Saturday, August 13, 2011

High Growth Quality Stocks From the Wells Fargo Advantage Growth Fund

High Growth Quality Stocks From the Wells Fargo Advantage Growth Fund ; Thomas Ognar, manager of Wells Fargo Advantage Growth Fund (SGRNX), has outstanding growth stock picking skills. As of 8/11/2011, the fund delivered the following performance:



5 Yrs 10 Yrs 15 Yrs

SGRNX

10.82 6.31 8.36
S&P 500 TR 0.58 1.80 5.75


Ognar seeks long-term capital appreciation and invests principally in equity securities of companies that are believed to have prospects for robust and sustainable growth of revenues and earnings. Let's look at its top 10 tholdings:

Ticker Company Name % Asset
AAPL Apple, Inc. 5.49%
PX Praxair, Inc. 2.67%
KMX CarMax, Inc. 2.50%
WFM Whole Foods Market, Inc. 2.32%
CTSH Cognizant Technology Solutions Corporation A 2.30%
PXD Pioneer Natural Resources Company 2.22%
STJ St Jude Medical, Inc. 2.07%
ALXN Alexion Pharmaceuticals, Inc. 2.05%
PCLN Priceline.com, Inc. 2.03%
TSCO Tractor Supply 1.96%


These stocks have the following ratios:



SGRNX Large Cap Growth Average
Price/Earnings 23.69 16.67
Price/Book 3.75 2.97
Price/Sales 2.64 1.87
Price/Cashflow 13.60 9.75
3 Year Earnings Growth 20.22% 15.15%


So we can see that these stocks are not cheap, compared with other large growth stocks. But they have excellent earnings growth (20% in the last 3 years), as exemplified by stocks like Apple (AAPL), Priceline (PCLN) (which has enjoyed solid earning growth in this frugal economic environment) and Whole Foods (WFM) (still enjoyed by upper class consumers who are actually less affected by this balance sheet repairing downturn). (source seekingalpha.com )

Crude Oil prices prediction for week August 15-19 2011

Crude Oil prices prediction for week August 15-19 2011 : Crude oil prices were little changed last week, as pessimism dominated earlier in the week amid the huge uncertainty that continued to surround markets, where slowing economic activities in the United States sparked concerns the world’s largest economy is on its way to a double dip recession, while mounting fears from the European debt crisis boosted demand for lower yielding assets, which put crude oil prices under pressure and pushed prices to the lowest level since September 2010.



Nonetheless, crude oil prices rebounded to the upside after data from the United States signaled that economic activities continued to grow although at a slower pace, since many traders fear the U.S. economy is heading into another recession.



Meanwhile, the EIA report showed that crude oil inventories decreased by 5.2 million barrels below median estimates, which allowed crude oil prices to rebound to the upside later in the week.



Rising pessimism in global financial markets should put crude oil prices under more pressure over the coming period, where traders are concerned the U.S. economy is heading into a double dip recession, and since the United States is the world’s largest consumer of oil, demand for oil will fall, and that continues to weigh down on prices, while concerns from the European debt crisis will also contribute to the anticipated bearish trend over the coming period.



Highlights for this week that will probably affect the Crude Oil direction are:



Monday August 15:

The U.S. economy will start the data this week with the Empire Manufacturing for August at 12:30 which is expected to rebound to 0.50 from -3.76.



At 13:00 GMT the U.S. will release the TIC flows for June which surely were affected by the start of the debt debate before it intensified in July.



Tuesday August 16:

Germany will start the GDP day at 06:00 GMT with the expected slowing pace of expansion into the second quarter with 0.5% from 1.5% recorded in the first quarter.



The GDP data from the euro zone is due at 09:00 GMT for the second quarter and surely expectations are for slowing pace of expansion at 0.3% following 0.8% in the first quarter of the year.



Other than the critical GDP data, the focus will also be on the scheduled meeting between Merkel and Sarkozy to discuss the worsening crisis in the euro area which markets will track closely and increase the volatility.



From the United States the Housing Starts for July is due at 12:30 GMT which is expected with 3.3% drop to 608 thousand from 629 thousand.



At 12:30 GMT, Canada will release the manufacturing sales index for June, where it’s expected to drop by 0.5%, compared with the prior drop of 0.8% back in May.



At 13:15 GMT, the Industrial Production for July is expected with 0.5% rise following 0.2% while the Capacity Utilization to rise marginally to 76.9% from 76.7%.



Wednesday August 17:

At 12:30 GMT, the U.S. July Producer Price Index is due and expected to rebound with 0.1% rise on the month following 0.4% drop. Core annual PPI is expected at 2.3% following 2.4%.



At 14:30 GMT, the EIA report for crude oil inventories will be released for the week ending August 12, where last week crude oil inventories decreased by 5.2 million barrels.



Thursday August 18:

The United States at 12:30 GMT will continue with inflation data and the Consumer Price Index for July which is expected with 0.2% rise following 0.2% drop to an annual 3.3% from 3.6%. Core CPI inflation is expected with 0.2% rise in July to an annual 1.7%.



Also at 12:30 GMT the weekly jobless claims are due after last week’s unexpected decline to 395 thousand.



The busy U.S. day will continue with the leading indicator for July at 14:00 GMT and is expected to ease to 0.2% following 0.3%.



Existing home sales for July are also due at 14:00 GMT and expected with 2.7% rebound to 4.90 million from 4.77 million.



Friday August 19: No economic data is scheduled for release from the United States. (source ; CommoditiesMansion.com )

Dell Inc. (DELL) Earning report August 16 2011 Overview

Dell Inc. (DELL) Earning report August 16 2011 Overview : Dell trades an average of 26.85 million shares per day, and has a market cap of $27.76 billion. Dell Inc. provides integrated technology solutions in the information technology (IT) industry worldwide. The company designs, develops, manufactures, markets, sells, and supports mobility products, including laptops, netbooks, tablets, and smartphones; desktops PCs; and servers and networking products. The company was founded in 1984 and is headquartered in Round Rock, Texas.



Industry: Computer Hardware

Recent Price: $14.78

52 Week High: $17.60

52 Week Low: $11.34

Book Value: $4.41



On average, 32 analysts are expecting $0.48 per share, a drop of $-0.07 in earnings per share compared to last quarter's results of $0.55. Next quarter estimated mean earnings are $0.48 per share. Analyst estimates range between $0.41 and $0.57 per share. Dell has been able to beat the estimates in the last five quarters. With the recent market volatility, the future guidance will be looked at very closely. About a week ago the stock went below the 200 day moving average. At the time of this article, the stock has moved off the lows and is again testing the average.



Revenue year-over-year has increased to $61.49 billion for 2011 vs. $52.90 billion for 2010. The bottom line has rising earnings year-over-year of $2635 billion for 2011 vs. $1.43 billion for 2010. The company's earnings before income and taxes are rising with an EBIT year-over-year of $3.43 billion for 2011 vs. $2.17 billion for 2010. Revenue growth is at an annual rate of 16.24%.



Q1 Highlights:



* The company reported total revenue amounting to $15 billion, a year-over-year increase of 1 percent compared with $14.9 billion.

* By revenue group

* Large enterprise had revenue of $4.5 billion, up 5.4 percent year-over-year.

* Public revenue was $3.7 billion, down 2.3 percent year-over-year.

* Small and medium business revenue reported was $3.7 billion, a year-over-year increase of 6.9 percent.

* Consumer segment posted the highest revenue decline of 7.5 percent to $3 billion.

* Servers and networking revenue improved by 10.5 percent year-over-year to $ 2 billion.

*Services revenue increased by 4.9 per cent year-over-year to $2 billion.

* Software and peripherals sales were 2.6 billion for the quarter, up 2.8 percent.

* Mobility revenue came in at $4.7 billion, a year-over-year increase of 3.4 percent.

* Desktop PC sales for the quarter totaled $3.3 billion, down 8.1 percent year-over-year.

* Operating income was $1.4 billion, an increase of 67 percent over $824 million.

* Non-GAAP net income came in at $1.05 billion, up 79.8 percent year-over-year compared with $584 million.

* Diluted EPS was $0.55, up from $0.30 in the comparable year-ago quarter.



Analysts expect the company to report earnings ranging from $0.41 to $0.54 per share this quarter, with a consensus estimate of $0.48 per share and a coefficient variance of 7.29 percent. Dell is expected to post revenue in the range of $15.4 billion to $16.1 billion, with a consensus of $15.8 billion. In the corresponding year-ago quarter, the company reported earnings of $0.32 on revenue of $15.5 billion. A report by Gartner and IDC on Q2 PC shipments showed that the industry is "still in a period of adjustment". However, enterprise spending is expected to be higher, which should help offset weakness from the consumer segment. The company has greatly improved its cost efficiencies, which is helping to improve margins and should help this quarter's performance.



DELL is currently trading at a price of $14.36, and has been trading in the range of $ 11.34 to $17.60 in the past 52 weeks. The stock has an average target price of $19.00, and has an average recommendation of Overweight.

Apple and Exxon Mobil stock review august 12 2011

Apple and Exxon Mobil stock review august 12 2011 : Exxon Mobil finished out the day back in first place, ending the day with a valuation $600 million higher than that of Apple. XOM closed at $72.00, up $0.420 (+0.59%), with a market cap of $350.1 billion. AAPL ended the day at $376.99, up $3.29 (+0.88%), with a market cap of $349.5 billion. The chart below was also updated with the session’s closing information.



Apple Inc. and Exxon Mobil continued their battle for supremacy as the world’s most valuable company Friday, changing place like partners at a square dance whose stuttering caller got stuck on “dosey doe.” Apple took over the #1 spot in market capitalization for the first time on Tuesday during intra-day trading, and closed with that ranking for the first time on Wednesday.



As of this writing, Exxon Mobile (XOM) has the lead, trading at $71.96 per share, up $0.380 (+0.53%), with a market cap of $349.9 billion. Shares in Apple Inc. were trading at $377.06, up $3.36 (+0.90%), with a market cap of $349.6 billion, $300 shy of Exxon’s valuation.



The two companies have been gaining and shedding market cap valuations in the US$349 billion range (+/- a billion here and a billion there) throughout the day.



The chart below shows the trading action on the two companies throughout the day on Friday,



as expressed in percentage terms. The companies are so close in valuation, that whenever the lines get close, their respective rankings in market cap switch places.

Friday, August 12, 2011

Gold Prices predictions for week august 15 2011



Gold Prices predictions for week august 15 2011 : Gold prices were slipping Friday as investors turned to stocks. Despite the modest sell-off, however, underlying worries over a global double-dip recession, punctuated by a weak consumer sentiment reading Friday, were keeping the metal's price near record highs.



Gold (-GC) for December delivery was down $14.20 to $1,737.30 an ounce at the Comex division of the New York Mercantile Exchange. Gold has traded as high as $1,770.90 and as low as $1,725.80, while the spot gold price was losing a steep $36, according to Kitco's gold index.



Gold prices were down for a second day as investors opted for riskier stocks, particularly after France, Spain, Belgium and Italy implemented a two-week ban on short selling financial stocks. Traders were also less apt to buy gold after the CME and Shanghai Gold Exchange both raised margin requirements for gold -- requiring investors to cough up more money upfront to buy gold contracts.





Gold Close % Change
Wednesday August 3 1,665.60 -
Tuesday August 4 1,653.30 (0.7)
Friday August 5 1,663.40 0.6
Monday August 8 1,760.40 5.8
Tuesday August 9 1,756.10 (0.2)
Wednesday August 10 1,806.30 2.9


The data in the table is from Kitco. With the exception of Wednesday, August 10 the gold and silver prices are at midnight. The gold and silver prices for Wednesday, August 10 were taken from Kitco at approximately 9:30 p.m. ET.



After a sharp rally to record nominal price highs over $1,800 an ounce, gold prices could see a retreat next week, most participants in the Kitco News Gold Survey said.



In the Kitco News Gold Survey, out of 34 participants, 23 responded this week. Of those 23 participants, five see prices up, while 14 see prices down, and four see prices sideways or unchanged. Market participants include bullion dealers, investment banks, futures traders and technical chart analysts.



A downgrading of the U.S. credit rating by Standard & Poor’s, worries about the stability of some European economies and other general financial malaise pushed gold prices to a high of $1,8xxx in, only to fall back from that level.



Participants who see weaker prices next week cited the rebound in equities and the CME Group’s move to raise margin levels for gold futures traders as a reason for gold’s weaker trade toward the week’s end. Several of them also expect the weakness to continue as the market continues to correct.

“I expect gold to trade at $1,675 sometime within the next week. The parabolic move of this week when lead-month futures (December) set both a daily volume record for a lead month (Tuesday) and a daily volume record Thursday for a day when prices were lower (are a reason). Erratic trading behaviors at extreme highs are indicative near the turn in trends



The few who see higher prices said the stronger underlying trend, despite the pullback, will eventually revert and drag prices higher

Bank of America Corp stock prices review august 12 2011

Bank of America Corp stock prices review august 12 2011 : Stock markets bounced back Thursday after plunging this week amid news of the U.S. credit downgrade, concerns about European debt and overall economic worries. Financial stocks took a particularly big hit.



Bank of America shares ended the day at $7.25, up 7 percent from the previous day's close - one of the biggest gains among blue-chip stocks - but shares are still down nearly 50 percent so far this year.



As Bank of America Corp.'s stock has tumbled and clawed back in recent days, city leaders, business owners and others with a stake in the company are waiting to see what happens next.



Bank of America Corp. (NYSE:BAC) Technical analysis for August 12, 2011



Bank of America Corporation BAC Resistance, pivot & Support Levels - 08/12/2011



Resistance levels: $7.92, $7.67, $7.46



Pivot point: $7.21



Support levels: $7.00, $6.75, $6.54



Bank of America Corp (BAC) is still trading $7.50 on but stock has support area is $6.BAC will now have resistance at $7.92 which is the 9 day moving average. Bank of America is new support area is $6 but this is low risk bank stock



Bank of America Corp stock prices august 12 2011



BAC $7.36 0.11 (1.45%)

Wednesday, August 10, 2011

why gold prices highs on Wednesday august 10 2011

why gold prices highs on Wednesday august 10 2011 : Gold hit fresh record highs on Wednesday as U.S. stock markets resumed their decline on concerns over the U.S. and euro zone economies, and after the Federal Reserve said U.S. interest rates would stay near zero for at least two years.



Spot gold hit a high of $1,779.14 an ounce and was up 1.6 percent at $1,771.45 an ounce at 10:28 a.m. EDT. It also hit record highs in euro and sterling terms.



It has rallied more than 6 percent so far this week after a downgrade to the U.S. credit rating on Friday battered assets seen as higher risk, helped by simmering worries over euro zone debt and the U.S. economic outlook. All these accumulating problems -- the U.S. debt problem, the euro zone debt problem, political discontent -- are really (creating) a perfect storm for gold



The strong statement yesterday from Fed Chairman Bernanke on holding zero interest rate policy until mid 2013 is, from a real opportunity cost perspective, very beneficial for gold, The Fed on Tuesday promised to keep interest rates near zero for at least two more years and said it would consider further steps to help growth.



In early trade they also supported equities, keeping a lid on gold's gains, but the metal later rallied back above $1,770 an ounce as U.S. stocks dropped nearly 3 percent as investors fretted about the economy and high levels of public debt. Read Gold prices prediction August 2011..



Holdings of gold-backed exchange-traded funds were choppy, meanwhile. Global ETF holdings, calculated by Reuters, fell 7.2 tonnes on Tuesday in their first daily decline in thirteen sessions.



The world's biggest gold-backed ETF, New York's SPDR Gold Trust, reported its biggest one-day outflow since January 25 on Tuesday, of just over 13 tonnes. A day before it had seen its largest daily inflow since May last year.



A large outflow was also seen from the iShares Silver Trust, the main silver ETF, earlier this week. The trust said its holdings dropped by nearly 120 tonnes on Monday, the most in a single day since mid-June. They were unchanged on Tuesday.



The ratio of gold to silver prices hit its highest since early February in that session as silver was caught up in wider selling of commodities as gold climbed. It is currently near 46, off a 28-year low of around 31 hit in April.



U.S. gold futures for August delivery were up $31.10 an ounce at $1,775.10.

Gold regained its premium over platinum on Wednesday after hitting parity for the first time since December 2008 earlier this week. It is expected to widen if confidence in the economic recovery remains fragile.

Tuesday, August 9, 2011

Investors waiting for ben bernanke press conference august 09 2011

Investors waiting for ben bernanke press conference august 09 2011 ; Traders are obviously pinning their hopes on US Federal Reserve chairman Ben Bernanke, who is due to hold a press conference after the Fed's latest committee meeting. There are some commentators hoping he will announce a policy of further quantitative easing - QE3 - but even if he does not go that far, any signs he is softening up the market for such a move might be welcomed.



Bloomberg News reports that by a 52% to 48% margin, respondents in a survey expect "the Fed would ease policy this year through monetary tools or statements. If the central bank acts, 59 percent said it would communicate that the federal funds rate, balance sheet or both will remain especially stimulative for a longer period or more specific amount of time." Read Bernanke press conference june 7 2011 in Atlanta.



Words from Bernanke that the Fed is going to print will send investors scrambling to buy the market at these levels. Greed will once again be a force in the market.



There will also be fear too, as investors will be scared of missing one of the best opportunities of getting in the market since early 2009 and after the so-called Flash Crash of May 2010.



Investors keep waiting for the splash but it hasn't come yet. And it won't come until greed returns and the market starts seeing bids again.



Stocks tanked in Asia and have tanked in Europe on Tuesday. There are signs that we might be near a bottom -- Germany's DAX, for instance, closed up approximately 300 points from its 52-week low earlier in the session.

Europe, US, Asian stock market summary august 9 2011

Europe, US, Asian stock market summary august 9 2011 ; Several major stock markets across the world notched up gains today on buying at bargain levels, with Dow Jones Industrial Average soaring over 212 points, although Asian bourses remained weak.



After plunging to new lows on Monday, the Wall Street opened on a strong note as investors snapped up shares at attractive valuations amid hopes that Federal Reserve will move to bolster the ailing American economy. Dow surged 2% in the morning trade to cross the 11,000 mark. The benchmark index was trading at 11,022.56 points.





Two other key US indices -- S&P 500 and Nasdaq Composite -- also made significant gains. While S&P gained over 2.5% at 1,147.60 points, the tech-heavy Nasdaq climbed over three per cent to 2,432.83 points.



Global markets were battered severely yesterday -- the first day of trading after S&P downgraded the US credit rating to 'AA+' from 'AAA' last Friday. Further, the persisting debt turmoil in Europe has also taken a toll on investor sentiment.



Towards the end of trading, European stocks had also recouped most of the losses made earlier in the day. London Stock Exchange's benchmark FTSE 100 index, which plummeted over 4%, was marginally up at 5,086.07 points. German index Dax, that crashed over 5% in the morning session, made a smart recovery and was down only slightly at 5,900.58 points. France's key Cac 40 index was up nearly one per cent at 3,151.45 points, after falling more

than three per cent in early trade.



However, Asian markets remained weak, even though most of them managed to recover from heavy losses incurred on Monday. Among the major losers were Hong Kong's key Hang Seng index (down nearly 6%) and Japan's Nikkei 225 (down about 2%).



India's BSE 30-share Sensex declined a little less than 1% to close at 16,857.90 points, after wild fluctuations and tanking 550 points earlier in the day. Investors are keeping a close watch on Federal Reserve's monetary policy statement, expected later in the day. With expectations running high on Fed's next step, any negative opinion could adversely impact the overall market sentiment, especially since fears are rising about another recession.



In one of the worst trading sessions since the 2008 financial meltdown, Wall Street crashed yesterday, with the Dow Jones plunging over 634 points.



German index Dax august 9 2011, Global markets august 9 2011, FTSE 100 index prices august 9 2011, European stocks august 9 2011, India's BSE 30-share Sensex, Japan's Nikkei 225 august 9 2011, Hang Seng index, Asian markets august 9 2011

Monday, August 8, 2011

gold price in saudi arabia august 8 2011, per gram, Ounce, Karat 24

gold price in saudi arabia august 8 2011, per gram, Ounce, Karat 24 ; This page shows the current today's gold prices in Saudi Arabia in Saudi Arabian Riyal (SAR) according to the local timezone of Riyadh in addition to the last price of yesterday with calculation of the change percent. This includes gold prices in ounce and gram of all gold karats; karat 24, karat 22, karat 21, karat 18, and karat 14.



Gold Ounce 6,396.33

Gold Pound 1,439.69

Gram Karat 24 205.67

Gram Karat 22 188.52

Gram Karat 21 179.92

Gram Karat 18 154.20

Gram Karat 14 120.01


Barrick Gold (NYSE:ABX) stock review august 8 2011

Barrick Gold (NYSE:ABX) stock review august 8 2011 : Barrick Gold Corporation (NYSE:ABX) is an international gold company with operating mines and development projects in the United States, Canada, South America, Australia, and Africa.



Shares of Barrick Gold Corporation (NYSE:ABX) closed the trading session at $45.86 below calculated support at $47.25 breaking the stock technically, raising concerns by investors, as the move might trigger more selling.



Barrick Gold's stock was trading in a well defined range with support at $47.25 and resistance at $49.90; given that this range was broken traders will be closely monitoring the stock's price action for clues of direction.



From a technical perspective it can be expected that previous support becomes resistance, as the new range gets defined, however, given that Barrick Gold's stock is still near the broken support, traders will be focusing on $47.25 to see if the stock can bounce back and return to its previous range.



Traders wanting to establish a short position in Barrick Gold can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes again at previous support of $47.25. For traders wanting to establish a long position, wait for price action to take the stock back to calculated support, which will provide a best entry point to build the position.

Mid Cap stock Gainers and Losers August 8th, 2011

Mid Cap stock Gainers and Losers August 8th, 2011 :



Fusion-IO Inc (NYSE:FIO) augmented 10.50% and the last traded price was $26.10 on a thickly traded volume of 2.03 million shares after the Company released fourth results. Revenue surged 556% to $71.7 million. Net income was $5.8 million or $0.06 per diluted share compared to net loss of $(11.9) million or $(1.00) in the fourth quarter of 2010.



Alcatel-Lucent (ADR) (NYSE:ALU)

is up 9.17% to $3.57 on a traded volume of 31.60 million shares. So far this year, the stock is up over 22%. The stock has a 52-week low and high of $2.46 and $6.63 respectively.



Sally Beauty Holdings Inc (NYSE:SBH)

jumped up 8.89% and closed at $16.69 on a heavy traded volume of 2.54 million shares. Caris & Company increased the rating on the stock from above average to buy.



Hansen Natural Corporation (NASDAQ:HANS)

surged up 8.40% to $75.92 on a traded volume of 2.42 million shares. The Company posted profit of $84.2 million or 90 cents per share versus $63.8 million or 69 cents per share in the prior year period. Net sales increased 26% to $462.1 million. However, analysts predicted earnings of 84 cents per share on revenue of $436 million.



PVH Corp (NYSE:PVH)

went up 6.69% and closed at $66.63 on a thickly traded volume of 2.46 million shares. The subsidiary of PVH Corp, Calvin Klein Inc announced that Calvin Klein Fragrances unveiled the worldwide Fall 2011 advertising campaign for ck one shock.



Mid Cap Losers August 8th, 2011



SandRidge Energy Inc (NYSE:SD)

moved down 20.18% to $7.79. The Company increased its production guidance to be 24.1 MMBoe from 23.3 MMBoe for fiscal year 2011. The Company has entered into a joint venture with an affiliate of Atinum Partners Co Ltd.



Dolby Laboratories Inc (NYSE:DLB)

plunged 18.0% and closed at $30.89. Avondale Partners reduced the rating on the stock from outperform to market perform. The price target is set at $40.00.



Weight Watchers International Inc (NYSE:WTW)

slipped 17.13% and the last traded price was $61.70 after the Company increased its guidance for fiscal year 2011. The Company expects earnings to be in the range of $3.85 to $4.05 per diluted share for fiscal year 2011. The guidance is in line with the analysts’ estimates EPS of $3.96 for fiscal 2011.



NXP Semiconductors NV (NASDAQ:NXPI)

declined 12.70% to $14.92 So far this year, the stock is down over 28%. The stock has a 52-week low and high of $10.23 and $35.32 respectively.



Dresser-Rand Group Inc (NYSE:DRC)

decreased 11.09% and closed at $41.86 after the Company discussed second quarter results. Net income was $10.7 million or $0.14 per diluted share compared to net income of $35.0 million or $0.43 per diluted share in the second quarter 2010. Total revenues increased 19.2% to $514.1 million driven by higher volumes reflecting the recovery in energy infrastructure markets worldwide.

Benjamin Graham criteria to assess the financial health of a company

Benjamin Graham criteria to assess the financial health of a company ; Whatever size stock you're interested in, it's important to invest in companies with strong balance sheets. Benjamin Graham used three criteria to assess the financial health of a company:



* Total debt that is less than tangible book value.

Tangible book value is defined as total assets less goodwill, other intangible assets and all liabilities.



* A current ratio greater than two.

Current ratio is defined as current assets divided by current liabilities. It is an indication of a company's ability to meet its short-term obligations.



* Total debt less than two times net current asset value.

Companies meeting this criterion are able to pay off their debts with cash and other current assets making them far more stable.

U.S. Stock preview august 8 2011, Best Buy, Pepsi, Prudential, Transatlantic

U.S. Stock preview august 8 2011, Best Buy, Pepsi, Prudential, Transatlantic ; Shares of the following companies may have unusual moves in U.S. trading. Stock symbols are in parentheses and prices are as of 7:40 a.m. in New York.



Best Buy Co. (BBY US):

The electronics retailer’s shares may slide if management can’t figure ways to retake market share from online competitors such as Amazon, Barron’s reported in its “The Trader” column.



Boeing Co. (BA US)

declined 2.8 percent to $60.97. The airplane maker and the National Labor Relations Board failed to reach an agreement on Boeing’s request to shield documents related to a 787 Dreamliner factory.



Education Management Corp. (EDMC US):

The for-profit education company boosted its buyback program to $325 million from $250 million.



L-3 Communications Holdings Inc. (LLL US):

Relational Investors LLC cut its stake in the defense contractor that makes surveillance cameras for military aircraft to 3.7 percent from 6 percent.



Mistras Group Inc. (MG US) The provider of testing for the soundness of bridges, oil refineries, wind turbines and other infrastructure may rise to the mid-20’s in 18 months or less as earnings climb, Barron’s reported.



O’Reilly Automotive Inc. (ORLY US):

The auto-parts retailer said it increased its share repurchase program by $500 million.



PepsiCo Inc. (PEP US):

The beverage and snack-food maker is undervalued in light of its earnings outlook, potential growth in emerging markets and the possibility of a spinoff, Barron’s reported.



Prudential Financial Inc. (PRU US)

fell 3.7 percent to $52. The insurance company may gain 38 percent or more on its purchase of AIG’s life-insurance business in Japan, which faces growing demand from an aging population, Barron’s reported.



Transatlantic Holdings Inc. (TRH US):

Warren Buffett’s Berkshire Hathaway Inc. offered about $3.25 billion to buy the reinsurer previously owned by American International Group Inc.

Gold prices August 8 2011, $1,715.29 a troy ounce Asian trading

Gold prices August 8 2011, $1,715.29 a troy ounce Asian trading : Spot gold breached key resistance at $1,700 a troy ounce to hit a record high of $1,715.29/oz in Asian trading Monday as risk aversion sent investors scurrying for safe havens such as gold and silver after rating agency Standard & Poor's downgraded the U.S. government's debt rating by one notch to AA+, clouding the outlook for the world's biggest economy.



Spot gold, which has been steadily rising in recent weeks amid growing global economic uncertainty, rallied past the key psychological resistance level after Dow Jones Industrial Average futures fell over 300 points in screen trade as fresh concerns about global economic outlook weighed on investor sentiment.



At 0600 GMT, spot gold was trading around $1,712.00/oz, up $49.20 or 2.68% from its previous close. Read Gold prices prediction August 2011...



With the demise of the U.S dollar as a safe haven, the appeal of gold has increased, a Singapore-based trader said. "In the past, investors could move their cash into the dollar and gold, but the dollar is no more an option."



Analysts and traders are still analyzing the full impact of the downgrade which could push up borrowing costs at a time when higher rates could hurt growth even further and push the U.S economy into another recession.

Sunday, August 7, 2011

asian stock market News today August 8 2011, Shanghai, Nikkei 225 stock average dropped

asian stock market News today August 8 2011, Shanghai, Nikkei 225 stock average dropped ; Asian stocks nose-dived Monday as the first-ever downgrade of the U.S. government's credit rating jolted the global financial system, reinforcing fears that the world economy is weakening.



Oil prices extended recent sharp losses, trading below $84 a barrel on expectations that weaker global growth will crimp demand for crude. The dollar was lower against the yen and the euro.



Among the major Asian markets, Hong Kong's Hang Seng tumbled 3.8 percent to 20,145.82 and South Korea's Kospi was down 3.8 percent to 1,869.45 after briefly diving nearly 7 percent. Japan's Nikkei 225 stock average dropped 2.2 percent to 9,097.56.



Futures pointed to losses on Wall Street when it opens Monday. Dow futures were off 260 points, or 2.3 percent, at 11,142 and broader S&P 500 futures shed 31.30 points, or 2.6 percent, to 1,166.10.



Banking shares were tainted by fears the sector could face heavy losses as the sovereign debt crisis in Europe continued to brew. Industrial and Commercial Bank of China, the world's biggest bank by market value, fell 4.2 percent. Port operators -- whose lifeblood of imports and exports would be at risk if the global economy goes bust -- were stung badly. Hong Kong-listed China Shipping Container Lines Co. dropped 9.7 percent.



Meanwhile, a strengthening yen, which makes Japanese products more expensive when they are sent overseas, slammed the country's powerhouse export sector. Hitachi Corp. dropped 4 percent. Sony was 3.8 percent down. Mazda Motor Corp. lost 3.1 percent.



Australia's S&P/ASX 200 index dropped 2.9 percent to 3,986.10. Singapore's benchmark dived 4.7 percent, Taiwan's market slid 3.8 percent and China's Shanghai Composite shed 3.6 percent.



The G-7 statement came after the group held an emergency conference call to discuss the debt crisis in Europe and market prospects following the announcement of the first-ever downgrade of the U.S. credit rating.



The European Central Bank, meanwhile, said it will "actively implement" a bond-purchase program that could boost Spanish and Italian bonds and drive down interest yields that threaten those countries with financial disaster.

stock market crash august 8 2011, good trading opportunities

stock market crash august 8 2011, good trading opportunities : There was not a significant amount of news this week, other than the US debt deal. The explanation given by many is that the market crashed due to worries about a double dip recession in the US and further debt problems in the Eurozone. However, the fact is that this was not new news this week.



US economic data had been slowing for some time - over the last couple of months. Additionally, the Eurozone debt crisis has been going on for over a year. So what went wrong then? Why did the markets have such a large crash this week, despite no obvious trigger?



Unfortunately, there is no simple answer to this. One of the most famous stock market crashes in recent history was Black Monday in October 1987. Global stock markets around the world declined between 20% and 50% in a single day. Until today, there is no generally accepted cause of the crash. Most have blamed program trading and market illiquidity for the crash. Still, nothing related to the fundamentals of the economy or the companies within the stock market.



This week's market crash, like the one in 1987, had no specific trigger. Yes there are concerns about a weakening US economy and the Eurozone debt crisis, but nothing concrete we can point to. In addition, the timing of the crash wasn't related to any specific event. So in trying to answer the question as to what caused the crash, unfortunately there is no clear answer.



The lesson to learn from this is that sometimes markets can have large movements without any specific reason for them. Often it is related to investor panic and herd mentality, both of which can have powerful effects on markets. But why investors panic at the time they do is a still a mystery.



More importantly, crashes like these can provide good trading opportunities. Within the stock market, many companies will have fallen in value even though their fundamentals are unlikely to have been affected. Many commodities have also seen large falls in value, and there are buying opportunities in that space too.



A well-known saying by the famous investor Warren Buffet is to buy when investors are fearful and stay away when investors are greedy. Well, right now investors and the financial markets are quite fearful. So we know what to do.