Monthly Archives: December 2012

Optionity Quick Report 12/31/2012 (Happy New Year)

Company Name / Ticker Closing Price (Gain/Loss) Low-High Volume/30 Day Average
Intel (INTC) 20.62 (+0.39) 20.16 – 20.66 41.14M/47.84M
Apple Inc. (AAPL) 532.17 (+22.58) 509.00 – 535.40 23.53M/21.71M
SPDR S&P 500 ETF (SPY) 142.52 (+2.65) 139.54 – 142.55 50.56M
iPath S&P 500 VIX Short Term Futures (VXX) 31.79 (-3.67) 31.40 – 36.79 14.62M

INTC

INTC opened lower and closed strongly higher with 1.93% gain. The volume of 41.14M is 14.06% less than the 30 day average of 47.84M. The MACD (12, 26, 9) started to show a bullish sign on Dec. 4 but the MACD difference converged again today. RSI (14) increased to 51.51 from 43.64 with an increasing buying momentum. INTC closed above its 50-day MA of $20.61 on Monday and is still below 200-day MA of $24.24.

AAPL

AAPL opened flat and close strongly higher with 4.43% increase. The volume of 23.53M is 8.38% more of the 30 day average of 21.71M. The MACD (12, 26, 9) turned to show a bullish sign on Monday. RSI (14) increased to 47.08 from 35.63, indicating a decreasing selling momentum. AAPL is currently trading below its 50-day MA of $560.33 and 200-day MA of $596.49. AAPL broke its S1 pivot pint, $527.27, on Monday and the next major resistance is its 50-day MA.

SPY

SPY opened flat and closed with a strong gain of 1.89%. The MACD (12, 26, 9) continued to show a bearish trend, but the MACD difference converged on Monday. SPY is currently trading above its 200-day MA of $137.60. SPY also closed above its 50-day MA of $140.58 today. RSI (14) increased to 53.81 from 43.28 with an increasing buying momentum. The next major resistance will be $144.66, the R1 pivot point.

China Mobile: A Solid Cash Flow Buy While The Company Marries Nokia And Continues To Court Apple [Seeking Alpha]

China Mobile Limited (CHL), founded in 1997, is an investment holding company, providing mobile telecommunications and related services through GSM networks. China Mobile ranks as the largest mobile carrier in the world with over 700 million subscribers. CHL is handicapped by using the less mature TD technology in 3G, which has forced the carrier to turn to lower-income rural areas for subscription growth. However, with its large scale efficiency and superior network coverage, CHL is a great investment target for cash flow for the long-term.

Network

China Mobile operates a GSM network, which covers all 31 provinces, autonomous regions, and directly administered municipalities in Mainland China, including Hong Kong. GPRS is utilized for data transmission. General Packet Radio Service, GPRS, is a service within the GSM network, just like the two most popular services SMS and voice connections. The company controls 70% of the Chinese mobile market but a far smaller percentage of the 3G market. As reported, “Even though China Mobile has 707.3 total wireless subscribers, making it the world’s largest carrier, the telecom has just 82.4 million 3G customers. China Mobile represents 64 percent of the total wireless subscribers in China, but only 37 percent of China’s 3G users – and its share shrunk from 41 percent of 3G users a year ago.” While China Mobile already has a relatively developed 4G “test” network, it cannot actually offer access to the network to subscribers in Mainland China until MIIT has issued it an operating permit, which now seems to be coming.

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Top Stock With Unusual Call Activities On Friday: Macy’s [Seeking Alpha]

The market opened weak and President Obama’s optimistic statement triggered the last minute sell-off into the closing. All three major indices were down on Friday, completing a fifth straight day decline. Dow Jones led the loss with 1.21% decline, and S&P followed with 1.10% drop. Nasdaq managed to hold better but still lost 0.86%. While still hanging above its 200-day MA, DIA now closed below its major support at 50-day MA and so did SPY. QQQ continued to fall and stayed below its 50-day and 200-day MAs. All three major ETFs are showing bearish trend now. All sectors closed in red and the sector of conglomerates led with 1.30% decline.

The market sentiment is neutral now with Fear & Greed Index at 49, decreased from the previous close of 58. As reported by CBOE, the total put/call ratio for today was 1.08, and the index put/call ratio was 1.30. The equity put/call ratio was 0.64, and the CBOE volatility index (VIX) put/call ratio was 0.87. In the following, top stock had been identified through our daily options scanning process, with the scanning criteria where the daily call volume ratio was above 3.00 (3x of the average call volume) with a call volume above 10,000.

Name (Ticker) Call Volume Average Call Volume Daily Volume Ratio
Macy’s, Inc. (M) 14,940 3,990 3.74

Source: Schaeffer’s Research

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Optionity Quick Report 12/28/2012

Company Name / Ticker

Closing Price (Gain/Loss)

Low-High

Volume/30 Day Average

Intel (INTC) 20.23 (-0.28) 20.21 – 20.49 25.90M/48.94M
Apple Inc. (AAPL) 509.59 (-5.47) 508.12 – 514.48 12.65M/21.86M
SPDR S&P 500 ETF (SPY) 139.87 (-1.72) 139.87 – 141.41 36.07M
 iPath S&P 500 VIX Short Term Futures (VXX) 35.46 (+1.75) 33.94 – 35.67 9.32M

INTC

INTC opened lower and closed lower with 1.37% loss. The volume of 25.90M is 52.92% of the 30 day average of 48.94M. The MACD (12, 26, 9) started to show a bullish sign on Dec. 4 but the MACD difference converged again today. RSI (14) decreased to 43.64 from 48.93 with an increasing selling momentum. INTC is currently below its 50-day MA of $20.64 and 200-day MA of $24.27.

AAPL

AAPL opened lower and closed lower with 1.06% loss. The volume of 12.65M is 57.87% of the 30 day average of 21.86M. The MACD (12, 26, 9) continued to show a bearish sign but MACD difference converged today. RSI (14) increased to 35.63 from, indicating an increasing selling momentum.  AAPL is currently trading below its 50-day MA of $562.63 and 200-day MA of $596.76. The S1 pivot pint, $527.27 will be the nearest resistance, followed by 50-day MA as the next major resistance.

SPY

SPY opened lower and turned sharply lower by 3:30PM and closed with 1.21% loss. The MACD (12, 26, 9) continued to show a bearish trend, and the MAC difference diverged. SPY is currently trading above its 200-day MA of $137.57. SPY closed below its 50-day MA of $140.63 today. RSI (14) decreased to 43.28 from 50.11 with an increasing selling momentum. The next major resistance will be $140.63, the 50-day MA.

National Oilwell Varco, An Even Better Buy By Buying Robbins & Myers [Seeking Alpha]

National-Oilwell Varco, Inc. (NOV) is one of the largest providers of equipment and components used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry. The company provides a comprehensive line of equipment for rigs and consumable products used in oil and gas production, as well as distribution services. NOV will be a great long-term investment in the industry of oil and gas equipment and services with its much needed equipment and technology, which is supported with solid fundamentals.

NOV remains at the center of several major industry trends, collecting large and increasing economic rents. NOV provides the best and only source of rig equipment and the deepwater technology for the offshore drillers. NOV also provides needed technology to properly exploit more demanding tight oil and gas reservoirs for onshore drillers. As reported by Morningstar, National-Oilwell Varco’s latest forays position the firm to lay claim to an increasing share of the economic rents as floating production storage and offloading, FPSO and subsea development efforts accelerate over the next decade.

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Top Stock With Unusual Call Activity On Thursday: Marvell Technology [Seeking Alpha]

The market had a wild swing day Thursday. The market opened nearly flat and started to decline sharply by 10:30AM due to Senate Majority Leader Harry Reid’s statement. The market then started to surge at 2:30PM into closing as House set a session for Dec. 30 to work on the budget deal. All three major indices ended the day with a minor loss. Dow Jones and Nasdaq each lost 0.14% while S&P 500 declined 0.12%. Both [[DIA]] and SPY tested the 50-day MA support and closed above it with late day surge. However, QQQ was not able to test its 50-day MA resistance and still closed below 50-day and 200-day MAs. DIA, SPY, and QQQ all have MACD (12, 26, 9) showing bearish trend now. Consumer cyclical sector led the gain with 1.07% while transportation sector dropped the most with 0.26% decline.

The market sentiment is driven with greed now with the Fear & Greed Index at 58, decreased from the previous close of 60. As reported by CBOE, the total put/call ratio for today was 1.06, and the index put/call ratio was 1.19. The equity put/call ratio was 0.68, and the CBOE volatility index (VIX) put/call ratio was 0.79. In the following, top stock had been identified through our daily options scanning process, with the scanning criteria where the daily call volume ratio was above 3.00 (3x of the average call volume) with a call volume above 10,000.

Name (Ticker) Call Volume Average Call Volume Daily Volume Ratio
Marvell Technology Group Ltd. (MRVL) 10,333 2,879 3.59

Source: Schaeffer’s Research

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Optionity Quick Report 12/27/2012

Company Name / Ticker

Closing Price (Gain/Loss)

Low-High

Volume/30 Day Average

Intel (INTC) 20.51 (-0.14) 20.31 – 20.76 31.70M/49.77M
Apple Inc. (AAPL) 515.06 (+2.06) 504.66 – 516.25 16.23M/21.95M
SPDR S&P 500 ETF (SPY) 141.59 (-0.06) 139.93 – 142.07 36.49M
 iPath S&P 500 VIX Short Term Futures (VXX) 33.71 (-0.03) 33.32 – 35.87 7.87M

INTC

INTC opened higher, hit intra-day low at $20.31, and closed slightly lower with a loss of 0.68%. The volume of 31.70M is 63.70% of the 30 day average of 49.77M. The MACD (12, 26, 9) started to show a bullish sign on Dec. 4 but the MACD difference converged again today. RSI (14) decreased to 48.93 from 51.86 with an increasing selling momentum. INTC is currently below its 50-day MA of $20.67 and 200-day MA of $24.31.

AAPL

AAPL opened flat, hit intra-day low of $504.66, and started to surge around 2:30PM to close with a slight gain of 0.40%. The volume of 16.23M is 73.94% of the 30 day average of 21.95M. The MACD (12, 26, 9) continued to show a bearish sign but MACD difference converged today. RSI (14) increased to 37.45 from 36.31, indicating a decreasing selling momentum.  AAPL is currently trading below its 50-day MA of $565.07 and 200-day MA of $597.02. The S1 pivot pint, $527.27 will be the nearest resistance, followed by 50-day MA as the next major resistance.

SPY

SPY opened slightly higher and continued to decline until 2:30PM to start the turn around and closed with a minor loss of 0.04%. The MACD (12, 26, 9) turned bearish today. SPY is currently trading above its 200-day MA of $137.56. SPY tested and traded below through its 50-day MA, but managed to close above it with late day surge. RSI (14) decreased to 50.11 from 51.02 with a decreasing buying momentum. The next major resistance will be $144.66, the R1 pivot point.

General Electric Still Brings Good Things For Investors, Buy For 2013 [Seeking Alpha]

General Electric Company (GE) is a diversified technology and financial services company and a leader in all markets in which it competes. GE is organized into four segments: technology infrastructure, energy infrastructure, home and business services, and capital services. By shedding its underperforming businesses and reducing its risks in GE Capital, GE is now focusing on the energy and power infrastructure market, which should support continued growth for GE.

Latest Developments

On Dec. 26, 2012, as reported, GE’s global research has put together a team of researchers who have achieved a milestone in the price reduction of zero emission buses by using new Durathon battery of GE combined with a lithium battery and hydrogen fuel cell. The development will create a new way to manage the energy which buses consume and it could enrich their fuel acceptance and electrification, along with that of delivery trucks as well as other heavy-duty vehicles, making possible use of cleaner vehicle technology.

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Top Stock With Unusual Call Activities On Wednesday: Ford [Seeking Alpha]

The market further extended Monday’s loss with an increasing volume as the deadline for fiscal cliff approaches. The Nasdaq led the loss with 0.74% where Apple Inc. (AAPL) dropped 1.38%. The S&P 500 dropped 0.48%, and the Dow Jones also lost 0.19%. Both DIA and SPY still closed above their 50-day MAs and 200-day MAs. QQQ sliced through its 200-day MA of $65.10 and 50-day MA of $64.81 and closed below both supports at $64.50. QQQ had turned bearish technically. Only basic materials sector managed with a gain of 0.35% while all other sectors closed in red again.

The market sentiment is driven with greed now with Fear & Greed Index at 60, increased from the previous close of 51. As reported by CBOE, the total put/call ratio for Wednesday was 0.96, and the index put/call ratio was 1.34. The equity put/call ratio was 0.74, and the CBOE volatility index (VIX) put/call ratio was 0.60. In the following, top stock had been identified through our daily options scanning process, with the scanning criteria where the daily call volume ratio was above 3.00 (3x of the average call volume) with a call volume above 10,000.

Name (Ticker) Call Volume Average Call Volume Daily Volume Ratio
Ford Motor Co. (F) 269,754 70,845 3.81

Source: Schaeffer’s Research

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Stem-Cell Therapy, Tomorrow’s Hope Maybe Coming Soon For Teva Pharmaceutical [Optionity]

Stem-cell therapy is an intervention strategy that introduces new adult stem cells into damaged tissue in order to treat disease or injury. Many medical researchers have high hope that stem-cell treatments have the potential to change the face of human diseases and alleviate suffering. One major pharmaceutical manufacturer is increasing its bet in the stem-cell therapy for congestive heart failure, Teva Pharmaceutical Industries (TEVA). Stem-cell therapy may one day revolutionize the pharmaceutical and healthcare industry and it is still not too late to explore the investment opportunity in this developing field.

What are Stem-cells?

As reported by Rafael Castillo from Philippine Daily Inquirer, “Stem cells are actually amazing precursor cells present in the embryo of any species, and they have the remarkable potential to develop into many different cell types in the body during early life and growth.” A stem-cell is “a sort of internal repair system,” which divides and multiplies itself almost without limit to replenish other cells provided the person or animal is still alive. Each new stem cell produced by the division of the original stem cells has the potential either to remain a stem cell or become another type of cell with a more specialized function, such as a heart or nerve cell. Stem cells have the potential to literally replace old malfunctioning cells and make them like those of a young healthy person, as reported by Rafael Castillo.

Promising, but Still Long Way to Go

The stem-cell therapy sounds highly promising; however, there is still a large technical barrier to achieve its functionality without complications and a lot more tests and trials are required. As quoted from Sir Martin Evans, one of the pioneers of embryonic stem-cell and gene targeting research which earned him a Nobel Prize for medicine,

“The scenario of a cell-based therapy or medical intervention using cells is very sound, but there is still a long way to go before it’s a safe therapy. There’s also quite a lot of jumping the gun and early adoption going on, some of which is quite cynical.”

Progress, Top Benefits for Mankind

In the last few years, scientists, focusing their work on stem-cell therapy, have accomplished greater progress by switching from studying controversial embryonic stem cell benefits to adult stem cell therapy and therapies involving umbilical cord stem cell samples receive via cord blood banking process. As stated from the report from Health Articles 101,

“According to their findings, adult stem cell therapy treatments have less chances of being rejected by a patient, therefore increasing his recovery rates. When using patient’s own skin stem cells, there’s no need to administer immune suppressing drugs as in instances of using embryonic stem cell therapy, which could be debilitating for the patient in the long run. In addition, adult stem cells are easier and less controversial to obtain, making this stem cell therapy a very promising medical field of research for the future.”

Top benefits of adult stem cell therapy for mankind cover the areas of:

  • Anti-aging
  • Diabetes treatment
  • Transplantology
  • Stem cell hair growth
  • Spinal cord injuries
  • Treating senile dementia and Alzheimer’s
  • Growing limbs
  • Arthritis stem-cell therapy
  • Autism stem-cell therapy
  • Heart disease stem cell therapy

Aging Population and Stem-cell Therapy

The world is not only aging and the aging populations are also living longer. As the share of the aging population increases, the demand for social security and healthcare will increase. Stem-cell therapy offers the possibility to cure the incurables or complicated, tough diseases and enhance the living quality for the human race with increasing longevity.

Investment Opportunity

On December 11, Jeremy Levin, CEO of Teva Pharmaceutical Industries, affirmed on a small item on the company agenda: Teva is going ahead with a large, late-stage trial of Revascor, an experimental cell therapy for congestive heart failure. Revascor is not owned by TEVA but by a partner, small Austrian biotech Mesoblast.

As stated from Mesoblast’s website, congestive heart failure, CHF,

“is a chronic condition characterized by an enlarged heart and insufficient blood flow to the extremities of the body. The condition develops over time and can be caused by many factors that put an excess demand on the heart muscle, including high blood pressure, incompetent valves, infections of the heart muscle or valves, or congenital heart problems. More than 6 million people in the United States suffer from heart failure with an additional 670,000 new cases diagnosed each year. This is the number one cause of mortality and hospitalization in the Western world.”

Further,

“Mesoblast’s target market is CHF patients in NYHA class II to IV with an ejection fraction of less than 35%. The estimated market size in the United States alone is currently 2.5 million patients (41% of 6.2 million pre-existing sufferers) and 201,000 newly diagnosed (30% of 670,000) each year.

Mesoblast has developed the adult stem cell-based heart product Revascor® to treat moderate to severe congestive heart failure. In a Phase 2 trial using Revascor®, interim results showed sustained improvement in heart muscle function at six months following implantation with the proprietary stem cells compared with progressive loss in heart function seen in controls. Improvements in these endpoints are used as surrogates to predict reduced mortality and hospitalization due to heart failure.”

For investors, investing in stem-cell therapy alone may be still too risky. TEVA, however, offers a strong play in the healthcare sector with the potential to gain from success of stem-cell therapy in the field of congestive heart failure.

Teva Pharmaceutical Industries

TEVA is the world’s largest generic pharmaceutical manufacturer with operations in 60 countries. TEVA develops, produces and markets generic drugs in all treatment categories. TEVA’s global low-cost operations, expansion to emerging markets, strong generic manufacturing capabilities, and drug pipeline should enable the company to grow profitably and continuously in the long term while benefiting nicely with the aging baby boomer trend.

TEVA currently has an enterprise value of $45.16B and a market cap of $32.0B. TEVA has a Trailing P/E of 15.40 and a Forward P/E of 7.44 with a PEG ratio of 0.87. TEVA generates ROE of 9.28% with 23.07% operating margin and 10.36% profit margin, ttm. TEVA has a total cash of $1.43B with an operating cash flow of $4.42B and a levered free cash flow of $3.65B. TEVA has a book value of $26.42. TEVA is currently trading at $37.79 and offers 2.72% dividend yield. A recent update on TEVA can also be read here.

Note: Investors and traders are recommended to do their own due diligence and research before making any trading/investing decisions.