The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
October 5, 2009
Date Line: Las Vegas, NV
Alert: The Red Roadmaster looks at The ALLSTATE Corp. (ALL) for the first time. US Stocks slipped to the Southside for the 4th day running Friday
Re-cap of the US Stock Market Action for the week ending October 2, 2009
Stocks had their 2nd week running and the DJIA had its largest weekly percentage decline in 3 months. US Crude Oil futures fell 1.2% to settle at US$69.95 bbl. on the day Friday The DJIA gave up 21.61 pts, or 0.23%, to close at 9,487.67, the S&P 500 fell 4.64 pts, or 0.45%, to close at 1,025.21, and the NAS shed 9.37 pts, or 0.46%, to end the session at 2,048.11. Apple shares gained 2.2% to US$184.90 on NAS after UBS upgraded its stock to "buy" with Target of US$256/shr a 56% hike (AAPL is covered in Stock Talk today). The S&P index of consumer staples was + 0.56%, the only S&P sector that was positive on the day, buoyed by a 4.2% gain by PepsiCo Inc. the giant soft drink company closed at US$60.90/shr on Deutsche Bank's raising it price target (PEP is covered in Stock Talk today). Volume and Breadth: Trade was below average on the NYSE, with 1.40B/shrs changing hands, less than last year's estimated daily average of 1.49B/shrs, and on the NAS, about 2.47B/shrs traded, above last year's daily average of 2.28b/shrs. Decliners outnumbered advancers on the NYSE by a ratio of about 2 to 1, and on the NAS about nine stocks fell for every five that rose.
Alert: The Red Roadmaster looks at The ALLSTATE Corp. (ALL) for the first time. Stocks to Watch Today
The ALLSTATE Corp. (ALL), Apple, Inc (APPL), International Business Machines Corporation (IBM), Las Vegas Sands (LVS), and PepsiCo, Inc. (PEP).
The Allstate Corporation (ALL) October 5, 2009 Paul A. Ebeling, Jnr. Analyst Today, let’s look at The ALLSTATE Corp. (ALL), the large US insurance company, from a Technical POV. The overall indications, after Friday’s (October 2, 2009) market action, are Bullish: in the near term Bullish, mid-term Neutral and long term Bullish. The recent candlestick analysis is Bullish.
**Chart by: http://www.stockta.com
Latest News: Insurers To Claim Earnings Upside http://online.barrons.com/article/SB125443708047357645.html?ru=yahoo&mod=yahoobarrons
Friday’s Market Action Close 30.76 + .36
There is a Bullish Engulfing Candle on October 2, 2009, and no Gaps open up or down on the AAL, the near term resistance is 30.80, support at 29.20, and the 50 day (EMA) exponential moving average is 28.58. This is The Allstate Corporation (ALL): the company engages in the personal property and casualty insurance business, as well as in the life insurance, retirement, and investment products business in the United States and Canada. It operates in two segments: Allstate Protection and Allstate Financial. The Allstate Protection segment sells private passenger auto and homeowner’s insurance under ‘Encompass’ and ‘Deerbrook’ brand names primarily through agencies. Allstate Financial segment provides life insurance, retirement and investment products, and voluntary accident and health insurance products to individual and institutional customers. Its principal individual products comprise deferred, immediate, and indexed fixed annuities; interest-sensitive, traditional, and variable life insurance; and voluntary accident and health insurance. This segment markets its products through multiple intermediary distribution channels, including agencies and financial specialists, independent agents, banks, brokerdealers, and specialized structured settlement brokers. The Allstate Financial segment also offers various banking products and services consisting of certificates of deposit, money market accounts, savings accounts, checking accounts, and agency loans. The Allstate Corporation was founded in 1931.
Competitive Landscape Demand is driven by demographics and commercial transactions. Demand is also driven by legal or financial requirements. Consumers are usually required by states to buy auto insurance and by lenders to buy homeowners insurance, for example. The profitability of individual companies depends on effective marketing and on the ability to accurately estimate future payments. Large companies have big economies of scale in administration and in access to capital, as well as advertising and marketing. Small companies can compete successfully by specializing in particular products or industries. Average annual revenue per worker is around US$400,000, the industry is not labor-intensive. Insurance Carriers Industry Forecast The output of US insurance, which is an indicator for insurance carriers, is forecast to grow at an annual compounded rate of 1% between 2008 and 2013. Data Sourced: December 2008
Allstate Corp. (HQ) Thomas J. Wilson II, Chairman, Chief Exec. Officer and President,
2775 Sanders Road Northbrook, IL 60062 United States Phone: 847-402-5000 Fax: 847-402-2351
Apple, Inc. (AAPL) Up-date 39
Last Look: September 29, 2009
October 5, 2009 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 Monday’s (October 5, 2009, 2009) market action is Bullish; in the near term Bullish, mid-term Bullish, and long term Bullish. Recent Candlestick analysis: Very Bullish.
**Chart by: http://www.stockta.com
Latest News: Apple Ace Gruber Predicts: Blu-ray iMacs 'In A Few Weeks' http://finance.yahoo.com/news/Bluray-iMacs-In-A-Few-Weeks-siliconalley-884154543.html?x=0&.v=2
Friday’s Market Action Close 184.90 + 4.04
There are seven Gaps open up between April 16, and September 16, 2009 at 118.25/177.88, the near term resistance is at 185.79, support at 177.46, and the 50 day exponential moving average is 170.56. 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
International Business Machines Corporation (IBM) Up-date 8 Last Look: August 20, 2009 October 5, 2009 Paul A. Ebeling, Jnr. Analyst Today let’s look at “Big Blue”, International Business Machines Corporation (IBM), the World’s #1 provider of computer products and computer services, from a Technical POV. The overall indications, after Friday’s (October 2, 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: IBM Undercuts Google with Discount E-mail Service http://www.cnbc.com/id/33147033/site/14081545?__source=yahoo|headline|quote|text|&par=yahoo Friday’s Market Action Close 119.02
There are three Gaps open up between Mar 31 and July 17, 2009 at 94.74/113.16, the near term resistance is 119.52, support at 117.44, and the 50 day (EMA) exponential moving average is 117.55. This is IBM (IBM): “Big Blue” is the world's top provider of computer products and services. IBM is a leader in every market in which it competes, the company makes mainframes and servers, storage systems, and peripherals. Though perhaps still best known for its hardware, IBM's growing services business now accounts for more than half of its sales. Its IT services arm is the largest in the world and the company is also one of the largest providers of both software, ranking #2, behind Microsoft, and semiconductors. The Competitive Landscape Demand for IT services is driven by rapid technological advances, but spending for these expensive products depends on the health of the US economy. The profitability of companies in the industry depends on maintaining technical expertise and on good marketing. Small companies can compete effectively by specializing in market niches or by partnering with larger companies that want to offer a broad array of services. Only the large companies can provide outsourcing services to big corporate customers. Average annual revenue per employee is close to US$200,000. Information Technology Industry Forecast The output of US computer and data processing is forecast to grow at an annual compounded rate of 6.1% between 2008 and 2013. IBM (HQ) Chairman, President, and CEO Samuel J. Palmisano New Orchard Rd. Armonk, NY 10504 United States Phone: 914-499-1900 Toll Free: 800-426-4968 http://www.ibm.com IBM Subsidiaries Cognos ULC IBM Australia Limited IBM Canada Ltd.
Las Vegas Sands Corp. (LVS) Up-date 6
Last Look: Aug 6, 2009
October 5, 2009 Paul A. Ebeling, Jnr. Analyst Today, letâ€™s look at Las Vegas Sands Corp. (LVS), the international casino/resort operator, from a Technical POV. The overall indications, after Fridayâ€™s (October 2, 2009) market action, are Neutral: in the near term Neutral, mid-term Neutral, and long term Bullish. The recent Candle Stick Analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News: Two Vegas-based companies, Wynn Resorts and Las Vegas Sands, get a boost from a big comeback in China's gambling capital http://money.cnn.com/2009/10/02/news/companies/macau_ipos.fortune/index.htm?source=yahoo_quote Fridayâ€™s Market Action Close 16.13 + .68 Volume 062,756,400/shrs There are five Gaps open up between Apr 1 and July 20, 2009 at 3.07/8.96, the near term resistance is 16.91, support at 14.94, and the 50 day (EMA) exponential moving average is 14.88. This is Las Vegas Sands Corp. (LVS): The Venetian Casino Resort (owned by Las Vegas Sands) brings a touch of Venice to the Las Vegas Strip. Replete with gondoliers and a replica of the Rialto Bridge, the Venetian offers a 120,000-sq.-ft. casino and a 4,000-suite hotel, as well as a shopping, dining, and entertainment complex. Las Vegas Sands also operates the Congress Center conference facility that links the casino to the nearby Sands Expo Center trade show and convention center. In addition, the firm operates The Sands Macao casino in China, and The Palazzo Casino next door to the Venetian in Las Vegas. Chairman and CEO Sheldon Adelson and trusts for his family own nearly 70% of the firm. The 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 clientĂ¨le. The industry is fairly labor-intensive: annual revenue per employee is US$90,000. Gambling Operations Industry Forecast USA 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 5 % between 2008 and 2013. Las Vegas Sands Corp. (HQ) Chairman, CEO, and Treasurer Sheldon G. Adelson 3355 Las Vegas Blvd. South Las Vegas, NV 89109 United States Phone: 702-414-1000 Fax: 702-414-4884 http://www.lasvegassands.com
PepsiCo, Inc. (PEP) Up-date 4
Last Look: July 7, 2009
October 5, 2009 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 Friday’s (October 2, 2009) market action is Very Bullish, in the near term Bullish, mid-term Very Bullish, and long term Bullish. The recent Candle Stick analysis is Bearish
**Chart by: http://www.stockta.com
Fridayâ€™s Market Action Close 60.90
There is a DOJI on September 30, 2009 and no Gaps open up or down on the Chart, the near term resistance is 61.14, support at 59.86 and the 50 day (EMA) exponential moving average is 57.62. This is PepsiCo, Inc. (PEP):The PepsiCo vs. KO challenge never ends for the world's #2 carbonated softdrink 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 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
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