MORNING UPDATE: PriceWatch Alerts for KO and More... for 2012-05-13 |
| ----------------------------------------------------------------- MORNING UPDATE: PriceWatch Alerts for KO, SIRI, BTU, TEVA, and DRIV Dec 13 - 8:30 AM EDT - Before the open... PriceWatch Alerts for KO, SIRI, BTU, TEVA, and DRIV, Market Overview, Dynamic Market Opportunities, News Leaders and Laggards, FuturesWatch, Today's Economic Calendar, and the Quote Of The Day. QUOTE OF THE DAY -------------------------------------------------- ------------------- "If recent trends persist, GM could ultimately need to restructure its obligations (including its debt and contractual obligations), despite its currently substantial liquidity and management's statements that it has no intention of filing for bankruptcy." -- Robert Schulz, Credit Analyst, Standard and Poor's New PriceWatch Alerts for KO, SIRI, BTU, TEVA, and DRIV... PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS ----------- -- Coca-Cola Co. (NYSE: KO) Last Price 41.15 - MAY 40.00 CALL OPTION@ $2.70 -> 4.0 % Return assigned* -- Sirius Satellite Radio Inc. (Nasdaq: SIRI) Last Price 7.46 - JUN 7.00 CALL OPTION@ $1.45 -> 16.5 % Return assigned* -- Peabody Energy Corp. (NYSE: BTU) Last Price 84.25 - MAR 80.00 CALL OPTION@ $10.10 -> 7.9 % Return assigned* -- Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA) Last Price 43.81 - MAR 42.50 CALL OPTION@ $3.30 -> 4.9 % Return assigned* -- Digital River Inc. (Nasdaq: DRIV) Last Price 28.89 - MAR 25.00 CALL OPTION@ $5.50-> 6.9 % Return assigned* *For more details on covered calls and how you can use them to enhance your portfolio performance go to http://www.poweropt.com/cchelp.asp NEWS LEADERS AND LAGGARDS------------------------------------------ ------------------ So far today, CIT Group, Cendant, and Novartis lead the list of companies with the most news stories while BJ's Wholesale Club and Alcan are showing a spike in news. Altria, Microsoft, and Procter & Gamble have the highest srtIndex scores to top the list of companies with positive news while Best Buy and H&R Block lead the list of companies with negative news reports. Burlington Resources has popped up with a high positive news sraIndex score. MARKET OVERVIEW---------------------------------------------------- ----------------------- In overseas trading, it?s turning out to be a quiet day. Eight of the 15 markets that we track are showing gains, but the overall average return is just 0.003 percent. The FTSE 100 in London and the CAC 40 in Paris are both showing a gain of 0.3 percent, and the German DAX is unchanged so far on the day. The Nikkei managed a 0.3-percent gain, but the Hong Kong and Singapore markets slipped 0.3 percent, and in Sydney the loss came in at 0.5 percent. The January crude futures contract gained more than three percent on Monday after falling two percent during the previous session. This is still a far cry from the highs we have seen in recent months. The American Automobile Association reported that the national average price of a gallon of regular unleaded gasoline was 2.180 on Monday, up form 1.866 a year ago. There were gains across the board, with natural gas for January delivery up 3.7 percent, unleaded gasoline up 2.61 percent, and heating oil up 2.35 percent on the day. DYNAMIC MARKET OPPORTUNITIES--------------------------------------- ---------------- It?s interesting to compare the rhetoric from Saudi Arabia and Russia with regard to their oil supplies. While the Saudis go to great lengths to constantly assure the world that they will keep up the oil supply to fuel the world?s needs, the Russians take an entirely different approach. Lukoil CEO Vagit Alekperov told the German business daily Handelsblatt: ?We will ensure that Europe is no longer oversupplied with Russian oil.? Mr. Alekperov went on to point out that new pipelines to China will take Russian, Kazakh and Azerbaijani oil away from Europe and lead to more expensive oil. Russian crude costs Europeans US$7 less per barrel than Brent North Sea crude. The new outlets mean that this margin will shrink to about 50 or 70 cents. Lukoil produces more oil and gas than Kuwait and is the world?s sixth-largest oil company. Russian companies exported US$60.1 billion worth of oil in the first three quarters of this year, compared to US$59 billion in all of 2004. Russia is the only major oil producing country that is still decades ahead of peak production. Furthermore, this potential increase in proven reserves hasn?t been priced in. In fact, Russian oil companies are selling at a severe discount to their global competitors. This could be a good time to own a Russian oil stock. As for OPEC, the official word is that, for now, quotas will remain unchanged but the group is considering cutting output if demand falls. According to Saudi Arabia?s Oil Minister Ali Naimi: ?Today?s number for OECD?s (stocks) is at least 60 (million) to 70 million barrels over the average for the last five years, which means if we continue the way we are, that number will increase?and that is a lot of crude sloshing around, which by the second quarter will be a heavy depressant on prices,? he said. January crude prices rose to US$60.25 on Monday morning. FUTURESWATCH ------------------------------------------------------ ------------------------- The Equity futures are trading just a bit higher this morning as traders are focused on the announcement from the FOMC meeting due out at around 1:15 CST. A .25 basis point increase is widely expected but a changed in the policy statement is what traders will be watching for in order to force the markets to new highs. If the Fed leaves the statement unchanged, it should force some strong selling. Watch for a very quiet morning with some slight upside movement as long as the NASDAQ futures maintain the 171550 level. There will also be an announcement on business inventories and sales at around 9:00 CST that may help to move the markets just a bit. PUT/CALL ALERT ---------------------------------------------------- --------------------------- Equity option activity on the CBOE saw 521,916 put contracts traded on Monday compared to 822,289 call contracts. The resultant single-session put/call ratio climbed sharply to 0.635, while the 21-day moving average was unchanged at 0.585. TODAY'S ECONOMIC CALENDAR ----------------------------------------- ------------------- 7:45 a.m. Dec 10 ICSC Store Sales Index 8:30 a.m. Nov Retail & Food Sales 8:30 a.m. Nov Retail & Food Sales, ex-autos 8:55 a.m. Dec 10 Redbook Retail Sales Index 9:00 a.m. Federal Open Market Committee mtg begins; interest rate decision expected about 2:15 p.m. EST 10:00 a.m. Oct Business Inventories 5:00 p.m. Dec 11 ABC/Washington Post Consumer Confidence Index EARNINGS EXPECTED TODAY (w/current estimates) ------------------ ADC TeleComm. Inc. (ADCT) 4Q 0.18 Asta Funding Inc. (ASFI) 4Q 0.58 Best Buy Co. Inc. (BBY) 3Q 0.31 Engineered Support Systems Inc. (EASI) 4Q 0.56 Gladstone Capital Corp. (GLAD) 4Q 0.42 Martek Biosciences Corp. (MATK) 4Q 0.10 PLATO Learning Inc. (TUTR) 4Q 0.06 Sunterra Corp. (SNRR) 4Q 0.28 This Morning Update was prepared with data and information provided by: PowerOptionsPlus.com - The Best Way To Find, Compare, Analyze, and Make Money On Option Investments - Forbes Best of the Web Winner. InvestorsObserver.com -- Better Strategies for Making Money -> For Investors With a Sense of Humor. Only $1 for your first month plus seven free bonuses worth over $800, see: http://www.poweropt.com/io Quote.com QCharts- Real time quotes and streaming technical charts to keep you up with the market. Analyze, predict, and stay ahead. for a Free 30 day trial go to: http://www.investorsobserver.com/MUQuote2 WallStreetSecretsPlus.com ? For Investors Who Need To Know -> Only $1 for your first month plus free bonuses worth over $269, go to: http://gowssp.com/go/mu/ Seven Summits Investment Research is an independent investment research group focusing on the U.S. equities and options markets. Our unique set of analytical tools, screening techniques, rigorous research methods and committed staff provide solid information to help our clients make the best investment decisions possible. For more information go to www.SevenSummitsInvestmentResearch.com . CRD# 137114 247profits.com: You'll get exclusive financial commentary, access to a global network of experts and undiscovered stock alerts. Register NOW for the FREE 247profits e-Dispatch. Go to: http://www.247profits.com/enter.html Schaeffer's Investment Research - Market information that combines unique data with insightful commentary, enabling you to navigate in any market conditions and invest wisely http://www.poweropt.com/sirmmo All stocks and options shown are examples only. These are not recommendations to buy or sell any security and they do not represent in any way a positive or negative outlook for any security. 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