Market Blog » The Arora Report Stock Market News

DEBT CEILING: WHAT TO DO NOW

August 1, 2011

After studying the details of the debt ceiling deal, here is a list of action items that all investors should consider: Short sell nursing home stocks. On our radar screen are Skilled Healthcare Group (SKH), Sun Healthcare Group (SUNH), and Kindred Healthcare (KND). Buy banks with strong treasury exposure. On our radar screen are Citi (C) and JP Morgan (JPM). Short sell banks with high mortgage exposure. On our radar screen are Wells Fargo (WFC) and Bank of America (BAC). Short sell H&R Block (HRB) as there is likely to be some tax implications. Short sell defense stocks. The best

STOP HIT ON IGT

August 1, 2011

Stop hit on IGT at the 50% gain point of $18.44.

SHORT SELLING SILVER (SLV) AGAIN: DEBT CEILING AGREEMENT

July 31, 2011

We are short selling silver (SLV) again. The trigger is the agreement on debt ceiling. Since the only convenient market open is the futures market, we short sold near term silver futures contract at $39.82. The debt ceiling uncertainty has added about $2.50 to the price of silver. The world economy is slowing. At The Arora Report, we monitor leading economic indicators from 23 countries. Our forecast is that the world GDP will grow by 0.5% over the next two quarters less than the consensus. Silver is also an industrial metal. Slower economic growth reduces industrial consumption of silver. Estimates

AKAMAI (AKAM) SLUMPS POST EARNINGS

July 27, 2011

Akamai (AKAM) reported Q2 EPS 35c vs. consensus 36c. Q2 revenue for Akamai were $277M vs. consensus $277.98M. : CEO of Akamai said, ‘œWe’ve seen our topline growth slow down, driven primarily by the pricing and traffic dynamics in our media and software delivery businesses. And we’ve encountered a general slowdown in a few of the more mature markets outside of the US where we operate, due primarily to the tougher macroeconomic headwinds in those markets” We have long held a negative view of Akamai. Our predictions are coming true. For our reader’s convenience, a post from 2008

BAD QUARTER FROM JUNIPER (JNPR) SIMILAR TO CISCO (CSCO)

July 26, 2011

Juniper (JNPR) reports a bad quarter. Juniper reports Q2 EPS 31c vs. consensus 34c. Juniper reports Q2 revenue $1.12B vs. consensus $1.15B . Juniper sees Q3 EPS 26c-30c vs. consensus 38c and Q3 revenue $1.07B-$1.12B vs. consensus $1.22B The CEO of Juniper said, ‘œJuniper’s results reflect momentum in our routing business and a return to solid performance in switching. A number of factors, however, including mixed signals in the macro economy, impacted our performance this quarter.’ Juniper is now beginning to see same macro problems that Cisco (CSCO). Cisco is much bigger and its size explains

NVDA BOUNCES

July 21, 2011

Earlier in the day, NVDA broke below $14.00. The break was not sustained and NVDA bounced sharply taking out the stops of short sellers. NVDA plateaued around $14.70. Going into the close money flow has been negative in NVDA. Fundamentally NVDA is a weak stock bouncing from an oversold condition. If there is an actionable signal it will be provided on the Real Time Feed of the ZYX Buy Change Alert or the Real Time Feed of the ZYX Short Sell Change Alert.

EXPRESS SCRIPTS (ESRX) BUYS MEDCO HEALTH SOLUTIONS (MHS)

July 21, 2011

Express Scripts (ESRX) is buying its larger competitor Medco Health Solutions (MHS). Express Scripts is a pharmacy benefit manager. The Wall Street likes the deal and currently Express Scripts is up over $3.00. Our analysis shows that there may be serious anti trust issues here that the Wall Street has not thought about. Normally we would have given a signal right here, but our long experience with trading Express Scripts stock shows that there is a propensity for a short squeeze. We will not short here, but will watch Express Scripts for a short squeeze.

INTEL CORPORATION (INTC) EARNINGS

July 21, 2011

Intel Corporation (INTC) reported upside financial results and guidance in spite of weak consumer PC trends and ‘œiPad effect.’ People buying tablets instead of laptops is called ‘œiPad effect.’ The excellent financial performance is attributable to Intel Corporation firing on all cylinders, success of Sandy Bridge and heavy demand for servers. Sandy Bridge is the code name of a new family of CPU chips that integrate high quality graphics. We will provide actionable signals on Intel Corporation in the Real Time Feed of the ZYX Buy Change Alert .