Tag Archives: Active Trader

Business, Finance, Occupation & Industry

Charles Schwab to Host Live Online Educational Event for Active Traders

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By Business Wirevia The Motley Fool

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Charles Schwab to Host Live Online Educational Event for Active Traders

Workshops on key trading topics to be streamed live on March 28th

SAN FRANCISCO–(BUSINESS WIRE)– Charles Schwab is making it even easier for investors to sharpen their trading skills. As part of its continuing commitment to investor education, Schwab will host a virtual education event for active traders on Thursday, March 28, 2013. Workshops on essential trading topics such as navigating today’s markets, stock selection and chart pattern recognition will be streamed live and free of charge, over the internet.

“With the stock market hovering around all-time highs, our active trader clients tell us they want a better understanding of the current trading landscape and are seeking new strategies for success,” said Kelli Keough, Senior Vice President for Client Experience at Charles Schwab. “By offering this type of guidance in a virtual online environment, we are giving traders a chance to gain valuable market insight without having to leave the comfort of their home or office.”

Schwab’s latest virtual trader event will stream live from Denver, Colorado, on Thursday, March 28, 2013. Anyone interested in joining this free virtual event can visit www.schwab.com/traderevent to register. The educational workshops include:

  • 5:00 – 6:00 PM MDT: “Trading in Today’s Markets with a Focus on Q1 2013,” with Randy Frederick, Managing Director of Active Trading and Derivatives at the Schwab Center for Financial Research.
  • 6:15 – 7:15 PM MDT: “Stock Selection for Traders.”
  • 7:30 – 8:30 PM MDT: “Chart Pattern Recognition in StreetSmart Edge®.”

Between workshops, online participants can download event materials from the Resource Library and visit the virtual Exhibit Hall to chat with Schwab representatives.

Schwab’s virtual trader events are the latest enhancement to the robust educational resources available to Schwab clients. Schwab also offers live in-branch educational workshops, live online workshops and on-demand online webinars. The Schwab Learning Center provides clients with access to a broad range of educational content for various skill levels—including articles and pre-recorded seminars, as well as live events and webcasts—all in a central location. The Learning Center also offers clients an Active Trader catalog, which provides educational resources on a …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Saving Fannie Mae and Freddie Mac, The Pen Mightier Than The Sword

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By 24/7 Wall St.

House for Sale

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Are Fannie Mae and Freddie Mac really still safe from the bankruptcy chamber? 24/7 Wall St. is looking for a reality check here and we find it surprising that the giant moves here have hardly taken on the attention deserved for such a dire situation. Fannie Mae (FNM) and Federal Home Loan Mortgage Corporation (FMCC) are both surging to new 52-week highs and it may be an instance where this is simply the pen being mightier than the sword.

The Wall Street Journal previously brought attention to an SEC filing from last Thursday showing that Fannie Mae would delay its annual report because it needed more time to evaluate whether or not it could recapture some of its valuation allowance for deferred tax assets as of the end of 2012. It is no small sum either: $64.1 billion. That being said, traders, investors and speculators are all going to be paying close attention here.

As a reminder, both Fannie Mae and Freddie Mac remain under government conservatorship. They are mathematically bankrupt, but that is a different story. It is also hard to call companies bankrupt when their shares are up so much.

Fannie Mae shares are up a whopping 43% at $0.7468 on more than 66 million shares. Federal Home Loan Mortgage Corporation (FMCC) shares are up 38% at $0.715 on about 30 million shares.

It is hard to imagine this being possible, but technically these companies might be eligible to get listed on proper non-OTC exchanges if there is another day of gains like this. Of course those share prices would have to remain above the $1.00 for 30 to 45 days, but that is another matter.

It seems odd to see that MBIA Inc. (NYSE: MBI) is down almost 4% at $11.35 after runs like this.

Filed under: 24/7 Wall St. Wire, Accounting, Active Trader, Annual Report, Banking & Finance, Cult Stock, Earnings, Economy, Housing Tagged: FMCC, FNMA, MBI

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Morgan Stanley Raises S&P and Dollar Targets

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By 24/7 Wall St.

Wall St Bull statue

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Morgan Stanley (NYSE: MS) has made several changes on its strategy team, with new outlooks in currency and index levels. The big change is in the S&P 500, although it was behind the curve there. Other changes seen were in the U.K. pound and the Japanese yen.

The big change is in the outlook for the S&P 500, which Morgan Stanley lifted to 1,600 over the next year from 1,434 previously offered. That being said, that is with the S&P down by 7.50 to 1,553.25. In short, this was a catch-up strategy call. The firm also raised its S&P earnings per share forecast to $103 from $99 and said that equities have a better risk-reward than credit at the current levels.

The bank expects big changes in the U.K. pound and the yen, which are currently at $1.5117 and 95.025, respectively. The pound sterling, or British pound, could fall to $1.48 from a prior target of $1.62 by the middle of 2013, and it lowered its target to $1.43 from $1.57 by year-end. The bank also raised its dollar target to 105 Japanese yen from 100 yen by year-end, and that is said to be the most aggressive of the money-center projections.

Another call was seen in the U.K. and Japanese stock markets, with Morgan Stanley lifting the FTSE 100 target to 7,000 from 6,500. Note that the index was roughly 6,490 going into that call. The Japan Topix target was raised to 1,270 from 1,200, versus close to 1,100 before today’s drop.

Filed under: 24/7 Wall St. Wire, Active Trader, Analyst Calls, Index, International Markets Tagged: MS

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Cyprus Deposit Seizure Hitting Euro and PIIGS Banks

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By 24/7 Wall St.

bank vault

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I already have gone on the record that the taxation of deposits in Cyprus is nothing short of theft. Regardless of a bloated banking system that was in shambles, taking depositors’ assets under this method is wrong and it does not just target Russians and offshore depositors evading taxes. It does not even just target the wealthy. This also targets the average person on the ground. The ripples are being felt elsewhere throughout Europe (and here in America) as it poses secondary and tertiary bank and regulatory risks.

Here is how the ADRs of the European banks are being hit in New York trading.

National Bank of Greece S.A. (NYSE: NBG) is at a new 52-week low with a drop of more than 7% to $0.92.

Banco Santander S.A. (NYSE: SAN) is down 4% at $7.47, and Banco Bilbao Vizcaya Argentaria S.A. (NYSE: BBVA) is down 4% at $9.69.

The Bank of Ireland (NYSE: IRE) is down almost 3% at $8.75.

The iShares MSCI Italy Capped Index (NYSEMKT: EWI) represents all of Italy and is down 3% at $12.20, as this nation has no government at the moment and is too big to bail out.

Even the major banking stocks are down: Deutsche Bank A.G. (NYSE: DB) is down 4% at $42.80, UBS A.G. (NYSE: UBS) is down 3% at $15.90, The Royal Bank of Scotland Group PLC (NYSE: RBS) is down 4.3% at $8.87, Lloyds Banking Group PLC (NYSE: LYG) is down 2% at $2.97, Barclays PLC (NYSE: BCS) is down 3.6% at $18.53 and Credit Suisse Group A.G. (NYSE: CS) is down 3.5% at $27.42.

Before you stress too much about this, the impact is being overblown by the doomsday crowd and it is being made fun of as inconsequential by some of the financial media. Cyprus is a nation of 800,000 or so inhabitants with an economy of less than 20 billion euros. Its banking system was extremely large compared to the economy and was in shambles. The nation needs its bailout dollars.

This is just not how to fix things.

Filed under: 24/7 Wall St. Wire, Active Trader, ADR, Banking & Finance, International Markets, Regulation Tagged: BBVA, BCS, CS, DB, EWI, IRE, LYG, NBG, RBS, SAN, UBS

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

4 Crazy Market Statistics: DJIA, VIX, Crude & Treasuries

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By 24/7 Wall St.

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The DJIA winning streak continues, S&P 500 does not… The S&P 500 Index might have closed down slightly with a 3.74 drop breaking its 7 day winning streak, but the Dow Jones Industrial Average barely closed up on the day but at yet another record high closing price and that makes eight days in a row for the DJIA. The last negative day on the DJIA was February 28 at a close of 14,054.49 versus a closing bell price of 14,450.06 on Tuesday, March 12 for a streak of 2.8%. The NIKKEI 225 in Japan broke an 8-day winning streak.

The CBOE Volatility Index finally went back up as the S&P was negative and the index rose 6.3% to 12.29. That is historically very low and perhaps should be called “The Complacency Index” rather than “The Fear Index.” We would note that the new 52-week range for the VIX is 11.50 to 27.73. Since the latest consecutive stock rally, the VIX fell from 15.50 down to under 12 before Tuesday’s gain.

West Texas Crude is up 2.6% since bottoming out 7 trading sessions ago around $90.50 per barrel at the close of $92.80 today. What happens if the recovery manages to continue recovering?

Bonds may have pulled back down in yield from the near-term highs, but in the last 90 days interest rates have continued to rise. The 10-Year Treasury Note is up over 30 basis points at about 2.02%. The 30-Year Treasury Bond is also still up more than 30 basis from 90 days ago, at 3.22% versus 2.89%. You are seeing rates tick up in mortgages as well with Zillow saying, “The Thirty year fixed mortgage rate on March 12, 2013, is up 12 basis points from the previous week’s average rate of 3.46% and up 38 basis points from the average rate of 3.20% from three months ago.”

Filed under: 24/7 Wall St. Wire, Active Trader, Economy, Index, Personal Finance

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

VIX Hits Almost 6 Year Lows, Complacency Replaces Fear

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By 24/7 Wall St.

Stock Split Image

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The Volatility Index, a.k.a. the VIX, just hit a 52-week low. Make that a multi-year low, all the way back to April of 2007. Is the “fear index” showing a market that is overly bought and ripe for a correction? It may just be signaling that we are in the midst of one major rally that can keep running and running. The move we are seeing is being confirmed by the iPath S&P 500 VIX ST Futures ETN (NYSEMKT: VXX). This exchange-traded note is also at a 52-week low.

Some market observers may start to say that this alone may be marking some seriously overbought territory for the broad stock market. 2013 has been a great year for stocks with record inflows for the first two months of the year. The problem is that as the VIX gets lower and lower it signals extreme complacency. The good news for the bulls (and bad news for the bears) is that the VIX can theoretically remain extremely low indefinitely (or until all the stock buying money runs out).

The prior 52-week range in the VIX was $12.08 to $27.73. The low on Monday was $11.68 and the reading is now just over 11.75. If you have some serious gains you want to protect, it needs to be said that buying put options to hedge against downside is generally as cheap as it can get right now.

After reviewing the historical charts, the low on the VIX has now been under 13 for three consecutive calendar months. That takes us back to the end of 2007 before you can find a reading of that sort. The last time the reading was this low for an extended period was what led to the bull market before the great recession. We would note that a low VIX can go even lower as there were times that the index dropped to under 10 briefly in 2005, 2006, and again in 2007. It was in April of 2005 that the DJIA was as low as 10,000 and it was up at 14,000 by July of 2007.

The VIX is a great tool for finding seriously oversold markets that at a minimum need a serious technical trading bounce. Evaluating it down at the lows sometimes has been followed only by lower lows. The good news for any chicken-bulls is simple: put options to hedge new positions or to lock in gains are currently dirt cheap.

Filed under: 24/7 Wall St. Wire, Active Trader, Banking & Finance, Economy, ETFs & Mutual Funds, Index, Personal Finance Tagged: VXX

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Source: FULL ARTICLE at DailyFinance

Science & Technology

A Big Options Bet That Tesla Gets Cut in Half

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By 24/7 Wall St.

Tesla Model S

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Tesla Motors Inc. (NASDAQ: TSLA) was down big on Thursday after its earnings report. When you consider how small the company is in the grand scheme of things, and when you consider the BofA Merrill Lynch downgrade to Underperform, the reality is that Tesla actually held up better than it could have. What is interesting is that there was a huge bet that Tesla could see its shares cut in half over the next two years.

Options volume can be tricky in many cases. The farther out the expiration date, the higher the premiums generally become. So what if you saw that a bet was made that Tesla’s stock would fall to less than $20, or even to $18, with a time frame of two years?

A whopping 17,742 options contracts traded out in the January 2015 $18 put options. The premium paid was under $3.00 per contract, but investors need to know that the open interest before this was only a few hundred contracts. This was also the largest stock options single strike price trade seen in every single strike price and in every single expiration month up until then.

As far as what this means on a fully leveraged basis, it is huge. A move of more than 17,000 options contracts is a bet of 1.7 million shares on a fully leveraged basis (one contract equals 100 shares). Tesla traded just over 9 million shares on Thursday when shares fell to $35.16 from $38.54, and that appears to be the single largest stock volume trading day in the stock since March of 2011. Yahoo! Finance shows that the average daily stock volume is only 1.445 million shares. Tesla sometimes does not even trade 1 million shares in a day.

This was a serious bet, and with this being so far out of the money, it was unlikely that this was a hedging trade of sorts. At $35.16, Tesla’s 52-week range is $25.52 to $40.00 and its market cap is some $4 billion.

Filed under: 24/7 Wall St. Wire, Active Trader, Alternative Energy, Autos, Green Biz, Options Tagged: TSLA

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Dell Buyout Finally Arrives: Takeunder M&A for Many Holders

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By 24/7 Wall St.

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Dell HQDell Inc. (NASDAQ: DELL) has finally announced that it has signed a definitive merger agreement under which founding CEO Michael Dell will acquire the company in partnership with global technology investment firm Silver Lake Partners. Dell stockholders will receive $13.65 in cash per share of Dell. The total transaction is being valued at approximately $24.4 billion.

Investors will be happy if they bought shares during the weakest part of the past few months. Other than that, this management buyout is effectively a “takeunder” rather than a takeover for many Dell shareholders. Dell does maintain that this represents a premium of 25% over Dell’s closing share price of $10.88 on January 11, 2013, as the last trading day before rumors of a possible going-private transaction were first published. It is also listed as a premium of about 35% over Dell’s enterprise value on the same date. As far as the premium for the longer near-term, this represents a 37% premium over the average closing share price during the previous 90 calendar days prior to January 11, 2013.

The Dell board of directors unanimously approved a merger agreement under which Michael Dell and Silver Lake Partners will acquire Dell and take the company private, subject to a number of conditions. A vote of the unaffiliated stockholders is one condition. Dell’s merger agreement provides for a so-called 45-day “go-shop” period, allowing the Special Committee, along with Evercore Partners, to “actively solicit, receive, evaluate and potentially enter into negotiations with parties that offer alternative proposals.”

The transaction is amazingly not subject to financing conditions. The financing will come through a combination of cash and equity contributed by Mr. Dell’s 14% stake as of now, cash funded by investment funds affiliated with Silver Lake Partners, cash invested by MSD Capital, a $2 billion loan from Microsoft Corp. (NASDAQ: MSFT), rollover of existing debt, as well as debt financing that has been committed by BofA Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets, and cash on hand.

A successful competing bidder who makes a qualifying proposal during the initial go-shop period would bear a $180 million (less than 1%) termination fee. For a competing bidder who did not qualify during the initial go-shop period, the termination fee would be $450 million.

This deal has been in the works for about three weeks now, and it really started last year, if you read into the press release. Dell shares are up less than 1% at $13.39 on the deal and its 52-week trading range is $8.69 to $18.36.

Filed under: 24/7 Wall St. Wire, Active Trader, Consumer Electronics, Mergers & Acquisitions, Mergers and Buy Outs, PC Companies, Private Equity, Technology, Technology Companies Tagged: DELL, MSFT

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Dell Sale Moves Closer, Beware the Takeunder Buyout

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By 24/7 Wall St.

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Dell logoDell Inc. (NASDAQ: DELL) is not getting a great reception so far on Monday as word of its buyout continues to point to a deal getting closer and closer. Late last week, we were braced for a deal to come as early as this morning. Monday morning came and passed but now reports are fighting over the timing and terms. CNBC‘s David Faber reported on this today, as did Dow Jones.

24/7 Wall St. has a slightly different possibility to consider. What if this is all just another ploy?

What we do know so far is that Silver Lake is still the lead buyer, with Michael Dell being involved in the hundreds of millions of dollars. Microsoft Corporation (NASDAQ: MSFT) is still expected to contribute up to $2 billion in some form of equity or preferred capital. We are also now expecting that Dell will repatriate its cash from overseas, which ultimately get taxed unless there is some creative collateralization set up outside of the United States.

The buyout price is one which we originally put at about  $15.00 per share, but that was back on January 15 and was meant to illustrate a top-dollar that a buyer would pay which would also go off without “breach of duty suits” being filed on behalf of too many shareholders. That $15 is still a top we would expect a buyer to pay to get shareholders to go away, but we also still expect that many stockholders will file lawsuits in as many jurisdictions that they can saying that this is not in their best interests.

So, after looking through the rumored news today, $15 is still probably too high for what a private equity group. Now the talk is a top of $14 or so if you listened to CNBC, and Dow Jones said that the deal is being finalized around $13.50 or $13.75.

Michael Dell owns close to a 16% stake. That being said, what if the ultimate goal here by Michael Dell is to try to not buy the company but to get a core investor like Silver Lake and a strategic partner like Microsoft in the door and to try to just establish a floor for investors?

The Dell buyout remains one which might not be the best exit for Dell shareholders. Some holders have been in there for years and years, and some are what we would call “very long and very wrong.” To prove that there is at least some cause for the concern, Dell shares are down 3.1% at $13.21 on the day against a 52-week trading range of $8.69 to $18.36. Its market cap is listed as being almost $23 billion all-in.

There is an old saying, “An offer is as good as a take.” That may be true in some cases. That just might not be the case in this ongoing buyout of Dell. This may be more like a “takeunder” for many long-term shareholders. Below is a long-term 3-year chart from stockcharts.com for your review.

Dell Chart Feb 4 12

Filed under: 24/7 Wall St. Wire, Active Trader, Consumer Electronics, Mergers & Acquisitions, Mergers and Buy Outs, PC Companies, Rumors, Technology, Technology Companies Tagged: DELL, MSFT

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Source: FULL ARTICLE at DailyFinance