Friday, November 21, 2014

VeriFone Systems Inc (NYSE: PAY)

VeriFone Systems, Inc. designs, markets, and services electronic payment solutions at the point of sale (POS) worldwide. It provides countertop electronic payment systems that accept card payment options, such as NFC, mobile wallets, chip and PIN, and contactless payments, as well as support credit and debit card, EBT, EMV, and other PIN-based transactions; an array of software applications and application libraries; and portable solutions that support 3G, GPRS, Bluetooth, and WiFi technologies.
Take a look at the 1-year chart of Verifone (NYSE: PAY) below with added notations:
1-year chart of Verifone (NYSE: PAY)
PAY had rallied nicely to start the year. After running up to the $38 area in June, the stock pulled back a bit into August. The stock followed that pullback with another run up to $38, and again pulled back, but this time even further. The stock has now tested the $38 level again (red), and may be looking to finally break thru that resistance. That break would also constitute a new 52-week high.

The Tale of the Tape: PAY has a 52-week resistance at $38. The possible long position for the stock would be on a breakout above $38.
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Lukoil Rises in New York as BCS Says Buy on Valuation

OAO Lukoil (LUKOY) rose to a two-week high in New York as BCS Financial Corp. advised clients to buy the Russian oil producer’s stock, saying the “huge discount” to its biggest competitors isn’t justified.
The American depositary receipts jumped 2.7 percent to $47.98 yesterday. The Moscow-listed shares, which gained 2.3 percent, sell for 3.9 times projected 12-month earnings. That compares with an average multiple of 10.5 among 15 global peers, data compiled by Bloomberg show.  (more)

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Time to Buy Gold Miners? The Charts Say…

The price of gold has undergone a painful correction since topping out in August 2011, taking gold mining stocks down with it. But the recent wash-out may have set this group up for a rally in the remainder of the fourth quarter.
The topping pattern in gold mining stocks in 2010 and 2011 was a classic one. That is, when an asset moves meaningfully higher for an extended period of time, it often takes its time forming a top. You've probably heard the saying, "Tops are a process; bottoms are an event."
During that time, sentiment became excessively bullish, with investors seemingly believing gold would continue climbing forever. But, of course, nothing ever does. It was only a matter of time before muted price action ultimately led to a big trend break that completed the topping process.
The chart below displays the Market Vectors Gold Miners ETF (NYSE: GDX) in red relative to SPDR S&P 500 ETF (NYSE: SPY) in blue. At the 2011 top for gold miners, the spread between them and the broader market was wide, which was a clue to exercise caution in the sector.  (more)

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Dennis Gartman: Oil Will Fall Sharply Lower Than Anyone Ever Imagined

HardAssetsInvestor: Is the U.S. oil boom the biggest reason oil has plunged during these last several months?
Dennis Gartman: I would say 40 percent of the reason prices have fallen is production in the U.S.; 30 percent is the dissention and the problems with OPEC; and the rest is weaker-than-expected demand globally. Rising U.S. production is not the only reason oil prices are down, but it’s probably one of the largest reasons.
HAI: U.S. oil production hit 9 million barrels per day earlier this month. How high do you think it can go?
Gartman: We’re going to be at 9.5 million barrels per day by the middle of January because there's just so much stuff still coming on stream. We’ll be 9.5 early next year and we’ll be at 10 by midyear next year. After that, you may get some slowing of the increase in production.  (more)

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ServiceNow Inc (NYSE: NOW)

ServiceNow, Inc. provides cloud-based services to automate enterprise IT operations primarily in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company offers IT service automation applications, including incident management, problem management, change management, release management, request management, configuration management, asset management, project portfolio, software development lifecycle management, IT cost management, work management, vendor performance management, and resource management, as well as IT governance, risk, and compliance; case management applications, such as HR service automation that provide capabilities to manage the service delivery of human resources departments; and options and add-ons services, such as performance analytics and discovery services, as well as orchestration core, cloud provisioning, password reset, and configuration automation applications.
Take a look at the 1-year chart of ServiceNow (NYSE: NOW) below with added notations:
1-year chart of ServiceNow (NYSE: NOW)
NOW had been trading sideways for the last 5 months, while forming a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. NOW’s rectangle pattern had a $65 resistance (blue) that the stock eventually broke through back at the end of October. The stock has already tested that $65 level as new support earlier in the month, and it looks like it may be on its way down to test it again.

The Tale of the Tape: NOW broke its rectangle resistance. The possible long positions on the stock would on a pullback to $65. A short opportunity would be on a break back below $65.
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