Markets closed Tuesday in the red, with no real catalyst for the move. Of course, if you read the headlines folks are continuing to use the possibility of a Fed-directed "taper" in its economic stimulus program as a reason for markets to be up or down, and I find it to be pretty comedic at this point.
One reason is that a bipartisan budget deal has been reached and, hopefully, will pass. This means there should be fewer financial and economic headwinds heading into 2014 and, that's right: even more chatter of the taper coming sooner rather then later.
Some big news out of Mastercard after hours, with a 10-1 split, a raised dividend and a and stock buyback coming. The news pushed the stock over $800 yesterday and it's trading in the $790s this morning.
COST reported some nice revenue numbers this morning, but another earnings per share (EPS) miss. Traders sold off the stock but it now looks to be rebounding. I didn’t buy any calls yesterday, but I may look for some at the open. COST remains a great story and I think the revenue growth trumps the EPS miss.
Baker Street Capital Management, the firm that posted a bullish piece on SHLD, raised its stake in the company to over 10%, the result being that SHLD is up 4% pre-market. I'd have to think that investment is in the red due to last week's pullback. I'll most likely continue to stay away until the dust settles or I see a true breakout occur.
SINA found some buyers yesterday amid rumors of a Weibo IPO, which is destined to come at any point in the next few months. The chart looks phenomenal for a bounce and I did buy some calls yesterday as well as alerting via text message. Here are my thoughts on SINA: https://www.optionmillionaires.com/sina-sina-set-break-90/
I still love SCTY and I'm looking for a break of $55.60 in the next trading session or two. Also, WYNN had another upgrade this morning and I'm hoping for a move into the $185-plus area.
For those that missed Lee’s Webinar last night, it's now posted in the forum: https://www.optionmillionaires.com/forum/showthread.php/732-Selling-Premium-Against-Long-Term-Positions-With-LeeMalone?p=1335#post1335
A few analyst changes of note today:
FIO CLSA says a takeover of Fusion-io is less likely |
CLSA said a takeover scenario of Fusion-io by a storage company, OEM, NAND vendor or component provider is less likey. The firm previously thought EMC would be a likely candidate but no longer believes it wants to buy a PCIe component maker now that it has good results and said NetApp never had interest. The analyst does not believe an OEM would buy Fusion-io because then no other OEM would likely sell its product and believes its size is too big for component vendors. Shares are Underperform rated with a $9 price target, down from $12 |
HD Home Depot view generally in-line with consensus, says Deutsche Bank |
Deutsche Bank said Home Depot's outlook for FY14 and FY15 is "more or less" in-line with consensus expectations, though adds that the company is potentially being conservative, as it has been in the past. Deutsche keeps a Hold rating and $80 price target on Home Depot |
BRCM Broadcom design win leaves deficiencies in LTE business, says Brean Capital |
Brean Capital noted Broadcom management was excited about its design win with Samsung but the firm still sees notable deficiencies in its LTE business which need to be rectified to compete longer term. The firm raised its estimates and its price target moves to $33 from $31 |
AAPL Apple could generate $3 in EPS from China Mobile in 2014, says Bernstein |
Bernstein believes that a deal between Apple (AAPL) and China Mobile (CHL) could boost Apple's EPs by $3 in 2014, and raise its 2014 revenue by $9B. But the firm warns that estimates for Apple's March and June quarters appear high. It keeps a $600 price target and Outperform rating on Apple |
LULU lululemon investors should buy the dips, says RW Baird |
Baird Believes the leadership announcements at lululemon have removed an overhang for the stock. The firm believes the executive change signals little shift in strategy, and the new CEO, Laurent Potdevin has experience in international brand building, technical apparel, and operational experience. Shares are Outperform rated with an $87 price target |
WYNN Macau stocks price targets raised at Wells Fargo |
Wells Fargo raised its price targets on several companies with Macau casinos as the firm believes that Macau gaming trends have been strong. The firm also thinks that these companies have several upcoming positive catalysts. Wells increased its price target on Las Vegas Sands (LVS) to $80-$90 from $80-$85, on Melco Crown (MPEL) to $40-44 from $38-$42, and on Wynn Resorts (WYNN) to $195-$205 from $185-$195. The firm has Outperform ratings on all three stocks and ranks them in the order presented in the previous sentence |
NFLX Netflix price target raised to $390 from $355 at Citigroup |
Citigroup raised its price target for Netflix shares to $390 citing the company's international opportunity from the secular growth in Internet video consumption. Citi, however, keeps a Neutral rating on the stock due to valuation |
I'll be looking for some COST calls, possibly, as well as some SSYS calls, finally:
Stock Ticker | Call/Put | Strike | Expiration | Closing Price | Entry Price |
COST | CALL | $120.00 | Weekly | 1.80 | 0.35 |
SSYS | CALL | $135.00 | December | 0.55 | 0.55 |
Lets have a great day!
- JB