Watchlist for October 21, 2008

Here's an interesting note that I just saw on Briefing.com:

The problem of forced insider stock sales - Barron's
Barron's reports as slew of margin calls have forced many executives to sell off big chunks of their stock, sending a shudder through the stock markets lately. And as surprising as some of these sales were, there's potential for more of them. At least 80 companies have insiders that have pledged stock as collateral for loans, according to a recent report by InsiderScore.com. Companies with a sizeable percentage of outstanding shares pledged as collateral include Danaher (DHR), Fossil (FOSL), Pulte Homes (PHM), Oracle (ORCL) and Campbell Soup (CPB). Such margin exposure puts companies at the whim of a volatile market. Since Oct. 1, market conditions have forced insiders at 30 companies to sell a total of $1.2 billion in stock, according to InsiderScore.com. "It appears to be a fairly new phenomenon over the past year to 18 months, where senior executives are holding stock in a margin account and their sales are not self-motivated and are not part of a trading plan," says Jacob Frenkel, a former SEC enforcement lawyer who is now an attorney at Maryland firm Shulman Rogers."... Forced sales have longterm implications for companies, in addition to any selling pressure the margin calls create. "Some insiders are being stripped of their ownership, which in our opinion weakens corporate governance," says Ben Silverman, director of research at InsiderScore.

On Today's Calendar:

nothing

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

See one of the recent 'Chart Reading' posts for some potential swing candidates. Also be sure to check my typical swing trade entry & exit rules.

Potential day trades:

(From Briefing.com)

Gapping Down

In reaction to disappointing earnings/guidance: LOGI -17.6%, CE -13.7%, JAVA -13.5%, FITB -11.0%, TLAB -11.0%, WU -10.7% (light volume), MICC -10.3%, TXN -9.3% (also downgraded to Hold at Deutsche Bank), ALV -8.7%, PUK -5.7%, SNDK -2.9%... M&A news: ACGY -4.1% (announces co held discussions with Subsea 7 in relation to a possible merger; the discussions have now been terminated)... Select oil/gas related names showing weakness with lower spot prices: SSL -12.4%, BP -7.0%, TOT -6.2%, RDS.A -4.6%, XOM -2.9%, CVX -2.3%... Select drybulk shippers trading lower as Baltic index drops 4.6%: NM -7.9% (downgraded to Neutral at BofA), DRYS -5.1%, TBSI -4.3% (downgraded to Neutral at Banc of America)... Select metals/mining names showing weakness with lower spot prices: BBL -8.4%, RIO -8.0%, MT -7.8%, AUY -6.1%, BHP -5.1%, GFI -5.1%, RTP -4.7%, AU -4.6%, GLD -3.5%, GOLD -2.7%... Other news: WPPGY -9.6% (still checking for anything specific), ABK -7.1% (Bond insurers seek to tap into $700 bln plan - FT), SAP -6.2% (Oracle told by judge to offer to settle with SAP - Reuters), HBC -4.6% (still checking), ING -3.6% (pulling back from yesterday's 15%+ move), F -3.4% (Tracinda to reduce F holdings, will Focus on Gaming & Hospitality and Oil & Gas Industries), AZN -2.9% (still checking)... Select tech related names trading lower following TXN results: IFX -8.9%, ERIC -8.6%, STM -7.4%, ALU -6.8%, NOK -4.3%... Analyst comments: C -4.2% (restarted with a Sell at Goldman- added to Conviction Sell list- Bloomberg), NRG -2.6% (downgraded to Hold at Jefferies), DUK -2.3% (downgraded to Underperform at Merrill), EXC -1.3% (downgraded to Hold at Jefferies).

Gapping Up

In reaction to strong earnings/guidance: GBL +15.0%, JDAS +9.1%, COH +7.4%, AXP +6.8%, MMM +4.5%, PFE +4.3%, FRX +4.1%, PTV +3.7% (light volume), BIIB +2.3%, CAT +1.5%... Other news: TMA +16.3% (still checking for anything specific), LINE +12.3% (Cramer makes positive comments on MadMoney), LGF +8.0% (Carl Icahn discloses 9.17% stake in 13D filing; had discussions with the CEO and Vice Chairman), MGM +4.8% (Tracinda to focus on Gaming & Hospitality and Oil & Gas industries), HK +3.9% (provides Q3 operational update; Haynesville Shale activities move forward), MA +1.9% (up in sympathy with AXP), BDX +1.3% (Cramer makes positive comments on MadMoney).