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Today’s winners point the way forward

Today's Financial News - Posted November 24, 2009

Today's winners point the way forwardThe markets have a lot to think about these days. Fortunately, while investors sit and ponder, a handful of stocks are handing investors big gains.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): It has been an interesting day in the world of equity trading. With fresh data that suggests American consumers remain concerned about the health of their wealth and surprising, but little noticed, word from Washington that the nation’s third-quarter GDP was revised downward, the S&P 500 spent most of the day in red.

Why the GDP revision to 2.85% from original estimates of 3.5% growth did not get more attention is beyond me. After all, the markets soared when the better-than-expected data originally surprised the Street.

Rational markets? Yeah, right.

Beyond the markets shortsighted tendency to discount negative news and over-inflate positive news, there are some stock stories to discuss today.

The first comes from the world of mergers and acquisitions. The past couple of weeks have been fairly busy for the sector, especially for the nation’s smallest companies.

Can you hear me now?

Today it is Iowa Telecom (NYSE:IWA) getting the buyout bid.

Windstream Corp. (NYSE:WIN) is paying $1.1 billion in a mix of cash and stock for the phone company and its 250,000 customers.

Shares of IWA are up by 25% on the day.

With the news of a major acquisition, shares of Windstream have held up fairly well. Shares are down by less than 1% as investors release the expense will lead to a stronger market share and reduced annual expenses.

Windstream executives tell us they believe the acquisition will lead to $35 million in annual synergies.

While investors digest the mid-Western acquisition, Brazilian Telecommunications (NYSE:TBH) shareholders are wondering what in the world just happened.

Shares of the South American phone company surged by a whopping 370% before market regulators hit the emergency brake and halted the stock’s trading.

The only news is there is pending news. Keep a close eye on this one.

Oh yeah, the green sector

Finally, after hibernating for the last three months, there is some action from the nation’s “green” energy industry.

Thanks to word that China’s State Grid Corp. is entering the power-storage market, industry speculation is alive and well. It’s good news for shareholders in companies like A123 Systems (NASDAQ:AONE) that were beginning to wonder where all the hype went. With word of industry movement, shares of the company are up by nearly 20% today.

Anytime we talk “green” energy, you’ve got to understand one thing. It’s all about hype. With little actual demand and an incredible array of variables affecting the industry, the future is far from certain.

Anytime we get a press release that even hints at some sort of market opportunity, share prices will surge. That’s what makes the industry so interesting to follow.

I have a feeling today’s action is the start of a new trend.


Next Article: TFN eNews 11/24/2009: Who is Playboy Enterprises’ new playfellow?

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Posted by Andrew Snyder · Filed Under Featuring..., Investment Strategies 

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One Response to “Today’s winners point the way forward”

  • diana Says:
    November 30th, 2009 at 8:44 pm

    You guys are not pulling our leg like some other publications get a kick and a buck out of! I could keep reading and gleaning something new, sensible and informative, then I ‘ turn the page’ and something else catches my inner eye. The way you make everything so easy to absorb is one of your attributes as is the diversity you have shown. I used to think that I brainstorm too much and pick things apart until I get to the core level, but life is a pretty big puzzle and after I get two little pieces to fit, I’m not fearful of the big picture anymore. I look forward to seeing future reports, maybe I won’t always have to feel like I’m just another ‘newbie’. thanx, Diana

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