Archive for May, 2006

  • SEIC Beats Earnings
    , May 2nd, 2006 at 12:45 pm

    The market is recovering today from yesterday’s late-day sell-off. SEI Investments (SEIC) is doing well today. The company reported earnings of 54 cents a share, six cents better than estimates. Revenues jumped 49%. The stock is up to a new 52-week high today.
    UnitedHealth (UNH) said it’s going to resume its share buyback plan. The company is planning on buying 10% of its outstanding shares. As I’ve said many times before, I’d prefer to get the cash instead of having the companies repurchase its stock.
    The market is up today and positive earnings news from Verizon (VZ) and Archer Daniels Midland (ADM). (By the way, ADM has been a darn good stock for the past few years.)
    This is shaping up to be a good earnings on Wall Street. The thing about earnings expectations is that most companies are expected to beat expectations. Typically, about 57% of companies beat earnings expectations. This quarter, about 70% of companies are topping forecasts. Energy stocks fell sharply last Wednesday and Thursday, but seem to have made up lost ground very quickly.
    I also have to give a shout-out to Ed over at Daily Dose of Optimism. He’s been pounding the tables on TheStreet.com (TSCM), and he’s been right. Check out this chart. The stock is through $11 a share today.

  • UnitedHealth Announces Executive Pay
    , May 1st, 2006 at 6:15 pm

    Well, this isn’t a surprise:

    Health insurer UnitedHealth Group said Monday that it reduced pay packages and perks for its most senior executive and further reduced board compensation putting into effect a number of measures started in 2002.
    The company said it halted equity-based awards for such executives as William W. McGuire, chairman and chief executive, and Stephen J. Hemsley, president and chief operating officer.
    McGuire recently defended his billion-dollar stock option compensation against critics who pointed to the rising cost of health care.
    The plan also calls for dispensing with severance for the most senior executives in change-in-control transactions, and capping supplemental retirement plan benefits.
    Also, the board will take an immediate 40 percent cut in compensation, following a 20 percent cut in 2005.

    Nothing causes action like a falling share price.

  • Late Selling
    , May 1st, 2006 at 3:48 pm

    There went a good day. It all started just after 3 pm.
    mayone.bmp
    The financials are being hit the hardest.

  • Top 10 Industry Groups
    , May 1st, 2006 at 12:31 pm

    Here are the Top 10 Dow industry groups year-to-date:
    Steel…………………………….57.63%
    Precious Metals…………….51.25%
    Coal……………………………..37.09%
    Commercial Vehicles……..31.21%
    Oil Equipment……………….27.71%
    Nonferrous Metals…………27.05%
    Gambling………………………24.81%
    Business Training………….24.63%
    Waste & Disposal………….22.76%
    General Mining……………..22.25%

  • Sysco’s Earnings
    , May 1st, 2006 at 9:55 am

    Happy May Day!
    Wall Street is celebrating International Workers Day by having a strong opening. The S&P 500 is up to 1,316. In April, the S&P 500 closed three times at 1,311 and change, and no higher. If the market holds up, this will be another new high. Once again, energy stocks are leading the way.
    Sysco (SYY), one of our Buy List stocks, reported earnings today. The company earned 30 cents a share, including a four cent expense for stock options. The market was looking for 32 cents a share. Sales came in slightly better-than-expected. The stock is higher in early trading.