The Ultimate Showdown: Crude vs. Nat Gas

January 5, 2009

Many investors wonder whether or not there are advantages to being long or short one commodity versus another or if all commodities will roughly trade in the same manner. Like many of the other questions I tackle here on the website, there is no exact answer (as is the case with many questions dealing with the financial markets) to these questions.  Even though there is no precise mathematical science to answer this question, there are many identifiable factors involved that can shed light on what to many seems to be a difficult and never-ending puzzle. Read more

Chesapeake Comes Back From the Dead

December 17, 2008

To say that it has been a rough third quarter for Chesapeake Energy Corp. [CHK: 18.13, +0.86 (+4.98%)] would be the understatement of the year.  Shares of the largest natural gas company in the United States have fallen from a intra-day peak of $74.00 all the way down to a measly $9.84.  Rumors, all of which ended up being false, had speculators predicting that the natural gas giant would default.  Credit default swap spreads on Chesapeake that default in a one year period have risen to a high of 1200 basis points in September (essentially giving a 12% chance to Chesapeake’s ultimate defaulting).  Fear caused the stock price to plummet, but that is exactly what CEO Aubrey McClendon has erased with his most recent press conference that was held on Monday, December 8th. Read more

Forex Markets: A Look into The Dollar, Part III

November 25, 2008

Welcome to Part III of a four part series discussing the current state of the foreign exchange markets and the future problems and issues that will surround it. Part I of this series explained the general relationship between commodities, the Euro, and the Dollar. Part II of this series discussed the reasons why the dollar has rebounded recently. This article will discuss the European and U.S. central bank’s rate cuts, their fiscal stimulus plans, and the LIBOR to fed funds rate and the affects these issues have had on the Dollar and Euro. Read more

Forex Markets: A Look into The Dollar, Part II

November 23, 2008

Welcome to part two of a four part series covering the current conditions of the foreign exchange market. This series of articles is focused on the dollar’s moves in relation to other currencies. The first part of this series is focused on the relationships between the Dollar and the Euro, commodities, and inflation and their role in the forex market. This part of the series will explain some of the reasons regarding why the Dollar has rallied recently in light of the Read more

A Tale of Two PC Makers

November 22, 2008

PC makers, Hewlett Packard [HPQ: 36.33, -0.48 (-1.30%)] and Dell [DELL: 10.61, -0.14 (-1.30%)] posted earnings earlier this week partially eroding concerns that PC manufacturers will follow suit with their other IT counterparts in the spending downturn. Intel’s remarks last week did not bode well as they tapered down revenues by over $1 billion due to softening demand. It is surprising to see the PC makers coping well in a time where electronic spending is poised to decline as the jobless rate continues to increase leaving people rationing their money over the essentials. Read more

Forex Markets: A Look into The Dollar Part I

November 20, 2008

Welcome to a four part series covering the highs and lows of the foreign exchange market, specifically focusing on the U.S. Dollar and the Euro. This series of articles is designed to give you an insight into what factors have been causing such drastic price swings in the exchange rate between the world’s two most important currencies. This first article will try and define the relationship of the Dollar and Euro, and how commodities as well as inflation have Read more

Wal-Mart Q3 FY2008 Recap

November 14, 2008

Wal-Mart [WMT: 56.52, -0.66 (-1.15%)] reported their fiscal year third quarter earnings on Thursday, and the results were somewhat surprising.  Wal-Mart reported earnings of $3.14B, or $0.80 a share, for the quarter ending October 31st.  For the previous year’s quarter the retailer reported $2.86B, or $0.70 a share.  Earnings from continuing for operations were $0.77 a share.  This was $0.01 above to the consensus analyst estimates and a penny also above Wal-Mart’s internal estimates.  Revenue for the quarter was up Read more

Sales Hit the Skids for Kohl’s

November 14, 2008

With possibly the most challenging holiday selling season fast approaching, the retail sector is beginning to feel the pinch from consumers.  Yesterday after the close of a crazy session, the Wisconsin-based retailer reported a 17-percent decline in net income from a year ago.  They did, however, beat analysts earnings estimates by a cent… coming in at 52 cents per diluted share, a 15-percent drop from the same quarter last year.  Shares were down for most of the day Read more

Generics Giant Teva Shines

November 8, 2008

With another tough day in the market following the Presidential Election,  the word’s largest generic drug maker topped 3rd Quarter net profit forecasts. Teva [TEVA: 42.82, +0.17 (+0.40%)], headquarted in Israel, develops, manufactures, and markets generic and human pharmaceuticals. They also participate in the formation of active pharmaceuticals, or APIs, in North America, Europe, Latin America, Asia, and Israel. Teva’s net profit for the quarter, excluding one-time items, was $599 million or $0.72 per diluted share, compared with $525 million, or $0.64 per share. Sales increased 20% to a record of Read more

Cisco Fiscal Q1 Earnings Recap

November 5, 2008

Analysts were saying buy Cisco [CSCO: 17.11, +0.15 (+0.88%)] leading up to their earnings release Wednesday, November 5 after the bell. Goldman Sachs, Merrill Lynch, and RBC Capital issued a buy rating on the stock within the last week. Chief Executive John Chambers keeps telling investors that the company plans on achieving the 12 to 17 percent long-term revenue growth. Can the world’s largest maker of networking equipment reach this goal? I certainly think so, even with the hiccups in the near term brought forth by the floundering economy. Read more

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