Twitter Soars on Ad Hopes; Target Shaky on Fears; Blackberry Rises on Recovery Plan

        Twitter(TWTR) soared 8.4% on new hopes that it will be successful in the ad business. Rising by over $5, the new stock has greatly surpassed its starting price of about $20 to reach $69.96 at market's close, making it one of the most successful IPOs of the year. Originally, investors feared another Facebook drop, especially since Twitter has no real earnings due to a lack of advertisements on its site, but those worries have long since disappeared. As the social media industry continues its exponential growth, there are high hopes on Twitter's ability to market ads to its approximately half-a-billion users. Also, with recent highlights from Snowden revealing the government's extensive involvement with larger internet corporations, Twitter has become a go-to company for privacy since it has avoided giving in to the government's demands.

        Target(TGT) recently revealed its loss of 40 million credit card numbers to hackers. Though it faced no rapid drop due to these reports, it is down 15% from a high of $72 achieved in July of this year. Along with the credit card numbers, it lost emails and personal identification numbers. Forced to give discounts to its fearful consumer base and provide reassurance through outside services, this quarter may be very draining on their cash balance. The credit card numbers quickly appeared for sale on the black market, prompting many banks to extend their hours for the sake of their customers. Many groups have filed lawsuits against Target for one of the largest financial breaches in history.

        Blackberry(BBRY) has been one of the worst performing stocks of 2013, but has managed to regain some ground, rising around 27% in the past three days. Hopes of Thorsten Heins' ability to revive the company brought shares to a two year high of $18 in the beginning of the year. As its new BB10 phones failed to impress, the company lost over $1 billion in the third quarter and fell to a low of $6 per share. As a series of takeover bids failed, the company's future looked grim to investors. In its most recent quarter, the company reported a $4.4 billion loss but was able to strike a deal with Foxconn. The Apple supplier entered into a 5 year deal with Blackberry to help design and produce a new line of phones for Blackberry targeted at the lower tier smartphone market in Indonesia. Its new CEO, John Chen, believes a recovery is very possible for the once-dominant smartphone maker, and many investors are confident as shown by its shares.

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

ORB Jumps Before Rocket Launch; MSFT Announces Share Buybacks

        Orbital Sciences(ORB), a company specializing in the development of rockets, gained nearly 5% during trading hours on a volume of 1 million shares. This precedes the company's plan to launch its first spacecraft to the International Space Station on Wednesday of this week. Named Antares, the rocket will launch from NASA's Virginia facility and will carry limited items as this is considered a test flight. Though ORB has had a bumpy road, gaining only 20% since its IPO 11 years ago,  it still managed to post a 30% rise in the last year. Rocket research is a long and expensive process, so the results of this test run could be a make-or-break for the stock.
        Aeropostale(ARO) made gains of 18% today after Sycamore Partners, a company well-known for its investments in clothing companies, disclosed an 8% stake in the company. This led to speculations that the company might soon be taken private. ARO has not fared well this year, dropping from $15 to $9 in just two weeks after a disappointing second quarter earnings result. Its efforts to revamp itself as a leading brand of teen fashion wasn't as well as hoped. Similarly, rivals American Eagle Outfitters(AEO) and Abercrombie and Fitch(ANF) both reported poor outlooks and have declined in the past few weeks.
        Microsoft(MSFT) announced today that its board approved a $40 billion share repurchase program as it hiked its dividend up by 22%. This follows its acquisition of Nokia's mobile hardware unit and CEO Steve Ballmer's retirement announcement. The stock has made impressive gains, rising 30% over the past few years and 5% in the past year. It recently broke through multi-year highs by hitting an impressive $36 in July. Its shares made modest gains in early trading hours but flatlined over the course of the day.

Sources:
Associated Press

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

August Jobs Report Misses Expectations; Fed Might Still Taper Stimulus

The August jobs report was released last Friday, indicating a sluggish recovery of the economy that was below estimates. 169,000 jobs were added - a far cry from the median estimate of 180,000. In addition, June and July's job estimates were revised to indicate that less jobs were added than previously thought. One of the most dramatic figures of the report was the sharp decrease of people working or looking for work. With most of the jobs added being low-wage positions, economists consider this job report to be a a stark reminder of the economy's weak state. However, the job report had some bright spots - namely, an increase in hourly wages and hours worked. Analysts believe that the Federal Reserve could use these bright spots to justify a tapering of the stimulus. The markets responded to this uncertainty, with the S&P 500 and Dow Jones Average both suffering losses on Friday. If the stimulus is tapered, it could lead to increased stress on the economy and a fall in stock prices.

Sources
New York Times

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

Microsoft Acquires Nokia Mobile Phones Unit for $7.2 Billion: Nokia Surges, Microsoft Drops

All numbers accurate as of 9/3/13 1:12 PM EST. However, they may change as the trading session progresses.

Microsoft announced that it was planning to pay the equivalent of $7.2 billion USD for Nokia's (NASDAQ: NOK) mobile devices unit, as well as its patent portfolio (all the patents owned by a company.) While Nokia phones already utilize Microsoft's mobile operating system, Microsoft's failure to gain a foothold in the mobile phone market has hurt the company. The company's acquisition of Nokia presents an opportunity to gain a share of this market. About 32,000 Nokia employees, including CEO Stephen Elop, are to be transferred to Microsoft. Mr. Elop is seen as a viable successor to Microsoft CEO Steve Ballmer, who is retiring later this year. After the transaction is completed in early 2014, Nokia will retain its networking and location services sectors. The sale will allow Nokia to ditch its declining smartphone sector, and instead focus on new technologies. Revenue from the sale will augment the company as it evolves into new markets and fields. Investors responded favorably to the sale in Nokia's favor, with the stock surging by $1.18/30.26%. However, Microsoft stocks did not react favorably to the sale. MSFT is currently down by $2.05/6.09 as a result of the sale. Even with Nokia's mobile unit and patents, Microsoft could still have trouble gaining a foothold in the mobile market, and some investors see the sale as a waste of money for Microsoft.

Sources
Yahoo Finance

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

Dow Jones Surpasses 15,000; Microsoft (MSFT) Surges on Ballmer Resignation

Stocks rose today in a day of light trading, let by Microsoft's meteoric gain.  A day after a technical error brought the New York Stock Exchange to a standstill for three hours, all glitches were resolved and the markets operated as normal. Investors were cautious today, leading to a daily volume far below the average. Only 4.9 billion shares were traded, versus a 2013 daily average of 6.3 billion. Today's volume was only slightly higher then yesterday, when there were 4.4 billion traded shares. The Dow Jones Industrial Average (^DJI) closed at 15,010.51 (+46.77/0.31%), the S&P 500 closed at 1,663.5 (+6.54/0.39%), and the NASDAQ Composite closed at 3,657.92 (+19.085/0.52%). The Dow Jones is starting to show signs of a recovery after a slump from 15,600 points led by Fed anxiety.

CEO of Microsoft Steve Ballmer's resignation was the highlight of the financial world today. Microsoft (MSFT) shares surged by $2.36/7.29% to close at $34.75. Ballmer's style of management attracted criticism, and is blamed for the company's slip from the dominating giant it once was. During his tenure at Microsoft, competing tech firms overtook his company in fields such as smartphones and tablets. Microsoft's failure to capture a significant share of the mobile market led to massive criticism towards Steve Ballmer, and problems for the company itself. As Ballmer steps down from his position and leaves the company he helped shape over three decades, Microsoft will hopefully be able to capture a portion of the mobile market and become a key player in the tech world once again.

Sources
Yahoo Finance
Reuters

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

NASDAQ Trading Temporarily Halted

Trades on the NASDAQ market were halted for three hours due to a technical error. Around 12, issues with quote dissemination (the process of providing real-time prices) began to show. These issues were so severe that NASDAQ decided to halt trading of Tape C securities at 12:14. Tape C securities include most stocks listed on the NASDAQ. Share trading of Microsoft, Apple, Google, and other NASDAQ giants were completely stopped. This blackout continued until 3:02, when shares of AAME began to be traded. Ten minutes later, all NASDAQ securities resumed normal trading. The NASDAQ Composite (^IXIC) closed at 3638.71, up 38.92 points (1.08 percent).


Sources:
Reuters
NASDAQ.com

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

Stocks Post Losses For the Fourth Day For the First Time in 2013

    US stocks fell today, with major indices reporting a loss for the fourth day in a row. For the Dow Jones (^DJI) and S&P 500 (^GSPC), this was the longest consecutive loss all year, while the NASDAQ (^IXIC) matched declines from Mid-June. The losses have been anticipatory, as the Federal Reserve September policy meeting is set to occur on Wednesday. One of the expected policy changes is a reduction in bond buybacks, which have been a major driving force in the market's impressive gains (the S&P 500 is up more than 16% this year.) As the Fed cuts back on its stimulus by decreasing the amount of bonds it buys back, markets could fall dramatically. Investors have reacted pessimistically to this news, taking less risks and leading to a decline in market performance. With few other major events in the world of finance, the upcoming Fed meeting is weighing heavily on the markets. Leading up to Wednesday, US stocks could continue to drop as stimulus tapering is expected by investors.

Sources:

Yahoo! Finance
CNBC

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

Tesla Downgraded; Blackberry Explores Sales Options; Dole Goes Private

        Krispy Kreme Donuts(KKD) soared almost 10% in early market trading after having its price target raised from $16 to $26 by Janney Montgomery Scott. The stock is up over 100% since the beginning of this year, and close to 400% since bottoming out in 2009. Over the past few months, KKD has been on a winning streak following a series of earnings beats. It has also announce a share-buyback plan after reporting increased growth rates. Its same-store sales have increased at a rate of nearly double Wall Street estimates for the past few quarters, sending shares up higher each time.

        Blackberry(BBRY) rose about 5% on reports that the company plans on either searching for partnership options or potential buyers. This follows the gains it made on Friday after rumors surfaced that the company was warming up to the idea of going up for sale. The once powerful smartphone maker has plummeted in recent quarters after reporting disappointing second quarter sales that dampened comeback hopes for its new BB10 operating system. These gains are the first steady ones since it made its plummet in June.
        Tesla Motors(TSLA) dropped over 4% after being downgraded to Neutral by Lazard Capital Markets. It has made fantastic gains over the last few months following a series of earnings beats. Most recently, its second quarter reports sent shares flying 15% as the company reported a surprise profit when most analysts were expecting a loss. Tesla plans on releasing a new all-electric SUV next year, which will help it expand to a larger variety of consumers.
        J. C. Penny(JCP) again shed its market value due to concerns about the future of the company. Earlier this year, the stock made some gains on hopes that CEO Ron Johnson, designer of Apple's flagship stores, would be able to lead the company in a turnaround effort. As his efforts didn't yield expected results, billionaire investor Bill Ackman had him ousted and temporarily replaced with former CEO Mike Ullman. He is now leading a search for a new CEO, sending shares into a volatile frenzy. Many board members of the company have deemed his efforts "counterproductive" to the company.
        Dole Foods(DOLE) rose 4.9% during trading hours after CEO Murdock offered to take the company private for $1.6 billion. This represents a 12.5% premium over his initial offer of $12 a share. Murdock made his first offer earlier on in the year after the company reported lower-that-expected sales and a slightly weaker outlook. He currently own 40% of the company's shares.

Sources:

Yahoo! Finance

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

Stock: TSLA

       Tesla Motors, founded by Elon Musk, is a decade old company that specializes in the production of 100% electric cars targeted at the high end market. Its recent gains have helped increase Musk’s wealth by over $500 million. Let’s take a look at the catalysts that have helped the stock sky-rocket since it first broke through its moving averages in may of 2013.

        A recent series of chain reactions have helped company pull in many billions from market cap growth, allowing them to repay a loan of $500 million back to the government 10 years early. This growth was set off by the company reporting a surprise first quarter profit that greatly topped analysts' expectations. In fact, this was the first time the company reported a profit since it's founding!

       Next, the company received an excellent rating for its Model S car, which propelled sales at a record pace. The company was added onto the Nasdaq 100, replacing the computing giant Oracle. Also, the company has reported weekly sales topping 500 for the first time. This translates to approximately revenue of $1.5 Billion, much higher than the $950 million pulled in last year. CEO Elon Musk has expressed his intent to control 50% of the luxury car market in Hong Kong, which could allow revenue to shoot past $2 Billion in the next few months!

       One problem Tesla faced in recent years was its ability to sell cars directly to consumers. Currently, about 3/4 of the states in the USA do not allow Tesla to open dealerships. The company is forced to rely on rival companies, or Internet marketing. This poses a huge problem for the company, as it cannot expand the reach of its brand. In addition, rival companies have hired lobbyists in D.C. to try to ensure that Tesla can't reach a larger consumer base. However, just this month the company signed a petition of well over the goal of 100,000 signatures, aiming to change the laws that prevent its expansion.

        More recently, Tesla reported a surprise second quarter profit while most analysts were expecting a loss. It sold over 5,100 cars while analysts were expecting 4,500. This sent its stock price up 15% in one day. Tesla is currently extremely overvalued at $17 billion, which has caused a number of analyst downgrades. Despite this, the stock has continued its rapid gain past the $150 mark, representing a gain of 700% since its 2010 IPO.

        Tesla not only earns money from selling its cars, but also from selling government initiated carbon credits. As global warming becomes an increasingly looming threat, the United States government has set limits on the amount of carbon emissions that can be produced by large corporations. Since Tesla is highly eco-friendly, it is able to sell its unused carbon credits. Last quarter, this helped the company pull in over $50 million.

       The Tesla Model S has been given a 99 out of 100 by Consumer Reports. This makes it one of their highest rated cars, and they described it as “the best car they have ever tested.” Just because the car has been designed for the experience, doesn’t mean that the company left out the basic areas of safety and function. When crash tested by National Highway Traffic and Safety Administration, the car received five stars. In acing the tests, the Model S has demonstrated its reliability and durability.

       Unlike most cars of its size, the Model S can seat 5 adults with the additional option of seating two children in the rear facing seats located in the trunk. The car comes with a 17-inch touchscreen and two USB connection ports. The Model S can be linked to 3G, allowing you to listen to online radio or use Google Maps. Its rear facing cameras allow the driver to have a 360 degree view when driving. The charging ports are designed to utilize either 240 volt or 110 volt outlets, fully charging the car overnight.

       The Model S can reach speeds of 130 mph with EPA certification for up to 265 miles. Due to being purely electric, the Model S produces no emissions and has no need for a tailpipe. With an all-glass UV protected roof, the driver receives the full experience of driving a luxury vehicle.

       Tesla’s Model X SUV is also 100% electric, and is due to be released in 2014. Its price is expected to range between $30,000-$40,000. Most minivans are currently priced in this range, so the fact that the Model X is electric actually gives it a competitive edge. With its Falcon Wing doors and aluminum steel structure, it is the embodiment of Tesla in every way. In addition, Tesla is planning on making its Generation 3 vehicle that will greatly decrease the cost of electric cars. When it is released, it will be targeted at mass markets to expand Tesla’s presence.

       Tesla cars can be easily charged at their Supercharger Stations, which are self-boasted to be "The Fastest Charging Station on the Planet." In 20 min, half of the battery can be charged, while 75 min provide a full charge. At these stations, you can also opt to have you battery exchanged for a new one that is fully charged. This takes a mere two minutes and saves a lot of time! The tops of the stations are equipped with solar panels that aid in the provision of green energy. This service is free to all Tesla Car owners.

       One issue with theses charging stations is that there are very few of them. As of 2013, there are 17 strategically placed across the east and west coasts of the United States. They are spaced so that someone traveling across the coasts will reach another station just before their car runs out of power. This provides a real problem for owners of these cars who don't receive the full benefits of owning a Tesla, and must charge at home. However, the company has stated that they have full intent to exponentially increase this number within the next few years. They hope to achieve a 98% coverage of the US and Canada by the year 2015.

        The volatility of Tesla makes it an extremely dangerous and unpredictable stock. Though the company itself has great growth potential, its stock might be overvalued by billions given its current market cap.

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

Groupon, Microsoft, Tesla, and Tech Sector as a Whole Rise, Ending Three-Day Decline

    US markets ended their three-day decline caused by Fed pessimism today, with a day of gains led by the technology sector. The NASDAQ composite (^IXIC) jumped by $15.12, or 0.47%, while the Dow Jones Industrial Average (^DJI) rose by a modest $27.03, or 14%. These gains were caused by impressive performances from large technology stocks, which were heavily traded and had stratospheric increases in price.


     Deal-of-the-day website Groupon (NASDAQ: GRPN) surged by $1.89, or 21.67%. This was due to strong Q2 earnings, as well as a $300 million share buyback plan. However, the company's Q3 forecast isn't as optimistic - with a predicted EPS of negative one to one cent versus general consensus of five cents. For today, however, anticipation for GRPN's share buyback has caused the stock to be the fifth largest gainer on the NASDAQ market by percentage. In addition, it was also the most traded stock on US markets.

 
    Venerable tech giant Microsoft (NASDAQ: MSFT) rose by $0.83, or 2.58%. Yesterday, the stock received an order for 30,000 Surface tablets from Meiji Yasuda Life Insurance. Today, firm Evercore upgraded MSFT's rating from "equal weight" to "overweight", which means that the firm believes the company is undervalued. Better yet, its price target was raised from $35 to $38. MSFT, which recently dropped from $35 due to a devastating $900 million (reduction of book value due to market sentiment that the asset in question is overvalued,) is starting to show signs of recovery. The Surface is one of Microsoft's more successful forays into the mobile market, and shows that Microsoft is far from dead in this sector; instead, it is a major contender in the battle to dominate this massive, multi-trillion dollar industry.

 
    Electric-car manufacturer Tesla (NASDAQ: TSLA) jumped by $19.35 (14.34%). The company released Q2 earnings that showed a massive increase in revenue and a rapidly shrinking net loss. TSLA's adjusted net income was actually positive, with an EPS of $0.26 versus a consensus estimate of $0.17. The company reported net revenue of $405.14 million versus $26.65 - a massive increase. As the company begins to ship cars outside of North America, revenue (and stock price) for TSLA could explode over the upcoming quarters.

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

   
 

Tesla Tops, Solar City Drops

        Tesla Motors(TLSA) released its second quarter earnings report after hours today with a surprise profit of 20 cents per share. This greatly topped analyst expectations, most of whom were expecting a loss after Tesla posted its first profit in ten years last quarter. Its revenue came in at $405 million, which greatly the Wall Street consensus of $383 million. The company also reported selling over 5,000 of its flagship cars, much higher than the expectations of 4,500. TSLA has been jumping between 10-15% after hours due to its extreme volatility. This report follows the news that Tesla has gained a 9% market share for US luxury cars, which sent the stock up an accumulated 5% this week. Before the release of its earnings however, it dropped 5% on fears of a wide loss. Tesla has also recently stated they are earning big bucks through selling carbon credits to other large corporations.

        SolarCity(SCTY) also released its 2nd quarter earnings report after hours, sending shares into a volatile frenzy. SCTY started off up 4% cents but then shot down 8%. The company reported gross profit of $15.5 million, a 41% increase from the same period last year. Though operating expenses greatly increased due to internal factors, it reported contracted payments rising to $1.4 billion. The Megawatts it has deployed has grown an impressive 144% and it expects to deploy between 70-77 MW in the next quarter. Its revenue and next quarter guidance came in line with consensus, but its stock dropped as the Solar Industry came under pressure from a series of earnings misses by other key industry players.

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

Stocks Drop on Fed Comments; Fossil (FOSL) Surges on Second Quarter Earnings

    Stocks slipped today, based on pessimistic comments from Fed officials that caused uncertainty in US markets. Dennis Lockhart, president of the Atlanta Federal Reserve Bank said in an interview that the Fed could start to decrease the size of the stimulus package as soon as September, but might wait if economic growth stalls. Later in the day, Chicago Federal Reserve Bank president Charles Evans said that the Fed might stop its bond-buying stimulus program as early as next month. Both of these statements caused US stocks to slide for the second time in a row. The Dow Jones Industrial Average (^DJI) fell by 93.31 points, or 0.60%. The S&P 500 (^GSPC) fell 9.77 points, or 0.57%. The Nasdaq Composite Index (^IXIC) dropped 27.18 points or 0.74%. Losses were widespread, with the majority of stocks in the red today.


    Not all stocks drooped today, however. Watchmaker Fossil (NASDAQ: FOSL) surged by more than 19 dollars (17.76%) after Q2 earnings beat expectations considerably. EPS (earnings per share) jumped by 25%, to $1.15. This was a massive $0.22 higher than predictions. Net sales for the company rose 11% to $709 million, showing considerable growth for this company.

>

        Disney(DIS) rose 1.5% during trading hours, making it the largest gainer on the Dow. The company reported in its second quarter earnings that profit remained relatively the same from the same quarter a year ago, even though revenue rose by 4%. Its flagship theme parks and resorts business outgrew the rest of the company at a rate of 7%. After hours, the stock shed all of its gains due to reports that one of its newest movies, The Lone Ranger, isn't performing well in theaters.

        Sony Corp(SNE) dropped 5% after turning down a proposal to spin of its entertainment division by activist investor Daniel Loeb. LightInTheBox(LITB) made gains of 6%, breaking through all of its moving averages since its IPO 2 months ago. Tesla Motors(TSLA) shed 1.75% today, prior to the release of its second quarter earnings to be released tomorrow. The stock posted gains of 5% in the last week on reports that its Model S has gained a 9% foothold in the electric car market.

Sources:
Associated Press

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

CBS & Time Warner Face Off; Facebook Closes Above IPO

    CBS Corporation (NYSE: CBS) and Time Warner Cable (NYSE: TWC) have been locked in a fee dispute since Friday, with no end in sight. This has led to CBS stations and cable networks being blacked out in any areas, including New York, Los Angeles, and Dallas. As football season comes up, both companies are feeling pressure to resolve their problems; however, as of Sunday no negotiations are taking place. Retransmission fees, which are the amount of compensation a network gets for allowing a cable company to broadcast their content, are the main issue here. CBS currently receives $1 per subscriber, and wants it raised to $2. TWC claimed that this raise is exorbitant, and that these costs would be passed on to the customer. CBS claims that the massive success of their programs entitles them to a $2 retransmission fee, which is more similar to fees for similarly sized networks (ESPN, for example, receives $5.54 per subscriber monthly). While there are signs that this problem is close to being solved, another problem is at stake. TWC wants CBS to broadcast their collection of older shows - shows which are currently sold to instant streaming companies such as Netflix and Hulu. CBS claims that TWC is trying to get something for free. Until CBS and TWC resolve these issues, the blackout continues. Both stocks are down slightly, with TWC down $0.68 (0.58%), and CBS dropping by $0.67 (1.23%).

    For the second time in history, Facebook (NASDAQ:FB) closed above its IPO price. Following a disastrous opening, Facebook sunk by more than fifty percent - briefly sinking below $18. However, after crushing Q2 estimates and revealing explosive growth in mobile monetization the company has surged in price, and closed at $39.19. FB's new advertising strategies have led to massive growth recently, and an increase in the site's dedicated userbase shows that the company has not been affected by aggressive startups. However, in the field of social networking it is hard to keep up a winning streak forever, as was the case with Myspace. 

Sources:

http://finance.yahoo.com 

http://www.nytimes.com

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

Stock: NOK

        In the past, Nokia was a powerhouse in the global market but similar to BlackBerry, it failed to cash-in on the smartphone revolution. Starting out as a paper company, Nokia rose to become one of the Europe's largest industrial movements in the late 1900's. Now with a dwindling market share but plenty of cash, this company is poised to start growing again.

        Nokia's current business method is just to roll out phone after phone. It has entered a partnership with Microsoft that allows it to be one of the sole users of the Windows Operating System, along with HTC. Though this caused many investors to worry about the dependency of the company, it has allowed for slow and steady growth as Nokia strides away from its original Symbian OS. With a market share of about 5%, it has outpaced many other devices companies through its stable growth rate and expanding line of phones.

        One significant problem with Nokia is that its revenue has been gradually decreasing over the years. With increased competition in the smartphone market, Nokia has released many lower tiered smartphones at prices cheaper than competitors in order to gain a higher market share. Some of these phones are priced so that the company barely earns anything, greatly decreasing its profit margin. This has resulted in losses from selling certain phones, with the margin often falling into negative territory. If Nokia is able to gain a higher market share, it will be able to sell higher priced phones to a larger base of consumers. For now, however, this causes huge concerns for investors.

        Even though it has nearly $7 billion in debt, Nokia's $12.64 billion in cash greatly outweighs that number. This balances out to $5.64 billion in cash, which is over 1/3 of the entire company's market cap. If revenue and profit were to continue falling, the company's cash would keep if afloat for a few quarters. However, it wouldn't last as long compared to most other companies as Nokia has over 87,000 employees.

        Nokia's stock has extreme fluctuations, as is expected of a penny stock, but is actually one of the more stable technology stocks. It has posted gains of 67% this year, and has doubled its value since bottoming out at around $1.80 in August of 2012. Though it is much higher than it was a year ago, it is also significantly cheaper than the $60 peak it reached during the tech boom of 20000. Last quarter, Nokia released earnings that were significantly below analyst estimates. This is a huge reason to doubt the stock as its revenue dropped a staggering 25%. However, Nokia paired those losses and ended the day in positive territory, demonstrating its ability to regain losses.

        The sale of its Lumia line of phones has been gaining, rising 32% in the second quarter of 2013 alone. It has been continuously releasing more devices that are aiming for all tiers of the smartphone market. The Lumia 1020, for example, boasts a 41 megapixel camera that easily beats the 8mp camera of the iPhone. In fact, it rivals most professional cameras at a much cheaper price. The Nokia Lumia 900 now sells at $200 without the signing of a contract, making it one of the cheapest high-end smartphones. The Lumia family includes a large variety of phones, and has prompted many businesses to switch over from Blackberry. Nokia has long been famous for the durability of its phones, and like them, the company has been built to last.

        Nokia has plenty of room for growth, but its falling revenue and profit margin should cause concerns for investors. Its stock has remained relatively stable in the past few months, but holds extremely high risks.

Sources:
Yahoo! Finance
FINVIZ.com

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

SanDisk, Activision, LinkedIn and Yelp Top on Mobile Growth

        SanDisk(SNDK) rose 6% during market hours on news that the company is paying a dividend of $0.225 per share. In addition, the company plans on buying back $2.5 billion worth of shares, which represents more than a tenth of the company's market cap. With approximately $2.59 billion in cash, this move wouldn't require the company to take on much debt if its future growth rate continues at its current pace.

        LinkedIn(LNKD) reported its 2nd quarter earnings after the market closed, sending shares up nearly 8%. The company announced it gained 20 million more users in the last three months, which represents a growth rate last seen by the company over 2 years ago. Revenue for the company grew to a staggering $364 million, topping analyst expectations by $10 million.

       Activision Blizzard(ATVI) reported that its second quarter revenue came in at $608 million, easily topping the Wall Street consensus of $605 million. The company's self-projected guidance for the next few quarters came in slightly below analyst expectations. Its stock dropped 1.7% in after hours trading.

         Yelp(YELP) shares rose over 20% due to a strong earnings report an better guidance than expectations. Its sales grew 68%, while mobile searches rose by 59%. Two analysts upgraded the stock on this news, sending shares even higher. YELP is currently up 122% this year and has spiked multiple time within its steady growth rate.

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

Herbalife, eHealth, CardioNet Jump; QTWW Performs Reverse Stock Split

June 30, 2013
        Facebook(FB) briefly topped its IPO price of $38 during market hours today, before falling back to $37. The stock is up 50% this month after releasing a surprisingly good quarterly earnings report. In addition, the company plans on expanding its mobile ads division while releasing a new line of TV styled ads on its website. These ads are expected to sell at $2.5 million each, which is about the price of a Superbowl TV ad.
        Apple(AAPL) CEO Tim Cook is currently in talks with China Mobile on plans to release its flagship iPhone to their customers. China Mobile is currently the largest mobile carrier in terms of customers, and also one of the only carriers in China that doesn't already offer Apple devices. If a deal is made between these two companies, it could significantly boost revenue for both of them.
        Herbalife(HLF) jumped 10% today on reports that billionaire investor George Soros may hold a significant stake in the company. The stock has been extremely volatile these past few days after topping earnings and raising forecasts. However, it dropped sharply when Perishing Square CEO Bill Ackman questioned the reports released by the company. Earlier, Ackman recommended short selling the company and sent shares down nearly 50%. It is currently up nearly 80% since December of 2012.
        Quantum Fuel Systems Technologies Worldwide(QTWW) performed a reverse stock split of 4-1, sending shares up 325%. The company develops systems for storing and transporting natural gas, and has faced increased competition in an unstable field. With the United States scouring the Bakken for new oil and gas resources, such systems are of less need. QTWW has seen many periods of revenue decline, and has seen debt grow to over $13 million.
        CardioNet(BEAT) is up nearly 40% today after releasing an earnings report that greatly surpassed the Wall Street consensus. On a volume of 7.8 million, it is one of the largest gainers on the Nasdaq today. CardioNet engages in the development of cardiac monitoring systems and has seen continued revenue growth in the last few quarters. With over $18 million in cash, the company is well positioned to continue its rate of growth.
        eHealth(EHTH) is up nearly 30% today on news that it has reached a deal with the government under the Affordable Care Act. This deal will allow the company to enroll citizens of 36 states that are eligible for for certain insurance plans. The news sent the stock up to prices that were last seen before the market crash of 2008.

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

Stereotaxis up 250%; iPhone 5C Rumors Accelerate; Herbalife Sheds Gains

July 30, 2013
        Stereotaxis(STXS) received FDA approval for its Vdrive and V-Sono systems, sending the stock up over 250%. The Vdrive line of products have been utilized in Europe since 2011, aiding greatly in the performance of heart surgeries and the field of cardiology. Sterotaxis Board Chairman Mills has stated, "More than 68,000 ICE catheters are used in U.S. EP labs each year." This number is growing at a rate of 15%, which represents great growth potential for this company that specializes in their production. On a volume of 14 million shares, it is the largest gainer on the Nasdaq today.
        Apple(AAPL) gained 1.5% during market hours on hopes of the release of its new iPhone 5C. The tech giant previously relied on growth through a rapid release of products, but has fallen short over the last few months. Earlier today, Amazon began taking preorders for iPhone 5C cases. This further confirms rumors of the lower tiered iPhone. If the rumors are true, this new device would be cheaper than the current iPhone 5 and would access a larger variety of customers. It would help Apple expand its presence in developing countries and provide more room for growth.
        Herbalife(HLF) gained 10% during early trading hours, but shed that amount and fell into negative territory by the end of the market session. The $6 billion maker of nutritional supplements topped earnings expectations for the 18th time in a row yesterday, causing the stock to skyrocket during after market hours. It started off the day by adding to those gains, but sank on questions posed by billionaire investor Bill Ackman. Ackman questioned the values disclosed in its report and the lacking presence of its new auditor. HLF has been the subject of extreme volatility in recent quarters as Ackman and rival investor Ichan debate over its future.
        Facebook(FB) rose 6.5% as it neared its IPO price of $38. The online social media giant announced that it plans on partnering with game developers to promote online and mobile gaming through the development of new titles. In addition, the company plans on releasing TV style adds on its site which will each sell for a whopping $2.5 million. This would allow it to better cash-in on its hundreds-of-millions of active users, and greatly increase its revenue.

Sources:
Yahoo! Finance
Associated Press

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

Herbalife Tops Earnings For The 18th Time In A Row

July 29, 2013
        Herbalife topped earnings for the 18th time in a row after it released its quarterly earnings report on market close. With $1.22 billion in revenue, it topped the higher end Wall Street consensus by $40 million. This sent shares up nearly 6%, following 3.6% gain achieved during market hours. Following this report, Herbalife raised its guidance for the rest of the year. Though its third quarter projections lie slightly below analyst expectations, the company expects growth of 16.5-18.5%. This raises its revenue expectations for 2013 much higher than analyst expectations.

         Herbalife(HLF), a company specializing in nutritional goods, has been on a winning streak lately. After a long downward streak, the company's stock has made a fantastic return. From December of 2012, the stock has risen over 100% on countless earnings beats and the influence of large hedge fund investors.
        Over the past few quarters, Herbalife has been extremely volatile due to the back-and-forths of billionaire investors Carl Ichan and Bill Ackman. Ichan argued that HLF was a long term hold while Ackman suggested shorting the stock. Their influence sent HLF spiking up and down 10% again and again. In December, Ackman recommended short selling $1 billion worth of shares, which sent the stock plummeting 30%! Ichan then announced 16.5% stake in the company which helped it double its value since bottoming out.
        The company has relatively high amounts of both cash and debt. When combined, its debt outweighs by about $250 million. If HLF continues to top earnings, this value shouldn't cause any worry. The company's current P/E Ratio is lower than most of the industry, and its projected value shows room for growth. Though its revenue is shadowed by some of the larger companies, it has posted better growth than many other companies. Herbalife may be able to provide returns to billionaires like Ichan and Ackman, but its extreme volatility makes it a dangerous investment for those who cannot hold long term.

Sources:
CNBC

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

Apple Supplier Accused of Labor Violations; EU To Approve Merger; Caterpillar Authorizes Share Buyback

July 29, 2013
        The European Union is set to approve a deal allowing US Airways(LCC) and American Airlines(AAMRQ) it merge into the world's largest airlines company. The $11 billion merger was delayed for many months over concerns of a lack of competition if the deal were to be completed. In order to gain approval, the airlines gave up many slots at airports in both Europe and the US. The issue will soon come to a resolution as the EU plans to vote on the issue on Aug. 6. American Airlines filed for a Chapter 11 Bankruptcy Protection in 2011 and is currently listed on the OTC Stock Market, while US Airways trades on the NYSE. Both stocks remained relatively unchanged after the release of this news.
        Caterpillar(CAT) authorized a share buyback worth approximately $1 billion today. Its stock shot up over 1% upon the release of the statement. The company will immediately repurchase 11 million shares from French bank Societe Generale. The price of the entire buyback will vary depending on stock performance within the next three month and may cost less than expected as CAT is currently on a 6 month losing streak. Before the financial crash of 2008, the company board approved buying back over $7 billion worth of the company's stock and is currently about 2/3 of the way there.
        Hudson's Bay Co. will buy Saks Inc.(SKS) in a $2.4 billion deal that will allow the Canadian company to expand the New York based luxury retailer into Canada. Saks has been struggling for the past few years as people are spending money more conservatively, causing many earnings drops for the company in the past few quarters. Its debt has risen to over $300 million and it only holds about $5 million in cash. Despite all of this, the stock has gained nearly 50% this year, and shot up 4% today.
        Apple's(AAPL) Taiwanese supplier, Pegatron, was accused of violating Chinese law by overworking and underpaying its employees. China Labor Watch reported there were many under-aged employees who had to work for over 10 hours a day at the company's factory. Apple stated it would investigate the allegations, while Pegatron denied them. The company is set to produce Apple's low cost iPhone that is rumored to be released later this year. Apple is continuously shifting its production line away from Samsung as a series of lawsuits have interfered with the relationship of the two tech giants. Despite the news, AAPL rose 1.5% during market hours.

Sources:
Reuters
Associated Press

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.