MomentumOptionsTrading.com Weekly Wrap for 4/22/12

11:30pm (EST)

1.  Market Summary 

2. Ubiquiti Networks (UBNT) – A High-flying IPO

3.  Earnings 

4.  Weekly Wrap Portfolio Update 

5.  Week Ahead

(To view the charts, please log into the Members Area and go to the Weekly Wrap Premium section.  We are running a little late tonight so please give us an hour.)

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1.  Market Summary   

“Another clue and possibly the final piece of the bear’s puzzle will be if they get a negative close on Monday.  The S&P has not closed down on back-to-back Friday’s and Monday’s all year.  The prior THURSDAY and Monday were down days and this past Friday was a loser.  If this Monday ends in a bear victory it could mean money is moving to the sidelines and our predication, or warning of a correction could be on the horizon.

We like to remember the old saying that stocks or the market often take the stairs higher but sometimes tend to take the elevator on the way back down.  If volatility picks up like we think it will and the market continues lower, we will be on track for another sweet week.”  (4/15/2012 Weekly Wrap/ Monday Morning Outlook)

The Dow added 65 points, or 0.5%, to settle at 13,029.  The blue-chips reached a high of 13,131 on Tuesday and 13,082 on Friday.  The close above the 50-day MA was a bonus and a break above 13,200 would get our 13,500 target back into play but it will take some major good news from the Dow components reporting earnings this week to get past resistance.  The index traded down to 12,896 on Thursday and another failed test at 13,200 will likely force the action back down to 12,800-12,750.  A break below this level gets 12,600-12,500 back into picture, followed by 12,350-12,300.  The Dow started the week at 12,849 and added 180 points, or 1.4%, by Friday’s close.  For the year, the blue-chips are up 812 points, or 6.6%.

The S&P 500 gained a little over a point-and a half, or 0.1%, to settle at 1,378.  The index traded to a high of 1,387 on Friday and 1,392 on Tuesday.  Wednesday and Thursday’s high was 1,390 so we are seeing lower highs and lower lows as 1,400 represents a brick wall of resistance.  However, a move past this level would be bullish up to 1,425.  The low came in at 1,365 to start the week.  The close below the 50-day MA was bearish and a move below 1,375 gets our near-term target of 1,350 in play.  From there, a trip to 1,325-1,300 is a strong possibility.  The S&P 500 opened Monday at 1,370 and gained 8 points, or 0.6%, for the week.  For 2012, the index is up 121 points, or 9.6%.   

 

The Nasdaq slipped 7 points, or 0.2%, to end at 3,000.  Tech finished the week below its 50-day MA and traded down to 2,975 on Monday.  The index surged to a high of 3,052 on Tuesday’s rally and 3,058 on Thursday’s pop higher but closed below 3,050 on those days.  The bears continue to push the March lows and a break below 2,950 will likely lead to a test down to 2,850.  A 10% correction from the March peak of 3,134 would be in the 2,825 area.  The Nasdaq was at 3,011 before Monday’s opening bell and fell 11 points, or 0.4%, for the five trading sessions.  YTD, Tech is higher by 395 points, or 15.2%.

The S&P Volatility Index ($VIX, 17.44, down 0.92) was just under 20 to start the week and reached a high of 20.47 on Monday and Friday’s low was 16.97.  The 17.50 level continues to be the battle ground with a move above 20 bearish while a dip below 16 would be bullish.

The Russell 2000 gained 5 points, or 0.6%, and closed at 804 on Friday.  The index traded down to 791 on Monday but closed at 810 on Tuesday which is becoming strong short-term resistance.  Wednesday’s low was 800 and Thursday was 794.  We are looking for the bears to push 780 which would get 750 into play.  A move above 810 would be bullish.  The Russell gained 8 points, or 1% for the week, after coming in at 796.  The index is up 56 points, or 7.5%, for the year but the money did not rotate out of the big cap names into the small caps and was another warning sign the market was headed lower.        

There are two things we are watching this week and they are the Fed and earnings.

The most important headlines will be out on Tuesday and Wednesday and what the Fed says and does.  The employment numbers have been getting worse with the 4-week jobless claims average starting to move up.  There hasn’t been much talk of QE3 from Bernanke but he could feel the need to say something because the Fed’s next meeting isn’t scheduled until June.  This is when “Operation Twist” expires so there could be some talk of extending it.

Netflix (NFLX, $106.11, down $0.98) reports earnings on Monday along with Texas Instruments (TXN, $32.47, down $0.17).  The latter could be a good read on what Apple (AAPL, $572.98, down $14.46) might say when they report earnings after the close on Tuesday. 

There are 44 analysts who “cover” Apple and on average, they are looking for $10 a share, on revenue of $36.63 billion.  The low estimates are $8.48 a share on revenue of $32.79 billion while the high numbers are $11.80 a share on $41.09 billion is sales.

Apple is going to have to do at least $11.80 a share and top $41 billion in revenue or there could be a serious selloff.  If they miss numbers, which we seriously doubt, Tech will get a major correction.     

Caterpillar (CAT, $107.73, up $0.37) reports earnings on Wednesday as well as Boeing (BA, $73.55, up $0.45).  Caterpillar is expected to do $2.13 a share on revenue of $16.22 billion, on average, by the 21 analysts who follow the stock.  While we expect them to say mostly good things about the global economy, we are looking for cautious guidance going forward which could push shares below $100.  If not, resistance at $110 will be cleared and the Dow will roll as CAT is a big Dow component. 

United Parcel Service (UPS, $80.27, up $0.41) will announce their numbers on Thursday, before the bell, along with Amazon.com (AMZN, $189.98, down $1.12).

This will be one of the biggest weeks as far as earnings and any negative surprises could have a ripple effect on the indexes as each one of these stocks is a key component with heavy weightings. 

Ben Bernanke has a good poker face and he will need to be strong and sturdy in his words, no matter what he says about the economy.  If he cracks and fails to mention the Fed’s “backup” plan then the market could suffer as the bulls see no QE3 relief.

The charts look bearish, and following a 3-week trading range, this could be the week that we break out of it.  To us, the upside appears more limited than the downside but the old market saying of “don’t fight the Fed” may come into play if Bernanke pulls a rabbit out of his hat.  We could see one last retest of the year highs but resistance is going to be hard to overcome and the companies reporting earnings are going to have to come in with some superb numbers.

Futures are showing a slightly lower open as we head to press but it is early and the European markets have yet to open. Dow futures are down 25 points to 12,763 while the S&P 500 futures are lower by 3 points to 1,362.  Nasdaq 100 futures are off 6 points to 2,687.   

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Key of Technicals Used In Following Articles

 

2. Ubiquiti Networks (UBNT) – A High-flying IPO

 

 

The $3 billion maker of wireless networking and video surveillance equipment based in San Jose, California launched its IPO on October, 2011, selling 7 million shares at $15.  Since then, the stock has surged about 115%.  The company offers high performance radios, antennas, and networking solutions and sells them mainly to emerging markets.  Its products are generally cheaper to install than fiber-optic equipment and cable, and thus is appealing to these markets.  Radios can be customized for licensed private networks, vehicle-based communications, and military communications.  Technology platforms include AirMax, UniFi, AirVision, and AirFiber.

 

MIMO’s (multiple-input and multiple-output) are antennas placed at both the transmitter and receiver to improve communication performance.  Base stations offer enhanced power, speeds, sensitivity, and survival in multiple conditions.  The Nanostation can be used for networking or video surveillance networks.  AirMax systems can work at the 900MHz, 2.4GHz, 3GHz, 5GHz, 6GHz and 10GHz bands and has seen eight consecutive quarters of double-digit growth. 

Once the UniFi Controller software is installed on a Mac or PC, the UniFi Controller can be accessed through any device using a Web browser.  The UniFi Controller allows one to map out networks, quickly manage system traffic, and equip thousands of UniFi Access Points.  Revenues have tripled since introduction.

One catalyst that could push the stock down is the result of the company getting into hot water over sales to countries like Iran, Cuba, Syria, and North Korea.  Not only were such sales a violation of U.S. sanctions, some of the sold components did not have appropriate export authorization.  Its TDMA radio technology could be configured to work with missile systems.  As a result, it could face penalties including losing its right to export, which will greatly hurt the company, since about 70% of sales are to foreign countries.  It cut off ties to one of its distributors in February after it continued sales to Iran even after being told to stop.  It got another distributor to agree to comply with U.S. sanction laws.  Plus, the company disabled software downloads in certain countries.  Despite all these efforts to clear itself, the U.S. government is reviewing it.  Not a good sign.

Another negative is that on April 10th, IPO lockup restrictions expired.  This means that insiders can sell their stock.  Only a small portion of the total outstanding shares is out into the public so brace for possible dilution.

The company will release 3rd quarter 2012 earnings after market close on Tuesday, May 1.  Revenue will likely rise, as it has risen sharply in each of the last five years.  Below is a chart of the company’s revenue and expenses.   

 

The gross profit (the difference between revenue and the cost of revenue) seems to be growing, which is a good thing.  Further, the net income (the difference between revenue and total expenses) is also growing.  However, analysts expect revenue to slow in the 3rd and 4th quarters.  This may cause gross profit to contract.

Revenue was divided into four segments.  All numbers are in millions of dollars.

 

1st quarter 2010

2nd quarter 2010

1st quarter 2011

2nd quarter 2012

AirMax

$17.080 (50%)

$25.637 (57%)

$49.835 (63%)

$52.939 (60%)

Other systems

$11.486 (34%)

$11.495 (25%)

$15.499 (20%)

$22.480 (26%)

Embedded radios

$3.043 (9%)

$3.452 (8%)

$3.225 (4%)

$2.567 (3%)

Antennas/other

$2.473 (7%)

$4.503 (10%)

$10,608 (13%)

$9.831 (11%)

 Revenue was also divided by geographic region.  All numbers are in millions of dollars. 

 

1st quarter 2010

2nd quarter 2010

1st quarter 2011

2nd quarter 2012

United States

$9.8

$13.6

$24.4

$20.7

North America1

$10.194 (30%)

$13.887 (31%)

$24.941 (32%)

$21.440 (24%)

South America

$9.823 (29%)

$9.012 (20%)

$19.835 (25%)

$24.250 (28%)

EMA

$10.203 (30%)

$19.093 (42%)

$24.783 (31%)

$30.356 (35%)

Asia Pacific

$3.862 (11%)

$3.095 (7%)

$9.608 (12%)

$11.771 (13%)

1 = includes United States                                  EMA = Europe, Middle East, Africa 

AirMax sales have provided the bulk of revenue, but it fell slightly percentage-wise in the 2nd quarter of 2012.  Revenue is distributed almost equally among geographic regions except Asia Pacific, which seems to be slowly growing.  Cause of concern could be how much a slowdown in Europe would affect the company.

Compared to its top publicly-traded competitors and its industry, the company looks overvalued, with negatives (red) outnumbering positives (green) 10 to 8.

ALVR = Alvarion                   ANTP = Phazar                      

CRNT = Ceragon Networks    PCTI = PCTEL               Industry = Wireless Communications

On the negatives, the company’s revenue is much smaller than its market cap, while the competitors and industry had either revenue greater than or close to market cap.  The debt is one of the highest among listed competitors, and the price/sales is way higher than any of the companies listed.  The price/book and forward PE are also high compared to competitors.  But the biggest red flag is the high short interest.  A lot of investors are betting against this stock.  Historically, a stock with a 50% short interest often falls.  Plus, why do insiders seem to not like the stock?  Insider ownership is low for a company of its size.

On the positives, cash is one of the highest listed.  The revenue growth, gross margin, operating margin, and profit margin are all high.  A big positive is the high current ratio, which means that the company can cover current liabilities better than competitors.  Also, institutions are buying, although institutional trading is low.

At $32.14, the stock is between its mean target of $32.00 and its high target of $36.00 made by the 6 analysts recorded by Thomson/First Call.  The median target is also $32.00, and its low target is $26.00.  Using a scale of 1.0 as a strong buy and 5.0 as a sell, the average rating of the stock was 1.8, unchanged from a week ago.

 

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3. Earnings

The companies in BOLD, we are looking at as possible trades and we may list call or put options on them in our Daily Newsletter.  If they become official recommendations, we sent out Trade Alerts or include them in our 9am and 1pm updates that come out during the week (Quotes are as of Friday’s close, 4/20/12)

 

MONDAY

Align Technology (ALGN, $27.94, down $0.17), Alliance Fiber Optic Products (AFOP, $8.90, down $0.09), Ameriprise Financial (AMP, $53.45, down $0.11), Arrhythmia Research Technology (HRT, $3.48, up $0.17), Asia Pacific Wire & Cable (APWC, $3.20, up $0.14), BancorpSouth, (BXS, $12.95, up $0.12), Bank of Hawaii Corporation (BOH, $47.63, up $0.56), Bank of Marin Bancorp (BMRC, $37.31, up $0.99), Banner Corporation (BANR, $20.95, up $20.95), BBCN Bancorp, (BBCN, $10.58, up $0.03), BE Aerospace (BEAV, $44.80, up $0.60), Brinker International (EAT, $27.90, up $0.24), Check Point Software Technologies (CHKP, $64.05, up $0.19), China Natural Resources (CHNR, $7.15, Flat), Computer Task Group (CTGX, $15.17, up $0.16), ConocoPhillips (COP, $72.88, down $0.01), Crane (CR, $47.68, up $0.86), Deltic Timber (DEL, $61.98, up $2.17), DR Horton (DHI, $15.38, up $0.76), Ethan Allen Interiors (ETH, $22.05, down $1.56), F.N.B. Corporation (FNB, $11.70, up $0.17), First Defiance Financial (FDEF, $16.59, up $0.57), First Interstate Bancsystem (FIBK, $13.95, up $0.35), First M&F (FMFC, $4.50, up $0.18), First Savings Financial Group, (FSFG, $17.56, down $0.21), Firstbank Corporation (FBMI, $8.35, Flat), Hasbro (HAS, $35.92, up $0.14), Health Management Associates (HMA, $7.25, down $0.19), Healthstream (HSTM, $26.22, up $0.39), Heartland Financial USA (HTLF, $17.00, up $0.70), Heritage Oaks Bancorp (HEOP, $4.94, down $0.11), Hexcel Corp. (HXL, $26.46, up $0.44), Illumina (ILMN, $44.36, up $0.30), Imperial Holdings, (IFT, $2.66, Flat), J&J Snack Foods. (JJSF, $50.46, up $0.10), JDA Software (JDAS, $28.61, up $0.10), Knoll (KNL, $14.88, up $0.04), Merchants Bancshares (MBVT, $26.95, up $0.35), MGIC Investment (MTG, $3.68, down $0.22), Netflix (NFLX, $106.11, down $0.98), Oriental Financial Group (OFG, $11.27, up $0.03), Owens & Minor (OMI, $29.74, up $0.06), Peoples Bancorp of North Carolina (PEBK, $7.80, down $0.17), Potlatch Corporation (PCH, $31.09, up $0.57), Provident New York Bancorp (PBNY, $8.00, up $0.18), Radcom (RDCM, $5.17, up $0.07), Rent-A-Center Inc. (RCII, $36.76, down $0.29), Roper Industries (ROP, $98.14, up $1.19), S&T Bancorp (STBA, $21.32, up $0.41), Sanmina-SCI (SANM, $10.58, down $0.08), Sierra Bancorp (BSRR, $9.74, up $0.24), Sonic Automotive (SAH, $17.93, up $0.34), Southwest Georgia Financial (SGB, $8.29, down $0.04), Sterling Bancorp (STL, $9.31, up $0.18), SunTrust Banks, (STI, $22.60, down $0.14), Teche Holding Company (TSH, $36.80, Flat), Tennant Company (TNC, $47.84, up $0.11), Texas Instruments (TXN, $32.47, down $0.17), Thomas & Betts (TNB, $71.92, up $0.04), Tower Financial Corporation (TOFC, $10.42, down $0.08), TrustCo Bank NY (TRST, $5.63, up $0.04), Ultra Clean Holdings (UCTT, $7.51, down $0.24), Volterra Semiconductor Corporation (VLTR, $32.79, down $1.27), W.R. Berkley Corporation (WRB, $37.90, up $0.08), Washington Trust Bancorp (WASH, $23.49, up $0.45), West Coast Bancorp (WCBO, $19.92, up $0.56), Wolverine World Wide (WWW, $37.89, up $0.80), Woodward, (WWD, $40.88, up $0.17), Xerox (XRX, $7.87, down $0.04), Zions Bancorp (ZION, $20.54, down $0.39)

TUESDAY

3M (MMM, $87.48, up $0.68), Acadia Realty Trust (AKR, $22.47, up $0.27), Accuride (ACW, $7.50, up $0.02), ACE Limited (ACE, $75.30, up $0.46), Aegion Corporation (AEGN, $17.07, down $0.04), AFLAC (AFL, $41.62, down $0.67), Air Products & Chemicals (APD, $89.75, up $0.49), AK Steel Holding (AKS, $7.53, down $0.07), Alexion Pharmaceuticals, (ALXN, $91.76, up $0.79), American Campus Communities (ACC, $44.67, up $0.76), Ames National Corporation (ATLO, $21.73, up $0.21), Amgen (AMGN, $68.47, up $1.34), AmSurg (AMSG, $27.39, up $0.32), Anaren (ANEN, $16.44, up $0.11), Anixter International (AXE, $70.31, up $0.66), Apple (AAPL, $572.98, down $14.46), Ashland (ASH, $64.28, up $0.23), Associated Estates Realty (AEC, $16.74, up $0.20), Astec Industries, (ASTE, $34.81, up $0.44), AT&T (T, $30.86, up $0.12), Baidu, (BIDU, $144.91, up $0.17), Baker Hughes Incorporated (BHI, $40.46, down $0.56), The Bancorp (TBBK, $10.12, up $0.09), Barrett Business Services (BBSI, $19.70, up $0.45), Berkshire Hills Bancorp (BHLB, $23.14, up $0.34), BOK Financial Corporation (BOKF, $54.69, up $0.74), Boyd Gaming (BYD, $8.25, up $0.14), Buckeye Technologies (BKI, $32.86, up $0.19), Buffalo Wild Wings (BWLD, $84.09, up $0.10), CR Bard (BCR, $98.07, down $0.23), CH Robinson Worldwide (CHRW, $66.52, up $0.38), Capella Education (CPLA, $34.32, down $0.22), Carlisle Companies (CSL, $50.46, up $0.46), CBRE Group (CBG, $18.37, down $0.09), Celadon Group (CGI, $14.81, up $0.19), Celanese Corporation (CE, $48.05, down $0.07), Centene (CNC, $46.40, up $0.77), Century Aluminum (CENX, $8.11, down $0.03), Ceradyne (CRDN, $31.91, up $0.83), Chicago Bridge & Iron Company N.V. (CBI, $43.59, up $0.31), CIT Group (CIT, $39.85, down $0.14), Coach, (COH, $75.67, up $0.84), Community Bank System (CBU, $28.58, up $0.30), CTS Corporation (CTS, $10.79, up $0.06), Cymer (CYMI, $48.53, down $0.05), DDI (DDIC, $12.95, down $0.01), Delphi Automotive PLC (DLPH, $31.87, up $0.01), DeVry (DV, $32.26, down $0.07), Duff & Phelps Corporation (DUF, $15.86, up $0.28), Dynamics Research (DRCO, $9.54, up $0.34), Edwards Lifesciences (EW, $73.37, up $0.44), Hawaiian Holdings (HA, $5.04, down $0.14), Healthways (HWAY, $6.77, up $0.15), Heidrick & Struggles International (HSII, $21.16, up $0.45), Home Bancorp, (HBCP, $17.24, up $0.34), HomeAway (AWAY, $24.06, down $0.07), Human Genome Sciences (HGSI, $14.36, up $0.19), IDEX Corporation (IEX, $41.49, up $0.69), Illinois Tool Works Inc. (ITW, $55.79, up $0.38), Imation (IMN, $5.85, down $0.02), Inphi Corporation (IPHI, $14.42, up $0.42), IPC The Hospitalist Company, (IPCM, $35.00, down $0.72), iRobot (IRBT, $24.52, up $0.17), ITC Holdings (ITC, $76.84, up $0.53), Janus Capital Group, (JNS, $8.10, up $0.09), Juniper Networks (JNPR, $20.60, down $0.33), Kansas City Southern (KSU, $71.41, up $0.04), Landmark Bancorp (LARK, $19.85, down $0.14), LCA-Vision (LCAV, $6.93, up $0.08), Lennox International, (LII, $38.77, up $1.00), Lexmark International (LXK, $32.38, up $0.03), Liberty Property Trust (LRY, $36.36, up $0.13), Life Technologies Corporation (LIFE, $46.31, Flat), Lincoln Electric Holdings (LECO, $46.32, up $0.33), Manhattan Associates, (MANH, $46.46, up $1.24), The McGraw-Hill Companies, (MHP, $49.53, up $0.26), Mercury Computer Systems, (MRCY, $12.41, up $0.13), Merit Medical Systems, (MMSI, $12.44, up $0.01), Midsouth Bancorp (MSL, $13.81, up $0.13), Nabors Industries (NBR, $15.71, down $0.13), Norfolk Southern (NSC, $69.53, up $0.83), Northrim Bancorp (NRIM, $22.13, up $0.13), Old Line Bancshares (OLBK, $10.98, up $0.08), OSI Systems, (OSIS, $61.53, up $0.48), PACCAR (PCAR, $42.22, down $0.29), Panera Bread (PNRA, $150.27, down $0.89), Parker Hannifin Corporation (PH, $82.79, up $1.21), Pennsylvania Real Estate Investment Trust (PEI, $15.17, up $0.09), Pentair,  (PNR, $44.80, up $0.56), Pervasive Software (PVSW, $5.91, down $0.06), Privatebancorp Inc. (PVTB, $15.07, up $0.27), Pulaski Financial Corporation (PULB, $7.59, down $0.18), Pzena Investment Management, (PZN, $6.35, up $0.16), QEP Resources, (QEP, $29.32, down $0.10), Questar Corporation (STR, $19.31, up $0.11), Questcor Pharmaceuticals, (QCOR, $41.77, up $0.66), RadioShack (RSH, $6.23, down $0.11), Ramco-Gershenson Properties Trust (RPT, $11.86, up 40.10), RadiSys Corporation (RSYS, $6.76, up $0.03), Rayonier (RYN, $44.12, up $0.39), Regions Financial (RF, $6.07, down $0.05), Renasant (RNST, $15.47, up $0.35), Reynolds American (RAI, $41.80, up $0.16), Robert Half International (RHI, $28.96, up $0.11), Rochester Medical (ROCM, $9.57, down $0.12), Rush Enterprises, (RUSHB, $15.62, down $0.38), Ryder System (R, $49.20, up $0.17), SeaBright Holdings, (SBX, $9.02, up $0.23), Sigma-Aldrich Corporation (SIAL, $71.88, up $0.29), Signature Bank (SBNY, $64.21, up $0.20), Solutia (SOA, $28.04, Flat), Southern First Bancshares, (SFST, $8.02, down $0.76), Stepan Company (SCL, $88.25, up $0.49), Super Micro Computer, (SMCI, $17.18, up $0.08), Tanger Factory Outlet Centers (SKT, $30.67, up $0.50), T. Rowe Price Group, (TROW, $61.88, up $0.12), Torchmark (TMK, $48.63, Flat), Total System Services, (TSS, $23.39, up $0.10), Town Sports International Holdings (CLUB, $12.85, down $0.18), Trustmark Corporation (TRMK, $24.18, up $0.18), Twin Disc (TWIN, $23.42, up $1.24), Ultimate Software Group, (ULTI, $71.10, down $0.30), Unisys Corporation (UIS, $16.63, up $0.28), United States Steel (X, $28.99, up $0.40), United Technologies (UTX, $81.00, up $0.60), USANA Health Sciences (USNA, $37.32, up $0.52), Vascular Solutions (VASC, $10.55, up $0.23), Vicor (VICR, $7.62, up $0.02), Waters (WAT, $88.75, up $0.71), Websense, (WBSN, $20.92, down $0.25), Western Union Company (WU, $18.00, down $0.05), Westinghouse Air Brake Technologies Corporation (WAB, $79.92, up $0.60), Young Innovations (YDNT, $31.40, UP $0.95)

WEDNESDAY

Agenus (AGEN, $6.27, down $0.05), Akamai Technologies, (AKAM, $37.40, down $0.46), Allegheny Technologies (ATI, $40.45, down $0.42), Allegiant Travel Company (ALGT, $59.15, down $0.64), Alpha & Omega Semiconductor, (AOSL, $9.23, down $0.08), Ambassadors Group (EPAX, $5.13, up $0.17), American National Insurance (ANAT, $70.85, down $0.22), American Railcar Industries, (ARII, $23.91, up $0.28), Ancestry.com (ACOM, $23.94, up $0.35), AptarGroup, (ATR, $54.89, up $0.35), Arch Capital Group (ACGL, $38.59, up $0.05), Arris Group (ARRS, $11.47, up $0.09), Ashford Hospitality Trust (AHT, $8.92, down $0.01), Aspen Insurance Holdings (AHL, $28.01, up $0.16), Assurant (AIZ, $38.97, down $0.11), ATMI (ATMI, $22.98, up $0.18), AutoNation (AN, $33.74, up $0.36), Avalonbay Communities (AVB, $144.83, up $2.35), Avery Dennison Corporation (AVY, $31.07, up $0.18), AVX (AVX, $12.82, up $0.07), BankUnited, (BKU, $23.98, down $0.10), Boeing Company (BA, $73.55, up $0.45), Boston Private Financial Holdings (BPFH, $9.40, up $0.10), Brandywine Realty Trust (BDN, $11.61, up $0.15), BroadVision, (BVSN, $29.68, down $0.56), C&F Financial. (CFFI, $29.62, down $0.32), Cabot Oil & Gas Corporation (COG, $30.14, down $0.84), Cadence Design Systems (CDNS, $11.52, down $0.04), Capstead Mortgage (CMO, $13.31, up $0.10), Carpenter Technology (CRS, $53.07, up $0.08), Caterpillar (CAT, $107.73, up $0.37), CBIZ, (CBZ, $6.09, down $0.01), Charm Communications (CHRM, $10.80, down $0.19), Cirrus Logic (CRUS, $21.07, down $1.89), Citrix Systems (CTXS, $77.78, down $0.42), Clayton Williams Energy (CWEI, $75.79, up $0.21), Cliffs Natural Resources (CLF, $67.30, down $1.05), CNH Global NV (CNH, $44.36, up $0.77), Cohu, (COHU, $10.85, down $0.10), Columbia Banking System (COLB, $20.06, up $0.16), Commercial Vehicle Group (CVGI, $9.82, up $0.08), CoreLogic, (CLGX, $15.88, down $0.06), Corning (GLW, $13.18, down $0.35), CoStar Group (CSGP, $71.00, up $0.24), Crocs, (CROX, $22.00, down $0.07), Crown Castle International (CCI, $54.90, up $0.11), Cullen/Frost Bankers, (CFR, $56.58, up $0.40), CyberOptics (CYBE, $9.91, up $0.06), Dana Holding Corporation (DAN, $13.94, down $0.14), Datalink (DTLK, $9.44, down $0.05), Delta Air Lines (DAL, $10.75, down $0.07), DGSE Companies (DGSE, $7.43, Flat), Dice Holdings, (DHX, $9.47, up $0.01), Diebold (DBD, $38.32, down $0.19), Dr Pepper Snapple Group, (DPS, $40.59, up $0.09), Duke Realty (DRE, $14.51, up $0.15), DuPont Fabros Technology, (DFT, $23.97, up $0.11), Eastern (EML, $22.42, up $0.38), Edac Technologies (EDAC, $13.12, down $1.14), Eli Lilly & Co. (LLY, $39.91, up $0.16), Emulex Corporation (ELX, $9.43, down $0.19), Energen (EGN, $46.75, down $0.03), Equifax (EFX, $44.45, up $0.54), Equinix, (EQIX, $152.49, down $4.26), Equity Residential (EQR, $62.11, up $0.52), Euronet Worldwide (EEFT, $20.84, up $0.55), Evans Bancorp (EVBN, $14.30, Flat), Everest Re Group (RE, $95.40, up $1.23), Fair Isaac (FICO, $42.42, up $0.81), Famous Dave’s of America (DAVE, $11.53, down $0.02), Farmers National Banc (FMNB, $6.39, up $0.01), Fidelity National Financial, (FNF, $18.83, up $0.10), Financial Institutions (FISI, $16.46, up $0.76), Flexsteel Industries (FLXS, $20.07, down $0.04), General Dynamics (GD, $69.76, up $0.83), Glimcher Realty Trust (GRT, $10.00, up $0.12), Global Geophysical Services, (GGS, $7.83, up $0.07), GNC Holdings (GNC, $35.65, up $0.38), Graco (GGG, $55.23, up $0.29), Harley-Davidson (HOG, $51.70, up $2.13), Hatteras Financial (HTS, $28.92, up $0.20), Hess Corporation (HES, $55.07, down $0.18), (HRC, $32.02, up $0.34), Horace Mann Educators (HMN, $17.83, up $0.09), Hill-Rom Holdings (HRC, $32.02, up $0.34), Horace Mann Educators (HMN, $17.83, up $0.09), Host Hotels & Resorts (HST, $16.78, up $0.18), Hudson City Bancorp, (HCBK, $6.66, up $0.01), Hudson Valley Holding (HVB, $16.75, up $0.29), Huron Consulting Group (HURN, $39.07, up $1.88), Iconix Brand Group, (ICON, $17.09, up $0.14), Infinera Corporation (INFN, $7.89, up $0.26), Integrated Silicon Solution (ISSI, $10.46, down $0.12), Interactive Intelligence Group (ININ, $30.71, down $0.21), InterDigital, (IDCC, $31.43, down $0.35), Interface (IFSIA, $12.92, down $0.02), International Shipholding (ISH, $22.04, up $0.37), Intersil Corporation (ISIL, $10.80, down $0.19), Itron, (ITRI, $44.32, down $0.17), Jarden (JAH, $39.98, up $0.20), JMP Group (JMP, $7.27, up $0.05), Kadant (KAI, $23.02, up $0.47), Kaiser Aluminum Corporation (KALU, $48.24, up $0.04), KBR (KBR, $34.38, up $0.30), Kirby Corporation (KEX, $63.52, down $1.02), KKR Financial Holdings (KFN, $9.26, up $0.03), Knight Transportation (KNX, $16.65, up $0.09), Lakeland Financial (LKFN, $25.28, up $0.33), Las Vegas Sands (LVS, $57.91, down $0.45), Leap Wireless International (LEAP, $7.84, down $0.03), LeCroy (LCRY, $9.12, down $0.05), Lithia Motors (LAD, $25.85, up $0.09), LogMeIn, (LOGM, $36.79, up 0.51), Lorillard, (LO, $137.95, up $1.70), LSI Corporation (LSI, $7.93, down $0.14), Lumber Liquidators Holdings, (LL, $23.93, down $1.18), MagnaChip Semiconductor Corporation (MX, $10.63, down $0.76), Marine Products (MPX, $5.95, up $0.16), MarketAxess Holdings (MKTX, $36.41, down $0.06), Mastech Holdings, (MHH, $5.86, down $0.04), MeadWestvaco Corporation (MWV, $31.98, up $0.55), Medicines (MDCO, $19.74, up $0.08), Microsemi (MSCC, $20.14, down $0.19), Mine Safety Appliances (MSA, $41.12, up $0.82), MKS Instruments (MKSI, $27.80, down $0.04), Molex (MOLX, $27.00, up $0.01), Montpelier Re Holdings (MRH, $19.67, up $0.15), Morningstar (MORN, $62.71, up $0.79), Motorola Solutions, (MSI, $49.01, up $0.10), Nasdaq OMX Group (NDAQ, $25.04, up $0.34), National Oilwell Varco, (NOV, $77.68, down $0.46), Netgear (NTGR, $34.29, up $0.46), Newfield Exploration (NFX, $32.48, down $0.19), NewMarket Corporation (NEU, $193.36, up $3.45), NextEra Energy, (NEE, $63.46, up $0.74), Nielsen Holdings N.V. (NLSN, $29.24, up $0.53), Noranda Aluminum Holding (NOR, $10.35, down $0.01), Northrop Grumman Corporation (NOC, $61.81, up $0.79), Northwestern (NEW, $34.38, up $0.24), NuStar Energy (NS, $57.60, down $0.19), NuStar GP Holdings, (NSH, $34.54, down $0.07), Oceaneering International, (OII, $51.27, down $0.28), OmegaFlex, (OFLX, $12.08, down $0.17), Orchids Paper Products Company (TIS, $17.95, down $0.11), O’Reilly Automotive (ORLY, $96.45, up $0.46), Owens Corning (OC, $33.80, up $0.38), Owens-Illinois, (OI, $23.99, up $0.09), Parametric Technology Corporation (PMTC, $20.25, down $0.05), Penske Automotive Group, (PAG, $27.13, up $0.27), Praxair (PX, $113.69, down $0.13), Preferred Bank (PFBC, $11.86, down $0.04), Providence and Worcester Railroad Company (PWX, $15.70, up $0.82), Qiagen NV (QGEN, $15.92, up $0.22), Quidel (QDEL, $17.77, down $0.28), R.R. Donnelley & Sons Company (RRD, $12.07, up $0.09), RailAmerica, (RA, $20.72, up $0.03), Range Resources Corporation (RRC, $57.69, down $0.89), Rock-Tenn (RKT, $63.06, up $0.27), Rockwell Automation (ROK, $78.33, up $0.18), Rockwood Holdings, (ROC, $49.26, up $0.10), Rollins (ROL, $20.83, up $0.34), RPC (RES, $9.07, Flat), Ryland Group (RYL, $17.89, up $0.34), Saba Software (SABA, $9.79, down $0.05), Seacor Holdings (CKH, $92.64, down $1.24), Selective Insurance Group (SIGI, $17.62, up $0.12), Sensata Technologies Holding NV (ST, $32.36, down $0.24), Service Corp. International (SCI, $11.11, up $0.02), Silicon Laboratories (SLAB, $41.16, down $0.54), Six Flags Entertainment (SIX, $46.01, up $0.03), SJW (SJW, $23.39, up $0.13), Skechers USA (SKX, $14.76, up $0.44), SL Green Realty (SLG, $76.29, up $0.73), Southern Company (SO, $45.83, up $0.33), Southwest Bancorp (OKSB, $9.16, up $0.39), Stamps.com (STMP, $28.55, down $0.29), Steiner Leisure (STNR, $48.44, up $0.32), Stericycle, (SRCL, $87.91, up $0.63), Sterling Financial (STSA, $19.27, up $0.02), Susquehanna Bancshares, (SUSQ, $9.53, up $0.07), Symetra Financial Corporation (SYA, $11.40, up $0.16), Symmetricom (SYMM, $5.70, up $0.19), TAL Education Group (XRS, $11.40, up $0.22), TE

Connectivity (TEL, $35.06, up $0.03), Teledyne Technologies (TDY, $62.84, up $1.08), Teradyne (TER, $16.30, down $0.27), Terex (TEX, $24.57, up $0.35), Ternium S.A. (TX, $22.15, up $0.53), Texas Capital BancShares (TCBI, $34.31, up $0.37), TF Financial Corporation (THRD, $24.64, up $0.73), The Cheesecake Factory (CAKE, $29.67, up $0.35), The Jones Group (JNY, $13.00, up $0.18), Thermo Fisher Scientific, (TMO, $54.14, down $0.23), Timken (TKR, $50.51, up $0.35), Titan International (TWI, $23.97, up $0.03), Tractor Supply Company (TSCO, $99.46, up $0.58), Trinity Industries (TRN, $30.82, down $0.34), TriQuint Semiconductor, (TQNT, $5.35, down $0.14), TrueBlue, (TBI, $17.16, up $0.28), Tupperware Brands (TUP, $61.66, up $0.20), Tyler Technologies, Inc. (TYL, $40.26, up $0.90), UMB Financial (UMBF, $44.93, up $0.41), Unitil (UTL, $26.46, up $0.12), US Airways Group, (LCC, $9.34, down $0.17), Varian Medical Systems (VAR, $67.73, up $1.48), Virgin Media, (VMED, $23.84, up $0.18), W.R. Grace & Co. (GRA, $56.59, up $0.77), Waste Connections (WCN, $33.09, up $0.57), Weis Markets, (WMK, $44.14, up $0.50), WellPoint (WLP, $70.68, up $0.06), WesBanco (WSBC, $19.66, up $0.31), Whiting Petroleum (WLL, $53.72, down $0.51), Williams Companies, (WMB, $32.30, up $0.12), Williams Partners L.P. (WPZ, $54.50, up $0.18), Zipcar, (ZIP, $13.61, up $0.05), Wyndham Worldwide Corporation (WYN, $47.51, down $0.44), Xilinx (XLNX, $34.40, down $0.64), Zipcar, Inc. (ZIP, $13.61, up $0.05)

THURSDAY

1st United Bancorp, (FUBC, $5.97, up $0.12), 3D Systems (DDD, $27.95, up $0.67), Abaxis (ABAX, $29.71, up $3.10), Aetna (AET, $49.21, up $0.14), Altisource Portfolio Solutions S.A. (ASPS, $58.90, down $0.06), Altria Group (MO, $31.89, up $0.11), American Greetings (AM, $15.12, up $0.46), American National Bankshares (AMNB, $22.00, Flat), AmeriGas Partners (APU, $39.50, up $0.91), AmerisourceBergen Corporation (ABC, $37.75, up $0.27), Ametek (AME, $48.99, up $0.18), Amkor Technology, (AMKR, $5.72, up $0.03), Amylin Pharmaceuticals, (AMLN, $22.92, up $0.15), Angie’s List, (ANGI, $14.61, down $0.06), Applied Industrial Technologies, (AIT, $39.30, up $0.60), Applied Micro Circuits (AMCC, $6.29, down $0.21), Asbury Automotive Group, (ABG, $26.43, down $0.08), AsiaInfo-Linkage, (ASIA, $11.97, up $0.47), athenahealth, (ATHN, $75.59, up $0.74), Avid Technology, (AVID, $8.31, up $0.05), Avnet (AVT, $35.29, Flat), Axis Capital Holdings (AXS, $34.10, down $0.19), Ball Corporation (BLL, $43.52, up $0.22), Bally Technologies, (BYI, $46.93, up $0.25), Bemis Company, (BMS, $32.10, up $0.33), Benchmark Electronics (BHE, $15.15, up $0.14), Berry Petroleum (BRY, $43.56, down $0.52), BioMarin Pharmaceutical (BMRN, $34.94, up $0.73), BJ’s Restaurants, (BJRI, $46.80, down $0.89), BorgWarner (BWA, $80.59, down $0.86), Bravo Brio Restaurant, (BBRG, $20.86, up $0.41), Bridge Capital Holdings (BBNK, $13.85, up $0.47), Briggs & Stratton (BGG, $18.01, up $0.20), Brightpoint (CELL, $7.24, up $0.10), Bristol-Myers Squibb Company (BMY, $34.23, up $0.30), Brunswick Corporation (BC, $25.99, up $1.04), Bryn Mawr Bank (BMTC, $20.84, up $0.55), Bunge (BG, $66.25, down $0.48), Cabela’s (CAB, $38.98, up $0.33), Cabot Microelectronics (CCMP, $34.44, down $0.13), CAI International (CAP, $18.25, up $0.24), Callaway Golf (ELY, $6.72, up $0.15), Camden Property Trust (CPT, $67.21, up $1.40), Cameron International Corporation (CAM, $49.00, down $0.76), CARBO Ceramics (CRR, $86.48, down $3.22), Cash America International, (CSH, $42.51, down $2.36), Celgene Corporation (CELG, $79.10, up $0.51), Central Pacific Financial (CPF, $13.41, up $0.09), Cerner Corporation (CERN, $74.50, up $0.43), CH Energy Group (CHG, $66.05, up $0.44), Chart Industries (GTLS, $72.77, up $0.27), Choice Hotels International (CHH, $37.50, down $0.15), Cincinnati Financial (CINF, $34.63, up $0.27), Citizens Republic Bancorp, (CRBC, $16.65, up $0.05), CME Group (CME, $273.05, down $4.41), CMS Energy (CMS, $22.30, up $0.26), Coca-Cola Enterprises (CCE, $28.96, up $0.36), Coherent (COHR, $54.86, up $0.85), Coinstar, (CSTR, $64.22, up $0.39), Colgate-Palmolive (CL, $98.88, up $1.32), Colonial Properties Trust (CLP, $22.20, up $0.34), Columbia Sportswear (COLM, $48.42, up $0.48), Community Health Systems, (CYH, $23.37, down $0.46), Compass Minerals International (CMP, $74.13, up $0.45), Computer Programs & Systems (CPSI, $55.82, up $0.63), Conceptus, (CPTS, $13.36, up $0.02), CONMED (CNMD, $29.50, up $0.29), CONSOL Energy (CNX, $33.72, down $0.72), Constant Contact, (CTCT, $28.93, down $0.05), CoreSite Realty (COR, $24.26, up $0.47), Corporate Office Properties Trust (OFC, $22.54, up $0.34), CRA International (CRAI, $24.29, up $0.59), Datawatch (DWCH, $14.49, up $0.49), Deckers Outdoor (DECK, $68.55, up $1.42), Delta Apparel (DLA, $16.57, up $0.35), Deluxe (DLX, $22.50, up $0.24), Destination Maternity (DEST, $18.90, up $0.34), Digi International (DGII, $10.96, up $0.10), Digital Realty Trust (DLR, $73.63, down $0.98), Dime Community Bancshares (DCOM, $13.91, up $0.35), Dominion Resources, (D, $51.02, up $0.48), The Dow Chemical Company (DOW, $35.31, up $0.35), EarthLink (ELNK, $7.85, up $0.08), Eastman Chemical (EMN, $52.76, up $0.01), Echo Global Logistics, (ECHO, $16.68, up $0.21), Education Realty Trust (EDR, $10.93, up $0.18), eHealth, (EHTH, $16.83, up $0.21), EMCOR Group (EME, $27.34, up $0.51), Endologix (ELGX, $14.02, up $0.61), Entergy Corporation (ETR, $65.65, up $0.28), EPIQ Systems, (EPIQ, $11.26, up $0.12), EQT Corporation (EQT, $46.67, down $0.32), Evercore Partners (EVR, $25.25, up $0.10), Expedia (EXPE, $31.94, up $0.39), Exxon Mobil (XOM, $85.30, up $0.02), Federated Investors, (FII, $20.61, up $0.02), Fidelity National Information Services, (FIS, $33.07, down $0.03), First American Financial (FAF, $17.38, up $0.19), First Industrial Realty Trust (FR, $12.15, up $0.10), First Potomac Realty Trust (FPO, $12.96, up $0.11), Forrester Research (FORR, $34.14, up $0.57), Fortune Brands Home & Security, (FBHS, $20.70, up $0.28), Fusion-io, (FIO, $27.11, down $0.56), GATX (GMT, $42.47, up $0.41), Genesis Energy (GEL, $31.15, up $0.27), Gilead Sciences (GILD, $51.00, down $1.25), Goodrich (GR, $125.30, up $0.09), GrafTech International (GTI, $11.40, up $0.09), Greatbatch, (GB, $23.94, down $0.05), Green Dot (GDOT, $26.67, up $0.37), Group 1 Automotive (GPI, $57.63, up $0.56), Hancock Holding (HBHC, $35.32, up $0.41), HEALTHSOUTH (HLS, $20.73, down $0.29), Helmerich & Payne (HP, $51.50, down $0.83), Hittite Microwave (HITT, $50.09, down $0.31), Incyte Corporation (INCY, $19.43, up $0.55), Informatica Corporation (INFA, $50.94, down $0.44), Ingram Micro (IM, $18.76, up $0.12), Integra LifeSciences Holdings (IART, $33.05, up $0.56), InterMune (ITMN, $12.27, up $0.39), The Interpublic Group of Companies, (IPG, $10.87, up $0.01), Invacare Corporation (IVC, $15.77, up $0.42), Invesco (IVZ, $24.18, down $0.11), Investors Bancorp (ISBC, $15.10, up $0.05), Kellogg (K, $53.99, up $0.19), Kennametal (KMT, $44.61, up $0.84), Iron Mountain (IRM, $30.16, up $0.61), ITT Educational Services (ESI, $59.63, up $0.19), Key Energy Services (KEG, $13.34, down $0.40), Key Technology (KTEC, $13.51, up $0.03), L-3 Communications Holdings (LLL, $69.91, up $0.44), Lacrosse Footwear (BOOT, $13.03, Flat), Landstar System (LSTR, $56.79, up $0.64), Lawson Products (LAWS, $14.82, up $0.06), Leggett & Platt,  (LEG, $23.07, up $0.19), Linn Energy, (LINE, $38.62, up $0.11), Liz Claiborne (LIZ, $12.98, down $0.03), LKQ (LKQX, $30.40, up $0.36), Lockheed Martin (LMT, $90.84, up $0.50), Mack-Cali Realty (CLI, $28.53, up $0.41), Materion (MTRN, $25.73, down $25.73, down $0.24), Maxim Integrated Products (MXIM, $27.17, down $0.57), Maxwell Technologies (MXWL, $16.43, up $0.01), Mead Johnson Nutrition (MJN, $84.05, up $1.10), Meridian Bioscience (VIVO, $18.98, up $0.58), Meritage Homes (MTH, $26.34, up $0.63), Micrel (MCRL, $9.65, down $0.15), MICROS Systems, (MCRS, $54.79, down $0.25), Minerals Technologies (MTX, $66.44, up $0.74), Moneygram International (MGI, $16.67, down $0.02), Moody’s (MCO, $41.61, up $0.39), Mylan, (MYL, $21.84, down $0.25), Nanometrics (NANO, $18.63, up $0.16), National Financial Partners (NFP, $14.42, down $0.08), National Instruments (NATI, $26.10, down $0.10), Natus Medical (BABY, $10.74, up $0.49), Navigant Consulting (NCI, $14.39, up $0.30), Navios Maritime Partners (NMM, $15.53, up $0.21), NetScout Systems, (NTCT, $18.35, up $0.02), NetSuite (N, $48.66, down $0.04), Newpark Resources (NR, $7.00, up $0.05), NII Holdings (NIHD, $19.51, up $0.09), Nu Skin Enterprises (NUS, $59.16, up $1.19), NXP Semiconductors NV (NXPI, $23.19, down $0.90), Occidental Petroleum (OXY, $88.61, up $0.39), Oil States International (OIS, $70.52, down $1.47), Old Dominion Freight Line (ODFL, $47.77, up $0.36), Old Republic International (ORI, $10.21, up $0.03), Olin (OLN, $21.43, up $0.26), Omnicare (OCR, $35.12, up $0.14), On Assignment (ASGN, $17.41, up $0.08), Orthofix International (OFIX, $36.37, down $0.09), Oshkosh (OSK, $22.75, down $0.21), Park National (PRK, $66.24, up $1.27), Patterson-UTI Energy (PTEN, $15.93, down $0.18), Pebblebrook Hotel Trust (PEB, $23.16, up $0.13), Pepsico, Inc. (PEP, $66.63, up $0.48), PerkinElmer (PKI, $26.51, up $0.12), Principal Financial Group (PFG, $28.16, down $0.10), Progressive (PGR, $21.37, down $1.01), Provident Financial Holdings (PROV, $10.94, up $0.05), Qlik Technologies, (QLIK, $30.67, up $0.19), Raytheon (RTN, $53.

11, up $0.58), Realty Income (O, $38.63, up $0.65), Regeneron Pharmaceuticals, (REGN, $126.38, up $0.39), Regis (RGS, $18.36, up $0.53), Reliance Steel & Aluminum (RS, $54.42, down $0.22), Republic Services, (RSG, $31.01, up $0.19), ResMed (RMD, $30.50, up $0.27), Revlon, (REV, $17.69, up $0.34), Rockville Financial (RCKB, $11.65, up $0.07), Safeguard Scientifics, (SFE, $16.25, up $0.35), Safeway (SWY, $22.09, up $0.10), ScanSource, (SCSC, $33.68, up $0.06), Silgan Holdings (SLGN, $44.68, up $0.18), Silicon Motion Technology (SIMO, $21.14, down $0.95), Simpson Manufacturing (SSD, $31.30, up $0.53), Skyworks Solutions (SWKS, $24.38, down $1.53), SolarWinds, (SWI, $35.08, down $0.04), Sonic Foundry (SOFO, $7.41, down $0.09), Spansion (CODE, $10.24, down $0.60), The Spectranetics (SPNC, $10.51, up $0.11), Spectrum Pharmaceuticals, (SPPI, $10.26, down $0.11), SPS Commerce, (SPSC, $25.00, up $0.77), Starbucks Corporation (SBUX, $59.16, up $0.35), Starwood Hotels & Resorts Worldwide (HOT, $57.61, down $0.41), StellarOne (STEL, $11.17, up $0.14), Stewart Information Services (STC, $15.73, up $0.28), Stillwater Mining (SWC, $11.50, down $0.30), Strattec Security (STRT, $20.52, down $0.02), Strayer Education (STRA, $86.13, down $0.58), Sun Communities (SUI, $42.49, up $0.43), Superior Energy Services, (SPN, $24.75, down $0.44), SVB Financial Group (SIVB, $63.23, up $0.68), Synaptics (SYNA, $32.42, down $32.42, down $0.25), TAL International Group, (TAL, $38.92, up $1.36), Taubman Centers (TCO, $75.73, up $0.72), Tessera Technologies (TSRA, $16.41, down $0.10), Empire District Electric (EDE, $20.20, up $0.41), Theravance (THRX, $21.13, up $0.68), TIM Participacoes (TSU, $29.84, down $0.07), Time Warner Cable (TWC, $81.89, up $0.46), TOR Minerals International (TORM, $15.02, Flat), TPC Group (TPCG, $45.65, up $1.76), TriMas Corporation (TRS, $23.26, up $0.01), Tyco International (TYC, $55.29, up $0.30), UGI Corp. (UGI, $26.61, up $0.21), United Bankshares (UBSI, $27.23, up $0.23), United Continental Holdings, (UAL, $22.91, down $0.43), United Parcel Service (UPS, $80.27, up $0.41), United Therapeutics (UTHR, $42.09, up $0.38), Universal Health Realty Income Trust (UHT, $39.11, up $0.45), Universal Health Services Inc. (UHS, $42.80, down $0.27), Universal Stainless & Alloy Products Inc. (USAP, $44.52, up $0.88), Universal Truckload Services (UACL, $14.96, Flat), Valassis Communications (VCI, $21.89, down $0.43), Validus Holdings, (VR, $31.21, down $0.21), VCA Antech (WOOF, $22.82, up $0.27), VeriSign, (VRSN, $41.97, up $0.02), Vertex Pharmaceuticals (VRTX, $36.58, down $0.08), Viewpoint Financial Group (VPFG, $15.48, up $0.07), Vistaprint N.V. (VPRT, $37.83, up $0.33), Vulcan Materials Company (VMC, $41.18, up $0.16), WABCO Holdings (WBC, $56.76, down $0.92), Washington Banking (WBCO, $13.52, up $0.37), Washington Real Estate Investment Trust (WRE, $29.50, up $0.48), Waste Management, Inc. (WM, $35.96, up $0.22), Wayside Technology Group, (WSTG, $15.90, up $0.08), West Marine (WMAR, $11.54, up $0.09), West Pharmaceutical Services, (WST, $42.88, up $0.07), Western Digital (WDC, $41.44, down $0.61), Whirlpool (WHR, $64.17, down $0.32), Willis Group Holdings (WSH, $36.14, up $0.47), World Acceptance (WRLD, $58.30, down $0.42), WSFS Financial (WSFS, $39.25, up $0.65), Xcel Energy (XEL, $26.76, up $0.45), Yandex N.V. (YNDX, $26.65, down $0.65), Zimmer Holdings (ZMH, $63.08, up $0.02), Zynga (ZNGA, $9.22, down $0.35)

FRIDAY

Aaron’s, (AAN, $25.56, up $0.32), Altra Holdings, (AIMC, $17.88, up $0.22), Amcol International (ACO, $29.45, up $0.39), American Axle & Manufacturing (AXL, $10.44, down $0.13), Arkansas Best Corporation (ABFS, $17.77, down $0.23), Autoliv, (ALV, $65.78, up $1.24), Barnes Group (B, $27.49, up $0.66), Bel Fuse (BELFA, $18.94, Flat), Calpine (CPN, $18.30, up $0.38), Chevron (CVX, $102.52, up $0.01), Coventry Health Care (CVH, $33.55, up $0.05), Covidien (COV, $54.55, up $0.35), DTE Energy (DTE, $55.46, up $0.74), Exelis, (XLS, $11.41, down $0.13), Ford Motor (F, $11.41, down $0.25), Helen of Troy (HELE, $33.04, up $0.54), Heritage Financial (HFWA, $13.17, up $0.47), HMS Holdings (HMSY, $26.91, up $0.15), Home Federal Bancorp (HOME, $9.68, up $0.12), Immunogen (IMGN, $12.48, up $0.20), International Paper Company (IP, $33.02, up $0.06), Kohlberg Kravis Roberts & Co. (KKR, $14.09, down $0.20), KVH Industries (KVHI, $9.35, up $0.07), Laclede Group (LG, $39.19, up $0.52), Libbey  (LBY, $13.24, up $0.35), Lifepoint Hospitals (LPNT, $39.35, down $0.01), Magellan Health Services (MGLN, $49.15, up $0.98), Merck & Co. (MRK, $38.73, up $0.37), Nash Finch (NAFC, $25.92, up $0.06), Newell Rubbermaid (NWL, $17.40, up $0.04), Newmont Mining (NEM, $47.25, down $0.56), OneBeacon Insurance Group, (OB, $14.22, up $0.05), Penn Virginia Resource Partners (PVR, $25.42, down $0.17), Procter & Gamble (PG, $67.51, up $0.94), Prosperity Bancshares (PB, $44.14, up $0.48), Provident Financial Services, (PFS, $13.75, up $0.07), Saia, (SAIA, $17.47, down $0.31), SCBT Financial Corporation (SCBT, $31.77, up $0.70), Simon Property Group (SPG, $150.11, up $2.05), Goodyear Tire & Rubber (GT, $11.24, up $0.07), Ventas, (VTR, $56.83, up $0.95), V.F. Corporation (VFC, $151.03, up $1.89), Viad Corp (VVI, $18.57, up $0.26), Weyerhaeuser (WY, $20.98, up $0.23), WisdomTree Investments, (WETF, $8.34, down $0.04), Zebra Technologies (ZBRA, $37.95, up $0.49)

= = = = = = = = = = = = = = =  

4.  Weekly Wrap Covered Call Portfolio Update (Closing prices as of 4/20/12)

We closed 2 more trades this week:  BAC +26%, and EFTC +8%.

Other Closed Trades for 2012 (17-0, overall):  SZYM +55%, VVUS +38%, CALL +19%, BAC +20%, SYMC +16%, DAR +20%, TIVO +5%, MGM +22%, ZNGA +13%, SGMS +6%, VVUS +17%, F +8%, AA +7%, CLNE +27%, DNDN +18%, MGM +19%, ACAS +3%.   

 

Solazyme (SZYM, $11.38, down $0.03)

June 15 calls (SZYM120616C00015000, $0.40, down $0.05)

Original Entry Price:  $12.40 (4/17/12)

Lowered Price from Selling Options: $12.00    

Exit Target:  $15+

Return:  -5%

Stop Target:  None

Action:  Solazyme looked too good to pass up at $12 after selling the calls to reduce our cost.  Our first trade in this name made 55% in 4 months.  Shares were recently downgraded to “Underweight” by the Piper (Jaffray) with a $10 target.  As you can see, this happens to be support.  We aren’t worried about the downgrade because we think analysts are underestimating the company’s partnership potential with Bunge (BG, $66.25, down $0.48) on renewable fuels for Brazil.  The 52-week low is $7.68 should $10 fail to hold.  A move back above $12 would be bullish.  

We recommended buying the stock at $12.40 on 4/17/2012 and for every 100 shares to sell the June 15 calls for 40 cents.  This lowered the cost basis to $10.18.          

If shares are called-away by mid-June at $15 the trade makes 25%.

 

Bank of America (BAC, $8.36, down $0.41)

May 9 calls (BAC120519C00009000, $0.15, down $0.15)

Original Entry Price:  $8.93 (4/17/12)

Lowered Price from Selling Options:  $8.48    

Exit Target:  $15+

Return:  -1%

Stop Target:  None

Action:  This is our third trade for BAC after we started buying shares at $5 back in December.  Our first trade made 20% and the one that closed on Friday made 26%.  The company beat Wall Street’s earnings expectations last week but shares were hammered after one rock star analyst issued a “Sell” rating on the stock.  We understand BAC is going to have issues for the next year (or two) but if they can get their Merrill Lynch and Countrywide Financial acquisitions to turn around, they will be a financial monster with perfect brand recognition. 

Friday’s 5% drop pushed shares below their 50-day MA.  A move below $8.25 appears likely on further weakness and test down to $7.50 and the 200-day MA could be in store.  A move back above $9 would be bullish.  

 

We recommended buying the stock at $8.93 on 4/17/2012 and for every 100 shares to sell the May 9 calls for 45 cents.  This lowered the cost basis to $8.48.

If shares are called-away by mid-May at $9 the trade makes 6%.

 

Scientific Games (SGMS, $11.37, up $0.21)   

Original Entry Price:  $11.10 (3/20/12)

Lowered Price from Selling Options:  Waiting for shares to reach $12-$13

Exit Target:  $15+

Return:  2%

Stop Target:  None

Action:  We will look to sell the May 12.50 calls (SGMS120519C00012500, $0.25, flat) this week. 

Shares traded down to $10.97 on Thursday and closed below their 50-day moving average for the week.  Support has been strong at $11 but shares could test $10 on a further pullback.  We mentioned the company should easily beat earnings when they report in May following two huge lottery jackpots here in the U.S.  However, lotto ticket sales in China were weaker-than-expected in March and February sales in Italy were down over 10% so they may not report the blowout numbers we were hoping for.  A move back above $11.50-$12 would be bullish.

We recommended buying the stock at $11.10 on 3/20/2012.

 

Pandora Media (P, $8.29, down $0.40)

June 13 calls (P120616C00013000, $0.15, down $0.05)

Original Entry Price:  $10.58 (3/20/12)

Lowered Price from Selling Options:  $10.18

Exit Target:  $12

Return:  -19%

Stop Target:  None

Action:  The company announced a strategic relationship with Dish Network (DISH, $31.65, up $0.21) last week and Suzuki will offer Pandora in their cars down the road.  Pandora will announce earnings in mid-May. 

Shares traded down to $7.83 last week, a new 52-week low.  We would like to see current levels hold but there could be risk down to $5 if the company doesn’t deliver over the next few quarters.  A move back above $9 would be positive but $9.50 will be strong resistance.

We recommended buying the stock at $10.58 on 3/20/2012 and for every 100 shares to sell the June 13 calls for 40 cents.  This lowered the cost basis to $10.18.

If shares are called-away by mid-June at $13 the trade makes 28%.

 

Bebe Stores (BEBE, $8.73, down $0.14)    

Original Entry Price:  $9.00 (2/22/12)

Lowered Price from Selling Options:  Waiting for shares to reach $10

Exit Target:  $8

Return:  -5%

Stop Target:  None

Action:  Bebe reports earnings on May 3.  The company has beaten estimates for 3 straight quarters and we like the turnaround story.  Support is strong at $8.50 but there is further risk down to $8.20 or $7.80 if the disappoint with their numbers.  Shares could move back above $8.80-$9 on a beat-and-raise.

 

We recommended buying the stock at $9.00 on 2/22/2012

 

Pizza Inn (PZZI, $4.14, down $0.08)

Original Entry Price:  $4.50 (2/22/12)

Lowered Price from Selling Options:  No options available

Exit Target:  $8

Return:  -8%

Stop Target:  None

Action:  Shares traded down to $4.00 on Friday and face risk down to $3.50 on a further pullback.  Resistance will be at $4.25-$4.50 going forward.  We like the company’s fast pie concept where you can get your own customized pizza in just 5 minutes. 

We recommended buying the stock at $4.50 on 2/22/2012.  

 

Arena Pharmaceuticals (ARNA, $2.17, down $0.10)

July 3 calls (ARNA120723C00003000, $0.85, down $0.10)

Original Entry Price:  $1.88 (2/2/12)

Lowered Price from Selling Options:  $1.33

Exit Target:  $3+

Return:  57%

Stop Target:  None

Action:  Arena continues to drift lower following the FDA’s extended 6-month review period for Vivus’ (VVUS, $22.95, up $0.76) obesity drug, Qnexa.  The panel gave themselves an extra 90 days to make a decision which pushed Arena’s meeting with them back to late June.  Arena’s weight loss drug, Lorcaserin, will go before the same committee that issued a positive vote for Qnexa but the safety of the drug is being questioned again.  The break below $2.40 last week was bearish which brings $2.00-$1.80 back into play.

We recommended buying the stock at $1.88 on 2/2/2012 and for every 100 shares to sell the July 3 calls for 50 cents.  This lowered the cost basis to $1.33.

If shares are called-away by mid-July at $3 the trade makes 117%.

 

MGM Resorts (MGM, $13.52, down $0.25)

Original Entry Price:  $13.77 (2/2/12)

Lowered Price from Selling Options:  $12.67

Exit Target:  $15

Return:  7%

Stop Target:  None

Action:  The April 14 calls expired worthless on Friday and we will look to sell a May or June call this week.  The May 13’s are asking 95 cents while the June 14’s are at 65 cents.    

MGM is trying to hold short-term support at $13.50 and is still in an uptrend channel.  There is pressure down $12 and the 200-day MA if there is further weakness and $13 is taken out.  A better-than-expected earnings report in early May could get shares back over $14.  We love MGM for the possible approval of online poker over the next few months and have a $20 target on the stock over the next 6-12 months.  

We recommended buying the stock at $13.77 on 2/2/2012 and for every 100 shares to sell the March 15 calls for 45 cents.  This lowered the cost basis to $13.32.

On 3/20/12 we recommended selling the April 14 calls for $0.65 which lowered the cost basis to $12.67.

 

Patriot Coal (PCX, $6.21, down $0.52)

Original Entry Price:  $8.91 (1/12/12)

Lowered Price from Selling Options:  $8.31

Exit Target:  $15

Return:  -25%

Stop Target:  None

Action:  The April 9 calls expired Friday and Patriot will announce earnings this Friday.

Coal is still an unloved sector but it isn’t going anywhere.  Shares touched a low of $6.09 on Monday and Friday last week and $6 is trying to hold as short-term support.  We wouldn’t shares have bottomed, especially with earnings coming up, as break below $5.50 would be nasty.  If they can surprise the suit-and-ties and shares make it back above $6.50-$7 then we will look to sell another call option to lower our cost position.

We recommended buying the stock at $8.91 on 1/12/2012 and for every 100 shares to sell the February 10 calls for 40 cents.  This lowered the cost basis to $8.51.

On 2/29/12 we recommended selling the April 9 calls for $0.20 which lowered the cost basis to $8.31.

 

Alcoa (AA, $9.70, down $0.06)

Original Entry Price:  $9.65 (1/12/12)

Lowered Price from Selling Options and Dividends:  $9.17

Exit Target:  $11

Return:  6%

Stop Target:  None

 Action:  The April 11 calls expired worthless on Friday.  The May 10’s and June 11 calls are at 20 cents and we will be selling one of them this week to lower our cost position ti under $9.

Resistance at $10.20 has been rock solid and a break below $9.40 would be bearish.  We don’t mind holding Alcoa for a few more months and selling shares down the road above $10.

We recommended buying the stock again at $9.65 on 1/12/12.    

On 1/23/12 we recommended selling the March 11 calls for $0.25 which lowered the cost basis to $9.40.

On 2/1/12 the company paid a 3 cent dividend which lowered our cost basis to $9.37.

On 3/20/12 we recommended selling the April 11 calls for $0.20 which lowered the cost basis to $9.17.

 

Newpark Resources (NR, $7.00, up $0.05)

Original Entry Price:  $9.45 (7/27/11)

Lowered Price from Selling Options: $7.85

Exit Target: $10+

Return:  -11%

Stop Target: None

Action:  Shares fell below $7 last week which opens the door for a test down to $6.50-$6.  We would like to see a move back above $7.50 before selling another call option.

We recommended buying the stock at $9.45 on 7/27/11 and for every 100 shares to sell the August 10 calls for 50 cents.  This lowered the cost basis to $8.95.

On 9/15/11 we recommended selling the December 10 call option for $0.85 which lowered the cost basis to $8.10.

On 1/25/2012 we recommended selling the March 12.50 call at 25 cents which lowered our cost to $7.85. 

 

Trades on HOLD:  Rambus (RMBS, $4.90, down $0.70), Rare Element Resources (REE, $5.20, down $0.24), AKS Steel Holding (AKS, $7.53, down $0.07), DryShips (DRYS, $3.16, down $0.01), OCZ Technology Group (OCZ, $5.64, down $0.33)

===============================

5.  Week Ahead

There are no economic reports scheduled for Monday.

For Tuesday, Weekly Chain Store Sales are due out before the bell along with the Case-Shiller Home Price Index at 9am (EST).  The Consumer Confidence report, New Home Sales, and the FHFA Housing Price Index numbers will be released at 10am.  Also, the FOMC Meeting begins with Bernanke speaking the following day.

Wednesday’s action includes the MBA Mortgage Index at 7am, followed by Durable Goods an hour before the bell.  The FOMC announcement will be released during Wall Street’s lunch break with the Forecasts due out at 2pm.  Ben Bernanke will speak shortly afterwards.

Thursday is a busy day with Initial and Continuing Claims due out before the bell.  Pending Home Sales are scheduled to be released at 10am along with Natural Gas Inventories.

Friday wraps up with the Gross Domestic Product (GDP) figures, the Chain Deflator, and the Employment Cost Index, all due out an hour before the bell.  Michigan Consumer Sentiment numbers will be released at 10am.