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1. Heavy Volume Slams TransoceanBy Gary Morrow
3:39 p.m. EST Transocean ( RIG) is one of the weakest NYSE stocks today, currently off over 5% on heavy volume following the company's earnings miss. The heavy selling began premarket and has remained very heavy throughout the day. The stock's 200-day moving average, which has supplied support since the March breakout, was easily taken out in the early going. The loss of this support has attracted even more selling, lifting today's volume to its heaviest level since fourth quarter 2008.
2. Toyota StrengthBy Tim Melvin
3:27 p.m. EST I continue to be amazed by the strength of Toyota's ( TM) stock. If this mess had been caused by an American car company, we would have seen the stock at new lows in rather quick order. The executives are being crucified up on the hill today, and the stock is actually up 2 points on the day, despite the lost money last year and trading at 26 times what is a rather iffy earnings forecast for 2010. It is a shame General Motors can't build a decent enough car to take advantage of this, but Ford ( F) executives have to be downright giddy. This is a prime opportunity to regain market share in leaps and bounds. Position: None
3. EarningsBy Timothy Collins
3:26 p.m. EST Keeping it small as Monday was terrible, and yesterday's plays were saved by an after-hours buy. Bearish on NetEase ( NTES), via a March 38-34 put spread at $1.25. Bullish on Faro Technologies ( FARO), with some March 20 calls at $1.30. Bearish, though hesitantly so, on True Religion ( TRLG) with a diagonal put spread, long April 20 puts, short Mar 17.5 puts for $1.05. This is a stock I will look to buy on a decent dip due to the short float and cash position; however, the Street's expectations are still higher than the guidance the company gave on Dec 1. Bullish Salesforce.com ( CRM), but with some downside protection. Long March 70-75 call spreads at $1.79, and also long some ratio-put spreads in a smaller amount, which is long 2x Mar 65 puts, short 3x Mar 60 puts for $1.50. Position: Long CRM, FARO; short NTES, TRLG
4. Tootsie Roll Goes Stealth?By Jonathan Heller
11:35 a.m. EST Somehow the company released fourth-quarter earnings on Feb. 11, with no media coverage. I understand this is Tootsie Roll ( TR), not Hershey ( HSY), but this is still a $1.5 billion market-cap company and member of the S&P 400. I stumbled onto the 8-K. Sales fell 4.4%, net income rose 41% to $7.6 million. For the full year, revenue was up 0.7% to $495.6 million, earnings rose 38% to $53.5 million. Net margin rose to 10.9%, up from 7.8%, but still a long way from the mid-teens we saw from 2002-2005. Mel Gordon, age 90, is still chairman, Ellen Gordon, age 78, is still COO. The Gordons are still in control; I gave up on this company a couple of years ago. Position: None
5. Taking Profits in FordBy Don Dion
10:59 a.m. EST I'm ringing the cash register on a portion of my Ford ( F) position. The ongoing Toyota ( TM) problems, weak consumer confidence and terrible weather across much of the country may not lead to great car sales this quarter. I still remain positive medium term on Ford, Johnson Controls ( JCI) and the Fidelity Automotive Fund ( FSAVX), which I have discussed several times this year. Position: Long F