TFN eNews 10/21/2009: Plenty of opportunities tomorrow!
Published via e-mail broadcast on October 21, 2009
In today’s TFN eNews:
* Gambling on this gambler could pay off nicely!
* Silver continues to move
* Swine flu redux
Dear TFN eNews reader,
Spooked by the reality of realty yesterday, stocks turned back into the green today — at least for most of the day! “It’s having a strong effect on our TFN Strategic Trader portfolio,” writes TFN’s options strategist Andrew Snyder.
“The biggest mover, by far, is our Penn National January 30 calls (UQNAF). Thanks to an earnings report that showed things could have been a whole lot worse, the contracts are up by more than 50% so far today.”
Now, Penn investors aren’t bidding up share price because of last quarter’s financials. Frankly, they were horrific!
For one, there’s not not much good news out of Vegas these days. With “staycations” all the rage and corporate event planners diligently avoiding any destination that sounds remotely luxurious, Sin City is desperate for business. It doesn’t help at all that even the president is actively discouraging anyone who made himself dependent on government handouts from convening in Vegas.
But even during a nasty recession, Americans still drink, smoke and gamble what’s left of their money.
They just do it closer to home.
“That’s good news for regional gaming operators like Penn National (NASDAQ:PENN) and its 26,000 slot machines and 374 gaming tables spread across more than a dozen states,” says Andrew. “Seems like Penn is everywhere gambling is popular these days. Everywhere but Las Vegas. And today, shareholders are getting rewarded for the strategic move.”
(More about PENN in his TFN lead story today: http://www.todaysfinancialnews.com/investment-strategies/penn-national-its-not-gambling-if-its-a-sure-thing-10213.html)
***A newsmaker to watch tomorrow is Xerox (NYSE:XRX). With the company expected to release its latest quarterly results early tomorrow, TST’s Xerox calls are ready for a surge ahead.
“While this is one of the more speculative plays in our portfolio right now, we don’t need much to send our options deep into profitable territory. From current prices, we need underlying shares to move forward by just $0.14. The markets are becoming tough to please, but I don’t foresee any problems overcoming the hurdle by this time tomorrow. If my sentiment changes, you’ll be the first to know.”
As for the rest of the week, Andy sees more focusing on the dollar and the commodities markets. With good reason, since the greenback again dropped past the $1.50 mark against the euro today. With oil hitting fresh yearly highs and gold continuing its record-breaking streak, we have all sorts of opportunities on our hands.
***Among them is one of our favorite commodities plays:
Our TFN Hot Stock Confidential silver surfer Silver Wheaton (NYSE:SLW) was just upgraded to “Buy” from “Neutral” at BofA/Merrill. Volume is up considerably in the last couple of days. A number of other services have jumped on the bandwagon.
HSC members are currently sitting on 54% gains on this stock… and are holding on for more. Laura Cadden’s silver stock pick from last week already’s up 7.5%. We’re still expecting additional gains of at least 20% on each from their current price levels.
Gold has entered a price range that has jewelers getting worried… especially in big markets like India. Speculative momentum may be strong at the moment, but let’s not forget that after two years of high-intensity gold-for-cash campaigns draining supplies from consumers’ hands and back into inventories, there’s currently no lack of physical gold.
There is a distinct lack of retail jewelry buying, however. I think by early January, demand statistics may be good for a temporary withdrawal in bullion prices. Meanwhile, silver should benefit from consumer downscaling!
***I would call myself a “swine flu survivor” were it not for the fact that there’s just no caché in it. No support groups. No charity events. No ribbons.
And, quite honestly, I’ve had common flus that were harder on me than H1N1.
Plus, with a million cases in the States, the novelty of it just aren’t there anymore: Even the CDC stopped tracking individual cases after the first million. And my kids are no longer considering it weird that a quarter of their fellow students didn’t show up for school on any given day.
It’s like it was with children. For the first, you still boiled bottles for hours to sterilize them. For the third, you just poured milk straight from the carton. (I exaggerate… please don’t email me accusing me of child neglect. My daughter is thriving, thank you very much!)
Still, people are fumigating and splashing on sanitizer. News organizations report a 17% increase in hand sanitizer sales in the year ending Sept. 6. For August, sales increases reportedly came in 50% higher than last year.
(I blame it on the cold fall: Just last weekend, I used half a bottle of the stuff to get some very wet wood started in my fire place.)
Other preventative Swine flu paraphernalia are also flying off the shelves. Here at TFN, we’ve been looking Winner Medical Group, Inc (AMEX:WWIN), which makes a variety of protective woven and nonwoven medical textiles, including surgical masks and tape, gauzes, and clothing.
At $6.50 a share, it’s a bit steep… but I think the moment we hear of a H1N1 outbreak in China, a cautious investment may well pay off.
*** 3 tiny stocks you need to own now!
This upstart financial information network has generated 63 double-digit gainers so far in 2009! Find out what “ridiculous” method they found to reliably pick winning stocks. You need to read this! http://www.todaysfinancialnews.com/HSC/ridic/EHSCK901.html
*** Quote of the Day:
“The three branches of our federal government are no longer bound by the Constitution as the framers envisioned and what is worse is American ignorance and acceptance of such rogue behavior.”
– Walter Williams, Creators.com
Recommended Reading:
Penn National: It’s not gambling if it’s a sure thing
Turnaround for Sinobiopharma (SNBP)
Q4 Update: TFN Complete Guide to Stem Cell Stocks under $10
Today’s Top 3 Financial News Stories:
Newsmax.com – Democrats Balk at Posting Healthcare Bills, Other Legislation Online “As Congress prepares to consider historic changes to the nation’s health care system, Democratic leaders are balking at supporting a change in the rules that would let the public see the bills’ texts 72 hours before a vote.”
Bloomberg.com — China’s ‘Growth on Steroids’ Risks Next Slowdown “China’s stimulus-induced lending binge probably propelled growth in the third quarter to its fastest pace in a year. Now, policy makers have to figure out how to wean the economy off state support.”
WSJ.com — Euro Tops $1.50, Raising Economic Concerns “The dollar crossed the key $1.50 threshold against the euro today before a slight pullback, raising more concerns in Europe about the strength of the euro and the impact it might have on any nascent recovery.”
Cordially yours,
J. Christoph Amberger
Executive Publisher, TodaysFinancialNews.com
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