Investor's Business Daily - Investing RSS

NBTY Returns To Growth Track

Sat, 21 Nov 2009 01:33:00 GMT

Right now, nutritional supplement company NBTY (NTY) is benefiting from a strong industry group move. The Cosmetics/Personal Care group was rated No. 15 among 197 groups as of Friday's IBD. NBTY's earnings have made a nice recovery from the recession. Through the quarter ended in March, earnings slid six straight times. That trend appears to have ended. NBTY grew EPS 25% and 232% in the past two quarters while sales jumped 22% and 12%. Sales

Priceline's Bookings Swelling

Sat, 21 Nov 2009 01:10:00 GMT

In ad after ad, Priceline.com (PCLN) pitchman William Shatner portrays "The Negotiator" and declares "No one deals like we do." That message has resonated with recession-hit consumers. Just as bargain-hunters have flocked to discount stores, they've also been drawn to the discount travel Web site plugged by the former "Star Trek" actor. In its third quarter, Priceline's gross travel bookings — representing the value of all travel services bought —

Drugmaker Par Shapes A Base But Needs Time

Sat, 21 Nov 2009 01:02:00 GMT

Generic and branded drugmaker Par Pharmaceutical (PRX) notched a 52-week high in mid-October. It then declined 17% over the next two weeks. The slippage began just before the general market came under pressure in late October. The stock fell under its 10-week moving average in the last week of October. But an experienced chart reader would've seen some positives in the decline. The first down week was in below-average volume. The second down week

Leaders Mostly Quiet As 2 Indexes Suffer Distribution

Sat, 21 Nov 2009 00:25:00 GMT

Stocks lost more ground Friday, but action among leading companies was quiet. Only a couple of top-rated stocks moved up or down in fast trade. The Nasdaq and the NYSE composite sliced off 0.5% each. The S&P 500 fell 0.3%. The blue chip Dow edged down 0.1%. Volume was mixed — up on the NYSE and down on the Nasdaq — despite a trading boost from options expirations. The S&P 500 and the NYSE composite picked up a distribution day, but the Nasdaq and

Chinese, Chemical Stocks Post Some Of Best Profits

Sat, 21 Nov 2009 00:14:00 GMT

Several Chinese companies and some chemical names are among those with the best third-quarter earnings performance in the IBD 100. China Yuchai International (CYD) posted a 292% earnings surge, which helped the diesel engine manufacturer soar to new highs the past couple of weeks. "We successfully shifted our product mix as the Chinese commercial vehicle market is on a healthy recovery track," company President Boo Guan Saw said in the earnings

Most Bonds Slip, But Shorter Debt Bucks Trend As Firms Shore Up Balance Sheets

Fri, 20 Nov 2009 23:31:00 GMT

Most Treasuries retreated Friday as traders cut prices ahead of supply this week, but demand for short-term debt before the year's end pushed those yields to 11-month lows. The Treasury will sell $118 billion in two-, five- and seven-year notes in three separate auctions this week before markets close Thursday for the Thanksgiving holiday. Demand for Treasury debt has remained robust all year, despite the ample supply of notes entering the market

Gold Higher Despite Stronger Dollar, Joining Copper, Softs In Win Column

Fri, 20 Nov 2009 23:31:00 GMT

Commodities ended mixed Friday, with oil falling and some metals and crops rising, as a stronger dollar and concerns about economic recovery offset a report showing record investments in the asset class. Barclays Capital, the global investment bank, said a record $60 billion will have entered commodities by the end of 2009. The report said the oil slump last year gave investors an entry point to diversify into riskier assets. The Barclays figures

Stocks End Lower But Many Leaders Avoid Damage

Fri, 20 Nov 2009 23:30:00 GMT

Stock continued to weaken Friday, though some high-rated stocks avoided much damage. The Nasdaq and NYSE composite lost 0.5% each. The S&P 500 gave up 0.3% and the Dow slipped 0.1%. Volume fell on the Nasdaq, but rose on the NYSE. Ebix (EBIX) shed 2.70, or 5%, to 49.70. The software maker finished lower for the fourth straight week. Ebix's Accumulation/Distribution Rating weakened to a worst-possible E, from A in late October. Dick's Sporting

Options In Focus: Less Maddening Portfolio Allocation

Fri, 20 Nov 2009 23:16:00 GMT

So you think you’ve found a new “baby bull”. The stock in question has sector momentum, technical favor and perhaps is part of an even larger secular theme that’s just taking off. You want to participate with a simple call purchase, but what portfolio allocation is appropriate? Something that needs to be remembered is an option purchase is a wasting asset until proven otherwise. Unlike a stock, which has its risk capped at a price of zero but

Smucker's Results Top Expectations; Stock Breaks Out

Fri, 20 Nov 2009 23:02:00 GMT

J.M. Smucker (SJM), best known for its peanut butter and jelly, posted higher-than-expected quarterly results Friday, driven by strong margins at its Folgers business, and raised its full-year profit outlook. The stock broke out of a 12-week pattern as volume swelled. Overall gross margin rose to 33.8% from 28.9% in the year-ago period. About 90% of the rise in gross profit was because of Folgers, the company said. Gross margin at Folgers, the

Fertilizer Group Leads Market; CF Wins Vote

Fri, 20 Nov 2009 23:02:00 GMT

Fertilizer stocks led the market Friday, capping a week that saw an analyst upgrade and a milestone in a proxy fight. Shareholders of Terra Industries (TRA) elected to its board three nominees proposed by rival CF Industries (CF). The move was the most certain advance to date for CF's eight-month hostile takeover attempt of Sioux City, Iowa-based Terra. Terra management had thus far straight-armed the offer. CF's bid faced deadlines, including a

Ross Stores Shows Steady Profit Growth

Fri, 20 Nov 2009 23:02:00 GMT

Discount retailer Ross Stores (ROST) became the sixth stock to make IBD's Long-Term Investor screen. The list had been devastated by the bear market and recession, sometimes with only a single company meeting the criteria. The screen, found on Investors.com under the Stock Research/Screen Center tab, may be slowly rebuilding. Earlier in the week, Aflac (AFL) popped up on to the computer-generated list. The screen selects stocks based on earnings

China Raises Electric Rates For Businesses

Fri, 20 Nov 2009 23:02:00 GMT

China raised electricity rates for businesses and industries Friday, part of a long-term effort to adjust prices to reflect costs and promote energy saving as the country struggles to meet soaring demand. The 5.7% increase was the first rate hike since July 2008, when electricity tariffs for nonresidential use rose 5%. Residential rates have remained stable since a 1% hike in July 2006, but a residential rate increase is planned for early next

Patient 401(k) Members Win Rewards

Fri, 20 Nov 2009 22:47:00 GMT

Good things happen to those who hang tough. That applies to 401(k) plan members too. Investors in 401(k) plans who stuck to a buy-and-hold strategy even through the darkest weeks of the market downturn are benefiting from several positive trends. Those trends hold lessons for future strategy. Key industry reports show account balances are rebounding, rates of return are rising and company matches are rebounding. "People who stayed the course

Stocks Fall On Mixed Trade

Fri, 20 Nov 2009 22:15:00 GMT

5:15 p.m. Update: A stronger dollar and worse-than-expected results from Dell (DELL) put stocks on the defensive Friday. The Nasdaq lost 0.5%, up from a 0.9% deficit. Dell gapped below its 50-day moving average and lost 10% in about four times average trade. Meanwhile, the NYSE composite also fell 0.5%. The S&P 500 gave up 0.3% and Dow 0.1%. Volume rose on the NYSE, giving the NYSE composite and S&P 500 a distribution day. The Nasdaq avoided a

Rough Day Indicates Uptrend Coming Under Pressure

Fri, 20 Nov 2009 00:51:00 GMT

Bulls lost a key battle Thursday as the major indexes fell sharply in fast trading. The Nasdaq stumbled 1.7%, the NYSE composite 1.5% and the S&P 500 1.3%. The Dow gave up 0.9%. Volume was up across the board, delivering a distribution day to the major indexes. Bank of America gave a weak outlook on the chip industry, downgrading several tech stocks. Economic reports raised fears about the economy's recovery. Thursday's session hampered a market

Most Futures Fall On Dollar Firming, But Gold Edges Up On Fundamentals

Fri, 20 Nov 2009 00:36:00 GMT

Commodities slipped Thursday as patchy economic data and a stronger dollar dented prices for oil, copper and most crops, but gold bucked the trend with a modest rise. The Reuters-Jefferies CRB index, a basket of 19 mostly U.S.-traded commodity futures, fell 1.2% to mark its first lower close in four sessions. "The bubble is bursting a little with crude oil down and the stock market down," said Joe Bedore, floor manager on the Chicago Board of

RidgeWorth Fund's Holdings Yell EPS

Fri, 20 Nov 2009 00:00:00 GMT

One glance at RidgeWorth Aggressive Growth Stock Fund's top holdings tells you that the fund's managers aren't messing around with its main concern: earnings. The list reads like a Who's Who of recent fundamental leadership, starting with Apple (AAPL) and running all the way through Amazon (AMZN) (see graphic at left). Their IBD Earnings Per Share Ratings range from the highest-possible 99 to no lower than 76. And the earnings for the most part

Many Leaders Still Holding Near Highs, Avoid Sell-Offs

Fri, 20 Nov 2009 00:00:00 GMT

Most leading stocks are not breaking down so far, although many are showing signs of wear. Few of the 70 or so stocks in Your Weekly Review are trading below their 10-week moving averages. In fact, dozens have found support at that level in recent weeks. On average, the Weekly Review stocks are less than 6% off their 52-week highs. Some of the leaders of the market uptrend are holding near the previous week's closing prices. This comes despite

Distribution Day Logged As Market Backs Off Again

Thu, 19 Nov 2009 23:56:00 GMT

Stocks were broadly beaten Thursday as volume increased compared to the prior session. The Nasdaq fell 1.7%, the NYSE composite slid 1.5%, the S&P 500 sank 1.3% and the Dow lost 0.9%. Fertilizer maker China Green Agriculture (CGA) fell 0.59 to 16.04 in triple-paced trade. But the stock fell as low as 15 on the opening, and whittled that 9% loss to just 4%. What's more, the day's loss pales in comparison to Wednesday's 27% surge. Ross Stores

CNinsure Base Shows At Least Three Defects

Thu, 19 Nov 2009 23:30:00 GMT

China-based CNinsure (CISG) could be etching a handle in a double-bottom base. A disciplined investor, though, might have trouble getting excited about the pattern because the base has some problems. First, price action is rather wide and loose, especially when compared to last spring's trade. The daily chart shows this most clearly. Trade has grown more and more sloppy since late summer. Wide and loose trade refers to the daily or weekly range

Stock Slide Lifts Bonds Across Spectrum; $118 Billion In Supply Set For Next Week

Thu, 19 Nov 2009 23:24:00 GMT

Treasuries rose Thursday as a sell-off in stocks renewed a safety bid for bonds, reviving their recent winning streak. The S&P 500 and the Nasdaq each fell more than 1%. "Bonds rose because stocks sold off and there's strength at the front end of the market," said John Spinello, chief fixed-income technical strategist at Jefferies. Short-dated bills have been in strong demand as the year's end approaches and appetite for them has extended beyond

Insurers, Banks See Best Sales Growth In Q3

Thu, 19 Nov 2009 23:22:00 GMT

A disconnect between earnings and sales growth among many companies is making it hard to find those with true growth. Under normal circumstances, earnings and sales tend to move in the same direction. More common today are increases in earnings set against declining sales. This is primarily due to companies cutting costs to shore up their earnings. That includes laying off workers or cutting back on R&D. In many markets, those cost cuts are

Aflac Shows Steady Growth In Tough Times

Thu, 19 Nov 2009 23:22:00 GMT

Are long-term stocks returning to life? The answer may be "yes" if the Long-Term Investor screen published each day at Investors.com is any indication. The screen can be found in the Screen Center, under Stock Research on IBD's home page. The list has been savaged by the recession, as both steady earnings growth and stock prices crashed. At times, the screen yielded a single name. The list has now grown to five stocks. The newest entry is Aflac

Australia Is Set For Rebound In 2010-11: OECD

Thu, 19 Nov 2009 23:22:00 GMT

Australia is poised to be one of the strongest of the developed nations. So says the Organization for Economic Cooperation and Development in a report released Thursday. Australia had less exposure to the subprime mess than, say, the U.S. or the U.K. Its proximity to booming China has been, and likely will be, a boon to Australia's export sector. And Australia, a major exporter of metals, minerals and grain, is enjoying the surge in commodity

10 Companies With Top Yields, Dividend Growth

Thu, 19 Nov 2009 23:22:00 GMT

A search of highly rated stocks with strong dividend yields and dividend growth rates finds 10 companies. They range from entertainment to energy to technology. As a group, the stocks have outperformed the S&P 500 by 46% this year. IBD screened its database for stocks with an annualized dividend yield of at least 3%. In addition, all companies needed to have a dividend growth rate of 10% or better. (IBD smooths out the numbers over a

Higher Dollar, Economic Woes Ding Stocks

Thu, 19 Nov 2009 22:15:00 GMT

5:15 p.m. Update: A stronger dollar and economic worries beat up stocks Thursday. But the major indexes again closed off session lows. Hurt by a downgrade in chip issues, the Nasdaq dropped 1.7%. But the tech-heavy index was off as much as 2.4%. The Philadelphia semiconductor index shed 3.4%, finishing below its 50-day moving average. Meanwhile, the NYSE composite lost 1.5% and the Dow 0.9%. The S&P 500 gave up 1.3% and closed below the 1100

Options In Focus: Elegant Exits

Thu, 19 Nov 2009 21:42:00 GMT

Closing out an optionable position the old fashioned way might sound anything but neglectful. Sometimes though, there are savvier alternatives available, if traders are mindful of all their options before they execute. In the following archived piece, I’d like to present a couple of potentially more elegant and simple means to exiting a position. “Tricks of the trade” can save option traders money over the long run. And around expiration, the

Nasdaq Takes Hardest Hit As Trade Rises

Thu, 19 Nov 2009 00:44:00 GMT

Stocks slipped Wednesday, dealing a setback to the market's renewed uptrend. The indexes reached their session highs within the first 15 minutes of trading and then remained on the downside the rest of the day. A weaker-than-expected housing report rattled the market. The Nasdaq led the bleeding with a 0.5% drop. The Dow and the NYSE composite fell 0.1% each. The S&P 500 slipped, but finished just shy of break-even. Volume grew on both major

Gold Sets 8th Record High In Nov.; Crop Futures Sell Off After Run-Up

Wed, 18 Nov 2009 23:41:00 GMT

The bull run in gold kept going Wednesday as the weak dollar sent the precious metal to its eighth record high session for this month and also helped most commodity prices close higher. But key agricultural markets settled down on profit-taking and producer hedge selling after investors chased wheat to a five-month peak, corn to nearly a one-month high and soybeans to a 2 1/2-month top. The Reuters-Jefferies CRB index, a global commodities

Equity-Income Funds See New Plays

Wed, 18 Nov 2009 23:15:00 GMT

Equity-income funds were a safe harbor for much of this year, sheltering shareholders from the market's choppy waters. The category scored a 0.95% total return over the 12 months ended Sept. 30, says Lipper Inc. That included 2008's fourth quarter, that year's worst stanza. All other nonspecialty U.S. diversified stock fund groups lost ground — many, a lot. Equity-income's relative strength was due largely to the income that its funds aim to

Bonds Decline As Traders Lock In Profits; Goldman Pooh-Poohs Skewed CPI Figure

Wed, 18 Nov 2009 23:13:00 GMT

Treasuries slid Wednesday after a higher-than-expected inflation reading prompted profit-taking, but weak housing data limited losses. Economists and policymakers are convinced that inflation is low and not a near-term threat to bond values. Profit-taking occurred in mid- and long-term securities, which had outperformed short-dated instruments early in the week after last week's auctions of 10- and 30-year debt. "Once we went through the 10- and

Red Hat Works On Square Box; Acc/Dis At B

Wed, 18 Nov 2009 23:07:00 GMT

Software company Red Hat (RHT) could be working on a square box base. In late September, it looked like it was beginning a base. But a new weekly closing high the week of Oct. 16 broke up the pattern. Red Hat then fell as it formed the current consolidation. A square box lasts four to seven weeks. Red Hat is in week five. Much like a flat base, a square box usually corrects in the 10% to 15% range. In this instance, Red Hat has corrected 12%.

Braving Slump, BJ's Launches New Locations

Wed, 18 Nov 2009 23:00:00 GMT

BJ's Restaurants (BJRI) is a small fry among national restaurant chains, but it's moving up fast. When CEO Jerry Deitchle, a former Cheesecake Factory (CAKE) executive, took over in 2005, the Huntington Beach, Calif.-based company had just 35 restaurants. Today, it owns and operates 94 in 13 states and has one licensee running a restaurant in Hawaii. Deitchle's goal is 300 restaurants, so there's plenty of room to grow. While other restaurateurs

Chinese Stocks Surge As Indexes Trim Losses Late

Wed, 18 Nov 2009 23:00:00 GMT

Stocks trimmed losses late Wednesday but still ended lower as volume ticked up. The Nasdaq fell 0.5%, the Dow and NYSE composite 0.1%, and the S&P 500 was just below break-even. Chinese stocks scorched higher. China Green Agriculture (CGA) rocketed 3.51, or 27%, to 16.63. The fertilizer company gained 13% in the last three hours of trading. China Green broke out of a three-month base after announcing it won an exemption from a value-added tax.

Farm Groups Top Market On Crop Forecast

Wed, 18 Nov 2009 22:54:00 GMT

An increase in crop price forecasts last week helped boost three agricultural industry groups this week. Fertilizer makers, farm equipment companies and agricultural operations all posted their strongest single-day advances since midsummer on Wednesday. The groups had significantly lagged the market uptrend since March, leaving them low in IBD's industry rankings. The groups tend to be cyclical, riding seasonal trends. Those trends, in turn, hinge

Given Imaging Boasts Profit, But Sales Light

Wed, 18 Nov 2009 22:54:00 GMT

Any doctor will tell you that a picture is worth a thousand words, or a hundred pinpricks and needles. Israel-based Given Imaging (GIVN) has built its niche around giving doctors the best-possible picture of your innards. Small-cap Given's centerpiece product is its PillCam line of vitamin-size capsules, each of which holds a tiny camera. The Lilliputian device allows for unobtrusive endoscopies, photographic exams of the gastrointestinal tract.

Eli Lilly Waits On Health Care Fix; Pipeline Watched

Wed, 18 Nov 2009 22:54:00 GMT

For Eli Lilly (LLY), health care reform is an 800-pound gorilla. The maker of branded pharmaceuticals — as well as the whole industry — is waiting to see what reforms come out of Congress. Until then, Miller Tabak analyst Les Funtleyder says, investors won't be rushing in. But it's not just one oncoming, potentially harmful force, he adds. "You probably won't see investors flocking until reform is over and Lilly proves (its) pipeline," he said.

Options In Focus: More “MOOvement” in Aggies

Wed, 18 Nov 2009 22:49:00 GMT

For those that tuned into CNBC’s Mad Money, the proverbial homework and a new “baby bull” was christened last night in the agricultural space. According to James Cramer, a little note from the Department of Agriculture last week found those bean counters raising its crop price outlook due to production shortfalls. By virtue of that announcement, “the inception, the birthing” of a brand new spanking baby bull was born according to the market’s

Stocks Fall, But End Off Worst Levels

Wed, 18 Nov 2009 22:15:00 GMT

5:15 p.m. Update: Surprisingly weak housing data pressured stocks Wednesday, but equities closed well off session lows. The Nasdaq lost 0.5%, dragged down by software issues. But the tech index was down 1.1% at its intraday low. Meanwhile, the Dow and NYSE composite slipped 0.1% each. The S&P 500 lost a fraction. Volume rose on the Nasdaq, giving the index its second distribution day since the Nov. 9 follow-through day. Autodesk (ADSK) gapped

Options In Focus: Bulls Feeding on POT

Wed, 18 Nov 2009 01:52:00 GMT

While many bulls appeared content to digest Monday’s green shoots inspired stock plays and broader market gains, some were busy feeding their urges with potash fertilizer concern Potash Corp. of Saskatchewan (POT). One of 2008’s great growth rides and stories, shares were up about 3.8% with just more than two hours left in Tuesday’s session. There was little news, but strength was certainly apparent in the broad grouping, which includes names like

Main Indexes Erase Most Losses, But Volume Drops

Wed, 18 Nov 2009 00:18:00 GMT

Stocks erased losses Tuesday to close mostly higher, overcoming some mixed economic data, cautious retailer outlooks and a rebounding dollar. The Dow rose 0.3% to a 13-month high as component Microsoft (MSFT) hit an 18-month high. The Nasdaq also gained 0.3%, and the S&P 500 picked up 0.1%. The NYSE composite was barely lower. Volume fell across the board, signaling a lack of participation from institutional investors. In fact, trading has

Bonds Up Slightly As Weak Industrial Data Offset Stock Rally; Low Rates Seen Lasting

Tue, 17 Nov 2009 23:26:00 GMT

Treasuries edged higher Tuesday, pushing the 30-year yield to a two-week low, after a weaker-than-expected report on industrial production. The weak industrial output growth underscored the mixed nature of recent economic reports, which show tentative evidence of a gradual recovery from the worst recession in decades. The benchmark 10-year note's yield eased to 3.33% from 3.35% at Monday's close. The 30-year bond was last up 7/32 in price to yield

Commodities Rise In Subdued Fashion As Traders Scrutinize Central Banks

Tue, 17 Nov 2009 23:26:00 GMT

Gold rose Tuesday, defying a firmer dollar before settling below the previous session's record high, while other commodities saw limited gains as investors weighed the possibility of future central-bank actions that could benefit the greenback. The Reuters-Jefferies CRB index, a basket of 19 mostly U.S.-traded commodities, settled up 0.2% after losing half a percent earlier on investor fear over the Federal Reserve's remarks that it was observing

Trader Vic Says Buy Gold, Aussie Dollar

Tue, 17 Nov 2009 23:23:00 GMT

Commodity trader Victor Sperandeo, widely known as Trader Vic, believes that gold is the best investment for the next two years, though he cautions against weighting portfolios too heavily in the metal. "Gold is a hedge against inflation and a hedge against chaos," he said. When Sperandeo speaks, investors listen. With 41 years of trading experience, the founder and CEO of Alpha Financial Technologies has managed money for George Soros and other

Steady Growth, But A Wild Ride For Stock Of F5

Tue, 17 Nov 2009 23:23:00 GMT

F5 Networks (FFIV) doesn't seem like the kind of company that would provide investors with steady, reliable growth. But earnings have increased six of the past seven years. The year earnings didn't grow, 2008, profit was essentially flat from the prior year. But the stock has been a roller coaster ride for investors. The company came public in the dot-com boom year of 1999. In the dot-com bust that followed, it lost 97% of its value. It's made a

Shenzhou Has Growth, Needs Sponsorship

Tue, 17 Nov 2009 23:18:00 GMT

One of the biggest hassles in trading foreign stocks is currency risk. If you buy a stock in the euro zone, you can hedge the currency with futures or exchange-traded funds. Now consider a Hong Kong purchase. To buy a stock in that booming market, you have to buy Hong Kong dollars, which are pegged to the U.S. dollar at about 7.75. It almost never varies. But be aware: If the peg is moved or abandoned, anything can happen. That's not planned,

Leisure Goods Makers Jump; More Coming?

Tue, 17 Nov 2009 23:18:00 GMT

Leisure products makers ran sharply higher over the past three weeks. Stocks marking the group's best gains include Harley Davidson (HOG), Polaris (PII), Brunswick (BC), Arctic Cat (ACAT) and Steinway (LVB). What does the group's gain say about investor sentiment? Sam Subramanian, managing principal at Alpha Profit, says one factor is investor belief that the economy is gradually improving. Sales have yet to start growing, but value investors are

Indexes Erase Most Losses, End Narrowly Mixed

Tue, 17 Nov 2009 23:18:00 GMT

Stocks erased most losses Monday to close at their best levels of the day. The Dow and Nasdaq gained 0.3% each, while the S&P 500 rose 0.1%. The NYSE composite closed fractionally lower. Longtop Financial (LFT) broke out of a cup-with-handle base, climbing 1.78 to 32.22. Late Monday, the Chinese financial software firm beat expectations with a 29% rise in Q3 earnings. It also announced a follow-up offering of 3.7 million American depositary

Cloud Computing Gives Intel Edge In This Rebound

Tue, 17 Nov 2009 23:18:00 GMT

Intel's (INTC) 3.1% dividend yield could be a complete afterthought if your head is in the clouds. That is, cloud computing. After a recession, a technology often emerges that becomes the new gravity, says Global Equities analyst Trip Chowdhry. Last time it was the Internet; this time, he says, it's cloud computing. This next-generation technology uses distant servers for data storage and management. That allows for smaller devices that use less

Longtop Clears A Buy Point In Deep Handle

Tue, 17 Nov 2009 23:18:00 GMT

In late September, we pointed out that Longtop Financial Technologies (LFT) was working on two patterns at once. You could see it as a giant cup base that began with its initial public offering in October 2007. Or you could see it as a cup base within the larger pattern. That pattern within the larger pattern won out. At least, it was first to provide a buy point and a breakout. The China-based financial software provider began forming the smaller

Mixed Finish Leads To Tough After-Hours Session

Tue, 17 Nov 2009 22:32:00 GMT

The major indexes ended atop the day's trading ranges Tuesday — a good sign. But lower volume curbed the bullish tone, hinting that institutional investors had limited participation. The Dow and Nasdaq composite each took home 0.3% gains, after spending the better part of the day in the red. The S&P 500 edged up 0.1%. The NYSE composite posted a fractional loss. After hours, engineering design software maker Autodesk (ADSK) fell 8%. It reported

Buenaventura May Be Etching A Second Base

Tue, 17 Nov 2009 00:43:00 GMT

Peruvian silver and gold mining company Compania de Minas Buenaventura (BVN) could be shaping a second-stage base. The base corrected about 19%, which makes it too deep for a flat base. It's in its fifth week of action, but the base lacks accumulation. Buenaventura made a new high last week, but can still be considered to be basing because it did not make a new weekly closing high. Buenaventura began working on its first-stage base in June and

Picking ETFs Based On Personal Spending

Tue, 17 Nov 2009 00:08:00 GMT

If investors buy it, asset managers should own it in their portfolios. That's the mantra guiding Michael Willis' inflation-fighting investment strategy. As president and portfolio manager of the Willis Group, a Colorado-based asset management firm, Willis uses his "consumption-based fundamental asset allocation" model to manage his two mutual funds of ETFs: Giant 5 Total Investment System and Giant 5 Total Index System . These funds have

IShares Gets Active With Alternative ETF

Tue, 17 Nov 2009 00:00:00 GMT

ETF behemoth Barclays Global Investors released Monday its first actively managed ETF in its iShares family and the first managed-futures ETF on the market: iShares Diversified Alternatives Trust. (ALT) Institutional Strategy Instead of tracking an index, ALT aims to offer exposure to "trading strategies often used by institutional investors for alternatives exposures." ALT buys long and short a mix of exchange-traded futures contracts of

Stocks Rise Broadly As Indexes Make New '09 Highs

Mon, 16 Nov 2009 23:59:00 GMT

A combination of favorable factors sent stocks broadly higher Monday. The NYSE composite led the charge with a 1.6% gain. The S&P 500 and the Nasdaq added 1.4% while the Dow rose 1.3%. All the major indexes made fresh closing highs for the year. Volume rose. It was the first time since the Nov. 9 market follow-through that both price and trading climbed. The market, in fact, had been lacking lately for signs of institutional buying. Gains were

Ailing Dollar Lifts Commodity Basket; Gold Scores Yet Another All-Time High

Mon, 16 Nov 2009 23:59:00 GMT

Gold rose Monday, hitting a record high above $1,140 an ounce, and other commodities rallied too as the dollar fell to a 15-month low against major currencies. The Reuters-Jefferies CRB index, a bellwether that tracks 19 futures markets, settled up almost 3% as free-floating currencies like the euro rose at the expense of the dollar, in which commodities are priced. Stocks also rose as investors looked at markets outside of gold and other hard

Mining Companies On Top Of Q3 Profit Gains

Mon, 16 Nov 2009 23:53:00 GMT

Mining companies came out on top of third-quarter earnings among the big-capitalization leaders. Goldcorp (GG) earned 19 cents a share, a gain of 111% over the year-ago period and the largest increase among Big Cap 20 stocks. The results, released Nov. 4, helped the gold mining company reclaim its 50-day moving average the week of its announcement. Shares broke out of a double bottom on Nov. 9 as volume surged 88% above normal. Goldcorp is one of

Aixtron Leads Chip Equipment Makers' Group

Mon, 16 Nov 2009 23:53:00 GMT

Aixtron (AIXG) has climbed to the top of the semiconductor equipment industry by almost any gauge. That group, in turn, ranked 37th out of the 197 industries tracked by IBD, as of Monday's edition. Aixtron is best-in-class in Earnings Per Share Rating, Relative Strength Rating and Composite Rating. The German maker of deposition equipment, a component in the manufacturing process for computer chips, shot up 1.11 to 34.60 Monday in triple-paced

Indexes Climb As Volume Rises Across The Board

Mon, 16 Nov 2009 23:53:00 GMT

Stocks gained on Monday, and volume rose across the board. The Dow jumped 1.3%, the Nasdaq and the S&P 500 1.4% each and the NYSE composite 1.6%. Pollution control stocks were especially hot. SmartHeat (HEAT) gained 1.78 to 10.99 in more than triple its usual trade after the China-based provider of heating products topped quarterly earnings estimates by 8 cents a share and also beat revenue views. Fellow pollution-tied firm Rino International

Maker Of Oil Additives Finds Its Sweet Spot

Mon, 16 Nov 2009 23:53:00 GMT

The engine-oil business seems pretty straightforward. An outsider might imagine it's a low-tech industry that hasn't changed much over the years. But it's much more sophisticated, and additives must be adjusted for different types of engines and the speed at which they operate. That's where NewMarket (NEU) comes in. The company is doing well right now because it has been able to raise prices while its raw material costs have slid. It's managed to

Mall Owner Sets Up A Base, Pays Dividend In Stock

Mon, 16 Nov 2009 23:53:00 GMT

When consumers cut back, and the U.S. economy — especially in California — was hit hard, Macerich (MAC) seemed helpless. That showed in its stock performance. From February 2007 to its low in April 2009, the stock tanked 95% — a decline that accelerated as the financial crisis erupted last autumn. That was a worse plunge than the stock drops of some banking giants, whose bad investments were the root of the crisis. Macerich owns shopping malls

Regional Banks Facing Larger Risk, Fitch Says

Mon, 16 Nov 2009 23:53:00 GMT

Fitch Ratings said Monday that regional midsize and small banks face much greater risk from the commercial real estate slump than do bigger rivals. The smaller banks are expected to see more ratings downgrades than the bigger players after Fitch completes an ongoing commercial real estate review, the ratings agency said. Fitch maintains ratings for 36 midsize and small banks with less than $20 billion in assets. In that group, commercial real

After Poor Economic Data Aid Bonds Early, Bernanke Comments Spur Further Gains

Mon, 16 Nov 2009 23:09:00 GMT

Treasuries added to gains Monday, boosted by Federal Reserve Chairman Ben Bernanke, who said the Fed was monitoring the declining value of the dollar closely. Bernanke, speaking to the Economic Club of New York, said that the central bank was committed to its mandate of both jobs growth and price stability but that other factors were restraining inflation. He repeated that the Fed was likely to keep benchmark interest rates exceptionally low for

Fund Wins With Focus On Quality Buys

Mon, 16 Nov 2009 22:34:00 GMT

Dennis Lynch and his five co-managers of Morgan Stanley Institutional Mid Cap Growth keep an eagle eye out for what they consider quality businesses. Those firms generate lots of free cash flow, a key to earnings growth. And earnings drive price gains. "High-quality businesses have sustainable advantages," said Lynch, lead manager of the $3.8 billion fund . Sustainable advantages come in many forms. Some stem from a unique product or service.

Stocks Rally; S&P 500 Closes Above 1100

Mon, 16 Nov 2009 22:15:00 GMT

5:15 p.m. Update: Stocks rallied to new highs for the year on Monday, thanks to strong headline retail sales and the Federal Reserve's stance on low interest rates. But a warning from influential analyst Meredith Whitney trimmed some gains in late trading. The NYSE composite climbed 1.6%, boosted by commodity-related stocks. Thanks to a weaker dollar, gold climbed to a new record high and crude rose 3%. Meanwhile, the S&P 500 gained 1.4%. It

Options In Focus: VIX’ing & Other Thoughts

Mon, 16 Nov 2009 20:23:00 GMT

The CBOE Volatility Index or “VIX” took a somewhat rare intraday move lower in Monday’s session. The action which saw the instrument slip by about 5% from Friday’s close of 23.22% to 22.13% had the latest optimistic foray by bulls into the risk averse “carry trade” to largely thank. For those unfamiliar, the position involves buying into riskier commodity-driven hard assets and currencies at the expense of the lowly U.S. dollar, which is used to