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Vinayak

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Posts posted by Vinayak


  1. Some big stock updates

     

    Soros Reports passive JC Penney stake equal to 7.91%

     

    Amazon Q1 EPS $0.18; Est. $0.10

     

    Deutsche Bank to Sell up to 90M new shares to raise $3.66B

     

    UBS Q1 Net Income CHF988 Million vs CHF 412M Estimate

     

    Lloyds Banking Posts Q1 Pretax 1.48B Pounds, beating estimates

     

    IBM Boosts Share Buyback by $5B, Increases Dividend 12%


  2. Apple Said To Offer $17B of Bonds in Record US Sale

     

    Apple Order Book for Six-Part Deal Said to be $50B

     

    Apple (AAPL) had to innovate and now it has finally gotten a breakthrough with its iBond. CEO Tim Cook has been under fire and now was the time to pull out all the stops. Usually, investors aren't that optimistic about buying debt from companies. But the good thing for Apple is that it has a huge cash pile.

     

    Shareholders are extremely pleased with this attempt by the Cupertino, CA based firm to get back on their good books. The deal is reportedly going to be handled in six parts by investment banking giants Deutsche Bank and Goldman Sachs.

     

    For Apple, this is a great way to borrow cheap and look to buy back shares which ultimately boosts the EPS (earnings per share) figure.

     

    Other large cap tech stocks are already doing this big time. Microsoft (MSFT) raised $2.7bn in debt last week issuing bonds in the US and in Europe, its first ever euro denominated debt deal.

     

    The bonds worth $17B is actually a record sale according to industry experts. Apple is looking to save big on its taxes as it has a lot of cash overseas with this bond deal.


  3. EU unemployment rate has risen to a record 12.1% due to the recession. Moreover, the Euro zone inflation has is now at 1.2% and this has put additional pressure on the ECB for a rate cut.

     

    As for the US economy, the S&P/Case-Shiller Home Prices increased 9.3% in comparison to last year.


  4. EU unemployment rate has risen to a record 12.1% due to the recession. Moreover, the Euro zone inflation has is now at 1.2% and this has put additional pressure on the ECB for a rate cut.

     

    As for the US economy, the S&P/Case-Shiller Home Prices increased 9.3% in comparison to last year.


  5. Important Updates to keep in mind as we start a new week

     

    The Governor of the Bank of Greece George Provopoulos says market stabilization suggests the ECB won't need bond buying

     

    BOJ keeps pledge to double monetary base in 2 years

     

    Valeant Merger talks with Actavis said to stall on price

     

    Deutsche Bank to sell up to 90M new shares to raise $3.55B


  6. Scottrade: Best Pricing

     

    With over 2.5 million total brokerage accounts valued at over $51 billion Scottrade is a great option for traders.

     

    Scottrade is a privately owned discount brokerage so it has the liberty to not share its numbers as much as the other existing brokerages. Nonetheless, Scottrade offers much: no inactivity fees or account maintenance fees, along with premium features such as research amenities accessible free of charge, real time data, and one-on-one support online, over the phone and at the 505 branches.

     

    Investors can trade all asset classes with Scottrade – stocks and option trading, treasuries, bonds, ETFs, CDs and mutual funds. Additionally, there is a no-fee Scottrade IRA and over 3,100 mutual funds that have no transaction fee. These are great for traders to get started with especially those with modest capital.

     

    Who should sign up for a Scottrade account?

     

    Casual investors will love the outstanding support and $7 trades offered by Scottrade along with its fairly convenient platform. Scottrade does offer unlimited free checks and free ATM withdrawals.

     

    Account Details:

    Commission: $7.00 per trade

    Account Minimum: $500

    Account Fees: No annual account fee

    Promotion: One free trade for every $1000 deposited ($10,000 minimum, maximum of 250 free trades, must be executed in 6 months)

    Sign up here.

     

    Cons

    The promotions do not match up to other major online brokerages. The discount brokerage is offering a measly one free trade for every $1000 deposited. Moreover, there is also an additional 0.5% principal value commission for equities under $1.

     

    Conclusion: Scottrade has its advantage in its retail locations

     

    These branches provide a better service for traders who want to use them to ask questions. It doesn't hurt either that many of these branches are storefronts in shopping malls.


  7. There are 67 online brokerages and I thought it helpful to start a thread that will discuss the features and which trading platforms will be suitable for every unique trader.

     

    My aim with this thread is to help traders find the lowest cost option with the best research amenities, client service, promotions, etc based on their individual preferences.

     

    I will be analyzing various major online brokerages and smaller ones too. Here is an example of what I hope to bring to you in this "Top Online Brokerages" thread.

     

    E*TRADE Financial Account Details:

     

    Commission: $9.99 per trade

    Account Minimum: $500

    Account Fees: No annual account fee

    Promotion: Make initial $10,000 deposit to receive 60 days of free trades & up to $500

    Sign up here.


  8. Amazon Said to Plan TV Set-Top Box for Streaming Internet Video

     

    MetroPCS Shareholders Approve T-Mobile USA Deal

     

    Orders for US Durable Goods Decline by Most Since August

     

    Bank of England Extends Small-Business Lending Plan by One Year

     

    Credit Suisse Q1 Net CHF 1.3B vs CHF 1.27B Estimate

     

    Australia Set to Invest 5% of Foreign Currency Reserves in China, RBA's Lowe Says

     

    Australia CPI Rises 0.4% vs 0.7% Estimate; Currency Declines


  9. S&P 500 - Bullish on the nearer term

     

    There was a lot of negativity that drove the selling last week, but still it was not enough to break the long term up trend of the S&P 500. Nonetheless, the index did hit a resistance level.

     

    Technical analysis shows that in the long term it might actually turn a little bearish because my indicators are weakening. It is indeed interesting to note that the last few times this occurred selling followed for 5-8 weeks.

     

    The S&P could then fall as far as 1500 or even a bit lower before hitting a support level despite its recent bullish turn. The good thing for bulls is that the appreciation will persist for the near term but could change in the mid-term.


  10. Bank of Spain Estimates Economy Shrank 0.5% in Q1

     

    Italian 10-Year Bond Yield Falls Below 4% for First Time Since November 2010

     

    Jon Corzine is Sued by Trustee Louis Freeh Over the Collapse of MF Global

     

    US March New-Home Sales Rise 1.5% to 417,000 Annual Rate

     

    Stoxx Europe 600 Index Rises 2.4% for Biggest Gain in Eight Months

     

    Apple Boosts Buyback By $50 Billion

     

    FedEx in New $10.5B Pact With US Postal Service

     

    Apple Shares Gain, Rising 4.9% as Post-Market Trading Resumes

     

    Apple Q2 EPS $10.09, Est. $9.98; Q2 Revenue $43.6B, Est. $42.3B


  11. Apple, Inc. Earnings Report - Tuesday, April 23

     

    Apple Inc. AAPL has been hammered on Bloomberg/CNBC and by Wall Street analysts. The main theme has to do with how the large cap tech stock has basically lost its edge. It is hard to fathom now how AAPL was actually trading above $705.00 in September 2012. All of those analysts who believed the stock would hit a $1000 have been given a big time reality check with AAPL at a two-week low of $390.53 on April 19, 2013.

     

    At this share price, investors are fairly tentative with many arguing that is still Apple bargain for a value investor given the stock's immense potential still. There are also those that hold the view that this could be the start of a new downtrend below the $400.00 level.

    From the way I see things (and most stock analysts would agree), the business landscape for Apple has become much more competitive. “Android”-powered devices now make a large part of the smart phone market.

     

    Nonetheless, I want to state here that the Apple iPad is much better than the Samsung Galaxy and I could say the same about the smart phone comparison.

     

    The bottom line is that I need to see something truly convincing from the earnings report tomorrow before I decide to buy the stock. One of the figures to keep an eye on is the EPS and if the value turns out to be higher than the consensus EPS forecast of $10.18, this is an encouraging sign for AAPL bulls. Otherwise I am going to think that it is a good short idea.


  12. Long-Term Bubble

     

    China is in a bubble for the long term with expectations that China will become the largest economy on this planet within this decade. But for now, the Chinese economy has shown signs of stagnation and there is all the debt pile that has arisen worrying investors who have set their sights on the world's second largest economy.

     

    China still has many significant challenges to address, but there will be considerable growth in the future and investors can capitalize on this long-term bubble.


  13. Bullish on Gold: Great time to Buy

     

    There has been a lot of interest in gold among Asian economies and especially India that has an obsession with gold. Additionally, even in the US and the Euro zone, more and more people recognize the bargain and are looking to purchase gold.

     

    This alone should drive up gold prices and most analysts agree that we will see high prices beginning next week. But I want to add here that the global economy is faced with a lot of issues with Chinese growth data being especially discouraging for bulls along with the massive debt. Then there is the stagnation we've been seeing in the EU with all the debt problems.

     

    So in times of economic strife, gold will rise and this has held true. Add this to the fact that there has been increasing demand for the precious metal and it makes a lot of sense to buy gold right now or look for call options on the commodity or any ETFs.

     

    Interestingly, gold ETFs have been especially good at weathering the storm.


  14. Here are some big Bloomberg updates that would be important for investors in US markets and abroad:

     

    Sweden's Riksbank Sees No Increases in Repo Rate Until Second Half of 2014

     

    Yahoo Q1 Adj. EPS $0.38, Est. $0.25; Shares Rise

     

    ING Seeks Up To $1.5B in IPO of US Unit

     

    Intel Sees Q2 Revenue $12.4B-$13.4B, Est. $12.8B

     

    SAC's Record $602M SEC Settlement Approved by Judge

     

    Dells Says Billionaire Investor Carl Icahn Won't Take More Than a 10% Stake in the Company

     

    Goldman Sachs Tops Q1 Estimates Earning $4.29 a Share vs Estimates of $3.87. Revenue Tops Estimates at $10.09B.

     

    Coca-Cola Earns $0.46 a Share in Q1 vs. Estimates of $0.44.

     

    Glencore-Xstrata Deal Said to Win China Regulator Approval

     

    Siena Prosecutors Seizing $2.4B From Nomura in Paschi Investigation


  15. Short idea: SPX

     

    Stocks edged up at the open on Thursday, following a steep drop in the previous session.

     

    I am long term bullish on the S&P 500 and the DJIA, but today might be a day where I might look to buck the trend and short the SPX.

     

    The leading Economic Indicators Index for March in the US suddenly fell by 0.1%. Additionally, the Philly Fed Index is at 1.3 for April.

     

    Furthermore, we have started off the day with Bank of America (BAC) missing earnings estimates: Q1 EPS of 0.20 was lower than the EST. $0.23.

     

    Nonetheless, I am long term bullish because the macro data out of the US has been generally good with Housing Starts rising 7% in March to a 1.04M Annual Rate. Moreover, US Consumer Prices fell 0.2% in March due the cheaper gasoline prices.

     

    However, it was also interesting to note that the IMF has cut the global growth outlook to 3.3% and the organization has strongly advised Europe to use aggressive monetary policy.

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