Market Blog » The Arora Report Stock Market News

IGNORE ‘FISCAL CLIFF’ AT YOUR OWN PERIL

August 10, 2012

The markets are in a party mode and have forgotten the approaching dark cloud of the “fiscal cliff.” The fiscal cliff refers to the expiration of Bush tax cuts and simultaneous significant reduction in government spending in the United States at the end of the year. The Congressional Budget Office (CBO) has estimated budget reductions in 2013 as shown in the chart. Various estimates of the impact of the fiscal cliff on the GDP range from a reduction of 3% to 4.5% in 2013. The American economy is growing in the range of 1.5% to 2%. If the

SMART MONEY IN GOLD, SILVER, AND MINERS

August 9, 2012

This post was just published on ZYX Buy Change Alert SYMBOL SMART MONEY BUYING IN MILLIONS OF $ SMART MONEY SELLING IN MILLIONS OF $ GLD 5.78 SLV 1.23 ABX 4.82 NEM 7.86 GDX 3.34 GDXJ 1.63 GG 0.62 SLW 0.02 PAAS 0.07 CDE 1.56 Smart Money in our parlance is the ultra sophisticated money that knows more, that knows early, that has tremendous amount of analysis powers, and that has extensive resources. We monitor gold and silver trading data from a variety of instruments and sources from across the globe. The above table is only a small representation.

DUMPING YOUTUBE FROM IPHONE MAY HURT APPLE MORE THAN GOOGLE

August 7, 2012

Ever since the original iPhone introduction in 2007, YouTube has been one of the handful of apps that came preloaded on iPhones. But now Apple (AAPL) has just released a new beta update of its mobile operating system, iOS 6, and it does not include the YouTube app. In other words, Apple has dumped Google (GOOG)-owned YouTube just like it previously dumped GoogleMaps. iPhone users will still be able to access YouTube through the Safari browser, and the app did not include all of YouTube’s content and advertising so the financial impact on Google will be minimal, but the move raises a big

APPLE CAN HIT $1,000, BUT $1,650 IS A PIPE DREAM

August 7, 2012

If everything goes right and Apple AAPL has a few more hits, the tech giant has the potential to earn more than $70 per share. Without significant P/E expansion, the stock can hit $1,000. I have been a mega bull on Apple ever since recommending a buy in the stock when it was $131. I rely heavily on rigorously analytical probability based algorithms. I was writing about the high probability of Apple stock reaching $1,000 long before Apple was a popular investment. The highest target out there on Apple is $1,650. A simple analysis shows that $1,650 is a pipe dream.

WEEKLY MARKET DIGEST: LET THE BATTLE ROYAL BEGIN

August 4, 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.) LET THE BATTLE ROYAL BEGIN August 3, 2012 For the second time in a row, a major piece of U.S. economic data came better than expected. Last week it was GDP, today it is the employment data. Weekly non-farm payrolls came at 163k vs. 100k consensus; the whisper number was 86k. Let the battle royal begin between those who will buy stocks and sell bonds and gold because the economy is stronger than expected, and those who will

PLAN ON ZAGG

August 3, 2012

This post was just published on ZYX Short Sell Change Alert After profit taking this morning 80% of the full core position is being held. Average entry price is $13.85 and previously profits have been taken as low $7.62. This is a very long-term position. Our target remains $3 – $5. This stock is prone to short squeezes. The plan is the same as before, add on short squeezes and take partial profits on dips and leave sufficient quantity untouched until the target is reached.

TAKE PARTIAL PROFITS ON ZAGG

August 3, 2012

This post was just published on ZYX Short Sell Change Alert In keeping with our practice of always booking some profits, consider taking profits on a 20% tranche of ZAGG right here around $8.36. Aggressive investors, as an alternate may choose to set a stop at $8.76 on a 20% tranche and keep on lowering the stop if the stock keeps on going lower.

ZAGG EARNINGS

August 2, 2012

This post was just published on ZYX Short Sell Change Alert ZAGG reports $0.18 vs consensus of $0.19; revenues of $61.6 million vs consensus of $59.38 million. Sees FY12 revenues of $265 million vs $262 million consensus. Please note that revenue projection is below consensus. A particular item of interest is that today the U.S. Patent and Trademark Office published an application from AAPL for a new smart cover that can feature solar panels, a smart pen, a keyboard, and a multi-touch panel. The point is that ZAGG has a difficult road ahead. What To Do Now? Those in the position may continue