Buzz Bits: Dow and Nasdaq End in the Green
Your daily Buzz & Banter highlights.
Bell Buzz - Todd Harrison - 3:43 PM
- DUDE! Dell reports tonight and while I'm not involved, it's worth noting that the stock has now retraced precisely 50% of it's downdraft from the highs.
- Wait, so lemme get this straight. We're not gonna be able to watch the best NFL game of the season tonight? That just doesn't seem right.
- Be yourself sir. No matter what happens, they can't take that away from you.
- In my mind, it's not so much what Big Ben says tonight. It's more about how long people find his words to be credible. Psychology, while fragile, is still in tact.
- I just got off the horn with John Roque, the talented technician from Natexis Bleichroeder. He likes 'em, for what it's worth, and he's more right than wrong.
- Me? SmallVille Right now as I ready for a triple shot of Minyan launches. I tried some trades intra-day but will go home light and tight and ready for flight.
- Fare ye well into the bell, Minyans, and have a mindful night.
Stein Mart - Kevin Depew - 1:05 PM
Stein Mart (SMRT) caters to "everyday low price" shoppers, so we checked in on its call to find out what it is seeing.
- Stein Mart and its competitors have gone to "extraordinary lengths," including "deep discounts" of regular priced merchandise to attract customers.
- The company is seeing softness in a geographic area that has been traditionally strong, the Southeast.
- The company is "looking at alternatives" in its very weak home business, which continues to be very weak.
- The company is abandoning its branding advertising campaign to focus on a promotional campaign.
- The company is pulling back on new store opening plans and intends to cut costs more aggressively.
What's Up With Wheat? - Ryan Krueger - 12:08 PM
Argentina temporarily suspended its wheat exports to protect domestic supplies (it's a top exporter for the rest of the world) this week to evaluate late season frost damage after temperatures dipped into the 20s earlier this month in a key farming region. The March contract was limit up on the news before backing off. Some industry analysts predicted a reduction in harvest of 2 mln tonnes.
The only thing that has changed my view that input prices will negatively affect food producers – a good pairing with a nice Argentinian Malbec to swish around – is that many of those stocks are Consumer Staples, and therefore have watched their stock prices creep much higher during recession fears. My fear would be on the other side of that trade from here.
Position in Wheat.
CY a Great Theme - Quint Tatro - 10:50 AM
A Tickerville citizen just pointed out the obvious to me. With my continued enthusiasm for alternative energy and the possible continuation bounce in the Semis, Cypress Semiconductor (CY) is a great theme. According to the CY conference call, the company owns 44.5 mln shares of SunPower (SPWR) which holds an approximate value of $5.6 bln with the SPWR shares at $126. This is greater than the entire market cap of Cypress at $5.2 bln, which means a purchase of Cypress gives you the investment in SunPower and the semi side of the company for free.
Of course this works in reverse if the stocks falter so it isn't a complete slam dunk, but it's interesting enough for me to start averaging back into Cypress today and looking to build on another set up.
Position in CY.
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