Money transfer service Western Union (WU), which I first discussed here on July 9, 2009, at a price of $16.49, continues to ascend, and I still favor the shares. WU cleared psychological resistance at $20 this winter.

In 2011, Western Union will likely generate 3% to 5% revenue growth in 2011, after a modest 1% to 2% rise in 2010.

Money transfer service Western Union (WU), first discussed here on July 9, 2009, at a price of $16.49, continues to see its stock grind higher, and I still like the shares.

Western Union will likely generate 3% to 5% revenue growth in 2011, after a modest 1% to 2% rise in 2010.

The better 2011 performance is expected because the recession in construction work, which reduced day-labor demand for money transfer services, appears to have ended, and the sector is recovering slowly, like Western Union's stock price.

If in June you held the shares of money transfer service Western Union (WU), first discussed here on July 9, 2009, at a price of $16.49, you're being rewarded, as the shares have rebound in the second half of 2010, after a trying first half.

In FY2010, Western Union will likely post a 2% to 3% revenue gain, followed by a 4% to 5% rise in FY2011. The recession in construction work -- which has reduced day-labor demand for money transfer services -- appears to have ended, and the sector is gradually recovering. Also, emerging markets, particularly those in Asia, offer considerable opportunities for WU.

The shares of Western Union (WU), which I first wrote about on July 9, 2009 at a price of $16.49, continue to veer lower, but the calculation is to stick with the trade, for the following reasons.

The first is not that encouraging: WU is only about $1.50 above the $14 sell/stop loss, hence there's not much more downside, should the stock continue to dip.

Second, the stock has tested and held support at $15 on two occasions this spring, and shares had recovered earlier in the year to about $19, prior to the Dow's recent swoon.

Western Union (WU), first discussed here on July 9, 2009 at a price of $16.49, continues to meander, but the bias is to stay with the play.

Western Union will likely post a 4-7% revenue gain for FY2010. However, the continued sluggish in construction work -- which has reduced day-labor demand for money transfer services -- has weighed on WU's revenue.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Aflac Inc. (AFL) posted better-than-expected Q4 earnings, though revenue fell short, and offered rosy guidance.
• Avon Products Inc. (AVP) posted Q4 earnings growth that met analysts' expectations but shares sold off.
• Cisco Systems inc. (CSCO) higher Q2 earnings topped the consensus estimate but cash flow fell.
• CME Group Inc. (CME) fell short of analysts' Q4 profit expectations, resulting in price-target cuts.
• ExxonMobil Corp. (XOM) posted better-than-expected Q4 earnings and revenue that boosted shares.

It's a close call, but I'm I'm reiterating my buy rating for Western Union (WU), first recommended on July 9, 2009, at a price of $16.49. The call is nuanced, so attention is advised.

The July call argued that WU would likely post a 4% to 7% revenue gain for FY2010. However, the continued contraction in construction work -- which has reduced day-labor demand for money transfer services -- has weighed on WU's revenue. The big unknown for 2010? Will labor markets begin to heal, as expected?

I'm reiterating my Buy rating for Western Union (NYSE: WU), first recommended on July 9, 2009 at a price of $16.49. If you bought WU then, you're up about 20%.

The July call confirmed an earlier calculation that pointed to a decent 4-7% revenue gain in FY2010 for Western Union.

This is a case in which the technical indicators have tipped the scale vs. the fundamentals. I'm issuing a Buy recommendation for Western Union (NYSE: WU) after the stock held a key technical support level.

That support level: the 200-day moving average - the toughest average to break in trading. After trending lower for about two months, veering toward the 200-Day MA, WU has closed above the 200-day moving average for four consecutive days, not including today. And, trading at $16.50 Thursday afternoon, WU is likely to close above the average, at $15.13, again.

Yesterday, several of America's largest and most well-know companies cut people at an alarming rate. The liquidation of Circuit City could put a total of 30,000 employees onto the street. Pfizer (NYSE: PFE) cut 2,400 sales people. AMD (NYSE: AMD) cut more than 1,000 people. Hertz (NYSE: HTZ) said it will let 4,000 people go, and Wellpoint (NYSE: WLP) will fire more than 1,000 people.

Bloomberg reported that GE (NYSE: GE) might fire up to 11,000 people in its financial unit.

So, in one day, as many as 60,000 people were out of work. A look at the activity shows why it will be so hard to arrest the drop in jobs. The companies involved in downsizing yesterday range from big pharma to transportation to tech to retail. The 24 hours were, in essence, a cross-section of the entire American economy suffering under the weight of the recession.

Economists say there cannot be a recovery with a reversal of the fall in unemployment. Unfortunately, addressing the cause of joblessness is has moved well beyond saving the retail industry and Detroit. Industry by industry, the entire system has become diseased.

Douglas A. McIntyre is an editor at 247wallst.com.

Western Union Company (NYSE: WU) provides a range of money transfer and bill payment services worldwide. Its consumer-to-consumer operations involve multi-currency and real-time processing systems for walk-in, online, and telephone money transfers. Its consumer-to-business operations enable payments to utilities, auto finance companies, mortgage servicers, financial service providers, and governmental agencies. The firm also offers money order products and advance payment services. Western Union does business through a network of more than 345,000 locations, in over 200 countries and territories.

Investors were pleased last week, when the company guided Y08 EPS to the higher end of the range $1.25-$1.29 and revenues to the higher end of the range $5.341-$5.439 billion. Analysts had been expecting $1.28 and $5.420 billion. Management also raised its long-term EPS growth objective from 12-14% to 15-18%, reaffirmed its long-term revenue growth objective of 10-12%, and announced that the board had authorized an additional $1 billion for share repurchases.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Best Buy Inc. (NYSE: BBY) beat Q1 estimates as consumers spent their government stimulus checks.
• Carnival Corp. (NYSE: CCL) posted better than-expected Q2 results but offered cautious Q3 guidance.
• Cyberonics Inc. (NASDAQ: CYBX) beat Q4 expectations and offered full-year guidance.
• FactSet Research Systems (NYSE: FDS) had better-than-expected Q3 results and 500 new subscribers.
• General Mills Inc. (NYSE: GIS) raised its full-year guidance, sending shares up near the 52-week high.
• Goldman Sachs Group Inc. (NYSE: GS) results beat the previous quarter and analysts' estimates.
• John Wiley & Sons Inc. (NYSE: JW.A) doubled its Q4 earnings due to an acquisition.
• Life Partners Holdings Inc. (NASDAQ: LPHI) lifted its Q1 outlook after "best quarter" in company history.
• Lindsay Corp. (NYSE: LNN) Q3 profits nearly doubled, but the share price plunged anyway.
• Meade Instruments Corp. (NASDAQ: MEAD) narrowed its full-year net loss due to restructuring.
• Pall Corp. (NYSE: PLL) beat Q1 expectations on sales growth that was broadly based across markets.
• Titan Machinery Inc. (NASDAQ: TITN) beat Q1 estimates on strong demand for agricultural equipment.
• Vermont Pure Holdings Ltd. (AMEX: VPS) posted strong Q2 results despite a bad debt write-off.
• Western Union Co. (NYSE: WU) said 2008 profits would beat estimates and announced share buyback.

More earnings highlights from this week: Morgan Stanley, FedEx, Ford, GE, Circuit City and others

Western Union (NYSE: WU) shares are trading higher today after the company said fiscal-2008 earnings will likely be in higher end of the range of $1.25 to $1.29 per share previously forecast, above analysts' estimates of $1.27 per share. WU also approved a plan to repurchase $1 billion in common stock. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on WU.

After hitting a one-year low of $15.00 in August, the stock hit a one-year high of $24.83 in December. WU opened this morning at $24.35. So far today the stock has hit a low of $24.08 and a high of $25.45. As of 10:35, WU is trading at $25.43, up $2.27 (9.8%). The chart for WU looks bullish and steady, while S&P gives the stock a neutral 3 Stars (out of 5) Hold rating.

For a bullish hedged play on this stock, I would consider a November bull-put credit spread below the $20 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.7% return in just five months as long as WU is above $20 at November expiration. Western Union would have to fall by more than 21% before we would start to lose money. Learn more about this type of trade here.

WU hasn't been below $20 by more than a few cents since October and has shown support around $22.50 recently. This trade could be risky if the company's earnings (due out 7/22) don't match their guidance. but even if that happens, this position could be protected by the support the stock might find at its 200 day moving average, which is currently around $22 and rising.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in WU.

Freddie Mac (NYSE: FRE) is trading up about 7% on better-than-expected earnings.

Cardiome Pharma (NASDAQ: CRME) is up 9% on a good quarter.

Whole Foods (NASDAQ: WFMI) is selling off 9% on weak quarterly numbers.

Under Armour (NYSE: UA) is up 3% on news that S&P MidCap 400.

Douglas A. McIntyre is an editor at 247wallst.com.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• AFLAC Inc. (NYSE: AFL) reported better-than-expected earnings for the first quarter.
• Ambac Financial Group Inc. (NYSE: ABK) posted a wider-than-expected loss; shares hit new low.
• Amdocs Ltd. (NYSE: DOX) beat Q2 estimates on strength in the managed services businesses.
• Amphenol Corp. (NYSE: APH) beat expectations in the first quarter and raised its guidance.
• Amylin Pharmaceuticals Inc. (NASDAQ: AMLN) posted a larger-than-estimated Q1 loss.
• Aptar Group Inc. (NYSE: ATR) posted record Q1 results and raised its Q2 guidance.
• Bank of America (NYSE: BAC) Q1 earnings plunged on further housing-related write-downs.
• Brinker International Inc. (NYSE: EAT) narrowly beat earnings expectations on cost cutting.
• Bristol-Myers Squibb Co. (NYSE: BMY) beat analysts' estimates for the first quarter.
• Credit Suisse Group (NYSE: CS) reported a wider-than-forecast loss on subprime-related write-downs.
• Cree Inc. (NYSE: CREE) earnings slipped while revenues soared 29%.
• Eli Lilly & Co. (NYSE: LLY) reported worse-than-expected Q1 earnings on discontinued product charge.
• Gannet Inc. (NYSE: GCI) beat low expectations as earnings and revenue continue slump.
• Hasbro Inc. (NYSE: HAS) posted better-than-expected Q1 earnings on international strength.
• JAKKS Pacific Inc. (NASDAQ: JAKK) missed Q1 expectations on restructuring and litigation costs.
• Kimberly-Clark Corp. (NYSE: KMB) beat EPS estimates by a penny, as revenue jumped 10%.