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IDS World Markets Tues 24th April 07


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In the Fundamentals vs Technicals argument, we have AMD up about 3% today on really horrible news. Maybe it's one of those pump the stock price up so that the bond offering looks more attractive thingies. Then there's IBM near triple digit land with a so-so earnings report last week and slowing growth. And of course the homies after that big drop in the housing number this morning.

 

On the fundamentals do seem to work side, there's CVS which has busted through 52-week highs and on its way to $39 IMO and VLO which has been perky as of late.

 

ONT has made it back to $2.42 though I'm terrified to hold it long again.

 

Disclosure: short AMD, long CVS and VLO.

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IBM up on buyback and divvie increase. IBM divvie now up to a whopping 1.4% per annum, well below the overall SPX and INDU divvie yields. Median divvie yield on the Spooz only 1.1%. Over 100 companies in the SPX have no divvie at all.

 

Guess folks are betting that they'll make up the difference on IBM thru share price appreciation. Worth mentioning that IBM remains 27% below its ATH from eight years ago. Hopefully that massive divvie has helped sharehuggers ease the pain since 1999.

 

But for now, it matters nada. Looks like IBM wants 103-105.

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I remember shorting it at $100+high teens back in January 2002 I think. Along with CA (Creative Accounting) The good old (bear) days when you could short just about anything except Panera Bread.

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