Today’s tickers: SLV, EWT, CL, BG, ILMN, COH, TMO, SPG, BG, ADSK & SLM

SLV - iShares Silver Trust ETF – A bull call spread in the January 2011 contract on the silver ETF today suggests shares of the SLV may rally significantly over the next year and two months time. Shares of the SLV are currently up 0.5% to $18.23. The silver-bull purchased a ratio call spread by buying 3,000 calls at the January 23 strike for an average premium of 1.93 apiece, and selling 6,000 calls at the higher January 30 strike for about 90 cents each. The net cost of the transaction is reduced to just 13 cents per contract. Shares of the fund must rally at least 27% before the investor breaks even at a price of $23.13. The trader stands ready to accumulate maximum potential profits of 6.87 per contract if the stock surges up to $30.00 by January 2011.

EWT - iShares MSCI Taiwan Index ETF – A massive bearish play on the Taiwan Index exchange-traded fund caught our attention this afternoon with shares of the EWT down 0.5% to $12.64 in late-day trading. It appears one investor established a bearish risk reversal in the December contract to position for potential share price declines through expiration. The trader sold 31,000 calls at the December 13 strike for 20 cents premium apiece, spread against the purchase of 31,000 puts at the lower December 12 strike for 20 cents each. The sale of the calls exactly offset the cost of buying the puts. Essentially the reversal is a “free” bet that shares of the EWT will trend lower ahead of the 2010. The investor responsible for the transaction is likely long shares of the underlying fund and seeking protection to the downside. If shares fall beneath $12.00, the value of the underlying position is protected. However, if shares of the fund rally by expiration, the trader risks having shares of the stock called from him at $13.00 apiece.

CL - Colgate-Palmolive Co. – Speculation that Reckitt Benckiser Group may acquire Colgate-Palmolive spurred an all-out call option feeding frenzy on CL today and lifted shares of the U.S. company to a new 52-week high of $86.33. Investors flooded the November and December contracts, scooping up call options to position for further upward movement in the price of the underlying. The sudden surge in demand for Colgate-Palmolive options in the midst of takeover chatter boosted…

Today’s tickers: BG, ILMN, COH, TMO, SPG, BG, ADSK & SLM[More...]

Traders watch earnings releases closely, as changes in a company’s performance can be a good indication whether a company is on the right track, or headed the wrong way.   MTS Systems Corp. (MTSC) is scheduled to release its earnings results Thursday. The company currently has an earnings per share ratio (EPS trailing twelve months) of 2.04 and investors are hoping to see that number grow. Let’s take a look at the performance of the stock since its previous earnings release.   {loadposition link_newslink1}     {loadposition livevideopromo}       {loadposition homeaccordion2}   {loadposition contentad}       In the past three months, the stock has posted a 15.98% gain in terms of stock price. Over the same period, the Scientific & Technical Instruments industry group has returned a combined 8.50% gain.   So the eyes of investors turn to this new round of earnings.   Now, good earnings don’t always lead to higher stock prices, but keeping up on earnings is still a vital part of your fundamental stock analysis. Also note that companies often change earnings dates, so you should double-check them often.   When looking at earnings, it’s very helpful to see how stocks compare to others in its industry group. And even though two stocks may not be direct competitors, many analysts and institutional investors still compare them and evaluate them relative to other stocks in their group.     MTSC is in the Scientific & Technical Instruments industry group where it competes for investor dollars with companies like Argon ST, Inc. (STST), which is set to release its earnings on 12/03 and last reported a 26.75% gain in quarter-over-quarter EPS.   Another industry peer, Analogic Corporation (ALOG) is set to release its earnings on 12/09 and last reported a -109.18% decline in QOQ EPS.   Thermo Fisher Scientific, Inc. (TMO) is the stock with the biggest market cap in the Scientific & Technical Instruments industry at $18.84B. It closed yesterday at $46.14   To better understand how to evaluate earnings announcements and the affect they have on your portfolio, be sure to read Earnings Announcements and EPS.   {loadposition link_nowtime} {loadposition followus}

Thermo Fisher Scientific Inc. (TMO) decided to sell senior notes for refinancing certain of its outstanding indebtedness. The notes offered are $350 million aggregate principal amount of 2.15% senior notes due 2012 and $400 million aggregate principal amount of 3.25% senior notes due 2014. Issue prices are 99.855% of the principal amount of the 2012 [...]

(TMO) Thermo Fisher Scientific to Sell $350 Million in Notes

Thermo Fisher Scientific Inc. (TMO) decided to sell senior notes for refinancing certain of its outstanding indebtedness. The notes offered are $350 million aggregate principal amount of 2.15% senior notes due 2012 and $400 million aggregate principal amount of 3.25% senior notes due 2014. Issue prices are 99.855% of the principal amount of the 2012 notes and 99.904% of the principal amount of the 2014 notes, respectively.
 
The notes will pay interest on a half-yearly basis and will be offered only to qualified institutional buyers and non-U.S. persons residing outside the United States. The notes are not registered under the U.S. Securities Act, which prevents them to offer to anyone in the United States. The offer is expected to close on Nov 20, 2009.
 
Thermo Fisher will refinance its outstanding indebtedness of 2.50% senior convertible notes due 2023 and 6.75% senior subordinated notes due 2014 using proceeds from the sale of notes. The principal amount outstanding is $295.4 million for the 2.50% senior convertible notes due 2023 and $300 million for the 6.75% senior convertible notes due 2014 as of Nov 12, 2009. Thermo Fisher will initiate a tender offer to refinance these notes.
 
Thermo Fisher is a scientific instrument maker. The company was formed through the merger of Thermo Electron Corporation with Fisher Scientific International Inc. in Nov 2006. Thermo Fisher Scientific serves its customers through two principal brands: Thermo Scientific and Fisher Scientific.

 

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