Wednesday, September 19, 2007

Quick Stocks To Watch

After this, I will be out for the rest of the day and not posting until tonight.

Goldman Sachs (GS) is on the earnings docket tomorrow. The Reuters consensus estimate for GS is EPS $4.37 and revenue $9.57 bln. With the stock trading at $205, the combination of a 210 call and a $200 put results in a debit of more than $6. A $200, or 210 straddle is priced at over $10, so a decent move is expected tomorrow.

Parts of the market of running warm today and some cold. The housing data threw cold water on stocks like home builder Hovnanian (HOV), a big winner yesterday, but down 10% today.

While the XLF is up a half-percent with some lingering excitement over the Fed rate cut, lifting names like Countrywide (CFC), Citigroup (C) is down around 1%, Bear Stearns is down 3%.

Even some of the high flyers have come in a bit. The ever amazing (great pick among many by Howard Lindzon) the stock is about $10 below the best levels of the day today.

Nike (NKE) is another that comes to the earnings confessional tomorrow. They will give us a decent indication of worldwide market conditions, at least for their business. Earnings of 87-cents a share are expected.

There's been takeover chatter surrounding Sepracor (SEPR), the Lunesta sleeping pill maker. Johnson and Johnson (JNJ) the rumored suitor. This has led to a pop in SEPR options activity. Ahead of expiration I am always wary of mysterious rumors that conveniently pop up.

The mixed market activity could portend a fade for the market... but then again, maybe not.

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