GLW, NGH, Insurance, Energy:
Something strange happened with GLW (Corning Inc) today. The stock was trading with the market, but fell off a cliff at the very end of the
day on a huge volume spike: quote.yahoo.com On Friday, GLW completed its acquisition of Net Optix (OPTX),
which did not trade today. I am thinking there was either the unwinding of some huge arbitrage position or selling of GLW shares received by
OPTX shareholders, or perhaps both. Other members of the Fiber Optics sector did very well today, (JDSU, LU, SDLI), so it makes no sense
for the stock to have plummeted the way it did. I am expecting the stock to open up sharply on Tuesday and there could well be some good
trading opportunities.
NGH - Nabisco Holdings, owns 80% of NA, Nabisco Foods. NA is free from any tobacco stain, NGH isn't. NA is up for sale, Ichan's
position causing this. Several companies are in the bidding, including MO. Some may bid for NA, some may bid for NGH. Either way, NGH
wins. target 25-27 - soon. decent chance we could get an old fashioned bidding war and see the price move up towards 30.
Energy - oil service and NG (Natural Gas) stocks were all hitting new highs today. The group is very strong. I think this sector has legs, but may
be vulnerable to pullbacks (ie buying ops) on any decline in energy prices. check out these charts:
investertech.com.
Insurances companies led the financial sector today. MMC, ALL, AOC were among the big movers Auto insurance may be going up, which
would increas margins for many of these companies. MMC, Marsh McClennan, owns Putnam Funds, and with the move in PIOG today, made
it's holding that much more attractive.
My gut feel is that we are approaching a break-out move in the NAS. Larry |
