Friday, September 30, 2011
Presstek (PRST) Stock Chart Analysis
Two straight green days has the Presstek chart looking to reverse course since its fall from over $1. Short-term support is set at 70 cents with resistance in front at $0.80, but then not again until $0.88 and $1.00.
Thursday, September 29, 2011
Ecosphere Technologies (ESPH) Stock Chart Video
The ESPH chart has given a number of head fakes in the past towards making a stronger upward move, but has put together three straight green days recently which will have traders taking a closer look at the chart again. The indicators are showing a strong trend a good momentum, which adds credence to the possibility of a stronger move to take out resistance at 52 cents.
Wednesday, September 28, 2011
Asian Stocks Mixed Amid Europe Worries
Shawshank, VA 9/28/2011 (PennyPayDay) – Asian stock markets swung between gains and losses on Wednesday before closing on a mixed note, as risk-awry investors moved to the sidelines, awaiting greater clarity on how European policymakers intend to resolve the region's debt crisis.Commodities recouped some early losses and the euro held steady after European Commission President Jose Barroso ruled out the ouster of Greece from the euro region and called for more economic integration and power at European level to tackle the debt crisis.
The Japanese market rose marginally, as hopes that eurozone leaders would be able to increase their bailout package boosted export-related shares. With profit taking emerging in late trading, the benchmark Nikkei closed up 0.1 percent, while the broader Topix index added 0.7 percent.
Among exporter shares, Panasonic climbed 3.1 percent, Sony rose 1.9 percent, Olympus gained 1.1 percent and Toyota Motor closed up 0.7 percent. Realty stocks such as Nomura Real Estate Holdings and Mitsui Fudosan rose around 4 percent each on bullish analyst reports.
Softbank rallied 3.8 percent on bargain hunting, snapping five days of losses, while Fast Retailing tumbled 3.8 percent on profit taking after recent sharp gains. Drug makers came under selling pressure on a Barclays Capital report which predicted that the Japanese pharmaceutical sector will enter a "period of respite" because of ex-dividend dates and concerns over government drug price revisions from April 2012.
Astellas Pharma, Takeda Pharmaceutical and Eisai ended down between 0.5 percent and 4.1 percent. Japan Tobacco closed 2.9 percent lower in volatile trading after climbing to an almost 3-year high early in the session.
China's Shanghai Composite fell about a percent to its lowest levels in nearly 15 months, as early bargain hunting gave way to lingering global economic worries ahead of the week-long Chinese National Day holiday break beginning Oct. 1. Shares of rail-related companies such as China CNR Corp. and CSR Corp. lost around 2 percent each in the wake of a crash on one of Shanghai's newest subway lines on Tuesday that injured 271 people.
Hong Kong's Hang Seng index fell 0.7 percent, with banks pacing the declines.
Australia's benchmark S&P/ASX 200 rose 0.9 percent, paring early gains, as news of fresh dissension within the European Union threatened to delay Greek bailout plans. The broader All Ordinaries index closed up 0.8 percent.
The Australian dollar eased slightly amid the absence of a clear plan to resolve the euro-zone debt crisis. Miners rose in follow-through buying after Tuesday's rally, with BHP Billiton gaining half a percent and Rio Tinto adding a percent. Oil and gas producer Woodside Petroleum rallied 3.5 percent and Santos posted a modest 0.3 percent gain after encouraging news from Europe sent world crude prices sharply higher overnight.
Consumer discretionary stocks saw fresh buying, with department store giant David Jones and fellow retailer Myer climbing over 4 percent each. Wesfarmers rose 1.1 percent after it agreed to sell its Premier Coal business in Western Australia to Chinese coal miner Yanzhou Coal Mining for AUD 296.8 million.
The big four banks were mixed with NAB rising 2.6 percent and Westpac climbing 2 percent, while ANZ slipped 0.3 percent and Commonwealth edged down 0.1 percent. Shares of Orica climbed 3.7 percent despite higher than permitted mercury vapour levels detected at its Botany site in Sydney.
South Korea's Kospi average swung between gains and losses before ending down 0.7 percent on profit taking as investors took a breather following the previous session's rally. The selling was driven by computer-driven prgramme transactions, analysts said.
Meanwhile, Financial Services Commission Chairman Kim Seok-dong said today that global economic uncertainties are likely to persist for quite a long time due to a continued slump in the real economy.
Hyundai Motor, South Korea's biggest automaker lost a percent, while its affiliate Kia Motors eased 0.3 percent. Memory chipmaker Hynix fell 3.3 percent, while Samsung Electronics edged up 0.4 percent on optimism over its third-quarter earnings. LG Electronics rose 2.5 percent after the company said it had filed a lawsuit with a South Korean court seeking to block local branches of BMW AG and Audi AG over the use of lighting products made by Siemens unit Osram that infringe its patents.
New Zealand's NZX-50 index crept 0.2 percent higher, extending gains for a second day in a row, as concerns eased that the Greek debt crisis might spread to the rest of Europe. OceanaGold climbed 5.8 percent, extending recent gains as gold prices stabilized after recent meltdown.
Dual-listed financial stocks such as Westpac and AMP rose around 2 percent each and national carrier Air New Zealand gained 0.9 percent, while Heartland, the would-be bank, led the decliners on the exchange, falling 4 percent. Jeweler Michael Hill International fell 3.5 percent and resins maker Nuplex lost 2.7 percent on turning ex-dividend.
Elsewhere, India's Sensex was last trading down half a percent on profit taking after climbing 3 percent the day before. Singapore's Straits Times was down 0.9 percent, but the markets in Malaysia, Taiwan and Indonesia edged up, posting gains between 0.5 percent and 1.1 percent.
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European Markets Mixed
A report in the Financial Times said Eurozone countries are divided over the terms of Greece's second 109 billion euros bailout deal with a number of member countries demanding private creditors to share a bigger writedown on their Greek bond holdings.
As many as seven of the bloc's 17 members are now asking the private creditors to share the burden amid concerns that Athens' funding needs have grown beyond the previous estimates made just two months ago, the report said quoting senior European officials.
German Chancellor Angela Merkel said she is awaiting a report from Troika on the progress made by Greece in cutting its budget deficit, before deciding whether the July 21 deal need to be renegotiated or not, reports said. Citing her interview with the Greek state television NET, reports said this suggested a possible revision to the second bailout package agreed at the July 21 summit.
Meanwhile, Greek Finance Minister Evangelos Venizelos Tuesday promised "superhuman" efforts to meet the deficit targets agreed under the international bailout deal. "We have taken very tough decision and these have huge political and social costs," he said in a press conference ahead of a Parliamentary vote on the highly unpopular property tax.
European Commission has reportedly confirmed that the Troika of international lenders will retun to Greece on Thursday.
The Euro Stoxx 50 index of eurozone bluechip stocks is adding 0.79 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is rising 0.42 percent.
The German DAX is adding 0.57 percent and the French CAC 40 is rising 0.02 percent. The UK's FTSE 100 is falling 0.13 percent and Switzerland's SMI is advancing 0.45 percent.
Among the DAX components, truckmaker MAN is falling 4.4 percent. Volkswagen is losing 1.6 percent. BMW is flat, while Daimler is moderately higher.
Commerzbank is losing 3 percentand Deutsche Bank is falling 1.8 percent. ThyssenKrupp, HeidelbergCement and Lufthansa are down over 2 percent. MunichRe is down 0.6 percent and Allianz is falling 1.1 percent. Exane raised MunichRe to "Outperform" from "Underperform" and increased its price target on the stock.
K+S is losing 1.5 percent. UBS raised the stock to "Buy" from "Neutral." HSBC cut Demag Cranes to "Underweight" from "Neutral." The stock is down 0.4 percent.
Kloeckner is falling 1.4 percent. JPMorgan cut its price target on the stock. Heidelberger Druckmaschinen is adding 2.5 percent after HSBC raised the stock to "Neutral." Kabel Deutschland is up 0.6 percent. Merrill Lynch increased its price target on the stock.
Krones is falling 3.1 percent. HSBC cut its price target on the stock to 43 euros from 60 euros. Air Liquide is adding 0.2 percent in Paris after JPMorgan raised the stock to "Overweight" from "Neutral."
Loreal is gaining 1.55 percent. Sanofi is adding 1.5 percent. Essilor International, Technip and Danone are notably higher.
Metal fabrication firm Vallourec is declining 4.6 percent. Hotel group Accor is falling 2.9 percent. Lender Societe Generale is retreating 2.9 percent. Credit Agricole and BNP Paribas are moderately lower, while Natixis is adding 0.6 percent.
Renault is falling 2.5 percent and Peugeot is losing 1.3 percent. Goldman Sachs cut Peugeot to "Sell" from "Neutral" and reduced its price target on both stocks.
Axa is falling 1.2 percent. Exane BNP cut its price target on the stock.
In London, Man Group is plunging over 19 percent. The asset manager expects lower profit for its first half of fiscal 2012, reflecting decline in net management fees amid weak investor demand. Icap and Schroeders are falling 3 percent and 2 percent, respectively.
BG Group is adding 3.6 percent, reportedly on a positive broker recommendation. Cairn Energy is falling 2.9 percent. The company announced the abandoning of a well in Greenland. Smiths Group is rising 2.3 percent. The company reported a higher profit for fiscal 2011.
Ashmore Group is adding 2.6 percent. GKN is falling 2.5 percent. Miners Anglo American, Antofagasta, BHP Billiton, Kazhakhmys, Vedanta and Xstrata are in negative territory, while Rio Tinto is flat. Among lenders, HSBC and Barclays are falling 1.5 percent each, while Lloyds Banking and Royal Bank of Scotland are each retreating 1.7 percent.
Clariant is falling 1.6 percent in Zurich. In economic news, Germany's import price inflation slowed more than expected in August, the Federal Statistical Office said. Import price inflation came in at 6.6 percent in August, down from 7.5 percent in July. Economists were expecting the annual rate to ease to 6.7 percent. On a monthly basis, import prices fell 0.7 percent, bigger than the expected drop of 0.3 percent.
The French economy stagnated in the second quarter as initially estimated, final data from the statistical office Insee showed. The Gross Domestic Product remained flat on a sequential basis in the second quarter, following prior quarter's 0.9 percent growth.
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TSX May Open Higher Amid Euro Zone Optimism
Shawshank, VA 9/28/2011 (PennyPayDay) – Canadian stocks are poised to open higher Wednesday amid mixed signals from the commodities and global equity markets. Asian markets ended flat overnight, while European stocks were paring recent gains ahead of a final word on rescue package for Greece.Traders were jittery ahead of the final approval of the release of funds to Greece, to help the nation avoid a default, amid debate over the size of losses bondholders should face.
On Tuesday, the S&P/TSX Composite Index extended gains for a second session, adding 113.91 points or 0.97 percent to 11,821.00.
The price of crude oil was little changed Wednesday morning as traders await cues from the official inventories data from the EIA, due out later during the session. Analysts expect crude oil inventories to dip by 3 million barrels and gasoline stocks to ease by 500,000 barrels last week. Crude for November slipped $0.90 to $83.55 a barrel.
The price of gold was holding on to its previous session's gains Wednesday morning, supported by physical buying. Gold for December edged down $0.30 to $1,652.20 an ounce.
BlackBerry maker Research In Motion Ltd may be in play after gaining nearly 4 percent in the previous session on speculation that investor Carl Icahn is buying a stake in the company. . In corporate news from Canada, independent investment solutions provider AGF Management Ltd. said it third quarter net income increased 7.6 percent to C$29.9 million from C$27.8 million reported in the year ago period. The company declared a dividend of $0.27 per share.
Communications solutions provider Manitoba Telecom Services said it has successfully issued $200 million of 7-year 4.59 percent medium term notes, maturing on October 1, 2018.
Online media company Yellow Media said it will record a goodwill impairment charge of C$2.9 billion in net earnings for the period ending September 30, 2011. The Board has determined that it is in the best interest of the Company to eliminate future dividends on its common shares
In economic news from the U.S., the Commerce Department said durable goods orders fell $200 million, or 0.1 percent, to $201.80 billion in August. The modest drop in durable goods orders came as a surprise to economists, who had been expecting orders to increase by 0.2 percent.
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Mid-Day Market Update
Shawshank, VA 9/28/2011 (PennyPayDay) – After closing higher in each of the three previous sessions, stocks are seeing some further upside in early trading on Wednesday. The major averages have all climbed firmly into positive territory, further offsetting the steep losses posted last week.In the past few minutes, the major averages have pulled back off their highs for the young session, but they are holding on to notable gains. The Dow is up 107.47 points or 1 percent at 11,298.16, the Nasdaq is up 16.48 points or 0.7 percent at 2,563.31 and the S&P 500 is up 7.16 points or 0.6 percent at 1,182.54.
The markets continue to benefit from optimism about the financial situation in Europe, with European Commission President Jose Manuel Barroso calling on the European Central Bank to do "whatever is necessary" to ensure the financial stability of the euro zone.
Barroso also called for more flexibility and powers for the European rescue fund and proposed a financial transaction tax, which he described as a contribution to society from banks.
Meanwhile, traders have largely shrugged off the release of a report from the Commerce Department showing an unexpected drop in durable goods orders in the month of August.
The report showed that durable goods orders edged down by 0.1 percent in August after jumping by 4.1 percent in July. The modest decrease came as a surprise to economists, who had expected orders to increase by 0.2 percent.
Peter Boockvar, equity strategist at Miller Tabak, said, "Bottom line, August as we all know was when the global economy started to roll as Europe flared up, among other things, and today's August data was better than feared."
"This data point though is subject to large revisions and September business likely remained volatile so we need to see more months of data in what is now a new economic reality compared to pre-August numbers to draw any confident conclusions," he added.
Software stocks have shown a notable move to the upside in early trading, driving the NYSE Arca Software Index up by 1.4 percent. SAP (SAP) is helping to lead the sector higher, advancing by 3.2 percent to its best intraday level in almost a month.
Considerable strength is also visible among retail, oil, and pharmaceutical stocks. A majority of the other major sectors are also moving to the upside on the day, although most are showing relatively modest upward moves.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Wednesday despite a positive lead from Wall Street. Japan's Nikkei 225 Index edged up by 0.1 percent, while Hong Kong's Hang Seng Index dipped by 0.7 percent.
The major European markets have also turned mixed over the course of the trading day. While the German DAX Index is up by 0.4 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are down by 0.2 percent and 0.7 percent, respectively.
In the bond market, treasuries are seeing modest strength following the weak durable goods orders data. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.2 basis points at 1.994 percent.
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Amazon Tablet Serious Competition to Apple iPad
Oxford, MS 9/28/2011 (PennyPayDay) – Amazon is unveiling today a tablet, called the Fire, that may not have all the same features as an iPad, but will start at a much lower price.According to a Bloomberg report citing Amazon executives, it will cost $199, compared to the iPad, which starts at $499.
Initially, it appears the Kindle Fire will be more of a color version of the Kindle e-reader than a true competitor to the iPad.
The device will have a 7-inch display (3-inches shy of the iPad), and will run Google’s Android software, but it won’t have an embedded camera or microphone. Additionally, it will come with Wi-Fi, but not 3G.
All Things D’s Peter Kafka is live in New York to cover all of the proceedings.
As rumored previously, the device will come with a 30-day free trial of Amazon Prime, the Seattle company’s $79 annual membership, which includes free two-day shipping, but also some content, like streaming video.
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Brainstorm Cell Therapeutics (BCLI) Stock Chart Video
Holding support in the area of 30 cents, the BCLI chart moved mildly upward yesterday. The MACD and RSI indicators are trying to turn as the price per share will not meet much static resistance until $0.38.
GreenHouse Holdings (OTC:GRHU) Subsidiary Lands New Deal
Northern, WI 9/28/2011 (PennyPayDay) – GreenHouse Holdings, Inc. (OTC:GRHU), a provider of energy efficiency solutions and sustainable infrastructure products, announced Monday, in a press release, that its wholly-owned subsidiary Control Engineering, Inc. (CEI) has been selected by an international oil and gas exploration company to provide control and network systems engineering and upgrades for a southern California facility representing over $175,000 in revenue to the Energy Division of GreenHouse.The project entails providing a Control System and Network Engineering Study, Documentation and System Upgrade, which will include:
1. Field engineering, fact finding and design review
2. Develop complete system documentation and recommendations
3. SCADA and MES system and network upgrades
4. Industrial Ethernet fiber network for multiple PLCs, HMIs and MES computers
5. Establish communication and automate wellhead pump controls
"This is another great opportunity for CEI and GreenHouse," said Dave Lautner, Vice President of Business Development for CEI. "We are extremely pleased to have been selected and look forward to future projects within this critical industry where we can offer our engineering and automation expertise."
"CEI has proven itself as an industry leader in automation and control engineering time and again," commented John Galt, CEO of GreenHouse. "This project simply confirms the huge contribution they bring to the GreenHouse family."
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LargeCap Stocks to Keep an Eye on Today
Northern, WI 9/28/2011 (PennyPayDay) – Amazon shares were rising 1% to $226.40 in premarket trading Wednesday as the online retail giant gets ready to launch its long-anticipated tablet computer.Electronics manufacturing services provider Jabil Circuit forecast first-quarter earnings of 62 cents to 70 cents a share on revenue of between $4.3 billion and $4.5 billion. The current consensus view is for profit of 61 cents a share on revenue of $4.41 billion in the quarter.
The company posted core earnings of $136.3 million, or 62 cents a share, on revenue of $4.28 billion for its fourth quarter, trouncing the average estimate of analysts polled by Thomson Reuters for a profit of 56 cents a share on revenue of $4.19 billion.
Shares were surging 9% to $18.95 in premarket trading Wednesday.
Progress Software said it sees non-GAAP earnings of 30 cents to 33 cents a share for the fourth quarter on revenue ranging from $130 million to $134 million. Analysts are looking for a profit of 42 cents a share in the quarter on revenue of $145.4 million.
The Bedford, Mass.-based maker of infrastructure software reported third-quarter non-GAAP earnings that beat the average analysts' earnings per share view by 2 cents.
Shares were tumbling 7.3% to $17.98.
Shares of Avago Technologies were tumbling 3.6% to $33.25 after the analog semiconductor devices provider announced the sale of 15 million Avago shares by certain shareholders to Citigroup and Deutsche Bank Securities, the underwriters in the public offering of those shares.
Payroll, human resource and benefits outsourcing solutions provider Paychex reported first-quarter earnings of 41 cents a share, beating the average analyst estimate of 38 cents a share.
Shares were spiking 2.6% to $27.39 in premarket trading Wednesday.
Shares of apparel company Ralph Lauren were falling 1.9% to $145.94 after the stock was cut to hold from buy at Citigroup.
Independent oil and natural gas company SandRidge Energy agreed to sell certain East Texas natural gas properties to NFR Energy for $231 million.
SandRidge plans to use the cash proceeds to fund a portion of its oil-focused drilling program. SandRidge expects the transaction to close in November.
Shares were rising 1.7% to $6.60.
Darden Restaurants posted first-quarter earnings of 78 cents a share, in line with analysts estimates.
Shares were falling 1.2% to $46.40.
Family Dollar Stores is predicting full-year earnings of between $3.50 and $3.75 a share vs. the average analyst estimate of $3.58 a share.
The company forecasts earnings of 65 cents to 73 cents a share in the first quarter vs. the Wall Street consensus target of 66 cents a share.
Family Dollar reported fourth-quarter sales of $2.13 billion, in line with estimates, while profit came in at 66 cents a share vs. the average analyst estimate of 63 cents. Gross profit as a percentage of sales came in at 34% from 34.7% mainly because of stronger sales of lower-margin consumables.
Shares were down 1.2% to $53.52.
Google plans to build three of its own data centers in Europe with an investment of more than $200 million.
The stock was rising 0.5% to $542.11.
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3 Things to Consider While Trading Today
Oxford, MS 9/28/2011 (PennyPayDay) – Stocks were mixed in Asian trade. Australia gain almost 0.9% and the Nikkei was up a slight fraction, but the Hang Seng fell two thirds of a percent and Shanghai dropped about one percent. European indexes are generally better on the day, with the Dax currently up about 0.9%, but the Footsie is essentially unchanged on the session. US stock futures are up a bit more than half percent as I write.*The August reading of China’s Leading Economic Index fell a slight fraction to 101.83; the second decline in a row and the lowest mark since March.
*The Finland Parliament approved the July changes to the EFSF.
*The EU announced this morning they have set an extra Eurogroup meeting for October to discuss Greece, but the date has not yet been picked.
*The August reading of Germany’s Import Price Index was down twice as much as forecast with a monthly drop of 0.7%; but the annualized reading at +6.6% was right on the estimate.
*German states are releasing the September reading of their Consumer Price Index, some of the results include: Saxony +0.3% month on month and +2.6% year on year; Brandenburg -0.1% and +2.3%; North-Rhine Westphalia +0.3 and +2.8%; and Bavaria 0.0% and +2.5%. The national CPI is also due out this morning, it is expected to be -0.1% on a month on month basis and +2.6% year on year, for the EU Harmonized version.
*Boston Fed boss Rosengren spoke earlier today in Sweden. He said the Fed should focus on achieving full employment and that he is “very supportive” of Operation Twist.
*US mortgage applications were up 9.3% in the week ended September 23, according to the Mortgage Bankers Association. Applications for Purchase were up only 2.6% but those for Refinancing gained 11.2% on the week.
*The August reading of Durable Goods Orders is due out at 7:30am CDT. Headline Orders are expected to be -0.4% on a monthly basis and the Orders ex-transportation is forecast to be down 0.2% from the month before.
*The weekly report on energy inventories is due out at 9:30am CDT. Stocks of Crude Oil are forecast to increase 2.05 million barrels, Gasoline inventories are expected rise 1.0 million and the estimate for Distillates is -400k.
*The Treasury plans to sell $35 billion 5 Year Notes today; the results of the auction will be announced just after noon CDT.
*Fed boss Bernanke is scheduled to speak about emerging market economies in Cleveland at 4:00pm CDT.
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Obama Jobs Plan Arguments
Tomahawk, WI 9/28/2011 (PennyPayDay) – President Barack Obama’s $447 billion jobs plan would help avoid a return to recession by maintaining growth and pushing down the unemployment rate next year, according to economists surveyed by Bloomberg News.The legislation, submitted to Congress this month, would increase gross domestic product by 0.6 percent next year and add or keep 275,000 workers on payrolls, the median estimates in the survey of 34 economists showed. The program would also lower the jobless rate by 0.2 percentage point in 2012, economists said.
Economists in the survey are less optimistic than Treasury Secretary Timothy F. Geithner, who has cited estimates for a 1.5 percent boost to gross domestic product. Even so, the program may bolster Obama’s re-election prospects by lowering a jobless rate that has stayed near 9 percent or more since April 2009.
The plan “prevents a contraction of the economy in the first quarter” of next year, said John Herrmann, a senior fixed-income strategist at State Street Global Markets LLC in Boston, who participated in the survey. “It leads to more retention of workers than net new hires.”
Some 13,000 jobs would be created in 2013, bringing the total to 288,000 over two years, according to the survey. Employers in the U.S. added 1.26 million workers in the past 12 months, Labor Department data show.
Obama’s plan, announced on Sept. 8, calls for cutting the payroll taxes paid by workers and small businesses while extending unemployment insurance. It also includes an increase in infrastructure spending and more aid for cash-strapped state governments.
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Gold Climbs for a Second Day
Tomahawk, WI 9/28/2011 (PennyPayDay) – Gold may gain for a second day in London as concern about Europe’s debt crisis spurs demand for a protection of wealth and as physical purchases increase.European equities declined after a report that some countries are demanding private creditors take bigger writedowns on Greek bonds. Bullion dropped 8.8 percent in the three days to Sept. 26, the most since October 2008, as some investors sold to cover losses in other markets. Physical purchases remain “very visible” across much of Asia, UBS AG said today.
Long-term investors and “physical buying will do a lot to help gold rebuild its reputation after the recent ugly selloff,” Edel Tully, a London-based analyst at UBS, wrote in a report. “The panic displayed over the past few days has dissipated to a great extent, though there certainly hasn’t been a stampede back into gold. Instead, the market remains hesitant and gold continues to consolidate. We believe this is healthier than a steep push higher.”
Immediate-delivery gold rose $10.30, or 0.6 percent, to $1,660.43 an ounce by 10:10 a.m. in London. Prices dropped to $1,532.72 on Sept. 26, the lowest since July 8. Gold for December delivery was 0.5 percent higher at $1,660.60 on the Comex in New York.
Gold is in the 11th year of a bull market, the longest winning streak since at least 1920 in London. Prices reached a record $1,921.15 on Sept. 6 as investors sought to diversify away from equities and some currencies.
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Tuesday, September 27, 2011
Little Changed as Greece Plans Emerge
Shawshank, VA 9/27/2011 (PennyPayDay) – The euro traded lower against the dollar and the yen on Monday, in volatile trading, as doubts over officials reaching an agreement on a resolution for the debt crisis bubbled to the surface. European officials are considering a plan to make sure that Greek default will not spread into the rest of the euro zone’s banking system.
Newspaper reports suggest that officials are mulling a plan that would allow Greece to default, recapitalise banks and increase the European Financial Stability Facility fund way beyond its current €440bn capacity.
However disappointment remained following unfruitful International Monetary Fund and G20 weekend meetings. The euro was at $1.3486, down around 0.1% on Monday. The single currency was also down 0.3% against the yen at 103.02 yen.
The dollar too was lower against the yen, down 0.3% at 76.38 yen. The dollar index, which measures the US dollar against a basket of six other currencies, fell 0.3% at 78.284.
The dollar also lost ground to the pound on Monday however sterling remains susceptible to selling against the dollar on concern that the Bank of England could unleash more monetary easing to bolster sluggish growth.
The greenback has risen by around 6% against the pound over the last month on fears over further QE in the UK, the eurozone debt crisis and the weak US economic outlook.
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Asia Market Reports
Shawshank, VA 9/27/2011 (PennyPayDay) – Japanese shares rose 2.82% on Tuesday on hopes that policy makers will get to grips with Europe's debt crisis. Sentiment was also buoyed by reports that Japan may consider being part of plans to help bailout Greece.
European debt hopes fuelled financials and exporters. Sumitomo Mitsui Financial advanced 3.42%, Mitsubishi UFJ Financial added over 4% in Tokyo. Canon climbed 4.3% while Olympus tacked on 5.2% to 2,390 yen.
Bridgestone was another big gainer, up over 6% at 1,727 yen.
The benchmark Nikkei 225 index rose 235 points at 8,609.
The Hang Seng powered ahead on Tuesday with hopes that Europe sovereign-debt crisis will be stopped from getting any worse.
Energy stocks staged an impressive comeback with shares of oil giant Cnooc surging 7.8%. PetroChina rallied 5.43% and Aluminum Corp of China jumped 7.5% in Hong Kong.
Banks also pushed ahead. HSBC added 3.44%, ICBC wa up 9.09% and Bank of China rallied 5.15%. Ping An Insurance bounced back 7.5% in Hong Kong.
Retailer Esprit climbed 7.19% on hopes of that plans are firmly afoot to sooth the European debt crisis. Li & Fungadded 7.49%.
The Hang Seng index rose 722 points at 18,131.
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Eurozone Euphoria Continues
Shawshank, VA 9/27/2011 (PennyPayDay) – In a triumph of hope over experience, investors are snapping up shares on expectations that European leaders will come up with a solution to the Eurozone debt crisis that will simultaneously please the markets and their respective electorates. US broadcaster CNBC said this morning that it has had confirmation from European officials that they are working on a plan to shore up European bank stability by using the European Financial Stability Fund to capitalise a special purpose vehicle (SPV) that would be created by the European Investment Bank.
The SPV would issue bonds and then use the funds from the bond sales to purchase the debt of distressed European states; the bonds could also then be used as collateral for borrowing from the European Central Bank.
As was the case yesterday, financial stocks are the ones to own today. French lenders BNP Paribas, Societe Generale and Credit Agricole plus investment bank Natixis lead Paris higher while German banks Deutsche Bank and Commerzbankcarry the flag for Frankfurt, along with insurer Allianz.
The Paris CAC is 109 points firmer at 2,968 while the DAX in Frankfurt is 214 points higher at 5,560.
German car maker Daimler is putting the pedal to the metal after it was upgraded to "outperform" from "neutral" by Credit Suisse. The Swiss bank likes Daimler's €8bn cash pile and the scope the German luxury car maker has to squeeze employment costs.
Elsewhere in the German automobile sector, Volkswagen has been given regulatory clearance to go ahead with its takeover of lorry maker MAN SE.
Power equipment maker Alstom is humming along after Morgan Stanley issued a positive broker note. The broker has an "overweight" rating for Alstom. In other broker action, Sanford C. Bernstein has upgraded wind turbine makerVestas to "market perform" from "underperform".
Swiss drugs leviathan Novartis is another celebrating receiving regulatory approval. The Japanese authorities have given the thumbs up for the marketing of two drugs in Japan: multiple sclerosis treatment Gilenya and cryopyrin-associated periodic syndrome (a group of rare inherited auto-inflammatory conditions) treatment Illaris.
The group has also had a result with its Seebri drug, as tests showed it improved the functioning of the lungs for smokers. Based on these findings, Novartis intends to seek regulatory approval for the drug to be released in Europe.
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Early Signals Point To Positive Open For TSX
Northern, WI 9/27/2011 (PennyPayDay) – Bay Street stocks are poised to extend gains at open Tuesday amid rebounding commodities and positive trading across the global equity markets. Global stocks rose as investors hoped that European officials would find a solution to cut Greece's debt and shore up European banks.U.S. stock futures were pointing to a sharply higher open.
On Monday, the S&P/TSX Composite Index snapped its 3-session losing streak to add 244.32 points 2.13 percent to 11,707.19.
The price of crude oil rose near $83 Tuesday morning as traders hoped that European leaders were making progress in an attempt to stabilize the region's debt crisis. ECB governing council member Ewald Nowotny yesterday said the possibility of interest rate cuts should not be ruled out. Crude for November gained $2.55 to $82.79 a barrel.
The price of gold rebounded even as the U.S. dollar continued to trade firm versus a basket of currencies. Gold for December advanced $66.50 to $1,661.30 an ounce.
In corporate news from Canada, independent investment dealer GMP Capital Inc. (GMP.TO) said its subsidiary acquired all of the outstanding equity securities of Miller Tabak Roberts Securities LLC (MTR) for $33 million in cash. MTR, a New York headquartered institutional fixed income boutique specializing in high yield debt, distressed debt, convertible bonds, international bonds, investment grade and asset-backed securities.
Asia based financial services company Sunwah International (SWH.TO) reported a narrower fourth quarter net loss of $4.7 million or $0.0525 per share compared to $7.6 million or $0.0843 per share for the same period last year.
Silver producer Silver Standard Resources (SSO.TO) revised down its 2011 silver production guidance to 7.3 million from 7.6 million ounces after the Pirquitas mill in Argentina was shut down due to gearbox failure.
Independent transmission developer Tonbridge Power (TBZ.V) announce that its shareholders voted on the acquisition of Tonbridge by Enbridge Inc. (ENB.TO) through a plan of arrangement for $0.54 per share in cash. Tonbridge shares closed Monday session at $0.530
Fertilizer producer Hanfeng Evergreen (HF.TO) reported a sharp drop in fourth quarter profit at C$2.3 million or C$0.04 per share from C$9.6 million or C$0.15 per share in the year-ago period. Analysts were expecting the company to report earnings of C$0.11 per share for the quarter.
Rio Tinto plc (RIO) announced that it has increased its stake in Canadian miner Ivanhoe Mines Ltd. (IVN.TO) to 49 percent.
Mineral explorer Appleton Exploration (AEX.V) has agreed to assign its interest in Manalo to Northrock Resources Inc. for $250,000 and 1 million shares of Northrock.
In economic news from the euro zone, confidence among German consumers is set to stabilize in October, survey results from the market research group GfK indicated today. The forward - looking consumer sentiment index remained at 5.2 points for October against economists' expectations for a fall to 5 points from 5.2 points in September.
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Mid-Day Market Update
Northern, WI 9/27/2011 (PennyPayDay) – Stocks moved sharply higher at the start of trading on Tuesday, extending the strong upward move seen over the course of the previous session. The major averages all jumped firmly into positive territory, continuing to offset the sell-off seen last week.The early strength on Wall Street comes as traders continue to express optimism about the financial situation in Europe, with officials reportedly taking further steps to address the Greek debt crisis and its impact on the regional economy.
Resource stocks are seeing considerable strength in early trading, benefiting from a rally by commodities prices. Steel stocks are posting particularly strong gains, while energy stocks are also showing a strong move to the upside as the price of crude oil jumps by nearly $3 a barrel.
Significant strength has also emerged among banking stocks, which are climbing further off their recent lows amid easing concerns about Europe. Transportation, housing, and networking stocks are also posting notable gains, moving higher along with most of the major sectors.
In recent trading, the major averages have pulled back off their highs for the young session, although they continue to post strong gains. The Dow is up 203.06 points or 1.8 percent at 11,246.92, the Nasdaq is up 34.72 points or 1.4 percent at 2,551.41 and the S&P 500 is up 20.05 points or 1.7 percent at 1,183.00.
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Gold Futures Advance After Big Decline
Oxford, MS 9/27/2011 (PennyPayDay) – Gold gained for the first time in five days in New York as the biggest three-day drop in 28 years spurred some investors to buy the metal on concern about economic growth and debt crises.Bullion slumped 12 percent in the previous three days as some investors sold to cover losses in other markets, which plunged on concern there may be another global recession. The metal has slid 13 percent from its Sept. 6 record and last week’s plunge prompted CME Group Inc. (CME) to raise margin requirements on futures contracts. Physical demand for gold is “exceptionally strong,” UBS AG said today in a report.
“Although not many are yet prepared to dip their toes back in the market, there is a small but growing group who believe this pullback will prove to be a good buying opportunity,” Edel Tully, a London-based analyst at UBS, wrote in a report. “Gold needs to stabilize for now, after suffering a good deal of reputational damage with recent wild moves.”
Gold for December delivery gained $73.20, or 4.6 percent, to $1,668 an ounce by 8:16 a.m. on the Comex in New York. It dropped to $1,535 yesterday, the lowest level since July 8, and capped the biggest three-day decline since March 1983. Immediate-delivery gold was 2.5 percent higher at $1,666.40 in London.
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Attunity (OTC:ATTUF) to Present in San Francisco Early October
Tomahawk, WI 9/27/2011 (PennyPayDay) – Attunity Ltd. (OTC:ATTUF), a provider of real-time data integration software, introduced today, in a press release, Attunity Replicate, a high-performance data replication software that will enable organizations to accelerate and reduce the costs of distributing, sharing and ensuring the availability of data for meeting business operations and business intelligence needs. Attunity will present Attunity Replicate at Oracle Open World 2011 in the Moscone Convention Center's West Hall in San Francisco, CA, October 3-5, at booth #3728."More and more organizations are looking at data replication as a component of their data integration arsenal, to facilitate accessibility, availability and consistency of data in support of a range of business requirements including analytics and reporting, integration of operational systems, system migrations and upgrades, and more," explained Ted Friedman, vice president and distinguished analyst at Gartner. "At the same time, more IT organizations are focusing on time-to-value as an important factor in choosing solutions that enable them to respond to these business demands."
"Attunity Replicate, our new and innovative data replication platform, is the right solution at the right time, enabling organizations to harness the value of real-time information and capitalize on quick time-to-value," explained Shimon Alon, chairman and CEO of Attunity. "Attunity Replicate is the first product we bring to market as part of our vision to provide cloud computing and the enterprise market with an extensive data and content replication platform. Attunity Replicate and the file replication technologies we recently added through the RepliWeb acquisition will create a unique portfolio, to enable us to accelerate our growth, extend our existing partner relationships and engage new partnerships around big data and cloud computing."
Attunity Replicate's architecture facilitates the replication of big transaction data from databases including Oracle, SQL Server and DB2, and is designed to deliver quick time-to-value with:
'Click-2-Replicate' design: significantly simplifying user experience by automating the steps required to build a replication solution with packaged software that is fast to learn and implement.
'Zero-footprint' technology: reducing impact on database platforms and IT operations with log-based capture and delivery of transaction data that does not require the Attunity software to be installed on each source and target database.
Competitive licensing model: offering significantly lower licensing costs compared to alternative data replication solutions, enabling customers to benefit from faster return on investment (ROI) and lower total cost of ownership (TCO).
The Company will also present Attunity Replicate at the first "Scene and Be Heard" theatre session at Oracle Open World on Monday, October 3, from 10:30 a.m. - 10:50 a.m.
Additionally, Attunity will host a launch event featuring both Attunity Replicate and the recently acquired RepliWeb technologies on Tuesday, October 4, from 7 p.m. - 9:00 p.m. at Infusion Lounge, located on 124 Ellis St. in San Francisco, CA.
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Tuesday's Promo Stocks: (OTC:TBBC), (PINK:NYXO), (OTC:TKDN), (PINK:POTG)
Tomahawk, WI 9/27/2011 (PennyPayDay) – Tuesday’s smallcap stocks under e-mail promotion campaigns are as follows: Nyxio Technologies (PINK:NYXO); Portage Resources (PINK:POTG); The Brainy Brands (OTC:TBBC); and Takedown Entertainment (OTC:TKDN). These stocks usually have high volume but are very volatile throughout the day so, as always, be careful if you choose to trade them.PennyPayDay Disclaimer
LargeCap Stocks to Keep an Eye on Today
Tomahawk, WI 9/27/2011 (PennyPayDay) – KEYW Holding shares are plunging 17.5% to $8.25 in premarket trading Tuesday after the cybersecurity services firm disclosed the loss of a systems integration contract to a competitor."While the award of the Aura contract to a competitor is disappointing, we continue to see abundant opportunities for continued high growth," said Leonard Moodispaw, the company's president and CEO, in a statement.
Progress Software is expected by analysts to report third-quarter earnings of 29 cents a share, down from year-earlier earnings of 37 cents.
Shares were rising 5.4% to $20 in premarket trading.
Airline shares were rising as Ticonderoga Securities lifted its third-quarter earnings outlook for the airline sector. Improved revenue and lower fuel costs were among the reasons cited for the move.
AMR was gaining 3.5% to $3.58; U.S. Airways was rising 1.1% to $6.50; and Delta Air Lines was ahead by 1.5% to $8.42.
Drugstore chain Walgreen reported fourth-quarter profit of 57 cents a share vs. the average analyst estimate of 55 cents.
Shares were rising 2.9% to $37.07 in premarket trading Tuesday.
Electronic manufacturing services company Jabil Circuit is expected by analysts to post fourth-quarter earnings of 56 cents a share after the markets close Tuesday vs. 52 cents a year ago. Shares were rising 2.8% to $17.20.
Goldman Sachs is preparing to expand cost-cutting by hundreds of millions of dollars, a move that could lead to additional job cuts, The New York Times reported.
Shares were rising 1.7% to $100.82.
Organic chemical products company Huntsman said its Textile Effects division plans to undergo "significant" restructuring, including the possible closure of its production facilities and business support offices in Basel, Switzerland, as part of an ongoing program aimed at improving its long-term competitiveness.
Shares were up 0.3% to $10.70.
Management consulting firm Accenture is expected to report fourth-quarter earnings of 88 cents a share, compared with year-earlier earnings of 66 cents.
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Brownies Marine Group (BWMG) Technical Stock Chart Video
The BWMG chart is starting to move upward after touching a low of $0.025 recently. Looking for continuation of higher lows, support is set at $0.03 with resistance at $0.04 and $0.05. With volume starting to come in a more regularly, traders will be watching for a stronger move to possibly challenge the resistance levels.
Monday, September 26, 2011
Asia Market Reports
Shawshank, VA 9/26/2011 (PennyPayDay) – The Nikkei fell 2.17% on Monday after the International Monetary Fund's weekend meeting in Washington failed to provide plans to resolve the eurozone debt crisis. Focus will turn this week to EU and IMF officials meeting in Athens to discuss whether Greece is doing enough to qualify for the next slice of its €110bn bailout.
Exporters were sent packing on concern about dwindling demand from Europe. Sony tumbled over 4% while Nissan reversed 3.6% to 620 yen in Tokyo.
Japanese commodities trader Mitsubishi Corp plummeted almost 8% on Monday on a deep and broad commodity rout. Peer Mitsui & Co surrendered 6% to 1,172 yen.
Tokyo Electric Power suffered some of the biggest losses on the Nikkei, with its shares plunging 13% to 259 yen. Nippon Electric fell 12% after it slashed its earnings forecasts for the next six months.
The benchmark Nikkei 225 index closed down 186 points at 8,374.
The Hang Seng retreated nearly 1.5% on Monday with persistent concern about Europe and stalled global growth pusing many traders towards the door.
Retailers with exposure to Europe were among the many casualties. Esprit shed 5.6% while Belle International was clobbered nearly 4%.
Hutchison Whampoa tumbled 5.6% on concern about shrinking demand from Europe.
Commodities, not surprisingly, also came under pressure. Oil, gold, copper and silver prices all suffered deep routs as investors scrambled into cash. Jiangxi Copper plunged 9.7% while PetroChina eased 1%.
Financials were mostly lower as investors seek safe haven assets amid the gloomy global outlook and European sovereign debt crisis.
Insurer Ping An was a significant faller, down 13.91% while ICBC declined 2.78%. Standard Chartered lost 2.5%.
The Hang Seng fell 261 points at 17,408 in Hong Kong.
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European Market Reports
Shawshank, VA 9/26/2011 (PennyPayDay) – European investors are buying into the story that a revamp of the European Financial Stability Fund (EFSF) is on its way any day now, though not everyone is convinced. Huw Pil, at Goldman Sachs, reckons the markets might be getting ahead of themselves, and doubts that the announcement of a €3tn (£2.6tn) plan to save the euro by recapitalising banks, giving more firepower to a bailout fund and allowing Greece to default on its debts, is imminent.
The schedule of further measures announced by the G-20 on Friday envisaged a less immediate response, possibly to be announced at the Cannes G-20 summit in six weeks' time, Pil notes.
Furthermore, the scope for EFSF enlargement is likely to be constrained by political considerations and the recent ruling of the German Constitutional Court while there are also concerns about whether the European Central Bank could lend to the EFSF directly.
David Beers, the head of ratings agency Standard & Poor's (S&P) sovereign rating group, has suggested in an interview with the Reuters news agency that a deeper fiscal union between members of the Eurozone could increase borrowing costs for 'core' European countries.
"If governments are unable to focus on the long-standing impediments to growth, then austerity alone is not going to give you growth," Beers said, citing the case of Italy.
There are also rumours that investors will be expected to take a further hit on their exposure to Greek national debt.
In July the investors, who are mostly made up of banks, agreed to take a 21% write down - a "haircut" in City parlance - on their Greek debt, but the new plan could see this rise to 50%.
Beers alluded to this, saying S&P believes European policy makers are also finally realising that Greece's debt restructuring will take place with significant haircuts.
The news does not seem to be unduly the shareholders of banks, with lenders BNP Paribas, Credit Agricole and Societe Generale plus investment bank Natixis four of the top five blue-chip risers in Paris, though all trail in the wake of insurer AXA, which is glad to see a recovery in its European equity portfolios. In Germany, Deutsche Bank and Commerzbank are also bowling along happily, but they too see their strong gains outdone by an insurer, this time Allianz.
Meanwhile, Mohamed El- Erian, the Chief Executive of Pacific Investment Management Co (PIMCO), which has the biggest bond fund in the world, has stuck his oar in, predicting a slow-down in growth of the global economy, with Europe going ex-growth.
El-Erian predicted Europe's economy would contract by between 1% to 2% with the US simply flat-lining.
His view was backed up by a measurement of German business confidence from the Ifo institute, which fell to is lowest level in 15 months, though the September index level of 107.5, down from 108.7 in August, was above the 106.5 expected by economists.
On the corporate front, the big news over the week-end was that UBS Chief Executive Oswald Grübel has fallen on his sword over the rogue trading incident that saw the bank swallow billions of dollars of unauthorised trading losses.
In the statement announcing Grübel's resignation, UBS's Chairman Kaspar Villiger said: "The board regrets Oswald Grübel's decision. Oswald Grübel feels that it is his duty to assume responsibility for the recent unauthorized trading incident. It is testimony to his uncompromising principles and integrity.”
Sergio Ermotti, currently in charge of UBS's European operations is take over the Chief Executive position on an interim basis.
Elsewhere in a busy banking sector, there are reports that Franco-Belgian investment bank Dexia is hoping to offload another €20bn of toxic loans, which would bring the total amount dumped to a nice round €100bn since the financial crisis took hold in the latter part of the previous decade.
French business daily Les Echos, citing an unnamed source at the bank, said the company might take a 10% loss on the loans, such is its desire to get the bad assets off its books.
Meanwhile, Bank of France governor Christian Noyer stated in an interview with Le Journal du Dimanche that French banks do not need to be recapitalised but could seek support from a public entity should it be necessary.
On speculation that the government planned to inject €10bn to €15bn in French entities, Noyer said, "there is no plan, and we don't need one."
Away from torrid banking sector, steel distributor Kloeckner is looking brittle after its chief executive reportedly grumbled that the usual post-summer pick-up in business had yet to materialise.
Elsewhere in Germany, drugs leviathan Bayer is wanted after its prostate cancer drug Alpharadin came up trumps in a Phase III study, with those patients who used it showing a significant increase in survival levels.
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Canadian Market Reports
Shawshank, VA 9/26/2011 (PennyPayDay) – Bay Street stocks may recover at open Monday on bargain hunting after falling heavily in the past three sessions. Steady commodities and positive cues from the global equity markets may help lift trader sentiment.Over the weekend, European officials said Germany, along with other rich European nations, is pushing for a new strategy to the region's debt crisis.
U.S. stock futures were pointing to a higher open
On Friday, the S&P/TSX Composite Index extended losses for a third session, dipping 99.65 points or 0.86 percent to 11,462.87, taking its cumulative losses in the past three sessions to just over 6 percent.
The price of crude oil was little changed near $80 as the U.S. dollar was steady versus a basket of currencies amid uncertain global economic outlook Crude for November edged up $0.25 to $80.10 a barrel.
The price of gold was extending losses for a third session Monday morning after the world's largest futures market, CME, said it would increase the collateral requirements for gold by over 20 percent. Last week, gold suffered once of its worst weekly losses in over 2 decades plummeting nearly 10 percent to settle below $1,650 on heavy off-loading by speculators in tandem with a meltdown in global markets. Gold for December lost $10.10 to $1,629.70 an ounce, however, recovering from an intraday low of $1,535.00.
In corporate news from Canada, insurance services company Intact Financial Corp. (IFC.TO) said it has completed its C$2.6 billion acquisition of AXA Canada. Separately, the company said it would sell AXA Canada's life insurance business, AXA Life Insurance, to SSQ, Life Insurance Co. Inc. for $300 million.
Metal miner Silver Standard Resources (SSO.TO) announced that it has completed the sale of its Bowdens project in New South Wales, Australia to Kingsgate Consolidated Ltd. for $75 million in cash and shares.
International pharmaceutical company Valeant Pharmaceuticals International Inc. (VRX.TO) plans to raise its takeover offer for Afexa Life Sciences Inc. (FXA.TO) to $0.85 per common share, an increase of 20 percent from $0.71 originally offered under a deal announced on August 30, 2011.
Specialty pharmaceutical company Paladin Labs Inc. (PLB.TO), Sunday said that if Afexa's two shareholder rights plans will be cease-traded by the Alberta Securities Commission it will increase its acquisition offer of Afexa Life Sciences Inc. (FXA.TO) to $0.81 per share.
Rail service equipment company Global Railway Industries (GBI.TO) announced the completion of sale of its operating subsidiary, CAD Railway Industries Ltd., for $12.4 million.
Steel pipe and tubes maker Lakeside Steel (LS.V) reported that its first-quarter net loss widened to C$1.09 million from a net loss of C$810,662 in the year ago quarter.
In economic news from the euro zone, German business confidence declined less than expected in September, according to a monthly survey from the Ifo institute. The business climate index dropped to 107.5 from 108.7 in August. Economists were expecting the index to ease to 107.
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Mid-Day Market Update
Shawshank, VA 9/26/2011 (PennyPayDay) – After moving higher at the open, stocks have turned in a lackluster performance over the course of early trading on Monday. The major averages have turned mixed on the day, with the tech-heavy Nasdaq sliding firmly into negative territory.While the Nasdaq is currently down 13.81 points or 0.6 percent at 2,469.42, the Dow is up 55.78 points or 0.5 percent at 10,827.26 and the S&P 500 is up 1.49 points or 0.1 percent at 1,137.92.
The initial strength on Wall Street was partly due to easing concerns about the financial situation in Europe, with EU monetary affairs commissioner Olli Rehn saying that talks are under way to expand the European Financial Stability Facility bailout fund.
The International Monetary Fund also said it stands ready to "strongly support" the efforts of its European colleagues to resolve the euro-area crisis.
However, lingering concerns about the global economic outlook helped to limit the upside for the markets, and some traders looked to cash in on the early gains.
In U.S. economic news, the Commerce Department recently released a report showing a drop in new home sales in the month of August.
The report showed that new home sales fell by 2.3 percent to an annual rate of 295,000 in August from the revised July rate of 302,000. Economists had expected new home sales to drop to 293,000 from the 298,000 originally reported for the previous month.
Benefiting from the easing concerns about Europe, banking stocks are seeing considerable strength in early trading. The KBW Bank Index has risen by 1.4 percent, climbing further off the two-year closing low it set last Thursday.
On the other hand, resource stocks have come under pressure on the day, with gold stocks leading the way lower amid a continued decrease by the price of the precious metal. Semiconductor and biotech stocks are also seeing early weakness, contributing to the pullback by the Nasdaq.
In overseas trading, stock markets across the Asia-Pacific region showed notable moves to the downside during trading on Monday. Japan's Nikkei 225 Index tumbled by 2.2 percent, while Hong Kong's Hang Seng Index fell by 1.5 percent.
Meanwhile, the major European markets are seeing strength on the day but have pulled back well off their best levels of the day. While the German DAX Index is up by 1.7 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are up by 0.4 percent and 0.2 percent, respectively.
In the bond market, treasuries are seeing notable weakness, pulling back further off their recent highs. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4.2 basis points at 1.85 percent.
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Apple Down on Report of iPad Supply Slowdown
Shawshank, VA 9/26/2011 (PennyPayDay) – Apple Inc (Nasdaq:AAPL) shares dipped nearly 3 percent in early trading on Monday after an analyst said the iPhone maker is cutting orders from suppliers of parts for its iPad tablet.JPMorgan Chase said in the research note that several suppliers indicated in the past two weeks that Apple lowered fourth-quarter iPad orders by 25 percent.
"Our understanding is that this is not in preparation for a new model launch," said Gokul Hariharan, JP Morgan's Asia Pacific electronic manufacturing services analyst.
The move could result in slower sales for suppliers like Hon Hai Precision Industry Co, the analyst added.
Apple shares were down $12 at $392.30 on Nasdaq.
Hariharan noted that Mark Moskowitz, JP Morgan's U.S.-based Apple analyst, does not expect the supply chain adjustments to result in downside to his estimates for iPad shipments.
Another analyst report out of Asia over the weekend indicated that the retail outlook was that Apple remained positive on the continent with packed Apple stores in several Chinese cities..
"We anticipate continued strong earnings growth for Apple due to our checks indicating strong global demand for the iPhone and iPad," said analysts at Canaccord Genuity.
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Warren Buffett Buying Back Shares
Northern, WI 9/26/2011 (PennyPayDay) – Warren Buffett's conglomerate Berkshire Hathaway said it will launch a share buyback program, an extremely rare move from Buffett that comes after months of investor complaints that the stock was undervalued.Berkshire said it would buy back Class A and Class B shares at a premium of no more than 10 percent to book value.
The company said it would use cash on hand to fund the buybacks, but would not buy any shares if doing so took the company's cash position below $20 billion. Berkshire had $38.23 billion cash at June 30 but has spent at least $15 billion this quarter on acquisitions and investments.
Berkshire shares rose 3.8 percent in premarket trading on the news of the planned buybacks. The more actively traded Class B shares are off 17.2 percent this year, compared with a 9.6 percent decline for Buffett's preferred benchmark, the S&P 500 index.
That underperformance has led analysts and investors to insist that Berkshire shares were at their most undervalued point in perhaps a generation.
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Empire Post Media (OTC:EMPM) Signs Reality TV Deal
Northern, WI 9/26/2011 (PennyPayDay) – Empire Post Media, Inc. (OTC:EMPM) announced today, in a press release, that its wholly owned subsidiary, Hybrid-Reality Entertainment, Inc., has entered into a worldwide distribution deal for its one-hour reality television series, "Journey Beyond," with The Freemantle Corporation, a global distributor of television and home video programming. EMPM is also under an e-mail promotion campaign initiated by a third party investor.Peter Dunn, President of Empire, stated, "We feel fortunate to have The Freemantle Corporation representing our product. The stature of a company such as Freemantle, representing "Journey Beyond," will not only boost our revenue but also allow us to build a solid corporate image throughout the world."
The series, currently in production in Los Angeles, was created and produced by Richard Mann and Ellen Fontana.
Mann, an award-winning producer with credits on over 25 feature films, has also produced numerous television programs and feature documentaries. Fontana has developed packaged and produced eleven features and two television movies and has written five screenplays. She is the co-writer on a six-hour miniseries, "Cloud Street," which aired in May on Showtime Australia.
The pilot is being shot in 3D for delivery and broadcast in both 2D High Definition and 3D. The series explores psychic and paranormal experiences, based on the real stories of real people.
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Lone Star Gold (OTC:LSTG) Signs LOI to Purchase Mexico Property
Oxford, MS 9/26/2011 (PennyPayDay) – Lone Star Gold, Inc. (OTC:LSTG) announced today, in a press release, the Company signed a letter of intent (LOI) on September 23, 2011, committing to the acquisition of an option to purchase a 70% interest in a gold-silver project consisting of 2 properties in Mexico: San Luis and La Colorada. LSTG is also under an e-mail promotion campaign initiated this morning by a third party investor."This new project is an ideal fit with our goal of rapidly becoming a mid-tier producer in the short term," stated Daniel Ferris, Lone Star Gold's Company President. "By expanding our portfolio in the region with mining projects that have the potential of production, we're in a far better position to take advantage of today's higher gold and silver prices through projects that can be brought into production for a fraction of the cost of much larger projects."
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CardioNet (BEAT) Technical Stock Chart Analysis
The CardioNet stock value has been beaten down over the last couple months. Thursday and Friday ended last week with some upward pressure which may be signs that this low-volume play is getting ready to reverse course. Resistance is set at $3.00 and $3.30.
LargeCap Stocks to Keep an Eye on Today
Oxford, MS 9/26/2011 (PennyPayDay) – Investor Carl Icahn withdrew his slate of nominees for the board of cleaning products maker Clorox, essentially backing off his bid to engineer a sale of the company.In a Form 13D filing with the Securities and Exchange Commission, Icahn said the decision was made "after concluding that a considerable base of shareholders would not support their stated campaign at this time."
Shares were slumping 5.5% to $65.60 in premarket trading Monday.
Online move rental company Netflix could unveil Monday a new streaming deal with DreamWorks Animation, the company behind the "Shrek" films, reports say.
Netflix shares were gaining 4.9% to $135.65.
Shares of UBS were rising 3.7% to $11.67 after the Swiss bank appointed Sergio Ermotti as interim CEO after a $2.3 billion rogue trading loss forced the resignation of Oswald Gruebel over the weekend.
Boeing announced Sunday it had made contractual delivery of its first 787 Dreamliner to All Nippon Airways of Japan.
Shares were rising 1.7% to $60.50.
Online retail giant Amazon will hold a press even in New York this week, and rumors are swirling that it will finally unveil its highly-anticipated tablet. Rumors have been circulating for several months that the e-commerce giant is readying itself to launch a tablet to rival Apple's iPad.
Shares were adding 1.6% to $227.26.
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Netflix Gets Dreamworks Deal Instead of HBO
Tomahawk, WI 9/26/2011 (PennyPayDay) – Netflix (Nasdaq:NFLX) Inc has won a deal to pipe Dreamworks Animation movies starting in 2013, the first time a major Hollywood studio has chosen Internet streaming over traditional pay TV, The New York Times reported on Sunday.Dreamworks CEO Jeffrey Katzenberg told the newspaper the deal, worth $30 million per picture to Dreamworks over a number of years, was "game-changing" and represented a bet that viewers would soon no longer make distinctions between content streamed on the Internet or through cable.
The Netflix deal means Dreamworks -- the studio behind family friendly fare from "Shrek" to "Kung Fu Panda" -- is eschewing premium pay-TV operator HBO in favor of online streaming, the Times reported. HBO is a unit of Time Warner Inc. "We are really starting to see a long-term road map of where the industry is headed," Katzenberg was cited as saying to the newspaper in an interview.
The content agreement comes days after Netflix, which has seen its share price decline sharply after a series of missteps, sealed an agreement to broadcast TV shows from Discovery Communications Inc.
Netflix needs to add more content to its streaming service to keep drawing in new customers and fend off competition from the likes of Amazon.com, Google Inc and Apple Inc.
Shares of the one-time Wall Street darling have fallen 50 percent in two months. Netflix CEO Reed Hastings has apologized for failing to explain moves adequately, from a surprise price hike in July to a separation of its DVD-mail from streaming services, and the company is trying to win customers back.
But adding customers is suddenly proving difficult, with Netflix on the receiving end of heated complaints from customers still upset over the price hike announced in July.
It cut its subscriber forecast by 1 million, saying it now expected to have 24 million subscribers at the end of the third quarter. The last time Netflix reported a subscriber decline was the second quarter of 2007, when Blockbuster was aggressively pushing a DVD rental package called Total Access.
According to the Times, Netflix was quick to pump up the Dreamworks deal.
"This is one of the few family entertainment brands that matter," Chief Content Officer Ted Sarandos was quoted as saying. "It's also a signal to people that we are in no way moving away from movies. Our programing is just reflecting more and more what people want."
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Monday's Promo Stocks: (OTC:EMPM); (PINK:POTG); (OTC:TBBC)
Tomahawk, WI 9/26/2011 (PennyPayDay) – Monday’s smallcap stocks under e-mail promotion campaigns are as follows: Portage Resources (PINK:POTG); Empire Post Media, Inc. (OTC:EMPM); and The Brainy Brands, Inc. (OTC:TBBC). These three stocks should see increased volume and volatility today, but as always be careful if you choose to trade them.PennyPayDay Disclaimer
Friday, September 23, 2011
October 2 is LIVESTRONG Day
Shawshank, VA 9/23/2011 (PennyPayDay) – On the day Lance Armstrong was diagnosed with cancer he pledged to fight and live as a survivor.It’s a moment I have shared, along with millions of others around the world. And it’s the cornerstone of the LIVESTRONG movement: an unshakeable promise to fight cancer and live with dignity.
To honor that commitment and celebrate survivorship, we join together every year to make a bold, global statement, and we need your help.
Pledge to wear yellow with Lance on LIVESTRONG Day—October 2—and stand in solidarity with cancer survivors around the world.
When you pledge to wear yellow, you’ll stand as a reminder that survivors and supporters are in communities everywhere.
And this year, it’s even more critical. World leaders concluded the historic UN Summit on non-communicable diseases and more than 150,000 LIVESTRONG supporters took our fight to the international stage. They called out cancer as a global crisis and demanded that world leaders Face Up To It.
Countries made historic commitments to tackle the world’s worst killers including cancer. But it’s up to us to make sure they follow through on their promises.
On October 2, LIVESTRONG supporters will stand together to show the world that in massive numbers—and in bold spirit—we have strength.
Pledge to wear yellow on LIVESTRONG day and be counted:
http://LIVESTRONGDay.LIVESTRONG.org
On October 2, we can hold up a megaphone to our movement. With your help, we’ll show the world that we’re committed to fighting cancer with the same courage, tenacity and unbeatable spirit will that define LIVESTRONG survivors.
October 2, pledge to wear yellow, and stand with us.
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Europe Trying to Get Ahead of Crisis
Northern, WI 9/23/2011 (PennyPayDay) – European policymakers showed signs they were preparing new steps to cope with the region's debt crisis even as talk of a possible Greek default gained pace on Friday.World stock markets, which had plunged to a 14-month low on fears the euro zone crisis was not under control, rallied after European Central Bank officials said they would use their firepower to help the banking system through the crisis.
Finance ministers and central bankers from around the world, in Washington for semi-annual policy discussions, have turned up the heat on Europe to do more to prevent Greece's debt crisis from infecting the world economy.
"They have six weeks to resolve this crisis," said British finance minister George Osborne. Euro zone leaders needed to have the situation under control by the time leaders of the Group of 20 economies meet in France in November, he said.
Pressure is growing on European governments for a recapitalization of the region's vulnerable banks -- perhaps to strengthen them in preparation for a Greek default.
Policymakers in Europe also seemed to be warming to the idea of giving more firepower to their bailout fund.
"Europe is running against time," Brazilian Financial Minister Guido Mantega said. "I hope Europe does not wait for the first countries to break before putting new instruments in place because then the bill will be higher."
The head of the International Monetary Fund, Christine Lagarde, said Europe and the grim economic outlook in the United States required a new collective effort or "we run the risk of losing the battle for growth."
PUZZLE PIECES
As European policymakers try to piece together a bolder strategy for stemming the debt crisis, the ECB provided some relief to investors, as three officials said banks could be primed with one-year liquidity to help shore them up.
"During the time of the (2007-2009) financial crisis, one of the instruments we had was ... one-year tenders. I think it might be advisable to think about reintroducing this approach," ECB board member Ewald Nowotny said.
The IMF, which has been pressing aggressively for a recapitalization of Europe's banks, reckons the debt crisis has increased their risk exposure by 300 billion euros.
In a sign Europe was coming to terms with the idea of a recapitalization, France's top market regulator said 15 to 20 banks needed extra capital, although no French ones "at this stage.
The prospect of a Greek default appeared to grow when Finance Minister Evangelos Venizelos was quoted by two newspapers as saying an orderly default with a 50 percent haircut for bondholders was one way the heavily indebted euro zone nation's cash crunch could be resolved.
Officials played down the reports and Venizelos described them in a statement as an unhelpful distraction from the central task of sticking to Greece's EU/IMF bailout program.
ECB governing council member Klaas Knot told a Dutch daily a Greek default could no longer be ruled out, the first ECB policymaker to speak openly of the prospect.
"It is one of the scenarios," Dutch daily Het Financieele Dagblad quoted him as saying. "All efforts are aimed at preventing this, but I am now less certain in excluding a bankruptcy than I was a few months ago."
MARKET HOPES
Hopes the ECB would take further steps to ease the debt crisis helped European shares stage a late rally, although U.S. stocks were mixed in afternoon trade.
Late on Thursday, G20 finance ministers and central bankers said they would "take all necessary actions to preserve the stability of the banking system and financial markets as required," a statement that failed to placate investors.
The G2O statement, issued after talks in Washington, said the 17-nation euro zone would implement actions to "maximize" the impact of the region's bailout fund by mid-October.
G20 participants did not say how the 440 billion-euro European Financial Stability Facility might be altered although French Finance Minister Francois Baroin used the word "leverage' in comments to reporters.
The United States has previously proposed that Europe could leverage up the EFSF to give it more firepower to protect the euro zone and its banks.
The IMF's Lagarde said it might be wise for the ECB to continue buying government bonds even after Europe's bailout fund is given the power to do so.
Politicians in northern Europe, especially in Germany, have opposed dedicating more money to offset what they see as the profligacy of countries such as Greece. Tensions have also flared within the ECB over its role in buying bonds of struggling euro zone states.
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Commodities Fall to Nine-Month Low
Oxford, MS 9/23/2011 (PennyPayDay) – Commodities fell to a nine-month low as silver, copper and nickel tumbled on deepening concern that policy makers are running out of tools to avert another global recession, hurting demand for metals, fuel and food. Gold fell below $1,700 an ounce in New York.The Standard & Poor’s GSCI Index of 24 commodities fell as much as 5.2 percent, the most since Dec. 2, and was down 1 percent at 2:16 p.m. in London. The index is down 7.9 percent this week, the most since May 6. Silver slumped 10 percent, copper was down 3.1 percent and nickel dropped 3.6 percent.
Central bankers and finance ministers will discuss the economic outlook today at the annual meetings of the International Monetary Fund and World Bank in Washington. The Federal Reserve on Sept. 21 said it will replace $400 billion of short-term debt with longer-term Treasuries, saying it sees “significant downside risks” to growth.
“We are seeing commodity prices correcting so they are more compatible with the global economy,” said Christin Tuxen, a senior analyst with Danske Bank A/S in Copenhagen. “When we have fears over the economic cycle as we have now and a higher probability of contraction, it hits industrial metals and commodities.“
Slowing Growth
The world economy will expand 4 percent this year and next, the International Monetary Fund said on Sept. 20, cutting forecasts made in June for a 4.3 percent expansion and 4.5 percent in 2012.
“We are not predicting a recession in the Western world, but low growth for the long term,” Danske Bank’s Tuxen said. “We are looking for a rebound in China and Asia in the fourth quarter and in 2012, which will help copper and aluminum.”
Three-month copper on the London Metal Exchange fell as much as 7.3 percent to $7,115.75 a metric ton. Prices declined for a sixth day and have slumped 26 percent from the record $10,190 on Feb. 15. The metal is down 15 percent this week, on course for the biggest retreat since December 2008. Tin plunged as much as 14 percent to $17,000 a ton.
“We’re in a downward spiral, and no one knows when it’s going to end,” said Robin Bhar, an analyst at Credit Agricole SA in London. “There is a lot of uncertainty at this time as to how demand will develop.”
Manufacturing in China, the world’s largest metals user, may shrink for a third month in September, according to a preliminary index of purchasing managers from HSBC Holdings Plc and Markit Economics released yesterday. The initial reading for this month was 49.4, compared with a final 49.9 for August and 49.3 for July. Figures below 50 signal a contraction.
The GSCI index has fallen 10 percent so far in the third quarter, heading for the biggest quarterly drop since the fourth quarter of 2008.
Oil, Gold
Immediate-delivery gold dropped as much as 3.3 percent to $1,681.97 an ounce, and last traded at $1,687.98. Silver futures have dropped 19 percent in two days.
“Gold has to roll with the masses, as markets show their disappointment in the Fed’s ‘Operation Twist’,” Edel Tully, a London-based analyst at UBS AG, wrote today in a report, referring to the Federal Reserve’s plan to shift $400 billion of its Treasury securities holdings into longer-term debt.
“The confidence-seeping sentiment that now permeates at a deeper level will at some point translate into a higher gold price,” she wrote.
November-delivery oil lost as much as 3.7 percent to $77.55 a barrel on the New York Mercantile Exchange. The price is still down 10 percent this week, set for the biggest loss since May 6.
Soybeans for November delivery dropped as much as 2.6 percent to $12.50 a bushel on the Chicago Board of Trade.
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Friday's Promo Stocks: (OTC:EMPM); (PINK:NYXO); (PINK:POTG); (OTC:MMED)
Oxford, MS 9/23/2011 (PennyPayDay) – Friday’s smallcap stocks under e-mail promotion campaigns are as follows: Nyxio Technologies (PINK:NYXO); Portage Resources (PINK:POTG); Empire Post Media (OTC:EMPM); and Midas Medici Group Holdings (OTC:MMED). These stocks should be pretty volatile and have significant volume today, but always be extra careful should you choose to trade.PennyPayDay Disclaimer
Oil Below $79 as Fears Grow Over Economy
Tomahawk, WI 9/23/2011 (PennyPayDay) – Oil prices continued to fall sharply on Friday, retreating $2 to below $79 a barrel amid falling equity markets and the prospect of weaker demand for crude as the global economy slows.By early afternoon in Europe, benchmark oil for November delivery was down $2.07 to $78.44 in electronic trading on the New York Mercantile Exchange. Crude plunged $5.41, or 6.3 percent, to settle at $80.51 on Thursday.
In London, Brent crude for November delivery was down $1.45 at $104.04 on the ICE Futures exchange.
Crude has dropped more than 10 percent, from above $90 last week, as investors fret that Europe's debt crisis -- EU officials have begun to speak openly of the possibility of a Greek default -- and a weak U.S. economy will stymie oil demand.
"Time is running out for Europe, and as a result, it is perhaps running out for the whole world," said James Swanson, chief strategist at MFS Investment Management.
A pledge by countries which account for 85 percent of the global economy, the Group of 20, to restore stability to the world's financial system lifted markets early Friday but that support quickly eroded and indicators fell back into red.
"This morning, we saw a few signs of a correction in the oil market; however, gains proved to be short-lived as crude oil prices reversed and continued their downside momentum tracking fresh losses in global equity markets," said a report from Sucden Financial Research in London.
The worsening global outlook has pounded stock markets, which oil traders look to as a gauge of overall investor sentiment. The Dow Jones industrial average sank 3.5 percent Thursday and the leading Asian and European stock markets fell Friday by as much as 2.5 percent.
The dollar also gained against the euro and weighed on oil prices by making crude more expensive for investors with other currencies.
Signs of weakening industrial production in China this week have analysts predicting that Asian demand for commodities could be slowing.
"The main risk for the region remains the highly uncertain outlook for the global economy," Capital Economics said in a report. "Another global downturn on the scale of that seen in 2008-2009 would see the region's exports plunge."
Some analysts still expect crude demand to outstrip supply and send prices higher. Goldman Sachs reiterated its forecast Brent crude will average $130 next year.
"Global crude oil markets continue to be torn between heightened concerns over the global economic outlook and the continued resilience of crude oil fundamentals," Goldman said in a report. "It is only a matter of time before inventories and OPEC spare capacity become effectively exhausted, requiring higher oil prices to restrain demand."
Others said the psychological impact of the sell-off and the falling markets could push government officials and lawmakers in the U.S. and Europe to act more decisively on economic issues, which, in turn, could encourage investors.
"Markets are capable of turning around rather sharply if investors sense that the politicians are finally 'getting it' and making progress in working together," said senior commodity analyst Edward Meir of MF Global in New York.
In other Nymex trading for November contracts, heating oil fell 3.24 cents at $2.8255 per gallon and gasoline futures lost 0.83 cent to $2.5354 per gallon. Natural gas for October delivery added 3.3 cents to $3.738 per 1,000 cubic feet.
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