It’s Wednesday June 14, 2006, and we are trying to get over the hump of the buying and selling week however the worry nonetheless looms across the board. Metals have been dropping like a rock, Gold and Silver have dropped over 20% from their highs, and this is partially due to the decrease in demand from the jewellery business and the lower in demand from India.
India has been a giant purchaser of treasured metals across the board, this emerging market was a big catalyst in the metals craze. Now that along with the other slipping rising markets resembling Brazil, Russia, China, South Korea aka the “BRICK” countries, India has tighten their belt. So supply and demand has come into play. Those highflying metals stocks have been knocked down however we may see a slight rebound in the approaching weeks.
Corporations which can be based mostly in the “BRICK” countries and commerce right here within the United States, across the board have been evacuated from, the money circulate out of these companies have prompted them to slip almost on a daily basis. However it may be time to start to look at these companies again simply to get a handle on those firms that were guilty by association and dragged down.
The Nasdaq has fallen for the 8th straight day, right this moment might mark number 9 and that is something that hasn’t happened since 1984. Whereas the usual & Poor’s 500 closed at a seven month low yesterday. This is all on account of issues that the FOMC will increase interest charges, so hang in their because there are gems in this rubble that you simply may want to choose up, you just should be patient.
In the alternative vitality sector, you could have a company that will begin buying and selling immediately and they’re in the Ethanol game. VeraSun Power Corporation (NYSE: VSE) The company has Ethanol plants in each Iowa and South Dakota. They sell a branded gasoline, VE85, at service stations within the Midwest. Now this is a pure play within the Ethanol area, but this is considered one of three Ethanol companies that shall be taken public shortly. Though the preliminary budge has come from Capitol Hill, that’s not sufficient to drive the investors to the frontlines of these new points. So the timing may be improper and these new points simply might put a ton of pressure on different publicly traded Ethanol firms as soon as they hit the market, reminiscent of Pacific Ethanol (NASDAQ: PEIX).
Nevertheless it might have a ripple effect and trickle all the way down to different different energy companies that may be involved within the photo voltaic energy enviornment.
Tropical Storm Alberto turned down the burners before it hit Florida yesterday and didn’t pose the danger than most forecasters predicted. So the storm by no means made it to Hurricane status, and simply dumped rain on the areas close to Tallahassee, Florida.
Movers and Shakers
Some major movers in yesterdays trading session included Maverick Tube Corp (NYSE: MVK), the inventory soared to close up $sixteen.99 at $62.65 after they agreed to be acquired by Tenaris (NYSE: TS) for over $three.19 billion or $65 a share. Tenaris made this an all money deal, which made it even more attractive to the board of Maverick Tube.
Diodes, Inc (NASDAQ: DIOD) shot up to close up $4.94 at $38.39, this was primarily based on the semiconductor company saying that they have been growing their second quarter guidance, So that they anticipate progress of 10-12% as opposed to about three%, so in different phrases they’re searching for revenue in the neighborhood of roughly $82 million in comparison with first quarter revenue of $seventy three.6 million. Earlier this 12 months the stock traded up from $33 to hit $forty one but as soon as it broke that degree it tried for $forty two and then in the mid $forty three vary it hit a ceiling and fell sharply to the $32 range and that was on good earnings. So keep that in thoughts for those who leap into this one as that very same ceiling should exist.
Lone Star Technologies (NYSE: LSS) traded up $2.Ninety four to shut at $46.54, now there isn’t any information out and the inventory traded virtually triple the daily quantity, buying and selling near 2.8 million shares. Now I want to lay one thing out for you on this one, the last time that it traded at $forty seven.55 which was on March 10, 2006, the stock shot as much as $sixty two.99 by mid April but came tumbling down shortly afterwards. So this may be one to look at simply plan out your exit level before diving in.
Right here is one other stock that traded over triple their average volume, NS Group, Inc (NYSE: NSS) which traded up $1.21 to shut at $45.76 on over 1.Four million shares traded. Now the company produces seamless and welded tubular steel merchandise for the energy industry. Although the stock traded up in the $forty eight vary yesterday, I am looking at what it closed at, which is $forty five.76. The final time that it closed over $46.50, which was again in April, the stock shot up close to $fifty two, then slipped down a bit and then traded up to the $55 range and then it nosedived to the $45 range a number of weeks later. So there could also be one thing right here, you simply need to be in tune to the trading on the inventory, similar to Lone Star, just choose your entry and exit points earlier than hand and persist with it.
Other stocks that made nice strikes on Tuesday embrace Dean Foods (NYSE: DF) which traded up $1.35 to close at $36.05, Apple pc (NASDAQ AAPL) traded up $1.32 to close at $fifty eight.32, Intuit (NASDAQ: INTU) traded up $1.25 to shut at $52.Sixty nine, Wellcare Health Plans (NYSE: WCG) traded up $1.18 to shut at $forty nine.Forty eight, Hologic (NASDAQ: HOLX) traded up $1.42 to shut at $36.94 and Best Purchase (NYSE: BBY) shot up $2.66 to close at $fifty one.69.
Different stocks that made strikes on the upside underneath ten bucks embody MicroFinancial (AMEX: MFI), an equipment leasing company that at one point traded in the $sixteen vary but that was a very long time ago, the stock traded up 19 cents to shut at $three.Fifty nine on little to no volume. There is actually no curiosity in the stock by the street, I just talked about it as a result of someone truly purchased the inventory.
Peru Copper (AMEX: CUP) shot up 20 cents to close at $four.30 on Tuesday, now this inventory has traded wildly with hypothesis of a takeover by Southern Copper (NYSE: PCU), now as we mentioned the corporate introduced that Southern Copper isn’t the one fish in the sea. With metals hitting a bottom in this range you can count on the curiosity in Peru Copper to spring up once more as any suitors which are on the market are sitting on the sidelines ready for the best second. As an investor you need to buy on rumor and promote on news, not the other approach round. So anticipate Peru Copper to realize some interest, commerce a bit of increased in the coming days and weeks, and also you may want to have a look at other gold, silver and copper corporations that fell from grace recently as the promote off was overdone.
Again in March NPS Pharmaceuticals (NASDAQ: NPSP) traded in the $14 range but since then it has fallen to the $4.95 vary the place it closed on Tuesday, up 15 cents. This tumble was because of federal regulators proposing a brand new clinical trial for their PREOS drug. Now regardless of their improved earnings and revenue being proven the road had no mercy on this one. At this level their damaging EPS may be very near their inventory value. So on the heels of that debacle the company determined to restructure, eliminating half of its workers, closing facilities and scrapping a deal that they’d with Allergan to advertise its chronic dry eye drug Restasis. The inventory is at its fifty two week low, which can also be their all time low, just about, and the damage is done, so you might even see an upward swing within the inventory but not in a single day. I actually don’t see it buying and selling beneath $4 so the draw back is proscribed in comparison with their upside potential. Do your homework on this one as it may be one thing to take a look at.
Other stocks that moved greater yesterday beneath ten bucks included Waster Providers (NASDAQ: WSII) which traded up 12 cents to shut at $2.92, McData Corp (NASDAQ: MCDTA) traded up 10 cents to close at $4.03, AVI Biopharma (NASDAQ: AVII) traded up 9 cents to close at $three.39 on over 1.2 million shares traded and Bookham (NASDAQ: BKHM) which traded up 21 cents to shut at $three.18.
Other stocks that traded down yesterday included Bear Stearns (NYSE: BSC) which traded down $eight.30 to close at $123.43, Goldman Sachs (NYSE: GS) which traded down $5.75 to close at $139.25, UBS AG (NYSE: UBS) which traded down $4.35 to close at $98.76 and Blackrock (NYSE: BLK) which traded down $4.Eighty to close at $123.Fifty nine. Now they’re a part of the financial sector that got hammered as of late, however its oversold. Buyers need to begin wanting at the brokerage stocks once more as Investment banking is changing in so many ways and buying and selling revenue will grow in 2006. We simply want to remain in tune to the industry, however these stocks ought to have some kind of bounce as we speak and longer term ought to do properly.
Hansen Pure (NASDAQ: HANS) traded down $6.06 to shut at $149.Ninety five they’re going to be splitting shortly.
Baidu.com (NASDAQ: BIDU) traded down $5.Ninety nine to shut at $78.20 , this promote off has to do with the drop in rising markets. This seems to be oversold but if it breaks the $77.Sixty six mark it could fall into the mid $60 range. So simply be on prime of it.
Different stocks that traded down embody Rio Tinto (NYSE: RTP) which traded down $four.77 to shut at $185.25, Arcadis (NASDAQ: ARCAF) traded down $four.27 to close at $39.35 and Toyota Motor (NYSE: TM) which traded down $4.20 to shut at $95.51.
Now some stocks underneath ten bucks that obtained the royal smack down yesterday include Datalink (NASDAQ: DTLK) which traded down $1.05 to close at $4.96, Gold Reserve Inc (AMEX: GRZ) traded down 74 cents to close at$3.96, Fieldpoint Petroleum (AMEX: FPP) traded down 60 cents to shut at $4.Fifty one, Bema Gold (AMEX: BGO) traded down 50 cents to close at $four.10, Miramar Mining (AMEX: MNG) traded down 43 cents to shut at $three.Sixteen and Transmeridian Exploration (AMEX: TMY) which traded down 40 cents to shut at $four.Forty five.
Recent Analyst upgrades include Dean Foods (NYSE: DF) which was upgraded to an Overwieght from a Impartial Weight by Prudential Equity Group, Omega Financial Corp (NASDAQ: OMEF) was upgraded to a Impartial from a Promote by Janney Montgomery, Ohio Casualty (NASDAQ: OCAS) was upgraded to a Buy from a Hold by Deustch Financial institution Securities and Kronos Inc (NASDAQ: KRNO) was upgraded to a Buy from a Impartial by Sidoti & Co.
Latest Analyst downgrades embody Jabil Circuit (NYSE: JBL) which was downgraded to a Hold from a Purchase by Citigroup, Piedmont Pure Gasoline (NYSE: PNY) was downgraded to a Impartial from a Purchase by Janney Montgomery, Monster Worldwide (NASDAQ: MNST) was downgraded to a Market Carry out from a powerful Purchase by Janney Montgomery and Pacific Energy Partners (NYSE: PPX) was downgraded to a Hold from a Purchase by AG Edwards.
Latest analyst coverage initiations include Global Payments (NYSE: GPN) which was initiated with a Purchase score by Janney Montgomery, Smith Micro Software (NASDAQ: SMSI) was initiated with a Buy score and a $24 price target by Lazard Capital Markets and Arch Chemicals (NYSE: ARJ) which was initiated with a Purchase rating by Sidoti & Co.
We can’t stress enough that investors have to do their due diligence, call the companies, get the knowledge, consult with your funding advisor and in the event you wouldn’t have one consider getting one. Put the identical time into investigating these firms as you do while you go to buy a brand new tv, it is solely for your protection. In the case of thinly traded securities stagger your orders or put a restrict order in to avoid a run up.
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