Market Blog » The Arora Report Stock Market News

TAKE PROFITS ON MRO

February 3, 2012

MRO has been a long term position. Our reason for buying was that considerable value could be unlocked if MRO went to spin off its refining operations. Well, it worked out just the way we predicted. MRO spun off its refining operations. The new refiner has been trading under the symbol MPC. We received shares of MPC in the spin off. We have already taken profits on MPC. It is time to take profits and exit this position. This has turned out to be a very profitable long term position. Now there are better opportunities elsewhere. It is time to

GREAT NEWS A FEW MINUTES AGO AND GOLD SPIKES UP

February 3, 2012

The U.S. Department of Labor just reported employment numbers for January. This number is known as ‘Mother of all numbers’. January non-farm private payrolls increased by 257k vs 168k consensus. There are several components to this number, but our models focus on non-farm private payrolls. The number was a blow out on the positive side. This means U.S. economy is improving strongly. This number makes it highly unlikely for QE3 to occur in February. By any rational school of thought and analysis this is a negative development for gold and silver. What do gold and silver do? They jump up.

ADDING ANOTHER TRANCHE TO GOLD (GLD)

February 3, 2012

Adding a 5% tranche to GLD right here at $170.98.

NEW IDEA ON GAP STORES (GPS)

February 2, 2012

Gap Stores (GPS) has long been an under performing retail stock. Finally, there is hard data that GPS may be turning around. GPS has just announced that it sees Q4 EPS of $0.41 -$0.42 vs consensus of $0.25. In 2012, GPS faces easy revenue and margin comparisons. merchandise in the store is improving. Please do not chase the stock as it is likely to gap up. It is best to wait for a pull back into the buy zone. Buy zone is $18.26 to $19.83. Stop zone is $16.26 to $17.73. Target zone is $25 to $26.

ADDED TO GOLD (GLD)

January 31, 2012

Added a 5% tranche to GLD at $169.73.

Steve Jobs’ Ex-Lieutenant Adds $1.5 Billion To JCP In Two Days

January 30, 2012

J.C. Penney (JCP), the fourth largest US department store chain, is undergoing a transformation and brought in Ron Johnson, the ex-chief of stores at Apple (AAPL), to revive its business. J.C. Penney scheduled an analysts’ day on Jan. 26, 2012. The stock had been levitating for a couple of months in anticipation of Johnson making a great presentation. By almost any measure at $33, J.C. Penney was one of the most expensive major retail stocks. On Jan. 25, Johnson made the rounds and leaked his plan ahead of the big event on Jan. 26. J.C. Penney will in the future

Back Up The Truck And Buy Facebook

January 30, 2012

In response to my recent article, ‘œFacebook IPO Is Nigh, Should You Buy,’ I have received a large number of emails asking about supply and demand in. We will not know the numbers until the filing is made public, but here are my qualitative estimates. Facebook may sell 250 million shares at $35-40 apiece. It is too early to know the demand for the shares precisely, but it’s not too difficult to make a reasonable estimate. At The Arora Report, our estimate is that 3-6 million individuals will be clamoring to buy these shares. If 5 million individual

Facebook IPO Is Nigh, Should You Buy?

January 29, 2012

A number of media sources are reporting that Facebook will file for an initial public offering next week. Apparently,Morgan Stanley is to be the lead underwriter. Goldman Sachs is also expected to play a major role. Facebook, with its 800 million members, has become the new standard platform for communication between people. The IPO is expected to raise about $10 billion with a valuation of at least$75 billion. By comparison, Google (GOOG) raised $1.9 billion in an IPO with a valuation of $23 billion back in 2004. Previously the largest technology IPO was done by Infineon (IFX), a