Stifel Research Analyst Scott Devitt just changed his rating from hold to buy.
Jon Najarian bought in this morning. He said it is undervalued and should easily move up to the mid 30s.
I generally eat at Chipotle once or twice a week. Tonight, after completing my meat order, I was waiting for the girl at the toppings section. She was very busy cleaning the counter by rubbing it with her gloved hand until it shined. She was essentially using the glove as a cleaning cloth. When she finished, she looked up at me and smiled. I was waiting for her to change her glove, but this never happened. I decided not to select the cheese or the chopped lettuce which requires direct contact with her gloved hand. Later, I looked back and saw that the lady in line behind me did select the cheese and chopped lettuce. I have seen employees in two other locations do the same thing. They should be using disposable paper towels for cleaning the counter instead of their gloved hand. While this may not be the cause of the current food contamination, at least this would result in a more sanitary environment.
Very bullish as indicated by the call/put ratio for DUST.
Volume: call/put 7 / 1
Open Interest: call/put 3.47 / 1
I went to a Chipotle in Northern Virginia today at 1:30 The line extended to the entrance door(around 30 people). I was a bit surprised since there were only around a dozen in line 2 weeks ago. But that was around 3:30 last time so that may explain the difference. But it does appear that customers are beginning to return. Since this is partly a psychological hurdle they have to overcome, perhaps they should try to change their appearance. A simple and cheap change such as just going from black to white T-shirts could be a start to change their image. The customers need something to visualize what has changed. The idea is to give the restaurant a cleaner image which could convey the concept of cleaner food.
A lot of the traders are playing the run up to earnings for a quick profit and maybe holding a small portion through earnings. Right after earnings, these traders will sell their remaining position, whether up or down. Both AAPL and TWTR had a run up going into earnings. Looks like the next play will be FB.
Some of the traders on CNBC mentioned that these stocks may be dead money for awhile. Those who sold at a loss may be bound by the one month WASH Rule for buying back in. One month should bring us to black Friday hopefully for the beginning of a tech rally.
Twitter: Keeping the Faith in a Turnaround
The social-media pioneer is struggling to regain momentum. Investors should remember that a quarter doesn’t make a company.By STEVEN M. SEARS
Oct. 31, 2015 12:59 a.m. ET
Companies are judged quarterly on their financial results, but they are never built over a quarter. This is a good reminder for investors who doubt Twitter —and for those who believe in the pioneering social-media company.
Last week, Twitter (ticker: TWTR) reported solid earnings. A mixed outlook initially chopped about 11% off the stock price. Then, just as dramatically, the stock regained most of its losses and has since traded with some volatility.
While it is difficult to overlook the modest growth in Wall Street’s favorite Twitter metric—monthly active users—the company is more than one measurement. Twitter’s monthly active users rose 11%, to 320 million, in the third quarter. The Street wanted 321.3 million.
Now, it’s up to Jack Dorsey, Twitter’s co-founder and new chief executive, to prove Twitter’s value to skeptical investors and users. The company’s modest fourth-quarter outlook makes that imperative.
For even though Twitter’s third-quarter earnings exceeded the Street’s expectations, fourth-quarter sales guidance ran from $695 million to $710 million. Investors wanted $740 million.
This disconnect overshadowed Twitter’s third-quarter earnings of 10 cents a share on revenue of $569 million. The Street expected earnings per share of five cents on $560 million. Meanwhile, Twitter’s new management team—Dorsey; Adam Bain, chief operating officer; and Anthony Noto, chief financial officer—demonstrated on the postearnings call that they understand issues important to users and investors. This is a soft point, but ultimately critical; it indicates that management is aligned with the proper facts.
End of Part 1
This is part 2 which has been blocked from posting.
"Senior management repeatedly said they would make Twitter easier to understand, and hinted at plans to monetize inactive accounts. Analysts remained skeptical. The talk sparked a bout of upside call buying.
On Wednesday, when the stock was down 10% in reaction to earnings, bouncing around $28, an investor paid 59 cents for 6,600 January 55 calls that expire in 2017. A similar-size trade occurred in the January 60 calls. These are lottery tickets for Twitter’s stock price doubling by 2017.
Before the earnings release, we advised investors to buy the stock when it was around $29.71 and sell January 26 puts for $1.60. The position is still attractive for aggressive investors who want to build a Twitter position.
The Street is rightfully unable to give Twitter credit before results appear. Investors, however, should remember that while the market is always right on price, it has a terrible sense of timing. Twitter represents a new way of communicating, and it will take time to fully monetize the platform."
The SPY, DIA and QQQ looks like they are forming a double top. I have reduced my market position and doing more day trading.
TORONTO, Nov. 25, 2015 /CNW/ - Koskie Minsky LLP and Sutts, Strosberg LLP announce the addition of the accounting firm PriceWaterhouseCoopers LLP, Valeant's auditor, as another defendant in the proposed class action against Valeant Pharmaceuticals International, Inc. (TSX and NYSE: "VRX"), and certain of the company's senior officers, including its current CEO, J. Michael Pearson.
It was the Enron scandal which brought down Arthur Anderson. The accounting firm was found guilty of criminal charges relating to the firm's handling of the auditing of Enron.
The similarity here would be if PriceWaterhouseCoopers is also found guilty of improper auditing of Valeant.
PriceWaterhouseCoopers LLP was engaged to audit Valeant's consolidated financial statements during the class period. The class action alleges PriceWaterhouseCoopers LLP knew or ought to have known that Valeant's financial statements were not accurate or reliable.
NUGT has had 3 reverse splits of 1:5, 1:10, and 1:10 during it's 5 year lifetime.
DUST has had 1 forward split of 2:1 during this same period.
$10,000 invested in NUGT during this period would now be worth $25
$10,000 invested in DUST during this period would now be worth $2,400
(from the site "split history")
Have you considered doing ratio spreads?
Long 1 Jan17, 120 call AND short 2 Jan17, 170 calls
You may be able to do this spread for a net credit of around 13
At expiration, you will make a profit of 50+13=63 if UVXY is at 170.
At expiration, you will begin to show a loss only if UVXY is above 233.
At expiration, your profit will be 13 if UVXY is under 120.
Of course there may be paper losses, but the ratio spread may reduce your margins.
The author of the recent SA article "The Perfect Short Part II" is calling for a S&P low of 1350 in 2016 and a low of 1100 in 2017. He sees the fair value at 1350.
One troubling sign is the abundance of zero down mortgages being offered. San Francisco Federal Credit Union has a loan program that will allow San Francisco-area borrowers to finance up to 100% of their mortgage – with no requirement for mortgage insurance – on loans up to $2 million. The borrower only has to be 18 years or older. This is an adjustable rate mortgage.
Imagine someone buying a 2 million home with no money down and ends up being laid off or relocated. If the property drops just 10%, it would cost him over 300K out of his pocket just to sell it and make a clean break from his home.
Actually we should be glad there is a class of very wealthy people. The top 1 percent of California resident income tax filers paid just over 50 percent of overall revenues collected in 2012. This amount should be even higher for the current year.
The low on Feb 3, 2016 was a 5.7% decline from the previous day's close.
Today's low of 715.11 is also a 5.7% decline from the previous day's close.
GOOG had continued down for 3 more days after the Feb 3 decline. However, this was during the market correction so it may be different this time.
You are right. The FTC is sick of this case. There will be a settlement and that will be the end of it.
"Apple shares could fall further as they are set to lose their weighting and be reclassified in the annual reconstitution of the widely followed Russell indexes, reports Reuters."
"When all is said and done, about $1.3 billion more will be sold in Apple shares at the market close on Friday, when the reconstitution of the Russell indexes takes effect, according to an analysis by Credit Suisse."
It should not come as a surprise if we later find out that Buffett has been buying at these lows. He has always said to be greedy when others are fearful.