BoardMark Blog
It looks like NUVM posted new financials today
Jul 30, 2010
Some huge News for NUVM it looks like earlier today that they have posted some new financial info. I would definitely keep my eye on NUVM because it looks like with this news that it could possibly see some big gains
FDML posts better than expected results, stock hovers near 52 week high
Jul 30, 2010
Good times continue to roll for the automotive industry. After Ford’s stellar numbers last week, a number of part suppliers have produced better than expected results. One such example is Michigan based Federal Mogul Corporation (NASDAQ:FDML) which has posted a sales increase of 23 per cent in the latest quarter. But the real surprise was the earnings growth with the company managing to post US$49 million profit from last year’s figure of miniscule US$3 million.
Interestingly, traditional growth leaders “emerging markets” have taken a backseat for most US based component producer. FDML also registered its highest geographical sales growth in North America – an astounding 81 per cent jump in sales. It was followed by Asia at 46 per cent and Europe at 31 per cent growth.
"Federal-Mogul's results in the second quarter of 2010 show our ability to deliver strong financial performance by converting incremental revenue to profitability due to our continued focus on efficiently managing our cost base established during 2009", said FDML CEO José Maria Alapont commenting on the results.
As if the market got a hint of excellent results in advance, the stock has already gained over 38 per cent in last month. The same is true for most other tier one suppliers with good financial health. FDML is currently trading at close to US$18 per share, just US$3 shy of its 52 week high. Considering the still early stages of an automotive pullback, there appears to be ample scope for further increase in share prices of FDML and other suppliers.
Markets Drop Sharply As Dollar Bounces Off Support
Jul 29, 2010
The markets dropped sharply in the late morning session as the dollar bounced off the 200 moving average and started to move back up. To understand this movement, it is important to grasp the inverse relationship between the markets and the dollar. During market hours, when the dollar falls, the markets move higher. Inversely, when the dollar rises during trading hours, the markets sell off. Just knowing this, helps explain the wild movements in the market today. View the PowerShares DB US Dollar Index Bullish (NYSE:UUP) chart below. This is the ETF that tracks the dollar.
The dollar gapped sharply lower today and inched towards the 200 moving average. This level has been discussed as being the key support line for the dollar and an inevitable target to hit prior to a major bounce. That hit has occurred today. No sooner did the dollar kiss the 200 moving average, it started to get a bid. Immediately, the markets began to roll over. As the UUP or dollar inched higher, the markets sold more and more, coming to a key support line of $109.85 on the SPDR S&P 500 ETF (NYSE:SPY). A small bounce has started at this level on the markets. However, the dollar as started to down tick as well.
The markets have held up nicely of late with earnings that came in generally good and a mix of positive signs out of Europe along with lighter summer volume. Volume today is not heavy by any stretch, but it has picked up on the selling pressure.
Exxon Mobil Corporation (NYSE:XOM) reported earnings that beat analysts estimates by $0.14 today. The stock initially traded higher but has since succumbed to the drop in the markets, turning negative as well. Chevron Corporation (NYSE:CVX) reports earnings tomorrow morning.
GDP will be reported tomorrow, that will be a major point of interest for the markets and should be watched closely. Estimates have dropped recently from four percent to around two percent.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
RIMM’s iPhone killer in the wings
Jul 29, 2010
Notwithstanding the excellent media hype weaved around iPhone 4, Apple has got a thrashing for putting the well known antenna and reception issues under the carpet. Till now, Apple’s leadership in the multimedia smartphone market has continued unabated. However, with the latest issues surfacing, apple has started looking vulnerable. Oblivious to the concepts of crisis management, company management is equally responsible for the gaffes and the aftermath - media handling.
In the meantime, BlackBerry maker Research in Motion (NASDAQ:RIMM) shares are trading upbeat amid unconfirmed reports of the company planning an iPhone killer. What is stoking the share prices is a rumour that RIMM might launch an iPhone like BlackBerry. Considering the highly anticipated BlackBerry 6 operating system is just round the corner, the company might just decide to take on Apple iPhone. According to the reports, AT&T is tipped as the exclusive carrier for BlackBerry’s iPhone revamp.
Despite falling behind a new entrant (read Apple) in smartphone game, it is reasonable to say that the enterprise smartphone market is a different segment altogether which is quite loyal to BlackBerry. The real loser here is Nokia which has completely missed the action in smartphone segment.
After a disappointing quarter, it is the prospect (and it doesn’t matter how remote they are in this euphoric smartphone crazy market) of a iPhone killer which can pull-off a turnaround for RIMM.
