EMR hit a 52 week low today. I guess the strong dollar and EMR's significant oil patch business ensure poor earnings results for the first half of 2015, as judging by the stock action.
Two prominent members of the CLF board are not believable for opposite reasons. Surf gives reasoned, intelligent posts but has been incorrect about CLF's prospects for years. Solarmanmike does not give reasoned, intelligent posts period, and should not be taken seriously because of that. At least Surf is a likeable individual with a level head on his shoulders. Solarmanmike, in my humble opinion, based on his often shameful and hurtful postings, is not.
""Second Opinion" today downgraded EMR to "avoid". That insight would have served investors better had they said it much earlier when the stock was at 69, not now when the stock is at 56.
At 3:30 today STLD stock is down about 13% from its price in the latter part of February, with no news whatsoever regarding STLD or the industry it's in. This selloff is overblown, as good economic news is good for the steel industry. It's not a utility or phone company.
Prior to today, I had read somewhere that EMR had the largest exposure to the oil patch among the big stocks thought of as industrials.
Tomorrow WYNN needs to drop to 154 and change to make the most profit for option writers, as options on WYNN expire at Friday's close. We'll see if they can manipulate a close just under 155.
The casinos are up today. CNBC had a report that attributed todays rise to increased air traffic into Vegas. They failed to mention that WYNN gets most of its revenue and profit from China.
Rarely have two great debaters on WYNN done such a good job as they have today. I have read both detailed views on WYNN as they have presented today, Both gave salient points. I give the winning essay to pcontinopc for the following reason. I believe pcontinopc's view that WYNN has too much debt and that the Vegas operations are just break even to be the most compelling arguments, I believe that a company paying out 90% of their earnings in dividends while funding two major projects is in jeopardy. Therefore, I believe pc's more pessimistic view is correct.
LGF stock seems to go up only when there is some kind of external news. Making a deal with X, sharing something with Y, rumors of a buyout with Z. These all seem to be short term things, with only a small amount of substance. If there was an internal matter pushing the stock up, that would be worth talking about. But looking back over the last year, what gets this stock moving north is usually barely better than smoke and mirrors.
The major point I took away from the article is that WYNN is borrowing the money for the dividend instead of getting the money from its cash flow. With heavy debt and a new project in both Asia and the U.S. needed to be funded, the generous dividend may be in jeopardy going forward.
Macau officials today indicated that by 2016 smoking will be banned in all Macau casinos, including VIP rooms. More bad news out of Macau, although everyone knew that this was coming sooner or later.
Does it seem to you that WYNN goes up on low volume, but goes down on heavier volume, or am I reading too much into the volume of WYNN?
WYNN is expected to earn 6.68 per share this year. That number will drop as the year unfolds. Earnings estimates in January are optimistic. Look what happened in 2014. The dividend is 6.00 per share. The company is trying to build a new casino in Asia, and another one in New England. These projects may very well be the opposite of earnings projections. They often cost more than expected. As seen in the fourth quarter numbers, Asia and Vegas are not doing well at the present time, First quarter numbers will not be very good. How long can WYNN pay out virtually all its earnings in dividends and fund two major projects at a time of decreased revenues and earnings?
A few months ago, consensus earnings for the current quarter were for 2.10 per share. Now they are for 1.60 per share. If WYNN's earnings miss the 1.60 level the way they missed last quarters consensus earnings level, watch out below. The talk is things may improve in Macau in the last half of this year. I don't see anything anywhere to believe that anything good will come out of the current quarter however. Macau and Vegas will disappoint, and Everett MA is still up in the air.