Ten Reasons I'm Buying Activision Blizzard [View article]
Looking at this from a macro perspective I expect a market dip with a price target on ATVI around $10. Once it reaches this PT start accumulating, further, the Jan 11 puts @10 carry a premium of $1.20. Worst case scenario ATVI is owned at $8.80 on Jan 11. This price would be a few pennies away from the low the stock reached in January of 09.
In order to stop counterparties from borrowing shares long holders must call their broker and have the shares held in a cash account. All securties are held in a margin account unless otherwise specified by the client, if shares are in margin the brokerage house has the right to lend the shares out.
We have seen the first leg down in the market, defaults will rise in the near future. I was speaking to a fellow lawyer who specializes in bankruptcys and he has seen an increase over the past 6 months filing. At first it was those who couldnt afford their mortgage period, the last few months, filings have increased and it has come from people losing their jobs. This is just starting to hit the economy.
Huge reduction in operating expenses: Pandit iterated that they have reduced expenses by 25%. In the past several months Citi has cut its expenses by almost $4 billion per quarter. If Citi can keep or reduce the last quarter number of $12 bill. expenses, this will further increase bottom line numbers.
Credit card losses seem to have stabilized. Citi was the only big bank that had the same default rate on credit cards as April ( as opposed to BAC for example), delinquencies rates fell for the second month in a row (remember that delinquencies are directly correlated with the real credit losses, not the default rates). In addition, Citi has limited exposure to commercial real estate (only 2.5% out of the estimated stress test losses).
Citi has greatly reduced their risk exposure, this is evident in the 1Q data.
8 Takeaways from Nassim Taleb CNBC Interview [View article]
Good synopsis. The better than expected results for retailers and economic reports are due to the stimulus package not real wage increases. As the unemployment number showed, the US is still losing jobs. Its funny how the positive spin on the story was that the US "ONLY" lost 200,000+ jobs instead of 500,000. Further what happens once all the stimulus money runs out if the underlying issues are not fixed?
Sell Off Ahead? 25 Ways to Profit and Protect from a Stock Market Correction [View article]
Agree with the sell off:
Dow Jones Stoxx 600 Index traded at the most expensive relative to earnings in almost six years.Traders are betting the VIX, a gauge of expected stock swings, will increase 13 percent in the next five weeks. The better than expected results for retailers and economic reports are due to the stimulus package not real wage increases. As the unemployment number showed, the US is still losing jobs. Its funny how the positive spin on the story was that the US "ONLY" lost 200,000+ jobs instead of 500,000.
Consumer Bankruptcy Filings Hit 4 Year High [View article]
The better than expected results for retailers and economic reports are due to the stimulus package not real wage increases. As the unemployment number showed, the US is still losing jobs. Its funny how the positive spin on the story was that the US "ONLY" lost 200,000+ jobs instead of 500,000.
Who's Blowing This Bubble - And When Will It Pop? [View article]
E quity markets have rallied 46% since their March lows. A 20% correction from these levels will likely occur between now and September (Dow @ 9,370 Nasdaq @ 2,000). The fastest climbing stocks have been AAPL 165 and GS 166 , look to short. September is the toughest time in the calendar for stocks.
There are a few blockbuster games being released in the second half of 09 which should bode well for GME bottom line. As revenues fill up the balance sheet the P/E should expand from current levels. Long term though GME could end up looking like Blockbuster as digital distribution picks up steam.
Ballmer: 'Nobody Gets' the Microsoft-Yahoo Deal [View article]
Yahoo can now focus on what it does best, publishing news, entertainment, sports and email while comparisons to Google should slowly dissipate. What is important to remember is that Yahoo is retaining 88% of the revenue for the first five years while its cost is zero, not a bad deal. Lets not forget what Yahoo aims to become .....Yahoo TV
Following the recent earnings call, Hasbro surprised analysts by trimming the cost of the Discovery Communications joint venture and reporting a 5% increase in profits over a year earlier. Not bad.
Since we are on the topic of selling puts take a look at Hasbro:
(HAS) surprised analysts by trimming the cost of the Discovery Communications joint venture and reporting a 5% increase in profits over a year earlier. So far this year HAS is down 9% while its main rival, Mattel (MAT) is up 13%, I expect Hasbro to catch up by year end. Below are two strategies to play the recent earnings which will leave room for a 23% and 32% downside protection from current levels. Keep in mind the lowest price HAS hit was $21.14 during the March market collapse. Both of the below strategies take this into consideration and the price of the stock would need to fall under $20 to realize a loss in one and under $17.50 to realize a loss in the other.
For a return of 50% over six months, sell 10 Jan10 Put contracts @ $20 for a premium of .50 cents. The margin requirement would be $2,500.00 less the premium proceeds of $500.00 for a total requirement of $2,000.00. This trade nets $500.00 for a yearly gain of 25% or if entered into today, 50% as there are only 6 months left until expiration. Downside protection of 23%.
Cramer: Flat Wrong on GameStop [View article]
Ten Reasons I'm Buying Activision Blizzard [View article]
Sirius XM Q3 Earnings Preview: Unknowns Abound [View article]
On Nov 03 08:56 AM gogglespaisano wrote:
> Whenever SIRI is poised to or wants to go up - the shorts always
> come out and force the price back down - so I have a quick question
> and excuse my naiveté...shorts have to borrow shares - where do they
> get these shares to borrow and how do you stop them - I own shares
> in siri and am long - I do not want them to "borrow" my shares....can
> I stop them by putting in an extremely high sell price ($5.00) -
> therefore my shares are spoken for and they cannot borrow them -
> does that makes sense
9 Takeaways from Nouriel Roubini [View instapost]
Citigroup Looks Overpriced [View article]
Credit card losses seem to have stabilized. Citi was the only big bank that had the same default rate on credit cards as April ( as opposed to BAC for example), delinquencies rates fell for the second month in a row (remember that delinquencies are directly correlated with the real credit losses, not the default rates). In addition, Citi has limited exposure to commercial real estate (only 2.5% out of the estimated stress test losses).
Citi has greatly reduced their risk exposure, this is evident in the 1Q data.
8 Takeaways from Nassim Taleb CNBC Interview [View article]
Sell Off Ahead? 25 Ways to Profit and Protect from a Stock Market Correction [View article]
Dow Jones Stoxx 600 Index traded at the most expensive relative to earnings in almost six years.Traders are betting the VIX, a gauge of expected stock swings, will increase 13 percent in the next five weeks.
The better than expected results for retailers and economic reports are due to the stimulus package not real wage increases. As the unemployment number showed, the US is still losing jobs. Its funny how the positive spin on the story was that the US "ONLY" lost 200,000+ jobs instead of 500,000.
Consumer Bankruptcy Filings Hit 4 Year High [View article]
Who's Blowing This Bubble - And When Will It Pop? [View article]
Gamestop: Priced to Play [View article]
Ballmer: 'Nobody Gets' the Microsoft-Yahoo Deal [View article]
Earnings Preview: Hasbro [View article]
Why I Sell Put Options (Part I) [View article]
(HAS) surprised analysts by trimming the cost of the Discovery Communications joint venture and reporting a 5% increase in profits over a year earlier. So far this year HAS is down 9% while its main rival, Mattel (MAT) is up 13%, I expect Hasbro to catch up by year end. Below are two strategies to play the recent earnings which will leave room for a 23% and 32% downside protection from current levels. Keep in mind the lowest price HAS hit was $21.14 during the March market collapse. Both of the below strategies take this into consideration and the price of the stock would need to fall under $20 to realize a loss in one and under $17.50 to realize a loss in the other.
For a return of 50% over six months, sell 10 Jan10 Put contracts @ $20 for a premium of .50 cents. The margin requirement would be $2,500.00 less the premium proceeds of $500.00 for a total requirement of $2,000.00. This trade nets $500.00 for a yearly gain of 25% or if entered into today, 50% as there are only 6 months left until expiration. Downside protection of 23%.
Deals Take Off in Dubai; Materials Stocks to Benefit [View article]
Sirius XM: Ramp Up in Marketing of iPhone App Is a Positive Sign [View article]