Before The Bell: Hidden Gem In Tiffany?; Icahn's Tech Play?
Does Peltz see a hidden gem in Tiffany's? Is Icahn looking for more tech plays? Stock futures are up this morning.
Morning Perspective: Is Tiffany A Hidden Gem?
The WSJ reports investor Nelson Peltz and his Trian funds increased their stake in Tiffany & Co (TIF). Peltz, taking advantage of lower prices, disclosed a stake of 7.9% from a previous figure of 5.6% in an SEC filing. But shares of the luxury goods retailer have fallen as much as 22% this year after weak same-store-sales figures in back-to-back months prompted the company to cut its fiscal-year forecasts. Peltz made no comment; however, a Tiffany spokesman said they "view Trian's additional investment as an expression of their confidence in Tiffany's growth potential." For more on the sector, read Professor Jeff Macke's Retailers on Santa's Naughty List.
From the Bull Pen: Bulls know riding along with Peltz's strategy may take time. Yet near-term sell-stops for Tiffany may be placed below recent lows, $35.
From the Bear Cave: Retail bears see a downside entry at the $100 resistance level in Sears (SHLD); buy-stops can be set above.
Icahn's Tech Play
According to Bloomberg, billionaire investor Carl Icahn sees more opportunities for activist shareholders. Just yesterday, Icahn claimed victory after he pushed for the takeover of BEA Systems (BEAS) by Oracle (ORCL) for $8.5 bln. BEA investors, in which Icahn holds a 13% stake, will receive $19.38 per share, representing a 24% premium to Tuesday's closing price, the day before the deal was announced. Read Professor Mike Shedlock's column Tipping Point For Tech for more context on the sector.
From the Bull Pen: Bulls may look to Sybase (SY) and Open Text (OTEX) as sympathy plays related to the BEA takeover. Sell-stops may be placed below $25.70 and $29.70 respectively.
From the Bear Cave: A bearish play in the tech sector may include Baidu (BIDU). Bears see a great entry should the stock rally to the $300 level; buy-stops set above.
Click on Minyanville's Spotlight Stocks for more company-specific ideas.
Quick Check Around the World
As the Critters fire up this Thursday pup, they're seeing Asia mixed up and Europe in the green.
Asian trading closed with the Hang Seng +2.72%, Nikkei +2.07%, Sensex -0.84%, Taiwan -0.95% and Shanghai -2.63%.
A glance towards Europe finds the CAC +0.37%, DAX +0.40%, FTSE +0.01%, ATX +0.73%, Swiss Mkt. +0.55% and Stockholm +1.44%.
As of 9:00 AM EST, S&P Futures are up +7.50 to 1383, and Nasdaq futures are higher by +16 points to 1897.
A Look At Commodities
Commodities are moving higher. Crude oil is up +0.87 to 91.70. Gold is up +4.90 to 886.90. Silver is down -0.398 to 15.807, and copper is up +5.55 to 321.70.
The dollar index is down -0.206 to 76.056.
On the Radar
Initial Claims 301K vs 331K consensus
Building Permits 1068K vs 1135K consensus
Housing Starts 1006K vs 1145K consensus
12:00 Philadelphia Fed: -1.0 cons
Click here for the full trading radar.
Good luck, Minyans!
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