ABB Acquires Software Maker Ventyx To Strengthen Its Position InEnergy Management Industry

Swiss engineering company ABB Ltd. (ABB: 18.10 0.00 0.00%) Wednesday announced it will buy software maker Ventyx for over $1 billion to strengthen its position among energy management competitors by offering smart grid electricity distribution.

ABB will integrate Ventyx into its power-systems division, allowing it to provide modern smart grid software to grid operators who want to run a more efficient distribution system. The deal represents electrical engineering companies' need to prepare energy management networks to handle an increasing supply of renewable sources, like wind and solar.

"The big advantage for energy companies, utilities and industrial customers is that they will now have a single supplier of enterprise-wide information technology platforms and power automation systems," said ABB Chief Executive Officer Joe Hogan. "The advantage for our shareholders is a cash-generating acquisition in an exciting growth market, with a strong management team, a highly complementary offering and geographic scope, and an attractive return on capital employed."

ABB has been hoarding cash, boasting a $7.1 billion pile at first-quarter's end. The deal is the company's first billion-dollar buy in over 10 years and will strengthen its North American presence.

Atlanta-based Ventyx is owned by U.S. private equity firm Vista Equity Partners and has a broad U.S. customer base. Ventyx employs 900 people in over 40 countries and hit about $250 million in 2009 sales.

Ventyx is expected to grow 5%-9% in 2010 and more than 12% in 2011, according to Hogan, making it a highly attractive acquisition candidate. Its growth pace matches ABB's, which is aiming for a 9%-12% sales increase by 2012.

"The company should fit well with ABB's power systems offering and appears very complementary. Ventyx addresses some key growth areas in network management, smart grids, renewables, etc," Kepler Capital Markets analyst Roger Steiner told Reuters.

The acquisition triples the energy management software market available to ABB.

"The deal makes much sense as ABB will improve its footprint in a very attractive growth market," Richard Frei, analyst at Zuercher Kantonalbank, told The Wall Street Journal.

Smart Grid Software a Must-Have

Acquiring smart grid software allows electrical engineering companies to supply their customers with necessary equipment and management technology, creating a one-stop shop.

Smart grid software offers two significant benefits to modernizing electricity networks: It gives distribution grids the ability to handle multi-directional power flows, and it monitors key statistics on electricity usage.

Electricity is traditionally transmitted from the power station to the customer, but with the addition of renewable energy sources power will enter the network from more than one location. Smart grids allow renewables to be integrated into the electricity network.

Smart grids also keep track of electricity demand, pricing, and availability in real-time, which will offer energy companies information on how to improve grid efficiency.

"The richness of the information you get starts to explode" once it's monitored, Microsoft Corp. (MSFT: 29.85 0.00 0.00%) managing director Jon Arnold told The Journal.

The global market for smart grid software could more than triple over the next 5 years to $16 billion in annual sales, according to Lux Research.

Analysts see the deal triggering more merger & acquisition activity in the energy sector. Global engineering companies like General Electric Co. (GE: 18.10 0.00 0.00%) and German-based Siemens AG (SI: 90.63 0.00 0.00%) have already been attracted to the smart grid market.

Siemens announced earlier this year a goal to double its current growth rate in the smart grid market and snag $8.48 billion (6 billion euros) in business over the next 5 years.

U.S. energy companies got a boost from President Barack Obama in October 2009 when he offered a $3.4 billion stimulus package for electricity grid projects. Duke Energy Corp. (DUK: 16.76 0.00 0.00%) received a $200 million cut to modernize its grid technology.

 

Stock Market Movers: American International Group, TenetHealthcare, SPDR S&P Homebuilders ETF, Polo Ralph Lauren, Gap, MeritageHome, InterMune, iShares MSCI Emerging Markets Index ETF, iShares MSCIBrazil Index ETF

SPDR S&P Homebuilders ETF ( 18.36 0.00 0.00%) - Shares of the XHB, an exchange-traded fund designed to track the performance of the S&P Homebuilders Select Industry Index, are trading 3% lower this afternoon to stand at $18.29 as of 2:50 pm (ET). Pessimistic positioning by one options strategist suggests shares of the underlying fund could continue to decline ahead of June expiration. The investor initiated a three-legged options combination play, essentially selling call options to finance the purchase of a debit put spread on the fund. The pessimistic player established the trade by purchasing 12,000 puts at the June $18 strike for a premium of $0.79 apiece, spread against the purchase of the same number of puts at the lower June $17 strike for $0.44 each. The third leg of the transaction involved the sale of 12,000 calls at the June $20 strike for a premium of $0.36 a-pop. The investor responsible for the bearish play pockets a net credit of one penny per contract, and keeps it as long as shares trade below $20.00 through expiration day. Maximum potential profits available to the trader - including the net credit received - amount to $1.01 per contract and pad the investor's wallet if shares of the underlying fund decline another 7.05% from the current price of $18.29 to breach the $17.00-level by June expiration.

Meritage Home Corp. ( 22.33 0.00 0.00%) - The homebuilding company, like the homebuilders ETF, enticed bearish options investors late in the trading session. Meritage Home's shares are down sharply by 5.35% to $22.11 as of 3:00 pm (ET). But, Meritage is not the only one suffering today as shares of rival firms Pulte Group Inc., Lennar Corp and D.R. Horton, Inc., also declined significantly along with the price per share of the SPDR S&P Homebuilders ETF. Pessimistic options players expecting MTH's shares to continue lower in the next several months purchased at least 4,300 puts outright at the September $20 strike for a premium of $1.60 per contract. The confirmed purchase of the these contracts represents just a portion of the more than 10,000 puts exchanged at that strike today where previously open interest stood at just 377 lots. Put-buyers make money if Meritage's shares plummet 16.75% below the current price of $22.11 to breach the effective breakeven point to the downside at $18.40 by September expiration.

American International Group, Inc. ( 37.70 0.00 0.00%) - Bearish investors established pessimistic positions using put options on AIG this afternoon with shares of the underlying stock trading 1.90% lower to $37.53 with 45 minutes to go before the closing bell tolls. One or more investors utilized the ratio put spread strategy to brace for continued share price erosion through May expiration. It looks like traders purchased approximately 4,000 puts at the May $37 strike for an average premium of $2.48 apiece, and sold about 8,000 lots at the lower May $30 strike for an average premium of $0.39 each. The average net cost incurred by ratio-spreaders in this case amounts to $1.70 per contract. The investor or investors responsible for the put play make money if AIG's shares trade beneath the average breakeven price of $35.30. Maximum potential profits of $5.30 per contract are available should shares of the underlying stock collapse 20% lower to $30.00 by expiration day.

Tenet Healthcare Corp. ( 5.73 0.00 0.00%) - A long strangle strategist populating Tenet Healthcare Corp. this morning is positioning for shares of the health care services provider to sink or swim by November expiration. Tenet's shares fell sharply during Tuesday's trading session by as much as 8.2% to an intraday low of $5.83 after the Dallas-based firm said it expects to earn $0.14 to $0.19 per share in 2010, which failed to meet average analyst estimates of $0.22 a share. The hospital operator's shares are off 0.85% during the current session to stand at $5.82 as of 12:10 pm (ET). The options player established the long strangle by purchasing 10,000 puts at the November $5.0 strike for an average premium of $0.47 apiece, and by picking up 10,000 calls at the higher November $6.0 strike for $0.82 each. The net cost of the transaction amounts to $1.29 per contract. The investor long the strangle makes money if shares of the underlying stock shift dramatically in either direction away from the strike prices described. Profits start to accumulate if Tenet's shares rally above the upper breakeven price of $7.29, or if shares slip beneath the lower breakeven point at $3.71, ahead of November expiration. Generally speaking, the trader is looking for increased volatility in the price of Tenet's shares and stands to benefit from higher options implied volatility on the stock, as well. The worst case scenario for this individual is that shares stagnate and fail to break out of the range specified as this would result in total loss of the premium paid to purchase the options transaction.

Polo Ralph Lauren Corp. ( 89.41 0.00 0.00%) - Shares of fashion giant, Polo Ralph Lauren Corp., are trading slightly higher by 0.40% to $91.00 as of 12:25 pm (ET). RL popped onto our 'hot by options volume' market scanner in the first half of the trading day after one options trader initiated a ratio put spread on the stock. Perhaps the put player is seeking downside protection on a long underlying stock position ahead of RL's fourth-quarter earnings report slated for release ahead of the opening bell on Wednesday, May 19, 2010. Otherwise, the fresh activity could be the work of an investor enacting an outright bearish play on RL in anticipation of an earnings disappointment. The ratio put spreader purchased 2,000 lots at the June $90 strike for a premium of $4.45 each, and sold 4,000 puts at the lower June $85 strike for a premium of $2.45 apiece. The transaction results in a net credit of $0.45 per contract, which the responsible party keeps if shares of the underlying stock trade above $90.00 through expiration day in June. Maximum potential profits of $5.45 per contract - including the credit pocketed on the spread - are available to the trader should Polo Ralph Lauren's shares decline 6.6% from the current price of $91.00 to settle at $85.00 by expiration day.

The Gap, Inc. ( 24.68 0.00 0.00%) - One options investor sold a strangle on The Gap, Inc. today, indicating shares of the specialty retailer of clothing and accessories are likely to remain range-bound through May expiration. GPS shares are trading 0.60% higher to $24.86 as of 12:35 pm (ET). The options strategist sold approximately 6,000 calls at the May $26 strike for an average premium of $0.60 apiece in combination with the sale of roughly the same number of puts at the lower May $24 strike for an average premium of $0.67 each. Average gross premium pocketed by the strangle-seller amounts to $1.27 per contract. The investor keeps the full amount of premium received on the transaction as long as shares of the underlying stock trade within the range of $24.00 to $26.00 through May expiration day. The short position assumed in both call and put options expose the options player to losses should shares rally above the upper breakeven price of $27.27, or if shares slip beneath the lower breakeven point at $22.73, by expiration.

InterMune, Inc. ( 11.38 0.00 0.00%) - Shares of the biotechnology company plummeted 76.87% to $10.51 today after U.S. regulators rejected the firm's application for a $1 billion/year lung treatment. News of the rejection inspired a flurry of analyst downgrades on InterMune. For example, analysts at JPMorgan cut their rating on ITMN to 'neutral' from 'overweight', while analysts at Wedbush downgraded the company to 'neutral' from 'outperform'. Options investors were quick to react to the news right out of the gate this morning and generated heavy trading traffic in both call and put options in the near-term May contract. Contrarian players signaled they believe the price of the stock has collapsed to a bottom - at least in the near-term - and thus purchased 1,400 in-the-money calls at the May $10 strike for an average premium of $1.27 apiece. Call-coveters make money if shares of the biotechnology firm rebound above the average breakeven price of $11.27 ahead of expiration day. Similarly contrarian sentiment appeared at the May $7.5 strike where investors shed 1,300 puts to pocket an average premium of $0.12 per contract. Put-sellers keep the premium received today as long as InterMune's shares trade above $7.50 through May expiration. All told, options players exchanged 77,860 contracts on ITMN as of 12:50 pm (ET).

iShares MSCI Emerging Markets Index ETF ( 39.61 0.00 0.00%) - One big options player was ready and waiting for shares of the EEM, an exchange-traded fund which corresponds to the MSCI Emerging Markets Index designed to measure equity market performance in the global emerging markets, to fall sharply ahead of May expiration. The investor booked profits on a large, previously established put position this morning and reaffirmed bearish sentiment on the fund by initiating a fresh put stance twice the size of the original. Shares of the underlying fund are currently down 1.25% to $39.84 as of 11:20 am (ET). It looks like the trader purchased 50,000 puts at the May $43 strike for a premium of $1.27 apiece back on April 14, 2010, when shares of the EEM were trading at a volume-weighted average price of $43.16 each. The fund's share price is down 7.70% since the investor established a long put stance at the May $43 strike price. Thus, the trader was able to sell all 50,000 now deep-in-the-money contracts today for a premium of $3.37 apiece, banking net profits of $2.10 per contract on the transaction. The investor, however, apparently does not expect shares to rebound ahead of May expiration because he doubled the size of the original bearish stance on the fund by purchasing 100,000 puts at the May $39 strike today for an average premium of $0.845 per contract. The individual responsible for the put activity stands ready to accrue profits on the new position should shares of the underlying fund decline another 4.2% from the current price to breach the average breakeven point at $38.155 by May expiration.

iShares MSCI Brazil Index ETF ( 67.20 0.00 0.00%) - A transaction strikingly similar to the trade described above on the emerging markets fund (EEM) appeared on the iShares MSCI Brazil Index ETF this morning. One properly positioned bearish options player banked profits on a large previously established long put position and subsequently purchased new chunk of puts comprised of twice as many contracts. Shares of the EWZ, an exchange-traded fund designed to correspond to the price and yield performance of publicly traded securities in the aggregate in the Brazilian market as measured by the MSCI Brazil Index, are down 1% to $67.29 as of 11:10 am (ET). The savvy bearish options trader originally purchased 20,000 puts at the May $75 strike for an average premium of $2.67 per contract back on April 5, 2010, when shares of the underlying fund were trading at a volume-weighted average price of $75.56 each. Shares of the fund have since slipped 10.95% down to today's current value of $67.29. Today, the investor sold the now deep-in-the-money put options for a richer premium of $7.76 apiece to pocket net profits of $5.09 per contract. Next, the pessimistic individual augmented his position by purchasing 40,000 puts - that's twice the size of the original bearish stance - at the lower May $66 strike for a premium of $1.78 per contract. Profits on the new position accumulate should shares of the underlying fund fall another 4.6% from the current price to breach the effective breakeven point to the downside at $64.22 by May expiration day.

RIG Tops, Battles Horizon Disaster

Transocean, Inc. (RIG: 72.76 0.00 0.00%) — the world's largest offshore driller — reported robust first quarter 2010 results, helped by contributions from newbuild operations. Earnings per share, excluding certain charges, came in at $2.22, well above the Zacks Consensus Estimate of $2.09.

Earnings Beat Overshadowed

However, Transocean's earnings beat was overshadowed by the announcement that it will lose more than $500 million in revenue, and its finances will be hampered by hefty fees from a growing pile of lawsuits, as the company gets entangled in the huge oil spill accident in the Gulf of Mexico, the Deepwater Horizon.

In its quarterly filing with the U.S. Securities and Exchange Commission, the Geneva-based company warned investors regarding the risks associated with the Horizon rig disaster, including legal costs, government investigations and lost revenue.

As a reminder, on Apr 20, Transocean's ultra-deepwater Horizon drilling platform, contracted to British major BP Plc (BP: 50.99 0.00 0.00%), sank following a fire and explosion while operating in the U.S. Gulf of Mexico off Louisiana 's coast. The incident killed 11 workers and caused one of the worst oil spills in U.S. history.

Year-Over-Year Comparisons Down

Comparisons (for the reported quarter) with the year-earlier period were quite ugly, as utilization rates continue to slide. Transocean's adjusted earnings per share slumped approximately 40.8% (from $3.75 to $2.22).

Revenue

Total quarterly revenues of $2.6 billion missed the Zacks Consensus Estimate by 2.2%. It was down 16.6% year-over-year and 4.8% sequentially, mainly attributable to reduction in contract drilling sales (due to stacking of rigs) and increased rig time in shipyard/mobilizations, partially offset by contributions from newly constructed ultra-deepwater rigs.

Transocean's high-spec floaters contributed approximately 56.4% to total revenue, while mid-water floaters and jack-up rigs accounted for 20.1% and 17.1% of the total, respectively. The remaining revenue came from other rig activities, integrated services, and others.

Operating Statistics

During the quarter, the company's operating income totaled $926 million, down 7.7% sequentially. Operating and maintenance expenses were $1.2 billion, 7.7% lower than the fourth quarter of 2009, primarily reflecting reduction in maintenance costs and cost benefits resulting from the stacking of rigs, somewhat offset by the favorable impact of litigation settlement expenses in the prior quarter, increased shipyard project costs, and commencement of newbuild operations.

Dayrates & Utilization

Average dayrates increased marginally (by 0.9%) from the Dec quarter to $298,300, as high-spec floater dayrates gained 2.7% and mid-water floater dayrates were up 2.0%.

Compared to the first quarter of 2009, dayrates rose 16.3% (from $256,500 to $298,300). All types of rigs apart from high-spec jackups and standard jackups experienced increased dayrates.  High-spec floater dayrates were up 11.0%, while mid-water floaters increased 5.4%.

Overall fleet utilization was 66% during the quarter, compared to 69% in the prior quarter and 91% in the year-ago quarter.

Backlog

As of Mar 31, 2010, Transocean's contracted backlog was $28.9 billion, down from $31.2 billion at the end of the preceding quarter. The decrease is a result of depressed demand for the jackups, mid-water and moored deepwater units on the back of uncertain commodity prices.

As per more recent figures of Apr 13, 2010, the backlog further fell to $28.6 billion, reflecting the $590 million lost backlog related to the drilling contract under which Transocean's ultra-deepwater floater 'Horizon' was operating.

Capital Expenditure & Balance Sheet

Capital expenditures during the quarter totaled $379 million versus $708 million in the previous quarter, with the change primarily related to lower costs associated with the construction of ultra-deepwater floaters. As of Mar 31, 2010, Transocean had cash in hand of $1.6 billion and total debt of approximately $11.4 billion (representing debt-to-capitalization ratio at approximately 35.0%.

2010 Guidance

For 2010, Transocean is guiding towards capital expenditures of approximately $1.4 billion, of which $855 million will go towards the construction of newbuild rigs. The remaining $545 million has been allocated to contractually required upgrades and sustaining capital expenses.

ocks Over-discount Economic Recovery

The graph below from Citi economist Steven Wieting (courtesy of Clusterstock – Business Insider) conveys a message I have been propagating for a while, i.e. that stocks have moved up too quickly relative to the pace of the economic recovery.

Being a forward-looking mechanism it is common for the S&P 500 Index (red line) to rebound ahead of industrial production (blue line), only to then stall or correct as the economy plays "catch up". Whichever way I look at the fundamentals, stocks on this occasion have undoubtedly priced in more than what economic growth, and corporate earnings, can deliver in the foreseeable future.

In short: The gap between the red and blue lines on the right-hand side of the chart has become too stretched and and stocks therefore require a much-needed consolidation/pullback as we are now witnessing.

---

News Corp Beats, Outlook Disappoints

 

News Corporation (NWSA: 14.40 -1.00 -6.49%) recently posted better-than-expected third-quarter 2010 results on the heels of the blockbuster film Avatar, growth across other major operations, improved advertising environment and significant cost-cutting initiatives.

The improvement in advertising trends was witnessed across telecom, automobile, real estate and retail sectors. The quarterly earnings of 29 cents a share outdid the Zacks Consensus Estimate of 22 cents, and rose almost twofold from 15 cents delivered in the year-ago quarter.

On a reported basis, the quarterly earnings came in at 32 cents a share, significantly down by 69.2% from $1.04 posted in the prior-year quarter.

The current quarter earnings include an after-tax gain of $79 million related to the partial sale of a stake in British broadcaster ITV. The prior-year quarter earnings include a gain of $1.2 billion from the partial sale of the company's ownership stake in NDS Group, as well as a $1.2 billion non-cash tax benefit.

News Corporation delivered double-digit growth in the top-line, reflecting recovery in the advertising market. Total revenue rose 19.2% year-on-year to $8,785 million driven by the strength in all major reporting segments – Filmed Entertainment (up 64.5%), Television (up 1.7%), Cable Network Programming (up 16%), Direct Broadcast Satellite Television (up 3.2%), Integrated Marketing Services (up 6%), Newspapers and Information Services (up 20.6%), and Book Publishing (up 13.6%). The Other segment revenue fell 30.6%.

Total operating income soared 54.7% to $1,253 million. Consequently, News Corporation raised its fiscal year 2010 outlook, and now expects operating income to increase in the high 20% range up from low 20% range previously forecasted.

However, the diversified media conglomerate was quick to indicate that its fourth-quarter results would be weak due to weak results from Filmed Entertainment segment on account of the timing of the release of films. News Corporation also hinted at weak results in Fox Broadcasting Company due to higher programming costs and lower network revenue. The news sent the stock down 65 cents or 4.2% to $14.75 in after-market trading on Tuesday.

Filmed Entertainment posted an operating income of $497 million up 76.2% from the prior-year quarter driven by the worldwide theatrical success of Avatar, Ice Age: Dawn of the Dinosaurs, X-Men Origins: Wolverine and Night at the Museum: Battle of the Smithsonian.

The Television segment's operating income rose more than fourfold to $40 million, reflecting a rise in contributions from the Fox Television Stations, driven by favorable advertising trends mainly in the telecom and automobile sectors, improved performance at MyNetworkTV, and cost-containment efforts, partially offset by lower contributions from FOX Broadcasting Company.

Operating income at Cable Network Programming jumped 38% to $588 million due to a rise in contributions from FOX News Channel, the Fox International Channels, STAR, and the Regional Sports Networks.

Newspapers and Information Services segment reported an operating income of $131 million compared to $29 million posted in the prior-year quarter. Higher advertising revenue at The Wall Street Journal and the U.K. newspaper group, and fall in operating expenses were the major drivers.

Book Publishing segment posted an operating income of $4 million, compared to an operating loss of $8 million in the prior-year quarter.

Direct Broadcast Satellite Television or SKY Italia segment's operating income tumbled 44.4% to $35 million due to the loss of subscribers, whereas operating income at Integrated Marketing Services rose 11.3% to $108 million.

News Corporation ended the quarter with cash and cash equivalents of $8,183 million, total borrowings of $13,506 million, and shareholders' equity of $25,209 million.

Mutual Funds: Top 5 Technology Funds

Technology has increasingly become an indispensible part of our daily lives and the future prospects of this sector only seem brighter. However, the boom of tech funds in the late nineties and their subsequent downfall during the decline that followed has invoked a certain degree of skepticism even among those bullish on this category. But for investors seeking aggressive growth over the long term, investing in funds that focus on technology and innovation could be a prudent option in times to come.

Below we will share with you 5 top rated technology funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all technology funds, then click here.

Fidelity Select Technology (FSPTX) invests the majority of its assets in firms whose principal operations include offering or developing products and services that benefit from technological advances. It is non-diversified and may purchase foreign securities. The fund returned 84.49% in the last one year period.

The fund has a minimum initial investment of $2,500 and an expense ratio of 0.89% compared to a category average of 1.81%.

RS Technology A (RSIFX) seeks capital growth over the long term. It invests at least 80% of its assets in equity securities of technology companies. It concentrates on purchasing securities of small and mid-cap companies. The fund invests heavily in domestic companies but may also purchase foreign securities. The fund has a three year annualized return of 4.14%.

The fund manager is Allison Thacker and she has managed this technology fund since 2003.

ProFunds Technology UltraSector (TEPIX) seeks investment results which are 150% of the daily performance of the Dow Jones U.S. Technology Sector Index. It invests the majority of its assets in equity securities included in the index or those with similar characteristics. It may also purchase debt securities or money market instruments. The fund returned 94.59% in the last one year period.

The technology fund has an expense ratio of 1.64% compared to a category average of 1.81%.

Franklin DynaTech A (FKDNX) invests a large share of its assets in companies which have the potential to benefit from technological advancements and innovation. Not more than 25% of its assets are utilized top purchase foreign securities which are not publicly traded in the domestic market. The fund returned 53.79% in the last year and has a five year annualized return of 5.64%.

As of March 2010, this technology fund held 78 issues, with 6.25% of its total assets invested in Apple Inc.

Wasatch Global Science & Technology (WAGTX) invests the majority of its assets in domestic and foreign companies in the science and technology domain. It invests in at least three developed countries including the U.S. The fund may also purchase a substantial amount of emerging market securities. The fund has a five year annualized return of 5.85%.

The fund manager is Samuel S. Stewart Jr. and he has managed this technology fund since 2008.

To view the Zacks Rank and past performance of all technology funds, then click here.

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

Bayer: Strong Quarter, Raises Outlook

 

Bayer's (BAYRY: 0.00 N/A N/A) core earnings per share (EPS) during the first quarter of fiscal 2010 came in at �.20 (approx $1.64) compared to �.91 (approx. $1.26) in the year-ago period. The company recorded a 5.3% year-over-year growth in revenues to �,316 million.

The three major segments: Healthcare, MaterialScience and CropScience accounted for 48%, 28% and 24%, respectively of total revenues during the reported quarter. While revenues from Healthcare and MaterialScience segment improved by 0.7% and 35.5%, respectively, revenues from CropScience dropped by 7.9%.

The Healthcare segment recorded revenues of �,869 million compared to �,843 million in the corresponding period last year. The marginal improvement in this segment is the result of a 6.5% growth in Consumer Health, partially offset by a 2.2% decline in revenues from Pharmaceuticals.

Products with robust growth during the quarter are Mirena (up 14.4% to �43 million), Nexavar (up 13.1% to �55 million) whereas the Yaz franchise (�287 million) and Betaferon (�283 million) came down by 10% and 6%, respectively.

Bayer's primary market, Europe – accounting for 39% of its Healthcare revenues during the quarter came down by 3.1% compared to the first quarter of 2009. The other markets of Asia-Pacific, North America and Latin America/Africa/Middle East grew 5%, 2.7% and 2.4%, respectively.

Revenues from CropScience declined 7.9% to �,952 million during the quarter on lower volume and prices. Unfavorable weather conditions in many regions and lower prices for major agricultural commodities have brought down revenues of this segment.

However, we note that the business has recovered at the end of the quarter. Although revenues from Crop Protection (division of CropScience) declined 14.9% to �,476 million, sales of Environmental Science/BioScience increased 23.3% to �76 million. Material Science began 2010 on a strong note. This segment recorded revenues of �,216 million, up 35.5% from the year-ago period due to an improvement in volume and prices.

In 2009, Bayer reduced its net debt to �.7 billion from �4.2 billion at the end of 2008. The debt level at the end of the first quarter remained unchanged at �.7 billion.

Bayer raised its outlook for 2010. The company expects global recovery to continue, which has inspired it to target more than 5% currency and portfolio adjusted sales growth with EBITDA before special items exceeding � billion (previous guidance: towards � billion). Additionally, core EPS is expected to improve by more than 15% compared to the earlier projection of 10% growth.

Stocks Nearly Unchanged After Volatile Overnight Action

 

U.S. stock markets are called slightly lower this morning after a choppy overnight trade. Today could be another day of risk reduction as traders are still being influenced by a multitude of factors including Euro Zone sovereign debt issues, new financial market restrictions, the threat of international terrorism and possible criminal action against Goldman Sachs (GS: 149.3914 -0.0586 -0.04%). The range may be limited, however, as traders may begin to cut back on trading ahead of this Friday's U.S. Non-Farm Payrolls Report.

Tuesday's action in the June E-mini S&P 500 reaffirmed the main down trend while also confirming the weekly closing price reversal top. This pattern usually suggests the start of a 2 to 3 week correction. Downside momentum could take this market back to 1134.00 over the near-term. Short-term oversold conditions could trigger a short-covering rally before the downtrend resumes.

June Treasury Bonds are up overnight after soaring in a flight to safety rally on Tuesday. Money could leave the stock market once again if traders continue to dump higher risk equities. Additional pressure may come from funds leaving gold and crude oil. Traders are seeking protection in the lower risk, lower yielding T-Bond as sentiment has shifted out of higher risk assets. Traders are also taking protection against the possibility that sovereign debt issues in the Euro Zone could surge to global proportions.

June Gold is trading lower overnight following Tuesday's closing price reversal top. Earlier in the week, speculators were buying gold as they hedged against a possible collapse in the Euro. Traders took profits as the market neared $1200 and the U.S. Dollar soared. Technically, the closing price reversal top indicates more downside action is likely. This type of trading pattern suggests that a break to $1158.60 is likely over the near-term. A break in U.S. equities could help accelerate gold to the downside as traders will be forced to sell the metal to meet margin calls.

A drop in demand for higher risk assets and the possibility that a slowdown in the Euro Zone economy will lead to lower demand for energy is helping to drive June Crude Oil lower. The 4.78% drop on Tuesday is a sign that this break was triggered by more than profit-taking. The bigger picture suggests that a correction to 79.17 to 77.18 is likely over the near-term. Losses could be limited by the lingering problems in the Gulf with the oil spill.

The Dollar Index continued to rally overnight, touching its highest level since May 2009. After spending April trading on both sides of a monthly 50% level, the Index is now in a position to test the .618 price. Based on the major monthly range of 89.62 to 74.17, traders should look for the market to test 83.72 over the near-term. This market should continue to remain strong as long at 81.90 holds as support.

The June British Pound is trading better overnight as investors increased bets on a victory for the Conservative Party. No matter how the election pans out, traders are counting on the new government to mount a steady attack on the country's huge budget deficit. This may mean the implementation of new taxes and austere cost slashing. U.K. voters realize that either a Conservative Party or Labour Party victory will mean aggressive action will have to be taken in order to avoid the same fate as the Euro Zone economies. Last week, both the S&P and Moody's credit rating agencies said that a debt rating cut is likely depending on how the new government chooses to attack the country's fiscal problems.

Technically, the British Pound is trading inside of a retracement zone at 1.5163 to 1.5078. Additional support is being provided by an uptrending Gann angle at 1.5087. The main trend is down, but this market appears ripe for a short-covering rally. A move above 1.5163 will indicate strength. Look for a possible acceleration to the downside if 1.5078 fails to hold as support.

Weaker gold, crude and equities are helping to trigger further weakness in the June Canadian Dollar. After building a distributive top in April, this pair finally crossed a swing bottom at .9789 to turn the main trend to down on the daily chart. Downside momentum indicates that the March 26th bottom at .9705 is the next downside objective followed by a 50% level at .9649.

The weakening Canadian Dollar is most likely pleasing to the Bank of Canada which hinted last week that a strong currency is likely to have an impact on inflation and monetary policy. This led this analyst to believe that the BoC was intervening to weaken the Loonie. Look for the Canadian Dollar to continue to weaken unless there is renewed demand for higher risk assets.

The June Euro continued to trade lower overnight, reaching its lowest level since February 2009. Although a bailout agreement was reached by the Greek government, the European Central Bank and the International Monetary Fund over the week-end, bearish traders have shifted their focus to the growing fiscal problems in Spain and Portugal.

Hedge fund and large traders continue to press the short-side. Short-term conditions are oversold, but there is no indication of a let up in the selling pressure. This type of formation typically ends with a closing price reversal bottom. Traders should start watching the 60-minute chart for clues as to whether bearish conditions are getting ready to shift.

Tomorrow the European Central Bank will hold a meeting. Traders expect interest rates to remain unchanged. The policy statement is expected to address the fact that rates will remain low for an extended period of time as the Euro Zone will need time to sort out its financial mess. ECB President Trichet is also expected to address the problems in Greece, Portugal and Spain. In his after meeting speech, he is most likely going to try to boost the confidence of Euro investors.

The weak Euro is sending the June Swiss Franc sharply lower. Traders continue to expect the Swiss National Bank to intervene to defend its currency. Based on the 12-month range of .8222 to 1.0099, the market is now trading inside the retracement zone of this range at .9161 to .8939. Look for this pair to continue to weaken as long as the high end of the range holds with the lower end the next objective. The severely oversold Euro may trigger a short-covering rally in the Swiss Franc. Aggressive traders have to be careful about chasing this market lower.

The lack of follow-through to the downside in the U.S. equities markets is helping to pressure the June Japanese Yen. A turnaround in demand for higher yielding assets is likely to put pressure on the June Japanese Yen with a move through the former bottom at 1.0558 likely. The daily chart indicates that a break through a downtrending Gann angle at 1.0623 is likely to be the first sign of strength and could lead to an acceleration to the upside. A resumption in stock market selling pressure should be the catalyst for this break.

DISCLAIMER: Futures and options trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures and options may fluctuate, and, as a result, clients may lose more than their original investment. The impact of seasonal and geopolitical events is already factored into market prices. Prices in the underlying cash or physical markets do not necessarily move in tandem with futures and options prices. In no event should the content of this correspondence be construed as an express or implied promise, guarantee or implication by or from Brewer Futures Group, LLC, Brewer Investment Group, LLC, or their subsidiaries and affiliates that you will profit or that losses can or will be limited in any manner whatsoever. Loss-limiting strategies such as stop loss orders may not be effective because market conditions may make it impossible to execute such orders. Likewise, strategies using combinations of options and/or futures positions such as "spread" or "straddle" trades may be just as risky as simple long and short positions. Past results are no indication of future performance. Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

U-Turn Ahead?

 

I confess that I've written mostly upbeat sorts of posts recently:

• There was the last piece about moving into the favorable phase of the lunar cycle.
• Earlier, the statement that the moving averages current alignment isn't indicating a bearish turn in momentum.
• Finally, there was an analysis of the "go away in May" mantra showing that there was "62% likelihood that the market will be higher next October than the level it closes at on Friday" based on similar periods since 1939.

One dedicated reader criticized me for being continually and overly optimistic even though I did write in "Fear of Heights" on April 7,

"Our best guess can be nothing more than a range for the next consolidation level, a possible next peak somewhere between 1220 and 1310. There was congestion in this range in 2008 on the way down and odds are that there might be congestion as the market passes through the range again on the way up."

But Friday's market was about as discouraging for the bulls as anyone could dream up with the market falling since it peaked at 1217 two weeks ago on 4/17. So even with what may have sounded optimistic, I have also had my cautious moments. On March 21 (Is The Market's Tilt Changing?), I discerned a change of slope in the market's trend. But the clearest vision and the one that still seems to be holding true was November 9th's "One View of Market's Future" in which I wrote:

• The market begins to stall out in December as:
• • the door for the sidelines-money slams shut for the year
  • tax selling begins to capture losses and record gains in anticipation of possible higher 2010 tax income rates
• The 1150-1200 is a critical area for past pivot points where the market turned in 1998, 2001, 2002, 2004, 2005, 2006 and 2008. These pivots occurred both when the market was trending up and down.
• The turn is usually caused by an economic catalyst and one that could fit the bill perfectly would be:
• • The $US Dollar firming and possibly reversing its descent.
  • The "Soft Dollar Trade" (buying foreign currencies, gold and commodities), considered by many as "over-crowded", begins to unwind and the market begins to decline.
• A logical target for the bottom of this correction is the neckline of the market's inverted head-and-shoulders bottom, or approximately 950 in the S&P 500, a 17% decline from the high.
• • The decline falls within the definition of a correction falling short of the 20% required to considered a "Bear Market".
  • The Index will find support on the 200-DMA, the crossing of which is a key indicator identifying Bull and Bear Markets
  • The 200-DMA will have crossed the 300-DMA by then
  • The 300-DMA will have turned up, the final hurdle before the book on the Crash can be finally closed.

We peaked at 1217 a week ago. We now have three possible economic catalysts in contagion of the European Economic crises, financial reforms and the legal attacks against Goldman Sachs and, now the economic consequences of the Gulf of Mexico oil spill (most of us could probably continue with additions to this litany).

So it's time to set up those dominoes again (see Market Dominoes Begin to Fall of January 26) and see how many of them fall. That should tell us how much and when to sell stock and move into cash.

Singapore Stock Market Update For Monday 03 May

Morning Highlights

Selective Blue Chips To Lookout For…

Singapore market kicked off the week on a negative note with the STI down 0.62% to open at 2956.17. Support is seen at 2932.04 and resistance at 3000.

• Lookout for selective blue chips: Genting Singapore, Hong Kong Land  and CapitaMall Asia.
• Look out for Singapore's April PMI figures on Tuesday 04/05/2010.
• China Min Zhong broke 1.23.

Watch our for U.S. economic data to be released today: March Personal Income and Spending, April's ISM Manufacturing.

Corporate Announcements

1. IndoFoodAgri announced 35.5% growth year-on-year in 1Q10 net profit to Rp405 billion.
2. Swiber announced a notice of award from an oil and gas operator in South Asia worth approximately US$148 million. The offshore work will commence in 4Q10 and to be completed by 2Q11.
3. Cosco announced the delivery of two bulk carrier to its European customers. Meanwhile, an Asian shipowner rescheduled the delivery of one bulk carrier from Oct 2010 to Apr 2011.
4. Noble Group clarified that it has no renewed interest to restart discussions with Macarthur Coal, dispelling market rumours.

 News Updates:

1. U.S. economy expands 3.2% in first quarter, with consumers leading the way.
2. U.S. stock benchmarks end April in black; 2.6% Nasdaq rise leads pack
3. U.S. stocks fell, capping the biggest weekly drop since January, as criminal investigators took aim at Goldman Sachs Group Inc. and technology shares slid as MEMC Electronic Materials Inc. posted a loss.
4. MEMC plunged 19% to $12.97 for the biggest decline in the S&P 500.
5. S&P analysts call Goldman Sachs shares a sell; stock decline steepens and sank 9.4% to the lowest since July after criminal-probe report.
6. FDIC shuts down three Puerto Rico banks, holding almost $15 billion in total deposits
7. Continental, United boards reportedly approve $3.2 billion merger.
8. China's April PMI rose to a seasonally adjusted 55.7 from 55.1 in March, highlighting potential overheating risks in the world's fastest growing economy.
9. South Korea April CPI up 2.6% yoy, above forecast; manufacturing growth rebounded in April adding to expectations of stronger inflationary pressure on a sustained recovery.
10. Australia inflation gauge rises 0.4% in April; manufacturing growth at 8 year high in April.
11. Greece sealed a deal with the European Union and IMF yesterday, amounting to 120 billion euro rescue package for Greece.

Quick Picks: Here is a quick pick screen that we have designed to pick out potential stocks, both Bullish and Bearish. These are measured with emphasis on larger changes in price and volume.

Bullish Stocks (Singapore)

	Symbol	Name	Entry	SL	TSL	TP	Remarks
1	SIAT	Singapore Airport Terminal Services Ltd	2.93	2.74		3.12
2	UTES	United Engineers	2.65	2.51		2.79
3	STTS	Stats ChipPAC	1.21	1.11		1.31
4	PTGL	Pteris Global	0.31	0.215		0.405

Bearish Stocks (Singapore)

	Symbol	Name	Entry	SL	TSL	TP	Remarks
1		CapitaMall Asia	2.12	2.22		2.02
2	EZRA	Ezra Holdings	2.02	2.12		1.92
3	WTHS	Wing Tai Holdings	1.73	1.85		1.61

Stock Prices last updated at 9.05 (Singapore Time)

5 Reasons Brazil Is Likely To Grow

 

A steadily growing economy, stable financial market and liberal investment climate has enabled Brazil to prosper and build a foundation of continuous growth in the future.

Currently, Brazil is the 10^th largest economy in the world and due to its abundance of natural resources is likely to move up the list.  Brazil is one of the few countries in the world that is self-sufficient in oil as well as a leader in alternative energy sources.  Demand for crude oil will likely increase as the global economy continues to improve, and being self-sufficient in the commodity puts Brazil ahead of many of its competitors.  To further support its strength in the oil markets, the nation just uncovered large new oil beds which are expected to increase output in the future.

On the alternative energy front, Brazil is a global leader in the production and utilization of ethanol.  In fact, the Latin American nation produces more ethanol than Asia and Europe combined.  Brazil's success in alternative energy is likely to further bolster its strength as other nations, like the United States, continue to place an emphasis on carbon reduction and the use of cleaner sources of energy.

Brazil is also rich in resources other than energy related commodities.  The Portuguese-speaking nation is the world's second largest producer of iron ore and is a leading exporter of steel, coffee, soybeans, sugar and beef; all natural resources that are likely to increase in demand as economies around the world grow.

Another factor working in Brazil's favor is its tight control over its monetary instruments.  The country's fiscal policies and prudent decisions have left it with large cash reserves which have enabled the nation's credit markets to lend, when need be, and lead the nation's financial system to be somewhat shielded from the global financial catastrophe.  

Lastly, Brazil is set to host the 2014 Olympics and the 2016 World Cup, two major sporting events which require massive infrastructure building and restructuring, likely to boost construction and building sectors of the nation.  Additionally, once these two events take off, tourist spending and publicity are likely to further add to an already expanding GDP.

In a nutshell, Brazil's abundance in natural resources and its fiscal discipline and stability have enabled it to be a positive candidate for stellar growth over the next few years.

Some ways to play Brazil include:

• iShares MSCI Brazil Index ( 72.2575 -0.9425 -1.29%), which focuses on Brazil's largest companies with nearly 75% of its exposure to materials, energy and financial services.  EWZ closed at $72.76 on Friday.
• Market Vectors Brazil Small Cap ( 46.42 -0.15 -0.32%), which invests in companies deriving at least half of their income by selling products to Brazilians.  BRF closed at $46.42 on Friday.
• WisdomTree Dreyfus Brazilian Real ( 27.17 -0.20 -0.73%), which gives one exposure to Brazil's currency.  BZF closed at $27.17 on Friday.

Although numerous forces point towards growth in Brazil, it is equally important to consider some risks that the nation may face such as widespread corruption, restrictive business labor laws and increasing government spending.

A good way to protect against these threats is through the implementation of an exit strategy which identifies price points at which an upward trend could come to an end.

Stock Picks For Monday 3 May: Sirius XM Radio, GFI Group, TrinityIndustries, Hansen Medical

The stock skyrocketed Friday after the company released the following news: GFI Group Inc ( 6.89 +0.63 +10.06%) reported a slightly better-than-expected quarterly profit, as the inter-dealer broker earned more from its brokerage segment. Net profit for the first quarter was $13.4 million, or 11 cents a share, compared with net income of $11.6 million, or 10 cents a share, in the year-ago period. Excluding items, the company earned 12 cents a share for the fourth quarter. Analysts were expecting earnings of 11 cents a share, according to Thomson Reuters I/B/E/S. Total revenue for the quarter rose 2 percent to $220.8 million, mostly in-line analysts' view. Brokerage revenue, the largest contributor to total revenue, rose 3 percent to $204.1 million. Shares of the company closed at $6.90 Friday on Nasdaq, gaining more than 10%. The technical chart shows a bullish bias. GFIG broke out a short term consolidation pattern on huge volume of over 2.6 Million shares, indicating some bullish behavior and we could possibly see some continued upside movement. Target price for the pattern is at $7.92. MACD and KD show buy signal as MACD is above signal line and %K line is on top of %D line. In addition, GFIG is now above 50-day and 200-day moving average and if the upward trend can continue for another week and 50-day moving average can cross on top over 200-day moving average than the stock will be ready for a big rally.

 

It is been quite a good run for Sirius XM Radio 1.1775 -0.0225 -1.88%) since December. This stock more than doubled in about 6 months from $0.5 in December to > $1 in April. It is presently in a short-term uptrend with support at 1.142. The resistance level is $1.22, which was Thursday's high of the day. If SIRI can break through with volume, we could see the stock run up to $1.28, which is another small resistance level. Keep watching SIRI and look for an increase in volume if the stock breaks out.

 

Trinity Industries ( 24.89 -0.93 -3.60%) - The technical daily chart shows a bearish cross has formed, pointing to a future downward correction in price. I am expecting a pull back to test the key level of $24.10

 

Hansen Medical (2.56 -0.06 -2.29%) broke resistance on Friday, but was not able to make the expected move. The stock needs to break Friday's high of $2.75 to expect a strong rally at this point.

Earnings Announcements for Monday

A. H. Belo Corporation - AHC
AAON - AAON
Aastrom Biosciences - ASTM
Abraxis BioScience, Inc. - ABII
ACTIONS SEMICONDUCTOR CO LTD - ACTS
ActivIdentity - ACTI
Actuate Corporation - ACTU
Adaptec, Inc. - ADPT
Administaff - ASF
AeroCentury - ACY
AES Corporation - AES
Aeterna Zentaris Inc. - AEZS
Affymax, Inc. - AFFY
AIRCASTLE LTD - AYR
AirMedia Group Inc. - AMCN
Albany Molecular Research - AMRI
Aldila, Inc. - ALDA.PK
Alexander's - ALX
AllianceBernstein Holding L.P. - AB
Allied Healthcare - AHCI
Almost Family - AFAM
Alnylam Pharmaceuticals -ALNY
ALPHA PRO TECH LTD - APT
Altair Nanotechnologies Inc - ALTI
American CareSource Holdings, Inc. - ANCI
American Physicians Service Group - AMPH
American Vanguard - AVD
AMERISAFE INC - AMSF
Amicus Therapeutics, Inc. - FOLD
Ampal-American Israel - AMPL
AMTRUST FINANCIAL SERVICES INC - AFSI
Anadarko Petroleum Corporation - APC
ANATOLIA MINERALS DEV LTD - ALIAF.PK
Andersons Inc - ANDE
Answers Corporation - ANSW
APAC Customer Services Inc. - APAC
APCO-Argentina - APAGF
APPLIED NANOTECH HOLDINGS INC - APNT.OB
APPROACH RESOURCES INC - AREX
Arbinet - ARBX
Arbor Realty Trust - ABR
Ardea Biosciences, Inc. - RDEA
Arden Group - ARDNA
Arena Resources Inc. - ARD
Arlington Asset Investment Corp - AI
Armstrong World Industries Inc. - AWI
ArQule, Inc. - ARQL
Arrhythmia Research Technology - HRT
Arrow Electronics, Inc. - ARW
Artesian Resources - ARTNA
ASCENT SOLAR TECHNOLOGIES INC - ASTI
ASIA PACIFIC BREWERIES LTD - APBRF.PK
ASSISTED LIVING CONCEPTS INC - ALC
Atlantic Tele-Network - ATNI
Atlas Pipeline Partners - APL
ATS Medical - ATSI
Auxilium Pharmaceuticals, Inc. - AUXL
AVANIR Pharmaceuticals - AVNR
Avis Budget Group, Inc. - CAR
BancTrust Financial Group - BTFG
Bank of Granite - GRAN
Bellus Health Inc. - BLUS.PK
Belo - BLC
BEST WORLD INTERNATIONAL LTD - BWRDF.PK
BIDZ.COM - BIDZ
BIO-key International, Inc. - BKYI.OB
BIODEL INC - BIOD
BioLase Technology - BLTI
BioMed Realty Trust, Inc. - BMR
BioMimetic Therapeutics - BMTI
Bionovo Inc. - BNVI
Blount International - BLT
Bluefly - BFLY
BlueLinx Holdings Inc - BXC
Boise Inc. - BZ
BP Prudhoe Bay Royalty Trust - BPT
Breitburn Energy Partners LP - BBEP
Bridgepoint Education Inc. - BPI
Brookdale Senior Living Inc. - BKD
BSquare - BSQR
Cadence Pharmaceuticals, Inc. - CADX
CADIZ INC - CDZI
CAI INTERNATIONAL INC - CAP
CapitalSource Inc - CSE
CAPLEASE INC - LSE
Cardiovascular Systems, Inc. - CSII
CARIBOU COFFEE CO INC - CBOU
Carmike Cinemas, Inc. - CKEC
CAS Medical Systems, Inc. - CASM
CECO Environmental - CECE
Centerstate Banks of FL. - CSFL
Central European Distribution - CEDC
Central Garden & Pet Company - CENT
Central Virginia Bankshares - CVBK
Cenveo - CVO
Chemtura Corp. - CEMJQ.PK
CHENIERE ENERGY PARTNERS LP - CQP
Chesapeake Utilities - CPK
CHIMERA INVT CORP - CIM
Church & Dwight Co., Inc. - CHD
CKX INC - CKXE
Clarus Corporation - CLRS.PK
CLIFTON SAVINGS BANCORP INC - CSBK
Clorox - CLX
CNA Financial Corporation - CNA
Cognex - CGNX
CombinatoRx, Inc. - CRXX
COMMUNITY CENTRAL BANK CORP - CCBD
COMPASS DIV HOLDINGS - CODI
CompuCredit - CCRT
Comstock Resources, Inc. - CRK
Concur Technologies - CNQR
Connecticut Water Service - CTWS
Consolidated Graphics - CGX
Constellation Energy Partners LLC - CEP
Continucare - CNU
Core-Mark Holding Company, Inc. - CORE
Cornerstone Therapeutics Inc. - CRTX
Corporate Executive Board Company - EXBD
Creative Technology - CREAF.PK
CRITERIA CAIXACORP SA - CIXPF.PK
CryptoLogic Limited - CRYP
Curis - CRIS
Cutera, Inc - CUTR
CVR ENERGY INC - CVI
Dawson Geophysical - DWSN-
DAYLIGHT RES TRUST - DAYYF.PK
Delta Natural Gas - DGAS
Denbury Resources, Inc. - DNR
DG FastChannel, Inc. - DGIT
DiamondRock Hospitality Company - DRH
DIGITAL ANGEL CORP NEW - DIGA
Dominion Resources Black Warrior Trust - DOM
DORCHESTER MINERALS LP - DMLP
Dot Hill Systems Corp. - HILL
Double Eagle Petroleum and Mining - DBLE
Douglas Emmett Inc - DEI
Drew Industries Incorporated - DW
Ducommun - DCO
Dune Energy, Inc. - DNE
DURECT Corporation - DRRX
DXP Enterprises - DXPE
Dynex Capital - DX
Eagle Bulk Shipping Inc. - EGLE
Ebix Inc. - EBIX
Edap TMS - EDAP
EFJohnson Technologies, Inc. - EFJI
eGain Communications - EGAN.OB
eHealth, Inc. - EHTH
Electronic Arts - ERTS
EMAK Worldwide Inc. - EMAK.PK
EMC Insurance Group - EMCI
EMERGENT GROUP INC NEV - LZR
Emeritus Corporation - ESC
Empire Resorts - NYNY
Energy Focus, Inc. - EFOI
EnergySolutions, Inc. - ES
Enstar Group Ltd. - ESGR
Entech Solar, Inc. - ENSL.OB
Entertainment Distribution Company, Inc. - EDCI
Entertainment Properties Trust - EPR
EntreMed, Inc. - ENMD
Environmental Power - EPG
Enzon Pharmaceuticals, Inc. - ENZN
EPICEPT CORP - EPCT
EXACT Sciences Corporation - EXAS
EXTRA SPACE STORAGE INC - EXR
Far East Energy Corporation - FEEC.OB
Female Health - FHCO
FiberTower Corporation - FTWR
Fidelity Southern Corporation - LION
FinishMaster - FMST.PK
First Mercury Financial Corporation - FMR
First United - FUNC
Five Star Quality Care, Inc. - FVE
Flagstone Reinsurance Holdings Ltd. - FSR
Flanders - FLDR.PK
FLOTEK INDS INC DEL - FTK
FMC Corporation - FMC
Forest Oil Corporation - FST
Fortress Investment Group LLC - FIG
Forward Industries - FORD
Frozen Food Express Industries - FFEX
Fuel Tech, Inc. - FTEK
GAFISA S A - GFA
Gaiam - GAIA
GAMCO Investors, Inc. - GBL
GateHouse Media, Inc. - GHSE.PK
Genco Shipping & Trading Limited - GNK
General Growth Properties Inc - GGP
GEOKINETICS INC - GOK
GeoMet, Inc - GMET
GeoResources - GEOI
Giordano International Ltd - GRDZF.PK
GLADSTONE COML CORP - GOOD
Global Cash Access - GCA
Globecomm Systems Inc. - GCOM
GNC Corporation - GNC
GOLFSMITH INTL HLDGS INC - GOLF
GP Strategies - GPX
Granite Construction - GVA
Great Lakes Dredge & Dock Corporation - GLDD
GREENLIGHT CAPITAL RE LTD - GLRE
Griffon - GFF
Grubb & Ellis - GBE
GTSI Corp. - GTSI
H&E Equipment Services, Inc. - HEES
Hansen Medical, Inc. - HNSN
Harbinger Group Inc. - HRG
Harvest Natural Resources, Inc. - HNR
HAYNES INTERNATIONAL INC - HAYN
Headwaters Inc. - HW
Health Care REIT, Inc. - HCN
HealthMarkets - UCI
HealthTronics, Inc - HTRN
HeartWare International - HTWR
Herbalife Ltd. - HLF
Heritage Financial - HFWA
Hilltop Holdings Inc. - HTH
HKN, Inc. - HKN
HOLLYSYS AUTOMATION TECHNOLOGI - HOLI
Hologic - HOLX
HRPT Properties Trust - HRP
Hudson Technologies - HDSN
Hypertension Diagnostics - HDII.OB
I.D. Systems - IDSY
Icagen Inc - ICGN
Icahn Enterprises L.P. - IEP
Idenix Pharmaceuticals, Inc. - IDIX
Idera Pharmaceuticals, Inc. - IDRA
ILLOVO SUGAR LTD - ILVOF.PK
Immucell - ICCC
Immunomedics - IMMU
inContact, Inc. - SAAS
Inergy, L.P. - NRGY
InfoUSA - IUSA
Innophos - IPHS
INNOVARO INC - INV
Inspire Pharmaceuticals - ISPH
Integra LifeSciences Corporation - IART
Integral Systems - ISYS
INTERNATIONAL WIRE GROUP INC - ITWG.PK
Intevac, Inc. - IVAC
Investors Title Company - ITIC
IPG Photonics Corporation - IPGP
IRIS International, Inc. - IRIS
John Bean Technologies Corporation - JBT
Jones Soda Co. - JSDA
K12 INC - LRN
Kaydon - KDN
Keystone Consolidated - KYCN.OB
Kingsway Financial Services - KFS
Kronos Worldwide - KRO
LADENBURG THALMAN FIN SVCS INC - LTS
Lakes Entertainment, Inc. - LACO
Landry's Restaurants - LNY
LeapFrog Enterprises, Inc. - LF
LEGACY RESERVES LP - LGCY
Leucadia National - LUK
Lifetime Brands, Inc. - LCUT
Lionbridge Technologies - LIOX
LMA INTERNATIONAL NV - LMINF.PK
LMI Aerospace - LMIA
LNB BANCORP INC - LNBB
Loews Corp. - L
LookSmart Ltd. - LOOK
LTC Properties - LTC
M&F Worldwide - MFW
Macquarie Infrastructure Company - MIC
Magna International Inc. - MGA
Magnetek - MAG
MAIN STREET CAPITAL CORP - MAIN
MANITEX INTL INC - MNTX
Marchex, Inc. - MCHX
MARLIN BUSINESS SERVICES CORP - MRLN
MARSHALL EDWARDS INC - MSHLD
Martin Midstream Partners - MMLP
Max Capital Group Ltd. - MXGL
McCormick & Schmick's Seafood Restaurants, Inc. - MSSR
McKesson Corporation - MCK
Meadowbrook Insurance - MIG
Medallion Financial - TAXI
Medical Staffing Network - MSNW.PK
MEDNAX, Inc. - MD
Medquist - MEDQ
Mercer International - MERC
Mercury General - MCY
Metropolitan Health - MDF
MI Developments Inc. - MIM
Michael Baker Corp. - BKR
MicroStrategy Incorporated - MSTR
Micrus Endovascula - MEND
MiddleBrook Pharmaceuticals, Inc. - MBRK
Milestone Scientific - MLSS.OB
mktg, Inc - CMKG
MOCON Inc. - MOCO
Morton's Restaurant Group, Inc. - MRT
MTR Gaming Group - MNTG
Nam Tai Electronics, Inc. - NTE
NANJING DAHE OUTDOOR MEDIA CO - NJDOF.PK
National Dentex - NADX
National Healthcare - NHC
NATIONAL INTERSTATE CORP - NATL
National Retail Properties, Inc. - NNN
National Western Life Insurance - NWLI
NetSuite Inc. - N
Network Equipment Technologies - NWK
NeuroMetrix, Inc. - NURO
New Dragon Asia Corporation - NWD
New York Mortgage Trust Inc - NYMT
Newcastle Investment Corp. - NCT
NIC - EGOV
Nicholas Financial - NICK
NL Industries - NL
NN Inc. - NNBR
Nordic American Tanker - NAT
Novavax - NVAX
NTS RLTY HLDGS LTD PARTNERSHIP - NLP
Numerex Corp. - NMRX
NutriSystem - NTRI
NVIDIA Corporation - NVDA
NYMAGIC - NYM
ODYSSEY MARINE EXPLORATION INC - OMEX
Omega HealthCare Investors, Inc. - OHI
Omega Protein - OME
OMNI ENERGY SERVICES - OMNI
One Liberty Properties - OLP
Opko Health Inc. - OPK
Optimal Robotics - OPMR
Orbit International Corp. - ORBT
ORBITZ WORLDWIDE INC - OWW
Orchid Cellmark Inc - ORCH
Orexigen Therapeutics, Inc. - OREX
Orthovita, Inc. - VITA
OSIRIS THERAPEUTICS INC - OSIR
Osteotech - OSTE
Otter Tail Power - OTTR
OVERHILL FARMS INC - OFI
OYO Geospace - OYOG
Pacific Office Properties Trust - PCE
Panhandle Oil and Gas Inc - PHX
PARKE BANCORP INC - PKBK
Parkvale Financial - PVSA
Parkway Properties Inc. - PKY
PATRIOT TRANSN HLDG INC - PATR
PC MALL, Inc. - MALL
PDI, Inc. - PDII
Pennichuck - PNNW
Penwest Pharmaceuticals - PPCO
Pericom Semiconductor - PSEM
Perma-Fix Environmental Services - PESI
PetroQuest Energy - PQ
Philippine Long Distance Tel. Co. - PHI
PINNACLE AIRLINES CORP - PNCL
PINNACLE BANK GILROY CALIF - PBNK.OB
Pitney Bowes Inc. - PBI
Plug Power - PLUG
PMC Commercial - PCC
Post Properties, Inc - PPS
Powell Industries, Incorporated - POWL
PowerSecure International, Inc. - POWR
Powerwave Technologies - PWAV
Preferred Bank - PFBC
Presstek Incorporated - PRST
Pressure BioSciences - PBIO
Princeton Review - REVU
PS Business Parks - PSB
PSEG - PEG
PSS World Medical, Inc. - PSSI
Psychemedics Corporation - PMD
PVF Capital - PVFC
Qiagen N.V. - QGEN
Quanta Services - PWR
Rackspace Hosting, Inc. - RAX
Radian Group - RDN
Ralcorp Holdings, Inc. - RAH
RAM Energy, Inc. - RAME
RCM Technologies - RCMT
Redwood Trust, Inc. - RWT
Regal-Beloit Corporation - RBC
Regent Communications Inc. - RGCIQ.PK
Reis, Inc. - REIS
Relm Wireless Corporation - RWC
REN REDES ENERGETICAS NACIONAI - RENZY.PK
RESOURCE CAP CORP - RSO
RHI Entertainment, Inc. - RHIE
Riverview Bncp Inc - RVSB
Riviera Holdings Corporation - RVHL.PK
RIZAL COMMERCIAL BANKING CORP - RZLCF.PK
Rogers Corporation - ROG
Rosetta Resources Inc. - ROSE
Sabine Royalty Trust - SBR
Safety Insurance Group Inc - SAFT
Saul Centers - BFS
Savient Pharmaceuticals, Inc. - SVNT
Savvis, Inc. - SVVS
Seaboard - SEB
Senior Housing Properties Trust - SNH
Silverleaf Resorts - SVLF
Sirius Satellite Radio - SIRI
Skilled Healthcare Group, Inc. - SKH
SM PRIME HLDGS INC - SPHXF.PK
SMARTPROS LTD - SPRO
Smith Micro Software - SMSI
Solar Capital Ltd. - SLRC
SOMAXON PHARMACEUTICALS INC - SOMX
Sotheby's - BID
Southwest Gas - SWX
Span-America Medical Systems - SPAN
St. Mary Land & Exploration - SM
Standard Motor Products - SMP
Star Gas Partners - SGU
StemCells, Inc. - STEM
Stone Energy - SGY
SuccessFactors Inc. - SFSF
SULPHCO INC - SUF
Sun Hydraulics - SNHY
Sunesis Pharmaceuticals, Inc. - SNSS
SunOpta Inc. - STKL
Sunrise Senior Living - SRZ
Superior Industries - SUP
Supertel Hospitality Inc. - SPPR
Sykes Enterprises, Incorporated - SYKE
Synchronoss Technologies, Inc. - SNCR
SYSCO Corporation - SYY
TAL International Group - TAL
Tandy Leather Factory, Inc. - TLF
TBS International Plc - TBSI
Technitrol - TNL
TechTeam Global - TEAM
TeleChoice International Ltd - TEITF.PK
Telecom Corporation Of New Zealand Ltd - NZT
Telephone and Data Systems, Inc. - TDS
TELUS - TU
TerreStar Corporation - TSTR
Tesco - TESO
Texas Roadhouse, Inc. - TXRH
TFS FINANCIAL CORPORATION - TFSL
TGC - TGE
The India Fund, Inc - IFN
The Principal Financial Group - PFG
Thermogenesis - KOOL
Thomas Group - TGIS
THOMAS PROPERTIES GROUP INC - TPGI
Threshold Pharmaceuticals, Inc. - THLD
TIB Financial - TIBB
TICC CAPITAL CORP - TICC
Titanium Metals Corporation - TIE
TNS INC - TNS
TransMontaigne Partners L.P. - TLP
TRC Companies - TRR
Tredegar Corporation - TG
Trump Entertainment Resorts - TRMPQ.PK
U.S. Gold Corporation - UXG
UDR, Inc. - UDR
UFP Technologies - UFPT
UIL Holdings Corporation - UIL
UMH Properties, Inc - UMH
Unica Corporation - UNCA
United America Indemnity, Ltd. - INDM
United American Healthcare Corporation - UAHC
United Capital - AFP
United Security Bancshares - UBFO
Unitrin, Inc. - UTR
Universal Display - PANL
Universal Technical Institute, Inc. - UTI
US Concrete Inc. - RMIX
USEC Inc. - USU
Valeant Pharmaceuticals International - VRX
VANGUARD NATURAL RESOURCES LLC - VNR
VaxGen, Inc. - VXGN.OB
VCG HLDG CORP - VCGH
Venoco Inc - VQ
VERAZ NETWORKS INC - VRAZ
Vestin Realty Mortgage I, Inc. - VRTA
VIEWPOINT FINANCIAL GROUP - VPFG
VIRTUS INVT PARTNERS INC - VRTS
Vista Gold - VGZ
Volcano Corporation - VOLC
Vulcan Materials - VMC
Warwick Valley Telephone - WWVY
WATERSTONE FINANCIAL INC - WSBF-
Waytronx, Inc. - WYNX.OB
Westmoreland Coal - WLB
WILBER CORP - GIW
WONDER AUTO TECHNOLOGY INC - WATG
XERIUM TECHNOLOGIES INC - XRM
XTO Energy Inc . - XTO
YAMANA GOLD INC - AUY
YORK WATER CO - YORW
Zoom Technologies Inc. - ZOOM

Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in AC Investor Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don't consider buying or selling any stock without conducting your own due diligence.

April 2010 Market Review

Did spring, in the form of April's market returns, just come in like a lamb? Will spring, in the form of 2nd quarter GDP, go out like a lion? Will that lion be robust and energized, or an angry beast?

April's returns are now in the books. Many of the themes remain the same. Those include:

1. A trend toward disinflation helping the bond market primarily.

2. Easy money from the Fed supporting all markets.

3. Improved corporate earnings (be aware that earnings comparisons are year over year, and April 2009 was the economic abyss).

4. Problems throughout the Euro-zone benefiting the U.S. dollar and gold.

I still believe the economy is operating in a manner equivalent to walking pneumonia. Housing and labor remain huge drags on our overall economic and fiscal health. The oil disaster in the Gulf of Mexico will definitely be a drag on 2nd quarter GDP. Speaking of which, you will NOT want to miss my radio show this Sunday evening from 8-9pm ET as No Quarter Radio's Sense on Cents with Larry Doyle Welcomes Back Rick Davis of the Consumer Metrics Institute to review the 1st quarter GDP report released yesterday and preview 2nd quarter GDP. Rick is way ahead of the curve. My initial interview with him on March 27th was off the charts. Tomorrow evening will provide more of the truth, transparency, and integrity that Sense on Cents works diligently to provide. Spread the word.

Now, the April returns . . .

The Euro continued to lag given problems in the Euro-zone. That development supported our greenback:

The commodities index improved, led by the shiny yellow substance. That said, the overall commodities index is still down for the year. Disinflation is becoming further entrenched. Will that spill over into outright deflation?

Equity markets ended the month marginally better, but have been running in place for the last three weeks. Are we putting in a top? Will an expected slowing in 2nd quarter GDP (as projected by my guest tomorrow evening) lead to a long, overdue pullback in equities? International and emerging markets are lagging domestic equities:

Bonds have benefited from concerns in the EU and from a clear trend toward disinflation. The Fed is in no rush to change its monetary policy given the challenges in housing and labor:

---

网易为中小企业免费提供企业邮箱（自主域名）