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Bilifuduo (98.19)

June 2012

Recs

7

Unemployment in America

June 24, 2012 – Comments (0)

According to the Bureau of Labor Statistics, the number of long-term unemployed, which constitute 42,8% of the total jobless, fell 13% YOY in May. Long-term unemployed is defined as the number of people out of work for 27 weeks or more. Economists point to this as a positive sign that at least the job market is stabilizing.  [more]

Recs

6

Gloom Affecting M&As

June 23, 2012 – Comments (0)

Recent data out shows that mergers and acquisitions activity fell 25 percent worldwide in the first half of 2012. The U.S. alone fell 44 percent in M&A activity. According toThomson Reuters data,  announced deals totaled slightly more than $1 trillion globally through June 19, down from $1.33 trillion over the same period last year. Companies have become more reluctant to risk a significant portion of their assets to acquire companies or to take on the potential liabilities of other companies as global economic uncertainty continues.   [more]

Recs

6

Investing in the Recreational Vehicle Industry

June 22, 2012 – Comments (0) | RELATED TICKERS: PII , ACAT , HOG

The recreational vehicle industry has seen significant growth over the past few years. Off-road vehicle sales have increased 35% YOY in 2010, 32% YOY in 2011, and are expected to grow 18% YOY this year. Moreover, the recreational vehical index, as compiled by Tickerspy, is up 49.6% versus the S&P 500 since January 2008. However, the industry has not been without its share of negative factors. Last winter was unseasonably warm and had limited snowfall, a phenomenon which resulted in the North American snowmobile industry retail sales declining about 20% in the first quarter of 2012. This in turn affected the bottom lines of recreational vehicle companies such as Arctic Cat (NASDAQ: ACAT), which missed revenue guidance by $24M. Many recreational vehicle companies, such as Marine Product (NYSE: MPX) and Winnebago Industries (NYSE: WGO) have very low profit margins that will continue to limit future growth. Harley Davidson (NYSE: HOG), the iconic American recreational vehicle company, has been plagued by reports of slowing sales and a daunting 159% Debt/Equity Ratio.  [more]

Recs

6

Huge Decline in Business Outlook: Philadephia Fed

June 22, 2012 – Comments (0) | RELATED TICKERS: GS

The Federal Reserve Bank of Philadelphia recently released its index of regional manufacturing activity. The index, which was expected to be around 0 (signaling little contraction or expansion) instead fell sharply in June to -16.6, from a -5.8 reading in May. The Philly Fed also reported that nearly 40 percent of the firms reported declines in activity this month.   [more]

Recs

8

The Euro Crisis Through Export Numbers

June 22, 2012 – Comments (0) | RELATED TICKERS: FXE , EU

The recent drama concerning Greece's elections and the health of Spain's banking industry have further plunged Europe into its sovereign debt crisis. This in turn, has resulted in the largest monthly decline in U.S. exports to Europe dating back to January 2005. In April, U.S. exports to Europe dropped $4B, with a $2.8B drop to the EU alone.   [more]

Recs

6

Profiting from Retail Sector Growth

June 21, 2012 – Comments (0) | RELATED TICKERS: ZUMZ , ROST , TJX

One sector is showing surprising resilience and strength in the face of the slowing domestic economic recovery, the sovereign debt crisis in Europe, and fears of a slowdown in China. The retail sector has blossomed in these uncertain economic times. Zumiez (NASDAQ: ZUMZ) recently increased 2012 Q1 earnings by 150% YOY. Ross Stores (NASDAQ: ROST) recently posted a 26% YOY gain in Q1 and grew its earnings an average of 24% the last three quarters. Overall, the S&P Retail Index has soared 19.1% YTD, compared to 6.3% for the S&P 500. Full story: here.   [more]

Recs

8

Hide Your Kids, Hide Your Wife.

June 20, 2012 – Comments (2) | RELATED TICKERS: AAPL , GOOGL

Google and Apple now have "military-grade spy planes" in their race to develop their 3D mapping services. Moreover, they've flown them over major cities. Of course, mapping isn't anything new, but the methods used by Google and Apple have been so concerning that Senator Charles Schumer has arranged for meetings with officials from the respective companies concerning the incident.  [more]

Recs

10

Awww... No QE3

June 20, 2012 – Comments (0)

Instead of a systematic round of quantitative easing involving the large-scale purchase of a combination of assets such as mortgage-backed securities and bonds, the Federal Reserve has instead decided to extend Operation Twist, which was set to end this June, to the end of the year. This program involves the Fed selling medium-term bonds and using the proceeds to buy longer-term ones. As noted in the press release, the Federal Open Market Committee "intends to purchase Treasury securities with remaining maturities of 6 years to 30 years at the current pace and to sell or redeem an equal amount of Treasury securities with remaining maturities of approximately 3 years or less." Federal Reserve Chairman Ben Bernanke also stated that the Federal Reserve "isn't going to be buying European sovereign debt."  [more]

Recs

7

Another Round of QE?

June 18, 2012 – Comments (1)

According to weekend forecasts by analysts at Societe Generale, the Federal Reserve will most likely initiate a third round of quantitative easing to the amount of $600B at its Wednesday meeting. 

Recs

6

Want To Jump-Start the Economy?

June 18, 2012 – Comments (1)

Pursue a a free trade agreement, says Bloomberg. A free trade agreement between the U.S. and Europe would significantly increase the largest economic relationship in the world, one which accounts for nearly one-third of all trade. Moreover, this free trade agreement will sidestep the argument brewing over austerity vs. stimulus.   [more]

Recs

6

A Benefit of the Eurozone Crisis

June 16, 2012 – Comments (0)

As worldwide investors become increasingly nervous about the European sovereign debt crisis, they've poured investments into what they consider to be safe havens, one of which is the United States. The Commerce Department reported, according to the Wall Street Journal, that  "the U.S. attracted $28.7 billion in foreign direct investment between January and March, the 12th consecutive quarter of positive flows."   [more]

Recs

7

The Pharmaceutical Company to Own

June 15, 2012 – Comments (1) | RELATED TICKERS: QCOR , NVS , AMGN

Companies such as Novartis (NYSE: NVS), Amgen (NASDAQ: AMGN), Teva Pharmaceuticals(NYSE: TEVA) and Sanofi (NYSE: SNY) are some of the biggest names in the biopharmaceutical industry. Each of these giants is worth more than $30B and have posted mild declines or mild gains in the one-year movement of their stock price; Amgen leads the pack with a 21.6% increase in its stock price from a year ago. Yet, there is one biopharmaceutical company that has seen its stock price increase 96% from a year ago; this company, with a $2.9B market cap, also posted growth that would put Novartis, Amgen, Teva, and Sanofi to shame.  [more]

Recs

6

May Consumer Price Index

June 14, 2012 – Comments (0)

The Consumer Price Index for All Urban Consumers, which accounts for 87% of the U.S. population, decreased 0.3% in May, signaling a little bit of deflation. This decrease is the first decline in two years and may push the Fed to implement easing policies.

Recs

9

The Swiss National Bank Is Extremely Stubborn

June 14, 2012 – Comments (1) | RELATED TICKERS: FXF , EUO , FXE

   [more]

Recs

14

Greece Will Not Willingly Exit the Eurozone

June 13, 2012 – Comments (2) | RELATED TICKERS: FXE , EUO , GREK

Sunday is the day of nationwide Greek parliamentary elections, and as the pivotal day nears, anxiety and tension are starting to build. At stake in the elections is, from the viewpoint of Greeks, the future of the Greek economy. On the other hand, many outside observers paint the election as a pivotal crossroads for the Greek populace to determine their country's future relationship with the Eurozone. Observers point to the possibility of Greece leaving the Eurozone and abandoning the euro in favor of the drachma. Yet, there is no chance of Greece willingly exiting the Eurozone. The main danger stemming from the upcoming election is its potential to set the stage for conflict between the policy of the winning party and the demands of the troika, which is comprised of the European Commission, the International Monetary Fund, and the European Central Bank.  [more]

Recs

8

Analysis of Mellanox Technologies

June 12, 2012 – Comments (0) | RELATED TICKERS: MLNX , INTC , HPQ

Mellanox Technologies (NASDAQ: MLNX) is fabless semiconductor company that supplies interconnect products for computing, storage, and communication applications in the computing, Web 2.0, storage, financial services, database, and cloud markets. Although it is relatively young (formed in 1999), this company has huge potential and has seen its stock soar 97.7% YTD, all the more interesting considering Mellanox, with a $2.6B market cap, is by no means a small-cap company. So, what is behind Mellanox's huge run, and more importantly, does Mellanox's stock still have significant upside potential?  Full article: here.  [more]

Recs

8

Correlation Between Lobbying and Financial Success?

June 12, 2012 – Comments (1)

Not so much, according to a recent study by researchers from Rice University in Texas and Long Island University in New York. In fact, the researchers actually found a "really persistent negative relationship" between political activity and market performance.  The study also found little financial benefit in putting former federal or state officials on corporate boards of directors.  [more]

Recs

12

Is Priceline a Deal?

June 11, 2012 – Comments (0) | RELATED TICKERS: PCLN , EXPE , OWW

Priceline (NASDAQ: PCLN) is an online travel company that provides hotel reservation services, retail airline tickets and rental car reservation services on a worldwide basis. It also offers vacation packages and optional travel insurance packages as well as its  Name Your Own Price demand-collection system. Priceline's stock has recently taken a tumble but is still up 37.8% YTD. Despite the pullback, Priceline continues to be a good investment and is still the strongest player in the travel industry. Full article: here.   [more]

Recs

10

Cashing In On Coinstar

June 08, 2012 – Comments (0) | RELATED TICKERS: OUTR , NFLX , SBUX

Coinstar, Inc. (NASDAQ: CSTR) is a $1.91B services company that provides automated retail solutions primarily in the United States, Canada, Puerto Rico, Ireland, and the United Kingdom through such products as self-service Redbox kiosks and self-service coin-counting kiosks. Full story: here.  [more]

Recs

9

Investors Are Spooked

June 08, 2012 – Comments (1)

Last week, investors pulled a net $8B from U.S. mutual funds and ETFs.

Recs

7

Bernanke's Economic Outlook

June 07, 2012 – Comments (0)

Federal Reserve Chairman Ben Bernanke testified in front of Congress' Joint Economic Committee today. His comments today contain no hint of an upcoming Federal Reserve intervention but Bernanke did point out that Fed continues to be "accommodative." Bernanke also states that overall economic growth has improved at a moderate pace and, among others, banking and financial conditions have improved significantly. However, Bernanke also cautions that the depressed housing market, the crisis in Europe, and fiscal policy may have detrimental effects on the U.S. economy going forward. Interestingly, Bernanke also notes that the "apparent slowing in the labor market may have been exaggerated by issues related to seasonal adjustment and the unusually warm weather this past winter."   [more]

Recs

8

Bearish Hedge Funds

June 06, 2012 – Comments (0)

An interesting development has been occurring in the last three weeks: hedge funds have become overwhelmingly bearish on the stock marketAccording to Societe Generale, they've doubled their net shorts on the S&P 500 in the last three weeks. This development comes in the midst of heavy shorting of the euro and net selling of copper by the hedge funds.  [more]

Recs

6

U.S. Investor Optimism

June 06, 2012 – Comments (0)

According to the latest Wells Fargo/Gallup Investor and Retirement Optimism Index, which was conducted on May 4–12, overall U.S. investor optimism fell to +24, down from +40 recorded in February. The decline is particularly steep amongst retirees, who, according to Karen Wimbish, director of Retail Retirement at Wells Fargo, were three more optimistic than workers a year ago, and now are less optimistic than the working class. Non-retired  Americans recorded an optimism level of +27 , down from +41 in February. Moreover, 48% of survey respondents say now is a good time to invest in the stock market, also down from 52% in February.   [more]

Recs

7

You Know Things Are Bad When...

June 05, 2012 – Comments (1) | RELATED TICKERS: EWP

You know things are bad when your budget minister declares that your government " has effectively lost access to capital markets because of steep risk premiums demanded by sovereign bond investors." Well, that's Spain for you.   [more]

Recs

13

Is Monster Beverage a Monster Stock?

June 05, 2012 – Comments (0) | RELATED TICKERS: MNST , KO

Monster Beverage Corporation (NASDAQ: MNST), previously called Hansen Natural Corporation, develops, markets, sells, and distributes alternative beverage category beverages in the United States and across the world. The company's Monster Energy brand (after which the company is named) is its flagship product line and accounts for approximately 91 percent of total sales. Monster Beverage's stock has been soaring recently: it is up 58.7% YTD and 100.9% from a year ago. With the company's stock on such a tear, many worry that Monster Beverage has run its course and is starting to lose steam. Although this is a valid fear, there are several factors working in Monster Beverage's favor that could ultimately ensure the continued strength of the company.   [more]

Recs

10

Should You Invest In Transdigm?

June 04, 2012 – Comments (2) | RELATED TICKERS: TDG

On Tuesday, May 8, Transdigm reported positive 2012 second quarter results: its EPS of $1.65 beat estimates by $0.19 and the company generated revenues of $423M, which beat estimates by $33M. Overall, Transdigm has seen its stock increase 27.2% YTD and 51.5% from a year ago. There continues to be significant upside potential in the stock due not only to major industry catalysts but also to Transdim's strategic positioning of itself in the aerospace industry.   Full article: here.  [more]

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