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Friday, November 13th, 2009
9:15am (EST)
Abercrombie & Fitch (ANF, $36.76) is up 5% this morning in pre-market trading after beating Wall Street’s earnings expectations. The company said it earned $39 million, or $0.44 a share, versus $64 million, or $0.72 a share, in the year-ago period.
The 40% plunge in third-quarter earnings should have sent the shares plunging but we didn’t feel too comfortable shorting this one. We have been talking about how shares were right as resistance ($37-$38) but Wall Street has chosen to look forward to the company’s future prospects and is ignoring today’s lousy report. This is why trading earnings are so tricky…
Shares are up $2.39, to $39.15, and if the gains hold the stock will be at a new 52-week high…
We have a great story in the Members Area this morning on Netflix (NFLX, $58.19, down $1.25) and why you might want to take a look at the company.
Bottom Line: We think Netflix could be a $100 stock by next summer.
If so, find out how you can make 10x or more on your money on the RIGHT option trade. In other words, if we are right with our new option trade this morning, for every $150 you invest it could be worth $2,000. Or $1,500 into $20,000. We show you how this morning…
Futures are up as we head to press…Dow futures are up 17 to 10,206 meaning we are headed for a slightly higher open this morning.
Tags: Abercrombie & Fitch, momentum options, MomentumOptionsTrading.com, option trading picks, options help, options mentoring, options track record, options trading Posted in Company Commentary, Earnings, Market Analysis | Comments Off
Thursday, November 12th, 2009
12:50pm (EST)
Intel (INTC, $19.88, up $0.04) and Advanced Micro Devices (AMD, $6.51, up $1.19) have buried the hatchet after agreeing to end all outstanding legal disputes between the companies, including antitrust litigation and patent cross license disputes.
This was certainly a surprise and as you can see, investors think AMD benefited the most. And why wouldn’t they? Intel will also be reaching in its pocket to pay AMD $1.25 billion.
Intel was up over $20 earlier this morning but is pretty much flat while AMD is holding its 20% pop. Here is what the two companies had to say:
“While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes and enables the companies to focus all of our efforts on product innovation and development.”
Under terms of the agreement, AMD and Intel basically have a new 5-year cross license agreement deal and both parties will give up any claims of breach from the previous license agreement.
It would have been sweet to have gotten in the AMD November 5 calls (AMDKA, $1.50, up $1.09) YESTERDAY as they are up 265% today but don’t go chasing…
We were stopped out of our Wal-Mart (WMT, $53.57, up $0.60) trade this morning for a 17% profit but many of you wrote to say your returns were much better. Some of you made upwards of 50% which brings up a good point. We often get emails saying there is no way you can duplicate our portfolio results (which can be viewed anytime) but here is an example of where subscribers did make better returns.
It also happened with Priceline.com (PCLN, $199.77, up $2.97) as some of you made over 500%. So, see, it all depends on the market and what YOU feel comfortable with and what your exits and entries are.
Look, we are going to put you in a lot of good trades and everybody is going to have different results. Our goal is to make you money and you can never go broke by taking a profit. If you take profits you always have another trade and that is what we do. We trade and we don’t fall in love with a position.
The Dow is currently down 47 points to 10,243 as we head to press but we see some more trades on the horizon. Current subscribers, please check the Members Area for the update on Wal-Mart.
Tags: AMD, Intel, momentum options, MomentumOptionsTrading.com, option trading picks, options help, options mentoring, options track record, options trading, Priceline.com, trading options Posted in Company Commentary, Earnings, Market Analysis, Mergers and Acquisitions, Option Trades | Comments Off
Thursday, November 12th, 2009
9:15am (EST)
Wal-Mart (WMT, $52.97) reported 3Q earnings before the bell that came in better than Wall Street’s expectations. The world’s largest retailer posted a profit of $3.24 billion, or $0.84 a share. Expectations were for 81 cents, so the company beat by 3 cents. For 4Q, Wal-Mart sees earnings coming in between $1.08 and $1.12 a share, versus estimates of $1.12.
On the negative side, revenue came in at $99.4 billion, up from $98.3 billion but the Street was looking for $99.9 billion. Folks, they may have missed revenue numbers…who cares. Look at how much money that is. In ONE quarter the company’s sales hit $100 billion you might as well say…wow.
In early morning trading…the stock…..is up. The stock did lose a little luster when the news first came out at 8:30am but it is shortly after 9am and the stock is showing a bid of $53.45 and the ask was $53.50. This was our retail play from yesterday and current subscribers appear to have a winner, winner chicken dinner on their hands…check the Members Area for the update.
As we head to press, Dow futures are lower by 27 which means we might be a little weak at the open today.
Tags: momentum options, MomentumOptionsTrading.com, option trading picks, options help, options mentoring, options track record, options trading, Priceline.com, trading options, Wal-Mart Posted in Company Commentary, Earnings, Option Trades | Comments Off
Wednesday, November 11th, 2009
1:00pm (EST)
Toll Brothers (TOL, 21.13, up $2.74) is up 15% today after surprising Wall Street with some rather upbeat comments ahead of its earnings. The company said its new contracts are up over 40%, and that it expects 4Q revenue will top the Street’s expectations.
Revenue for the company is expected to come in at $487 million, well ahead of the market estimate of $386 million. Comments from the CEO:
“We have definitely progressed from one year ago. The shock to the financial system in mid-September 2008 that shut down the capital markets appears to be mostly behind us.
We have been cautious on the sector because we didn’t want to go long or short because of the uncertainty but this is the second straight quarter that Toll Brothers has said something “hot”. Something to keep an eye on…
Toll Brothers is expected to release earnings on November 23rd.
Other stocks in the sector also got a bump; KB Home (KBH, $15.49, up $0.81), Lennar (LEN, $15.09, up $0.79) and Pulte Homes (PHM, $9.95, up $0.49) are all up over 5%.
We also wanted to update our trades one last time before we go today. We got some breaking news on our retail trade that we just sent out. Also, our Priceline.com (PCLN, $197.10, down $7.12) was closed as the $7.50 stop was taken out. The official results for our 2009 portfolio shows a gain of 468%!
Current subscribers, please check the Members Area for the updates.
Tags: KB Home, Lennar, momentum options, option trading picks, options help, options mentoring, options track record, options trading, Priceline.com, Pulte Homes, Toll Brothers, trading options Posted in Company Commentary, Earnings, Option Trades, Sectors, Stock Earnings, Trading Tips | Comments Off
Wednesday, November 11th, 2009
11:30pm (EST)
Current subscribers, we have a NEW TRADE in the Members Area and it is a play on retail.
Tags: momentum options, option trading picks, options help, options mentoring, options track record, options trading, Priceline.com, trading options Posted in Hot Stocks | Comments Off
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Abercrombie & Fitch Beats Estimates
Friday, November 13th, 2009
9:15am (EST)
Abercrombie & Fitch (ANF, $36.76) is up 5% this morning in pre-market trading after beating Wall Street’s earnings expectations. The company said it earned $39 million, or $0.44 a share, versus $64 million, or $0.72 a share, in the year-ago period.
The 40% plunge in third-quarter earnings should have sent the shares plunging but we didn’t feel too comfortable shorting this one. We have been talking about how shares were right as resistance ($37-$38) but Wall Street has chosen to look forward to the company’s future prospects and is ignoring today’s lousy report. This is why trading earnings are so tricky…
Shares are up $2.39, to $39.15, and if the gains hold the stock will be at a new 52-week high…
We have a great story in the Members Area this morning on Netflix (NFLX, $58.19, down $1.25) and why you might want to take a look at the company.
Bottom Line: We think Netflix could be a $100 stock by next summer.
If so, find out how you can make 10x or more on your money on the RIGHT option trade. In other words, if we are right with our new option trade this morning, for every $150 you invest it could be worth $2,000. Or $1,500 into $20,000. We show you how this morning…
Futures are up as we head to press…Dow futures are up 17 to 10,206 meaning we are headed for a slightly higher open this morning.
Tags: Abercrombie & Fitch, momentum options, MomentumOptionsTrading.com, option trading picks, options help, options mentoring, options track record, options trading
Posted in Company Commentary, Earnings, Market Analysis | Comments Off