TheStreet Search RSS Feed: Michael Baron

Market Preview: Crossing the Canyon

Thu, 29 Nov 2012 19:23:21 EST

NEW YORK (TheStreet) -- There's likely weeks of posturing in between now and then but most market watchers are expecting the politicians will be able to hammer out a budget compromise and avoid the fiscal cliff.

Deutsche Bank, for one, is recasting the cliff as a canyon and the firm outlined its scenario for a strong run for the S&P 500 in 2013 in research on Thursday.

"Given the election results -- which raised the risk of higher taxes, especially on dividends -- we consider the S&P 500 at 1400 fair until clarity emerges on new legislation that mitigates the fiscal cliff," said analyst David Bianco Thursday in a note to clients. "If this legislation reduces 2013 fiscal drag to 1.5% or less and the top tax rate hikes from what is scheduled, then the S&P 500 should rally to 1500 in early 2013 and put 1600 well within reach for 2013 end. Thus, we see 2012's year-end fiscal cliff as being more of a canyon with attractive S&P returns on the other side." ...

Click to view a price quote on ZNGA.

Click to research the Internet industry.

Market Preview: Hurry Up and Agree

Wed, 28 Nov 2012 17:42:58 EST

NEW YORK (TheStreet) -- Judging by Wednesday's 200-point plus turnaround in the Dow Jones Industrial Average, investors are buying into the idea that Democrats and Republicans will be able to come together this holiday season and stop short of the fiscal cliff.

That's especially good news for the economy because a speedy resolution will go a long ways toward getting small businesses back in the spending mood. Deutsche Bank pointed out that how important that is for the economy in a note to clients Wednesday.

"There is ample evidence that the fiscal cliff is already having a meaningful impact on business sentiment, especially small businesses which account for nearly 75% of hiring in the US," the firm said. "In the latest NFIB survey, 39% of small businesses indicated that government regulations and taxes were their number one concern, eclipsing 'poor sales' which has been their main issue for most of the past four years." ...

Click to view a price quote on BKS.

Click to research the Specialty Retail industry.

Market Preview: Beyond the Cliff

Tue, 27 Nov 2012 17:52:37 EST

NEW YORK (TheStreet) -- The direction of stocks may continue to be held hostage to the fiscal cliff for the immediate future but that's not stopping some folks from sticking to their bullishness about 2013.

Canaccord Genuity equity strategist Tony Dwyer backed a target of 1650 for the S&P 500 for next year on Tuesday. That view would represent nearly 18% appreciation from Tuesday's close at 1399 as well as a new all-time high.

"History, global monetary policy, and the fundamental sweet spot of U.S. economic data argue strongly for better performance as we move through the end of Q4/12 and into next year," said Dwyer. "We remain optimistic due to further evidence of sustainable improvement in (1) consumer sentiment, (2) employment, (3) credit availability and (4) housing." ...

Click to view a price quote on AEO.

Click to research the Retail industry.

Market Preview: Getting Conservative

Mon, 26 Nov 2012 20:10:11 EST

Updated from 5:54 p.m. ET to include information on the approval of a debt deal for Greece by the International Monetary and eurzone officials, as well as news about Dollar General and Las Vegas Sands.

NEW YORK (TheStreet) -- There's a little more than a month left in 2012, and at least one firm thinks investors shouldn't count on much more upside for stocks from here.

"We suspect that the largest gains for the year are behind us, and recommend conservative positioning for the remainder of the year," wrote Bank of America/Merrill Lynch in commentary on Monday. "Our near term model signals caution, as earnings revisions and management guidance ratios have deteriorated amid a choppy earnings season. And an unusually high number of macro risks appear to be looming, including the US fiscal cliff, Europe and EM growth disappointments, and tensions in the Middle East." ...

Click to view a price quote on GMCR.

Click to research the Food & Beverage industry.

Stocks Rally; Dow Reclaims 13,000

Fri, 23 Nov 2012 13:36:12 EST

NEW YORK (TheStreet) -- The major U.S. equity averages soared as long checkout lines and positive economic data out of China and Germany supplied the fuel for a Black Friday lift-off.

The rally escalated throughout the session despite news of unsuccessful budget talks between European Union leaders in Brussels. A brief statement from the European Council pushed the timetable for a deal into 2013, stating: "The bilateral talks and the constructive discussion within the European Council show a sufficient degree of potential convergence to make an agreement possible in the beginning of next year."

The Dow Jones Industrial Average surged nearly 173 points, or 1.35%, to close at 13,009, the first finish above 13,000 since Nov. 6. The blue-chip index rose 3.35% for the week and is now up 6.48% in 2012. ...

Click to view a price quote on ^DJI.

Market Preview: Let's Make a Deal

Tue, 20 Nov 2012 20:33:14 EST

Updated from 5:38 p.m. ET to include information on lowered guidance from Scholastic.

NEW YORK (TheStreet) -- Are we really in for another month of speculation about the fiscal cliff?

Credit Suisse thinks so, saying it doesn't believe a deal is likely to occur until mid-December. Yikes. And, as stated yesterday, this agreement is likely to be more stop-gap than ultimate problem solver. ...

Click to view a price quote on DE.

Click to research the Industrial industry.

Market Preview: Holding Out for a 'Grand Bargain'

Mon, 19 Nov 2012 18:15:19 EST

NEW YORK (TheStreet) -- Enjoy the spotlight while you can fiscal cliff because talk of the need for a grand bargain on Capitol Hill is already leaping into Wall Street's lexicon.

Most market observers expect the Democrats and Republicans will show they learned their lesson about playing chicken with the nation's finances during the debt ceiling debacle and come to some compromise in a timely manner in order to avoid the fiscal cliff, which refers to a bevy of tax increases and spending cuts that will go into effect on Jan. 1 unless the parties can hammer out a deal.

There is a fear though that U.S. legislators will simply borrow a page from their procastinating counterparts across the pond and find a way to delay, rather than solve, the country's financial problems. What's needed instead is a ... wait for it ... grand bargain that will be more than a band-aid. ...

Click to view a price quote on HPQ.

Click to research the Computer Hardware industry.

Market Preview: The Trend Turns Ugly

Thu, 15 Nov 2012 20:30:18 EST

Updated from 5:28 p.m. ET to include latest share prices, additional information on Starbucks's buyback program and President Obama's plan to meet with congressional leaders on Friday.

NEW YORK (TheStreet) -- It may be a stretch to say that old market adage about the trend being your friend applies right now but think of it this way: Your friend is telling you to stay away from stocks.

The major U.S. equity averages have spent the week in the red with most market watchers in agreement that the overarching reason is growing concern about whether the Democrats and Republicans will be able to compromise before the year's out and avoid sending the country over the fiscal cliff. That's it. Earnings season is winding down, the eurozone continues to be a mess, nothing new there. ...

Click to view a price quote on DELL.

Click to research the Computer Hardware industry.

Market Preview: Pressed for Time

Wed, 14 Nov 2012 21:54:07 EST

Updated from 6:39 p.m. ET to include additional information on Texas Instruments and NetApp.

NEW YORK (TheStreet) -- The ugly selling continues and it's hard to find a reason why the tide will turn anytime soon.

The kneejerk reaction to President Barack Obama's re-election has seen plenty of follow-through with the Dow Jones Industrial Average now down in five of the past six sessions and the Nasdaq Composite qualifying for a correction by shedding 11% off its post-QE3 high for 2012. ...

Click to view a price quote on WMT.

Click to research the Retail industry.

Market Preview: A Warning Signal

Tue, 13 Nov 2012 20:32:32 EST

Updated from 5:38 p.m. ET to include an updated share price for Cisco's stock in after-hours action and analyst commentary on the Fed minutes.

NEW YORK (TheStreet) -- The bulls have been in control for the majority of 2012 but it's getting increasingly difficult to stay optimistic these days.

Especially after an ugly finish like the one witnessed on Wall Street Tuesday. ...

Click to view a price quote on CSCO.

Click to research the Computer Hardware industry.

Market Preview: The Hardest Part

Mon, 12 Nov 2012 18:02:07 EST

NEW YORK (TheStreet) -- Stocks stalled out to start the week, even as market strategists opined about where equities are headed next in this post-election world of fiscal cliff worries.

Sam Stovall, chief equity strategist at S&P Capital IQ, noted a rather disturbing similarity between Wall Street's reaction to President Barack Obama winning a second term and Harry Truman's surprise victory in 1948.

"Both 1947 and 2011 were pre-election years in which the market ended the year almost exactly where it started," he wrote in emailed commentary on Monday. "Cooperation between Congress and the President was rare, and the traditional third-year 'priming of the economic pump' before the election was absent. As a result, 1947 and 2011 are the only pre-election years since 1900 that recorded 0.0% price changes, versus the more normal 11.1% gain, which is twice the average return for years 1, 2 and 4 of the presidential cycle." ...

Click to view a price quote on HD.

Click to research the Retail industry.

Lockheed Martin, Myrexis: After-Hours Trading

Fri, 09 Nov 2012 17:51:49 EST

NEW YORK (TheStreet) -- Shares of Myrexis were surging in late trades Friday after the company announced plans to liquidate itself and distribute the resulting proceeds and all of its remaining cash to shareholders.

The stock was last quoted at $2.89, up 23.5%, on volume of nearly 270,000, according to Nasdaq.com.

"After evaluating the Company's strategic options, the Board of Directors reached the conclusion that it is in the best interest of the shareholders to dissolve and liquidate the Company," said Gerald Belle, the company's chairman. ...

Click to view a price quote on MYRX.

Click to research the Drugs industry.

Market Preview: Sick of the Cliff?

Thu, 08 Nov 2012 18:28:26 EST

NEW YORK (TheStreet) -- Sick of hearing about the fiscal cliff yet? Hope not because the noise isn't about to stop anytime soon.

Like the whole debt ceiling debacle, most analysts don't expect the federal government to actually go over the cliff, a term that refers to the combination of expiring tax cuts and spending reductions set to go into effect in 2013. But again like the debt ceiling debacle, there's the potential for a lot of posturing and angst that could very well bring America much closer to the edge of the cliff than anyone is comfortable with.

And let's not forget, sometimes the unexpected comes to pass; often with disastrous consequences. On Thursday, the Congressional Budget Office, a nonpartisan group, offered up this unpleasant scenario, basically saying that going over the cliff would push the U.S. economy into recession. ...

Click to view a price quote on DIS.

Click to research the Media industry.

TheStreet Doubles Adjusted EBITDA

Thu, 08 Nov 2012 16:12:16 EST

NEW YORK (TheStreet) -- TheStreet, the publisher of this Web site, reported a third-quarter loss of $4.2 million, or 13 cents a share, on Thursday, wider than its year-ago loss of $1.5 million, or 5 cents a share.

The New York City-based digital financial media company said revenue came in at $11.6 million in the latest quarter, down 19% from last year's equivalent total of $14.3 million.

Revenue from the company's subcription services business dipped 9% to $9.1 million, while media revenue dropped 43% year-over-year to $2.5 million. ...

Click to view a price quote on TST.

Click to research the Internet industry.

Market Preview: Buckle Up

Wed, 07 Nov 2012 18:04:36 EST

NEW YORK (TheStreet) -- So much for the relief rally.

Turns out there was a worse result than no result in the presidential election on Tuesday: More of the same! Another four years for Barack Obama, along with a Republican-controlled House and the Senate remaining in the hands of the Democrats brought out the sellers on Wednesday, and it suddenly looks like the rest of 2012 may be a wild ride.

"We believe that this kicks off a period of uncertainty surrounding the fiscal cliff and U.S. deficits," wrote Jonathan Golub, chief U.S. equity strategist at UBS, on Wednesday. "We believe that this debate will be messy and drawn out (likely pushed out beyond the 12/31 deadline), resulting in increased investor angst." ...

Click to view a price quote on DIS.

Click to research the Media industry.