This morning we see Asia is all red, with the exception of New Zealand which has been up the past few days while Asia has been down, and down big. Europe is all green, across the board and moving quite strongly. These Greece jitters continue to creep into the news cycle but today the news seems to be bullish. Looking at the futures for the US, we see green arrows as well.
Looking at Asian markets we see that most are down:
All Ordinaries - down 1.42%
Shanghai Composite - down 0.65%
Nikkei 225 - down 0.64%
NZSE 50 - up 0.04%
Seoul Composite - down 0.91%
In Europe we see green across the board:
CAC 40 - up 0.65%
DAX - up 0.52%
FTSE 100 - up 0.32%
OSE - up 0.56%
Yesterday saw BioCryst Pharmaceuticals (BCRX) rise again, in a down market. The stock rallied late to finish green, and it was only marginally so, however the stock was up when most were down and it was up on the heels of an impressive nearly 20% gain on Monday. That is strength, and it seems that when this market is down, one of the few sectors with gainers is biotech.
One retailer we want to absolutely stay away from is Best Buy (BBY). The retailer has more problems than people window shopping at their store only to go on the web to find the best price. The level of service in their stores is way down, and at some locations it is possible to find more employees outside the store than within it. It was a great brand and a great concept, but the new stores have hardly the product mix or options for customers, and that is usually the beginning of the end for retailers.
There was a research note out yesterday and an analyst interviewed on CNBC discussing the possibilities of Monster Worldwide's (MWW) valuation in a leveraged buyout. This helped push the stock up 10.64% to $8.32/share. This was in addition to last week's news that the company was exploring possibilities. We are neither long nor short this issue, but find it interesting as this is a company which makes its money off of posting jobs, therefore we think maybe this cyclical business may be turning a corner. If their business is turning a corner, then that means the economy is turning a corner and that is good news for the stock market.
Sirius XM Radio (SIRI) is a stock we briefly discussed yesterday. We received a few emails on it, and we simply wanted to say we are neither long nor short this issue. We were at one time, and it was the correct trade, however the stock has had a really nice ride north of $2/share. It would be bullish if it stayed above the $2.10/share level short-term, and as long as the company continues to deleverage the balance sheet and post subs growth it should continue to do well long-term. There are risks, and it is rich with a 31 P/E, but we are aware of the promise here.
Regions Financial (RF) had been strong as the market rose, so if we are in a bull market correction one might buy on the dips here and use Regions as a leveraged play on a better US economy. This would be a good play on the southern United States, Florida and Georgia with some exposure to coastal areas from the Gulf to the eastern seaboard. We are not making any moves yet, and anticipate this would be out in the future a bit, but we are watching Regions for now.