It is Wednesday June 14, 2006, and we are trying to get over the hump of the buying and selling week but the fear nonetheless looms throughout 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 jewelry trade and the decrease in demand from India.
India has been a big purchaser of precious metals across the board, this emerging market was an enormous catalyst within the metals craze. Now that together with the other slipping emerging markets corresponding to Brazil, Russia, China, South Korea aka the “BRICK” nations, India has tighten their belt. So supply and demand has come into play. These highflying metals stocks have been knocked down but we could see a slight rebound in the approaching weeks.
Companies which are based in the “BRICK” international locations and trade right here within the United States, across the board have been evacuated from, the money circulation out of these corporations have prompted them to slip virtually every day. But it surely could also be time to begin to have a look at these firms once more just to get a handle on those companies that had been guilty by affiliation and dragged down.
The Nasdaq has fallen for the 8th straight day, as we speak may mark number 9 and that’s something that hasn’t happened since 1984. While the usual & Poor’s 500 closed at a seven month low yesterday. This is all as a consequence of issues that the FOMC will increase interest charges, so dangle of their because there are gems in this rubble that you simply might want to choose up, you just must be affected person.
In the alternative power sector, you’ve gotten an organization that may begin buying and selling in the present day and they’re in the Ethanol recreation. VeraSun Vitality Company (NYSE: VSE) The company has Ethanol plants in each Iowa and South Dakota. They sell a branded fuel, VE85, at service stations in the Midwest. Now it is a pure play within the Ethanol arena, however that is certainly one of three Ethanol firms that will be taken public shortly. Despite the fact that the initial budge has come from Capitol Hill, that isn’t sufficient to drive the investors to the frontlines of these new issues. So the timing could also be mistaken and these new issues simply could put a ton of stress on different publicly traded Ethanol corporations as soon as they hit the market, resembling Pacific Ethanol (NASDAQ: PEIX).
Nevertheless it may have a ripple effect and trickle down to other various energy corporations which may be involved within the photo voltaic power enviornment.
Tropical Storm Alberto turned down the burners before it hit Florida yesterday and did not pose the danger than most forecasters predicted. So the storm never made it to Hurricane standing, and simply dumped rain on the areas close to Tallahassee, Florida.
Movers and Shakers
Some main movers in yesterdays buying and selling session included Maverick Tube Corp (NYSE: MVK), the stock soared to close up $16.Ninety nine at $62.Sixty five after they agreed to be acquired by Tenaris (NYSE: TS) for over $3.19 billion or $65 a share. Tenaris made this an all cash deal, which made it much more attractive to the board of Maverick Tube.
Diodes, Inc (NASDAQ: DIOD) shot up to shut up $four.Ninety four at $38.39, this was primarily based on the semiconductor firm saying that they had been growing their second quarter guidance, So that they expect progress of 10-12% as opposed to about three%, so in different words they’re in search of income in the neighborhood of approximately $eighty two million in comparison with first quarter revenue of $73.6 million. Earlier this yr the inventory traded up from $33 to hit $forty one but as soon as it broke that stage it tried for $forty two after which within the mid $43 vary it hit a ceiling and fell sharply to the $32 range and that was on good earnings. So keep that in thoughts when you leap into this one as that same ceiling may still exist.
Lone Star Technologies (NYSE: LSS) traded up $2.94 to close at $46.Fifty four, now there isn’t a news out and the stock traded virtually triple the each day quantity, trading close to 2.Eight million shares. Now I need 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 got here tumbling down shortly afterwards. So this could also be one to look at just plan out your exit point earlier than diving in.
Here is one other stock that traded over triple their average quantity, NS Group, Inc (NYSE: NSS) which traded up $1.21 to shut at $45.76 on over 1.4 million shares traded. Now the company produces seamless and welded tubular steel products for the vitality industry. Although the stock traded up in the $forty eight vary yesterday, I am looking at what it closed at, which is $45.76. The last time that it closed over $46.50, which was again in April, the stock shot up close to $52, then slipped down a bit after which traded up to the $fifty five range after which it nosedived to the $forty five vary a couple of weeks later. So there could also be one thing here, you just should be in tune to the buying and selling on the inventory, identical to Lone Star, just decide your entry and exit points earlier than hand and persist with it.
Different stocks that made nice strikes on Tuesday embrace Dean Foods (NYSE: DF) which traded up $1.35 to shut at $36.05, Apple laptop (NASDAQ AAPL) traded up $1.32 to shut at $58.32, Intuit (NASDAQ: INTU) traded up $1.25 to close at $52.69, Wellcare Well being Plans (NYSE: WCG) traded up $1.18 to close at $49.Forty eight, Hologic (NASDAQ: HOLX) traded up $1.Forty two to shut at $36.Ninety four and Greatest Buy (NYSE: BBY) shot up $2.Sixty six to close at $51.Sixty nine.
Other stocks that made moves on the upside under ten bucks embrace MicroFinancial (AMEX: MFI), an equipment leasing company that at one level traded within the $16 range however that was a very long time in the past, the inventory traded up 19 cents to shut at $3.Fifty nine on little to no quantity. There is de facto no curiosity in the inventory by the street, I simply talked about it as a result of somebody actually bought the stock.
Peru Copper (AMEX: CUP) shot up 20 cents to close at $four.30 on Tuesday, now this stock has traded wildly with speculation of a takeover by Southern Copper (NYSE: PCU), now as we mentioned the corporate announced that Southern Copper is just not the only fish within the sea. With metals hitting a backside in this vary you can expect the interest in Peru Copper to spring up again as any suitors which might be out there are sitting on the sidelines ready for the best second. As an investor you need to purchase on rumor and promote on news, not the other manner around. So expect Peru Copper to gain some interest, commerce just a little increased in the coming days and weeks, and also you may want to look at different gold, silver and copper companies that fell from grace recently because the sell off was overdone.
Back in March NPS Pharmaceuticals (NASDAQ: NPSP) traded within the $14 vary however since then it has fallen to the $4.Ninety five vary the place it closed on Tuesday, up 15 cents. This tumble was due to federal regulators proposing a new clinical trial for his or her PREOS drug. Now regardless of their improved earnings and income being proven the road had no mercy on this one. At this level their detrimental EPS may be very close to their stock price. So on the heels of that debacle the corporate determined to restructure, eliminating half of its employees, closing services and scrapping a deal that that they had with Allergan to promote its chronic dry eye drug Restasis. The inventory is at its 52 week low, which can be their all time low, just about, and the injury is done, so you may see an upward swing in the stock however not overnight. I really don’t see it buying and selling below $four so the draw back is restricted in comparison with their upside potential. Do your homework on this one because it could also be something to have a look at.
Different stocks that moved greater yesterday under ten bucks included Waster Companies (NASDAQ: WSII) which traded up 12 cents to close at $2.92, McData Corp (NASDAQ: MCDTA) traded up 10 cents to close at $four.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 close 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 $four.80 to shut at $123.Fifty nine. Now they are a part of the financial sector that received hammered as of late, but its oversold. Traders need to start out looking on the brokerage stocks once more as Funding banking is altering in so many ways and buying and selling income will develop in 2006. We just need to remain in tune to the trade, but these stocks ought to have some kind of bounce at this time and longer time period should do properly.
Hansen Pure (NASDAQ: HANS) traded down $6.06 to shut at $149.95 they will be splitting shortly.
Baidu.com (NASDAQ: BIDU) traded down $5.Ninety nine to close at $78.20 , this promote off has to do with the drop in rising markets. This appears to be oversold but if it breaks the $77.66 mark it may fall into the mid $60 vary. So simply be on high of it.
Other stocks that traded down embody Rio Tinto (NYSE: RTP) which traded down $4.77 to close at $185.25, Arcadis (NASDAQ: ARCAF) traded down $4.27 to shut at $39.35 and Toyota Motor (NYSE: TM) which traded down $four.20 to close at $ninety five.Fifty one.
Now some stocks underneath ten bucks that obtained the royal smack down yesterday embrace Datalink (NASDAQ: DTLK) which traded down $1.05 to shut at $four.96, Gold Reserve Inc (AMEX: GRZ) traded down 74 cents to shut at$three.96, Fieldpoint Petroleum (AMEX: FPP) traded down 60 cents to shut at $four.51, Bema Gold (AMEX: BGO) traded down 50 cents to close at $4.10, Miramar Mining (AMEX: MNG) traded down 43 cents to shut at $3.16 and Transmeridian Exploration (AMEX: TMY) which traded down 40 cents to shut at $4.45.
Current Analyst upgrades embrace Dean Foods (NYSE: DF) which was upgraded to an Overwieght from a Impartial Weight by Prudential Equity Group, Omega Monetary 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 Neutral by Sidoti & Co.
Recent Analyst downgrades embody Jabil Circuit (NYSE: JBL) which was downgraded to a Hold from a Purchase by Citigroup, Piedmont Natural Gas (NYSE: PNY) was downgraded to a Neutral from a Buy by Janney Montgomery, Monster Worldwide (NASDAQ: MNST) was downgraded to a Market Perform from a powerful Buy by Janney Montgomery and Pacific Power Partners (NYSE: PPX) was downgraded to a Hold from a Buy by AG Edwards.
Current analyst coverage initiations embody Global Funds (NYSE: GPN) which was initiated with a Buy ranking by Janney Montgomery, Smith Micro Software (NASDAQ: SMSI) was initiated with a Buy rating and a $24 worth target by Lazard Capital Markets and Arch Chemicals (NYSE: ARJ) which was initiated with a Purchase rating by Sidoti & Co.
We can not stress sufficient that traders must do their due diligence, call the businesses, get the knowledge, consult with your investment advisor and should you wouldn’t have one consider getting one. Put the identical time into investigating these companies as you do if you go to purchase a brand new television, it is only for your safety. When it comes to thinly traded securities stagger your orders or put a restrict order in to keep away from a run up.
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