Schering Plough & Merck: Potential Cancer Concerns?
In a post on August 8th, I advocated purchasing Schering Plough and I spelled out my reasoning. In that post, I explained investor concerns of Vytorin. At that time, the ENHANCE panel found that Vytorin, a combination of Merck’s Zocor and Schering’s Zetia, worked no better than Zocor alone at removing plaque from arteries. This [...]
Earnings Confirm Bull Case for Diageo
Diageo’s stock has struggled along with the overall market this year. The concerns surrounding the stock (strong GBP, weak consumer, and rising input costs) should have been eased after last week’s conference call. If anything, Diageo’s H2 earnings reaffirmed the long case for investors.
The long case:
o Cost Control
o Demand Growth Continues
o Very Attractive Valuation
Cost Control
By [...]
Top 10 Lowest Standard Deviation MLPs
MLP Defined
A MLP is a master limited partnership. MLPs are publicly traded limited partnerships and operate in the natural resource, financial services, and real estate industries. MLPs have a significant tax advantage over other public companies; MLPs are not subject to the double taxation of public corporations. Instead they pass through the income, meaning owners [...]
Price Momentum + Fundamentals = Profits!
Ultimately the performance of a stock will follow the underlying fundamentals of a firm. Stocks that are rising quickly usually represent firms which are executing well and have strong profit growth. On the other hand, stocks that are falling usually represent firms that are failing to grow earnings or whose fundamentals are declining.
Stocks which outperform [...]
VIX Futures Signaling End of Year Slump?
In a perfect world the value of standardized futures on deliverable assets is determined via arbitrage argument, or FP = SP*(1+RF)^t.
But a unique opportunity arises in the pricing of futures that can not be arbitraged. In this scenario there is only one force setting the price: unbiased expectation of the future price of the asset. [...]
Cash is King: Accrual Earnings Stock Screen
In the early part of this decade we learned, ironically enough, earnings don’t represent real money. When a company says it earned a dollar per share last quarter, it doesn’t always mean it has that dollar to spend on dividends, share repurchases, debt repayment, or re-invest in firm’s operations.
As we all know that a dollar [...]
Is this the Third Shortest Bear Market?
Since the market “bottomed” on July 15th, we have seen a tremendous rally in all major sectors outside of materials and energy. But is this the end of a bear market or just a big short squeeze?
To answer this question we can look at historical bear market duration and price declines, and a technical picture [...]
Buying Healthcare Stocks for an Obama Presidency (Part III)
In a previous post I spelled out, why I am buying healthcare stocks for an Obama presidency . In that post I promised to provide three stocks that would benefit from this fact. The first stock was AET and now I will discus the second stock in this series, Schering-Plough Corporation.
Schering-Plough (SGP)
Schering-Plough discovers, develops, manufactures, [...]
Buying Healthcare Stocks for an Obama Presidency (Part II)
In a previous post I spelled out, why I am buying healthcare stocks for an Obama presidency. In that post I promised to provide three stocks that would benefit from this fact. The first is Aetna Inc.
Aetna (AET)
Aetna, Inc. operates as a diversified health care benefits company primarily in the United States and Canada. The [...]
EMC to Spin Off Its VMware Stake? Aggressive Call Buyers Certainly Think So
Yes, it looks like option traders are betting on a jump in EMC shares during the next two weeks. Aggressive call-buyers traded over 113,000 of the $15-stirke calls, three times the open interest, pushing the contract up 72 cents or up 380%.
The contracts closed at 89 cents, meaning the EMC shares would need to surpass [...]

