The Red Roadmaster’s US Market Re-cap + Stock Talk ™
13 January 2010
Date Line: Hong Kong (SAR) China
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Red’s Bull Alert: The S&P 500 is up 68% since hitting its bottom on March 9, 2009. Re-cap of the US Stock Market Action for the week ending 12 January 2010 The S&P 500 is up 68% since hitting its bottom on March 9, 2009. US stocks sold off a bit Tuesday as the financials weakened on rumors, and Alcoa disappointed. The S&P 500 broke a 6 day winning streak as banks led the financial sector lower. The DJIA lost 36.73 ps, or 0.34%, to close at 10,627.26, the S&P 500 dropped 10.76 pts, or 0.94%, to close at 1,136.22, and the NAS tallied up a minus 30.10 points, or 1.30%, to end the session at 2,282.31. Shares of Alcoa, a Dow component, fell 11.1% to US$15.52, their biggest 1 day percentage slide since March as the aluminum company's weaker-than-expected results weighed on sentiment. A potential pullback in Chinese demand would major setback for exporters, who include commodity companies like Alcoa. Shares of other big manufacturers got hammered too, with Caterpillar Inc sliding nearly 3% to US$62.24 and Newmont Mining falling 3.3% to US$48.52. The S&P materials index declined nearly 2%. Bank of America, was sued again by the SEC on Tuesday over its takeover of Merrill Lynch & Co, fell to US$16.36/shr, Citigroup dropped to US$3.52/shr, and JPMorgan fell to US$43.49/shr. Volume and Breadth: trade on the NYSE was 1.10B/shrs, below last year's estimated daily average of 2.8B/shrs, and on the NAS, about 2.40B/shrs traded, well above last year's daily average of 1.63B/shrs. Decliners outnumbered advancers on the NYSE by more than 5 to 2, and on the NAS the ratio was also about 5 to 2. Stocks to Watch Today The Coca Cola Company (KO), McDonald’s Corporation (MCD), PepsiCo, Inc. (PEP), and WalMart Stores, Inc (WMT)
The Coca Cola Company (KO) Up-date 6
Last Look: December 17, 2009
January 13, 2010 Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at The Coca Cola Company (KO), the world's #1 soft-drink company, from a Technical POV. The overall analysis after Tuesdayâ€™s (January 12, 2010) market action is Neutral: in the near term Bearish, mid-term Neutral, and long term Neutral. The recent Candle Stick analysis is: Very Bullish
**Chart by: http://www.stockta.com
Latest News and Opinion: Procter & Gamble Gains; Merrill Turns Bullish http://blogs.barrons.com/stockstowatchtoday/2010/01/12/procter-gamble-gains-merrill-turns-bullish/? mod=yahoobarrons
Tuesdayâ€™s Market Action Close 56.88
There is a Bullish engulfing Candle on January 11, and two Gaps open down between December 17, 2009 and January 8, 2010 at 58.38/55.64, the near term resistance is 58.11, support at 56.15, and the 50 day (EMA) exponential moving average is 56.56. This is The Coca Cola Company (KO): Coke is It, "It" being the world's #1 soft-drink company. The Coca-Cola Company owns four of the top five soft-drink brands; Coca-Cola, Diet Coke, Fanta, and Sprite. Its other brands include Barq's, Minute Maid, POWERade, and Dasani water. In North America, it sells Groupe Danone's Evian. Coca-Cola sells brands from Dr Pepper Snapple Group (Crush, Dr Pepper, and Schweppes) outside Australia, Europe, and North America. The firm makes or licenses more than 400 drink products in more than 200 nations. Although it does no bottling itself, Coke owns 35% of Coca-Cola Enterprises, the #1 Coke bottler in the world; 32% of Mexico's bottler Coca-Cola FEMSA; and 23% of European bottler Coca-Cola Hellenic Bottling. Competitive Landscape Demand for non-alcoholic beverages is driven by consumer tastes and demographics. The profitability of individual companies depends on effective marketing. Large manufacturers have economies of scale in production and distribution, with average annual revenue per production worker close to US$1MM. Small companies can compete by producing new products, catering to local tastes, or selling at lower prices. Beverage Manufacture and Bottling Industry Forecast The output of US soft drinks and ice manufacturing is forecast to grow at an annual compounded rate of 4.9 % between 2008 and 2013.
The Coca Cola Company (HQ) Muhtar Kent , Chairman, Chief Exec. Officer, President Coca-Cola Plaza Atlanta, GA 30313-2499 United States
Phone: 404-676-2121 http://www.coca-cola.com Coca-Cola Subsidiaries and Affiliates Coca-Cola FEMSA, S.A.B. de C.V. Coca-Cola GmbH Coca-Cola North America
McDonald's Corporation (MCD) Up-date 12
Last Look: December 11, 2009
January 13, 2010 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 Tuesday’s (January 12, 2010) 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: McDonald's is up in a down market. http://www.cnbc.com/id/15840232?play=1&video=1383901832&__source=yahoo|headline|quote|video| &par=yahoo
Tuesday’s Market Action Close 62.66
Volume 7, 199,300/shrs
There is one Gap open down on November 27, 2009 at 64.27/63.86, the near term resistance is 63.77, support at 62.03, and the 50 day (EMA) exponential moving average is 61.82. This is McDonald’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 it’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.
PepsiCo, Inc. (PEP) Up-date 7
Last Look: November 12, 2009
January 12, 2010
Paul A. Ebeling, Jnr. Analyst Today let’s look at PepsiCo, Inc. (PEP), the World's #2 carbonated soft drink maker, from a Technical POV. The overall indications, after Tuesday’s (January 12, 2010) market action, are Neutral, in the near term Neutral , mid-term Bullish, and long term Neutral. The recent Candle Stick analysis is: Very Bullish
**Chart by: http://www.stockta.com
Latest News and Opinion: Rob's Wrap: ALV, ECLP, PEP http://secure2.thestreet.com/cap/login/rm_mbp_yho_clean.jsp? cm_ven=YAHOO&cm_cat=PREMIUM&cm_ite=003190&flowid=83e3616590&url=http://www.thestreet.co m/p/_yahoo/rmoney/investing/10660187.html
Tuesday’s Market Action
Close 61.55 + .85 Volume 9,081,800/shrs
There is a DOJI on January 11, are one Gap open down at 63.45/62.39: the near term resistance is 61.86, support at 61.20 and the 50 day (EMA) exponential moving average is 61.34. This is PepsiCo, Inc. (PEP): The PepsiCo vs. KO challenge never ends for the world's #2 carbonated soft-drink maker. Its soft drinks include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage: Pepsi sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. The company also owns Frito-Lay, the world's #1 snack maker with offerings such as corn chips (Doritos, Fritos) and potato chips (Lay's, Ruffles). Its Quaker Foods division offers breakfast cereals (Life), pasta (Pasta Roni), rice (Rice-A-Roni), and side dishes (Near East). A true global giant, Pepsi's products are available in some 200 countries. The Competitive Landscape Demand for non-alcoholic beverages is driven by consumer tastes and demographics. The profitability of individual companies depends on effective marketing. Large manufacturers have economies of scale in production and distribution, with average annual revenue per production worker close to US$1MM. Small companies can compete by producing new products, catering to local tastes, or selling at lower prices. Beverage Manufacture and Bottling Industry Forecast
The output of US soft drinks and ice manufacturing is forecast to grow at an annual compounded rate of 4.9% between 2008 and 2013. PepsiCo, Inc. (HQ) Chairman and CEO Indra K. Nooyi 700 Anderson Hill Rd. Purchase, NY 10577-1444 United States Phone: 914-253-2000 Fax: 914-253-2070 http://www.pepsico.com
PepsiCo Subsidiaries Frito-Lay North America The Gatorade Company Naked Juice Company
Wal-Mart Stores, Inc. (WMT) Up-date 21
Last Look: December 11, 2009 7
January 13, 2010 Paul A. Ebeling, Jnr. Analyst Today let’s look at Wal-Mart Stores, Inc (WMT), the World's #1 retailer, from a Technical POV. The overall indications, after Tuesday’s (January 12, 2010) market action, are Bullish; in the near term Bullish, mid-term Bullish, and long term Bullish. The recent Candle Stick analysis is: Very Bullish
**Chart by: www.stockta.com
Latest News and Opinion: Another chain pulls cadmium-tainted kids' jewelry http://finance.yahoo.com/news/Another-chain-pulls-apf-2794292431.html?x=0&.v=1 Tuesday’s Market Action Close 5 4.73
There is a Bullish Engulfing Candle on January 11, and one Gap open up on November 9, 2009 at 51.27/51.41, the near term resistance is 54.95, support at 54.62 and the 50 day (EMA) exponential moving average is 53.35. This is Wal-Mart Stores, Inc. (WMT): Wal-Mart Stores is an irresistible (or at least unavoidable) retail force that has yet to meet any immovable objects. Bigger than Europe's Carrefour, Tesco, and Metro AG combined, it is the world's #1 retailer, with more than 7,250 stores, including about 975 discount stores, 2,800 combination discount and grocery stores (Wal-Mart Supercenters in the US and ASDA in the UK), and 590 warehouse stores (SAM'S CLUB). About 55% of its stores are in the US, but Wal-Mart continues expanding internationally; it is the #1 retailer in Canada and Mexico and it has operations in Asia (where it owns a 95% stake in Japanese retailer SEIYU), Europe, and South America. Founder Sam Walton's heirs own about 40% of Wal-Mart. I have never been in a Wal-Mart Store, though I have been in Carreforur’s and Tesco.
The Competitive Landscape Demand depends mainly on the volume of car driving, which in turn depends on economic activity. The profitability of individual stores is closely linked to location and product mix. Large companies have advantages in buying gasoline at bulk prices, but small companies can compete effectively by having superior locations. Annual revenue per worker is close to US$300,000. Wal-Mart Stores, Inc. (HQ) Chairman, S. Robson (Rob) Walton 702 SW 8th St. Bentonville, AR 72716 United States Phone: 479-273-4000 Fax: 479-277-1830 http://www.walmartstores.com
Wal-Mart Subsidiaries ASDA Group Limited SAM'S CLUB Wal-Mart Brazil 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.
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