February 22, 2011

NO IMPACT ON NETFLIX (NFLX) FROM NEW SERVICE BY AMAZON (AMZN)

As we expected, Amazon (AMZN) announced that its Prime Members will get unlimited streaming of more than 5000 movies and tv shows at no additional cost. This development was already in our model for Netflix(NFLX). We do not expect material impact on Netflix growth by this offering from Amazon. However, we will be vigilant about possibility of stronger offerings from Amazon.

We will continue to maintain our remaining long position on Netflix.

… Please click here or the title below to read more.

February 22, 2011

TWO UPGRADES ON MOLYCORP (MCP)

This morning, there are two upgrades on Molycorp (MCP) including one from JP Morgan (JPM). Morgan was the underwriter of the secondary and the upgrade was expected. Nonetheless, we will cover our short position right here around $46.20 and look for opportunities to short at higher prices starting around $47.50 in a manner described in the prior post.

As a caution, we wll not short this stock again until all six screens of the ZYX Change Method are satisfied.

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February 22, 2011

NEW TRIGGER FOR RARE EARTH METAL STOCKS SUCH AS MOLYCORP (MCP)

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Our long term readers know that each trade must pass all six screens of the ZYX Change Method. This post describes the four developments that fulfilled the requirements of the trigger screen to short sell the rare earth metal stock Molycorp (MCP) on Feb 18.

‘¢ Sumitomo Corp. and Mitsui & Co. are planning a major venture to mine rare-earth deposits in Russia to compete with China. Assumption made by the bulls that Moycorp will be the only source of rare earth metals for Sumitomo is wrong

‘¢ The World Trade Organization has ruled China has no legal right to impose export quotas on rare earths

‘¢ According to Xinhua , the Chinese news agency, the Chinese government plans a series of steps to upgrade the rare earth metal industry.

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February 22, 2011

PROFITING FROM CRISIS IN LIBYA WITH OCCIDENTAL PETROLEUM (OXY) AND MARATHON OIL (MRO)

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The crises in Libya appears to be accelerating. It appears that the central government has lost control of several regions of the country.

Marathon Oil (MRO) owns 16.33% of the Waha concessions in Libya. We continue to be positive on Marathon in anticipation of its up coming split into two companies. If the stock gets hit, we will use any big down spike to initiate a long position.

More than one-fourth of Occidental Petroleum’s (OXY) worldwide oil and gas production comes from the Middle East/North Africa region, where the company has been an active investor for more than four decades.Occidental… Please click here or the title below to read more.

February 22, 2011