The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
6 November 2009
Date Line: Hong Kong (SAR) China
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Red Alert: DJIA at 2009 Peak The Bull Charged and US stocks rallied sending the DJIA to a 13 month high Monday
Re-cap of the US Stock Market Action for the session ending 9 November 2009 A agreement by the G-20 finance ministers and central bankers over the weekend keeps the stimulus in place and thus boosts global stocks on the expectation of continuing low interest rates worldwide. Lower interest rates worldwide make investing in risky assets like stocks more attractive, and reduce the cost of corporate financing used for investment. The US$ tapped a 15-month low, driving commodity prices and materials stocks North. The DJIA roared North 203.52 pts, or 2.03%, to close at 10,226.94, the S&P 500 gained 23.78 pts, or 2.22%, to close at 1,093.08, and the NAS tallied up + 41.62 pts, or 1.97%, to end the session at 2,154.06. Financial stocks were also top performers in the session, with shares of American Express Co up 4.9% at US$39.05/shr, (American Express is covered in Stock Talk today). Corporate mergers and acquisitions spurred the Bull, and General Electric Co closed up 3.4% at US$15.85 after a source said GE and Comcast Corp agreed on a valuation of US$30B for a Joint Venture between NBC Universal and Comcast. Gold prices tapped a new all time high of US$1111.70 oz before pulling back a bit to settle with a 0.5% gain at US$1101.40 oz, and buying in Crude Oil futures drove prices above US$80 bbl, but momentum faded and contracts closed with Crude Oil priced at US$79.43 bbl, up 2.6%.
Advancing Sectors: Financials (+3.6%), Materials (+3.2%), Industrials (+2.5%), Telecom (+2.3%), Consumer Discretionary (+2.2%), Tech (+2.2%), Utilities (+1.7%), Health Care (+1.7%), Energy (+1.5%), Consumer Staples (+1.5%) Declining Sectors: (None) Volume and Breadth: Trade was moderate on the NYSE, with 1.24B/shrs changing hands, below last year's estimated daily average of 1.49B/shrs, and on the NAS, about 2.03B/shrs traded, below last year's daily average of 2.28B/shrs. Advancers outnumbered decliners on the NYSE by a ratio of about 5 to 1, and on the NAS, about 9 stocks rose for every 4 that fell.
Stocks to Watch Today American Express (AXP), Dendreon Corp. (DNDN), McDonaldâ€™s Corporation (MCD), and Wynn
American Express Company (AXP) Up-date 6
Last Look: October 22, 2009
November 10, 2009 Paul A. Ebeling, Jnr. Analyst Today let’s look at American Express Company (AXP), one of the World’s largest travel agencies, from a Technical POV. The overall indications, after Monday’s (November 9, 2009) market action, are Bullish: in the near term Neutral, mid-term Bullish, and long term Bullish. The recent Candlestick analysis is: Very Bearish.
**Chart by: http://www.stockta.com
Latest News: Nov. 10: S&P Stocks Trading at New 52-Week Highs http://www.cnbc.com/id/33829000/site/14081545?__source=yahoo|headline|quote|text|&par=yahoo
Mondayâ€™s Market Action Close 39.05 + 1.84
There is a Bearish Harami on November 6, and three Gaps open up between July 13, and October 8, 2009 at 23.38/34.06, the near term resistance is NIL, support at 38.77, and the 50 day (EMA) exponential moving average is 34.43. This is American Express Company (AXP): The Company is one of the world's largest travel agencies, but it is better known for its charge cards and revolving credit cards. And yes, the company still issues traveler's checks and publishes such magazines as Food & Wine and Travel & Leisure through its American Express Publishing unit. Its travel agency operations have more than 2,200 locations worldwide
and its Travelers Cheque Group is the world's largest issuer of traveler's checks (it also issues gift cards). But the company's charge and credit cards are its bread and butter; American Express has more than 92 million cards in circulation worldwide. Competitive Landscape Demand is driven by consumer income and demographics. The profitability of individual companies depends on the correct assessment of repayment likelihood and effective collections activities. Large companies have an advantage in using computers to serve large portfolios of mortgage and credit card loans, and also have access to cheaper sources of funds, but small companies can compete effectively in the cash lending or sales finance segments, where personal contact is more important. Consumer Finance Industry Forecast The output of US credit cards and finance companies, which includes consumer finance, is forecast to grow at an annual compounded rate of 1% between 2008 and 2013. Data Sourced: December 2008
American Express Company (HQ) Chairman, Chief Exec. Officer: Kenneth I. Chenault World Financial Center 200 Vesey Street New York, NY 10285 United States Phone: 212-640-2000 Fax: 212-619-9230 http://www.americanexpress.com
Dendreon Corp. (DNDN) Up-date 4
Last Look: April 30, 2009
November 10, 2009 Paul A. Ebeling, Jnr. Analyst
Today let’s look at Dendreon Corp. (DNDN), the #1 cancer vaccine biotech company, from a Technical POV. The overall indications, after Monday’s (November 9, 42009) market action, are Neutral: in the near term Neutral, mid-term Bullish, and long term Neutral. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News and Opinion: Dendreon Q-3 loss wider than expected on higher expenses http://www.reuters.com/article/marketsNews/idCNBNG46126120091109?rpc=44
Monday’s Market Action Close 29.31
There is one Gap open up on November 8, 2009 at 28.62/28.78, the near term resistance is 29.93, support at 28.69 and the 50 day (EMA) exponential moving average is 26.71. This is Dendreon Corp. (DNDN): This biotechnology company engages in the discovery, development, and commercialization of therapeutics to enhance cancer treatment options for patients. The companyâ€™s product portfolio includes active cellular immunotherapy, monoclonal antibody, and small molecule product candidates to treat various cancers. Its product candidates comprise Provenge (sipuleucel-T), an active cellular immunotherapy that has completed two Phase III trials for the treatment of asymptomatic, metastatic, and androgen-independent prostate cancer; and Neuvenge (lapuleucel-T), an investigational active immunotherapy for the treatment of patients with breast, ovarian, and other solid tumors expressing HER2/neu. The company also has a range of products in preclinical studies, which include CEA for the treatment of breast, lung, and colon cancer; CA-9 (MN) for the treatment of kidney, colon, and cervical cancer; Anti-Serine Protease for the treatment of multiple cancers; and Anti-HLA-DR for the treatment of hematologic malignancies, as well as TRPM8 for the treatment of lung, breast, prostate, and colon cancer. Dendreon Corporation, formerly known as Activated Cell Therapy, Inc., was founded in 1992 and is headquartered in Seattle, Washington.
Competitive Landscape Demand for biotechnology products and services are driven primarily by the willingness of insurers to pay for new medical treatments. The profitability of individual companies depends on the discovery and effective marketing of new products. Because the market for potential products is so large, small biotechnology companies can co-exist successfully with large ones if they have expertise in a particular line of research. Biotechnology Sector Industry Forecast
The output of US scientific research and development, an indicator of biotechnology activity, is forecast to grow at an annual compounded rate of 9% between 2008 and 2013. Data Sourced: December 2008 Dendreon Corp. (HQ) Mitchell H. Gold M.D. Chief Executive Officer and President 3005 First Avenue Seattle, WA 98121 United States Phone: 206-256-4545 Fax: 206-256-0571 http://www.dendreon.com
McDonald's Corporation (MCD) Up-date 11
Last Look: July 23, 2009
November 10, 2009 7
Paul A. Ebeling, Jnr. Analyst Today let’s look at McDonald’s Corporation (MCD), the world's #1 fast-food company, from a Technical POV. The overall indications, after Monday’s (November 9, 2009) market action, are Very Bullish: in the near term Very Bullish, mid-term Very Bullish, and long term Bullish. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News and Opinion: Stock Picks: McDonald's, Northrop Grumman, Disney http://www.businessweek.com/investor/content/nov2009/pi2009119_681059.htm?campaign_id=yhoo Monday’s Market Action Close 62.64 + .92 Volume 10,518,000/shrs
There are no Gaps open up or down on the Chart, the near term resistance is NIL, support at 61.32, and the 50 day (EMA) exponential moving average is 58.13. 8
This is McDonaldâ€™s Corporation (MCD): "McDonald's is the world's #1 fast-food company by sales, with more than 31,000 restaurants serving burgers and fries in 120 countries, with about 14,000 Golden Arches locations are in the USA. The popular chain is well-known for its Big Macs, Quarter Pounders, and Chicken McNuggets. Most of its outlets are free-standing units, but McDonald's also has many quickservice kiosk units located in airports and retail areas. Each unit gets its food and packaging from approved suppliers and uses standardized procedures to ensure that a Big Mac purchased in Pittsburgh tastes the same as one bought in Beijing, I lived in Beijing for 4 years and itâ€™s true. More than 75% of its restaurants are run by franchisees or affiliates.
The Competitive Landscape Demographics and personal income drive demand. The profitability of individual companies depends on efficient operations, effective marketing, and the ability to provide fast service. Large companies have advantages in purchasing, financing, and marketing. Small companies can compete by offering unique products or serving a local market. The industry is highly labor-intensive: average annual revenue per worker is just under US$40,000. McDonald's Corporation (HQ) Chairman: Andrew J. (Andy) McKenna Sr. 2111 McDonalds Dr. Oak Brook, IL 60523 United States Phone: 630-623-3000 Fax: 630-623-5004 Toll Free: 800-244-6227 http://www.mcdonalds.com
McDonald's Subsidiaries McDonald's Restaurants Limited Ronald McDonald House Charities, Inc.
Wynn Resorts Ltd. (WYNN) Up-date 4
Last Look: August 13, 2009, 2009 9
November 19, 2009 Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at Wynn Resorts Ltd. (WYNN), the brainchild of gaming wizard Steven Wynn, from a Technical POV. The overall indications, after Monday (November 9, 2009) market action, are Neutral: in the near term Neutral, mid-term Neutral, and long term Neutral. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News and Opinion: Wynn and Encore hold more Forbes Five Star awards than any other casino resort in the world
Monday’s Market Action Close 63.54 + 3.81
There is a Bullish Engulfing Candle on November 3, and three Gaps open up between July 13, and November 9, 2009 at 34.05/62.23, the near term resistance is 65.86, support at 61.20, and the 50 day (EMA) exponential moving average is 60.61. This is Wynn Resorts Ltd. (WYNN): Wynn Resorts is the brainchild of gaming mogul and former Mirage Resorts chairman Steve Wynn. The US$2.4B resort and casino, built on the site of the former Desert Inn on the Las Vegas Strip, boasts more than 2,700 rooms, a casino with nearly 2,000 slots and about 140 table games, some 20 restaurants, a golf course, an art gallery (featuring Wynn's personal collection), two wedding chapels, and a Ferrari and Maserati dealership. Wynn Resorts also includes Encore at Wynn Las Vegas, a hotel and casino adjacent to its Wynn Las Vegas property, and the Wynn Macau, a hotel and casino in China. Steve Wynn owns about 21% of the company.
Competitive Landscape Growth in consumer income and state spending has driven expansion of the US gambling industry. The profitability of individual companies depends on efficient operations and effective marketing. Large operators have the financial resources to make large investments in facilities and efficient computer operations, and have cross-marketing opportunities. Small gambling facilities can thrive by catering to a local clientèle. The industry is fairly labor-intensive: annual revenue per employee is US$90,000. Gambling Operations Industry Forecast US personal consumption expenditures for participant amusements and pari-mutuel net receipts, which include gambling operations, are forecast to grow at an annual compounded rate of 4 % between 2008 and 2013. Data Sourced: December 2008
Wynn Resorts Ltd. (HQ) Chairman and Chief Executive Officer: Stephen A. Wynn 3131 Las Vegas Boulevard South Las Vegas, NV 89109 United States Phone: 702-770-7555 Fax: 702-770-1571 http://www.wynnresorts.com
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