Category Archives: Invest
Stocks Strike Bearish Chord, Can’t Hold Morning Bounce After Gap Down
All major US markets dropped around 1% Monday, continuing their recent slide. Investors today were concerned about Greece (http://maps.google.com/maps?ll=37.9666666667,23.7166666667 spn=10.0,10.0 q=37.9666666667,23.7166666667 (Greece) t=h)’s potential exit from the Euro zone (http://en.wikipedia.org/wiki/Eurozone), which appears to be growing more likely by the day. It was the Dow (http://www.djaverages.com/?view=industrial page=overview)’s 8th losing day out of nine, but we have yet to get the type of quick capitulation sell-off that suggests a move bottom is in. Investors also continued to grapple with JP Morgan (http://en.wikipedia.org/wiki/J._P._Morgan)’s (JPM (http://www.google.com/finance?q=NYSE:JPM)) $ 2 billion trading loss, which could deepen over the next couple quarters. The first major casualty of the debacle is the bank’s Chief Investment Officer (http://en.wikipedia.org/wiki/Chief_investment_officer) Ina Drew, who retired after more than 30 years with the company….
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Disney: Riding The Success Of ‘The Avengers’ To Future Earnings Growth
It’s safe to say that the last week and a half have been huge for the House of Mouse. As everyone knows, The Avengers shattered the record for domestic box office sales at $ 207 million, and this past weekend it became one among a handful of films to gross over $ 1 billion internationally. While setting a new standard in opening weekend sales, The Avengers also became the first substantial vindication of Disney’s (DIS) purchase of Marvel Comics, announced in 2009. I have mentioned this before, but Paramount retained the distribution rights to Marvel movies up to this point, which included the first two Iron Man movies, Captain America, and Thor. But from here on out Disney will hold these rights and the prospect of such is very encouraging.
In other big news, Disney announced their second quarter earnings last Tuesday at $ 0.58/share. This was significant because it was an 18%
How To Deal With (Seriously) Dysfunctional Clients
Difficult, unreasonable and eccentric people seek financial planners too. Find out how to cope.
Investopedia: Articles and Tutorials
JP Morgan (JPM) Trading Loss Sends Futures Lower
US stock futures point to a lower open Friday after JP Morgan (http://en.wikipedia.org/wiki/J._P._Morgan)’s (JPM (http://www.google.com/finance?q=NYSE:JPM)) “London (http://maps.google.com/maps?ll=51.5072222222,-0.1275 spn=0.1,0.1 q=51.5072222222,-0.1275 (London) t=h) Whale” trader took a $ 2 billion trading loss on a massive position in credit default swaps (http://en.wikipedia.org/wiki/Credit_default_swap). JPM is down more than 7% this morning. In a surprise conference call after the close yesterday, JPM CEO Jamie Dimon (http://en.wikipedia.org/wiki/Jamie_Dimon) revealed the huge loss, also adding that it could deepen this quarter and beyond. He called the losses “egregious mistakes” and the single trader’s massive exposure a “tempest in a teapot”. Other bank stocks sold off on the news as well, but Dimon insists that while JPM might have been dumb, that “doesn’t mean everyone else was”. The immediate focus…
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Connecting The Dots With Synchronoss Technologies
By Ted Stamas:
In early March I wrote an article featuring Synchronoss Technologies (SNCR), and although I liked the company, cautioned investors that the stock price was slightly inflated based on P/E valuation. I also mentioned that 50% of earnings came from AT&T (T) which could impact the share price if business slowed with Ma Bell. I should have taken my own advice because in early April when the stock dropped 10%, I bought some shares at $ 29, only to take a black eye a month later when the equity dropped to $ 20 after their Q1 2012 conference call.
If you’re a conspiracy theorist and believe the market is rigged, then the recent price/action of Synchronoss will buttress your thinking. There is no way this stock should have dropped 33% in one day except for the proliferation of sell signals in high-frequency trading programs. They kick in at certain levels and portfolio managers
Forex Leverage: A Double-Edged Sword
Find out how this flexible and customizable tool magnifies both gains and losses.
Investopedia: Articles and Tutorials
AT&T: My Stock Pick Of 2012, An Update
I made a crystal ball stock pick late last year of AT&T (T) being “My Stock Pick Of 2012“. Of course it was not long after that prediction that the slam dunk merger of T-Mobile and AT&T fell through. To add salt to the wound, AT&T had to fork over 3 billion bucks to them for the failed takeover.
At the time of my pick, the price was $ 28.64/share. They were $ 3 billion in the hole soon thereafter and Apple (AAPL) was setting records for the entire first quarter of 2012.
What a difference a month makes.
The Developments
Not only did AT&T already have the $ 3 billion tucked away for the worst case scenario, but things were actually beginning to look up for all of their businesses. (Review this article)
Climbing Back Into Swing Shorts
Stocks were strong early this morning to negate last night’s JP Morgan (http://en.wikipedia.org/wiki/J._P._Morgan) (JPM (http://www.google.com/finance?q=NYSE:JPM)) inspired weakness, but have started to fade early this afternoon. The JPM trading loss is a big deal, but in an oversold market it wasn’t enough to drive stocks sharply lower. The S P is still below the key trendline that has been broken, which means composure is still somewhat bearish. For the rest of the day I expect things to quiet down as we head into the weekend. Key stocks like Apple (AAPL (http://www.google.com/finance?q=NASDAQ:AAPL)) are also in a period of price contraction, as opposed to price expansion. It’s likely we will have to wait until next week to get any potent directional trades, but…
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Why Nortek’s Shares Popped
Is this meaningful or just another movement?
Fool.com: The Motley Fool
Get To Know Your Consumer Financial Protection Bureau
The CFPB is there to protect you and hear your voice. You can help with the economic recovery by getting to know the bureau.
Investopedia: Articles and Tutorials
