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CENTRAL BANKS ARE LOSING THE BATTLE

July 11, 2012

Central banks across the globe have been waging a war against the natural economic ebb and flow. Like any war, it has had many battles. Since 2008, central banks have won every battle. Now their luck is running out. I do not know how the war will turn out, but last week my model gave a definitive call that central banks are likely to lose this battle. Economic indicators can be broadly divided into three categories: the lagging indicators, the coincident indicators, and the leading indicators. The focus of our research at The Arora Report is leading indicators from 23

CHINA SLOWDOWN TO PUT SQUEEZE ON APPLE

July 11, 2012

China, which was an afterthought for Apple once-upon-a-time, has become the company’s second biggest market. In the second fiscal quarter, Apple generated $7.9 billion of revenues from China. This amount was more than three times the revenues a year earlier. As a reference, Apple’s total revenues were $39.2 billion. A large number of Apple bulls expect Apple sales in China to accelerate, but the data do not support such expectations. Applied Materials (AMAT), the big semiconductor equipment company, lowered its earnings estimates on Tuesday, citing a slowdown in China. Yesterday afternoon the whole stock market fell out of bed when Cummins (CMI), a truck engine

TAKE PROFITS ON CIEN

July 11, 2012

This post was just published on ZYX BuyChange Alert The position is long with an average price of $12.28. Currently, 20% of the full core position size is being held. Consider taking profits on CIEN in the zone of $14.80 to $15.80. Aggressive investors may simply put a stop in the zone of $14.68 to $14.73 to protect profits. Our fundamental thesis on CIEN remains positive. This call is a result of general market conditions and not because of any new development in CIEN. The plan is to buy CIEN again at a lower price.

TAKE PROFITS ON OREX

July 11, 2012

This post was just published on ZYX Buy Change Alert OREX is long for most subscribers from $4.50. OREX is moving up in the pre-market on the news of good enrollment numbers. This news was expected. We recommend taking advantage of this news. What To Do Now? Those who are still in the stock may consider either taking profits around $6.45 or putting a stop at $6.18 to protect profits. Most investors may consider taking profits.

EXIT TLB

July 11, 2012

This post was just published on ZYX Buy Change Alert Previously we had recommended that subscribers tender their shares to receive $2.75 in cash in the buyout. However, now the risk has increased. To close the deal TLB needs the approval of Pension Benefit Guarantee Corp. So far such approval has not been received. In view of the increase risk, we recommend that investors sell their shares in the open market around $2.57 which is the closing price from yesterday. Subscribers may want to adjust the price by a few cents as needed.

ADD OR INITIATE MAKO

July 9, 2012

This post was recently published on ZYX BuyChange Alert Consider adding or initiating a 10% tranche on MAKO preferably around $15.80. The stock is very volatile and the price may be very different by the time you receive this signal. We do not recommend adding or buying higher than $16.50. The stock is being hit hard. MAKO Surgical said that based on the slower than expected start during the first six months of the year, it now anticipates selling 42 to 48 RIO systems in 2012, which compares to prior guidance of 52 to 58 RIO system sales. Additionally, as a result of adjusted

CONGRATULATIONS ON 311% GAIN TO SUBSCRIBERS HOLDING AGP

July 9, 2012

This post was just published on ZYX BuyChange Alert AGP is long from $22.05. currently 55% of the full core position size is being held. Partial profits have been taken as high as $74.60. The company has announced that it will be taken over by WLP for $92 in cash. Congratulations to subscribers holding AGP for 311% gain. What To Do Now? The transaction is projected to close in the first quarter of 2013. As of this writing in the pre-market the stock is trading around $89 but has traded as high as $90.22. Most subscribers may continue to hold and tender the shares

WEEKLY MARKET DIGEST: WEAK DATA FROM CHINA TAKES STEAM OUT OF STOCK MARKET RALLY

July 7, 2012

(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.) WEAKER THAN EXPECTED EMPLOYMENT DATA July 6, 2012 June non-farm private payrolls came at 80K vs 105K consensus. Whisper number was around 120K – 136K. Employment picture in the U.S. is weaker than expected. The stock market should go down on this number however bulls will argue that this weak number increases the chances of QE3 and attempt to run up the market. In our analysis, the number is not weak enough to warrant a QE. Gold futures are at $1601, silver