BloggingStocks

Earnings highlights: Dell, Sears, Costco, Heinz, Tiffany, Borders, DSW and others

Trey Thoelcke — 2008-05-31T11:40:00+00:00

Filed under: Earnings reports, Google (GOOG), Dell (DELL), Starbucks (SBUX), Tiffany and Co (TIF), Sears Holdings (SHLD), Costco Wholesale (COST), Novell Inc (NOVL), Marvell Technology Group (MRVL), salesforce.com inc (CRM)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Big Lots Inc. (NYSE: BIG) Q1 earnings rose 20%, driven by cash-strapped bargain hunters.
Borders Group Inc. (NYSE: BGP) narrowed its loss in the first quarter though same-store sales fell.
Costco Wholesale Corp. (NASDAQ: COST) Q3 profits climbed 32%, beating analysts' estimates.
Dell Inc. (NASDAQ: DELL) posted solid Q1 results that beat analysts' expectations (see the transcript).
DSW Inc. (NYSE: DSW) Q1 earnings declined, hurt by weak same-store sales.
H.J. Heinz Co. (NYSE: HNZ) better-than-expected Q4 results sent the stock to a 52-week high.
Integra LifeSciences Holdings Corp. (NASDAQ: IART) beat Q4 estimates and offered Q1 guidance.
J. Crew Group Inc. (NYSE: JCG) lowered its full-year forecast, leading to analyst downgrades.
Joy Global Inc. (NASDAQ: JOYG) Q2 results beat expectations, and it raised its full-year guidance.
Lions Gate Entertainment Corp. (NYSE: LGF) posted record Q4 revenues but a bigger-than-expected loss.
Marvell Technology Group (NASDAQ: MRVL) Q1 profits beat estimates and led to analyst upgrades.
Medtronic Inc. (NYSE: MDT) beat Q4 estimates and offered full-year guidance.
Novell Inc. (NASDAQ: NOVL) swung to a profit that was in line with analysts estimates.
Salesforce.com Inc. (NYSE: CRM) Q1 revenues surged on new customers and demand in Asia.

Sears Holdings Corp. (NASDAQ: SHLD) swung to a Q1 loss as same-store sales declined.
Semtech Corp. (NASDAQ: SMTC) beat Q1 expectations with record revenues and raises its outlook.
Shoe Carnival Inc. (NASDAQ: SCVL) Q1 profit fell due to softer-than-expected seasonal sales.
Tiffany & Co. (NYSE: TIF) easily beat Q1 expectations and raised its full-year guidance.
TiVo Inc. (NASDAQ: TIVO) Q1 earnings quadrupled, but it expects a loss in the current quarter.

Also earnings of Google (NASDAQ: GOOG), Starbucks (NASDAQ: SBUX), and 400 other companies were affected by write downs of auction-rate securities.

Upcoming results to watch for include Toll Brothers (NYSE: TOL), Hovnanian Enterprises (NYSE: HOV), Ciena (NASDAQ: CIEN), Bob Evans Farms (NASDAQ: BOBE), Williams-Sonoma (NYSE: WSM), Del Monte (NYSE: DLM), National Semiconductor (NYSE: NSM), Smithfield Foods (NYSE: SFD), and Lululemon Athletica (NASDAQ: LULU).

Visit AOL Money & Finance for more earnings coverage.

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Closing Bell: S&P survives day-end selling

Jon Ogg — 2008-05-30T16:35:00+00:00

Filed under: Dell (DELL), Anheuser-Busch Cos (BUD), Marvell Technology Group (MRVL), JetBlue Airways (JBLU)

A mixed day in many stocks, though this actually worked out to be an acceptable day despite the end of day selling that took away many of the gains. To show how the markets were mixed continually, the S&P 500 Index closed up marginally for May while the DJIA closed slightly down for the month. We also saw income and spending fall, although the numbers weren't quite as bad as expectations. This was also when the University of Michigan gave the crummiest reading in 28 years. Here are the unofficial closing bell levels:

DJIA 12,619.92 (-26.30)
S&P500 1,398.97 (+0.92)
NASDAQ 2,522.66 (+14.34)
52-WEEK LOWS
Top 10 Analyst Calls
Oil & Gas Upgrades/Downgrades

Anheuser-Busch Companies Inc. (NYSE: BUD) saw highly unusual options activity and strong equity trading as more speculators believe a deal with Belgium's InBev may be imminent. Shares rose almost 2% and were up at $57.58 in the final minutes of the day.

Dell Inc. (NASDAQ: DELL) beat the skeptics and beat earnings last night in a move that sent shares higher. In the final minutes of trading, shares were up almost 7% at $23.28 in the final minutes.

J. Crew Inc. (NYSE: JCG) saw a sharp drop on high volume after the company beat earnings but lowered estimates ahead. Shares were down almost 20% at $37.74 in the final minutes of the day.

JetBlue (NASDAQ: JBLU) saw added pressure today and the stock even challenged its 52-week lows after it priced $175 million in 30-7ear convertible debentures. Shares were down 4% at $3.98 in the final minutes of the day.

Marvell Tech (NASDAQ: MRVL) saw a surge of 25% to $17.67 by the final minutes of the day after the company beat earnings in part due to its iPhone ties.

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Marvell Tech (MRVL) soars on Q1 earnings

Brent Archer — 2008-05-30T14:45:00+00:00

Filed under: Major movement, Earnings reports, Good news, Industry, Options, Technical Analysis, Marvell Technology Group (MRVL)

Marvell Technology (NASDAQ: MRVL) shares are trading higher after the company posted a first-quarter profit of $69.9 million, or 11 cents per share. Excluding one-time items, MRVL earned 24 cents per share, well above analysts' estimates of 13 cents per share. After earnings were announced, an analyst at Oppenheimer upgraded the stock to "Outperform" from "Perform." If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on MRVL.

After hitting a one-year high of $20.04 in July, the stock hit a one-year low of $9.77 in January. MRVL opened this morning at $16.95. So far today the stock has hit a low of $16.82 and a high of $17.47. As of 12:50, MRVL is trading at $17.35, up 3.27 (23.2%). The chart for MRVL looks bullish and steady, while S&P gives the stock a neutral 3 Stars (out of 5) Hold rating.

For a bullish hedged play on this stock, I would consider a January bull-put credit spread below the $12.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 11.1% return in eight months as long as MRVL is above $12.50 at January expiration. Marvell would have to fall by more than 27% before we would start to lose money. Learn more about this type of trade here.

MRVL has been below $12.50 as recently as April but has shown support around $14 over the past month. This trade could be risky if the slowing US economy puts a damper on the next two earnings reports from MRVL but even if that happens, that position could be protected by support the stock might find from its 50 day moving average, which is currently around $12.50 and rising.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in MRVL.

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Before the bell: MRVL, JCG, F, NOVL, TM, GM ...

Melly Alazraki — 2008-05-30T08:19:00+00:00

Filed under: Before the bell, Earnings reports, Analyst upgrades and downgrades, Deals, Apple Inc (AAPL), Ford Motor (F), General Motors (GM), Toyota Motor Corp. (TM), Novell Inc (NOVL), Marvell Technology Group (MRVL)

Before the bell: Dell, oil help futures rise

Marvell Technology (NASDAQ: MRVL) reported late Thursday a first-quarter profit, beating analyst estimates. Revenue rose 27%. MRVL shares are up nearly 17% in premarket trading. J.P. Morgan upgraded Marvell from Neutral to Overweight and Oppenheimer from Perform to Outperform with a target price of $21.

J. Crew (NYSE: JCG) shares, on the other hand, are dropping over 18% after it said late Thursday it cut its full-year earnings outlook. Seems the high-flying retailer is not immune to weak U.S. consumer spending. Citigroup downgraded JCG from Hold to Sell and cut the target price from $42 to $34. Wachovia downgraded JCG from Outperform to Market Perform.

Ford Motor Co. (NYSE: F) shares are up over 1.3% this morning after Tracinda Corp., the investment arm of billionaire activist investor Kirk Kerkorian, said Friday it will waive a condition on its $170 million cash tender offer that the market price of Ford shares does not fall by 10% or more from its May 8 close of $8.20. Since the time of the offer to buy up to 20 million shares at $8.50 per share -- at the time a slight premium -- shares have fallen 18%. The offer expires June 9.

A Japanese newspaper reported that Toyota Motor (NYSE: TM) is considering whether to build its fuel-efficient hybrid Prius at a California plant it jointly operates with General Motors (NYSE: GM). Toyota said nothing had yet to be decided and denies the report. Meanwhile, with General Motors Corp. (NYSE: GM) 19,000 hourly workers signing a buyout, it may also be moving entire shifts of workers at some truck factories to nearby car plants as it restructures to adjust to a rapidly changing U.S. market brought on by $4 per gallon gasoline. The restructuring moves, however, were not confirmed and will be announced by CEO Wagoner on Tuesday at GM's annual meeting.

Novell Inc. (NASDAQ: NOVL) said late Thursday it swung to a profit of $5.87 million, or 2 cents a share. Meanwhile revenue rose to $235.67 million. Excluding special items, Novell said earnings from continuing operations for the quarter were 6 cents a share, inline with estimates.

The blogosphere has been abuzz after Apple Inc. (NASDAQ: AAPL) said it is closing its 24-hour flagship 5th Avenue retail store in Manhattan for the night. Apparently, a commercial is being shot there and many wonder if its a commercial for the 3G iPhone.

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Pre-market movers (DELL) (MRVL)

Douglas McIntyre — 2008-05-30T08:15:00+00:00

Filed under: Before the bell, Dell (DELL), Marvell Technology Group (MRVL)

Dell (NASDAQ: DELL) is up 9% on strong earnings.

Marvell Technology (NASDAQ: MRVL) is up 17% on good numbers.

Sigman Designs (NASDAQ: SIGM) is off 18% on weak earnings.

JA Solar (NASDAQ: JASO) is up almost 7% on no visible news.

Stocks may trade differently in the pre-market than they do in the regular session.

Douglas A. McIntyre is an editor at 24/7 Wall St.

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Market highlights for next week: Dell and TiVo reporting earnings

Eric Buscemi — 2008-05-23T16:56:00+00:00

Filed under: Earnings reports, Conventions and conferences, Annual meetings, Dell (DELL), Marvell Technology Group (MRVL), Polo Ralph Lauren'A' (RL)

Monday, May 26

Markets closed for Memorial Day holiday.

Tuesday, May 27

Vodafone Group Plc (ADR) (NYSE: VOD) to report preliminary earnings results for the year ending 3/13/08, conference call at 5:00am.
Modine Manufacturing Co. (NYSE: MOD) to report Q4 earnings; conference call at 11:00am.

Wednesday, May 28

Polo Ralph Lauren Corporation (NYSE: RL) to report Q4 earnings; conference call at 9:00am.
TiVo Inc. (NASDAQ: TIVO) to report Q1 earnings; conference call at 5:00pm.

Thursday, May 29

Marvell Technology Group Ltd. (NASDAQ: MRVL) to report Q1 earnings; conference call at 3:45pm.
Novellus Systems, Inc. (NASDAQ: NVLS) to give Q2 mid-quarter update at 4:30pm.
Force Protection, Inc. (NASDAQ: FRPT) to give business update at 4:30pm.
Dell Inc. (NASDAQ: DELL) to report Q1 earnings; conference call at 5:00pm.

Friday, May 30

FDA Oncologic Drugs Advisory Committee meeting at 8:00am on GlaxosmithKline Plc (ADR) (NYSE: GSK)'s NDA 022-291 proposed trade name Promacta for short-term treatment of previously-treated patients with Chronic Idiopathic Thrombocytopenic Purpura, to increase platelet counts and reduce/prevent bleeding.
Science Board to the FDA meeting at 8:00am to discuss Subcommittee Review of National Center for Toxicological Research & Office of Regulatory Affairs; discuss keeping in step with technical and scientific evolutions in the fields of regulatory science.

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Analyst upgrades: CS, ERIC, MASI and MRVL

Laurie Pasternack — 2008-04-28T11:05:00+00:00

Filed under: Analyst reports, Analyst upgrades and downgrades, Marvell Technology Group (MRVL)

MOST NOTEWORTHY: Credit Suisse, Masimo and Marvell Tech were today's noteworthy upgrades:

Bear upgraded Credit Suisse Group (NYSE: CS) to Peer Perform from Underperform as they believe the company's balance sheet will stabilize and the company's Private Banking business is holding up well in difficult conditions. Goldman, which raised shares to Neutral from Sell, believes the worst is over regarding the market downturn.
Citigroup upgraded Masimo Corporation (NASDAQ: MASI) to Buy from Hold citing expectations of a strong Q1 report, expected FDA approval for hemoglobin monitoring in 2H08, and valuation.
Marvell Technology Group Ltd (NASDAQ: MRVL) was raised at Friedman Billings to Outperform from Market Perform based on valuation and improved business conditions.

OTHER UPGRADES:

Goldman raised LM Ericsson Telephone Company (NASDAQ: ERIC) to Neutral from Sell.
JP Morgan upgraded Big Lots Inc (NYSE: BIG) to Overweight from Neutral.
Petro-Canada (NYSE: PCZ) was upgraded at CIBC to Sector Outperformer from Sector Performer.

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Marvell Tech (MRVL) rising on Intel outlook

Brent Archer — 2008-04-16T14:18:00+00:00

Filed under: Major movement, Earnings reports, Good news, Industry, Intel (INTC), Options, Technical Analysis, Marvell Technology Group (MRVL), Technology

Marvell Technology Group Ltd. (NASDAQ: MRVL) shares are trading higher after tech bellwether Intel (NASDAQ: INTC) reported a first quarter profit of $1.44 billion, or 25 cents per share, in line with analysts' estimates. While many investors were expecting weak results, INTC noted in a press release that microprocessor sales were in line with seasonal trends, which could be a good sign for MRVL. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on MRVL.

After hitting a one-year high of $20.04 in July, the stock hit a one-year low of $9.77 in January. MRVL opened this morning at $10.76. So far today the stock has hit a low of $10.53 and a high of $10.95. As of 12:30, MRVL is trading at $10.91, up $0.41 (3.9%). The chart for MRVL looks bullish but deteriorating, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider an August bull-put credit spread below the $7.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.7% return in just four months as long as MRVL is above $7.50 at August expiration. Marvell would have to fall by more than 30% before we would start to lose money. Learn more about this type of trade here.

MRVL hasn't been below $9.50 at all in the past year and has shown support around $10.75 recently. This trade could be risky if the company's earnings (due out in late May or early June) disappoint, but even if that happens, this position could be protected by the support the stock might find around $10, where it has bottomed out over the past four months.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in MRVL. He does control a bullish hedged position in INTC.

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Earnings highlights: Blockbuster, Costco, H&R Block, Walgreen, Saks and others

Trey Thoelcke — 2008-03-08T09:10:00+00:00

Filed under: Earnings reports, Walgreen Co (WAG), Blockbuster Inc 'A' (BBI), H and R Block (HRB), Costco Wholesale (COST), Marvell Technology Group (MRVL), Urban Outfitters (URBN)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Astec Industries Inc. (NASDAQ: ASTE) beat expectations and raised its guidance.
Blockbuster Inc. (NYSE: BBI) fourth-quarter profit fails to offset the full-year loss.
China Techfaith Wireless Communication Technology (NASDAQ: CNTF) beat analysts' expectations.
Costco Wholesale Corp. (NASDAQ: COST) met analysts' estimates, buoyed by higher fuel prices.
FTI Consulting Inc. (NYSE: FCN) beat expectations and raised its full-year guidance.
H&R Block Inc. (NYSE: HRB) narrowed its loss due to higher sales and smaller subprime losses.
Jackson Hewitt Tax Service Inc. (NYSE: JTX) missed estimates as third-quarter profits declined sharply.
LifeCell Corp. (NASDAQ: LIFC) beat fourth-quarter estimates and offered full-year guidance.
Marvell Technology Group (NASDAQ: MRVL) lowered its first-quarter forecast , sending shares lower.
Porsche AG (OTC: PSEPF) profit soared on strong sales of its Cayenne.
S1 Corp. (NASDAQ: SONE) beat expectations and offered full-year guidance.
Saks Inc. (NYSE: SKS) fourth-quarter profit nearly doubled, but full-year profit declined.
Urban Outfitters Inc. (NASDAQ:URBN) beat expectations on strength in same-store sales.
Walgreen Co. (NYSE: WAG) reports strong same-store sales ahead of its quarterly results.

Also, see Timothy Sykes's take on Warren Buffett's annual letter to Berkshire Hathaway (NYSE: BRK.A) shareholders. Zac Bissonnette is interested in where earnings actually come from. And Saks, Costco, and other retailers saw stronger February same-store sales despite recession concerns, but JC Penney Co. (NYSE: JCP) didn't feel the love.

Upcoming results to watch for include Kroger Co. (NYSE: KR), Boston Beer Co. (NYSE: SAM), J. Crew Group Inc. (NYSE: JCG), Jones Soda Co. (NASDAQ: JSDA), Blackstone Group (NYSE: BX), and Men's Wearhouse Inc. (NYSE: MW).

Visit AOL Money & Finance for more earnings coverage.

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Broadcom (BRCM) falls on weak Marvell (MRVL) outlook

Brent Archer — 2008-03-07T14:30:00+00:00

Filed under: Major movement, Earnings reports, Forecasts, Bad news, Industry, Broadcom Corp'A' (BRCM), Options, Technical Analysis, Marvell Technology Group (MRVL)

Broadcom Corp. (NASDAQ: BRCM) stock is falling after fellow chip manufacturer Marvell (NASDAQ: MRVL) indicated an outlook for the first quarter of this year that investors did not like the looks of. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on BRCM.

After hitting a one-year high of $43.07 in October, the stock has hit a new one-year low today. This morning, BRCM opened at $17.75. So far today the stock has hit a low of $17.35 and a high of $18.73. As of 12:30, BRCM is trading at $17.66, down 93 cents (-5.0%). The chart for BRCM looks bearish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bearish hedged play on this stock, I would consider a May bear-call credit spread above the $22.50 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.7% return in two and a half months as long as BRCM is below $22.50 at May expiration. Broadcom would have to rise by more than 27% before we would start to lose money.

BRCM hasn't been above $22.50 since January and has shown resistance around $20 recently. This trade could be risky if the economic situation turns around, but even if that happens, this position could be protected by resistance BRCM might find at its 50 day moving average, which is currently around $23 and falling.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in BRCM.

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Before the bell: Futures (higher ahead) lower after of jobs data (ABK, MRVL)

Melly Alazraki — 2008-03-07T07:45:00+00:00

Filed under: Before the bell, International markets, Earnings reports, Market matters, Economic data, Marvell Technology Group (MRVL), Federal Reserve

Stock futures were lower early Friday morning, but have since changed direction and are now (7:30 a.m.) higher, indicating a positive start on Wall Street. While the same concerns over the credit situations are unchanged, investors will focus much of their attention on upcoming data, specifically the government's monthly jobs report. Futures may still change direction depending on the report.

[Update 9:00 a.m.: U.S. nonfarm payrolls fell by a large 63,000 in February, the second straight decline in employment. This is a clear sign of a recession. Stock futures are declining, suggesting another down day ahead of us on Wall Street.]

On Thursday, U.S. stocks sold off as the dollar hit new lows and oil reached new highs and mounting concerns about the finance sector. An announced default at Thornburg Mortgage didn't help matters. The Nasdaq Composite declined 52 points, or 2.3%, and S&P 500 dropped 29 points, or 2.2%, both hitting their worst levels since 2006. . The Dow Jones Industrial Average lost 214 points, or 1.75%.

At 8:30 a.m. EST, an hour before the opening bell, the government will release February's jobs report. According to estimates from Bloomberg, analysts expect the unemployment rate rose in February to 5%, a two-year high, as firing at builders and manufacturers increased. Nonfarm payrolls probably rose by 23,000. While the rise would be an improvement after last month's decline, it is still weak compared with an average 95,000 a month last year. Investors will dissect the numbers for any signs the economy is in a recession.Also affecting sentiment this morning are comments from two Fed officials: San Francisco Fed president Janet Yellen said Friday inflation in the United States is likely to moderate due in part from the U.S. economy slowdown. At the same time, Dallas Fed president Richard Fisher said that rising credit costs may not force the central bank to cut interest rates as deeply as it did in January.

Meanwhile, the dollar continued its decline, falling to the weakest in three years against the yen and near a record low versus the euro ahead of U.S. jobs report and on speculation the Federal Reserve will cut its key interest rate by as much as 100 basis points this month.

Overseas, markets generally sold off in response to Thursday's happenings on Wall Street. Japan's Nikkei 225 index fell 3.3% and Hong Hong's Hang Seng index closed down 3.6%. U.K.'s benchmark FTSE 100 and Germany's DAX sank 1.1%, France's CAC 40 declined 1%.

A bit of good news came from bond insurer Ambac (NYSE: ABK) as it said it raised $1.5 billion by selling stock and convertible bonds. Ambac is trying to maintain it AAA-rating.

Marvell (NASDAQ: MRVL) shares are down over 2.8% in premarket trading despite the chip maker swinging to a profit in its fiscal fourth quarter. Adjusted earnings were $122.9 million, or 20 per share, in the latest quarter, topping expectation of analysts polled by Thomson of 11 cents per share. Profit was boosted by better-than-expected sales amid solid demand for communications, storage and other products, the company said as it announced revenue rose 36% to $844.7 million, topping the $782.7 million analysts had expected.

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Earnings highlights: Dell, Sears, Staples, Tiffany, and others

Trey Thoelcke — 2007-12-01T15:10:00+00:00

Filed under: Earnings reports, Dell (DELL), Campbell Soup (CPB), Sears Holdings (SHLD), Staples Inc (SPLS), Marvell Technology Group (MRVL)

Here are a few highlights of this past week's earnings coverage from BloggingStocks:

Campbell Soup Co. (NYSE: CPB) first quarter profits fell, but the CEO remains optimistic.
Dell Inc. (NASDAQ: DELL) met EPS expectations, but shares fell in after-hours trading anyway.
Marvell Technology Group Ltd. (NASDAQ: MRVL) beat EPS estimates despite posting a loss.
Medtronic Inc. (NYSE: MDT) had a weak second quarter, but CEO remains optimistic about growth potential.
Sears Holdings Corp.'s (NASDAQ: SHLD) profit plunged, and the company warned of continuing difficulties.
Staples Inc. (NASDAQ: SPLS) beat low expectations, sending shares up.
Tiffany and Co. (NYSE: TIF) posted a solid third quarter and boosted its full-year earnings outlook.
Warner Music Group's (NYSE: WMG) profit declined; digital sales were up but CD sales were down.

Also, Jim Cramer offers perspective on the problem with Sears Holdings. And AOL Money & Finance's new dynamic stock quotes pages make keeping up with earnings, and any other stock-related information and news, much easier. Check it out.

Upcoming results to watch for include: AutoZone Inc. (NYSE: AZO), Novell Inc. (NASDAQ: NOVL), and National Semiconductor Corp. (NASDAQ: NSM).

Visit AOL Money & Finance for more earnings coverage.

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Marvell (MRVL) sequential growth rate disappoints

Brent Archer — 2007-11-28T12:25:00+00:00

Filed under: Major movement, Earnings reports, Forecasts, Bad news, Options, Technical Analysis, Marvell Technology Group (MRVL)

Marvell Technology Group Ltd. (NASDAQ: MRVL) stock is falling today after the company posted a third-quarter loss of $6.4 million after the close yesterday. While MRVL's revenue rose 46% to $758.2 million and EPS beat estimates, this revenue made its fourth-quarter guidance look weak. Wall Street was looking for 6% sequential growth rate in the current quarter; MRVL's forecast translated to 3% sequential growth. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on MRVL.

After hitting a one-year high of $21.85 in December, the stock hit a one-year low of $14.50 today. This morning, MRVL opened at $15.59. So far today the stock has hit a low of $14.50 and a high of $15.59. As of 10:50, MRVL is trading at $15.02, down $1.63 (-9.8%). The chart for MRVL looks bullish but deteriorating slightly, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bearish hedged play on this stock, I would consider a May bear-call credit spread above the $20 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 11.1% return in six months as long as MRVL is below $20 at May expiration. Marvell would have to rise by more than 33% before we would start to lose money.

MRVL hasn't been above $20 by more than a few cents since February and has shown resistance around $17 recently. This trade could be risky if the company's coming quarter also beats expectations, but even if that happens, this position could be protected by the resistance MRVL formed when it topped around $20 in July.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in MRVL.

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Before the bell: C, BAC, MRVL, AAPL, AMZN, BUD ...

Melly Alazraki — 2007-11-28T08:25:00+00:00

Filed under: Before the bell, Earnings reports, Analyst upgrades and downgrades, Apple Inc (AAPL), Dell (DELL), eBay (EBAY), Wal-Mart (WMT), Amazon.com (AMZN), Citigroup Inc. (C), Target Corp. (TGT), Anheuser-Busch Cos (BUD), Bank of America (BAC), Best Buy (BBY), duPont(E.I.)deNemours (DD), Marvell Technology Group (MRVL)

Before the bell: Stocks to continue rebound despite further trouble in financial sector

The Wall Street Journal reported [subscription] that a prominent investment banker suggested a merger between Citigroup (NYSE: C) and Bank of America (NYSE: BAC) about a month ago. While Citi reportedly rejected the proposal, and while the Journal says that Bank of America denied ever authorizing such an approach, Wall Street seems to like the report, lifting Citi shares further. Citi shares are up 0.8% in premarket trading and BAC shares up over 1.4%.

France Telecom (NYSE: FTE) will launch Apple's (NASDAQ: AAPL) iPhone today in late-night openings at 12 of its Orange stores. The rest will open stores rom 6:30 pm onwards. It will charge between €49 ($72) and €119 a month and €399 for the iPhone itself. iPhone will be sold for €549 if customers don't wish to sign up for a plan. The cost of unlocking the handset is €100.

Marvell Technology Group Ltd (NASDAQ: MRVL) shares are plunging 8.4% in premarket trading after the chipmaker reported a narrower-than expected quarterly net loss after the close Tuesday amid higher R&D costs. The company said it planned to cut operating costs to help meet financial targets by eliminating about 400 jobs, or 7% of its workforce mainly in the United States and Israel. Excluding one-time items, Marvell reported a profit of 14 cents per share, beating the consensus forecast of a profit of 8 cents a share.

U.S. online shoppers spent a record $733 million in a single day on Cyber Monday, according to comScore, a 21% increase over the same day last year. The number of online buyers also rose 38% from a year ago, but just like on Black Friday, the average dollar spend per buyer slipped 12%. The most trafficked sites included those belonging to Amazon.com (NASDAQ: AMZN), Wal-Mart Stores Inc (NYSE: WMT), Target Corp (NYSE: TGT), Dell Inc (NASDAQ: DELL) and Best Buy Co Inc (NYSE: BBY).
Most of the above aren't surprising, but the absence of eBay Inc. (NASDAQ: EBAY) perhaps is. eBay stock, however, closed up 4.9% yesterday after it said its payment service PayPal posted a 33% rise in online payment volume on Black Friday compared to last year.

Amazon yesterday also saw federal prosecutors withdrawing a subpoena seeking the identities of thousands of people who bought used books in its store. The withdrawal came after a judge ruled the customers have a First Amendment right to keep their reading habits from the government.
Notable calls:

UBS upgraded both Anheuser-Busch(NYSE: BUD) and Molson Coors Brewing (NYSE: TAP) from Neutral to Buy.
Soleil upgraded DuPont (NYSE: DD) from Hold to Buy.
Credit Suisse upgraded UBS (NYSE: UBS) from Neutral to Outperform.

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Option update: Analog Devices & Marvell volatility up into EPS

Paul Foster — 2007-11-27T16:05:00+00:00

Filed under: Options, Marvell Technology Group (MRVL)

Analog Devices (NYSE: ADI), a semi-conductor company is expected to report 3Q EPS of 39 cents, according to Thomson First Call. ADI call option volume of 4,600 contracts compares to put volume of 3,460 contracts. ADI December option implied volatility of 48 is above its 26-week average of 33 according to Track Data, suggesting larger price risks.

Marvell (NASDAQ: MRVL) is expected to report Q3 EPS of .08 cents tonight according to Thomson First Call. MRVL, a manufacturer of chips for hard disk drives and networking gear, is recently up 29 cents to $16.28. MRVL call option volume of 95,527 contracts compares to put volume of 14,814 contracts. MRVL December option implied volatility of 68 is above its 26-week average of 45 according to Track Data, indicating buyers of calls are hedging for upside share price gains.

Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Analyst initiations: ATHN, MRVL, BRCM and NVDA

Eric Buscemi — 2007-10-30T11:15:00+00:00

Filed under: Analyst reports, Sara Lee Corp (SLE), Analyst initiations, Broadcom Corp'A' (BRCM), Marvell Technology Group (MRVL)

MOST NOTEWORTHY: Athenahealth, Marvell Technology, Broadcom and Nvidia were today's noteworthy initiations:

Athenahealth (NASDAQ: ATHN) was initiated with a Neutral rating at Goldman Sachs. Jefferies started shares of the stock with a Buy rating and $46 target, as they believe their estimates could prove conservative given potential upside from new and existing physicians adopting athenaClinicals.
Kaufman Bros initiated Marvell Technology (NASDAQ: MRVL) with a Hold rating and $18 target, as they believe near-term growth prospects remain uncertain and recommends waiting for more favorable entry points.
The firm also initiated Broadcom Corporation (NASDAQ: BRCM) with a Hold rating and $35 target, and believes the company's growth prospects are priced into shares following the recent rally, and started shares of Nvidia Corporation (NASDAQ: NVDA) with a Buy rating and $42 target, as they believe the company's growth opportunity and competitive strength remain intact and would be buyers at current levels.

OTHER INITIATIONS:

Goldman started shares of Sara Lee (NYSE: SLE) with a Neutral rating and $16 target.
UBS initiated US BioEnergy (NASDAQ: USBE) with a Neutral rating.
Bear Stearns inititated CarMax (NYSE: KMX) with an Underperform rating.
Wachovia started Teekay Offshore Partners (NYSE: TOO) and Holly Energy Partners (NYSE: HEP) with Market Perform ratings.

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Analyst initiations: Auto and auto parts sector, MRVL and FTI

Eric Buscemi — 2007-09-13T11:14:00+00:00

Filed under: Analyst reports, General Motors (GM), Palm Inc (PALM), Ruth's Chris Steak House (RUTH), Marriott Intl'A' (MAR), Analyst initiations, Broadcom Corp'A' (BRCM), Marvell Technology Group (MRVL)

MOST NOTEWORTHY: The auto and auto parts sector, Marvell Technology and FMC Technologies were today's noteworthy initiations:

Citigroup initiated the auto and auto parts sector, and believes strong international growth provides selective opportunities. They upgraded General Motors Corporation (NYSE: GM) to Buy from Sell and Lear Corporation (NYSE: LEA) to Buy from Hold.
Marvell Technology Group (NASDAQ: MRVL) was initiated with a Neutral rating by Bank of America, which believes the company's earnings power will be limited in FY09.
FMC Technologies (NYSE: FTI) was assumed with an Overweight by JP Morgan, which believes that subsea development offers one of the best opportunities in the energy sector.

OTHER INITIATIONS:

Marriott International Inc (NYSE: MAR) was initiated with a Buy rating by Stifel.
Broadcom Corporation (NASDAQ: BRCM) was initiated with a Buy rating by Bank of America.
Ruth's Chris Steak House Inc (NASDAQ: RUTH) was initiated with an Outperform rating at Raymond James.
JMP Securities resumed coverage of Palm Inc (NASDAQ: PALM) with an Underweight rating.

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Options strategy: Marvell Tech. (MRVL) outlook not all rosy

Brent Archer — 2007-08-24T13:10:00+00:00

Filed under: Major movement, Earnings reports, Forecasts, Bad news, Options, Technical Analysis, Marvell Technology Group (MRVL)

Marvell Technology Group Ltd. (NASDAQ: MRVL) announced on Thursday after the close a Q2 net-loss due to higher operating expenses, despite revenue that increased 14%, better than Wall Street expectations. Marvell also forecast a growth margin of "slightly over" 48%, which is down from recent quarters and is a large factor in pushing the stock down today.

After hitting a one year high of $21.85 in December, the stock has been volatile over the past several months, hitting a one year low of $15.25 in May. This morning, MRVL opened at $16.00. So far today the stock has hit a low of $15.68 and a high of $16.28. As of 11:00, MRVL is trading at $15.77, down 2.08 (-11.7%). The chart for MRVL looks bearish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bearish hedged play on this stock, I would consider a January bear-call credit spread above the $20 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.7% return in 5 months as long as MRVL is below $20 at January expiration. Marvell would have to rise by more than 26% before we would start to lose money.

MRVL has not been above $20 since February and has shown some resistance around $19 recently. This trade could be risky if the company turns their situation around for their next earnings report, but even if that happens, MRVL could have trouble going higher than $19.50 where it topped in July.

Brent Archer is an options analyst and writer at Investors Observer.

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Options active on Marvell (MRVL) before earnings

Kevin Kersten — 2007-08-23T10:35:00+00:00

Filed under: Earnings reports, Texas Instruments (TXN), Options, Marvell Technology Group (MRVL)

Marvell Technology Group (NASDAQ: MRVL) is up $0.72 to $17.69. Marvel Technologies provides microprocessor integrated circuits competing against companies like Texas Instruments (NYSE: TXN). Yesterday in options, there were 84,483 contracts traded; of them 16,170 contracts were puts while 68,313 contracts were calls. For all months and all strikes of puts, there are 154,000 contracts open, while for calls, there are 555,000 contracts open. This means that the put/call open interest ratio for MRVL is 0.28.

Call option activity is generally an indicator of bullish speculation on a stock. Call options give the buyer the right to purchase the stock at a set price. Put options are typically bearish bets and give the buyer the right to sell the stock at a designated price.

Since calls outnumber puts so much, it may indicate expectation that the earnings numbers could be good for Marvell. The two most active call contacts yesterday were right at the money. Marvell Tech. Group moved 46,900 contracts on the September 17.50 calls. Marvell Tech. Group traded 6,500 contracts on the November 17.50 calls.

Some of the most interesting metrics for the company show a high growth in sales, but a low profit margin. The company's operating margin is at 3.5% compared to 16.7% for the industry and its profit margin is at -0.5% compared to 19.6% for the industry. Revenue growth is at 50.6% compared to 14.63% for the industry. The stock has moved from $15.25 to $21.85 over the last year and is now trading in the middle of that range. A look at the fundamentals show some great potential for the stock. The company reports earnings after the close today.

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Disclosure note: Mr. Kersten owns and or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.

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Monday Market Rap: RIMM, CROX, CFC, MO & MRVL

Kevin Kersten — 2007-08-20T18:05:00+00:00

Filed under: Microsoft (MSFT), Dell (DELL), Altria Group (MO), Countrywide Financial (CFC), Research in Motion (RIMM), Lowe's Cos (LOW), Washington Mutual (WM), Options, Marvell Technology Group (MRVL), Crocs Inc (CROX)

After relaxing from the swift market action last week and surprise Fed move Friday; there was a little tug of war in the market place today as investors contemplated where to go from here. We closed with a mixed market.

The NYSE had volume of 3.2 billion shares with 2,000 shares advancing while 1,324 declined for a gain of 11.22 points to close at 9,326.21. On the NASDAQ, 1.7 billion shares traded, 1,574 advanced and 1,485 declined for a gain of 3.56 to 2,508.59.

Research in Motion (NASDAQ: RIMM) rose $15.47 (7%) to $235.99. Crocs (NASDAQ: CROX) rose $4.91 (10%) to $56.13. Countrywide Financial Corp (NYSE: CFC) fell $1.62 (-8%) to $19.81 on rumored layoffs. Lowe's Companies (NYSE: LOW) rose $1.63 (6%) to $28.50 on a 9% rise in profits.

In options there were 4.8 million puts and 5.4 million calls traded for a put/call open interest ratio of 0.88. Altria Group (NYSE: MO) moved heavy volume on the September 70 calls (MOIN) with over 31,000 options trading. Dell Computer (NASDAQ: DELL) saw heavy volume on the September 27.50 calls (DLQIY) with over 20,000 options trading. Marvell Technologies (NASDAQ: MRVL) crossed heavy volume on the September 17.50 calls (UVMIW) with over 20,000 options trading. Microsoft Corp. (NASDAQ: MSFT) saw heavy volume on the January 30 calls (VMFAF) with over 20,000 options trading. Washington Mutual (NYSE: WM) saw heavy volume on the October 20 puts (WMVD) with over 26,600 options trading.
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Kevin Kersten is an Options Analyst with InvestorsObserver.com. Disclosure note: Mr. Kersten owns and or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.

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