Category: Stock Option Advisory

In the article, “DJIA – Stock Price Resistance“, we outlined a bearish strategy for the Dow Jones Industrial Average ($DJX) when the index is close to its historic high using bear call spreads options. In article, “DJIA – Price Resistance – Nice 8.1% for Nov 06“, we noted the success of the strategy, and we also selected new positions for December. The December selections were fully profitable returning a very nice +8.1% once again.

Quiksilver, Inc. (ZQK) announced on Wednesday it has formed a joint venture with PBM International to market, sell and distribute “Quiksilver” and “Roxy” branded products in Mexico. The joint venture will be responsible for establishing a distribution network of retail stores in Mexico.

In its December 4 issue, BusinessWeek speculates Boyd Gaming Corp. (BYD) may be the next takeover prospect following the Harrah’s Entertainment Inc. (HET) $15.5 billion buyout offer by Texas Pacific Group and Apollo Management. The casino industry’s third-quarter numbers were at or above Wall Street analysts’ predictions.

The CEO of Continental Airlines Inc. (CAL), Larry Kellner, stated recently he would consider a merger with another airline. There has been recent speculation by business and stock analysts about a possible merger between Continental and United Airlines (UAL). The speculation of a merger between Continental and United has heated up somewhat since US Airways (LCC) made an unsolicited bid for Delta Airlines (Formerly: DAL) in mid-November. Many analysts believe the US Airways merger attempt could set off a round of US carrier consolidation. Mergers could create a leaner competitive field and be a shot in the arm for the long troubled sector.

In the article, “Bearish on Oil Stocks?“, we outlined a bearish strategy for oil stocks for the next few months. We continued the oil saga in November and every position selected was fully profitable returning an average of +6.2%.

Gold Fields Ltd. (GFI) specializes in the exploration and mining of gold in South Africa, Ghana, Australia, and Venezuela. Gold Fields is the world’s fourth-largest gold company and is estimated to have gold ore reserves of 65 million ounces and is based in Parktown, South Africa. On Wednesday, 22 November, Gold Fields received local approval to purchase the South Deep Gold mine in South Africa for $2.5 billion. This will increase the number of substantial Gold mines the company possesses in South Africa to three.

General Motors ( GM ) confirmed on Tuesday the company plans to discontinue manufacturing its beleaguered Saturn Ion. The vehicle is currently being manufactured in its Spring Hill, TN factory. The company stated it would find another vehicle for the plant to manufacture in order to avoid layoffs.

Wednesday, Abercrombie & Fitch Co. (ANF) announced its third-quarter profit earnings were up 43%. A chief source of growth was its teen chain, Hollister Co., jumping 8% in same-store sales. For the year, Abercrombie expects its EPS to be around $6.60 – up from $3.88 last year.

Housing starts are down nearly 18% from a year ago and there has been a negative trend in housing starts in the months leading up to September 2006. ( realtor.org ) Both the long and short-term housing start trends are forecasted to decrease. Analysts predict this is good news for landlords and bad news for homeowners and renters.

For many years, make-it-yourself-sewing retail businesses have not been very popular on Wall Street, as the idea of stay-at-home-mom’s making clothes for her children was considered faux pas. Working moms would tender the argument, “why spend several hours making a garment when it can be purchased fairly inexpensively at the mall?” But recently, hand made clothing has seen a resurgence of interest by younger generations. It is becoming more fashionable to wear something hand-made. So young daughters are now asking for sewing machines for Christmas and using the machinery to make their own custom clothing.