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Don’t miss this! Fannie Mae (FNMA) to Get Tough on Mortgage Servicers

grenade — Thu, 02 Sep 2010 19:36:23 +0000

Mortgage giant Fannie Mae (OTC: FNMA) today announced that it will demand compensation from mortgage servicing companies that do not handle problem mortgage loans properly. Fannie also said that it may start reviewing loan files, processes and procedures used by mortgage servicing companies.

The announcement from Fannie shows that it getting impatient with the companies engaged in the collection and distribution of homeowners’ payments. Mortgage servicers are coming under heavy criticism for the way they handled record delinquencies and foreclosures.

It may be recalled that Fannie Mae was on the verge of collapse in 2008, after suffering losses related to subprime mortgages. Since then, the company has come under government control. However, the mortgage giant is still struggling to get back on its feet. The role of Fannie and Freddie Mac (OTC: FMCC) has been questioned by Ben Bernanke, the Chairman of the Federal Reserve. A few weeks ago, Bernanke said that the mortgage market could function without Fannie and Freddie.

In another development, the Federal Housing Finance Agency, Fannie Mae’s regulator, lowered its goals for both Fannie and Freddie to buy loans for some low-income properties. The regulator said that under the new requirement, at least 21% of its single-family loan purchases have to be for low-income properties. The agency earlier proposed 25% of its single-family loan purchases to be for low-income properties. The agency also lowered low-income and very low-income goals for multi-family properties.

With Fannie’s role in the mortgage market now being questions, its penny stock has taken a beating. The stock has been trading in the penny region since 2008, after the company came under government control. On July 8, 2010, the penny stock was delisted from the New York Stock Exchange (NYSE) after failing to comply with the exchange’s minimum requirement. Since then, the penny stock traded over-the-counter.

The penny stock of Fannie Mae has a 52-week range of $0.19-$1.86. The stock is currently trading below its 50-day and 200-day moving averages. The stock has a support level at $0.31 and a resistance level at $0.33. In the last one month, the penny stock gained 2.61%.

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Penny Stock Spotlight; Freddie Mac’s Take on Mortgage Rates

stockslanga — Thu, 02 Sep 2010 19:27:43 +0000

Freddie Mac (OTCBB: FMCC) today said that U.S. mortgage rates dropped to a record low in the past week. The drop in mortgage rates came after a fall in yields on government debt. The drop in mortgage rates is a good sign for the housing market, which is struggling to recover from the collapse in 2007.

According to a survey released by Freddie Mac today, interest rates on U.S. 30-year fixed rate mortgages averaged 4.32% for the week ended September 2. This is lower than last week’s rate of 4.36% and year-ago rate of 5.08%. Also, 15-year mortgage rates were down from 3.86% to 3.83%.

The drop in the mortgage rates is good news for the housing market, which saw a drop in home sales in recent months.

The collapse in the housing market in 2007 led to the huge losses at Freddie Mac. Freddie Mac was set up to facilitate lending in the mortgage markets so that more and more people could buy their own homes. The company bought mortgages from originators, repackaged them as fixed income securities and sold it to investors, enabling originators to free up capital on their balance sheet and lend more. The system worked fine until problems began to surface in the subprime mortgage market. Finally when the housing bubble burst in 2007, Freddie found difficult to survive on its own.

In 2008, Freddie Mac and Fannie Mae (OTC: FNMA) were taken under government control. Freddie struggled ever since and is still under the government control. The future of Freddie is largely in the hands of the government, which has to decide whether the mortgage market still requires the services of Freddie and Fannie.

The penny stock of Freddie Mac now trades over-the-counter, after being asked to delist from the New York Stock Exchange (NYSE). The Freddie Mac stock was delisted on July 8, 2010.

The penny stock of Freddie Mac has a 52-week range of $0.24-$2.15. The stock is currently trading below its 50-day and 200-day moving averages. The stock has a support level at $0.32 and a resistance level at $0.34.

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One to Watch: Chinese Hot Stock Launches E-Book Service

merkadirk — Thu, 02 Sep 2010 18:53:01 +0000

Baidu Inc. (ADR) (NASDAQ: BIDU) recently announced that it will now concentrate on its core search business. The company said that a major part of its future mobile Internet investment will be spent on the search segment. Baidu also said that its priorities include ecommerce and mobile Internet. The company is also looking to make a foray into business to consumer space. In 2009, the company increased its investment focus on mobile Internet. The company introduced mobile maps and Baidu text input method.

Baidu also started its new service for e-books, adding about 500 applications to its Web site. This initiative is the part of the company’s strategy to diversify beyond Internet search. The new initiative will allow the users to store and read electronic books on the Web site. Baidu now offers new gaming applications, including the ones from PopCap Games Inc., making Baidu one of the prominent Web sites in China, catering to more than 75% of China’s online searches.

Baidu is also planning to develop its “box computing” service. This service will link the provision of content including video game, entertainment and books. The company declined to share the new services’ contribution towards the company revenue. Baidu is also said to be in talks with several companies for the merger and acquisition purpose. Most of these companies are Chinese. The company also launched a new platform which will help developers in distributing their application. This distribution will be carried out via a browser.

Baidu’s ADRs have a 52-week price range of $81.62-$83.40. The ADRs are trading at P/E of 87.76 and its EV/Revenue is 32.67. Baidu’s market cap is $28.82 billion. The ADRs have a 50-day moving average of $80.26 and a 200-day moving average of $68.80. The company’s operating margin is 43.25% and its Price/Book ratio is 31.66. Baidu is earning 45.27% return on its equity and its operating margin is 43.25%. The company’s Book value per share is $2.59 and its current ratio is 3.78.

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Mortgage Rates hit Record Lows for 11th Straight Week – Investors flee to Treasury Bonds

BeaconEquity.com — Thu, 02 Sep 2010 16:10:52 +0000

It should come as no big surprise that mortgage rates in the U.S. have dropped to another record low, representing the 11th straight week of matching its previous lows or setting a new one. One major benefit is that it reduces the borrowing costs for most homebuyers as the demand for mortgages and purchasing of homes continues to decline.

The current average rate for a 30-year fixed mortgage is 4.32%, down 4 basis points from last week’s rate of 4.36%, according to a statement released by Freddie Mac (OTCBB: FMCC) who tracks this data. This has once again topped the lists as the lowest mortgage rate since Freddie Mac began tracking rate data in 1971. In addition the less used but equally inexpensive rate for a 15-year mortgage was 3.83% from 3.86% also a new record.

Although these rates are at all-time lows, they have not boosted home sales nor increased the amount of new homes being built or new home permits being applied for. The housing industry, which is seeing its what could be its unprecedented worst consecutive years ever, has been ganged up on by increases in unemployment and the end of the federal homebuyer tax credit, which offered an $8,000 tax incentive for purchasing a home. Sales of new and previously owned homes fell to record low levels in July, as noted in several of the most recent reports by the National Association of Realtors. Also helping the slide is the investment community’s uncertainty about the economy and the subsequent move to the safety of Treasuries.

The number of contracts to purchase previously owned houses rose in July unexpectedly, showing a possible sign that the housing market may be on its way to a more stable future. However, contracts to buy homes are not a final sale and in this market often fall though due to the amount of short sales and foreclosures that either don’t meet buyers expectations, or from banks taking to long to move on the offers.

Applications for mortgages have increased by 2.8% in July and August as people who already own homes look to refinance and lower their payments. The decline in rates has spurred a surge of refinancing as Americans seek to reduce payments.

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Power Plays – the 8 Hottest Stocks Dominating the Tech Sector

investor16 — Thu, 02 Sep 2010 15:56:17 +0000

Google Inc. (NASDAQ: GOOG) and AOL Inc. (NYSE: AOL) today announced the renewal of their partnership for another five years. The partnership is one of the longest running in Internet history.

Eric Schmidt, chairman and CEO of Google Inc., said that the company is excited to deepen its partnership with AOL Inc., which combines the company’s expertise in search and advertising with AOL’s strength in online content.

Apart from the renewal of partnership with AOL, Google is also actively acquiring small start ups this year. The company also acquired ITA Software for $700 million. The ITA acquisition is the fourth largest in Google’s history. Google, currently, has a consensus analyst recommendation of Outperform.

Another technology giant dominating the news is Apple Inc. (NASDAQ: AAPL). The Cupertino, California-based technology company currently finds itself in a very comfortable position with almost $46 billion in cash on its balance sheet.

In a research report released today, Needham & Company reiterated its Buy rating on Apple, with a price target of $375. According to Needham, Apple renewed its lineup of iPods as expected.

Needham & Company is also recommending a Buy rating for VMware Inc. (NYSE: VMW), the Palo Alto, California-based technology company. Needham raised its price target for VMware Inc. from $83 to $90. Needham said in its report that the price target for VMware has been raised after encouraging partner discussions at VMworld.

Meanwhile Caris & Co. said that VMware is doing an excellent job in bringing together its external and internal investments to build on its momentum in the server visualization market. Caris said that it sees some clear improvements in VMware’s View 4.5; however, it continues to believe that Citrix Systems Inc. (NASDAQ: CTXS) is sitting comfortable in the top position in the desktop market. Caris & Co. has a Buy rating on Citrix Systems Inc.

Finally, the takeover battle for 3PAR Inc. (NYSE: PAR) seems to coming to an end, with Hewlett-Packard Company (NYSE: HPQ) all set to win the bidding war. HP raised its offer for 3PAR Inc. to $33 per share, topping Dell’s (NASDAQ: DELL) latest offer of $32 per share. In a statement today, 3PAR Inc. said that it notified Dell of its plan to terminate their merger agreement.

The takeover battle, which started on August 16 after Dell offered 3PAR Inc. $18 per share, is coming to an end after many twists and turns.

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One Hot Penny Stock We can’t take our Eyes Off of

trader44 — Thu, 02 Sep 2010 14:30:40 +0000

Liquidmetal Technologies Inc. (PINK: LQMT) engages in research, development and commercialization of amorphous metals. The company’s patented alloys and coatings are part of high performance material used in a variety of military, consumer and industrial products.

The company’s patented technology enables the creation of new opportunities for designing metallic-based products. The company has more than 20 patents.

After surging 30% higher on volume of 1.67 million yesterday, shares spiked nearly 8% to $0.72 in today’s early trading. The company has been in news ever since it announced the signing of an agreement with Apple Inc. (NASDAQ: AAPL).

Last month, Liquidmetal Technologies said in a SEC filing that Apple acquired exclusive rights to its patented technology for using it in consumer electronics products. Since then the company has been in the news. The deal is very big for Liquidmetal, considering the company’s size. Although the financial terms of the deal have not been disclosed, Apple may have paid the company $11 million to acquire the exclusive rights to its patented technology. The company used this to repay its debts.

The deal with Apple gives the company a lot of credibility. In fact, the deal has given a lot of exposure to the company’s technology, which may attract companies from other industries. This may good for the company’s top-line. The only area of concern is the lack of financial information on the company. Since the third quarter of 2010, Liquidmetal has not reported its financial results.

However, the deal with Apple still boosted the penny stock of Liquidmetal Technologies. The news on the deal first came out on August 9, 2010. Since then, the penny stock of Liquidmetal soared 114.04%. Between August 9 and August 12, the penny stock soared a spectacular 496.49%. Since then, the stock settled down, however, it picked up momentum again in today’s trading.

The penny stock has a 52-week range of $0.08-$1.76. It is currently trading above its 10-day, 20-day and 50-day moving averages, which indicates that the stock may rally again. The penny stock has as a support level at $0.47 and a resistance level at $0.68.

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Silver Falcon Mining Inc. (SFMI) Rallies with No News

Christian Hendricksen — Thu, 02 Sep 2010 14:27:47 +0000

Out of nowhere, SILVER FALCON MINING INC (SFMI.OB) started to climb, curtailing from negative price changes to gain 6.33% on to close at $0.168 per share yesterday. Shares slipped nearly 2% in today’s early trading.

Over the last week, traded volume of SFMI has exceeded 1 million shares, which is quite an unusual value for the stock. According to the records, SILVER FALCON has not been promoted recently, though, it’s been overbought.

As the company has not released any significant news over the last month, the current price jump cannot be explained. Maybe there’s something else behind the story?

The last announcement published by SFMI dated end-July, this year, which reported the details on its shareholders’ meeting on 17 September. However, no more news on SILVER FALCON can be found.

The financial report of SILVER FALCON announces its great plans for the future and its lack of revenues. While in the meantime, the company has accumulated net losses of over $9 million along with a working capital defict of over $2 million

3 Top Conglomerates in the Green

tradegainer37 — Wed, 01 Sep 2010 20:42:17 +0000

General Electric Company’s (NYSE: GE) financial arm, GE Capital today announced that it is extending Golfsmith’s (NASDAQ: GOLF) $90 million asset-based revolving credit facility for another four years.

GE reports its second-quarter financial results on July 16. The company posted second-quarter earnings from continuing operations of $3.3 billion. The company’s second-quarter revenue came in at $37.4 billion, down 4% from the same period in 2009.

Since reporting the second-quarter financial results, the GE stock is down 1.57%. In the same period, the Dow Jones is down 0.97%. Year-to-date, the stock is down 0.79%. In the same period, the Dow Jones fell 1.62%. The GE stock has a 52-week range of $13.03-$19.70 and is currently trading below its 50-day and 200-day moving averages.

3M Company (NYSE: MMM) announced on Tuesday that it entered into a definitive merger agreement to acquire Attenti Holdings S.A. for $230 million in cash. The company expects the acquisition to be slightly dilutive to earnings in the first 12 months following the completion of the transaction.

Commenting on the deal, Rory Yanchek, General Manager of 3M Track and Trace Solutions said that the acquisition will position the company’s track and trace business as a leader in the high growth electronic offender monitoring market.

The 3M stock has a 52-week range of $67.98-$90.52. The stock is currently trading below its 50-day and 200-day moving averages, which is a bearish signal. The stock has a support level at $80.85 and a resistance level at $80.85. Year-to-date, the 3M stock is down 2.26%, underperforming the broader market.

Siemens AG (ADR) (NYSE: SI) reported its third-quarter financial results on July 29. The company reported third-quarter revenue of €19.170 billion. The company reported that its Total Sectors profit increased 40% on a year-over-year basis to €2.331 billion. The company’s third-quarter income from continuing operations was €1.441 billion, up 18% from the same period in the previous year.

ADRs of Siemens AG have a 52-week range of $82.57-$104.14 The ADRs are currently trading below their 50-day and above their 200-day moving average. The ADRs have a support level at $89.44 and a resistance level at $91.57.

Year-to-date, the ADRs are up 3.14%, outperforming the broader market. Since reporting the third-quarter financial results, the ADRs are down 4.92%. In the same period, the Dow Jones is down 2.29% and the S&P 500 is down 2.50%.

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Top Tech Watch: MOT to Give $3.5 Billion to Motorola Mobility

smart_trader — Wed, 01 Sep 2010 20:40:01 +0000

Motorola (NYSE: MOT) recently announced that will give $3.5 billion to Motorola Mobility, the handset and set-top unit of the company. However, it is scheduled to be divested in the first quarter of the next year.

Motorola introduced the new Motorola Defy phone with 3.7 inches Gorilla Glass. The phone is in IP67 compliance, which means that it is good in up to a meter of water for up to half an hour. It also features an 800MHz processor, Android 2.1, Swype keyboard and a 5-megapixel camera with flash.

Motorola said that its Android 2.2 upgrade would not available for the users who uploaded the leaked version of the OS on their phone. The company, however, stated that they may use the new OS if they uninstall the leaked version of the OS. The new OS sports many features such as a corporate directory, a global lookup capability, the ability to permanently delete text messages, an integrated calendar and security protocols for remotely establishing the device’s password for documents stored in memory. The new OS has also fixed some Exchange 2003 email problems, although Motorola already issued a temporary fix for these problems.

The Motorola stock has 52-week price range of $6.04-$9.45. The stock is trading at P/E of 47.29 and its EV/Revenue is 0.59. Motorola’s market cap is $18.04 billion. It has a 50-day moving average of $7.69 and a 200-day moving average of $7.19. The company’s operating margin is 5.23% and its Price/Book ratio is 1.74. Motorola is earning 3.92% return on its equity and its profit margin is 1.78%. The company’s Book value per share is $4.33 and its current ratio is 2.03.

The Motorola stock has a support level at $7.47 and a resistance level at $7.71. Analysts, currently, have a consensus recommendation of Outperform on Motorola Inc. The stock has 10 Buy, 4 Outperform, 15 Hold and 1 Underperform rating, at the moment.

Motorola Inc. is a Schaumberg, Illinois-based provider of technologies, products and services for mobile phones.

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Top Tech Stocks – Netflix in Cahoots with Apple

penny_saver — Wed, 01 Sep 2010 20:28:35 +0000

Netflix Inc. (NASDAQ: NFLX) has launched its new iPhone app that works over Wi-Fi and 3-G connections. The app has also been made available for iPod Touch. Netflix is facing increased competition from various other streaming video services such as HBO and Hulu. Hulu recently launched its own paid streaming service.

Netflix recently announced that it reached a deal that would delay the availability of new releases from Universal and Twentieth Century Fox for at least a month after the official DVD release date. In lieu, Universal and Fox agreed to provide more movies and TV shows to Netflix.

Netflix also recently entered into collaboration with Apple Inc. (NASDAQ: AAPL), in which Apple plans to include Netflix into its Apple TV service. The service will be offered through a new Apple set-top box and users would pay a subscription fee to Netflix for the service. Apple refused to confirm the rumor. Netflix is also providing a free downloadable application to users of Apple’s Macintosh and iPad computers.

Research Firm Piper Jaffray stated that the company stands to benefit from its collaboration with Apple. The firm said that an Apple TV launch with Netflix suggests that Apple is not looking to launch a movie subscription service

Netflix is a mail DVD company. The company also streams the movies via various mediums. It offers various subscription plans with no due dates, shipping fee or late fee. Netflix subscribers can watch unlimited movies and television episodes streamed to their televisions and computers. They also can receive DVDs delivered to their homes. Netflix serves approximately 12 million subscribers. The company was founded in 1997 and is headquartered in California.

The Netflix stock has traded in the range of $39.27-$140.90 in last 52 weeks. The stock has a support level at $122.57 and a resistance level at $127.71. Year-to-date, the stock is up an impressive 140.37%.

Netflix Inc.’s market cap is $6.89 billion and its stock is trading at the P/E ratio of 53.35. The company beta is 0.50 and its EPS stands at $2.47.

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