Market Blog » The Arora Report Stock Market News

LIMITED (LTD) HOT STREAK COOLS

June 2, 2011

Limited (LTD) hot streak cools as it reports much lower than expected same store sales growth. Once again we were ahead of the curve. We saw this coming when Wall Street was pounding the table to buy this stock. We sold short at the recent top on May 18th at $42, $42.54, and $43.50. In the pre market this stock is down $2.21 at $36.50. We wrote: ï»¿ target zone is $35. to $37. The trade has worked out perfectly. We will look the gift horse in the mouth and take profits on most of our

ZAGG (ZAGG) SHORT SQUEEZE AN OPPORTUNITY

June 1, 2011

We have previously taken profits on ZAGG (ZAGG) but are still holding a small position. We are adding a 15% tranche right here at $11.33. ZAGG is experiencing a massive short squeeze today. The short squeeze is triggered by an excellent presentation ZAGG made at a conference yesterday. ZAGG has now become highly promotional to investors. Typically companies become highly promotional when the managements feel that fundamentals alone are insufficient to hold up the stock price. Caution: those who can not handle a short squeeze should not enter this position. There are no

NOKIA (NOK) LIFTING ON RUMORS OF BUY OUT BY MICROSOFT (MSFT)

June 1, 2011

Nokia (NOK) is lifting on buy out rumors by Microsoft (MSFT). A buy out of Nokia by Microsoft is an old rumor that is being regurgitated. Nokia received six downgrades this morning. Nokia’s debt rating is being placed on review for a downgrade by Moddy’s (MCO). It appears that those caught long in Nokia simply floated this rumor to run up Nokia. Short-term traders appear to be selling into strength. If there is an actionable signal on Nokia or Microsoft, we will update the Real Time Feed of ZYX Buy Change Alert.

NVIDIA (NVDA) WINS AWARD

May 24, 2011

Nvidia (NVDA) today won the Computex Best Choice award for smart hand held devices from the Taipei Computer Association. Nvidia won this award for its Tegra 2 chip. For actionable signals on Nvidia, please see ZYX Buy Change Alert and the ZYX Short Sell Change Alert.

EXITED OCCIDENTAL PETROLEUM (OXY)

May 24, 2011

Exited Occidental Petroleum (OXY) with profit at $98.95. This position is now closed.

TECH DATA (TECD) PLUNGES: WHAT TO DO NOW?

May 23, 2011

Tech Data (TECD) has plunged after reporting earnings. The earnings were not bad, however, the bullish gurus had pushed Tech Data much higher than it deserved to be. The same bullish gurus are now proclaiming that the fall is a buying opportunity around $48.00. Well, Tech Data has now broken down from the support at $48.00 and is now trading at $46.80. We disagree with the bulls. The Quantitative Screen of the ZYX Change Method shows the fair value of Tech Data to be $41.00. There is a strong probability of Tech

MORE ON ZAGG (ZAGG)

May 22, 2011

Subscribers to ZYX Short Sell Change Alert received the following entry in real time on May11,2011 on Zagg (ZAGG): As we expected, ZAGG reported great earnings last night. The effect of the smart cover from iPad 2 will be felt in the coming quarters and over a period of time this should be a great trade. Long term target zone is $2. to $3. Short term target zone is $5. to $6.20. This is a very long term position. Conservative investors may consider adding to the position between $10.90 and $12.00. Those not in the stock may

TAKING PROFITS ON XENOPORT (XNPT)

May 22, 2011

Subscribers to the ZYX Short Sell Change Alert took profits on Xenoport (XNPT) on May 5,2011 at $7.35. Following was the entry on the Real Time Feed: Most of our subscribers have already realized over 20% profit on XNPT over a very short time. After earnings report, the stock is now down to $7.35. Those still holding a partial position may consider taking profits right here and completely exiting the position. The risk of continuing to hold the position outweighs the potential reward. Those not in the position should not enter. Inadvertently, this signal on Xenoport