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CBS.MW) - Mortgage rates rose for a third straight week, with the benchmark 30-year, fixed-rate loan edging higher to 6.19 percent from 6.13 percent a week ago, an industry report said Thursday.
TYC-WSJ: Tyco/Taxes Back-2: Co Denies It Is In Talks With IRS
By Mark Maremont Of THE WALL STREET JOURNAL
BOSTON (Dow Jones)--Tyco International Ltd. (TYC) denied a published report that it is in talks with the Internal Revenue Service to pay as much as $1.7 billion in back taxes.
"It's not true we are in any such negotiations," Gary Holmes, a Tyco spokesman, told The Wall Street Journal on Thursday.
An article that appeared earlier Thursday on the Street.com Web site said Tyco may have to pay as much as $1.7 billion to the IRS to settle an investigation focusing on allegations the company failed to pay sufficient taxes, citing a person familiar with negotiations between the IRS and Tyco.
The article said IRS and Tyco have not yet agreed on an exact sum Tyco should pay, but said the IRS, while seeking more than $1.7 billion, is prepared to settle for close to that figure.
Tyco, a sprawling conglomerate that shifted his domicile to Bermuda from New Hampshire in 1997, has faced criticism for its aggressive efforts to reduce its corporate taxes. Early this year, it said it had reduced its overall tax rate to about 18.5%, but its tax rate has since climbed under new management.
(This article and related material is available on the Journal's Web site, WSJ.com.)
The Street.com article said Tyco would commit to moving its domicile back to the U.S. under any IRS settlement, citing the same person familiar with the talks.
Holmes said he couldn't immediately comment on whether the IRS had told Tyco that it owed large sums in back taxes, but said he was unaware of any major tax court case against Tyco.
WSJ: Tyco -3: Street.com Backs Report Despite Co. Denial
Walter Montgomery, another Tyco spokesman, issued an even stronger denial, saying "There's absolutely no foundation for this report, period."
David Morrow, editor-in-chief of the Street.com, said "we 100% stand behind" the story. Asked about Tyco's denials, Morrow added: "I expect them to deny it."
Chip maker Intel (Nasdaq: INTC) had a rough day yesterday after Morgan Stanley cut its views on the semiconductor sector, along with three other tech groups. However, options players remain optimistic, as open interest at its December 20 call jumped from 70,656 to 79,826 contracts. In addition, the January 2003 22.50 call added nearly 23,000 contracts in Wednesday's trading to bring its open interest up to 83,648 contracts. Both options saw several large blocks change hands throughout the day. The security's SOIR checks in at a low 0.34, as calls are roughly three times that of puts in the front three months of options. This reading is lower than 92 percent of those taken over the past 52 weeks. While the number of INTC shares did increase by 10 percent over the most recent reporting period, all short positions can be covered in less than a day of trading. Wall Street seems hesitant to back the shares, as 13 analysts rate it a "buy," 12 rate it a "hold," and two rate it a "strong sell." After climbing for more than a month on support from its 10- day and 20-day moving averages, the stock has pulled back to test support at its 20-day trendline. INTC has not closed a day below both trendlines since October 17. Potential options-related resistance resides at the 20 strike, as this is the site peak front-month call open interest. Furthermore, the equity's 20-month moving average is also fast approaching this level. This long-term trendline has capped the shares on a monthly basis since March.
Didn't INTC say at the last conference calls that they would announce their cap-ex for next year tonight? Anyone know? I'm heavy short AMAT on a position trade as that news could really move this one. I'm betting on cap-ex cuts.
Joe
>>>How low does intc go to if the news isbn't brilliant?<<<
I always get in trouble when I start thinking like that. I have no idea. I think INTC isn't worth much more than $12 but that doesn't mean that I will short it and wait. Sorry I can't be more help.
Joe
DJ Chip Analyst: Sees Intel Raising Margin, Rev Views >INTC
NEW YORK (Dow Jones)--Intel Corp. (INTC) will likely raise its fourth-quarter margin expectations, said Adam Parker, semiconductor analyst with Sanford C. Bernstein.
"I expect them to have margins of 50% on increased revenue," Parker said in a CNBC interview Thursday.
Investors already expect Intel to raise revenue guidance because of better personal computer sales and lower initial expectations, he added.
In November, Intel reiterated its fourth-quarter revenue view of $6.5 billion to $6.9 billion. The company expects margins of 49%, Parker said.
Last week, Parker downgraded his position on Intel to hold from buy because he doesn't see the company earning more than $1 a share in 2004.
Analysts currently expect the company to earn 87 cents, excluding goodwill, for the period.
When it comes to Advanced Micro Devices Inc. (AMD), a competitor of Intel, Parker is "still uncomfortable with their cash position."
Earlier Thursday, AMD raised its fourth-quarter outlook, because of stronger-than-expected personal-computer processor demand and continued strength in its high-density flash memory products.
INTC- Conference call at 5:30 est. I'm always leery of later conference calls. If they don't come out with a press release by 4:30 I would be carefull playing it long. High expectations here. Could sell off on the news. Just went long but will sell before close if not stopped out.
Joe
AMZN- Yep, I have a position trade with an average cost basis of about $22 so I'm underwater there. Did buy some Jan 22.50 puts when the stock was trading above 24 so I'm doing well there. First time I had seen premiums at a decent price.
Joe
>>"It's unfortunate that this is the first year of the new methodology, but in fairness, it's not easy to identify those claims that are due to Sept. 11 from those that were due to true cyclical weakness," said the Labor Department's Stengle.<<
Hell, that shouldn't make any difference. Bogus reporting. Thanks for posting the article.
Joe
AMEN! AMZN finally showing some weakness. Bout time! <VBG>
Joe
>>>I'm considering BRCD for a longer-term buy at some point myself, <<<
I have a hard time looking at any tech stock for a longer term buy. The essense of technology is change and the winners seem to reshuffle themselves as new technology becomes old. I think BRCD is a giant risk. Once the bigger fish (CSCO) jumps the market they usually have a huge competitive advantage. Maybe at 2X sales it looks interesting but it could be 4X sales next year without the stock pricing budging(if you know what I mean). I think BRCD is cheap for very good reasons.
JMO, Joe
>>>covered part of TYC @16.61 (+1.24) - getting tired of fooling with that one, though I still think it is a belly up candidate<<<
Starting to get interested in this one (short). Looks like it's getting a little tired as they have run out of folks to con on the upside of this pig. Negative tangible assets and a big goodwill adjustment out there some day. Figure it's about time for another bombshell from these folks. Look at the open interest on January puts. The 17.50's look good to me from a more conservative basis.
Joe
UAL] UAL SHARES HALTED ON NYSE FOR NEWS PENDING
>>SNPS says they will miss 1st Q but make full year! let me see, i had no idea what was going to happen in the next 90 days but i'm confident of the next 365!!(GGG)<<
I shorted some for an earnings play just before close. Only one of my two orders filled and I covered way too early in afterhours. Nice profit though and I can't complain. I agree, I think there is much more downside in this one in the year ahead.
Joe
EP- Indeed it may be early but selling the covered calls along with the position greatly reduces some of the risk. The $1.10 premiums out just 6 weeks looked attractive to me. Downgrades are now a regular occurance so i don't see much downside from that. I also read the CEO comments about the FERC charges and believe they may have a good case in court. Selling for less than half of book and being that it was ex-div today and down not much more than the dividend, it looked fairly good risk to me for a position play.
Joe
SNPS- down near a couple from the close. eom
SNPS- Earnings tonite. eom
EP- stock is at 7.10. Jan 7.50's are at 1.10. Worth a look. CEO said he is open to a settlement on the FERC charges.
Joe
What happened? GE go belly up? eom
*DJ Microsoft CFO: Still Sees Modest FY03 PC Shipment Growth
*DJ Microsoft CFO: Tech P/E Ratios Moving To 'Sane' Levels
>>> Call open interest surged at General Motors' (NYSE: GM) January 2003 40 call overnight from 7,939 to 15,442 contracts. The option's largest block trade was a transaction of 2,500 contracts that crossed the tape at an ask price of 2.90. Sentiment toward the equity is mixed at the moment. The stock's SOIR has declined from its November 12 peak of 1.34 to its current reading of 1.13. This reading is lower than 66.4 percent of those taken over the past 12 months. However, the number of GM shares sold short rose 11 percent over the most recent reporting period to 36.9 million shares. It would take nearly five days to cover all the short positions at the equity's average daily trading volume. Analysts are also skeptical of the shares, as three analysts rate it a "strong buy," 10 rate it a "hold," and one rates it a "strong sell." The stock is currently battling resistance at the 40 level. This is the site of a 50-percent retracement level from the equity's August 27 high of 50.05 and is October 9 low of 30.80.
<<
"Treasuries see higher price action, which has YIELDS lower, but
not decidedly so in the longer-dated maturities. The December
30-year Treasury futures (us02z) 112'250 +0.41% finds its YIELD
($TYX.X) falling to 5.012%, but the stronger buying comes in the
shorter-dated maturities hinting that money is looking for some
shorter-term "safety" and looking to sit things out."
From OI
Don't see how the rally can have much powder with bonds not participating and the Fed not adding with a net drain.
Joe
MTG- Looking very weak today. MBI and ABK look relatively good compared. MBI green and ABK barely red.
Joe
1420 was what I was implying. AMAT just bounced off that new low as did the nas. I'm very short and may lighten up here soon. My longs in the utilities are giving me fits today. That bounce off the lows smells like PPT.
Joe
AMAT- Just put in a new LOD. eom
>> ...don't get me started with con Bush and his admin...<<
We won't. Looking for a lower high on the nas. If we don't I may cover. Of course a lower low after the test would be nice.
Joe
>>"could get ugly"..depends on ones persective!<<<
LOL! In the eyes of the beholder. Yep, I say, bring on "ugly"! I'm ready. <VBG>
Joe
Mainehiker, I know, and I think we agree on most of these issues with the PPT. Let me tell how much of a relief it is to me to find a board where it is openly discussed with several believers. My comments today were mainly based around the Fed actions right after 9/11 that you brought up earlier. I not so sure that they weren't more involved and things may have been even worse than they were.
Joe
Who is the PPT? The Plunge Protection Team is the folks set up by a Presidential Exucutive order called "The Working Group". It consists of the Secretary of the Treasury and Chairmen of the Federal Reserve, the Securities and Exchange Commission, and the Commodity Futures Trading Commission,and they creatively examine system-wide issues across the legalistic and jurisdictional divides that normally separate one regulator's thinking from another's and control the markets to the best interest of the public. Some of us disagree about their tactics but most have little doubt that they are there. Like most government plans they'll screw things up or, in my opinion, they already have.
Joe
Not letting nature takes it's course? We saw what happened there when the nas went to 5000. Funny how the Fed thought that OK but interevenes strongly on the way down. As I said the other day, I think the PPT main goal is to try to avoid panic more than not letting the market fall. From the readings I have read my research shows that there was a real scare in 1987. Without the expanding economy at the time causing a swift recovery, things could have been much worse. We don't have that economic expansion going on now.
The writings I have read show the the PPT is in place mainly to protect the markets from the unthinkable. With as much involvment that we are seeing I am in the belief that there is much out there that we don't know about. Letting "nature take it's course" could have unthinkable consequences. The end result is bad but let's digest it slowly. Our demographics give us some real challenges ahead.
Joe
>>Where is the PPT?<<
Looking at the tick and current action I think they may be back.
Joe
Syl, Take a look at your family tree and make sure you don't have some salmon in your bloodline. gggg<VBG> Good luck on your Q's
Joe
>>WHY would have intervening MORE post 9/11 have been a waste?<<
Even the PPT recognizes a "freight train" when it sees it. Hope you don't mind me stepping in here but I have long been spouting off on the PPT. One of my screens that I always have in front of me for about the last five years is the Nas NMS tick. About 2 years ago I started noticing in increased amount of strange behavior on the intraday action. The only reason I could account for the action and "strength" at just the right times was the PPT intervention. I sated as such on the board I aws at and aws dismissed as being crazy..but that's another story..
Anyway, I think the Fed played the 9/11 tradegy as well as it could. I agree with Mlsoft that any more support early would have been a waste of powder. The PPT does have limitations and it needs these large money bankers to share their goals before they will "play" the game. Of course the game is to make a buck off the interevention at the same time proping the market up. IMO, there was just too much selling for the Fed and it's coherts to step up to the plate early in blood-letting. Remember the market was already falling when 9/11 hit. That type of momentum is not easily reversed.
JMO, Joe
MORTGAGE BANKERS WEEKLY REFINANCE INDEX DOWN 26.8%
MORTGAGE BANKERS WEEKLY PURCHASE INDEX UP 10.4%
Factory orders up 1.5% in Oct,; durables revised down By Rachel Koning
Orders placed with U.S. plants increased in October for the first time in three months led by demand for vehicles and electrical equipment. Factory orders were up 1.5 percent that month, the Commerce Department reported Wednesday. Economists polled by CBS.MarketWatch.com looked for a 1.7 percent increase. September factory orders were revised down slightly, to a smaller 2.4 percent drop. Bookings at manufacturers for durable goods rose 2.4 percent, a downward revision from the 2.8 percent gain reported by the government in a previous release.Year-to-date, new orders for 2002 are down 1.5 percent from the same period a year ago.
Mlsoft- If you like MBI (S) you may like MTG also. Also, ABK is bound to get hit one of these days IMO.
Joe
CELL- just keeps going up. eom
AEIS, BRKS, MKSI- Semi's worth a look for shorting candidates. JMO
Joe