Thank you to our Vets!
Index & Sector performance DATE
The Market:
Any given day stocks will make big moves but today with the bond market closed in observance of Veteran’s Day the broad markets seemed happy to consolidate. Do not be surprised if today’s action is the calm before a strong directional move.
Being that today was a Bank Holiday, there was no government economic data announced. We did see the NFIB Small Business Index come in slightly below expectations posting a 91.6 when 93.5 was expected.
Story Stocks:
Merger Monday as ViroPharma (VPHM) agreed to be acquired by UK drugmaker Shire (SHPG). The deal values VPHM at $50 per share which is an over 25% premium to Friday’s closing price.
Carl Icahn is really on a hot streak isn’t he? Today it continued when Transocean (RIG) came to an agreement with Icahn and Icahn managed funds. Icahn gets company supported proposals in the 2014 General Meeting including a $3 dividend and Icahn in return will support board director nominees and other company proposals.
While maybe not in the thick of earnings reports there are still companies reporting. Two moving on EPS today were Gogo (GOGO) and Arkansas Best (ABFS). GOGO reported a lower than expected loss of (22c) vs (31c) est on better than expected revenues of $85.4M vs $76.8M est. GOGO closed up 28.8%. ABFS posted EPS of 52c vs 36c estimates on revenue of $623.4M vs $605.98M. ABFS closed up over 15% and to a new 52 week high. This trucking company is up over 225% YTD.
Cirrus Logic (CRUS) was a loser today closing down 13.53% after Barclays broke apart the new iPad Air and confirmed that previously used CRUS products were not present in the new tablet.
The following noteworthy companies are scheduled to report earnings before tomorrow’s open: DISH, NRG, DHI, ROC, NS, DF, YGE
Analyst Comments:
Upgrades 11/11/13
Downgrades 11/11/13
Initiations 11/11/13
Price Target Changes 11/11/13
The Game Plan:
Today there wasn’t much change in the overall market so I am going to post a chart I am watching, Advanced Micro Devices (AMD). AMD was a name I started watching but held off waiting for EPS to come out. I will hold longs I like into EPS but I often do not enter new positions in the face of EPS and generally wait for after they report. After a disappointing report, AMD was sent lower ultimately finding a bottom at $3.04 and has so far bounced to the $3.34 level as of today’s close. That $3.04 low looks like it could be a larger trading low for AMD. $3.20 and the $3.04 lows offer clear stop levels as evidence the pattern is not yet completed to the downside. Upside potential is the recent highs of $4.65 and then potentially even further into the $5.50-$6 range.
Good Trading everyone and again thank you to all of the Veterans for your service!
