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CFD Traders DiaryHousing shares under pressure on poor Persimmon numbers24/4/2008 There was more bad news from the housing market today as Persimmon dropped heavily after it said it expected the market to become even more challenging. In a shock to some analysts, sales have dropped by 24% since the start of 2008, while sales reservation volumes remained flat last month. Traders are busy marking the prices of other housebuilding shares down, and the question now becomes one of cashflow in this notoriously cyclical sector, for which we still stay bearish. Some of the oil stocks have really accelerated in the last couple of sessions as there are no signs of any retreat in crude prices. Today has seen Tullow Oil and BG group at the top of the pile, and the feeling is that we are about to see some more M&A activity here, so it remains dangerous to be short.
Another interesting situation is Shire pharmaceuticals which shot up late yesterday after it said that the US Food and Drug Administration had approved tits hyperactivity drug Vyvanse for the treatment of Attention Deficit Hyperactivity Disorder in adults. The shares moved ahead at the open today, but have drifted back. Tomorrow brings the company's formal trading statement, and if the news is good these could really move up sharply again. |
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