Diamonds and Dogs
Kick into the finishKick Into Home Stretch
The week started out on the downside, as the S&P drifted lower by almost 4% on Monday and Tuesday. The Bulls had some signs of life though on Thursday, as financial and health care stocks rallied throughout. With Options expiring tomorrow, the market could see more volatility, as traders square their books. On a more intermediate term level, it appears as though stocks need to digest the recent 40% dead cat bounce of the last two months and the July earnings reports will become the top stories. Keep an eye on GE, it is trading as if something is wrong there. Maybe Jack Welch is coming back to work, to finally finish the company off&
Diamonds and Dogs
Wednesday June 17, 2009
As Netflix's popularity among movie watchers continues to expand, the company has realized that it has opportunities for higher margins. The company believes that it will be able to accomplish these higher margins by expanding into more streaming content. Netflix has also introduced the Blu-Ray option to many of its movies which will drive the price up while increasing demand. The company's shares rose $2.57 or 6.79% on Wednesday. Each Netflix share is now worth $40.40 and is expected to rise continually in the future.
E*Trade continued to slide after it announced that it was raising capital and exchanging debt to get out from under its mortgage-related loan losses. Many nervous investors continued to sell stocks after BMO lowered its investment rating to "underperform" from "marketpreform." For the second straight day the online brokerage firm falls in value by 11.52% or $0.19 to $1.46 per share in Wednesday's trading.
Tuesday June 16, 2009
Net Gear sales will flourish and will gain market shares and profit margins after Deutshe Bank raised its stock-investment rating from "hold" to "sell." The company makes good and reliable products that will survive this economic downturn. Net Gear will be able to maintain sales and benefit greatly when demand picks up as many competitors go out of business. As production increases, Deutshe Bank is saying that their new wireless-router landscape has stabilized. The stock gained 6.03% or $0.89 to $15.64 per share.
Heavy machinery maker Caterpillar Inc. claimed that their retail sales of machines have declined greatly. A manufacturing survey showed new orders remained weak and decreasing at a faster pace, sending its shares lower. Three-month retail sales in North America were down 57%, compared with declines of 51% and 41% in April and March. Caterpillar shares were down 4.27% or $1.61 to $36.12 per share after Monday afternoon trading.
Friday June 12, 2009
Retail stocks fall after consumer sentiment index increased less than expected in the June. However this had little effect on luxury retailers such as Saks Inc., where they received upgrades from "hold" to "buy" from Deutsche Bank. Analysts believe that Saks and other luxury retailers have "solid initiatives and strategies" which will create profits in the long run. Under adjusted management, Saks has reframed from catering to the "luxury customer" and began to take a more realistic perspective and adapted to current situations. Saks stocks have jumped by 15.43% or $0.58 to $4.34 per share during Friday's afternoon trades.
Government assistance is in the horizon for insurance company Hartford Financial who announced that it will receive up to $3.4 billion in federal TARP funds and an approximate $750 million share offering in an asset relief program. These measures were preformed in order to make up for a series of large investment losses amounting to $2.75 billion in 2008. HIG is a stock that is not recommended as of now falling by 8.24% or $1.16 to 12.92 per share.