The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
7 January 2010
Date Line: Hong Kong (SAR) China
You can now follow us on Twitter please go to http://twitter.com/EbelingHefferna and join in.
US equities finished flat as the broader market consolidated Monday's big gainer for the 2nd session running on light trade.
Re-cap of the US Stock Market Action for the session ending 6 January 2010 The DJIA gained 1.66 pts, or 0.02%, to close at 10,573.68, the S&P 500 added 0.62 pts, or 0.05%, to close at 1,138.05 and the NAS tallied up a minus 7.62, or 0.33%, to end the session at 2,310.89. The FOMC minutes showed that some members think more stimulus may be desirable, thus, putting pressure on the USD; it lost 0.2% against a basket of foreign currencies. Plus, the US Federal Reserve signaled that the economic recovery is not strong enough to raise interest rates off of Ground Zero. The USD's drop helped raised commodities prices. Crude Oil prices gained 1.7% to close at US$83.18 bbl. on a January 1 inventory increase of 1.33M bbls. Agricultural: Monsanto (MON 86.64, +1.63) shares made a multi-month high Wednesday (covered on Stock Talk yesterday). Advancing Sectors: Materials (+1.5%), Energy (+1.0%), Health Care (+0.5%), Utilities (+0.5%), Financials (+0.4%), Industrials (+0.2%) Declining Sectors: Telecom (-3.0%), Tech (-0.9%), Consumer Staples (-0.1%) Unchanged: Consumer Discretionary Volume and Breadth: trade was light on the NYSE, with 1.11B/shrs changing hands, below last year's estimated daily average of 2.18B/shrs, and on the NAS, about 2.28B/shrs traded. Advancers outnumbered decliners on the NYSE by 3 to 2, and on the NAS about 5 stocks fell for every 4 that rose. Stocks to Watch Today Barrick Gold Corporation (ABX), Bank of America (BAC), Caterpillar, Inc (CAT), and The Dow Chemical
Barrick Gold Corporation (ABX) Up-Date 4
Last Look: December 8, 2009
January 7, 2009 Paul A. Ebeling, Jnr. Analyst Today, let’s look at Barrick Gold Corporation (ABX), the Golden name in the world’s Gold mining sector: from a Technical POV. The overall indications, after Friday’s (01-30-2009) market action, are: Neutral, 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: Barrick Gold: Notice to Holders of Placer Dome 2.75% Convertible Senior Debentures
Wednesday’s Market Action
Close 41.76 + .87
There is one Gap open up on January 6, 2009 at: 41.10/41.14, support at 40.72, resistance at 42.05 and the 50 day exponential moving average is 40.61. This is Barrick Gold Corporation: In the world of mining, Barrick Gold is the Gold Standard. The company became the world's One # One Gold producer, ahead of Newmont Mining and AngloGold Ashanti, after acquiring Placer Dome in 2006. Barrick puts out 8MM ozs of Gold annually and has 125MM ozs in proven and probable reserves. About ½ of its production comes from the North American operations, which include Goldstrike, located in Nevada's Carlin Trend Gold producing region. Outside of North America Barrick has active projects in Tanzania, Peru, and Australia. On the Placer Dome acquisition came huge copper mining operations that brought Barrick more than 6B Lbs of Copper reserves. Note: In the metals mining sector demand is driven by industrial demand and economic growth, both domestic and foreign. A company’s profitability depends on volume and efficient operations. Large companies like Barrick can afford to discover and develop new deposits and increase reserves. Small companies typically own just one mine, limit exploration to that one property, and operate it as efficiently as possible. Gold mining today is highly automated; annual revenue per employee is approx. US$30 Gold and Politics On August 15, 1971, US President, Richard Nixon unilaterally canceled the Bretton Woods system and stopped the direct convertibility of the United States dollar to gold. As a result, the U.S. dollar was decoupled from Gold, and Gold prices could fluctuate like any other commodity. The data is limited when comparing the performance of Gold prices as they relate to the political affiliation of the President of the United States. There are some striking similarities between the performance of Gold prices during the great Gold Bull Market of the 1970s and today's Gold Bull Market and how the Presidential political affiliation was and is tilted. When Barack Obama, was elected the 44th President of the United States of America, some Gold Bugs became extremely happy because the biggest Gold Bull Market in modern history peaked during a political landscape that is similar to what we see today. Barrick Gold Corporation (HQ) Peter Munk, Chairman and acting CEO Brookfield Place, TD Canada Trust Tower, 161 Bay St., Ste. 3700 Toronto, Ontario M5J 2S1, Canada Phone: 416-861-9911 Fax: 416-861-2492 Toll Free: 800-720-7415 www.barrick.com
Bank of America (BAC) Up-date 61
Last Look: November 19, 2009
December 7, 2009
Paul A. Ebeling, Jnr. Analyst Today let’s look at Bank of America (BAC), the USA’s big brand bank, from a Technical POV. The overall indications, after Wednesday’s (January 6, 2010) market action are, overall 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: Nationwide credit card issuers like Citi, BofA and Capital One will be hurt by the CARD Act, but how much? http://www.forbes.com/2010/01/06/citigroup-jpmorgan-capital-one-business-wall-street-credit-card.html? partner=yahootix
Wednesdayâ€™s Market Action Close
There is one Gap open up on July 30, 2009 at 13.75/13.79, the near term resistance is 16.43, support at 16.28, and the 50 day (EMA) exponential moving average is 15.69. This is Bank of America (BAC): This Company has operations in 32 states, the District of Colombia and 44 foreign countries. In the US it has more than 6,000 retail banking centers and 18,500 ATMâ€™s. Two key areas of business for this company are Global Consumer and Small Business Banking. Global Corporate and Investment Banking provide comprehensive financial solutions to their institutional clients. Global Wealth and Investment Management offers banking and investment services to more than 3 million individual and institutional customers World Wide. Recent Major developments have afforded the opportunity to purchase various marquee businesses such as Countrywide Financial, LaSalle Bank, U.S. Trust Corp, MBNA, and FleetBoston. Acquiring of these businesses will provide BAC a strong presence in their mutually respective core markets.
Competitive Landscape Leveraged loans, collateralized debt obligations and subprime-related assets will continue to be a source of uncertainty for the entire sector. Government intervention has played a role in strengthening bank balance sheets and consumer confidence. The government recently released a framework for the purchase of the aforementioned toxic assets. The industry is heavily tied to the extension of credit to credit worthy consumers. As deterioration in consumer based businesses continues in the US coupled with tighter lending standards, banks will find it difficult to identify lucrative investment opportunities.
Bank of America (HQ) Chairman and Chief Director: Walter E Massey 100 North Tryon St. 18th Fl Charlotte, NC 28255 United States Phone: 704-386-5681 Fax: 704-356-6699 http://www.BankofAmerica.com
Caterpillar, Inc. (CAT) Up-date 17
Last Look: November 20, 2009
January 7, 2010 Paul A. Ebeling, Jnr. Analyst Letâ€™s have a look at Caterpillar, Inc. (CAT), the World's #1 maker of earthmoving machinery and a leading supplier of agri. equipment, from a Technical POV. The overall indications, after Thursdayâ€™s (November 19, 2009) 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: Caterpillar, CIT Options Lure Bullish Traders
http://www.thestreet.com/_yahoo/story/10657066/1/caterpillar-cit-options-lure-bullish-traders.html? cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA Wednesdayâ€™s Market Action Close 59.43
There are five Gaps open up between July 20 and September 8, 2009 at 34.30/46.36 the near term resistance 60.56, support at 57.84, and the 50 day (EMA) exponential moving average is 57.11. This is Caterpillar, Inc (CAT): Caterpillar is the world's #1 maker of earthmoving machinery and a leading supplier of agricultural equipment. It makes construction, mining, and logging machinery; diesel and natural gas engines; industrial gas turbines; and electrical power-generation systems. Caterpillar has plants worldwide and sells its equipment globally via a network of 3,600 locations in 180 countries, offering rental services through more than 1,600 outlets worldwide, and it provides financing and insurance for its dealers and customers. Cat Power Ventures invests in power projects that use Caterpillar power generation equipment, and Caterpillar Logistics Services offers supply chain services
Industries Where Caterpillar Competes Construction, Mining & Other Heavy Equipment Manufacturing Agricultural Machinery Manufacturing Financial Services Insurance Transportation Services
Caterpillar, Inc. (HQ) Chairman and CEO James W. (Jim) Owens
100 NE Adams St. Peoria, IL 61629 United States Phone: 309-675-1000 Fax: 309-675-1182 http://www.cat.com
Caterpillar Subsidiaries Caterpillar Logistics Services, Inc. Mitsubishi Caterpillar Forklift America Inc. Progress Rail Services Corporation
The Dow Chemical Company (DOW) Up-date 3
Last Look: July 29, 2009
January 7, 2009 Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at The Dow Chemical Company (DOW), the # 1 US chemical company, from a Technical POV. The overall indications, after Wednesdayâ€™s (January 6, 2010) market action, are Bullish: in the near term Neutral, mid-term Bullish, and long term Bullish. The recent Candle Stick analysis is: Very Bearish.
**Chart by: http://www.stockta.com
Latest News and Opinion: Dow Chemical shares jump to new 52-week high; analysts say co. positioned to gain from rebound http://finance.yahoo.com/news/Dow-Chemical-shares-rise-on-apf-2325655329.html?x=0&.v=1
Tuesday’s Market Action Close 31.02
There is a Bearish Doji Star on January6, 2010 and one Gap open on January 6, 2010 at 30.53/30.78, the near term resistance is 30.66, support at 32.35, and the 50 day exponential moving average is 27.30. This is Dow Chemical Company (DOW): The Company is a world leader in the production of plastics, chemicals, hydrocarbons, and agrochemicals. It is the largest chemical company in the US and #2 in the world. The company is also is a leader in performance plastics, i.e., engineering plastics, polyurethanes, and materials for Dow Automotive. Other products include polyethylene resins for packaging, such as Styrofoam brand insulation, fibers, and films, as well as performance chemicals like acrylic acid. The company also manufactures commodity chemicals (chlor-alkalies and glycols) and agricultural chemicals. A unit, Hydrocarbons and Energy, makes petrochemicals. Dow owns 50% of silicone products maker Dow Corning. Dow Chemical's competition is in the industrial, agricultural and performance sectors of the Chemical Manufacturing Industry.
Competitive Landscape Demand depends on the overall strength of the US economy, because most industrial chemicals are used in the manufacture of more-complicated products like fibers, plastics, paints, and paper. The profitability of individual companies is closely linked to efficient operations, because most products are commodities. Big producers have large economies of scale in production, which is why some chemicals are made by just a handful of companies. Small companies can compete effectively by making specialized or highlypurified products. The industry is highly automated: average annual revenue per employee is over US$600,000.
Industries Where Dow Chemical Competes Chemicals Plastic & Fiber Manufacturing Agricultural Chemicals Basic and Intermediate Chemical & Petrochemical Manufacturing Paints, Coatings & Other Finishing Product Manufacturing Specialty Chemical Manufacturing
Chemical Manufacturing - Industrial Industry Forecast The output of US petrochemicals, industrial gas, synthetic dyes and pigments, and other basic chemicals is forecast to grow at an annual compounded rate of 3.9 % between 2008 and 2013. Dow Chemical (HQ)
Chairman, President & CEO Andrew N. Liveris
2030 Dow Center Midland, MI 48674 United States Phone: 989-636-1000 Fax: 989-636-1830 Toll Free: 800-258-2436 http://www.dow.com
Disclaimer DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE OR IN OUR NEWSLETTERS. Red Roadmaster is not registered as a securities broker-dealer or an investment advisor either within the US Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice.
The information contained on our website or in any of our newsletters should be viewed as commercial advertisement and is not intended to be investment advice. Any information found on our website, or in any of our newsletters is not provided to any particular individual with a view toward their individual circumstances. The information contained on our website, and in any newsletter we distribute, is not an offer to buy or sell securities. We distribute opinions, comments, and information free of charge exclusively to individuals who wish to receive them.
Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company. An individual should never invest in the securities of any of the companies’ profiled based solely on information contained in our report. Individuals should assume that all information contained on our website or in one of our newsletters about profiled companies is not trustworthy unless verified by their own independent research.
Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment adviser or licensed stock broker before investing.
Information contained in the Redroadmaster Stock Talk report will contain “forward looking statements” as defined under section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.
Red Roadmaster is committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable. To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in this report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information). We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org