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Looks good, but not setting up for a pincher
Morning all!
Hey Hammer!
DEAR isn't pinching at all actually. The PPO and ADX are well outside pinch zones.Though it does look like it may bounce off the MA20
No. I think it has more to do with what is a beaten down stock by definition rebounding and hitting a natural resistance point. If it does not power through that MA20 then it will likely peter out. The key thing to remember is that these stocks are beaten down for a reason. They may be oversold, but soemthing fundamentally changed in the valuation of the firm most likely.
Was erased. What did it say?
I grabbed a few shares down here as the 10min starts to turn back up
I am now bitter about that one
NPD looking like bottom is in and run up should start soon.
I like this play as well. Great pincher setup
As far as I can tell they just had a bad quarter (though still profitable)
I know. I thought V would have recovered strongly by now
The 20D is a common point of exhaustion on pinchers and always my first planned sell point
Oh I had a huge day today. Sold NIV yesterday though.
Figures. I sold at 2.32 with a loss
1.71 broke! 1.91 next
APP testing HOD and key resistance point. Break it next stop 1.91 then over $2!
GDP figures looked decent today and BP efforts may be paying off. Reason for optimism in US markets. As long as Europe stays sane through their close we should be OK. You just never know what Europe is going to do day to day.
Wow that one sure tanked!
True, but you never know if the Greeks are up to rioting by 9AM or Germany decides to bail out Cypress. I am surprised to see it up +35 given the weak close
Glad I sold my SPY Puts at the close!
APP closed 1.69 in AH!!!
Weeeeeeee!!!!!!
YRCW and APP gap up in AM I am guessing.
SPY tanking. probably should have held my puts through the night, but too chicken
YRCW and APP weeee!
Bought 3.18 sold 3.87
Weeee!
There she goes
10,000 breached again, could be an ugly final 10 minutes
Hovering right there now. Question is where will it break?!
Up 30% on my SPY 109 Puts I bought an hour ago!!!!
The buys and sells are small. Just 100-200 share lots. When volume rolls in it will go. Buyers are hesitant to be the first to test the resistance and sellers trying to offload at the highest spot below resistance.
1.54 on the ask for APP. Let's get through it!!!
• MAY 24, 2010, 6:04 P.M. ET
Aerospace-Defense Merger Deals Gather Strength
•
By Christopher Hinton
Mergers in the aerospace and military-contracting industries are gaining traction after a steep slump last year, with private equity stepping in to finance deals where post-recession credit markets fear to tread.
So far this year, the sectors have seen 35 mergers totaling $2.33 billion, according to FactSet Research, a provider of financial and economic data. That compares with 25 deals worth $96.2 million over the same period in 2009--the lowest level in a decade.
The value of the most recent transactions also surpassed the 2008 period, but was far below a 2007 peak of $11.76 billion.
"Market confidence has picked up, and though there will be substantial pressure on defense spending going forward, there's still a lot of faith in the overall global market," said Jon Kutler of the investment firm Admiralty Partners, in an interview.
Acquisition data for the latest quarter comes in at the high end of historical activity, according to a recent report from PricewaterhouseCoopers. But even though credit markets have thawed from the freeze last year brought on by the financial markets crisis, brokers are still scrambling for ways to finance mergers and acquisitions, leaving a gap increasingly closed by private equity.
During the first quarter, private equity raised 37.5% of the value for deals worth over $50 million, versus 11.5% in 2009 and 12.8% in 2008, the research firm said.
"With the capital markets still in repair-and-heal mode, buyers and sellers are likely seeking creative structures, including minority stake purchases and joint ventures, to complete deals," PricewaterhouseCoopers said. "We believe that participation in the [aerospace and defense] mergers and acquisitions market by financial investors will continue to increase."
Private equity has definitely stepped in, said Admiralty Partners' Kutler, and they are taking advantage of some real bargains.
"The high-priced larger deals are what's grabbing the deadlines, but below that is softer pricing," he said. "Aside from highly differentiated companies, middle-market companies that wanted to sell did not, and that got them worried and their pricing has come down."
Buyers have been focusing on companies that offer niche products, especially in the fields of intelligence, surveillance and reconnaissance, and cyber security, according to Kutler. They have all remained strong areas of growth despite a general decline in military spending.
Acquisitions are also being used to expand market access in foreign countries, particularly the U.S., which is by far the world's largest buyer of weapons and technology.
CGI Group Inc. (GIB) announced the sectors' largest deal this year, agreeing to buy Stanley Inc. (SXE) for $1.1 billion. The target company made a name for itself developing technology and software for the U.S. military that provide soldiers on the battlefield with intelligence and communications support.
That was followed by a $984 million deal for Vought Aircraft Industries Inc. The acquirer, aircraft parts and services provider Triumph Group Inc. (TGI), said the purchase would increase its business exposure to Boeing Co. (BA), which has said it's at the beginning of a strong aerospace cycle.
There have been four mid-range merger announcements this year worth between $35 million and $98 million, according to FactSet, including the U.K.-based Charming Group Plc agreement to buy Allied Defense Group Inc. (ADG) in Vienna, Va.
-Christopher Hinton; 415-439-6400; AskNewswires@dowjones.com
I think it will run pretty quick. If it can get close over 1.54 it should go hard tomorrow
Yes, but I think we can see 2.00-2.40 no problem on this one.
I love pinchers with big drops that did not gap down. They tend to run a lot better than gappers.
Me too!
I still am holding NIV, but I hope we bank some green on APP
Seems like nothing has moved in the last hour
I have been pondering the same
Needs volume. The chart is still set up OK IMO, but if the buying pressure does not keep up after today's gap up it may just channel for a while. I own it and am down some on it at the moment. Hoping to see some green volume start to come in.
APP
Look at the float and the amount held byy institution and insiders. Should go hard on buying pressure off the pinch
American Apparel Incorporated $ 1.31
APP -0.08
Short Interest (Shares Short) 1,931,500
Days To Cover (Short Interest Ratio) 6.6
Short Percent of Float 5.13 %
Short Interest - Prior 1,687,500
Short % Increase / Decrease 8.40 %
Short Squeeze Ranking™ -22
% From 52-Wk High ($ 4.20 ) -68.81 %
% From 52-Wk Low ($ 1.29 ) 1.55 %
% From 200-Day MA ($ 3.12 ) -58.01 %
% From 50-Day MA ($ 3.03 ) -56.77 %
Price % Change (52-Week) -64.97 %
Shares Float 32,900,000
Total Shares Outstanding 71,338,750
% Owned by Insiders 53.86 %
% Owned by Institutions 35.80 %
Market Cap. $ 106,294,738
Trading Volume - Today 258,764
Trading Volume - Average 291,800
Trading Volume - Today vs. Average 111.15 %
Earnings Per Share 0.01
PE Ratio 279.00
Record Date 2010-MayB