FeedPosted Jan 31st 2011 2:00PM by Brent Archer (RSS feed)
Filed under: Major Movement, Deals, Bad News, Options, Technical Analysis

Alpha Natural Resources (
ANR -
option chain) stock is trading lower today after the company announced over the weekend that
it will acquire Massey Energy (
MEE) in a $7.1 billion cash and stock deal. Under the deal, MEE shareholders will receive 1.025 shares of ANR plus $10 in cash for each MEE share held. Since this deal values MEE about 10% higher than its closing price from Friday, ANR stock is headed lower since it is essentially overpaying to buy Massey.
This kind of movement is typical of a buyout situation, and ANR would not enter the deal if they didn't think it was a good idea in the long-term. However, the short-term is a different story, and if you think this stock won't be rising too far in the coming months, then it could be a good time to look at a short-term bearish hedged play on ANR.
Continue reading What Are the Implications of ANR Buying Massey Energy?
Posted Jan 26th 2011 1:30PM by Brent Archer (RSS feed)
Filed under: Major Movement, Earnings Reports, Forecasts, Bad News, CA Inc (CA), Options, Technical Analysis

CA Technologies (
CA) -
option chain) stock is trading lower today after the company announced Q3 2011 earnings results after the market close yesterday.
CA reported EPS of 0.39, up from 0.34 in the same quarter last year but well below the consensus target of 0.49. Also, the company warned of weak renewals. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on CA.
This morning, CA opened at $24.19. So far today the stock has hit a high of $24.40 and a low of $23.18. As of 12:40, CA is trading at $23.32, down $2.04 (-8.0%). The chart for CA looks neutral and
S&P gives CA a neutral 3 STARS (out of 5) hold ranking.
Continue reading CA Reports Soft Earnings and Weak Outlook
Posted Jan 19th 2011 1:30PM by Brent Archer (RSS feed)
Filed under: Forecasts, Bad News, American Express (AXP), Options, Technical Analysis

American Express (
AXP -
option chain) stock is trading lower today after
the company announced it expects to report fiscal-Q4 earnings of 94 cents per share, excluding one-time items.
Analysts have forecast a profit of 95 cents per share. AXP also said it will record one-time charges totaling $113 million, related to restructuring and other changes. AXP will report full quarterly results on Monday, January 24. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on AXP.
This morning, AXP opened at $45.20. So far today the stock has hit a high of $45.70 and a low of $44.80. As of 12:15, AXP is trading at $45.17, down $1.20 (-2.6%). The chart for AXP looks bullish and
S&P gives AXP a positive 4 STARS (out of 5) buy ranking.
Continue reading American Express Drops on Weak Q2 Guidance
Posted Jan 11th 2011 2:00PM by Brent Archer (RSS feed)
Filed under: Major Movement, Bad News, Management, Advanced Micro Dev (AMD), Options, Technical Analysis
Advanced Micro Devices (AMD - option chain) stock is trading lower today after the company announced the resignation of CEO Dirk Meyer, naming Thomas Seifert interim CEO. Investors are surprised by this announcement, since Meyer took over AMD when the company was floundering and has since stabilized AMD. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on AMD.
This morning, AMD opened at $8.77. So far today the stock has hit a high of $8.80 and a low of $8.35. As of 12:25, AMD is trading at $8.49, down $0.70 (-7.6%). The chart for AMD looks neutral and S&P gives AMD a neutral 3 STARS (out of 5) hold ranking.
Continue reading AMD CEO Steps Aside Suddenly
Posted Jan 7th 2011 2:00PM by Brent Archer (RSS feed)
Filed under: Major Movement, Bad News, Canada, Options, Technical Analysis
Canadian Natural Resources (CNQ - option chain) stock is trading lower today after the company announced it has halted crude oil production at its Horizon oil-sands plant in Alberta, Canada, after a fire broke out in a plant facility Thursday. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on CNQ.
This morning, CNQ opened at $40.61. So far today the stock has hit a high of $41.84 and a low of $40.42. As of 12:15, CNQ is trading at $41.15, down $1.95 (-4.5%). The chart for CNQ looks bullish and S&P gives CNQ a positive 4 STARS (out of 5) buy ranking.
Continue reading Canadian Natural Resources Shuts Down Plant After Fire
Posted Jan 5th 2011 1:30PM by Brent Archer (RSS feed)
Filed under: Major Movement, Earnings Reports, Forecasts, Bad News, Family Dollar Stores (FDO), Options, Technical Analysis
Family Dollar Stores (FDO - option chain) stock is trading lower today after the company reported Q1 earnings this morning, posting a profit of $74.32 million, or 58 cents per share, on revenue of $2.00 billion. Analysts had forecast a profit of 61 cents per share on revenue of $1.98 billion. FDO also forecast Q2 earnings of 92 to 97 cents per share, below analysts' forecasts of $1.00 per share. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on FDO.
This morning, FDO opened at $45.18. So far today the stock has hit a high of $46.19 and a low of $44.85. As of 12:30, FDO is trading at $45.27, down $4.04 (-8.2%). The chart for FDO looks bullish and S&P gives FDO a positive 5 STARS (out of 5) strong buy ranking.
Continue reading Family Dollar Misses Q1 Earnings, Issues Weak Q2 Forecast
Posted Dec 27th 2010 2:00PM by Mark Fightmaster (RSS feed)
Filed under: Bad News

Biopharmaceutical firm Alimera Sciences (
ALIM) is considerably lower Monday (more than 16% at the time of writing) thanks to news that regulators have declined to approve it treatment for retinal swelling. The FDA sent Alimera a Complete Response Letter (CRL) regarding the New Drug Application (NDA) for Alimera's investigational drug ILUVIEN saying that it
can not approve the drug in its current form. While the CRL didn't request new studies, it asked for analyses of the safety and efficacy data through month 36 of the FAME Study - which includes exploratory analyses and those previously submitted to the FDA. These analyses will be done to further assess the benefits and risks of ILUVIEN. The original New Drug Application (NDA) only included data through 24 months.
Continue reading Alimera Sciences Plummets on FDA Decision
Posted Dec 23rd 2010 4:30PM by Hilary Kramer (RSS feed)
Filed under: Bad News, Eastern Europe
It has become a European tradition that the government owned airlines and phone companies are often "bossed" around by the politicians who have kept anything but an arm's length relationship when it comes to decision making. Many European countries hold ownership shares in the industries' major players, and it is very common for these governments -- including sometimes even their heads of state -- to meddle and interfere in their business affairs. Then, when there's even a whiff of economic endangerment, they run for the hills.
Continue reading The Phone Is off the Hook in Europe
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