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News & Views
July 02
SPX
The Current Bear Market: Death By a Thousand Cuts
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7/2 - "The general stock market behavior recently has been painful, to say the least. Now with DJIA broke below March low, any hope of a quick ending on the current bear market diminishes...January and March lows will not hold for the current on-going bear market, and we should expect a 2nd leg d...
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Advise from Warren Buffet for Difficult Times
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6/26 - "...there is ample current proof in the securities markets that we are living in interesting times. It’s simply nasty out there — or at least it feels that way...Commodities are up, REITs a...
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Massive Job Cuts Coming
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6/28 - "CNN Money is reporting State, city layoffs: 45,000 and counting...The effect of those layoffs will far outweigh any benefit of the economic stimulus package, much of which was already spent...
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SP Community Rating:
SPX
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July 01
LVS
WYNN
Morgan Stanley: Worst Yet to Come for Casino Stocks
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7/1 - "Unlike other vices such as alcohol and cigarettes, gambling isn't recession-resistant...For most people, neither flying nor driving to Vegas seems doable...Casinos have too much debt from massive expansions and private equity buyouts."
"Morgan Stanley's casino analyst Joseph Greff sums ...
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Vegas Stock Play: Long Boyd, Short Perini
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6/27 - "Today, I'm adding Boyd Gaming to the mock portfolio as a stock to own...Boyd currently owns attractive properties catering to the Las Vegas locals market, along with riverboat and land casi...
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GE
GE Isn't Too Big to Rebound
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6/27 - "Weighing it at a robust $260 billion-plus in market cap, GE's very size suggests that it could have a tough time fulfilling its routine promises of year-over-year double-digit profits growth. Still more important to shareholders, the company's size makes it difficult to imagine the stock ...
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GE: A Buy for Yield
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6/29 - "It pays a yield of nearly 5%. The company is still tremendously profitable and has $15 billion in cash...If the U.S. stock market continues to drop, the successful investing tactics of the ...
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SP Community Rating:
GE
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NKE
Nike Worth Considering on a Pullback
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6/26 - "Revenues increased 14%, and net income expanded by 28% to $3.74 per share. Gross margin expanded, and worldwide futures orders were up 11%. I like all these double-digit numbers, and I like the fact that the company paid out more in dividends this year than last, and I can see that Nike i...
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Credit Suisse: Nike Should Deliver Over Long-Term
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6/26 - "The stock is down about 10% today as investors were spooked by aggressive SG&A spending surrounding the European soccer championship, the Olympics, the Sparq training launch, and investment...
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Nike Still a Solid Play; Buy on Pullbacks
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6/26 - "NKE remains our top apparel & footwear pick, w/ solid brands and continued outperformance in an environment generally lacking in visibility. W/shares indicating ~5% down after mkt, we think...
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Under Armour is the Next Nike
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6/27 - "Under Armour, founded in 1995, at first appealed to the serious athlete with its moisture-wicking synthetic fibers that help keep sweat and moisture from the skin and help regulate body tem...
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June 30
RIMM
RIM's Problem: The Company Isn't Apple
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6/25 - "The problem that RIM has is that it's not Apple Inc. (NASDAQ: AAPL), which is now trying to lure more corporate customers with the latest version of the iPhone. In baseball terms, RIMM is like the New York Mets, a once mighty team that has fallen on hard times. Apple, on the other hand, i...
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Scotia Capital: RIM Still an Unstoppable Force
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6/29 - "The second half of fiscal 2009 and 2010 will be a strong period for Research In Motion Ltd. (RIMM) with an array of product launches accompanied by a big marketing push, according to Scotia...
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With Apple Bearing Down, It's Time to Sell RIM
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6/27 - "RIMM's dream run is beginning to look like a thing of the past. Its shares are up a whopping 70% over the past 5 months, and 33% since its last quarterly report. In a choppy market, investo...
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SP Community Rating:
RIMM
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June 23
SPY
The S&P 500 is Struggling And Peaking
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6/22 - "The one-day sell-off on June 6th was a major turning point. That was the same day that oil had its largest one-day price gain percentage since 1996. Although oil has since held steady in price, the S&P 500 has continued to sag since then. So, while it is tempting to hope that a correction...
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Many (Economic) Hurricanes, Many Eyes
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6/22 - "Often times it is not the leading front of the hurricane that does the most damage, it is the backside. Here is the three stage pattern of hurricane damage...The "calm" Bernanke thinks we a...
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The Four Stages of Investment Knowledge
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6/21 - " We’re in a dead spot, a lost decade; old certainties are being tested, and many clever investors (alas for Bill Miller) are being weighed in the scales and found wanting.
This is actual...
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SP Community Rating:
SPY
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BA
Boeing Undervalued With or Without Disputed Tanker Contract
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6/20 - "On March 27th I wrote that although Boeing (BA) had lost its bid to provide the Air Force with a fleet of in-flight refueling tankers, the company still has a lot of upside. Well, Boeing protested the $35 billion contract that was awarded to Northrop Grumman Corp. (NOC) and EADS...The Gov...
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A Low-Risk Options Play for Boeing Bulls
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6/5 - "After processing the latest news, 2008 and 2009 estimates now center around $5.96 and $6.80 meaning BA shares are trading at just 13.1 times this year's and 11.5x 2009 projections. Value Lin...
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VLO
Valero Energy an Outstanding Play on Refining Industry's Recovery
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6/16 - "Although he had previously maintained a cautious stance on the refining group, energy sector expert Elliott Gue is now boosting the rating on Valero Energy (NYSE: VLO)...In his The Energy Strategist, the advisor explains, "Valero is now attractive for three reasons: superior geographic ex...
HSY
Hershey's Marketing Efforts Unlikely to Help Stock Over Short-Term
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6/18 - "This double-digit jump in marketing is a smart move, but it won't be easy to digest. With the aforementioned inflationary pressures on the rise, Hershey is going to be sufficiently challenged to push growth while balancing the upward trends in input costs. But is there really a choice her...
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Hershey: A Sweet, Low-Risk Stock
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6/17 - "Hershey shares jumped up not too long ago when M&M Mars Candy Company agreed to a buyout. Shares were down big today after a Hershey's Board member seemed to indicate they were not looking ...
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SP Community Rating:
HSY
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F
GM
GM and Ford: Still Easy Shorts
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6/22 - "So what can we expect from Ford and GM in the next few months? Well, expect more of the same. Nothing has changed at Ford and GM over the past couple of months, except for the slight possibility that the management at these companies may FINALLY be realizing that SUVs and trucks are going...
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CarMax Results Paint Ugly Picture for GM and Ford
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6/20 - "If you want to know why GM and Ford may not make it -- and I sincerely doubt Chrysler's any better, despite the endless puffing by CEO Bob Nardelli -- go listen to the CarMax(KMX - Cramer's...
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SP Community Rating:
F
GM
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GS
Goldman Does it Again
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6/17 - "It would be only natural to ask how Goldman made $2 billion while Lehman lost $2.8 billion. The answers are many, not the least of which is size: Goldman is the world's biggest securities firm, Lehman Brothers (NYSE: LEH) is the smallest among the four Wall Street investment banks. Other ...
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In Goldman We Trust
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6/18 - "Unlike widget makers or commodity stocks, there is very little analysis I can do with an investment bank - they are opaque black boxes with moving parts we will never know about. But in Gol...
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Goldman Shines...and It's Still Not Expensive
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6/17 - "Granted Goldman's Price to Book ratio has been notoriously higher than its peers at around 1.9, but that doesn't make it expensive. The industry, through this downtrend and the losses is in...
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SP Community Rating:
GS
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June 16
SPY
DJI
Some Rules for Surviving a Market Crash
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6/16 - "It is human psychology that leads us to believe that buying in a market where prices are up 300% is safer than buying when the market is down 80%. When markets are dramatically up there is a sense of confidence in the air, when the markets are severely down the confidence is replaced with...
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S&P 500 Charts Paint Bearish Picture
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6/16 - "On the SPYs, notice the market rose in a nice channel from the beginning of 2004 until the end of 2006 when the market broke through upside resistance. The market continued rising until it ...
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Investor Sentiment Readings Give Mixed Outlook
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6/14 - "The retail investors as measured by the American Association of Individual Investor’s weekly sentiment survey are astonishingly pessimistic: 54% bearish...To find a more gloomy view from th...
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MT
ArcelorMittal a Good Global Steel Play
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6/11 - ""Luxembourg-based ArcelorMittal (NYSE: MT) is the only truly global steel manufacturer, operating in 60 countries on five continents," says Gordon Pape.
In his Internet Wealth Builder, he explains, "Like all steel companies, ArcelorMittal would be temporarily affected by a world recess...
June 14
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