Barchart Morning Call 3/4

Barchart Morning Call

BC - 2 hrs 12 mins ago

OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH13 -0.10%) are down -0.35% on sell-offs in European (-0.33%) and Asian stocks and on the weak Chinese non-manufacturing PMI reported on Saturday. In addition, political comments over the weekend seemed to confirm that there is little change of rolling back the sequester cuts that began last Friday. Most Asian stock markets are trading lower today except for a +0.40% rally in Japan. Commodity prices are little changed on average this morning. April crude oil (CLJ13 +0.09%) is down -0.18%, April gasoline (RBJ13 +0.01%) is down -0.28%, April gold (GCJ13 +0.36%) is up +0.36%, May copper (HGK13 +0.54%) is down -0.07%, and agricultural prices are mixed. The dollar index (DXY00 +0.04%) is slightly higher by +0.07%. EUR/USD (^EURUSD) is down -0.16% and USD/JPY (^USDJPY) is down -0.09%. June 10-year T-notes (ZNM13 +0.01%) are up 3.5 ticks.
HSBC is down 2.5% in European trading after reporting that its profit fell 5.6% in 2012 after taking a $5.2 billion charge. HSBC was forced to revalue its impaired debt, pay a record penalty for compliance violations, and saw higher costs.
Chinese stocks fell sharply by 4.6% today in response to a new set of property market curbs to cool home prices that hit construction and developer stocks hard. The Chinese government cabinet late Friday announced measures such as higher down payments and mortgage rates on second homes in cities that have experienced steep home price increases. The cabinet also announced a 20% capital gains tax on existing home sales.
Chinese stocks were also hurt by Saturday's news that China's Feb non-manufacturing PMI from the National Bureau of Statistics fell by 1.7 points to 54.5 from 56.2 in Jan.
Japanese stocks were supported today and closed up +0.40% after Haruhiko Kuroda, who has been nominated as the new Bank of Japan chief, said he would do whatever it takes to end more than 15 years of deflation.
Japan's Feb monetary base surged to +15.0% y/y from +10.9% y/y in Jan.
The UK Feb construction PMI fell by -1.9 points to 46.8 from 48.7 in Jan and was weaker than market expectations for a +0.3 point increase to 49.0.
The Eurozone Jan PPI of +0.6% m/m and +1.9% y/y was closed to expectations and the year-on-year figure of +1.9% was down from +2.1% in Dec.
Italy's 10-year bond yield is up by 4 bp at 4.83% today as Italy's political parties struggle to form a government. Italy's Democratic Party leader Bersani is seeking to form a narrow government targeted on a limited number of legislative initiatives. However, ex-comic Grillo's party continues to say that it will not join any government with the established parties such as those of Bersani, Berlusconi, or Monti. A second election will need to be held if a ruling coalition cannot be found.

U.S. STOCK PREVIEW

The markets this week will focus mainly on the U.S. fiscal situation after last Friday’s sequester went into effect, a heavy schedule of overseas central bank meetings, and Friday U.S. payroll report (expected +160,000). There are only 5 of the Russell 1000 companies that report earnings today: Tech Data (consensus $1.76), Golar LNG (1.67), Stratasys (0.38), Ascena Retail (0.23), MFA Financial (0.20).

March E-mini S&Ps (ESH13 -0.10%) this morning are down -5.25 points (-0.35%) on weak European and Asian stocks and the decline in China's non-manufacturing PMI report. The S&P 500 index on Friday closed higher as concerns about federal spending cuts from sequestration were offset by (1) the stronger-than-expected Feb ISM manufacturing index which unexpectedly expanded to its best level in 20-months (+1.1 to 54.2), and (2) the +1.3 point increase to 77.6 in the Feb University of Michigan consumer confidence index. Other negatives included (1) carry-over weakness from a fall in European stocks after the Eurozone Jan unemployment rate unexpectedly rose +0.1 to a record high of 11.9%, and (2) the China Feb PMI manufacturing index which unexpectedly fell -0.3 to 50.1. Closes: S&P 500 +0.23%, Dow Jones +0.25%, Nasdaq +0.33%.

OVERNIGHT U.S. STOCK MOVERS

• Hecla Mining (HL unch) offerred to buy Aurizon Mines (AZK) for CD$4.75 per share or CD$796 million.
• Stratasys (SSYS +1.82%) reported Q4 adjusted EPS of 40 cents, above the consensus of 38 cents.
• HSBC (HBC -1.10%) reported FY12 EPS of 74 cents, down 20% y/y.
• Carl Icahn reported a 13.6% stake in Herbalife (HLF -0.47%).
• Cubic Corporation (CUB +0.79%) announced that it has received three prime contracts from the Naval Air Warfare Center Training Systems Division worth up to $298.5 million to develop courseware in support of the Littoral Combat Ship Train.
• Transocean (RIG -0.29%) reported Q4 adjusted EPS of 91 cents, better than consensus of 82 cents.
• Myers Industries (MYE +0.34%) raised its quarterly dividend to 9 cents from 8 cents per share.
• Praxair (PX +0.41%) announced that it expects the impact of the Venezuelan government's devaluation of the bolivar from 4.30 to 6.30 to result in an estimated charge to net income of approximately 8 cents per diluted share in Q1 due primarily to the remeasurement of the local Venezuelan balance sheet to reflect the new official 6.30 exchange rate.
• PDL BioPharma (PDLI -2.66%) reported Q4 EPS of 34 cents, better than consensus of 32 cents.
• Vanguard Natural (VNR -0.14%) reported Q4 adjusted EPS of 27 cents, weaker than consensus of 34 cents.
• Eastern Insurance Holdings (EIHI -0.16%) increased its quarterly cash dividend to 9 cents per share from 7 cents per share.

MARKET COMMENTS

June 10-year T-notes (ZNM13 +0.01%) this morning are up 3.5 ticks on some increased safe-haven demand with the sell-off in most global stock markets today. June 10-year T-note prices on Friday climbed to a 2-month high and closed higher after Jan personal income fell more-than-expected by the most in 20-years (-3.6%), along with concern the automatic spending cuts that began with Friday's sequestration will slow growth in the U.S. economy. T-note prices fell back from their best levels after U.S. Feb consumer confidence and ISM manufacturing activity unexpectedly strengthened. Closes: TYM3 +7.5, FVM3 +3.0.
The dollar index (DXY00 +0.04%) this morning is slightly higher by +0.06 (+0.07%). EUR/USD (^EURUSD) is down -0.0021 (-0.16%) and USD/JPY (^USDJPY) is down -0.08 (-0.09%). The dollar index on Friday soared to a 6-1/4 month high and closed higher as the beginning of the U.S. sequestration fueled safe-haven demand into the dollar. EUR/USD slumped to a 2-1/2 month low when the Eurozone Jan unemployment rate unexpectedly rose to a record high of 11.9%. Closes: Dollar index +0.36 (+0.44%), EUR/USD -0.00386 (-0.30%), USD/JPY +1.028 (+1.11%).
April WTI crude oil (CLJ13 +0.09%) this morning is down -0.16 (-0.18%) and April gasoline (RBJ13 +0.01%) is down -0.0087 (-0.28%). Crude oil and gasoline on Friday closed mixed. April crude posted a 2-month low after Chinese Feb manufacturing data expanded less than forecast, the dollar index surged to a 6-1/4 month high, and the U.S. sequestration began. April gasoline recovered from a 1-month low and closed higher, however, after the Feb ISM manufacturing index and Feb consumer confidence unexpectedly strengthened, which may boost fuel demand. Closes: CLJ3 -1.37 (-1.49%), RBJ3 +0.0169 (+0.54%).

GLOBAL EVENT CALENDAR03/04/2013

US	0800 ET	Fed Vice Chairman Janet Yellen speaks at the 2013 NABE conference on ?A View from the Fed.?
	0945 ET	Feb New York ISM , Jan 56.7.
	1100 ET	USDA weekly grain export inspections.
	1145 ET	Former Fed Chairman Paul Volcker speaks at the 2013 NABE conference on ?Lessons from the Financial Collapse-Learned or Forgotten??
EUR	0430 ET	Eurozone Mar Sentix investor confidence expected -4.3, Feb -3.9.
	0500 ET	Eurozone Jan PPI expected +0.5% m/m and +1.9% y/y, Dec -0.2% m/m and +2.2% y/y.
UK	0430 ET	UK Feb construction PMI expected +0.3 to 49.0, Jan 48.7.
	1901 ET	UK Feb BRC sales like-for-like expected +1.0%, Jan +1.9% y/y.
JPN	2030 ET	Japan Jan labor cash earnings, Dec -1.7% y/y.
CHI	2045 ET	China Feb HSBC services PMI, Jan 54.0.

U.S. STOCK CALENDAR03/04/2013

Company Name	Symbol	Time	Event Description	Period	EPS Est (US$)
Tech Data Corp	TECD US	Bef-mkt	Q4 2013 Earnings Release	Q4 2013	1.76
Golar LNG Ltd	GOL NO	Bef-mkt	Y 2012 Earnings Release	Y 2012	1.667
Stratasys Ltd	SSYS US	Bef-mkt	Q4 2012 Earnings Release	Q4 2012	0.383
Stratasys Ltd	SSYS US	8:30	Q4 2012 Earnings Call	Q4 2012
Tech Data Corp	TECD US	9:00	Q4 2013 Earnings Call	Q4 2013
Golar LNG Ltd	GOL NO	9:30	Y 2012 Earnings Call	Y 2012
Dominion Resources Inc/VA	D US	10:00	Analyst Meeting	Y 2013
Ascena Retail Group Inc	ASNA US	16:00	Q2 2013 Earnings Release	Q2 2013	0.228
Ascena Retail Group Inc	ASNA US	16:30	Q2 2013 Earnings Call	Q2 2013
Cisco Systems Inc	CSCO US		VirnetX vs. Cisco Patent-Infringement Trial Begins
AutoNation Inc	AN US		February 2013 Sales and Revenue Release	2013

Barchart Morning Call 3/1

Barchart Morning Call

BC - 1 hr 41 mins ago

OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH13 -0.50%) this morning are down -0.38% on weaker-than-expected Chinese and UK manufacturing PMI reports, the climb in the Eurozone unemployment rate to a new record high of 11.9%, and the U.S. automatic spending cuts that go into effect today. European stocks are down sharply by -1.29%. Asian stocks closed mixed today with Japan up +0.41%, Hong Kong down -0.61%, and China down -0.17%. Commodity prices are showing a fairly sharp loss on average of -0.52%. April crude oil (CLJ13 -1.30%) is down -0.97%, April gasoline (RBJ13 -0.91%) is down -1.14%, April gold (GCJ13 -0.44%) is down -0.70%, May copper (HGK13 -1.78%) is sharply lower by -1.71%, grains and softs are lower, and livestock is higher. The dollar index (DXY00 +0.40%) is up +0.40% on increased safe-haven demand with the sell-off in U.S. and European stocks. EUR/USD (^EURUSD) is down -0.40% and USD/JPY (^USDJPY) is up +0.29%. June 10-year T-notes (ZNM13 +0.21%) are up 8 ticks.
President Obama today will meet at the White House with top Congressional leaders but the $85 billion in sequestration will go into effect today with no serious negotiations for an alternative. The big issue now is the continuing spending resolution that must be passed by March 27 to keep the government operating through the end of the fiscal year.
The Chinese government today raised down-payment requirements and raised mortgage rates for second-home mortgages in cities with "excessively fast" price gains to slow property price increases.
Chicago Fed President Evans last night speaking in Des Moines, Iowa said, We need to be careful not to undermine our own policies and remove accommodation prematurely, as the Japanese did." He said, "There remain plenty of headwinds and downside risks that can impede our progress."
Japan's Jan jobless rate of 4.2% was in line with market expectations and was down from a revised 4.3% in Dec (prelim 4.2%). The Jan job-to-applicant ratio rose to 0.85 from a revised 0.83 in Dec.
Japan's Jan national CPI fell to -0.3% y/y from -0.1% y/y in Dec was showed deeper deflation than market expectations of -0.2% y/y. The Feb Tokyo CPI fell to -0.9% y/y from a revised -0.5% y/y in Jan. The deeper deflation rates will provide a stronger basis for the new BOJ chief Kuroda to pursue the expanded asset purchase program that he is widely expected to adopt.
China's Feb HSBC manufacturing PMI fell by -1.9 points to 50.4 from the 2-year high of 52.3 posted in January, which was weaker than market expectations of 50.6. Meanwhile, the Feb manufacturing PMI reported by the National Bureau of Statstics fell by -0.3 points to 50.1 from 50.4 in Jan and was weaker than market expectations for a +0.1 point rise to 50.5.
Japan's Feb vehicle sales fell by -12.2% y/y, improving a bit from -12.9% y/y in Jan.
The UK Feb nationwide house price report of +0.2% m/m and unchanged y/y was roughly in line with market expectations.
The German Jan retail sales report of +3.1% m/m and +2.4% y/y was substantially better than market expectations of +0.9% m/m and -1.7% y/y. Dec was revised to -2.1% m/m and -3.7% y/y from -1.7% m/m and -4.7% y/y.
The UK Feb PMI manufacturing index fell by -2.6 points to 47.9 from a revised 50.5 in Jan and was -3.1 points weaker than market expectations for an increase to 51.0.
The German final-Feb manufacturing PMI was revised higher by +0.2 points to 50.3 from 50.1 in early-Feb, which was 0.2 points better than market expectations for an unrevised report of 50.1. The Eurozone final-Feb manufacturing PMI was revised +0.1 point higher to 47.9 from 47.8 in early-Feb.
The Eurozone Feb CPI report of +1.8% y/y eased from +2.0% in Jan and was weaker than market expectations of +1.9%.
The Eurozone Jan unemployment rate rose by +0.1 point to 11.9% from a revised 11.8% in Dec (prelim 11.7%) and showed a weaker labor market than market expectations for a report of 11.8%. The Feb unemployment rate of 11.9% was a record high for the series that has a history back to 1995. The number of unemployed persons rose by 201,000 to 18.998 million persons. The Jan youth unemployment rate rose to a record 24.2%, which was bad enough except that Spain's youth unemployment rate rose to an unfathomable 55.5%.

U.S. STOCK PREVIEW

The markets today will be closely watching a meeting at the White House between President Obama and Congressional leaders although no progress is expected to be made to avert the sequester that begins today. Today’s Feb ISM manufacturing index is expected to show a decline of -0.6 to 52.5, reversing the +2.9 point increase to 53.1 seen in January. Feb total vehicle sales are expected to dip to 15.10 mln from 15.23 mln in January as consumer spending takes at least a mild hit from the fiscal cliff deal. Today’s final-Feb U.S. consumer confidence index from the University of Michigan is expected to be unrevised from the early-Feb report of 76.3. Today’s Jan PCE deflator is expected to ease to a 3-1/4 year low of +1.2% y/y from +1.3% y/y in December. Meanwhile, the Jan core PCE deflator, which is the Fed’s preferred inflation measure, is expected to ease to +1.3% y/y from the 1-1/2 year low of +1.4% y/y seen in December.
Three of the S&P 500 companies are scheduled to release earnings today: Pepco Holdings (consensus $0.20), Best Buy (1.55), and Berkshire Hathaway ($1793.24).

March E-mini S&Ps (ESH13 -0.50%) this morning are down -5.75 points (-0.38%) on today's sequestration and on generally weak global economic data released today. The S&P 500 index on Thursday traded higher into early afternoon, but erased its advance and tumbled into the close after the Senate rejected a pair of partisan proposals to replace sequestration that begins Friday. Other negative factors included the weaker-than-expected Q4 U.S. GDP (+0.1% versus expectations of +0.6%) and the IMF's statement that it will cut its GDP forecast for the U.S. because of sequestration. Supportive factors included (1) carry-over strength from a rally in European stocks after ECB President Draghi said the ECB is "far" from considering a liquidity exit, (2) the larger-than-expected decline in weekly U.S. jobless claims (-22,000 versus expectations of -2,000) and (3) the unexpected increase in the Feb Chicago purchasing managers index to its best level in 11 months (+1.2 to 56.8 versus expectations of -1.6 to 54.0). Closes: S&P 500 -0.09%, Dow Jones -0.15%, Nasdaq -0.10%.

OVERNIGHT U.S. STOCK MOVERS

• Groupon (GRPN -24.25%) rallied 4% in after-hours trading after it announced CEO Andrew Mason will be stepping down.
• Atlantic Power (AT -3.39%) reported a Q4 EPS loss of -50 cents, greater than consensus for a -3 cent loss.
• Northern Oil and Gas (NOG -1.79%) reported Q4 adjusted EPS of 34 cents, better than consensus of 27 cents.
• Boeing (BA -0.59%) will eliminate hundreds of workers at its South Carolina Dreamliner factory over the course of this year, according to Dow Jones.
• Westar Energy (WR -0.29%) reported Q4 non-GAAP EPS of 36 cents, better than consensus of 20 cents and increased the dividend by 1 cent to 34 cents per share payable to shareholders of record as of March 11.
• Cempra (CEMP -0.61%) reported a Q4 EPS loss of -26 cents, smaller than consensus of a -32 cent loss.
• Dresser-Rand (DRC +0.65%) reported Q4 EPS of $1.05, weaker than consensus of $1.10.
• Flowers Foods (FLO -0.49%) won its bid for Hostess bread assets with a $360 million bid. The agreement includes, in addition to the brands, 20 bakeries, 38 depots and other assets.
• McDermott (MDR -1.78%) reported Q4 EPS of 17 cents, weaker than consensus of 23 cents.
• Salesforce.com (CRM +1.37%) rallied 4% in after-hours trading after the company reported Q4 adjusted EPS of 51 cents, better than consensus of 40 cents.
• Gap (GPS +1.26%) rose +2.5% in after-hours trading after it reported Q4 EPS of 73 cents, higher than consensus of 71 cents, and said it will raise its annual dividend by 20% per share from 50 cents in fiscal year 2012 to 60 cents in fiscal year 2013.

MARKET COMMENTS

June 10-year T-notes (ZNM13 +0.21%) this morning are up 8 ticks on increased safe-haven demand with the sell-off in stocks. June 10-year T-note prices on Thursday closed higher after U.S. GDP grew less than expected in Q4 along with increased safe-haven demand for Treasuries on concern the automatic spending cuts that begin Friday from sequestration will slow growth in the U.S. economy. Closes: TYM3 +3.5, FVM3 +2.0.
The dollar index (DXY00 +0.40%) this morning is up +0.33 points (+0.40%) on increased safe-haven demand with the sell-off in stocks and with today's beginning of sequestration. EUR/USD (^EURUSD) is down -0.0052 (-0.40%) on weak European economic data. USD/JPY (^USDJPY) is up +0.27 (+0.29%) as today's Japan CPI data will provide an even stronger justification for new BOJ chief Kuroda to expand the BOJ's asset purchase plan. The dollar index on Thursday jumped to a 6-month high and closed higher after EUR/USD retreated when ECB President Draghi signaled that the ECB has no intention of tightening monetary policy anytime soon. Closes: Dollar index +0.38 (+0.47%), EUR/USD -0.0081 (-0.61%), USD/JPY +0.32 (+0.34%).
April WTI crude oil (CLJ13 -1.30%) this morning is down -0.89 (-0.97%) and April gasoline (RBJ13 -0.91%) is down -0.0354 (-1.14%) on weak global economic data and today's U.S. sequestration. Crude oil and gasoline on Thursday closed mixed. April gasoline posted a 1-month low but rebounded higher after the Phillips 66 Wood River refinery in Roxana, Illinois and the Exxon Mobil Joliet, Illinois, refinery that supply the Midwest with gasoline, reported issues with production units that may limit their gasoline output. Other bullish factors included the bigger-than-expected decline in weekly U.S. jobless claims (-22,000 versus expectations of -2,000) and the Feb Chicago purchasing managers index which unexpectedly expanded to its best level in 11-months (+1.2 to 56.8), and suggests stronger fuel consumption. Bearish factors included (1) the rally in the dollar index to a 6-month high, (2) weaker-than-expected U.S. Q4 GDP (+0.1% q/q annualized versus expectations of +0.6%), and (3) concern that the U.S. economy and energy demand will slow once sequestration begins on Friday. Closes: CLJ3 -0.71 (-0.77%), RBJ3 +0.0054 (+0.17%).

GLOBAL EVENT CALENDAR03/01/2013

US	0830 ET	Jan personal income expected -2.4% m/m, Dec +2.6% m/m. Jan personal spending expected +0.2%, Dec +0.2% m/m.
	0830 ET	Jan PCE deflator expected +0.1% m/m and +1.2% y/y, Dec unch m/m and +1.3% y/y. Jan core PCE deflator expected +0.2% m/m and +1.3% y/y, Dec unch m/m and +1.4% y/y.
	0955 ET	Final-Feb U.S. consumer confidence (University of Michigan) expected unch at 76.3, early-Feb +2.5 to 76.3.
	1000 ET	Jan construction spending expected +0.4%, Dec +0.9% m/m.
	1000 ET	Feb ISM manufacturing index expected -0.6 to 52.5, Jan +2.9 to 53.1. Feb ISM prices-paid sub-index expected +0.8 to 57.3, Jan +1.0 to 56.5.
	1700 ET	Feb total vehicle sales expected 15.10 mln, Jan 15.23 mln. Feb domestic vehicle sales expected 12.00 mln, Jan 12.08 mln.
	2200 ET	Fed Chairman Ben Bernanke speaks on low long-term interest rates.
	n/a	Sequester of $85 billion in automatic spending cuts begin for March-September.
JPN	0000 ET	Japan Feb vehicle sales, Jan -12.9% y/y
GER	0200 ET	German Jan retail sales expected +0.9% m/m and -1.7% y/y, Dec -1.7% m/m and -4.7% y/y.
	0355 ET	German final-Feb manufacturing PMI expected unrevised at 50.1.
EUR	0400 ET	Eurozone final-Feb manufacturing PMI expected unrevised at 47.8.
	0500 ET	Eurozone Feb CPI estimate expected +1.9% y/y, Jan +2.0% y/y.
	0500 ET	Eurozone Jan unemployment rate expected +0.1 to 11.8, Dec 11.7%.
UK	0200 ET	U.K. Feb nationwide house prices expected +0.2% m/m and -0.2% y/y, Jan +0.5% m/m and unch y/y.
	0430 ET	U.K. Feb PMI manufacturing expected +0.2 to 51.0, Jan 50.8.
	0430 ET	U.K. Jan net consumer credit expected +0.2 bln pounds, Dec +0.6 bln pounds. Jan net lending on dwellings expected +0.8 bln pounds, Dec +1.0 bln pounds.
	0430 ET	U.K. Jan mortgage approvals expected 56,500, Dec 55,800.
	0430 ET	U.K. Jan M4 money supply, Dec +0.7% m/m and -1.0% y/y.

U.S. STOCK CALENDAR03/01/2013

Company Name	Symbol	Time	Event Description	Period	EPS Est (US$)
Hospitality Properties Trust	HPT US	Bef-mkt	Q4 2012 Earnings Release	Q4 2012	0.771
Golar LNG Ltd	GOL NO	Bef-mkt	Y 2012 Earnings Release	Y 2012	1.667
Pepco Holdings Inc	POM US	Bef-mkt	Q4 2012 Earnings Release	Q4 2012	0.202
Exelis Inc	XLS US	7:00	Q4 2012 Earnings Release	Q4 2012	0.457
Best Buy Co Inc	BBY US	8:00	Q4 2013 Earnings Release	Q4 2013	1.551
Eaton Corp PLC	ETN US	8:00	Analyst Conference	Y 2013
Public Service Enterprise Group Inc	PEG US	8:00	Analyst Conference	Y 2013
Best Buy Co Inc	BBY US	9:00	Q4 2013 Earnings Call	Q4 2013
Great Plains Energy Inc	GXP US	9:00	Q4 2012 Earnings Call	Q4 2012
Universal Health Services Inc	UHS US	9:00	Q4 2012 Earnings Call	Q4 2012
Integrys Energy Group Inc	TEG US	9:00	Q4 2012 Earnings Call	Q4 2012
Popular Inc	BPOP US	9:00	Investor Day	2012
Popular Inc	BPOP US	9:00	Investor Day	Y 2013
Dresser-Rand Group Inc	DRC US	9:00	Q4 2012 Earnings Call	Q4 2012
SandRidge Energy Inc	SD US	9:00	Q4 2012 Earnings Call	Q4 2012
Ford Motor Co	F US	9:30	February 2013 Sales and Revenue Release	2013
Ford Motor Co	F US	10:00	February 2013 Sales and Revenue Call	2013
McDermott International Inc	MDR US	10:00	Q4 2012 Earnings Call	Q4 2012
Westar Energy Inc	WR US	10:00	Q4 2012 Earnings Call	Q4 2012
Hospitality Properties Trust	HPT US	10:00	Q4 2012 Earnings Call	Q4 2012
Pepco Holdings Inc	POM US	10:00	Q4 2012 Earnings Call	Q4 2012
Exelis Inc	XLS US	10:00	Q4 2012 Earnings Call	Q4 2012
General Motors Co	GM US	11:00	February 2013 Sales and Revenue Call	2013
Berkshire Hathaway Inc	BRK/A US	16:00	Q4 2012 Earnings Release	Q4 2012	1793.24
General Motors Co	GM US		February 2013 Sales and Revenue Release	2013

Are regional airlines different?

I had a little room in my Wall Street Survivor portfolio and this weekend I had determined I would still buy into this market so I went bargain hunting in these down days. I used Barchart to find which stocks were continuing to hit new highs even while the market was sliding backwards and came up with Linhas Aereas Inteligentes ( GOL ) a Brazilian ADR that is a regional airline. Before you start screaming that I'm a total idiot to consider any airline give my thinking a try. Airlines in the rest of the world are a little different that our airlines in the US. In countries like Brazil they is not an alternate transportation choice. For much of the country there is not a proper roadway or rail choice so air travel is the only choice. This airline moves people, cargo and mail bags so they are not as passenger dependent and ticket price sensitive like in the US. Competition also isn't as keen.

The stock has hit new highs in 14 of the last 20 trading sessions and is 5 for 5 more recently. There has been a 63.48% price appreciation in the last 65 days and BarChart's technical indicators have 12 of 13 buy signals for a 96% buy rating.

The 9 analysts following the stock look for a 26.2% increase in sales next year and a profit improvement of 136.8% this year. They have 4 buy, 4 hold and 1 sell recommendations. The lone sell was from Citi back in January and the stock has had good price appreciation since that date. The most current review is from Argus this August and they went from sell to buy.

On some other sites Wall Street Survivor Mark's checklist has a Survivor Sentiment rating of 5/5 and a fundamental rating of 4/5. Over in Motley Fool the members think the stock will out perform the market by a vote of 313 to 37 with the All Stars in agreement 97 to 10. The mixed review comes from the Wall Street columnists that Fool follows with a vote of 5 to 4. The 4 who say sell did so back earlier in the year and have not revisited their signal. The stock has had pretty good price appreciation since then so I'll discount those sell recommendations.

The stock has what I'm looking for:

• Hitting new highs in the current market at least 50% of the time
• If Wall Street brokerages are following the stock - no current trash talking
• The other sites do not have a major disagreement with my pick

Recommendation: I'm going to add Linhas Aereas Inteligentes (GOL) to my Wall Street Survivor portfolio around 15.78 with a protective stop loss no lower than 12.

Disclosure: I hold no positions in this stock at the time of publication

Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email FinancialTides@gmail.com