 18 million tons per year.
"Alcoa is taking these steps to avoid aggravating alumina oversupply in the Atlantic region and to enhance the efficiency of our refining system," Chris Ayers, president of Alcoa's Global Primary Products, said in a statement "We will continue to monitor market conditions and will take further action if warranted."
The cutback follows an announcement by Alcoa earlier this year that it would close or curtail 531,000 metric tons, or 12 percent, of its global smelting capacity.
More than half of the 531,000 metric tons represented the permanent closure of capacity in Tennessee and Texas that had been idled since 2009, while the rest represented curtailments to be taken in Portovesme, Italy and La Coruna and Aviles, Spain.
The 90,000 metric ton curtailment in the Spanish smelters has started and is scheduled to be complete by the first half of this year. The smelter in Portovesme, Italy, with a capacity of 150,000 metric tons, will finalize curtailment by the end of the year.
Alcoa, which has seen its stock fall 45 percent from a year ago, will unofficially kick off the U.S. earnings season next week and is expected to post a quarterly loss of 4 cents per share, down from a profit of 28 cents a share the prior year.
Alcoa is scheduled to report its first-quarter 2012 results after the market closes on Tuesday, April 10.
The company's loss in the fourth quarter followed profits in the previous three quarters, which was boosted by demand from automobile and aerospace companies and emerging markets like China. But that strength has been declining as demand weakened, aluminum prices tanked and raw-materials costs climbed.
Shares of Alcoa Inc. ( AA ) fell 1.83 percent, to close at $9.63 in Thursday's trading. Its main competitor, Aluminum Corp. of China ( ACH ) gained 3.01 percent.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ), the U.S. aluminum giant, said Thursday it will reduce its annual alumina production capacity by 2 percent this year, aimed at matching output with its plans to reduce smelter capacity amid a global oversupply that has hurt prices. Shares of Alcoa Inc. ( AA ) fell 1.83 percent, to close at $9.63 in Thursday's trading. The move comes after a drop in prices of alumina, a key ingredient for aluminum production, to levels where some of the world's highest-cost refineries would not be profitable.
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Alcoa Inc. ( AA ), the U.S. aluminum giant, said Thursday it will reduce its annual alumina production capacity by 2 percent this year, aimed at matching output with its plans to reduce smelter capacity amid a global oversupply that has hurt prices. Shares of Alcoa Inc. ( AA ) fell 1.83 percent, to close at $9.63 in Thursday's trading. The New York-based aluminum products maker said it will reduce alumina production capacity by 390,000 metric tons a year, or about 2 percent of Alcoa's total capacity.
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Alcoa Inc. ( AA ), the U.S. aluminum giant, said Thursday it will reduce its annual alumina production capacity by 2 percent this year, aimed at matching output with its plans to reduce smelter capacity amid a global oversupply that has hurt prices. Shares of Alcoa Inc. ( AA ) fell 1.83 percent, to close at $9.63 in Thursday's trading. The New York-based aluminum products maker said it will reduce alumina production capacity by 390,000 metric tons a year, or about 2 percent of Alcoa's total capacity.
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Alcoa Inc. ( AA ), the U.S. aluminum giant, said Thursday it will reduce its annual alumina production capacity by 2 percent this year, aimed at matching output with its plans to reduce smelter capacity amid a global oversupply that has hurt prices. Shares of Alcoa Inc. ( AA ) fell 1.83 percent, to close at $9.63 in Thursday's trading. Spot alumina prices in March were around $315 per ton, down from above $400, while aluminum prices slumped almost 20 percent in a year.
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1650.0
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2012-04-06 00:00:00 UTC
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Friday Edition – Your Time May Be Up Sooner Than You Had Planned
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AA
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https://www.nasdaq.com/articles/friday-edition-your-time-may-be-sooner-you-had-planned-2012-04-06
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nan
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nan
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Metlife has just released a study showing almost one-half (45%) of 65-year-old Boomers are now fully retired (up from 19% in 2008). The vast majority of Boomers (63%) have also started receiving Social Security benefits, and of those, half started collecting before they had originally planned. Why is this number so high? Well, almost four in 10 respondents (37%) who retired earlier than they had planned cited health-related issues as the main reason.
With the ever-changing landscape in the employment world, no one should his or her job for granted. Some careers that once topped lists in the U.S. are now virtually non-existent. The sooner you can start putting capital to work in income-producing assets (quality dividend-paying stocks), the better you'll be prepared for any surprises pop up later in life, such as the health issues that many Boomers pointed to above.
When There's No Where to Turn
I was reading a great article in this month's Inc. Magazine about Norman Edmund, who after contracting and surviving tuberculosis (he was unable to land a job because many feared his disease could still be contagious), decided to build his own business. Edmund always had a passion for photography and gadgets, so he decided to pursue that arena.
His business - Edmund Salvage, later renamed Edmund Scientific, evolved from being a supplier of chipped lenses, war-surplus optics, and low cost scientific gadgetry to a premier catalog of telescopes and telescope kits as well as equipment, parts, and supplies for other scientific fields, including physics, optics, chemistry, electronics, and meteorology.
Amazingly, Norman Edmund lived to the ripe old age of 95, passing away just a few months ago. Edmund is a great case of someone who looked at what the world was offering (not much as far as employment was concerned) and decided he would not be resigned to a life of seclusion and helplessness. He founded Edmund Scientific in 1942 (three years after contracting Tuberculosis), and sold the company in 2000.
As Mr. Edmund proved, we all have the ability to overcome obstacles in our lives. It's just a matter of hard work and pursuing our passions!
Our Beat The Markets with Dividend Stocks eBook Has Arrived!
We just debuted our brand new 275-page eBook, exclusively on Dividend.com! In this digital-only book, we look ahead to 2012 and the main factors that could affect dividend investors. A $39.95 value, the eBook is a free download for paid Dividend.com Premium subscribers.
Beat The Markets with Dividend Stocks contains a full economic forecast for 2012, including in-depth analysis on 65 of the biggest dividend stocks out there. It's a great way to get prepared for your investing next year! So head over to the Dividend.com Premium homepage now to download your copy.
A Look to Next Week and a Weekend Preview
Looking ahead to next week, earnings will be fairly light, with reports from the likes of Alcoa ( AA ) and J.P. Morgan ( JPM ), just to name a few.
Be sure to catch up with our latest watchlist updates this weekend on Dividend.com Premium , including reports on earnings/story stocks, analyst upgrades/downgrades, dividend ETFs, and much more. And as always, you can view our current recommendations on our industry-leading Best Dividend Stocks List .
Thanks for reading, and I'll see you this weekend! P.S. Please pass this e-mail on to someone you think can use some financial motivation as well as being kept in thefinancial newsloop that could affect them.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A Look to Next Week and a Weekend Preview Looking ahead to next week, earnings will be fairly light, with reports from the likes of Alcoa ( AA ) and J.P. Morgan ( JPM ), just to name a few. The sooner you can start putting capital to work in income-producing assets (quality dividend-paying stocks), the better you'll be prepared for any surprises pop up later in life, such as the health issues that many Boomers pointed to above. When There's No Where to Turn I was reading a great article in this month's Inc. Magazine about Norman Edmund, who after contracting and surviving tuberculosis (he was unable to land a job because many feared his disease could still be contagious), decided to build his own business.
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A Look to Next Week and a Weekend Preview Looking ahead to next week, earnings will be fairly light, with reports from the likes of Alcoa ( AA ) and J.P. Morgan ( JPM ), just to name a few. Be sure to catch up with our latest watchlist updates this weekend on Dividend.com Premium , including reports on earnings/story stocks, analyst upgrades/downgrades, dividend ETFs, and much more. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A Look to Next Week and a Weekend Preview Looking ahead to next week, earnings will be fairly light, with reports from the likes of Alcoa ( AA ) and J.P. Morgan ( JPM ), just to name a few. When There's No Where to Turn I was reading a great article in this month's Inc. Magazine about Norman Edmund, who after contracting and surviving tuberculosis (he was unable to land a job because many feared his disease could still be contagious), decided to build his own business. His business - Edmund Salvage, later renamed Edmund Scientific, evolved from being a supplier of chipped lenses, war-surplus optics, and low cost scientific gadgetry to a premier catalog of telescopes and telescope kits as well as equipment, parts, and supplies for other scientific fields, including physics, optics, chemistry, electronics, and meteorology.
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A Look to Next Week and a Weekend Preview Looking ahead to next week, earnings will be fairly light, with reports from the likes of Alcoa ( AA ) and J.P. Morgan ( JPM ), just to name a few. Amazingly, Norman Edmund lived to the ripe old age of 95, passing away just a few months ago. Our Beat The Markets with Dividend Stocks eBook Has Arrived!
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1651.0
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2012-04-05 00:00:00 UTC
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Earnings Preview: Alcoa Inc. - Analyst Blog
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AA
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https://www.nasdaq.com/articles/earnings-preview%3A-alcoa-inc.-analyst-blog-2012-04-05
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nan
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nan
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Alcoa Inc. ( AA ) is scheduled to report its first-quarter 2012 results after the market closes on Tuesday, April 10. The Zacks Consensus Estimate for the quarter is a loss of 4 cents per share, representing a significant year over year decrease of 112.5%.
With respect to earnings surprises, the company missed the Zacks Consensus Estimate in three of the trailing four quarters while exceeding in one of the quarters. This is reflected in the average earnings surprise of -109.64%.
Fourth-Quarter and Full Year 2011 Synopsis
Excluding restructuring charge of $159 million and other items, Alcoa's loss came in at 3 cents per share in the fourth quarter of 2011, below the Zacks Consensus Estimate of a profit of 1 cent. It is the company's first loss in the last nine quarters. The disappointing results were driven by higher costs of energy and transportation. For full-year 2011, Alcoa reported income from continuing operations of $614 million, or 55 cents per share, more than double of 2010 results.
Despite a 6% year over year rise in revenues to $6 billion, business was down in most industries including construction, industrial products, packaging and commercial transportation. For 2011, revenues increased 19% to $25 billion from $21 billion in 2010.
Company's Outlook
For 2012, Alcoa expects global aluminum demand to grow 7% due to global deficit in primary aluminum supply. The company expects global aluminum demand to double by 2020 compared with 2010.
Agreement of Estimate Revisions
In the past 30 days, two analysts made downward revisions while one analyst made upward revision for the first quarter of 2012. In the last seven days, none of the analysts made any downward revision but only one analyst made an upward revision of estimate.
Magnitude of Estimate Revisions
In the last 30 days, the Zacks Consensus Estimate for the quarter has decreased to a loss of 4 cents per share from a loss of 3 cents prior to that. Over the last 90 days, the Zacks Consensus Estimate for the quarter plunged to a loss of 4 cents per share from a profit of 13 cents prior to that.
Our Viewpoint
We believe that the company's outlook depends on the uncertainties in the aluminum market. We are concerned about volatile prices of aluminum and rising raw material costs.
Alcoa also faces stiff competition from Aluminum Corporation of China Limited ( ACH ), Rio Tinto plc. ( RIO ) and BHP Billiton Ltd. ( BHP ). In view of the above stated reasons, the company retains a Zacks #3 Rank, indicating a short-term (1 to 3 months) "Hold" rating and we have a long-term (more than 6 months) "Neutral" recommendation on the stock.
Alcoa Inc. ( AA ) is scheduled to report its first-quarter 2012 results after the market closes on Tuesday, April 10. The Zacks Consensus Estimate for the quarter is a loss of 4 cents per share, representing a significant year over year decrease of 112.5%.
With respect to earnings surprises, the company missed the Zacks Consensus Estimate in three of the trailing four quarters while exceeding in one of the quarters. This is reflected in the average earnings surprise of -109.64%.
Fourth-Quarter and Full Year 2011 Synopsis
Excluding restructuring charge of $159 million and other items, Alcoa's loss came in at 3 cents per share in the fourth quarter of 2011, below the Zacks Consensus Estimate of a profit of 1 cent. It is the company's first loss in the last nine quarters. The disappointing results were driven by higher costs of energy and transportation. For full-year 2011, Alcoa reported income from continuing operations of $614 million, or 55 cents per share, more than double of 2010 results.
Despite a 6% year over year rise in revenues to $6 billion, business was down in most industries including construction, industrial products, packaging and commercial transportation. For 2011, revenues increased 19% to $25 billion from $21 billion in 2010.
Company's Outlook
For 2012, Alcoa expects global aluminum demand to grow 7% due to global deficit in primary aluminum supply. The company expects global aluminum demand to double by 2020 compared with 2010.
Agreement of Estimate Revisions
In the past 30 days, two analysts made downward revisions while one analyst made upward revision for the first quarter of 2012. In the last seven days, none of the analysts made any downward revision but only one analyst made an upward revision of estimate.
Magnitude of Estimate Revisions
In the last 30 days, the Zacks Consensus Estimate for the quarter has decreased to a loss of 4 cents per share from a loss of 3 cents prior to that. Over the last 90 days, the Zacks Consensus Estimate for the quarter plunged to a loss of 4 cents per share from a profit of 13 cents prior to that.
Our Viewpoint
We believe that the company's outlook depends on the uncertainties in the aluminum market. We are concerned about volatile prices of aluminum and rising raw material costs.
Alcoa also faces stiff competition from Aluminum Corporation of China Limited ( ACH ), Rio Tinto plc. ( RIO ) and BHP Billiton Ltd. ( BHP ). In view of the above stated reasons, the company retains a Zacks #3 Rank, indicating a short-term (1 to 3 months) Hold rating and we have a long-term (more than 6 months) Neutral recommendation on the stock.
ALCOA INC ( AA ): Free Stock Analysis Report
ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report
BHP BILLITN LTD ( BHP ): Free Stock Analysis Report
RIO TINTO-ADR ( RIO ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) is scheduled to report its first-quarter 2012 results after the market closes on Tuesday, April 10. Alcoa also faces stiff competition from Aluminum Corporation of China Limited ( ACH ), Rio Tinto plc. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here.
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Alcoa Inc. ( AA ) is scheduled to report its first-quarter 2012 results after the market closes on Tuesday, April 10. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. Fourth-Quarter and Full Year 2011 Synopsis Excluding restructuring charge of $159 million and other items, Alcoa's loss came in at 3 cents per share in the fourth quarter of 2011, below the Zacks Consensus Estimate of a profit of 1 cent.
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Alcoa Inc. ( AA ) is scheduled to report its first-quarter 2012 results after the market closes on Tuesday, April 10. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. Magnitude of Estimate Revisions In the last 30 days, the Zacks Consensus Estimate for the quarter has decreased to a loss of 4 cents per share from a loss of 3 cents prior to that.
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Alcoa Inc. ( AA ) is scheduled to report its first-quarter 2012 results after the market closes on Tuesday, April 10. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. Magnitude of Estimate Revisions In the last 30 days, the Zacks Consensus Estimate for the quarter has decreased to a loss of 4 cents per share from a loss of 3 cents prior to that.
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1652.0
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2012-04-05 00:00:00 UTC
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Stock Market News for April 5, 2012 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-april-5-2012-market-news-2012-04-05
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nan
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nan
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A poor showing at Spain bond sales meant European economic jitters returned to haunt investors on Wednesday. Subsequently, benchmarks suffered their worst loses in nearly a month. Additionally, concerns from the Fed minutes remained an overhang even yesterday as investors' hopes for fresh economic stimulus were dashed once again.
The Dow Jones Industrial Average (DJI) plunged 124.80 points or 1% to settle at 13,074.75. The Standard & Poor 500 (S&P 500) dropped below the key 1,400 mark, after losing 1.0% to finish yesterday's trading session at 1,398.96. The tech-laden Nasdaq Composite Index declined 1.5% and closed at 3,068.09. The fear-gauge CBOE Volatility Index (VIX) jumped almost 5.0% to settle at 16.44. Consolidated volumes on the New York Stock Exchange, the American Stock Exchange and Nasdaq were 6.82 billion shares, significantly lower than last year's daily average of 7.84 billion. Decliners outpaced advancing stock on the NYSE; as for 79% of the declining stocks, only 19% ended higher. The remaining 2% stocks were left unchanged.
Benchmarks had rebounded from their lows yesterday, but still ended up putting in one of their weakest performances in almost a month. European concerns merged with the lingering domestic woes and no catalyst was strong enough to prevent the Dow's triple-digit plunge. It was only the second time this year that the Dow dropped by three digits. Additionally, only four among the 30 Dow components managed to finish in the green, but none of them could manage a gain over 0.5%. Coming to the leading decliners in the Dow, Alcoa, Inc. (NYSE: AA ), Bank of America Corporation (NYSE: BAC ), Cisco Systems, Inc. (NASDAQ: CSCO ), E. I. du Pont de Nemours and Company (NYSE: DD ), JPMorgan Chase & Co. (NYSE: JPM ) and Microsoft Corporation (NASDAQ: MSFT ) plunged by 2.5%, 3.1%, 2.2%, 1.3%, 2.2% and 2.3%, respectively.
European nations including Ireland, Portugal, Greece and Italy had to deal with surging borrowing costs not too long ago. Investors had witnessed the consequences of surging borrowing costs and every time something similar occurs, investors' outlook about economic conditions takes a beating. Yesterday, Spain's yield on 10-year bonds jumped from 5.45%. to 5.71%, the highest since January this year. Inflated bond prices dragged the benchmarks down yesterday, as investors fretted over the health of the European economy. The rise in Spain's bond yield was far from the 'unsustainable' 7% mark, but was enough to spark off widespread concerns.
While investors' apprehension over the continent's economic health increased, they also found it difficult to come to terms with an economy with no monetary stimulus plan, at least for now. These concerns overshadowed a positive report from payroll processor Automatic Data Processing, Inc. (NASDAQ: ADP ). The ADP National Employment Report noted that private-sector added 209, 000 jobs from February to March on a seasonally adjusted basis. Job additions were in line with estimates and the report also suggested broad-based gains. According to the report: "Employment in the private, service-providing sector increased 164,000 in March, after rising a revised 183,000 in February. Employment in the private, goods-producing sector rose 45,000 in March. Manufacturing employment increased 23,000, while construction employment advanced 13,000 and the financial services sector added 8,000 jobs during that period".
Separately, the Institute for Supply Management's services-sector index reflected growth in the economy and somewhat limited the day's losses. The report noted: "The NMI registered 56 percent in March, 1.3 percentage points lower than the 57.3 percent registered in February, and indicating continued growth at a slower rate in the non-manufacturing sector. The Non-Manufacturing Business Activity Index registered 58.9 percent, which is 3.7 percentage points lower than the 62.6 percent reported in February, reflecting growth for the 32nd consecutive month".
ALCOA INC ( AA ): Free Stock Analysis Report
BANK OF AMER CP ( BAC ): Free Stock Analysis Report
CISCO SYSTEMS ( CSCO ): Free Stock Analysis Report
DU PONT ( EI ) DE ( DD ): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Coming to the leading decliners in the Dow, Alcoa, Inc. (NYSE: AA ), Bank of America Corporation (NYSE: BAC ), Cisco Systems, Inc. (NASDAQ: CSCO ), E. I. du Pont de Nemours and Company (NYSE: DD ), JPMorgan Chase & Co. (NYSE: JPM ) and Microsoft Corporation (NASDAQ: MSFT ) plunged by 2.5%, 3.1%, 2.2%, 1.3%, 2.2% and 2.3%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report CISCO SYSTEMS ( CSCO ): Free Stock Analysis Report DU PONT ( EI ) DE ( DD ): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report To read this article on Zacks.com click here. Additionally, concerns from the Fed minutes remained an overhang even yesterday as investors' hopes for fresh economic stimulus were dashed once again.
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Coming to the leading decliners in the Dow, Alcoa, Inc. (NYSE: AA ), Bank of America Corporation (NYSE: BAC ), Cisco Systems, Inc. (NASDAQ: CSCO ), E. I. du Pont de Nemours and Company (NYSE: DD ), JPMorgan Chase & Co. (NYSE: JPM ) and Microsoft Corporation (NASDAQ: MSFT ) plunged by 2.5%, 3.1%, 2.2%, 1.3%, 2.2% and 2.3%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report CISCO SYSTEMS ( CSCO ): Free Stock Analysis Report DU PONT ( EI ) DE ( DD ): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report To read this article on Zacks.com click here. The Non-Manufacturing Business Activity Index registered 58.9 percent, which is 3.7 percentage points lower than the 62.6 percent reported in February, reflecting growth for the 32nd consecutive month".
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Coming to the leading decliners in the Dow, Alcoa, Inc. (NYSE: AA ), Bank of America Corporation (NYSE: BAC ), Cisco Systems, Inc. (NASDAQ: CSCO ), E. I. du Pont de Nemours and Company (NYSE: DD ), JPMorgan Chase & Co. (NYSE: JPM ) and Microsoft Corporation (NASDAQ: MSFT ) plunged by 2.5%, 3.1%, 2.2%, 1.3%, 2.2% and 2.3%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report CISCO SYSTEMS ( CSCO ): Free Stock Analysis Report DU PONT ( EI ) DE ( DD ): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report To read this article on Zacks.com click here. The Non-Manufacturing Business Activity Index registered 58.9 percent, which is 3.7 percentage points lower than the 62.6 percent reported in February, reflecting growth for the 32nd consecutive month".
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Coming to the leading decliners in the Dow, Alcoa, Inc. (NYSE: AA ), Bank of America Corporation (NYSE: BAC ), Cisco Systems, Inc. (NASDAQ: CSCO ), E. I. du Pont de Nemours and Company (NYSE: DD ), JPMorgan Chase & Co. (NYSE: JPM ) and Microsoft Corporation (NASDAQ: MSFT ) plunged by 2.5%, 3.1%, 2.2%, 1.3%, 2.2% and 2.3%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report CISCO SYSTEMS ( CSCO ): Free Stock Analysis Report DU PONT ( EI ) DE ( DD ): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report To read this article on Zacks.com click here. Decliners outpaced advancing stock on the NYSE; as for 79% of the declining stocks, only 19% ended higher.
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1653.0
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2012-03-31 00:00:00 UTC
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Why are Short-Sellers Targeting These Widely-Held Stocks?
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AA
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https://www.nasdaq.com/articles/why-are-short-sellers-targeting-these-widely-held-stocks-2012-03-31
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nan
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nan
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It's been a busy week for this analyst, and it's not even earnings season yet. Earlier in the week, I looked over the latest data regarding heavily-shorted stocks, and was none too pleased to find several stocks in my $100,000 Real-Money Portfolio on the list. Not only are these stocks near the top of the leaderboard, in several instances the short interest level is actually growing. As a result, I've been spending my time checking and re-checking my assumptions for the current quarter, the current year, and the years ahead.
Before I raise too many alarms, I should note that these also happen to be some of the most actively-traded stocks in general, and short-sellers often target large, liquid stocks as a proxy for broader market bearishness. Indeed, Ford (NYSE: F ) , Nokia (NYSE: NOK ) , Citigroup (NYSE: C ) and Alcoa (NYSE: AA ) are among the 11 most active stocks on the NYSE as of March 29. Still, why do they have to pick on my $100,000 Portfolio holdings?
It's time to take a look at each of these four stocks to see what short-sellers may be thinking.
1. Nokia
This is the single most heavily-shorted stock on the market (in terms of absolute shares held short). It would take roughly eight days of average trading volume to liquidate all of the shares held short. That's a large number for a stock that trades 32 million shares a day.
Short sellers are likely betting that Nokia's current efforts to establish a viable alternative smartphone platform to Apple (Nasdaq: AAPL ) and Google (Nasdaq: GOOG ) will fail. I have a more bullish view and think that Nokia can meet with at least moderate success.
As I noted a month ago, "This is all about market share . Investors currently assume that the Lumia phones will make only a slight dent in Apple and Google's hegemony. The next month or two will provide a series of data points regarding global carrier adoption, but it will likely be the summer or the fall before we can truly determine whether Nokia is on the path to a robust turnaround ."
Since then, early signs are promising, but my fairly small 800 share position acknowledges that Nokia still has much to prove. If Nokia starts to deliver decent results, then that huge short position could serve as a major catalyst to the stock.
2. Alcoa
As is the case with Nokia, short-sellers can make a reasonable argument against Alcoa. Though I think this stock has tremendous long-term upside, I'm not thrilled with the aluminum industry's market dynamics thus far in 2012. This is why I sold half of my position on March 13, noting that "aluminum may be headed for a pullback as... China now looks to be in a net export position in 2012, which is bad for aluminum prices."
Sure enough, as aluminum prices dropped from $1.02 per pound to $0.96, Alcoa's stock has pulled back below $10 in recent sessions (leaving me with a modest 6% gain for now). I'm keeping a close eye on Alcoa's upcoming first-quater results. We have a clear sense of aluminum pricing, but we don't know about volume. If sales come in below forecasts and shares take another hit, I'll be looking to boost my stake in Alcoa, as I remain convinced that the multi-year outlook remains quite bright.
3. Ford
Why short-sellers are targeting Ford is one of the great mysteries of the market. During the past 60 days, North American auto sales have been quite robust, leading a number of Wall Street firms to raise their industry sales forecasts.
Monthly domestic auto sales figures will be released on Monday, April 2. Research firm J.D. Power had predicted February sales would come in at 1.37 million units. Kelley Blue Book later weighed in with a forecast of 1.425 million. And Edmunds.com just weighed in with the latest projection of 1.45 million units. However it shakes out, we're likely to see the highest seasonally-adjusted rate of car sales in roughly four years. If short sellers are looking for a sickly industry, they should look elsewhere.
On March 28, analysts at Citigroup issued an in-depth analysis of auto buying trends and concluded that a huge level of pent-up demand should push North American industry sales much higher in the next few years as well. And they've just added Ford to their "Top Picks Live" category of favorite stocks, noting that "Ford remains a clear leader in the context of our "new auto" fundamental thesis."
Of course, Europe remains a huge challenge for Ford and other auto makers. Though Ford appears to be faring better than GM (NYSE: GM ), Peugeot, Fiat and others, the company's European operations are likely to lose money for at least the next few quarters. Short-sellers may be betting that the bad news out of Europe will overwhelm the goods news out of North America, but I think they're wrong.
4. Citigroup
Citigroup's large short position is likely due to the stock's huge trading volume. Indeed, the 38 million share short interest equates to less than one day's worth of trading volume. Many investors remain dubious that banks are poised to deliver much better results any time soon. The improving economy may undermine that view as rising employment levels start to boost banking and lending activity. Still, this stock trades for just 75% of book value -- even after a sharp rebound -- so embedded expectations in this stock remain low anyway.
In recent weeks, several analysts have raised their profit forecasts for Citigroup for the first quarter, based on rising activity in the capital markets division. If the bank can exceed forecasts as it did in three of the past four quarters, then short sellers may look to cover their positions.
Risks to Consider: Short sellers often spot problems that many other investors miss. They also are willing to boldly bet against the economy, and if they're right in concluding that the economy is set to lose steam, then these shares would likely fall in tandem with the broader market .
Action to Take --> It's imperative that you watch the short position in stocks you own. Any time you see a rising short position, you need to dig in and find the potential negative factors on which short-sellers may be focusing. In these instances, I think short-sellers may be going after the wrong targets.
[Note: Be sure not to miss a single thing and have $100,000 Portfolio updates sent to your email inbox, free for a limited time, as soon as they're published by signing up here.]
-- David Sterman
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of F, NOK, C, AA, AAPL, GOOG in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Indeed, Ford (NYSE: F ) , Nokia (NYSE: NOK ) , Citigroup (NYSE: C ) and Alcoa (NYSE: AA ) are among the 11 most active stocks on the NYSE as of March 29. Short sellers are likely betting that Nokia's current efforts to establish a viable alternative smartphone platform to Apple (Nasdaq: AAPL ) and Google (Nasdaq: GOOG ) will fail. StreetAuthority LLC owns shares of F, NOK, C, AA, AAPL, GOOG in one or more if its "real money" portfolios.
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Indeed, Ford (NYSE: F ) , Nokia (NYSE: NOK ) , Citigroup (NYSE: C ) and Alcoa (NYSE: AA ) are among the 11 most active stocks on the NYSE as of March 29. Short sellers are likely betting that Nokia's current efforts to establish a viable alternative smartphone platform to Apple (Nasdaq: AAPL ) and Google (Nasdaq: GOOG ) will fail. StreetAuthority LLC owns shares of F, NOK, C, AA, AAPL, GOOG in one or more if its "real money" portfolios.
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Indeed, Ford (NYSE: F ) , Nokia (NYSE: NOK ) , Citigroup (NYSE: C ) and Alcoa (NYSE: AA ) are among the 11 most active stocks on the NYSE as of March 29. Short sellers are likely betting that Nokia's current efforts to establish a viable alternative smartphone platform to Apple (Nasdaq: AAPL ) and Google (Nasdaq: GOOG ) will fail. StreetAuthority LLC owns shares of F, NOK, C, AA, AAPL, GOOG in one or more if its "real money" portfolios.
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Indeed, Ford (NYSE: F ) , Nokia (NYSE: NOK ) , Citigroup (NYSE: C ) and Alcoa (NYSE: AA ) are among the 11 most active stocks on the NYSE as of March 29. Short sellers are likely betting that Nokia's current efforts to establish a viable alternative smartphone platform to Apple (Nasdaq: AAPL ) and Google (Nasdaq: GOOG ) will fail. StreetAuthority LLC owns shares of F, NOK, C, AA, AAPL, GOOG in one or more if its "real money" portfolios.
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1654.0
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2012-03-30 00:00:00 UTC
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Stock Market News for March 30, 2012 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-march-30-2012-market-news-2012-03-30
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nan
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nan
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Except for the Dow, which staged a comeback in the final hours, the benchmarks closed in the red yesterday as economic data that included a lower-than expected drop in initial claims dampened investor sentiment. Markets have been witnessing selling pressure as the quarter nears its end, but benchmarks have put in decent performances starting this year as also this month.
The Dow Jones Industrial Average (DJI) edged up 0.2% and closed the day at 13,145.82. The Standard & Poor 500 (S&P 500) dropped 0.2% and finished yesterday's trading session at 1,403.28. The tech-laden Nasdaq Composite Index was down to 3,095.36, lower by 0.3%. The fear-gauge CBOE Volatility Index (VIX) was nearly flat yesterday as it gained a negligible 0.01 to close at 15.48. Consolidated volumes on the New York Stock Exchange, the Nasdaq and the Amex were 6.80 billion shares, marginally short of the daily average volume of 6.83 billion. Decliners held an edge over the advancing stocks on the NYSE, as they outnumbered the gainers by a ratio of 3:2.
The day's action largely depended on economic data, which unfortunately for the markets failed to please. The U.S. Department of Labor reported a 5,000 decline in seasonally adjusted initial claims for the week ending March 24, to 359,000, compared with previous week's revised figure of 364,000. Following this drop, initial claims were at the lowest point since April 2008. However, the less-than-expected drop in initial claims acted as a drag on the markets. Consensus estimates had projected the figure to come in at 349, 000.
Yesterday, the U.S. Department of Commerce came out with the third estimate of Gross Domestic Product ( GDP ), or the second revision of the original figure. The Bureau of Economic Analysis in its third estimate said that Real GDP increased at an annual rate of 3.0% in the final quarter of 2011. The 3.0% growth rate was in line with the second estimate, but the third estimate consists of 'more complete source data' than the latter. According to the report, private inventory investment, personal consumption expenditures ( PCE ), non-residential fixed investment, exports, and residential fixed investment positively impacted the GDP, whereas federal government spending and state and local government spending were the deterrents. The 3.0% growth in GDP was lower than consensus estimates of 3.1%, and failed to create any optimism.
The report also noted: "Real personal consumption expenditures increased 2.1 percent in the fourth quarter, compared with an increase of 1.7 percent in the third. Durable goods increased 16.1 percent, compared with an increase of 5.7 percent. Nondurable goods increased 0.8 percent, in contrast to a decrease of 0.5 percent. Services increased 0.4 percent, compared with an increase of 1.9 percent".
Meanwhile, a report from the Federal Reserve Bank of Kansas City revealed that higher gasoline prices had taken a toll on manufacturing activity in the region. The Kansas City Fed's manufacturing composite index, which is the average of the indexes covering production, new orders, employment, delivery times and raw-materials inventories slowed to 9 in March from 13 in the prior month.
While these reports dampened investment sentiment, the blue-chip index managed to rebound only in the late hours as buyers moved to take advantage of the selling pressure. Alcoa, Inc. (NYSE: AA ) led the gains among the 30 Dow components, jumping 2.0%, followed by stocks including Caterpillar Inc. (NYSE: CAT ), Chevron Corporation (NYSE: CVX ), Intel Corporation (NASDAQ: INTC ), The Coca-Cola Company (NYSE: KO ), McDonald's Corp. (NYSE: MCD ) and United Technologies Corp. (NYSE: UTX ), which gained 1.7%, 0.9%, 1.3%, 1.6%, 0.6% and 1.0%, respectively.
ALCOA INC ( AA ): Free Stock Analysis Report
CATERPILLAR INC ( CAT ): Free Stock Analysis Report
CHEVRON CORP ( CVX ): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
COCA COLA CO (KO): Free Stock Analysis Report
MCDONALDS CORP (MCD): Free Stock Analysis Report
UTD TECHS CORP (UTX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa, Inc. (NYSE: AA ) led the gains among the 30 Dow components, jumping 2.0%, followed by stocks including Caterpillar Inc. (NYSE: CAT ), Chevron Corporation (NYSE: CVX ), Intel Corporation (NASDAQ: INTC ), The Coca-Cola Company (NYSE: KO ), McDonald's Corp. (NYSE: MCD ) and United Technologies Corp. (NYSE: UTX ), which gained 1.7%, 0.9%, 1.3%, 1.6%, 0.6% and 1.0%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report CATERPILLAR INC ( CAT ): Free Stock Analysis Report CHEVRON CORP ( CVX ): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report COCA COLA CO (KO): Free Stock Analysis Report MCDONALDS CORP (MCD): Free Stock Analysis Report UTD TECHS CORP (UTX): Free Stock Analysis Report To read this article on Zacks.com click here. Except for the Dow, which staged a comeback in the final hours, the benchmarks closed in the red yesterday as economic data that included a lower-than expected drop in initial claims dampened investor sentiment.
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Alcoa, Inc. (NYSE: AA ) led the gains among the 30 Dow components, jumping 2.0%, followed by stocks including Caterpillar Inc. (NYSE: CAT ), Chevron Corporation (NYSE: CVX ), Intel Corporation (NASDAQ: INTC ), The Coca-Cola Company (NYSE: KO ), McDonald's Corp. (NYSE: MCD ) and United Technologies Corp. (NYSE: UTX ), which gained 1.7%, 0.9%, 1.3%, 1.6%, 0.6% and 1.0%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report CATERPILLAR INC ( CAT ): Free Stock Analysis Report CHEVRON CORP ( CVX ): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report COCA COLA CO (KO): Free Stock Analysis Report MCDONALDS CORP (MCD): Free Stock Analysis Report UTD TECHS CORP (UTX): Free Stock Analysis Report To read this article on Zacks.com click here. According to the report, private inventory investment, personal consumption expenditures ( PCE ), non-residential fixed investment, exports, and residential fixed investment positively impacted the GDP, whereas federal government spending and state and local government spending were the deterrents.
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Alcoa, Inc. (NYSE: AA ) led the gains among the 30 Dow components, jumping 2.0%, followed by stocks including Caterpillar Inc. (NYSE: CAT ), Chevron Corporation (NYSE: CVX ), Intel Corporation (NASDAQ: INTC ), The Coca-Cola Company (NYSE: KO ), McDonald's Corp. (NYSE: MCD ) and United Technologies Corp. (NYSE: UTX ), which gained 1.7%, 0.9%, 1.3%, 1.6%, 0.6% and 1.0%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report CATERPILLAR INC ( CAT ): Free Stock Analysis Report CHEVRON CORP ( CVX ): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report COCA COLA CO (KO): Free Stock Analysis Report MCDONALDS CORP (MCD): Free Stock Analysis Report UTD TECHS CORP (UTX): Free Stock Analysis Report To read this article on Zacks.com click here. The report also noted: "Real personal consumption expenditures increased 2.1 percent in the fourth quarter, compared with an increase of 1.7 percent in the third.
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Alcoa, Inc. (NYSE: AA ) led the gains among the 30 Dow components, jumping 2.0%, followed by stocks including Caterpillar Inc. (NYSE: CAT ), Chevron Corporation (NYSE: CVX ), Intel Corporation (NASDAQ: INTC ), The Coca-Cola Company (NYSE: KO ), McDonald's Corp. (NYSE: MCD ) and United Technologies Corp. (NYSE: UTX ), which gained 1.7%, 0.9%, 1.3%, 1.6%, 0.6% and 1.0%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report CATERPILLAR INC ( CAT ): Free Stock Analysis Report CHEVRON CORP ( CVX ): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report COCA COLA CO (KO): Free Stock Analysis Report MCDONALDS CORP (MCD): Free Stock Analysis Report UTD TECHS CORP (UTX): Free Stock Analysis Report To read this article on Zacks.com click here. Except for the Dow, which staged a comeback in the final hours, the benchmarks closed in the red yesterday as economic data that included a lower-than expected drop in initial claims dampened investor sentiment.
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1655.0
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2012-03-29 00:00:00 UTC
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Stock Market News for March 29, 2012 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-march-29-2012-market-news-2012-03-29
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nan
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nan
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A disappointing durable goods report and falling crude prices created enough selling pressure for the markets to fall yesterday. Declining crude prices crushed energy and commodity stocks, eventually dampening the overall sentiment. Experts also noted that the rush for buying stocks at the quarter end has somewhat faded.
The Dow Jones Industrial Average (DJI) was down 0.5% and settled at 13,126.21. The Standard & Poor 500 (S&P 500) dropped 0.5% to close yesterday's trading session at 1,405.54. The tech-laden Nasdaq Composite Index closed the day at 3,104.96, after losing 0.5%. The fear-gauge CBOE Volatility Index (VIX) remained almost flat, dropping a mere 0.12 points to settle at 15.47. Consolidated volumes on the New York Stock Exchange, Nasdaq and the Amex were 6.84 billion shares, marginally higher than the daily average volume of 6.83 billion. For 19 stocks that declined on the NYSE, 11 stocks managed to climb higher.
All of these benchmarks were down by almost the same percentage yesterday. Also, even though the indices have moved into the negative zone, the Dow, S&P 500 and Nasdaq are still hovering above their individual key levels of 13000, 1400, and 3000, respectively. The S&P 500 had dropped below 1, 400 during the last few trading sessions, but rebounded back to above 1400 this Monday following Ben Bernanke's comments that economic growth is required for unemployment to decline appreciably.
While investors have been receiving encouraging domestic data since late-December, they have been deterred somewhat over the past couple of weeks by dismal housing data and a drop in consumer confidence that was reported on Tuesday. Yesterday too, economic data bogged down sentiment after the Commerce Department reported lower-than-expected increase in orders for new goods.
The U.S. Census Bureau announced a 2.2% increase in new orders for manufactured durable goods which came in at $211.8 billion for February. This jump comes after a 3.6% drop in January. Nonetheless, the increase was well below expectations and was a drag on the markets yesterday. Consensus estimates were hoping for a 2.8% increase. The Durable Goods Orders index is a major indicator of manufacturing sector trends as most industrial production is done on orders, and thus the trend reflected by the index plays a large role in markets' direction.
Meanwhile, U.S. crude oil futures dropped sharply amidst news that he U.S. and Europe might release some oil reserves. The drop in crude prices dented the energy as well as the materials sector. The Energy Select Sector SPDR ( XLE ) was down 1.3% and stocks including Chevron Corporation (NYSE: CVX ), ConocoPhillips (NYSE: COP ), Marathon Oil Corporation (NYSE: MRO ), Western Refining Inc. (NYSE: WNR ) and Chesapeake Energy Corporation (NYSE: CHK ) slumped 1.1%, 1.1%, 1.2%, 1.4% and 4.1%, respectively. As for the material sector, stocks like Alcoa, Inc. (NYSE: AA ), AK Steel Holding Corporation (NYSE: AKS ), Nucor Corporation (NYSE: NUE ) and Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX ) dropped 2.3%, 4.3%, 1.3% and 3.6%, respectively.
Some experts were of the view that the rush to stock up one's portfolio ahead of the quarter end was fading. On Tuesday, a rush to buy certain preferred stocks had helped roughly 175 stocks to achieve 52-weeks highs. This included the likes of American Express Company (NYSE: AXP ), The Coca-Cola Company (NYSE: KO ), The Walt Disney Company (NYSE: DIS ), The Home Depot, Inc. (NYSE: HD ), International Business Machines (NYSE: IBM ), Lockheed Martin Corporation (NYSE: LMT ) and Western Digital Corporation (NYSE: WDC ).
ALCOA INC ( AA ): Free Stock Analysis Report
AK STEEL HLDG ( AKS ): Free Stock Analysis Report
AMER EXPRESS CO ( AXP ): Free Stock Analysis Report
CHESAPEAKE ENGY ( CHK ): Free Stock Analysis Report
CONOCOPHILLIPS (COP): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
DISNEY WALT (DIS): Free Stock Analysis Report
FREEPT MC COP-B (FCX): Free Stock Analysis Report
HOME DEPOT (HD): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
COCA COLA CO (KO): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis Report
MARATHON OIL CP (MRO): Free Stock Analysis Report
NUCOR CORP (NUE): Free Stock Analysis Report
WESTERN DIGITAL (WDC): Free Stock Analysis Report
WESTERN REFING (WNR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As for the material sector, stocks like Alcoa, Inc. (NYSE: AA ), AK Steel Holding Corporation (NYSE: AKS ), Nucor Corporation (NYSE: NUE ) and Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX ) dropped 2.3%, 4.3%, 1.3% and 3.6%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report AK STEEL HLDG ( AKS ): Free Stock Analysis Report AMER EXPRESS CO ( AXP ): Free Stock Analysis Report CHESAPEAKE ENGY ( CHK ): Free Stock Analysis Report CONOCOPHILLIPS (COP): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report DISNEY WALT (DIS): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report HOME DEPOT (HD): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report COCA COLA CO (KO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report MARATHON OIL CP (MRO): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report WESTERN DIGITAL (WDC): Free Stock Analysis Report WESTERN REFING (WNR): Free Stock Analysis Report To read this article on Zacks.com click here. The fear-gauge CBOE Volatility Index (VIX) remained almost flat, dropping a mere 0.12 points to settle at 15.47.
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ALCOA INC ( AA ): Free Stock Analysis Report AK STEEL HLDG ( AKS ): Free Stock Analysis Report AMER EXPRESS CO ( AXP ): Free Stock Analysis Report CHESAPEAKE ENGY ( CHK ): Free Stock Analysis Report CONOCOPHILLIPS (COP): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report DISNEY WALT (DIS): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report HOME DEPOT (HD): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report COCA COLA CO (KO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report MARATHON OIL CP (MRO): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report WESTERN DIGITAL (WDC): Free Stock Analysis Report WESTERN REFING (WNR): Free Stock Analysis Report To read this article on Zacks.com click here. As for the material sector, stocks like Alcoa, Inc. (NYSE: AA ), AK Steel Holding Corporation (NYSE: AKS ), Nucor Corporation (NYSE: NUE ) and Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX ) dropped 2.3%, 4.3%, 1.3% and 3.6%, respectively. The Energy Select Sector SPDR ( XLE ) was down 1.3% and stocks including Chevron Corporation (NYSE: CVX ), ConocoPhillips (NYSE: COP ), Marathon Oil Corporation (NYSE: MRO ), Western Refining Inc. (NYSE: WNR ) and Chesapeake Energy Corporation (NYSE: CHK ) slumped 1.1%, 1.1%, 1.2%, 1.4% and 4.1%, respectively.
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ALCOA INC ( AA ): Free Stock Analysis Report AK STEEL HLDG ( AKS ): Free Stock Analysis Report AMER EXPRESS CO ( AXP ): Free Stock Analysis Report CHESAPEAKE ENGY ( CHK ): Free Stock Analysis Report CONOCOPHILLIPS (COP): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report DISNEY WALT (DIS): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report HOME DEPOT (HD): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report COCA COLA CO (KO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report MARATHON OIL CP (MRO): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report WESTERN DIGITAL (WDC): Free Stock Analysis Report WESTERN REFING (WNR): Free Stock Analysis Report To read this article on Zacks.com click here. As for the material sector, stocks like Alcoa, Inc. (NYSE: AA ), AK Steel Holding Corporation (NYSE: AKS ), Nucor Corporation (NYSE: NUE ) and Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX ) dropped 2.3%, 4.3%, 1.3% and 3.6%, respectively. The Energy Select Sector SPDR ( XLE ) was down 1.3% and stocks including Chevron Corporation (NYSE: CVX ), ConocoPhillips (NYSE: COP ), Marathon Oil Corporation (NYSE: MRO ), Western Refining Inc. (NYSE: WNR ) and Chesapeake Energy Corporation (NYSE: CHK ) slumped 1.1%, 1.1%, 1.2%, 1.4% and 4.1%, respectively.
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As for the material sector, stocks like Alcoa, Inc. (NYSE: AA ), AK Steel Holding Corporation (NYSE: AKS ), Nucor Corporation (NYSE: NUE ) and Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX ) dropped 2.3%, 4.3%, 1.3% and 3.6%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report AK STEEL HLDG ( AKS ): Free Stock Analysis Report AMER EXPRESS CO ( AXP ): Free Stock Analysis Report CHESAPEAKE ENGY ( CHK ): Free Stock Analysis Report CONOCOPHILLIPS (COP): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report DISNEY WALT (DIS): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report HOME DEPOT (HD): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report COCA COLA CO (KO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report MARATHON OIL CP (MRO): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report WESTERN DIGITAL (WDC): Free Stock Analysis Report WESTERN REFING (WNR): Free Stock Analysis Report To read this article on Zacks.com click here. For 19 stocks that declined on the NYSE, 11 stocks managed to climb higher.
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1656.0
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2012-03-26 00:00:00 UTC
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BHP Upgrades on Industrial Optimism - Analyst Blog
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AA
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https://www.nasdaq.com/articles/bhp-upgrades-on-industrial-optimism-analyst-blog-2012-03-26
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nan
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nan
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We have upgraded our recommendation on BHP Billiton Limited ( BHP ) from Underperform to Neutral.
We believe that thelong-term structural drivers of industrialization and urbanization in the developing world will remain intact. Hence, optimism for general commodities demand based on worldwide industrial and infrastructural progress will continue to post financial gains for the company, going forward. In this likely scenario, BHP,a uniquely diversified resources company, is well positioned to take advantage of the economic transition.
Moreover, BHP Billiton has been adding momentum to its approved pipeline of high-return growth projects, diversified across commodity, geography and customers. Prioritizing investment focusing on large, long life, low cost, expandable and upstream assets continue to reinvigorate our growth outlook. Besides, investments in energy coal and petroleum expansion also look impressive.
However, the company isclearly not immune to industry-wide cost pressures. While equipment shortages are challenging the industry, labor crisis remains critical too. Metal product prices remain volatile reflecting a general swing in market sentiment. Besides, worldwide mining cost inflation, governmental delays, depleting natural resources as well as high-cost competitorsfurther increase the company's operational costs. In addition, margin compression for nickel, aluminum and manganese alloys over the last few quarters has remained as a matter of nagging concern for BHP.
A substantial increase in higher grade ore copper production at Escondida, strong production from Queensland Coal and drilling development at non-operated Gulf of Mexico facilities are anticipated to deliver high margin production for miners. including BHP. However, such an attempt to improve the quality of ore grades, in order to stay competitive, leads to higher expenses for the company. Moreover, BHP faces execution risk from natural calamities like tropical cyclones, severe monsoon, or flooding, which potentially disrupts mining operations. An upsurge in oil prices and rising core inflation in the emerging markets add to the blow.
We are concerned about a slower global growth rate, fallout of a fluctuating U.S. as well as worldwide economy. These may impact the demand for the company's products, dampening revenue growth, going forward. Moreover, the metals and minerals market remains highly competitive, especially in the European and Asian countries, in addition to other overseas markets, based on price, quality, range of products, reliability, and transportation costs.
Hope survives as we foresee BHP Billiton's extensive growth program within which six project hubs are already fully operational, delivering career opportunity to skilled personnel. The company's centralized procurement of key input components reduces its exposure to tight consumable and mining equipment markets. Mention may be made of long-term partnerships with suppliers, who ensure certainty of access to raw materials.
BHP's strategic acquisitions as well as extensive organic growth program across geographies are also expected to generate positive business under all market conditions. However, such divergence exposes it to the risk of fluctuations in foreign exchange rates, which may have a significant impact on the company's financial results going ahead.
BHP Billiton is one of the world's largest diversified resource companies operating in mineral exploration, production and processing, oil and gas exploration and development, and steel production and merchandising. The company competes directly with its peers, such as Alcoa Inc ( AA ), Vale S.A ( VALE ) and remains positive on the outlook for an improving global economy driven by urbanization and industrialization, in the future ahead.
ALCOA INC ( AA ): Free Stock Analysis Report
BHP BILLITN LTD ( BHP ): Free Stock Analysis Report
VALE SA ( VALE ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company competes directly with its peers, such as Alcoa Inc ( AA ), Vale S.A ( VALE ) and remains positive on the outlook for an improving global economy driven by urbanization and industrialization, in the future ahead. ALCOA INC ( AA ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report VALE SA ( VALE ): Free Stock Analysis Report To read this article on Zacks.com click here. Hence, optimism for general commodities demand based on worldwide industrial and infrastructural progress will continue to post financial gains for the company, going forward.
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The company competes directly with its peers, such as Alcoa Inc ( AA ), Vale S.A ( VALE ) and remains positive on the outlook for an improving global economy driven by urbanization and industrialization, in the future ahead. ALCOA INC ( AA ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report VALE SA ( VALE ): Free Stock Analysis Report To read this article on Zacks.com click here. BHP Billiton is one of the world's largest diversified resource companies operating in mineral exploration, production and processing, oil and gas exploration and development, and steel production and merchandising.
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ALCOA INC ( AA ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report VALE SA ( VALE ): Free Stock Analysis Report To read this article on Zacks.com click here. The company competes directly with its peers, such as Alcoa Inc ( AA ), Vale S.A ( VALE ) and remains positive on the outlook for an improving global economy driven by urbanization and industrialization, in the future ahead. Moreover, the metals and minerals market remains highly competitive, especially in the European and Asian countries, in addition to other overseas markets, based on price, quality, range of products, reliability, and transportation costs.
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The company competes directly with its peers, such as Alcoa Inc ( AA ), Vale S.A ( VALE ) and remains positive on the outlook for an improving global economy driven by urbanization and industrialization, in the future ahead. ALCOA INC ( AA ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report VALE SA ( VALE ): Free Stock Analysis Report To read this article on Zacks.com click here. Besides, worldwide mining cost inflation, governmental delays, depleting natural resources as well as high-cost competitorsfurther increase the company's operational costs.
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1657.0
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2012-03-26 00:00:00 UTC
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Is the Stock Market Overheated? Here's my Plan...
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AA
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https://www.nasdaq.com/articles/stock-market-overheated-heres-my-plan-2012-03-26
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nan
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nan
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As themarket rises steadily higher, it's getting harder to find true bargains. And though a wide range of good stocks still have reasonably-pricedshares , any market pullback would send most stocks lower from their 52-week highs.
This backdrop has led me to start raising cash in my $100,000 Real-Money Portfolio . One of my top rules of investing is to always have funds available if you think the market may soon present fresh opportunities.
Even as I see a moderate pullback coming, I may be wrong. The market may indeed march ever-higher. And that's OK. I still have 85% of my funds invested (albeit with one position representing a markethedge ). So I'm likely to benefit from any upward move in the market as well, just not to the extent that a fully-invested risk-focused portfolio may benefit.
As I stated at the launch of my $100,000 Real-Money Portfolio , I seek to preserve capital while in the process of building it. This approach is bound to modestlyunderperform in a ragingbull market , but it should also fare better in a flat to down market. Indeed, with all of my picks, I focus on "downside protection." Every pick was made in the context thatshares were likely near a floor in case my investment thesis didn't pan out or the market turned south.
Of course several of my picks no longer have such downside protection in place. For example, Cree (Nasdaq: CREE ) and Ligand Pharmaceuticals (Nasdaq: LGND ) have moved up nicely since the year began and can no longer be seen as having much downside support. That said, both of these companies have such robust long-term growth prospects, that I simply have to shoulder the risk.
What to buy now?
Despite my concerns about a possibly over-extended market, we're about to face a fresh buying opportunity. In coming weeks, I'll be focusing on "earnings season casualties." These are companies that deliver tepid quarterly results or proffer weak forward guidance. Investors often overshoot the mark in their zeal to unload these kinds of stocks, and they can end up as fresh, solid long-term value plays. The problem with these stocks is that it may take a quarter or two for their value to be appreciated by investors. That's why I'm unlikely to ever put more than $5,000 in any initial position.
I currently have about $13,000 in available cash. Frankly, if the market keeps trending higher by the timeearnings season begins around April 10, I may sell some more stock to give me even more cash with which to work.
What to expect thisearnings season ?
I've separated my holdings into two camps in my portfolio: those stocks that will largely be unaffected by earnings season , and those that could make strong moves.
In the first camp, you have steady-as-she-goes stocks like Hasbro (NYSE: HAS ),Ford (NYSE: F ) , Alcoa (NYSE: AA ) and Citigroup (NYSE: C ) . We have a pretty clear read on industry conditions for each of these firms, so anearnings shocker is quite unlikely. (I'll be looking at bank stocks and the coming quarter later this week, and suspect that Citigroup's reboundingcapital markets division should lead to moderate quarterly upside for the banking giant.)
On the other side of the coin, I hold stocks that could quickly move higher or lower in coming weeks. For example, shares of Cree have risen more than 30% since the year began, even though the first quarter is likely to be either in-line or below consensus forecasts. The LED-lighting industry dynamics are clearly improving, but you won't see that until the June quarter or beyond. Still, I am sitting tight on this high-growth stock.
Ligand Pharmaceuticals is another vulnerable holding. This biotech firm is gaining a following onWall Street , pushing its shares up to two-year highs. I expect this stock to be much higher over the long haul, but if it makes a dash into the $20s in coming weeks, then I'd be inclined to sell off half my position. Then again, a weaker market could push this stock back down, in which case I'd be sitting tight.
Action to Take --> Before earnings season gets underway, I'll be providing a much more in-depth preview for several of my holdings. Stay tuned, because knowing what to expect may help you to move quickly as the quarterly numbers are formally released. [And by that token, if you haven't already signed up to receive my $100,000 Portfolio updates in your email inbox, you can do so by clicking here . It's completely free for a limited time.]
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of CREE, HAS, AA, C, LGND, F in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the first camp, you have steady-as-she-goes stocks like Hasbro (NYSE: HAS ),Ford (NYSE: F ) , Alcoa (NYSE: AA ) and Citigroup (NYSE: C ) . StreetAuthority LLC owns shares of CREE, HAS, AA, C, LGND, F in one or more if its "real money" portfolios. Every pick was made in the context thatshares were likely near a floor in case my investment thesis didn't pan out or the market turned south.
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In the first camp, you have steady-as-she-goes stocks like Hasbro (NYSE: HAS ),Ford (NYSE: F ) , Alcoa (NYSE: AA ) and Citigroup (NYSE: C ) . StreetAuthority LLC owns shares of CREE, HAS, AA, C, LGND, F in one or more if its "real money" portfolios. For example, Cree (Nasdaq: CREE ) and Ligand Pharmaceuticals (Nasdaq: LGND ) have moved up nicely since the year began and can no longer be seen as having much downside support.
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In the first camp, you have steady-as-she-goes stocks like Hasbro (NYSE: HAS ),Ford (NYSE: F ) , Alcoa (NYSE: AA ) and Citigroup (NYSE: C ) . StreetAuthority LLC owns shares of CREE, HAS, AA, C, LGND, F in one or more if its "real money" portfolios. And though a wide range of good stocks still have reasonably-pricedshares , any market pullback would send most stocks lower from their 52-week highs.
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In the first camp, you have steady-as-she-goes stocks like Hasbro (NYSE: HAS ),Ford (NYSE: F ) , Alcoa (NYSE: AA ) and Citigroup (NYSE: C ) . StreetAuthority LLC owns shares of CREE, HAS, AA, C, LGND, F in one or more if its "real money" portfolios. For example, Cree (Nasdaq: CREE ) and Ligand Pharmaceuticals (Nasdaq: LGND ) have moved up nicely since the year began and can no longer be seen as having much downside support.
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1658.0
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2012-03-15 00:00:00 UTC
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Metals & Mining Stock Outlook – March 2012 - Industry Outlook
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AA
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https://www.nasdaq.com/articles/metals-mining-stock-outlook-march-2012-industry-outlook-2012-03-15
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nan
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nan
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About the Industry
The Metals & Mining industry encompasses the extraction (mining) as well as the primary and secondary processing of metals and minerals such as aluminum, gold, precious metals, coal and steel. The industry is oligarchic in structure, with a few producers accounting for the lion's share of the output.
The largest segment of the global metals market is iron and steel, followed by aluminum. The iron and steel segment comprises more than half the industry in terms of volume. This industry includes metal ore exploration and mining services, as well as iron and steel foundries for smelting, rolling, forging, spinning, recycling, stamping, polishing and plating of iron and steel products such as pipes, tubes, wire, spring, rolls and bars.
The precious metal and mineral industry consists of companies engaged in the extraction and primary processing of gold, silver, platinum, diamond, semi-precious stones, uranium and other rare minerals and ores, along with the cultivation of pearls.
Overall Industry Outlook
The global metal industry is cyclical, highly competitive and has historically been characterized by overcapacity (excess of supply over demand). Metal producers are subject to cyclical fluctuations in London Metal Exchange (LME) prices, general economic conditions and end-use markets.
Profitability at the individual company level depends on volume and operating efficiency. Large producers with huge resources are able to discover and develop new deposits, thereby boosting reserves, while the smaller ones own fewer mines.
Mergers and acquisitions (M&A) have historically been a critically important growth strategy for mining companies. The year 2009 experienced a lull in M&A activity under the impact of the global economic downturn and the focus shifted from business growth to business survival, as companies looked to safeguard their teetering balance sheets rather than seeking expansion.
However, reversing the trend, 2010 witnessed a surge in mining deals as the rise in commodity prices, economic recovery, demand in developing markets, growing scarcity of resources and refreshed balance sheets spurred merger activity.
2011 was a busy year in terms of M&A activity despite the European debt crisis, earthquake in Japan, social unrest in the Middle East, and downgrade of the U.S. government's debt rating. We expect the momentum in M&A to sustain in 2012 as well. Armed with healthy balance sheets, reduced economic uncertainty and a pent-up demand for new projects, we expect the companies in the industry to accelerate deal activity with a re-focus on consolidation.
In an industry plagued with rising energy and raw material costs, increasing productivity and reducing costs are the keys to success. Given the cyclical nature of the metals industry, low-volume, high-cost producers need to generate sufficient cash or ensure a strong borrowing position during market peaks to survive the market troughs.
Continuing consolidation supports the sector's ability to influence the price of input costs and companies can also obtain synergies and economies of scale through the operation of vertically integrated raw materials sources. Expansion in low-cost countries will ensure lower labor costs and also help tap their growth potential.
The Glencore-Xstrata merger currently in the offing is one of the biggest ever in the mining sector. If it materializes, it would result in a combined new business of $90 billion and will be the world's biggest exporter of coal for power plants and the largest producer of zinc. This will be the largest mining transaction in history, dwarfing the earlier major deals like Rio Tinto-Alcan in 2007 and Vale-Inco in 2006.
Demand in the metals and mining industry has benefitted from the strong growth in emerging markets. China and India in particular, are witnessing higher production and consumption of metals. Per capita consumption levels in both these countries are calibrating to U.S levels, which could, theoretically at least, double metal demand in the longer term.
China is the world's largest consumer of metals and is expected to remain so in the future. Overall, we expect global metal demand to improve in the long term with the recovery of user industries.
Demand as well as production for industrial metals in Japan had been recently affected, as factories were shut down in the aftermath of the country's strongest earthquake and tsunami. Japan is the biggest buyer of aluminum and the second largest buyer of copper ore.
We believe the industry will continue to benefit from the metal demand generated from the country's rebuilding activity. Sovereign debt issues and sluggish growth in Europe however remain lingering concerns.
A Detailed Look into Metals
Steel
As the major shareholder (about 60%) of the metals market, the steel industry was severely bruised by the global economic downturn. But the recovery has been swift and forceful. According to the World Steel Association, world crude steel production was a record 1,527 million tons (Mt) in 2011, outperforming the 2010 record of 1,414 Mt, a 6.8% jump.
China continues to retain its status as the largest steel producing country, yielding almost half of the global output at 46%, and growing 8.9% year over year. Japan, the second largest producer country, however posted a 1.8% decline due to the earthquake. The United States remained in the third position, producing 86.2 Mt of crude steel, 7.1% higher than 2010 and comprising 6% of the total global output.
North America's crude steel production was 118.9 Mt, an increase of 6.8% on 2010. In Asia, overall growth was noted at 7.9% and Europe rose 4.6%. As per January figures, in the current fiscal, world crude steel production was 117 Mt, a 7.8% dip from January 2011 but flat with December 2011 levels.
Reflecting on the 2011 results of the steel companies in our coverage - ArcelorMittal ( MT ), AK Steel Holding Corporation ( AKS ) and Nucor Corporation ( NUE ) -- revenues increased across the board due to higher average steel prices and increase in shipments.
ArcelorMittal, the world's largest steel producing company, produced 91.9 million tons in fiscal 2011, representing 6% of the world's steel output. ArcelorMittal's 2011 sales increased 10% to $94 billion and for AK Steel sales climbed 8% to $6.5 billion. Nucor recorded sales increase of 21% to reach $20 billion.
In terms of profitability, Nucor stood tall with its fiscal 2011 EPS of $2.45, almost six fold the 42 cents earned in 2010. ArcelorMittal's EPS in fiscal 2011 plummeted 31% to $1.19. AK Steel reversed its year-ago loss to earn 9 cents (excluding special items) in 2011. U.S. Steel Corp ( X ), though still in red, narrowed its fiscal 2011 loss per share to 47 cents from the year-ago loss of $3.36.
Currently, Nucor, United Steel and AK Steel retain a Zacks #3 Rank (Hold) for the short term (1 to 3 months) that corresponds with our Neutral recommendations in the long term. ArcelorMittal retains a Zacks #4 Rank (Sell) and we have recently downgraded our long-term recommendation from Neutral to Underperform.
The steel industry had been severely affected by the global economic crisis. However, there were signs of a turnaround from the second half of 2009 which continued into 2010 and 2011 at tandem with global economic activity. Demand for steel products nonetheless remains below pre-recession levels. We expect the recovery to be slow and steady in 2012.
The steel companies expect volumes to improve in 2012 on recovering demand from improving end-markets, backed by a recuperating global economy. They expect operating results to significantly improve from 2011 levels mainly driven by improved average realized prices and higher shipments. Steel consumption is expected to grow in the automotive, transportation, energy, industrial, and the agricultural sectors.
The automotive and construction markets have historically been the largest consumers of steel. The automotive sector is showing significant promise. In February 2012, total motor vehicle sales reached the highest level since February 2008 at 15.1 million SAAR (Seasonally Adjusted Annual Rate). For the first two months of 2012, sales have averaged 14.6 million SAAR, outperforming the Street expectations.
The construction sector has been a drag on the steel companies' earnings. However, we see some early signs of recovery in non-residential construction.
According to the American Institute of Architects, the architecture billings index, an economic indicator that provides an approximately nine to twelve month glimpse into the future of non-residential construction spending activity, was 50.9 in January 2012. The index has remained over 50 for the third consecutive month, a sure indicator of an overall rise in demand.
The optimism is seen across most regions of the country and the major construction sectors. However, given the continued uncertainty in the market, we expect soft to very moderate near-term growth in demand in this sector.
According to the data released by the U.S. Department of Housing and Urban Development, housing starts increased 1.5% to a seasonally adjusted annual rate of 699,000 in January 2012 from December 2011 and 9.9% above January 2011.
Building permits in January were at a seasonally adjusted annual rate of 676,000, 0.7% above the December figure of 671,000 and 19% above the January 2011 number. These figures provide a glimmer of hope that U.S. residential construction is finally on a road to recovery.
Based on expected economic growth from developing countries like China, India and South Korea, steel prices will be pushed up higher in the future. However, the European debt crisis and its potential global impact remain an overhang on the steel industry.
Given the scenario in Europe, ArcelorMittal has idled 5 of its 25 blast furnaces in Europe. The company will continue to align its steel growth projects to match demand situations. Furthermore, the company's focus on its mining business given its more attractive returns has resulted in some planned steel investments being deferred.
Gold
As per the World Gold Council reports, 2011 was a milestone year for gold as global demand for the yellow metal grew 0.4% to 4,067.1 tons at an estimated value of $205.5 billion -- the highest tonnage level with a value exceeding $200 billion since 1997. The increase was mainly propelled by the investment sector, particularly in India, China and Europe.
Mine production increased 4% year over year to a record level of 2809.5 tons. However, there was a decline noted in recycling activity as consumers held on to their gold in the expectation of even higher prices. Central banks purchases rose significantly to 440 tons from 77 tons in the prior year reflecting the need to diversify assets, reduce reliance on one or two foreign currencies and rebalance reserves. Central banks have been net buyers for three straight years, the longest stretch since 1973.
Demand for gold bars and coins were robust due to the concerns raging in Europe, inflation in some countries and the unsatisfactory performance of a range of alternative instruments. The ongoing crisis in Europe has positively affected the demand for gold given the need for asset protection.
Jewelry demand was particularly strong in the first half of 2011 driven by the two major markets, China and India, due to the timing of local festivals. China and India remain the major consumers of gold, generating 55% of global jewelry demand and 49% of global demand. However, record prices in September combined with price volatility deviated customers towards other investment products.
On the whole, a 28% increase in average annual price led to an annual decline of 3% in tonnage demand in fiscal 2011. Notwithstanding this, annual demand was a record $99.2 billion.
Gold demand in the technology sector was at 463.5 tons worth $23.4 billion, a 28% increase year over year. Particular strength was noted in automotive electronics, industrial electronics and wireless equipment segments. However, the memory sector weakened considerably and is expected to remain so in 2012 as well. Severe flooding in Thailand which affected hard disk drive shipments, ongoing turmoil in Europe, and shift toward other non-precious metals also contributed to the weakness.
Gold prices in 2011 ranged from a low of $1,310 per ounce to a high of $1,895 per ounce. The record gold price of $1,895 per ounce was attained in September, 33% higher than the 2010 peak of $1,421 per ounce recorded in November 2010. Average gold price was $1,572 per ounce in 2011 compared with the prior year average of $1,223 per ounce.
So far in 2012, gold has ranged from $1,598 per ounce to $1,781 per ounce, with an average of $1,698 per ounce. Continuing concerns about Europe's financial problems and China's reduced economic growth forecast led to the climb. Given the performance in 2011, and thus far in 2012, we expect his year to be stellar for the yellow metal.
Gold remains a coveted asset given its long-term supply and demand dynamics and influenced by macro-economic factors. Concerns regarding economic growth in developed countries made gold an attractive and safe investment option. The European sovereign debt crisis made European investors use gold as a currency hedge. Pressure on the US dollar against various currencies coupled with higher inflation expectations in many countries, including India and China, pushed up gold prices.
The value and wealth preservation attributes of gold continue to attract investors and consumers. Jewelry and investment demand in non-western markets continues to rebound while industrial demand has started to recover in response to an improvement in economic conditions. India, which alone consumes nearly 45%−50% of the world gold production, should drive demand for gold along with China. China will likely emerge as the largestgold marketin the world in 2012 and Chinese gold demand is expected to double in 10 years.
Higher prices bode well for gold producers, which should benefit giants such as Barrick Gold Corporation ( ABX ), Agnico-Eagle ( AEM ) and Goldcorp Inc. ( GG ). However, gold producers like Newmont Mining ( NEM ) and Kinross Gold Corporation ( KGC ) suffer from lower ore grades that subdue production levels, increase mining costs and negate the benefits of rising gold prices.
Ironically, rallying gold prices are not having the same effect on the share prices of the gold companies. This is reflected in our overall long-term neutral view on the space. Investors prefer alternative financial products that allow them to invest in gold rather than investing in gold companies per se that are grappling with labor issues, escalating cost and other risks.
As the major economies continue to recover, investor confidence in the stock markets will be restored, causing gold prices to fall. In reality this is not going to happen anytime soon. The stocks of Barrick Gold, Newmont Mining, Goldcorp and Kinross Gold Corporation retain a Zacks #3 Rank (Hold). However, Agnico Eagle holds a Zacks #5 Rank (Strong Sell).
Aluminum
The aluminum industry is highly cyclical, with prices subject to worldwide supply and demand forces along with other influences. The global economic downturn had a drastically negative impact on the aluminum industry, leading to an unprecedented decline in LME-based aluminum prices, weak end markets, fall in demand, increased global inventories, and higher costs of borrowing and diminished credit availability. The sector has however recovered from recessionary lows.
Alcoa Inc. ( AA ), the world leader in the production and management of primary aluminum, in response to the global economic downturn implemented a number of operational and financial actions to improve its cost structure and liquidity, including curtailing production, halting non-critical capital expenditures, accelerating new sourcing strategies for raw materials, divesting non-core assets, reducing global headcount, suspending its share repurchase program, reducing its quarterly common stock dividend and resorting to other liquidity enhancements.
For fiscal 2011, Alcoa reported adjusted earnings of 72 cents per share, reversing the year-ago loss of 3 cents per share. The company anticipates that global aluminum demand will go up 7% and burgeoning demand for aluminum along with market-related production cutbacks will lead to a global aluminum industry deficit of 600,000 metric tons in 2012.
Aluminium demand started on a strong note in 2011 but weakened in the second half. Overall, aluminium demand grew 10% in the year after 13% growth witnessed in 2010. Overall, Alcoa believes that the long-term prospects for aluminum remain bright and envisions that global demand for aluminum will double by 2020.
Market conditions for aluminum products are expected to improve globally, particularly in aerospace (10-11%), driven by rising demand for large commercial aircraft. The strong performance at the automotive sector in the fourth quarter is expected to sustain in 2012, growing at en estimated clip of 3-5%. Commercial transportation is expected to grow 2-5%, packaging in the range of 2-3% and building and construction markets in the band of 4-5%.
Region-wise, in 2012, China is expected to lead the pack with a growth of 12% followed shortly by India with a 10% rise. Asia (excluding China) is expected to record a growth of 9% and North America 3%. Russia and Brazil are expected to increase 4% and 3%, respectively. Europe, besieged by sovereign debt problems, is expected to remain flat year over year.
Since the sudden decline from peak prices in mid-2008, aluminum prices have subsequently increased. In 2010, global aluminum prices rose 13%. However, in the fourth quarter of fiscal 2011, aluminum prices plunged 27% from peak levels in April 2011. This was perpetrated by market concerns that the eurozone debt crisis could affect the global manufacturing industry and would lead to a huge downside in metals demand.
Consequently, profits for the mining companies took a blow compelling them to cut back on production. Rio Tinto announced plans to sell its aluminium assets and close its smelter in order to cut costs.
Alcoa plans to close or curtail 531,000 metric tons, or approximately 12% of its global smelting capacity, in the first half of 2012. This will lower the company's cost position by 10 percentage points and improve its competitiveness. Energy prices and other input costs are expected to pose challenges for the aluminum industry. In addition to the curtailments, the company will step up actions to reduce the escalating cost of raw materials.
In the medium to long term, aluminum consumption will improve globally with revival palpable in the automotive and packaging industries, one of the key consumer markets. Aluminum is widely used for packaging, beverage cans, food containers and foil products.
The automobile market is also becoming increasingly aluminum intensive, benefiting from the recyclability and the light weight of the metal. Further, the surge in copper price this year is triggering a switch among manufacturers to aluminum. Automobiles, air conditioners and industrial components manufacturers are now shifting their focus on the more economical aluminum.
We expect aluminum demand to increase over the next three years, outstripping supply growth. As a result, the aluminum market is likely to see deficits for a prolonged period. This provides a backdrop supportive of high alumina and aluminum prices. China and India are undergoing rapid industrialization.
Both these factors are positive for underlying aluminum demand. Leading aluminum producers such as Alcoa and Aluminum Corporation of China ( ACH ) should benefit from the improving demand outlook.
Currently, both Alcoa and Aluminum Corporation of China hold a Zacks #3 Rank (Hold) supported by our long-term Neutral recommendation.
Copper
Copper has become a major industrial metal given its properties of high ductility, malleability, and thermal and electrical conductivity, and its resistance to corrosion. In terms of consumption, it ranks third after iron and aluminum. Construction is the single largest market, followed by electronics and electronic products, transportation, industrial machinery, and consumer and general products.
Copper is an internationally traded commodity, and its prices are determined by the major metals exchanges - the London Metal Exchange (LME), New York Mercantile Exchange (COMEX) and Shanghai Futures Exchange (SHFE). Prices on these exchanges reflect the global balance of copper supply and demand, which can be volatile and cyclical.
Copper prices were at high levels from 2006 through most of 2008 as limited supplies, combined with growing demand from China and other emerging economies, resulted in high copper prices and low levels of inventories.
In December 2008 copper prices dipped to a low of $1.26 per pound due to reduced consumption, turbulence in the U.S. financial markets and concerns about the global economy. However, copper prices have since improved from the 2008 lows, thanks to strong demand from emerging markets and limited supply.
During the past three years, copper prices have fluctuated with LME spot copper prices ranging from $1.38 to $4.60 per pound. During 2011, LME spot copper prices ranged from $3.08 per pound to a record high of $4.60 per pound, with an average of $4.00 per pound. This rising trend has benefited copper producers like Freeport-McMoRan Copper & Gold Inc. ( FCX ) and Southern Copper Corporation ( SCCO ).
Not denying volatility in prices, which would always be there, we have a bullish stance on copper prices, long term. Prices will be influenced by demand from China, economic activity in the U.S. and other industrialized countries, the timing of new supplies of copper and production levels of mines and copper smelters.
The outlook for the copper business remains positive, supported by widespread use of copper, limited supplies from existing mines and the absence of significant new development projects. Companies that have a high leverage to copper prices will benefit immensely from the potential demand for the metal in the developing markets.
Freeport and Southern Copper retain a Zacks #3 Rank in agreement with our Neutral recommendation on the shares.
ALCOA INC ( AA ): Free Stock Analysis Report
BARRICK GOLD CP ( ABX ): Free Stock Analysis Report
ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report
AGNICO EAGLE ( AEM ): Free Stock Analysis Report
AK STEEL HLDG ( AKS ): Free Stock Analysis Report
FREEPT MC COP-B (FCX): Free Stock Analysis Report
GOLDCORP INC (GG): Free Stock Analysis Report
KINROSS GOLD (KGC): Free Stock Analysis Report
ARCELOR MITTAL (MT): Free Stock Analysis Report
NEWMONT MINING (NEM): Free Stock Analysis Report
NUCOR CORP (NUE): Free Stock Analysis Report
SOUTHERN COPPER (SCCO): Free Stock Analysis Report
UTD STATES STL (X): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ), the world leader in the production and management of primary aluminum, in response to the global economic downturn implemented a number of operational and financial actions to improve its cost structure and liquidity, including curtailing production, halting non-critical capital expenditures, accelerating new sourcing strategies for raw materials, divesting non-core assets, reducing global headcount, suspending its share repurchase program, reducing its quarterly common stock dividend and resorting to other liquidity enhancements. In February 2012, total motor vehicle sales reached the highest level since February 2008 at 15.1 million SAAR (Seasonally Adjusted Annual Rate). For the first two months of 2012, sales have averaged 14.6 million SAAR, outperforming the Street expectations.
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ALCOA INC ( AA ): Free Stock Analysis Report BARRICK GOLD CP ( ABX ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report AGNICO EAGLE ( AEM ): Free Stock Analysis Report AK STEEL HLDG ( AKS ): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDCORP INC (GG): Free Stock Analysis Report KINROSS GOLD (KGC): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here. In February 2012, total motor vehicle sales reached the highest level since February 2008 at 15.1 million SAAR (Seasonally Adjusted Annual Rate). For the first two months of 2012, sales have averaged 14.6 million SAAR, outperforming the Street expectations.
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ALCOA INC ( AA ): Free Stock Analysis Report BARRICK GOLD CP ( ABX ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report AGNICO EAGLE ( AEM ): Free Stock Analysis Report AK STEEL HLDG ( AKS ): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDCORP INC (GG): Free Stock Analysis Report KINROSS GOLD (KGC): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here. In February 2012, total motor vehicle sales reached the highest level since February 2008 at 15.1 million SAAR (Seasonally Adjusted Annual Rate). For the first two months of 2012, sales have averaged 14.6 million SAAR, outperforming the Street expectations.
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In February 2012, total motor vehicle sales reached the highest level since February 2008 at 15.1 million SAAR (Seasonally Adjusted Annual Rate). For the first two months of 2012, sales have averaged 14.6 million SAAR, outperforming the Street expectations. Alcoa Inc. ( AA ), the world leader in the production and management of primary aluminum, in response to the global economic downturn implemented a number of operational and financial actions to improve its cost structure and liquidity, including curtailing production, halting non-critical capital expenditures, accelerating new sourcing strategies for raw materials, divesting non-core assets, reducing global headcount, suspending its share repurchase program, reducing its quarterly common stock dividend and resorting to other liquidity enhancements.
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2012-03-15 00:00:00 UTC
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Metals & Mining Stock Outlook - March 2012 - Zacks Analyst Interviews
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https://www.nasdaq.com/articles/metals-mining-stock-outlook-march-2012-zacks-analyst-interviews-2012-03-15
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About the Industry
The Metals & Mining industry encompasses the extraction (mining) as well as the primary and secondary processing of metals and minerals such as aluminum, gold, precious metals, coal and steel. The industry is oligarchic in structure, with a few producers accounting for the lion's share of the output.
The largest segment of the global metals market is iron and steel, followed by aluminum. The iron and steel segment comprises more than half the industry in terms of volume. This industry includes metal ore exploration and mining services, as well as iron and steel foundries for smelting, rolling, forging, spinning, recycling, stamping, polishing and plating of iron and steel products such as pipes, tubes, wire, spring, rolls and bars.
The precious metal and mineral industry consists of companies engaged in the extraction and primary processing of gold, silver, platinum, diamond, semi-precious stones, uranium and other rare minerals and ores, along with the cultivation of pearls.
Overall Industry Outlook
The global metal industry is cyclical, highly competitive and has historically been characterized by overcapacity (excess of supply over demand). Metal producers are subject to cyclical fluctuations in London Metal Exchange (LME) prices, general economic conditions and end-use markets.
Profitability at the individual company level depends on volume and operating efficiency. Large producers with huge resources are able to discover and develop new deposits, thereby boosting reserves, while the smaller ones own fewer mines.
Mergers and acquisitions (M&A) have historically been a critically important growth strategy for mining companies. The year 2009 experienced a lull in M&A activity under the impact of the global economic downturn and the focus shifted from business growth to business survival, as companies looked to safeguard their teetering balance sheets rather than seeking expansion.
However, reversing the trend, 2010 witnessed a surge in mining deals as the rise in commodity prices, economic recovery, demand in developing markets, growing scarcity of resources and refreshed balance sheets spurred merger activity.
2011 was a busy year in terms of M&A activity despite the European debt crisis, earthquake in Japan, social unrest in the Middle East, and downgrade of the U.S. government's debt rating. We expect the momentum in M&A to sustain in 2012 as well. Armed with healthy balance sheets, reduced economic uncertainty and a pent-up demand for new projects, we expect the companies in the industry to accelerate deal activity with a re-focus on consolidation.
In an industry plagued with rising energy and raw material costs, increasing productivity and reducing costs are the keys to success. Given the cyclical nature of the metals industry, low-volume, high-cost producers need to generate sufficient cash or ensure a strong borrowing position during market peaks to survive the market troughs.
Continuing consolidation supports the sector's ability to influence the price of input costs and companies can also obtain synergies and economies of scale through the operation of vertically integrated raw materials sources. Expansion in low-cost countries will ensure lower labor costs and also help tap their growth potential.
The Glencore-Xstrata merger currently in the offing is one of the biggest ever in the mining sector. If it materializes, it would result in a combined new business of $90 billion and will be the world's biggest exporter of coal for power plants and the largest producer of zinc. This will be the largest mining transaction in history, dwarfing the earlier major deals like Rio Tinto-Alcan in 2007 and Vale-Inco in 2006.
Demand in the metals and mining industry has benefitted from the strong growth in emerging markets. China and India in particular, are witnessing higher production and consumption of metals. Per capita consumption levels in both these countries are calibrating to U.S levels, which could, theoretically at least, double metal demand in the longer term.
China is the world's largest consumer of metals and is expected to remain so in the future. Overall, we expect global metal demand to improve in the long term with the recovery of user industries.
Demand as well as production for industrial metals in Japan had been recently affected, as factories were shut down in the aftermath of the country's strongest earthquake and tsunami. Japan is the biggest buyer of aluminum and the second largest buyer of copper ore.
We believe the industry will continue to benefit from the metal demand generated from the country's rebuilding activity. Sovereign debt issues and sluggish growth in Europe however remain lingering concerns.
A Detailed Look into Metals
Steel
As the major shareholder (about 60%) of the metals market, the steel industry was severely bruised by the global economic downturn. But the recovery has been swift and forceful. According to the World Steel Association, world crude steel production was a record 1,527 million tons (Mt) in 2011, outperforming the 2010 record of 1,414 Mt, a 6.8% jump.
China continues to retain its status as the largest steel producing country, yielding almost half of the global output at 46%, and growing 8.9% year over year. Japan, the second largest producer country, however posted a 1.8% decline due to the earthquake. The United States remained in the third position, producing 86.2 Mt of crude steel, 7.1% higher than 2010 and comprising 6% of the total global output.
North America's crude steel production was 118.9 Mt, an increase of 6.8% on 2010. In Asia, overall growth was noted at 7.9% and Europe rose 4.6%. As per January figures, in the current fiscal, world crude steel production was 117 Mt, a 7.8% dip from January 2011 but flat with December 2011 levels.
Reflecting on the 2011 results of the steel companies in our coverage - ArcelorMittal ( MT ), AK Steel Holding Corporation ( AKS ) and Nucor Corporation ( NUE ) -- revenues increased across the board due to higher average steel prices and increase in shipments.
ArcelorMittal, the world's largest steel producing company, produced 91.9 million tons in fiscal 2011, representing 6% of the world's steel output. ArcelorMittal's 2011 sales increased 10% to $94 billion and for AK Steel sales climbed 8% to $6.5 billion. Nucor recorded sales increase of 21% to reach $20 billion.
In terms of profitability, Nucor stood tall with its fiscal 2011 EPS of $2.45, almost six fold the 42 cents earned in 2010. ArcelorMittal's EPS in fiscal 2011 plummeted 31% to $1.19. AK Steel reversed its year-ago loss to earn 9 cents (excluding special items) in 2011. U.S. Steel Corp ( X ), though still in red, narrowed its fiscal 2011 loss per share to 47 cents from the year-ago loss of $3.36.
Currently, Nucor, United Steel and AK Steel retain a Zacks #3 Rank (Hold) for the short term (1 to 3 months) that corresponds with our Neutral recommendations in the long term. ArcelorMittal retains a Zacks #4 Rank (Sell) and we have recently downgraded our long-term recommendation from Neutral to Underperform.
The steel industry had been severely affected by the global economic crisis. However, there were signs of a turnaround from the second half of 2009 which continued into 2010 and 2011 at tandem with global economic activity. Demand for steel products nonetheless remains below pre-recession levels. We expect the recovery to be slow and steady in 2012.
The steel companies expect volumes to improve in 2012 on recovering demand from improving end-markets, backed by a recuperating global economy. They expect operating results to significantly improve from 2011 levels mainly driven by improved average realized prices and higher shipments. Steel consumption is expected to grow in the automotive, transportation, energy, industrial, and the agricultural sectors.
The automotive and construction markets have historically been the largest consumers of steel. The automotive sector is showing significant promise. In February 2012, total motor vehicle sales reached the highest level since February 2008 at 15.1 million SAAR (Seasonally Adjusted Annual Rate). For the first two months of 2012, sales have averaged 14.6 million SAAR, outperforming the Street expectations.
The construction sector has been a drag on the steel companies' earnings. However, we see some early signs of recovery in non-residential construction.
According to the American Institute of Architects, the architecture billings index, an economic indicator that provides an approximately nine to twelve month glimpse into the future of non-residential construction spending activity, was 50.9 in January 2012. The index has remained over 50 for the third consecutive month, a sure indicator of an overall rise in demand.
The optimism is seen across most regions of the country and the major construction sectors. However, given the continued uncertainty in the market, we expect soft to very moderate near-term growth in demand in this sector.
According to the data released by the U.S. Department of Housing and Urban Development, housing starts increased 1.5% to a seasonally adjusted annual rate of 699,000 in January 2012 from December 2011 and 9.9% above January 2011.
Building permits in January were at a seasonally adjusted annual rate of 676,000, 0.7% above the December figure of 671,000 and 19% above the January 2011 number. These figures provide a glimmer of hope that U.S. residential construction is finally on a road to recovery.
Based on expected economic growth from developing countries like China, India and South Korea, steel prices will be pushed up higher in the future. However, the European debt crisis and its potential global impact remain an overhang on the steel industry.
Given the scenario in Europe, ArcelorMittal has idled 5 of its 25 blast furnaces in Europe. The company will continue to align its steel growth projects to match demand situations. Furthermore, the company's focus on its mining business given its more attractive returns has resulted in some planned steel investments being deferred.
Gold
As per the World Gold Council reports, 2011 was a milestone year for gold as global demand for the yellow metal grew 0.4% to 4,067.1 tons at an estimated value of $205.5 billion -- the highest tonnage level with a value exceeding $200 billion since 1997. The increase was mainly propelled by the investment sector, particularly in India, China and Europe.
Mine production increased 4% year over year to a record level of 2809.5 tons. However, there was a decline noted in recycling activity as consumers held on to their gold in the expectation of even higher prices. Central banks purchases rose significantly to 440 tons from 77 tons in the prior year reflecting the need to diversify assets, reduce reliance on one or two foreign currencies and rebalance reserves. Central banks have been net buyers for three straight years, the longest stretch since 1973.
Demand for gold bars and coins were robust due to the concerns raging in Europe, inflation in some countries and the unsatisfactory performance of a range of alternative instruments. The ongoing crisis in Europe has positively affected the demand for gold given the need for asset protection.
Jewelry demand was particularly strong in the first half of 2011 driven by the two major markets, China and India, due to the timing of local festivals. China and India remain the major consumers of gold, generating 55% of global jewelry demand and 49% of global demand. However, record prices in September combined with price volatility deviated customers towards other investment products.
On the whole, a 28% increase in average annual price led to an annual decline of 3% in tonnage demand in fiscal 2011. Notwithstanding this, annual demand was a record $99.2 billion.
Gold demand in the technology sector was at 463.5 tons worth $23.4 billion, a 28% increase year over year. Particular strength was noted in automotive electronics, industrial electronics and wireless equipment segments. However, the memory sector weakened considerably and is expected to remain so in 2012 as well. Severe flooding in Thailand which affected hard disk drive shipments, ongoing turmoil in Europe, and shift toward other non-precious metals also contributed to the weakness.
Gold prices in 2011 ranged from a low of $1,310 per ounce to a high of $1,895 per ounce. The record gold price of $1,895 per ounce was attained in September, 33% higher than the 2010 peak of $1,421 per ounce recorded in November 2010. Average gold price was $1,572 per ounce in 2011 compared with the prior year average of $1,223 per ounce.
So far in 2012, gold has ranged from $1,598 per ounce to $1,781 per ounce, with an average of $1,698 per ounce. Continuing concerns about Europe's financial problems and China's reduced economic growth forecast led to the climb. Given the performance in 2011, and thus far in 2012, we expect his year to be stellar for the yellow metal.
Gold remains a coveted asset given its long-term supply and demand dynamics and influenced by macro-economic factors. Concerns regarding economic growth in developed countries made gold an attractive and safe investment option. The European sovereign debt crisis made European investors use gold as a currency hedge. Pressure on the US dollar against various currencies coupled with higher inflation expectations in many countries, including India and China, pushed up gold prices.
The value and wealth preservation attributes of gold continue to attract investors and consumers. Jewelry and investment demand in non-western markets continues to rebound while industrial demand has started to recover in response to an improvement in economic conditions. India, which alone consumes nearly 45%−50% of the world gold production, should drive demand for gold along with China. China will likely emerge as the largestgold marketin the world in 2012 and Chinese gold demand is expected to double in 10 years.
Higher prices bode well for gold producers, which should benefit giants such as Barrick Gold Corporation ( ABX ), Agnico-Eagle ( AEM ) and Goldcorp Inc. ( GG ). However, gold producers like Newmont Mining ( NEM ) and Kinross Gold Corporation ( KGC ) suffer from lower ore grades that subdue production levels, increase mining costs and negate the benefits of rising gold prices.
Ironically, rallying gold prices are not having the same effect on the share prices of the gold companies. This is reflected in our overall long-term neutral view on the space. Investors prefer alternative financial products that allow them to invest in gold rather than investing in gold companies per se that are grappling with labor issues, escalating cost and other risks.
As the major economies continue to recover, investor confidence in the stock markets will be restored, causing gold prices to fall. In reality this is not going to happen anytime soon. The stocks of Barrick Gold, Newmont Mining, Goldcorp and Kinross Gold Corporation retain a Zacks #3 Rank (Hold). However, Agnico Eagle holds a Zacks #5 Rank (Strong Sell).
Aluminum
The aluminum industry is highly cyclical, with prices subject to worldwide supply and demand forces along with other influences. The global economic downturn had a drastically negative impact on the aluminum industry, leading to an unprecedented decline in LME-based aluminum prices, weak end markets, fall in demand, increased global inventories, and higher costs of borrowing and diminished credit availability. The sector has however recovered from recessionary lows.
Alcoa Inc. ( AA ), the world leader in the production and management of primary aluminum, in response to the global economic downturn implemented a number of operational and financial actions to improve its cost structure and liquidity, including curtailing production, halting non-critical capital expenditures, accelerating new sourcing strategies for raw materials, divesting non-core assets, reducing global headcount, suspending its share repurchase program, reducing its quarterly common stock dividend and resorting to other liquidity enhancements.
For fiscal 2011, Alcoa reported adjusted earnings of 72 cents per share, reversing the year-ago loss of 3 cents per share. The company anticipates that global aluminum demand will go up 7% and burgeoning demand for aluminum along with market-related production cutbacks will lead to a global aluminum industry deficit of 600,000 metric tons in 2012.
Aluminium demand started on a strong note in 2011 but weakened in the second half. Overall, aluminium demand grew 10% in the year after 13% growth witnessed in 2010. Overall, Alcoa believes that the long-term prospects for aluminum remain bright and envisions that global demand for aluminum will double by 2020.
Market conditions for aluminum products are expected to improve globally, particularly in aerospace (10-11%), driven by rising demand for large commercial aircraft. The strong performance at the automotive sector in the fourth quarter is expected to sustain in 2012, growing at en estimated clip of 3-5%. Commercial transportation is expected to grow 2-5%, packaging in the range of 2-3% and building and construction markets in the band of 4-5%.
Region-wise, in 2012, China is expected to lead the pack with a growth of 12% followed shortly by India with a 10% rise. Asia (excluding China) is expected to record a growth of 9% and North America 3%. Russia and Brazil are expected to increase 4% and 3%, respectively. Europe, besieged by sovereign debt problems, is expected to remain flat year over year.
Since the sudden decline from peak prices in mid-2008, aluminum prices have subsequently increased. In 2010, global aluminum prices rose 13%. However, in the fourth quarter of fiscal 2011, aluminum prices plunged 27% from peak levels in April 2011. This was perpetrated by market concerns that the eurozone debt crisis could affect the global manufacturing industry and would lead to a huge downside in metals demand.
Consequently, profits for the mining companies took a blow compelling them to cut back on production. Rio Tinto announced plans to sell its aluminium assets and close its smelter in order to cut costs.
Alcoa plans to close or curtail 531,000 metric tons, or approximately 12% of its global smelting capacity, in the first half of 2012. This will lower the company's cost position by 10 percentage points and improve its competitiveness. Energy prices and other input costs are expected to pose challenges for the aluminum industry. In addition to the curtailments, the company will step up actions to reduce the escalating cost of raw materials.
In the medium to long term, aluminum consumption will improve globally with revival palpable in the automotive and packaging industries, one of the key consumer markets. Aluminum is widely used for packaging, beverage cans, food containers and foil products.
The automobile market is also becoming increasingly aluminum intensive, benefiting from the recyclability and the light weight of the metal. Further, the surge in copper price this year is triggering a switch among manufacturers to aluminum. Automobiles, air conditioners and industrial components manufacturers are now shifting their focus on the more economical aluminum.
We expect aluminum demand to increase over the next three years, outstripping supply growth. As a result, the aluminum market is likely to see deficits for a prolonged period. This provides a backdrop supportive of high alumina and aluminum prices. China and India are undergoing rapid industrialization.
Both these factors are positive for underlying aluminum demand. Leading aluminum producers such as Alcoa and Aluminum Corporation of China ( ACH ) should benefit from the improving demand outlook.
Currently, both Alcoa and Aluminum Corporation of China hold a Zacks #3 Rank (Hold) supported by our long-term Neutral recommendation.
Copper
Copper has become a major industrial metal given its properties of high ductility, malleability, and thermal and electrical conductivity, and its resistance to corrosion. In terms of consumption, it ranks third after iron and aluminum. Construction is the single largest market, followed by electronics and electronic products, transportation, industrial machinery, and consumer and general products.
Copper is an internationally traded commodity, and its prices are determined by the major metals exchanges - the London Metal Exchange (LME), New York Mercantile Exchange (COMEX) and Shanghai Futures Exchange (SHFE). Prices on these exchanges reflect the global balance of copper supply and demand, which can be volatile and cyclical.
Copper prices were at high levels from 2006 through most of 2008 as limited supplies, combined with growing demand from China and other emerging economies, resulted in high copper prices and low levels of inventories.
In December 2008 copper prices dipped to a low of $1.26 per pound due to reduced consumption, turbulence in the U.S. financial markets and concerns about the global economy. However, copper prices have since improved from the 2008 lows, thanks to strong demand from emerging markets and limited supply.
During the past three years, copper prices have fluctuated with LME spot copper prices ranging from $1.38 to $4.60 per pound. During 2011, LME spot copper prices ranged from $3.08 per pound to a record high of $4.60 per pound, with an average of $4.00 per pound. This rising trend has benefited copper producers like Freeport-McMoRan Copper & Gold Inc. ( FCX ) and Southern Copper Corporation ( SCCO ).
Not denying volatility in prices, which would always be there, we have a bullish stance on copper prices, long term. Prices will be influenced by demand from China, economic activity in the U.S. and other industrialized countries, the timing of new supplies of copper and production levels of mines and copper smelters.
The outlook for the copper business remains positive, supported by widespread use of copper, limited supplies from existing mines and the absence of significant new development projects. Companies that have a high leverage to copper prices will benefit immensely from the potential demand for the metal in the developing markets.
Freeport and Southern Copper retain a Zacks #3 Rank in agreement with our Neutral recommendation on the shares.
ALCOA INC ( AA ): Free Stock Analysis Report
BARRICK GOLD CP ( ABX ): Free Stock Analysis Report
ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report
AGNICO EAGLE ( AEM ): Free Stock Analysis Report
AK STEEL HLDG ( AKS ): Free Stock Analysis Report
FREEPT MC COP-B (FCX): Free Stock Analysis Report
GOLDCORP INC (GG): Free Stock Analysis Report
KINROSS GOLD (KGC): Free Stock Analysis Report
ARCELOR MITTAL (MT): Free Stock Analysis Report
NEWMONT MINING (NEM): Free Stock Analysis Report
NUCOR CORP (NUE): Free Stock Analysis Report
SOUTHERN COPPER (SCCO): Free Stock Analysis Report
UTD STATES STL (X): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ), the world leader in the production and management of primary aluminum, in response to the global economic downturn implemented a number of operational and financial actions to improve its cost structure and liquidity, including curtailing production, halting non-critical capital expenditures, accelerating new sourcing strategies for raw materials, divesting non-core assets, reducing global headcount, suspending its share repurchase program, reducing its quarterly common stock dividend and resorting to other liquidity enhancements. In February 2012, total motor vehicle sales reached the highest level since February 2008 at 15.1 million SAAR (Seasonally Adjusted Annual Rate). For the first two months of 2012, sales have averaged 14.6 million SAAR, outperforming the Street expectations.
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ALCOA INC ( AA ): Free Stock Analysis Report BARRICK GOLD CP ( ABX ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report AGNICO EAGLE ( AEM ): Free Stock Analysis Report AK STEEL HLDG ( AKS ): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDCORP INC (GG): Free Stock Analysis Report KINROSS GOLD (KGC): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here. In February 2012, total motor vehicle sales reached the highest level since February 2008 at 15.1 million SAAR (Seasonally Adjusted Annual Rate). For the first two months of 2012, sales have averaged 14.6 million SAAR, outperforming the Street expectations.
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ALCOA INC ( AA ): Free Stock Analysis Report BARRICK GOLD CP ( ABX ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report AGNICO EAGLE ( AEM ): Free Stock Analysis Report AK STEEL HLDG ( AKS ): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDCORP INC (GG): Free Stock Analysis Report KINROSS GOLD (KGC): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here. In February 2012, total motor vehicle sales reached the highest level since February 2008 at 15.1 million SAAR (Seasonally Adjusted Annual Rate). For the first two months of 2012, sales have averaged 14.6 million SAAR, outperforming the Street expectations.
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In February 2012, total motor vehicle sales reached the highest level since February 2008 at 15.1 million SAAR (Seasonally Adjusted Annual Rate). For the first two months of 2012, sales have averaged 14.6 million SAAR, outperforming the Street expectations. Alcoa Inc. ( AA ), the world leader in the production and management of primary aluminum, in response to the global economic downturn implemented a number of operational and financial actions to improve its cost structure and liquidity, including curtailing production, halting non-critical capital expenditures, accelerating new sourcing strategies for raw materials, divesting non-core assets, reducing global headcount, suspending its share repurchase program, reducing its quarterly common stock dividend and resorting to other liquidity enhancements.
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1660.0
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2012-03-13 00:00:00 UTC
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Stock Market News for March 13, 2012 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-march-13-2012-market-news-2012-03-13
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nan
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nan
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Markets closed flat on Monday as investors remained cautious ahead of the Federal Reserve's monetary statement. On a day of listless trading, benchmarks remained unaffected by news that Greece had concluded its debt deal with private creditors. Nonetheless, the Dow registered its fourth-straight day of gains and was up all through the trading session unlike its fellow benchmarks.
The Dow Jones Industrial Average (DJI) rose 0.3% and closed the day at 12,959.71. The Standard & Poor 500 (S&P 500) edged up 0.02% to finish yesterday's trading session largely unchanged at 1,371.09. The Nasdaq Composite Index dropped a mere 0.2% and settled at 2,983.66. The fear-gauge CBOE Volatility Index (VIX) slumped 8.6% to settle at 15.64, the lowest level since May 2011. Consolidated volumes on the New York Stock Exchange, the American Stock Exchange and Nasdaq were 5.15 billion shares, significantly lower than last year's daily average of 7.84 billion. Decliners beat advancing stocks on the NYSE, as for 44% of stocks that gained, 52% of the stocks traded lower. The remaining stocks were left unchanged.
Both the S&P 500 and Nasdaq struggled to find their way into the green zone. While both hovered in the red for most of the morning session, the S&P 500 managed to crawl up during the afternoon and ended negligibly higher. The Nasdaq vacillated between negligible gains and losses, finally closing in the red zone. However, it was the blue-chip index that remained in the green seat through the trading session and subsequently recorded its fourth consecutive finish in the positive zone. This is only for the second time this year that the Dow has achieved this feat. Among the 30 Dow components, 21 finished in the green while The Travelers Companies, Inc. (NYSE: TRV ) closed unchanged and the remaining 8 stocks closed in the red. Among the gainers, Alcoa Inc. (NYSE: AA ), The Boeing Company (NYSE: BA ), General Electric Company (NYSE: GE ), The Home Depot, Inc. (NYSE: HD ), The Coca-Cola Company (NYSE: KO ), Merck & Company, Inc. (NYSE: MRK ), The Procter & Gamble Company (NYSE: PG ) and Exxon Mobil Corporation (NYSE: XOM ) jumped 0.6%, 0.4%, 0.5%, 1.0%, 0.9%, 1.3%, 1.2% and 1.5%, respectively.
Apprehensions surrounding the Federal Reserve's monetary statement, which is due on Tuesday, kept the investors on their toes. Investors will be keen to find out the central bank's stance on monetary easing policy. Investors have been looking forward to a third round of quantitative easing, but they have been disappointed every time. Even during his last congressional testimony, Fed chairman Ben Bernanke provided little hope of a third round of bond buying. The central bank will also expectedly leave the interest rate unaltered at historically low levels.
Additionally, the Fed will be disclosing the results of the bank stress test. This is a crucial indicator of the stability of large banks during economic turmoil. The latest round of stress tests covered 19 US large banks. The stress result will also decide if the banks can opt for dividend payouts and buyback of shares. These concerns kept the financial sector hovering in the negative zone with the Financial SPDR Select Sector Fund ( XLF ) losing 0.3% and the KBW Bank Index (BKX) settling 0.7% lower. Bellwethers like Bank of America Corporation (NYSE: BAC ), The Goldman Sachs Group, Inc. (NYSE: GS ), JP Morgan Chase & Co. (NYSE: JPM ), Morgan Stanley (NYSE: MS ) and Wells Fargo & Company (NYSE: WFC ), which are a part of this test, lost 0.8%, 0.3%, 1.2%, 0.9% and 0.5%, respectively.
Markets largely focused on domestic news yesterday and overlooked foreign developments. Greece has reportedly secured its debt deal with private creditors. Private investors have agreed to shoulder a substantial amount of the country's debt load, easing the way for Greece to receive the next tranche of its bailout package.
ALCOA INC ( AA ): Free Stock Analysis Report
BOEING CO ( BA ): Free Stock Analysis Report
BANK OF AMER CP ( BAC ): Free Stock Analysis Report
GENL ELECTRIC ( GE ): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
HOME DEPOT (HD): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
COCA COLA CO (KO): Free Stock Analysis Report
MERCK & CO INC (MRK): Free Stock Analysis Report
MORGAN STANLEY (MS): Free Stock Analysis Report
PROCTER & GAMBL (PG): Free Stock Analysis Report
TRAVELERS COS (TRV): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the gainers, Alcoa Inc. (NYSE: AA ), The Boeing Company (NYSE: BA ), General Electric Company (NYSE: GE ), The Home Depot, Inc. (NYSE: HD ), The Coca-Cola Company (NYSE: KO ), Merck & Company, Inc. (NYSE: MRK ), The Procter & Gamble Company (NYSE: PG ) and Exxon Mobil Corporation (NYSE: XOM ) jumped 0.6%, 0.4%, 0.5%, 1.0%, 0.9%, 1.3%, 1.2% and 1.5%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report BOEING CO ( BA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report GENL ELECTRIC ( GE ): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report HOME DEPOT (HD): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report COCA COLA CO (KO): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report PROCTER & GAMBL (PG): Free Stock Analysis Report TRAVELERS COS (TRV): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. On a day of listless trading, benchmarks remained unaffected by news that Greece had concluded its debt deal with private creditors.
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Among the gainers, Alcoa Inc. (NYSE: AA ), The Boeing Company (NYSE: BA ), General Electric Company (NYSE: GE ), The Home Depot, Inc. (NYSE: HD ), The Coca-Cola Company (NYSE: KO ), Merck & Company, Inc. (NYSE: MRK ), The Procter & Gamble Company (NYSE: PG ) and Exxon Mobil Corporation (NYSE: XOM ) jumped 0.6%, 0.4%, 0.5%, 1.0%, 0.9%, 1.3%, 1.2% and 1.5%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report BOEING CO ( BA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report GENL ELECTRIC ( GE ): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report HOME DEPOT (HD): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report COCA COLA CO (KO): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report PROCTER & GAMBL (PG): Free Stock Analysis Report TRAVELERS COS (TRV): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. Bellwethers like Bank of America Corporation (NYSE: BAC ), The Goldman Sachs Group, Inc. (NYSE: GS ), JP Morgan Chase & Co. (NYSE: JPM ), Morgan Stanley (NYSE: MS ) and Wells Fargo & Company (NYSE: WFC ), which are a part of this test, lost 0.8%, 0.3%, 1.2%, 0.9% and 0.5%, respectively.
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Among the gainers, Alcoa Inc. (NYSE: AA ), The Boeing Company (NYSE: BA ), General Electric Company (NYSE: GE ), The Home Depot, Inc. (NYSE: HD ), The Coca-Cola Company (NYSE: KO ), Merck & Company, Inc. (NYSE: MRK ), The Procter & Gamble Company (NYSE: PG ) and Exxon Mobil Corporation (NYSE: XOM ) jumped 0.6%, 0.4%, 0.5%, 1.0%, 0.9%, 1.3%, 1.2% and 1.5%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report BOEING CO ( BA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report GENL ELECTRIC ( GE ): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report HOME DEPOT (HD): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report COCA COLA CO (KO): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report PROCTER & GAMBL (PG): Free Stock Analysis Report TRAVELERS COS (TRV): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. Bellwethers like Bank of America Corporation (NYSE: BAC ), The Goldman Sachs Group, Inc. (NYSE: GS ), JP Morgan Chase & Co. (NYSE: JPM ), Morgan Stanley (NYSE: MS ) and Wells Fargo & Company (NYSE: WFC ), which are a part of this test, lost 0.8%, 0.3%, 1.2%, 0.9% and 0.5%, respectively.
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Among the gainers, Alcoa Inc. (NYSE: AA ), The Boeing Company (NYSE: BA ), General Electric Company (NYSE: GE ), The Home Depot, Inc. (NYSE: HD ), The Coca-Cola Company (NYSE: KO ), Merck & Company, Inc. (NYSE: MRK ), The Procter & Gamble Company (NYSE: PG ) and Exxon Mobil Corporation (NYSE: XOM ) jumped 0.6%, 0.4%, 0.5%, 1.0%, 0.9%, 1.3%, 1.2% and 1.5%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report BOEING CO ( BA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report GENL ELECTRIC ( GE ): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report HOME DEPOT (HD): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report COCA COLA CO (KO): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report PROCTER & GAMBL (PG): Free Stock Analysis Report TRAVELERS COS (TRV): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. Decliners beat advancing stocks on the NYSE, as for 44% of stocks that gained, 52% of the stocks traded lower.
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1661.0
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2012-03-13 00:00:00 UTC
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I'm Selling 500 Shares of this Well-Known Stock
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AA
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https://www.nasdaq.com/articles/im-selling-500-shares-well-known-stock-2012-03-13
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nan
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nan
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In the few months since I've launched my $100,000 Real-Money Portfolio , themarket has continued to surge upward. The gains have been especially pronounced for some of the riskiest and most of unloved stocks of 2011 that have partially been the beneficiary of recent short-covering.
That's not to discount the validity of this rally. It's impressive enough, though fairly thin tradingvolume doesn't give a lot of confidence that the rally can push the market higher still in coming weeks. (3.1 billionshares were traded among S&P 500 stocks on March 12, the lowest level of 2012.) That's why I'm staying put with my conservative approach, focusing on stocks that appear to have solid downside support.
Yet careful readers of $100,000 Portfolio will note that I've moved quickly to get all my chips into the pot and have just a few thousand dollars left to put into play. That's why I'm ready to start re-jiggering my portfolio to free up some cash -- as my next intriguing buying opportunity could pop up at any moment.
I'm starting the process by selling half of my position (or 500 shares ) in Alcoa (NYSE: AA ).
I still love this stock's long-term potential, which you should consider if you own this stock and are abuy-and-hold investor. But I'm growing concerned about some near-term issues. And as the stock has traded up a bit since I bought it, there's no harm in locking in some of those profits.
What's changed? Well, on the face of it, all seems well. Shares are up roughly 8% since I bought them, roughly in line with the rise in aluminum pricing on thespot market . (It was $2,020 a ton in early January and stands at around $2,160 today.)
Yet aluminum may be headed for a pullback. Recall that I liked Alcoa simply because high-cost Chinese producers were leaving the market, turning that country from a role as anet exporter to anet importer . (I was also heartened by Alcoa's decision in early February to reduce its own capacity to support prices.)
Well, it appears that Chinese policy makers are having a change of heart. Planned capacity cuts haven't taken place, and China now looks to be in a net export position in 2012, which is bad for aluminum prices.
Of greater concern, the Chineseeconomy appears to be slowing, so demand may soon slump even as supply remains too high. Consider this: When I first recommended this stock in early January , there were 222 million tons of aluminum in the primary Shanghai metals storage facility. Two months later, that figure has spiked to 361 million. The fact that global aluminum prices are now a bit higher is largely due to the relief rally associated with the easing of the Greek crisis.
To be sure, the amount of aluminum stored in the primary warehouse in London is 15 times larger, and this figure is up a modest 2% to 5.1 million tons. Still, it's China's impact on aluminum prices that has me concerned. Aluminum can't rally if China slows further.
Action to Take --> I will sell 500 shares of Alcoa two trading days after you read this. I remain sobullish on the long-term opportunities for this company that I will await entry points to rebuild that position back to the 1,000-share level. This would likely come if Alcoa slips back below $9, or global aluminum inventories start to pull back.
P.S. -- Don't miss a single update. Go here to have updates and new investment ideas for my $100,000 Portfolio delivered straight to your inbox, free for a limited time.
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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I'm starting the process by selling half of my position (or 500 shares ) in Alcoa (NYSE: AA ). StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios. It's impressive enough, though fairly thin tradingvolume doesn't give a lot of confidence that the rally can push the market higher still in coming weeks.
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I'm starting the process by selling half of my position (or 500 shares ) in Alcoa (NYSE: AA ). StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios. Consider this: When I first recommended this stock in early January , there were 222 million tons of aluminum in the primary Shanghai metals storage facility.
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I'm starting the process by selling half of my position (or 500 shares ) in Alcoa (NYSE: AA ). StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios. Shares are up roughly 8% since I bought them, roughly in line with the rise in aluminum pricing on thespot market .
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I'm starting the process by selling half of my position (or 500 shares ) in Alcoa (NYSE: AA ). StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios. (I was also heartened by Alcoa's decision in early February to reduce its own capacity to support prices.)
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1662.0
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2012-03-09 00:00:00 UTC
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It's Time to Load up on These Cyclical Stocks
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AA
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https://www.nasdaq.com/articles/its-time-load-these-cyclical-stocks-2012-03-09
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nan
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nan
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Although the U.S. economy has recently been on an unpredictable path, get ready to see more typical economic patterns take root. The economy is just get its footing now and should be a bit better in 2013. And, if history is any guide, it will have practically recovered by the middle of this decade.
To be sure, a lot of companies are still speaking of challenging industry conditions, but remember that "investors always look ahead." So they will soon start buying up companies that tend to really benefit when the economic cycle is in a clear upward phase. Smart investors will want to begin looking at these stocks now.
Tricky to value
At first blush, these cyclical stocks may not seem especially cheap relative to the rest of the market . They have to sport medium to large price-to-earnings (P/E) ratios on near-term results, but need to be valued against what they might earn when the economy is on strong footing, known as "peak-cycle profits." These stocks rarely trade for more than 10 times peak-cycle earnings , so several bargains abound when using this yardstick.
Take Manitowoc (NYSE: MTW ) as an example. This maker of cranes and other construction equipment saw sales and profits start to rise early in the last decade, hitting the peak of the cycle in late 2007 and early 2008.
At the end of 2003, this stock looked expensive, trading for more than 90 times profits. At the end of 2004, the P/E ratio was a still-high 25 -- based on trailing earnings -- but 3.5 times what the company would generate by 2007. The fact that the stock ran to $45 by November 2007 (before a year-end pullback to $36.67) was a clear case of too much investor enthusiasm.
This stock is now below $14, and by using the rule of thumb of a peak-cycle P/E ratio of 10, it could move up to $25 or $30 in the next few years. "There is still substantial upside to a 2014E mid-cycle value of $23 in a continued U.S. nonresidential recovery," Goldman Sachs analysts note. They say we won't see the peak of the cycle until a year or two after that, so shares will likely move past that price target once analysts actually start speaking of peak-cycle results.
Joy Global (NYSE: JOY ) is another deeply cyclical stock that could rise steadily higher as the economy strengthens. Shares of this mining equipment firm have fallen nearly 20% since late January to a recent $79, but could power into the triple-digits in the next 12-18 months.
Investors have been concerned that a drop in demand for coal would negatively affect sales for this company's coal-mining equipment. But they may be overlooking the fact that a steady spate of acquisitions has pushed Joy Global's exposure to the coal-mining industry to less than 25%. Analysts see Joy Global's earnings rising from $6 per share in fiscal (October) 2011 to roughly $8.50 per share by fiscal 2013. If history is any guide, then this figure could hit $11 or $12 by the middle of the decade, and shares will eventually be valued at around 10 times that peak-cycle number.
Analogies to the past cycle don't necessarily apply here. In recent years, Joy Global has made a series of acquisitions that should push sales and earnings per share ( EPS ) well above the previous cycle peak. For example, the company is expected to generate $6.4 billion in sales by fiscal 2013, and perhaps $8 billion by the middle of the decade. This is well above the $3 billion in average annual sales seen in fiscal 2005 through fiscal 2008.
Of course, my favorite deeply-cyclical stock is Alcoa (NYSE: AA ) , which is affected by unit volumes and unit pricing.
In the last cycle, in 2007, sales peaked at around $29 billion, while EPS hit $3.24. Sales have now fallen below $25 billion, and it's the $4 billion difference in revenue that really explains the profit swing, as Alcoa had been selling aluminum at far above cost back in 2007. These days, Alcoa's EPS is stuck in the $0.50 to $0.75 range.
I added this stock to my $100,000 Real-Money Portfolio , not because I expect to see Alcoa earn $3 a share any time soon. But I fully expect EPS to approach $2 by 2014, thanks to industry supply cuts that will eventually boost pricing. This stock could head to $20, or 10 times my peak-cycle forecast and roughly double where the stock sits now. The fact that this stock touched $40 in early 2008 tells you how enamored investors can become of deep-cycle stocks once they are hitting their stride.
Risks to Consider: These companies won't truly hit their stride until Europe has exited its current recession . This may not happen before 2013 or 2014.
Action to Take --> These are just a few examples of deep-cycle plays. Other stocks to research include Caterpillar (NYSE: CAT ) , Cummins (NYSE: CMI ) , Eaton (NYSE: ETN ) and Honeywell (NYSE: HON ) . None of these stocks looks like a bargain in the context of likely 2012 results, but all could move up sharply as investors grow more confident that the economy is building a head of steam as we move toward the middle of the decade.
[ Note: You can also follow along with my $100,000 Real-Money Portfolio trades free for a limited time. Simply click on this link to sign up .]
-- David Sterman
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, my favorite deeply-cyclical stock is Alcoa (NYSE: AA ) , which is affected by unit volumes and unit pricing. StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios. They have to sport medium to large price-to-earnings (P/E) ratios on near-term results, but need to be valued against what they might earn when the economy is on strong footing, known as "peak-cycle profits."
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Of course, my favorite deeply-cyclical stock is Alcoa (NYSE: AA ) , which is affected by unit volumes and unit pricing. StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios. This maker of cranes and other construction equipment saw sales and profits start to rise early in the last decade, hitting the peak of the cycle in late 2007 and early 2008.
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Of course, my favorite deeply-cyclical stock is Alcoa (NYSE: AA ) , which is affected by unit volumes and unit pricing. StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios. In recent years, Joy Global has made a series of acquisitions that should push sales and earnings per share ( EPS ) well above the previous cycle peak.
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Of course, my favorite deeply-cyclical stock is Alcoa (NYSE: AA ) , which is affected by unit volumes and unit pricing. StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios. For example, the company is expected to generate $6.4 billion in sales by fiscal 2013, and perhaps $8 billion by the middle of the decade.
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1663.0
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2012-03-07 00:00:00 UTC
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Alcoa and Ma'aden Begin Product Mix - Analyst Blog
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AA
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https://www.nasdaq.com/articles/alcoa-and-maaden-begin-product-mix-analyst-blog-2012-03-07
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nan
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nan
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Alcoa Inc. ( AA ) and Ma'aden announced the commencement of work of product mix for their new aluminium complex, which is currently under construction at Ras Al Khair in Saudi Arabia. The new line will offer automotive heat-treated and non-heat-treated sheet, building and construction sheet, and foil stock sheet.
The new product mix will enable the two companies to produce about 100,000 metric tons of a wide range of downstream products favorable for the company's complex product line. The project includes the best quality standards and ensures cost advantages, thus making Saudi Arabia one of the primary aluminum producers.
The project also takes into account the national strategy of developing national resources, thereby creating employment opportunities and national wealth. The project also replaces the imports with cost-effective, high-quality domestic products, while encouraging the expansion of the national industrial base.
Fluor, a global engineering company, will manage the development works while SMS Siemag will supply the mill equipment and heat treatment line equipment. The complex's smelter and rolling mill are expected to begin production in 2013. The aluminum smelter is expected to have an initial capacity of 740,000 metric tons per year while the rolling mill will be within the initial capacity of 380,000 metric tons per year.
In addition to the smelter and rolling mill, the joint venture will include a bauxite mine with an initial capacity of 4 million metric tons per year and an alumina refinery with an initial capacity of 1.8 million metric tons per year. The first production of the mine and refinery is scheduled for early 2014. Alcoa will provide alumina feedstock for the smelter in the interim.
Currently, Alcoa retains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating. We have recommended the shares of the company as Neutral for the long-term (more than 6 months). The company faces stiff competition from Aluminum Corporation of China Ltd. ( ACH ), Rio Tinto plc . ( RIO ) and BHP Billiton Ltd. ( BHP ).
ALCOA INC ( AA ): Free Stock Analysis Report
ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report
BHP BILLITN LTD ( BHP ): Free Stock Analysis Report
RIO TINTO-ADR ( RIO ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) and Ma'aden announced the commencement of work of product mix for their new aluminium complex, which is currently under construction at Ras Al Khair in Saudi Arabia. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. The project includes the best quality standards and ensures cost advantages, thus making Saudi Arabia one of the primary aluminum producers.
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ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa Inc. ( AA ) and Ma'aden announced the commencement of work of product mix for their new aluminium complex, which is currently under construction at Ras Al Khair in Saudi Arabia. The aluminum smelter is expected to have an initial capacity of 740,000 metric tons per year while the rolling mill will be within the initial capacity of 380,000 metric tons per year.
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ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa Inc. ( AA ) and Ma'aden announced the commencement of work of product mix for their new aluminium complex, which is currently under construction at Ras Al Khair in Saudi Arabia. The new product mix will enable the two companies to produce about 100,000 metric tons of a wide range of downstream products favorable for the company's complex product line.
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Alcoa Inc. ( AA ) and Ma'aden announced the commencement of work of product mix for their new aluminium complex, which is currently under construction at Ras Al Khair in Saudi Arabia. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. The new product mix will enable the two companies to produce about 100,000 metric tons of a wide range of downstream products favorable for the company's complex product line.
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1664.0
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2012-03-06 00:00:00 UTC
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Stock Market News for March 6, 2012 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-march-6-2012-market-news-2012-03-06
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nan
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nan
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US benchmarks ended in the negative zone for the second consecutive day as disappointing global cues and concerns about US economic data turned investor sentiment gloomy. Meanwhile, China cut its growth estimate and business activity contracted larger than expected in Europe, leading to a disappointing day for the markets. Investors remained cautious despite reports of an expansion in the service sector and lesser-than-expected decline in factory orders.
The Dow Jones Industrial Average (DJI) shed 0.1% to settle at 12,962.81. The Standard & Poor 500 (S&P 500) was down 0.4% and finished Monday's trading session at 1,364.33. The tech-laden Nasdaq Composite Index lost 0.9% and dropped to 2,950.48. The fear-gauge CBOE Volatility Index (VIX) gained 4.4% to move up to 18.05. Consolidated volumes on the New York Stock Exchange, NYSE Amex and Nasdaq were 6.08 billion shares lower than the daily average of 6.9 billion. Decliners had an upper hand over advancers, as for every three stocks that moved down on the NYSE, two stocks managed to move up.
Investors were in a cheerful mood for the major part of last week as benchmarks scaled new heights. However, as the markets opened on Monday investor sentiment remained low. The Dow is now precisely 37.19 points below 13, 000, the S&P 500 has dropped below its 14-day moving average and the Nasdaq is 49.52 points short of the 3, 000 level. Sixteen of the thirty Dow components finished in the red zone with Alcoa Inc. (NYSE: AA ), Caterpillar, Inc. (NYSE: CAT ), Intel Corporation (NASDAQ: INTC ) and United Technologies Corporation (NYSE: UTX ) leading the declines as they lost 3.6%, 2.1%, 1.4% and 1.5%, respectively.
The tech-laden Nasdaq index was the biggest losers among the fellow benchmarks and was largely dragged down by a 2.2% fall in Apple Inc. (NASDAQ: AAPL ). The Technology SPDR Select Sector Fund ( XLK ) dropped 0.9% and stocks including Microsoft Corporation (NASDAQ: MSFT ), Cisco Systems, Inc. (NASDAQ: CSCO ), QUALCOMM Incorporated (NASDAQ: QCOM ) and NVIDIA Corporation (NASDAQ: NVDA ) slumped 0.9%, 0.8%, 0.5% and 3.4%, respectively.
What primarily led to the markets' fall was the contraction of the Chinese growth rate. The world's second-largest economy growth rate for 2012 declined to 7.5%, the weakest in eight years. In the annual work report to the National People's Congress ( NPC ), Chinese Premier Wen Jiabao said: "We aim to promote steady and robust economic development, keep prices stable, and guard against financial risks by keeping the total money and credit supply at an appropriate level, and taking a cautious and flexible approach".
In addition, reports of a contraction in business activity from across the Atlantic also weighed down domestic sentiment. The composite Purchasing Managers' Index dropped to 49.3 from prior estimates of 49.7. Anything below 50 suggests a contraction in business activity. Thus, with shrinkage in business activity during February in Europe, recessionary fears have made some sort of a comeback.
Coming back to the domestic front, the Institute of Supply management reported that 'economic activity in the non-manufacturing sector expanded in February for the 26th consecutive month'. The report stated: "The NMI registered 57.3 percent in February, 0.5 percentage point higher than the 56.8 percent registered in January, and indicating continued growth at a faster rate in the non-manufacturing sector". The pace of growth was also better than expectations of 56.4. However, some portions of the report were a matter for concern. The Employment Index was down 1.7 percentage points to 55.7%, which reflected a slower rate of growth in employment. Additionally, "The Prices Index increased 4.9 percentage points to 68.4 percent, indicating prices increased at a faster rate in February when compared to January".
Separately, the Commerce Department reported that new orders for manufactured goods in January fell $4.8 billion or 1% to $462.6 billion. Consensus estimates had predicted the fall to be around 1.3%. The report also stated: "Inventories, up twenty-seven of the last twenty-eight months, increased $3.9 billion or 0.6 percent to $614.7 billion. This was at the highest level since the series was first published on a NAICS basis in 1992 and followed a 0.2 percent December increase".
ALCOA INC ( AA ): Free Stock Analysis Report
APPLE INC ( AAPL ): Free Stock Analysis Report
CATERPILLAR INC ( CAT ): Free Stock Analysis Report
CISCO SYSTEMS (CSCO): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis Report
NVIDIA CORP (NVDA): Free Stock Analysis Report
QUALCOMM INC (QCOM): Free Stock Analysis Report
UTD TECHS CORP (UTX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sixteen of the thirty Dow components finished in the red zone with Alcoa Inc. (NYSE: AA ), Caterpillar, Inc. (NYSE: CAT ), Intel Corporation (NASDAQ: INTC ) and United Technologies Corporation (NYSE: UTX ) leading the declines as they lost 3.6%, 2.1%, 1.4% and 1.5%, respectively. The tech-laden Nasdaq index was the biggest losers among the fellow benchmarks and was largely dragged down by a 2.2% fall in Apple Inc. (NASDAQ: AAPL ). ALCOA INC ( AA ): Free Stock Analysis Report APPLE INC ( AAPL ): Free Stock Analysis Report CATERPILLAR INC ( CAT ): Free Stock Analysis Report CISCO SYSTEMS (CSCO): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report NVIDIA CORP (NVDA): Free Stock Analysis Report QUALCOMM INC (QCOM): Free Stock Analysis Report UTD TECHS CORP (UTX): Free Stock Analysis Report To read this article on Zacks.com click here.
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Sixteen of the thirty Dow components finished in the red zone with Alcoa Inc. (NYSE: AA ), Caterpillar, Inc. (NYSE: CAT ), Intel Corporation (NASDAQ: INTC ) and United Technologies Corporation (NYSE: UTX ) leading the declines as they lost 3.6%, 2.1%, 1.4% and 1.5%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report APPLE INC ( AAPL ): Free Stock Analysis Report CATERPILLAR INC ( CAT ): Free Stock Analysis Report CISCO SYSTEMS (CSCO): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report NVIDIA CORP (NVDA): Free Stock Analysis Report QUALCOMM INC (QCOM): Free Stock Analysis Report UTD TECHS CORP (UTX): Free Stock Analysis Report To read this article on Zacks.com click here. The tech-laden Nasdaq index was the biggest losers among the fellow benchmarks and was largely dragged down by a 2.2% fall in Apple Inc. (NASDAQ: AAPL ).
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ALCOA INC ( AA ): Free Stock Analysis Report APPLE INC ( AAPL ): Free Stock Analysis Report CATERPILLAR INC ( CAT ): Free Stock Analysis Report CISCO SYSTEMS (CSCO): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report NVIDIA CORP (NVDA): Free Stock Analysis Report QUALCOMM INC (QCOM): Free Stock Analysis Report UTD TECHS CORP (UTX): Free Stock Analysis Report To read this article on Zacks.com click here. Sixteen of the thirty Dow components finished in the red zone with Alcoa Inc. (NYSE: AA ), Caterpillar, Inc. (NYSE: CAT ), Intel Corporation (NASDAQ: INTC ) and United Technologies Corporation (NYSE: UTX ) leading the declines as they lost 3.6%, 2.1%, 1.4% and 1.5%, respectively. The tech-laden Nasdaq index was the biggest losers among the fellow benchmarks and was largely dragged down by a 2.2% fall in Apple Inc. (NASDAQ: AAPL ).
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Sixteen of the thirty Dow components finished in the red zone with Alcoa Inc. (NYSE: AA ), Caterpillar, Inc. (NYSE: CAT ), Intel Corporation (NASDAQ: INTC ) and United Technologies Corporation (NYSE: UTX ) leading the declines as they lost 3.6%, 2.1%, 1.4% and 1.5%, respectively. The tech-laden Nasdaq index was the biggest losers among the fellow benchmarks and was largely dragged down by a 2.2% fall in Apple Inc. (NASDAQ: AAPL ). ALCOA INC ( AA ): Free Stock Analysis Report APPLE INC ( AAPL ): Free Stock Analysis Report CATERPILLAR INC ( CAT ): Free Stock Analysis Report CISCO SYSTEMS (CSCO): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report NVIDIA CORP (NVDA): Free Stock Analysis Report QUALCOMM INC (QCOM): Free Stock Analysis Report UTD TECHS CORP (UTX): Free Stock Analysis Report To read this article on Zacks.com click here.
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1665.0
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2012-03-05 00:00:00 UTC
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Alcoa Looks to Hike Prices - Analyst Blog
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AA
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https://www.nasdaq.com/articles/alcoa-looks-to-hike-prices-analyst-blog-2012-03-05
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nan
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nan
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According to Reuters, the world's largest producer of aluminum producer, Alcoa Inc. ( AA ) is targeting to hike the prices by 5% for certain coil and flat sheet products. The increased price would be charged for new orders from March 1, 2012.
The price hike would encompass the products like 2xxx and 7xxx HT Coil for coil products as well as Flat Sheet. The company hiked the prices of the alloys in response to their soaring demand in the aerospace industry.
In the recently reported quarter Alcoa reported an adjusted loss of 3 cents per share, missing the Zacks Consensus Estimate profit of 1 cent. Total revenues increased 6% year over year to $6 billion. The Zacks Consensus Estimate for earnings per share is pegged at a loss per share of 3 cents.
The company expects global aluminum demand to grow 7% along with a global deficit in primary aluminum supply. It also expects demand to increase from its long-term growth projects in China, Brazil, Australia, Jamaica and Suriname. It expects alumina and aluminum production capacity to increase in these overseas markets.
However, the rising energy and raw material costs are likely to constrain margin expansion, especially caustic soda. Moreover, higher-than-expected input costs or unplanned outages could negatively impact Alcoa.
Currently, the shares of Alcoa retain a Zacks #3 Rank (short-term Hold recommendation). It competes with the likes of Aluminum Corporation of China Limited ( ACH ) and privately held Rio Tinto Alcan Inc.
Based in Pennsylvania, Alcoa Inc. is among the world's leading producers of primary and fabricated aluminum and alumina. It involves mining, refining, smelting, fabricating and recycling of aluminum. The company employs approximately 61,000 people in 31 countries across the world.
ALCOA INC ( AA ): Free Stock Analysis Report
ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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According to Reuters, the world's largest producer of aluminum producer, Alcoa Inc. ( AA ) is targeting to hike the prices by 5% for certain coil and flat sheet products. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report To read this article on Zacks.com click here. The company hiked the prices of the alloys in response to their soaring demand in the aerospace industry.
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According to Reuters, the world's largest producer of aluminum producer, Alcoa Inc. ( AA ) is targeting to hike the prices by 5% for certain coil and flat sheet products. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report To read this article on Zacks.com click here. In the recently reported quarter Alcoa reported an adjusted loss of 3 cents per share, missing the Zacks Consensus Estimate profit of 1 cent.
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According to Reuters, the world's largest producer of aluminum producer, Alcoa Inc. ( AA ) is targeting to hike the prices by 5% for certain coil and flat sheet products. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report To read this article on Zacks.com click here. It competes with the likes of Aluminum Corporation of China Limited ( ACH ) and privately held Rio Tinto Alcan Inc. Based in Pennsylvania, Alcoa Inc. is among the world's leading producers of primary and fabricated aluminum and alumina.
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According to Reuters, the world's largest producer of aluminum producer, Alcoa Inc. ( AA ) is targeting to hike the prices by 5% for certain coil and flat sheet products. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report To read this article on Zacks.com click here. In the recently reported quarter Alcoa reported an adjusted loss of 3 cents per share, missing the Zacks Consensus Estimate profit of 1 cent.
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1666.0
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2012-03-02 00:00:00 UTC
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This Former Tech Giant Could Make a MAJOR a Turnaround
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AA
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https://www.nasdaq.com/articles/former-tech-giant-could-make-major-turnaround-2012-03-02
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nan
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nan
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A quick review of the stocks contained in my $100,000 Real-Money Portfolio may give the impression that I'm a big fan ofturnaround plays.
That's actually not the case.
Companies like Ford (NYSE: F ) are doing very well, and simply suffer from a low valuation assigned to its business. Alcoa (NYSE: AA ) , trading at more than 75% off it's five-year high, is in fine operational shape, but at the bottom of its cycle. Hasbro (NYSE: HAS ) is being punished because it lacks "timeliness ," because current initiatives won't fully pay off until 2013 and 2014.
You get the idea...
Indeed, there are ample other sources for investors to find solidturnaround ideas. It's simply not the over-arching theme of this portfolio. But I'm making an exception for my newest pick. It's a once-great company that is struggling for relevance. Its management has had to make a series of very tough decisions, most of which have yet to truly pay off. And there is the real possibility that a hoped-for turnaround will simply never take root.Shares have roughly 25% downside if the business doesn't turn around. But the upside is so significant, and early signals from the turnaround are sufficiently promising, that I need to add it to the portfolio now -- before sentiment around the company changes.
I am talking about Nokia (NYSE: NOK ) , which was the world's dominant maker of cell phones long before Apple (Nasdaq: AAPL ) and Google (Nasdaq: GOOG ) entered the scene.
I have written about Nokia several times before, and for the sake of brevity in this article, I ask you to review what I have previously covered...
Back in November, I explained why short-sellers thought Nokia was headed for further trouble. In fact, the cumulative short position has risen further since then to a recent 216 millionshares , or 6% of thefloat .
In this article , published six weeks ago, I started to see Nokia in a morebullish light, noting that a symbiotic relationship with Microsoft (Nasdaq: MSFT ) was finally looking more promising.
Another tough month
Fast-forward to last week, where Nokia made a series of presentations at the Mobile World Congress in Barcelona. In a nutshell, Nokia discussed its new phone strategy in greater detail. The Lumia phones will target four slices of themarket , from the low-end 610 model, to the high-end 900 model. (Nokia also revealed a new high-end phone using its legacy Symbian software with features such as a 41 mega-pixel camera, which analysts quickly deemed irrelevant.)
Going into the event, shares surged to $5.65 on an intra-day basis on February 21, the highest level in nearly a month. Investors were bracing for a game-changing announcement, and they didn't get one. Shares are now back close to $5, not far from the $4.50 lows seen in mid-December.
Why now?
Despite the gloomy stock price, an increasing number of technology journalists have come around to the view that Nokia's Lumia phones are quite compelling and can hold their own against the iPhone and Android phones. Yet it's two other factors that could provide a huge tailwind for Nokia.
The first is Microsoft's software efforts. The software giant has been derided as an also-ran these days, living off the fat that Windows and Office software have generated. Yet Microsoft's new software, which will have a consistent look and feel across PCs, tablets and (Nokia's smartphones), is garnering rave reviews. (Please take a moment to read what The New York Times ' David Pogue recently wrote in this piece .)
He's not alone. The Wall Street J ournal's Walt Mossberg and others think the Microsoft/Nokia platform is truly competitive and needs to be taken seriously. I'm especially intrigued to see how Nokia phones incorporate Microsoft's Skype technology, which is still inbeta testing. That could be a feature built right into the Microsoft operating system that compels consumers to switch from the Google/Appleduopoly .
In the hands of the carriers
To an extent, the success of the Lumia phones is beyond Nokia's control. Instead, it's up to the wireless service providers to get behind theoffering . And they are, in a big way. Major European carriers are now pushing Lumia phones pretty hard in their stores and in their advertising. That's also the case in a number ofemerging markets , where the Nokia brand is still quite dominant. Early sales results are promising, but there's a long way to go. Here in the United States, AT&T (NYSE: T ) and T-Mobile are set to make a big push this spring and summer, and Verizon (NYSE: VZ ) and Sprint (NYSE: S ) may follow suit.
Why would these carriers bother? Because they have repeatedly stated that a world dominated by Apple and Google is bad for business. Thisduopoly gives Apple and Google far too much power over the ecosystem, and it's now apparent that a third viable platform is in everyone's interest (except for Apple and Google).
In each of the upcoming months, investors will be able to clearly track Nokia's efforts to gainmarket share with the Lumia phones.
The Downside Protection --> Analysts expect Nokia to earn roughly $0.15 a share this year, with this figure moving up to the $0.30 to $0.35 range in 2013. The company currently has $10.9 billion in gross cash and $6.6 billion in net cash ($1.70 a share). Unless Nokia really struggles in 2012 to meet fairly modest expectations and ends up losing money, shares likely have downside support in the $4 area. Shares should find support frombuyout speculation , if the turnaround fails to take shape.
Upside Triggers --> This is all aboutmarket share . Investors currently assume that the Lumia phones will make only a slight dent in Apple and Google's hegemony. The next month or two will provide a series of data points regarding global carrier adoption, but it will likely be the summer or the fall before we can truly determine whether Nokia is on the path to a robust turnaround.
Action to Take -->I will buy 800 shares (or roughly $4,200 worth) of Nokia two trading days after you read this.
That's a smaller-than-usual opening position for me, because I want to scale up my position only when more positive data points emerge. I also suggest investors put in astop-loss order at $4.50, in the event that it becomes apparent that the Lumia phones aren't gaining the necessary traction. Indeed, I would be a seller of this stock if a potential near-term turnaround gets pushed into becoming a long-term turnaround. Shares would simply be dead money at that point. Shares can be bought under $7, though that is a fluid target and could rise as the turnaround takes shape.
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of AA, F, HAS, GOOG, T in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa (NYSE: AA ) , trading at more than 75% off it's five-year high, is in fine operational shape, but at the bottom of its cycle. I am talking about Nokia (NYSE: NOK ) , which was the world's dominant maker of cell phones long before Apple (Nasdaq: AAPL ) and Google (Nasdaq: GOOG ) entered the scene. StreetAuthority LLC owns shares of AA, F, HAS, GOOG, T in one or more if its "real money" portfolios.
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I am talking about Nokia (NYSE: NOK ) , which was the world's dominant maker of cell phones long before Apple (Nasdaq: AAPL ) and Google (Nasdaq: GOOG ) entered the scene. Alcoa (NYSE: AA ) , trading at more than 75% off it's five-year high, is in fine operational shape, but at the bottom of its cycle. StreetAuthority LLC owns shares of AA, F, HAS, GOOG, T in one or more if its "real money" portfolios.
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I am talking about Nokia (NYSE: NOK ) , which was the world's dominant maker of cell phones long before Apple (Nasdaq: AAPL ) and Google (Nasdaq: GOOG ) entered the scene. Alcoa (NYSE: AA ) , trading at more than 75% off it's five-year high, is in fine operational shape, but at the bottom of its cycle. StreetAuthority LLC owns shares of AA, F, HAS, GOOG, T in one or more if its "real money" portfolios.
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Alcoa (NYSE: AA ) , trading at more than 75% off it's five-year high, is in fine operational shape, but at the bottom of its cycle. I am talking about Nokia (NYSE: NOK ) , which was the world's dominant maker of cell phones long before Apple (Nasdaq: AAPL ) and Google (Nasdaq: GOOG ) entered the scene. StreetAuthority LLC owns shares of AA, F, HAS, GOOG, T in one or more if its "real money" portfolios.
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1667.0
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2012-02-23 00:00:00 UTC
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Alcoa and CPI Sign Deal - Analyst Blog
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AA
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https://www.nasdaq.com/articles/alcoa-and-cpi-sign-deal-analyst-blog-2012-02-23
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nan
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nan
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Aluminum giant Alcoa Inc. ( AA ) and China Power Investment Corporation ( CPI ) entered into a deal to form a joint venture (JV) for producing high-end fabricated aluminum products for China. The terms of the agreement are yet to be disclosed.
The new company, named Alcoa CPI (China) Aluminum Investment Co. Ltd., will be based in Shanghai. Alcoa is expected to hold a major portion of the company's share.
The agreement for the JV was signed by Alcoa's Chairman and CEO and the President of CPI in Beijing. The joint venture was announced in September 2011 by the companies after they signed a Letter of Intent.
The joint venture will develop high-end engineered products that will be used in many industries including automotive, aerospace, packaging and consumer electronics. Both the companies believe that this deal will increase their competitiveness and will lead to profitable growth while facilitating them to serve their customers better.
In January 2012, Alcoa, the largest U.S. aluminum producer, reported loss in its fourth-quarter 2011 results. The company posted a loss from continuing operations of $193 million, or 18 cents per share compared with a profit of $172 million, or 15 cents per share in the comparable quarter last year.
Excluding restructuring charge of $159 million and other items, Alcoa's loss came in at 3 cents per share, below the Zacks Consensus estimate profit of 1 cent. It is the company's first loss in the last nine quarters.
For full-year 2011, Alcoa reported income from continuing operations of $614 million, or $0.55 per share, which is more than double of 2010 results. The disappointing results were driven by higher costs of energy and transportation.
Though revenues for the quarter rose 6% year over year to $6 billion, business was down in most areas including construction, industrial products, packaging and commercial transportation. Besides, sales to automobile manufacturers fell 2%. For 2011, revenue rose to $25 billion from $21 billion in fiscal year 2010.
For 2012, Alcoa expects global aluminum demand to grow 7% due to the worldwide deficit in primary aluminum supply. Alcoa's growth projection is ahead of the 6.5% rate, which is required to meet its forecast of doubling the global aluminum demand between 2010 and 2020.
In addition, Alcoa believes that growing demand for aluminum, combined with market-related production cutbacks, will result in a global aluminum industry deficit of 600,000 metric tons in 2012
We believe that Alcoa's cost reduction efforts are, to some extent, offsetting the negative impact of higher energy and raw material costs on profitability. The company is divesting underperforming assets through its restructuring program.
The annual global consumption of aluminum products, both upstream and downstream, is expected to double by 2020. This consumption boom will be driven primarily by growth in China, India, Russia and Brazil, whose demographics are accelerating development.
Alcoa retains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) "Hold" rating and we have recommended the shares of the company as "Neutral" for the long-term (more than 6 months). Alcoa faces stiff competition from Aluminum Corporation Of China Limited ( ACH ), Rio Tinto plc. ( RIO ) and BHP Billiton Ltd. ( BHP ).
ALCOA INC ( AA ): Free Stock Analysis Report
ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report
BHP BILLITN LTD ( BHP ): Free Stock Analysis Report
RIO TINTO-ADR ( RIO ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aluminum giant Alcoa Inc. ( AA ) and China Power Investment Corporation ( CPI ) entered into a deal to form a joint venture (JV) for producing high-end fabricated aluminum products for China. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. The joint venture will develop high-end engineered products that will be used in many industries including automotive, aerospace, packaging and consumer electronics.
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Aluminum giant Alcoa Inc. ( AA ) and China Power Investment Corporation ( CPI ) entered into a deal to form a joint venture (JV) for producing high-end fabricated aluminum products for China. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. The company posted a loss from continuing operations of $193 million, or 18 cents per share compared with a profit of $172 million, or 15 cents per share in the comparable quarter last year.
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Aluminum giant Alcoa Inc. ( AA ) and China Power Investment Corporation ( CPI ) entered into a deal to form a joint venture (JV) for producing high-end fabricated aluminum products for China. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Alcoa believes that growing demand for aluminum, combined with market-related production cutbacks, will result in a global aluminum industry deficit of 600,000 metric tons in 2012 We believe that Alcoa's cost reduction efforts are, to some extent, offsetting the negative impact of higher energy and raw material costs on profitability.
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Aluminum giant Alcoa Inc. ( AA ) and China Power Investment Corporation ( CPI ) entered into a deal to form a joint venture (JV) for producing high-end fabricated aluminum products for China. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa is expected to hold a major portion of the company's share.
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1668.0
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2012-02-22 00:00:00 UTC
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The Best Way to Profit from Rising Oil Prices Right Now
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AA
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https://www.nasdaq.com/articles/best-way-profit-rising-oil-prices-right-now-2012-02-22
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nan
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nan
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The U.S. consumer remains in a precarious state. Wages are rising at a slow pace, keeping many workers from boosting their earning -- and spending -- power on an inflation-adjusted basis. In fact, consumers may start to feel that they are losing ground if gasoline prices hit $4 a gallon this spring, as many economists now expect. The price of West Texas Intermediate Crude (WTI), thebenchmark for U.S. oil prices, has been surging lately, and seasonal effects imply "pain at the pump," come this spring.
I've been thinking about oil prices as I review the holdings in my $100,000 Real-Money Portfolio . Stocks such as Ford ( F ) , Alcoa ( AA ) and Hasbro ( HAS ) could all be vulnerable to rising oil prices if consumers start to retrench.
Tohedge against such a possibility, it's time to add exposure to crude oil. If prices do indeed rise, then an oil producer is likely to see its stock rise by a significant amount, as was the case in the oil "Super-Spike" of 2008.
[block:block=16]Of course, I could simply look to acquireshares of an "oil major" such as ExxonMobil ( XOM ) or ConocoPhillips ( COP ) . But I've got my eye on an oil stock with potentially much more upside. Best of all, this company's stock looks undervalued even if oil prices pull back by a moderate amount.
I'm talking about Marathon Oil (MRO) . The company got its start back in 1887 (known then as the Ohio Oil Co.), was acquired by U.S. Steel (X) in 1982, and was spun off as an independent company in 2002. Marathon has recently completed a pair of transactions that help establish broadly-diversified regional exposure, while setting the stage for robustfree cash flow in coming years. Against that backdrop,shares are quite inexpensive, trading for less than four times projected 2012EBITDA .
A cleaner story
Oil production is a very profitable business. Yet many oil-related businesses such as petrochemicals and refining are not always consistent money-makers. That's why Marathon spun off Marathon Petroleum (MPC) , it's oil refining division, last July. Yet it's a move made a month earlier that has really altered Marathon's trajectory...
In June 2011, Marathon announced plans to acquire Hilcorp Resources Holdings for a hefty $3.5 billion. At the time that seemed to be a stiff purchase price, representing the most-richly valued purchase in the Eagle Ford shale on a per-acre basis. Half a year later, some still question the wisdom of the move, noting that EOG Resources' (EOG) production in Eagle Ford appears to be a lot higher than Marathon's Hilcorp acreage.
What those detractors may be missing is that EOG had a two-year head start in plunking down wells. With each passing quarter, Marathon's output in the Eagle Ford shale should rise ever higher. That acreage complements Marathon's already strong presence in the Bakken shale.
But this isn't just another shale play. The charm of thisbusiness model is that Marathon is exposed to oil (60% of current production) and gas (about 40%), and has operations in the United States and abroad. This insulates the company from the vagaries associated with oil and gas prices, while removing country-specific risk. And Marathon actually derives more than half of its $51.6 billion in 2011 sales were from foreign projects in places like Norway, Poland, Kazakhstan and Libya. (Production in Libya, of course, took a hit in 2011, but should be back to full output later this year.)
Perhaps the greatest appeal is the relative maturity of the company's operations. Marathon is spending heavily in 2012 to ramp up output in the acquired Eagle Ford acreage, but otherwise has relatively fewer capital requirements in most of its other regions. And the company's various acreage plays appear to have an extended usable life, perhaps into the latter part of this decade, so Marathon's production isn't likely to drop due to well depletion, as is the case with some other energy firms.
And that sets the stage for ongoing robustfree cash flow generation. A spike in capital spending, from about $3.4 billion in 2011 to about $4.8 billion in 2012, is likely to pushfree cash flow in 2012 down to around $1.5 billion, from $3.5 billion in 2011. But that figure should rebound to the $2.5 billion to 3.0 billion-level for 2013 and stay there for an extended period, assuming energy prices stay constant. This means Marathon sports a free cash flow yield in excess of 10% based on 2013 and subsequent projected results.
Note that phrase "assuming energy prices stay constant." Management uses abenchmark price of $85 per barrel of West Texas Intermediate (WTI) crude (and around $100 for the pricier Brent crude oil) in its forecasts. Notably, thespot market is already $15 to $20 above that figure and could head up another $15 if global economic activity picks up in coming years or tensions in the Middle East rise further.
Simply put, I like this stock with that West Texas oil price at $85 -- I really, really like it at $100, and I absolutely love it at $115. As a point of reference, analysts at JP Morgan recently boosted their WTI forecast to $111 a barrel by the end of 2012. (It's important not to confuse this with Brent Crude, which is often $10 to $20 per barrel more expensive.)
The Downside Protection --> Shares likely have tangible support at current levels, trading at around four times projectedEBITDA , which assumes $85 for a barrel of WTI crude. If the U.S.economy slumped anew and oil prices fell back to levels seen in 2009 and 2010, then shares would likely fall from the current $35 to a range of $25 to $30.
Upside Triggers --> Management appears to have set a fairly conservative tone in terms of expected output in the United States and abroad. All signs point to Marathon exceeding the production targets it has laid out. Assuming $85 WTI crude and production output that looks quite attainable (but above the low guidance), this stock could move up from the current $35 into the low $40s. If WTI stays near $100 for the rest of 2012 and into 2013, then shares are likely to approach $50. If WTI keeps rising up toward $115, then shares could hit $60. The downside appears well in place, and the potential upside appears to be significant.
Frankly, if crude oil prices fail to rally, then the rest of my $100,000 Real-Money Portfolio will be on more solid ground. So look at a position in Marathon Oil as portfolio protection, and not just another potentially winning trade.
Action to Take --> 48 hours after you read this, I will buy 350 shares (or roughly $12,250 worth). That's the largest purchase yet for my portfolio. I also suggest investors put in a stop-loss at $30, in the event oil prices slump. I'll be a seller of this stock if that happens, 48 hours after it moves below $30. My thinking is shares are a good buy under $40.
[ Note: Remember, my $100,000 Portfolio investments are being made available for free for a limited time only. Be sure to take advantage of this limited-timeoffer by having my latest analysis delivered straight to your email inbox as soon as it's published. Go here to sign up .]
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of F, A, HAS in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks such as Ford ( F ) , Alcoa ( AA ) and Hasbro ( HAS ) could all be vulnerable to rising oil prices if consumers start to retrench. Marathon has recently completed a pair of transactions that help establish broadly-diversified regional exposure, while setting the stage for robustfree cash flow in coming years. And the company's various acreage plays appear to have an extended usable life, perhaps into the latter part of this decade, so Marathon's production isn't likely to drop due to well depletion, as is the case with some other energy firms.
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Stocks such as Ford ( F ) , Alcoa ( AA ) and Hasbro ( HAS ) could all be vulnerable to rising oil prices if consumers start to retrench. The price of West Texas Intermediate Crude (WTI), thebenchmark for U.S. oil prices, has been surging lately, and seasonal effects imply "pain at the pump," come this spring. Marathon has recently completed a pair of transactions that help establish broadly-diversified regional exposure, while setting the stage for robustfree cash flow in coming years.
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Stocks such as Ford ( F ) , Alcoa ( AA ) and Hasbro ( HAS ) could all be vulnerable to rising oil prices if consumers start to retrench. The price of West Texas Intermediate Crude (WTI), thebenchmark for U.S. oil prices, has been surging lately, and seasonal effects imply "pain at the pump," come this spring. If prices do indeed rise, then an oil producer is likely to see its stock rise by a significant amount, as was the case in the oil "Super-Spike" of 2008.
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Stocks such as Ford ( F ) , Alcoa ( AA ) and Hasbro ( HAS ) could all be vulnerable to rising oil prices if consumers start to retrench. Management uses abenchmark price of $85 per barrel of West Texas Intermediate (WTI) crude (and around $100 for the pricier Brent crude oil) in its forecasts. The Downside Protection --> Shares likely have tangible support at current levels, trading at around four times projectedEBITDA , which assumes $85 for a barrel of WTI crude.
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1669.0
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2012-02-17 00:00:00 UTC
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Stock Market News for February 17, 2012 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-february-17-2012-market-news-2012-02-17
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nan
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nan
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Greek developments receded into the background on Thursday as investors focused on encouraging domestic economic data which lifted the benchmarks to new highs for the year. Following encouraging data from both the jobs and housing market, the Dow rallied to its highest level since May 19, 2008. Moreover, all of the 10 industry groups in the Standard & Poor finished in the green.
The Dow Jones Industrial Average (DJI) recorded triple-digit gains, surging 123 points or 1% to finish the day at 12,904.08. The Standard & Poor 500 (S&P 500) jumped 1.1% and closed yesterday's trading session at 1,358.04. The tech-laden Nasdaq Composite Index settled at 2,959.85, rising 1.5% or 44 points. The fear-gauge CBOE Volatility Index slumped, losing 9.1% to finish at 19.22. Consolidated volumes on the New York Stock Exchange, NYSE Amex and Nasdaq, were roughly 7.33 billion shares, marginally than the daily average of 7 billion. On the NYSE, for every single stock that ended in the red, three stocks powered their way into positive territory.
With Thursday's robust gains, the benchmarks are now in the positive zone for the week. There is a day more to go for the week to conclude, and a decent trading session on Friday could help the markets end another week on a positive note. Till yesterday's close of trading, the Dow, S&P 500 and Nasdaq were up 0.8%, 1.2%, and 1.9%, respectively, for the week.
Investors have every reason to cheer the benchmarks' upward movement. Since early October last year, the Dow and Nasdaq are up 21% and 14%, respectively. The Nasdaq also recorded its best closing level since December 2000 and is just 40 points away from hitting 3, 000. As for the blue-chip index, it touched its highest point since May 19, 2008. Moreover, the Dow is precisely 95.92 points shy of touching 13, 000. With a few more robust sessions, the Dow will hit 13, 000 very soon and register new multi-year highs.
Only one of the 30 Dow components ended the day on the losing side. It was Kraft Foods Inc. (NYSE: KFT ) that lost 0.1% to end in the negative zone. Stocks like Alcoa Inc. (NYSE: AA ), American Express Company (NYSE: AXP ), Bank of America Corporation (NYSE: BAC ), E.I. du Pont de Nemours (NYSE: DD ), Hewlett-Packard Company (NYSE: HPQ ), JP Morgan Chase & Co. (NYSE: JPM ), Microsoft Corporation (NASDAQ: MSFT ) led the gains among all the other 29 gainers for the Dow and they were up 1.8%, 2.6%, 4.0%, 2.2%, 2.6%, 1.6% and 4.1%, respectively.
Financial stocks were among key winners for the Dow yesterday. Financials were among the best performing stocks and the Financial SPDR Select Sector Fund ( XLF ) surged 1.6%. Citigroup, Inc. (NYSE: C ), The Goldman Sachs Group, Inc. (NYSE: GS ), Morgan Stanley (NYSE: MS ) and UBS AG (NYSE: UBS ) were the other financial stocks that posted gains, and they increased 3.1%, 1.4%, 1.2% and 3.4%, respectively.
Materials was the other sector that clocked up robust gains among the 10 industry groups of the S&P. The Materials Select Sector SPDR ( XLB ) surged 1.8% and stocks such as AK Steel Holding (NYSE: AKS ), Nucor Corporation (NYSE: NUE ), Freeport-McMoRan Copper & Gold, (NYSE: FCX ), Potash Corporation (NYSE: POT ) gained 2.4%, 2.3%, 3.4% and 2.4%, respectively.
Coming to economic data, both the jobs and housing market had positives to share with the investors. The U.S. Department of Labor reported another drop in initial claims, painting a rosy picture of declining unemployment. The data suggests that the advance figure for seasonally adjusted initial claims was 348,000, for the week ending February 11, declining 13,000 from the previous week's revised figure of 361,000. Consensus estimates had predicted initial claims to come in at 363,000.
Meanwhile, according to a joint release from the U.S. Census Bureau and the Department of Housing and Urban Development, single-family housing starts in January came in at 508,000, dropping 1.0% from December's revised figure. However, both building permits and housing starts reflected encouraging trends, lifting the broader sentiment. According to the report, privately-owned housing units authorized by building permits in January increased 0.7% from December to a seasonally adjusted annual rate of 676,000. As for the housing starts, the report suggested: "Privately-owned housing starts in January were at a seasonally adjusted annual rate of 699,000. This is 1.5 percent (±16.8%)* above the revised December estimate of 689,000 and is 9.9 percent (±14.2%)* above the January 2011 rate of 636,000".
Investors chose to focus on domestic data, and largely ignored cross-Atlantic developments. However, the latest from Greece is that the nation hopes to get is bond-swap deal approved early next week. Positive news from the European region meant that financial stocks received a fillip and this development also contributed somewhat towards the broader rally.
ALCOA INC ( AA ): Free Stock Analysis Report
AK STEEL HLDG ( AKS ): Free Stock Analysis Report
AMER EXPRESS CO ( AXP ): Free Stock Analysis Report
BANK OF AMER CP (BAC): Free Stock Analysis Report
DU PONT (EI) DE (DD): Free Stock Analysis Report
FREEPT MC COP-B (FCX): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
KRAFT FOODS INC (KFT): Free Stock Analysis Report
MORGAN STANLEY (MS): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis Report
NUCOR CORP (NUE): Free Stock Analysis Report
POTASH SASK (POT): Free Stock Analysis Report
UBS AG (UBS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks like Alcoa Inc. (NYSE: AA ), American Express Company (NYSE: AXP ), Bank of America Corporation (NYSE: BAC ), E.I. ALCOA INC ( AA ): Free Stock Analysis Report AK STEEL HLDG ( AKS ): Free Stock Analysis Report AMER EXPRESS CO ( AXP ): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report KRAFT FOODS INC (KFT): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report POTASH SASK (POT): Free Stock Analysis Report UBS AG (UBS): Free Stock Analysis Report To read this article on Zacks.com click here. Greek developments receded into the background on Thursday as investors focused on encouraging domestic economic data which lifted the benchmarks to new highs for the year.
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ALCOA INC ( AA ): Free Stock Analysis Report AK STEEL HLDG ( AKS ): Free Stock Analysis Report AMER EXPRESS CO ( AXP ): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report KRAFT FOODS INC (KFT): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report POTASH SASK (POT): Free Stock Analysis Report UBS AG (UBS): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks like Alcoa Inc. (NYSE: AA ), American Express Company (NYSE: AXP ), Bank of America Corporation (NYSE: BAC ), E.I. du Pont de Nemours (NYSE: DD ), Hewlett-Packard Company (NYSE: HPQ ), JP Morgan Chase & Co. (NYSE: JPM ), Microsoft Corporation (NASDAQ: MSFT ) led the gains among all the other 29 gainers for the Dow and they were up 1.8%, 2.6%, 4.0%, 2.2%, 2.6%, 1.6% and 4.1%, respectively.
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ALCOA INC ( AA ): Free Stock Analysis Report AK STEEL HLDG ( AKS ): Free Stock Analysis Report AMER EXPRESS CO ( AXP ): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report KRAFT FOODS INC (KFT): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report POTASH SASK (POT): Free Stock Analysis Report UBS AG (UBS): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks like Alcoa Inc. (NYSE: AA ), American Express Company (NYSE: AXP ), Bank of America Corporation (NYSE: BAC ), E.I. Citigroup, Inc. (NYSE: C ), The Goldman Sachs Group, Inc. (NYSE: GS ), Morgan Stanley (NYSE: MS ) and UBS AG (NYSE: UBS ) were the other financial stocks that posted gains, and they increased 3.1%, 1.4%, 1.2% and 3.4%, respectively.
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Stocks like Alcoa Inc. (NYSE: AA ), American Express Company (NYSE: AXP ), Bank of America Corporation (NYSE: BAC ), E.I. ALCOA INC ( AA ): Free Stock Analysis Report AK STEEL HLDG ( AKS ): Free Stock Analysis Report AMER EXPRESS CO ( AXP ): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report KRAFT FOODS INC (KFT): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report POTASH SASK (POT): Free Stock Analysis Report UBS AG (UBS): Free Stock Analysis Report To read this article on Zacks.com click here. Greek developments receded into the background on Thursday as investors focused on encouraging domestic economic data which lifted the benchmarks to new highs for the year.
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1670.0
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2012-02-16 00:00:00 UTC
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Earnings Season Update: Proceed With Caution
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AA
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https://www.nasdaq.com/articles/earnings-season-update-proceed-caution-2012-02-16
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nan
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nan
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This articles was submitted by Louis Basenese of Wall St. Daily as part of our contributors program
Nearly a month ago - when aluminum giant, Alcoa ( AA ), officially kicked off earnings season - I shared two key metrics we should be focusing on: the earnings "beat rate" and the guidance spread.
Now that roughly 70% of the companies in the S&P 500 have reported results, it's time for a checkup before we head into the home stretch.
As you'll see in a moment, there's good reason to proceed with caution and pick your investments wisely.
See the full Trefis analysis for Alcoa here
Struggling to Be Average
Longtime readers are tired of me saying this, but it's a proven fact that stock prices ultimately follow earnings. Or, more simply, as long as companies are producing more and more profits, stock prices are likely to charge higher.
That's what makes the earnings beat rate - a measure of the percentage of companies beating analysts' expectations for profits - such a useful indicator. It quickly tells us the financial health of the majority of the companies in the S&P 500 and the likelihood the index is going to head higher.
So what's the latest reading telling us?
Well, at 61.5%, it's not exactly an overwhelmingly bullish sign. Truth be told, it's barely average. Since 1998, the historical beat rate averages out to 62%, according to Bespoke Investment Group.
A silver lining does exist, however. The beat rate is trending higher. Two weeks ago, it stood at a bull market low of just 57%.
But don't get your hopes up too much. The strongest rallies occur when the beat rate tops 65%. Since more than half of the companies in the S&P 500 already reported results, it's unlikely we'll top that key threshold this quarter.
Don't Bet on the Spread
As I noted last month, past results don't matter as much as expectations for the future. Why? Because the stock market is a forward-looking animal. Which is where the guidance spread comes in.
It measures the difference between the percentage of companies raising guidance and the percentage of companies lowering guidance. A positive spread indicates that more companies are optimistic about the future. And a negative spread indicates that more companies are pessimistic.
The latest reading checks in at -3.3%, which means more companies are lowering guidance than raising it. More so than last quarter, too. In the third quarter the guidance spread checked-in at -2.1%.
Here again, a silver lining exists, as the guidance spread is improving. Last week, it stood at -4.2%. And it's nowhere near the lows hit during the throes of the financial crisis at around -10%.
Choose Wisely
So how should we interpret the less-than-inspiring results this earnings season? Simply put, we need to choose wisely.
Even though stocks are collectively cheap - trading for about 14 times earnings, on average - a rising tide is no longer going to lift all boats. Case in point: We haven't experienced a single "all or nothing" day yet this year.
An "all or nothing" day is defined as a day when at least 400 stocks in the S&P 500 all move up or down in price. In 2011, we witnessed a record number of all or nothing days (70), with the majority occurring in the second half of the year. Six weeks into 2012, though, we haven't experienced a single one. That's a definitive change in trading behavior.
Bottom line: As I told you on Friday , we're clearly in a stock picker's market. And the latest earnings season stats underscore the need to choose wisely. I recommend you stick to companies reporting solid earnings growth and raising guidance for future quarters.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This articles was submitted by Louis Basenese of Wall St. Daily as part of our contributors program Nearly a month ago - when aluminum giant, Alcoa ( AA ), officially kicked off earnings season - I shared two key metrics we should be focusing on: the earnings "beat rate" and the guidance spread. See the full Trefis analysis for Alcoa here Struggling to Be Average Longtime readers are tired of me saying this, but it's a proven fact that stock prices ultimately follow earnings. Even though stocks are collectively cheap - trading for about 14 times earnings, on average - a rising tide is no longer going to lift all boats.
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This articles was submitted by Louis Basenese of Wall St. Daily as part of our contributors program Nearly a month ago - when aluminum giant, Alcoa ( AA ), officially kicked off earnings season - I shared two key metrics we should be focusing on: the earnings "beat rate" and the guidance spread. That's what makes the earnings beat rate - a measure of the percentage of companies beating analysts' expectations for profits - such a useful indicator. It measures the difference between the percentage of companies raising guidance and the percentage of companies lowering guidance.
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This articles was submitted by Louis Basenese of Wall St. Daily as part of our contributors program Nearly a month ago - when aluminum giant, Alcoa ( AA ), officially kicked off earnings season - I shared two key metrics we should be focusing on: the earnings "beat rate" and the guidance spread. That's what makes the earnings beat rate - a measure of the percentage of companies beating analysts' expectations for profits - such a useful indicator. It measures the difference between the percentage of companies raising guidance and the percentage of companies lowering guidance.
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This articles was submitted by Louis Basenese of Wall St. Daily as part of our contributors program Nearly a month ago - when aluminum giant, Alcoa ( AA ), officially kicked off earnings season - I shared two key metrics we should be focusing on: the earnings "beat rate" and the guidance spread. Two weeks ago, it stood at a bull market low of just 57%. Which is where the guidance spread comes in.
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1671.0
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2012-02-15 00:00:00 UTC
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My Pick for the "Comeback" Stock of 2012
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AA
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https://www.nasdaq.com/articles/my-pick-comeback-stock-2012-2012-02-15
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nan
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nan
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To make money in stocks, you need to focus on companies BEFORE everyone else does.
It's not easy to do... and often times it means buying stocks that are out of favor with the general market .
But while that might make most investors feel uncomfortable, if you can find an undervalued stock flying below Wall Street 's radar, then there is a chance you can make a lot of money... just ask George Soros or Warren Buffett.
That said, I've found one stock most analysts won't touch. They see this company as an out-of-favor cyclical play, but I see it as a company on the cusp of rotating back into favor...
But before I get into it, let me introduce myself. My name is David Sterman and I'm the chief strategist behind StreetAuthority's latest premium service -- $100,000 Portfolio .
I've been in the investing business for two decades now. And after working as a Senior Analyst at Smith Barney, the Managing Editor at TheStreet.com, and the Director of Research at Individual Investor, there is one thing I've learned when it comes to investing -- the real gains in stocks are made in companies that are misunderstood and mispriced.
That's why I tend to focus on distressed companies. Not only do undervalued stocksoffer a high upside potential, but since they're typically out of favor, they almost always trade close to what Icall "downside support" as well.
Can they fall further? Surely, but not by all that much.
One such company is Alcoa Inc. (NYSE: AA ) , the U.S. aluminum producer. After falling 80% from its peak in 2007, Alcoa surely qualifies as seemingly distressed.
As the third-largest aluminum producer in the world, Alcoa shares got hammered last year thanks to a plunge in aluminum prices. Staggering global growth, increased production from Chinese smelters and concerns over the European debt crisis all contributed to the price drop.
But selling aluminum is a cyclical business. And while aluminum prices may have sagged in 2011, management is anticipating a turnaround year in 2012.
Alcoa's CEO Klaus Kleinfeld predicts global aluminum demand will rise 7% this year, compared with 2011 levels. His bullishness largely stems from production plans at Boeing (NYSE: BA ) and Airbus, along with auto makers that are using an increasing amount of aluminum in vehicles to save weight.
The company as a whole has an even brighter outlook. They predict 2012 demand for aluminum will exceed supply. If this happens, then aluminum prices could well finish the year closer to $1.10 or even $1.20 a pound. Prices are currently near $0.93. (Alcoa makes money when this figure moves above $1.)
As a testament to this belief, aluminum inventories shrank from $3.2 billion in the third quarter of 2011 to $2.6 billion in the fourth quarter. If the global economy starts to perk up, then these numbers should continue to fall -- and Alcoa will be poised to rake in stunning amounts of cash.
Even if the supply-and-demand factors don't change that quickly this year, the long-term fundamentals are still good. Alcoa should do well in anticipation of this better long-term path.
Action to Take --> Right now could be a good chance to buy Alcoa before the rest of the market shifts its focus to management's expected long-term bullish outlook. Wall Street tends to wait until business trends are clearly stronger, but you can score big profits by stepping in before this shift in sentiment.
But of course it's not just enough for a company to be distressed to justify jumping in. After all, most of the time a stock's poor performance is warranted.
I need to know that the stock I'm buying will be profitable down the road. That's why I also love companies with clear operating leverage .
As the world's lowest cost-producer of aluminum, Alcoa definitely has just that. Sure profits are OK now, but they should be explosively higher in a few years as demand for aluminum regains momentum.
Let me warn you though, trying to beat the rest of the market to the punch means you run the risk of showing up to the party early. It may be a while before Alcoa starts to move, but regardless, I have a high degree of confidence its stock price will be higher in a year or two.
And since I can't tell you exactly when this stock will take off, I may as well get in while it's certifiably inexpensive.
[ Note : If you're not already following my newest advisory, then I'll make it easy for you. Simply follow this link to be notified by email each time I publish a new pick or update for my premium advisory, $100,000 Portfolio . This service is absolutely free. We can't say how long we'll make this offer , so even if you think you might be interested, then you should take advantage .]
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One such company is Alcoa Inc. (NYSE: AA ) , the U.S. aluminum producer. StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios. And after working as a Senior Analyst at Smith Barney, the Managing Editor at TheStreet.com, and the Director of Research at Individual Investor, there is one thing I've learned when it comes to investing -- the real gains in stocks are made in companies that are misunderstood and mispriced.
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One such company is Alcoa Inc. (NYSE: AA ) , the U.S. aluminum producer. StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios. Action to Take --> Right now could be a good chance to buy Alcoa before the rest of the market shifts its focus to management's expected long-term bullish outlook.
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One such company is Alcoa Inc. (NYSE: AA ) , the U.S. aluminum producer. StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios. As the third-largest aluminum producer in the world, Alcoa shares got hammered last year thanks to a plunge in aluminum prices.
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One such company is Alcoa Inc. (NYSE: AA ) , the U.S. aluminum producer. StreetAuthority LLC owns shares of AA in one or more if its "real money" portfolios. To make money in stocks, you need to focus on companies BEFORE everyone else does.
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1672.0
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2012-02-09 00:00:00 UTC
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A Low-Risk Pick for my $100,000 Real-Money Portfolio
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AA
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https://www.nasdaq.com/articles/low-risk-pick-my-100000-real-money-portfolio-2012-02-09
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nan
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nan
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I've been thinking about biotech stocks a great deal lately. The sector seems to be trading much better in the early weeks of 2012, with a few spectacular gainers already in the bag and likely more to come.
Yet investors are also well aware many biotech stocks simply flame out as cash dwindles or as a drug fails to meet clinical testing hurdles. So how do you gain potentially big upside without suffering significant downside (which is my entire $100,000 Portfolio mission ) in this speculative sector?
I think I've found the perfect vehicle.
It's a company with ties to a range of promising drugs and only needs to see a few hits to give itsshares a solid boost. I'm talking about Ligand Pharmaceuticals (Nasdaq: LGND ), which has been around for more than 20 years. After a major revamp about five years ago, the company is just now hitting its stride.
Just-released fourth-quarter results underscore a long-awaited milestone. Ligand had been losing money because its portfolio of drugs had yet to mature, but now it's finally profitable -- and potentially hugely profitable within a few years.
Before I get into Ligand's slate of investments, let me show you what this company has looked like by the numbers.
As you can see in the table above, Ligand's heavy investments to acquire the rights to promising drugs have led to a string of money-losing years.EBITDA is the more salient metric thanearnings per share ( EPS ) , because it best highlights an ongoing cash burn. Not only did Ligand sharply reduce theEBITDA drain in 2011, it actually delivered positive EBITDA in the fourth quarter -- for the first time in a number of years. And now that Ligand is in the black, it's highly unlikely to slip back into the red.
Credit for this company's comingturnaround goes toCEO John Higgins, who took the reins in January 2007. Since then, he has deployed the company's cash into four key deals, which have provided a pipeline of drugs, and more important, some key biotechnology platforms that can boost the efficacy and safety of many other companies' drugs.
Reaping what they sow
Through its investment in various small biotech firms, Ligand now has exposure to 60 different drugs that are either in clinical trials or are already on themarket . Specifically, roughly 10% of its drug pipeline has already received Food and Drug Administration approval, another 10% is in Phase III testing, another 25% is in Phase II testing, with the remainder either in Phase I or pre-clinical testing.
Here's a quick summary of a few key programs that are already generating income:
• Captisol. Captisol is a chemical solution that makes drugs more stable and can lead to more precise dosing. More than 20 drugs currently in development are being tested with Captisol. This platform is providing a boost to many of Ligand's drugs in development, and is being licensed by major pharmaceutical firms to improve the performance of existing drugs. Partners include Baxter (NYSE: BAX ) , Merck (NYSE: MRK ) , Bristol-Myers Squibb (NYSE: BMS ) and Medicines Co. (Nasdaq: MDCO ) .
• Promacta. GlaxoSmithKline (NYSE: GSK ) currently sells this drug, which stimulates platelet formation and targets patients with bleeding disorders. Glaxo is also testing Promacta to gauge its efficacy in patients with hepatitis C. According to the World Health Organization, about 170 million people worldwide are infected with the hepatitis C virus, which can result in cirrhosis of the liver and liver cancer. If Promacta proves to be efficient in the treatment of the disease, then it could potentially become a blockbuster drug.
Ligand earns a sliding 5% to 10% royalty scale, depending on salesvolume . It is likely to make around $10 million in Promacta royalties this year, but this figure could be 10 times higher by the middle of the decade. UBS projects sales of Promacta to rise 150% to $123 million this year, and sees 2013 sales exceeding $200 million, on the way to $500 million in sales by 2015.
Ligand's sales are expected to remain stable or trend moderately higher over the course of 2012 as these two drug platforms gain greater traction. Management has formally issued guidance for 2012 sales of $30 million and positivecash flow , though this figure appears to be conservative in light of recent quarterly sales run rates.
Not only do the two platforms have significant growth opportunities in the years ahead, but Ligand's pipeline of yet-to-be-approved drugs also looks quite promising.
For example, Ligand's partner Onyx Pharmaceuticals (Nasdaq: ONXX ) is testing a drug called carfilzomib, which is a Captisol-based protease inhibitor that has appeared quite effective in the treatment of multiple myelomas (blood cancers). Phase II testing is underway, and carfilzomib could be on themarket a year from now. The company and the analysts who follow Ligand say this drug also has the potential to be a blockbuster.
Behind carfilzomib stands a fairly deep drug pipeline, though it's too early to place a value on it. The company is spending about $16 million in generaloverhead each year and another $10 million on research and development (R&D) -- with partners spending much more on their own R&D that couldyield royalties to Ligand.
So combined, we're talking about roughly $26 million in annual expenses. Notably, Ligand's revenue stream has already surpassed this amount and is likely to march much higher in 2013 and beyond. That's why I think this former money-loser should be a money-maker from here on out.
The Downside Protection --> Shares have traded as low as $9 when the market was in full sell-off mode last summer. If the market hits another deep rough patch in 2012, then that's a floor that you need to think about. Insiders tend to step in and support the stock with open market purchases in the $11 range. Now that Ligand is profitable, shares may never touch those lows again.
Upside Triggers --> The two drug platforms noted above are just beginning to hit their stride. As a result, 2012 should see a steady stream of announcements from Ligand and its partners regarding clinical trial progress or new sales agreements. Analysts are still hard-pressed to specifically gauge forward quarterly revenue streams, but the projected income statements should get much more clarity over the course of 2012.
As a very rough gauge, assume 2012 sales of $30 million, 2013 sales of $40 million and sales approaching $100 million by 2015. Notably, these sales carry very high margins, which is why analysts say Ligand could earn $3 to $4 a share by 2016. If this scenario plays out, then shares could rise from a current $14 to $30 or $40 in the next few years.
Action to Take -->I will be buying 700 shares of Ligand (or roughly $10,000 worth) 48 hours after you read this.
I'm not expecting rapidappreciation for this stock. Indeed, it carries a fairly lowbeta and wouldn't necessarily surge in value just because the market takes off. More cyclical holdings in my $100,000 portfolio, such as Ford (NYSE: F ) and Alcoa (NYSE: AA ) , have much greaterleverage to expectations of a rebounding U.S.economy . That said, Ligand's shares are more likely to hold their own if the U.S. economic outlook becomes constrained. Frankly, this isn't a stock to hold for the next six months, and instead should be seen as a solid long-term growth portfolio holding.
[ Note: Be sure not to miss out on my next portfolio investment. Go here to sign up to have these articles delivered straight to your email inbox. You'll also receive timely updates on my holdings -- and best of all -- for a limited time, it's completely free.]
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of F, AA in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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More cyclical holdings in my $100,000 portfolio, such as Ford (NYSE: F ) and Alcoa (NYSE: AA ) , have much greaterleverage to expectations of a rebounding U.S.economy . StreetAuthority LLC owns shares of F, AA in one or more if its "real money" portfolios. Yet investors are also well aware many biotech stocks simply flame out as cash dwindles or as a drug fails to meet clinical testing hurdles.
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More cyclical holdings in my $100,000 portfolio, such as Ford (NYSE: F ) and Alcoa (NYSE: AA ) , have much greaterleverage to expectations of a rebounding U.S.economy . StreetAuthority LLC owns shares of F, AA in one or more if its "real money" portfolios. Analysts are still hard-pressed to specifically gauge forward quarterly revenue streams, but the projected income statements should get much more clarity over the course of 2012.
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More cyclical holdings in my $100,000 portfolio, such as Ford (NYSE: F ) and Alcoa (NYSE: AA ) , have much greaterleverage to expectations of a rebounding U.S.economy . StreetAuthority LLC owns shares of F, AA in one or more if its "real money" portfolios. Since then, he has deployed the company's cash into four key deals, which have provided a pipeline of drugs, and more important, some key biotechnology platforms that can boost the efficacy and safety of many other companies' drugs.
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More cyclical holdings in my $100,000 portfolio, such as Ford (NYSE: F ) and Alcoa (NYSE: AA ) , have much greaterleverage to expectations of a rebounding U.S.economy . StreetAuthority LLC owns shares of F, AA in one or more if its "real money" portfolios. More than 20 drugs currently in development are being tested with Captisol.
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1673.0
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2012-02-08 00:00:00 UTC
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BHP Revs Up on Diversified Business - Analyst Blog
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https://www.nasdaq.com/articles/bhp-revs-up-on-diversified-business-analyst-blog-2012-02-08
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nan
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BHP Billiton Ltd. (BHP) has reported financial results for half year ended December 31, 2011 with net income of $9.9 billion (excluding exceptional items), down 7.1% from $10.7 billion for half year ended December 31, 2010. Diluted earnings per ordinary share were recorded at $1.86 ($3.72 per ADS).
Revenues increased 9.7% to $37.5 billion from $34.2 billion for half year ended December 31, 2010. Underlying EBIT and EBIDTA were recorded at $15.7 billion and $18.7 billion, up 5.8% and 8.3% respectively, from the year-ago comparable period.
The increase is attributable to BHP Billiton's diversified portfolio of world class minerals and energy assets, alongside a robust demand driven by the emerging economies. Moreover, the company's strategic investment throughout the economic cycle delivered record volume growth during the reported period.
Net operating cash flows increased marginally to $12.3 billion from $12.2 billion in the corresponding period of the previous year. Such a cash position is expected to comfortably fund strategic acquisitions as well as extensive organic growth program.
Capital and exploration expenditure totaled $9.0 billion for the half year ended December 31, 2011. Expenditure on major growth projects was $6.8 billion, which includes $1.9 billion on Petroleum projects and $4.9 billion on Minerals projects. Capital expenditure on sustaining and other items was recorded at $1.1 billion. Exploration expenditure was $1.1 billion, which includes $716 million classified within net operating cash flows.
Net financing cash flows included proceeds from borrowings of $7.3 billion, dividend payments of $2.9 billion and debt repayments of $1.7 billion. Net debt, comprising interest bearing liabilities less cash, was $21.5 billion, up $15.6 billion compared to its net debt position as of 30 June 2011. Cash and cash equivalent, net of overdrafts, at the end of the period, was recorded at $3.6 billion, down from $16.1 billion a year ago.
BHP Billiton maintains a progressive dividend policy, upholding shareholder sentiments and confidence. On 8 February 2012, BHP Billiton declared an interim dividend of 55 cents per share payable on 22 March 2012.
BHP Billiton has approved five major projects during the reported period ended December 31, 2011 for a total investment of $4.0 billion. Moreover, growth projects in the Metallurgical Coal and Energy Coal businesses moved into execution. Moreover, pre-commitment expenditure of US$1.2 billion for the first phase of the Olympic Dam Project in Australia was activated during the reported period. BHP Billiton also announced the approval of $779 million in pre-commitment funding for the first phase of the Western Australia Iron Ore (WAIO) Outer Harbor Development.
Of late, BHP Billiton reported to have exercised an option to sell its 37% non-operated interest in Richards Bay Minerals (RBM) to Rio Tinto plc ( RIO ), thereby exiting the titanium minerals industry.
BHP Billiton is one of the world's largest diversified resource companies operating in mineral exploration, production and processing, oil and gas exploration and development, and steel production and merchandising. The company competes directly with its peers, such as Alcoa Inc ( AA ), Vale S.A ( VALE ) and remains positive on the outlook for an improving global economy driven by urbanization and industrialization, in the future ahead.
ALCOA INC ( AA ): Free Stock Analysis Report
BHP BILLITN LTD ( BHP ): Free Stock Analysis Report
RIO TINTO-ADR ( RIO ): Free Stock Analysis Report
VALE RIO DO-ADR ( VALE ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company competes directly with its peers, such as Alcoa Inc ( AA ), Vale S.A ( VALE ) and remains positive on the outlook for an improving global economy driven by urbanization and industrialization, in the future ahead. ALCOA INC ( AA ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report VALE RIO DO-ADR ( VALE ): Free Stock Analysis Report To read this article on Zacks.com click here. The increase is attributable to BHP Billiton's diversified portfolio of world class minerals and energy assets, alongside a robust demand driven by the emerging economies.
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ALCOA INC ( AA ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report VALE RIO DO-ADR ( VALE ): Free Stock Analysis Report To read this article on Zacks.com click here. The company competes directly with its peers, such as Alcoa Inc ( AA ), Vale S.A ( VALE ) and remains positive on the outlook for an improving global economy driven by urbanization and industrialization, in the future ahead. BHP Billiton Ltd. (BHP) has reported financial results for half year ended December 31, 2011 with net income of $9.9 billion (excluding exceptional items), down 7.1% from $10.7 billion for half year ended December 31, 2010.
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ALCOA INC ( AA ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report VALE RIO DO-ADR ( VALE ): Free Stock Analysis Report To read this article on Zacks.com click here. The company competes directly with its peers, such as Alcoa Inc ( AA ), Vale S.A ( VALE ) and remains positive on the outlook for an improving global economy driven by urbanization and industrialization, in the future ahead. BHP Billiton Ltd. (BHP) has reported financial results for half year ended December 31, 2011 with net income of $9.9 billion (excluding exceptional items), down 7.1% from $10.7 billion for half year ended December 31, 2010.
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The company competes directly with its peers, such as Alcoa Inc ( AA ), Vale S.A ( VALE ) and remains positive on the outlook for an improving global economy driven by urbanization and industrialization, in the future ahead. ALCOA INC ( AA ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report VALE RIO DO-ADR ( VALE ): Free Stock Analysis Report To read this article on Zacks.com click here. Expenditure on major growth projects was $6.8 billion, which includes $1.9 billion on Petroleum projects and $4.9 billion on Minerals projects.
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1674.0
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2012-02-07 00:00:00 UTC
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Stock Market News for February 7, 2012 - Market News
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https://www.nasdaq.com/articles/stock-market-news-for-february-7-2012-market-news-2012-02-07
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After the European leaders urged Greece to adhere to new austerity measures in order to receive the next installment of its bailout package, debt woes returned to the forefront and US markets dropped a few points. Even though markets receded from t multi-year highs, benchmarks recouped most of their losses by the end of the day and settled marginally lower.
The Dow Jones Industrial Average (DJI) dropped 0.1% to finish the day at 12,845.13. The Standard & Poor 500 (S&P 500) edged down 0.04% and signed off yesterday's trading session virtually unchanged at 1,344.33. The tech-laden Nasdaq Compoiste Index was down to 2,901.99, shedding a mere 0.1%. The fear-gauge CBOE Volatility Index (VIX) gained 3.9% to settle at 17.76. Consolidated volumes on the New York Stock Exchange, the American Stock Exchange and Nasdaq were 5.82 billion shares, significantly lower than last year's daily average of 7.84 billion. On the NYSE, decliners outnumbered the advancers, with 57% stocks being on the losing side as against 40% gainers. The remaining 3% of the stocks were left unchanged.
The day lacked action on the home front. With no major economic data being released and with not many bellwether companies reporting results, domestic markets had to struggle for direction. Meanwhile, news from the other side of the Atlantic was far from favorable. European leaders, including the French and German leaders, urged Greece to accept new austerity measures if they expect to receive the next installment of the bailout package.
Meanwhile, a gathering of the three parties which are backing Prime Minister Lucas Papademos' interim government, were postponed by a day. The delay, which reportedly occurred to allow the Greek leader more time to talk to representatives of the European Union, International Monetary Fund and the European Central Bank, was not well received. Greece needs to receive the $171 billion in order to avoid a debt default. German Chancellor Angela Merkel said: "I can't quite understand why we need a few more days". Greece needs to accept the measures and they need to decide and get the necessary done as soon as possible. During a joint briefing with French President Nicolas Sarkozy, Merkel commented: "Time is running out". Sakozy too voiced his concerns and said: "An agreement has never been so close, neither for private nor public creditors…We have to conclude it".
The markets failed to carry forward the momentum gained on Monday, and the financial and material sectors emerged as major laggards. The Financial SPDR Select Sector Fund ( XLF ) was down 0.5% and the Materials Select Sector SPDR ( XLB ) dropped 0.6%. Financial bellwethers American Express Company (NYSE: AXP ), Citigroup, Inc. (NYSE: C ), JP Morgan Chase & Co. (NYSE: JPM ) and Wells Fargo & Company (NYSE: WFC ) lost 0.8%, 0.7%, 0.4% and 1.4%, respectively. As for the material stocks, Alcoa Inc. (NYSE: AA ), Nucor Corporation (NYSE: NUE ), United States Steel (NYSE: X ) and Arcelor Mittal (NYSE: MT ) lost 0.2%, 0.6%, 1.2% and 1.4%, respectively.
ALCOA INC ( AA ): Free Stock Analysis Report
AMER EXPRESS CO ( AXP ): Free Stock Analysis Report
CITIGROUP INC ( C ): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
ARCELOR MITTAL (MT): Free Stock Analysis Report
NUCOR CORP (NUE): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
UTD STATES STL (X): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As for the material stocks, Alcoa Inc. (NYSE: AA ), Nucor Corporation (NYSE: NUE ), United States Steel (NYSE: X ) and Arcelor Mittal (NYSE: MT ) lost 0.2%, 0.6%, 1.2% and 1.4%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report AMER EXPRESS CO ( AXP ): Free Stock Analysis Report CITIGROUP INC ( C ): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here. After the European leaders urged Greece to adhere to new austerity measures in order to receive the next installment of its bailout package, debt woes returned to the forefront and US markets dropped a few points.
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As for the material stocks, Alcoa Inc. (NYSE: AA ), Nucor Corporation (NYSE: NUE ), United States Steel (NYSE: X ) and Arcelor Mittal (NYSE: MT ) lost 0.2%, 0.6%, 1.2% and 1.4%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report AMER EXPRESS CO ( AXP ): Free Stock Analysis Report CITIGROUP INC ( C ): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here. Financial bellwethers American Express Company (NYSE: AXP ), Citigroup, Inc. (NYSE: C ), JP Morgan Chase & Co. (NYSE: JPM ) and Wells Fargo & Company (NYSE: WFC ) lost 0.8%, 0.7%, 0.4% and 1.4%, respectively.
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ALCOA INC ( AA ): Free Stock Analysis Report AMER EXPRESS CO ( AXP ): Free Stock Analysis Report CITIGROUP INC ( C ): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here. As for the material stocks, Alcoa Inc. (NYSE: AA ), Nucor Corporation (NYSE: NUE ), United States Steel (NYSE: X ) and Arcelor Mittal (NYSE: MT ) lost 0.2%, 0.6%, 1.2% and 1.4%, respectively. After the European leaders urged Greece to adhere to new austerity measures in order to receive the next installment of its bailout package, debt woes returned to the forefront and US markets dropped a few points.
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As for the material stocks, Alcoa Inc. (NYSE: AA ), Nucor Corporation (NYSE: NUE ), United States Steel (NYSE: X ) and Arcelor Mittal (NYSE: MT ) lost 0.2%, 0.6%, 1.2% and 1.4%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report AMER EXPRESS CO ( AXP ): Free Stock Analysis Report CITIGROUP INC ( C ): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here. After the European leaders urged Greece to adhere to new austerity measures in order to receive the next installment of its bailout package, debt woes returned to the forefront and US markets dropped a few points.
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1675.0
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2012-02-03 00:00:00 UTC
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An Important Update on my $100,000 Portfolio
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https://www.nasdaq.com/articles/important-update-my-100000-portfolio-2012-02-03
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nan
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The stockmarket continues to grind higher. And you can give the U.S.economy the tip of the cap for the recent gains. Recent data points imply that the incipient economic strength we saw last fall has continued into 2012. If this trend remains in place, then the economically-sensitive stocks in my $100,000 real-money portfolio will surely benefit.
Ford (NYSE: F ) is a great example. Though I recently took stock of a subpar fourth quarter , I also think many investors underestimate the rising demand for cars and trucks. Ford saw its sales rise 7% in January (compared with a year ago), in line with the industry's growth rate. And if the full year's sales grow at this pace, then Ford is well-positioned to meet or exceed 2012 estimates -- assuming Europe doesn't fall off a cliff. The fact that Europe is inching closer to a resolution of its various crises could also boost results as European consumers feel comfortable enough to purchase new cars and trucks again.
Perhaps one of the best data points around to gauge theeconomy 's health is thespot price of aluminum, which appears to have bottomed out at around $0.91 a pound in early January, but recently moved back up above $1. Alcoa (NYSE: AA ) and other aluminum stocks have responded in kind, though they remain far below levels seen last spring. The Dow Jones U.S. AluminumIndex has moved above its 100-daymoving average , abullish sign.
To push aluminum prices higher, the industry's key players are showing great discipline. Alcoa announced a series of production cuts in January, and just this week (Jan. 30), Russia-based United Co. Rusal announced plans to trim its output by roughly 5% in the next 18 months. These cuts are in tandem with moves by China to further curtail its aluminum output this year. This could help push aluminum prices back to $1.10 or even $1.15 a pound, which explains why I think Alcoa's stock will likely post solid gains this year .
The stock is already up 20% this year, but at a recent $10.40, it's well below the52-week high of $18. Frankly, investors should brace for a slow climb, so a return to the $18 mark might still be a year or two away.
Yet investors also need to brace themselves for a bumpy ride when it comes to some stocks. For example, LED lighting (light-emitting diodes) prices continue to drop, which sets the stage for a possibleearnings shortfall for Cree (Nasdaq: CREE ) . The fact this stock is already up 23% in 2011 makes me anxious. All of these gains could be disgorged if Cree indeed delivers a subpar quarter. Still, I love this company's long-term positioning and don't intend to trade in and out of this stock based on short-term gyrations.
As for my other portfolio holdings, here are some other key events to watch in the coming month:
• Hasbro (NYSE: HAS ) will deliver a more detailedquarterly report this coming Monday, Feb. 6. A week after that, I will be meeting with the company at the annual New York Toy Fair, which the company uses as a platform to discuss its goals for the coming year.
• On Friday, Feb. 10, battery maker Exide Technologies (Nasdaq: XIDE ) will release quarterly results. This will be a nail-biter. If Exide delivers yet another bad quarter, thenshares could quickly fall back to the52-week low of $2.34 (from a recent $3.60). Yet if results are at least decent, then the stage could be set for a sharp rebound in the stock in the coming quarters.
• The following Tuesday, Feb. 14, we'll hear from Zipcar (NYSE: ZIP ) , which appears to have posted a solid quarter. It's not a seasonally-important period -- Zipcar does the bulk of its business in the spring, summer and fall -- but investors want to see that all of the operating metrics are still moving in the right direction.
Action to Take --> More than half of my $100,000 allotted to this portfolio is now in play. As I get closer to being "fully-invested," it may be time to cull certain names from the portfolio to raise fresh cash. (So make sure you don't miss a single update .) It's crucial to always have cash in reserve, as great opportunities arise unexpectedly, and it's no fun to lack the funds tocapitalize on them.
P.S. -- We're making David Sterman's $100,000 Portfolio available at no cost, but only for a limited time. As a StreetAuthority.com reader, you're getting the first look at my best picks. If you have any questions or comments, feel free to send me your feedback.
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of AA, F, CREE, HAS, ZIP, XIDE in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa (NYSE: AA ) and other aluminum stocks have responded in kind, though they remain far below levels seen last spring. StreetAuthority LLC owns shares of AA, F, CREE, HAS, ZIP, XIDE in one or more if its "real money" portfolios. And if the full year's sales grow at this pace, then Ford is well-positioned to meet or exceed 2012 estimates -- assuming Europe doesn't fall off a cliff.
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Alcoa (NYSE: AA ) and other aluminum stocks have responded in kind, though they remain far below levels seen last spring. StreetAuthority LLC owns shares of AA, F, CREE, HAS, ZIP, XIDE in one or more if its "real money" portfolios. To push aluminum prices higher, the industry's key players are showing great discipline.
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Alcoa (NYSE: AA ) and other aluminum stocks have responded in kind, though they remain far below levels seen last spring. StreetAuthority LLC owns shares of AA, F, CREE, HAS, ZIP, XIDE in one or more if its "real money" portfolios. Though I recently took stock of a subpar fourth quarter , I also think many investors underestimate the rising demand for cars and trucks.
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Alcoa (NYSE: AA ) and other aluminum stocks have responded in kind, though they remain far below levels seen last spring. StreetAuthority LLC owns shares of AA, F, CREE, HAS, ZIP, XIDE in one or more if its "real money" portfolios. Ford (NYSE: F ) is a great example.
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1676.0
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2012-02-01 00:00:00 UTC
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Efficient Market Hypothesis Doesn’t Always Work
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https://www.nasdaq.com/articles/efficient-market-hypothesis-doesnt-always-work-2012-02-01
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nan
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Submitted by Shailesh Kumar of Value Stock Guide
Investors are constantly reminded that the markets are efficient and there is no use trying to beat the market as it cannot be done on a consistent basis. In fact, we are told, that over 70% of the mutual funds fail to beat the market, presenting this as an evidence to somehow imply, in some convoluted logic, that we are better off handing over our money to the same mutual funds and invest passively, rather than take control of our own portfolio. I find this argument even more vacuous, considering that the best investors and stock pickers, who also happen to manage significant sums of money, do not usually run mutual funds.
But Is the Market Truly Efficient?
The Efficient Market Hypothesis states that the securities prices reflect all publicly available information. Trading based on insider knowledge is illegal, and even if it were possible, not enough investors would be privy to such non public information to make any significant impact on the overall returns of any stock. If Efficient Market Hypothesis were true, wouldn't it imply that no investor has any particular advantage over any other when it comes to investing in stocks ? If security prices immediately adjust to reflect any new public information than perhaps the only predictor to stock performance is the amount of risk an investor is willing to take.
Indeed, most financial products available to the investors today tacitly assume the sanctity of the Efficient Market Hypothesis. Passive investing, diversification and overall market index as a benchmark for performance are all a result of a blind faith in the EMH. Or to put it another way, if what you know about the past of the company doesn't matter (since the stock price already reflects it), and there is no way of reliably knowing the future of the company, you might as well invest in a basket of stocks to cancel out individual stock risk and let your portfolio ride on the market risk alone.
No wonder index funds and passive investing are such easy sells. The financial industry has all the incentive to continue to promote the EMH and use it as an excuse for their own incompetence.
History Paints a Different Picture
Many studies on historical performance of stocks classified by asset classes have shown that over a reasonably long periods of time small cap stocks tend to out perform large cap stocks and value stocks out perform growth stocks. Traditionally, this has been brushed aside by asserting that small cap stocks and value stocks are riskier than the market so it is not surprising that the returns are higher. However, a study by Ibbotson Associates (now part of Morningstar) goes even further and shows that small cap value stocks outperform all other asset classes on risk-adjusted basis .
Professor Greenwald in his seminal book Value Investing: From Graham to Buffett and Beyond (Wiley Finance) shows that if investors had blindly bought a portfolio of the lowest Price to Book ratio stocks they would have done better than the market. Even a slight introduction of a value bias improves portfolio performance.
So if the Markets are Efficient, How can this be?
Markets are efficient in aggregate and they are also reasonably efficient for well understood companies with highly liquid stock. For a large company that has a good number of Wall Street analysts following it, it is understandable that almost everything that is known is reflected in the stock price. Liquidity in the stock ensures that complex computer generated trades continuously work to exploit any inefficiency that may occur from time to time and quickly erase it.
However, there are quite a few situations where the markets are not as efficient and one can find stocks that are truly undervalued if one is alert. Here are a few cases where this is true
Small cap stocks that are not well followed - Large institutions such as mutual funds and pension funds tend to avoid these stocks. Typically these funds avoid buying meaningful stakes in any company as that comes with additional filing requirements and the responsibilities of being a large shareholder. A smaller stake may not make sense for a large fund as any performance advantage of these stocks will just be a blip on their overall portfolio. They are also not covered adequately by the Wall Street as some of these companies are too small to be a investment banking prospect.
Industry, sector or stock specific bull or bear market - In short term, the market overdoes its exuberance or pessimism for certain sectors or even individual companies. Eventually, the market does settle at the correct valuation but the discrepancy may persist for a long time. For example, the real estate bubble lasted much longer than expected. Even after it was plainly clear to most market observers that a bubble exists, most institutions could not simply unwind their positions quickly as that would cause an immediate market collapse. A retail investor can move much more quickly than an institution in these situations and take advantage of the gap between price and value.Certain cyclical industries go through a boom to bust cycle regularly. Metals, commodities, shipping, etc are a few examples. If an investor can determine that the demand of the product is not eroding, but rather the sector is doing badly due to excess capacity and over supply issues, than it is just a matter of waiting out until the capacity/supply imbalances are corrected for the stocks to recover. If you do your research right, these can be potentially phenomenal stocks to buy and wait for the cycle to repeat.
Unwanted stocks, special situation stocks - A stock is sold off by funds when they no longer fit the charter of the fund. This is generally done regardless of the investment merit of the stock. When this happens, a small window of undervaluation is created, that can reward investors handsomely. The following are some of the few common situations where this happens:
- A stock leaves a popular index causing all the funds that invest in this index to sell the stock
- A large company spins off a small division and the funds holding the parent company are not interested in the smaller spun off company
- Mergers and acquisitions involving part or all of the acquired company where the market is not clear about the fundamentals of the business being acquired
Aggressively marketed stocks - If there is one example of a situation where sellers are privy to more information about the company than the buyers are, it is the IPO market. This is one case where insider selling is legal and it is not a surprise that the buyers in the IPO markets generally lose. Perhaps if a sector is witnessing a lot of IPO activity, an investor might take it as a sign of an overheated market and sell any holdings in that sector (or avoid it like a plague).
Market inefficiencies create undervaluation that an investor can buy into. In some other cases, it can also create overvaluation that an investor can sell into or avoid. It is beneficial for a self managed investor to be alert for these situations as the difference in performance between a value biased portfolio and a market neutral portfolio can be very significant over the life of the portfolio. Make sure you look for investments outside of the typical Wall Street research and research the company deeply to understand its business and prospects. If the stock has been left for dead, but the business is humming along, it can be a terrific investment. These are the hidden corners of the market where great value stocks lie and if you do not look for them yourself, you will never find them
And this is why Warren Buffett and other investors believe that the small investors have great advantage over the Wall Street. We are largely unconcerned with such things as stock liquidity, float, market caps, etc which often stymie the large institutions. We can focus solely on the business fundamentals for our investment decisions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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I find this argument even more vacuous, considering that the best investors and stock pickers, who also happen to manage significant sums of money, do not usually run mutual funds. A retail investor can move much more quickly than an institution in these situations and take advantage of the gap between price and value.Certain cyclical industries go through a boom to bust cycle regularly. If an investor can determine that the demand of the product is not eroding, but rather the sector is doing badly due to excess capacity and over supply issues, than it is just a matter of waiting out until the capacity/supply imbalances are corrected for the stocks to recover.
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History Paints a Different Picture Many studies on historical performance of stocks classified by asset classes have shown that over a reasonably long periods of time small cap stocks tend to out perform large cap stocks and value stocks out perform growth stocks. The following are some of the few common situations where this happens: - A stock leaves a popular index causing all the funds that invest in this index to sell the stock - A large company spins off a small division and the funds holding the parent company are not interested in the smaller spun off company - Mergers and acquisitions involving part or all of the acquired company where the market is not clear about the fundamentals of the business being acquired Aggressively marketed stocks - If there is one example of a situation where sellers are privy to more information about the company than the buyers are, it is the IPO market. Make sure you look for investments outside of the typical Wall Street research and research the company deeply to understand its business and prospects.
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Or to put it another way, if what you know about the past of the company doesn't matter (since the stock price already reflects it), and there is no way of reliably knowing the future of the company, you might as well invest in a basket of stocks to cancel out individual stock risk and let your portfolio ride on the market risk alone. History Paints a Different Picture Many studies on historical performance of stocks classified by asset classes have shown that over a reasonably long periods of time small cap stocks tend to out perform large cap stocks and value stocks out perform growth stocks. The following are some of the few common situations where this happens: - A stock leaves a popular index causing all the funds that invest in this index to sell the stock - A large company spins off a small division and the funds holding the parent company are not interested in the smaller spun off company - Mergers and acquisitions involving part or all of the acquired company where the market is not clear about the fundamentals of the business being acquired Aggressively marketed stocks - If there is one example of a situation where sellers are privy to more information about the company than the buyers are, it is the IPO market.
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History Paints a Different Picture Many studies on historical performance of stocks classified by asset classes have shown that over a reasonably long periods of time small cap stocks tend to out perform large cap stocks and value stocks out perform growth stocks. Here are a few cases where this is true Small cap stocks that are not well followed - Large institutions such as mutual funds and pension funds tend to avoid these stocks. The following are some of the few common situations where this happens: - A stock leaves a popular index causing all the funds that invest in this index to sell the stock - A large company spins off a small division and the funds holding the parent company are not interested in the smaller spun off company - Mergers and acquisitions involving part or all of the acquired company where the market is not clear about the fundamentals of the business being acquired Aggressively marketed stocks - If there is one example of a situation where sellers are privy to more information about the company than the buyers are, it is the IPO market.
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1677.0
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2012-01-30 00:00:00 UTC
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My $100,000 Portfolio Strategy for this Changing Market
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AA
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https://www.nasdaq.com/articles/my-100000-portfolio-strategy-changing-market-2012-01-30
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nan
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nan
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Roughly a month ago, I was quite excited to launch a new $100,000 Real-Money Portfolio here at StreetAuthority. Themarket offered plenty of bargains and was looking quite healthy from a technical perspective. Sure enough, the S&P 500 is up nearly 5% in January and up roughly 15% from the start of the fourth quarter of 2011.
But this creates a real conundrum.
Is it best to infer that the recent strong market performance is simply a precursor to even more gains for the rest of 2012? Or is it wiser to take a foot off the gas and hold off on further purchases until the market catches its breath?
Technical analysts are beginning to cite concern, noting we're "overbought." They usually say this after every market rally, so I prefer to trust the fundamentals. But I also have to acknowledge a clear trading pattern that has been unfolding in the past two years: The market tends to swing from rally to sell-off at fairly regular intervals. So the best recent investment strategy has been to sell into rallies and buy into drops.
Holding tight
Make no mistake, I'm painstakingly building a portfolio for the long haul. Every stock I've bought has a clear path to rising sales and profits in 2013 and 2014. In almost every instance, I've cautioned that these stocks are quite inexpensive, simply because the near-term results are not as likely to be quite as endearing. So when I see a stock like Ford (NYSE: F ) pulling back in the face of a tepidquarterly report , I am simply undeterred . For that matter, a company like Alcoa (NYSE: AA ) may struggle under the weight of aluminum prices for a while to come. It's best to assume the most conservative scenarios.
Yet, you can expect me to hang onto these stocks for quite some time. I only sell a stock under one condition: When the investment thesis has been altered. If I am expecting a company to deliver a certain level of sales,margin orprofit results, and the company no longer looks set to meet these targets, then I'm a quick-seller.
But even as I sit tight on what I believe to be a solid set of stock picks, I still need to move in step with the changingmarket dynamics . As I noted earlier, the market's strong recent gains may end in a bout of profit-taking. If so, I'd be wise to deepen the focus on stocks with clear downside support (which axiomatically become harder to find as a market strengthens).
Or, I could take the market's strength as abullish sign. Indeed, the prospect of a resolution of the European crisis has led many investors to "whistle past the graveyard." Ford's stock action provides clear insight into the current mood: Shares fell 4% on Friday, Jan. 27, in the face of a weak quarter. (Still, I'm already sitting on roughly a 3% gain in my $100,000 Real-Money Portfolio .) But they could have fallen by twice as much if investors were in a less-forgiving mood.
We also saw this a few weeks ago, when Cree Research (Nasdaq: CREE ) -- also a portfolio holding -- went on to rally after delivering weak quarterly guidance. This should have been an excuse for investors to sell. Instead, they see Cree's glass as "half-full" rather than "half-empty." The fact that the U.S.economy grew 2.8% in the fourth quarter of 2011, right in the face of huge headwinds created by a struggling Europe and still-stressed U.S. consumers, gives the impression we may finally be turning a corner.
Indeed the "half-full" view characterizes my current investment stance. The recent gains make me a bit nervous, but the broader market backdrop has a real air of confidence to it. That's why I'll be adding battery-maker Exide Technologies (Nasdaq: XIDE ) to my portfolio on Feb. 2. (Remember, you always get two days' advance notice before I buy a stock.)
Exide is a high-risk/high-reward investment that will be atypical for this otherwise conservative portfolio. If the market can simply hold its own in coming weeks and months, then investors will "move out on the risk curve," which means buying trends won't simply be limited to large and stable blue chips.
A well-constructed portfolio needs at least some exposure to smaller, riskier stocks. I'm not changing course from the portfolio I set out to build, but simply making course corrections along the way.
The converse also applies. If the market starts to get choppy, then investors will move back in from the risk curve. In this case, I wouldn't hesitate to sell riskier holdings such as Exide. In effect, you can expect me to stay the course with my blue-chip picks and have a fair bit of turnover in the small cap/high-risk portion of my portfolio.
Action to Take --> To be sure, January has given us plenty to digest. A month from now,earnings season will have ended, the European crisis will (presumably) be that much closer to resolution, and investors will be assessing what the economic data points tell us about what to expect for the rest of 2012. That should help dictate the next moves in my $100,000 Real-Money Portfolio .
[ Note: Don't miss a thing! Go here to have my latest investment ideas and updates sent directly to your email inbox.]
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of AA, F, CREE, HAS, ZIP in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For that matter, a company like Alcoa (NYSE: AA ) may struggle under the weight of aluminum prices for a while to come. StreetAuthority LLC owns shares of AA, F, CREE, HAS, ZIP in one or more if its "real money" portfolios. But I also have to acknowledge a clear trading pattern that has been unfolding in the past two years: The market tends to swing from rally to sell-off at fairly regular intervals.
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For that matter, a company like Alcoa (NYSE: AA ) may struggle under the weight of aluminum prices for a while to come. StreetAuthority LLC owns shares of AA, F, CREE, HAS, ZIP in one or more if its "real money" portfolios. Ford's stock action provides clear insight into the current mood: Shares fell 4% on Friday, Jan. 27, in the face of a weak quarter.
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For that matter, a company like Alcoa (NYSE: AA ) may struggle under the weight of aluminum prices for a while to come. StreetAuthority LLC owns shares of AA, F, CREE, HAS, ZIP in one or more if its "real money" portfolios. Ford's stock action provides clear insight into the current mood: Shares fell 4% on Friday, Jan. 27, in the face of a weak quarter.
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For that matter, a company like Alcoa (NYSE: AA ) may struggle under the weight of aluminum prices for a while to come. StreetAuthority LLC owns shares of AA, F, CREE, HAS, ZIP in one or more if its "real money" portfolios. So the best recent investment strategy has been to sell into rallies and buy into drops.
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1678.0
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2012-01-26 00:00:00 UTC
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Stock Market News for January 26, 2012 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-january-26-2012-market-news-2012-01-26
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nan
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nan
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Markets recouped initial losses of and made a strong comeback after the Federal Reserve provided assurances that it would keep interest rates near zero until late 2014.The Dow hit its highest levels since May last year, while a robust earnings report from Apple propelled Nasdaq to a finish in the green.
The Dow Jones Industrial Average (DJI) gained 0.6% to close at 12,756.96. The Standard & Poor 500 (S&P 500) moved up 0.9% to finish yesterday's trading session at 1,326.06. The tech-laden Nasdaq Composite Index inched up 1.1% and settled at 2,818.31. The fear-gauge CBOE Volatility Index (VIX) dropped 3.2% and closed at 18.31. For 74% of the advancing stocks on the New York Stock Exchange (NYSE), 23% of the stocks moved down. The remaining 3% stocks were left unchanged. Total volume on the NYSE was 1.71 billion shares.
Benchmarks have been hovering around 5-month highs for the past few days and the Dow posted its highest closing levels since May 2011. The blue-chip index had been trading lower in the initial trading hours, before the central bank provided the impetus. It was a decent performance by the blue-chip index by the end of the day and only six of its 30 components ended lower. Stocks including Alcoa Inc. (NYSE: AA ), Caterpillar, Inc. (NYSE: CAT ), E.I. du Pont de Nemours (NYSE: DD ), The Travelers Companies, Inc. (NYSE: TRV ) were up 2.0%, 2.6%, 2.4% and 2.0%, respectively, and led the gains for the Dow.
The Federal Open Market Committee provided good news for investors, as the central bank announced that it would keep interest rate at record lows, or near zero, at least until 2014.The Fed extended its earlier decision to keep the rates low until 2013, and the move is surely to stimulate spending amidst low interest rates.
Meanwhile, the central bank did not announce any new monetary measures, but the Fed chairman Ben Bernanke said that "expanding the balance sheet certainly remains an option", and Federal Reserve will consider it "very seriously if, in particular, progress towards full employment was -- continued or became more inadequate, or if inflation remained exceptionally low". Some strategists believe that it might be too early to announce an additional simulative policy while Operation Twist is still in place. However, Bernanke also dwelt on lingering European concerns and said: "We continue to see headwinds emanating from Europe, coming from the slowing global economy…"I don't think we're ready to declare that we've entered a new, stronger phase at this point. We'll continue to look at the data".
On the earnings front, the limelight was squarely on Apple Inc. (NASDAQ: AAPL ), which reported a robust first quarter after the closing bell on Tuesday following which the company's shares jumped 6.2%. Earnings per share sky-rocketed 115.7% and revenues soared 73.3%. The tech-giant also surpassed the Street's estimates. However, another tech bellwether, Yahoo! Inc.'s (NASDAQ: YHOO ) quarterly results were modest, though it managed to beat expectations. The company's shares dropped 0.8%. Meanwhile, United Technologies Corporation (NYSE: UTX ) and The Boeing Company (NYSE: BA ) both managed to beat the Street's estimates.
The National Association of Realtors released data on pending home sales, which declined in December after posting a 19-month high in November. NAR reported that The Pending Home Sales Index dropped 3.5% to 96.6 in December from November's figure of 100.1. However the index is above the December 2010 figure. Chief Economist of NAR, Lawrence Yun, said: "Even with a modest decline, the preceding two months of contract activity are the highest in the past four years outside of the homebuyer tax credit period".
ALCOA INC ( AA ): Free Stock Analysis Report
APPLE INC ( AAPL ): Free Stock Analysis Report
BOEING CO ( BA ): Free Stock Analysis Report
CATERPILLAR INC ( CAT ): Free Stock Analysis Report
DU PONT ( EI ) DE (DD): Free Stock Analysis Report
TRAVELERS COS (TRV): Free Stock Analysis Report
UTD TECHS CORP (UTX): Free Stock Analysis Report
YAHOO! INC (YHOO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks including Alcoa Inc. (NYSE: AA ), Caterpillar, Inc. (NYSE: CAT ), E.I. On the earnings front, the limelight was squarely on Apple Inc. (NASDAQ: AAPL ), which reported a robust first quarter after the closing bell on Tuesday following which the company's shares jumped 6.2%. ALCOA INC ( AA ): Free Stock Analysis Report APPLE INC ( AAPL ): Free Stock Analysis Report BOEING CO ( BA ): Free Stock Analysis Report CATERPILLAR INC ( CAT ): Free Stock Analysis Report DU PONT ( EI ) DE (DD): Free Stock Analysis Report TRAVELERS COS (TRV): Free Stock Analysis Report UTD TECHS CORP (UTX): Free Stock Analysis Report YAHOO!
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ALCOA INC ( AA ): Free Stock Analysis Report APPLE INC ( AAPL ): Free Stock Analysis Report BOEING CO ( BA ): Free Stock Analysis Report CATERPILLAR INC ( CAT ): Free Stock Analysis Report DU PONT ( EI ) DE (DD): Free Stock Analysis Report TRAVELERS COS (TRV): Free Stock Analysis Report UTD TECHS CORP (UTX): Free Stock Analysis Report YAHOO! Stocks including Alcoa Inc. (NYSE: AA ), Caterpillar, Inc. (NYSE: CAT ), E.I. On the earnings front, the limelight was squarely on Apple Inc. (NASDAQ: AAPL ), which reported a robust first quarter after the closing bell on Tuesday following which the company's shares jumped 6.2%.
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ALCOA INC ( AA ): Free Stock Analysis Report APPLE INC ( AAPL ): Free Stock Analysis Report BOEING CO ( BA ): Free Stock Analysis Report CATERPILLAR INC ( CAT ): Free Stock Analysis Report DU PONT ( EI ) DE (DD): Free Stock Analysis Report TRAVELERS COS (TRV): Free Stock Analysis Report UTD TECHS CORP (UTX): Free Stock Analysis Report YAHOO! Stocks including Alcoa Inc. (NYSE: AA ), Caterpillar, Inc. (NYSE: CAT ), E.I. On the earnings front, the limelight was squarely on Apple Inc. (NASDAQ: AAPL ), which reported a robust first quarter after the closing bell on Tuesday following which the company's shares jumped 6.2%.
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Stocks including Alcoa Inc. (NYSE: AA ), Caterpillar, Inc. (NYSE: CAT ), E.I. On the earnings front, the limelight was squarely on Apple Inc. (NASDAQ: AAPL ), which reported a robust first quarter after the closing bell on Tuesday following which the company's shares jumped 6.2%. ALCOA INC ( AA ): Free Stock Analysis Report APPLE INC ( AAPL ): Free Stock Analysis Report BOEING CO ( BA ): Free Stock Analysis Report CATERPILLAR INC ( CAT ): Free Stock Analysis Report DU PONT ( EI ) DE (DD): Free Stock Analysis Report TRAVELERS COS (TRV): Free Stock Analysis Report UTD TECHS CORP (UTX): Free Stock Analysis Report YAHOO!
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1679.0
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2012-01-26 00:00:00 UTC
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Largest option buying in equities so far
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AA
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https://www.nasdaq.com/articles/largest-option-buying-equities-so-far-2012-01-26
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nan
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nan
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Nearing the halfway mark in today's session, here are the individual equity names with the most call and put buying on optionMONSTER's ActionTracker data system.
Alcoa (AA): More than 10,000 April 12 calls were bought for $0.20, but volume was below open interest in the strike. AA fell 0.10 percent to $10.47.
JP Morgan (JPM): More than 9,000 June 34 puts were sold for $1.67. Separately, more than 6,000 April 38 calls were bought for $1.95. JPM fell 0.48 percent to $37.42.
Ford Motor (F): More than 10,000 contracts traded in each the March 12 puts and March 14 calls, apparently as an investor closed a bullish synthetic long position. F fell 0.77 percent to $12.83.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa (AA): More than 10,000 April 12 calls were bought for $0.20, but volume was below open interest in the strike. AA fell 0.10 percent to $10.47. Nearing the halfway mark in today's session, here are the individual equity names with the most call and put buying on optionMONSTER's ActionTracker data system.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Alcoa (AA): More than 10,000 April 12 calls were bought for $0.20, but volume was below open interest in the strike. AA fell 0.10 percent to $10.47.
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Alcoa (AA): More than 10,000 April 12 calls were bought for $0.20, but volume was below open interest in the strike. AA fell 0.10 percent to $10.47. Nearing the halfway mark in today's session, here are the individual equity names with the most call and put buying on optionMONSTER's ActionTracker data system.
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Alcoa (AA): More than 10,000 April 12 calls were bought for $0.20, but volume was below open interest in the strike. AA fell 0.10 percent to $10.47. JPM fell 0.48 percent to $37.42.
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1680.0
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2012-01-20 00:00:00 UTC
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Stock Market News for January 20, 2012 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-january-20-2012-market-news-2012-01-20
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nan
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nan
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Strong corporate earnings results and a positive jobless claims report helped carry the markets forward on Thursday. On an otherwise lackluster day, the S&P 500 touched a five-month high as investors awaited results from Google. However, post the closing bells, Google's results were big a disappointment.
Benchmarks continued to hover around five-month high levels and the Dow Jones Industrial Average (DJI) gained 0.4% and moved up to 12,623.98. The Standard & Poor 500 (S&P 500) added 0.5% and finished the day at 1,314.50. The Nasdaq Composite Index was up 0.7% and closed yesterday's trading session at 2,788.33. The fear-gauge CBOE Volatility Index (VIX) reflected the investors' confidence, declining 4.9% to 19.87. For every couple of stocks that advanced on the New York Stock Exchange (NYSE), one stock was on the declining side. Volumes on the NYSE were slightly higher than the average, at 4.4 billion shares.
The Dow, S&P 500, and Nasdaq have gained 3.3%, 4.5% and 7%, respectively until now this year. While economic data has set the pace for the uptrend, corporate earnings have also chipped in to help benchmarks extend their gains. Alcoa Inc. (NYSE: AA ) had unofficially kick-started the earnings season last week and had helped the markets move up after announced an upbeat outlook. In a similar fashion, encouraging results from financial bellwethers acted as one of the catalysts for the markets' upward movement yesterday.
Bank of America Corporation (NYSE: BAC ) and Morgan Stanley (NYSE: MS ) both impressed investors with their own set of earnings results. As for Bank of America, the company swung to profit in this quarter after it reported a loss in the year-ago quarter. That was enough encouragement for the investors given the turmoil the global economy has been suffering and with the consequent effects on the financial sector. Morgan Stanley's loss per share this quarter was narrower-than-expected, thus cheering investors' mood.
Bank of America and Morgan Stanley's shares jumped 2.4% and 5.4%, respectively. The financial sector enjoyed an upward movement and the Financial SPDR Select Sector Fund ( XLF ) gained 0.9%. Other key stocks like Citigroup, Inc. (NYSE: C ), JP Morgan Chase & Co. (NYSE: JPM ) and The Goldman Sachs Group, Inc. (NYSE: GS ) moved up by 1.0%, 1.1% and 3.2%, respectively. So far this year, the financial sector is having a good run and the S&P financial (GSPF) index has gained 8.1% so far.
While the corporate reports was one of the factors responsible for the markets' movement, economic data also came in strong and. Investors received a boost after learning that initial claims had dropped to their lowest levels in almost four years. The U.S. Department of Labor reported that the advance figure for seasonally adjusted initial claims dropped by 50,000 from the previous week's revised figure of 402,000 to 352,000, for the week ending January 14, 2012.
Investors also awaited quarterly results from tech bellwether Google Inc. (NASDAQ: GOOG ) and the company's shares were up 1.1% at the close of markets. However, after the closing the bell, the internet search-engine giant dampened sentiment after both its revenues and earnings failed to match up to the Street's expectations. Retail ads during the holiday season was expected to boost Google's results, but below-than-expected performance in the fourth quarter offset the increase in revenues and the marginally improved net income. After the close of the markets, Google's shares plunged 9.0%.
ALCOA INC ( AA ): Free Stock Analysis Report
BANK OF AMER CP ( BAC ): Free Stock Analysis Report
CITIGROUP INC ( C ): Free Stock Analysis Report
GOOGLE INC-CL A ( GOOG ): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
MORGAN STANLEY (MS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. (NYSE: AA ) had unofficially kick-started the earnings season last week and had helped the markets move up after announced an upbeat outlook. ALCOA INC ( AA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report CITIGROUP INC ( C ): Free Stock Analysis Report GOOGLE INC-CL A ( GOOG ): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report To read this article on Zacks.com click here. Strong corporate earnings results and a positive jobless claims report helped carry the markets forward on Thursday.
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ALCOA INC ( AA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report CITIGROUP INC ( C ): Free Stock Analysis Report GOOGLE INC-CL A ( GOOG ): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa Inc. (NYSE: AA ) had unofficially kick-started the earnings season last week and had helped the markets move up after announced an upbeat outlook. Bank of America Corporation (NYSE: BAC ) and Morgan Stanley (NYSE: MS ) both impressed investors with their own set of earnings results.
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ALCOA INC ( AA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report CITIGROUP INC ( C ): Free Stock Analysis Report GOOGLE INC-CL A ( GOOG ): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa Inc. (NYSE: AA ) had unofficially kick-started the earnings season last week and had helped the markets move up after announced an upbeat outlook. Bank of America Corporation (NYSE: BAC ) and Morgan Stanley (NYSE: MS ) both impressed investors with their own set of earnings results.
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Alcoa Inc. (NYSE: AA ) had unofficially kick-started the earnings season last week and had helped the markets move up after announced an upbeat outlook. ALCOA INC ( AA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report CITIGROUP INC ( C ): Free Stock Analysis Report GOOGLE INC-CL A ( GOOG ): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report To read this article on Zacks.com click here. In a similar fashion, encouraging results from financial bellwethers acted as one of the catalysts for the markets' upward movement yesterday.
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1681.0
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2012-01-17 00:00:00 UTC
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Alcoa Shuts Smelter in Italy (revised) - Analyst Blog
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AA
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https://www.nasdaq.com/articles/alcoa-shuts-smelter-in-italy-revised-analyst-blog-2012-01-17
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nan
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nan
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Aluminum giant Alcoa Inc. ( AA ) announced that it will close its Portovesme smelter in Italy, despite Rome's interest in keeping operations on the island of Sardinia running.
Further, Alcoa added that it will close its smelter in Italy and slash output at two Spanish smelters as a measure to cut costs and also as a part of its effort to reduce global output by 12%.
The government has proposed to suspend a collective dismissal procedure, known as mobilita in Italian, which usually leads to closing of business, and instead offered to work together to find alternative solutions. Alcoa has stated it is ready to proceed in the consultation process with mobilita, and the company has reaffirmed its decision about the closure of Portovesme smelter on the island of Sardinia.
The Labor Unions of Sardinia are not at all happy and believes that approximately 1500 workers will be directly or indirectly affected and the decision will also be a heavy blow to the island's economy. The Trade Unions have decided to protest the decision of Alcoa.
As per Alcoa, the plant had some structural deficiencies along with high electricity costs, which made it quite difficult for the plant to sustain. However, the government believes that the company was turning its back on a special decree that it passed in 2010 offering favorable power supply conditions to some industrial consumers for convincing Alcoa to keep its Italian plants working.
Recently, Alcoa Inc. reported loss in its fourth-quarter 2011 results. The company posted a loss from continuing operations of $193 million, or 18 cents per share compared with a profit of $172 million, or 15 cents per share in the comparable quarter of 2010.
Excluding restructuring charge of $159 million and other items, Alcoa's loss came in at 3 cents per share, below the Zacks Consensus estimate profit of 1 cent. It is the company's first loss in the last nine quarters.
For full-year 2011, Alcoa reported income from continuing operations of $614 million, or $0.55 per share, which is more than double of 2010 results. The disappointing results were driven by higher costs of energy and transportation.
Though revenues for the quarter rose 6% year over year to $6 billion, business was down in most areas including construction, industrial products, packaging and commercial transportation. Besides, sales to automobile manufacturers fell 2%.
For 2011, revenue rose to $25 billion from $21 billion in the fiscal year 2010.
For 2012, Alcoa expects global aluminum demand to grow 7% due to global deficit in primary aluminum supply.
Alcoa's growth projection is ahead of the 6.5% rate, which is required to meet its forecast of doubling the global aluminum demand between 2010 and 2020.
In addition, Alcoa believes that growing demand for aluminum, combined with market-related production cutbacks, will result in a global aluminum industry deficit of 600,000 metric tons in 2012.
Currently, Alcoa has a short-term (1 to 3 months) Zacks #4 Rank (Sell rating) and a long-term (6 months) Underperform recommendation.
Alcoa faces stiff competition from Aluminum Corporation Of China Limited ( ACH ), Rio Tinto plc. ( RIO ) and BHP Billiton Ltd. ( BHP ).
(We are reissuing this article to correct a problem. The original article, released yesterday, January 16, 2012, should no longer be relied upon.)
ALCOA INC ( AA ): Free Stock Analysis Report
ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report
RIO TINTO-ADR ( RIO ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aluminum giant Alcoa Inc. ( AA ) announced that it will close its Portovesme smelter in Italy, despite Rome's interest in keeping operations on the island of Sardinia running. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. The government has proposed to suspend a collective dismissal procedure, known as mobilita in Italian, which usually leads to closing of business, and instead offered to work together to find alternative solutions.
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ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. Aluminum giant Alcoa Inc. ( AA ) announced that it will close its Portovesme smelter in Italy, despite Rome's interest in keeping operations on the island of Sardinia running. The company posted a loss from continuing operations of $193 million, or 18 cents per share compared with a profit of $172 million, or 15 cents per share in the comparable quarter of 2010.
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ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. Aluminum giant Alcoa Inc. ( AA ) announced that it will close its Portovesme smelter in Italy, despite Rome's interest in keeping operations on the island of Sardinia running. For 2012, Alcoa expects global aluminum demand to grow 7% due to global deficit in primary aluminum supply.
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Aluminum giant Alcoa Inc. ( AA ) announced that it will close its Portovesme smelter in Italy, despite Rome's interest in keeping operations on the island of Sardinia running. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. However, the government believes that the company was turning its back on a special decree that it passed in 2010 offering favorable power supply conditions to some industrial consumers for convincing Alcoa to keep its Italian plants working.
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1682.0
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2012-01-16 00:00:00 UTC
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Stock Market News for January 16, 2012 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-january-16-2012-market-news-2012-01-16
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nan
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nan
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Markets edged lower once again, bogged down by cross-Atlantic concerns as several euro-zone countries looked likely to suffer credit-rating downgrades. Things were also farm from cheerful on the domestic front after banking major J.P. Morgan Chase dampened sentiment with its quarterly results. These concerns mingled to partially erode weekly gains, but benchmarks were eventually able to hold on to gains for the week.
The Dow Jones Industrial Average (DJI) shed 0.4% to end the day at 12,422.06. The Standard & Poor 500 (S&P 500) was down 0.5% and closed Friday's trading session at 1,289.09. The Nasdaq Composite Index slipped 0.5% and finished at 2,710.67. The fear-gauge CBOE Volatility Index (VIX) moved up by 2.2% and settled at 20.91. Nonetheless, the fear-gauge index is still well below the key level of 30. Consolidated volumes on the New York Stock Exchange, NYSE Amex and Nasdaq were 6.39 billion shares, lower than the daily average of 6.68 billion. The advancers were outnumbered by the decliners on the NYSE, as for 34% of the gainers, 63% of the stocks moved down. The remaining stocks were left unchanged.
For a long period now, the Euro-zone crisis have dented and occasionally added to the gains of the US benchmarks. Last week also, the markets' movement largely depended on what happened on the other side of the pool and how domestic earnings reports turned out. As for the European factors, while reports of Germany's economy contracting during the end of 2011 and a downward revision of economic growth estimates by the European Union ( EU ) dented the markets, on the other hand, a strong bond auction of Italy and Spain's debt helped the markets move higher. An upbeat outlook from aluminum manufacturer and bellwether Alcoa Inc. (NYSE: AA ) had also helped the markets' uptrend. Thus, the week ended on a winning note and the Dow, S&P 500 and the Nasdaq gained 0.5%, 0.9% and 1.4%, respectively, for the week.
Also early-last week, investors received a boost after ratings agency Fitch Ratings affirmed that it will not lower France's 'AAA" credit rating. However, by the close of the week, the tables seemed to have turned following talk of a credit-rating downgrade Standard & Poor's of several euro-zone members spooked investors on Friday. France and Austria looked certain to face the heat and reportedly the finance minister of France confirmed that French might suffer a downgrade by a notch. Also, The Wall Street Journal reported that an announcement of a credit-rating downgrade by S&P "could be imminent", and the ratings agency was circulating a notice among the euro-zone members.
The talks had sent the markets lower and on the home front a dismal quarterly report from JP Morgan Chase & Co. (NYSE: JPM ) added to the gloom. Adjusted earnings missed estimates and the banking bellwether also reported a drop in revenues. The dismal performance highlighted the threats the global economy is currently living with. Shares of JP Morgan Chase slid 2.5% and the financial sector as a whole suffered a slump. The Financial SPDR Select Sector Fund ( XLF ) fund dropped 0.8% and the KBW Bank Index (BKX) index was down 0.4%. Among the stocks, Bank of America Corporation (NYSE: BAC ), Goldman Sachs Group, Inc. (NYSE: GS ), Morgan Stanley (NYSE: MS ), Citigroup, Inc. (NYSE: C ) declined 2.7%, 2.2%, 3.2% and 2.7%, respectively.
As for the credit-rating downgrades, after the closing bell, S&P did ahead with the downgrades. The agency slashed France, Austria, Malta, Slovakia and Slovenia's ratings by one notch. Meanwhile, Italy, Spain, Portugal and Cyprus were downgraded by two notches.
ALCOA INC ( AA ): Free Stock Analysis Report
BANK OF AMER CP ( BAC ): Free Stock Analysis Report
CITIGROUP INC ( C ): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
MORGAN STANLEY (MS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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An upbeat outlook from aluminum manufacturer and bellwether Alcoa Inc. (NYSE: AA ) had also helped the markets' uptrend. Also early-last week, investors received a boost after ratings agency Fitch Ratings affirmed that it will not lower France's 'AAA" credit rating. ALCOA INC ( AA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report CITIGROUP INC ( C ): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report To read this article on Zacks.com click here.
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ALCOA INC ( AA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report CITIGROUP INC ( C ): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report To read this article on Zacks.com click here. An upbeat outlook from aluminum manufacturer and bellwether Alcoa Inc. (NYSE: AA ) had also helped the markets' uptrend. Also early-last week, investors received a boost after ratings agency Fitch Ratings affirmed that it will not lower France's 'AAA" credit rating.
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ALCOA INC ( AA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report CITIGROUP INC ( C ): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report To read this article on Zacks.com click here. An upbeat outlook from aluminum manufacturer and bellwether Alcoa Inc. (NYSE: AA ) had also helped the markets' uptrend. Also early-last week, investors received a boost after ratings agency Fitch Ratings affirmed that it will not lower France's 'AAA" credit rating.
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An upbeat outlook from aluminum manufacturer and bellwether Alcoa Inc. (NYSE: AA ) had also helped the markets' uptrend. Also early-last week, investors received a boost after ratings agency Fitch Ratings affirmed that it will not lower France's 'AAA" credit rating. ALCOA INC ( AA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report CITIGROUP INC ( C ): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report To read this article on Zacks.com click here.
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1683.0
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2012-01-16 00:00:00 UTC
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Alcoa Snubs Govt. Plan, Shuts Plant - Analyst Blog
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AA
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https://www.nasdaq.com/articles/alcoa-snubs-govt.-plan-shuts-plant-analyst-blog-2012-01-16
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nan
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nan
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The Aluminum giant, Alcoa Inc. ( AA ) announced that it will close its Portovesme smelter in Italy, despite Rome's call to keep operations on the island of Sardinia running.
Further, Alcoa added that it will close its smelter in Italy and slash output at two Spanish smelters as a measure to cut costs and also as a part of its effort to reduce global output by 12%.
The government has proposed to suspend a collective dismissal procedure, known as mobilita in Italian, which usually leads to closing of business, and instead offered to work together to find alternative solutions. However, Alcoa rejected the proposal and reaffirmed its decision about the closure of Portovesme smelter on the island of Sardinia.
The Labor Unions of Sardinia are not at all happy and believes that approximately 1500 workers will be directly or indirectly affected and the decision will also be a heavy blow to the island's economy. The Trade Unions have decided to protest the decision of Alcoa.
As per Alcoa, the plant had some structural deficiencies along with high electricity costs, which made it quite difficult for the plant to sustain. However, the government believes that the company was turning its back on a special decree that it passed in 2010 offering favorable power supply conditions to some industrial consumers for convincing Alcoa to keep its Italian plants working.
Recently, Alcoa Inc. reported loss in its fourth-quarter 2011 results. The company posted a loss from continuing operations of $193 million, or 18 cents per share compared with a profit of $172 million, or 15 cents per share in the comparable quarter of 2010.
Excluding restructuring charge of $159 million and other items, Alcoa's loss came in at 3 cents per share, below the Zacks Consensus estimate profit of 1 cent. It is the company's first loss in the last nine quarters.
For full-year 2011, Alcoa reported income from continuing operations of $614 million, or $0.55 per share, which is more than double of 2010 results. The disappointing results were driven by higher costs of energy and transportation.
Though revenues for the quarter rose 6% year over year to $6 billion, business was down in most areas including construction, industrial products, packaging and commercial transportation. Besides, sales to automobile manufacturers fell 2%.
For 2011, revenue rose to $25 billion from $21 billion in the fiscal year 2010.
For 2012, Alcoa expects global aluminum demand to grow 7% due to global deficit in primary aluminum supply.
Alcoa's growth projection is ahead of the 6.5% rate, which is required to meet its forecast of doubling the global aluminum demand between 2010 and 2020.
In addition, Alcoa believes that growing demand for aluminum, combined with market-related production cutbacks, will result in a global aluminum industry deficit of 600,000 metric tons in 2012.
Currently, Alcoa has a short-term (1 to 3 months) Zacks #4 Rank (Sell rating) and a long-term (6 months) Underperform recommendation.
Alcoa faces stiff competition from Aluminum Corporation Of China Limited ( ACH ), Rio Tinto plc. ( RIO ) and BHP Billiton Ltd. ( BHP ).
ALCOA INC ( AA ): Free Stock Analysis Report
ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report
BHP BILLITN LTD ( BHP ): Free Stock Analysis Report
RIO TINTO-ADR ( RIO ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Aluminum giant, Alcoa Inc. ( AA ) announced that it will close its Portovesme smelter in Italy, despite Rome's call to keep operations on the island of Sardinia running. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. The government has proposed to suspend a collective dismissal procedure, known as mobilita in Italian, which usually leads to closing of business, and instead offered to work together to find alternative solutions.
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ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. The Aluminum giant, Alcoa Inc. ( AA ) announced that it will close its Portovesme smelter in Italy, despite Rome's call to keep operations on the island of Sardinia running. The company posted a loss from continuing operations of $193 million, or 18 cents per share compared with a profit of $172 million, or 15 cents per share in the comparable quarter of 2010.
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ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. The Aluminum giant, Alcoa Inc. ( AA ) announced that it will close its Portovesme smelter in Italy, despite Rome's call to keep operations on the island of Sardinia running. For 2012, Alcoa expects global aluminum demand to grow 7% due to global deficit in primary aluminum supply.
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The Aluminum giant, Alcoa Inc. ( AA ) announced that it will close its Portovesme smelter in Italy, despite Rome's call to keep operations on the island of Sardinia running. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. However, Alcoa rejected the proposal and reaffirmed its decision about the closure of Portovesme smelter on the island of Sardinia.
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1684.0
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2012-01-13 00:00:00 UTC
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Largest option buying in equities so far
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AA
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https://www.nasdaq.com/articles/largest-option-buying-equities-so-far-2012-01-13
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nan
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nan
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Nearing the halfway mark in today's session, here are the individual equity names with the most call and put buying on optionMONSTER's ActionTracker data system.
Alcoa (AA): An investor bought 10,000 February 10 calls for $0.31, looking for upside in the stock. AA fell 1.91 percent to $9.74.
Bank of America (BAC): Investors purchased more than 17,000 February 7 calls for $0.23 to $0.26, looking for the shares to push higher. BAC fell 2.95 percent to $6.59.
Ariad Pharmaceuticals (ARIA): More than 8,000 contracts traded in the May 6 puts for $0.05 and the May 7 puts for a net cost of $0.05 as a protective position was rolled higher by $1. ARIA rose 0.29 percent to $13.92.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa (AA): An investor bought 10,000 February 10 calls for $0.31, looking for upside in the stock. AA fell 1.91 percent to $9.74. Nearing the halfway mark in today's session, here are the individual equity names with the most call and put buying on optionMONSTER's ActionTracker data system.
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AA fell 1.91 percent to $9.74. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Alcoa (AA): An investor bought 10,000 February 10 calls for $0.31, looking for upside in the stock.
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Alcoa (AA): An investor bought 10,000 February 10 calls for $0.31, looking for upside in the stock. AA fell 1.91 percent to $9.74. Nearing the halfway mark in today's session, here are the individual equity names with the most call and put buying on optionMONSTER's ActionTracker data system.
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AA fell 1.91 percent to $9.74. Alcoa (AA): An investor bought 10,000 February 10 calls for $0.31, looking for upside in the stock. BAC fell 2.95 percent to $6.59.
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1685.0
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2012-01-12 00:00:00 UTC
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Stock Market News for January 12, 2012 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-january-12-2012-market-news-2012-01-12
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nan
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nan
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European debt concerns once again weighed down the markets and dragged the Dow slightly lower, while the S&P 500 and Nasdaq posted meager gains. Reports of Germany's economy contracting during the end of 2011 and a downward revision of economic growth estimates by the European Union ( EU ) dented the markets. However, a late upward swing helped the markets extend their stay around five-month high levels.
The Dow Jones Industrial Average (DJI) dropped 0.1% to settle at 12,449.45. The Standard & Poor 500 (S&P 500) edged up by a mere 0.03% to finish yesterday's trading session at 1,292.48. The Nasdaq Composite Index added 0.3% to close at 2,710.76. The fear-gauge CBOE Volatility Index (VIX) rose 1.7% to settle at 21.05. On the New York Stock Exchange, NYSE Amex and Nasdaq, consolidated volumes were roughly 6.65 billion shares, marginally lower than the daily average of 6.7 billion. Advancers on the NYSE edged out the decliners, with 54% of the stocks registering gains versus 43% which traded lower. The remaining 3% of the stocks were left unchanged.
Looking at the margin by which the benchmarks moved yesterday, it might seem that there were not too many developments that could sway the markets. However, developments that came to light yesterday once again sparked recessionary fears to an extent. Debt crisis fears remained unabated in Europe, and apart from German and Italy's leaders being upbeat about the situation there was nothing else to be happy about.
Germany, one of the important economies of the European Union, dampened sentiment after reporting that its economy had suffered a contraction at the end of last year. Germany's Federal Statistics Office sparked fears of a possible recession as it said on Wednesday that the nation's economy had possibly shrunk by 0.25% in 2011's last quarter. Investors will have to wait until mid-February for the final numbers. However, the statistics office said that the nation had registered a strong 3% rate of growth for the full year.
Adding to these woes, the euro also slid against the greenback to hover around a 16-month low. Meanwhile, Fitch Ratings added to the gloom after predicting a dismal road ahead for the euro. David Riley, Fitch' s head of sovereign ratings, said: "The ECB needs to be more actively engaged, but it can't save the euro on its own. The crisis won't be over until we have a broad-based economic recovery". He also urged the European Central Bank (ECB) to play a larger role in order to avert a "cataclysmic" euro collapse. Meanwhile, the ECB was expected to keep the interest rate intact at 1%.
Separately, the European Union reduced its third quarter economic growth forecast from 0.2% to 0.1%. With this downward revision, growth could hit its slowest pace since last two years. With concerns dominating the mood, investors will also remain nervous about how the bond auctions of Italy and Spain scheduled for this week, turn out. A poor showing would further dampen the already dismal outlook about Europe.
However, German Chancellor Angela Merkel and Italian Prime Minister Mario Monti both sounded upbeat about tackling lingering European debt woes. Angela Merkel particularly appreciated Italy's approach towards dealing with economic threats. Speaking about the austerity measures adopted by the Italian government, Angela Merkel said: "We have followed with great respect how quickly the measures are being implemented…The work of the Italian government is being honored".
Meanwhile, on the domestic front, conditions looked better after the Federal Reserve's Beige Book said that "national economic activity expanded at a modest to moderate pace during the reporting period of late November through the end of December". The Beige Book reported an increase in consumer spending, expansion of the travel and tourism sector, higher demand for non-financial services, while the manufacturing activity expanded but at a slower pace.
Coming to individual sectors, materials enjoyed a second-consecutive day of gains and the Materials Select Sector SPDR ( XLB ) fund posted gains of 1.0%. Among the stocks, Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX ), Southern Copper Corporation Com (NYSE: SCCO ), Alcoa Inc. (NYSE: AA ), Newmont Mining Corporation (NYSE: NEM ), Nucor Corporation (NYSE: NUE ) and U.S. Gold Corporation (NYSE: UXG ) gained 3.2%, 1.3%, 2.0%, 1.1%, 1.3% and 2.4%, respectively. Notably, AK Steel Holding Corporation (NYSE: AKS ) gained 8.6% after Credit Suisse upgraded the company to "outperform".
ALCOA INC ( AA ): Free Stock Analysis Report
AK STEEL HLDG ( AKS ): Free Stock Analysis Report
FREEPT MC COP-B ( FCX ): Free Stock Analysis Report
NEWMONT MINING (NEM): Free Stock Analysis Report
NUCOR CORP (NUE): Free Stock Analysis Report
SOUTHERN COPPER (SCCO): Free Stock Analysis Report
US GOLD CORP (UXG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the stocks, Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX ), Southern Copper Corporation Com (NYSE: SCCO ), Alcoa Inc. (NYSE: AA ), Newmont Mining Corporation (NYSE: NEM ), Nucor Corporation (NYSE: NUE ) and U.S. Gold Corporation (NYSE: UXG ) gained 3.2%, 1.3%, 2.0%, 1.1%, 1.3% and 2.4%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report AK STEEL HLDG ( AKS ): Free Stock Analysis Report FREEPT MC COP-B ( FCX ): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report US GOLD CORP (UXG): Free Stock Analysis Report To read this article on Zacks.com click here. However, German Chancellor Angela Merkel and Italian Prime Minister Mario Monti both sounded upbeat about tackling lingering European debt woes.
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Among the stocks, Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX ), Southern Copper Corporation Com (NYSE: SCCO ), Alcoa Inc. (NYSE: AA ), Newmont Mining Corporation (NYSE: NEM ), Nucor Corporation (NYSE: NUE ) and U.S. Gold Corporation (NYSE: UXG ) gained 3.2%, 1.3%, 2.0%, 1.1%, 1.3% and 2.4%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report AK STEEL HLDG ( AKS ): Free Stock Analysis Report FREEPT MC COP-B ( FCX ): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report US GOLD CORP (UXG): Free Stock Analysis Report To read this article on Zacks.com click here. Germany's Federal Statistics Office sparked fears of a possible recession as it said on Wednesday that the nation's economy had possibly shrunk by 0.25% in 2011's last quarter.
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Among the stocks, Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX ), Southern Copper Corporation Com (NYSE: SCCO ), Alcoa Inc. (NYSE: AA ), Newmont Mining Corporation (NYSE: NEM ), Nucor Corporation (NYSE: NUE ) and U.S. Gold Corporation (NYSE: UXG ) gained 3.2%, 1.3%, 2.0%, 1.1%, 1.3% and 2.4%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report AK STEEL HLDG ( AKS ): Free Stock Analysis Report FREEPT MC COP-B ( FCX ): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report US GOLD CORP (UXG): Free Stock Analysis Report To read this article on Zacks.com click here. Reports of Germany's economy contracting during the end of 2011 and a downward revision of economic growth estimates by the European Union ( EU ) dented the markets.
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Among the stocks, Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX ), Southern Copper Corporation Com (NYSE: SCCO ), Alcoa Inc. (NYSE: AA ), Newmont Mining Corporation (NYSE: NEM ), Nucor Corporation (NYSE: NUE ) and U.S. Gold Corporation (NYSE: UXG ) gained 3.2%, 1.3%, 2.0%, 1.1%, 1.3% and 2.4%, respectively. ALCOA INC ( AA ): Free Stock Analysis Report AK STEEL HLDG ( AKS ): Free Stock Analysis Report FREEPT MC COP-B ( FCX ): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report NUCOR CORP (NUE): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report US GOLD CORP (UXG): Free Stock Analysis Report To read this article on Zacks.com click here. Advancers on the NYSE edged out the decliners, with 54% of the stocks registering gains versus 43% which traded lower.
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1686.0
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2012-01-11 00:00:00 UTC
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Stock Market News for January 11, 2012 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-january-11-2012-market-news-2012-01-11
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nan
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Positive developments from the other side of the Atlantic and an upbeat outlook from aluminum producer Alcoa combined to take the markets higher on Tuesday. Meanwhile, what was most significant was that Wall Street logged a five-month trading high. The materials sector contributed significantly to the broader rally along with decent gains by technology stocks.
The Dow Jones Industrial Average (DJIA) climbed 0.6% to end the day at 12,462.47. The Standard & Poor 500 (S&P 500) gained 0.9% and finished yesterday's trading session at 1,292.08. The tech-laden Nasdaq Composite Index inched up by a percent to close the day at 2,702.50. The fear-gauge CBOE Volatility Index (VIX) dropped 1.8% to settle at 20.69, continuing to display stronger conviction in the markets. The VIX has declined by 11.6% this year, hovering around levels that markets last witnessed in July 2011. The Street looked busy yesterday as the consolidated volumes on the New York Stock Exchange, NYSE Amex and Nasdaq were 7.02 billion shares, ahead of the daily average of 6.7 billion. On the NYSE, the advancers had an upper hand over the decliners, as for 75% of the gainers, 22% stocks moved down. The remaining 3% of the stocks were left unchanged.
Investors' smiles widened after they learnt that the Dow and S&P 500 had hit five-month intra-day highs. The S&P 500 witnessed its highest closing levels since July last year. Markets had been trending up over the past few sessions, and a slew of encouraging economic reports, particularly since late-December, have been boosting sentiment. Clearly, economic data provides significant direction to the markets and is expected to do so in the coming days. Coupled with these developments, Alcoa, Inc. (NYSE: AA ) has unofficially kick started the earnings season, and market movement will largely depend on the bellwether's quarterly results.
In fact, Alcoa's upbeat guidance paved the way for yesterday's gains. Post the closing bell on Monday, Alcoa reported a loss of $0.03 per share, excluding special items, for the period from October to December, 2011. However, the bellwether's revenues increased 6% and also topped forecasts. Alcoa also boosted sentiment when it said that it expects global aluminum demand to grow 7% in 2012. A large group of companies depend on Alcoa and an upbeat outlook from the aluminum maker perhaps hints at better days ahead for the economy. Alcoa projected growth in automotive, aerospace, construction, packaging and commercial transportation.
The materials sector cashed in on the optimism and the Materials Select Sector SPDR ( XLB ) fund was up 1.9%. Among the gainers, Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX ), Southern Copper Corp. (NYSE: SCCO ), Newmont Mining Corp. (NYSE: NEM ) and E. I. du Pont de Nemours and Company (NYSE: DD ) gained 4.0%, 3.7%, 1.9% and 1.5%, respectively.
Among the other sectors, the technology sector also enjoyed significant gains. Among the gainers in the technology sector, Computer Sciences Corporation (NYSE: CSC ), Dell Inc. (NASDAQ: DELL ), Hewlett-Packard Company (NYSE: HPQ ), Super Micro Computer, Inc. (NASDAQ: SMCI ) and Avid Technology, Inc. (NASDAQ: AVID ) jumped 4.5%, 1.6%, 1.0%, 1.8% and 5.6%, respectively.
Europe also spurred the positive mood yesterday after ratings agency Fitch Ratings affirmed that it will not lower France's 'AAA" credit rating. The euro also moved higher against the greenback for the second day in a row.
ALCOA INC ( AA ): Free Stock Analysis Report
AVID TECH INC ( AVID ): Free Stock Analysis Report
COMP SCIENCE ( CSC ): Free Stock Analysis Report
DU PONT ( EI ) DE (DD): Free Stock Analysis Report
DELL INC (DELL): Free Stock Analysis Report
FREEPT MC COP-B (FCX): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
NEWMONT MINING (NEM): Free Stock Analysis Report
SOUTHERN COPPER (SCCO): Free Stock Analysis Report
SUPER MICRO COM (SMCI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Coupled with these developments, Alcoa, Inc. (NYSE: AA ) has unofficially kick started the earnings season, and market movement will largely depend on the bellwether's quarterly results. Europe also spurred the positive mood yesterday after ratings agency Fitch Ratings affirmed that it will not lower France's 'AAA" credit rating. ALCOA INC ( AA ): Free Stock Analysis Report AVID TECH INC ( AVID ): Free Stock Analysis Report COMP SCIENCE ( CSC ): Free Stock Analysis Report DU PONT ( EI ) DE (DD): Free Stock Analysis Report DELL INC (DELL): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report SUPER MICRO COM (SMCI): Free Stock Analysis Report To read this article on Zacks.com click here.
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ALCOA INC ( AA ): Free Stock Analysis Report AVID TECH INC ( AVID ): Free Stock Analysis Report COMP SCIENCE ( CSC ): Free Stock Analysis Report DU PONT ( EI ) DE (DD): Free Stock Analysis Report DELL INC (DELL): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report SUPER MICRO COM (SMCI): Free Stock Analysis Report To read this article on Zacks.com click here. Coupled with these developments, Alcoa, Inc. (NYSE: AA ) has unofficially kick started the earnings season, and market movement will largely depend on the bellwether's quarterly results. Europe also spurred the positive mood yesterday after ratings agency Fitch Ratings affirmed that it will not lower France's 'AAA" credit rating.
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ALCOA INC ( AA ): Free Stock Analysis Report AVID TECH INC ( AVID ): Free Stock Analysis Report COMP SCIENCE ( CSC ): Free Stock Analysis Report DU PONT ( EI ) DE (DD): Free Stock Analysis Report DELL INC (DELL): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report SUPER MICRO COM (SMCI): Free Stock Analysis Report To read this article on Zacks.com click here. Coupled with these developments, Alcoa, Inc. (NYSE: AA ) has unofficially kick started the earnings season, and market movement will largely depend on the bellwether's quarterly results. Europe also spurred the positive mood yesterday after ratings agency Fitch Ratings affirmed that it will not lower France's 'AAA" credit rating.
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ALCOA INC ( AA ): Free Stock Analysis Report AVID TECH INC ( AVID ): Free Stock Analysis Report COMP SCIENCE ( CSC ): Free Stock Analysis Report DU PONT ( EI ) DE (DD): Free Stock Analysis Report DELL INC (DELL): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report SUPER MICRO COM (SMCI): Free Stock Analysis Report To read this article on Zacks.com click here. Coupled with these developments, Alcoa, Inc. (NYSE: AA ) has unofficially kick started the earnings season, and market movement will largely depend on the bellwether's quarterly results. Europe also spurred the positive mood yesterday after ratings agency Fitch Ratings affirmed that it will not lower France's 'AAA" credit rating.
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1687.0
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2012-01-10 00:00:00 UTC
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I'm Spending $7,000 on my Latest Stock Idea
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AA
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https://www.nasdaq.com/articles/im-spending-7000-my-latest-stock-idea-2012-01-10
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nan
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nan
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I like to strike while the iron is hot. That's why I've wasted no time committing cash from my $100,000 real-money portfolio in short order.
To recap...
I bought $12,500 worth of Ford Motor ( F ) , which I think is poised for great things in 2012 , thanks to fresh car designs, a burgeoning cash balance and rebounding demand for automobiles.
I committed a smaller stake to my second pick, Alcoa ( AA ) , just before the aluminum maker released year-end results and issued an outlook for 2012. [ You can read my take here .]
But sometimes, it pays to wait.
I wanted to parse Alcoa's results and confirm my opinion that investors would begin to look forward to the company's brightening prospects after digesting theearnings release. It looks like they're doing just that, which is why I plan to buy an additional 700shares on Thursday, Jan. 12.
My third pick, Zoltek (Nasdaq: ZOLT) , is also off to a strong start, bringing readers a quick gain so fast that it ran up roughly 10% before I was able to take my stake. (Remember, I give you at least two days' notice before I make a buy for my portfolio.) So I'm waiting to build my position on pullbacks in the stock.
It's been a fun ride so far, and I expect a lot more excitement to come. If you haven't already, I encourage you to sign up for these portfolio ideas to be delivered to your inbox as soon as they're published. [ Go here to sign up .]
Now for my latest idea...
There's been a great deal of anger over an Obama administration decision to phase out the use of incandescent light bulbs. Some see it as a needless exercise in government intrusion into our lives, limiting our choices. Yet these same people also want to see us cut our dependence on foreign oil, especially from countries that we would rather not have to cozy up to.
Though government-mandated changes can be annoying when it involves items we have been using all of our lives, this policy change should be a welcome one.
Why's that?
Because one of the best ways to cut out energy use is to get rid of those incandescent bulbs, which date back to Thomas Edison's heyday. The fact that these bulbs are too hot to touch when lit tells you that much of their energy is being wasted in the form of heat. In contrast, LED bulbs make so much sense. They're very energy-efficient and can last years. The upfront cost, at roughly five times the price, is a bit hard to swallow. But consumers see a payback in terms of energy savings within just a few months. Eliminating the need to frequently buy replacement bulbs only heightens the Return on Investment (R.O.I.).
I have been focusing readers' attention on Cree Research (Nasdaq: CREE) , the undisputed leader in the global field of LED lighting. The stock garnered a great deal of buzz as 2011 began, trading above $65. Six months later, the stock had fallen by half, for reasons I'll explain in a moment, and I predicted better days ahead as the company's long-term outlook remains really promising.
Well, investors continued to focus on an admittedly challenging short-term picture, and in these uncertain times, they decided that the long-term upside would have to wait.Shares now trade even lower, 70% off their52-week high .
With such pessimism built in to this stock, I think acontrarian take is essential.
The greatest headwind for Cree has been industry. Rivals flooded themarket , leading to falling prices andprofit margins, and rising inventories.
Take a look at Cree's numbers over the last four quarters.
Sales got off to a slow start last year, falling 15% sequentially in the first quarter, and they've rebounded at a slower pace than management expected. As a result, inventories surged, which led to price cuts that crushed margins. The problem is still being resolved. At the end of the most recent quarter, Cree had more than 100 days' worth ofinventory on hand, which is far too much for a just-in-time business.
In my view, the future direction of this stock will hinge on how these numbers trend.
More recent signs are promising. For example, based on current sales run rates, gross margins should flatten in the quarter that just ended and rise roughly 0.5% during each of the next two quarters. That's not due to an expected firming in pricing but rather a lowered cost of manufacturing. Equally important, output has been throttled back. And thoughinventory may not drop sharply in the December 2011 quarter, it should steadily trend down in coming quarters, thanks to rising demand and flat production.
The reversal of these metrics are a key reason to focus on this stock now.
Perhaps the most promising data point is that China, which accounts for 40% of Cree's revenue, apparently embarked on a year-end budget flush, placing fairly large orders for LED lights in December. That removes a key risk for this stock, as December quarter results are now likely to meet or exceed current forecasts. (Cree has slightly trailed forecasts in three of the last four quarters.)
With an eye toward capital preservation, I didn't want to own this stock on the cusp ofearnings season if I thought a subpar quarter was imminent. Cree will release fiscal second-quarter results on Tuesday, Jan.17.
Make no mistake, this will always be an industry marked by price declines, as risingvolume sparks greater competition. One industry study, conducted by analysts at Needham, predicts demand for LED lights will grow 90% a year for the next five years. But industry sales will only rise 38% annually as price cuts take a bite out of revenue.
The question for us is how much of that growth is captured by Cree? And what kind ofprofit margins can the company garner?
On the first question, Cree should surely benefit from an expanding pie. Analysts expect the company to boost sales roughly 25% in each of the next two fiscal years, culminating in a sales base of $1.55 billion by fiscal (June) 2013. I think 20% growth would be a prudent expectation, just because the company hasn't lived up recent expectations (though it surely did for a number of years before 2011).
And though management has laid out plans to get gross margins back above 40% by boosting manufacturing yields and entering niches with firmer pricing, I think it's better to assume this never happens and that gross margins remain stuck below 40%. (They had been above 40% in six of the last eight years.)
I may be toobearish here. Cree is working on a raft of technology tweaks that will extend its lead against many other LED lighting makers. That's the payoff of an R&D effort that by some estimates has been as large as the rest of the industry -- combined.
Bearish or not, I expect results to be good -- not great -- in coming quarters. Yet I think this is stock is vastly oversold.
To be sure, Cree isn't a stock to own for near-term results. It may look quite cheap at just 12 times consensus fiscal (June) 2013 forecasts of around $1.80 a share. But I want to take a much more cautious stance, anticipating per share profits of just $1.50. That puts the forward multiple at around 14. Still, not bad...
The downside protection --> This company was valued at $8 billion a year ago and is now valued at just $2.5 billion. Back out the company's $600 million in net cash, and theenterprise value slips under $2 billion, roughly half of what the sales base may look like by 2014 or 2015.
The upside triggers --> As noted above, a reversal of deteriorating quarterly trends on theincome statement andbalance sheet is the most solidcatalyst . Once that happens, investors can again focus on the bright long-term view. Note that sales came in under $500 million in fiscal (June) 2008, almost hit $1 billion in fiscal 2011, and could approach $2 billion by the middle of the decade.
Assuming gross margins in the low 30s,earnings could hit $4 a share by then. That's the way this stock was once viewed back in early 2011 when it hit almost $70, and that's the way it should again be viewed. It may take some time for sentiment to reverse, but the powerful macro trends underpinning demand for LED lighting will eventually determine this stock's fate. At a recent $21, the upside looks too good to pass up.
Action to Take --> As a solid core holding, I am allotting 300 shares (or roughly $7,000) to this stock. I'll make the trade on Thursday, January 12 and will adjust the position after glimpsing at the next quarter'sgross margin and inventory figures.
Here's the Latest Snapshot of my $100,000 Real-Money Portfolio...
-- David Sterman
P.S. -- Remember, you're invited to trade right along with me. I'll even give you at least a two day head start. Don't miss a thing and sign up to receive my latest ideas for free.
David Sterman does not hold positions in any securities mentioned in this article. StreetAuthority owns shares of F, AA in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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I committed a smaller stake to my second pick, Alcoa ( AA ) , just before the aluminum maker released year-end results and issued an outlook for 2012. StreetAuthority owns shares of F, AA in one or more if its "real money" portfolios. I bought $12,500 worth of Ford Motor ( F ) , which I think is poised for great things in 2012 , thanks to fresh car designs, a burgeoning cash balance and rebounding demand for automobiles.
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I committed a smaller stake to my second pick, Alcoa ( AA ) , just before the aluminum maker released year-end results and issued an outlook for 2012. StreetAuthority owns shares of F, AA in one or more if its "real money" portfolios. Analysts expect the company to boost sales roughly 25% in each of the next two fiscal years, culminating in a sales base of $1.55 billion by fiscal (June) 2013.
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I committed a smaller stake to my second pick, Alcoa ( AA ) , just before the aluminum maker released year-end results and issued an outlook for 2012. StreetAuthority owns shares of F, AA in one or more if its "real money" portfolios. For example, based on current sales run rates, gross margins should flatten in the quarter that just ended and rise roughly 0.5% during each of the next two quarters.
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I committed a smaller stake to my second pick, Alcoa ( AA ) , just before the aluminum maker released year-end results and issued an outlook for 2012. StreetAuthority owns shares of F, AA in one or more if its "real money" portfolios. Take a look at Cree's numbers over the last four quarters.
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1688.0
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2012-01-10 00:00:00 UTC
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What To Look For In An Earnings Report
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AA
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https://www.nasdaq.com/articles/what-look-earnings-report-2012-01-10
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nan
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nan
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First, earnings, of course. They're announced every quarter and summed up at the end of the fiscal year. We're starting the first quarter of most companies' earnings now. Alcoa reported on Monday. But there's much more to an earnings report than just the earnings number, a number that reflects the profit or loss for the previous three months.
-Management's Forecast. This may be even more important than the numbers. Most CEO's will give an appraisal of where the see their markets and businesses headed. If they revise their earlier estimates for revenues and profits downward, the stock will immediately reflect that. If it's upward, investors like that and will usually bid up the stock. The latest example of that is Alcoa. It reported a small loss (3 cents a share). It was mostly expected. But revenues were better than anticipated (see below) and management was optimistic about 2012. The stock rallied on the news in spite of the loss in earnings.
- Revenues. While earnings are the driver for stocks, what is almost as important for investors is revenues. They will be going up or down. Good stocks always have a way of seeing revenues increase. Again, Alcoa is a good example. It showed sales of $5..99 billion for the quarter, well above the $5.7 billion analysts predicted and a solid increase over the $5.65 billion of sales in 2010's last quarter. It's the eighth consecutive quarter of year over year revenue increases. When revenues continually improve, earnings usually follow.
- Extraordinary events. As indicated, these don't happen every quarter like other expenses. They're extraordinary. That means if a company has an unusual occurrence, such as a tornado knocked out a plant, it's not likely it will happen again. Most analysts overlook these events and factor back into their calculations the earnings that the event damaged. However, some companies have a way of experiencing extraordinary events every quarter. This should raise a red flag for investors, especially if those events are made internally, such as accounting adjustments, the worst kind. Most often, accounting adjustments are like cockroaches. There's never just one.
Extraordinary events will hurt headline earnings. Earnings are reported as a single number. But it's important to look behind the headlines to see what makes up that number. Sometimes extraordinary events, like the sale of a division, will greatly enhance earnings. That, too, is a one time thing and shouldn't be included in any ongoing earnings calculations or estimates. Watch out for extraordinary events, good or bad, happening so often that they become ordinary. It means the company isn't being managed well or is enhancing earnings in ways that aren't sustainable.
- Expenses. Are they growing? That can be good. Growing companies need to add new people to satisfy orders or increase service. The real question is: are they growing, as a percentage, faster than revenues and profits? It's only when expenses get ahead of a firm's internal growth that some concern can be raised. Sometimes a company will staff up a new department in order to develop a new product or service. That will make expenses rise without a concurrent increase in revenues or profits. But if the department delivers, that expense will become a smaller percent of revenues and profits. It's the trend that investors need to follow. Any time expenses continually rise faster than the income side of the business, it's a problem that shows up in profits.
There will be thousands of companies reporting earnings over the next several weeks. With these particular elements in mind, read them more thoroughly than just the headlines. The headlines (and just earnings) don't begin to tell the story of what's going in a company.
- Ted Allrich
January 10, 2012
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If they revise their earlier estimates for revenues and profits downward, the stock will immediately reflect that. This should raise a red flag for investors, especially if those events are made internally, such as accounting adjustments, the worst kind. Any time expenses continually rise faster than the income side of the business, it's a problem that shows up in profits.
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But there's much more to an earnings report than just the earnings number, a number that reflects the profit or loss for the previous three months. Any time expenses continually rise faster than the income side of the business, it's a problem that shows up in profits. - Ted Allrich January 10, 2012 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But there's much more to an earnings report than just the earnings number, a number that reflects the profit or loss for the previous three months. While earnings are the driver for stocks, what is almost as important for investors is revenues. Extraordinary events will hurt headline earnings.
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Good stocks always have a way of seeing revenues increase. As indicated, these don't happen every quarter like other expenses. However, some companies have a way of experiencing extraordinary events every quarter.
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1689.0
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2012-01-10 00:00:00 UTC
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Mid-Day Update: U.S Stocks Broadly Higher, Following Global Markets to Upside
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AA
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https://www.nasdaq.com/articles/mid-day-update-us-stocks-broadly-higher-following-global-markets-upside-2012-01-10
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nan
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nan
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Stocks are broadly higher today, with U.S. equities rising following strong advances in the European and Asian markets along with an optimistic start last night to the company earnings reporting period. Several economic reports released today are mildly supportive as well.
Shares of Alcoa Inc ( AA ) -- traditionally the first of the S&P 500 companies to report its quarterly results -- are up about 1% at mid-day after the aluminum producer last night reported an $0.18 per share Q4 loss from continuing operations, largely in line with recently revised Street forecasts. The $6 billion in revenues at Alcoa during the quarter topped estimates.
In economic indicators released today, small-business optimism rose in December for the fourth consecutive month, according to the National Federation of Independent Business in its monthly survey. Optimism rose 1.8 points, settling at 93.8 last month and representing a 5.7-point gain since September. Despite the extended advance, the industry group cautioned that the total reading remains in recession territory.
Also, inventories at U.S. wholesalers rose 0.1% in November, following a revised 1.2% gain in October, the Commerce Department reported today. Economists had projected a 0.5% rise, according to the median estimate in a Bloomberg News survey. Sales climbed 0.6% in November, the agency said.
There were 3.2 million job openings on the last business day of November, unchanged from the end of October, the U.S. Bureau of Labor Statistics reported today. The hires rate was 3.2% and the separations rate was 3.0%, also little changed over the month although the job openings rate has trended upward since the end of the recession in June 2009.
In company news:
Yum! Brands ( YUM ) has hit new year highs today amid reports the company is set to expand its KFC outlets into seven more countries across Africa in 2012 and add 100 stores on the continent. Pizza Hut, another Yum brand, expects to enter South Africa this year or next, according to the MarketWatchreport.
Life Technologies ( LIFE ) is picking up considerable support day, with shares rising after unveiling its Benchtop Ion Proton Sequencer at the Consumer Electronics Show (CES) in Las Vegas. The new device is designed to decode a human genome in one day for $1,000.
Commodities are higher. February gold contracts are up $31.50 to $1639.60 an ounce, while February crude oil contracts are ahead $1.56 to $102.85 a barrel.
In energy ETFs, the United States Oil Fund ( USO ) is down 1.1% to $39.50 and the United States Natural Gas fund ( UNG ) is down nearly 2% at $6.40.
In precious metal ETFs, the SPDR Gold Trust (GLD) is up 1.7% to $159.24. Market Vectors Gold Miners (GDX) is up 2.2% to $54.83. iShares Silver Trust (SLV) is up almost 4% at $29.25.
Here's where markets stand at mid-day:
-NYSE up 90.31 (+1.19%) to 7,674.97
-DJIA up 102.78 (+0.83%) to 12,495.47
-S&P 500 up 13.80 (+1.08%) to 1,294.50
-Nasdaq up 29.62 (+1.11%) to 2,706.18
GLOBAL SENTIMENT
Nikkei up 0.4%.
Hang Seng up 0.7%.
Shanghai Composite up 2.7%.
FTSE-100 up 1.7%.
MID-DAY NYSE INDEX WATCH
NYSE Energy up 1.18% at 12,868.25
NYSE Financial up 1.81% at 4,200.70
NYSE Health Care up 0.46% at 7,116.14
NYSE Arca Tech 100 up 1.09% at 1,110.79
UPSIDE MOVERS
(+) LULU, (+14%) Raises Q4 EPS Guidance TO $0.47-$0.49 VS consensus $0.42.
(+) REGN, (+13%) $24M-$25M Q4 Eylea sales top expectations.
(+) CRUS, (+13.5%) Q3 revenues $122M vs. consensus $98.5M; Q4 Forecast tops Street.
DOWNSIDE MOVERS
(-) TIF, (-11.3%) Lowers 2012 EPS guidance to $3.60-$3.65 from $3.70-$3.80..
(-) WBMD , (-26.5%) Warns 2012 profit will be "significantly lower"; Tables merger talks.
(-) LIZ, (-13.9%) CFO leaving to pursue opportunities in media industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Alcoa Inc ( AA ) -- traditionally the first of the S&P 500 companies to report its quarterly results -- are up about 1% at mid-day after the aluminum producer last night reported an $0.18 per share Q4 loss from continuing operations, largely in line with recently revised Street forecasts. Stocks are broadly higher today, with U.S. equities rising following strong advances in the European and Asian markets along with an optimistic start last night to the company earnings reporting period. There were 3.2 million job openings on the last business day of November, unchanged from the end of October, the U.S. Bureau of Labor Statistics reported today.
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Shares of Alcoa Inc ( AA ) -- traditionally the first of the S&P 500 companies to report its quarterly results -- are up about 1% at mid-day after the aluminum producer last night reported an $0.18 per share Q4 loss from continuing operations, largely in line with recently revised Street forecasts. In energy ETFs, the United States Oil Fund ( USO ) is down 1.1% to $39.50 and the United States Natural Gas fund ( UNG ) is down nearly 2% at $6.40. (+) CRUS, (+13.5%) Q3 revenues $122M vs. consensus $98.5M; Q4 Forecast tops Street.
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Shares of Alcoa Inc ( AA ) -- traditionally the first of the S&P 500 companies to report its quarterly results -- are up about 1% at mid-day after the aluminum producer last night reported an $0.18 per share Q4 loss from continuing operations, largely in line with recently revised Street forecasts. Stocks are broadly higher today, with U.S. equities rising following strong advances in the European and Asian markets along with an optimistic start last night to the company earnings reporting period. Brands ( YUM ) has hit new year highs today amid reports the company is set to expand its KFC outlets into seven more countries across Africa in 2012 and add 100 stores on the continent.
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Shares of Alcoa Inc ( AA ) -- traditionally the first of the S&P 500 companies to report its quarterly results -- are up about 1% at mid-day after the aluminum producer last night reported an $0.18 per share Q4 loss from continuing operations, largely in line with recently revised Street forecasts. Also, inventories at U.S. wholesalers rose 0.1% in November, following a revised 1.2% gain in October, the Commerce Department reported today. (+) REGN, (+13%) $24M-$25M Q4 Eylea sales top expectations.
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1690.0
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2012-01-10 00:00:00 UTC
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Stock Market News for January 10, 2012 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-january-10-2012-market-news-2012-01-10
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nan
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nan
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Markets registered small gains on Monday as investors anxiously awaited quarterly results of Alcoa, scheduled after the closing bell, which would also unofficially kick start the earnings season. Cross-Atlantic developments also contributed partially to the markets' movement, while trading volumes were on the lower side yet again.
The Dow Jones Industrial Average (DJIA) gained 0.3% to close Monday's trading session at 12,392.69. The Standard & Poor 500 (S&P 500) was up 0.2% and ended at 1,280.70. The Nasdaq Composite Index edged up 0.1% and finished trading for the day at 2,676.56. Some amount of apprehension among investors took the fear-gauge CBOE Volatility Index (VIX) up by 2.1% to 21.07. Volumes were yet again low as on the New York Stock Exchange total volumes were at 3.38 billion. Advancers managed to outnumber the decliners on the NYSE as for 62% of the stocks that gained, 35% of the stocks moved down. The balance 3% was left unchanged.
The Dow had a good trading session yesterday. Out of its 30 components, only seven stocks traded lower and one stock, The Coca-Cola Company (NYSE: KO ), closed flat. Among the decliners, Microsoft Corporation (NASDAQ: MSFT ), Walt Disney Co. (NYSE: DIS ), International Business Machines Corp. (NYSE: IBM ) and McDonald's Corp. (NYSE: MCD ) moved down 1.3%, 0.4%, 0.5% and 1.0%, respectively.
It was Alcoa, Inc. (NYSE: AA ) which led the race among the Dow components with gains of 2.9%. The markets' direction mostly depended on this company, as its results will unofficially kick start the fourth quarter earnings season. The aluminum manufacturer is considered an important economic bellwether as a large number of companies depend on Alcoa. While these results almost sets the tone for what is to arrive next through the earning session, investors would be apprehensive about the results of other bellwethers too amidst the prevailing economic uncertainty. Sadly, analysts are of the opinion that US multinational companies might suffer a drop in profits given the declining demand from international territories.
However, post the closing bell, Alcoa dampened sentiment, reporting a loss of $0.03 per share, excluding special items, for the period from October to December, 2011. Lower demand and restructuring charges seem to be the major reasons for the loss it suffered. However, revenues increased 6% and also topped the forecasts.
The markets looked to benefit from the positive sentiment that prevailed last week, the first trading week of 2012. The first week of 2012 witnessed strong US economic data, lifting the benchmarks to a green finish. Labor, housing and ISM data were all positive through the week and the Dow, S&P 500 and Nasdaq ended the week after gaining 1.2%, 1.6% and 2.7%, respectively.
Obviously, economic data provides direction to the markets and is expected to do so in the coming days. But, the earnings results will have significant impact on the benchmarks and investors will remain on their toes, observing the performance of each bellwether that reflects the economy's health. Analysts are projecting earnings per share growth of 11% for the S&P 500 companies, which, unfortunately is 16% lower than the third quarter of 2011.
Meanwhile, on the European front, French President Nicolas Sarkozy and German Chancellor Angela Merkel said that the proposed treaty, aimed at tighter fiscal measures has moved a step ahead. They expect the concerned leaders to ink the pact before the European summit on January 30. The treaty would therefore be implemented starting March.
After suffering a fall on Friday, the financial sector was in positive territory on Monday and the Financial Select Sector SPDR ( XLF ) fund scored gains of 0.5%. Among the bellwethers, Bank of America Corporation (NYSE: BAC ), Citigroup, Inc. (NYSE: C ), The Goldman Sachs Group, Inc. (NYSE: GS ) and Morgan Stanley (NYSE: MS ) gained 1.5%, 1.9%, 1.4% and 1.9%, respectively.
ALCOA INC ( AA ): Free Stock Analysis Report
BANK OF AMER CP ( BAC ): Free Stock Analysis Report
CITIGROUP INC ( C ): Free Stock Analysis Report
DISNEY WALT ( DIS ): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
COCA COLA CO (KO): Free Stock Analysis Report
MCDONALDS CORP (MCD): Free Stock Analysis Report
MORGAN STANLEY (MS): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It was Alcoa, Inc. (NYSE: AA ) which led the race among the Dow components with gains of 2.9%. ALCOA INC ( AA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report CITIGROUP INC ( C ): Free Stock Analysis Report DISNEY WALT ( DIS ): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report COCA COLA CO (KO): Free Stock Analysis Report MCDONALDS CORP (MCD): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report To read this article on Zacks.com click here. Markets registered small gains on Monday as investors anxiously awaited quarterly results of Alcoa, scheduled after the closing bell, which would also unofficially kick start the earnings season.
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ALCOA INC ( AA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report CITIGROUP INC ( C ): Free Stock Analysis Report DISNEY WALT ( DIS ): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report COCA COLA CO (KO): Free Stock Analysis Report MCDONALDS CORP (MCD): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report To read this article on Zacks.com click here. It was Alcoa, Inc. (NYSE: AA ) which led the race among the Dow components with gains of 2.9%. Among the decliners, Microsoft Corporation (NASDAQ: MSFT ), Walt Disney Co. (NYSE: DIS ), International Business Machines Corp. (NYSE: IBM ) and McDonald's Corp. (NYSE: MCD ) moved down 1.3%, 0.4%, 0.5% and 1.0%, respectively.
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ALCOA INC ( AA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report CITIGROUP INC ( C ): Free Stock Analysis Report DISNEY WALT ( DIS ): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report COCA COLA CO (KO): Free Stock Analysis Report MCDONALDS CORP (MCD): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report To read this article on Zacks.com click here. It was Alcoa, Inc. (NYSE: AA ) which led the race among the Dow components with gains of 2.9%. Markets registered small gains on Monday as investors anxiously awaited quarterly results of Alcoa, scheduled after the closing bell, which would also unofficially kick start the earnings season.
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It was Alcoa, Inc. (NYSE: AA ) which led the race among the Dow components with gains of 2.9%. ALCOA INC ( AA ): Free Stock Analysis Report BANK OF AMER CP ( BAC ): Free Stock Analysis Report CITIGROUP INC ( C ): Free Stock Analysis Report DISNEY WALT ( DIS ): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report COCA COLA CO (KO): Free Stock Analysis Report MCDONALDS CORP (MCD): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report To read this article on Zacks.com click here. Out of its 30 components, only seven stocks traded lower and one stock, The Coca-Cola Company (NYSE: KO ), closed flat.
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1691.0
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2012-01-10 00:00:00 UTC
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I'm Buying 700 Additional Shares of This Bellwether Stock
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AA
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https://www.nasdaq.com/articles/im-buying-700-additional-shares-bellwether-stock-2012-01-10
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nan
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nan
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To make money in stocks, you need to focus on companies BEFORE everyone else does. And while many think of Alcoa ( AA ) , the second investment in my $100,000 real-money portfolio, as an out-of-favor cyclical play, I see a company that is on the cusp of rotating back into favor.
Of course, nobody likes to buy a stock in the face of imminent bad news. Falling aluminum prices throughout the last quarter clearly set the stage for a tough quarterly report . Last week, I predicted that "the company will actually deliver a small loss instead of the consensus $0.08-a-share forecasted profit ." (The consensus forecast stood at $0.03 a share in earnings for the fourth quarter when I wrote that, but had fallen to a $0.02 a share loss forecast by the close of trading on Monday, Jan. 9.) [Don't miss a single move in my real-money portfolio. Go here to sign up for free updates .]
Why buy a stock that is likely to miss forecasts? Because as I also wrote last week, "the market anticipates a sorry outcome, and there's a solid chance investors will start to focus on management's expected long-term bullish outlook for supply, demand and pricing."
How did things turn out? Well, Alcoa lost just $0.03.
How did shares react? As of this writing, they are actually modestly higher in after-hours trading . That's because CEO Klaus Kleinfeld predicted that global aluminum demand would rise 7% in 2012, compared with 2011 levels. His bullishness largely stems from production plans at Boeing ( BA ) and Airbus, along with auto makers that are using an increasing amount of aluminum in vehicles to save weight. Alcoa predicts demand will exceed supply in 2012, and if that happens, then aluminum prices could well finish the year closer to $1.10 or even $1.20 a pound. Prices are currently near $0.93. (Alcoa makes money when this figure moves above $1.)
Make no mistake, Alcoa had a tough year in 2011. Slumping aluminum prices offset so many of the savings that the company has achieved the last few years. Still, Alcoa managed to generate more than $1 billion in operating cash flow (and more than $600 million in free cash flow ) in that lousy fourth quarter. Cash rose from $1.3 billion at the end of the third quarter of 2011 to $1.9 billion at the end of the fourth quarter. As I wrote last week: "Alcoa is now positioned to post respectable free cash flow in tough times, and poised to post stunningly high levels of cash flow when the global economy perks up."
Also of note, aluminum inventories shrank from $3.2 billion in the third quarter to $2.6 billion in the fourth quarter. That underscores the company's notion that a glut of aluminum is being worked off, which should have a positive future impact on pricing and profits.
In the next few days, analysts will issue updated profit forecasts for 2012.
Ignore them.
These forecasts are pegged off very depressed aluminum prices. If I read this correctly, demand will slowly rebound as China continues to swing deeper into a " net importer " position, spot prices for aluminum will rise, and so will analysts' estimates. Their view at the start of 2012 has little to do with their view later in 2012.
Action to Take --> On Thursday, Jan.11, I will be adding to my current 300-share position with another 700 shares, bring my total position to 1,000 shares.
Here's the Latest Snapshot of my $100,000 Real-Money Portfolio...
-- David Sterman
David Sterman does not hold positions in any securities mentioned in this article. StreetAuthority owns shares of AA in one or more if its "real money" portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And while many think of Alcoa ( AA ) , the second investment in my $100,000 real-money portfolio, as an out-of-favor cyclical play, I see a company that is on the cusp of rotating back into favor. StreetAuthority owns shares of AA in one or more if its "real money" portfolios. Because as I also wrote last week, "the market anticipates a sorry outcome, and there's a solid chance investors will start to focus on management's expected long-term bullish outlook for supply, demand and pricing."
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And while many think of Alcoa ( AA ) , the second investment in my $100,000 real-money portfolio, as an out-of-favor cyclical play, I see a company that is on the cusp of rotating back into favor. StreetAuthority owns shares of AA in one or more if its "real money" portfolios. As I wrote last week: "Alcoa is now positioned to post respectable free cash flow in tough times, and poised to post stunningly high levels of cash flow when the global economy perks up."
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And while many think of Alcoa ( AA ) , the second investment in my $100,000 real-money portfolio, as an out-of-favor cyclical play, I see a company that is on the cusp of rotating back into favor. StreetAuthority owns shares of AA in one or more if its "real money" portfolios. (The consensus forecast stood at $0.03 a share in earnings for the fourth quarter when I wrote that, but had fallen to a $0.02 a share loss forecast by the close of trading on Monday, Jan.
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And while many think of Alcoa ( AA ) , the second investment in my $100,000 real-money portfolio, as an out-of-favor cyclical play, I see a company that is on the cusp of rotating back into favor. StreetAuthority owns shares of AA in one or more if its "real money" portfolios. (The consensus forecast stood at $0.03 a share in earnings for the fourth quarter when I wrote that, but had fallen to a $0.02 a share loss forecast by the close of trading on Monday, Jan.
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1692.0
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2012-01-10 00:00:00 UTC
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Opening View: DJIA Ready to Rally on Alcoa Revenue, Chinese Trade Data
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AA
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https://www.nasdaq.com/articles/opening-view-djia-ready-rally-alcoa-revenue-chinese-trade-data-2012-01-10
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nan
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nan
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The major market indexes are pointed decisively higher ahead of the bell, with Wall Street applauding Alcoa's ( AA ) unofficial start to the corporate earnings season. Specifically, traders are celebrating the aluminum giant's stronger-than-expected top-line results, as well as its forecast for growing global demand. Elsewhere, solid data from China is also fueling the bulls, after Beijing saw its December trade surplus widen by more than expected last month. Against this backdrop, the Dow Jones Industrial Average (DJIA) is set to start the session with a triple-digit lead.
In earnings news, Alcoa (AA - 9.43) last night reported its first quarterly loss since early 2010, thanks to ebbing demand and lower aluminum prices. Specifically, the blue-chip bigwig unofficially kicked off earnings season by confessing to a fourth-quarter loss of $193 million, or 18 cents per share, sharply reversing its year-ago profit of $258 million, or 24 cents per share. Excluding items, AA said it lost $34 million, or 3 cents per share - a penny steeper than analysts' expectations for a per-share loss of 2 cents. Revenue, meanwhile, edged 6% higher to $5.99 billion, topping expectations for sales of $5.72 billion. For 2012, the aluminum giant predicted demand growth of 7%, marking a sequential decline from the 10% growth recorded last year. However, the firm said it still expects global aluminum demand to double by 2020. Ahead of the bell, AA is set to open 2.8% higher.
WD-40 Company (WDFC - 41.08) said its fiscal first-quarter profit fell 25% to $6.8 million, or 42 cents per share, from last year's profit of $9.1 million, or 53 cents per share. Revenue rose a slight 5% to $84.9 million. Net income was negatively affected by higher commodity prices, with gross margin contracting 2.2% to 48.7%. The results came in lower than forecast, as analysts, on average, were calling for earnings of 54 cents per share on $86 million in sales. Looking ahead, WDFC reiterated its full-year fiscal outlook for earnings of $2.28 to $2.40 per share on revenue of $353 million to $370 million. By comparison, analysts are targeting a 2012 profit of $2.35 per share on $359.4 million in sales. In pre-market trading, WDFC is bracing for a 6.8% drop.
Finally, Standard Microsystems (SMSC - 24.98) reported a third-quarter loss of $3.3 million, or 15 cents per share, up from a loss of $4.6 million, or 20 cents per share, in the year-ago period. Excluding items, earnings came in at 21 cents per share, down from 52 cents per share in the previous year. Meanwhile, revenue fell 0.8% to $106.2 million. Analysts, on average, were expecting earnings of 34 cents per share on revenue of $107.5 million. Looking ahead, SMSC is expecting an adjusted current-quarter loss of 13 cents to 21 cents per share on revenue of $89 million to $93 million. Conversely, Wall Street offered a much bolder prediction for a profit of 30 cents per share on $104.5 million in revenue. At last check, SMSC is set to open 7.9% lower.
Earnings Preview
Today's earnings docket will also feature reports from RF Monolithics ( RFMI ) and Synnex ( SNX ). Keep your browser at SchaeffersResearch.com for more news as it breaks.
Economic Calendar
The Commerce Department's wholesale trade report is due out today, along with the NFIB's small-business optimism index. The Fed's Beige Book report will hit the Street Wednesday, and traders will also be treated to speeches from central bankers Charles Evans, Dennis Lockhart, and Charles Plosser. Thursday brings us the weekly update on jobless claims, accompanied by Commerce Department reports on business inventories and December retail sales. The week wraps up with the mid-month Thomson Reuters/University of Michigan consumer sentiment index, plus the Labor Department's report on the trade deficit and import/export prices.
Market Statistics
Equity option activity on the Chicago Board Options Exchange ( CBOE ) saw 1,024,201 call contracts traded on Monday, compared to 668,941 put contracts. The resultant single-session put/call ratio arrived at 0.65, while the 21-day moving average was 0.70.
Overseas Trading
Stocks in Asia ended higher today, with Shanghai-listed equities extending their winning streak on escalating hopes for more relaxed policies out of Beijing. Meanwhile, resource-related stocks paved the path higher, thanks to a generally well-received earnings report from aluminum giant Alcoa. Plus, the General Administration of Customs said China's trade surplus widened by more than expected in December, thanks to climbing exports and softer imports. By the close, Japan's Nikkei added 0.4%, South Korea's Kospi advanced 1.5%, Hong Kong's Hang Seng tacked on 0.7%, and China's Shanghai Composite rose 2.7%.
Meanwhile, the major European benchmarks are higher at midday, with Alcoa's stronger-than-expected top-line figures bolstering global miners. In addition, luxury-goods makers are among the notable advancers, after Switzerland's Swatch Group AG unveiled solid sales for 2011. At last look, the German DAX has soared 2.5%, the French CAC 40 has climbed 2.4%, and London's FTSE has added 1.2%.
Currencies and Commodities
The greenback has continued its retreat this morning, with the U.S. dollar index down about 0.2%. As a result, dollar-denominated crude futures are on the rebound, with the front-month contract last seen 1.4% higher at $102.70 per barrel. Likewise, gold futures are also in the black, with the malleable metal up 1.5% at $1,632.80 an ounce.
Unusual Put and Call Activity:
For an explanation of how to use this information, check out our Education Center topics on Option Volume and Open Interest Configurations .
Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up here for free daily delivery, straight to your inbox, before the opening bell.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The major market indexes are pointed decisively higher ahead of the bell, with Wall Street applauding Alcoa's ( AA ) unofficial start to the corporate earnings season. In earnings news, Alcoa (AA - 9.43) last night reported its first quarterly loss since early 2010, thanks to ebbing demand and lower aluminum prices. Excluding items, AA said it lost $34 million, or 3 cents per share - a penny steeper than analysts' expectations for a per-share loss of 2 cents.
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The major market indexes are pointed decisively higher ahead of the bell, with Wall Street applauding Alcoa's ( AA ) unofficial start to the corporate earnings season. In earnings news, Alcoa (AA - 9.43) last night reported its first quarterly loss since early 2010, thanks to ebbing demand and lower aluminum prices. Excluding items, AA said it lost $34 million, or 3 cents per share - a penny steeper than analysts' expectations for a per-share loss of 2 cents.
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The major market indexes are pointed decisively higher ahead of the bell, with Wall Street applauding Alcoa's ( AA ) unofficial start to the corporate earnings season. In earnings news, Alcoa (AA - 9.43) last night reported its first quarterly loss since early 2010, thanks to ebbing demand and lower aluminum prices. Excluding items, AA said it lost $34 million, or 3 cents per share - a penny steeper than analysts' expectations for a per-share loss of 2 cents.
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In earnings news, Alcoa (AA - 9.43) last night reported its first quarterly loss since early 2010, thanks to ebbing demand and lower aluminum prices. The major market indexes are pointed decisively higher ahead of the bell, with Wall Street applauding Alcoa's ( AA ) unofficial start to the corporate earnings season. Excluding items, AA said it lost $34 million, or 3 cents per share - a penny steeper than analysts' expectations for a per-share loss of 2 cents.
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1693.0
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2012-01-10 00:00:00 UTC
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Alcoa Posts $191 Million Q4 Loss on Charges; Adjusted Loss Matches View (AA)
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AA
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https://www.nasdaq.com/articles/alcoa-posts-191-million-q4-loss-charges-adjusted-loss-matches-view-aa-2012-01-10
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nan
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nan
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Aluminum producer Alcoa Inc. ( AA ) late Monday posted a massive fourth quarter net loss, but its adjusted results matched expectations and the company provided a somewhat upbeat 2012 aluminum demand forecast.
The Pittsburgh-based company reported a fourth quarter net loss of $191 million, or -18 cents per share, compared with a net profit of $258 million, or 24 cents per share, in the year-ago period. Excluding one-time charges, its adjusted loss was 3 cents per share.
Revenue rose 6% from last year to $6 billion.
On average, Wall Street analysts expected a matching adjusted loss of -3 cents per share, on lower revenue of $5.7 billion.
Looking ahead, the company said it expects aluminum demand to pick up by 7% in 2012.
Alcoa shares rose 20 cents, or +2.2%, in premarket trading Tuesday.
The Bottom Line
Shares of Alcoa ( AA ) have a 1.27% dividend yield, based on last night's closing stock price of $9.43. The stock has technical support in the $8.50 price area. If the shares can firm up, we see overhead resistance around the $11 price level.
Alcoa Inc. ( AA ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Bottom Line Shares of Alcoa ( AA ) have a 1.27% dividend yield, based on last night's closing stock price of $9.43. Aluminum producer Alcoa Inc. ( AA ) late Monday posted a massive fourth quarter net loss, but its adjusted results matched expectations and the company provided a somewhat upbeat 2012 aluminum demand forecast. Alcoa Inc. ( AA ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.
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Aluminum producer Alcoa Inc. ( AA ) late Monday posted a massive fourth quarter net loss, but its adjusted results matched expectations and the company provided a somewhat upbeat 2012 aluminum demand forecast. The Bottom Line Shares of Alcoa ( AA ) have a 1.27% dividend yield, based on last night's closing stock price of $9.43. Alcoa Inc. ( AA ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.
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Aluminum producer Alcoa Inc. ( AA ) late Monday posted a massive fourth quarter net loss, but its adjusted results matched expectations and the company provided a somewhat upbeat 2012 aluminum demand forecast. The Bottom Line Shares of Alcoa ( AA ) have a 1.27% dividend yield, based on last night's closing stock price of $9.43. Alcoa Inc. ( AA ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.
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Aluminum producer Alcoa Inc. ( AA ) late Monday posted a massive fourth quarter net loss, but its adjusted results matched expectations and the company provided a somewhat upbeat 2012 aluminum demand forecast. The Bottom Line Shares of Alcoa ( AA ) have a 1.27% dividend yield, based on last night's closing stock price of $9.43. Alcoa Inc. ( AA ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.
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1694.0
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2012-01-10 00:00:00 UTC
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Closing Update: Renewed Optimism Carries Stocks to Fresh Gains; Most Sectors Higher
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AA
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https://www.nasdaq.com/articles/closing-update-renewed-optimism-carries-stocks-fresh-gains-most-sectors-higher-2012-01-10
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nan
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nan
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Stocks closed broadly higher today, with U.S. equities rising following strong advances in the European and Asian markets. Several mid-tier economic reports released today also helped contribute to the optimistic tone along with carry-over momentum from the first earnings report of the season last night.
Shares of Alcoa Inc ( AA ) -- traditionally the first of the S&P 500 companies to report its quarterly results -- were up despite posting its first quarterly loss since 2009. The company lost 3 cents a share in the quarter, in line with analysts' estimates. But revenues of $5.99 billion beat Street expectations and Alcoa also gave a positive outlook on global demand over the rest of the year for aluminum.
In economic indicators released today, small-business optimism rose in December for the fourth consecutive month, according to the National Federation of Independent Business in its monthly survey. Optimism rose 1.8 points, settling at 93.8 last month and representing a 5.7-point gain since September. Despite the extended advance, the industry group cautioned that the total reading remains in recession territory.
Also, inventories at U.S. wholesalers rose 0.1% in November, following a revised 1.2% gain in October, the Commerce Department reported today. Economists had projected a 0.5% rise, according to the median estimate in a Bloomberg News survey. Sales climbed 0.6% in November, the agency said.
There were 3.2 million job openings on the last business day of November, unchanged from the end of October, the U.S. Bureau of Labor Statistics reported today. The hires rate was 3.2% and the separations rate was 3.0%, also little changed over the month although the job openings rate has trended upward since the end of the recession in June 2009.
In company news:
Tiffany & Co. ( TIF ) was down by double digits today after cutting its full-year profit outlook after holiday season sales of fine jewelry slowed "markedly" in the U.S. and Europe. Adjusted profit for the 12 months ended Jan. 31 likely will now be in a range between $3.60 to $3.65 per share, down from a previous guidance looking for as much as $3.80 a share.
DSW ( DSW ) was extending its rally near the close today after raising its 2011 EPS view to a range of $2.96 to $2.99 per share, up from a previous range of $2.90 to $2.95 per share and ahead of the analyst consensus of $2.94 per share.
Yum! Brands ( YUM ) also was gaining today amid reports the company is set to add as many as 100 new KFC outlets on the African continent this year. Pizza Hut, another Yum brand, expects to enter South Africa this year or next, according to MarketWatch.
Commodities were higher. February gold contracts and crude oil contracts advanced. Futures of frozen orange juice concentrate soared earlier today after small amounts of fungicide were found in the beverage.
Here's where markets stand at the close:
-DJIA up 69.78 (+0.56%) to 12,462.47
-S&P up 11.38 (+0.89%) to 1,292.08
-Nasdaq up 25.94 (+0.97%) to 2,702.50
GLOBAL SENTIMENT
Nikkei up 0.4%.
Hang Seng up 0.7%.
Shanghai Composite up 2.7%.
FTSE-100 up 1.5%.
UPSIDE MOVERS
(+) LULU, Raises Q4 EPS Guidance TO $0.47-$0.49 VS consensus $0.42.
(+) BWA, Expects 2012 earnings of $5.35 to $5.65 per share, above Street.
(+) FRAN, Holiday Comps rise 14%, net sales up 53%; boosts Q4 EPS.
DOWNSIDE MOVERS
(-) HMA, General counsel resigns.
(-) WBMD, Warns 2012 profit will be "significantly lower"; Tables merger talks.
(-) PHH, Slates $150M convertible note offering, explores liquidity plan.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Alcoa Inc ( AA ) -- traditionally the first of the S&P 500 companies to report its quarterly results -- were up despite posting its first quarterly loss since 2009. There were 3.2 million job openings on the last business day of November, unchanged from the end of October, the U.S. Bureau of Labor Statistics reported today. In company news: Tiffany & Co. ( TIF ) was down by double digits today after cutting its full-year profit outlook after holiday season sales of fine jewelry slowed "markedly" in the U.S. and Europe.
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Shares of Alcoa Inc ( AA ) -- traditionally the first of the S&P 500 companies to report its quarterly results -- were up despite posting its first quarterly loss since 2009. Several mid-tier economic reports released today also helped contribute to the optimistic tone along with carry-over momentum from the first earnings report of the season last night. In company news: Tiffany & Co. ( TIF ) was down by double digits today after cutting its full-year profit outlook after holiday season sales of fine jewelry slowed "markedly" in the U.S. and Europe.
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Shares of Alcoa Inc ( AA ) -- traditionally the first of the S&P 500 companies to report its quarterly results -- were up despite posting its first quarterly loss since 2009. Adjusted profit for the 12 months ended Jan. 31 likely will now be in a range between $3.60 to $3.65 per share, down from a previous guidance looking for as much as $3.80 a share. DSW ( DSW ) was extending its rally near the close today after raising its 2011 EPS view to a range of $2.96 to $2.99 per share, up from a previous range of $2.90 to $2.95 per share and ahead of the analyst consensus of $2.94 per share.
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Shares of Alcoa Inc ( AA ) -- traditionally the first of the S&P 500 companies to report its quarterly results -- were up despite posting its first quarterly loss since 2009. Stocks closed broadly higher today, with U.S. equities rising following strong advances in the European and Asian markets. The company lost 3 cents a share in the quarter, in line with analysts' estimates.
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1695.0
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2012-01-10 00:00:00 UTC
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Ahead of Wall Street - January 10, 2012 - Ahead of Wall Street
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https://www.nasdaq.com/articles/ahead-wall-street-january-10-2012-ahead-wall-street-2012-01-10
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nan
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nan
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Tuesday, January 10, 2012
With nothing major on theeconomic calendarand the earnings season still some days off despite Alcoa's ( AA ) report after the close on Monday, stocks will likely sustain the soft upward bias of the last few trading sessions. Alcoa's results had a reassuring aspect in that they were less bad relative to their guidance some time back. The relatively less dire demand outlook for Aluminum will likely rub off on other commodity producers in today's trading session.
Beyond the U.S. shores, we have Chinese international trade data for December showing a softening domestic demand environment, improving the odds of further monetary easing measures. The December exports numbers came inline with expectations, while imports came in weaker than expected. The full-year 2011 trade surplus figure was the lowest in the last seven years. When viewed in combination with the rebound in December PMI, it appears that the economy is stabilizing and will likely get a soft landing.
Among corporate pre-announcements, Juniper Networks ( JNPR ) and Liz Claiborne ( LIZ ) lowered guidance, while Cirrus Logic ( CRUS ) raised its outlook for the quarter. Emulex ( EMLX ) also raised guidance citing its ability to get back to full capacity after being affected by the Thai floods.
Sheraz Mian
Director of Reserach
CIRRUS LOGIC ( CRUS ): Free Stock Analysis Report
JUNIPER NETWRKS ( JNPR ): Free Stock Analysis Report
LIZ CLAIBORNE ( LIZ ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tuesday, January 10, 2012 With nothing major on theeconomic calendarand the earnings season still some days off despite Alcoa's ( AA ) report after the close on Monday, stocks will likely sustain the soft upward bias of the last few trading sessions. Beyond the U.S. shores, we have Chinese international trade data for December showing a softening domestic demand environment, improving the odds of further monetary easing measures. Emulex ( EMLX ) also raised guidance citing its ability to get back to full capacity after being affected by the Thai floods.
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Tuesday, January 10, 2012 With nothing major on theeconomic calendarand the earnings season still some days off despite Alcoa's ( AA ) report after the close on Monday, stocks will likely sustain the soft upward bias of the last few trading sessions. Among corporate pre-announcements, Juniper Networks ( JNPR ) and Liz Claiborne ( LIZ ) lowered guidance, while Cirrus Logic ( CRUS ) raised its outlook for the quarter. Sheraz Mian Director of Reserach CIRRUS LOGIC ( CRUS ): Free Stock Analysis Report JUNIPER NETWRKS ( JNPR ): Free Stock Analysis Report LIZ CLAIBORNE ( LIZ ): Free Stock Analysis Report To read this article on Zacks.com click here.
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Tuesday, January 10, 2012 With nothing major on theeconomic calendarand the earnings season still some days off despite Alcoa's ( AA ) report after the close on Monday, stocks will likely sustain the soft upward bias of the last few trading sessions. Sheraz Mian Director of Reserach CIRRUS LOGIC ( CRUS ): Free Stock Analysis Report JUNIPER NETWRKS ( JNPR ): Free Stock Analysis Report LIZ CLAIBORNE ( LIZ ): Free Stock Analysis Report To read this article on Zacks.com click here. Click to get this free report The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tuesday, January 10, 2012 With nothing major on theeconomic calendarand the earnings season still some days off despite Alcoa's ( AA ) report after the close on Monday, stocks will likely sustain the soft upward bias of the last few trading sessions. Sheraz Mian Director of Reserach CIRRUS LOGIC ( CRUS ): Free Stock Analysis Report JUNIPER NETWRKS ( JNPR ): Free Stock Analysis Report LIZ CLAIBORNE ( LIZ ): Free Stock Analysis Report To read this article on Zacks.com click here. Today, you can download 7 Best Stocks for the Next 30 Days.
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1696.0
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2012-01-10 00:00:00 UTC
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Alcoa Disappoints, Outlook Bright - Analyst Blog
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AA
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https://www.nasdaq.com/articles/alcoa-disappoints-outlook-bright-analyst-blog-2012-01-10
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nan
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nan
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Alcoa Inc. ( AA ), the largest U.S. aluminum producer, reported loss in its fourth-quarter 2011 results. Alcoa posted a loss from continuing operations of $193 million, or 18 cents per share compared with a profit of $172 million, or 15 cents per share in the same quarter of 2010.
Excluding restructuring charge of $159 million and other items, Alcoa's loss came in at 3 cents per share, below the Zacks Consensus estimate profit of 1 cent. It is the company's first loss in the last nine quarters.
For the full-year 2011, Alcoa reported income from continuing operations of $614 million, or $0.55 per share, which is more than double of 2010 results. The disappointing results were driven by higher costs of energy and transportation.
Though revenues for the quarter rose 6% year over year to $6 billion, business was down in most areas including construction, industrial products, packaging and commercial transportation. Besides, sales to automobile manufacturers fell 2%.
For 2011, revenue rose to $25 billion from $21 billion in the fiscal year 2010.
Segment Details
Alumina - The shipments in the reported quarter were 2.4 million metric tons on production of 4.2 million metric tons. The After Tax Operating Income (ATOI) increased 92% year over year to $125 million. Adjusted EBITDA fell $82 million to $229 million, representing a sequential decrease of 26%. The fourth-quarter results were negatively impacted by lower pricing. Increased raw materials costs were offset by improved productivity, lower energy costs, and positive currency impact. The sale of land in Australia contributed $30 million to segment ATOI. Alumina production in the fourth quarter was a record 4.18 million metric tons.
Aluminum demand grew 10% in 2011 on top of 13% growth seen in 2010.
Primary Metals - Shipments in the fourth quarter of 2011 amounted to 0.8 million metric tons versus 0.7 million metric tons in the previous-year quarter. ATOI was a negative $32 million, a decrease of $210 million year over year. Adjusted EBITDA fell $201 million to $71 million. Third-party realized metal prices decreased 12% sequentially driven by declining London Metal Exchange (LME) cash prices. Lower LME and cost increases offset positive currency impacts and productivity gains compared with the third quarter of 2011.
Flat-Rolled Products - Shipments in the quarter were 0.4 million metric tons, almost flat versus the prior-year quarter. Third-party revenue in the fourth quarter was $1.7 billion, up 4% year over year. ATOI was $26 million, down 51% year over year and down 57% sequentially. The sequential decrease was driven by seasonal volume declines in North America and Russia with continued weakness in the European market. Performance was also unfavorably impacted by credit losses for several customers.
Engineered Products and Solutions - Shipments in the quarter were 0.53 million metric tons versus 0.50 million metric tons in the prior-year quarter. ATOI in the fourth quarter was $122 million, up 8% year over year, but down 12% sequentially, mainly driven by cost increases and unfavorable product mix, partially offset by productivity improvements.
Financial Position
Despite deteriorating prices and market conditions in the fourth quarter of 2011, Alcoa turned in an outstanding performance overpowering the company's financial targets. Alcoa generated $656 million in free cash flow in the quarter, four times better than the sequential quarter, while cash from operations was $1.14 billion.
Alcoa improved liquidity in fourth-quarter 2011, with cash on hand rising 46% sequentially to $1.9 billion. The company ended the fourth quarter with days working capital dropping to 27, which is a record low and 3 days lower than 2010.
For 2011, capital expenditure was $1.3 billion (86% of the target). Alcoa invested $249 million in its joint venture in Saudi Arabia (62% of the target). The Saudi project continues on-time and on-budget, with first production in the smelter and rolling mill scheduled for 2013.
Alcoa finished 2011 with a debt-to-capital ratio of 35%, consistent with the targeted range of 30% to 35%. Debt-to-capital was negatively impacted by the annual measurement of the company's pension plan liability driven by a significantly lower discount rate.
Further, Alcoa generated $906 million in free cash flow for the year and $2.2 billion in cash from operations while ending the year with $1.9 billion cash on hand.
Alcoa To Close Smelting Capacity
Alcoa plans to close or curtail 531,000 metric tons, or 12% of its system smelting capacity to improve its competitive position.
Curtailments at Alcoa's smelters in Portovesme, Italy, and La Coruña and Avilés, Spain, represent 240,000 metric tons, or 5% of Alcoa's global capacity. The previously announced closing of Alcoa's smelter in Alcoa, Tennessee, and two lines at the company's Rockdale, Texas, smelter, account for another 291,000 metric tons of capacity reduction.
In addition to the closures and curtailments, Alcoa will aggressively accelerate actions to reduce the cost of raw materials used by its Primary Products business. Further, the company will adjust the capacity across its global refining system to reflect internal demand as well as prevailing market conditions.
Outlook
For 2012, Alcoa expects global aluminum demand to grow 7% due to the global deficit in primary aluminum supply.
Alcoa's growth projection is ahead of the 6.5% rate, which is required to meet its forecast of doubling the global aluminum demand between 2010 and 2020.
In addition, Alcoa believes that growing demand for aluminum, combined with market-related production cutbacks, will result in a global aluminum industry deficit of 600,000 metric tons in 2012.
Further, Alcoa projects global growth in the aerospace (10-11%), automotive (3-8%), commercial transportation (2-5%), packaging (2-3%), and building and construction (4-5%) markets.
Our Take
Pennsylvania based Alcoa Inc. is among the world's leading producers of primary and fabricated aluminum and alumina. It involves the technology of mining, refining, smelting, fabricating and recycling of aluminum. We believe that Alcoa's cost reduction efforts are, to some extent, offsetting the negative impact of higher energy and raw material costs on profitability.
The company is divesting underperforming assets through its restructuring program. The annual global consumption of aluminum products, both upstream and downstream, is expected to double by 2020. This consumption boom will be driven primarily by growth in China, India, Russia and Brazil, whose demographics are accelerating development.
Zacks Recommendation
Currently, Alcoa has a short-term (1 to 3 months) Zacks #4 Sell rating and a long-term (6 months) Underperform recommendation.
Competitors
Alcoa faces stiff competition from Aluminum Corporation Of China Limited ( ACH ), Rio Tinto plc. ( RIO ) and BHP Billiton Ltd . ( BHP ).
ALCOA INC ( AA ): Free Stock Analysis Report
ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report
BHP BILLITN LTD ( BHP ): Free Stock Analysis Report
RIO TINTO-ADR ( RIO ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ), the largest U.S. aluminum producer, reported loss in its fourth-quarter 2011 results. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. Debt-to-capital was negatively impacted by the annual measurement of the company's pension plan liability driven by a significantly lower discount rate.
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ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa Inc. ( AA ), the largest U.S. aluminum producer, reported loss in its fourth-quarter 2011 results. Increased raw materials costs were offset by improved productivity, lower energy costs, and positive currency impact.
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Alcoa Inc. ( AA ), the largest U.S. aluminum producer, reported loss in its fourth-quarter 2011 results. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. Primary Metals - Shipments in the fourth quarter of 2011 amounted to 0.8 million metric tons versus 0.7 million metric tons in the previous-year quarter.
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Alcoa Inc. ( AA ), the largest U.S. aluminum producer, reported loss in its fourth-quarter 2011 results. ALCOA INC ( AA ): Free Stock Analysis Report ALUMINUM CP-ADR ( ACH ): Free Stock Analysis Report BHP BILLITN LTD ( BHP ): Free Stock Analysis Report RIO TINTO-ADR ( RIO ): Free Stock Analysis Report To read this article on Zacks.com click here. It is the company's first loss in the last nine quarters.
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1697.0
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2012-01-09 00:00:00 UTC
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Company News for January 9, 2012 - Corporate Summary
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AA
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https://www.nasdaq.com/articles/company-news-for-january-9-2012-corporate-summary-2012-01-09
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nan
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nan
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• After RF Micro Devices Inc. (NASDAQ: RFMD ) suggested that its fiscal third quarter revenues might fail to meet analyst' estimates, its shares declined 19.5% on Friday
• Following Transocean Ltd.'s (NYSE: RIG ) announcement that its chief financial officer Ricardo Rosa will be stepping down, shares of the company slipped 1.1%
• Shares of Alcoa, Inc. (NYSE: AA ) dropped 2.1% after the company announced plans to shut down or reduce 12% of its global smelting capacity
• ViroPharma Inc. (NASDAQ: VPHM ) announced that its is expecting $600 million - $660 million worth net product sales in 2012
• Best Buy Co. Inc. (NYSE: BBY ) said during the five weeks-period ending December 31, 2011, its same-store sales dropped 1.2%
ALCOA INC ( AA ): Free Stock Analysis Report
BEST BUY ( BBY ): Free Stock Analysis Report
RF MICRO DEVICE ( RFMD ): Free Stock Analysis Report
TRANSOCEAN LTD ( RIG ): Free Stock Analysis Report
VIROPHARMA ( VPHM ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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• After RF Micro Devices Inc. (NASDAQ: RFMD ) suggested that its fiscal third quarter revenues might fail to meet analyst' estimates, its shares declined 19.5% on Friday • Following Transocean Ltd.'s (NYSE: RIG ) announcement that its chief financial officer Ricardo Rosa will be stepping down, shares of the company slipped 1.1% • Shares of Alcoa, Inc. (NYSE: AA ) dropped 2.1% after the company announced plans to shut down or reduce 12% of its global smelting capacity • ViroPharma Inc. (NASDAQ: VPHM ) announced that its is expecting $600 million - $660 million worth net product sales in 2012 • Best Buy Co. Inc. (NYSE: BBY ) said during the five weeks-period ending December 31, 2011, its same-store sales dropped 1.2% ALCOA INC ( AA ): Free Stock Analysis Report BEST BUY ( BBY ): Free Stock Analysis Report RF MICRO DEVICE ( RFMD ): Free Stock Analysis Report TRANSOCEAN LTD ( RIG ): Free Stock Analysis Report VIROPHARMA ( VPHM ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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• After RF Micro Devices Inc. (NASDAQ: RFMD ) suggested that its fiscal third quarter revenues might fail to meet analyst' estimates, its shares declined 19.5% on Friday • Following Transocean Ltd.'s (NYSE: RIG ) announcement that its chief financial officer Ricardo Rosa will be stepping down, shares of the company slipped 1.1% • Shares of Alcoa, Inc. (NYSE: AA ) dropped 2.1% after the company announced plans to shut down or reduce 12% of its global smelting capacity • ViroPharma Inc. (NASDAQ: VPHM ) announced that its is expecting $600 million - $660 million worth net product sales in 2012 • Best Buy Co. Inc. (NYSE: BBY ) said during the five weeks-period ending December 31, 2011, its same-store sales dropped 1.2% ALCOA INC ( AA ): Free Stock Analysis Report BEST BUY ( BBY ): Free Stock Analysis Report RF MICRO DEVICE ( RFMD ): Free Stock Analysis Report TRANSOCEAN LTD ( RIG ): Free Stock Analysis Report VIROPHARMA ( VPHM ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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• After RF Micro Devices Inc. (NASDAQ: RFMD ) suggested that its fiscal third quarter revenues might fail to meet analyst' estimates, its shares declined 19.5% on Friday • Following Transocean Ltd.'s (NYSE: RIG ) announcement that its chief financial officer Ricardo Rosa will be stepping down, shares of the company slipped 1.1% • Shares of Alcoa, Inc. (NYSE: AA ) dropped 2.1% after the company announced plans to shut down or reduce 12% of its global smelting capacity • ViroPharma Inc. (NASDAQ: VPHM ) announced that its is expecting $600 million - $660 million worth net product sales in 2012 • Best Buy Co. Inc. (NYSE: BBY ) said during the five weeks-period ending December 31, 2011, its same-store sales dropped 1.2% ALCOA INC ( AA ): Free Stock Analysis Report BEST BUY ( BBY ): Free Stock Analysis Report RF MICRO DEVICE ( RFMD ): Free Stock Analysis Report TRANSOCEAN LTD ( RIG ): Free Stock Analysis Report VIROPHARMA ( VPHM ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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• After RF Micro Devices Inc. (NASDAQ: RFMD ) suggested that its fiscal third quarter revenues might fail to meet analyst' estimates, its shares declined 19.5% on Friday • Following Transocean Ltd.'s (NYSE: RIG ) announcement that its chief financial officer Ricardo Rosa will be stepping down, shares of the company slipped 1.1% • Shares of Alcoa, Inc. (NYSE: AA ) dropped 2.1% after the company announced plans to shut down or reduce 12% of its global smelting capacity • ViroPharma Inc. (NASDAQ: VPHM ) announced that its is expecting $600 million - $660 million worth net product sales in 2012 • Best Buy Co. Inc. (NYSE: BBY ) said during the five weeks-period ending December 31, 2011, its same-store sales dropped 1.2% ALCOA INC ( AA ): Free Stock Analysis Report BEST BUY ( BBY ): Free Stock Analysis Report RF MICRO DEVICE ( RFMD ): Free Stock Analysis Report TRANSOCEAN LTD ( RIG ): Free Stock Analysis Report VIROPHARMA ( VPHM ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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1698.0
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2012-01-09 00:00:00 UTC
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Easy Kickoff to Earnings Season - Earnings Preview
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AA
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https://www.nasdaq.com/articles/easy-kickoff-earnings-season-earnings-preview-2012-01-09
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nan
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nan
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Earnings Preview 1/6/12
There will only be a handful of firms reporting this week, even though it is considered the kickoff of the earnings season when Alcoa reports. A total of just 27 firms are scheduled to report, including 4 of the S&P 500. While few in number, some of the reports come from firms that are highly significant in that they will give clues to the overall direction of earnings in the fourth quarter.
The firms reporting next week include: Alcoa ( AA ), J.P. Morgan ( JPM ), Lennar ( LEN ) and Supervalu ( SVU ).
It will also be a fairly light week for economic data, particularly early in the week. We get Consumer Credit on Monday and the Fed releases its Beige Book on Wednesday. Thursday brings the Initial Jobless Claims data as well as Retail Sales. We learn about the Budget Deficit on Thursday and the Trade Deficit on Friday.
Monday
Consumer Credit, not including real estate backed loans like mortgages is expected to have risen by $7.0 billion in November, down slightly from the $7.6 billion rise in October. Since the onset of the Great Recession growth of consumer credit has been very low, but is starting to show signs of picking up again.
Tuesday
Nothing of significance as far as data is concerned. All eyes will turn towards the Granite State as New Hampshire holds the first primary of the election season.
Wednesday
The Fed releases its January Beige Book, a compilation of mostly anecdotal evidence on the state of the economy from the twelve Fed districts. It will probably indicate slow but steady expansion in the economy and very little in the way of inflation pressure.
Thursday
Weekly Initial Claims for Unemployment Insurance have been plunging. Last week they dropped by 15,000 to 372,000. That is comfortably below the key 400,000 level (that they were above two weeks ago). The consensus is looking for them to bounce back to 385,000 this week. A rebound after such a big drop is reasonable to expect as this does not tend to move in a straight line. Even that big a rebound would not be terrible news, as it would indicate that the last two weeks of declines were not a fluke. The 400,000 level is important in that it has historically been the inflection point, below which we tend to create enough jobs to bring down the unemployment rate. The week-to-week numbers can be very volatile, so the four-week average is the thing to focus on (372,250 last week). Keep an eye on the prior week's revision as well as the change from the revised number.
Continuing Jobless Claims have been in a downtrend of late, but the road down has been bumpy. Last week they fell by 22,000 to 3.595 million. That is down 532,000, or 12.9% from a year ago. The consensus is looking for a further decline to 3.588 million. Some (most?) of the longer-term decline is due to people simply exhausting their regular state benefits which run out after 26 weeks. Those, however, don't last forever either. Federally paid extended claims rose by 5,000 to 3.503 million last week but are down 1.033 million, or 22.8% over the last year. Looking at just the regular continuing claims numbers is a serious mistake. They only include a little over half of the unemployed now, given the unprecedentedly high duration of unemployment figures. A better measure is the total number of people getting unemployment benefits -- currently at 7.223 million. The total number of people getting benefits is now 1.565 million below year-ago levels. What is not known is how many people have left the extended claims via the road to prosperity -- finding a new job -- and how many have left on the road to poverty, having simply exhausted even the extended benefits. Unless the program is renewed, all extended benefits will end in January. Make sure to look at both sets of numbers! Many of the press reports will not, but we will here at Zacks.
Retail Sales are expected to rise by 0.4% in December, up from a 0.2% rise in November. If Auto sales are stripped out the rise is also expected to be 0.4% up from 0.2%. This data is adjusted for seasonal variations like the number of shopping days, but not for price changes. Thus if the rise is due to increased sales at gas stations it is not really good news.
The Budget Deficit for December will be announced. The deficit is highly seasonal but the data is not seasonally adjusted, so it is best to look at it relative to the year-ago level. The month-to-month change can be highly misleading. So far in fiscal 2012 (started in October) the budget deficit is down 18.9% from the first two months of fiscal 2011. Given the absolute hysteria about the budget deficit earlier in the year, one might have expected that news to have been mentioned somewhere. Last December, the Federal Government spilled $78.1 billion of red ink. I suspect the number this year will be closer to $70 billion.
Friday
The Trade Deficit is expected to rise to $44.3 billion in November from $43.5 billion in October. In general, the country has been doing a good job of increasing its exports, but imports also continue to rise. Over half of our trade deficit is due to our addiction to imported oil. The Trade deficit is what is responsible for our being in debt to the rest of the world, not the budget deficit. An increasing trade deficit directly lowers economic growth. As such I consider the trade deficit to be a much more important economic problem than the budget deficit is.
The University of Michigan Consumer Sentiment index for January is expected to rise to 71.0 from 69.9. That is up off the lows of the summer, but still very depressed by any historical standard. Personally I think this is one of the most over rated economic statistics around, since what consumers say in the survey is often very different that what they actually do. Still, better seeing it go up than down.
Potential Positive or Negative Surprises
The best indicators of firms likely to report positive surprises are a recent history of positive surprises and rising estimates going into the report. The Zacks Rank is also a good indicator of potential surprises. Similarly, a recent history of earnings disappointments, cuts in the average estimate for the quarter in the month before the report is due and a poor Zacks Rank (#4 or #5) are often red flags pointing to a potential disappointing earnings report.
In the Earnings Calendar below, $999.00 should be read as N.A. Given the very small number of firms reporting next week, there are few good candidates to make good predictions of potential positive or negative surprises and thus I omit this section this week.
ALCOA INC ( AA ): Free Stock Analysis Report
JPMORGAN CHASE ( JPM ): Free Stock Analysis Report
LENNAR CORP -A ( LEN ): Free Stock Analysis Report
SUPERVALU INC ( SVU ): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The firms reporting next week include: Alcoa ( AA ), J.P. Morgan ( JPM ), Lennar ( LEN ) and Supervalu ( SVU ). ALCOA INC ( AA ): Free Stock Analysis Report JPMORGAN CHASE ( JPM ): Free Stock Analysis Report LENNAR CORP -A ( LEN ): Free Stock Analysis Report SUPERVALU INC ( SVU ): Free Stock Analysis Report To read this article on Zacks.com click here. While few in number, some of the reports come from firms that are highly significant in that they will give clues to the overall direction of earnings in the fourth quarter.
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The firms reporting next week include: Alcoa ( AA ), J.P. Morgan ( JPM ), Lennar ( LEN ) and Supervalu ( SVU ). ALCOA INC ( AA ): Free Stock Analysis Report JPMORGAN CHASE ( JPM ): Free Stock Analysis Report LENNAR CORP -A ( LEN ): Free Stock Analysis Report SUPERVALU INC ( SVU ): Free Stock Analysis Report To read this article on Zacks.com click here. Potential Positive or Negative Surprises The best indicators of firms likely to report positive surprises are a recent history of positive surprises and rising estimates going into the report.
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ALCOA INC ( AA ): Free Stock Analysis Report JPMORGAN CHASE ( JPM ): Free Stock Analysis Report LENNAR CORP -A ( LEN ): Free Stock Analysis Report SUPERVALU INC ( SVU ): Free Stock Analysis Report To read this article on Zacks.com click here. The firms reporting next week include: Alcoa ( AA ), J.P. Morgan ( JPM ), Lennar ( LEN ) and Supervalu ( SVU ). Earnings Preview 1/6/12 There will only be a handful of firms reporting this week, even though it is considered the kickoff of the earnings season when Alcoa reports.
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The firms reporting next week include: Alcoa ( AA ), J.P. Morgan ( JPM ), Lennar ( LEN ) and Supervalu ( SVU ). ALCOA INC ( AA ): Free Stock Analysis Report JPMORGAN CHASE ( JPM ): Free Stock Analysis Report LENNAR CORP -A ( LEN ): Free Stock Analysis Report SUPERVALU INC ( SVU ): Free Stock Analysis Report To read this article on Zacks.com click here. Earnings Preview 1/6/12 There will only be a handful of firms reporting this week, even though it is considered the kickoff of the earnings season when Alcoa reports.
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1699.0
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2012-01-09 00:00:00 UTC
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Do Alcoa's Earnings Even Matter? - Real Time Insight
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AA
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https://www.nasdaq.com/articles/do-alcoas-earnings-even-matter-real-time-insight-2012-01-09
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nan
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nan
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Alcoa ( AA ) reports fourth quarter earnings after the bell to "kick off" earnings season. Some S&P 500 companies have already reported but Alcoa is the first Dow component to report so it gets the designation of being the "official" kick-off.
The financial media pays a lot of attention to Alcoa on this day four times a year.
But should it?
The argument for paying attention to the "first" to report is that it can set a tone for earnings season. The argument goes, that Alcoa's report somehow foreshadows what the rest of earnings season might look like. So if it's a solid report with an upbeat outlook, then that's a good indicator for the rest of the earnings season.
But Alcoa's estimates have been falling for the fourth quarter. 8 estimates have been revised lower pushing the Zacks Consensus down to just 1 cent from 21 cents three months ago. The full year Zacks Consensus has also been falling.
The aluminum business is a tough one. Aluminum prices have fallen 25% since last year.
Alcoa's stock performance since the Great Recession has also not been a leading indicator of the Dow overall. Shares have significantly underperformed the average.
Alcoa has been in business for 120 years and is one of the largest aluminum miners in the world. It has been a Dow Industrial component since at least 1959. But we are now in an era when Apple has become one of the most valuable companies in the world. Tech giants Microsoft, Intel and Cisco are now also Dow components.
Is it time to replace Alcoa as the official kick-off of the earnings season with a company that is more relevant to investors?
ALCOA INC ( AA ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa ( AA ) reports fourth quarter earnings after the bell to "kick off" earnings season. ALCOA INC ( AA ): Free Stock Analysis Report To read this article on Zacks.com click here. The financial media pays a lot of attention to Alcoa on this day four times a year.
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Alcoa ( AA ) reports fourth quarter earnings after the bell to "kick off" earnings season. ALCOA INC ( AA ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa ( AA ) reports fourth quarter earnings after the bell to "kick off" earnings season. ALCOA INC ( AA ): Free Stock Analysis Report To read this article on Zacks.com click here. Some S&P 500 companies have already reported but Alcoa is the first Dow component to report so it gets the designation of being the "official" kick-off.
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Alcoa ( AA ) reports fourth quarter earnings after the bell to "kick off" earnings season. ALCOA INC ( AA ): Free Stock Analysis Report To read this article on Zacks.com click here. Some S&P 500 companies have already reported but Alcoa is the first Dow component to report so it gets the designation of being the "official" kick-off.
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