Stony's Saturday Reader*

Quote from Warrior4g:

how bout CRM right here stoney? at 55?
More...

Warrior I sense you and I are very alike. How about CRM/ very innocent question at the time; it's not like you like stocks with a little added something that makes you look good or something.... so I send you the reason not to buy and then I'm trying to open my clogged ear on my bed and the bloomberg runs a takeover TALE! It's real hat in the hand stuff but apparently they have physically approaches someone and demanded the moon (it's a big premium) I'm sorry I know this is no help but like I said this closed ear is hurting my hearing and my dog barked just as they said who the buyer might be!

Why didn't you tell stoney the WHOLE story?
Salesforce.com (NYSE: CRM) shares are higher today after a Piper Jaffray analyst reiterated his Buy rating and $70 price target on the stock, citing increased user satisfaction and the potential of higher revenues with the company's adoption of the AppExchange program. But the real excitement on the Street stems from rumors that the CRM has approached Oracle (NASDAQ: ORCL) with a $75 a share sale offer. If you think that the company 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 CRM.

After hitting one-year low of $37.24 in August, the stock hit a one-year high of $65.52 in December. CRM opened this morning at $53.06. So far today the stock has hit a low of $53.06 and a high of $55.90. As of 11:25, CRM is trading at $54.76, up $3.89 (7.7%). The chart for CRM looks bearish 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 March bull-put credit spread below the $40 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. This particular trade will make a 9.9% return in just six weeks as long as CRM is above $40 at March expiration. Salesforce.com would have to fall by more than 26% before we would start to lose money.

CRM hasn't been below $40 since September and has shown support around $50 recently. This trade could be risky if the economy continues to worsen, but even if that happens, this position could be protected by the support the stock might find from its 200-day moving average, which is currently around $48 and rising.
 
Cree, Inc. NASDAQ CREE 34.04 +1.82
Sigma Designs, NASDAQ SIGM 41.58 +1.42
Chindex Int. Inc. NASDAQ CHDX 40.83 +3.09 (8.19%)
Calgon Carbon Corporation NYSE CCC 18.10 +1.37 (8.19%)
 
Bit of discord between stoney and one of his brokers. If you said the following- "and looking now at ole fave YGE' , that's ramping too...." and then you left the house and the monster begins to move up a whole $2! Wouldn't you assume the dude would have bought the damn stock!

Now I am going to have to do it myself- that or South American mini Ebay Meli.

MELI > Ipo @ $22 straight up to $81 and then in the matter of 3 weeks a ski slope from $81 to $31 low and then yesterday a snap back $4 to the $35 level w/ a late late day SURGE. Declining tops resistance comes into play at $39- that's $4 or Yinglee Green might give us another $2.... some morning ideas to chew on... A trusted confidant who posts on this thread also informs me that NUAN had a very nice conference call yesterday after the close.... ~ stoney
 
i told you friday my 2 favorite plays on YOUR list were CREE and CHDX. they certainly did'nt disappoint.
as for CRM,I assumed you knew the news(sorry).
 
by the way, ASEI missed by a country mile but analysts are defending the damn thing. i have seen this with ASEI before,i gaps lower on missed earnings and then rebounds. their earnings seem to be lumpy but on an upward trajectory,just keep an eye on ASEI today.
 
Quote from Warrior4g:

i told you friday my 2 favorite plays on YOUR list were CREE and CHDX. they certainly did'nt disappoint.
as for CRM,I assumed you knew the news(sorry).
More...

Warrior I can only point towards an old Odd Couple episode when Felix says " Never Assume because you make an ASS (out of) U & Me!

Yes those stks roared and did just about everyone on this thread except for SYNA & LXU could those two ramp today for a perfect record?

Real quick because I'm late for a workout- LXU

52-week low / high: $11.85 / $28.85
Shares Outstanding: 20.83 million
Market Capitalization: $544million

LSB’s geothermal heat pumps can be used by consumers looking to save on their energy bills because the pumps use solar energy stored in the earth to provide climate control and hot water. With an installed base of more than 3 million, LSB’s units are used in locations as diverse as the Statue of Liberty, the Rockefeller Center, luxury Las Vegas hotels and family residences.

Some of LSB’s products use non-ozone depleting refrigerants. The units also provide “free” domestic hot water and noise-free operation, and have a long lifespan of around 50 years.

The Oklahoma City-based firm is involved in two diverse businesses: chemicals and climate control. About 53% of the company’s business comes from chemicals, 45% from climate control and 2% from engineered products. LSB employs about 1,900 people and has six manufacturing and distribution facilities in Texas, Oklahoma, Arkansas and Alabama.

LSB Industries was founded in 1961 and had its initial public offering in 1969. Why should investors take notice of the 47-year-old company? Because LSB’s products are energy efficient, use less fossil fuels and release fewer greenhouse gases, some investment professionals, including CNBC’s Jim Cramer, think any energy-related legislation under a new presidency could offer significant upside to the company.

In other good news for investors, LSB isn’t that well known. The company’s average daily trading volume is only about 300,000 shares. Also, only one investment bank — Avondale Partners — covers the company. Avondale ranks the company as a “market outperform” and with good reason.

Over the last three years, LSB has posted earnings-per-share growth of 102%. During the last-reported third quarter, the company posted net income of $18.3 million, or $0.77 per share, soaring 423% from $3.5 million, or $0.18 per share, a year earlier. The firm’s quarterly net sale increased 19% to $147.6 million, from $124 million.

In a January interview with The Oklahoman, LSB President Barry Golsen said the company completed a record year “in all resepects.”

"Both of those core businesses are market and technology leaders in their products," Golsen said. "We've had many local plant expansions, we've hired hundreds of new employees and we're now a very major employer in Oklahoma City."

Going forward, he said LSB is well-positioned to maintain its competitive positions.

There are, of course, risks. LSB is exposed to the weak domestic housing market.... ~ si
 
re MELI >

One of the strongest stocks today is MercadoLibre, Inc. (MELI). Shares of this Latin American online auctioneer are up 10% but they still have some challenges to overcome. Check out the recent action...

Regular readers may remember this chart from two weeks ago when we saw MercadoLibre stage an immediate reversal after trying to bounce off support. The updated view here shows the stock failed to hold at its recent lows. That zone near 45 now sits as potential overhead resistance.

The one thing that stands out is that even with today's gains, the stock still hasn't decisively broken the downtrend in place from the December highs. However, a bounce does have to start "somewhere" so that isn't always a reason to ignore strength.

In my previous post on MercadoLibre I noted the shares had dropped below the bulk of the front-month call open interest. As the chart to the right shows, that is still the case, but those options expire this week. The March series (available here by checking the button that says "March") looks to be a bit lighter.

The question is whether selling pressure has reached an exhaustion point. The stock is down more than 50% from its peak and has neared oversold levels. Today's bounce would seem to suggest some buyers are willing to step in, but the stock still has to break that near-term downtrend and (eventually) contend with that resistance near 45. ~ si
 
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