Monday, November 8, 2010

Short Sara Lee for Sweet Returns

This is not a good time to be a food company. Rising commodity costs are squeezing margins, especially when it’s hard to pass through the costs to strapped consumers. These woes are showing up on the charts, with sagging prices being seen among such names as Kellogg Company (NYSE: K ), Tyson Foods, Inc. (NYSE: TSN ), Kraft Foods Inc. (NYSE: KFT ) and SYSCO Corporation (NYSE: SYY )‎. Next up i s Sara Lee Corp. (NYSE: SLE ), which reports Wednesday before the open. Truth be told, the stock has done pretty well after the past few reports, including last quarter when the company missed the estimate by a lot. But the performance of its peers should be a warning that this quarter could be different. SLE’s chart is also a concern. The stock has gone nowhere for the past six months, and the $15 level sitting just above the current price has been a big problem. That’s also the sight of peak call open interest in the November series, which adds to the potential resistance.   Sentiment toward SLE is mixed. Analysts are clearly the most skeptical, with just 1 of 11 rating the stock a “buy.” But the put/call ratio is trolling near an annual low and short interest is negligible. So there’s room for pessimism — and selling — to build, especially if margins show signs of tightening. Look for SLE to fall in line with its peers and sag after earnings. It may not be a sharp move, so allow plenty of time by buying the SLE Dec 15 Puts . Here’s to some sweet returns on this trade.
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Early Market News: Northrop Grumman (NYSE:NOC), Toyota Motor Company (NYSE:TM), PepsiCo (NYSE:PEP)

Here are several more breaking news stories which could affect market stocks in trading later today. The following companies should see some movement: Northrop Grumman (NYSE:NOC), Toyota Motor Company (NYSE:TM), PepsiCo (NYSE:PEP). Here is a more detailed look at the news that will affect each company when trading continues. Northrop Grumman (NYSE:NOC) Northrop Grumman (NYSE:NOC) wireless test engineer has received the 2010 Professional Role Model award. Leony Rosa has received the award from the Society of Hispanic Professional Engineers (SHPE) for his outstanding contributions and leadership to the Hispanic community. Tom Afferton, director of New York City Programs for Northrop Grumman (NYSE:NOC) said that ”Leony’s strong character and leadership qualities in the workplace, in the community and in academic settings are fully deserving of this prestigious award.” Toyota Motor Company (NYSE:TM) Toyota Motor Corporation (NYSE:TM) has increased its full-year earnings forecast. According to the statement from Toyota Motor Corporation (NYSE:TM), the sales in Asia region and recovery in global car sales has boosted the company to revise its earnings guidance for the first half of the year. Its net income for the year-end is expected to reach 350 billion yen when comparing with an earlier estimate of 340 billion yen. Moreover, the company has planned to sell new low cost car models in emerging markets and has decided to raise the price for some of its other models. PepsiCo (NYSE:PEP) PepsiCo (NYSE:PEP) PepsiCo (NYSE:PEP) has supported the students on this year's 'F1 in schools' competition in Jeddah, Saudi Arabia. Team Impact of The British International School in Jeddah, Saudi Arabia, has been sponsored by PepsiCo (NYSE:PEP) to compete with an estimated 9 million students around the world. The aim of the competition was to design a Formula 1 car miniature, which can travel a 20 meter track in just one second. Ibrahim Binaquil, GCCI Marketing and PR Manager, PepsiCo (NYSE:PEP) said," PepsiCo (NYSE:PEP) is committed to giving back to the community, and supporting educational programs is key to this. The 'F 1 in schools' is great to support as it offers a platform for the students to develop and learn." We could possibly see more movement when trading continues for Northrop Grumman (NYSE:NOC), Toyota Motor Company (NYSE:TM) and PepsiCo (NYSE:PEP).
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Top 10 U.S.-Listed Chinese Stocks with Most Analyst Upgrades: BIDU, LDK, CTRP, STP, HOLI, AMCN, MPEL, EDU, HTHT, CRTP (Nov 08, 2010)

Below are the top 10 U.S.-listed Chinese stocks with most analyst upgrades in the past four weeks, UPDATED TODAY before 4:30 AM ET. Sentiment on these stocks is turning more positive.

Baidu.com, Inc. (ADR) (NASDAQ:BIDU) has the 1st most analyst upgrades in the past four weeks. It was upgraded by 3 brokerage analyst(s) in this period. The stock is rated positively by 18 of the 25 analysts covering it. LDK Solar Co., Ltd. (NYSE:LDK) has the 2nd most analyst upgrades in the past four weeks. It was upgraded by 2 brokerage analyst(s) in this period. The stock is rated positively by 6 of the 18 analysts covering it. Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) has the 3rd most analyst upgrades in the past four weeks. It was upgraded by 1 brokerage analyst(s) in this period. The stock is rated positively by 13 of the 20 analysts covering it. Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) has the 4th most analyst upgrades in the past four weeks. It was upgraded by 1 brokerage analyst(s) in this period. The stock is rated positively by 10 of the 41 analysts covering it. Hollysys Automation Technologies Ltd (NASDAQ:HOLI) has the 5th most analyst upgrades in the past four weeks. It was upgraded by 1 brokerage analyst(s) in this period. The stock is rated positively by 6 of the 6 analysts covering it.

AirMedia Group Inc. (ADR) (NASDAQ:AMCN) has the 6th most analyst upgrades in the past four weeks. It was upgraded by 1 brokerage analyst(s) in this period. The stock is rated positively by 6 of the 11 analysts covering it. Melco Crown Entertainment Ltd (NASDAQ:MPEL) has the 7th most analyst upgrades in the past four weeks. It was upgraded by 1 brokerage analyst(s) in this period. The stock is rated positively by 6 of the 15 analysts covering it. New Oriental Education & Tech. Group Inc (NYSE:EDU) has the 8th most analyst upgrades in the past four weeks. It was upgraded by 1 brokerage analyst(s) in this period. The stock is rated positively by 5 of the 15 analysts covering it. China Lodging Group, Ltd (NASDAQ:HTHT) has the 9th most analyst upgrades in the past four weeks. It was upgraded by 1 brokerage analyst(s) in this period. The stock is rated positively by 4 of the 5 analysts covering it. China Ritar Power Corp. (NASDAQ:CRTP) has the 10th most analyst upgrades in the past four weeks. It was upgraded by 1 brokerage analyst(s) in this period. The stock is rated positively by 3 of the 3 analysts covering it.

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China Analyst
Top 10 U.S.-Listed Chinese Stocks with Most Analyst Upgrades: BIDU, LDK, CTRP, STP, HOLI, AMCN, MPEL, EDU, HTHT, CRTP (Nov 08, 2010)



Today’s Crude Oil Price Per Barrel Moving Higher; Current Gas Price Per gallon may Move Higher; Commodity Notes November 8th, 2010

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Oil price per barrel is moving trending up. Oil prices are trending upward as commodity values have been bubbling over. Last week, the Fed’s released their policy statement relative to quantitative easing. As such, the Federal Reserve has decided to initiate a new $600 billion program to aid the economy. The Federal Reserve plans to buy $600 billion worth of government bonds in an effort to decrease interest rates, make loans cheaper and ultimately stimulate spending across the American economic landscape. The expectation is that, due to the Federal Reserve's move to initiate further quantitative easing, interest rates will remain low for the long term and spending will increase. Federal Reserve Chairman is having to defend this plan however. Critics of the plan feel that the large amount of the greenback that is being injected into the economy could prompt inflation or bubble pricing of bonds and commodities. Crude oil is trading around $87 a barrel and unfortunately, gas prices often edge higher as the price of crude goes up. It is a parallel relationship. Gas prices have been high before however, much higher than they are currently and not too long ago. Consumer spending will remain stable relative to gas consumption until the price of cude oil goes up over $100 dollars per barrel. Author: Stephen Johnson

Today's Crude Oil Price Per Barrel Moving Higher; Current Gas Price Per gallon may Move Higher; Commodity Notes November 8th, 2010



TAO Minerals Ltd. (TAON) Is Going Crazy

Shares of TAO Minerals Ltd. (PINK:TAON) are having solid gains in today's session so far as the stock has rallied 211% to $0.218 on huge volume of 43.50 million shares – over 20X its average volume after reporting a corporate update last Thursday and being positively mentioned in a popular investment newsletter over the weekend. n a technical chart, the stock has crossed 50-Day Moving Average and 200-Day Moving Average of $0.008 and $0.01 respectively. The company had total outstanding shares of 76.92 million shares, of which 59.97 million shares are 87.02 million shares are floating. Tao Minerals Ltd. is an exploration-stage company. The Company is engaged in mineral resource business. This business generally consists of three stages: exploration, development and production. Disclaimer: The assembled information distributed by epicstockpicks.com is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities. Epicstockpicks.com does expect that investors will buy and sell securities based on information assembled and presented herein. EpicStockPicks.com will not be responsible in any way for or accept any liability for any losses arising from an investor's reliance on or use of information obtained from our website or emails. PLEASE always do your own due diligence, and consult your financial advisor.
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Tech. Stocks Hits Year High (SOLR, PCS, ALTR, VSH)

GT Solar International, Inc. (NASDAQ:SOLR) made an all time high at $10.00. The stock is up 6.45% to $9.41 over a volume of 9.29 million shares.  The stock has surged 14.22% in one week trade and soared 69.06% in this year. Today it announced that it has entered into a definitive agreement to repurchase shares of common stock from GT Solar Holdings, LLC. Under the terms of this agreement, GT Solar has agreed to purchase 26.5 million shares of its common stock at a price of approximately $7.66 per share for a total purchase price of approximately $203 million. MetroPCS Communications, Inc. (NYSE:PCS) hits a new 52 week high at $12.31 and now up 4.61% to $12.26 after it was upgraded by  Wells Fargo from Market Perform to Outperform. The price range was increased on the stock from $12.00-$12.50 to $14-$15. So far in this year, the stock has jumped over 60.68% and has recovered over 122.46% from its 52-week low. Altera Corporation (NASDAQ:ALTR) added 1.64% to $33.75 and created a new 52-week high of $8.15. So far this year, the stock has jumped over 49.03% and has recovered over 72.73% from its 52-week low. Altera Corporation (Altera) is a semiconductor company. The Company designs, manufactures and markets programmable logic devices (PLDs), HardCopy application-specific integrated circuits (ASICs), pre-defined design building blocks, known as intellectual property (IP) cores, and associated development tools. Vishay Intertechnology (NYSE:VSH) went up over 1.81% to $14.09 and made a new 52-week high of $14.40. Today announced that its SiR880DP 80-V ThunderFET(R) power MOSFET was chosen as a winner in Electronic Products China magazine’s eighth annual Top-10 DC/DC Power Product Awards.
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Newsworthy Stocks



Asian Shares Mostly Lower; Property Plays Hurt HK, China

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Asian Shares Mostly Lower; Property Plays Hurt HK, China Wall Street Journal – 3 hours ago By Shri Navaratnam and Puja Rajeev SINGAPORE (Dow Jones)–Asian share markets were mostly down Tuesday, with property companies weighing on Hong Kong and China markets while losses in Woodside …

Asian Shares Mostly Lower; Property Plays Hurt HK, China



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