01-25-2012: Celanese Corporation May Be Regarded as a Fuel-Efficient Vehicle Speculative Play |
The diversified chemical manufacturing group has been a strong performer in stock industry groups of late. Prominent in this group is Celanese Corporation (CE). This company manufacturers chemicals related to acetic acid and used in plastics often found in auto bodies. The company is also actively pursuing ways to manufacture ethanol from natural gas more cheaply than ethanol produced from crops like corn. Its products can also be used in food additives like sweeteners, and thereby enjoy a certain immunity from the cyclicality of other chemical industries.
Celanese Corp. is regarded by us as a speculative play on the rise of more fuel-efficient vehicles, as its products have great potential for increasing use in the automotive manufacturing industry. The company derives 75% of its revenue from outside North America and although Texas-based, does most of its manufacturing overseas as well, thus exporting American jobs. Exactly who controls it was somewhat hard for us to determine as it has many sub-entities based in other countries and traded as stocks there as well.
Our article on Celanese Corp. (CE) in the Archives Section, below.
01-26-2012: Raw Data for Celanese Corp. Option Trade Recommendations as of 01/25/2012 |
Data is based upon an assumed target price close to the current stock price of around $48/share. Data is of 01/25 close. Data should be checked carefully for errors.
--------------------------------------------------------------------------------
MASTER RECOMMENDATION LIST TODAY'S DATE: 1/25/12
--------------------------------------------------------------------------------
Recommended Trade Exp.Ret. St.Dev
----------------- ------- ------
1. CE B 4 Mar55c @0.45, S 4 Feb50c @1.15 +215 67
2. CE B 2 Mar60c @0.15, S 2 Feb50c @1.15 +94 55
3. CE S 1 Feb50c @1.15, S 1 Feb45p @0.40 +79 34
4. CE S 1 Feb50c @1.15 +71 34
5. CE B 3 Jun55c @2.00, S 3 Feb50c @1.15 +87 117
6. CE S 1 Feb50c @1.15, S 1 Feb42.5p @0.15 +54 34
7. CE S 1 Feb50c @1.15, S 1 Feb47.5p @1.00 +75 90
8. CE S 1 Feb50c @1.15, S 1 Feb37.5p @0.14 +53 34
9. CE S 1 Feb50c @1.15, S 1 Feb40p @0.05 +44 34
10. CE S 1 Feb45p @0.40 +10 0
11. CE S 3 Jun40p @1.40 +46 96
12. CE S 3 Feb37.5p @0.13 +7 0
13. CE B 4 Feb40p @0.20, S 4 Feb45p @0.40 +6 0
14. CE B 1 Jun60c @0.85, S 1 Feb50c @1.15 +2 23
15. CE S 1 Mar47.5c @3.20 +19 105
16. CE B 9 Mar50p @2.95, S 9 Feb47.5p @1.00 +150 453
17. CE S 1 Feb47.5p @1.00 +5 95
18. CE S 1 Jun47.5c @5.10 +2 105
19. CE S 80 shares @49.04 +14 145
20. CE S 1 Feb50c @1.15, S 1 Feb50p @2.00 +6 160
21. CE S 1 Feb50c @1.15, B 1 Feb50p @2.20 +1 182
22. CE B 2 Mar60c @0.15, S 2 Mar47.5c @3.20 +10 215
23. CE B 4 Mar55c @0.45, S 4 Mar47.5c @3.20 +38 363
24. CE B 7 Mar50p @2.95, S 7 Feb45p @0.40 +95 772
25. CE B 10 Feb50p @2.20, S 10 Feb45p @0.40 +12 1,656
01-25-2012: A Salute to Congresswoman Gabrielle Giffords |
Zenith wishes to join the many well-wishers in saluting Congresswoman Gabrielle Giffords of Tucson, Arizona. She has done was almost no one else could do, unite U.S. House of Represenatives in one accord, both Republicans and Democrats, in singleness of purpose, not only to honor her, but also America.
Without a doubt, her last act will be to secure across party lines what has become known as the "Giffords Bill" to greatly enhance the powers of law enforcement and border patrols to detect and punish smugglers who have caused so much violence along the Arizona border with Mexico. It would seem almost all partisan bickering regarding this bill has ceased and passage seems certain.
Shot in the head at close range, losing half her eyesight, ability to speak, walk, and the most basic functions of human life, she has shown great courage through recovery to a most remarkable extent. Her courage was as great as any veteran of war torn battlefields, and her obvious love for her constituents serves as an example for all.
Her resignation ceremony was a tearful event, attended by all, praised by Republicans though she is a Democrat, and some members of Congress broke down in their tributes including Speaker of the House and the Minority Leader and Minority Whip. We confess, we cried at little also.
When she submitted her resignation to Arizona's Governor Brewer and to Speaker Boehner, she did so in a Republican environment. Arizona is a Republican state, characterized by its Republican governor and Senator McCain. That had to be a painful decision for Democrats, as it offers an almost certain potential loss of another seat in Congress to the opposing party. She did so to focus upon recovery, for which no one could blame her, and resigned for all the right reasons in an era characterized by so many Congressional resignations for all the wrong reasons. God has blessed this country with her presence, and we join the many others in saluting this great American.
We will acknowledge that Arizona as a Republican state has not joined many of the midwestern states controlled by Republicans in a united attempt to disenfranchise voters by restricting voter rights, and serves as a better example for this country than some of those states, especially Wisconsin, Ohio, Indiana, and Colorado, as well as Virginia, Florida, and Maine, where attempts to restrict voter rights as a nationwide obsession by the Republican establishment is a disgrace. In many of these latter states, registrars of voters have opposed their governments to carry out courageously at great personal risk their essential and primary tasks of promoting democracy and the goal of enabling as many Americans as possible to avail themselves of the right to vote. We salute these individuals as well as the great State of Arizona.
01-22-2012: Zenith Revises Policy on Trading Days and Performance Update Period |
Our previous policy has been to try to reverse positions in stocks at least once weekly, close open positions in commodities at least once every other week, and update performance weekly. Because markets have been relatively flat of late, and because we believe article preparation is the most important function of this site, we have revised this policy. If the preceding week had shorter than 5 trading days, we will now attempt to reverse positions in stocks at least once every other week and close open positions in commodities at least once every three weeks instead of the previous procedure. If the preceding week had at least 5 trading days, no change in previous procedure will be made. (This week was shortered because of the Martin Luther King holiday.) The impact on profits appears to be minimal, and the revised procedure leaves us more time for the more important functions of this site. Beside, everyone needs a rest once in a while, and that's what holidays are for.
01-25-2012: Celanese Corporation (CE): Possible Fuel-Efficient Vehicle Play
01-20-2012: ABM Industries Inc. (ABM): Potential New Growth Areas
01-17-2012: Kronos Worldwide Inc. (KRO): Meaningful Insider Buying
01-13-2012: MGM Resorts International Inc. (MGM): Over Expansion
01-08-2012: Solutia, Inc. (SOA): Two Major Recent Transformations
01-04-2012: Morgan Stanley (MS): Too Big Not To Fail?
12-30-2011: Brink's Company (BCO): Remnant Free at Last from the Raiders
12-21-2011: Gulfport Energy Corporation (GPOR): Shale/Sands Not in Permian Basin or Gulf of Mexico
12-16-2011: Tyson Foods, Inc. (TSN): One of the Largest Meat Processors
12-09-2011: Seattle Genetics Inc. (SGEN): Recent Cancer Drug Approval
12-08-2011: Deluxe Corporation (DLX): Check Writing Diminishes
12-04-2011: Opko Health, Inc. (OPK): Massive Insider Buying
11-30-2011: Stamps.com, Inc. (STMP): Dot.com Era Survivor
11-20-2011: Barnes Group Inc. (B): Catalog Supplier of Aerospace Components
11-18-2011: Copa Holdings SA (CPA): Fastest Growing Latin American Airline
11-14-2011: Stage Stores Inc. (SSI): Price Was Right for Acquisitions
11-11-2011: Aspen Technology Inc. (AZPN): Inconsistent Earnings
11-06-2011: Exide Technologies Inc. (XIDE): Solar and Hybrid Alternate Energy Applications
11-01-2011: Gentiva Health Services Inc. (GTIV): Heart Versus Austerity
10-26-2011: Greif, Inc. (GEF): Focused on Containers
10-21-2011: Sotheby's Holdings Inc. (BID): Follow the Money
10-14-2011: Mela Sciences, Inc. (MELA): Waiting Upon the FDA
10-11-2011: Glatfelter, P.H. Company (GLT): Corporate Governance and Stability
10-07-2011: Parker-Hannifin Corporation (PH): Encouraging Employees to Particpate in the Process
10-06-2011: Zenith Monthly Traffic Report for September
10-03-2011: Vaalco Energy Inc. (EGY): Why Not Try Africa?
09-27-2011: Cognex Corporation (CGNX): Singing CEO Steps Down
09-21-2011: NII Holdings, Inc. (NIHD): Taking a Chance on Latin Americans
09-15-2011: RPC, Inc. (RES): Out of Diversification, Back to Core Business
09-09-2011: Rockwell Collins Inc. (COL): Juggling Military and Civilian Business
09-01-2011: DFC Global Inc. (DLLR): Loans Fare Better Overseas
08-29-2011: NetEase.com, Inc. (NTES): Overcoming Chinese Censorship
08-23-2011: Tower Group Inc. (TWGP): Insuring Small Businesses
08-18-2011: Harvest Natural Resources (HNR): Bargaining with Hugo Chavez
08-13-2011: Depomed Inc. (DEPO): Seeking Unencumbered Share of Profits
08-09-2011: Paccar Inc. (PCAR): Tied to World Economy
07-31-2011: USA Mobility Inc. (USMO): Paging Services
07-27-2011: Kemet Corporation (KEM): One World Now
07-22-2011: Rudolph Technologies Inc. (RTEC): Possibly Overlooked
07-19-2011: Chimera Investment Corp. (CIM): 17% Dividends Are Not Bad
07-14-2011: Mueller Industries Inc. (MLI): Possible Construction Industry Rebound
07-09-2011: Columbus McKinnon Corporation (CMCO): Searching for a Turnaround
06-30-2011: Air Transport Service Group Inc. (ATSG): Airborne Express Successor
Note: Zenith tries to pick only stocks which are shortable, but sometimes stocks appear afterward on the SEC Regulation SHO list of stocks which are not shortable, which is beyond our control.
On some stocks, Zenith may hold more than the number of shares it trades in its inventory. Thus the "short" sale of such a security would technically not be a "short" sale for us and not subject to SEC rules regarding selling securities which are not deliverable. Also, stocks pop on and off the list available for shorting on successive days, so the presence of a stock on the current SHO list doesn't mean it was there at the time it was shorted.
What are the last three entries in the Active Stocks chart list? These represent typical high-, low-, and mid-cap mutual funds to help us gage the tenor of the stock market as a whole.
Trading in stocks involves risk, and past performance is no guarantee of future profits. Zenith does not sell advice nor does it manage discretionary accounts other than its own. Readers should be aware of the vested interest that all traders / brokers have in encouraging other traders to make the same transactions. No one should follow investment advice blindly. This web site should be used only as a "sounding board" for confirming one's own opinion. Any suggested order placements should be reviewed and reset to fit current market conditions by individual traders.
Recommendations may include trades which have already been made on the same or a previous day,otherwise the issue is placed on a "watch list." Suggested stock trades are based upon an approximate maximum $30,000 capitalization requirement per trade. Zenith's actual trades may be larger.
