Market Blog » The Arora Report Stock Market News

SIRI, IS THIS FRANK FAZIO APPLE LAWSUIT FOR REAL?

March 20, 2012

Frank M. Fazio thinks that Siri is so bad that he has not only sued Apple(AAPL), he wants the suit to be a class action. The complaint, filed in the U.S. District Court of Northern California, states that the iPhone 4 S Siri feature does not perform as advertised. The complaint states, “Notwithstanding Apple’s extensive multi-million dollar advertising campaign showcasing the Siri feature and the fact that the iPhone 4 S is more expensive than the iPhone 4, the iPhone 4 S’s Siri feature does not perform as advertised, rendering the iPhone 4 S merely a more expensive iPhone 4.” The

TAKING MORE PARTIAL PROFITS ON ADBE

March 18, 2012

ADBE reports earnings tomorrow after the close. ADBE has an inconsistent record of earnings. There is considerable risk of holding this stock through earnings. ZYX Change Method is focused on maximizing risk adjusted returns and not just absolute returns. It is time to take profit on another 10% tranche tomorrow before the close. On Friday the stock closed at $33.82. After this sale, only 10% of the full core position size will be held through the earnings. We will keep you advised after listening to the earnings conference call.

CANCELING GPS OPEN ORDER

March 18, 2012

Since GPS has not filled, the open order is now being cancelled.

BUFFETT WON’T DIG DEEPER INTO COAL, SHOULD BE LIKE BOONE AND GO FOR GAS

March 18, 2012

Thursday morning started with rampant rumors that Warren Buffett will invest in coal by orchestrating a Berkshire Hathaway buyout of an big coal miner. Friday the rumors picked up steam. It is no secret that coal is dirty and that generating electricity from coal causes pollution. It is also no secret that natural gas is a lot cleaner than coal. With such an abundance of natural gas in the United States, supply vastly exceeds demand and prices are cheap. In the United States power generation industry, the switching from coal to natural gas is in full swing and likely to accelerate over the coming years.

LET THE BATTLE BEGIN

March 17, 2012

The battle is about to begin between those who in one form or another end up following the leading indicators and those who in one fashion or another end up following the lagging indicators. Time has proven that the ZYX Global Multi Asset Allocation Model was spot on when it declared the end of the old cycle in August 2011 and identified characteristics of the new cycle in Oct, 2011. Now the new cycle has reached a stage where early adopters have exhausted their firepower and doubters are ready to take a stand. The battle is about to begin. The battles

SELL CHINA, BUY TAIWAN

March 17, 2012

While the S&P 500 is making highs, the Chinese market is beginning to dip. The big news is the firing of Bo Xilai, the populist leader. Bo was the head of Chongqing Municipality. Bo successfully led the city of about 30 million people to rapid development, narrowed the gap between rich and poor, and hit organized crime hard. The firing of Bo highlights challenges facing China’s political system and potential risks to investors in China. Astute investors may consider selling China and buying Taiwan. Sophisticated investors can consider short selling China and hedging it with Taiwan. To assist investors in

WEEKLY MARKET DIGEST: THE LOWEST INTEREST RATES IN A GENERATION MAY BE IN THE REAR VIEW MIRROR

March 16, 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.) INFLATION DROPS March 16, 2012 Core Consumer Price Index (CPI) drops to 0.1% from prior 0.2%. Consensus was 0.2%. Stocks and bonds are taking encouragement from lower inflation data. Obviously this is not good for gold and silver, but our algorithms show that even after release of lower inflation numbers, mom and pop momo crowd continues to aggressively buy gold and silver. As we have previously written, in our models core PPI gets a heavy weight,

NEW APPLE IPAD SEMICONDUCTOR INVESTMENT PLAYS

March 16, 2012

Apple (AAPL) has become one of the world’s largest buyers of semiconductors. Whenever a new Apple device is introduced, a race is on to tear down the device and find the origin of the components inside. This time the winner is iFixit. iFixit reports the following components inside the new iPad. –Texas Instruments (TXN) CD3240 driver device –Broadcom (BRCM) BCM4330 802.11a/b/g/n MAC/baseband/radio with integrated Bluetooth 4.0+HS and FM transceiver; 2 x 4Gb; BCM5974 microprocessor; BCM5973 I/O controller –Elpida LP DDR2 = 1 GB DRAM in separate packages in a 64-bit configuration –Fairchild Semiconductor International (FCS) FDMC 6683 –Apple 338S0987, Cirrus Logic (CRUS) Logic audio