Buzz Bits: Dow, Nasdaq Down
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Earnings Report - MV News
- Amgen (AMGN) reports 1Q EPS in-line of $1.88 on revs of $3.69 bln vs. $3.72 bln cons.
- Express Scripts (ESRX) reports 1Q EPS of $1.04 vs. $0.94 cons on revs of $4.54 bln vs. $4.52 bln cons.
- Texas Instruments (TXN) reports 1Q EPS of $0.35 vs. $0.31 cons on revs of $3.19 bln vs. $3.15 bln cons.
- Boston Scientific (BSX) reports 1Q EPS of $0.20 vs. $0.19 cons on revs of $2.09 bln vs. $2.07 bln cons.
Bell Buzz - Todd Harrison - 3:46 PM
Random musings from the Monday front...
- $100 billion in deals and the tape ends flat (in the midst of a breakout)? Flag this day for review at a later date.
- "Long vol" or "positive gamma" doesn't mean that you gotta bet on the downside. It simply means that you're using options as vehicles to advantageously shape your risk profile.
- The Red Sox tossed the meat of their pitching staff at a beaten up Yankee squad and took three games by a total of four runs. There's hope yet for the pinstripers among us.
- Listening to Macke's half-brother Eric Bolling on television, I agree with everything he's saying about the changing face of media. President Fish has been talking about this for some time. Input. Output.
- Gotta jump and juggle as I ready for our Ruby Peck board meeting. I sincerely hope you had a fine session--if you were actually in today!--and that your night puts it to shame. May peace be with you.
The Tyranny of Pants - Jeff Macke - 1:23 PM
Greetings from NYC where it's 85-degrees and, of course, I'm wearing wool. It's enough to make me long to be Scottish. Other things I'm watching on a slow, flat day...
- Reporting season take-away so far: Earnings as a function of EPS look generally much better than the top-line. Among the culprits for this discrepancy: Buy-backs, estimate management, expense controls and raised-but-still-easy interest rates. It doesn't get you very far if you're looking for "growth" but it's hard to short companies beating estimates.
- Speaking of which, Coach (COH) reports tomorrow morning. Playing EPS moves is a Mug's game (I'd use Yahoo (YHOO) as an example here but I've never heard of the company), but Coach has been a case study of expanding a tremendous brand effectively. I'm not looking to trade into its number but I'm looking to listen to the call for a possible play after the report.
- Privately held Conde Nast is poised to take the lead in ad-pages from Time Warner (TWX), according to the NY Post. It's no wonder, given the monster success of publishing gimmicks like Vanity Fair's 2nd Annual Green Issue weighing in at the size of a small town phone book and containing about 60% print ads.
Is that do a ducktail or a spike? - Jeffrey Cooper - 11:40 AM
After 15 out of 16 days up, Hoofy is ignoring the bartender's closing time call---no sign of the proverbial post expiration hangover--yet.
But, by 2pm (eastern), stock that was exercised has to be paid for or sold out. The last hour could be interesting ---especialy with many stocks gapping open or spiking in the first hour.
Although the S&P didn't show a lot of muscle, the tone across the board was firm early on underpinned by the patty melt in many of the non-precious metals such as RTI International (RTI) and Southern Copper (PCU)--again.
But a look at a weekly chart of RTI from last April shows that RTI is up 150% since Oct 2006 and at the one year anniversary of its important April 2006 high (copper has also been know to score important seasonal highs at this time of year).
Additionally, RTI appears to be carving out what may be three drives to a possible blow off top. As the chart shows, when this metal turns it's highly corrosive.
Speaking of anniversaries, this is the biggest day in M&A since the Time Warner (TWX)aquisition of AOL in 2000. That marks a sentimental jouney. Only the fullness of time will tell if the hyperventilating in M&A will mark such a benchmark currently. Better have a bag ready.
Positions in PCU, RTI
Don't look now but here they come again... - Bennet Sedacca - 10:57 AM
I don't quite understand it, but people continue to line up to take losses. What on Earth do I mean?
The preferred, or should I say 'hybrid' (there is nothing preferred about them) market is heating up again. Just as yields make interim lows and spreads remain tight. So if you were General Electric (GE), Merrill (MER), Morgan Stanley (MS), blah blah blah, wouldn't you sell 'em?
If the lady wants a red dress, sell her a red dress, no?
The part that gets me is that there was a GE deal priced a few days ago that in an up market, 'broke syndicate,' or began trading in the secondary market 40 cents, or 1.5%, below the offering price. I have no doubt that the fate of these new deals being announced (Merrill today, Morgan Stanley last week) will be the same.
So I avoid them. Like the plague.
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