Market Blog » The Arora Report Stock Market News

LOSS AT APPLE (AAPL) IS GAIN AT J.C. PENNY (JCP)

June 14, 2011

The up move in Penney (JCP) stock may be driven by wishful thinking. Johnson was successful, but he was not selling white blouses inside those beautiful Apple (AAPL) stores. Penney does not have differentiated products like Apple. The success of Apple stores is, in part, due to the experience they provide. Providing this experience costs money. Penney does not have the money to generate this kind of experience. Let’s compare the margins. Apple has operating margin of 29.02% and profit margin of 22.36%. In comparison, Penney has operating margin of 4.92% and profit margin of 2.21%. To read the

BUYING TO COVER: IROBOT (IRBT), LIMITED BRANDS (LTD), ULTA SALON (ULTA), TYCO (TYC), AND SILGAN (SLGN)

June 14, 2011

We are buying to cover aggressively in the premarket: iRobot (IRBT) at $30.75, Limited Brands (LTD) at $36.25, ULTA Salon (ULTA) at $57.65, Tyco (TYC) at $46.76, and Silgan (SLGN) at $40.62. Subscribers to ZYX Short Sell Change Alert were forwarded yesterday of the upcoming data from China that may lead to a major change. Please see ZYX Change Method for more details.

V.F. CORPORATION (VFC) AND THE TIMBERLAND COMPANY (TBL): WHAT TO DO NOW

June 13, 2011

V.F. Corporation (VFC) has made a very strong buy out offer for The Timberland Company (TBL). Timberland is not likely to receive a better offer. Therefore, it is prudent for most investors to sell Timberland right here. V.F. Corporation is now up $10.00. The acquisition of Timberland will be accretive for V.F. Corporation. Further, V.F. Corporation has a strong track record of improving the performance of the companies it acquires. Therefore, an up move in V.F. Corporation stock is justified. We may consider buying V.F. Corporation on a pull back. If a buy signal

TAKING PROFITS ON IROBOT CORPORATION (IRBT)

June 13, 2011

We are sitting on large gains on iRobot Corporation (IRBT). We are taking partial profits on iRobot right here at $30.80. For the time being, we will maintain the rest of our short position on iRobot.

MORE ON ZAGG (ZAGG)

June 13, 2011

Zagg, Inc. (ZAGG) has moved up over the last couple of days after the news that Zagg was granted a patent on its invisible shield. We have looked at the patent and for the most part it does not justify an upmove in the Zagg shares. For our plan on Zagg, please see the Real Time Feed of ZYX Short Sell Change Alert.

ADDING TO ZAGG (ZAGG)

June 13, 2011

We are adding a 10% tranche to Zagg, Inc. (ZAGG) right here at $12.40. Updates are available on this position in real-time on the Real Time Feed of the ZYX Short Sell Change Alert.

TAKING PARTIAL PROFITS ON SILGAN HOLDINGS (SLGN)

June 13, 2011

We are taking partial profits on Silgan Holdings (SLGN) right here at $41.38 in the pre market. Silgan Holdings had run up on proposed acquisition of Graham Packaging Company (GRM). Our average short price on Silgan Holdings is near the top of the swing. A few minutes ago Graham Packaging Company received a competing buyout offer. Theoretically, it should be a win, win situation for us if Silgan Holdings raises its bid, the stock should go down. If Silgan Holdings fails in the acquisition because it does not raise its bid the

TEXAS INSTRUMENTS (TXN) SWOON DUE TO NOKIA (NOK)

June 9, 2011

Texas Instruments (TXN) provided mid-quarter update after the close yesterday. First the stock swooned on lower projections but then bounced right back when Texas Instruments on the conference call stated that the short fall was due to Nokia (NOK). The analysis of the conference call shows that the business of Texas Instruments is stable. Texas Instruments can still beat estimates for the second half. We will provide an actionable signal on Texas Instruments in real-time on the ZYX Buy Change Alert when all six screens of the ZYX Change Method are met.