V - News and Analysis from Seeking Alpha 'V' Tag RSS Syndication from SeekingAlpha.com SeekingAlpha.com http://seekingalpha.com/symbol/v Weekly Street Sentiment: Sell-Side Regains Confidence as Markets Head into the Home Stretch http://seekingalpha.com/article/172421-weekly-street-sentiment-sell-side-regains-confidence-as-markets-head-into-the-home-stretch?source=feed 172421

Please Fasten Your Seat Belts…

There’s a saying that many fliers use to comfort themselves on airplanes around the world, and it’s the belief, originated long ago and repeated to this present day, that turbulence, in and of itself, can’t bring down a plane…but that doesn’t mean it doesn’t get the heart racing.

]]> Tue, 10 Nov 2009 05:07:13 -0500 First Coverage First Coverage submits:

Please Fasten Your Seat Belts…

There’s a saying that many fliers use to comfort themselves on airplanes around the world, and it’s the belief, originated long ago and repeated to this present day, that turbulence, in and of itself, can’t bring down a plane…but that doesn’t mean it doesn’t get the heart racing.


Complete Story »]]> ANF DSX EAT FUQI GE HELE KSS SLM SWK V First Coverage Consumer Credit Decline Continues http://seekingalpha.com/article/171910-consumer-credit-decline-continues?source=feed 171910

Consumer credit fell again in September actually picking up pace from the August decline. The total decline was 7.2% year over with revolving credit increasing its decline to 13.3%. De-leveraging continues as consumers continue to fix their balance sheets. The stock market, of course, could care less.

cc

]]> Fri, 06 Nov 2009 16:24:49 -0500 The Pragmatic Capitalist

Consumer credit fell again in September actually picking up pace from the August decline. The total decline was 7.2% year over with revolving credit increasing its decline to 13.3%. De-leveraging continues as consumers continue to fix their balance sheets. The stock market, of course, could care less.

cc


Complete Story »]]> AXP BAC COF DFS MA NCC V The Pragmatic Capitalist 4 Earnings Season Option Strategies http://seekingalpha.com/article/171844-4-earnings-season-option-strategies?source=feed 171844 In my last three blog posts, I listed some stocks which I would be willing to go long by selling the puts right before the stock reported earnings. Keep in mind, these were companies which I believed would have a positive reaction to the earnings. However, if the stock moved sideways on the number. this strategy would still likely return a gain the following day. This is because I am taking advantage of the increased levels of implied volatility factored into the option premium before earnings.

If you missed them, be sure to check out my October 19 blog post here, October 21 blog post here and my October 26 blog post here. So far this earnings season, the overall results have been very positive, even on eBay (EBAY), which sold off nearly 10% after earnings. I was able to purchase back the put options (closed the position) for a $4 per contract gain the following day. The best results are of course when the stock has a very positive reaction to the report and pops.

]]> Fri, 06 Nov 2009 11:41:45 -0500 Marco Hickey Marco Hickey submits:

In my last three blog posts, I listed some stocks which I would be willing to go long by selling the puts right before the stock reported earnings. Keep in mind, these were companies which I believed would have a positive reaction to the earnings. However, if the stock moved sideways on the number. this strategy would still likely return a gain the following day. This is because I am taking advantage of the increased levels of implied volatility factored into the option premium before earnings.

If you missed them, be sure to check out my October 19 blog post here, October 21 blog post here and my October 26 blog post here. So far this earnings season, the overall results have been very positive, even on eBay (EBAY), which sold off nearly 10% after earnings. I was able to purchase back the put options (closed the position) for a $4 per contract gain the following day. The best results are of course when the stock has a very positive reaction to the report and pops.


Complete Story »]]> AAPL AMZN BNI BWLD CAT EBAY GOOG KWK MSFT NSC PCLN PWRD RAX SNDK TXN V YHOO Marco Hickey Washington Should Let Credit Card Issuers Do Their Job http://seekingalpha.com/article/171431-washington-should-let-credit-card-issuers-do-their-job?source=feed 171431

Ok, Washington crowd, here is a quick lesson on how credit card rates should work. Looking at rates and knowing the Fed Target Rate is not merely an oversimplification, it ignores the reality of the business. Sure there are villains to be exposed, incarcerated or fined. Unfortunately, our elected officials are once again leaning towards throwing the baby out with the bath water.

Step one is factoring the cost of money which is quite low right now. Step two is calculating a fair profit (yes, I will come back to this topic). Step three is the administration of lending. This includes the time value of money paid to merchants until the credit card company collects. Step four is client acquisition costs such as advertising, mailings etc and maintenance such as statements and customer service. You get the picture.

]]> Thu, 05 Nov 2009 06:13:30 -0500 Andrew Corn Andrew Corn submits:

Ok, Washington crowd, here is a quick lesson on how credit card rates should work. Looking at rates and knowing the Fed Target Rate is not merely an oversimplification, it ignores the reality of the business. Sure there are villains to be exposed, incarcerated or fined. Unfortunately, our elected officials are once again leaning towards throwing the baby out with the bath water.

Step one is factoring the cost of money which is quite low right now. Step two is calculating a fair profit (yes, I will come back to this topic). Step three is the administration of lending. This includes the time value of money paid to merchants until the credit card company collects. Step four is client acquisition costs such as advertising, mailings etc and maintenance such as statements and customer service. You get the picture.


Complete Story »]]> AXP DFS MA V Andrew Corn Nine Companies Increasing Dividends http://seekingalpha.com/article/170550-nine-companies-increasing-dividends?source=feed 170550 I typically try to summarize each week’s dividend increases in the news by outlining the company that raised distributions and whether it is an achiever or not. Just because I list a stock in an article however does not mean I am recommending it. Identifying the dividend raisers each week however helps me in finding out quality dividend stocks which either should be bought on dips or after they have raised distributions for at least a decade. Even if a list contains some interesting stock ideas however, this does not mean that one should blindly enter a position in such securities. Only after one understands whether such a stock could grow earnings into the future in order to support a growing dividend, should they start accumulating a position over time.

Questar Corp (STR), which engages in gas and oil exploration and production, midstream field services, energy marketing, interstate gas transportation, and retail gas distribution businesses, increased its quarterly dividend by 4% to 13 cents per share. Questar Corp is a dividend aristocrat, which has raised distributions for 30 consecutive years in a row. The stock currently yields only 1.30%.

]]> Mon, 02 Nov 2009 10:17:58 -0500 Dividend Growth Investor Dobromir Stoyanov submits:

I typically try to summarize each week’s dividend increases in the news by outlining the company that raised distributions and whether it is an achiever or not. Just because I list a stock in an article however does not mean I am recommending it. Identifying the dividend raisers each week however helps me in finding out quality dividend stocks which either should be bought on dips or after they have raised distributions for at least a decade. Even if a list contains some interesting stock ideas however, this does not mean that one should blindly enter a position in such securities. Only after one understands whether such a stock could grow earnings into the future in order to support a growing dividend, should they start accumulating a position over time.

Questar Corp (STR), which engages in gas and oil exploration and production, midstream field services, energy marketing, interstate gas transportation, and retail gas distribution businesses, increased its quarterly dividend by 4% to 13 cents per share. Questar Corp is a dividend aristocrat, which has raised distributions for 30 consecutive years in a row. The stock currently yields only 1.30%.


Complete Story »]]> AFG MSEX NRGP NRGY STR STRA SWWC SYK V Dividend Growth Investor October Overview: The Goblins Came Home to Roost http://seekingalpha.com/article/170660-october-overview-the-goblins-came-home-to-roost?source=feed 170660 What a crazy month we had!

The Dow began the month of October at 9,712 and finished the month of October at EXACTLY 9,712. Now I don’t want to say the market is manipulated but… No, I’ve got nothing, there are no buts - the market is totally manipulated! Either that or you believe that the random outcome of tens of millions of traders around the globe trading hundreds of billions of shares of stock would just so happen to begin and end the month within .50 after going as low as 9,378.77 (on the 5th) and as high as 10,157.94 (on the 21st). So that is literally a 1 out of the 779-point swing coincidence to hit that 9,712 nail on the head.

]]> Mon, 02 Nov 2009 08:23:33 -0500 Philip Davis Phil Davis submits:

What a crazy month we had!

The Dow began the month of October at 9,712 and finished the month of October at EXACTLY 9,712. Now I don’t want to say the market is manipulated but… No, I’ve got nothing, there are no buts - the market is totally manipulated! Either that or you believe that the random outcome of tens of millions of traders around the globe trading hundreds of billions of shares of stock would just so happen to begin and end the month within .50 after going as low as 9,378.77 (on the 5th) and as high as 10,157.94 (on the 21st). So that is literally a 1 out of the 779-point swing coincidence to hit that 9,712 nail on the head.


Complete Story »]]> AAPL AM AMZN BIDU BKE BMY CAL CAT CERN COF CREE CS CVX CY DD DDM DIA DXD EBAY ELN EMC ERX FAZ FSLR FXP GE GMCR IBM ICE INTC IYT JPM KO MS MSFT NFLX PALM PCLN PFE POT QLD RIMM SKF SO SPG SPY SRS SWM T TNA TRLG TXN TZA UHS URBN USB UTX V VZ WFMI XOM Philip Davis Consumer Credit: Precipitous Drop in Credit Card Offers http://seekingalpha.com/article/170223-consumer-credit-precipitous-drop-in-credit-card-offers?source=feed 170223 The latest Mintel data on credit card direct mail offers to consumers showing Q3 of this year against the preceding few years. The drop is ... precipitous, from 2.1 billion a quarter in 2006 to 391 million in the most recent quarter.

ccards-mintel

]]> Fri, 30 Oct 2009 14:49:28 -0400 Paul Kedrosky Paul Kedrosky submits:

The latest Mintel data on credit card direct mail offers to consumers showing Q3 of this year against the preceding few years. The drop is ... precipitous, from 2.1 billion a quarter in 2006 to 391 million in the most recent quarter.

ccards-mintel


Complete Story »]]> AXP BAC COF DFS MA NCC V Paul Kedrosky Three Companies with Positive, Long-Term Potential http://seekingalpha.com/article/169761-three-companies-with-positive-long-term-potential?source=feed 169761

Earnings season rolls on. Despite still less-than-compelling economic readings, earnings reports have largely been good. With exactly half of the S&P 500 companies already having reported, we’ve seen 75 percent of them meet or beat expectations. Granted, many of these upbeat results stem from cost-cutting rather than strong top-line results, but we’ll take whatever we can get.

The earnings reported by some TCI portfolio holdings this week weren’t off the charts, but they left a positive long-term picture for these companies intact. Let’s take FPL Group (FPL), a member of both our Growth and Income portfolios. Before the market opened yesterday, FPL reported earnings and forward-looking guidance that underwhelmed investors. Excluding one time items, the U.S.’s largest producer of wind and solar power reported earnings per share of $1.38, four cents below consensus estimates.
The reasons for the miss were two-fold. First, the company’s Florida utility business was punished by the recession, as the state has been one of the hardest hit. Florida’s unemployment rate has reached 11 percent – its highest since records began in 1976. The company has expanded its wind farms and solar projects to compensate for lost Florida business, but earnings during the quarter were hurt by poor wind resources in Texas. The combination of the two caused the company to slightly lower its full-year 2009 guidance to $4.10 to $4.20 a share, while also bringing in next year’s estimates. The company is awaiting a rate increase in Florida that could lead to a revenue boost of $1 billion in 2010, but it must wait for a postponed vote from the Florida Public Service Commission that will now take place next year.
While the immediate outlook given by FPL wasn’t upbeat, the company’s long-term prospects still looks bright. Energy prices continue to creep up, and will create increasingly strong incentives on building out renewable sources. FPL, in addition to its tremendous wind and solar assets, is also the country’s third largest nuclear provider – another unregulated business helping to provide the company with long-term double digit earnings growth. Investors will not only get this growth, but dividends to boot – with shares now yielding 3.8 percent. The combination of the two makes the company attractive to income and conservative growth investors alike.
After the close of regular trading Tuesday, Growth portfolio member Visa (V) disclosed its numbers that indicated a strong quarter. Investors are cheering the results, as its shares reached a new 52-week high in yesterday’s trading.
Visa reported earnings per share of 74 cents, outpacing analysts’ expectations by 2 cents and representing a better than 20 percent improvement over the year-ago period. The company, which boasts the world’s largest payments network, was helped by dollar volume, which slid only 1 percent, versus 3 percent in the June quarter. On the conference call, the company noted that U.S. spending on its network actually grew 1 percent in September, and was 3 percent higher in the first 3 weeks of October – both positives for the economy at large. The company also reported strong results in debit card division, a business in which the company has a dominant, roughly 75 percent, market share. As credit card companies shrink credit lines and increase fees, more consumers are shifting to debit to buy their necessities, benefiting Visa.
The company does not take on consumer default risk, while it collects fees for the use of its far-reaching network. As credit remains tight for consumers, Visa’s network will continue to be in demand – both here and abroad.
Looking forward, the company expects revenue growth in the low teens, while margin improvements will help earnings per share grow by over 20 percent. The company, like us, sees shares attractive at current levels. To benefit, Visa announced a stock buyback program of $1 billion – another positive sign for its shareholders.
Meanwhile, shares of ConocoPhillips (COP) were down yesterday after the company beat consensus earnings estimates this morning. The company saw profit drop 71 percent from a year ago, but with earnings per share of $0.98 ex-items, it managed to outpace estimates by 4 cents. The company suffered a from precipitous year-over-year drop in prices for crude and natural gas. At the same time, Conoco was able to increase production by 2.5 percent during the quarter. For 2010, the company plans on reducing capital spending by 12 percent in 2010 in an effort to cut debt and boost returns.
Looking forward, ConocoPhillips is strongly positioned with an eye towards its oil reserves and tremendous natural gas assets. Shares yield over 4 percent, which will make the wait for the return of profits easier. And profits will return in a big way as energy demand will rise with the global economic recovery.
]]> Thu, 29 Oct 2009 05:50:41 -0400 Dr. Stephen Leeb Dr. Stephen Leeb submits:

Earnings season rolls on. Despite still less-than-compelling economic readings, earnings reports have largely been good. With exactly half of the S&P 500 companies already having reported, we’ve seen 75 percent of them meet or beat expectations. Granted, many of these upbeat results stem from cost-cutting rather than strong top-line results, but we’ll take whatever we can get.

The earnings reported by some TCI portfolio holdings this week weren’t off the charts, but they left a positive long-term picture for these companies intact. Let’s take FPL Group (FPL), a member of both our Growth and Income portfolios. Before the market opened yesterday, FPL reported earnings and forward-looking guidance that underwhelmed investors. Excluding one time items, the U.S.’s largest producer of wind and solar power reported earnings per share of $1.38, four cents below consensus estimates.
The reasons for the miss were two-fold. First, the company’s Florida utility business was punished by the recession, as the state has been one of the hardest hit. Florida’s unemployment rate has reached 11 percent – its highest since records began in 1976. The company has expanded its wind farms and solar projects to compensate for lost Florida business, but earnings during the quarter were hurt by poor wind resources in Texas. The combination of the two caused the company to slightly lower its full-year 2009 guidance to $4.10 to $4.20 a share, while also bringing in next year’s estimates. The company is awaiting a rate increase in Florida that could lead to a revenue boost of $1 billion in 2010, but it must wait for a postponed vote from the Florida Public Service Commission that will now take place next year.
While the immediate outlook given by FPL wasn’t upbeat, the company’s long-term prospects still looks bright. Energy prices continue to creep up, and will create increasingly strong incentives on building out renewable sources. FPL, in addition to its tremendous wind and solar assets, is also the country’s third largest nuclear provider – another unregulated business helping to provide the company with long-term double digit earnings growth. Investors will not only get this growth, but dividends to boot – with shares now yielding 3.8 percent. The combination of the two makes the company attractive to income and conservative growth investors alike.
After the close of regular trading Tuesday, Growth portfolio member Visa (V) disclosed its numbers that indicated a strong quarter. Investors are cheering the results, as its shares reached a new 52-week high in yesterday’s trading.
Visa reported earnings per share of 74 cents, outpacing analysts’ expectations by 2 cents and representing a better than 20 percent improvement over the year-ago period. The company, which boasts the world’s largest payments network, was helped by dollar volume, which slid only 1 percent, versus 3 percent in the June quarter. On the conference call, the company noted that U.S. spending on its network actually grew 1 percent in September, and was 3 percent higher in the first 3 weeks of October – both positives for the economy at large. The company also reported strong results in debit card division, a business in which the company has a dominant, roughly 75 percent, market share. As credit card companies shrink credit lines and increase fees, more consumers are shifting to debit to buy their necessities, benefiting Visa.
The company does not take on consumer default risk, while it collects fees for the use of its far-reaching network. As credit remains tight for consumers, Visa’s network will continue to be in demand – both here and abroad.
Looking forward, the company expects revenue growth in the low teens, while margin improvements will help earnings per share grow by over 20 percent. The company, like us, sees shares attractive at current levels. To benefit, Visa announced a stock buyback program of $1 billion – another positive sign for its shareholders.
Meanwhile, shares of ConocoPhillips (COP) were down yesterday after the company beat consensus earnings estimates this morning. The company saw profit drop 71 percent from a year ago, but with earnings per share of $0.98 ex-items, it managed to outpace estimates by 4 cents. The company suffered a from precipitous year-over-year drop in prices for crude and natural gas. At the same time, Conoco was able to increase production by 2.5 percent during the quarter. For 2010, the company plans on reducing capital spending by 12 percent in 2010 in an effort to cut debt and boost returns.
Looking forward, ConocoPhillips is strongly positioned with an eye towards its oil reserves and tremendous natural gas assets. Shares yield over 4 percent, which will make the wait for the return of profits easier. And profits will return in a big way as energy demand will rise with the global economic recovery.

Complete Story »]]> COP FPL V Dr. Stephen Leeb Wednesday Options Update: GT, RF, MAS & V http://seekingalpha.com/article/169514-wednesday-options-update-gt-rf-mas-v?source=feed 169514 The Goodyear Tire & Rubber Co. (GT) – Shares of the largest tire producer in the U.S. plummeted 24.5% to $12.74 after the firm forecast an operating loss in North America this quarter. The dismal forecast overshadowed bullish third-quarter results wherein profits more than doubled to 30 cents per share on cost-cutting efforts. Option trading on the stock today reflects the mix of positive and negative news on the company. Some investors purchased calls at the November 15 strike 2,700 times for an average premium of 80 cents apiece, while others sold 2,500 calls at the same strike for 35 cents each. Call-buyers are perhaps expecting shares to rebound ahead of expiration. Profits will accrue for these rubber-optimists if shares rally 24% to $15.80 by expiration. Conversely, call-sellers hope to retain the 35 cent premium received on the sale in the event that shares remain south of the $15.00-level. One other bullish sign for the tire company was the sale of 1,500 puts at the November 12.5 strike for 46 cents apiece. Put-sellers at this strike will retain the full premium received as long as shares trade above $12.50 through expiration day. Option implied volatility has surged 31% during the past week to reach 63% today.

Regions Financial Corp. (RF) – Large-volume bearish put plays in the November contract launched the financial services firm onto our ‘most active by options volume’ market scanner. Shares are currently lower by 2% to $4.97. One investor banked gains on a previously established bearish position and subsequently rolled the position to a lower strike price. It appears the trader originally purchased 20,000 puts at the November 6.0 strike for approximately 60 cents per contract on September 16, 2009, when shares were trading at $6.39. The put options have since landed in-the-money, allowing the trader to sell the contracts today at an average premium of 1.04 each. Net profits on the sale amount to approximately 44 cents per contract for a total of $880,000. Next, the investor established a new bearish position by purchasing 20,000 puts at the in-the-money November 5.0 strike for 34 cents a-pop. Profits will begin to accumulate if Region’s shares slip beneath the breakeven price of $4.66 by expiration. Option implied volatility on the stock steadily increased throughout the trading week, rising 29% since Monday’s opening value of 52%, to the current high of 67%.

]]> Wed, 28 Oct 2009 12:37:25 -0400 Andrew Wilkinson The Goodyear Tire & Rubber Co. (GT) – Shares of the largest tire producer in the U.S. plummeted 24.5% to $12.74 after the firm forecast an operating loss in North America this quarter. The dismal forecast overshadowed bullish third-quarter results wherein profits more than doubled to 30 cents per share on cost-cutting efforts. Option trading on the stock today reflects the mix of positive and negative news on the company. Some investors purchased calls at the November 15 strike 2,700 times for an average premium of 80 cents apiece, while others sold 2,500 calls at the same strike for 35 cents each. Call-buyers are perhaps expecting shares to rebound ahead of expiration. Profits will accrue for these rubber-optimists if shares rally 24% to $15.80 by expiration. Conversely, call-sellers hope to retain the 35 cent premium received on the sale in the event that shares remain south of the $15.00-level. One other bullish sign for the tire company was the sale of 1,500 puts at the November 12.5 strike for 46 cents apiece. Put-sellers at this strike will retain the full premium received as long as shares trade above $12.50 through expiration day. Option implied volatility has surged 31% during the past week to reach 63% today.

Regions Financial Corp. (RF) – Large-volume bearish put plays in the November contract launched the financial services firm onto our ‘most active by options volume’ market scanner. Shares are currently lower by 2% to $4.97. One investor banked gains on a previously established bearish position and subsequently rolled the position to a lower strike price. It appears the trader originally purchased 20,000 puts at the November 6.0 strike for approximately 60 cents per contract on September 16, 2009, when shares were trading at $6.39. The put options have since landed in-the-money, allowing the trader to sell the contracts today at an average premium of 1.04 each. Net profits on the sale amount to approximately 44 cents per contract for a total of $880,000. Next, the investor established a new bearish position by purchasing 20,000 puts at the in-the-money November 5.0 strike for 34 cents a-pop. Profits will begin to accumulate if Region’s shares slip beneath the breakeven price of $4.66 by expiration. Option implied volatility on the stock steadily increased throughout the trading week, rising 29% since Monday’s opening value of 52%, to the current high of 67%.


Complete Story »]]> GT MAS RF V Andrew Wilkinson Wall Street Breakfast: Must-Know News http://seekingalpha.com/article/169423-wall-street-breakfast-must-know-news?source=feed 169423

  • GMAC needs third lifeline. GMAC Financial Services and the Treasury are reportedly in advanced talks to prop up the auto-lender with its third helping of taxpayer money, making it the first of the stress-tested banks to need additional government capital. Treasury will likely inject another $2.8-5.6B into GMAC in exchange for preferred shares, bringing its total investment in GMAC thus far to $15.3-18.1B, for which it currently owns 35.4% of the firm. Sources say the FDIC has also agreed to backstop another $2.9B of GMAC's debt to facilitate day-to-day lending. The government's willingness to deepen taxpayer exposure to GMAC reflects the troubled lender's importance to the revival of the auto industry.
  • Consumer confidence dips. A lower-than-expected consumer confidence reading sent a chill through markets Tuesday. Conference Board's index came in at 47.7, down from 53.4 a month ago, and lower than consensus estimates of 53.2. A plunge in expectations (65.7 vs. 73.3 in Sept.) led the way down. "Consumers' assessment of present-day conditions has grown less favorable, with labor market conditions playing a major role in this grimmer assessment," the group said, noting its Present Situation Index is now at a 26-year low. Analysts struggled to find an obvious explanation for the decline, but noted the drop didn't bode well for recovery hopes.
  • Risk appetite withers. State Street's investor confidence index fell 10 points to 108.4, the lowest since April, with the most pronounced decline seen among North American investors (-12.8 to 101.1). European investors were also much more subdued (-9.3 to 101.8), but confidence rose among Asian investors, albeit to a level that still trails the U.S. and Europe (+2.4 to 95.3). "Institutional investors have paused to take stock," index co-developer Ken Froot said. "While the U.S. earnings season has been relatively robust so far, the number of positive surprises that have been observed in employment, retail sales, manufacturing and trade figures has diminished considerably, and this may be influencing investor risk appetite."
  • Easing Hilton's towering debt load. Sources say Blackstone (BX) is in talks with lenders to shave about $5B off Hilton Worldwide's $20B debt load. Specifically, Blackstone is considering coughing up another $800M in equity to buy back debt at a discount (on top of its $5.6B original investment), and would like to extend debt maturing in 2013 to 2016. With capital markets reopening over the past six months, private-equity firms are using a variety of schemes (exchange offers, repurchases, tender offers) to refinance and extend the maturities on highly-leveraged debt taken on during the heyday, staving off default.
  • Panel backs hedge-fund clampdown. The House Financial Services Committee overwhelmingly passed a bill that would require advisers to hedge funds, private equity and offshore funds to register with regulators, bringing some transparency to the loosely-policed industry. The bill, however, exempts venture capital funds and funds with less than $150M - which SEC chief Mary Schapiro warned "could come back to haunt investors in later years."
  • Tackling too-big-to-fail. Rep. Barney Frank unveiled legislation to monitor and dissolve systemically critical financial institutions. Under the proposal, costs for taking over and euthanizing a failed bank would be paid for by shareholders and bondholders, with taxpayers temporarily covering the overflow until an assessment is rendered against the failed bank's surviving peers. A council of regulators - including the FDIC, Treasury, Fed and SEC - would be in charge of monitoring the conglomerates and invoking a wind-down if necessary.
  • That's a good czar. While so-called pay czar Kenneth Feinberg's new rules for TARP backed firms cut compensation by about half, they also boosted base salaries by 14% to an average of $438K/year after executives complained, according to an analysis in today's WSJ. The move appears to contradict Feinberg's stated goal of tying pay to long-term performance, and "deepens the confusion and skepticism" surrounding the types of pay systems the government is promoting.
  • Ford shows why it's #1. Consumer Reports' much-awaited yearly car reliability survey held few surprises, with foreign automakers dominating its top-10 list, and domestic brands prominently featured on its least-reliable tally. Scion took top spot, followed by Honda (HMC), Toyota (TM) and Infiniti (NSANY). Ford (F), at #10, was the only U.S. carmaker to make the grade. Least reliable brands were Chrysler, Cadillac, Dodge and Jeep. Media reports yesterday claimed Fiat models will drive Chrysler's turnaround efforts, but with new cars not due until 2012, it's unclear whether Chrysler has enough staying power in its balance sheet.
  • Ruiz pegged as AMD insider. Sources say former AMD (AMD) CEO Hector Ruiz is the insider government officials have identified as providing nonpublic information to Galleon's insider trading scheme. Prosecutors released fragments of recorded conversations between an unnamed AMD executive and a Galleon employee in which they allegedly discuss the timing of the spinoff of AMD’s plants before the deal was announced in Sept. 2008. Ruiz hasn’t been charged, and prosecutors don’t say he profited from insider trading.
  • Gloom on economy spreads. Americans are growing increasingly pessimistic about the economy after a mild upswing in September, according to WSJ/NBC's monthly poll released Wednesday. For the first time during the Obama presidency, a majority of those polled now see the country as being on the wrong track. Fifty-eight percent think the economic slide still has a ways to go, up from 52% in September, while only 29% think we've hit bottom, down from 35%.
  • Mortgage apps drop for second straight week. Mortgage applications fell another 12.3% following a 13.7% drop last week, even as the average rate for 30-year mortgages inched down to 5.04% from 5.07% a week ago. Refinancing was 16.2% lower.
  • Ford picks Geely. Ford (F) selected a group led by China's Geely as the preferred bidder for its Volvo unit, a senior Geely executive said. Geely and Ford will now enter into exclusive negotiations over Volvo.

Earnings: Wed. Before Open

  • ArcelorMittal (MT): Q3 income of $1.59B vs. consensus of $1.78B. Sees Q4 income of $2-2.4B. "We have seen the first signs of recovery in Q3... We should continue to see further gradual improvement through 2010, although the operating environment remains challenging." Shares -0.8% premarket. (PR)
  • Ashland (ASH): FQ4 EPS of $0.96 beats by $0.06. Revenue of $2.11B (-4.6%) in-line. "Demand appears to be showing some signs of growth in many end markets." (PR)
  • BorgWarner (BWA): Q3 EPS of $0.15 beats by $0.05. Revenue of $1.03B (-22%) in-line. "We continue to be cautiously optimistic about Q4." (PR)
  • ConocoPhillips (COP): Q3 EPS of $1.00 beats by $0.06. Shares -0.1% premarket. (PR)
  • Enterprise Products Partners L.P. (EPD): Q3 EPS of $0.36 misses by $0.06. Revenue of $4.6B (-27%) vs. $4.73B. (PR)
  • CenterPoint Energy (CNP): Q3 EPS of $0.31 misses by $0.01. Revenue of $1.58B (-37.3%) in-line. (PR)
  • Coca-Cola Enterprises (CCE): Q3 EPS of $0.51 beats by $0.05. Revenue of $5.57B (-3%) vs. $5.71B. (PR)
  • General Dynamics (GD): Q3 EPS of $1.48 beats by $0.08. Revenue of $7.72B (+8.1%) in-line. (PR)
  • Goodyear Tire & Rubber (GT): Q3 EPS of $0.45 beats by $0.05. Revenue of $4.38B (-15.2%) in-line. Shares +1.8% premarket. (PR)
  • Hess (HES): Q3 EPS of $1.05 vs. consensus of $0.55. Revenue of $7.27B vs. $7.75B. Shares +1.8% premarket. (PR)
  • Jones Apparel Group (JNY): Q3 EPS of $0.46 beats by $0.19. Revenue of $856M (-11.3%) vs. $867M. "We are cautiously optimistic that the holiday season will generate better financial results across the industry." Shares -13.8% premarket. (PR)
  • International Paper (IP): Q3 EPS of $0.37 beats by $0.13. Revenue of $5.92B (-13.1%) in-line. "At the end of Q3, we began to see some modest improvements in demand in some segments of our paper and packaging businesses." Shares +3.8% premarket. (PR)
  • Lazard (LAZ): Q3 EPS of $0.41 beats by $0.04. Revenue of $431M (-1.3%) vs. $400M. Believes corporate defaults will remain at high levels, on a more global scale than during the last cycle, and therefore expects that its restructuring business will continue to be very active. (PR)
  • Level 3 Communications (LVLT): Q3 EPS of -$0.10 in-line. Revenue of $916M (-14.4%) vs. $926M. Shares -4.4% premarket. (PR)
  • MeadWestvaco (MWV): Q3 EPS of $0.50 beats by $0.23. Revenue of $1.63B (-10.2%) in-line. "Given continued global economic uncertainty, future results are difficult to predict." (PR)
  • Newell Rubbermaid (NWL): Q3 EPS of $0.38 beats by $0.03. Revenue of $1.45B (-17.7%) in-line. (PR)
  • New York Community Bancorp (NYB): Q3 EPS of $0.26 in-line. "Although certain economic data suggests that the recession has ended, the Metro New York region we serve continues to be under duress." (PR)
  • Nexen (NXY): Q3 EPS of C$0.23 beats by C$0.08. Revenue of C$1.1B (-50.4%) vs. $924M. Shares -0.1% premarket. (PR)
  • Nomura (NMR): Q2 net income of ¥27.7B ($303M) vs. consensus of ¥11.5B. Revenue of ¥355B vs. ¥258B last year. Resumes ¥4/share dividend. (Bloomberg)
  • Owens Corning (OC): Q3 EPS of $0.61 beats by $0.22. Revenue of $1.35B (-17.2%) in-line. On track to surpass $160M in cost savings this year. Shares +1.5% premarket. (PR)
  • Praxair (PX): Q3 EPS of $1.02 beats by $0.02. Revenue of $2.29B (-19.8%) in-line. "Business conditions stabilized globally during the quarter... The strongest pick-up was in Asia and South America, where government stimulus programs have increased domestic demand and industrial production." (PR)
  • Qwest Communications International (Q): Q3 EPS of $0.09 beats by $0.02. Revenue of $3.05B (-9.6%) in-line. Shares +3.5% premarket. (PR)
  • SAP AG (SAP): Q3 net income of €435M vs. consensus of €454M. Sales of €2.51B vs. €2.63B. "While we are seeing signs of stabilization in the general environment, the market remains difficult. Q3 software and software-related service revenues came in lower than we expected mainly because of a particularly challenging environment in the emerging markets and Japan." Shares -7.6% premarket. (PR)
  • Southern Company (SO): Q3 EPS of $0.99 beats by $0.01. Revenue of $4.68B (-13.8%) vs. $5.5B. (PR)
  • SPX Corp. (SPW): Q3 EPS of $ beats by $. Revenue of $1.17B (-20.8%) in line. Sees full-year EPS of $3.80-4.00 vs. $3.96 consensus. "The global economic environment remains difficult and continues to impact our performance. Although some macroeconomic trends appear to be pointing toward a recovery, we expect our recovery to lag the broader economy." (PR)
  • United Microelectronics (UMC): Q3 EPS of $0.08 beats by $0.04. Revenue of $853M (+11.1%) vs. $809M. (PR)
  • WellPoint (WLP): Q3 EPS of $1.78 beats by $0.40. Revenue of $15.21B (+784%) in-line. Medical enrollment fell 1.5M to 35.3M, primarily due to the recession and a rise in unemployment. Shares -14.3% premarket. (PR)
  • Wyndham (WYN): Q3 EPS of $0.58 beats by $0.02. Revenue of $1.02B (-17.1%) in-line. Shares +1% premarket. (PR)

Earnings: Tue. After Close

  • Ace (ACE): Q3 EPS of $2.07 beats by $0.10. Revenue of $3.39B (-6%) vs. $3.33B. Expects meaningfully stronger revenue growth in Q4. Shares +2.3% AH. (PR)
  • Amkor Technology (AMKR): Q3 EPS of $0.12 misses by $0.07. Revenue of $616M (-14%) vs. $604M. Sees Q4 EPS of $0.17-0.23 vs. $0.16. Shares -1.5% AH. (PR)
  • Apollo Group (APOL): FQ4 EPS of $1.06 beats by $0.02. Revenue of $1.08B (+30%) vs. $1.03B. Announces an informal SEC inquiry into revenue recognition practices. Shares -19.8% AH. (PR)
  • Boston Properties (BXP): Q3 FFO of $1.13 beats by $0.03. Revenue of $359M (+6%) vs. $353M. Sees Q4 FFO of $1.04-1.06 vs. $1.09. (PR)
  • Century Aluminum Company (CENX): Q3 EPS of $0.45. Revenue of $229M (-59%) vs. $225M. Results impacted by $55.6M net after-tax benefit related to contract replacement. Shares +3.8% AH. (PR)
  • Cephalon (CEPH): Q3 EPS of $1.62 beats by $0.21. Revenue of $549M (+10%) vs. $559M. Sees full-year sales of $2.125B-2.175B vs. $2.22B. Shares +1.4% AH. (PR)
  • Chicago Bridge & Iron (CBI): Q3 EPS of $0.42 beats by $0.03. Revenue of $1B (-38%) vs. $1.1B. Shares +5.4% AH. (PR)
  • Dreamworks Animation (DWA): Q3 EPS of $0.23 beats by $0.07. Revenue of $135M (-10.6%) vs. $129M. Shares +0.4% AH. (PR)
  • E*TRADE Financial (ETFC): Q3 EPS of -$0.05 beats by $0.01. At-risk delinquencies declined by 10% and provision for loan losses decreased by $57M to $347M. Shares +0.6% AH. (PR)
  • Fiserv (FISV): Q3 EPS of $0.92 in-line. Revenue of $992M (-5%) vs. $1.05B. Shares -2.6% AH. (PR)
  • Harris (HRS): FQ1 EPS of $0.83 beats by $0.06. Revenue of $1.2B (-3%) in-line. Shares +5.4% AH. (PR)
  • Illumina (ILMN): Q3 EPS of $0.17 misses by $0.03. Revenue of $158M (+5%) vs. $167M. Shares -14.8% AH. (PR)
  • Integrated Device Technology (IDTI): FQ2 EPS of $0.07 beats by $0.05. Revenue of $140M (-30%) vs. $131M. Shares +4.2% AH. (PR)
  • Massey Energy Company (MEE): Q3 EPS of $0.19 beats by $0.01. Revenue of $642M (-16%) vs. $677M. Shares -7.4% AH. (PR)
  • McKesson (MCK): FQ2 EPS of $1.11 beats by $0.09. Revenue of $27.1B (+1.9%) vs. $26.75B. Sees full-year EPS of $4.45-4.60 vs. consensus of $4.29. Shares +1.9% AH. (PR)
  • Molex (MOLX): FQ1 EPS of $0.18 beats by $0.03. Revenue of $674M (-20%) vs. $661M. Sees Q2 EPS of $0.11-0.15 vs. $0.19, including pretax restructuring charge of about $0.07 after tax. Shares -1% AH. (PR)
  • Nalco Company (NLC): Q3 EPS of $0.20 misses by $0.05. Revenue of $957M (-14%) vs. $961M. (PR)
  • Norfolk Southern (NSC): Q3 EPS of $0.81 beats by $0.03. Revenue of $2.1B (-29%) in-line. Shares +1.8% AH. (PR)
  • Panera Bread Company (PNRA): Q3 EPS of $0.61 beats by $0.03. Revenue of $335M (+6%) vs. $334M. Same-store sales increased 3.3%. Sees Q4 EPS of $0.85-0.87 vs. $0.85, and full-year EPS of $3.05-3.15 vs. $3.04. Shares +5.2% AH. (PR)
  • Pharmaceutical Product Development (PPDI): Q3 EPS of $0.32 in-line. Revenue of $341M (-13%) vs. $334M. Sees full-year EPS of $1.38-1.40 vs. $1.34, on revenue of $1.29B-1.32B vs. $1.34B. Shares +0.2% AH. (PR)
  • RF Micro Devices (RFMD): FQ2 EPS of $0.13 beats by $0.04. Revenue of $255M (-6%) vs. $234M. Shares +7.1% AH. (PR)
  • ValueClick (VCLK): Q3 EPS of $0.15 beats by $0.01. Revenue of $130M (-12.1%) vs. $129M. Sees Q4 EPS of $0.15-0.16 vs. consensus of $0.17 on revenue of $128-138M vs. $142M. Shares +1.8% AH. (PR)
  • Visa (V): FQ4 EPS of $0.74 beats by $0.02. Revenue of $1.9B (+10%) vs. $1.8B. Sees 2010 revenue growth at lower end of 11-15% range. Sees 2011 growth of more than 20%. Shares +1.9% AH. (PR)

Today's Markets

Overseas markets moved lower Wednesday and futures are under pressure.

]]> Wed, 28 Oct 2009 07:17:56 -0400 SA Editor Eli Hoffmann

  • GMAC needs third lifeline. GMAC Financial Services and the Treasury are reportedly in advanced talks to prop up the auto-lender with its third helping of taxpayer money, making it the first of the stress-tested banks to need additional government capital. Treasury will likely inject another $2.8-5.6B into GMAC in exchange for preferred shares, bringing its total investment in GMAC thus far to $15.3-18.1B, for which it currently owns 35.4% of the firm. Sources say the FDIC has also agreed to backstop another $2.9B of GMAC's debt to facilitate day-to-day lending. The government's willingness to deepen taxpayer exposure to GMAC reflects the troubled lender's importance to the revival of the auto industry.
  • Consumer confidence dips. A lower-than-expected consumer confidence reading sent a chill through markets Tuesday. Conference Board's index came in at 47.7, down from 53.4 a month ago, and lower than consensus estimates of 53.2. A plunge in expectations (65.7 vs. 73.3 in Sept.) led the way down. "Consumers' assessment of present-day conditions has grown less favorable, with labor market conditions playing a major role in this grimmer assessment," the group said, noting its Present Situation Index is now at a 26-year low. Analysts struggled to find an obvious explanation for the decline, but noted the drop didn't bode well for recovery hopes.
  • Risk appetite withers. State Street's investor confidence index fell 10 points to 108.4, the lowest since April, with the most pronounced decline seen among North American investors (-12.8 to 101.1). European investors were also much more subdued (-9.3 to 101.8), but confidence rose among Asian investors, albeit to a level that still trails the U.S. and Europe (+2.4 to 95.3). "Institutional investors have paused to take stock," index co-developer Ken Froot said. "While the U.S. earnings season has been relatively robust so far, the number of positive surprises that have been observed in employment, retail sales, manufacturing and trade figures has diminished considerably, and this may be influencing investor risk appetite."
  • Easing Hilton's towering debt load. Sources say Blackstone (BX) is in talks with lenders to shave about $5B off Hilton Worldwide's $20B debt load. Specifically, Blackstone is considering coughing up another $800M in equity to buy back debt at a discount (on top of its $5.6B original investment), and would like to extend debt maturing in 2013 to 2016. With capital markets reopening over the past six months, private-equity firms are using a variety of schemes (exchange offers, repurchases, tender offers) to refinance and extend the maturities on highly-leveraged debt taken on during the heyday, staving off default.
  • Panel backs hedge-fund clampdown. The House Financial Services Committee overwhelmingly passed a bill that would require advisers to hedge funds, private equity and offshore funds to register with regulators, bringing some transparency to the loosely-policed industry. The bill, however, exempts venture capital funds and funds with less than $150M - which SEC chief Mary Schapiro warned "could come back to haunt investors in later years."
  • Tackling too-big-to-fail. Rep. Barney Frank unveiled legislation to monitor and dissolve systemically critical financial institutions. Under the proposal, costs for taking over and euthanizing a failed bank would be paid for by shareholders and bondholders, with taxpayers temporarily covering the overflow until an assessment is rendered against the failed bank's surviving peers. A council of regulators - including the FDIC, Treasury, Fed and SEC - would be in charge of monitoring the conglomerates and invoking a wind-down if necessary.
  • That's a good czar. While so-called pay czar Kenneth Feinberg's new rules for TARP backed firms cut compensation by about half, they also boosted base salaries by 14% to an average of $438K/year after executives complained, according to an analysis in today's WSJ. The move appears to contradict Feinberg's stated goal of tying pay to long-term performance, and "deepens the confusion and skepticism" surrounding the types of pay systems the government is promoting.
  • Ford shows why it's #1. Consumer Reports' much-awaited yearly car reliability survey held few surprises, with foreign automakers dominating its top-10 list, and domestic brands prominently featured on its least-reliable tally. Scion took top spot, followed by Honda (HMC), Toyota (TM) and Infiniti (NSANY). Ford (F), at #10, was the only U.S. carmaker to make the grade. Least reliable brands were Chrysler, Cadillac, Dodge and Jeep. Media reports yesterday claimed Fiat models will drive Chrysler's turnaround efforts, but with new cars not due until 2012, it's unclear whether Chrysler has enough staying power in its balance sheet.
  • Ruiz pegged as AMD insider. Sources say former AMD (AMD) CEO Hector Ruiz is the insider government officials have identified as providing nonpublic information to Galleon's insider trading scheme. Prosecutors released fragments of recorded conversations between an unnamed AMD executive and a Galleon employee in which they allegedly discuss the timing of the spinoff of AMD’s plants before the deal was announced in Sept. 2008. Ruiz hasn’t been charged, and prosecutors don’t say he profited from insider trading.
  • Gloom on economy spreads. Americans are growing increasingly pessimistic about the economy after a mild upswing in September, according to WSJ/NBC's monthly poll released Wednesday. For the first time during the Obama presidency, a majority of those polled now see the country as being on the wrong track. Fifty-eight percent think the economic slide still has a ways to go, up from 52% in September, while only 29% think we've hit bottom, down from 35%.
  • Mortgage apps drop for second straight week. Mortgage applications fell another 12.3% following a 13.7% drop last week, even as the average rate for 30-year mortgages inched down to 5.04% from 5.07% a week ago. Refinancing was 16.2% lower.
  • Ford picks Geely. Ford (F) selected a group led by China's Geely as the preferred bidder for its Volvo unit, a senior Geely executive said. Geely and Ford will now enter into exclusive negotiations over Volvo.

Earnings: Wed. Before Open

  • ArcelorMittal (MT): Q3 income of $1.59B vs. consensus of $1.78B. Sees Q4 income of $2-2.4B. "We have seen the first signs of recovery in Q3... We should continue to see further gradual improvement through 2010, although the operating environment remains challenging." Shares -0.8% premarket. (PR)
  • Ashland (ASH): FQ4 EPS of $0.96 beats by $0.06. Revenue of $2.11B (-4.6%) in-line. "Demand appears to be showing some signs of growth in many end markets." (PR)
  • BorgWarner (BWA): Q3 EPS of $0.15 beats by $0.05. Revenue of $1.03B (-22%) in-line. "We continue to be cautiously optimistic about Q4." (PR)
  • ConocoPhillips (COP): Q3 EPS of $1.00 beats by $0.06. Shares -0.1% premarket. (PR)
  • Enterprise Products Partners L.P. (EPD): Q3 EPS of $0.36 misses by $0.06. Revenue of $4.6B (-27%) vs. $4.73B. (PR)
  • CenterPoint Energy (CNP): Q3 EPS of $0.31 misses by $0.01. Revenue of $1.58B (-37.3%) in-line. (PR)
  • Coca-Cola Enterprises (CCE): Q3 EPS of $0.51 beats by $0.05. Revenue of $5.57B (-3%) vs. $5.71B. (PR)
  • General Dynamics (GD): Q3 EPS of $1.48 beats by $0.08. Revenue of $7.72B (+8.1%) in-line. (PR)
  • Goodyear Tire & Rubber (GT): Q3 EPS of $0.45 beats by $0.05. Revenue of $4.38B (-15.2%) in-line. Shares +1.8% premarket. (PR)
  • Hess (HES): Q3 EPS of $1.05 vs. consensus of $0.55. Revenue of $7.27B vs. $7.75B. Shares +1.8% premarket. (PR)
  • Jones Apparel Group (JNY): Q3 EPS of $0.46 beats by $0.19. Revenue of $856M (-11.3%) vs. $867M. "We are cautiously optimistic that the holiday season will generate better financial results across the industry." Shares -13.8% premarket. (PR)
  • International Paper (IP): Q3 EPS of $0.37 beats by $0.13. Revenue of $5.92B (-13.1%) in-line. "At the end of Q3, we began to see some modest improvements in demand in some segments of our paper and packaging businesses." Shares +3.8% premarket. (PR)
  • Lazard (LAZ): Q3 EPS of $0.41 beats by $0.04. Revenue of $431M (-1.3%) vs. $400M. Believes corporate defaults will remain at high levels, on a more global scale than during the last cycle, and therefore expects that its restructuring business will continue to be very active. (PR)
  • Level 3 Communications (LVLT): Q3 EPS of -$0.10 in-line. Revenue of $916M (-14.4%) vs. $926M. Shares -4.4% premarket. (PR)
  • MeadWestvaco (MWV): Q3 EPS of $0.50 beats by $0.23. Revenue of $1.63B (-10.2%) in-line. "Given continued global economic uncertainty, future results are difficult to predict." (PR)
  • Newell Rubbermaid (NWL): Q3 EPS of $0.38 beats by $0.03. Revenue of $1.45B (-17.7%) in-line. (PR)
  • New York Community Bancorp (NYB): Q3 EPS of $0.26 in-line. "Although certain economic data suggests that the recession has ended, the Metro New York region we serve continues to be under duress." (PR)
  • Nexen (NXY): Q3 EPS of C$0.23 beats by C$0.08. Revenue of C$1.1B (-50.4%) vs. $924M. Shares -0.1% premarket. (PR)
  • Nomura (NMR): Q2 net income of ¥27.7B ($303M) vs. consensus of ¥11.5B. Revenue of ¥355B vs. ¥258B last year. Resumes ¥4/share dividend. (Bloomberg)
  • Owens Corning (OC): Q3 EPS of $0.61 beats by $0.22. Revenue of $1.35B (-17.2%) in-line. On track to surpass $160M in cost savings this year. Shares +1.5% premarket. (PR)
  • Praxair (PX): Q3 EPS of $1.02 beats by $0.02. Revenue of $2.29B (-19.8%) in-line. "Business conditions stabilized globally during the quarter... The strongest pick-up was in Asia and South America, where government stimulus programs have increased domestic demand and industrial production." (PR)
  • Qwest Communications International (Q): Q3 EPS of $0.09 beats by $0.02. Revenue of $3.05B (-9.6%) in-line. Shares +3.5% premarket. (PR)
  • SAP AG (SAP): Q3 net income of €435M vs. consensus of €454M. Sales of €2.51B vs. €2.63B. "While we are seeing signs of stabilization in the general environment, the market remains difficult. Q3 software and software-related service revenues came in lower than we expected mainly because of a particularly challenging environment in the emerging markets and Japan." Shares -7.6% premarket. (PR)
  • Southern Company (SO): Q3 EPS of $0.99 beats by $0.01. Revenue of $4.68B (-13.8%) vs. $5.5B. (PR)
  • SPX Corp. (SPW): Q3 EPS of $ beats by $. Revenue of $1.17B (-20.8%) in line. Sees full-year EPS of $3.80-4.00 vs. $3.96 consensus. "The global economic environment remains difficult and continues to impact our performance. Although some macroeconomic trends appear to be pointing toward a recovery, we expect our recovery to lag the broader economy." (PR)
  • United Microelectronics (UMC): Q3 EPS of $0.08 beats by $0.04. Revenue of $853M (+11.1%) vs. $809M. (PR)
  • WellPoint (WLP): Q3 EPS of $1.78 beats by $0.40. Revenue of $15.21B (+784%) in-line. Medical enrollment fell 1.5M to 35.3M, primarily due to the recession and a rise in unemployment. Shares -14.3% premarket. (PR)
  • Wyndham (WYN): Q3 EPS of $0.58 beats by $0.02. Revenue of $1.02B (-17.1%) in-line. Shares +1% premarket. (PR)

Earnings: Tue. After Close

  • Ace (ACE): Q3 EPS of $2.07 beats by $0.10. Revenue of $3.39B (-6%) vs. $3.33B. Expects meaningfully stronger revenue growth in Q4. Shares +2.3% AH. (PR)
  • Amkor Technology (AMKR): Q3 EPS of $0.12 misses by $0.07. Revenue of $616M (-14%) vs. $604M. Sees Q4 EPS of $0.17-0.23 vs. $0.16. Shares -1.5% AH. (PR)
  • Apollo Group (APOL): FQ4 EPS of $1.06 beats by $0.02. Revenue of $1.08B (+30%) vs. $1.03B. Announces an informal SEC inquiry into revenue recognition practices. Shares -19.8% AH. (PR)
  • Boston Properties (BXP): Q3 FFO of $1.13 beats by $0.03. Revenue of $359M (+6%) vs. $353M. Sees Q4 FFO of $1.04-1.06 vs. $1.09. (PR)
  • Century Aluminum Company (CENX): Q3 EPS of $0.45. Revenue of $229M (-59%) vs. $225M. Results impacted by $55.6M net after-tax benefit related to contract replacement. Shares +3.8% AH. (PR)
  • Cephalon (CEPH): Q3 EPS of $1.62 beats by $0.21. Revenue of $549M (+10%) vs. $559M. Sees full-year sales of $2.125B-2.175B vs. $2.22B. Shares +1.4% AH. (PR)
  • Chicago Bridge & Iron (CBI): Q3 EPS of $0.42 beats by $0.03. Revenue of $1B (-38%) vs. $1.1B. Shares +5.4% AH. (PR)
  • Dreamworks Animation (DWA): Q3 EPS of $0.23 beats by $0.07. Revenue of $135M (-10.6%) vs. $129M. Shares +0.4% AH. (PR)
  • E*TRADE Financial (ETFC): Q3 EPS of -$0.05 beats by $0.01. At-risk delinquencies declined by 10% and provision for loan losses decreased by $57M to $347M. Shares +0.6% AH. (PR)
  • Fiserv (FISV): Q3 EPS of $0.92 in-line. Revenue of $992M (-5%) vs. $1.05B. Shares -2.6% AH. (PR)
  • Harris (HRS): FQ1 EPS of $0.83 beats by $0.06. Revenue of $1.2B (-3%) in-line. Shares +5.4% AH. (PR)
  • Illumina (ILMN): Q3 EPS of $0.17 misses by $0.03. Revenue of $158M (+5%) vs. $167M. Shares -14.8% AH. (PR)
  • Integrated Device Technology (IDTI): FQ2 EPS of $0.07 beats by $0.05. Revenue of $140M (-30%) vs. $131M. Shares +4.2% AH. (PR)
  • Massey Energy Company (MEE): Q3 EPS of $0.19 beats by $0.01. Revenue of $642M (-16%) vs. $677M. Shares -7.4% AH. (PR)
  • McKesson (MCK): FQ2 EPS of $1.11 beats by $0.09. Revenue of $27.1B (+1.9%) vs. $26.75B. Sees full-year EPS of $4.45-4.60 vs. consensus of $4.29. Shares +1.9% AH. (PR)
  • Molex (MOLX): FQ1 EPS of $0.18 beats by $0.03. Revenue of $674M (-20%) vs. $661M. Sees Q2 EPS of $0.11-0.15 vs. $0.19, including pretax restructuring charge of about $0.07 after tax. Shares -1% AH. (PR)
  • Nalco Company (NLC): Q3 EPS of $0.20 misses by $0.05. Revenue of $957M (-14%) vs. $961M. (PR)
  • Norfolk Southern (NSC): Q3 EPS of $0.81 beats by $0.03. Revenue of $2.1B (-29%) in-line. Shares +1.8% AH. (PR)
  • Panera Bread Company (PNRA): Q3 EPS of $0.61 beats by $0.03. Revenue of $335M (+6%) vs. $334M. Same-store sales increased 3.3%. Sees Q4 EPS of $0.85-0.87 vs. $0.85, and full-year EPS of $3.05-3.15 vs. $3.04. Shares +5.2% AH. (PR)
  • Pharmaceutical Product Development (PPDI): Q3 EPS of $0.32 in-line. Revenue of $341M (-13%) vs. $334M. Sees full-year EPS of $1.38-1.40 vs. $1.34, on revenue of $1.29B-1.32B vs. $1.34B. Shares +0.2% AH. (PR)
  • RF Micro Devices (RFMD): FQ2 EPS of $0.13 beats by $0.04. Revenue of $255M (-6%) vs. $234M. Shares +7.1% AH. (PR)
  • ValueClick (VCLK): Q3 EPS of $0.15 beats by $0.01. Revenue of $130M (-12.1%) vs. $129M. Sees Q4 EPS of $0.15-0.16 vs. consensus of $0.17 on revenue of $128-138M vs. $142M. Shares +1.8% AH. (PR)
  • Visa (V): FQ4 EPS of $0.74 beats by $0.02. Revenue of $1.9B (+10%) vs. $1.8B. Sees 2010 revenue growth at lower end of 11-15% range. Sees 2011 growth of more than 20%. Shares +1.9% AH. (PR)

Today's Markets

Overseas markets moved lower Wednesday and futures are under pressure.


Complete Story »]]> ACE AMD AMKR APOL ASH BWA BX BXP CBI CCE CENX CEPH CNP COP DIA DWA EPD ETFC F FISV GD GLD GT HES HMC HRS IDTI ILMN IP JNY LAZ LVLT MCK MEE MOLX MT MWV NLC NMR NSANY NSC NWL NXY NYB OC PNRA PPDI PX Q QQQQ RFMD SAP SO SPW SPY TM UMC USO V VCLK WLP WYN SA Editor Eli Hoffmann Visa Incorporated F4Q09 (Qtr End 09/30/09) Earnings Call Transcript http://seekingalpha.com/article/169320-visa-incorporated-f4q09-qtr-end-09-30-09-earnings-call-transcript?source=feed 169320 Visa Incorporated (V)

F4Q09 Earnings Call

October 27, 2009 5:00 pm ET

]]> Tue, 27 Oct 2009 21:48:07 -0400 Visa Incorporated (V)

F4Q09 Earnings Call

October 27, 2009 5:00 pm ET


Complete Story »]]> V Earnings Preview: Visa http://seekingalpha.com/article/169135-earnings-preview-visa?source=feed 169135 Visa (V) is expected to report Q4 earnings Tuesday, October 27 after the market close with a conference call scheduled for 5 pm ET.

Guidance

Analysts are looking for EPS of 72c on revenue of $1.78B. The consensus range is 67c-77c for EPS, and $1.62B-$1.84B for revenue, according to First Call. Positive drivers for Visa this quarter include increasing transaction volumes and an uptick in consumer spending. Negative drivers are a weak consumer environment and an employment situation that is not quickly improving.

]]> Tue, 27 Oct 2009 10:49:33 -0400 theflyonthewall.com Visa (V) is expected to report Q4 earnings Tuesday, October 27 after the market close with a conference call scheduled for 5 pm ET.

Guidance

Analysts are looking for EPS of 72c on revenue of $1.78B. The consensus range is 67c-77c for EPS, and $1.62B-$1.84B for revenue, according to First Call. Positive drivers for Visa this quarter include increasing transaction volumes and an uptick in consumer spending. Negative drivers are a weak consumer environment and an employment situation that is not quickly improving.


Complete Story »]]> V theflyonthewall.com Earnings Will Sink Blue Nile's Stock http://seekingalpha.com/article/169101-earnings-will-sink-blue-nile-s-stock?source=feed 169101 I woke up this morning and went cruising in search of the next BIDU, i.e. a stock with growth but an insanely high P/E that is too high for the earnings growth. Instead, I found a stock that has zero or negative growth and still an insanely high P/E.

Pull up a 2 year chart of NILE showing the rolling EPS. You will see yearly EPS of $0.70 - $1.00. You will also notice that when their trailing EPS was $1.00 the stock traded between $20 and $55 a share.

]]> Tue, 27 Oct 2009 09:39:22 -0400 Stock Yid Stock Yid submits:

I woke up this morning and went cruising in search of the next BIDU, i.e. a stock with growth but an insanely high P/E that is too high for the earnings growth. Instead, I found a stock that has zero or negative growth and still an insanely high P/E.

Pull up a 2 year chart of NILE showing the rolling EPS. You will see yearly EPS of $0.70 - $1.00. You will also notice that when their trailing EPS was $1.00 the stock traded between $20 and $55 a share.


Complete Story »]]> AMZN BIDU LNN MA NILE V Stock Yid More Reasons to Break the Plastic Habit http://seekingalpha.com/article/168775-more-reasons-to-break-the-plastic-habit?source=feed 168775 More reasons to hate big banks and to do whatever it takes to get your credit cards paid off as quickly as possible and never, ever again carry a balance are provided in this column by David Lazarus in the LA Times.

Ed Myska works as executive vice president of El Segundo's Bank of Manhattan, so it's pretty fair to say that he knows a thing or two about keeping his financial house in order.

]]> Mon, 26 Oct 2009 06:16:04 -0400 Tim Iacono Tim Iacono submits:

More reasons to hate big banks and to do whatever it takes to get your credit cards paid off as quickly as possible and never, ever again carry a balance are provided in this column by David Lazarus in the LA Times.

Ed Myska works as executive vice president of El Segundo's Bank of Manhattan, so it's pretty fair to say that he knows a thing or two about keeping his financial house in order.


Complete Story »]]> BAC C MA V Tim Iacono Earnings Season Option Plays for Tuesday and Wednesday http://seekingalpha.com/article/168752-earnings-season-option-plays-for-tuesday-and-wednesday?source=feed 168752 In my latest two blog posts Monday and Wednesday, I listed some stocks which I would be willing to go long by selling the puts right before the stock reported earnings. Keep in mind these are companies which I believed would have a positive reaction to the earnings, however if the stock moved sideways on the number this strategy would still likely return a gain the following day. This is because I am taking advantage of the increased levels of implied volatility factored into the option premium before earnings. If you missed them, be sure to check out Monday's blog post here, and Wednesday's here. So far this earnings season, the overall results have been very positive, even on eBay (EBAY), which sold off nearly 10% after earnings; I was able to purchase back the puts options (closed the position) for a $4 per contract gain the following day. The best results are of course when has a very positive reaction to the report and pops. My best trades so far this earnings season include the trades indicated in the two previous blog posts on the following companies:

The put options sold on the stocks above were quickly closed within 2 hours after market open following the earnings report (some for as low as $1 per option contract). In most of the cases, the call options purchased were also sold the following day, but I continue to hold both the Google and Apple call options. In this post, I will lay out some trades for Tuesday and Wednesday (October: 27 and 28).

]]> Mon, 26 Oct 2009 04:48:52 -0400 Marco Hickey Marco Hickey submits:

In my latest two blog posts Monday and Wednesday, I listed some stocks which I would be willing to go long by selling the puts right before the stock reported earnings. Keep in mind these are companies which I believed would have a positive reaction to the earnings, however if the stock moved sideways on the number this strategy would still likely return a gain the following day. This is because I am taking advantage of the increased levels of implied volatility factored into the option premium before earnings. If you missed them, be sure to check out Monday's blog post here, and Wednesday's here. So far this earnings season, the overall results have been very positive, even on eBay (EBAY), which sold off nearly 10% after earnings; I was able to purchase back the puts options (closed the position) for a $4 per contract gain the following day. The best results are of course when has a very positive reaction to the report and pops. My best trades so far this earnings season include the trades indicated in the two previous blog posts on the following companies:

The put options sold on the stocks above were quickly closed within 2 hours after market open following the earnings report (some for as low as $1 per option contract). In most of the cases, the call options purchased were also sold the following day, but I continue to hold both the Google and Apple call options. In this post, I will lay out some trades for Tuesday and Wednesday (October: 27 and 28).


Complete Story »]]> AAPL AKS AMZN BAC BP BWLD CAT COP DIA EBAY ESRX FSLR GLD GOOG IWM MSFT NSC PCU PCX QQQQ SNDK SPY SQM TLT TXN TXT UA V WLT X XLF XLK YHOO Marco Hickey Julian Robertson: Bearish on Gold and Bonds, Bullish on Credit Cards and Galleon Arrests http://seekingalpha.com/article/168659-julian-robertson-bearish-on-gold-and-bonds-bullish-on-credit-cards-and-galleon-arrests?source=feed 168659 He doesn’t have much company among his peers, but hedge fund legend Julian Robertson is decidedly bearish on gold.

Many other hedge fund managers have made big bets on the precious metal this year, including John Paulson, Daniel Loeb and David Einhorn. But Robertson called the enthusiasm for gold “certifiably crazy” at the Value Investing Congress in New York this week.

]]> Sun, 25 Oct 2009 06:32:29 -0400 FINalternatives FINalternatives submits:

He doesn’t have much company among his peers, but hedge fund legend Julian Robertson is decidedly bearish on gold.

Many other hedge fund managers have made big bets on the precious metal this year, including John Paulson, Daniel Loeb and David Einhorn. But Robertson called the enthusiasm for gold “certifiably crazy” at the Value Investing Congress in New York this week.


Complete Story »]]> GLD GOOG INTC MA V FINalternatives Next Week's Key Earnings Reports http://seekingalpha.com/article/168574-next-week-s-key-earnings-reports?source=feed 168574 More companies are set to report earnings next week than this week, but the big names have already come and gone.

There are a lot of second-tier reports to focus on next week, however, and below we provide a list of the names that investors will be following most. As shown, Corning (GLW) and Verizon (VZ) kick off the week with reports on Monday morning, while Baidu (BIDU) will surely be active after the close. Johnson Controls (JCI), Under Armour (UA), Valero Energy (VLO), and United States Steel (X) report Tuesday morning, and Visa (V) will give us some important data on consumer spending on Tuesday afternoon. General Dynamics (GD), International Paper (IP), WellPoint (WLP) report Wednesday morning, while there aren't any big hitters reporting Wednesday after the close. On Thursday, we get reports from Chicago Mercantile Exchange Holdings (CME), Eastman Kodak (EK), Motorola (MOT), Newmont Mining (NEM), Office Depot (ODP), Procter and Gamble (PG), Sprint Nextel (S), and Exxon Mobil (XOM), which will be the biggest day of the week for earnings. Finally, Chevron (CVX) finishes off the week with earnings on Friday before the open.

]]> Fri, 23 Oct 2009 16:13:49 -0400 Bespoke Investment Group Hickey and Walters (Bespoke) submit:

More companies are set to report earnings next week than this week, but the big names have already come and gone.

There are a lot of second-tier reports to focus on next week, however, and below we provide a list of the names that investors will be following most. As shown, Corning (GLW) and Verizon (VZ) kick off the week with reports on Monday morning, while Baidu (BIDU) will surely be active after the close. Johnson Controls (JCI), Under Armour (UA), Valero Energy (VLO), and United States Steel (X) report Tuesday morning, and Visa (V) will give us some important data on consumer spending on Tuesday afternoon. General Dynamics (GD), International Paper (IP), WellPoint (WLP) report Wednesday morning, while there aren't any big hitters reporting Wednesday after the close. On Thursday, we get reports from Chicago Mercantile Exchange Holdings (CME), Eastman Kodak (EK), Motorola (MOT), Newmont Mining (NEM), Office Depot (ODP), Procter and Gamble (PG), Sprint Nextel (S), and Exxon Mobil (XOM), which will be the biggest day of the week for earnings. Finally, Chevron (CVX) finishes off the week with earnings on Friday before the open.


Complete Story »]]> BIDU CME CVX EK GD GLW IP JCI MOT NEM ODP PG S UA V VLO VZ WLP X XOM Bespoke Investment Group 15 Attractive Stocks for Increasing Dividends http://seekingalpha.com/article/168555-15-attractive-stocks-for-increasing-dividends?source=feed 168555 Dividends from a quality, well-diversified portfolio are much more predictable than capital gains and best of all, they are passive. You don’t have to do anything, they just show up in your brokerage account each quarter. Inflation? Not to worry, the good companies routinely raise their dividends well in excess of the inflation rate.

]]> Fri, 23 Oct 2009 14:55:03 -0400 Dividends4Life Dividends4Life submits:

Dividends from a quality, well-diversified portfolio are much more predictable than capital gains and best of all, they are passive. You don’t have to do anything, they just show up in your brokerage account each quarter. Inflation? Not to worry, the good companies routinely raise their dividends well in excess of the inflation rate.


Complete Story »]]> ARTNA BRO BTU EEI EPB EV HEP MATW PAA PPG SCL SHEN THG UFPI V Dividends4Life 21 Breakout Stocks to Watch, And How to Generate Income with Apple LEAP Options http://seekingalpha.com/article/168437-21-breakout-stocks-to-watch-and-how-to-generate-income-with-apple-leap-options?source=feed 168437 Here is a list of 21 stocks which traded higher Thursday on unusually higher volume. I have added all 21 of these stocks to my watch list (and invite you to as well), but chose only one to write about in detail in this post. This post requires the knowledge of stock options. To learn more about the option strategies outlined in this post, risks, pricing, calculations, other strategies, and options in general, click here.

The table below shows the company, ticker, Thursday's per share % increase, and Thursday's volume increase (% increased compared to 50 day average). For your convenience I have ranked the stocks in order from greatest to least volume % change.

]]> Fri, 23 Oct 2009 04:02:40 -0400 Marco Hickey Marco Hickey submits:

Here is a list of 21 stocks which traded higher Thursday on unusually higher volume. I have added all 21 of these stocks to my watch list (and invite you to as well), but chose only one to write about in detail in this post. This post requires the knowledge of stock options. To learn more about the option strategies outlined in this post, risks, pricing, calculations, other strategies, and options in general, click here.

The table below shows the company, ticker, Thursday's per share % increase, and Thursday's volume increase (% increased compared to 50 day average). For your convenience I have ranked the stocks in order from greatest to least volume % change.


Complete Story »]]> AAPL ALXN AXP BAC BQI CAT CHRS DIA ECTX EW EWBC FFIV GE GLD GOOG GR GS IWM JCG JEF LEI LZ MA MDY NVLS NYT PNC QQQQ SKX SPY TLT TMRK TNB TNS V XLE XLF XLK Marco Hickey Julian Robertson Likes Mastercard, Visa, Intel and Google Stock http://seekingalpha.com/article/168125-julian-robertson-likes-mastercard-visa-intel-and-google-stock?source=feed 168125

Julian Robertson is the former head of Tiger Management Corp., one of the first hedge funds. He is best known for turning $8MM in seed capital into $22B at the peak of his company’s existence in 1998. Ironically, his refusal to buy into the tech bubble proved to be the cause of his downfall. He was of course, ultimately proven right. Today, he spends his billions in philanthropic efforts.

Robertson made waves in a late 2007 when he called for a “doozy of a recession”. At the time, it seemed like a rather shocking statement as the slow-down in the economy appeared to be relatively benign. We all know what happened next. Robertson had shorted CDS and sub-prime securities and made millions in the downturn. Robertson was unfazed by the downturn as he then turned bullish on certain equities and was a dip buyer in late 2008 and early 2009. He has proven prescient throughout his career and the last few years are nothing more than the cherry on top.

]]> Thu, 22 Oct 2009 09:38:43 -0400 The Pragmatic Capitalist

Julian Robertson is the former head of Tiger Management Corp., one of the first hedge funds. He is best known for turning $8MM in seed capital into $22B at the peak of his company’s existence in 1998. Ironically, his refusal to buy into the tech bubble proved to be the cause of his downfall. He was of course, ultimately proven right. Today, he spends his billions in philanthropic efforts.

Robertson made waves in a late 2007 when he called for a “doozy of a recession”. At the time, it seemed like a rather shocking statement as the slow-down in the economy appeared to be relatively benign. We all know what happened next. Robertson had shorted CDS and sub-prime securities and made millions in the downturn. Robertson was unfazed by the downturn as he then turned bullish on certain equities and was a dip buyer in late 2008 and early 2009. He has proven prescient throughout his career and the last few years are nothing more than the cherry on top.


Complete Story »]]> AAPL GLD GOOG GS INTC MA V The Pragmatic Capitalist