Miles J. Stoner, @StockHollywood

Dallas, Texas

9.09.2010

Sept 10

Milestone Financial Investments L.L.C.
  • U.S. stocks retained only a sliver of Thursday gains after Bloomberg reported that Germany's largest bank, Deutsche Bank AG (DB:$60.1900,$-1.7700,-2.86%) , was considering a stock sale to raise more than $11 billion. 
  • Stocks End Higher But Can't Shake Banking Concerns.
  • Casey's General Stores Inc. (CASY:$43.95,00$0.82,001.90%) late Thursday confirmed it is talking to convenience store chain 7-Eleven Inc. about that company's $40-a-share bid to acquire the smaller company.
  1. Smith & Wesson (SWHC:$3.96) tumbled lower in after-hours trade after meeting Q1 revenue expectations and issuing mixed guidance.
    • Released from an after-hours halt and plummeted to a session low of 3.46.
    • -9.8%, 3.96 - 3.46.
    • More risk tolerant shorts may want to linger near 3.60 to 3.55, levels that stood as a consistent ceiling tonight and where there may be room to catch some downside runs into the low 3.50s to 3.40s.
  2. U.S. Global Investors (GROW:$6.47,00$0.29,004.69%) reports Q4 revenue of $8.6 mln, up from $6.4 mln a year ago and just below the single analyst estimate of $9 mln on Thomson Reuters. EPS was $0.06 per share, flat with year ago levels. The single analyst estimate was $0.10 per share.
    • +5.2%, 6.40 - 6.94.
    •  In its last 7 earnings events, it has declined 5 times after wards, in the previous 3 it has risen moderately 2 times. Based on this analysis and where the stock is sitting at as of now I'm more inclined to go long on the issue.
  3. National Semiconductor (NSM:$12.9000,$0.0100,0.08%) declined in after-hours trade after missing Q1 revenue expectations and setting its Q2 outlook below the Street view.
    • -4.7%, 12.92 - 12.10.
    • NSM has largely narrowed or reversed its extended-hours move the following regular session after an off-hours earnings report, doing so in 12 of the last 17 quarters. Near-term, the stock favors widening, adding to its evening direction in next-day trade in three of the last four quarters.
    • I'm inclined to follow the near-term widening pattern in place in the stock and peg a short bet on the issue. Shorts may want to watch for any return to the 12.50 to 12.40 area, a range that set up as a tough ceiling through tonight's first-half.
  4. Neutral Tandem (TNDM:$10.96,00$-0.14,00-1.26%) entered into an agreement to acquire Tinet SpA, an Italian based global carrier exclusively committed to the IP Transit and Ethernet wholesale market.
    • +3.5%, 10.95 - 11.02
    • Sees Tinet Buy Immediately Accretive To 2010 EPS.
    • Stock on a downtrend, although we could see reversal of trend, since this buy is immediately accredited to eps.
    • More mixed on this issue than anything, watch and let it open up and establish a range. 
  5. Shares of Airgas Inc. (ARG:$64.8300,$0.2400,0.37%) announced it has signed a three-year extension to its industrial gases and welding products supply agreement with Kiewit Corporation
    • Pretty big news!
    • -1.7%, 64.85 - 63.65
    • stock is on an uptrend and there were some very large purchases after hours. 
    • I would be long.
  6. Texas Instruments (TXN:$23.8400,$0.1600,0.68%) edged lower in evening trade after narrowing its Q3 guidance that was still within the company's previous range and in line with Street estimates.
    • -1.4%, 23.93 - 23.35.
    • In the near-term, TXN is seeing mixed trade between the sessions following its mid-quarter updates, widening twice and reversing direction twice over the last four quarters. 
    • The historical data is about evenly mixed in most categories so I would look to play TXN within the ranges recorded tonight. 
    • On the short side, sellers were most aggressive tonight between 23.74 and 23.60, a potential ceiling level to watch. 
    • More risk tolerant shorts may be able to test the waters near 23.40 and perhaps catch some modest downside into the lower 23s.