Market Blog » The Arora Report Stock Market News

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 .

HEDGING LONG POSITIONS

July 13, 2011

Our models are predicting a significant probability of a sharp stock market decline. We are hedging 90% of all long positions. We have also developed a BE NIMBLE plan for subscribers of the ZYX Buy Change Alert. If the market goes up from here , it will be an opportunity to short sell. We will provide an actionable signal in real time, if appropriate, Real Time Feed of the ZYX Short Sell Change Alert.

INFOSYS TECHNOLOGIES LIMITED (INFY) SYMPATHY PLAYS

July 12, 2011

Infosys Technologies Limited (INFY) is trading down about 6% on earnings. Earnings for the last quarter were good for Infosys. Projections for the September quarter for Infosys are for earnings of $0.67 to $0.68 compared to consensus of $0.71. Infosys has 133,000 employees. Given the size of Infosys, its competitors are not likely to escape the coming slow down. Two prime candidates to take advantage of the knowledge gained from Infosys’s earnings are Cognizant Technology Solutions (CTSH) and Wipro (WIT). We will provide actionable signals in the Real Time Feed of

MICROCHIP (MCHP) TERRIBLE EARNINGS

July 12, 2011

Microchip (MCHP) reported earnings after the close yesterday. Earnings for Microchip were truly terrible. This morning the Wall Street brokers are downgrading Microchip en masse. Microchip notes that consumer business was soft. Our research shows that Microchip derives about one-third of its business from consumer oriented products. As of this writing, Microchip is down 14%. If Microchip dips further and our leading economic indicators start turning, we will provide an actionable signal in the Real Time Feed of the ZYX Buy Change Alert.

VERY SHORT TERM IDEA: INTERNATIONAL GAME TECHNOLOGY (IGT)

July 11, 2011

International Game Technology (IGT) makes gaming video terminals. State of Illinois just approved putting video gaming devices at licensed liquor establishments. We estimate that this will create demand for about 35000 new devices and International Game Technology will probably sell about 10,000 new devices. Other competitors are WMS Industries, Inc. (WMS), and Bally Technologies, Inc. (BYI). Our entry zone for International Game Technology is $17. to $18.25. Our stop zone is $15.11 to $15.73 and target zone is $20 to $22. Caution: as of this writing DJIA is down 146 points.

LUMBER LIQUIDATORS (LL) BLOODBATH

July 7, 2011

Lumber Liquidators (LL) is a specialty retailer of hardwood flooring. Lumber Liquidator reported terrible earnings. Lumber Liquidators is down $7.28. The down move is justified. However, we do not invest looking in the rear view mirror, we invest looking forward. The overall stock market has been extremely strong for the last eight days. Gurus are out in force claiming that the soft patch is over. Well, if the soft patch is over, Lumber Liquidators should do well going forward. Lumber Liquidators is now On Our Radar Alert. This means

NVIDIA (NVDA) AND ATMEL (ATML) IN AMAZON (AMZN) TABLET

July 6, 2011

There are reports today that Nvidia (NVDA) and Atmel (ATML) components are in the upcoming tablet from Amazon (AMZN). If there is any actionable signal it will be provided in the Real Time Feed of the ZYX Buy Change Alert.