Sirtris Pharmaceuticals Plans to Go Public
2007-04-14 01:54:51
On March 1st, 2007, Sirtris Pharmaceuticals filed to go public on the NASDAQ stock exchange. While all the details about the public offering aren’t yet clear, biotechnology investors are already beginning to drool over the possible offering. Recently featured in Fortune magazine as the company producing an “anti-aging miracle drug,” Sirtris may be able to tap into a $25 billion dollar industry. If the company goes public, investors could see rapid increases in stock return, and a heightened level of research on the “anti-aging” due to the influx of investors’ funds.
J.P. Morgan will manage the public offering and CIBC World Markets Corp., Piper Jaffray Co., JMP Securities LLC, and Rodman Renshaw, LLC will serve as co-managers for the release. Unfortunately, like any major IPO (Initial Public
Offering), investors need to have the “in” to get in on the ground floor. In this case, investors need to be J.P. Morgan clients or fall under one o
Leopard Release Date Delayed for iPhone
2007-04-13 03:43:42
On a brief note, Apple Inc. (AAPL) released news today that the company would need to delay the release of its new operating system, Mac OS X Leopard
. The release has long been planned for Spring, but now, the release should be in October.
“…iPhone
contains the most sophisticated software ever shipped on a mobile device, and finishing it on time has not come without a price — we had to borrow some key software engineering and QA resources from our Mac OS X team…”
While the iPhone has been making great progress, it seems as though Apple’s number one priority will not be the Leopard release. Unfortunately, Apple stock could see a number of negative days before the release of the new OS. In after hours trading on Thursday, AAPL was down -1.77 a share. The coming weeks could continue to be bumpy, and rumors have been brought up about a possible slow down in Apple system sales leading up to the release. Fortunately, I don’t see too much downside if th
Read more: Release
Jones Soda Co. May Be the Next Soda Buyout
2007-04-12 04:34:55
The American beverage industry has been quite uneventful over last couple years. Coca Cola (KO) has slid 10% in the last five years. Pepsi (PEP) has returned about 20% in that same five year period. While certainly a large difference in stock returns, the averages for the sector have barely moved. The current industry is growing, but at a very small pace, and therefore, the returns are a sign of major brands like Coke reaching a max saturation level. Coke is across the world, from the United States to Iran. The diversified major beverage companies need to inspire current brands, along with capitalizing on relatively new brands. Unfortunately for companies such as Coca Cola, to avoid a maximum market penetration, they need to understand that the purchase of a small-mid cap beverage company may revitalize the outlook for the company. Enter Jones Soda
(JSDA), and the beverage majors may have found their next niche soda purchase.
Current market capitalization for Jones Soda Co. is at arou
Read more: Buyout
The Need for Private Equity and Shareholder Activism
2007-04-11 07:08:41
The management of American companies has now reached the level of the absurd. Recent CEO paydays and bonuses have been paying for poor performance, all while many of these companies are still in the red. For instance, Ford Motor Company (F) recently paid CEO, Alan Mulally, $28 million in salary and bonuses, despite having worked for the company only 4 months. The audacious pay scales of the current management in many major companies needs to change, and shareholders around the world need to fight to have proper performance based management pay and reasoned bonuses during losing quarters.
Alan Mulally is the most recent executive to be overly rewarded for his work. With a starting annual salary of $2 million, Alan would be a properly paid CEO, but looking past his salary, investors should delve into the bonuses. Stock grants for $920,404, stock options valued at $7.8 million, $7.5 million hiring bonus, $11 million that Ford described as an offset for forfeited performance and stock opt
Read more: Private
, Equity
, Activism
Sears Holdings On Path for a Share Price of $200
2007-04-08 22:34:52
Lampert has long been regarded as one of the best investors of this era. Amassing a quiet fortune, valued in the billions, Edward S. Lampert is now in control of the first investment bank retailer. Currently, Lampert is the chairman of Sears
Holdings
(SHLD), he is known for breaking down the numbers and figuring the profit margins better than anyone in the field. Despite being a third rung retailer, Sears is set to break out and buy large stakes in companies, much like Berkshire Hathaway’s (BRK.A - BRK.B) Buffett did years ago.
With a growing amount of cash flow, liquidity is more flexible than ever at SHLD. The flexibility could ultimately allow Lampert to purchase large positions in major companies, much like any private equity firm, but the money will be from liquid assets at Sears Holdings. The Chairman is known for his role as the owner and manager of his own, ESL Investments hedge fund. His work often is synonymous with purchasing influential portions of a company and for
Read more: Share
Breaking Down the Airline Sector with Frontier Airlines
2007-04-07 02:39:41
At a mere $6.00 a share, Frontier
Airline
s (FRNT) looks to be ripe for the picking. I’ve long been against the purchase of a stock in the airline industry. The entire industry always appears to be struggling to make a consistent profit, despite having incredibly full flights and constantly overbooking.
Over the most recent spring break, I experienced first-hand the incredible stress and difficulty of flying out. Being a standby passenger, the only opportunity to fly on the plane is if the flight has an open seat. Flying standby can be great, free flights and flexibility, but unfortunately, the “standby” class can be horrible during busy travel. During the spring break season, the flights consistently had to ask for volunteers. As the spring break travel rush begins to diminish, airline travel will ramp up once again for Easter weekend. Ultimately, placing extreme pressure on flights and leaving the airlines with consistently full flights. Afterwards, passengers should
Read more: Breaking
, Airlines
Tense Trading Continues
2007-04-05 17:23:18
On Thursday, April 5th, markets were flat and in slightly positive territory. Investors need to be constantly scrutinizing this recent uncertainty and nervousness in the market. There is no clear bottom in sight if bad news erupts. Take some money off the table, mainly the gambles or speculation. Understand that the speculative plays will suffer the worst in negative and bearish markets.
There are 3 major factors putting tremendous pressure on investors and the overall sentiment of the market.
Conflicts throughout the Middle East
Increased worry and wonder with the recent Britain soldiers being kidnapped and held as prisoners. Iraq is as bad as ever. Unfortunately, the United States continues to have a President that does nothing but relentlessly encourage citizens to “stay the course.” Change is needed, and the United States government needs to make drastic changes now.
Sub-Prime Mortgages
The threat that homeowners may not shop and/or buy discretionary products due to mo
Read more: Tense
, Trading
Purchase Season
2007-04-05 01:55:53
A new addition to the site will be updates about the MarketMatador.com portfolio. By including stock picks in the blog, audiences will be able to, at first-hand, see what the next trades should be and how the site’s portfolio is performing as well.
Below is a current snapshot of the portfolio as of 04/04/07:
Currently, the portfolio includes:
Apple Inc. (AAPL)
Goldman Sachs (GS)
AT&T (T)
Sears Holdings (SHLD)
Updates will be announced each time, and an addition to the portfolio will soon be made. For now, the market is on the upside, but if investors see a drop in the market, it may be time to step in and buy.
Bookmark to:
Read more: Purchase
, Season
Big Brother Oil Stunting Ethanol’s Growth
2007-04-03 06:52:41
No doubt one of the hottest topics on Wall Street is Ethanol, E85 to be more specific. E85 is 85% ethanol, which can be produced from various agricultural products like corn or soy, and 15% regular petrol. E85 is a tremendous step towards energy independence, but one of the largest obstacles so far, lies in the road ahead.
Now more than ever, it’s clear that big oil companies, like ExxonMobil (XOM), ConocoPhillips (COP), and Chevron (CVX) are severely restricting the possibilities of growth for E85 fuels. In a recent article entitled, “Fill Up With Ethanol? One Obstacle Is Big Oil Companies,” Laura Meckler of the Wall Street Journal points out the idea that there are only only a small fraction of the 170,000 U.S. gas stations currently offering E85.
Much of the general public now understands the possibility that Ethanol may have on our domestic markets, but unfortunately, big oil is shunning the new alternative, and treating it as a second rate product. For obvious re
Read more: Brother
, Growth
, Big Brother
Ethanol Causes Side Effects
2007-03-31 03:30:08
Ethanol has seen an incredible boom recently. A boom for multiple years, as investors and the general public realize the greatest possibility for energy independence ever. Ethanol is one of the easiest fuels to make, as a variety of agricultural materials can be broken down to make the fuel. Such crops as corn and soy are commonly associated in the production and development of ethanol. Farmers, ethanol companies, markets, and investors all stand to obviously benefit from the boom.
In the last few months, investors have been watching CNBC, and seeing the boom in the production and development of ethanol products. The industry is without a doubt booming, and in a previous article, I wrote about how the boom may be followed by a tech-like bust, but until then, the rush to enter the market continues. Today, audiences of CNBC may have finally seen the words they’ve been waiting for. Farmers are going to plant up to 90 million acres of corn for the development of petrol products.
The mov
Read more: Effects
, Side Effects
Revisiting AT&T and the 3.6% Dividend
2007-04-17 03:33:14
The combination of AT&T, SBC, and BellSouth, makes “The New AT&T” the largest domestic telecommunications provider. Almost at a monopolistic level of telecom control, AT&T (T) has one of the greatest operations in America. In the next two to three months, AT&T should see a tremendous pop in share prices due to its partnership with Apple (AAPL).
As most investors already know, Apple has recently partnered with AT&T to deliver service to the new iPhone. Apple has signed a two-year service contract with Cingular (”The New AT&T), and for the first two years, the iPhone will run solely on the AT&T network. Ultimately, the deal has its advantages and disadvantages. Unfortunately for AT&T, the revenue from subscriptions and contracts due to the iPhone will be shared with Apple. On the other hand, AT&T stands to see a tremendous increase in revenue, not already priced into the stock, and have an increased service subscriber base. The &ldquo
Read more: Dividend
Dylan “The Commissioner” Ratigan on WallStrip
2007-04-17 03:25:59
“Lindsay sits down with the man who reigns supreme as “Commissioner
” of the fastest money on CNBC, Dylan
Ratigan.”
Friday, March 23, 2007 at Fast Money Studios:
The Jones Soda Rally
2007-04-16 15:58:15
At 9:46 AM EST, Jones Soda Co. (JSDA) was once again rallying. Rally
ing on nothing but the speculation of a possible buyout, which is something I talked about in a previous article. Once again adding to the recent three day streak, Jones was up about 8.2%. This brings the total three day gain since the recommendation to about 30%. The selloff that I expected to see today doesn’t appear to be happening and the stock seems to be as bullish as ever, but investors should beware of a possible sharp drop from future profit taking and shorting of the stock.
Making Money from the Impending Water Crisis
2007-04-16 03:22:04
About 70 percent of the Earth is made up of water. 2 percent of that water is “fresh water,” of which 1.6% is locked in the polar ice caps. In other words, only a small percentage of Earth’s water can be used by humans. Even more disturbing, 1 billion of today’s population doesn’t have clean drinking water. The lack of clean water is also a leading cause of diseases today. In Iraq, the United Nations is reporting that the decrease in proper drinking water is leading to an increase death rate in children from diarrhea. In 40 years, India will have outstripped the available drinking water from the country. Investors have the opportunity to make money, and at the same time, make an incredible difference to the world around them.
There are a number of water resource companies currently traded on the NYSE and NASDAQ stock exchanges. Even more numerous are the number of different industries and plays in the water sector as a whole. Watts Water Technologies (WTS)
Read more: Money
, Crisis
The All-New MarketMatador.com Podcast
2007-04-18 05:36:31
Tell us what you think! Leave us a comment and will be sure to get back to you. It’s our first attempt at entering the podcast area of blogging, so don’t hesitate to give us constructive criticism.
Hope everyone enjoys the podcast! (Sorry for the microphone pops, the next podcast will better handle the compression of sounds)
-MarketMatador Crew
MM_41707_Pod001
Stocks Discussed: JSDA, AAPL, FRNT, SHLD, and the Oil Industry.
Click Here to Manually Download: MM_41707_Pod001.mp3
Disclaimer: MarketMatador.com contains Sam Lustgarten’s own opinions, and none of the information contained herein constitutes a recommendation by Sam Lustgarten or MarketMatador.com that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You further understand that Sam Lustgarten will not advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, trans
Read more: Podcast
, com Podcast
The Sell in May and Go Away Market
2007-04-17 16:26:21
Summer is only a few weeks away, and as investors know, the stock market enters a small volume trading trend throughout the entire Summer. The Summer months are often slightly bearish and tend to trend south, hence the saying, “Sell in May and Go Away.”
In history, there have been few consistencies in the equity markets. The 8% year over year average for the market indices and the Summer months are two of the strongest tendencies. Investors are now focusing in on the often slow trading months of the season. On the chart below, investors can see a general green trend line, which highlights the Summer period of trading. The blue 50 day moving averages also reflect the somewhat negative sentiment.
Before the stock market opened on Tuesday, April 17th, 2007, investors were nervous about the impending months, earnings, negative foreign markets, and customer index reports. All of these factors are creating a certain nervousness to equity markets. Fortunately, earnings reports ou
Read more: Market
A Toyota Motor Market
2007-04-20 15:10:11
At 13x 2008 earnings, Toyota
Motor
(TM) is set to make an incredible rally as the earnings continue upwards. Currently, the price-to-earnings multiple is at about 15.2x. On Thursday, April 19th, 2007, Toyota closed at $124.17. A far cry from the 52 week high of $138.00, which was set on February 27th, 2007. Even though Toyota Motor doesn’t create the most fuel-efficient vehicles in the world, when it comes to the Americas, TM is set to deliver, and the hybrid lines are ready for optimal revenue.
The overall analyst sentiment over the stock is quite neutral, leaving room for upgrades, and therefore, nice pops in the stock. Below is a chart of four research companies, and their ratings on Toyota Motor. Overall, every rating is straight down the middle.
Unlike its fellow competitors GM (GM) and Ford (F), Toyota has future prospects that continue to show incredible earnings growth and greater market share. GM and Ford consistently appear to be on the verge of going completely bank
Read more: Market
MarketMatador.com Podcast MM_41907_POD002
2007-04-20 02:36:35
The second podcast for MarketMatador.com! Subscribe now on iTunes, see below.
Hope everyone enjoys the second podcast! Keep up the e-mails and comments! TheMatador@MarketMatador.com
-The MarketMatador.com Crew
MM_41907_Pod002
Stocks Discussed: GOOG, UTX, JBLU, JSDA, and BNI.
Click Here to Manually Download: MM_41907_Pod002.mp3
Click Here to Subscribe through iTunes
Disclosure: Long United Technologies (UTX)
Read more: Podcast
, com Podcast
Strong International Growth at the Heart of United Technologies
2007-04-19 15:39:46
Yesterday, United
Technologies (UTX) released fantastic earnings numbers, beating estimates by a penny. UTX reported a profit of $819 million or 82 cents a share. The street consensus was at 81 cents a share. The company’s strong profit growth was a direct result of international growth and emerging markets. As the street begins to fully comprehend the earnings story and the highly diversified investment structure, investors could see a bullish run for the stock.
Demand for jet engines and Otis elevators were cited for making the incredible surge in growth this quarter. Even though the Hartford, Connecticut company’s headquarters are based in the United States, 60% of United Technologies’ revenue is from international business. Chief executive, George David, said that despite the recent American housing market trouble, the international market’s growth is key to the company’s 9 to 13 percent growth estimates. Strong
growth out of China and Europe were at t
Read more: International
, Growth
, Heart
You’re Invited to Dow 13,000!
2007-04-21 01:09:08
On Friday, the markets were off to the races. Immediately after the market open, the Dow Jones Industrial Average rallied over $130. After settling out later in the day, the market traded on slightly lower volume and began to tapper off. For many hours, the market was trading in a range in the mid 110 area, and as the market started to prepare for Friday’s close, the volume noticeably increased. The noticeable increase ultimately contributed to the market confidently finishing the day on the highest note of 12,961.98, up 153.35.
The day started out bullish with options expiration adding to market volume. Eventually, the market continued the high volume gain, to finish at 694,578,000 for the DJIA, versus an average of 440,647,400.
Before the market open, CNBC was feeling a big open, and commented on all the floor traders attempting to get ahead of the bell. As expected, the market opened up tremendously positive, but talk of Dow 13,000 was subdued. The milestone could po
A Toyota Motor Market
2007-04-20 15:10:11
At 13x 2008 earnings, Toyota
Motor
(TM) is set to make an incredible rally as the earnings continue upwards. Currently, the price-to-earnings multiple is at about 15.2x. On Thursday, April 19th, 2007, Toyota closed at $124.17. A far cry from the 52 week high of $138.00, which was set on February 27th, 2007. Even though Toyota Motor doesn’t create the most fuel-efficient vehicles in the world, when it comes to the Americas, TM is set to deliver, and the hybrid lines are ready for optimal revenue.
The overall analyst sentiment over the stock is quite neutral, leaving room for upgrades, and therefore, nice pops in the stock. Below is a chart of four research companies, and their ratings on Toyota Motor. Overall, every rating is straight down the middle.
Unlike its fellow competitors GM (GM) and Ford (F), Toyota has future prospects that continue to show incredible earnings growth and greater market share. GM and Ford consistently appear to be on the verge of going completely bank
Read more: Market
MarketMatador.com Podcast MM_41907_POD002
2007-04-20 02:36:35
The second podcast for MarketMatador.com! Subscribe now on iTunes, see below.
Hope everyone enjoys the second podcast! Keep up the e-mails and comments! TheMatador@MarketMatador.com
-The MarketMatador.com Crew
MM_41907_Pod002
Stocks Discussed: GOOG, UTX, JBLU, JSDA, and BNI.
Click Here to Manually Download: MM_41907_Pod002.mp3
Click Here to Subscribe through iTunes
Disclosure: Long United Technologies (UTX)
Read more: Podcast
, com Podcast
Strong International Growth at the Heart of United Technologies
2007-04-19 15:39:46
Yesterday, United
Technologies (UTX) released fantastic earnings numbers, beating estimates by a penny. UTX reported a profit of $819 million or 82 cents a share. The street consensus was at 81 cents a share. The company’s strong profit growth was a direct result of international growth and emerging markets. As the street begins to fully comprehend the earnings story and the highly diversified investment structure, investors could see a bullish run for the stock.
Demand for jet engines and Otis elevators were cited for making the incredible surge in growth this quarter. Even though the Hartford, Connecticut company’s headquarters are based in the United States, 60% of United Technologies’ revenue is from international business. Chief executive, George David, said that despite the recent American housing market trouble, the international market’s growth is key to the company’s 9 to 13 percent growth estimates. Strong
growth out of China and Europe were at t
Read more: International
, Growth
, Heart
The All-New MarketMatador.com Podcast
2007-04-18 05:36:31
Tell us what you think! Leave us a comment and will be sure to get back to you. It’s our first attempt at entering the podcast area of blogging, so don’t hesitate to give us constructive criticism.
Hope everyone enjoys the podcast! (Sorry for the microphone pops, the next podcast will better handle the compression of sounds)
-MarketMatador Crew
MM_41707_Pod001
Stocks Discussed: JSDA, AAPL, FRNT, SHLD, and the Oil Industry.
Click Here to Manually Download: MM_41707_Pod001.mp3
Click Here to Subscribe through iTunes
Disclaimer: MarketMatador.com contains Sam Lustgarten’s own opinions, and none of the information contained herein constitutes a recommendation by Sam Lustgarten or MarketMatador.com that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You further understand that Sam Lustgarten will not advise you personally concerning the nature, potential, value or suitability of any particular se
Read more: Podcast
, com Podcast
The Sell in May and Go Away Market
2007-04-17 16:26:21
Summer is only a few weeks away, and as investors know, the stock market enters a small volume trading trend throughout the entire Summer. The Summer months are often slightly bearish and tend to trend south, hence the saying, “Sell in May and Go Away.”
In history, there have been few consistencies in the equity markets. The 8% year over year average for the market indices and the Summer months are two of the strongest tendencies. Investors are now focusing in on the often slow trading months of the season. On the chart below, investors can see a general green trend line, which highlights the Summer period of trading. The blue 50 day moving averages also reflect the somewhat negative sentiment.
Before the stock market opened on Tuesday, April 17th, 2007, investors were nervous about the impending months, earnings, negative foreign markets, and customer index reports. All of these factors are creating a certain nervousness to equity markets. Fortunately, earnings reports ou
Read more: Market
Revisiting AT&T and the 3.6% Dividend
2007-04-17 03:33:14
The combination of AT&T, SBC, and BellSouth, makes “The New AT&T” the largest domestic telecommunications provider. Almost at a monopolistic level of telecom control, AT&T (T) has one of the greatest operations in America. In the next two to three months, AT&T should see a tremendous pop in share prices due to its partnership with Apple (AAPL).
As most investors already know, Apple has recently partnered with AT&T to deliver service to the new iPhone. Apple has signed a two-year service contract with Cingular (”The New AT&T), and for the first two years, the iPhone will run solely on the AT&T network. Ultimately, the deal has its advantages and disadvantages. Unfortunately for AT&T, the revenue from subscriptions and contracts due to the iPhone will be shared with Apple. On the other hand, AT&T stands to see a tremendous increase in revenue, not already priced into the stock, and have an increased service subscriber base. The &ldquo
Read more: Dividend
Dylan “The Commissioner” Ratigan on WallStrip
2007-04-17 03:25:59
“Lindsay sits down with the man who reigns supreme as “Commissioner
” of the fastest money on CNBC, Dylan
Ratigan.”
Friday, March 23, 2007 at Fast Money Studios:
The Jones Soda Rally
2007-04-16 15:58:15
At 9:46 AM EST, Jones Soda Co. (JSDA) was once again rallying. Rally
ing on nothing but the speculation of a possible buyout, which is something I talked about in a previous article. Once again adding to the recent three day streak, Jones was up about 8.2%. This brings the total three day gain since the recommendation to about 30%. The selloff that I expected to see today doesn’t appear to be happening and the stock seems to be as bullish as ever, but investors should beware of a possible sharp drop from future profit taking and shorting of the stock.
Making Money from the Impending Water Crisis
2007-04-16 03:22:04
About 70 percent of the Earth is made up of water. 2 percent of that water is “fresh water,” of which 1.6% is locked in the polar ice caps. In other words, only a small percentage of Earth’s water can be used by humans. Even more disturbing, 1 billion of today’s population doesn’t have clean drinking water. The lack of clean water is also a leading cause of diseases today. In Iraq, the United Nations is reporting that the decrease in proper drinking water is leading to an increase death rate in children from diarrhea. In 40 years, India will have outstripped the available drinking water from the country. Investors have the opportunity to make money, and at the same time, make an incredible difference to the world around them.
There are a number of water resource companies currently traded on the NYSE and NASDAQ stock exchanges. Even more numerous are the number of different industries and plays in the water sector as a whole. Watts Water Technologies (WTS)
Read more: Money
, Crisis
Sirtris Pharmaceuticals Plans to Go Public
2007-04-14 01:54:51
On March 1st, 2007, Sirtris Pharmaceuticals filed to go public on the NASDAQ stock exchange. While all the details about the public offering aren’t yet clear, biotechnology investors are already beginning to drool over the possible offering. Recently featured in Fortune magazine as the company producing an “anti-aging miracle drug,” Sirtris may be able to tap into a $25 billion dollar industry. If the company goes public, investors could see rapid increases in stock return, and a heightened level of research on the “anti-aging” due to the influx of investors’ funds.
J.P. Morgan will manage the public offering and CIBC World Markets Corp., Piper Jaffray Co., JMP Securities LLC, and Rodman Renshaw, LLC will serve as co-managers for the release. Unfortunately, like any major IPO (Initial Public
Offering), investors need to have the “in” to get in on the ground floor. In this case, investors need to be J.P. Morgan clients or fall under one o
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