Once you get past the hype, there's little chance for long-term gain with this stock.
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We profit from common stock and options trading.
Written by Douglas Estadt
Today, we take a closer look at a unique and profitable scenario involving optionsXpress Holdings, Inc. (Nasdaq:OXPS), a web-based brokerage company. Investors may stand to profit from the simultaneous trading of OXPS common stock and options. Common stock shareholders will be paid a substantial dividend provided that they own the stock before December 27th. This dividend will then likely spark a sell off that will, in turn, benefit options traders as the put value increases. The plays from which we’ll profit are as follows:
- Purchasing the common stock, which is currently around 19.50, will pay a one-time dividend of 4.50 come the end of December
- January 20 put is trading at 1.20; as the stock will likely sell off following the 4.50 pay out, the put will become increasingly valuable and so we will be buying 3x as many of these as we bought common shares.
For more on OXPS, view today's show:
One report says that the iPad 2 could start shipping within months, leading to an April launch.
That could mean the iPad 2 will launch in April, the site suggests. Reporters from Digitimes wrote the story after talking to unnamed sources at Foxconn Electronics' plants in Shenzhen, China.
Neither Apple nor Foxconn would confirm the news, so this one heads to the rumor column. The article also says that Apple originally wanted to begin mass production of the iPad 2 in January but delayed that because its firmware is still in testing.
With prices that can't compete, the electronics retailer saw market share crumble in the third quarter.
But Best Buy (BBY) was an afterthought. That's because, lately, Best Buy has become too expensive. Now it's the place you go simply to check out electronics. When you want to buy, you go to Wal-Mart or Target.
This has been a very difficult year for Best Buy, and today's third-quarter report showed just how far the electronics retailer has fallen. Sales and profit were way below what Wall Street was expecting. Inventories were up, and now the stock has tanked, down 16% to $35.10.
Sometimes it just makes sense to pay up for the guacamole.
Rex Moore, Motley Fool Top Stocks editor
The fast-growing burrito chain is trading at a lofty 43 times this year's projected earnings and a still-heady 36 times next year's bottom-line target.
Chipotle is cheaper than you think, though.
This fund is headlined by stable industry leaders such as Google, Amazon and Yahoo.
By Don Dion, TheStreet
The breakneck expansion of the ETF universe has introduced investors to a diverse collection of products that track new and increasingly narrow corners of the global marketplace.
While some of these funds have struggled to gain a following before fizzling away, others have grown in prominence, earning a respectable following and establishing a sturdy foothold in the industry.
The First Trust Dow Jones Internet Index Fund (FDN) exemplifies a narrowly focused ETF that has risen to prominence.
You loved them, now leave them. Apple, Netflix and Marvell have nothing left to give you but heartache.
By Scott Moritz, TheStreet
Investors really fell for a few tech stocks this year. And while some deserved your wholehearted admiration, some others could be trouble and may well break your heart next year.
Earlier this month we put a spotlight on the top five biggest gainers in tech. Those were the stocks that shot up the highest in the sector. This time around, taking a far more cautious view of the winners, we've found three beloved stocks that face major challenges in the year ahead.
Shares of Marvell (MRVL), Apple (AAPL) and Netflix (NFLX) were all deep in the green as investors kept the momentum alive. Great run, but instead of applauding, maybe you should hustle some of those winnings into the bank.
Don't be distracted by attempts to correlate gold with global events or interest rates. The rush is as simple as supply and demand.
Two weeks ago, gold was supposed to be weak because the dollar was strong. Last week, gold was supposed to be weak because interest rates were up. But gold is going higher because of demand wholly separate from these correlations.
Yes, it's true, we have seen gold go up with low rates -- it becomes easier to buy. But we have seen it go up during periods of high rates. We know that gold might be going higher with China opting against tightening. But I also think gold demand is stripping supply in China regardless of inflation, because the government is actually encouraging gold purchases. Meanwhile, gold buying in India has been unabated all year.
Signs of trouble appear as small investors ramp up their bullish bets.
No doubt, it's been an impressive couple of months for the stock market. From its August low, the Dow Jones Industrial Average ($INDU) has gained more than 15%. The smaller, riskier stocks in the Russell 2000 have done even better, rising a whopping 24% over the same period.
Back in September, I urged readers to set aside their skepticism and buy stocks. I said that "investors are acting as if corporate America won't ever grow again" and warned that a bubble in fear was causing too many investors to rush into bonds instead of stocks. I even proclaimed that an "epic bull market" was on the horizon as companies use ultra-cheap debt financing to transfer wealth from bondholders to shareholders.
But now there is evidence that the rally is getting a little long in the tooth, that excessive confidence has replaced excessive pessimism and that stocks are headed for a meaningful correction in the weeks ahead. Here's why.
ASML Holding blows away its previous forecast for next year's orders, and the stock soars.
Banks are starting to offer more cards to customers with blemished records.
But times have changed. The mortgage crisis has created entirely new categories of credit card users. There are people who still shop and save and pay their bills -- but whose credit has been demolished by a foreclosure. There are people who should still get cards -- but traditional banking rules say they can't.
So now banking consultants are slapping new labels on borrowers in an attempt to figure out whom to offer cards to, according to The New York Times. Here they are:
The generics powerhouse wants to develop new drugs as well.
The country is on its way to becoming a global superpower. But there are risks to consider.
A fledgling economic superpower. The world's largest cattle industry. The most powerful country in South America. The largest producer of iron ore in the world. An economy growing at 7%.
"Allo! Time for Americans to wake up," one Brazilian tycoon tells Kroft. OK, so if "60 Minutes" has you fired up on Brazil, here are some ways to invest in the country:
They have performed extremely well for the past decade, but blue chips are coming back into fashion.
Looking over the past decade, you'll find small-cap stocks up about 8% each year, Paul Lim writes. By comparison, blue chips are returning about 0.8% annually.
"The stunning small-stock performance could push fearful bond investors back into stock funds, which have had net outflows of more than $40 billion since the start of 2009," Lim adds. Some analysts think this could even help the big stocks, because when Americans decide to jump back into the market, they'll buy the blue chips and not small companies they've never heard of.
Spain may be scary, but this native company isn't.
A little-known investor named Warren Buffett advises that we be greedy when others are fearful. For our pick of the day, Jordan DiPietro zeroes in on one of the most fearful regions in the world.
Rex Moore, Motley Fool Top Stocks editor
You think 10% unemployment is bad? Try 20% -- that's the unemployment number right now in Spain, one of the many Eurozone countries getting dragged down by anemic growth, massive debt, and a rigid labor market. And now that Ireland has officially accepted an EU/IMF bailout for roughly $90 billion in external support, many speculators think Spain might be the next domino to fall.
These funds track India, Canada, retail and silver.
By Don Dion, TheStreet
Here are five exchange-traded funds worth keeping an eye on this week.
The Indian markets were sent into a tailspin last week, weighed down by concerns about the nation's corruption. As a result, ETFs designed to track the nation's economy were battered. The small-cap companies underlying SCIF were hit especially hard, leading the fund to crumble to new lows.
Investor sentiment will likely be pressured heading into the near future, and this could cause products such as SCIF and WisdomTree India Earnings ETF (EPI) to be shaky.
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The social media stock surged in its first day of trading. But in the month since, shares have gained only 5 cents.
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
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[BRIEFING.COM] The final hour is upon us. Stocks are showing modest gains and the 10-yr note is now unchanged for the session. To be sure, dynamic is not a word that would be used to describe today's trading action in either the stock or bond market. Resilient is probably the better fit.
Neither the stock nor the bond market has caved to selling interest after Friday's advance.
There wasn't any economic data out of the US that affected trading today. ... More
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