It’s Keynesian economics at its finest: Govenment CAN spend a sector out of a slump… as long as it keeps paying people to spend! Could home builders like Beazer Homes (NYSE:BZH) and Hovnanian Enterprises (NYSE:HOV) be rising on anticipated subsidies?

By J. Christoph Amberger

Baltimore, MD: Let’s hear it for government spending the economy out of recession!

Sales of existing homes plunged by more than 40 years in December — more than 12% last year. That’s the sharpest fall since the Great Depression.

Total sales for 2009 ended up about 5% over 2008 levels. And that was with the beefed-up tax credits for first-time buyers.

Of course, just like its brother-in-spirit, the Cash for Clunkers program, the government’s decision of having my taxes subsidize other people’s home purchases on a larger scale than before created its own numerical distortion in the statistics: It condensed sales within the application time frame, setting up the steep collapse right when the expectations of meeting filing deadlines withered.

(Strangely enough, the shares of homebuilders like Beazer Homes USA, Inc. (NYSE:BZH) and Hovnanian Enterprises, Inc. (NYSE:HOV) were trading up over 3% today!)

They may have extended the program, buying further “success stories” of government intervention in the weeks ahead. But another expiration deadline is already lurking in the background. On March 31, the Federal Reserve will end its program to buy mortgage securities to keep home loan rates low. Mortgage rates could rise. They should — since in the era of rampant unemployment, the risk inherent of granting a mortgage even to the gainfully employed is certainly worth more than 6% p.a.

The second round of home buyer tax credit is scheduled to run out at the end of April.

Artificial demand for homes generated by the tax credit and low mortgage rates thus far has prevented real estate prices in many areas from collapsing entirely. Or better, it has delayed that progress.

My suggestion to the White House: Instead of tinkling the money away piecemeal, cut the red tape and purchase the most annoying tracts of defaulted McMansions out right. Then have the Corps of Engineers run a fleet of bulldozers over them, sprinkle some top soil on top — and call it the Obama National Park system.

*** Could anyone be taking him seriously?

Obama has been dangling discretionary spending cuts as a symbol of how opposed he is to the unchecked growth of U.S. debt. The line items he’s talking about don’t amount to a hill of beans when compared to his overall largesse.

But still, silver and precious metals keep ticking down.

I’ll stick with my favorite short-term silver play, Canadian miner Liberty Mines Inc. (TSE:LBE).

When exactly is this going to happen?

I say look for the Q4/FY2009 earnings to come out.

Read more about this in my blog right here!

Article first published on Today's Financial News

Beazer Homes USA, Inc. (BZH) and Hovnanian Enterprises, Inc. (HOV) up despite horrid housing news

The Dow’s experienced the steepest drop since Feb. 2009. What lies ahead?

by J. Christoph Amberger

Baltimore, MD: The weeks started on such a promising note I was fantasizing about a Dow 11,000, giddy at the prospects that Brown would do for you what he did for re-establishing a semblance of balance of power in the United States Capitol.

U.S. stocks fell off a cliff on Friday, finishing a week of heavy losses that erased all gains for 2010. The Dow Jones Industrial Average (DJIA) closed down 4.1% for the week… the S&P was down 3.9%. The Nasdaq was down just 3.6%.

These are big numbers. Reminding uns of the post-Inauguration Meltdown of 2009!

Again, it’s earnings and “uncertainty”. But this time around, it’s especially the ham-fisted handling of the financial industry through the Obama Administration.

A global Bloomberg poll of investors and analysts (who are Bloomberg subscribers — and accordingly appear to have skin in the game of the markets) shows that a whopping 77% of U.S. respondents believe Obama is anti-business. 80% believe only somewhat confident or not confident of his ability to handle a financial emergency.

That sounds like a pretty darn good reason for “uncertainty”!

Meanwhile, Obama keeps blaming the “mess he inherited” — reminiscent of the man complaining of the smell of his neighbor’s dog’s droppings that he painstakingly hid under a truckload of fresh manure…

And again, this meltdown is affecting most asset classes. If you were thinking you were safe holding gold, look at the chart below.

The coming two weeks will be crucial. Again the “January Effect” has been truncated by politics. Tread with caution, hedge to the downside… and use what could be a protracted sell-off to below 9,000 for target buys at depressed prices.

I don’t pretend to know what’s ahead. But I distrust Obama and I distrust the market. Still, last year, my team and I managed to create almost 80 double-digit gainers for members of TFN’s subscription-only service, Hot Stock Confidential.

These days, I try to apply my 20-plus-year experience in the markets to my own blog. Check it out if you will!

Article first published on Today's Financial News

Steepest drop since Feb. 2009: Here we go again!

Apple (NASDAQ:AAPL) is firing up the hype generator. Its new iTablet may be introduced officially as early as this week. Is it worth looking at the stock?

by J. Christoph Amberger

Baltimore, MD: Taking my clue from the prevailing political culture, I decided to nourish my own feeling of entitlement to one of the new Apple tablet computers.

Apple Inc. (NASDAQ:AAPL) is carefully fueling the hype machine, sending out a press invitation via email to “come see our latest creation”.

Now, with the various phones and BlackBerrys out that have more RAM, features and functionality than a roomful of desktop computers 20 years ago, the splash may not be quite as big as anticipated. Then again, who had thought that the launch of the iPhone three years ago completely re-configured the concept of mobile phones.

I wouldn’t mind playing AAPL just on this news. The cost of a share, at $206 a share before market open today, is a bit off-putting. Then again, both AAPL and Google Inc. (NASDAQ:GOOG) have shown that the sky is the limit.

Read Amberger’s full blog entry here!

Article first published on Today's Financial News

Apple’s (AAPL) iTablet may debut this week

Horacio Marquez, contributing editor for Money Morning, reviews his 2009 recommendation for Campbell’s Soup (CPB) and shares his outlook for the company in 2010.

Horacio Marquez (Money Morning):

On June 1 of last year I recommended buying Campbell Soup Co. (NYSE: CPB). It was a contrarian call at the time, since many brokers and independent analysts had rated the stock a “hold.”

That’s because most analysts think of Campbell the same way they think of many other consumer staples businesses – as a stable, slow moving business with no real short-term catalyst for growth.

You see, very few remember the tremendous upside that Warren Buffet realized when he invested in another “dull” staples business, The Coca-Cola Co. (NYSE: KO), just prior to a major overseas expansion.And it’s precisely that kind of campaign Campbell has mounted – expanding its businesses in Russia, China, and other emerging economies to great success.

As investors, we too have been rewarded. CPB’s stock is up 22% since my original recommendation, and had actually risen as high as 35% before some consolidation.

Indeed, it’s important to remember that Campbell’s foreign expansion brings significant benefits in an era of volatile exchange rates.Currently, the company’s sales concentration in the United States exposes it negatively to weakness in the U.S. dollar. And because the dollar has been on a downward trajectory for most of the year, the exchange rate has negatively impacted Campbell’s earnings.

Still, the company’s market dominance and superior brand loyalty allowed it to overcome this liability. Now, the recent strength of the U.S. dollar will put the wind at Campbell’s back. But not for too long, since CPB’s international diversification will eventually bring the company into a currency-neutral environment. Russia and China will drive this effort.

Russia, the largest per capita consumer of soups in the world, is likely to grow some 5% next year. And Campbell’s deal with Coca-Cola Hellenic Bottling Co. SA to distribute its soups in 100 more cities in Russia – which began in August – is likely to deliver a very nice outperformance for Campbell’s when the company reports earnings on Feb. 22. The cold Russian winter will do its trick abroad, while the tough economic situation in the United States will continue to drive sales at home.  . . .

Click here for the rest of Mr. Marquez’s article on Money Morning.

Article first published on Today's Financial News

Campbell’s Soup: Comfort Food for your Portfolio

TFN takes gains on ZAP (OTC:ZAAP), Keryx Biopharmaceuticals (NASDAQ:KERX), and Emtec, Inc. (OTC:ETEC)

Baltimore, MD TFN: TFN closed out of 3 open positions today:

We advise readers of our free editorial reports Today’s Top 3 Penny Stocks and 3 Penny Stocks With Winning Potential to take 19% gains on ZAP (OTC:ZAAP)… 15% on Keryx Biopharmaceuticals (NASDAQ:KERX)… and 61% gains on Emtec, Inc. (OTC:ETEC).

Of course, there are a number of positions that currently show a loss. We still think all these picks we presented to you are darn good stocks… with a fighting chance to make you substantial gains in 2010.

But every investor has different requirements. I encourage you to use the coming 9 days to re-evaluate your losing stocks in your portfolio… and try to offset some capital gains by realizing some losses on stocks you don’t feel as optimistic about any more.

Merry Christmas!Similar Posts:

• TFN eNews 12/23/2009: Last-minute gains before the holidays! – December 23, 2009
• Today’s top 3 penny stocks – October 8, 2009
• 3 Penny Stocks With Winning Potential – November 25, 2009
• Join the Party: PSC cashes out of Xenonics (XNN) for 28% gains – December 4, 2009
• Why biotechs like CombinatoRx (CRXX) make the best penny share speculations – November 20, 2009

Article first published on Today's Financial News

Profits on ZAP (ZAAP), Keryx Biopharmaceuticals (KERX), and Emtec (ETEC)

We are coming to the end of a pivotal year for Sirius XM Radio (NASDAQ:SIRI). With shares falling by nearly 30% in recent months, investors are wondering what is next.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): As we have seen on the political front, hope and change will only get you so far. Sure, those two emotion-inducing words got Obama elected, but now that he hasn’t delivered too much change and the electorate is losing hope, the nation’s leader is facing his lowest approval ratings yet.

It is a similar situation for Sirius XM Radio (NASDAQ:SIRI). Over the last year, investors have been touting the company’s future, especially since John Malone swept in and pulled the company from the grasp of bankruptcy.

But now, with 2009 ready to go into the history books, investors are starting to wonder if the year was worth all the hype. After all, this was supposed to be the year of all years for Sirius.

Looking at the company’s subscriber roster raises plenty of concern. Bullish shareholders will eagerly tell you how popular their company’s offerings have become and the rush of new listeners tuning in. But the figures beg to differ.

This time last year, Sirius has 19 million subscribers. Right now, that figure is just 18.5 million. In the year the company needed growth the most, its revenue base contracted.

So much for hope

Part of the reason for the decline was a horrific year for auto sales. With fewer consumers buying cars, fewer folks are buying radio units with Sirius receivers built in. This will have a lingering effect on revenues in future months.

To be bullish on Sirius you must be bullish on the automotive sector, and I don’t know too many folks shouting about the opportunities in Detroit.

And then, of course, there is the rising risk in Mr. Sirius himself, Howard Stern. Without this longhaired trash talker, Sirius would see its subscriber figures plunge.

Now that Stern’s five-year, $500 million contract is ready to expire, the well-leveraged negotiator is up to his same old tricks, threatening to leave Sirius if he doesn’t get what he “deserves.”

It’s a smart tactic, especially with the backing of a few million ever-loyal listeners, but it spells trouble for Sirius as the company tries to cut its costs even further. Remember, the company has yet to manage a profit. Another expensive contract could delay the event even further.

Delivering change… pocket change

Investors are right to be worried. After hitting a 52-week high of $0.78 per share, shareholders are now sitting on stock worth just $0.57.

A 27% decline is bad enough, but shares are just a stone’s throw away from a critical support level at $0.55. If share price dips below this level, hold onto your hats, the bottom may fall out.

If you happen to be one of the lucky investors that got in the stock at the year’s lows of just a nickel per share, congrats on a fabulous year. But most investors are sitting on much smaller gains, if any. Even worse, there are countless investors still sitting on shares they paid more than $5.00 a piece for.

These folks won’t ever see gains, and unfortunately, investors that got in near the year’s highs may be joining the club.

2010 does not look rosy for Sirius.

If you want to hear more about Sirius and its upcoming action, be sure to sign up for our free daily e-letter in the box above. Volatile plays like this one are a hot topic.Similar Posts:

• Bankruptcy: The word Sirius investors fear the most – September 28, 2009
• Hype thrills… and kills – October 2, 2009
• IPO Strategy: Perfect timing for A123 – September 24, 2009
• Select Comfort: Finally a good night’s sleep – October 6, 2009
• TFN eNews 09/28/2009: The one word Sirius investors fear the most – September 28, 2009

Article first published on Today's Financial News

Only a few folks celebrating at Sirius

For Steak ‘N Shake (NYSE:SNS) it is a roll of the dice that could pay off big time or end in bust. Today’s a big day for the company and its investors.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): Is he the Warren Buffett of cheeseburgers? According to Sardar Biglari’s latest chairman’s letter to investors, Steak ‘N Shake (NYSE:SNS) shareholders are in for a wild ride.

If you are one of these folks, a quick look at today’s share price tells you the action has already started. On Friday, shares of the restaurant chain closed at $14.55. Right now, they are trading for nearly $290.

What gives? How about a reverse stock split worth a 20-to-1 exchange. If you owned twenty shares on Friday, you’ve now got just one, but its’ worth twenty times as much. By forcing shares into triple-digit territory, the company is hoping to show investors the long-term potential of the stock.

Sounds a bit Buffett-esque with his $100,000 price tag for a share of Berkshire Hathaway (NYSE:BRK-A). But cheeseburgers and shakes are a far cry from railroads and insurance. If Biglari wants to compete with the big dogs and live up to his Buffett comparisons, he had better do more than a reverse split.

Buy a railroad?

Under the company’s new strategy, Biglari tells us, Steak ‘N Shake will become a holding company, buying and selling industry-related companies. At first glance, it sounds like a great plan for a company that hasn’t had much luster in the past few years.

As any Buffett fan will tell you, the key to growth lies somewhere in a pile of cash. The more you have, the better you can grow. The recent BNI purchase proves it.

While Steak ‘N Shake’s balance sheet is strong and worthy of a nod, $50 million in cash won’t buy too much growth these days, especially when the big-time competitors are sitting on billions. For Biglari, he is a mom-and-pop store going up against Wal-Mart (NYSE:WMT).

A pile of cash is one thing, but how the company got the cash is another. After all, just a year ago shareholders owned a company with just $7 million in cash. Even worse, 24 months ago they had a claim on just $1.5 million.

Biglari made waves with his recent cost cutting and increased efficiencies, but was it too much, too soon? Any company can load up on cash by foregoing critical expenditures, but soon enough the cuts will come back to haunt the bottom line.

It’s too early to tell if this is the case for Steak ‘N Shake, but to be certain, we will see the results over the next six to twelve months. If sales at McDonald’s (NYSE:MCD) are down, you can bet Steak ‘N Shake is wondering where the crowds went.

Bilgari is making bold moves. If it works, he could be a hero that earns a little-Buffett moniker. If the economy remains weak and his plans experience even the smallest of hiccups, shares could quickly fall below today’s target price.

This time next year, it could be Steak ‘N Shake looking for a buyer.

Article first published on Today's Financial News

Steak ‘N Shake: The Berkshire of Burgers?

It is not good news for YRC Worldwide (NASDAQ:YRCW). As more bondholders refuse to swap for shares, the company’s hopes of success dwindle.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): By all traditional measurements, the stock is dead. The only reason shares are going for a buck each is due to artificial life support that cannot possibly last.

So the question is how long until they pull the plug on YRC Worldwide (NASDAQ:YRCW)? If we judge by the reaction from the company’s bondholders, a visit in front of a bankruptcy judge is not far away.

Let me preface all of this by letting you know right out of the gate I am a biased reporter.

Over at TFN Strategic Trader, we recently racked up gains of 94% playing the company’s ability to stave off the bankruptcy wolves. A well-timed covered call play was all we needed to lower risk and increase our reward.

But over two months since we pulled our gains and fled from the stock. Since then, a lot has happened. Actually, no, nothing has happened. That’s the problem.

Locking up the brakes

As a major trucking company, YRC needed the nation’s economy to come roaring back in a hurry. But ask any truck driver, railroad conductor or barge captain and they will tell you one thing.

”There is not much moving these days.” I heard the words first hand this week.

With shipping demand remaining close to the recession’s lows, YRC has little chance of finding a profit and the cash necessary to deal with its $3.5 billion worth of debt.

So, it did what any company would do. It kindly asked bondholders to turn the debt into stock. It was the equivalent of asking to trade a beat up old Ford for and even uglier old Huffy.

In bankruptcy, bondholders won’t get all they are owed, but they know they will get more than any shareholder. That’s why when the company recently offered a debt-to-equity exchange to its bondholders, they got a you-gotta-be-kidding-me response.

So far, YRC has been forced to “extend” its exchange deadline several times in hopes of pushing a few investors off the fence. If the deal doesn’t happen, they will pull the plug very soon.

YRC is on life support. Unless a miracle happens and bondholders make serious concessions, the company is trucking its way to bankruptcy court.

We made our money on the company. If you haven’t made your share, don’t try to do it now. There is trouble ahead.Similar Posts:

• Bankruptcy: The word Sirius investors fear the most – September 28, 2009
• Select Comfort: Finally a good night’s sleep – October 6, 2009
• Only a few folks celebrating at Sirius – December 22, 2009
• Three small caps to beat the headwinds – October 26, 2009
• Forget Dubai: ValueVision is bigger news – November 30, 2009

Article first published on Today's Financial News

Bad news for YRC Worldwide

It is a pivotal day for the airline industry. With its latest earnings figures due out after the closing bell, that may not be good news for AAR Corp. (NYSE:AIR).

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): When I married my wife, I should have hired a personal travel agent. With family in North Dakota, Idaho, Washington and Alaska, she has a constant eye on airline prices.

The second a deal hits the wires, she knows about.

With the holidays upon us, she’s found some great deals. It is good news for us and our family, but bad news for the airline industry. Lower fares mean lower margins and, in this economy, even larger losses.

The airline industry is buzzing today, not so much because Boeing (NYSE:BA) is expected to finally get more than the front tires off the ground of its 787, but because the International Air Transport Association (IATA) announced airlines will lose some $11 billion this year and another $5.6 billion in 2010.

The pessimistic outlook is significantly below previous estimates, driving down share prices across the industry.

A costly mid-air stall

With stubbornly high fuel costs and heavy competitive discounting, many airlines are unable to take advantage of recent wage concessions and other fixed-cost reductions. Even with a rebounding global economy, vacationers are staying home and business travel remains well below recent levels.

That is not good news for the nation’s largest carriers. Across the board today, shares of companies like Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV), UAL Corp (NASDAQ:UAUA) and AMR Corp. (NYSE:AMR) started the day in the red.

After a run of decent gains started in early November, the industry’s shareholders may see their recent profits begin to erode.

Today’s news came at a pivotal time for AAR Corp. (NYSE:AIR) shareholders. The aviation-industry service provider will release its latest quarterly earnings figures after today’s closing bell.

Turbulence ahead?

Even if the word is positive, shareholders may have a tough time swallowing a cheery long-term outlook. Even worse, if the figures miss analyst estimates, the fallout during tomorrow’s trading session could be rough.

The best thing that could happen for airlines right now (besides a bailout) is a significant drop in crude prices and a stronger dollar. A strong greenback will get tourists boarding high-margin overseas routes and lower crude costs will significantly boost margins across the board.

If you are like me and believe these criteria are on their way to being met, then you’re an airline bull. If you think recent trends are a mere blip in the charts, then, like hordes of analysts, you’re an airline bear.

We will find out over the next two months which direction the industry is heading. No matter where it goes, there is no doubt this is a pivotal day.

Article first published on Today's Financial News

What’s under the hood of AAR?

Emtec, Inc. (OTC:ETEC) and Kerex Biopharmaceuticals (NASDAQ:KERX) have been clocking in with double-digit gains for TFN readers

by J. Christoph Amberger

Baltimore, MD —  TFN: Back on Nov. 25, Laura Cadden listed Emtec, Inc. (OTC:ETEC) as one of 3 Penny Stocks With Winning Potential. (In case you missed it, you can read that Report here…

If you took her advice and picked up shares of that free TFN recommendation that day, you’re a happy camper:

That stock is up over 40% gains from our $0.70 buy price!

So why haven’t we issued a sell recommendation, you understandably ask? Laura’s bullishly anticipating another 30% in gains!

But that’s not all…

In her Oct. 8 Report, Today’s Top 3 Penny Stocks, Laura recommended Kerex Biopharmaceuticals (NASDAQ:KERX).  Kerex is up over 25% from our $2.26 entry price. But she thinks it could hit $3.50 or better!

That means if you missed getting in earlier you still have a chance for profits on these two stocks… not to mention the other 4 penny stocks listed in these reports that are still within her buying price range.

Laura was uncharacteristically obnoxious about her recommendation: “Who’s your buddy? Huh? Who’s your pal?” Yes, Laura, we know — you are! (And if you’d like to learn more about our top TFN penny stock picks, check out our news investment research service, Penny Stock Confidential right here !

Article first published on Today's Financial News

TFN penny stocks: Emtec, Inc. (ETEC) and Kerex Biopharmaceuticals (KERX) spell free money for TFN regulars

The biotech sector has been a hot one this year. That’s good news for the companies on the auction block and bad news for the bidders.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): There’s no doubt it has been a strong year for the nation’s biotech sector. The industry known for its wild, hair-raising rides is renowned for handing huge rewards to savvy investors… at least for those willing to take the risk.

To be certain, if your goal was to beat the markets in 2009, the biotech sector was the place to do it. Unless something dramatic happens between now and the end of the month, biotechs will have outpaced the broader markets nearly two to one over the past twelve months.

The S&P is up 18% year-to-date, while the biotech sector (according to the AMEX Biotech Index) is up by a whopping 39%.

That kind of figure is good news for Facet Biotech (NASDAQ:FACT) as it mulls its future.

Since September, Biogen Idec (NASDAQ:BIIB) has had its eye on a Fact takeover. Its first offer of $14.50 per share was promptly rejected. And now we are receiving word that the company’s second tender offer of $17.50 has been unanimously rejected by the company’s board.

More money, please

According to the letter released to shareholders this morning, Fact’s top brass believes Biogen’s offer significantly undervalues its product pipeline and overstates its liabilities.

What’s even better for investors, however, is the fact that the board is essentially putting a for sale sign on the company’s shares. “Beat this price and we’re yours,” their actions say.

The news is good for share price. As I write the stock is up by nearly three percent, surpassing Biogen’s tender price by nearly forty cents.

What comes next?

It’s a wait-and-see game for shareholders. Obviously executives are expecting (or at least hoping) for a knock at the door from Biogen’s rivals. If a better offer comes, today’s investors could have a nice play on their hands.

But if the phones don’t ring and Biogen remains the sole bidder, even the current $17.50 offer could be in jeopardy. After the year we’ve had, anything is possible. The threat of a double-dip remains strong.

According to today’s action, the Street is not confident of a bidding war anytime soon. A moderate increase in share price indicates the big bidders believe another offer, only slightly larger, will come from Biogen.

Only time will tell.Similar Posts:

• TFN eNews 12/10/2009: Could this penny stock double on news again? – December 10, 2009
• Select Comfort: Finally a good night’s sleep – October 6, 2009
• No bailout needed: Good news from the rags – September 29, 2009
• Is there no end to China’s buying spree? – September 22, 2009
• Three stocks you must watch today – December 2, 2009

Article first published on Today's Financial News

Facet Biotech: Open for bidding

The government is busy propping up the economy once again. Just when it looked like TARP was wrapping up, Geithner goes and extends it. That can’t be good.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): It’s an exciting day on the markets. And it’s not just because one of TFN Strategic Trader’s plays is up by over 15%. It’s exciting because the government is meddling with the markets once again.

And that means somebody’s gonna get rich!

In case you missed the news, Tim Geithner told Congress this morning that he is extending TARP until October of next year. Yep, with just the stroke of the pen, this one, unelected man has the power to control some $700 billion worth of taxpayer money.

Aren’t emergency bailouts great?

The action means you can say so long to the dollar’s recent recovery. As I write, the greenback’s down against the euro and the yen.

There is good news, however. (I’m naturally assuming you feel more government control is bad news.)

There’s a handful of stocks making big gains today, and yes, one of them happens to be in the TFN Strategic Trader portfolio.

Let’s start with it.

We first entered a cover call position on RealNetworks (NASDAQ:RNWK) after I noticed a suspicions intra-day volume spike. Somebody wanted in and they wanted in bad.

A clue, Sherlock

We took advantage of the clue, waited until prices dropped and made our move. It’s paying off today.

Shares of the popular software provider are soaring after an upgrade from JP Morgan.

Thanks to a ruling yesterday in its arbitration with VeriSign, the ratings company lifted its stance from underweight to neutral.

JP Morgan “remains cautious” about the company’s outlook. Isn’t that interesting? It’s exactly why we entered a covered call instead of a full-on options play.

I wonder if the folks at JP Morgan are subscribers?

Next up, EF Johnson Technologies (NASDAQ:EFJI).  Remember how I said that government meddling means somebody’s going to get rich? Well, you don’t have to tell it to these shareholders.

Shares of the wireless communication provider are up by double-digit proportions today as the company announced the IRS has selected the company as one of its approved P25 radio contractors.

For a billion-dollar company, this would be just another day in the world of business. But for a $38 million penny stock, its news worth celebrating.

This is a company to watch over the next few months, to be sure.

As you know, I’m a big fan of the penny-stock market. There is risk, but so often, the reward is much, much greater. EF Johnson proved it today.

As much as I hate it when the government manipulates the markets, it’s hard to deny it has the power to make investors rich. Might as well join them.Similar Posts:

• Protect yourself against the double dip – October 2, 2009
• Three small caps to beat the headwinds – October 26, 2009
• David vs. Goliath: Size matters – October 28, 2009
• Forget Dubai: ValueVision is bigger news – November 30, 2009
• Ocean Power Technologies: Harnessing the motion of the ocean – October 13, 2009

Article first published on Today's Financial News

The puppet master is at work once again

It’s another busy day for Wall Street. Thanks to a strengthening dollar and weaker-than-expected fiscal results, investors have a lot to think about.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): It is yet another interesting day on Wall Street. The dollar is stronger, gold is down and a handful of major American companies are reporting worse-than-expected figures.

If you think a strengthening dollar was going to hurt the equities market, wait until what happens when we pair a stronger dollar with a weaker economy. It won’t be pretty.

When I first fired up my computer, long before the sun popped across the morning horizon, futures looked relatively solid thanks to word from FedEx (NYSE:FDX) that revenues have been stronger than expected.

With the aid of global exposure and a quarter that has seen the dollar weaken significantly, the company’s top-line outlook looks better than most expected.

But the jubilation ends there.

About this time last year, McDonalds (NYSE:MCD) was a consistent market beater. As more and more Americans moved into the poorhouse, their appetite for comfort foods like Big Macs and Chicken McNuggets rose steadily.

But now that unemployment has nearly doubled and is sitting in double-digit territory, fewer folks are treating themselves to the delights of the Golden Arches. According to this morning’s report, same-store sales are down by 0.6%.

It’s the second straight monthly decline and is not a good sign for a company that is often touted as a recession-resistant play.

Cutting the fat

Another important market mover is 3M (NYSE:MMM), the maker of all things chemical. Shares of the globally important company are down today after management announced a lower-than-anticipated outlook for the year.

Instead of earning the $4.57 per share analysts predicted, 3M is now expected to bank $4.50 to $4.55. Not good news from a global conglomerate.

So where’s the good news?

It’s right where we expect it… in the small-cap sector.

Two companies worth watching today are ClearOne Communications (NASDAQ:CLRO) and Local.com Corp. (NASDAQ:LOCM).

Shares of Local.com, an $80 million business advertiser, are up by over 5% at the moment thanks to news updated fiscal guidance that paints a prettier-than-expected picture.

According to the company’s management, shareholders can expect to see annual revenue in the ballpark of $56.1 and $56.5 million for the year. That’s an increase of 47% above last year’s figure.

During a period when advertising budgets were slashed, the growth should be a clue of what’s to come for today’s investors.

As for ClearOne, this one is interesting because there is no news. It is a down-and-dirty volume spike, meaning it could be a momentary blip or it could be a sign of positive things to come.

This is a small, illiquid stock, but the action proves somebody wants in.

This is one to keep a close eye on over the next few days and weeks. Shares have surged by over 10% during the past week.Similar Posts:

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• OshKosh vs Cat: Not much of a fight – October 20, 2009

Article first published on Today's Financial News

A lot to think about today

Thanks to Obama’s military maneuvering, investors have a shot at another strong round of profits. Get ready for the war bump.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): As we get older, the list of regrets grows. It’s natural. The more days we put in, the more mistakes we make. Hopefully, the list of successes grows even faster, but today’s about the mistakes.

We’ll say it’s in honor of Tiger Woods, the last celeb to bit nibble the forbidden fruit.

We all have regrets. The house we should have bought. The car we shouldn’t have sold. The girl we should have taken to prom. Or the pilot we shouldn’t have trusted.

And of course, there are the stocks we should have bought and the one’s we never should have touched. The more you invest, the longer your list will grow.

For a good friend of mine, one of those stocks was JLG. Don’t ask you broker to try to find it. It was bought out a long time ago for a sizeable premium.

My good buddy found out about the company’s profit potential from a colleague at the office. It was one of those elevator-type conversations. Most of them never amount to a hill of beans, but every once in a while, they explode.

Of course, my friend, a conservative Depression-era penny pincher, never pulled the trigger. Instead, he watched for months as the stock climbed and climbed.

His pain was over the day OshKosh (NYSE:OSK) announced it would pay a sizeable premium for JLG. He lost out on triple-digit gains, but at least the old timer didn’t have to watch the action any longer.

I’ve been doing the work for him.

I first started covering OshKosh for TFN back in December, when shares were going for just $5.75 or so. Today, those same shares are going for over $40, an increase of 600% over the past year.

Why the big climb? Like a lot of things this year, you can blame Uncle Sam.

As a heavy-equipment manufacturer, OshKosh was in the right place at the right time when it came time to dump money into the fight in Afghanistan.

The Wisconsin-based company has scored hundreds of millions worth of military contracts over the last year.

And thanks to last week’s decision by the nation’s top commander, there’s a very good chance that action will continue through the next year, maybe longer. After all, thanks to the weekend’s political bantering, Obama’s 18-month plan for troop withdrawal has now turned into a three- or even four-year plan.

That’s good news for war suppliers.

The action brings me back to one of my long-time investing philosophies. When it doubt, buy booze, babes and bullets. There’s always a market somewhere.

Right now, investors are preparing for yet another “war bump,” taking advantage of the nation’s plans to take the war in Afghanistan to a new level. That means company’s like OshKosh and the plethora of defense-industry firms are worthy of a look.

As the nation sets its eyes on a recovery, contrarian investors have their eyes on defense. Throughout the country’s history, some of the best investing opportunities have come on the heels of major military moves.

Article first published on Today's Financial News

Get ready for the “War Bump”

Sometimes, you just got to move: TFN Penny Stock Confidential members take 28% gains on Xenonics Holdings Inc. (AMEX:XNN). This makes average gains of 48% with an average holding period of just 8 days this month!

by J. Christoph Amberger

Baltimore, MD TFN: Members of TFN’s high-volatility penny share service Penny Stock Confidential were instructed to take gains on Xenonics Holdings Inc. (AMEX:XNN) this afternoon. The stock was up close to 11% on no discernible news whatsoever. But gains seem wobbly and I can’t tell if this will continue.

Having entered the position on November 10 and sold today at $0.80.

Of course, there’s always the danger that we sell too soon. But then, holding too long is just as bad:  I’m still heartsick about not taking 100% gains on MMRF two weeks ago,)

This market seems to be hostile to extended price spikes. I’d say let’s finish the week by taking a quick 28.16% off the table.

Which means that so far, PSC has generated average gains of 46.8%, with an average holding period of 8 days in the first month of our existence. Not to shabby, if I say so myself.

I expect movement in CombinatoRx, Incorporated (NASDAQ:CRXX) and ImmunoCellular Therapeutics, Ltd. (OTC:IMUC) early next week, so keep your eyes peeled for an alert.

See what all the fuss is about and become a Penny Stock Confidential member!Similar Posts:

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• Sell Great Basin Gold Ltd. (GBG) for 19.2% gains: HSC cashes in on record gold prices – December 3, 2009
• HSC takes 24.7% gains on Tianyin Pharmaceutical (AMEX:TPI) – November 17, 2009
• Interesting jump for Sinobiopharma (SNBP) – January 18, 2010

Article first published on Today's Financial News

Join the Party: PSC cashes out of Xenonics (XNN) for 28% gains