Best 6 Dividend Stocks to buy Safe Profits for August 2011 ; This market cycle has been among the trickiest of the past half century. By any measure, stocks — whether domestic or foreign — have racked up enormous gains since the March 2009 bottom.
Yet the news background that has accompanied this spectacular bull run has repeatedly frightened investors out of the market — or prevented them from getting in at all. A healthy level of concern is warranted, but there is still time to make generous profits with safe, strong, dividend stocks before this bull has run its course.
Next to gold, oil is one of the world’s most reliable inflation hedges — a scarce tangible asset, and an essential raw material to boot. If you believe, as I do, that all the funny money sloshing around will eventually trigger a surge in retail prices, you need to own some oil wells. And the best way to do it is with a dirt-cheap dividend stock like
Dividend Stock to Buy – Total (TOT)
The world’s fifth-largest oil company by market value, Paris-based Total is trading at about 7 time estimated 2011 earnings, versus an average of 9.5 times from 2003 to 2007. Thus, if the stock were merely to return to its former average valuation, you would pocket a gain of 35% or more. In addition, TOT pays a dividend of nearly 6%, one of the richest yields among the oil majors. Starting in September, the company is switching to a quarterly (rather than semiannual) dividend schedule — an extra attraction for retirees and other dividend stock investors.
Fifth Street Finance (NYSE:FSC) is a business development company (BDC) specializing in investments in middle market, bridge financing, first and second lien debt financing, expansions, acquisitions, add-on acquisitions, recapitalizations, and management buyouts in small and mid-sized companies. Given how tight the banks have been to extend credit to small businesses, specialty finance companies like FSC should post a strong second-quarter in terms of lending.
With a yield of 11%, there is ample room for capital appreciation from current levels. BDCs have been weighed down by a weak bank sector, but they should post robust growth going forward and shares should push higher.
Invesco Mortgage Capital (NYSE:IVR) operates as a mortgage real estate investment trust (REIT). This week, the REIT reported Q2 earnings of 99 cents per share, right in line with the analyst consensus. My guess is that the weakness in the stock of late has little to do with IVR’s operating performance and a lot to do with the Washington circus, which has spooked a broad cross-section of bond and mortgage investors.
I’m projecting IVR will pay at least $3.90 per share of dividends this year, for an eye-popping yield of 19.8% at yesterday’s closing price. At that rate, we can afford to wait patiently for the share price of this dividend stock to rebound. I’m confident it will.
Emerging markets in Latin America are on track to post robust economic growth this year. One of the leaders of the pack is Chile, which is expected to show GDP growth of 6.3%.
The Aberdeen Chile Fund (AMEX:CH) is a close-ended balanced mutual fund that primarily invests in the public equity and fixed income markets of Chile. With its very attractive 8.79% yield, CH is a great way to participate in this growth.
Government Properties Income Trust (NYSE:GOV) is a REIT that primarily owns and leases office buildings that are leased mainly to government tenants. The RIET recently floated on another follow-on offering for 6.5 million new shares.
Why is GOV issuing more stock? My guess is that the REIT’s acquisition pipeline is starting to fill up. In May, the trust bought a New York City office building, primarily tenanted by the United Nations, for $114 million. To keep doing deals of that size at favorable interest rates, GOV needs to raise equity from time to time. This is standard operating procedure for REITs (and master limited partnerships, too, by the way). This dividend stock currently yields 6.6%, double what you could earn on a 10-year Treasury note.
Defense contractor Raytheon (NYSE:RTN) has been marked down on worries of savage defense cuts. I suspect the resolution will turn out considerably more benign than the Street fears. With a low-debt balance sheet and diversified business lines, RTN is well equipped to cope with any adjustments Washington may make in defense spending.
Yesterday, the company said that its second-quarter profit more than doubled and it raised its guidance for the year. The company earned $438 million, or $1.23 per share, for the quarter that ended July 3. That was up from $208 million, or 55 cents per share, from the year-ago period. And revenue rose 4.2% to $6.22 billion, from $5.97 billion a year earlier. Raytheon benefited from a big turnaround in its intelligence and information systems unit.
The dividend stock is also throwing off a nice 3.6% yield, with a record of seven annual dividend increases in a row. (source www.investorplace.com )
Saturday, July 30, 2011
Best stock to picks Reliable Blue Chips for the Debt Crisis
Best stock to picks Reliable Blue Chips for the Debt Crisis : The Treasury has warned of an Aug. 2 deadline to raise the debt ceiling. Democrats refuse to consider any debt-cutting proposal that does not include revenue increases, and Republicans refuse to consider any bill that does include them.
how can investors protect themselves amid this mayhem? After all, the “safe haven” of U.S. Treasuries won’t be considered very safe if Uncle Sam winds up defaulting on his debts. And you can bet if things go south in Washington, they’ll go south on Wall Street, too
Going to cash until things blow over is an option, but not always the best one for many investors. If you have an IRA, you likely will pay a hefty penalty to bail out now. Besides, market timing always is a tricky business — those folks who bailed out in early 2009 to “protect” their finances missed out on a screaming bear market where the stock market soared 60% in the subsequent 12 months. Even if you know when to get out, it’s hard to know when to get back in.
So, where can you turn right now? Low-risk, high-yield dividend stocks are as good a place as any. Blue chips with reliable revenue streams that throw off big quarterly payouts might not be bulletproof, but they could be some of your best shots at stability in this crazy market.
Here are five picks to consider: Verizon (NYSE:VZ), McDonald’s (NYSE:MCD), PepsiCo (NYSE:PEP), Colgate-Palmolive (NYSE:CL) and Lorillard (NYSE:LO).
Verizon (NYSE:VZ)
This telecom giant is about 7% shy of a new 52-week high but still delivering an impressive 5.4% yield at these valuations. And contrary to AT&T (NYSE:T), which has seen revenue mostly flat since 2008, Verizon has grown its revenue by almost 10% in the same period. And while Verizon got the iPhone this spring, many experts believe a large number of subscribers still are waiting for the release of the iPhone 5 from Apple (NASDAQ:AAPL) this fall on Verizon’s network.
Also, while rival AT&T saw a decent pop after its March offer to buy out T-Mobile, resistance to the proposed merger is growing. There is no reason to expect Verizon to be marginalized if things go through, and increasing opposition to the deal could squash AT&T’s move to leapfrog Verizon to become the top wireless carrier in the U.S.
McDonald’s (NYSE:MCD)
Despite its massive size, McDonald’s continues to cook up great results for shareholders — most recently, in quarterly results that show a 16% revenue increase. The stock has outperformed the market nicely, adding 24% in the last year and more than 13% year-to-date. That’s in part because more than half of McDonald’s revenue comes from outside the U.S., where the company still can see big growth.
That international exposure also is good news if default comes to roost. With its large cash flows, the company will have the resources to continue to innovate and experiment with new products like its recent frozen lemonade concoction that has helped juice summer sales. That reliable revenue stream also throws off a plump dividend of 2.8%.
PepsiCo (NYSE:PEP)
If you’re looking for another domestic consumer powerhouse with an emerging market footprint, PepsiCo is a good choice. In the latest quarter, beverage volume growth increased 13% in China, 17% in India and 15% in Turkey. And beyond these brisk drink sales abroad, there are plenty of foodstuffs that will keep revenues booming at home, even in tough times — including products like Quaker Oats and Lays potato chips.
Pepsi just took a tumble after its recent earnings report and disappointing outlook, but this sell-off might be a buying opportunity. PepsiCo raised its dividend for its 39th consecutive year in May, proving the bulletproof distributions from PEP stock. The company now yields 3.1% and has seen an annual growth rate of 12.6% in its dividend during the past five years — a sign of stable income if ever there was one.
Colgate-Palmolive (NYSE:CL)
Consumer products giant Colgate-Palmolive made waves this year with its purchase of the Sanex personal care brand in Europe from Unilever PLC (NYSE:UL) for about $950 million. That will give the already dominant company an opportunity to expand its footprint even more overseas. Colgate already has seen a 10% increase in revenue for its full fiscal year of 2010 compared with 2008 numbers, and the Sanex buyout will mean continued growth.
And you can’t get much more stable than a company selling soap and toothpaste — consumer products like that will sell no matter what mayhem tomorrow brings. On the dividend side, the 2.7% yield isn’t overly impressive but is rock solid. Colgate has paid dividends since 1985 and has seen 48 consecutive annual increases in its distributions.
Lorillard (NYSE:LO)
One of America’s smaller tobacco companies, the most successful Lorillard product is menthol cigarettes under the Newport brand. But while LO might not be on top of the heap in the tobacco market, its numbers are more impressive than some bigger rivals. Lorillard has seen revenue increase for each of the past four fiscal years, and its stock value has jumped almost 40% in the past 12 months to double the broader market’s returns.
While cigarette sales overall have been in a slow decline recently because of excise tax increases – not to mention the obvious health risks of smoking – Lorillard has managed to actually grow sales in its top Newport and Maverick brands. Revenue and earnings both rose about 11% in its most recent quarterly report. LO currently yields 4.8% but has seen two dividend increases since early 2010. (source www.investorplace.com )
how can investors protect themselves amid this mayhem? After all, the “safe haven” of U.S. Treasuries won’t be considered very safe if Uncle Sam winds up defaulting on his debts. And you can bet if things go south in Washington, they’ll go south on Wall Street, too
Going to cash until things blow over is an option, but not always the best one for many investors. If you have an IRA, you likely will pay a hefty penalty to bail out now. Besides, market timing always is a tricky business — those folks who bailed out in early 2009 to “protect” their finances missed out on a screaming bear market where the stock market soared 60% in the subsequent 12 months. Even if you know when to get out, it’s hard to know when to get back in.
So, where can you turn right now? Low-risk, high-yield dividend stocks are as good a place as any. Blue chips with reliable revenue streams that throw off big quarterly payouts might not be bulletproof, but they could be some of your best shots at stability in this crazy market.
Here are five picks to consider: Verizon (NYSE:VZ), McDonald’s (NYSE:MCD), PepsiCo (NYSE:PEP), Colgate-Palmolive (NYSE:CL) and Lorillard (NYSE:LO).
Verizon (NYSE:VZ)
This telecom giant is about 7% shy of a new 52-week high but still delivering an impressive 5.4% yield at these valuations. And contrary to AT&T (NYSE:T), which has seen revenue mostly flat since 2008, Verizon has grown its revenue by almost 10% in the same period. And while Verizon got the iPhone this spring, many experts believe a large number of subscribers still are waiting for the release of the iPhone 5 from Apple (NASDAQ:AAPL) this fall on Verizon’s network.
Also, while rival AT&T saw a decent pop after its March offer to buy out T-Mobile, resistance to the proposed merger is growing. There is no reason to expect Verizon to be marginalized if things go through, and increasing opposition to the deal could squash AT&T’s move to leapfrog Verizon to become the top wireless carrier in the U.S.
McDonald’s (NYSE:MCD)
Despite its massive size, McDonald’s continues to cook up great results for shareholders — most recently, in quarterly results that show a 16% revenue increase. The stock has outperformed the market nicely, adding 24% in the last year and more than 13% year-to-date. That’s in part because more than half of McDonald’s revenue comes from outside the U.S., where the company still can see big growth.
That international exposure also is good news if default comes to roost. With its large cash flows, the company will have the resources to continue to innovate and experiment with new products like its recent frozen lemonade concoction that has helped juice summer sales. That reliable revenue stream also throws off a plump dividend of 2.8%.
PepsiCo (NYSE:PEP)
If you’re looking for another domestic consumer powerhouse with an emerging market footprint, PepsiCo is a good choice. In the latest quarter, beverage volume growth increased 13% in China, 17% in India and 15% in Turkey. And beyond these brisk drink sales abroad, there are plenty of foodstuffs that will keep revenues booming at home, even in tough times — including products like Quaker Oats and Lays potato chips.
Pepsi just took a tumble after its recent earnings report and disappointing outlook, but this sell-off might be a buying opportunity. PepsiCo raised its dividend for its 39th consecutive year in May, proving the bulletproof distributions from PEP stock. The company now yields 3.1% and has seen an annual growth rate of 12.6% in its dividend during the past five years — a sign of stable income if ever there was one.
Colgate-Palmolive (NYSE:CL)
Consumer products giant Colgate-Palmolive made waves this year with its purchase of the Sanex personal care brand in Europe from Unilever PLC (NYSE:UL) for about $950 million. That will give the already dominant company an opportunity to expand its footprint even more overseas. Colgate already has seen a 10% increase in revenue for its full fiscal year of 2010 compared with 2008 numbers, and the Sanex buyout will mean continued growth.
And you can’t get much more stable than a company selling soap and toothpaste — consumer products like that will sell no matter what mayhem tomorrow brings. On the dividend side, the 2.7% yield isn’t overly impressive but is rock solid. Colgate has paid dividends since 1985 and has seen 48 consecutive annual increases in its distributions.
Lorillard (NYSE:LO)
One of America’s smaller tobacco companies, the most successful Lorillard product is menthol cigarettes under the Newport brand. But while LO might not be on top of the heap in the tobacco market, its numbers are more impressive than some bigger rivals. Lorillard has seen revenue increase for each of the past four fiscal years, and its stock value has jumped almost 40% in the past 12 months to double the broader market’s returns.
While cigarette sales overall have been in a slow decline recently because of excise tax increases – not to mention the obvious health risks of smoking – Lorillard has managed to actually grow sales in its top Newport and Maverick brands. Revenue and earnings both rose about 11% in its most recent quarterly report. LO currently yields 4.8% but has seen two dividend increases since early 2010. (source www.investorplace.com )
Dunkin Donuts IPO shares prediction, Successful growth stocks
Dunkin Donuts IPO shares prediction, Successful growth stocks ; Dunkin was purchased in 2006 from liquor company Pernod Ricard S.A. (PDRDY, RI.FR) for $2.4 billion in cash by private equity firms Bain Capital Partners LLC, The Carlyle Group and Thomas H. Lee Partners.
Both the Dunkin' Donuts and the Baskin Robbins brands have been around since the 1940s in the U.S., and the company has expanded its franchise locations internationally as far as the Middle East and Japan.
The Massachusetts-based company, which franchises its namesake coffee-and-donut restaurants and Baskin Robbins ice-cream shops, has been well received by investors over the past week, according to analysts.
Three days ago TheStreet posted an article titled "Don't Buy Dunkin' Donuts IPO: Value Analyst." Yesterday, they reported: "Dunkin Donuts IPO: Shares Soar."
You can't blame them for being so cautious about the recently introduced Dunkin' Donuts IPO Stock Symbol (DNKN). In fact, many analysts still aren't quite sure what to make of it.
Dunkin' Brands owns the Dunkin' Donuts franchise and the ice cream chain Baskin Robins. Initial stock price was set at $19/share when it was offered late on Tuesday, it opened at $25 on Wednesday and closed at $27.85/share. Friday's low currently stands at $28.01/share.
So far, so good. But some analysts wonder if investors are simply over-enthusiastic, and whether $19/share might have been overpriced to start with. On the other hand, the company has a fair share of potential growth with further expansion of the franchise west of theMississippi.
Y Charts offers this bit of wisdom: "Successful growth stocks, even the ones that go on to make the most astronomical share price gains, are rarely made in the first few months of trading. Especially in the restaurant sector, where investors over-enthusiasm tends to swell PEs."
To help you analyze, here's a list of restaurant stocks that have seen institutional buying over the recent quarter. We found that of the 28 restaurant industry stocks with market caps over $300 million, 18 have seen net institutional purchases over the current quarter read Top Restaurant stocks with the most significant buying july 2011
Do you think Dunkin' Donuts cold follow along that path? Or is this another Chipolte in the making, which has grown an impressive 650% since its initial offering?
Both the Dunkin' Donuts and the Baskin Robbins brands have been around since the 1940s in the U.S., and the company has expanded its franchise locations internationally as far as the Middle East and Japan.
The Massachusetts-based company, which franchises its namesake coffee-and-donut restaurants and Baskin Robbins ice-cream shops, has been well received by investors over the past week, according to analysts.
Three days ago TheStreet posted an article titled "Don't Buy Dunkin' Donuts IPO: Value Analyst." Yesterday, they reported: "Dunkin Donuts IPO: Shares Soar."
You can't blame them for being so cautious about the recently introduced Dunkin' Donuts IPO Stock Symbol (DNKN). In fact, many analysts still aren't quite sure what to make of it.
Dunkin' Brands owns the Dunkin' Donuts franchise and the ice cream chain Baskin Robins. Initial stock price was set at $19/share when it was offered late on Tuesday, it opened at $25 on Wednesday and closed at $27.85/share. Friday's low currently stands at $28.01/share.
So far, so good. But some analysts wonder if investors are simply over-enthusiastic, and whether $19/share might have been overpriced to start with. On the other hand, the company has a fair share of potential growth with further expansion of the franchise west of theMississippi.
Y Charts offers this bit of wisdom: "Successful growth stocks, even the ones that go on to make the most astronomical share price gains, are rarely made in the first few months of trading. Especially in the restaurant sector, where investors over-enthusiasm tends to swell PEs."
To help you analyze, here's a list of restaurant stocks that have seen institutional buying over the recent quarter. We found that of the 28 restaurant industry stocks with market caps over $300 million, 18 have seen net institutional purchases over the current quarter read Top Restaurant stocks with the most significant buying july 2011
Do you think Dunkin' Donuts cold follow along that path? Or is this another Chipolte in the making, which has grown an impressive 650% since its initial offering?
Top Restaurant stocks with the most significant buying july 2011
Top Restaurant stocks with the most significant buying july 2011, Best Restaurant stocks to buy july 2011, Best Restaurant stocks 2011 : here's a list of restaurant stocks that have seen institutional buying over the recent quarter. We found that of the 28 restaurant industry stocks with market caps over $300 million, 18 have seen net institutional purchases over the current quarter. We list the top ten with the most significant buying below.
1. The Wendy's Company (WEN)
Restaurants Industry. Market cap of $2.22B. Current price at $5.3. Net institutional shares purchased over the current quarter at 95.3M, equivalent to 31.74% of the company's 300.22M share float. The stock has gained 23.02% over the last year.
2. Bravo Brio Restaurant Group, Inc. (BBRG)
Restaurants Industry. Market cap of $421.02M. Current price at $22.16. Net institutional shares purchased over the current quarter at 3.2M, equivalent to 18.36% of the company's 17.43M share float. The stock is a short squeeze candidate, with a short float at 5.41% (equivalent to 5.63 days of average volume). After a solid performance over the last year, BBRG has pulled back during recent sessions. The stock is -6.2% below its SMA20 and -3.17% below its SMA50, but remains 14.61% above its SMA200. The stock has performed poorly over the last month, losing 12.42%.
3. Ruby Tuesday, Inc. (RT)
Restaurants Industry. Market cap of $590.46M. Current price at $9.09. Net institutional shares purchased over the current quarter at 4.5M, equivalent to 8.69% of the company's 51.79M share float. The stock is a short squeeze candidate, with a short float at 8.41% (equivalent to 5.6 days of average volume). The stock is currently stuck in a downtrend, trading -13.74% below its SMA20, -12.36% below its SMA50, and -25.14% below its SMA200. It's been a rough couple of days for the stock, losing 17.92% over the last week.
4. BJ's Restaurants, Inc. (BJRI)
Restaurants Industry. Market cap of $1.29B. Current price at $46.88. Net institutional shares purchased over the current quarter at 1.8M, equivalent to 7.5% of the company's 24.00M share float. The stock is a short squeeze candidate, with a short float at 16.18% (equivalent to 14.18 days of average volume). After a solid performance over the last year, BJRI has pulled back during recent sessions. The stock is -10.84% below its SMA20 and -6.4% below its SMA50, but remains 15.37% above its SMA200. The stock has gained 82.55% over the last year.
5. DineEquity, Inc. (DIN)
Restaurants Industry. Market cap of $951.37M. Current price at $52.59. Net institutional shares purchased over the current quarter at 984.7K, equivalent to 6.36% of the company's 15.49M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.37). The stock is a short squeeze candidate, with a short float at 11.24% (equivalent to 11.09 days of average volume). It's been a rough couple of days for the stock, losing 8.32% over the last week.
6. CEC Entertainment Inc. (CEC)
Restaurants Industry. Market cap of $767.80M. Current price at $38.71. Net institutional shares purchased over the current quarter at 844.0K, equivalent to 4.48% of the company's 18.85M share float. It's been a rough couple of days for the stock, losing 7.35% over the last week.
7. Domino's Pizza, Inc. (DPZ)
Restaurants Industry. Market cap of $1.64B. Current price at $26.8. Net institutional shares purchased over the current quarter at 1.4M, equivalent to 3.33% of the company's 41.98M share float. The stock has gained 105.1% over the last year.
8. Denny's Corporation (DENN)
Restaurants Industry. Market cap of $368.97M. Current price at $3.75. Net institutional shares purchased over the current quarter at 3.2M, equivalent to 3.27% of the company's 97.81M share float. It's been a rough couple of days for the stock, losing 13.05% over the last week.
9. Buffalo Wild Wings Inc. (BWLD)
Restaurants Industry. Market cap of $1.18B. Current price at $63.7. Net institutional shares purchased over the current quarter at 363.8K, equivalent to 2.02% of the company's 18.00M share float. The stock is a short squeeze candidate, with a short float at 11.44% (equivalent to 5.94 days of average volume). It's been a rough couple of days for the stock, losing 5.95% over the last week.
10. The Cheesecake Factory Incorporated (CAKE)
Restaurants Industry. Market cap of $1.68B. Current price at $28.98. Net institutional shares purchased over the current quarter at 1.0M, equivalent to 1.87% of the company's 53.54M share float. The stock is a short squeeze candidate, with a short float at 16.7% (equivalent to 7.86 days of average volume). It's been a rough couple of days for the stock, losing 6.54% over the last week.
1. The Wendy's Company (WEN)
Restaurants Industry. Market cap of $2.22B. Current price at $5.3. Net institutional shares purchased over the current quarter at 95.3M, equivalent to 31.74% of the company's 300.22M share float. The stock has gained 23.02% over the last year.
2. Bravo Brio Restaurant Group, Inc. (BBRG)
Restaurants Industry. Market cap of $421.02M. Current price at $22.16. Net institutional shares purchased over the current quarter at 3.2M, equivalent to 18.36% of the company's 17.43M share float. The stock is a short squeeze candidate, with a short float at 5.41% (equivalent to 5.63 days of average volume). After a solid performance over the last year, BBRG has pulled back during recent sessions. The stock is -6.2% below its SMA20 and -3.17% below its SMA50, but remains 14.61% above its SMA200. The stock has performed poorly over the last month, losing 12.42%.
3. Ruby Tuesday, Inc. (RT)
Restaurants Industry. Market cap of $590.46M. Current price at $9.09. Net institutional shares purchased over the current quarter at 4.5M, equivalent to 8.69% of the company's 51.79M share float. The stock is a short squeeze candidate, with a short float at 8.41% (equivalent to 5.6 days of average volume). The stock is currently stuck in a downtrend, trading -13.74% below its SMA20, -12.36% below its SMA50, and -25.14% below its SMA200. It's been a rough couple of days for the stock, losing 17.92% over the last week.
4. BJ's Restaurants, Inc. (BJRI)
Restaurants Industry. Market cap of $1.29B. Current price at $46.88. Net institutional shares purchased over the current quarter at 1.8M, equivalent to 7.5% of the company's 24.00M share float. The stock is a short squeeze candidate, with a short float at 16.18% (equivalent to 14.18 days of average volume). After a solid performance over the last year, BJRI has pulled back during recent sessions. The stock is -10.84% below its SMA20 and -6.4% below its SMA50, but remains 15.37% above its SMA200. The stock has gained 82.55% over the last year.
5. DineEquity, Inc. (DIN)
Restaurants Industry. Market cap of $951.37M. Current price at $52.59. Net institutional shares purchased over the current quarter at 984.7K, equivalent to 6.36% of the company's 15.49M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.37). The stock is a short squeeze candidate, with a short float at 11.24% (equivalent to 11.09 days of average volume). It's been a rough couple of days for the stock, losing 8.32% over the last week.
6. CEC Entertainment Inc. (CEC)
Restaurants Industry. Market cap of $767.80M. Current price at $38.71. Net institutional shares purchased over the current quarter at 844.0K, equivalent to 4.48% of the company's 18.85M share float. It's been a rough couple of days for the stock, losing 7.35% over the last week.
7. Domino's Pizza, Inc. (DPZ)
Restaurants Industry. Market cap of $1.64B. Current price at $26.8. Net institutional shares purchased over the current quarter at 1.4M, equivalent to 3.33% of the company's 41.98M share float. The stock has gained 105.1% over the last year.
8. Denny's Corporation (DENN)
Restaurants Industry. Market cap of $368.97M. Current price at $3.75. Net institutional shares purchased over the current quarter at 3.2M, equivalent to 3.27% of the company's 97.81M share float. It's been a rough couple of days for the stock, losing 13.05% over the last week.
9. Buffalo Wild Wings Inc. (BWLD)
Restaurants Industry. Market cap of $1.18B. Current price at $63.7. Net institutional shares purchased over the current quarter at 363.8K, equivalent to 2.02% of the company's 18.00M share float. The stock is a short squeeze candidate, with a short float at 11.44% (equivalent to 5.94 days of average volume). It's been a rough couple of days for the stock, losing 5.95% over the last week.
10. The Cheesecake Factory Incorporated (CAKE)
Restaurants Industry. Market cap of $1.68B. Current price at $28.98. Net institutional shares purchased over the current quarter at 1.0M, equivalent to 1.87% of the company's 53.54M share float. The stock is a short squeeze candidate, with a short float at 16.7% (equivalent to 7.86 days of average volume). It's been a rough couple of days for the stock, losing 6.54% over the last week.
Gold Silver summary week July 30 2011
Gold Silver summary week July 30 2011 : In Asia, equity markets fell as gold hit a record high as optimism for a deal on the debt ceiling in the U.S. began to fade, as talks between the President and congress collapsed, with Democrats and Republicans moving from one proposal to another, with only 1 week to go for the deadline of August 2nd. China was the clear underperformer, tumbling 3% and posting its biggest percentage decline in 6-months, as rail stocks weighed down the overall market following the deadly train cash of a bullet train.
The early selling pressure eased, as plans for a debt ceiling increase from the Republican and Democratic leadership in congress emerged and participants focused on earnings; however the strength found after the early morning weakness waned as politicians continued with their bickering about the dueling plans.
And on the commodities front, gold finished higher by 0.7% to $1612.60 per ounce, while Sept silver gained 0.6% to end at $40.36 per ounce. Both metals rallied on the flight to safety. After gold traded to a new time high in the overnight session, the bullion was under pressure from there. Silver momentarily gave back all of its gains, trading into negative territory, but was able to bounce and close in positive territory.
Pan American Silver (NASDAQ:PAAS), the second largest primary silver producer in the world with operations in Argentina, Bolivia, Mexico, and Peru, tumbled 3.71% to $32.54 despite silver trading higher, as the stock was downgraded to a Hold from Buy at Cannacord Genuity.
In the precious metals trade, gold finished higher by 0.3% to $1617.20 per ounce, while Sept silver gained 1.1% to end at $40.80 per ounce. Both metals spent the majority of the session chopping around the unchanged line, but managed to trade into positive territory.
The early selling pressure eased, as plans for a debt ceiling increase from the Republican and Democratic leadership in congress emerged and participants focused on earnings; however the strength found after the early morning weakness waned as politicians continued with their bickering about the dueling plans.
And on the commodities front, gold finished higher by 0.7% to $1612.60 per ounce, while Sept silver gained 0.6% to end at $40.36 per ounce. Both metals rallied on the flight to safety. After gold traded to a new time high in the overnight session, the bullion was under pressure from there. Silver momentarily gave back all of its gains, trading into negative territory, but was able to bounce and close in positive territory.
Pan American Silver (NASDAQ:PAAS), the second largest primary silver producer in the world with operations in Argentina, Bolivia, Mexico, and Peru, tumbled 3.71% to $32.54 despite silver trading higher, as the stock was downgraded to a Hold from Buy at Cannacord Genuity.
In the precious metals trade, gold finished higher by 0.3% to $1617.20 per ounce, while Sept silver gained 1.1% to end at $40.80 per ounce. Both metals spent the majority of the session chopping around the unchanged line, but managed to trade into positive territory.
Stock Market Report Week July 30 2011
Stock Market Report Week July 30 2011 : Stocks ended sharply lower for the week, with the S&P 500 posting its biggest weekly decline in a year, as Washington’s failure to reach a deal to raise the federal government’s debt limit and cut the deficit spurred credit rating downgrade fears, with prospects for a potential default increasing. In Addition to the debt woes, participants had to digest weak economic data, which signaled the economy is growing at a slower rate than expected.
For the week, the blue chip index tumbled 4.24%; the S&P 500 Index lost 3.92% and the NASDAQ fell 3.58%.
At the start of the week, stocks fell amid ongoing jitters regarding the lack of a deal in Washington for the U.S. government to raise its debt ceiling. Dueling plans from Democrats and Republicans in Congress and continuing bickering and posturing raised concern over a possible U.S. credit rating downgrade.
In Asia, equity markets fell as gold hit a record high as optimism for a deal on the debt ceiling in the U.S. began to fade, as talks between the President and congress collapsed, with Democrats and Republicans moving from one proposal to another, with only 1 week to go for the deadline of August 2nd. China was the clear underperformer, tumbling 3% and posting its biggest percentage decline in 6-months, as rail stocks weighed down the overall market following the deadly train cash of a bullet train.
The early selling pressure eased, as plans for a debt ceiling increase from the Republican and Democratic leadership in congress emerged and participants focused on earnings; however the strength found after the early morning weakness waned as politicians continued with their bickering about the dueling plans.
Most of the S&P 500 sectors fell, with only the utilities sector finishing in positive ground and healthcare, consumer staples, and financials posting the biggest declines. The healthcare sector lost more than 1% in the session, with Edwards Lifesciences (NYSE:EW), the maker of tissue replacement heart valves, heart valve repair products, and hemodynamic monitoring devices, tumbling 4.52% to $74.39 despite being upgraded to Outperform from Market Perform at Morgan Keegan, as the stock was still under pressure from its earnings miss last week.
On Tuesday, the market started near the flat line amid a flurry of earnings reports and mixed overseas performance, with the debt ceiling stalemate in Washington weighing on market sentiment around the world. A glimmer of good news in the housing market came as home prices held steady from the prior month in May, the first time in almost a year that prices have not fallen on a monthly basis; however on a yearly basis home prices were still down.
Still stocks closed lower amid some disappointing quarterly results and ongoing concern over the debt ceiling impasse in Washington.
In Asia, equity markets rebounded despite the Washington deadlock regarding the debt ceiling debate, as robust earnings from Canon (NYSE:CAJ) outweighed the strength of the yen and push Japanese stocks higher.
The early selling pressure eased, as plans for a debt ceiling increase from the Republican and Democratic leadership in congress emerged and participants focused on earnings; however the strength found after the early morning weakness waned as politicians continued with their bickering about the dueling plans.
Most of the S&P 500 sectors fell, with only the utilities sector finishing in positive ground and healthcare, consumer staples, and financials posting the biggest declines. The healthcare sector lost more than 1% in the session, with Edwards Lifesciences (NYSE:EW), the maker of tissue replacement heart valves, heart valve repair products, and hemodynamic monitoring devices, tumbling 4.52% to $74.39 despite being upgraded to Outperform from Market Perform at Morgan Keegan, as the stock was still under pressure from its earnings miss last week.
On Tuesday, the market started near the flat line amid a flurry of earnings reports and mixed overseas performance, with the debt ceiling stalemate in Washington weighing on market sentiment around the world. A glimmer of good news in the housing market came as home prices held steady from the prior month in May, the first time in almost a year that prices have not fallen on a monthly basis; however on a yearly basis home prices were still down.
Still stocks closed lower amid some disappointing quarterly results and ongoing concern over the debt ceiling impasse in Washington.
In Asia, equity markets rebounded despite the Washington deadlock regarding the debt ceiling debate, as robust earnings from Canon (NYSE:CAJ) outweighed the strength of the yen and push Japanese stocks higher.
In Europe, markets ended lower amid weak earnings reports from BP (NYSE:BP), STMicroelectronics (NYSE:STM), and UBS (NYSE:UBS) and on ongoing worries over the debt situation on both sides of the Atlantic, with fears over contagion in the euro zone climbing following increased yields in Spain and Italy after bond auctions.
Most of the S&P 500 sectors fell, with only technology posting gains, while industrials, materials, and healthcare posted the biggest declines.
Mid week, stocks tumbled, with the NASDAQ posting the biggest decline, on increased concern over economic growth amid mixed earnings reports, the uncertainty over the debt ceiling stalemate in Washington, and ongoing euro zone debt woes.
On the economic front, The Commerce Department said new orders for durable goods fell 2.1% in June, reversing the previous month's downwardly revised 1.9% increase. Economists had expected orders to gain 0.3%. And the Fed's Beige Book summary of economic conditions across the country said eight of the nation's 12 Fed districts reported moderating growth, suggesting the recovery is not gaining momentum as economists had anticipated.
Losses accelerated in the afternoon after the Beige Book was release and as participants’ unease increased on the lack of a deal in Washington. The S&P 500 closed below its key 50day moving average, which could spark additional downward momentum in the next sessions.
All of the S&P 500 sectors were declining, with Industrials, technology, financials, and materials underperforming the broad market sector, while utilities and consumer staples posted the smallest losses. The industrial sector was bogged down by concern over economic growth following the Fed’s report, second half guidance, and the unexpected drop in durable goods orders.
On Thursday, the market started in positive ground despite mostly lower performance in overseas markets on escalating fears over the lack of a deal in the U.S. to raise the debt ceiling as the August 2nd deadline looms. Futures had been chopping around the neutral line amid earnings reports from DuPont and Exxon Mobil, but moved to the upside after the Labor Department said that Weekly Jobless Claims unexpectedly dropped below the 400,000 mark, snapping a 15-week streak.
Stocks received another dose of better than expected economic news, after the June Pending Home Sales Index climbed 2.4% from May, much better than the expected 3% decline.
However the move higher lost steam over increasing skepticism that politicians in Washington will be able to reach a deal to raise the debt ceiling before the August 2nd deadline, as the House was schedule to vote on a bill later today, which had little chances in the Senate and that the President does not favor.
Most of the S&P 500 sectors closed lower, with only financials closing in positive territory, while consumer staples finished unchanged and industrials, utilities, and consumer discretionary posted the biggest declines.
At the end of the week, stocks closed lower after a late sell-off capped a dismal week for the equity markets, amid weak economic data and a stalemate in Washington that prevents the Congress to pass a bill that will cut the deficit, while increasing the borrowing authority of the U.S. government.
The market started under heavy pressure amid global markets seeing continued weakness, as Washington was not showing any signs of progress on a deal that could raise the borrowing authority of the U.S. government. GDP data showing the economy grew at a anemic 1.3% in the second quarter, while the first quarter also getting a negative revision, added downward pressure, giving more ammunition to the bears.
Despite several attempts to move into positive territory, with the NASDAQ turning mildly positive, the downward pressure from concerns over the anemic economic growth, coupled with the uncertainty of the debt ceiling impasse reignited recessionary fears and talk about a second dip.
All of the S&P 500 sectors finished lower, with materials, utilities, and energy posting the biggest declines, while financials and the consumer discretionary posted the smallest declines.
For the week, the blue chip index tumbled 4.24%; the S&P 500 Index lost 3.92% and the NASDAQ fell 3.58%.
At the start of the week, stocks fell amid ongoing jitters regarding the lack of a deal in Washington for the U.S. government to raise its debt ceiling. Dueling plans from Democrats and Republicans in Congress and continuing bickering and posturing raised concern over a possible U.S. credit rating downgrade.
In Asia, equity markets fell as gold hit a record high as optimism for a deal on the debt ceiling in the U.S. began to fade, as talks between the President and congress collapsed, with Democrats and Republicans moving from one proposal to another, with only 1 week to go for the deadline of August 2nd. China was the clear underperformer, tumbling 3% and posting its biggest percentage decline in 6-months, as rail stocks weighed down the overall market following the deadly train cash of a bullet train.
The early selling pressure eased, as plans for a debt ceiling increase from the Republican and Democratic leadership in congress emerged and participants focused on earnings; however the strength found after the early morning weakness waned as politicians continued with their bickering about the dueling plans.
Most of the S&P 500 sectors fell, with only the utilities sector finishing in positive ground and healthcare, consumer staples, and financials posting the biggest declines. The healthcare sector lost more than 1% in the session, with Edwards Lifesciences (NYSE:EW), the maker of tissue replacement heart valves, heart valve repair products, and hemodynamic monitoring devices, tumbling 4.52% to $74.39 despite being upgraded to Outperform from Market Perform at Morgan Keegan, as the stock was still under pressure from its earnings miss last week.
On Tuesday, the market started near the flat line amid a flurry of earnings reports and mixed overseas performance, with the debt ceiling stalemate in Washington weighing on market sentiment around the world. A glimmer of good news in the housing market came as home prices held steady from the prior month in May, the first time in almost a year that prices have not fallen on a monthly basis; however on a yearly basis home prices were still down.
Still stocks closed lower amid some disappointing quarterly results and ongoing concern over the debt ceiling impasse in Washington.
In Asia, equity markets rebounded despite the Washington deadlock regarding the debt ceiling debate, as robust earnings from Canon (NYSE:CAJ) outweighed the strength of the yen and push Japanese stocks higher.
The early selling pressure eased, as plans for a debt ceiling increase from the Republican and Democratic leadership in congress emerged and participants focused on earnings; however the strength found after the early morning weakness waned as politicians continued with their bickering about the dueling plans.
Most of the S&P 500 sectors fell, with only the utilities sector finishing in positive ground and healthcare, consumer staples, and financials posting the biggest declines. The healthcare sector lost more than 1% in the session, with Edwards Lifesciences (NYSE:EW), the maker of tissue replacement heart valves, heart valve repair products, and hemodynamic monitoring devices, tumbling 4.52% to $74.39 despite being upgraded to Outperform from Market Perform at Morgan Keegan, as the stock was still under pressure from its earnings miss last week.
On Tuesday, the market started near the flat line amid a flurry of earnings reports and mixed overseas performance, with the debt ceiling stalemate in Washington weighing on market sentiment around the world. A glimmer of good news in the housing market came as home prices held steady from the prior month in May, the first time in almost a year that prices have not fallen on a monthly basis; however on a yearly basis home prices were still down.
Still stocks closed lower amid some disappointing quarterly results and ongoing concern over the debt ceiling impasse in Washington.
In Asia, equity markets rebounded despite the Washington deadlock regarding the debt ceiling debate, as robust earnings from Canon (NYSE:CAJ) outweighed the strength of the yen and push Japanese stocks higher.
In Europe, markets ended lower amid weak earnings reports from BP (NYSE:BP), STMicroelectronics (NYSE:STM), and UBS (NYSE:UBS) and on ongoing worries over the debt situation on both sides of the Atlantic, with fears over contagion in the euro zone climbing following increased yields in Spain and Italy after bond auctions.
Most of the S&P 500 sectors fell, with only technology posting gains, while industrials, materials, and healthcare posted the biggest declines.
Mid week, stocks tumbled, with the NASDAQ posting the biggest decline, on increased concern over economic growth amid mixed earnings reports, the uncertainty over the debt ceiling stalemate in Washington, and ongoing euro zone debt woes.
On the economic front, The Commerce Department said new orders for durable goods fell 2.1% in June, reversing the previous month's downwardly revised 1.9% increase. Economists had expected orders to gain 0.3%. And the Fed's Beige Book summary of economic conditions across the country said eight of the nation's 12 Fed districts reported moderating growth, suggesting the recovery is not gaining momentum as economists had anticipated.
Losses accelerated in the afternoon after the Beige Book was release and as participants’ unease increased on the lack of a deal in Washington. The S&P 500 closed below its key 50day moving average, which could spark additional downward momentum in the next sessions.
All of the S&P 500 sectors were declining, with Industrials, technology, financials, and materials underperforming the broad market sector, while utilities and consumer staples posted the smallest losses. The industrial sector was bogged down by concern over economic growth following the Fed’s report, second half guidance, and the unexpected drop in durable goods orders.
On Thursday, the market started in positive ground despite mostly lower performance in overseas markets on escalating fears over the lack of a deal in the U.S. to raise the debt ceiling as the August 2nd deadline looms. Futures had been chopping around the neutral line amid earnings reports from DuPont and Exxon Mobil, but moved to the upside after the Labor Department said that Weekly Jobless Claims unexpectedly dropped below the 400,000 mark, snapping a 15-week streak.
Stocks received another dose of better than expected economic news, after the June Pending Home Sales Index climbed 2.4% from May, much better than the expected 3% decline.
However the move higher lost steam over increasing skepticism that politicians in Washington will be able to reach a deal to raise the debt ceiling before the August 2nd deadline, as the House was schedule to vote on a bill later today, which had little chances in the Senate and that the President does not favor.
Most of the S&P 500 sectors closed lower, with only financials closing in positive territory, while consumer staples finished unchanged and industrials, utilities, and consumer discretionary posted the biggest declines.
At the end of the week, stocks closed lower after a late sell-off capped a dismal week for the equity markets, amid weak economic data and a stalemate in Washington that prevents the Congress to pass a bill that will cut the deficit, while increasing the borrowing authority of the U.S. government.
The market started under heavy pressure amid global markets seeing continued weakness, as Washington was not showing any signs of progress on a deal that could raise the borrowing authority of the U.S. government. GDP data showing the economy grew at a anemic 1.3% in the second quarter, while the first quarter also getting a negative revision, added downward pressure, giving more ammunition to the bears.
Despite several attempts to move into positive territory, with the NASDAQ turning mildly positive, the downward pressure from concerns over the anemic economic growth, coupled with the uncertainty of the debt ceiling impasse reignited recessionary fears and talk about a second dip.
All of the S&P 500 sectors finished lower, with materials, utilities, and energy posting the biggest declines, while financials and the consumer discretionary posted the smallest declines.
Apple (NASDAQ:AAPL) Stock Review week july 30 2011
Apple (NASDAQ:AAPL) Stock Review week july 30 2011 : In the tech sector, Apple (NASDAQ:AAPL), the maker of iPads and iPhones, was a bright star, with shares climbing 1.32% to $398.50 after touching on the $400 per share mark to post a new all-time high. Apple caught a bid as the next catalyst, the launch of the new iPhone 5, following its blow out earnings last week looms.
The company is expected to schedule an event for some time late August, in which it will unveil the nextGen iPhone, which is also expected to be a dual band phone, able to work on CDMA and GSM networks. Numerous brokerages have raised their price targets above $500 per share, as they expect the stock to outperform in the second part of the year. Last week, Apple said that its new Lion OS topped on million downloads in the first day of availability.
Meanwhile, Apple (NASDAQ:AAPL) climbed 1.3% to $403.70 after posting a new all-time high at $404.50, as momentum in the stock continued following the stellar earnings report from last week and as numerous brokerage houses have raised their target prices above $500 as they expect outperformance in the second half of the year to continue amid the launch of the next generation iPhone in September. Apple crossed the $400 mark for the first time ever in regular session, after HTC Corp., the Taiwanese smartphone maker, said that it willing to negotiate with Apple for the use of its patents, after the U.S. International Trade Commission ruled on July 15th that HTC had infringed 2 Apple patents.
Apple (NASDAQ:AAPL) fell 2.68% to $392.59, with the stock accelerating its losses in the afternoon, giving back its prior session gains. Apple was weak along the whole market over uncertainties regarding the global growth amid debt woes, which spur participants to shun risk and take some profits in highflying names like Apple, which have rallied from $310 in mid June.
Apple (NASDAQ:AAPL) fell 0.20% to $391.82 after trading as high as $396.99. During the session, there were some rumors and speculation that the tech giant has discussed internally the possibility to make an offer for Barnes & Noble (NYSE:BKS).
Apple (NASDAQ:AAPL) fell 0.34% to $390.48 after chopping around the neutral line on most of the session after trading as low as $384 on concern over the debt ceiling negotiation and as GDP retreated with consumers pulling back in the first and second quarter and as consumer sentiment fell to the lowest in almost 2 years. The tech giant, which had its cash holdings compared with the U.S. government, was still seeing participants willing to buy on weakness as analysts expect outperformance from Apple in the second half of the year.
The company is expected to schedule an event for some time late August, in which it will unveil the nextGen iPhone, which is also expected to be a dual band phone, able to work on CDMA and GSM networks. Numerous brokerages have raised their price targets above $500 per share, as they expect the stock to outperform in the second part of the year. Last week, Apple said that its new Lion OS topped on million downloads in the first day of availability.
Meanwhile, Apple (NASDAQ:AAPL) climbed 1.3% to $403.70 after posting a new all-time high at $404.50, as momentum in the stock continued following the stellar earnings report from last week and as numerous brokerage houses have raised their target prices above $500 as they expect outperformance in the second half of the year to continue amid the launch of the next generation iPhone in September. Apple crossed the $400 mark for the first time ever in regular session, after HTC Corp., the Taiwanese smartphone maker, said that it willing to negotiate with Apple for the use of its patents, after the U.S. International Trade Commission ruled on July 15th that HTC had infringed 2 Apple patents.
Apple (NASDAQ:AAPL) fell 2.68% to $392.59, with the stock accelerating its losses in the afternoon, giving back its prior session gains. Apple was weak along the whole market over uncertainties regarding the global growth amid debt woes, which spur participants to shun risk and take some profits in highflying names like Apple, which have rallied from $310 in mid June.
Apple (NASDAQ:AAPL) fell 0.20% to $391.82 after trading as high as $396.99. During the session, there were some rumors and speculation that the tech giant has discussed internally the possibility to make an offer for Barnes & Noble (NYSE:BKS).
Apple (NASDAQ:AAPL) fell 0.34% to $390.48 after chopping around the neutral line on most of the session after trading as low as $384 on concern over the debt ceiling negotiation and as GDP retreated with consumers pulling back in the first and second quarter and as consumer sentiment fell to the lowest in almost 2 years. The tech giant, which had its cash holdings compared with the U.S. government, was still seeing participants willing to buy on weakness as analysts expect outperformance from Apple in the second half of the year.
Friday, July 29, 2011
Federated Investors Inc. (NYSE:FII) earnings per share second-quarter 2011
Federated Investors Inc. (NYSE:FII) earnings per share second-quarter 2011 ; Federated Investors Inc. (NYSE:FII) reported second-quarter 2011 earnings per share of 41 cents, in line with the Zacks Consensus Estimate, and below the year-ago earnings of 46 cents. Moreover, the reported earnings were below 43 cents per share reported in the prior quarter.
Results reflected decreased top-line growth, increase in voluntary fee waivers, and augmented operating expenses on a year-over-year basis. This was partly offset by a rise in fixed income and equity assets, higher assets under management (AUM) and a decline in the amortization of deferred sales commissions.
Performance in Detail
Total revenue inched down 2% year over year to $225.8 million and was below the Zacks Consensus Estimate of $243.0 million. The decline was primarily attributable to an increase in voluntary fee waivers, partially offset by a surge in higher revenue related to average money market, fixed-income and equity assets. Moreover, revenue slipped 5% sequentially, owing to an increase in voluntary fee waivers and lower average money market assets.
During the reported quarter, Federated derived 45% of its revenue from money market assets, 54% from fluctuating assets (34% from equity assets and 20% from fixed-income assets) and 1% from other products and services.
Total operating expenses inched up 4% year over year to $153.7 million, primarily reflecting higher professional services fees. However, expenses surged down 16% sequentially due to lower professional service fees related to non-recurring legal charges and lower distribution expense resulting from an increase in fee waivers.
Assets Position
As of June 30, 2011, total AUM was $349.4 billion, up 4% from $336.8 billion as of June 30, 2010 and down 2% from $354.9 billion reported as of March 31, 2011. Average managed assets were $354.2 billion, up from $337.1 billion in the year-ago quarter and down from $356.3 billion in the prior quarter.
At quarter end, fixed-income assets increased 12% year over year and 1% sequentially to $42.4 billion. Equity assets came in at $31.4 billion, up 17% year over year and down 1% from the prior quarter. Further, money market assets in both funds and separate accounts climbed 2% year over year and slipped 2% sequentially to $265.7 billion. Money market mutual fund assets were $236.1 billion in the quarter, up 2% year over year and down 1% sequentially.
As of June 30, 2011, cash and other investments were $294.1 million, down from $317.5 million as on March 31, 2011. However, total long-term debt was $435.0 million, up from $353.0 million as on March 31, 2011.
Share Repurchase and Dividend Update
During the reported quarter, Federated Investors purchased 338,512 shares of Federated Class B common stock for $7.4 million.
The board of Federated Investors declared a quarterly dividend of 24 cents per share, payable on August 15, 2011 to shareholders of record as of August 8, 2011.
Competitor Performance
Federated’s closest competitor, The Blackstone Group’s (NYSE:BX) second-quarter 2011 economic net income (ENI) was 63 cents per share, substantially outpacing the Zacks Consensus Estimate of 34 cents, as well as the prior-year quarter’s ENI of 18 cents. ENI came in at $703.3 million for the reported quarter compared with $205.2 million in the year-ago quarter.
The increase was primarily driven by improved investment performance in all the segments. The upbeat performance was aided by strong revenue growth, improved equity markets and lower operating expenses. Blackstone’s AUM also continued to show significant growth.
Our Take
We expect downward pressure on AUM, flows and margins. Regulatory backdrop, waning equity markets and sluggish global economic growth are anticipated to keep earnings under pressure. However, Federated has the potential for substantial growth in the long run, given its fairly healthy balance sheet and a diversified asset base as well as product mix. Nevertheless, the near-term outlook remains cautious and we wait for a strong and steady rebound that will help increase market activity and regenerate client demand.
Results reflected decreased top-line growth, increase in voluntary fee waivers, and augmented operating expenses on a year-over-year basis. This was partly offset by a rise in fixed income and equity assets, higher assets under management (AUM) and a decline in the amortization of deferred sales commissions.
Performance in Detail
Total revenue inched down 2% year over year to $225.8 million and was below the Zacks Consensus Estimate of $243.0 million. The decline was primarily attributable to an increase in voluntary fee waivers, partially offset by a surge in higher revenue related to average money market, fixed-income and equity assets. Moreover, revenue slipped 5% sequentially, owing to an increase in voluntary fee waivers and lower average money market assets.
During the reported quarter, Federated derived 45% of its revenue from money market assets, 54% from fluctuating assets (34% from equity assets and 20% from fixed-income assets) and 1% from other products and services.
Total operating expenses inched up 4% year over year to $153.7 million, primarily reflecting higher professional services fees. However, expenses surged down 16% sequentially due to lower professional service fees related to non-recurring legal charges and lower distribution expense resulting from an increase in fee waivers.
Assets Position
As of June 30, 2011, total AUM was $349.4 billion, up 4% from $336.8 billion as of June 30, 2010 and down 2% from $354.9 billion reported as of March 31, 2011. Average managed assets were $354.2 billion, up from $337.1 billion in the year-ago quarter and down from $356.3 billion in the prior quarter.
At quarter end, fixed-income assets increased 12% year over year and 1% sequentially to $42.4 billion. Equity assets came in at $31.4 billion, up 17% year over year and down 1% from the prior quarter. Further, money market assets in both funds and separate accounts climbed 2% year over year and slipped 2% sequentially to $265.7 billion. Money market mutual fund assets were $236.1 billion in the quarter, up 2% year over year and down 1% sequentially.
As of June 30, 2011, cash and other investments were $294.1 million, down from $317.5 million as on March 31, 2011. However, total long-term debt was $435.0 million, up from $353.0 million as on March 31, 2011.
Share Repurchase and Dividend Update
During the reported quarter, Federated Investors purchased 338,512 shares of Federated Class B common stock for $7.4 million.
The board of Federated Investors declared a quarterly dividend of 24 cents per share, payable on August 15, 2011 to shareholders of record as of August 8, 2011.
Competitor Performance
Federated’s closest competitor, The Blackstone Group’s (NYSE:BX) second-quarter 2011 economic net income (ENI) was 63 cents per share, substantially outpacing the Zacks Consensus Estimate of 34 cents, as well as the prior-year quarter’s ENI of 18 cents. ENI came in at $703.3 million for the reported quarter compared with $205.2 million in the year-ago quarter.
The increase was primarily driven by improved investment performance in all the segments. The upbeat performance was aided by strong revenue growth, improved equity markets and lower operating expenses. Blackstone’s AUM also continued to show significant growth.
Our Take
We expect downward pressure on AUM, flows and margins. Regulatory backdrop, waning equity markets and sluggish global economic growth are anticipated to keep earnings under pressure. However, Federated has the potential for substantial growth in the long run, given its fairly healthy balance sheet and a diversified asset base as well as product mix. Nevertheless, the near-term outlook remains cautious and we wait for a strong and steady rebound that will help increase market activity and regenerate client demand.
Anglo American Plc half profit rose 41 percent
Anglo American Plc half profit rose 41 percent : Anglo American Plc, part-owner of the world's biggest platinum and diamond producers, said first- half profit rose 41 percent, missing estimates, as it confronts "very strong headwinds" on costs.
Underlying earnings climbed to $3.1 billion, or $2.58 a share, from $2.2 billion, or $1.84 a share, a year earlier, Anglo said today in a statement. That compares with the $2.63-a- share mean estimate of eight analysts surveyed by Bloomberg News and Anglo's consensus of $2.59.
The benefit of rising metal prices, up 65 percent in the past two years on the LMEX London Metals Index, has been eroded by energy and labor costs. In South Africa, where power prices climbed 26 percent this year, workers are on strike to demand pay increases of more than 10 percent. Anglo copper sales fell 12 percent as rain curbed output across the southern hemisphere.
Anglo's announcement of a 28 cent-a-share dividend today is "disappointing," Peter Davey, head of mining research at SBG Securities, said by phone from London. He said he expected a payment closer to 40 cents. "The performance is a bit disappointing as well, especially in copper." Bloomberg's dividend estimate was for 29 cents.
The second half should be "stronger," Chief Executive Officer Cynthia Carroll told investors in London today. Anglo has raised the price outlook for all the materials it produces, she said.
Underlying earnings climbed to $3.1 billion, or $2.58 a share, from $2.2 billion, or $1.84 a share, a year earlier, Anglo said today in a statement. That compares with the $2.63-a- share mean estimate of eight analysts surveyed by Bloomberg News and Anglo's consensus of $2.59.
The benefit of rising metal prices, up 65 percent in the past two years on the LMEX London Metals Index, has been eroded by energy and labor costs. In South Africa, where power prices climbed 26 percent this year, workers are on strike to demand pay increases of more than 10 percent. Anglo copper sales fell 12 percent as rain curbed output across the southern hemisphere.
Anglo's announcement of a 28 cent-a-share dividend today is "disappointing," Peter Davey, head of mining research at SBG Securities, said by phone from London. He said he expected a payment closer to 40 cents. "The performance is a bit disappointing as well, especially in copper." Bloomberg's dividend estimate was for 29 cents.
The second half should be "stronger," Chief Executive Officer Cynthia Carroll told investors in London today. Anglo has raised the price outlook for all the materials it produces, she said.
Eldorado Gold Corp's Net profit rose in the second quarter 2011
Eldorado Gold Corp's Net profit rose in the second quarter 2011 ; Eldorado Gold Corp's (ELD.TO: Quote) profit rose in the second quarter on higher gold prices, but the company trimmed its 2011 production forecast because of a construction delay at processing facility.
Net income rose to $74.9 million, or 14 cents a share, from $55.7 million, or 10 cents a share, in the second quarter of 2010. Revenue rose to $251.4 million from $206.4 million, the company said in a release on Thursday evening.
Production fell to 162,429 ounces from 167,940 in the same period of 2010
"I'm very pleased with the performance in the second quarter. Our four operating gold mines continue to perform at or better than planned in terms of both costs and production levels," said Chief Executive Paul Wright on a conference call on Friday.
The Vancouver-based gold miner revised its 2011 production forecast lower to a range of 700,000 to 725,000 ounces at average cash operating costs of $390 to $410 an ounce. The previous forecast was 715,000 to 770,000 ounces at $375 to $395 each.
Net income rose to $74.9 million, or 14 cents a share, from $55.7 million, or 10 cents a share, in the second quarter of 2010. Revenue rose to $251.4 million from $206.4 million, the company said in a release on Thursday evening.
Production fell to 162,429 ounces from 167,940 in the same period of 2010
"I'm very pleased with the performance in the second quarter. Our four operating gold mines continue to perform at or better than planned in terms of both costs and production levels," said Chief Executive Paul Wright on a conference call on Friday.
The Vancouver-based gold miner revised its 2011 production forecast lower to a range of 700,000 to 725,000 ounces at average cash operating costs of $390 to $410 an ounce. The previous forecast was 715,000 to 770,000 ounces at $375 to $395 each.
Thursday, July 28, 2011
stock market prediction august 2011
stock market prediction august 2011, market forecast 2 august, market outlook august 2011 : The debt-ceiling negotiations are now like a heavy weight hanging over the stock market. The Dow Jones Industrial Average fell 195.87 points Wednesday, which was the fourth consecutive loss
As the Aug. 2 debt deadline approaches, investors can envision everything from the stock market dropping like a rock – perhaps as much as 20 percent – to the economy shrinking as government vendors lay off thousands of workers. In short, the worst that could happen.
In this worst-case scenario, the stock market could fall between 10 percent and 15 percent, Lamkin says. “You could see a drop of 1,200 points in consecutive days,” he warns. “It would really depend on how long the default went on.
As the Aug. 2 debt deadline approaches, investors can envision everything from the stock market dropping like a rock – perhaps as much as 20 percent – to the economy shrinking as government vendors lay off thousands of workers. In short, the worst that could happen.
In this worst-case scenario, the stock market could fall between 10 percent and 15 percent, Lamkin says. “You could see a drop of 1,200 points in consecutive days,” he warns. “It would really depend on how long the default went on.
Good Reasons to Buy NetApp (NTAP) Stocks
Good Reasons to Buy NetApp (NTAP) Stocks ; Thursday’s market looks like it could go in either direction. In the next few trading days, we are likely to experience greater volatility until the debt ceiling situation gets resolved. We should expect a decent pop when that event happens, but we will remain stuck in the same trading range we have been in for months (1250-1350 on the S&P) in the near term. I plan to take advantage of any continued selloff by establishing a new position in NetApp (NTAP).
NetApp, Inc. provides enterprise storage and data management software and hardware products and services in the United States and internationally. The company provides solutions for storing, managing, protecting, and archiving business data. It offers fabric-attached storage and V-series storage solutions that support mix of storage area network, network-attached storage, and Internet small computer system interface environments; storage management and application integration software.
Here are nine reasons to own NTAP at $47 and change:
* It has beaten earnings each of the last four quarters and earnings estimates have risen substantially for 2011 and 2012 in the last 90 days.
* NTAP sells at 18.5 times this year’s consensus EPS but only 16 times next year’s projected earnings. It is actually cheaper than it appears as it has over $10 per share of net cash on its balance sheet.
* NTAP is trading in the bottom end of its five year valuation range based on P/E, P/B and P/CF.
* It is increasing its market share in storage. Credit Suisse estimates it grew it market share from 11.5% to 18% in 2010.
* It has grown earnings per share by an average of 17% annually over the past five years despite very slow economic growth and is priced at a reasonable 5 year projected PEG of 1.08. S&P projects it will grow earnings by an average of 15% annually over the next three years.
* Much like rival EMC, it is a secular play on the growth of social media and cloud computing, which should provide strong tailwinds for the foreseeable future.
* It looks to have good six month technical support at the $45 level.
* Given NTAP’s reasonable valuations, market value and great growth prospects; it easily could become a buyout target.
* At $47, it is under analysts’ estimates. S&P has a strong buy rating and a price target of $68 on NTAP. Credit Suisse is at $62 on NTAP and Goldman Sachs and Susquehanna have price targets of $57.
NetApp, Inc. provides enterprise storage and data management software and hardware products and services in the United States and internationally. The company provides solutions for storing, managing, protecting, and archiving business data. It offers fabric-attached storage and V-series storage solutions that support mix of storage area network, network-attached storage, and Internet small computer system interface environments; storage management and application integration software.
Here are nine reasons to own NTAP at $47 and change:
* It has beaten earnings each of the last four quarters and earnings estimates have risen substantially for 2011 and 2012 in the last 90 days.
* NTAP sells at 18.5 times this year’s consensus EPS but only 16 times next year’s projected earnings. It is actually cheaper than it appears as it has over $10 per share of net cash on its balance sheet.
* NTAP is trading in the bottom end of its five year valuation range based on P/E, P/B and P/CF.
* It is increasing its market share in storage. Credit Suisse estimates it grew it market share from 11.5% to 18% in 2010.
* It has grown earnings per share by an average of 17% annually over the past five years despite very slow economic growth and is priced at a reasonable 5 year projected PEG of 1.08. S&P projects it will grow earnings by an average of 15% annually over the next three years.
* Much like rival EMC, it is a secular play on the growth of social media and cloud computing, which should provide strong tailwinds for the foreseeable future.
* It looks to have good six month technical support at the $45 level.
* Given NTAP’s reasonable valuations, market value and great growth prospects; it easily could become a buyout target.
* At $47, it is under analysts’ estimates. S&P has a strong buy rating and a price target of $68 on NTAP. Credit Suisse is at $62 on NTAP and Goldman Sachs and Susquehanna have price targets of $57.
Apple NASDAQ:AAPL, stock prices july 28 2011
Apple NASDAQ:AAPL, stock prices july 28 2011 : Nine days after Apple (AAPL) blasted through earnings estimates, the stock is performing better than the market overall -- a sign that about the only thing that can knock the stock down is financial panic.
The stock hit $400 a share on Monday and reached an all-time high of $404.50 on Tuesday before closing at $403.41. The Dow Jones industrials ($INDU) lost nearly 180 points on those two days. On Wednesday, the Dow slumped 199 points, and Apple fell back to $392.59.
Today, Apple is up 1% to $396.48, contributing nearly 3.5 points to the 30-point gain of the Nasdaq-100 Index ($NDX.X). It's up 4.8% from its July 19 close -- before the company released its fiscal-third-quarter profits. The Nasdaq-100 is down very slightly from its July 19 close; the Dow is off about 1.9%.
The stock hit $400 a share on Monday and reached an all-time high of $404.50 on Tuesday before closing at $403.41. The Dow Jones industrials ($INDU) lost nearly 180 points on those two days. On Wednesday, the Dow slumped 199 points, and Apple fell back to $392.59.
Today, Apple is up 1% to $396.48, contributing nearly 3.5 points to the 30-point gain of the Nasdaq-100 Index ($NDX.X). It's up 4.8% from its July 19 close -- before the company released its fiscal-third-quarter profits. The Nasdaq-100 is down very slightly from its July 19 close; the Dow is off about 1.9%.
Apple (AAPL) stock prices prediction 2012 - 2013
Apple (AAPL) stock prices prediction 2012 - 2013 ; IPhone and iPad sales are booming. There are new Mac computers in the pipeline. The stock hit $400 earlier this week. The only threats: The stock market and Steve Jobs' health.
Nine days after Apple (AAPL) blasted through earnings estimates, the stock is performing better than the market overall -- a sign that about the only thing that can knock the stock down is financial panic.
In fact, the one certainty about Apple right now is that it's hard to find anyone who thinks there's something wrong with the company or the stock. The one issue that's been able to knock Apple shares lower have been concerns about CEO Steve Jobs' health.
The stock is up 23% this year, and there are projections that it will overtake Exxon Mobil (XOM) as the world's most valuable company in no more than 12 months. Exxon's market capitalization is about $406 billion; Apple's is $366 billion.
Nicholae Mihalache, a Romanian mathematician who teaches at the University of Paris, told CNN Money he thinks Apple shares could hit $550 next year and $850 by the end of 2013.
The stock hit $400 a share on Monday and reached an all-time high of $404.50 on Tuesday before closing at $403.41. The Dow Jones industrials ($INDU) lost nearly 180 points on those two days. On Wednesday, the Dow slumped 199 points, and Apple fell back to $392.59.
Today, Apple is up 1% to $396.48, contributing nearly 3.5 points to the 30-point gain of the Nasdaq-100 Index ($NDX.X). It's up 4.8% from its July 19 close -- before the company released its fiscal-third-quarter profits. The Nasdaq-100 is down very slightly from its July 19 close; the Dow is off about 1.9%.
So far, Apple's biggest problem is making enough iPads, iPhones and Macintosh computers to satisfy the demand. IPhone unit sales were up 142% from a year ago. IPad sales were up 150%. And the iPhone has a new model coming out probably in mid-September. The company is likely to generate more than $100 billion in revenue in the current fiscal year.
Sure, Apple could saturate the potential market for iPhones and iPads. But it may take some years and new products that supplant them.
The iPod is instructive here. Sales of iPods have been slipping. Unit sales were off 20% and revenue of $1.32 billion was down 14% from a year ago. Weep not for the iPod, however. It's still a pretty good business with sales of maybe $5.2 billion.
And even if the iPod business isn't growing, its legacy is easily assured. The iPod started Apple's transformation from a cool maker of computers to a cool maker of gadgets and computers. That's why the company changed its name in 2007 from Apple Computer to simply Apple.
When it comes to smartphone sales, Apple is in a pretty tough dog-fight. Phones built on Google's Android platform are ramping up, but none has a brand name that's as instantaneously recognizable as iPhone -- which, by the way, is a $50-billion-a-year business by itself. And the iPhone's cachet is that there are millions of aps that go along with it.
At the same time, the iPhone has devastated the image of Research In Motion's (RIMM) BlackBerry as a must-have device. RIM sales are still climbing, but profit margins are shrinking, and the company's management structure is under fine. The stock is off 55% this year alone.
And the iPad is fast turning into a must-have gadget that developers have turned into something business can use. Since Apple invented the tablet, no one has come close to creating a competitive product. Doctors use it to upload X-rays and medical records. Apple is using what it's learned from the iPad to design a new ultralight Mac computer that may compete with offerings from other computer makers.
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Nine days after Apple (AAPL) blasted through earnings estimates, the stock is performing better than the market overall -- a sign that about the only thing that can knock the stock down is financial panic.
In fact, the one certainty about Apple right now is that it's hard to find anyone who thinks there's something wrong with the company or the stock. The one issue that's been able to knock Apple shares lower have been concerns about CEO Steve Jobs' health.
The stock is up 23% this year, and there are projections that it will overtake Exxon Mobil (XOM) as the world's most valuable company in no more than 12 months. Exxon's market capitalization is about $406 billion; Apple's is $366 billion.
Nicholae Mihalache, a Romanian mathematician who teaches at the University of Paris, told CNN Money he thinks Apple shares could hit $550 next year and $850 by the end of 2013. The stock hit $400 a share on Monday and reached an all-time high of $404.50 on Tuesday before closing at $403.41. The Dow Jones industrials ($INDU) lost nearly 180 points on those two days. On Wednesday, the Dow slumped 199 points, and Apple fell back to $392.59.
Today, Apple is up 1% to $396.48, contributing nearly 3.5 points to the 30-point gain of the Nasdaq-100 Index ($NDX.X). It's up 4.8% from its July 19 close -- before the company released its fiscal-third-quarter profits. The Nasdaq-100 is down very slightly from its July 19 close; the Dow is off about 1.9%.
So far, Apple's biggest problem is making enough iPads, iPhones and Macintosh computers to satisfy the demand. IPhone unit sales were up 142% from a year ago. IPad sales were up 150%. And the iPhone has a new model coming out probably in mid-September. The company is likely to generate more than $100 billion in revenue in the current fiscal year.
Sure, Apple could saturate the potential market for iPhones and iPads. But it may take some years and new products that supplant them.
The iPod is instructive here. Sales of iPods have been slipping. Unit sales were off 20% and revenue of $1.32 billion was down 14% from a year ago. Weep not for the iPod, however. It's still a pretty good business with sales of maybe $5.2 billion.
And even if the iPod business isn't growing, its legacy is easily assured. The iPod started Apple's transformation from a cool maker of computers to a cool maker of gadgets and computers. That's why the company changed its name in 2007 from Apple Computer to simply Apple.
When it comes to smartphone sales, Apple is in a pretty tough dog-fight. Phones built on Google's Android platform are ramping up, but none has a brand name that's as instantaneously recognizable as iPhone -- which, by the way, is a $50-billion-a-year business by itself. And the iPhone's cachet is that there are millions of aps that go along with it.
At the same time, the iPhone has devastated the image of Research In Motion's (RIMM) BlackBerry as a must-have device. RIM sales are still climbing, but profit margins are shrinking, and the company's management structure is under fine. The stock is off 55% this year alone.
And the iPad is fast turning into a must-have gadget that developers have turned into something business can use. Since Apple invented the tablet, no one has come close to creating a competitive product. Doctors use it to upload X-rays and medical records. Apple is using what it's learned from the iPad to design a new ultralight Mac computer that may compete with offerings from other computer makers.
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Deutsche Boerse AG net profit second quarter 2011
Deutsche Boerse AG net profit second quarter 2011 : German stock market operator Deutsche Boerse says its second quarter sales dipped slightly but net profit rose by 11 percent to euro179 million ($258 million) from euro161 million a year earlier.
The company said Thursday a decline in revenues of 6 percent from euro564 million to euro529 million due to lower equity market volatility was compensated through "rigorous cost discipline."
Deutsche Boerse AG is set to merge with New York Stock Exchange operator NYSE Euronext, creating the world's largest exchange operator.
It says total costs were down by 19 percent from euro356 million to euro289 million, including costs of euro19 million stemming from the planned merger.
Deutsche Boerse runs the Frankfurt Stock Exchange, while NYSE Euronext also owns bourses in Paris, Lisbon, Brussels and Amsterdam.
The company said Thursday a decline in revenues of 6 percent from euro564 million to euro529 million due to lower equity market volatility was compensated through "rigorous cost discipline."
Deutsche Boerse AG is set to merge with New York Stock Exchange operator NYSE Euronext, creating the world's largest exchange operator.
It says total costs were down by 19 percent from euro356 million to euro289 million, including costs of euro19 million stemming from the planned merger.
Deutsche Boerse runs the Frankfurt Stock Exchange, while NYSE Euronext also owns bourses in Paris, Lisbon, Brussels and Amsterdam.
impact US debt ceiling crisis on US dollar and gold prices
impact US debt ceiling crisis on US dollar and gold prices ; In a nationally televised speech to the nation this week, President Obama warned of dire consequences if Republicans and Democrats can't agree to raise the national debt ceiling by August 2.2011
"If that happens, and we default," said Obama, "we would not have enough money to pay all of our bills -- bills that include monthly Social Security checks, veterans' benefits, and the government contracts we've signed with thousands of businesses."
What is the relationship between the US dollar and gold prices?
As the world's supreme hard asset for centuries, logically, gold is inversely correlated with the world's supreme paper asset, the US dollar (the world’s reserve currency).
This relationship, however, is not perfect and there have been times when investors have turned to both gold and the US dollar simultaneously in their search for safe haven assets.
In the long run, however, we expect the USD/gold inverse relationship to hold; this should be the case for as long as the USD is the world's principal reserve currency.
The USD on a trade-weighted basis is still close to new lows. On a multi-year basis, the USD has been depreciating for decades and in the long run a decline of the USD would continue to help gold prices.
• Will the decision made by the US on its debt ceiling impact gold?
In our view, concern around the long-term ability of the US to repay its debt is one of the factors behind the long-term rally in gold. These concerns are now coming to a head as politicians struggle to negotiate deficit reduction measures in exchange for an increase in the debt ceiling by the 2 August 2011 deadline.
Yet if the gold rally is at least partly predicated on long-term credit concerns, then we believe the long-term view still looks positive for gold as foreign creditors holding US assets will have to cope with very low yields on US treasuries while at the same time facing a generally depreciating currency.
When looked at from this perspective, we believe gold is still attractive as an alternative asset to diversify USD exposure in the longer term. It would seem this has been the rationale behind central banks change of attitude since 2008, becoming net buyers of gold to diversify some of their USD exposure.
• What is your outlook for gold?
We remain constructive towards the gold price and in particular towards gold equities. Gold demand remains robust and we believe the current environment is positive for a safe haven asset such as gold, with European sovereign debt concerns spreading to larger economies such as Italy and Spain, and the US struggling to negotiate an increase in the debt ceiling by 2 August 2011.
Looking ahead, we believe it will continue to be well supported in a world of negative real interest rates, given inflation in both developed and developing markets, central bank buying (from developing economies in particular) US dollar depreciation and continuing sovereign debt issues. (source;http://www.investmentweek.co.uk/)
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"If that happens, and we default," said Obama, "we would not have enough money to pay all of our bills -- bills that include monthly Social Security checks, veterans' benefits, and the government contracts we've signed with thousands of businesses."
What is the relationship between the US dollar and gold prices?
As the world's supreme hard asset for centuries, logically, gold is inversely correlated with the world's supreme paper asset, the US dollar (the world’s reserve currency).
This relationship, however, is not perfect and there have been times when investors have turned to both gold and the US dollar simultaneously in their search for safe haven assets.
In the long run, however, we expect the USD/gold inverse relationship to hold; this should be the case for as long as the USD is the world's principal reserve currency.
The USD on a trade-weighted basis is still close to new lows. On a multi-year basis, the USD has been depreciating for decades and in the long run a decline of the USD would continue to help gold prices.
• Will the decision made by the US on its debt ceiling impact gold?
In our view, concern around the long-term ability of the US to repay its debt is one of the factors behind the long-term rally in gold. These concerns are now coming to a head as politicians struggle to negotiate deficit reduction measures in exchange for an increase in the debt ceiling by the 2 August 2011 deadline.
Yet if the gold rally is at least partly predicated on long-term credit concerns, then we believe the long-term view still looks positive for gold as foreign creditors holding US assets will have to cope with very low yields on US treasuries while at the same time facing a generally depreciating currency.
When looked at from this perspective, we believe gold is still attractive as an alternative asset to diversify USD exposure in the longer term. It would seem this has been the rationale behind central banks change of attitude since 2008, becoming net buyers of gold to diversify some of their USD exposure.
• What is your outlook for gold?
We remain constructive towards the gold price and in particular towards gold equities. Gold demand remains robust and we believe the current environment is positive for a safe haven asset such as gold, with European sovereign debt concerns spreading to larger economies such as Italy and Spain, and the US struggling to negotiate an increase in the debt ceiling by 2 August 2011.
Looking ahead, we believe it will continue to be well supported in a world of negative real interest rates, given inflation in both developed and developing markets, central bank buying (from developing economies in particular) US dollar depreciation and continuing sovereign debt issues. (source;http://www.investmentweek.co.uk/)
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Wednesday, July 27, 2011
Coffee Holding (JVA) Stock prices Down July 27 2011
Coffee Holding (JVA) Stock prices Down July 27 2011 : Coffee Holding (JVA) is one of today's notable stocks in decline, down 5.8% to $17.98. The S&P is currently trading 1% lower to 1,319 and the Dow Jones Industrial Average is trading 0.7% lower to 12,411.
In the last five trading sessions, the 50-day MA has climbed 5.9% while the 200-day MA has risen 3.55%.
In the past 52 weeks, shares of Coffee Holding have traded between a low of $3.67 and a high of $30.98 and are now at $17.98, which is 390% above that low price.
In the last five trading sessions, the 50-day MA has climbed 5.9% while the 200-day MA has risen 3.55%.
In the past 52 weeks, shares of Coffee Holding have traded between a low of $3.67 and a high of $30.98 and are now at $17.98, which is 390% above that low price.
tips to rollover a 401k to an IRA
tips to rollover a 401k to an IRA ; The good news is that rollovers are really easy to do. You do have to be careful, however, to avoid a few traps that could cost you a small fortune, A 401k rollover requires just two steps:
* Decide where you want to open your rollover IRA account.
* Initiate the transfer of your retirement account from your 401k to the new IRA.
Let's take a look at each of these steps in some detail.
Rollover options
Before you can roll over a 401k, you must first open the correct type of IRA account. There are several options here, and the two most popular choices are a brokerage account and a mutual fund account.
Brokerage account. Transferring a 401k to a brokerage account is ideal if you want to invest in a variety of stocks, bonds and ETFs. Discount brokers now charge just a few dollars for equity trades, and most rollover IRA accounts have minimal if any fees. Having used Scottrade for my SEP IRA, I can attest to just how easy it is to buy and sell investments online.
As you review the best options for your retirement account, you'll want to consider several factors.
First, make sure the broker offers the type of IRA account you need. If you are opening a standard rollover IRA, you will find that every major online broker offers this type of account. For specialty IRA accounts, like a SEP IRA, however, you'll find many brokers that do not offer that type of account.
Second, you'll want to evaluate fees. The fees to consider include both account maintenance fees and trading fees. Given the competition today among brokerage firms, you will find many low-fee options.
Third, you'll want to look at the trading tools. Many online brokers now offer virtual trading accounts, where you can practice trading without putting your money at risk. The best brokers also offer video tutorials on everything from evaluating stocks to trading options.
How to initiate the 401k rollover
After you've decided where to open your IRA, the next step is to initiate the rollover. Here are the steps I've taken:
* Call your 401k administrator.
The very first thing I did was call my 401k administrator. My 401k was handled by Fidelity, so a call to customer service provided me with all the information I needed. The key questions to ask are whether there are any fees for rolling over a 401k and what forms you need to initiate the transfer. You can also speak with the person at your former employer who handles retirement accounts, but in my experience, they will end up referring you to the company that manages the 401k.
* Call your IRA administrator.
Whether you've chosen a brokerage or mutual fund company for your new IRA, I'd highly recommend calling them too before initiating the transfer. I like to confirm what they need to complete the transfer.
* Initiate a direct transfer.
There are two ways to roll over a 401k into an IRA -- direct transfer and via check. I've always used the direct transfer method. It's easier as you never have to handle a check, and it avoids the possibility of the IRS deeming you to have taken a distribution from your 401k (triggering taxes and potentially a 10% penalty).
Once you initiate the transfer, keep an eye on your accounts to make sure the rollover occurs without a hitch. These can take a few business days, and it always makes me nervous. Once the transfer is complete, your 401k rollover is complete and you're good to go.
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* Decide where you want to open your rollover IRA account.
* Initiate the transfer of your retirement account from your 401k to the new IRA.
Let's take a look at each of these steps in some detail.
Rollover options
Before you can roll over a 401k, you must first open the correct type of IRA account. There are several options here, and the two most popular choices are a brokerage account and a mutual fund account.
Brokerage account. Transferring a 401k to a brokerage account is ideal if you want to invest in a variety of stocks, bonds and ETFs. Discount brokers now charge just a few dollars for equity trades, and most rollover IRA accounts have minimal if any fees. Having used Scottrade for my SEP IRA, I can attest to just how easy it is to buy and sell investments online.
As you review the best options for your retirement account, you'll want to consider several factors.
First, make sure the broker offers the type of IRA account you need. If you are opening a standard rollover IRA, you will find that every major online broker offers this type of account. For specialty IRA accounts, like a SEP IRA, however, you'll find many brokers that do not offer that type of account.
Second, you'll want to evaluate fees. The fees to consider include both account maintenance fees and trading fees. Given the competition today among brokerage firms, you will find many low-fee options.
Third, you'll want to look at the trading tools. Many online brokers now offer virtual trading accounts, where you can practice trading without putting your money at risk. The best brokers also offer video tutorials on everything from evaluating stocks to trading options.
How to initiate the 401k rollover
After you've decided where to open your IRA, the next step is to initiate the rollover. Here are the steps I've taken:
* Call your 401k administrator.
The very first thing I did was call my 401k administrator. My 401k was handled by Fidelity, so a call to customer service provided me with all the information I needed. The key questions to ask are whether there are any fees for rolling over a 401k and what forms you need to initiate the transfer. You can also speak with the person at your former employer who handles retirement accounts, but in my experience, they will end up referring you to the company that manages the 401k.
* Call your IRA administrator.
Whether you've chosen a brokerage or mutual fund company for your new IRA, I'd highly recommend calling them too before initiating the transfer. I like to confirm what they need to complete the transfer.
* Initiate a direct transfer.
There are two ways to roll over a 401k into an IRA -- direct transfer and via check. I've always used the direct transfer method. It's easier as you never have to handle a check, and it avoids the possibility of the IRS deeming you to have taken a distribution from your 401k (triggering taxes and potentially a 10% penalty).
Once you initiate the transfer, keep an eye on your accounts to make sure the rollover occurs without a hitch. These can take a few business days, and it always makes me nervous. Once the transfer is complete, your 401k rollover is complete and you're good to go.
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Charles Schwab plans to introducing all-index-fund 401(k) 2012
Charles Schwab plans to introducing all-index-fund 401(k) ; Charles Schwab Corp. is launching a new lower-cost 401(k) that doesn't have any of the traditional mutual funds you may be used to — those you've selected in the past because of their star mutual fund managers.
Instead it's introducing 401(k) plans with only index funds next year. Index funds are mutual funds assembled to match the performance of a market index.
A second phase of the low-cost offering is a 401(k) with only exchange-traded funds, which will be rolled out later next year. ETFs also track an index like the S&P 500, but they're traded like a stock. Their price changes throughout the day as shares are bought and sold.
Index funds and ETFs are lower-cost options because they do not rely on the expertise of highly-paid fund managers to actively pick stocks. Technology has also made it possible to lower expenses.
These 401(k) accounts will not only simplify the investment options for workers, but will lower the cost by about 60 percent, said James McCool, who heads Schwab's institutional services.
THE DETAILS
Schwab currently offers 401(k) accounts but ranks far behind leaders like Fidelity Investments and Vanguard Group in term of retirement assets it manages. Schwab hopes to take its reputation as a low-cost retail investing business into the 401(k) arena by lowering costs and simplifying investment choices.
McCool says the average managed mutual fund charges from 0.86 percent to 0.95 percent of account assets while the average ETF charges 0.20 percent, McCool said.
"If you follow the money, about 85 percent of the $3 trillion 401(k) industry was built on the back of more expensive and more profitable active fund management," he said. "We're not saying active fund management is bad, that's just a fact."
Fees are an important factor for investors to weigh because they can significantly cut into account returns over time.
Just a 1 percentage point difference in annual fees could cut a worker's account balance by 17 percent over a 20-year period, according to the Government Accountability Office.
McCool said making advice easier to access also is critical to an account's performance, so Schwab's new plans will include professional advice for all participants.
Industry studies have shown just 10 percent of 401(k) investors seek help to invest their money. However, participants who get advice save at twice the rate of those who don't and they have higher account balances, McCool said.
The details of how the workers will get the advice are still being worked out, but he said the idea is for it to be individualized to each participant.(source ; http://www.oregonlive.com )
Instead it's introducing 401(k) plans with only index funds next year. Index funds are mutual funds assembled to match the performance of a market index.
A second phase of the low-cost offering is a 401(k) with only exchange-traded funds, which will be rolled out later next year. ETFs also track an index like the S&P 500, but they're traded like a stock. Their price changes throughout the day as shares are bought and sold.
Index funds and ETFs are lower-cost options because they do not rely on the expertise of highly-paid fund managers to actively pick stocks. Technology has also made it possible to lower expenses.
These 401(k) accounts will not only simplify the investment options for workers, but will lower the cost by about 60 percent, said James McCool, who heads Schwab's institutional services.
THE DETAILS
Schwab currently offers 401(k) accounts but ranks far behind leaders like Fidelity Investments and Vanguard Group in term of retirement assets it manages. Schwab hopes to take its reputation as a low-cost retail investing business into the 401(k) arena by lowering costs and simplifying investment choices.
McCool says the average managed mutual fund charges from 0.86 percent to 0.95 percent of account assets while the average ETF charges 0.20 percent, McCool said.
"If you follow the money, about 85 percent of the $3 trillion 401(k) industry was built on the back of more expensive and more profitable active fund management," he said. "We're not saying active fund management is bad, that's just a fact."
Fees are an important factor for investors to weigh because they can significantly cut into account returns over time.
Just a 1 percentage point difference in annual fees could cut a worker's account balance by 17 percent over a 20-year period, according to the Government Accountability Office.
McCool said making advice easier to access also is critical to an account's performance, so Schwab's new plans will include professional advice for all participants.
Industry studies have shown just 10 percent of 401(k) investors seek help to invest their money. However, participants who get advice save at twice the rate of those who don't and they have higher account balances, McCool said.
The details of how the workers will get the advice are still being worked out, but he said the idea is for it to be individualized to each participant.(source ; http://www.oregonlive.com )
Canara Bank net profit drops Q1 2011
Canara Bank net profit drops Q1 2011 : Public sector lender Canara Bank today posted 28 per cent decline in net profit The lender had posted a net profit of Rs 1,013.3 crore for the corresponding quarter last fiscal, Canara Bank said in a filing to the Bombay Stock Exchange (BSE).
However, total income of the bank increased by 31 per cent during the period to Rs 7,707.5 crore from Rs 5,894.8 crore in the corresponding year-ago period.
The interest income of the bank rose to Rs 7,180.7 crore during the reporting quarter from Rs 5,160.8 crore in the first quarter of the previous fiscal.
Bangalore-based bank's gross non-performing assets (NPAs) rose to 1.67 per cent during the quarter ended June 30 from 1.46 per cent in the same quarter a year ago.
However, total income of the bank increased by 31 per cent during the period to Rs 7,707.5 crore from Rs 5,894.8 crore in the corresponding year-ago period.
The interest income of the bank rose to Rs 7,180.7 crore during the reporting quarter from Rs 5,160.8 crore in the first quarter of the previous fiscal.
Bangalore-based bank's gross non-performing assets (NPAs) rose to 1.67 per cent during the quarter ended June 30 from 1.46 per cent in the same quarter a year ago.
what will happen if us credit rating is downgraded
what will happen if us credit rating is downgraded ; Financial analysts are saying that the United States faces the loss of its top AAA credit rating even if President Barack Obama and Congress reach an agreement in the next few days to raise the nation’s borrowing limit.
Most analysts say they think the president and lawmakers will craft a last-minute deal to raise the country’s $14.3 trillion debt limit before Tuesday’s deadline and avert the possibility that the nation might default on its financial obligations.
Standard & Poor’s earlier this month placed the U.S. government on a negative credit watch, warning that it might cut the country’s credit standing if it does not think the spending cuts under any agreement are big enough.
S&P says it has been looking for spending cuts of $4 trillion over the next decade. The two main plans currently being considered by Congress call for cuts ranging from $2.7 trillion to $3 trillion. The ratings agency has declined to comment on the specific debt and spending proposals.
A credit downgrade for the U.S. could prove detrimental as the country struggles to regain its economic footing. With a lower credit rating, the government’s borrowing costs would likely increase, by $100 billion annually by one estimate. Interest rates on home mortgages, and loans for cars and other purchases could also increase, cutting into consumers’ spending power.
Most analysts say they think the president and lawmakers will craft a last-minute deal to raise the country’s $14.3 trillion debt limit before Tuesday’s deadline and avert the possibility that the nation might default on its financial obligations.
Standard & Poor’s earlier this month placed the U.S. government on a negative credit watch, warning that it might cut the country’s credit standing if it does not think the spending cuts under any agreement are big enough.
S&P says it has been looking for spending cuts of $4 trillion over the next decade. The two main plans currently being considered by Congress call for cuts ranging from $2.7 trillion to $3 trillion. The ratings agency has declined to comment on the specific debt and spending proposals.
A credit downgrade for the U.S. could prove detrimental as the country struggles to regain its economic footing. With a lower credit rating, the government’s borrowing costs would likely increase, by $100 billion annually by one estimate. Interest rates on home mortgages, and loans for cars and other purchases could also increase, cutting into consumers’ spending power.
US Dollar vs Canadian Dollar Interest Rate Forecast 2011
US Dollar vs Canadian Dollar Interest Rate Forecast 2011 ; The market remains confined to a very well defined downtrend off of the 2010 highs and will need to break back above 0.9900 at a minimum to force a shift in the overall structure. However, we are seeing some shorter-term signs of a potential base by 0.9450, and look for any additional weakness from here to be very well supported on dips ahead of 0.9500. Look for a break back above 0.9700 to confirm and accelerate. Only below 0.9500 concerns.
US Dollar / Canadian Dollar Interest Rate Trading Bias: Bearish
An important bounce in Bank of Canada interest rate forecasts has led to a similar move in the Canadian Dollar itself. Twelve month interest rate hike expectations for the Bank of Canada nearly doubled on a surprise jump in Canadian Consumer Price Index inflation data, warning that the central bank may need to move soon to counteract inflationary risks.
All else remaining equal, improved CAD rate prospects could keep the USDCAD lower. Yet the pair’s correlation to crude oil prices continues to trade near record-highs, and the Canadian Dollar’s trajectory may very much depend on moves in energy prices.
Watch future Bank of Canada interest rate decisions, CPI data, and the price of Crude Oil to guide Canadian Dollar price action through the foreseeable future.
US Dollar / Canadian Dollar Valuation Forecast
USDCAD Valuation Bias: Bullish
The disparity between USDCAD spot and PPP-implied exchange rates remains significant at 20.3 percent. Of all the majors, the so-called Loonie is the most sensitive to the implications of June’s QE2 expiration: first, its intimate correlation to the S&P 500 means that the response of market-wide risk sentiment to the likely rise in US borrowing costs will be mirrored in the USDCAD exchange rate; second, Canadian economic growth (and thereby its scope for interest rate hikes) is closely anchored to demand for the country’s exports from the US, so the degree to which higher yields slow the recovery in the world’s top economy will be critical for its Northern neighbor.
On balance, this seems point the way higher for USDCAD, for surely at least some slowdown in US economic activity is in the cards even if the recovery is not altogether derailed (easily the more probable scenario, in our opinion). This points the way lower for the S&P 500 and slashes hopes for any near-term monetary tightening on the part of the Bank of Canada, seemingly opening the door for USDCAD to trim the current valuation gap.
What is Purchasing Power Parity?
One of the oldest and most basic fundamental approaches to determining the “fair” exchange rate of one currency to another relies on the concept of Purchasing Power Parity. This approach says that an identical product should cost the same from one country to another, with the only difference in the price tag accounted for by the exchange rate. For example, if a pencil costs €1 in Europe and $1.20 in the US, the “fair” EURUSD exchange rate should be 1.20. For our purposes, we will use the PPP values provided annually by Bloomberg. We compare these values to current market rates to determine how much each currency is under- or over-valued against the US Dollar. (source http://www.dailyfx.com )
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US Dollar / Canadian Dollar Interest Rate Trading Bias: Bearish
urrency, Central Bank | US Dollar, US Federal Reserve | Canadian Dollar, Bank of Canada | Net USDCAD Spread | Signal |
| 1-Year Expectations(Basis Points) | 16 | 58 | (42) | Bearish |
| Yield in 1 Year(Percent) | 0.41 | 1.58 | (1.17) | Bearish |
An important bounce in Bank of Canada interest rate forecasts has led to a similar move in the Canadian Dollar itself. Twelve month interest rate hike expectations for the Bank of Canada nearly doubled on a surprise jump in Canadian Consumer Price Index inflation data, warning that the central bank may need to move soon to counteract inflationary risks.
All else remaining equal, improved CAD rate prospects could keep the USDCAD lower. Yet the pair’s correlation to crude oil prices continues to trade near record-highs, and the Canadian Dollar’s trajectory may very much depend on moves in energy prices.
Watch future Bank of Canada interest rate decisions, CPI data, and the price of Crude Oil to guide Canadian Dollar price action through the foreseeable future.
US Dollar / Canadian Dollar Valuation Forecast
USDCAD Valuation Bias: Bullish
The disparity between USDCAD spot and PPP-implied exchange rates remains significant at 20.3 percent. Of all the majors, the so-called Loonie is the most sensitive to the implications of June’s QE2 expiration: first, its intimate correlation to the S&P 500 means that the response of market-wide risk sentiment to the likely rise in US borrowing costs will be mirrored in the USDCAD exchange rate; second, Canadian economic growth (and thereby its scope for interest rate hikes) is closely anchored to demand for the country’s exports from the US, so the degree to which higher yields slow the recovery in the world’s top economy will be critical for its Northern neighbor.
On balance, this seems point the way higher for USDCAD, for surely at least some slowdown in US economic activity is in the cards even if the recovery is not altogether derailed (easily the more probable scenario, in our opinion). This points the way lower for the S&P 500 and slashes hopes for any near-term monetary tightening on the part of the Bank of Canada, seemingly opening the door for USDCAD to trim the current valuation gap.
What is Purchasing Power Parity?
One of the oldest and most basic fundamental approaches to determining the “fair” exchange rate of one currency to another relies on the concept of Purchasing Power Parity. This approach says that an identical product should cost the same from one country to another, with the only difference in the price tag accounted for by the exchange rate. For example, if a pencil costs €1 in Europe and $1.20 in the US, the “fair” EURUSD exchange rate should be 1.20. For our purposes, we will use the PPP values provided annually by Bloomberg. We compare these values to current market rates to determine how much each currency is under- or over-valued against the US Dollar. (source http://www.dailyfx.com )
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Banco Santander SA (SAN) Net income Drops second-quarter 2011
Banco Santander SA (SAN) Net income Drops second-quarter 2011 : Banco Santander SA (SAN), Spain’s biggest bank, said second-quarter profit fell 38 percent as loan losses rose in Spain and Brazil and the company set aside money to compensate U.K. customers mis-sold mortgage-loan insurance.
Net income dropped to 1.39 billion euros ($2 billion) from 2.23 billion euros a year earlier, the Santander, Spain-based bank said in a filing to regulators today. Earnings missed the 2.05 billion-euro average estimate of 13 analysts surveyed by Bloomberg as the lender set aside 620 million euros to cover future U.K. loan-protection claims.
Santander fell as much as 3.6 percent in Madrid trading after a decline in profit in its three main markets -- Brazil, the U.K. and Spain -- led the bank to report the lowest quarterly result since 2005. An unexpected surge in loan impairments in Brazil on top of the increase analysts had foreseen in Spain means the bank’s earnings outlook will probably “remain under pressure”
“It’s disappointing that the results don’t just reflect Spain and its problems but other markets as well,” said Peter Braendle, who holds a “small amount” of Santander shares as part of the 57 billion Swiss francs ($71.3 billion) he helps manage at Swisscanto Asset Management in Zurich. “It was a big surprise that profit in Brazil also fell.” (source Bloomberg )
Banco Santander SA (SAN)stock prices prediction, Banco Santander SA (SAN) shares prices forecast, Banco Santander SA (SAN) shares prices today.
Net income dropped to 1.39 billion euros ($2 billion) from 2.23 billion euros a year earlier, the Santander, Spain-based bank said in a filing to regulators today. Earnings missed the 2.05 billion-euro average estimate of 13 analysts surveyed by Bloomberg as the lender set aside 620 million euros to cover future U.K. loan-protection claims.
Santander fell as much as 3.6 percent in Madrid trading after a decline in profit in its three main markets -- Brazil, the U.K. and Spain -- led the bank to report the lowest quarterly result since 2005. An unexpected surge in loan impairments in Brazil on top of the increase analysts had foreseen in Spain means the bank’s earnings outlook will probably “remain under pressure”
“It’s disappointing that the results don’t just reflect Spain and its problems but other markets as well,” said Peter Braendle, who holds a “small amount” of Santander shares as part of the 57 billion Swiss francs ($71.3 billion) he helps manage at Swisscanto Asset Management in Zurich. “It was a big surprise that profit in Brazil also fell.” (source Bloomberg )
Banco Santander SA (SAN)stock prices prediction, Banco Santander SA (SAN) shares prices forecast, Banco Santander SA (SAN) shares prices today.
Dunkin'Brands IPO Stock Symbols
Dunkin'Brands IPO Stock Symbols : Five years after having been the object of a leveraged buyout from private equity groups, Dunkin’ Brands Group, the company that operates popular Dunkin’ Donuts and Baskin Robbins stores, is slated to return to the hands of public owners.In tomorrow’s highly anticipated initial public offering, the company will look to raise more than $400 million through sale of shares when it lists on the Nasdaq (NASDAQ:NDAQ), trading under the ticker symbol (DNKN). Dunkin’ will sell 22.3 million shares, currently priced at $16-18 per share, giving the company a market value of $2.15 billion, or 3.6 times trailing 12-month sales.
Dunkin' Brands (DNKN.O) has raised $422.75 million after pricing its IPO at $19 per share, well above the range set by underwriters, signaling strong demand for this week's biggest deal.
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Saudi stock market prediction in Ramadan 2011
Saudi stock market prediction in Ramadan 2011 : With Ramadan approaching, it is an opportune time to highlight the distinctive patterns of stock market performance in and around the month. We examined this topic in detail in a report issued ahead of Ramadan last year (Stock market performance in Ramadan, July 2010) and in general the performance of the market and of individual sectors in 2010 was in line with the trends we identified.
The ongoing shift in the Hijri calendar against the Gregorian calendar means that normal patterns of pre-Ramadan trading will probably be distorted by the second quarter results, but the trading pattern during and immediately after the month should hold.
A decline over the week before Ramadan: We think this is caused by a combination of investors selling shares to raise money to cover high spending during the month and other investors realizing gains in anticipation of a fall in share prices during Ramadan.
A further fall over the first three weeks of Ramadan: This is probably the result of the same factors that cause the fall in the run-up to Ramadan in addition to investors paying less attention to the market, and therefore investing less, as the month progresses.
A revival in the final week of Ramadan: This move appears to reflect investor buoyancy over the outlook for the post-holiday period.
A consistnt pick up in the weeks following Eid al-Fitr: This is likely to be due to an improvement in investor sentiment stimulated by the revival of trading and of broader activity within the economy following the lull during Ramadan.
Performance by sector was also in line with the historical pattern. Owing to the reclassification of TASI components in mid-2007, we only have enough data to determine a trend for four of the 15 sectors of the TASI. In each case the moves during Ramadan 2010 were in line with the average performance over the previous 10 years. Banks and telecoms both rose faster during Ramadan than on average.
In the case of the former this is because Ramadan is the time of peak spending, which is often funded by borrowing. For telecoms, the influx of foreign pilgrims during Ramadan generates exceptional roaming revenues. The underperformance of cement may be due to much lower sales, as far less construction can take place given shorter working days and fasting workers (this also affects the building and construction sector). The reason for the downturn in the insurance sector is unclear.
Banks and telecoms were among the three sectors that outperformed the 0.7 percent gain in the TASI over the course of Ramadan last year. The other was industrial investment, which is little impacted by Ramadan. Of the remaining sectors that would logically be influenced by Ramadan, agriculture and food was up, which is to be expected during the time of peak food consumption. Retail and hotels were flat, even though Ramadan is a time of high consumer spending and peak hotel occupancy and room rates in Mecca and Medina.
We see no reason why the seasonal trends outlined above should not be repeated this Ramadan, which starts on August 1. While local retail investors continue to dominate stock market trading, the influence of the changes to life during Ramadan cannot fail to impact on share price movements. Whether the full seasonal pattern is maintained over future years will be influenced by the timing of school holidays. As Ramadan moves earlier in the year, it will soon be possible for Saudis to take their main summer vacations after Ramadan and before the schools restart, which would probably dampen the revival in the market that has generally occurred after Eid al-Fitr.
Of course, international events impact on stock market performance throughout the year, and Ramadan is no different. The collapse of Lehman Brothers in 2008, which dramatically intensified the global financial crisis, occurred during Ramadan. One potential risk this Ramadan is the market reaction if the US fails to reach an agreement on extending its debt ceiling by August 2, after which it would be unable to honor all its debts.
Concerns about Eurozone debt, which have recently pushed the TASI down recently despite encouraging second quarter results, should ease over the near terms following the agreement of another debt restructuring for Greece. Major moves in global markets would outweigh the impact of the seasonal pattern around Ramadan on the Saudi stock market.
The ongoing shift in the Hijri calendar against the Gregorian calendar means that normal patterns of pre-Ramadan trading will probably be distorted by the second quarter results, but the trading pattern during and immediately after the month should hold.
A decline over the week before Ramadan: We think this is caused by a combination of investors selling shares to raise money to cover high spending during the month and other investors realizing gains in anticipation of a fall in share prices during Ramadan.
A further fall over the first three weeks of Ramadan: This is probably the result of the same factors that cause the fall in the run-up to Ramadan in addition to investors paying less attention to the market, and therefore investing less, as the month progresses.
A revival in the final week of Ramadan: This move appears to reflect investor buoyancy over the outlook for the post-holiday period.
A consistnt pick up in the weeks following Eid al-Fitr: This is likely to be due to an improvement in investor sentiment stimulated by the revival of trading and of broader activity within the economy following the lull during Ramadan.
Performance by sector was also in line with the historical pattern. Owing to the reclassification of TASI components in mid-2007, we only have enough data to determine a trend for four of the 15 sectors of the TASI. In each case the moves during Ramadan 2010 were in line with the average performance over the previous 10 years. Banks and telecoms both rose faster during Ramadan than on average.
In the case of the former this is because Ramadan is the time of peak spending, which is often funded by borrowing. For telecoms, the influx of foreign pilgrims during Ramadan generates exceptional roaming revenues. The underperformance of cement may be due to much lower sales, as far less construction can take place given shorter working days and fasting workers (this also affects the building and construction sector). The reason for the downturn in the insurance sector is unclear.
Banks and telecoms were among the three sectors that outperformed the 0.7 percent gain in the TASI over the course of Ramadan last year. The other was industrial investment, which is little impacted by Ramadan. Of the remaining sectors that would logically be influenced by Ramadan, agriculture and food was up, which is to be expected during the time of peak food consumption. Retail and hotels were flat, even though Ramadan is a time of high consumer spending and peak hotel occupancy and room rates in Mecca and Medina.
We see no reason why the seasonal trends outlined above should not be repeated this Ramadan, which starts on August 1. While local retail investors continue to dominate stock market trading, the influence of the changes to life during Ramadan cannot fail to impact on share price movements. Whether the full seasonal pattern is maintained over future years will be influenced by the timing of school holidays. As Ramadan moves earlier in the year, it will soon be possible for Saudis to take their main summer vacations after Ramadan and before the schools restart, which would probably dampen the revival in the market that has generally occurred after Eid al-Fitr.
Of course, international events impact on stock market performance throughout the year, and Ramadan is no different. The collapse of Lehman Brothers in 2008, which dramatically intensified the global financial crisis, occurred during Ramadan. One potential risk this Ramadan is the market reaction if the US fails to reach an agreement on extending its debt ceiling by August 2, after which it would be unable to honor all its debts.
Concerns about Eurozone debt, which have recently pushed the TASI down recently despite encouraging second quarter results, should ease over the near terms following the agreement of another debt restructuring for Greece. Major moves in global markets would outweigh the impact of the seasonal pattern around Ramadan on the Saudi stock market.
Tuesday, July 26, 2011
Bank of Ireland (NYSE:IRE ) shares prices july 26 2011
Bank of Ireland (NYSE:IRE ) shares prices july 26 2011 : Bank of Ireland (NYSE:IRE ) is one of today's best performing low-priced stocks, up 5.8% to $1.63 on 1.5x average daily volume. Approximately 6.8 million shares have traded hands today vs. 30-day average volume of 4.4 million shares.
High volume often signals a change in trends. Shares of Bank of Ireland are currently trading above their 50-day moving average (MA) of $1.31 and should find resistance at their 200-day MA of $2.10.
High volume often signals a change in trends. Shares of Bank of Ireland are currently trading above their 50-day moving average (MA) of $1.31 and should find resistance at their 200-day MA of $2.10.
Morgan Stanley average gold price forecast for 2012
Morgan Stanley average gold price forecast for 2012 : Gold prices were flat as some investors shifted focus from the U.S. debt-ceiling stalemate to cash in recent gains while a weaker dollar lured others to increase their gold holdings. The most actively traded contract, for August delivery, was recently up 40 cents at $1,612.60 a troy ounce on the Comex division of the New York Mercantile Exchange.
Thinly traded July-delivery gold had not changed hands at 9:50 a.m. EDT.
Gold futures soared to a record $1,624.30 Monday july 25 2011 after talks between the White House and Republican Party leadership broke down over the weekend. Gold is widely considered a hedge against political and financial risk as it keeps its value better than most other assets during periods of high uncertainty.
Investors are also flocking to buy physical gold, with the metal held in the 25 largest exchange-traded funds rising by 2.9 metric tons to a record 2,175.4 metric tons at the end of Monday.
A weaker dollar also kept gold prices supported. Demand for dollar-denominated gold futures tends to rise when the dollar weakens because the contracts appear cheaper to investors holding foreign currencies.
analysts at Morgan Stanley raised their average gold price forecast for 2012 by 22% to $1,624 a troy ounce as investor demand will likely remain strong amid ongoing government debt concerns. The bank also raised its silver forecast to $36.90 a troy ounce, up 30% from previous estimates
Thinly traded July-delivery gold had not changed hands at 9:50 a.m. EDT.
Gold futures soared to a record $1,624.30 Monday july 25 2011 after talks between the White House and Republican Party leadership broke down over the weekend. Gold is widely considered a hedge against political and financial risk as it keeps its value better than most other assets during periods of high uncertainty.
Investors are also flocking to buy physical gold, with the metal held in the 25 largest exchange-traded funds rising by 2.9 metric tons to a record 2,175.4 metric tons at the end of Monday.
A weaker dollar also kept gold prices supported. Demand for dollar-denominated gold futures tends to rise when the dollar weakens because the contracts appear cheaper to investors holding foreign currencies.
analysts at Morgan Stanley raised their average gold price forecast for 2012 by 22% to $1,624 a troy ounce as investor demand will likely remain strong amid ongoing government debt concerns. The bank also raised its silver forecast to $36.90 a troy ounce, up 30% from previous estimates
Dhaka Stock Exchange General (DGEN) july 26 2011
Dhaka Stock Exchange General (DGEN) july 26 2011 : Stock markets witnessed significant fall in the prices of most issues for the second consecutive day Tuesday. The Dhaka Stock Exchange General (DGEN) index plunged 54 points to reach the lowest value of 6,634 five minutes before closing.With the day's peak at 6,732 points, the DGEN showed favourable signs since opening earlier in the morning till around noon. It kept plunging over the remaining trading hours.
The index lost 0.81 percent from the previous day's closing value of 6,696 points, to fall to 6,642 points. Total trade equalled 2,94,833 and trade value was Tk 1,680.7 crore.
Of the issues traded, 86 advanced, 171 declined and seven remained unchanged.
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