The Red Roadmaster’s US Market Re-cap + Stock Talk ™
17 February 2010
Date Line: Bangkok, Thailand
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Red’s Bull Alert:Last Friday the S&P 500 resumed weekly gains after 4 consecutive weeks of declines, today all sectors flashed Green. As the "Greenback" weakened it ignited buying in Equities, Crude Oil, Gold and other Commodities. Good News and Optimism trigger Wall Street move North US stocks posted their biggest daily percentage gain since November 9 Tuesday on strong news + the regional manufacturing data instilled confidence in the Country's economic outlook. Also, the CRB commodities index marked its largest 1 day percentage advance in three months and energy company Chevron Corp was the top boost to the DJIA, gaining 2.8% to close at US$72.99.
The DJIA gained 169.67 pts, or 1.68%, to close at 10,268.81, the S&P 500 rose 19.36 pts, or 1.80%, to close at 1,094.87, and the NAS tallied up a + 30.66 pts, or 1.40%, to end the session at 2,214.19. Alert: JPMorgan Chase & Co buy buy the non-U.S. assets of commodities joint venture RBS Sempra from Royal Bank of Scotland and Sempra Energy for US$1.7B in cash, roughly doubling its commodities client base and making the 2nd largest US bank by assets even larger. JPMorgan shares rose 2.9% to $40.07 and the KBW bank index rose 2.5%. Alert: Simon Property Group Inc said it made a US$10B offer for General Growth Properties Inc, boosting optimism in the battered commercial real estate market with a combination of the 2 largest US shopping mall owners. Simon shares rose 3.9% to US$74.82. Volume and Breadth: Trade of about 7.59B/shrs exchanged on the New York Stock Exchange, the American Stock Exchange and NAS, below last year's estimated daily average of 9.65B/shrs. Advancers outnumbered decliners on the NYSE by 5 to 1, and on the NAS, about 5 stocks rose for each 2 that fell. Stocks to Watch Today
Apple, Inc (APPL), Deere & Co. (DE), Estée Lauder Company (EL), and Google Inc. (GOOG)
Apple, Inc. (AAPL) Up-date 44
Last Look: January 26, 2010
February 16, 2010 Paul A. Ebeling, Jnr. Analyst Today let’s look at Apple, Inc (APPL), the creator of the iPhone and other wonderful stuff, from a Technical POV. The overall indications, after Tuesday’s (February 16) market action is Neutral; in the near term Neutral, mid-term Neutral, and long term Neutral. Recent Candlestick analysis: Bullish.
**Chart by: http://www.stockta.com
Latest News and Opinion: Apple Breaks Above Its 50-DMA http://seekingalpha.com/article/188847-apple-breaks-above-its-50-dma?source=yahoo
Tuesday’s Market Action Close 203.04
There is a Bullish Engulfing Candle on February 11, and one Gap open up between on September 16, 2009 at 175.65/177.88, the near term resistance is at 214.83, support at 202.00, and the 50 day exponential moving average is 200.50. This is Apple, Inc. (AAPL): Apple, the world’s computer/gadget innovator has caused a revolution in personal computing and digital media distribution. The company's desktop and laptop computers feature its OS X operating system, they include its Mac mini, iMac, and MacBook for the consumer and education markets, and powerful Mac Pro and MacBook Pro for high end consumers and professionals involved in design and publishing. Apple posted a huge success with its iPod digital music players, and iTunes, its online music store. Other Apple products: iPhone mobile phones, Xserve, servers, Airport, wireless networking equipment, plus publishing and multimedia software. Apple’s FileMaker sub provides database software. Apple, Inc. ranks #103 in the Fortune 500 Companies List.
The Competitive Landscape Computer product demand is directly tied to consumer and business income. The profitability of individual computer companies depends on purchasing and production efficiencies, and on technological expertise. Large companies have economies of scale in purchasing and production. Small companies can compete successfully by specializing in certain products or by developing superior technology. The industry is capital-intensive and highly automated: annual revenue per employee is about US$500,000. The output of US computer manufacturing is forecast to grow at an annual compounded rate of 4.7 % between 2008 and 2013.
Apple, Inc. (HQ) Steven P. (Steve) Jobs, CEO and Director 1 Infinite Loop Cupertino, CA 95014 United States http://www.apple.com
Apple Subsidiaries Apple Computer (UK) Limited FileMaker, In
Deere & Co. (DE) Up-date 8
Last Look: January 12, 2010 3
February 17, 2010 Paul A. Ebeling, Jnr. Analyst Today let’s look at Deere & Co. (DE), one of the World’s largest makers of farm equipment, from a Technical POV. The overall indications, after Tuesday’s (February 16) market action, are Neutral: in the near term Neutral, mid-term Neutral, and long term Neutral. The recent Candle Stick analysis is: Very Bearish.
**Chart by: http://www.stockta.com
Latest News and Opinion: Among the shares expected to see active trade in Wednesday's
session are those of Hewlett-Packard Co., Deere & Co., and Nvidia Corp. http://www.marketwatch.com/story/stocks-in-focus-for-wednesday-2010-02-16?siteid=yhoof
Tuesday’s Market Action Close 53.78 + .67
Volume 6,323,200/shrs 4
There is a Bearish Doji Star formed on February 16 and one Gap open up on February 16, 2010 at 53.16/53.54, the near term resistance is 54.28, support at 52.52 and the 50 day (EMA) exponential moving average is 52.69. This is Deere & Company (DE): The company, one of the world's two largest makers of farm equipment (CNH Global is the other), is also a leading producer of construction, forestry, industrial, and lawn-care equipment. It is famous for its "Nothing Runs Like A Deere" brand marketing campaign. While the global financial crisis dented the company's sales in commercial and consumer equipment, Deere's agricultural equipment sales continued strong and remained highly profitable. Deere makes 60% of its sales in North America. Competitive Landscape Demand is driven by 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. Deere & Co. (HQ) Robert W. Lane ,Exec. Chairman, Chief Exec. Officer and President: One John Deere Place Moline, IL 61265-8098 United States Phone: 309-765-8000 Fax: 309-765-5889 http://www.deere.com
EstĂŠe Lauder Company (EL) Up-date 4
Last Look: February 3, 2010 5
February 17, 2010 Paul A. Ebeling, Jnr. Analyst Today, let’s look at Estée Lauder Company (EL), a seller of cosmetics, fragrances, and skin care products, from a Technical POV. The overall indications, after Tuesday’s (February 16) market action, are Very Bullish: in the near term Very Bullish, mid-term Bullish, and long term Very Bullish. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News and Opinion: Estée Lauder Companies Presentation at the Consumer Analyst Group of New York Conference Available Live via Webcast http://finance.yahoo.com/news/Este-Lauder-Companies-bw-35172208.html?x=0 Tuesday’s Market Action Close
There are six Gaps open up between October 6, 2009 and February 16, 2010 at 36.77/52.29, the near term resistance is NIL, support at 57.98, and the 50 day (EMA) exponential moving average is 51.57. This is Estée Lauder Company (EL): The firm's Estée and Bobbi brands are counted among some of the closest friends to women worldwide. Estée Lauder sells cosmetics, fragrances, and skin care products, with brands including upscale Estée Lauder and Clinique and professional Bobbi Brown essentials. Its lines are sold in department stores, company stores, and by specialty retailers, as well as online. The firm has expanded its chain of freestanding retail stores (primarily for its M.A.C, Origins, and Aveda brands). The founding Lauder family controls about 84% of its voting shares. Estée Lauder launched a Tom Ford collection in 2005 and in 2007 sold its Rodan + Fields line. CEO Fabrizio Freda, a veteran of Procter & Gamble, joined the firm in 2008.
Competitive Landscape Demand is driven by population growth and consumer preferences. The profitability of individual companies depends on product innovation, effective sales and marketing , and efficient operations. Large companies have scale advantages in purchasing, manufacturing, distribution, and marketing. Small companies can compete effectively by offering specialized products. The industry is capital-intensive: average annual revenue per worker exceeds US$600,000. Personal Care Products Manufacturing Industry Forecast The output of US toiletries manufacturing is forecast to decline at an annual compounded rate of 1 percent between 2008 and 2013. Data Sourced: December 2009 Toiletries Production Growth Plummets Then Recovers
Estee Lauder Companies Inc. (HQ) William P. Lauder, Exec. Chairman 767 Fifth Avenue New York, NY 10153 United States Phone: 212-572-4200 Fax: 212-572-3941 http://www.elcompanies.com
Google Inc. (GOOG) Up-date 16
Last Look: November 24, 2009
February 17, 2010 7
Paul A. Ebeling, Jnr. Analyst Today, let’s look at Google Inc. (GOOG), the Internet Search Engine leader, from a Technical POV. The overall indications, after Monday’s (February 16) market action, are Bearish: in the near term Bearish, mid-term Neutral, and long term Neutral. The recent Candle Stick analysis: Very Bearish.
**Chart by: http://www.stockta.com
Latest News and Opinion: Google Seeks to Ease Tensions as it Pushes Deeper Into Phones http://online.wsj.com/article/SB10001424052748703798904575069683608433438.html? ru=yahoo&mod=yahoo_hs Tuesday’s Market Action Close 541.30
There is a Bearish Doji Star on February 12, and no Gaps open up on the Chart, the near term resistance is 567.72, support at 538.08, and the 50 day (EMA) exponential moving average is 550.38. 8
This is Google Inc. (GOOG): Google operates the leading Internet search engine, offering targeted search results from billions of Web pages. Results are based on a proprietary algorithm -Google's technology for ranking Web pages is called PageRank. The company generates nearly all of its revenue through ad sales. Advertisers can deliver relevant ads targeted to search queries or Web content. Google also operates the Google Network, a network of third party customers that use Google's advertising programs to deliver relevant ads to their own Web sites. Founders Sergey Brin and Larry Page each have nearly 30% voting control of the company.
The Competitive Landscape Demand comes largely from corporations that sell consumer products, and telecommunications, entertainment, and financial services. The profitability of individual companies depends on creative skills and good marketing. Large companies are advantaged in being able to serve the varied needs of large customers, but small companies can be competitive through special talent or lower pricing or through special services. The industry is labor intensive, but the high value of the product produces annual revenue per employee of about US$150,000. Advertising and Marketing Industry Forecast The output of US advertising services is forecast to grow at an annual compounded rate of 5.5 % between 2008 and 2013.
Google Inc. (HQ) Chairman & Chief Exec. Officer Eric E. Schmidt Ph.D. 1600 Amphitheatre Parkway Mountain View, CA 94043 United States Phone: 650-253-0000 Fax: 650-253-0001 http://www.google.com
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