The Market is always Right

Lesson 10: The Market is always Right
What you believed about value and your reason for believing it may be of the highest quality, but if the market doesn't share your belief it doesn't really matter how right You are based on your superior reasoning process or what you believe to be the quality of your information, because prices are going to go in the direction of the greatest force.

The point here is that right and wrong as you may traditionally think of them don't exist in the Market environment. Academic, credentials, degrees, reputation, even a high I.Q. Don't make you right in this environment as they would in society. Movement in the markets creates opportunity to make money and making money in the markets is what trading is all about.

Each of you as individual traders will define what market conditions represents enough of an opportunity to put on a trade for whatever reason suit him or her. If the net result of the collective actions of all the traders participating in a move that us against your position, then they're right and you're the one who is losing money.

The markets are never wrong in what it does
"it just is."
So what do you do you are asking ?
1 as an individual interacting you must
1st : observer to perceive opportunity
2nd as a trader decide what is more important
Being right or making money because the two are no ways compatible or consistent with one another
3 master the techniques and the money will automatically follow
4: you have to believe 1 to 3 exist for you. And you only.

See charts in earlier posts coca cola Goldman

Coca cola better than expected on numbers for come $0.46 vs 0.45 revenue 11.35 billion vs 10.94. tops estimates
Goldman Sachs group better than expected
$4.29 vs $3.88 already up 1.6%
Revenue $ 10.09 billion vs $ 9.72 billion
Great news

Tracking Ebay releases its earnings on the 18/04/2013

Ebay daily 15/04/2013

eBay Inc. (EBAY) is set to report first quarter 2013 results on April17. Last quarter it posted a 4.92% positive surprise. Let’s see how things are shaping up for this announcement.

Growth Factors this Past Quarter

eBay’sstrength at PayPal, fast-growing presence in the mobile space and reinvigorated Marketplaces business all led to higher sales growth rates in the fourth quarter of 2012. The continuous introduction of new solutions to enhance the mobile shopping experience and rapid consumer adoption also attributed to higher sales. eBay’s mobile business touched $13 billion in 2012 and is expected to generate $20 billion of mobile commerce and payments volume in 2013.

However, the quarter was weak for eBay in terms of margin expansion. We believe that the sale of low-value items and increased expenditure on the launch of various new products will continue to hurt margins.

The company is also facing strong competition from major online retailer Amazon.com. Google (GOOG) has also been making some plays in the online retail/payments segment that potentially increase the competition for the company.

Earnings Whispers?

Our proven model does not conclusively show that eBay is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP (Read: Zacks Earnings ESP: A Better Method) and a Zacks Rank #1, #2 or #3 for this to happen. That is not the case here as you will see below.

Negative Zacks ESP:  The Most Accurate estimate stands at $0.53 while the Zacks Consensus Estimate is higher at $0.54. That is a difference of -1.85%.

Zacks Rank #3 (Hold): eBay’s Zacks Rank #3  (Hold) lowers the predictive power of ESP because the Zacks Rank #3 when combined with a negative ESP makes surprise prediction difficult. We caution against stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

17/04/2013 daily charts

18/04/2013

eBay, Inc. (EBAY) reported first quarter earnings of $0.63 per share on revenue of $3.7 billion. The consensus earnings estimate was $0.62 per share on revenue of $3.8 billion for the quarter ending March 31, 2013. The Earnings Whisper ® number was $0.64 per share.

Citi Group News

Citigroup Inc. (NYSE: C) today reported net income for the first quarter 2013 of $3.8 billion, or $1.23 per diluted share, on revenues of $20.5 billion. This compared to net income of $2.9 billion, or $0.95 per diluted share, on revenues of $19.4 billion for the first quarter 2012.

CVA/DVA was $(319) million ($(198) million after-tax) in the first quarter, mainly resulting from the improvement in Citigroup’s credit spreads, compared to $(1.3) billion ($(800) million after-tax) in the prior year period. First quarter 2012 results included a net gain of $477 million on minority investments ($308 million after-tax)⁵. Excluding CVA/DVA in both periods and the gain on minority investments in the first quarter 2012, first quarter 2013 revenues increased 3% from the prior year period to $20.8 billion. First quarter 2013 earnings were $1.29 per diluted share, representing a 16% increase from prior year earnings of $1.11 per diluted share (excluding CVA/DVA and the gain on minority investments in first quarter 2012), as higher revenues and lower net credit losses were partially offset by higher legal and related expenses, a lower loan loss reserve release and a higher effective tax rate.

Michael Corbat, Chief Executive Officer of Citi, said, “Achieving consistent, high-quality earnings is one of my top priorities and these results are encouraging. During the quarter, we benefitted from seasonally strong results in our markets businesses, sustained momentum in investment banking, continued year-over-year growth in loans and deposits in Citicorp, and a more favorable credit environment. However, the environment remains challenging and we are sure to be tested as we go through the year.

“In addition to our performance across business lines, there were several other areas where we made progress. We reduced the drag on earnings caused by Citi Holdings and utilized a modest amount of our deferred tax assets. Our capital strength again improved during the quarter with the Tier 1 Common Ratio increasing to an estimated 9.3% on a Basel III basis. It is critical that Citi be viewed as an indisputably strong and stable institution and we made progress towards that goal,” Mr. Corbat concluded.

Citigroup revenues of $20.8 billion in the first quarter 2013 increased 3% from the prior year period, excluding CVA/DVA and the gain on minority investments in the first quarter 2012. This increase was driven by 2% growth in Citicorp revenues and 15% growth in Citi Holdings revenues.

Citicorp revenues of $19.6 billion in the first quarter 2013 included $(310) million of CVA/DVA reported withinSecurities and Banking. Citicorp revenues of $19.9 billion increased 2% from the prior year period, excluding CVA/DVA and the impact of minority investment in the first quarter 2012. Securities and Banking revenues grew 8% (excluding CVA/DVA), Global Consumer Banking (GCB) revenues were flat and Transaction Services (CTS) revenues were down 4%, all versus the prior year period.

Citi Holdings revenues of $901 million in the first quarter 2013 included $(9) million of CVA/DVA. Excluding CVA/DVA, Citi Holdings revenues were $910 million, up 15% versus the prior year period. Higher revenues in the Special Asset Pool drove the improvement in Citi Holdings revenues from the prior year period reflecting lower asset marks and lower funding costs. The improvement in Special Asset Pool revenues was partially offset by a decline in Local Consumer Lending revenues, mainly due to the continuing decline in assets. Total Citi Holdings assets of $149 billion declined $60 billion, or 29%, from the first quarter 2012. Citi Holdings assets at the end of the first quarter 2013 represented approximately 8% of total Citigroup assets.

Citigroup’s net income rose to $3.8 billion in the first quarter 2013 from $2.9 billion in the prior year period. Excluding the impact of CVA/DVA and the gain on minority investments in the first quarter of 2012, Citigroup net income increased 17% to $4.0 billion. This increase was driven by revenue growth and lower net credit losses, partially offset by higher expenses, a lower loan loss reserve release and a higher effective tax rate. Operating expenses of $12.4 billion were 1% higher than the prior year period mainly reflecting an increase in legal and related costs and repositioning charges. Citigroup’s cost of credit in the first quarter 2013 was $2.5 billion, a decrease of 16% over the prior year period, reflecting a $994 million improvement in net credit losses partially offset by a $513 million decline in net loan loss reserve releases. The higher effective tax rate reflected both higher earnings in North America as well as a higher tax rate on international operations due to a first quarter 2013 change in the assertion that earnings in certain international entities would be permanently reinvested outside the U.S.

Morning update

Economics

China GDP well below expectations

Actual: 7.7%
Consensus: 8.0%
Previous: 7.9%

Gold officially enters a bear market after significant falls to lows of $1425 an ounce

Gold fall explanation:
5.5billion euros
Speculation 400 million hold reserve
Portugal and italy may follow and other countries could do the same.

Pure pure Speculation
Stocks

Citigroup Q1 2013 earnings released today

Time: 13:00
EPS: $1.18

The Goldman Sachs Group, Inc

t the top spot is Goldman Sachs Group, Inc. (NYSE:GS).  During the maelstrom on Wall Street in 2008 that claimed Bear Stearns, Lehman Brothers and Merrill Lynch, only Goldman Sachs Group, Inc. (NYSE:GS), JP Morgan Chase, and Morgan Stanley (NYSE:MS) (thanks to a $9 billion infusion from Mitsubishi Bank) emerged intact…almost.

Goldman Sachs restructured itself as bank holding company, providing it with an asset base to help fund its investment and lending operations.  As a result, the more conservative Goldman Sachs Group, Inc. (NYSE:GS) has a balance sheet many Wall Street firms would envy; revenue is up 19% from 2011; net income jumped 68%, and the trailing price earnings ratio of 10.2x beats the rest of the sector at 25.5x.  Compare this to Morgan Stanley (NYSE:MS) with a trailing price/earning ratio of 1111x and 17% drop in 2012 revenue.

Read more at http://www.insidermonkey.com/blog/goldman-sachs-group-inc-gs-starbucks-corporation-sbux-non-wall-street-guru-betting-on-these-stocks-115554/#krErT6PA01xYilcf.99 

The Goldman Sachs Group, Inc. (NYSE: GS) today announced that it has declared dividends on the following series of its non-cumulative preferred stock (represented by depositary shares, each representing a 1/1,000th interest in a share of preferred stock):

• $229.17 per share of Floating Rate Non-Cumulative Preferred Stock, Series A;
• $387.50 per share of 6.20% Non-Cumulative Preferred Stock, Series B;
• $244.44 per share of Floating Rate Non-Cumulative Preferred Stock, Series C;
• $244.44 per share of Floating Rate Non-Cumulative Preferred Stock, Series D; and
• $371.88 per share of 5.95% Non-Cumulative Preferred Stock, Series I.

In addition, Goldman Sachs has declared a dividend of $1,044.44 per share of Perpetual Non-Cumulative Preferred Stock, Series E, and a dividend of $1,044.44 per share of Perpetual Non-Cumulative Preferred Stock, Series F.

The dividends on the Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series I Preferred Stock will be paid on May 10, 2013 to preferred shareholders of record on April 25, 2013. The dividends on the Series E Preferred Stock and Series F Preferred Stock will be paid on June 3, 2013 to preferred shareholders of record on May 19, 2013.

The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.

Coke Coke Coke news today cut jobs

The Coca-Cola Company (NYSE:KO), the world’s largest maker of beverages announced its plan to cut 750 jobs in the United States as it continue to restructure its business operations, according to reportfrom the Associated Press.

A spokesperson of the company said that a quarter of the workforce reduction will be in Coca-Cola’s headquarters, and it will across the board. All of the affected employees will receive a notice from the management of the beverage maker in the next several weeks.

The Coca Cola Company (NYSE:KO) total workforce in North America is approximately 75,000 and the job cuts represent 1 percent.

Last month, the beverage maker sent a memo to its employees and indicated that it had identified several areas in the business operation of the company that needs improvement since acquiring the North American operations in 2010, which it the largest bottler of The Coca Cola Company (NYSE;KO).

The company’s memo also said that it was restructuring its business operations in the United States from seven geographies down to three geographies to reflect the successful structure of its food-service business. In addition, Coca-Cola noted that it was able to generate profits in a year “marked with continued uncertainty in the global economy.”

n 2012, The Coca-Cola Company (NYSE:KO) reported a global sales growth of 4 percent driven by the Coca Cola brand. The beverage maker posted $1.97 earnings per share for the full year and its comparable EPS was $2.01. The results were up 6 percent and 5 percent respectively.

The Coca-Cola Company had been consolidating its global bottling system in Brazil, Japan and a majority of its interest in Philippine bottling operations was sold to Coca-Cola FEMSA. The sale was completed last January 2013.

Yesterday 

The allure of Wall Street is strong. The minute by minute news bites are exciting and the plethora of people involved in the slightest movement of the market are entrancing. They know their audience and how to draw you in into their captivating world.

This was coke a few weeks ago

Earnings season has begun, and next Tuesday The Coca-Cola Company (NYSE:KO) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever surprises inevitably arise. That way, you'll be less likely to make an uninformed, knee-jerk decision.

The Coca-Cola Company (NYSE:KO) has the No. 1 brand in the world, and it represents the soft-drink industry in the Dow Jones Industrial Average. The stock has been on fire lately as investors look past lingering concerns about consumer demand and whether regulators and consumer groups will challenge its products due to health-related issues. But will that enthusiasm last, or will continued weak sales in the U.S. hurt the company's overall earnings prospects? Let's take an early look at what's been happening with The Coca-Cola Company (NYSE:KO) over the past quarter and what we're likely to see in its quarterly report.

Stats on Coca-Cola

Analyst EPS Estimate	$0.45
Change From Year-Ago EPS	2.3%
Revenue Estimate	$11.05 billion
Change From Year-Ago Revenue	(0.8%)
Earnings Beats in Past 4 Quarters	2

Source: Yahoo! Finance.

Will The Coca-Cola Company (NYSE:KO) fizz or fizzle out this quarter? Analysts have let their earnings estimates for Coke go a bit flat in recent months. They've dropped their earnings calls for the just-finished quarter by a penny per share and reined in their full-year 2013 estimates by $0.03 per share. Yet the stock has barely blinked, rising more than 10% since early January.

Coca-Cola has done an incredible job of taking its iconic U.S. brand and translating it to different populations and cultures around the world. Nearly 80% of  The Coca-Cola Company (NYSE:KO)'s case volume comes from outside North America, and its products can be found in more than 200 countries. Moreover, The Coca-Cola Company (NYSE:KO)'s fastest growth has come from abroad: During 2012, volume grew 11% in Eurasia and Africa and 5% in Latin America.

Coke's global expansion hasn't come without some hiccups along the way. Last month, Chinese authorities accused the beverage maker's employees of improperly using GPS equipment to illegally gather classified information. Nevertheless, with Coke, Sprite, and Minute Maid all remaining extremely popular in the emerging-market giant, Coca-Cola's Chinese growth prospects remain strong.

Still, Coke's biggest fight is closer to home, as falling soft-drink consumption has hurt both it and rival PepsiCo, Inc. (NYSE:PEP). Moreover, with a high-profile regulatory attempt in New York City to limit sugary-drink consumption, investors are realizing that Coke could become a target across the nation. PepsiCo, Inc. (NYSE:PEP) is fortunate enough to have its global snack business to fall back on, helping to cushion the full blow of any setback in the beverage segment. But Coke's concentration in drinks could hurt its U.S. sales to a greater extent.

In Coca-Cola's quarterly report, watch for the company to address how it plans to handle the controversial energy-drink segment. With energy drink makers facing even more serious health concerns than the overall beverage industry, Coke will need to plot a careful path in order to maximize its potential in the high-growth area of the beverage market.

Read more at http://www.fool.com/investing/general/2013/04/12/cokes-earnings-could-make-the-dow-pop.aspx#mMlem7kcqPaSogPG.99 

Below is coke today as we have been keeping a close eye on its Price moments ahead of it Price earnings on Tuesday 

 With such huge upside potential it hard no to wonder

The real question at the core of this is ‘what do you want from your investments?’ Do you want a source of entertainment or a solid portfolio to build your future? Answering these questions is paramount as to how you interpret the unending information that comes from Wall Street.

If you believe, as Warren Buffett and Peter Lynch believe, that true value from a stock comes from owing a part of a company and watching that company grow, then the ticker tape means little to you. You will get more from the periodic company earnings reports, and your time will be better spent in analyzing their contents than what Wall Street said five minutes ago.

Fortunes are not made overnight, they are tended and watered and eventually grow up much like I hope my teenagers eventually will.

As I contemplate these questions fro myself, I look at companies built to last not just beyond the next stock turnover, but for this earnings season and many more to come.

So in our journey to find companies that will last, the most important factor is to follow the money, so to speak. That means companies which make money, year over year, and don’t squander it or build up debt trying to expand their operations.

The Coca-Cola Company (NYSE:KO)

This stock is a Warren Buffett darling. The company, started by a pharmacist in Georgia in 1886, has grown into an international brand. The company has built a sustainable competitive advantage, and because it is affordable and consumable, it means customers need to keep coming back for more.

Read more at http://www.insidermonkey.com/blog/the-coca-cola-company-ko-a-few-companies-that-are-built-to-last-116319/#jQpukZ1JWufhqlMM.99