TFN eNews 11/24/2009: Who is Playboy Enterprises’ new playfellow?
Published via e-mail broadcast on November 24, 2009
In today’s TFN eNews:
* Red tape creates gains yet again
* 60% gains since Friday!
* Playboy’s new playmate
Dear TFN eNews reader,
Last Friday, I alerted you to a developing “situation” involving one of our favorite penny stocks, CombinatoRx Inc. (NASDAQ: CRXX).
The U.S. Food and Drug Administration (FDA) today advised CRXX soon-to-be merger buddy Neuromed Pharmaceuticals Inc. that it will put off making a decision on whether to approve the companies’ pain drug target for three months. The FDA says it will now complete its review by Feb. 22, 2010.
This is actually very good news for shareholders of CRXX. You see, the delay in approval means that they will end up owning a larger share of the joint company than they would have had the approval been granted this month.
The stock traded up to $1.20 today… a gain of close to 40% since we recommended it to our penny stock traders!
*** Last Friday, the Members Only Update of the TFN eNews tantalized with a developing situation in a contracting dispute between Pennsylvania-based “hog” manufacturer Harley Davidson and a labor union. TFN Strategic Trader Andrew Snyder wrote:
“I recommend buying a specific set of call options. When shares pop on the news of a ratified contract and reduced risk, you’ll be able to lock in gains just in time for the holidays. This is a moderate- to high-risk play, but the reward potential is high.”
Looks like Andrew’s on a roll! Not only did his natural gas positions soar, allowing his members to take gains of up to 400% last week. This latest play surged to gains of 60% in just a couple of days!
“With gains of 60% since last Friday, sell your Harley Davidson December 28.00 calls (HOGLB). As for our natural gas plays, the situation looks as good as ever. Prices gained some ground last week and yesterday, but are quickly giving up any forward progress.
“Last week’s inventory report showed yet another strong injection, with most analysts expecting no withdraws in November. It bucks the long-term trend as this is usually the month with the first weekly withdraws. Word of another injection is fantastic news for our put contracts. We are currently sitting on gains of over 40% from the contracts. I expect that figure to grow substantially over the next two weeks. Continue to hold all positions.”
To become a TFN Strategic Trader member, just click here: https://web-purchases.com/TST/WTSTKA04/location.html
*** Good news for the bunny bulls. There is more in the way of confirmation today that Playboy Enterprises (NYSE:PLA) is ready for new ownership.
Word that the company is outsourcing its magazine operations is strong evidence the company is focusing on shoring up the value of its iconic brand.
According to reports this morning, Playboy’s sending its publishing work to American Media Inc, the nation’s fourth-largest magazine publisher. With titles like Men’s Fitness, Flex, Shape, and, suitable-enough, FitPregnancy, Playboy’s content offering will fall right in line with current product lines.
There are two reasons this is good news for Playboy shareholders: First, consider it the equivalent of installing new carpet and a coat of paint before selling a house. Magazine operations (the equivalent of 70’s style shag carpet) have been lackluster at best thanks to the Internet’s “freebies.”
By sending the daily workings to American Media, Playboy hopes to have its magazine back in the black within two years, after losing $8 million in 2009. For many potential buyers, especially those that simply want that black-and-white bunny logo, getting the magazine to at least sustain itself is a strong selling point.
But wait. There’s more… read on: http://www.todaysfinancialnews.com/us-stocks-and-markets/more-good-news-for-playboy-10411.html
*** The Three Best Dividend Stocks for 2010!
TFN’s premium service, Hot Stock Confidential, just issued a free Bonus Report titled 3 Top Dividend Stocks. These three energy-related companies have a spotless track record paying out their profits to shareholders — to the tune of 10.31%, 10.43%, and 14.75% yields, respectively.
And the best part?
Only one of these stocks is more expensive than $20! https://web-purchases.com/HSC/EHSCKB01/
*** TFN Insider Report:
TFN eNews readers report on the actualities of their economic environment:
“We are presently leasing for the past two years in Melbourne Beach, Florida. We live in an oceanfront condo overlooking the Atlantic Ocean, and semi-retired. We’ve gotten a kick out of real estate on this island with ubiquitous For Sale, For Rent, Vacation Rental, Sale by Owner, Available for Purchase, and now my personal favorite photo of ‘Buyer Provided By XYZ’. Usually if there’s a sale, then the sold sign with the listing broker is left for an eternity — or the next hurricane that destroys all the signs. This sign attached is our first Buyer Provided By is the first we have seen and we wish to share this moment.” — TFN eNews reader Mark B.
Become a TFN eNews contributor! Please send us your own update of how reality looks like where you live: Email me at support [at] todaysfinancialnews [dot] com!
*** Members’ Only Update:
TFN’s Laura Cadden issued an
early Hot Stock Pick for members of Hot Stock Confidential:
“Right now is the perfect time to pick up shares of the computer game maker. Profits from this cash-cow franchise will continue to pour in, and then there’s a half-dozen other winners. The company has no debt, is repurchasing shares, and has good fundamentals. Works for me! I recommend you pick up shares under $11.45 and hold on for at least 20% gains in the next six months.”
Click here to become an HSC member: https://web-purchases.com/HSC/EHSCKB01/
*** Quote of the Day:
“Academics who have purposely hidden data, destroyed information and doctored their results have committed scientific fraud.” — Washington Times.com
Recommended Reading:
Snyder: More good news for Playboy
Watching the dollar: No more Chicken Little
Linn Energy (LINE) is one of HSC’s Top 3 Dividend Stocks
Today’s Top 3 Financial News Stories:
TheHill.com – Dems push Wall Street $150B stock tax “Under a bill being drafted by Democratic Reps. Peter DeFazio (Ore.) and Ed Perlmutter (Colo.), the sale and purchase of financial instruments such as stocks, options, derivatives and futures would face a 0.25 percent tax.”
APNews.com — Economy’s rebound not as strong as first thought “The economy grew at a 2.8 percent pace last quarter, as the recovery got off to a slower start than first thought. The Commerce Department’s new reading on gross domestic product wasn’t as energetic as the 3.5 percent growth rate for the July-September period estimated just a month ago.”
Bloomberg.com — Gold Jumps to Record as Slumping Dollar Spurs Investment Demand “Gold jumped to a record price as the slumping dollar boosted bullion’s appeal as an alternative asset. Silver also gained.”
Cordially yours,
J. Christoph Amberger
Executive Publisher, TodaysFinancialNews.com
Next Article: The Coming Gold Correction: Two Ways to Play the Move
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