Netflix Continues to Move Higher

The king of home DVD delivery and streaming video to almost every entertainment device available has rallied in recent weeks reaching a 52 week high just yesterday. Running from $49.13 a share to $66.65 a share yesterday, earnings and the stock’s price to earnings both look decent at this time.

The recent news that Warner Brother’s movies will not be available through Netflix or kiosk chain Redbox for 28 days after a DVD’s release has not affected the stock price in recent weeks. The two distributors will wait on making new releases available to improve the studio’s profits on sold movie DVDs. They also agreed to destroy the DVDs after they are no longer widely rented instead of selling them to the public.

Netflix beat earnings expectations for the fourth quarter by 25% roughly and has nice revenue and earnings growth. Revenue growth is near 25% for the coming quarters with earnings growth at 46% this quarter and at 26% next quarter. Analyst increased their expectations within the past 30 days for the quarter earnings from 45 cents a share to 54 cents a share, thus sparking the recent increase in share price.

The price to earnings (P/E) is at 33 with the stock price near $65 at the close today. This is slightly lower than the 46% earnings increase but higher than next quarters 25% expected increase. If analyst nudge their expectations higher again, the stock should move accordingly. Look for this increase as a chance to buy or look for a slight sell off for your chance to trade the stock long.

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© 2010 FastSwings.com

comScore Moves Higher on Acquisition

comScore, an Internet research company, released fourth quarter earnings after the close and beat the street by 4 cents. The stock moved higher today some 14% on the earnings and news that the acquisition of ARSGroup will close in March.

Fourth Quarter Results

comScore earned 21 cents per share in the last quarter of 2009, 18% better than the same quarter a year earlier. Revenue also improved by 7 percent from a year ago period. Forecasts are slightly better than previously with the company somewhat upbeat on corporate spending.

comScore Trade

The stock is trading lower than its growth rate (P/E) and has come down quite a bit prior to today’s rally. Several services are showing quarterly growth rates in the range of 60% – 100%. With the revenue growth rate more in-line with what the company announced last night. The overall picture seems lukewarm for the company and the economy making the optimism today overdone. I think you could make a short-term short position trade when the stock corrects back to near $14 a share.

© 2010 FastSwings.com

A Guide to Day Trading

For decades people have been fascinated with the stock marketw and intrigued by the practice of trading. In years past, taking part in the stock market was a treat for professionals only. When individuals wanted to capitalize on their small fortunes through investing, they would hire a professional who would get a cut of their profits. While this is still a common way to go about trading, technology has advanced enough to make trading accessible to anyone who wants to earn more money.

Day trading is not the same as traditional trading. While both can now easily be done online, in order to learn how to be a day trader, you’ve got to invest some time and energy into really understanding the market. Day trading involves buying and selling securities within the same day. That sounds pretty simple, right? Essentially, knowing how to be a day trader is similar to knowing how to buy and sell stock. The idea is to try to buy low and sell high. In day trading, this is just done in a very compressed amount of time.

When you look at profits of individual day trades, you might wonder why anyone would want to engage in such a task. The reason it is worth it is because of the amount of the combined trades each day is significant. Typically, day traders make around 25 trades each day. Here’s what you need to remember: day trading is a task that requires constant attention throughout the day. Day traders rarely hold stock overnight, due to the instant changes a stock can go through. Throughout the day, day traders must be tuned into the latest stock news. They must know how to read stock charts and how to respond to changes immediately. Mere seconds can severely impact one’s profits for that day.

Clearly day trading is risky. Does that mean it’s not worth it? Not at all. Day trading, when you really have learned how to be a day trader, can pay huge rewards. If you don’t feel quite confident enough to jump into day trading right away, that’s ok. There are other options that can fall between traditional long-term trading and day trading.

To make money in the stock market, you don’t have to go to one extreme or the other. A good idea is to learn the ropes to the best of your abilities. Learn how to read stock charts; learn the language of trading. This is something that can be accomplished through an online course in the comfort of your own home. To make money without waiting years, you can look into Position trading, which is holding a stake in a stock or commodity for several weeks or even months. Another way to make your money grow is with Swing trading. Swing trading is holding a stake in a stock or commodity only for several days.

Investing is an important aspect of your financial picture. There are several options available; which means that everyone can find a form of trading that works for their individual needs.

© 2010 FastSwings.com

Stock Charts and Your Finances

In order to capitalize on the stock market, it pays to learn how to read stock charts. A stock chart is a graph that represents the value of a given stock or group of stocks (called an index). Stock charts graph values over a specified time interval. The daily stock report shows values of stocks for the current day of trading. The reason why it pays to learn how to read stock charts is because they can quickly show you stock values and also show how wide the range was during the day (if using a daily stock report). In essence, you gain information about the possible profits and losses when read stock charts.

If you read the daily stock report, then you may be ready to take the next step into learning how to read stock charts, watch trends, and expand your investing know-how. Stock charts are varied in size and scope, and therefore allow you to see the many different things you need to in order to make informed trading decisions. Some charts will show you the activity in a given day, while others will show market trends over the course of several years.

In years past, stock charts were read in print. Today, however, learning how to read stock charts can be done online in the comfort of your own home. Taking a course on how to read stock charts can come in handy, as many stock charts are now found online and are interactive. This works to the advantage of the trader because it allows you to track stocks over any period of time needed. Online, interactive stock charts make researching investments an overall easier practice. They also give you more information at your fingertips than you would get with just the daily stock report.

There is more that goes into stock trading than just looking at the daily stock report; even more than knowing how to read stock charts. To really be successful in doing your own trading, you’ve got to be able to look past analysis when need be. Just because a stock may fall doesn’t mean that it’s no good. Sometimes it is when the stock of a particular company falls that you can benefit the most from buying it.

While knowing how to read stock charts can give you a good start in growing investments, it isn’t the end of the road. There is a lot that goes into trading, whether you are engaging in online trading through a brokerage firm, or you have hired an investment broker to do the work for you. The investing that is done on your behalf, or by you, directly affects your future. By knowing the language of trading and learning how to read stock charts, you give yourself the best chance of having a helping hand in your own financial security.

The payoff is worth the learning you must do. Navigating your way through the investment game can lead you to that long-awaited vacation, or just safely into retirement. Whatever your dreams are for the future, learning the stock market is one piece of the puzzle to help you reach them.

© 2010 FastSwings.com

Plan for a Secure Financial Future

When talking finances, many people tune out far before they should. Perhaps you fall into this category. Perhaps you feel that securing a financial future is out of reach. This simply isn’t true. The fact of the matter is that the sooner you start thinking about your long-term financial plan, the better your chances of making sure it is as secure as you’d like it to be.

A big part of financial planning comes in the way of college for your kids. You may not even have kids at this point, but opening an IRA, either a traditional IRA or a ROTH IRA, can be a great starting point for investing in the future educational needs you are sure to face. By planning early, before your life becomes hectic with family and work obligations, you ensure that you don’t let time run away from you; leaving you without much-needed college funds. Additionally, you will have more disposable income before you have children. By getting an early start, you can balance out the savings once children do enter the picture.

Investing is a common practice that will help you grow the money you earn now. Investing doesn’t have to be a risky endeavor. In fact, you could put yourself through a reputable stock trading course to learn everything you need to about trading and reading the daily stock report. Learning the basics of investing can be done in the comfort of your own home oftentimes. A good stock trading course doesn’t have to be a college-style course; just something that gives you a greater understanding of the daily stock report and stocks in general.

Buying and trading stocks can be a practice that you engage in for a lifetime. Because there is so much you can learn in a stock trading course, you set yourself up to really make a significant impact on your finances by taking one. This will reduce the learning curve and give you confidence to get involved in online trading.

Sometimes it helps to sit down with a financial planner. However, there are some questions you can ask yourself, alone or with your partner, to gauge the best way to make sure your future needs are taken care of. Here are a few questions you can address.

• What are your short-term financial goals?
• What are your long-term financial goals?
• How much income do you make today and how much do you hope to make in five years? In 10 years?
• What are your career goals?
• How many children do you want, if any? How will children change your budget?
• Do you plan to purchase a home? If you currently own, will you need a bigger home later?
• When do you hope to retire?
• Do you own a business or hope to start one?
• How will you protect your family if something happens to you or your partner?

Planning for your future financial picture is a task that pays huge rewards when done in time. You will find that it hurts much less than you may have originally thought to start putting away for your future.

InfoSpace Surges, Who Knew?

Who knew that InfoSpace (INSP) was still around? The search company was popular in the early stages of the Internet, way back in the 1990s. But the company said today that revenue and earnings are going to far exceed the current projections for the fourth quarter. It’s stock rose close to 25% on the news.

Not anywhere near it’s 2000 peak of $1,305, the stock closed the day at $11.59. One of the dot-com darlings, the company has survived and even acquired a number of mobile properties since the bursting of the bubble, including Go2Net, Moviso, and Switchboard.

InfoSpace now expects revenue to be close to $70 million or an increase of 90% from the same quarter a year ago. The prior estimate was for only $57-60 million in revenue. New earnings forecasts are in the range of $6.3 million to $7.5 million compared to analysts estimates of $3.4 million to $4.4 million. The company lost $6.8 million last year.

If you have dotcom fever once again, InfoSpace looks attractive with a 38.63 price to earnings ratio and 90% growth.

Goldman Sachs (GS) Begins Climb to Earnings

Even with the overall markets declining slightly in light trade on New Year’s Eve, Goldman Sachs continues to climb heading into their fourth quarter earnings in mid to late January. Up close to 2% on Thursday, Goldman began to move higher on Tuesday after three months of lackluster movement. A report from Bloomberg came out the same day detailing the leading role Goldman has over others in underwriting fees for Initial Public Offerings.

Earnings Estimates

The earnings estimates have not improved too much, despite the report, as the current quarter has a recent decrease in expectations from 5.56 a share to 5.47 a share. Next quarter is a little more promising with profit estimates improving from 4.38 a share to 4.46. Year end buying by portfolio managers is more than likely the reason for the uptick. But the company’s earnings announcement shortly after the beginning of earnings season, January 11th, should provide additional support in the coming weeks.

Options Volume

The Call Options for Goldman Sachs also saw some volume on Thursday as strike prices in January of 165, 170, and 175 were popular. Later months did not see an significant volume increases.

© 2009 FastSwings.com

Jackson Hewitt Jumps on Wal-Mart and Earnings

On back to back days the two largest tax preparation services released prior quarter earnings. H&R Block Inc (HRB) reported on Tuesday disappointing investors who sent the stock tumbling from $20.48 a share to $19.90 a share on the day. Today saw the opposite reaction for Jackson Hewitt (JTX) which saw their shares bounce higher 17% on a better than expected loss. These companies are both cyclical and usually post profits during the first 2 quarters of a calendar year only.

H&R Block Inc.

The H&R Block loss was better than expected at 38 cents compared to 40 cents. But the company also announced the closing of 400 stores in 2010 and their exit from Wal-Mart stores across the country. They also forecasted single digital revenue growth during the coming year. TaxCut is a popular software product available from H&R Block that allows tax filling through self preparation. This form of tax filing is become more popular as compared to the face to face tax preparation that has been the standard for the company for years.

Jackson Hewitt

Jackson Hewitt lost 66 cents per share during the most recent quarter. But the company is excited about manning 1,800 Wal-mart stores with tax preparers this coming tax season. The company also has a new online tax preparation product that they will be releasing for the first time this January. These two revenue growth outlets have investors feeling good about the company. The 17% jump in price is a good opportunity to take profits if you have help the stock for some time. Otherwise, wait for the stock to fall back to preannouncement levels before buying.

Federal Reserve Sees Economic Improvement and Some Jobs

Late year reports from the 12 different regions of the Federal Reserve saw improvement in consumer spending and manufacturing according to a report released today. This is the best report since the recession began as 8 regions reported an increase in economic activity. Can this recovery continue after the First Home Buyer Tax Credit expires next April, more than likely it can.

Jobs Improvement

The Fed plans to keep rates were they are as inflation, even in recent reporting, has not increased. And maybe the best news of all is job improvements in the Boston area and the service sector in St. Louis. Even with the two regions of job growth, the board doesn’t expect the unemployment rate (10.2%) to move downward until the middle of 2010.

S&P 500 Proshares

I still feel the best way to play the economic recovery is purchase Ultra S&P 500 Proshares ETF (SSO). There are other ETFs that you could also add to a portfolio but I tend to the use the double return S & P 500. It has fluctuated between $37 and $38 a share for the past month but should run if it breaks above $38.

© 2009 FastSwings.com