Finance
February 12th, 2011 at 03:52pm
Under Finance
Company PLUS Markets Group plc
TIDM PMK
Headline Statement re Strategic Review
Released 07:00 25-Aug-2010
Number 01846-CD53
PLUS Markets Group plc - results of strategic review Key highlights * First phase conclusion: no further funding required for existing business * Costs reduced by 40% to annual level of below £5 million from 2011 * Working capital for next two years * Board plan to break even within two years * Second phase conclusion: identification of new revenue streams * Broader product offering for small and mid-cap companies to include debt * New Retail Service Provider (”RSP”) hub, bringing trade execution onto PLUS * Product extension through launch of the PLUS Derivatives Exchange (”PDX”) * Investment in new technology Cyril Theret, Chief Executive Officer of PLUS Markets Group plc, said: “This strategic review has allowed the new management team to analyse the rapid evolution of market regulation, technology and user preferences, and make some clear decisions about the future direction of the Company. We are creating a competitive stock exchange with an attractive product offering to meet the needs of today’s market users. Within that context, we remain committed to our core franchise of helping smaller companies to raise capital and retail investor services.” Completion of strategic review Following the completion of its strategic review, announced on 25 March 2010, PLUS today confirms its intention to leverage its Recognised Investment Exchange (”RIE”) status by offering an innovative exchange venue in London, which brings together primary and secondary market listings, with trading flow from the retail and professional investment communities, across multiple asset classes. PLUS Markets’ RIE status will be used to extend its product offering and diversify its revenue streams. This gives PLUS a comparative advantage over other market infrastructure participants such as Multilateral Trading Facilities (”MTFs”) that are trading facilities only. The new venue will, in line with current European regulatory policy thinking, lay the foundations for “MiFID II” compliance - as the prevailing Markets in Financial Instruments Directive (”MiFID”) is under review - and underpin the principles of electronic execution, price transparency and best execution. First phase of strategic review The first phase focused on re-aligning costs to existing revenues. Costs for the year ended 31 December 2009 were £8.75 million (reported administrative expenses were £11.56 million) and will be reduced to an annual level of below £ 5 million in 2011, after restructuring costs. This reduction of costs by some 40% is being achieved partly through headcount reductions, which have already been completed, but principally through changing our core technology offering. PLUS has served notice on its Facilities Management Agreement with OMX Technology Limited (now part of Nasdaq OMX) with an end date in Q4 2010, and an in-house built quote and trade reporting facility will replace the existing services currently provided under this agreement. The decision to cancel the existing technology agreement was based on the need to support existing and new business lines in a simple, cost-effective and efficient manner. The conclusion of the first phase of the strategic review, as announced on 21 May 2010, was that no further funding is required for the existing business. Existing cash resources will support PLUS as it closes the gap to profitability: the Company has two years’ worth of working capital and it is the Board’s plan for the Company to reach breakeven within two years. Second phase of strategic review New product and service opportunities are arising from enhanced focus on counterparty risk management and increases in the level of pre and post trade transparency since 2008. The rapid pace of development in the transaction technology sector is producing “next generation” systems offering ultra low latency. The post-MiFID market environment poses new challenges such as fragmentation, new liquidity providers, tighter credit conditions and margin pressures. Furthermore, as governments look to the private sector for future growth, the importance of small and medium sized enterprises (”SME”) capital raising and retail investor involvement in the markets is gaining greater prominence. PLUS’s response is to broaden its product offering to both sectors. * Enhancement of offering for small and mid-cap companies PLUS already supports public equity financing for companies through its PLUS-quoted market but also recognises that the challenges in accessing debt or bank finance, for both well-established private companies and quoted small and mid-cap companies, have increased in the last two years. PLUS is therefore extending its market offering by forming an agreement with a specialist finance firm to create a new form of corporate bond product, expected to launch in Q1 2011. Companies will issue bonds subscribed to through specialist funds. The products will be designed to provide good levels of income for retail investors, who seek a steady income without heavy intermediation costs. * Retail execution services PLUS is seeking to offer the same benefits of competition and choice to retail investors as MiFID has to many wholesale investors. As the UK’s leading venue for retail trading services, PLUS plans to improve its offering through an RSP hub based on a Request For Quote (”RFQ”) model providing best execution, single fill and price improvement opportunities to retail investors. The RFQ model will be rolled out alongside the new in-house built quote and trade reporting facility and will initially be targeted at the full list of UK securities (PLUS-quoted, AIM, and officially listed). It will subsequently be extended across multiple asset classes, subject to market demand. This will bring execution onto the PLUS trading platform, enabling PLUS to generate revenues from its retail trade execution for the first time. * PLUS Derivatives Exchange PLUS has set up the PLUS Derivatives Exchange (”PDX”) to launch an innovative interest rate swap (”IRS”) product. PLUS believes this is a significant opportunity to offer a new range of products which will allow large and medium sized companies, banks and inter dealer brokers to manage their interest rate exposures much more effectively. This product will provide efficient access to full fixed-for-floating rate interest exposure through the FTSE MTIRS (Medium Term Interest Rate Swap) Index Series [Bloomberg - GO - option 8 - USD]. This will initially be through an over-the-counter (”OTC”) cleared service, developing subsequently, subject to market demand, into a new exchange-traded product known as an Exchange-Traded Index (”ETI”), listed and traded on PLUS. PLUS has entered into licence agreements with FTSE Group, the global index provider, to launch this new range of multi currency IRS products. Proposed new trading platform PLUS also has an opportunity to extend its customer base - and its ability to generate trade execution revenues - to a more diversified sell-side community such as investment banks and latency sensitive trading firms, in the context of the current MiFID review. PLUS intends to launch a new lit book (order book) in 2011, subject to new funding of up to £10 million from potential users via a special purpose vehicle (”SPV”), created to make this step change to the market’s current offerings. This lit book is to be provided in conjunction with Algo Technologies Ltd, with whom PLUS has entered into a Heads of Terms agreement, and who will supply their next generation platform offering ultra low latency, subject to SPV financing. The combination of next-generation technology trading facilities and PLUS’s listing function will enable multi asset class trading, including exchange traded products, on a pan-European basis. Conclusion In conclusion, these initiatives are designed to diversify and increase the revenue base of the Company and to reposition PLUS as a fully fledged competitive London based stock exchange - the PLUS stock exchange. It will now be offering commercially attractive primary and secondary market services to companies and investors as well as providing a pan-European venue for major market players to drive their trading and listing activity. For further information, please contact: Cyril Théret / Giles Vardey 020 7553 2000 PLUS Markets Group plc Nick Westlake (Nominated Advisor) 020 7260 1000 Charles Farquhar (Corporate Broker) Numis Securities Ltd John Parry 020 7490 8062 Rostron Parry (PR Enquiries)
We want you to have access to the best tools possible in 2011 to help you make the right choice on all you investments which is why we are offering you the chance to experience Level 2 Lite free for a whole month. Level 2 Lite gives unlimited access to London Stock Exchange prices (Level 1) and also realtime UK Level 2 data, which allows you to trade with the same data used by brokers and City traders. We have also enhanced our Level 2 products in the last few weeks to feature Level 3 a montage of the PLUS Markets and London Stock Exchange order book.
Level 3 combines two pools of liquidity by showing the full order book all outstanding orders to buy and sell shares in the market for stocks traded on both the PLUS quotedriven trading platform and the London Stock Exchange. ADVFN is the only place on the internet where you can view an amalgamation of the ‘bid’ and ‘offer’ for each market participant, in addition to the size they are buying or selling in, for both trading platforms.
The move to incorporate data from PLUS, which is quickly becoming a favoured trading platform for UK retail brokers and market makers, into ADVFN’s Level 2 Lite screens marks a major elevation in market transparency for you, the private investor.
Call us today on 0207 0700 961 and we will upgrade your account to Level 2 Lite free for a whole month.
If you have any further questions about Level 2 Lite or would like to upgrade your account to Level 2 Lite free for a month just give us a call on 0207 0700 961 Monday Friday 8.30am 5.30pm
All the best for 2011,
SF t1ps Smaller
Companies Growth Fund
‘The Stock Market is filled with individuals who know the price of everything, but the value of nothing’
Phil Fisher
We are unashamed Value Investors. From inception we have invested where we see true value, seeing each investment into each company not as a price on a screen but as part ownership of that business. This is why we choose our investments very carefully.
One place we currently do not see value, like we have said on a number of occasions in the past, is amongst the FTSE 350 and more specifically the FTSE 250 stocks. On a price to earnings ratio of now roughly 20, some serious earnings growth is expected in 2011. We do reckon the UK will continue to grow this year but a price to earnings ratio of 20 discounts more improvement than we see materialising, especially when we consider the high weighting of house builders, retailers, etc within the index and the recent revision of 2011 UK growth estimates which saw the Centre for Economics and Business Research slash forecasts to 1.1%, down from 2.1%. And it is in the FTSE 250 that most small cap funds continue to invest. We do not.
The SF t1ps Smaller Companies Growth Fund was established in November 2007 and has returned 89.2% on a 3-year view (as at 07/02/2011) making it the fifth best performing Fund in the UK over three years! Last year was a relatively tough year for the fund - on a one year view it has returned a mere 38.2 per cent, meaning that it is only in the second quartile. The reason behind this is that there is currently a serious perception of ‘risk’ associated with ‘Small Caps’. In light of this, although marketed as ‘Smaller Companies’ Funds, the majority of managers in our sector invest solely in the FTSE 250. We however use the true definition of a Small Cap and limit our investments to solid businesses valued at less than GBP300 million. We believe this is where real growth and value can be found. Despite this Small Caps continue to remain materially unfashionable. Current investor sentiment seems to be seriously risk averse and the perceived image of risk associated with the small companies has left the small caps unfavoured with investors flocking towards the perceived ’safety’ of Blue Chips.
However, on a three year view the fund has returned 89.2% making it the UK’s fifth best performing Fund (out of 2840 Funds). For more information please click here (Source: Financial Express, 07/02/2011). Please bear in mind that past performance is not a reliable indicator of future results.
The fund charges a 2.5% initial fee and a 1.5% per annum in management fees and has about GBP19.7m in funds under management. Investors can access it through various investment platforms including Hargeaves Lansdown’s Vantage and Transact or by investing directly via The Share Centre with a minimum investment of GBP1000.
The fund policy is to invest predominantly in securities of UK smaller companies admitted to or dealt in on any of the markets of the London Stock Exchange, including AIM and PLUS. The lack of research in these sectors means value can be created by investing in companies whose potential capital growth is not widely recognised by the market. We are unashamed value investors.
So as most of our competitors have focused on the FTSE 250 we have continued to do what we do best. We undertake a great deal of meticulous research in our stock selection to identify solid, under-valued cash generative businesses with great potential. Once identified we follow and invest heavily, taking advantage of the opportunities placed before us.
We focus on excellence and we focus on value.
Some of our best performers over the years have been Medusa Mining, Avanti Communications, Ascot MIning, Symphony Environmental, Stanley Gibbons, Domino’s Pizza UK and Telecom Plus.
The sell-off of certain stocks has made them more attractive than ever in terms of pure valuation - we view this as an opportunity to buy more.
Only make investments that are commensurate with your personal risk profile and investment horizon. We would like to draw your attention to the important risk warning at the end of this message. If you are in any doubt as to the suitability of an investment, you should seek independent financial advice. The value of your investment and the income from it can go down as well as up and you may not get back a significant proportion of your investment. We would also like to remind you that the price of shares can go down as well as up. You should always consider diversification as a means of managing risk.
If you have any questions about investing in the SF t1ps Smaller Companies Growth Fund or if you want a simplified prospectus and an application form please visit our website at www.t1psim.com or email growthfund@t1psim.com.
How to Invest in the Growth Fund
Buying shares in the SF t1ps Smaller Companies Growth Fund is easy and shares in the Fund are eligible to be held in an ISA, Self Invested Personal Pension, and for inclusion in a non-stakeholder Child Trust Fund account too.
The SF t1ps Smaller Companies Growth Fund provides expert management of your investment at a competitive price.
Benefit from our reduced fee of 2.5% and save more than 50% (standard initial fee 5.25%).
Deal through t1ps and The Share Centre at the initial fee rate of 2.5%. If you want an application form go to www.t1psim.com or download the simplified prospectus from here and the application form from here.
Alternatively, you can buy through your broker. Simply, contact your broker, providing him with the Fund’s SEDOL code which is B28 R5 W3. Feel free to contact Spiros Kurtidis on 0207 562 3386 if you have any questions or problems.
The Deadline is April 5th to shelter this year’s gains from tax - do not miss out on your allowance!
What we are talking about are ISAs - a wrapper to protect your savings from capital gains tax *. You have until April 5th this year to use up your ISA allowance. You also have until the same day to use your annual SIPP contribution allowance.
We hope that you will use your ISA allowance buying shares in the SF t1ps Smaller Companies Growth Fund.
But whatever you use it for - use it. Don’t lose it.
An ISA is not an investment. It is a shelter in which you can stick investments to avoid Capital Gains Tax. You can stick in £10,200 this year. As such it is an ideal wrapper for those investments where you might expect capital growth such as the SF t1ps Smaller Companies Growth Fund. It really should be the cornerstone of EVERYONE’s portfolio. Even so, around two-thirds of consumers are not planning to make use of this valuable tax break. Don’t be one of them.
Are ISAs right for me?
Stocks & Shares ISAs involve taking higher risks (as investments can fall in value) however over the longer term they should have the potential to produce higher returns. This tax year you will be able to invest up to £10,200 in a Stocks and Shares ISA. Please remember that the tax treatment depends on the individual circumstances of each investor and may be subject to change in the future.
So whatever you actually use your ISA allowance on you SHOULD USE IT and time is running out. Naturally we hope that you invest your ISA in shares of the SF t1ps Smaller Companies Growth Fund - remember to take advice if you’re unsure whether these are suitable for you.
If you have any questions about investing in an ISA in the SF t1ps Smaller Companies Growth Fund email growthfund@t1psim.com or call 020 7562 3386.
Benchmarking
Total return, bid to bid line chart from 22/11/2007 to 02/02/2011 from UKUT and OEICs Universe
Source: Trustnet
Past performance is not a reliable indication of future results
Total return, bid to bid line chart from 08/02/2010 to 08/02/2011 from UKUT and OEICs Universe
Source: Trustnet
Past performance is not a reliable indication of future results
Cumulative Performance - 07/02/2011
Discrete quarter-end performance - 31/12/2010
The Fund was launched in November 2007 and 5-year performance results are not available.
Source: Trustnet
Past performance is not a reliable indication of future results
If you have any questions about investing in the SF t1ps Smaller Companies Growth Fund or if you want a simplified prospectus and an application form please visit our website at www.t1psim.com or email growthfund@t1psim.com
Risk Warning:
The value of your investment can go down as well as up and you may not get back a significant proportion of your investment. Past performance is not a reliable indicator of future results. If you are in any doubt as to the suitability of an investment, you should seek independent financial advice.
This financial promotion has been approved and issued by t1ps.com Limited which is authorised and regulated by the Financial Services Authority, FSA number 192801, and can be contacted at 3rd Floor, 3 London Wall Buildings, London, EC2M 5SY
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SF t1ps Smaller
Companies Growth Fund
‘The Stock Market is filled with individuals who know the price of everything, but the value of nothing’
Phil Fisher
We are unashamed Value Investors. From inception we have invested where we see true value, seeing each investment into each company not as a price on a screen but as part ownership of that business. This is why we choose our investments very carefully.
One place we currently do not see value, like we have said on a number of occasions in the past, is amongst the FTSE 350 and more specifically the FTSE 250 stocks. On a price to earnings ratio of now roughly 20, some serious earnings growth is expected in 2011. We do reckon the UK will continue to grow this year but a price to earnings ratio of 20 discounts more improvement than we see materialising, especially when we consider the high weighting of house builders, retailers, etc within the index and the recent revision of 2011 UK growth estimates which saw the Centre for Economics and Business Research slash forecasts to 1.1%, down from 2.1%. And it is in the FTSE 250 that most small cap funds continue to invest. We do not.
The SF t1ps Smaller Companies Growth Fund was established in November 2007 and has returned 88.7% on a 3-year view (as at 31/01/2011) making it the second best performing Fund in the UK over three years! Last year was a relatively tough year for the fund - on a one year view it has returned a mere 36.4 per cent, meaning that it is only in the second quartile. The reason behind this is that there is currently a serious perception of ‘risk’ associated with ‘Small Caps’. In light of this, although marketed as ‘Smaller Companies’ Funds, the majority of managers in our sector invest solely in the FTSE 250. We however use the true definition of a Small Cap and limit our investments to solid businesses valued at less than £300 million. We believe this is where real growth and value can be found. Despite this Small Caps continue to remain materially unfashionable. Current investor sentiment seems to be seriously risk averse and the perceived image of risk associated with the small companies has left the small caps unfavoured with investors flocking towards the perceived ’safety’ of Blue Chips.
However, on a three year view the fund has returned 88.7% making it the UK’s second best performing Fund (out of 2835 Funds). For more information please click here (Source: Financial Express, 31/01/2011). Please bear in mind that past performance is not a reliable indicator of future results.
The fund charges a 2.5% initial fee and a 1.5% per annum in management fees and has about £19.7m in funds under management. Investors can access it through various investment platforms including Hargeaves Lansdown’s Vantage and Transact or by investing directly via The Share Centre with a minimum investment of £1000.
The fund policy is to invest predominantly in securities of UK smaller companies admitted to or dealt in on any of the markets of the London Stock Exchange, including AIM and PLUS. The lack of research in these sectors means value can be created by investing in companies whose potential capital growth is not widely recognised by the market. We are unashamed value investors.
So as most of our competitors have focused on the FTSE 250 we have continued to do what we do best. We undertake a great deal of meticulous research in our stock selection to identify solid, under - valued cash generative businesses with great potential. Once identified we follow and invest heavily, taking advantage of the opportunities placed before us.
We focus on excellence and we focus on value.
Some of our best performers over the years have been Medusa Mining, Avanti Communications, Ascot MIning, Symphony Environmental, Stanley Gibbons, Domino’s Pizza UK and Telecom Plus.
The sell-off of certain stocks has made them more attractive than ever in terms of pure valuation - we view this as an opportunity to buy more.
Only make investments that are commensurate with your personal risk profile and investment horizon. We would like to draw your attention to the important risk warning at the end of this message. If you are in any doubt as to the suitability of an investment, you should seek independent financial advice. The value of your investment and the income from it can go down as well as up and you may not get back a significant proportion of your investment. We would also like to remind you that the price of shares can go down as well as up. You should always consider diversification as a means of managing risk.
If you have any questions about investing in the SF t1ps Smaller Companies Growth Fund or if you want a simplified prospectus and an application form please visit our website at www.t1psim.com or email growthfund@t1psim.com.
How to Invest in the Growth Fund
Buying shares in the SF t1ps Smaller Companies Growth Fund is easy and shares in the Fund are eligible to be held in an ISA, Self Invested Personal Pension, and for inclusion in a non-stakeholder Child Trust Fund account too.
The SF t1ps Smaller Companies Growth Fund provides expert management of your investment at a competitive price.
Benefit from our reduced fee of 2.5% and save more than 50% (standard initial fee 5.25%).
Deal through t1ps and The Share Centre at the initial fee rate of 2.5%. If you want an application form go to www.t1psim.com or download the simplified prospectus from here and the application form from here.
Alternatively, you can buy through your broker. Simply, contact your broker, providing him with the Fund’s SEDOL code which is B28 R5 W3. Feel free to contact Spiros Kurtidis on 0207 562 3386 if you have any questions or problems.
The Deadline is April 5th to shelter this year’s gains from tax - do not miss out on your allowance!
What we are talking about are ISAs - a wrapper to protect your savings from capital gains tax *. You have until April 5th this year to use up your ISA allowance. You also have until the same day to use your annual SIPP contribution allowance.
We hope that you will use your ISA allowance buying shares in the SF t1ps Smaller Companies Growth Fund.
But whatever you use it for - use it. Don’t lose it.
An ISA is not an investment. It is a shelter in which you can stick investments to avoid Capital Gains Tax. You can stick in £10,200 this year. As such it is an ideal wrapper for those investments where you might expect capital growth such as the SF t1ps Smaller Companies Growth Fund. It really should be the cornerstone of EVERYONE’s portfolio. Even so, around two-thirds of consumers are not planning to make use of this valuable tax break. Don’t be one of them.
Are ISAs right for me?
Stocks & Shares ISAs involve taking higher risks (as investments can fall in value) however over the longer term they should have the potential to produce higher returns. This tax year you will be able to invest up to £10,200 in a Stocks and Shares ISA. Please remember that the tax treatment depends on the individual circumstances of each investor and may be subject to change in the future.
So whatever you actually use your ISA allowance on you SHOULD USE IT and time is running out. Naturally we hope that you invest your ISA in shares of the SF t1ps Smaller Companies Growth Fund - remember to take advice if you’re unsure whether these are suitable for you.
LMAX is no ordinary CFD and FX provider; we offer a new and innovative way to trade CFDs and FX. We operate a commission-based model meaning that LMAX doesn’t profit from its clients’ losses and does not run risk against them.
Advantages of DMA at LMAX:
• Tight Spreads
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• No dealing desk
• API trading
• Order book transparency
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• Place trades inside the spread
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CFDs and FX are leveraged products that carry a high level of risk to your capital, with the possibility of losing significantly more than your initial investment. They are not suitable for everyone. Ensure you fully understand the risks and seek independent advice if necessary.
The information in this email is not directed at residents of the United States or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
LMAX Limited is authorised and regulated by the Financial Services Authority (firm reference number 509778) and is registered in England and Wales (number 06505809) with registered address at Yellow building, 1A Nicholas Road, London, W11 4AN. LMAX Limited operates a multilateral trading facility and a broker, LMAX Trader.
The information in this email and any attachment is confidential and is intended only for the named recipient(s). The email may not be disclosed or used by any person other than the addressee, nor may it be copied in any way. If you are not the intended recipient please notify the sender immediately and delete any copies of this message. Any unauthorised copying, disclosure or distribution of the material in this e-mail is strictly forbidden.
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If you thought 2010 was a tough year for picking your investments, 2011 is likely to be a very similar road.
Dear ADVFN Investor,
The stock markets are set to remain pressured through 2011 in lieu of the slow economic recovery. In this in-depth report we look at what we think the main influences on the global financial markets will be, as well as consider the underlying driving forces.
We consider:
• What will be the major influences on the global financial markets this year?
• What will be the driving forces for bonds, forex, commodities and the equity market?
We also take a look at our top 3 stocks that we think will make you money in 2011.
To download a copy of this free report click here or for further information on our products and services please visit our website or call our customer care team.
Regards
Central Markets Research Team
This report is offered to you by Central Markets Advisory service with absolutely no - obligations. For more information on the products and services offered by Central Markets please contact us:
Free thinking from Central Markets
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At Central Markets we offer traditional stockbroking services to our clients from advising on buying and selling of individual stocks, to trading the market through CFDs and Spreadbetting. Clients are able to benefit from a full advisory service to an efficient execution only service depending on the needs of the client.
Risk Warning: CFDs involve a high level of risk and you can lose more than your original investment. It is not suitable for everyone so please ensure you understand the risks involved
Find out how easy it is to profit from a market now worth approximately $144 Billion USD, and still one of the fastest growing financial market sectors
…Carbon will be the world’s biggest commodity market, and it could become the world’s biggest market over all… - Barclays Capital
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It is of course well documented that the U.K. banking sector was teetering on the brink of oblivion in October 2008, but while the recriminations have rumbled on since then, as of yet there have been no great WikiLeak-style revelations to answer the multitude of questions arising from events that Autumn.
We do know that the asset bubble of the past decade culminated in a spectacular unravelling of many of the big High Street household names, and we have also been reliably informed by the FSA that the cause of this, at least as far as Royal Bank of Scotland (RBS) is concerned, was not wrongdoing but simply bad decision-making. While Sir Fred (The Shred) Goodwin may be in the clear, the question now is whether investors in the U.K. banking sector have a clear-cut opportunity to bottom fish some of the big high street names as the economic cycle finally starts to tilt upwards. Of course if the still shaky fundamentals continue to battle through flocks of black swans dropping a peripheral E.U. bailout here, or a Basel III regulatory tightening there, an indefinite rocky ride for the sector may still prevail overall.
Even so, WikiLeaks has without doubt played a part in the U.K.’s near-term banking news flow, as the rogue web publisher revealed that Bank of England (BoE) Governor Mervyn King was apparently less than flattering over the abilities of new Prime Minister David Cameron and new Chancellor George Osborne.
Get the inside track and the ‘Economical Truths’ that relate to UK Banking by downloading our FREE report.
We want you to have access to the best tools possible in 2011 to help you make the right choice on all you investments which is why we are offering you the chance to experience Level 2 Lite free for a whole month. Level 2 Lite gives unlimited access to London Stock Exchange prices (Level 1) and also realtime UK Level 2 data, which allows you to trade with the same data used by brokers and City traders. We have also enhanced our Level 2 products in the last few weeks to feature Level 3 a montage of the PLUS Markets and London Stock Exchange order book.
Level 3 combines two pools of liquidity by showing the full order book all outstanding orders to buy and sell shares in the market for stocks traded on both the PLUS quotedriven trading platform and the London Stock Exchange. ADVFN is the only place on the internet where you can view an amalgamation of the ‘bid’ and ‘offer’ for each market participant, in addition to the size they are buying or selling in, for both trading platforms.
The move to incorporate data from PLUS, which is quickly becoming a favoured trading platform for UK retail brokers and market makers, into ADVFN’s Level 2 Lite screens marks a major elevation in market transparency for you, the private investor.
If you have any further questions about Level 2 Lite or would like to upgrade your account to Level 2 Lite free for a month just give us a call on 0207 0700 961 Monday Friday 8.30am 5.30pm
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CANCEL AT ANY TIME DURING THE TRIAL you have to subscribe to the monthly service to get the trial, which means we will need your payment details. However, you will not be charged for the first four weeks. You can cancel your subscription by calling or Customer Support team on the number above. After the 4week trial period you will need to unsubscribe by confirming via written letter. The one month free upgrade to level 2 is not valid if you have previously subscribed to any of ADVFN level 2 services. For full details please contact our Customer Support.
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February 12th, 2011 at 02:05pm
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Briefing.com Intraday Commentary
Moving the Market
Bullish bias prevails
Egypt President Mubarak resigns
Corporate news is limited, but Nokia (NOK) and Microsoft (MSFT) form a business partnership
Dollar advances against competing currencies
Consumer sentiment reading from Univ. of Michigan improves, but not quite as much as had been expected
Sector Watch
Strong:casinos and gaming; forest products; auto makers; motorcycle manufacturers; home furnishing; agricultural products; diversified banks; diversified financial services; personal products; real estate services
Weak:electronic equipment and instruments; building products; trucking
2/11/2011 4:30:00 PM ET DJ30 PointChange: +43.97 Level: 12273.26 NASDAQ PointChange: +18.99 Level: 2809.44 NQ100 PercentChange: +0.6 R2K PercentChange: +1.2 SP400 PercentChange: +1.0 SP500 PointChange: +7.28 Level: 1329.15 NASDAQ-Adv:1775 Dec: 841 NYSE-Adv:2233 Dec: 754
[BRIEFING.COM] Stocks fought off moderate selling pressure in the early going to work their way toward new two-year highs. Buying was further bolstered by news that Egypt’s president gave into calls for his resignation.
A buy-the-dip response helped stocks rally from a sell-off in the prior session. A positive bias came through again this morning as stocks quickly overcame a lower open to push into positive territory. The move gained momentum as Egyptian President Mubarak finally submitted to demands for his resignation, although it is still unclear how order and leadership in the country will be restored.
While stocks showed a positive reaction to the news, oil prices were pushed to a 1.4% loss at $85.55 per barrel. Many believe Mubarak’s resignation will pacify protesters in Egypt and help mitigate risk of broader geopolitical uncertainty in the Middle East and near the Suez Canal.
The tumble in oil prices undermined interest in the energy sector, which fell to a fractional loss. Utilities (-0.2%) made up the only other sector that settled in the red.
Financials outperformed by a wide margin. The sector advanced 1.4% with help from bank stocks, which collectively climbed 1.8%, according to the KBW Bank Index.
Large-cap tech also showed leadership. That helped the Nasdaq close near its session high. Microsoft (MSFT 27.25, -0.25) was a laggard, however, following news that the company has formed a business partnership with Nokia (NOK 9.36, -1.52).
Corporate announcements also included in-line earnings from Dow component Kraft (KFT 30.66, -0.45) and an upside surprise from Chipotle (CMG 268.73, +12.10). Other earnings reports received less attention from broad market participants.
The dollar added to its prior session bounce today. In the process it set a three-week high against competing currencies. Although it finished shy of its session high, the greenback’s 0.2% gain helped to give the Dollar Index a 0.5% weekly gain.
Data had little sway with participants. The December trade deficit totaled $40.6 billion, which is essentially on par with the $40.4 billion deficit that had been estimated by economists who were surveyed by Briefing.com. However, the December deficit is greater than the $38.3 billion deficit reported for the prior month.
The preliminary consumer sentiment reading for February from the University of Michigan came in at 75.1, which isn’t quite as strong as the 75.5 that had been widely expected. However, it is stronger than the 74.2 that was registered for the prior month.
Advancing Sectors: Financial (+1.4%), Consumer Discretionary (+1.0%), Industrial (+0.7%), Telecom (+0.7%), Materials (+0.5%), Consumer Staples (+0.5%), Tech (+0.3%), Health Care (+0.1%)
Unchanged: Energy
Declining Sectors: Utilities (-0.2%)
2/11/2011 3:30:00 PM ET DJ30 PointChange: +47.00 Level: 12276.29 NASDAQ PointChange: +17.13 Level: 2807.58 SP500 PointChange: +7.86 Level: 1329.73 NASDAQ-Adv:1746 Dec: 865 NYSE-Adv:2187 Dec: 789
[BRIEFING.COM] Sellers put the pressure on commodities this afternoon. Their efforts led the CRB Commodity Index to a 0.6% loss.
Oil prices were a particularly heavy drag on the commodities space. The energy component settled with a 1.4% loss at $85.55 per barrel. Its push lower primarily came in response to news that Mubarak has resigned his position as the country’s president, an event that many believe will pacify protesters in Egypt and help mitigate against the risk of broader geopolitical uncertainty in the Middle East and near the Suez Canal.
Natural gas prices were hit even harder. Futures contract prices fell 1.9% to $3.91 per MMbtu.
Precious metals failed to go unscathed, even though the dollar handed back some of its gain in afternoon trade. Gold prices finished with a 0.4% loss at $1357.20 per ounce while silver prices settled 0.1% lower at $30.50 per ounce.
2/11/2011 3:00:00 PM ET DJ30 PointChange: +46.74 Level: 12276.03 NASDAQ PointChange: +18.02 Level: 2808.47 SP500 PointChange: +7.74 Level: 1329.61 NASDAQ-Adv:1740 Dec: 863 NYSE-Adv:2154 Dec: 821
[BRIEFING.COM] The dollar has been drifting lower all afternoon, but it is still in positive territory with a 0.2% gain. It had been up almost 0.6% at its session high. The drift has come as both the euro and British pound pare losses against the greenback; both currencies are down 0.5% at $1.354 and $1.602, respectively. Meanwhile, the yen is down 0.3% at 83.50 yen per dollar.
2/11/2011 2:30:00 PM ET DJ30 PointChange: +38.90 Level: 12268.19 NASDAQ PointChange: +17.06 Level: 2807.51 SP500 PointChange: +6.80 Level: 1328.67 NASDAQ-Adv:1648 Dec: 929 NYSE-Adv:2058 Dec: 877
[BRIEFING.COM] The Nasdaq has gradually added to its gain so that it trades at its best level of the day with a solid gain. Neither the Dow nor the S&P 500 has cleared the highs that they set in the moments that immediately followed news of the resignation of Mubarak as President of Egypt.
Financials have been a strong source of broader market support. The sector is now up 1.5% as banks make a big bounce. As a group, banks are up 2.1% to a near nine-month high, according to the KBW Bank Index.
2/11/2011 2:00:00 PM ET DJ30 PointChange: +34.51 Level: 12263.80 NASDAQ PointChange: +15.65 Level: 2806.10 SP500 PointChange: +6.15 Level: 1328.10 NASDAQ-Adv:1633 Dec: 936 NYSE-Adv:2011 Dec: 911
[BRIEFING.COM] The Nasdaq has stretched to a fresh session high, which also makes for a new two-year high. Its move this session has been led by the likes of Apple (AAPL 357.40, +2.86) and Google (GOOG 623.77, +7.33).
In contrast, Nasdaq member Microsoft (MSFT 27.27, -0.23) is under stiff pressure. Investors have shown a negative response to news that the company has formed a business partnership with Nokia (NOK 9.19, -1.69).
2/11/2011 1:30:00 PM ET DJ30 PointChange: +22.39 Level: 12252.68 NASDAQ PointChange: +13.15 Level: 2803.60 SP500 PointChange: +4.79 Level: 1326.66 NASDAQ-Adv:1629 Dec: 902 NYSE-Adv:2034 Dec: 891
[BRIEFING.COM] Despite the events of the past 24 hours and the uncertainty regarding the assumption of leadership and restoration of order in Egypt, the Volatility Index is down almost 2% at the moment.
Share volume has picked up since this morning. The pace of trade had been rather slow in the early going, but the acceleration of action has put total share volume on the NYSE at more than a half billion. Assuming that the current pace of trade continues, total share volume on the Big Board should surpass 1 billion today. Yesterday was the first time in seven sessions that share volume on the NYSE exceeded 1 billion.
2/11/2011 1:15:00 PM ET DJ30 PointChange: +24.98 Level: 12254.27 NASDAQ PointChange: +12.80 Level: 2803.25 SP500 PointChange: +5.15 Level: 1327.02 NASDAQ-Adv:1536 Dec: 990 NYSE-Adv:1910 Dec: 995
[BRIEFING.COM] The major equity averages opened lower, but for the second straight session participants made a buy-the-dip response. Buying interest increased with news that Egypt’s president has given into calls for his resignation.
Stocks rallied from sizable losses in the prior session, but experienced some volitility in its final few minutes as participants considered the implications of a refusal to resign by Egyptian President Mubarak in the face of widely publicized protests. Concerns about the potential for geopolitical tension caused volatility to continue overnight and stimulated some renewed selling interest.
However, buyers were quick to step in and provide support. Although the preliminary consumer sentiment survey for February wasn’t quite as strong as what had been expected, stocks extended their morning climb in the wake of its release. The upturn accelerated with news that Mubarak finally gave into calls for his resignation, even though it is still unclear how order and leadership in the country will be restored.
News of Mubarak’s resignation has triggered selling against oil, which is now down 1.3% to $85.60 per barrel. That slide has caused energy stocks to retreat. Energy stocks are now down 0.2% while broader market action remains rather positive.
The drop in oil prices has helped stoke buying in airline stocks. That has the Amex Airline Index up 2.1%.
2/11/2011 12:30:00 PM ET DJ30 PointChange: +8.55 Level: 12237.84 NASDAQ PointChange: +8.17 Level: 2798.62 SP500 PointChange: +3.11 Level: 1324.98 NASDAQ-Adv:1478 Dec: 1027 NYSE-Adv:1842 Dec: 1048
[BRIEFING.COM] The Dow has drifted back to the neutral line, but the Nasdaq and S&P 500 continue to trade with modest gains.
Energy stocks have moved deeper into negative territory. The sector is now down 0.4%. Utilities, down 0.1%, make up the only other major sector in the red. In contrast, financials are still up markedly with a 0.9% gain.
Oil prices have fallen to fresh session lows. The commodity is now down 1.5% to $85.40 per barrel.
2/11/2011 12:00:00 PM ET DJ30 PointChange: +13.47 Level: 12242.54 NASDAQ PointChange: +9.29 Level: 2799.74 SP500 PointChange: +3.76 Level: 1325.63 NASDAQ-Adv:1425 Dec: 1063 NYSE-Adv:1874 Dec: 981
[BRIEFING.COM] Energy stocks have retreated to a 0.2% loss. Their reversal coincides with a downturin in oil prices, which are now off by 1.0% at $85.85 per barrel, in the wake of news that Mubarak has resigned from his position as President of Egypt. Though Mubarak’s resignation comes to the delight of Egypt’s protesters, pundits point out that it is unclear whether the people of Egypt will be satisfied with steps taken to restore order and leadership in the country.
While the pullback in oil prices appears to have hurt energy stocks, it has helped propel shares of airline stocks. In turn, the Amex Airline Index is up 1.9%. Airline shares have underperformed this year; they are down 1.7% year to date while the broader market is up 5.4% this year. However, the Amex Airline Index surged 39% in 2010, just as it did in 2009. The S&P 500 advanced almost 13% in 2010, after it climbed more than 23% in 2009.
2/11/2011 11:30:00 AM ET DJ30 PointChange: +25.09 Level: 12254.38 NASDAQ PointChange: +8.05 Level: 2798.50 SP500 PointChange: +4.83 Level: 1326.70 NASDAQ-Adv:1331 Dec: 1132 NYSE-Adv:1848 Dec: 972
[BRIEFING.COM] Stocks recently pulled back a bit from session highs after news of the resignation of Egypt’s President Mubarak was digested. They have since regrouped to reclaim gains.
Financials have emerged as a leader in recent trade; the sector is up 1.1%, which is more than double the gain of any other sector. Financials are currently led by regional banks like SunTrust (STI 32.72, +1.13) and Regions Financial (RF 8.07, +0.34). Collectively, regional banks are up 2.2%, which puts the group back near nine-month highs. Regional banks are up 2.6% week to date.
2/11/2011 11:05:00 AM ET DJ30 PointChange: +20.74 Level: 12250.03 NASDAQ PointChange: +5.92 Level: 2796.37 SP500 PointChange: +3.46 Level: 1325.33 NASDAQ-Adv:1096 Dec: 1313 NYSE-Adv:1525 Dec: 1268
[BRIEFING.COM] Stocks have extended their morning push into positive territory. The vertical move has accelerated with news that Egypt’s President Mubarak has resigned.
News of Mubarak’s resignation has caused oil prices to pull back so that crude prices trade with a loss of more than 1% at about $85.65 per barrel.
2/11/2011 10:30:00 AM ET DJ30 PointChange: -6.13 Level: 12223.16 NASDAQ PointChange: -2.38 Level: 2788.07 SP500 PointChange: -0.81 Level: 1321.06 NASDAQ-Adv:1011 Dec: 1284 NYSE-Adv:1325 Dec: 1382
[BRIEFING.COM] Given the strength in the Dollar Index this morning, most commodities in the CRB Commodity Index are trading lower. The worst performers, as a group, are the livestock and soft commodities. Individually, nickel is the worst performer, showing 1.8% in losses.
Cotton futures hit new all-time highs at $1.9455/lb earlier this morning, which comes after rising for five consecutive session, primarily on strong China imports. From last week, the commodity is just over 15% higher, while currently, cotton is 2.7% higher at $1.9268/lb,
Energy markets are mixed with RBOB Gasoline and heating oil higher, crude just and April natural gas 1.2% lower. March crude oil fell into negative territory around 9:00am ET and hit session lows of $85.90 per barrel an hour ago. It’s currently just under the unchanged line at $86.61 per barrel
Precious metals are modestly higher with April gold 0.3% higher at $1367.50 per ounce and March silver 0.3% higher at $30.19 per ounce.
2/11/2011 10:00:00 AM ET DJ30 PointChange: -13.70 Level: 12215.59 NASDAQ PointChange: -2.40 Level: 2788.05 SP500 PointChange: -1.87 Level: 1320.00 NASDAQ-Adv:846 Dec: 1344 NYSE-Adv:1085 Dec: 1552
[BRIEFING.COM] The preliminary consumer sentiment reading for February from the University of Michigan was released a few minutes ago. It came in at 75.1, which isn’t quite as strong as the 75.5 that had been expected, on average, among economists surveyed by Briefing.com. However, it is stronger than the 74.2 that was registered for the prior month.
Since the report’s release, stocks have pushed higher. The upturn has yet to take any of the major sectors into positive territory, though.
Treasuries and the dollar are little changed from earlier levels.
Advancing Sectors: (None)
Declining Sectors: Health Care (-0.3%), Energy (-0.3%), Consumer Staples (-0.2%), Utilities (-0.2%), Tech (-0.1%), Financial (-0.1%), Consumer Discretionary (-0.1%), Industrials (-0.1%), Materials (-0.1%), Telecom (-0.1%)
2/11/2011 9:45:00 AM ET DJ30 PointChange: -38.75 Level: 12190.54 NASDAQ PointChange: -11.61 Level: 2778.84 SP500 PointChange: -5.53 Level: 1316.34 NASDAQ-Adv:606 Dec: 1433 NYSE-Adv:667 Dec: 1697
[BRIEFING.COM] The broad market is down with a modest loss in the first few minutes of trade. Weakness, though not severe, is widespread in that all 10 major sectors of the S&P 500 are in the red. Their losses are all of similar size.
Treasuries have benefited from a solid bid amid the stock market’s early slip. The benchmark 10-year Note is currently up a dozen ticks so that its yield is just below 3.65%.
Meanwhile, the dollar continues to hold a lead over competing currencies. That has the Dollar Index up 0.4%.
2/11/2011 9:15:00 AM ET
[BRIEFING.COM] S&P futures vs fair value: -4.90. Nasdaq futures vs fair value: -5.80. The S&P 500 is up 0.8% this week, but stock futures suggest that some pressure may percolating in this morning’s premarket trade. Stock futures worked their way lower in overnight trade as support for stocks waned amid worries about the possibility of geopolitical unrest following the refusal of Mubarak to immediately resign from his position as Egypt’s President. Mixed action among overseas markets has also left buyers uninspired, as has the latest round of corporate news. Domestic data has been limited to a generally in-line December trade deficit of $40.6 billion. Still to come is the preliminary February reading on consumer sentiment from the University of Michigan. It is scheduld for release at 9:55 AM ET.
2/11/2011 9:05:00 AM ET
[BRIEFING.COM] S&P futures vs fair value: -4.30. Nasdaq futures vs fair value: -5.50. Domestic stock futures continue to trail fair value, but remain comfortably above session lows. As for action abroad, Germany’s DAX is presently down 0.1%, but on pace for a 1.6% weekly gain. Strength in automakers BMW and Daimler (DAI) has been offset by weakness in Thyssenkrupp and Commerzbank. According to data, Germany’s final CPI reading for January showed a 0.4% decline after it had increased 1.0% in the prior month. France’s CAC is currently off by 0.5% as its declining issues outnumber its advancers by 2-to-1. It is still up 0.7% for the week, though. L’Oreal, Sanofi-Aventis (SNY), and Axa (AXA) have had the heaviest drag on trade. Total (TOT) is also a source of weakness following generally in-line fourth quarter net income. Michelin and Alcatel-Lucent (ALU) have offered some support to broad trade, though. Britain’s FTSE is fractionally lower, but on pace for a 0.3% weekly gain. Banking issues HSBC (HBC) and Barclays (BCS) have countered strength in AngloAmerican and BG Group. According to the latest data, PPI for the United Kingdom increased by 1.7% in January after a 3.4% spike in December.
As for overnight action in Asia, mainland China’s Shanghai Composite put together a 0.3% gain, which helped it finish its holiday-shortened week 1.0% higher. It was led higher by consumer discretionary stocks (+1.1%) and health care plays (+1.0%). Industrial & Commercial Bank, Sany Heavy Industry, and China Railway were individual leaders. PetroChina (PTR), China Petroleum (SNP), and China United were laggards. Hong Kong’s Hang Seng advanced for a 0.5% gain after it had logged losses in each of the previous four sessions. That left it with a 4.5% weekly loss. Nonetheless, Tencent Holdings, CNOOC (CEO), and Hutchison Whampoa were leaders in the Hang Seng’s final session before the weekend. SBC, China Mobile, and China Life Insurance were weak, though. Japan’s Nikkei was closed for Friday trade. It finished its week with a 0.6% gain.
2/11/2011 8:35:00 AM ET
[BRIEFING.COM] S&P futures vs fair value: -3.70. Nasdaq futures vs fair value: -4.00. Neither stock futures, Treasuries, nor the dollar have shown any real reaction to the latest data on the U.S. trade balance. That’s primarily because there weren’t any surprises. The December trade deficit totaled $40.6 billion, which is essentially on par with the $40.4 billion deficit that had been estimated by economists who were surveyed by Briefing.com. However, the December deficit is greater than the $38.3 billion deficit reported for the prior month.
2/11/2011 8:05:00 AM ET
[BRIEFING.COM] S&P futures vs fair value: -3.70. Nasdaq futures vs fair value: -4.30. Stocks rallied impressively from an early sell-off to finish the prior session mixed, but the bullish bias that came through in yesterday’s action has waned in overnight trade. In turn, stock futures portend a modestly lower start to the week’s final session. The softened tone of premarket trade comes amid varied losses in Europe following narrow gains among Asia’s major averages. The greenback has attracted further support, such that the Dollar Index is up 0.4% to a three-week high. Most of that move has come against the euro, which is down 0.5% to $1.353. The British pound has also come under increased pressure in recent trade; it is down 0.6% to $1.600 following a report that indicated United Kingdom producer prices for January increased 1.7% after a 3.4% increase in December. The latest round of corporate news features a business partnership between Nokia (NOK) and Microsoft (MSFT). That announcement has pressured shares of NOK, but bolstered MSFT ahead of the open. Dow component Kraft (KFT) reported in-line earnings for its latest quarter, but its shares are down markedly this morning. Shares of Chipotle (CMG) are up, but off of overnight highs following better-than-expected earnings. Today’s economic calendar features the December trade balance (8:30 AM ET) and the preliminary February reading on consumer sentiment from the University of Michigan (9:55 AM ET).
2/11/2011 7:19:16 AM ET
[BRIEFING.COM] S&P futures vs fair value: -6.00. Nasdaq futures vs fair value: -9.50.
2/11/2011 7:19:12 AM ET
[BRIEFING.COM] FTSE…6003.18…-16.80…-0.30%. DAX…7325.10…-15.30…-0.20%.
2/11/2011 7:19:12 AM ET
[BRIEFING.COM] Nikkei…Holiday……… Hang Seng…22828.92…+120.30…+0.50%.
2/10/2011 4:35:00 PM ET DJ30 PointChange: -10.60 Level: 12229.29 NASDAQ PointChange: +1.38 Level: 2790.45 NQ100 PercentChange: +0.1 R2K PercentChange: +0.4 SP400 PercentChange: +0.6 SP500 PointChange: +0.99 Level: 1321.87 NASDAQ-Adv:1347 Dec: 1244 NYSE-Adv:1570 Dec: 1390
[BRIEFING.COM] Stocks were hit hard at the open by sellers who were focused on disappointing guidance from Cisco and Akamai Tech, rather than a better-than-expected initial jobless claims report, but the major averages rallied when it became clear that buyers remain in control.
This morning’s sell-off was a broad based affair, but it didn’t last much more than half an hour. Once stocks stabilized, a buy-the-dip mentality became apparent as participants pushed back in for fear of missing out on further gains. Overall share volume was not completely impressive — it did break above 1 billion shares on the NYSE for the first time in seven sessions — but watching the tape today left little doubt that bullish participants continue to call the shots.
Even though the broader market rallied, sellers barely let up on Cisco (CSCO 18.92, -3.12) and Akamai (AKAM 40.75, -7.24). The 15% loss suffered by AKAM was its worst single-session slide in more than a year and left shares at a six-month low. As for CSCO, its 14% drop was its worst in three months and caused shares to set a new 52-week low. Weakness in CSCO proved a principal cause in the Dow’s failure to find higher ground, ultimately snapping its eight-session streak of gains.
The rest of the earnings picture was rather mixed as Molson Coors (TAP 45.48, -2.09) and Sprint Nextel (S 4.60, +0.25) both missed the consensus earnings estimate, but PepsiCo (PEP 63.36, -1.06), MetLife (MET 47.27, -0.33) and Prudential (PRU 65.00, +1.87) posted upside surprises. Whole Foods (WFMI 60.05, +6.30) surged after it complemented an upside earnings estimate with increased guidance.
There was some volatility to late trade. Stocks seemed to gyrate with every word of Egypt’s President Mubarak, who indicated in a speech that he will not leave office until September, despite calls from his citizens for him to step down immediately. Mubarak’s refusal in the face of protests carries potential for geopolitical upset.
Participants got their first dose of data in a few days with the release of initial jobless claims for the week ended January 29. Initial claims totaled 383,000, which is less than Briefing.com consensus of 410,000 and only the second time since July 2008 that initial claims came in below 400,000.
Wholesale inventories for December increased 1.0%, but that news was of little concern to participants. News that the Treasury Budget for January featured a smaller-than-expected $49.8 billion deficit was also shrugged off.
Treasuries resumed their descent this session, but the yield on the benchmark 10-year Note remains below 3.70% after its rally in the prior session. Results from today’s 30-year Bond auction proved less inspiring. The auction drew a bid-to-cover of 2.51, dollar demand of $40.2 billion, and an indirect bidder participation rate of 43.1%.
Advancing Sectors: Energy (+0.9%), Telecom (+0.5%), Industrial (+0.4%), Materials (+0.3%), Consumer Discretionary (+0.2%), Health Care (+0.1%), Utilities (+0.1%)
Unchanged: Financial
Declining Sectors: Consumer Staples (-0.5%), Tech (-0.5%)
By admin
February 12th, 2011 at 02:05pm
Under Finance
NASDAQ is the largest U.S. electronic stock market. With approximately 3,200 companies, it lists more companies and, on average, trades more shares per day than any other U.S. market. It is home to companies that are leaders across all areas of business, including technology, retail, communications, financial services, transportation, media and biotechnology. NASDAQ is the primary market for trading NASDAQ-listed stocks.
Content rich in every way. Associated illustrations are added to the posts and turn it even more stunning. I like how the articles are exactly the correct size. The site’s writer maintains the quality in every article.
Infograghic Du Jour: Oilfield vs. Cornfield
Dian L. Chu
More from Dian L. Chu:
* U.S. Economy: 12 Years To Fill the 12.4 Million Job Gap?
* Rising National Debt = The Great Recession 2.0
* Expect A Gasoline Correction to Hit Refining Stocks
Posted 2/7/2011 10:50 PM from Dian L. Chu in Investing, Commodities, Economy, US Markets
Referenced Stocks: ADM, ANDE, BIOF, GPRE, MGPI, PEIX
By Dian L. Chu, EconForecast
According to CME Group Ethanol Outlook Report dated February 07, 2011, corn prices have rallied by 90% whereas ethanol prices have rallied by only 55% over the past 7 months. That has resulted in a negative ethanol-corn crush margin of -1 cent per gallon from the 20 cent profit last July. (See Chart) The spread between ethanol and raw sugar is even worse at close to -$3 .
Source: CME Group
The CME report went on noting that most of U.S. corn-ethanol producers are barely profitable at present, some are already losing money and that the profit risks remain high for ethanol producers if corn continues to rally.
Currently, the ethanol industry receives 45 cents per gallon in government subsidies — an annual payout of about $6 billion. And according to AltTransport.com, the corn ethanol industry has received over $30 billion in federal subsidies over the last three decades.
Bloomberg data show the annual market value for ethanol in the U.S. has risen to $27.1 billion since federal support began under President Jimmy Carter during the 1970s energy crisis. The industry has had at least a dozen companies seek bankruptcy protection since 2008; however, things are looking up due to a recent EPA decision.
The EPA (U.S. Environmental Protection Agency) announced in January 2011 that it will expand E15 gasoline for 2007 or newer cars, to cars and light trucks from the 2001 through 2006 model year as well. That’s up from the current permitted 10% ethanol level in gasoline. Under the terms of the 2007 Energy Independence and Security Act passed by Congress in 2007, the U.S. is required to use 11.1 billion gallons of ethanol in 2010, up to 36 billion by 2022.
Prices for many agricultural commodities have been rising primarily due to poor crop yields caused by bad weather, certain producing countries restricting exports, increase in oil prices and fluctuations in currency markets. Meanwhile, the 7-month surge of corn prices coincides with a new historical peak of world food prices, also for the seventh consecutive month, according to the FAO Food Price Index.
So far, there are very few signs of commodity price abating any time soon, while gasoline demand growth is on a downward trend. So, if ethanol producers are already barely profitable or losing money due to high corn prices, with current subsidies, it seems to suggest either more government subsidies would be needed to keep producers afloat or more bankrupt producers on the horizon (an ethanol bailout?).
Meanwhile, the EPA has been sued by industry groups including food/farm as well as automaker over its E15 decision. Food vs. Energy has long been a heated debate, and in light of these recent events, the infographic below (h/t Ashlee) pretty much sums up various arguments regarding corn ethanol.
“Corn Ethanol offers roughly 10-20% reduction in greenhouse gas emissions compared with gasoline. However, powering a car would require 11 acres of corn a year that can be used to feed at least seven people.”
“Using ethanol as an additive to fuel won’t replace much foreign oil…[but] reduces fuel efficiency and lowers fuel economy.”
Read more: http://community.nasdaq.com/News/2011-02/infograghic-du-jour-oilfield-vs-cornfield.aspx?storyid=56644#ixzz1DkoDSTg6
U.S. consumer confidence hits 8-month high
NASDAQ.com News
Posted 2/11/2011 12:30 PM from NASDAQ.com News in Personal Finance, Business, Economy, Small Business, US Markets
Consumer confidence rose from 74.2 in January to 75.1 in February.
Consumer confidence reached its highest levels in eight months in February as an improvement in the labor market and encouraging economic reports lifted Americans’ confidence in a sustained economic recovery.
The Thomas Reuters/ University of Michigan preliminary index of consumer sentiment for February increased from 74.2 in January to 75.1; that figure is in line with a median forecast of economists polled by Bloomberg News. Moreover, the sentiment figures illustrate that households’ views of the economy and labor market turned positive for the first time in seven years.
Analysts contend the uptick in consumer confidence could translate into increased consumer spending, a vital component of GDP in the U.S. “At the end of the day, people spend on how they feel about their job prospects, and additional gains in confidence are likely to provide further support for spending,” affirmed Millan Mulraine, the senior strategist at TD Securities.
Among affluent Americans - defined by the survey as those making more than $75,000 a year - confidence climbed to its highest levels since the recession began in December 2007. With the U.S. unemployment rate falling 0.8 percentage points since November - the biggest two-month drop since 1958 - Americans are readjusting their “current view and future prospects for the labor market,” a Credit Suisse report concluded.
The U.S. Commerce Department announced in January that household purchases, which account for nearly 70 percent of GDP, increased at a 4.4 percent annualized rate in the fourth quarter of 2010, the fastest rise since the first three months of 2006.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
Read more: http://community.nasdaq.com/News/2011-02/us-consumer-confidence-hits-8month-high.aspx?storyid=57411#ixzz1DknrejZ7
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February 12th, 2011 at 02:05pm
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By admin
January 4th, 2011 at 02:16am
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January 4th, 2011 at 02:16am
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January 4th, 2011 at 02:16am
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January 4th, 2011 at 02:16am
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January 4th, 2011 at 02:16am
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