Thank you very much;
you're only a step away from
downloading your reports.
Stocks: Observations on Goldman, Gulfport, Cisco, and Endo Health Solutions
From the Buzz & Banter: There's a good deal of conviction that a massive move is at hand when Endo reports on Friday.
Fil Zucchi    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

The last time Goldman Sachs (NYSE:GS) CDSs traded as tight as they are right now (in mid January), the stock traded at $180. If there's a good-odds bet in the markets (and I say good odds; there is no "sure thing") it's that divergences between credit securities and equity securities on the same financial name tend to resolve in the direction of credit. Someone obviously wants out of Goldman stock (the chart looks pretty horrible) but if the CDSs sustain the gains of the last month, they will drag the stock back up sooner than later.

The news out of the Utica shale so far this quarter has not been very good. Gulfport Energy (NASDAQ:GPOR) reports earnings tonight, and after the recent ramp from the mid 50s to the mid 60s, the setup calls for some caution. I am sticking to my thesis that the Utica companies are in the midst of growing pains, and if prices on outer years' winter futures can climb their way to the $5 range, the estimates for all the Utica gassy names are way understated.

Stifel was out this morning with a "short" trading call on Cisco Systems (NASDAQ:CSCO). I have been long this one from about current prices for a few months. I understand the fundamentals at Cisco stink right now, but to suggest shorting the stock after the company just borrowed $3.75 billion specifically to fund buybacks and pay dividends seems like a tough way to make money.

For the gambling investors out there, Endo Health Solutions (NASDAQ:ENDP) has had some very high conviction bullish activity on near-dated, out-of-the-money calls. The March $85 calls have open interest of almost 10,000 contracts (total open interest for all strikes and all expirations is 37,600) and were bought at about a $2.30 VWAP. That's a lot of conviction that a massive move is at hand when the company reports on February 28. I am not involved.

Twitter: @FZucchi
< Previous
  • 1
Next >
Position in GS, GPOR, CSCO.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Stocks: Observations on Goldman, Gulfport, Cisco, and Endo Health Solutions
From the Buzz & Banter: There's a good deal of conviction that a massive move is at hand when Endo reports on Friday.
Fil Zucchi    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

The last time Goldman Sachs (NYSE:GS) CDSs traded as tight as they are right now (in mid January), the stock traded at $180. If there's a good-odds bet in the markets (and I say good odds; there is no "sure thing") it's that divergences between credit securities and equity securities on the same financial name tend to resolve in the direction of credit. Someone obviously wants out of Goldman stock (the chart looks pretty horrible) but if the CDSs sustain the gains of the last month, they will drag the stock back up sooner than later.

The news out of the Utica shale so far this quarter has not been very good. Gulfport Energy (NASDAQ:GPOR) reports earnings tonight, and after the recent ramp from the mid 50s to the mid 60s, the setup calls for some caution. I am sticking to my thesis that the Utica companies are in the midst of growing pains, and if prices on outer years' winter futures can climb their way to the $5 range, the estimates for all the Utica gassy names are way understated.

Stifel was out this morning with a "short" trading call on Cisco Systems (NASDAQ:CSCO). I have been long this one from about current prices for a few months. I understand the fundamentals at Cisco stink right now, but to suggest shorting the stock after the company just borrowed $3.75 billion specifically to fund buybacks and pay dividends seems like a tough way to make money.

For the gambling investors out there, Endo Health Solutions (NASDAQ:ENDP) has had some very high conviction bullish activity on near-dated, out-of-the-money calls. The March $85 calls have open interest of almost 10,000 contracts (total open interest for all strikes and all expirations is 37,600) and were bought at about a $2.30 VWAP. That's a lot of conviction that a massive move is at hand when the company reports on February 28. I am not involved.

Twitter: @FZucchi
< Previous
  • 1
Next >
Position in GS, GPOR, CSCO.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
More From Fil Zucchi
Daily Recap
Stocks: Observations on Goldman, Gulfport, Cisco, and Endo Health Solutions
From the Buzz & Banter: There's a good deal of conviction that a massive move is at hand when Endo reports on Friday.
Fil Zucchi    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

The last time Goldman Sachs (NYSE:GS) CDSs traded as tight as they are right now (in mid January), the stock traded at $180. If there's a good-odds bet in the markets (and I say good odds; there is no "sure thing") it's that divergences between credit securities and equity securities on the same financial name tend to resolve in the direction of credit. Someone obviously wants out of Goldman stock (the chart looks pretty horrible) but if the CDSs sustain the gains of the last month, they will drag the stock back up sooner than later.

The news out of the Utica shale so far this quarter has not been very good. Gulfport Energy (NASDAQ:GPOR) reports earnings tonight, and after the recent ramp from the mid 50s to the mid 60s, the setup calls for some caution. I am sticking to my thesis that the Utica companies are in the midst of growing pains, and if prices on outer years' winter futures can climb their way to the $5 range, the estimates for all the Utica gassy names are way understated.

Stifel was out this morning with a "short" trading call on Cisco Systems (NASDAQ:CSCO). I have been long this one from about current prices for a few months. I understand the fundamentals at Cisco stink right now, but to suggest shorting the stock after the company just borrowed $3.75 billion specifically to fund buybacks and pay dividends seems like a tough way to make money.

For the gambling investors out there, Endo Health Solutions (NASDAQ:ENDP) has had some very high conviction bullish activity on near-dated, out-of-the-money calls. The March $85 calls have open interest of almost 10,000 contracts (total open interest for all strikes and all expirations is 37,600) and were bought at about a $2.30 VWAP. That's a lot of conviction that a massive move is at hand when the company reports on February 28. I am not involved.

Twitter: @FZucchi
< Previous
  • 1
Next >
Position in GS, GPOR, CSCO.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
EDITOR'S PICKS
 
WHAT'S POPULAR