Microsoft(MSFT)'s Shares Could Hit $40 on Buyback Rumors

According to a UBS analyst Microsoft Corporation (MSFT) is close to buying back $20 billion in stock. The UBS analyst expects Microsoft to buyback the stock over the next three months, which would lift earnings by as much as $0.10 per share. The firm is telling clients to buy the stock now, as the company will likely not announce the plan until it's done. They expect shares of Microsoft to climb to $40 next year.

Meanwhile, Notable Calls Blog said, "I see some buy interest in MSFT here in pre-market. $40 target sure sounds huge. But on the other hand, UBS research has been so-so lately".

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Please Note!
This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.

You are welcome to republish this article, or any portion thereof.
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Profit Falls 61% at Archer Daniels Midland(ADM) Signs Agriculture Jitters

According to Reuters on August 5, Archer Daniels Midland(ADM) reported lower-than-expected quarterly profit Tuesday because of a drop in earnings from agricultural services and wheat and cocoa processing. ADM’s earnings fell 61 percent, to $372 million, or 58 cents a share, in the fourth quarter, which ended June 30, compared with $954.8 million, or $1.47 a share, a year earlier. The miss in earnings, combined with a drop in crude oil prices, sent shares of ADM, one of the largest American food processors and ethanol producers, to their lowest level in more than two years.

ADM’s shares have fallen more than 40 percent this year on concerns that record corn prices would erode ethanol margins and that the federal government would reduce incentives to produce alternative fuels from crops, given rising food prices. A Citi Investment analyst, David Driscoll, wrote in a research note, adding that the report could worsen jitters for investors already worried about agriculture.

As shown by the charts below, ADM's share prices are currently oversold.



Related Posts :

1. Forget Oil, the New Bubble Burst is Agriculture
2. Dennis Gartman Predicts Corn Ethanol Producers Bankruptcy
3. World Food Shortage and the Ethanol Bubble

Please Note!
This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.

You are welcome to republish this article, or any portion thereof.
Please, cite the actual/original source. I would be grateful if you could link back.

Ebix.com(EBIX) is Currently Overbought

As shown by the weekly and daily charts below, Ebix.com is currently overbought. Accordingly, I really like to short it. The target price is $95 within two weeks ahead.



Related Posts :

Please Note!
This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.

You are welcome to republish this article, or any portion thereof.
Please, cite the actual/original source. I would be grateful if you could link back.

Three Reasons Why Gold Will Move Higher

Here is a part of Jim Regan's Article on SA, entitled "The International Gold Rush: Bulls May Soon Be Rewarded" :

Despite volatility that can cause short-term fear (such as that found in recent weeks), there are several reasons why the momentum points to higher prices in gold. I am concluding that we can all but ignore the typical “real world” supply-demand equation in favor of investment demand. The major catalysts I see for gold’s uptrend include:


1. Bullish trends in the gold options markets
2. The historical “gold-oil ratio” averages
3. Potential market-moving events to drive demand
   

Gold Options: As recently as Friday, July 25, options trading action pointed to levels upwards of $1,200 in the gold market. Bullion definitely has a chance to rally past these record-breaking levels, as a flurry of bets from out-of-the-money calls has a targeted range all the way up to $1,500 per ounce. After a recent fall in the commodity market, there has been strong volume on December $1,000 calls and spreads between $1,200 and $1,300. As gold options are currently dirt-cheap for traders, the trend in the options markets has higher gains on the radar.

Gold-Oil Ratio: One of the more interesting data points is the historical average gold-oil ratio which is at this point in time completely off the mark. If history proves an effective lesson, precious metals need to increase dramatically while oil needs to continue its decline. As we are sitting right now, gold would need to hit the $2,000 per ounce mark in order for the ratio to balance. Granted, this can be offset slightly with oil tailing off further; but the case for rising precious metals is evident.

World Events: Certain market moving world events could lead to a staggering demand for gold, adding yet another catalyst to the bullish playbook. With the possibility of domestic & international economic disaster, a strong threat of inflation around the world, the potential catastrophic war between Israel & Iran and even flailing currency markets, any one of these deal-breaker events could cause a sharp jerk upwards in the gold markets. Investors betting on the world’s furthered economic demise are moving all the chips on the table toward the precious metals markets.

Related Posts :

1. Paul Tudor Jones Commented on Oil Bubble
2. Gold’s Tight Supply, Soaring Demand Could Keep ETFs Looking Sharp
3. Hedge Your Funds in Gold Stocks
4. Gold May Rise to $5,000 on Inflation, Schroder Says

Please Note!
This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.

You are welcome to republish this article, or any portion thereof.
Please, cite the actual/original source. I would be grateful if you could link back.