The RealMoney contributors are in the business of trading and investing all day on the basis of ongoing news flow. Below, we offer the top five ideas that RealMoney contributors posted today and how they played those ideas.TheStreet.com brings you the news all day, and with RealMoney's "Columnist Conversation," you can see how the pros are playing it on a real-time basis. Here are the top five ideas played today. To see all that RealMoney offers, click here for a free trial.
1. Negative Real Estate Data Hitting the WiresPaul Rubillo
4/7/2009 2:18 PM EDT Here is some interesting Equifax (EFX) data just released this morning: Seven percent of homeowners with mortgages were at least 30 days late on their loans in February, an increase of more than 50% from a year earlier. Also, 39.8% of subprime borrowers were at least 30 days behind on their home mortgage loans, up 23.7% from last year. I'm still not sold on a housing bottom at this point, and the bottom line is that real estate rarely turns on a dime. Plenty of time to get in when it bottoms.
2. Watching IBMDaniel Shaffer
4/7/2009 1:38 PM EDT Watch IBM ( IBM) carefully to determine future direction of the Dow and S&P 500. It is heavily weighted in these indices, and just as it helped lead the indices up, IBM could also lead them down. IBM, technically, looks like it is failing off its 200-day down-sloping moving average with a top volume spike last Thursday and Friday. It hasn't been at the 200-day moving average since last September on its breakdown, and this could be just the first test to touch it.
3. Stocks Cheap? Maybe NotRobert Marcin
4/7/2009 12:57 PM EDT Stocks may be a lot of things, but "bet the farm" cheap they are not. Here is one version of the current P/E ratio using Shiller's long-term, rolling 10-year average earnings as the foundation for the calculation. At 16 times this measure, they are priced close to the long-term average of 17 times. That earnings calculation includes 2008 as well as 2009 estimates.
4. 'Atta-Boy'?James Altucher
4/7/2009 12:48 PM EDT Serious call-buying in the Atwood Oceanics ( ATW) $20 and $22.50 out-of-the-money calls for 70 cents and 25 cents respectively. Even with oil now below $50, rumors are that Transocean ( RIG) may be taking a look at Atwood.
5. Broadband Investments and CiscoDavid Sterman
4/7/2009 10:10 AM EDT A number of countries including the U.S., the U.K., Canada and Germany aim to enhance their national broadband infrastructure to expand access and boost data speeds. Australia just announced plans to spend (US)$31 billion to build a government-funded national high-speed network. As these efforts unfold, so will demand for equipment and then later, new applications -- both of which play into the strength of Cisco Systems ( CSCO). As I noted in my column yesterday, Cisco appears positioned to post disappointing results in the April and July quarters, and any positive imminent catalysts are lacking. But any selloff could set the perfect "building into a position" play on what could well be current upside to 2010 and 2011 forecasts. Right now, the consensus forecasts expect sales to fall 9.6% in the current fiscal year, and another 3.3% in the fiscal year that begins in August. Cisco reports in early May, at the end of earnings season, and any broad earnings-season-related selloff could take shares down to levels that a weak quarterly report already anticipates for Cisco. For free trial to Real Money, where you can get updated trading and investment ideas throughout the course of the day, please click on the tile below.