JPMorgan Chase (JPM)
We are downgrading our rating on <b>JPMorgan Chase </b>(<a href="http://www.zacks.com/stock/quote/jpm">JPM</a>) shares to Underperform. <p> Fourth quarter earnings were well ahead of the Zacks Consensus Estimate, aided by better-than-expected results at its Investment Bank segment. However, persistent high levels of consumer credit costs and increased provisions for credit losses were among the major negatives. <p> While we anticipate continued synergies from the company's diversification and strong capital position, we believe increasing provisions and a pressured credit quality will drag down future earnings.Parker Hannifin (PH)
We are upgrading the recommendation on <b>Parker Hannifin</b> (<a href="http://www.zacks.com/stock/quote/ph">PH</a>) to Outperform with a $67 target price. We are encouraged that order trends have improved sequentially for the prior two consecutive quarters, indicating that the worst is behind the company. <p> Reflecting the benefits of restructuring actions and improving market conditions, it has increased its earnings guidance for fiscal 2010 to the range of $2.40 to $2.80 per share, representing a 44% increase from the midpoint of the previous estimate. <p> Cash on the balance sheet stands at $234 million with no commercial paper outstanding. Inventory has been reduced by $336 million since last year and days sales outstanding have improved over the prior year.What Is An ETF?
ETF stands for Exchange Traded Funds — these are funds that trade on the stock exchange just like any stock. And you follow the same procedure at your online broker to buy an ETF as you would any stock like IBM or GE. It should cost you between $4 and $10 per trade.
ETFs are not a secret, but investment professionals often don’t make fees from them, so they often go ignored.
Each ETF is a “basket” of stocks that represent a particular index. For example if you wanted to own every stock in the S&P 500 Index, you would by one of several ETFs that follows that index – an example being “SPY” or Spiders. By owning one share of SPY, you gain diversification across 500 stocks.
With ETFs you can invest in practically any market you want. Some of the most popular indexes are the S&P 500 (tracks the largest U.S. public companies), the Russell 2000 (tracks some of the smallest U.S. public companies) and the Morgan Stanley Europe Asia Far East (EAFE) index composed of companies in developed foreign countries. ETF investing also allows you to invest in real estate, bonds, commodities, sectors and other markets. There are currently over 800 ETFs now available and growing.
Mutual funds are 6 -10 times more expensive than ETFs because they hire pros who try to select a few stocks within the index that will “beat” it. But when you invest in an index fund, you basically get the exact returns of the index. Since computers (not humans) manage the stocks in an ETF, the fees are very low.
Sit back and let it ride — To allow the Law of Compounding to work its magic, it’s important to hold your ETFs as long as possible so you pay minimal taxes on dividends. And really, unless you decide to get out of a market, there are few good reasons to sell. Better to hold on and ride the markets, continuing to enjoy the benefits of Law of Compounding at rates that have averaged around 9% a year through history for stocks and 5% for bonds.
Still yearning for the excitement of individual stocks or “high-flying” mutual funds? If you’re determined to beat the house, you might as well go to Las Vegas. It has nicer hotels than Wall Street for nursing your financial wounds.
Arthur Hill: SUPPORT COMING INTO PLAY FOR IWM AND SPY – AD VOLUME LINES DECLINE FROM 52-WEEK HIGHS – NET NEW HIGHS HIT MOMENT-OF-TRUTH – BULLISH PERCENT INDICES REMAIN ABOVE 50% – TECHNOLOGY MATTERS
[[http://stockcharts.com/members/videos/|Link for today’s video.]] With the January decline, the **Russell 2000 ETF (IWM)** has retraced around 50% of the November-January advance and returned to its...QED Connect, Inc. Finalizes Agreement With Southeastern Retail Services, Inc., d/b/a “ProRemote Solutions”
MANCHESTER, NH--(Marketwire - January 29, 2010) - QED Connect, Inc. ("QED Connect")
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Under the terms of the agreement ProRemote will become a wholly owned subsidiary of QED Connect, Inc. which, with this acquisition, has started its quest to acquire promising emerging growth operating companies. Tom Makmann, CEO, said, "ProRemote is the first acquisition under our new acquisition strategy whereby we are looking forward to working with new entities to help execute their business model. ProRemote Solutions is already finalizing contracts with Sports Bar entertainment complexes in metro Atlanta and are looking at several other opportunities."
GlaxoSmithKline (GSK)
<b>GlaxoSmithKline</b> (<a href="http://www.zacks.com/stock/quote/gsk">GSK</a>) reported third quarter income of $0.92 per American Depository Share (ADS), 3 cents below the Zacks Consensus Estimate. The company reported earnings of $0.94 in the year-ago period. Third quarter revenue increased 3%. <p> While the company's diversified base and presence in different geographical areas should help support revenues, we remain concerned about future growth prospects given the patent challenges being faced by several of Glaxo's products. With several products expected to lose exclusivity and the swine flu opportunity likely to miss expectations, we expect the company's topline to remain under pressure in the coming quarters. <p> Glaxo's pipeline needs to deliver in order to make up for lost revenues and any development or regulatory setbacks would be a major disappointment for the company. We are downgrading the stock to Underperform with a target price of $37.Arrow Electronics (ARW)
<b>Arrow Electronics, Inc.</b> (<a href="http://www.zacks.com/stock/quote/arw">ARW</a>) recently upgraded its outlook for the fourth quarter of 2009. The company now expects revenues to come between $3.8 billion and $4.2 billion in the December quarter, up from the previous guidance of $3.65 billion to $4.25 billion. <p> Management stated that the upgrade in guidance was driven by stronger than expected growth in the components business. However, sales in the last few weeks of December will determine sales of the computing solutions business. Earnings per share (EPS) are now projected between $0.57 and $0.63, up from the earlier estimate of $0.44 $0.56. <p> We expect overall demand to improve going forward with the economy showing signs of recovery. We upgrade our rating to OUTPERFORM from NEUTRAL.ASF Group, Inc. Announces Completion of Merger With American Seniors Holding Group, Inc.
ATLANTA, GA--(Marketwire - January 28, 2010) - ASF Group, Inc. (
The company also reiterated its intent to divest itself of the food and beverage, and restaurant subsidiaries, Kiosk Food Solutions, Inc. and Eddy Chan's Inc., as soon as practical.
ASF Group, Inc. Announces Completion of Merger With American Seniors Holding Group, Inc.
ATLANTA, GA--(Marketwire - January 28, 2010) - ASF Group, Inc. (
The company also reiterated its intent to divest itself of the food and beverage, and restaurant subsidiaries, Kiosk Food Solutions, Inc. and Eddy Chan's Inc., as soon as practical.