Allergan Second Quarter Earnings Preview
Analysts have forecast earnings of $0.81 for the quarter, versus $0.75 during the same period last year.
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Options Update: Research in Motion August Volatility at 40, September at 51 As New Device Announced
Rambus (RMBS) closed up 30 cents to $19.65. RMBS call option volume of 9K contracts compares to put volume of 1K contracts. August put option implied volatility is at 50, September is at 51, November is at 55, January is at 57; versus its 26-week average of 66 according to Track Data, suggesting decreasing price movement.
Update is by Stock Specialist Paul Foster of theflyonthewall.com
BP To Begin Scaling Back Oil Cleanup
Since the spill began back in April, there has been over eleven million feet of boom deployed in the Gulf, but these only last for a certain number of tide cycles, and in areas where the company feels that beaches are not in danger, the boom will be removed.
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Closing Bell: Slow Growth, Still Growth (MFE, SYMC, TNAV, ALU, K, BRK-A, RIMM, MRK)
Here were the unofficial closing bell levels:
Dow Jones 10,465.94 -1.22 (-0.01%)
S&P 500 1,101.59 +0.06 (0.01%)
Nasdaq 2,254.70 +3.01 (0.13%)
Top Analyst Calls
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Avon Increases Adjusted Income in Q2
Avon Products (AVP) does not have a beautiful chart. It shows a stock that has had trouble making a breakout to the upside. The boring range is defined by a low of $25 and a high of $36.39.
On Thursday, the company reported second-quarter data. Sales rose 8%. On an adjusted basis, net income was 48 cents per share; this compares very nicely to the 38 cents per share booked in the year-ago period. Analysts were hoping for 45 cents per share. Operational cash flow over the last two quarters more than tripled to $241 million.
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Precision Castparts: Ride the Commercial Aviation Recovery
But now the correction appears to be over, and PCP, after a test of $100 has moved back above the key, 50-day moving average -- a bullish sign.
Precision's fiscal 2011 revenue should increase more than 10%, with another healthy gain likely in fiscal 2012.
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Oil's Uncertain Economic Outlook
In the past two months, oil has rallied out of lows near $68 per barrel, only to stall as it neared $80. Moreover, repeated, July probes of $80 have failed -- a technically bearish development.
Oil also recently registered a 'death-cross,' -- a technical pattern in which the key, 50-day moving average crosses below the 200-day moving average. However, at that point, just when it looked like oil was about to make a return trip to $68, crude held support at $70, and started heading north again.
In sum, oil has meandered for the past two months in a $68-80 range, not unlike the Dow's recent range-bound pattern.
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AutoZone Benefits from Economic Doubt
A U.S. economic recovery in doubt means new car auto sales forecasts are in doubt, which is good news if you own shares of auto parts chain AutoZone Inc. (AZO). I first discussed AutoZone here on March 30, 2009, at a price of $163.40.
AutoZone is benefiting from a recession-related trend: Adults unable to buy a new car are maintaining their existing used cars; others are purchasing a used car instead of a new one. Each trend is bullish for AutoZone.
As a result, look for AutoZone to post revenue growth of 5% to 7%, boosted by both same-store sales growth and about 200 new stores. Margins should widen.
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Templeton Global Income (GIM): "Time to Pounce"
"We've had some good luck recently in the bond arena; now I've found another trading opportunity: Templeton Global Income Fund (GIM), a global government bond fund that yields 5.6%," says growth and income expert Richard Band.
The editor of Profitable Investing explains, "The fund is run by one of the finest international bond managers, Dr. Michael Hasenstab. Plus, I think we're in for a nice capital gain as the dollar settles down from its torrid run against most foreign currencies.
"Over the past decade, this closed-end fund has rolled up a sizzling total return of 235% at net asset value (through mid-June). Meanwhile, the S&P 500 stock index has lost 11%, even with reinvested dividends.
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MetLife Q2 Earnings Beat Estimates
MET opened this morning at $41.25. So far today the stock has hit a low of $40.50 and a high of $47.75. As of 12:10, MET is trading at $41.95 up $1.75 (4.3%). The chart for MET looks bullish and S&P gives MET a positive 4 STARS (out of 5) buy ranking.
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JockStocks: The Secret to Nike's Success
I remember six years ago when the Beastie Boys released their newest album. It dealt with New York City and what it meant to the group -- hence the title, "To the 5 Boroughs." It seems that athletic shoe and apparel giant Nike (NKE) also will attempt to capitalize on the pride generated in each of the city's five boroughs, as it will release a limited edition line of shoes celebrating each of the boroughs.
These shoes will only be sold in New York, with select stores in each borough receiving the corresponding shoe. These shoes were produced for the inaugural World Basketball Festival that will take place from August 12 through August 15. The selected stores in Brooklyn will receive shoes with a black, plum, and white color scheme; a logo for the borough; and laces that identify the shoes as the Brooklyn edition.
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Coinstar Hammered After Disappointing Earnings
It seems that 92% year-over-year earnings growth wasn't quite enough to impress Wall Street. Shares of DVD rental kiosk operator Coinstar Inc. (CSTR) are taking a beating as traders pan the company's softer-than-forecast second-quarter results and lackluster revenue forecast.
For the recently concluded quarter, Coinstar banked a profit of $13.4 million, or 41 cents per share, up from last year's results of $7 million, or 23 cents per share. Revenue for the quarter climbed 35% to $342.4 million. As recently as May, Coinstar predicted its quarterly revenue would arrive between $363 million and $383 million.
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General Electric: Fundamental and Technical Buy
"General Electric (GE) shows solid earnings growth potential, is attractively valued and appears to be a bargain at its current share price," says Dr. Melvin Pasternak.
The editor of Double-Digit Trading explains, "Fundamentally, GE's earnings recovery could carry the stock higher. The company expects 2010 to be a turnaround year. GE should benefit from $3 billion of cost cutting and restructuring measures.
"GE operates in more than 100 countries. And GE continues to expand its presence in India and China.
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Second-Quarter GDP Suggests Recovery Is Losing Steam
Gross domestic product growth slowed to a 2.4% pace, the slowest in nearly a year, the Commerce Department announced Friday. The reading of this measure of economic activity is too weak to push down unemployment. The quarter saw consumers spend less and retailers limit stock, this combined with the fact that the trade deficit had a larger impact on the economy and we have the formula for some rather unpleasant economic news.
Combine this report with the one indicating that the recession was worse than originally thought and our rosy picture of the economy takes a noticeably gray tint.
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Quarterly Earnings: Goodyear and RadioShack
The Goodyear Tire & Rubber Company (GT) has a one-year chart that I would argue is not too attractive. The 52-week low on the stock is $9.65; the 52-week high is $18.84. Yesterday, the shares were under pressure after the release of the second-quarter report. They closed down 5.7% to $11.27 on Thursday. Volume was very strong.
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