Archive for March 19th, 2008
Filed under: Newsletters, Commodities, Oil, Recession
 “Cash is king,” counsels market sector expert Jim Farrish who has chosen “cash” as his latest “sector spotlight”. Here is his latest on the need for “patience” from his SectorExchange service.
The sector expert explains, “The market volatility and downside momentum has been king for 2008. Outside of short term trading and/or being short the markets the best place to have been invested is cash.
“My question is why is it so hard for investors to hold cash in their portfolios? Why do so many investment advisors not increase cash positions when market trends shift? Why do professionally managed mutual funds not increase their cash holdings?
“It goes against the psychological grain of investing. It is human nature to believe we may miss out on something. The emotions of investing are in full swing when a prolonged downtrend begins. These emotions dictate how we think and how we act during this period.
Continue reading Sector expert: ‘Don’t forget cash’
Permalink | Email this | Comments
Share This
 No Comments »
Filed under: Analyst upgrades and downgrades, Good news, Options, Technical Analysis, ImClone Systems (IMCL)
 Imclone Systems Inc. (NASDAQ: IMCL) shares are rising today after an analyst at Citigroup upgraded the stock to “Buy” from “Hold.” Citi posted a $52 price target for IMCL and expects to hear good news at an upcoming conference. If you think that the company won’t fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on IMCL.
After hitting a one-year high of $47.94 in October, the stock hit a one-year low of $30.00 last March. IMCL opened this morning at $44.81. So far today the stock has hit a low of $43.61 and a high of $45.20. As of 11:33, IMCL is trading at $43.80, up $0.71 (1.7%). The chart for IMCL looks bullish and steady, while S&P gives the stock a neutral 3 Stars (out of 5) Hold rating.
For a bullish hedged play on this stock, I would consider a May bull-put credit spread below the $35 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn’t do what you think but still leverage nice returns. For this particular trade, we will make a 9.9% return in just two months as long as IMCL is above $35 at May expiration. ImClone would have to fall by more than 20% before we would start to lose money.
Continue reading ImClone (IMCL) rises on upgrade
Permalink | Email this | Comments
Share This
No Comments »
Filed under: Analyst upgrades and downgrades, Good news, Options, Technical Analysis, ImClone Systems (IMCL)
Imclone Systems Inc. (NASDAQ: IMCL) shares are rising today after an analyst at Citigroup upgraded the stock to “Buy” from “Hold.” Citi posted a $52 price target for IMCL and expects to hear good news at an upcoming conference. If you think that the company won’t fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on IMCL.
After hitting a one-year high of $47.94 in October, the stock hit a one-year low of $30.00 last March. IMCL opened this morning at $44.81. So far today the stock has hit a low of $43.61 and a high of $45.20. As of 11:33, IMCL is trading at $43.80, up $0.71 (1.7%). The chart for IMCL looks bullish and steady, while S&P gives the stock a neutral 3 Stars (out of 5) Hold rating.
For a bullish hedged play on this stock, I would consider a May bull-put credit spread below the $35 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn’t do what you think but still leverage nice returns. For this particular trade, we will make a 9.9% return in just two months as long as IMCL is above $35 at May expiration. ImClone would have to fall by more than 20% before we would start to lose money.
Continue reading ImClone (IMCL) rises on upgrade
Permalink | Email this | Comments
Share This
No Comments »
Filed under: Market matters, Technical Analysis, Oil
 In Gold: play the shares, not the metal?, I noted the apparent disconnect between the performance of mining stocks and gold and suggested that the shares may represent a better bet in the near term.
However, there seems to be an even greater disparity in another part of the commodity universe. Over the past 10 months or so, crude oil prices have soared by more than 70%, while energy sector shares have only risen about 5%.
To be sure, there are valid reasons why the stocks might not always track moves in the underlying commodity.
For one thing, the largest energy firms (with the heaviest sector weightings) have fully integrated operations (e.g. they explore for, pump, refine and market petroleum-related products), so a rise in the price of crude oil may not flow directly through to their bottom lines.
Continue reading Energy shares may be a better bet than crude oil
Permalink | Email this | Comments
Share This
No Comments »
Filed under: Earnings reports, Starwood Hotels Worldwide (HOT), Marriott Intl’A’ (MAR), Technical Analysis, Blackstone Group L.P (BX), Stocks to Buy
Interstate Hotels & Resorts (NYSE: IHR) is an independent hotelier, operating a portfolio of 220 hospitality properties in the US, Canada, Mexico and Europe. Altogether, it has approximately 46,000 rooms under management. The firm owns seven of the properties it operates and has ownership interests in 47 more. It has contracts to manage 16 additional facilities, currently in the planning stage. Interstate manages hotels represented by more than 30 franchise and brand affiliations. Marriott International (NYSE: MAR) is a major competitor. Starwood Hotels & Resorts Worldwide (NYSE: HOT) and the Blackstone Group (NYSE: BX) are clients.
The firm pleased investors late last month, when it reported Q4 EPS of 33 cents and revenues of $213.9 million. Analysts had been looking for 24 cents and $205 million. Management also guided FY08 EPS to 30-38 cents, versus Street consensus of 24 cents.
Continue reading Interstate Hotels & Resorts (IHR): Shares consolidating in bullish ‘flag’
Permalink | Email this | Comments
Share This
No Comments »
Filed under: Market matters, Technical Analysis, Oil
In Gold: play the shares, not the metal?, I noted the apparent disconnect between the performance of mining stocks and gold and suggested that the shares may represent a better bet in the near term.
However, there seems to be an even greater disparity in another part of the commodity universe. Over the past 10 months or so, crude oil prices have soared by more than 70%, while energy sector shares have only risen about 5%.
To be sure, there are valid reasons why the stocks might not always track moves in the underlying commodity.
For one thing, the largest energy firms (with the heaviest sector weightings) have fully integrated operations (e.g. they explore for, pump, refine and market petroleum-related products), so a rise in the price of crude oil may not flow directly through to their bottom lines.
Continue reading Energy shares may be a better bet than crude oil
Permalink | Email this | Comments
Share This
No Comments »
Filed under: Earnings reports, Starwood Hotels Worldwide (HOT), Marriott Intl’A’ (MAR), Technical Analysis, Blackstone Group L.P (BX), Stocks to Buy
Interstate Hotels & Resorts (NYSE: IHR) is an independent hotelier, operating a portfolio of 220 hospitality properties in the US, Canada, Mexico and Europe. Altogether, it has approximately 46,000 rooms under management. The firm owns seven of the properties it operates and has ownership interests in 47 more. It has contracts to manage 16 additional facilities, currently in the planning stage. Interstate manages hotels represented by more than 30 franchise and brand affiliations. Marriott International (NYSE: MAR) is a major competitor. Starwood Hotels & Resorts Worldwide (NYSE: HOT) and the Blackstone Group (NYSE: BX) are clients.
The firm pleased investors late last month, when it reported Q4 EPS of 33 cents and revenues of $213.9 million. Analysts had been looking for 24 cents and $205 million. Management also guided FY08 EPS to 30-38 cents, versus Street consensus of 24 cents.
Continue reading Interstate Hotels & Resorts (IHR): Shares consolidating in bullish ‘flag’
Permalink | Email this | Comments
Share This
No Comments »
Filed under: Analyst reports, Analyst initiations, Electro-Optical Sciences (MELA)
.gif) MOST NOTEWORTHY: Infinera, Dawson Geophysical and Electro-Optical Sciences were today’s noteworthy initiations:
- Thomas Weisel said Infinera (NASDAQ: INFN) has unique technology that will result in a sustained competitive differentiation, increases customer diversification and improving margins. The firm started shares with an Overweight rating and $13 target.
- Dawson Geophysical (NASDAQ: DWSN) was initiated with a Hold rating and $72 target at Jefferies, as they believe the stock is fairly-valued at current levels.
- Jesup & Lamont initiated Electro-Optical Sciences (NASDAQ: MELA) with a Buy rating and $8 target. The believes MELA’s Melafind is a breakthrough technology for the diagnosis of melanoma.
OTHER INITIATIONS:
Permalink | Email this | Comments
Share This
No Comments »
Filed under: Analyst reports, Analyst initiations, Electro-Optical Sciences (MELA)
MOST NOTEWORTHY: Infinera, Dawson Geophysical and Electro-Optical Sciences were today’s noteworthy initiations:
- Thomas Weisel said Infinera (NASDAQ: INFN) has unique technology that will result in a sustained competitive differentiation, increases customer diversification and improving margins. The firm started shares with an Overweight rating and $13 target.
- Dawson Geophysical (NASDAQ: DWSN) was initiated with a Hold rating and $72 target at Jefferies, as they believe the stock is fairly-valued at current levels.
- Jesup & Lamont initiated Electro-Optical Sciences (NASDAQ: MELA) with a Buy rating and $8 target. The believes MELA’s Melafind is a breakthrough technology for the diagnosis of melanoma.
OTHER INITIATIONS:
Permalink | Email this | Comments
Share This
No Comments »
Filed under: Merrill Lynch (MER), Options
 Merrill Lynch (NYSE: MER) is recently down 31 cents to $46.32.
MER call option volume of 16,496 contracts compares to put volume of 49,275 contracts. MER April 30 puts ($16 out of the money) have traded 191 times on transaction volume of 20,899 contracts, above its open interest of 19,719 contracts.
MER April option implied volatility of 70 is above its 26-week average of 46 according to Track Data, suggesting hedging for downside risk.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Permalink | Email this | Comments
Share This
No Comments »
|
