All posts by Nicole Volpe

The kickback rally – your last chance to get out

yamada.jpgLouise Yamada, Managing Director of Louise Yamada Technical Advisors, talks about Avon’s historical price chart  to demonstrate how technical analysis can allow you to get out of a stock before it drops like a rock, as the makeup company did in the ’70s.
“This stock went from 200 to 19. That is a decline we do not like to have our clients experience.”
She points to Microsoft and Intel as stocks that could be poised for a fall, and says technical support for Google is at $350. “If it breaches $350, bye bye.” She said that IBM was another one she was worried about.
Yamada, who spoke at the Reuters Investment Outlook Summit on Tuesday, ran the technical analysis division at Citigroup before it was shut down in February of last year. Check out this hand-drawn stock chart:
(Click on image to view full resolution version of chart)

The oldest U.S. securities market looks to close its options floor

The Philadelphia Stock Exchange’s Chief Executive Sandy Frucher said on Tuesday he expects the exchange’s options floor to close within the next couple of years as electronic trading takes over.

The news, broken at the Reuters Exchanges and Trading Summit on Tuesday, comes on the heels of a January disclosure by the exchange — the oldest U.S. securities market — that it planned to eliminate floor trading in equities and move to a fully automated platform by mid-year.
(55 seconds)

Read the full story here.

Greenblatt: Bargains among the big caps

Gotham Capital Founder and CEO Joel Greenblatt says that some of the best bargains might be hiding in plain sight – the more visible large-cap companies such as Microsoft and Dell. — Listen to the audio here (2 minute mp3 format)

Greenblatt was speaking at a Reuters Hedge Fund and Private Equity Summit in New York this week. You can read more from the interview here and find full coverage of the Hedge Fund Summit here
 

Conway: Watching energy impact

conway.jpgKevin Conway, managing Partner at Clayton Dubilier and Rice, spoke at a Reuters Hedge Fund and Private Equity Summit in New York this week. The fund led the investor group that agreed to buy rental company Hertz from Ford. He covered a number of topics in the interview, which can be downloaded here (55 minute mp3 audio interview). Here are the highlights:
Don’t bother with the next new thing
Conway said his investment philosophy centers more around protection from risk than chasing the next new thing. “I like market leaders with good management,” he said. “It doesn’t necessarily mean big cap.”
— Listen to the audio here (1 minutes mp3 format)

Wary about sectors hit by prices, energy

He adds he would be concerned about sectors that been affected by a run-up in prices, such as energy and commodities. And: “On the flip side I’d be very worried about industries that have been hurt by their energy inputs, some of the process industries, paper, aluminum,” he said.
— Listen to the audio here (2 minute mp3 format)

You can read more from the interview with Bader here and find the full coverage of the Reuters Hedge Fund Summit here

Bader: Cable stocks unfairly hit

John Bader, chief investment officer and co-chairman of Halcyon Asset Management,  spoke at a Reuters Hedge Fund and Private Equity Summit in New York this week. The fund has $3.6 billion under management. He covered a number of topics in the interview, which can be downloaded here (55 minute mp3 audio interview). Among the highlights:

Cable stocks seen unfairly hit by Telco TV fears
The cable companies will beat out telephone companies in the fight to wire homes with media services, at least over the next 18 months, he predicted. Companies such as Comcast and Time Warner, in which Halcyon owns stakes, will be the winners for the time being, he said.
— Download to the audio here (3 minute mp3 format)

Mittal and Arcelor “undervalued”

Bader commented on Mittal Steel Co. NV’s takeover bid for Arcelor, calling both steelmakers “tremendously undervalued.”
— Download to the audio here (30 second mp3 format)

London Stock Exchange “will ultimately be sold”
Bader said he would be surprised if the New York Stock Exchange, under the new publicly traded company NYSE Group, does not bid for the London Stock Exchange. “The LSE will ultimately be sold,” most likely within a year, he forecast.
— Download the audio here (30 second mp3 format)

You can read more from the interview with Bader here and find the full coverage of the Reuters Hedge Fund Summit here