Buzz Bits: The Streak is Snapped
Quite the WIT, you are - Sanjay Somaney - 4:02 PM
Wipro (WIT) Chairman, Azim Premji, is saying that the company plans to reward shareholders with juicy dividends due to its massive cash horde of over $1 billion.
The company is also planning on making a few mid-size acquisitions overseas and maybe even in india.
Incidentally, all four of Indian BIG IT/BPO heavyweights made new 52 week highs today in Indian trading.
Coincidence? I think not.
Position in WIT
Greenback tracking - Bennet Sedacca - 3:17 PM
To add to Kevin's commentary on the DX/Y, the second year of the Presidential term is usually the weakest of the four for the buck. This occurs as fiscal and monetary stimulus are removed from the market and are saved up for the final two years of the term when, in this case, President Bush will look to get his party re-elected and have a good legacy to retire with.
Please see the chart courtesy of our friends at Ned Davis Research.
Wish you were here - Vitaliy Katsenelson - 2:16 PM
First Data Corp's (FDC) stock is up $2 on the news of its CEO Charlie Fote leaving for personal reasons. I never looked at Charlie as a liability at FDC, thus I am surprised by today's price action.
Several months ago when I met Charlie at FDC investor day, he said that he was dissatisfied with FDC's price and that he'll have to do something within a couple of months if the price doesn't move - well, I never thought this would be his solution to the problem.
Position in FDC
Flashback! - Bill Meehan - 1:51 PM
5 years ago today found...
Closing levels: DJIA: 10,507.58; S&P 500: 1336.09; Naz: 2734.98;
Crude: 34.02; Gold: 269.50
This day in Minyanville history...
Prof. Succo looked at issues in Ohio and capitalism vs government intervention in King Bob.
In other news...
In 1963, President Johnson renamed Cape Canaveral, Cape Kennedy to honor JFK.
Very interesting... - Jason Roney - 12:27 PM
Related to Wednesday's trade (window dress or undress?), the last day of November, the SPX finished lower 8 of the last 10 years by an average of -.62%, and the percentage of positive closes remains below 50% even if we go out 20, 30 years.
For what it's worth, the SPX closed down 13 of last 20 years, and 17 of the last 30.
As Good as it Gets - Todd Harrison - 12:26 PM
"The Zack's Investment Research organization reported that Raymond James' Focus List had recorded the best returns of the year as compared to the various participating investment firms in Zack's stock-picking contest.
To wit, as of 3Q '05, Raymond James' Focus List had placed FIRST in returns for the quarter, first year-to date, first in returns over the trailing 12 months, eighth over the past three years (I don't know what happened here even though I "sit" on the Focus List committee), first on a five-year return, and first on a seven-year return basis . . . enough said!" Jeff Saut of Raymond James
Indeed Jeff, enough said. On behalf of everyone at MVHQ, we would like to offer heartfelt snaps on a job well done. Consistent with our internal mantra, you're very good at what you do and even better at who you are.
In a world where positive reinforcement typically occurs after a rally, we wanna take the time to offer our congrats on some snazzy performance figures. Noice.
Pulse of the Planet - Jonathan Schwartz - 12:16 PM
News, laughs and ideas beyond borders...
India wants Africa's oil. Offers $1 billion infrastructure funding for crude.
Mainichi Daily News reports that Sony joins movement to implement parental controls on videogame consoles. Children to turn off controls minutes later.
MosNews reports workers at Ford's Russian assembly plant end lazy work strike.
Cuba holds Biotech Congress to discuss development of food production.
Don't Leave Home Without It - John Succo - 11:43 AM
American Express (AXP) is $2 higher than on 11/16 when the CEO said that analysts estimates are "far too aggressive".
The stock traded off on very high volume. It has been grinding back steadily on fairly high volume, although that volume has now tailed off.
It is a good thing that fund managers don't pay attention to silly statements made by CEOs.
Position in AXP
Pay no Attention to That VIX behind the Curtain - Adam Warner - 11:30 AM
Last week, I mentioned that the holiday would play tricks with the VIX readings. Well, in that vein, take today's shining Green Volatility Sisters with a grain of salt as well. It's sort of the reverse hangover, as they adjust into real calendar time again. It happens every Monday anyway as the weekend decay gets priced in on Friday's. Throw in some Red Dye, and the big surprise would be if the VIX wasn't very strong statistically.
Rushin' promotion roulette? - Vitaliy Katsenelson - 10:49 AM
On the BJ Wholesale (BJ) conference call, management made a very interesting comment that may explain the Black Friday rush to buy the latest must-haves: "There are a lot of earlier promotions and everybody is trying to pull in these sales before the first heating bill arrives in consumers' mailboxes. " Need I say more?
Position in BJ
Priorities? - David Miller - 9:48 AM
It's a sign of the times when a company (Targeted Genetics (TGEN)) releases news they received a $21M contract to develop an HIV vaccine and barely moves. If the same value contract was announced for a bird flu program, the stock would have doubled despite the fact nobody is likely to catch bird flu any time soon from a human and HIV is a confirmed and intractable killer.
What was the term from Brave New World? "Righthinking?" Or was that 1984?
State of The Markets - Phil Erlanger - 9:02 AM
The Dow Jones Industrial Average, S&P 100 and NASDAQ 100 Indices put in another strong week. This run has been kind to investors' pockets. The daily Squeezeometer signal for the NASDAQ 100 Index remains a buy as of November 8. The S&P 100 Index signal remains a buy as of November 11.
The 14-day choppiness index for the NASDAQ 100 Index moved from 27 to 35 last week. This index ranges from 0 to 100, and the lower it goes the more a trend is evolving. The S&P 100 choppiness index moved from 36 to 31. Currently, the NASDAQ 100 and the S&P 100 indices are in uptrends. They also remain above their respective weekly DMA channels.
Do dividends still matter? Bennet Sedacca - 8:45 AM
Much has been said about the $600 billion residing on the balance sheets of corporations and the resultant buybacks and 'massive' dividend increases. Yet after the recent rally in stocks, the dividend yield of the SPX stands at a measly 1.76%.
Since 1968, whenever T-bill yields have been more than 2.12 times SPX yields, stocks have generally fallen. The one time this did not hold true was in the bubble years of 1998-2000 when the ratio actually reached 5.21. So, either we are about to enter another bubble phase - which is hard to imagine with record low equity mutual fund cash levels (as a percentage of assets) - corporations need to pony up some cash, or the Fed needs to lower rates.
Since I find most of the preceding thoughts highly unlikely, don't be surprised after the recent rally in stocks and the recent rally in short-term yields to allow for further major upside in stocks.
Say what? - Kevin Depew - 8:13 AM
A look at commentary, opinion and analysis from around the world:
Apparently, Richard Fisher says: I'm the Fed's "weakest" link. Nicknames tend to stick, especially on Wall Street, are you sure you want to go with the "weakest" link there, Richard? Why not "The Fisher King?" Or "The Fisher Price Target Playset?" How about "Fisher Cut Bait?" I got plenty more where that came from.
Agree or disagree with Andrew Greeley who, in the Chicago-Sun Times, asks, "Is Bush lying about his lies?" But when the 13th largest U.S. newspaper by circulation runs this kind of commentary about a sitting U.S. President, it is worth noting.
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