Short sellers have bought into the notion that the financial industry is in full recovery.
Shares sold short in Wells Fargo (NYSE:WFC) fell 8% to 78.8 million shares. Shares short in CIT (NYSE:CIT) were off 4% to 78.1 million. The short interest in Bank of America (NYSE:BAC) dropped 12% to 67 million. The short interest in JPMorgan (NYSE:JPM) dropped 4% to 37.7 million. Read More
Economists still expect layoffs in the US and Europe to slow as the recovery gains momentum. Pessimists among experts on GDP growth and job losses believe that the major risk of a double-dip recession is that unemployment will keep rising well beyond the middle of next year. Read More
Reuters: The value of the yuan could cause a trade war between the US and China.
Reuters: Executive pensions rose despite drops in stock prices.
Reuters: Lloyds will make a large stock offering.
Reuters: Stanley Works (NYSE:SWK) bought Black & Decker (NYSE:BDK) for $3.46 billion.
Reuters: CIT’s (NYSE:CIT) exit from bankruptcy is not clear.
Reuters: UBS (NYSE:UBS) posted a loss and wealth management clients continued to leave.
Reuters: Ford (NYSE:F) posted a surprise profit.
Reuters: Manufacturing and pending home sales both rose.
Reuters: Volker said the economy could not rely on consumer spending.
Reuters: The commercial real estate business is still in deep trouble.
WSJ: Toyota (NYSE:TM) expects a monthly sales decline.
WSJ: IllyCaffè SpA will work with local coffee shops to compete with Starbucks (NASDAQ:SBUX).
WSJ: The head of the IMF says financial firms are going back to old practices.
WSJ: Blu-ray makers are becoming more involved with web video.
WSJ: Research-in-Motion (NASDAQ:RIMM) is the focus of a number of bearish comments.
WSJ: Schwab (NASDAQ:SCHW) is making a push into ETFs.
WSJ: GM’s board will revisit the Opel sale.
WSJ: Microsoft (NASDAQ:MSFT) Office faces inexpensive versions of similar software.
WSJ: Sears (NASDAQ:SHLD) may need to get cash from its Canadian operation which presents challenges.
WSJ: Problems are beginning to appear in the financials of Chinese banks.
WSJ: Business bankruptcies rose 7% in October.
NYT: The US will allow GM to use federal money to put into Delphi.
NYT: The Supreme Court is looking at fees advisors charge mutual funds.
NYT: The Senate is pushing insurance companies on the amount of premiums they actually spend on care.
NYT: Goldman Sachs (NYSE:GS) may buy tax credits from Fannie Mae (NYSE:FNM)
FT: The Fed has asked banks to adopt it new pay rules early to cover 2009 compensation.
FT: Ebay’s (NASDAQ:EBAY) PayPal has opened doors to outside developers.
Bloomberg: The next head of Bank of America (NYSE:BAC) may be based in NYC.
Douglas A. McIntyre
It is of little surprise that CIT Group, Inc. (NYSE: CIT) is seeing clobbered today. The company has finally filed its pre-packaged Chapter 11 bankruptcy package and that has CIT shares down a sharp 63% at $0.26 on triple its average volume. By now, the game is probably known by everyone that bankruptcy usually leaves shareholders of common stock out in the cold. Should it be of any surprise that the “other troubled financial stocks” are seeing their shares head south?
It was just a week ago that I discussed the Fannie-Freddie equity conundrum. Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) are down further. After all, these two are in government conservatorship. It is even easy to argue that these are just being kept alive so that Uncle Sam doesn’t have to include the obligations on the Fed’s balance sheet. And how many investors in these companies really believe that they are holding anything more than a long-term warrant or LEAP option that is way out of the money? Fannie Mae is down 7.4% at $1.00 and Freddie Mac is down almost 9% at $1.12, and neither are on active volume today.
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This is a strange morning for day trader alerts. There are not dozens and dozens of stocks in the big news, but those that are moving are moving big. We have links through on each stock over at VSInvestor.com for more data and analysis on price and volume:
CIT Group Inc. (NYSE: CIT) is actually very thin volume as no NYSE trades are seen, but it is down by almost half on its bankruptcy filing.
Dendreon Corp. (NASDAQ: DNDN) is trading over 5% higher after filing for PROVENGE approval with the FDA.
Ford Motor Co. (NYSE: F) is trading up about 7% this morning on high volume. It actually made money.
Human Genome Sciences, Inc. (NASDAQ: HGSI) is trading up over 30% at multi-year highs on its positive lupus study data at the higher dose.
Motorola Inc. (NYSE: MOT) is running rather well today. The troubled phone and communications maker is up about 5% on an analyst upgrade and on a report in Barron’s.
You can join our open email distribution list to get updates on top analyst upgrades and downgrades, top day trader alerts, IPO’s, secondary offerings, Warren Buffett and other guru activity, M&A and more.
JON C. OGG
Reuters: Investors in the banking sector were disturbed by the CIT (NYSE:CIT) bankruptcy.
Reuters: Summers will lead a high level meeting on the economy.
Reuters: US companies are holding more cash.
Reuters: The Fed is likely to keep interest rates flat due to economic uncertainty. Read More
According to The Wall Street Journal, CIT (NYSE:CIT) will file for Chapter 11 today. Bondholders will probably provide $4.5 billion in financing for a prepackaged bankruptcy. Senior creditors will likely get $.70 on $1. Carl Icahn, who offered that company $1 billion in financing, may be left out in the cold because CIT may not need the capital he has offered.
Taxpayers are likely to see their $2.3 billion investment in the firm go to zero.
The group that will lose the most money that fastest are the investors who have bought CIT shares over the last several weeks, betting the company would not have to go to court. Shares traded at $2.20 on September 29. On October 19, CIT traded at $1.21. Investing in CIT was a long shot and investors who put their capital into the stock are likely to watch the shares fall to a few pennies tomorrow morning.
Douglas A. McIntyre
Earnings season is seeming to wind down here, but that won’t stop the unusual suspects of key equity events and issues to watch this coming week. We are looking into key issues for the coming week in the stocks of CardioNet, Inc. (NASDAQ:BEAT), CIT Group, Inc. (NYSE: CIT), Genworth Financial Inc. (NYSE: class=GNW), GFI Group Inc. (NASDAQ: GFIG), Human Genome Sciences Inc. (NASDAQ: HGSI), GlaxoSmithKline Plc (NYSE: GSK), Moody’s Corp. (NYSE: MCO), Berkshire Hathaway Inc. (NYSE: BRK-A), RADVISION Ltd. (NASDAQ: RVSN) and Cisco Systems Inc. (NASDAQ: CSCO).
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CIT Group (NYSE: CIT) it has entered into an agreement with Carl Icahn to support its restructuring plan and secured an incremental $1 billion committed line of credit from Icahn Capital LP to provide supplemental liquidity for CIT as it pursues that plan. Read More
We are only featuring a few key day trader and active trader stocks early this morning. We have links through to more data and analysis with links on each stock over at VSInvestor.com:
Genworth Financial Inc. (NYSE: GNW) is soaring on an unexpected earnings and on a huge discount to book value.
CIT Group Inc. (NYSE: CIT) is challenging some key lows from earlier this month and from August on amended loan terms. Actually, things are now getting much worse with a 9:20 update about potential bankruptcy filing.
VIVUS, Inc. (NASDAQ: VVUS) is trading up 8% on additional Qnexa obesity drug data.
Novatel Wireless, Inc. (NASDAQ: NVTL) did not at all match the gains reported by Sierra Wireless (NASDAQ: SWIR). Shares are down 20%.
Human Genome Sciences, Inc. (NASDAQ: HGSI) is going to be one to watch ahead of next week’s new clinical data. We saw huge volume in stock options yesterday on this one and would expect more of the same today.
You can join our open email distribution list to get updates on top analyst upgrades and downgrades, top day trader alerts, IPO’s, secondary offerings, Warren Buffett and other guru activity, M&A and more.
JON C. OGG
Updated throughout the day.
Updated 3.23 PM EST: Analyst Michael Mayo says Citigroup (NYSE:C) will take a $10 billion write down the quarter. Citi denies it (CNBC)
Updated 10.24 AM EST: Cisco (NSADAQ:CSCO) may drop its bid for Tandberg (Barron’s)
Venezuela may have gold reserves with a total value over $13 billion. (CNBC)
JP Morgan (NYSE:JPM) may have had concerns about Galleon as early as 2001 (Financial Times)
Likely near-term tech acquisition targets include Sapient (NASDAQ:SAPE), Computer Sciences (NYSE:CSC), WNS (NYSE:WNS), Amdocs (NYSE:DOX), Cognizant Technology (NASDAQ:CTSH) and ExlService (NASDAQ:EXLS) (Reuters)
Time Warner (NYSE:TWX) may spin-off AOL in December (TheStreet.com)
CIT (NYSE:CIT) is likely to file for bankruptcy in the next few days. (Reuters)
Cargill is the largest private company in the US followed closely by Koch Industries (Forbes)
Douglas A. McIntyre
Reuters: The US economy is stable but risks remain according to Geithner.
Reuters: JPMorgan (NYSE:JPM) raised concerns about Galleon in 2001.
Reuters: As many as five million Americans have been infected with H1N1.
Reuters: Sony (NYSE:SNE) posted a fourth straight quarterly loss. Read More
Reuters: House Democrats unveiled their healthcare bill.
Reuters: Senators may extend home purchase credits until April.
Reuters: China will launch a case against The Big Three auto companies.
Reuters: Galleon paid Wall St. bankers millions to give data that would allow a trading “edge.” Read More
Short interest in a number of major financial firms rose for the period ending October 15.
Shares short in Citigroup (NYSE:C) rose 51% to 178.1 million. The short interest in CIT (NYSE:CIT) was up 21% to 85.6 million. Share sold short in Freddie Mac (NYSE:FRE) were up 14% to 71.5 million. Shares short in Bank of America (NYSE:BAC) and JPMorgan (NYSE:JPM) were fairly flat. Read More
This morning you are getting the broader summaries without links to VSInvestor.com because of an issue at the hosting and publishing side that has caused a temporary outage. Here are brief morning movers:
Fifth Third Bancorp (NASDAQ: FITB) and SunTrust Banks, Inc. (NYSE: STI) are both getting hit this morning on an analyst downgrade by Dick Bove. Rochdale Securities has downgraded the bank to Sell from an already cautious Neutral rating. At 8:20 AM EST we have seen STI shares down over 2.5% at $20.45 on about 10,000 shares and FITB is down over 4% at $9.92 on 65,000 shares. STI trades about 9.7 million shares per day and and FITB trades about 22 million shares per day.
CIT Group, Inc. (NYSE: CIT) is trading up this morning on news that could ultimately be bad for shareholders. CIT has amended its debt offering terms under a packaged bankruptcy reorganization. CIT is up 3.5% at $1.18 on over 400,000 shares of stock at 8:26 AM EST. As a reminder, CIT was under fire on Friday by a Carl Icahn open letter to bondholders calling that the value of the bonds could be Par (100 cents on the dollar). CIT trades close to 90 million shares per day and where this one closes today is anyone’s guess as of now.
Amazon.com Inc. (NASDAQ: AMZN) rose almost $25.00 on Friday on over 58 million shares when you include the pre-open and after-hours trading volume. Average volume here is about 7 million shares. And this morning at 8:30 AM EST we have shares up another 1.8% at $120.60 on right at 300,000 shares. This will mark new 52-week highs as the high on Friday was $119.65. Bezos always wanted to build a rocket ship, and his stock is acting like one.
BioCryst Pharmaceuticals, Inc. (NASDAQ: BCRX) is surging on H1N1 news this morning. The company’s intravenous experimental drug called peramivir received an “emergency use authorization” by the FDA as a swine flu treatment from the Food and Drug Administration as a swine flu treatment in hospitals for thoise with or suspected of having swine flu.
Legg Mason Inc. (NYSE: LM) is indicated higher. Billionaire investor Nelson Peltz will join the asset management firm’s board after his investment firm has now taken a 4.3% stake in the company. This investment is via Peltz’s Trian investment group. 3.6% at $33.05, but volume is still very thin as this is a listed stock under an NYSE specialist.
You can join our open email distribution list to get updates on top analyst upgrades and downgrades, top day trader alerts, IPO’s, secondary offerings, Warren Buffett and other guru activity, M&A and more.
Jon C. Ogg
October 26, 2009
CIT Group, Inc. (NYSE: CIT) has had a lot of news this week. A lot this year for that matter. Last night there was word that it had reached a loan agreement with Goldman Sachs Group (NYSE: GS). And even earlier this week came challenges from Carl Icahn over the removal of management and a commitment for a $6 billion loan. And then today, Icahn is stepping his efforts with an open letter to CIT bondholders. If you are a shareholder of common stock in CIT, what is in the best interests of bondholders and creditors is not necessarily the same as being in the best interest of the common shareholders.
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Reuters: Japan Airlines faces $8.8 billion in excess debt if liquidated.
Reuters: Amazon (NASDAQ:AMZN) beat Wall St. estimates.
Reuters: GM’s CEO will get a pay raise.
Reuters: Nokia (NYSE:NOK) sued Apple (NASDAQ:AAPL) over patent infringement. Read More
Reuters: Apple (NASDAQ:AAPL) beat earnings forecasts.
Reuters: The IRS is probing some homebuyers’ tax credit gains.
Reuters: The US is ready to bring more insider trading cases.
Reuters: More US companies are cutting bonuses. Read More
These are this morning’s top day trader alert stocks with more detailed data on price, volume, and further analysis with links to each stock over at VSInvestor.com:
You can join our open email distribution list to get updates on top analyst upgrades and downgrades, top day trader alerts, IPO’s, secondary offerings, Warren Buffett and other guru activity, M&A and more.
JON C. OGG
OCTOBER 19, 2009
Reuters: US corporations are concerned about the weakness of the dollar.
Reuters: Bernanke says that global imbalances in trade and cash flows must be addressed.
Reuters: Wal-Mart (NYSE:WMT) is attacking new markets with huge price cuts. Read More
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