Filed under: Options, Stocks to Buy, Stocks to Sell

On Tuesday, investors drove call option implied volatility levels higher in the Mortgage Investment industry, and drove put option implied volatility levels higher in the Rental & Leasing Services industry.

Bullish Volatility Skews:

Capstead Mortgage Corp. (CMO)---part of the Mortgage Investment industry---came in at the top with a volatility skew of 1.24. This may come as a surprise as CMO is down -2.22 percent for the past month.

Continue reading Bullish and Bearish Volatility Skews: CMO, SDXC, TDY, RCII, COLM, PZZA

Bullish and Bearish Volatility Skews: CMO, SDXC, TDY, RCII, COLM, PZZA originally appeared on BloggingStocks on Tue, 09 Mar 2010 15:00:00 EST. Please see our terms for use of feeds.

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Filed under: Bank of America (BAC), Amer Intl Group (AIG)

It's not an unusual problem at this time of year. We're a few months from June 1, the official start of hurricane season, at least as far as the insurance industry is concerned. Through April and May, the Florida legislature will rush to nail down details pertaining to Citizens Property Insurance Corporation, the state entity that provides insurance to some homeowners (usually when risk is too high for private insurers to accept), and the Florida Hurricane Catastrophe Fund, which provides some reinsurance protection to carriers writing property-catastrophe risk in Florida.

And even earlier, the editorials start to fly. There are concerns over whether homeowners will get sufficient coverage. There are questions about thinly capitalized Florida carriers. This is an annual ritual, of sorts, and 2010 is no different. Already, the Sarasota Herald-Tribune is raising the issue of whether some local carriers are sufficiently capitalized. Ultimately, this isn't much of a problem - unless a hurricane hits.

Continue reading Annual Ritual: Speculating on Florida Insurance Market's Strength

Annual Ritual: Speculating on Florida Insurance Market's Strength originally appeared on BloggingStocks on Tue, 09 Mar 2010 14:40:00 EST. Please see our terms for use of feeds.

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Filed under: International Markets, Headline News, Financial Crisis, Currency

Events are moving rapidly in the EU, led by Prime Minister Merkel of Germany and Nicholas Sarkozy of France who are pushing the EU to regulate or ban outright credit default swaps on sovereign debt.

Jose Manuel Barroso, EU President, said he would ban speculative derivatives trades outright. CDS trading is a $40 trillion dollar global market which insures corporate and government debt.

Continue reading EU Considers Ban on Credit Default Swaps

EU Considers Ban on Credit Default Swaps originally appeared on BloggingStocks on Tue, 09 Mar 2010 14:20:00 EST. Please see our terms for use of feeds.

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Filed under: Stocks to Buy

The outlook for financial services play Lincoln National Corp (LNC), which I first discussed here on June 18, 2009 at a price of $15.92, still looks good. Here's why:

Lincoln's $2.1 billion stock offering, participation in the TARP program, and a stock market rise that has improved the capital position of LNC's variable annuity guarantees, has brightened the skies for the company.

Continue reading Lincoln National: Unsung Financial Services Play

Lincoln National: Unsung Financial Services Play originally appeared on BloggingStocks on Tue, 09 Mar 2010 14:00:00 EST. Please see our terms for use of feeds.

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Filed under: Good news, Contl Airlines'B' (CAL), Options, Technical Analysis, Oil

Continental Airlines (CAL - option chain) shares are rising today along with most other airline stocks as crude oil futures are showing bearish indicators for the first time in two weeks. The front-month crude oil contract is down about 1% today and has fallen below its recent trading range. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on CAL.

CAL opened this morning at $20.42. So far today the stock has hit a low of $20.37 and a high of $21.47. As of 11:45, CAL is trading at $21.21 up $1.00 (5.0%). The chart for CAL looks bullish and S&P gives CAL a its highest 5 STARS (out of 5) strong buy ranking.

Continue reading Continental Rises As Crude Futures Drop

Continental Rises As Crude Futures Drop originally appeared on BloggingStocks on Tue, 09 Mar 2010 13:40:00 EST. Please see our terms for use of feeds.

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Filed under: Archer-Daniels-Midland (ADM), Tyson Foods'A' (TSN), Commodities, Agriculture

"We want to make sure the playing field is level."

So said U.S. Secretary of Agriculture Tom Vilsack, speaking in regard to the Obama administration's mounting concern about consolidation of control in America's agricultural system.

In light of that statement, investors may wish to exercise due caution when making future plays in companies such as Monsanto (MON), Archer Daniels Midland (ADM), and Tyson Foods (TSN), just to name a few. A recent Associated Press report indicates that the administration is undertaking a series of workshops aimed at creating policy initiatives with a focus on awakening competition in agriculture.

Continue reading Agricultural Caution Is in the Wind

Agricultural Caution Is in the Wind originally appeared on BloggingStocks on Tue, 09 Mar 2010 13:20:00 EST. Please see our terms for use of feeds.

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Filed under: Economic Data

Interest rates are the top concern among global financial services firms in the pension risk management business.

According to a new survey by Aon's (AON) human capital arm, 58% of the big players in the pension risk management space cite this factor as the biggest issue facing defined benefit pension plan sponsors from the present to 2013. Longevity risk is next, with 21% of the responses, followed by equity markets at 15% and inflation at 6%.

Continue reading Aon Survey: Interest Rates Are the Greatest Pension Risk

Aon Survey: Interest Rates Are the Greatest Pension Risk originally appeared on BloggingStocks on Tue, 09 Mar 2010 13:00:00 EST. Please see our terms for use of feeds.

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Filed under: Earnings Reports, H and R Block (HRB)

Late last month, H&R Block (HRB) dropped a bomb on investors. The company slashed its outlook because of the slow start of the tax season. As a result, H&R Block's stock price fell 13%.

So Monday, the company reported its official fiscal third-quarter results. Profits came to $50.6 million, or $0.15 per share, up from $47.4 million, or $0.14 per share in the same period a year ago.

Continue reading H&R Block Feels the Pain from TurboTax

H&R Block Feels the Pain from TurboTax originally appeared on BloggingStocks on Tue, 09 Mar 2010 12:30:00 EST. Please see our terms for use of feeds.

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Filed under: Sotheby's (BID)

The second largest cigarette maker in the world is making some waves in the art market. British American Tobacco (BTI) sold several paintings last night at a Sotheby's (BID) auction in the Netherlands, picking up $18.5 million last night. This contributed to a record night for the auction firm's Netherlands office.

Previously known as the Peter Stuyvesant Collection, the BATartventure Collection includes more than 1,400 pieces and doubled the upper end of its presale estimate, yet another sign that strength is returning to the art market this year - after a year and a half of agony.

Continue reading Cigarette Company Finds Money in Art

Cigarette Company Finds Money in Art originally appeared on BloggingStocks on Tue, 09 Mar 2010 12:00:00 EST. Please see our terms for use of feeds.

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Filed under: Economic Data

According to a study released earlier this morning by the Manpower Employment Outlook Survey, roughly 5% of employers believe they will hire during the second quarter. While this percentage is better than the same quarter a year ago, it is virtually flat from the first quarter. In fact, it is down slightly, as a net 6% of firms hired in the first quarter.

Keep in mind that the data doesn't measure the number of jobs. It measures the portion of firms planning to hire less those intending to lay off workers.

Continue reading Manpower Survey Shows Some Hiring Potential

Manpower Survey Shows Some Hiring Potential originally appeared on BloggingStocks on Tue, 09 Mar 2010 11:30:00 EST. Please see our terms for use of feeds.

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Filed under: Analyst Reports, Analyst Upgrades and Downgrades, Yum Brands (YUM), Analyst Initiations, United Technologies (UTX)

Analyst Upgrades

• UBS upgraded Yum! Brands (YUM) to buy from neutral, citing valuation, improving momentum and stabilizing China fast-food sales. The firm raised its target to $44 from $38.
• United Technologies (UTX) was upgraded to outperform from neutral at Cowen.
• Needham upgraded Arris (ARRS) to buy from hold, citing valuation and positive near-term business trends. The firm has a $16 price target on shares.
• Warnaco (WRC) was upgraded to outperform from neutral at Credit Suisse.
• Aetna (AET) was upgraded to neutral from underperform at BofA/Merrill.
• Nestle (NSRGY) was upgraded to overweight from neutral at JPMorgan.

Continue reading Analyst Calls: AET, ARRS, BIIB, CMA, CP, ENER, FSLR, UTX, YUM ...

Analyst Calls: AET, ARRS, BIIB, CMA, CP, ENER, FSLR, UTX, YUM ... originally appeared on BloggingStocks on Tue, 09 Mar 2010 11:00:00 EST. Please see our terms for use of feeds.

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Filed under: Analyst Upgrades and Downgrades, Comerica Inc (CMA), Options, Technical Analysis, Financial Crisis

Regional banking issue Comerica (CMA) is in focus today, after announcing last night that it will sell $800 million in common stock in order to repay its debt to the U.S. government. Under the terms of the Troubled Asset Relief Program (TARP). Comerica owes Uncle Sam about $2.25 billion. At this point, the Dallas-based bank is among the few remaining financial institutions yet to repay its TARP debt.

This morning, Comerica priced its common stock offering at $35 per share, representing a discount to Monday's close at $36.29. The shares have quickly backpedaled as a result, slipping below recent support at their 10-day and 20-day moving averages.

Continue reading Comerica Selling Stock to Repay TARP Debt

Comerica Selling Stock to Repay TARP Debt originally appeared on BloggingStocks on Tue, 09 Mar 2010 10:30:00 EST. Please see our terms for use of feeds.

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Filed under: Toyota Motor Corp. (TM)

The good news for Toyota (TM) is that no one was hurt, but it appears that the acceleration problem with some of its cars may not be over.

According to the California Highway Patrol, a gentleman driving a Prius called 911 because he could not control his car as it accelerated uncontrollably to 94 mph. Yes, a Prius made it to 94 mph and the driver was helped to a stop safely. Toyota stated that it has dispatched a field technical specialist to California in order to investigate the incident.

Continue reading A Runaway Prius and More Acceleration Problems at Toyota

A Runaway Prius and More Acceleration Problems at Toyota originally appeared on BloggingStocks on Tue, 09 Mar 2010 10:00:00 EST. Please see our terms for use of feeds.

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Filed under: Analyst Upgrades and Downgrades, Internet, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO)

Yahoo! (YHOO) received an analyst upgrade from JMP Securities Monday. The thesis is that online advertising is improving, so now may be the time to get in on the possible capital appreciation of the business. The stock closed yesterday at $16.52 per share -- a gain of 2.8%. Volume was active.

The upgrade also comes with a price target of $21. Yahoo!, like many stocks, has bounced off its 52-week low quite strongly. Over the 12-month period, the company has risen by better than 20%. From one angle, I like the idea of this trade. Technically, the shares might be ready to move.

Continue reading Yahoo!: A Buy After Upgrade?

Yahoo!: A Buy After Upgrade? originally appeared on BloggingStocks on Tue, 09 Mar 2010 09:30:00 EST. Please see our terms for use of feeds.

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Filed under: Press Releases, Launches, Technology

It's the Internet and it's all about speed. On Tuesday Cisco Systems (CSCO) will unveil new tools that will enable its internet service providers to build their own high-speed networks.

Cisco says its plan will "forever change the Internet and its impact on consumers, businesses and government."

While details of the new tools are yet to be presented, the idea would open up the whole area of high-speed networks to anyone willing to set them up.

Continue reading Cisco Will Unveil New Tools for High-Speed Networks

Cisco Will Unveil New Tools for High-Speed Networks originally appeared on BloggingStocks on Tue, 09 Mar 2010 09:00:00 EST. Please see our terms for use of feeds.

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Filed under: Before the Bell, International Markets, Cisco Systems (CSCO), Market Matters, Kroger Co (KR), Texas Instruments (TXN)

U.S. stock futures were slightly lower Tuesday morning as Wall Street marked the one-year anniversary of the markets' bottom. With little in way of economic news, investors took a step back from the recent weeks' rally and examined a myriad of earnings results -- not all of which were positive.

It was one year ago that the Dow industrials and broader S&P 500 finished the day at their lowest level in 12 years. The Dow has rallied about 62% since then. While stocks finished mixed on Monday with very low volumes, the Nasdaq has closed at an 18-months high.

Continue reading Before the Bell: Futures Lower on the Anniversary of Markets Low

Before the Bell: Futures Lower on the Anniversary of Markets Low originally appeared on BloggingStocks on Tue, 09 Mar 2010 08:30:00 EST. Please see our terms for use of feeds.

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Filed under: Sony Corp ADR (SNE), Best Buy (BBY), Ciena Corp (CIEN), Goldman Sachs Group (GS), Palm Inc (PALM), Options

Sony (SNE) closed at $36.75. SNE April put option implied volatility is at 29, July is at 30, and October is at 31; below its 26-week average of 34, according to Track Data, suggesting decreasing price movement.

Goldman Sachs (GS) closed at $169.84. March put option implied volatility is at 31, April is at 32, versus its six-month average of 33, according to Track Data, suggesting non-directional price movement.

Three stocks with IV rise on March 5; Ciena (CIEN) +11%, Palm (PALM) +9%, Best Buy (BBY) +2%, according to IVolatility.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: Sony Volatility Low; Shares Near 18-Month High originally appeared on BloggingStocks on Tue, 09 Mar 2010 08:00:00 EST. Please see our terms for use of feeds.

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Filed under: Earnings Reports, Forecasts, Consumer Experience, Market Matters, Kroger Co (KR), Costco Wholesale (COST), Recession

The earnings season is winding down, but there are still many big name companies due to report, and tomorrow features grocer giant Kroger Co. (KR). Kroger will be reporting its fourth quarter numbers before the market opens.

Going into tomorrow's earnings report, analysts expect Kroger to earn $0.34 per share. Should the company match analyst estimates it would mark a 34% drop from the 53 cents it earned during the same period last year.

Continue reading Kroger Fourth Quarter Earnings Preview

Kroger Fourth Quarter Earnings Preview originally appeared on BloggingStocks on Mon, 08 Mar 2010 18:00:00 EST. Please see our terms for use of feeds.

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Filed under: Products and Services, Launches, Best Buy (BBY)

U.S. consumer electronics behemoth Best Buy Co. Inc. (BBY) will be joining Japan's Panasonic Corp. to unveil and heavily promote newer 3D television sets this quarter. As flat panel televisions continue selling at a decent but middling pace, the "next big thing" in home entertainment is ready to roll off shelves. Best Buy believes it will be 3DTV, apparently.

Panasonic will discount the prices of the rollout models by 50% as it creates demand for the new category using pricing as its primary weapon. But will customers care? Just because Panasonic is trying to reverse losses in its television operating doesn't mean customers will soon adopt a new television technology that is surely to have very limited content. If Panasonic needs a 3D ecosystem of content to push these new televisions, that could be years off.

Continue reading Best Buy, Panasonic to Unleash 3D Televisions with 50% Off Pricing

Best Buy, Panasonic to Unleash 3D Televisions with 50% Off Pricing originally appeared on BloggingStocks on Mon, 08 Mar 2010 17:40:00 EST. Please see our terms for use of feeds.

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