Joseph Lazzaro
New York - http://
TransCanada: Pull-back is buy opportunity
TransCanada Corp.'s (TRP) shares, first recommended on May 11, 2009, at a price of $26.56, have pulled back, and the dip represents a buy opportunity, which is why I'm reiterating my buy rating for the stock.
TransCanada is natural gas play with promise: it's a natural gas transmission and storage company that also owns oil assets and electric power generation assets (including 19 wholly-owned power plants). A solid $1.45 annual dividend adds to the positive story.
Continue reading TransCanada: Pull-back is buy opportunity
ECB Trichet's comments show central banks' delicate balancing act
European Central Bank President Jean-Claude Trichet jolted the markets Friday with the announcement that the ECB will gradually withdraw the emergency cash injections it has added to the financial system, in order to prevent an acceleration in inflation."Not all our liquidity measures will be needed to the same extent as in the past," Trichet said at a conference in Frankfurt Friday, Bloomberg News reported. "Any non-standard measure whose continuation would pose a threat to the achievement of price stability must be undone promptly and unequivocally."
Continue reading ECB Trichet's comments show central banks' delicate balancing act
Look for ADP to rise with payrolls
If, in fact, jobless claims have peaked, that's good news for payroll services specialist Automatic Data Processing (ADP), and that's one reason I'm reiterating my buy rating for the company's shares, first recommended on June 22, 2009 at a price of $36.84. If you bought ADP in June, you're up about 20%.Despite the worst recession in more than 25 years – one that has devastated payrolls – ADP has held its own, with its stock price this year recovering about one-half its loss following the drop from its peak in 2007.
Continue reading Look for ADP to rise with payrolls
Tyson Foods: Meandering into the new year
Tyson Foods' (TSN) stock has meandered since first recommended on May 11, 2009 at a price of $12.35, but I'm sticking with the stock. Here's why: First, Tyson has the product diversity to adjust to increasingly demanding, educated U.S. consumers, who may, for example, favor chicken over pork one month, then do an end-run and return to red meat when steak prices drop.
Continue reading Tyson Foods: Meandering into the new year
Under the radar: Rising demand for Mexico-built auto engines is another recovery sign
Under the radar: Some trends are obvious enough and visible to all investors. Others are more-subtle, but are just as potent, and these often slip 'under the radar.'Case in point: Demand for Mexico-built vehicle engines is rising, helping to pull Mexico's economy out of it's recession, Bloomberg News reported.
The significance for investors? The increased demand for engines made south-of-the-border is being driven by a rebound in U.S. auto sales. Again, the increased sales trend is nothing to write home about -- U.S. automaker new vehicle sales rose in October and are expected to rise in November, as well, according to data compiled by Edmunds.com, Dow Jones reported, but the important dimension is the trend's direction.
United States on verge of historic Senate debate on health care
Any experienced investor knows that these are not normal times. But they could become truly historic times, if the United States is able to pass universal health care legislation in the the weeks ahead. Sen. Majority Leader Harry Reid, D-Nevada, has crafted a health care bill that would cut the U.S. budget deficit by about $130 billion over 10 years, while extending coverage to up to 94% of Americans, The Associated Press reported Thursday. The bill's estimate cost is $848 billion.
Continue reading United States on verge of historic Senate debate on health care
Goodyear Tire is undervalued
Goodyear Tire & Rubber Co.'s (GT) stock has meandered of late, but I'm nevertheless reiterating my buy rating for the company, first recommended on May 5, 2009 at a price of $13.30. Here's why. Institutional investors sold GT after the company reported a 15% reduction in Q3 revenue, and the view from here argues the selling was overdone. Goodyear will benefit from tire demand growth in 2010.
Continue reading Goodyear Tire is undervalued
Capital One: Close position, take profits
As expected, Capital One Financial Corp.'s (COF) stock has seen increased interest in the past six months, on the argument that charge-offs will peak in mid-2010. First recommended on May 7, 2009 at a price of $29.41, if you bought COF in May, you're up about 37%. However, technically the stock will face substantial two-year resistance at $43-45, more resistance above that, and then psychological resistance at $50. That's considerable resistance to overcome in a modest-growth U.S. economy.
Continue reading Capital One: Close position, take profits
Consider Schlumberger, because oil isn't going out of style
One can look at likely rising oil and gasoline prices one of two ways. You can get frustrated, or you can profit from it by buying Schlumberger Ltd. (SLB), which is why I'm reiterating my buy rating for the company, first recommended on May 6, 2009 at a price of $56.09. If you bought SLB in May, you're up about 18%.Some in the oil sector remain concerned about the recovery in demand for oilfield services. Based on the growth track for emerging markets, that concern is not warranted: the natural gas segment may encounter some head-winds, near-term, because in that energy commodity, the glut of supply has actually been matched by a low price. But oil? Forget about it. Business is booming: the supply glut of oil has done little to lower its price, which shows one the many roles oil plays (alternative asset, inflation hedge, weak dollar hedge) in the modern economy, to Schlumberger's benefit. The First Call FY2009/FY2010 EPS estimates for SLB are $2.71 to $2.81.
Continue reading Consider Schlumberger, because oil isn't going out of style
All the American people want for Christmas is 15 million new jobs
U.S. House Majority Leader Steny Hoyer, D-Maryland, says he expects the House to vote on legislation that would create more jobs by the year-end holiday recess. "Clearly 10.2% unemployment is unacceptable and is causing great pain to literally millions of people around the country," U.S. Rep. Hoyer said, CNN.com reported Tuesday.
Continue reading All the American people want for Christmas is 15 million new jobs
Obama approval rating dips below 50% for first time in Quinnipiac Poll
A minor caution flag for the Obama administration: President Obama's approval rating as surveyed by a major poll has fallen below 50% for the first time since his inauguration.Obama's approval rating fell to 48% in polling done by Quinnipiac University. The Quinnipiac University Poll surveyed 2,518 registered voters November 9-16 and has a margin of error of +/- 2%. The 48% approval rating is down from a 59% approval rating in February/March.
Further, the percentage of registered voters who approve of Obama's handling of the economy also declined, to 43% in November from 47% in October. On the economy, the approval rating was split along party lines: 13% of Republicans approved, compared to 38% for Independents, and 77% for Democrats.
Continue reading Obama approval rating dips below 50% for first time in Quinnipiac Poll
Avon is still calling
Avon Products (AVP) has broken through key resistance at $33, hence I'm removing my hold on the company's shares, first recommended on May 6, 2009 at a price of $23.12. If you bought in May, you're up about 50%. Still, it should be noted that this is probably the last opportunity to buy Avon shares and earn an outsized gain during the current economic expansion, as a $50-55 top for AVP is seen.
Continue reading Avon is still calling
Research in Motion: Hold shares
I'm placing a hold on Research In Motion's (RIMM) shares, first recommended on May 5, 2009 at a price of $77.07, pending its Q4 report in about a month. RIMM will report Q4 EPS on December 17, 2009, and the First Call Q4 EPS estimate is $1.04.
Continue reading Research in Motion: Hold shares
Northeast Utilities: A safe port amid uncertain seas
It goes without saying that I favor the electric power generation sector, and among them, fewer are steadier than Connecticut-based Northeast Utilities (NU), hence I'm reiterating my buy rating for the company, first recommended on May 6, 2009 at a price of $21.48. Don't look for mega revenue growth or gargantuan customer gains with NU, just predictable, steady earnings growth, evenly split between the company's generating/distribution business and its transmission business; look for the company's transmission sector to play an increasing role in revenue growth, moving forward. NU serves about 1.9 million customers, primarily in Connecticut, but also in New Hampshire and Massachusetts.
Continue reading Northeast Utilities: A safe port amid uncertain seas
General Cable Corp.: Pull-back is buy opportunity
Based on its decent Q3 performance and the 2010 outlook for the U.S./global economies, I'm reiterating my buy rating for General Cable Corporation (BGC), first recommended on May 5, 2009, at a price of $34.59.
General Cable, which develops, designs, manufactures, and distributes copper, aluminum, and fiber optic wire and cable products for the communications, energy and electrical markets, reported Q3 EPS of 55 cents, above the First Call Q3 EPS estimate of 53 cents. However, General Cable gave up yearly gains because it announced a Q4 production cut -- one that will likely weigh on Q4 earnings.
Continue reading General Cable Corp.: Pull-back is buy opportunity
Twitter finally reveals revenue ambition, wants to be Google -- but not yet
Google says: Chrome for Christmas
Why is gold marching higher? Ask the central bankers
