| Rally Boosts Shipping Firms Andy Wang submits: We had a big day for shipping firms today in the stock market, with SEA (Claymore-Delta Global Shipping ETF) moving up over 3%, and some shipping companies posting gigantic advances: EGLE up 16%, OCNF up 15%, GNK up 15%. So what is the real reason for the sudden optimism in this beaten-down, depressed and desolate market sector?Most traders will probably point to the Baltic Dry Index (.BDI), which has been up about 10 days in a row, as the cause. Now it is over 3700. The market considers 4000 to be a portent of the recovery of shipping rates, leading to bigger profits. The yearly high is only a bit more, near 4200. This means that rates for new contracts have almost doubled in the past couple of months. The BDI explains a lot, especially the rate at which speculator money flows into the dry bulk names, but it is as much a symptom here as the stock prices are.Complete Story » seekingalpha.com |
Earnings Preview: Honeywell International theflyonthewall.com submits: Honeywell International (HON) is expected to report Q4 earnings before the market open on Friday, January 29 with a conference call scheduled for 8:00 am ET. GuidanceAnalysts are looking for EPS of 90c on revenue of $8.15B. The consensus range is 83c-93c for EPS, and $8.07B-$8.28B for revenue, according to First Call. The company reported mixed Q3 results, beating EPS but missing revenue estimates. Complete Story » seekingalpha.com |
Hertz Puts the Thrifty in Dollar Thrifty Purchase Rolfe Winkler, CFA submits: Hertz (HTZ) picked an apt takeover target, showing it both knows the value of a dollar and how to be thrifty. The $1.3 billion acquisition of smaller US car rental rival Dollar Thrifty (DTG) comes with just a 6 percent premium. Moreover, Hertz is using some of Dollar Thrifty’s own cash to finance the deal and isn’t giving away the cost savings. Small wonder Hertz holders like what they see. It’s true, Dollar Thrifty would have been a considerably bigger bargain a year ago. Its shares have skyrocketed from under a dollar last March to nearly $39 on Friday. Yet even at that price, its valuation lagged competitors. Stripping out the depreciation and debt on Dollar Thrifty’s vehicle fleet, the company’s enterprise value to estimated 2010 EBITDA was under five times, according to Goldman Sachs, compared to more than eight times for both Avis Budget (CAR) and Hertz.Complete Story » seekingalpha.com |
Tesla IPO as a Barometer for Market Health Babak submits: The IPO market is a litmus test for the broader stock market. Historically, when we see a healthy pipeline and reception for IPO’s, this signals a healthy bull market.Complete Story » seekingalpha.com |
What's Behind Put Activity in Delta optionMONSTER submits: By Chris McKhann Shares of Delta Airlines (DAL) continue to take off after a positive response to earnings, and while the unusual option activity is in the puts, it isn't necessarily bearish. Complete Story » seekingalpha.com |