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FIVE REASONS EBAY IS UNLIKELY TO SPIN OFF PAYPAL $EBAY $AMZN $AAPL $CHK $GOOG $V $MA

January 23, 2014

On Wednesday after the close, eBay disclosed that Carl Icahn has proposed a spin-off of PayPal from eBay. The initial reaction of the stock market was euphoric, with eBay stock jumping to $61.30 in after-hours trading from its closing price of $54.41. Not so fast, even though in my view Icahn is the most successful investor of recent years. The concept behind Icahn’s proposal is nothing new. On the surface it makes sense to spin-off fast growing PayPal from slower growing eBay, but consider these five points. Synergies There are considerable synergies between PayPal and eBay. About one-third of PayPal’s new accounts

IBM SHARES TEMPT WITH VALUE BUT STILL TOO PRICEY $IBM $GOOG $MSFT $AMZN

January 23, 2014

Earnings season is in full swing, providing new data points for investors to reassess positions. After a careful review of IBM‘s latest report Tuesday afternoon, I see no reason to buy the stock at current prices. The risk-reward trade off is simply not favorable. IBM reported Q4 earnings per share of $6.13 per share compared to a consensus forecast of $5.99. IBM’s beat was of low quality, primarily due to items such as share repurchases, foreign exchange and tax rates. Of special note is that revenue fell 5%, year over year to $27.7 billion. Analysts were looking on average for $28.25

TAKE PARTIAL PROFITS ON iSHARES UNITED KINGDOM $EWU

January 21, 2014

This post was just published on ZYX Buy Change Alert. The position is long with an average price of $14.62. Currently, 55% of the full core position size is being held. Profits have been taken as high as $18.11. Consider taking profits on another 10% tranche right here around $21.

INITIATE OR ADD TO GENERAC HOLDINGS $GNRC

January 21, 2014

This post was just published on ZYX Short Change Alert. GNRC is a manufacturer of generators. It is way overvalued. If there are no major storms on the East Coast, especially the New York area for a couple of quarters, this stock is likely to dip into the $30’s. Over the last few days the stock has pulled back, but any move up in the zone of $52.90 to $56.90 may be used to add to the position or consider initiating a position. At this time 30% of the full core position size is being held. Consider limiting the position size

WEEKLY MARKET DIGEST: NEW OPPORTUNITIES FROM EARNINGS SEASON AHEAD, INTEREST RATES ARE FALLING $GLD $SLV $USO $DIA $SPY $QQQ $TBF $TBT

January 17, 2014

(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. ) SHORT COVERING BEFORE THE LONG WEEKEND, GOLD MOVES HIGHER January 17, 2014 Expect a fair amount of short covering before the long weekend. Short covering is helping prop up the stock market. December Housing Starts came at 999K vs. 986K consensus. December Building Permits came at 986K vs. 1000K consensus. Gold is attempting a strong rally this morning in response to housing starts and build permit numbers. Oil is going higher and will meet stiff

INITIATE OR ADD TO SPDR S&P 500 $SPY

January 16, 2014

This post was just published on ZYX Short Change Alert. Consider adding a 5% tranche to SPY in the zone of $184.20 to $185.20. SPY is trading at $184.24 as of this writing. Please consider keeping the quantity small as the plan is to build the position slowly.

J.P. MORGAN EARNINGS IN LINE WITH EXPECTATIONS, CONTINUE TO HOLD THE STOCK $JPM

January 14, 2014

This post was just published on ZYX Buy Change Alert. The position is long with an average price of $34.14. The stock is trading at $58.15 as of this writing. The earnings are in line with our expectations. What To Do Now? Those in the stock may continue to hold. Those not in the stock may wait for a signal in the Real Time Feed.

WEEKLY MARKET DIGEST: WHY IGNORE THE SHOCKING EMPLOYMENT DATA $GLD $SLV $USO $DIA $SPY $QQQ $TBF $TBT

January 10, 2014

(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. ) WHY IGNORE THE SHOCKING EMPLOYMENT DATA January 10, 2014 This morning the Department of Labor released shocking employment data. December unemployment rate fell to 6.7% vs. consensus of 7%. The unemployment rate was 7% in November. In our analysis, we give very heavy weight to Nonfarm Private Payrolls, they came at 87K vs. 198K consensus; some whisper numbers were over 220K. December Nonfarm Payrolls came at 74K vs. 197K. The plan is to ignore this