Sunday, August 29, 2010

Friday's Trading Recap - Barron's Weekend Recap

AM Trading was exceptional as the GPP # and Berneke comments sent the market lower after opening up slightly in the pre market. we went from 1053 straight threw settlement to 1037 before putting in a v bottom and rebounding. The best trading of the day was had in these areas IMO. we ad a higher uptrend most of the rest of the day after the am session wrapped up. his is where the prudent trader called it a early weekend and locked in high percentage profits. Most group traders who traded the pm uptrend were chopped up over all.
 Barron's Recap:

Positive on APD and HP- Barron's comments on the much-awaited GM's IPO announced last week. Barrons notes that there are many uncertainties and lack of information regarding the IPO such as the size of the deal, the expected stock market value and if the American taxpayers will get back their money. In face of a demanding Obama,who promised taxpayers would get back their $50B investment from the Treasury, and cautious institutional buyers, Barron's expects a price of $100-140/shr and a stock market value of $60B or more.

- Putnam's investment head of global asset allocation Jeff Knight recommends European stocks given the weak euro and equities if the investor has a 10-year investment horizon. Recommends high-yield corporate bonds, has a neutral weight recommendation on Treasuries and neutral on emerging market debt. Is underweight on commodities 

- Positive feature on Helmerich & Payne as many oil companies are abandoning available order rigs in favor of new technologically advanced and cost-effective rigs. Helmerich & Payne is poised to benefit from this trend and is winning market shares as demand surges for its high-tech FlexRigs. Orders amounted at 16 for FlexRigs last month. The third quarter beat analysts expectations who are rising price targets for the stock, currently trading at $38, to $63.

- Positive feature on Air Products as the company is trying to acquire AirGas for $63.50/shr in cash. Barron's notes that the stock could still rise by 20% with or without the deal. CEO said that Air Products alone should boost revenues by 10-12% annually over the next 5 yrs, while earnings could rise to 12-14%. Furthermore, if the economy recovers even slightly, demand for Air Products' wares should increase significantly.

- Barron's comments positively on INTC though is skeptical on t
the deal with MFE; All risks are discounted in the stock.

- Barron's sees the deamand for smartphones remaining strong going forward and sees AAPL as being the big winner at the end of the day.

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