Credit Issuers Facing Major Declines (AXP, COF, DFS)
July 1, 2010 at 15:07 UTC || By Forex Playmaker
With all indications pointing to economic troubles ahead, credit issuers such as American Express (NYSE: AXP), Capital One (NYSE: COF) and Discover (NYSE: DFS) are particularly vulnerable to double-dip declines. Credit issuers are heavily exposed to the US consumer, both for the taking and repayment of credit loans. However, the consumer is, in fact, dying… Continue Reading
Morgan Stanley – A Play on Relative Positioning
June 21, 2010 at 14:07 UTC || By Forex Playmaker
A number of headwinds exist for the banking sector going forward, which warrants a play on the weakness expected for investment banks in the months ahead. Of primary interest is Morgan Stanley (NYSE: MS), which finds itself in the worst position among its peers, whether or not a second catastrophe strikes the financial sector. Shares… Continue Reading
Gulf Oil Spill Tragedy: Finding Short Value in BP
June 14, 2010 at 13:12 UTC || By Forex Playmaker
The Gulf oil spill tragedy caused by British oil company BP p.l.c. (NYSE: BP) has sent shares of the company precipitously lower in recent weeks. Last trading at 31.35, BP shares have fallen nearly 50% from their 52-week high of $62.38. Still, the ongoing spillage of oil, which has yet to be meaningfully contained, will… Continue Reading
Home Sales, Tax Credits and Homebuilders’ Impending Decline
June 2, 2010 at 18:42 UTC || By Forex Playmaker
The better-than-expected numbers for pending home sales in April helped drive equities markets higher today — and, as one might expect, homebuilder shares performed well across the board. However, investors may have overlooked the overwhelming impact of the April 30 expiration of the homebuyer tax credit on home sales, as they pushed homebuilder shares higher…. Continue Reading
