The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
October 8, 2009
Date Line: Hong Kong
On the COMEX div. of the New York Merc, Gold for December delivery closed up US$4.70 to US$1,044.40 oz, after playing in the session between US$1,037.80 to US$1,049.70, a record high.
Re-cap of the US Stock Market Action for the session ending October 7, 2009 The S&P 500 and the NAS closed up a bit Wednesday on anticipation of early earnings results as the Q-3 reporting season began. After the Bell, futures headed North as aluminum company Alcoa Inc released its results, and its shares jumped 5.8% to US$15.02 in after-hours trade. (See AA in Wednesday's Stock Talk) During the regular session, Costco Wholesale Corp rose 1.9% to US$59/shr after the retailer posted profits that topped forecasts. (See Stock Talk today). The DJIA closed down a bit at 5.67 pts, or 0.06%, to close the session at 9,725.58, the S&P 500 was up 2.86 pts, or 0.27%, to close at 1,057.58, and the NAS tallied up + 6.76 pts, or 0.32, to 2,110.33 on the day. Stocks also responded well to a successful 10 yr T-Note auction, which boosted confidence in US assets, including stocks and bonds. Google Inc was among the NAS's top performers, up 3.8% to close at US$517.82 after the company's chief executive said the worst of the advertising recession was over. Volume and Breadth: once again trade was below average on the NYSE, with 1.09B/shrs changing hands, less than last year's estimated daily average of 1.49B/shrs, and on the NAS, about 2.23B/shrs traded, about the same last year's daily average of 2.28B/shrs. Advancers outnumbered decliners on the NYSE by a ratio of 15 to 13, while declining stocks were about even with advancers on the NAS Stocks to W atch Today
Brocade Communications Systems, Inc. (BRCD), W holesale Corporation (COST), Monsanto Company (MON), and PepsiCo, Inc. (PEP).
Brocade Communications Systems (BRCD) Up-date 2 Last Look: June 25, 2009 October 8, 2009 Paul A. Ebeling, Jnr. Analyst Today, let’s look at Brocade Communications Systems, Inc. (BRCD), the maker of fiber channel switches, from a Technical POV. The overall indicators, after Wednesday’s (October 7, 2009) market action, are Neutral: in the near term Neutral, mid-term Very Bullish , and long term Neutral. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News: Oracle Not Interested In Buying Brocade http://blogs.barrons.com/techtraderdaily/2009/10/07/oracle-not-interested-in-buying-brocade/? mod=yahoobarrons
There are two Gaps open up on Apr 22 and October 5, 2009 at 4.63/8.47 the near term resistance is NIL, support at 8.81, and the 50 day (EMA) exponential moving average is 7.95. This is Brocade Communications Systems, Inc. (BRCD) The company makes Fibre Channel switches and related software for connecting corporate storage systems and servers. Its products are used in storage area networks (SANs), which pool storage resources across enterprises for easier management and more efficient utilization of assets. The company's SilkWorm switches automatically reroute data upon path failure and reconfigure the SAN when new devices are added. Brocade sells its products primarily through equipment manufacturers, including EMC, Hewlett-Packard, and IBM, which together generate about 65% of revenues.
The Competitive Landscape The USA’s economy heavily influences business spending for software products. The success of programming companies depends heavily on strong technical expertise. The success of packaged-software companies depends on technical expertise and good marketing. Small software companies compete mainly by developing packaged products in small niches or producing custom products for individuals. Many small companies form alliances with larger ones to market their products. Brocade Communications Systems, Inc. (HQ) Chairman David L. (Dave) House 1745 Technology Dr. San Jose, CA 95110 United States Phone: 408-333-8000 Fax: 408-333-8101 http://www.brocade.com
Brocade Communications Subsidiaries Foundry Networks, Inc.
Costco Wholesale Corporation (COST) Up-date 1
May 27, 2009 October 8, 2009 Paul A. Ebeling, Jnr. Analyst Today let’s look at Costco Wholesale Corporation (COST), the largest wholesale club operator in the USA, from a Technical POV. The overall indications, after Wednesday’s (October 7, 2009) market action, are 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: Costco profit drops; Family Dollar profit up 13% Both results exceed views, signaling improved consumer sentiment http://www.marketwatch.com/story/costco-profit-drops-while-family-dollar-net-climbs-2009-10-07? siteid=yhoof
Wednesdayâ€™s Market Action Close 59.00 + 1.07
There is a Bullish Engulfing Candle on May 26 and one Gap open up on May 20, 2009 at 47.74/48.26, the near term resistance is 50.83, support at 47.95, and the 50 day (EMA) exponential moving average is 46.59. This is Costco W holesale Corporation (COST): The Corporation operates membership warehouses that offer a selection of branded and private label products in a range of merchandise categories in no-frills, self-service warehouse facilities. The companyâ€™s product categories include candy, snack foods, tobacco, alcoholic and non-alcoholic beverages, and cleaning and institutional supplies; appliances, electronics, health and beauty aids, hardware, office supplies, garden and patio, sporting goods, furniture, and automotive supplies; dry and institutionally packaged foods; apparel, domestics, jewelry, housewares, media, home furnishings, cameras, and small appliances; meat, bakery, deli, and
produce; and gas stations, pharmacy, food court, optical, one-hour photo, hearing aid, and travel. It offers Business and Gold Star (individual) memberships. As of February 15, 2009, Costco operated a chain of 550 warehouses comprising 403 in 40 states and Puerto Rico, 76 in Canada, 21 in the United Kingdom, 6 in Korea, 5 in Taiwan, and 8 in Japan, as well as 31 warehouses in Mexico through a 50%-owned joint venture. It also offers its products through Web sites www.costco.com in the U.S. and www.costco.ca in Canada. The company, formerly known as Costco Companies, Inc., was founded in 1976 and is based in Issaquah, Washington. Competitive Landscape Demographics and small business growth drive demand, and spending in warehouse clubs generally resists economic cycles. The profitability of individual companies depends on high volume sales, low-cost purchasing, and efficient distribution. Large chains dominate the market due to advantages in purchasing, distribution, and finance. Average annual revenue per employee is about US$230,000.
W arehouse Clubs and Superstores Industry Forecast
The output of the US retail industry, which includes warehouse clubs and superstores, is forecast to grow at an annual compounded rate of 2 percent between 2008 and 2013. Data Sourced: December 2008 Costco Wholesale Corporation (HQ) Jeffrey H. Brotman Co-Founder and Chairman 999 Lake Drive Issaquah, WA 98027 United States Phone: 425-313-8100 Fax: 425-313-8114 http://www.costco.com
Monsanto Co. (MON) Up-date 1
Last Look: June 15,
2009 October 8, 2009 Paul A. Ebeling, Jnr. Analyst Today, letâ€™s look at Monsanto Company (MON) , the huge agri bio-engineer, from a Technical POV. The overall indications, after Wednesdayâ€™s (October 7, 2009) market action is Bearish : in the near term Bearish , mid-term Bearish :, and long term Neutral. The recent Candle Stick analysis: Very Bullish
**Chart by: http://www.stockta.com
Latest News: Monsanto Calls New Seeds Its 'Slingshot' for Growth http://online.wsj.com/article/SB10001424052748703298004574458573091620740.html? ru=yahoo&mod=yahoo_hs
Wednesdayâ€™s Market Action Close 74.33 0.00
There is a Homing Pigeon on October 7, and two Gaps open down between September 10 and October 1, 2009 at 82.42/76.75, the near term resistance is 75.47, support at 73.99, and the 50 day (EMA) exponential moving average is 78.96. This is Monsanto Company (MON): The Company helps farmers grow more crops by applying biotechnology and genomics to seeds and herbicides. It produces genetically altered seeds that tolerate Roundup (its flagship product) and resist bugs. Monsanto estimates that more than 70% of the world's herbicide-resistant crops bear its stamp. The company also produces Asgrow, DEKALB, Deltapine, and Seminis seeds. Roundup is the world's #1 herbicide. Throughout the past decade, Monsanto has been re-
making itself as a seed and biotech company, as opposed to one focused on agrochemicals, a transition that was sped up with the 2007 acquisition of Delta and Pine Land.
Competitive Landscape Demand for agricultural chemicals depends mainly on demand for various crops, which in turn depends on crop prices. The profitability of individual companies is linked to efficient operations and marketing. Big producers have large economies of scale in production. Smaller companies can compete effectively by making specialty chemicals or fertilizer mixtures for local markets. Operations are capital-intensive and highly automated: annual revenue per employee at a large plant is close to US$700,000. Chemical Manufacturing - Agricultural Industry Forecast The output of US agricultural fertilizers and chemicals is forecast to grow at an annual compounded rate of 2 % between 2008 and 2013. Data Sourced: December 2008
Monsanto Company (HQ) Hugh Grant, Chairman, Chief Exec. Officer, Pres and Chairman of the Exec. Committee 800 North Lindbergh Boulevard St Louis, MO 63167 United States Phone: 314-694-1000 Fax: 314-694-1057 http://www.monsanto.com
Monsanto Company Subsidiaries American Seeds Inc.
PepsiCo, Inc. (PEP) Up-date 5
July 22, 2009 October 8, 2009 Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at PepsiCo, Inc. (PEP), the World's #2 carbonated soft drink maker, from a Technical POV. The overall indications, after Wednesdayâ€™s (October 7, 2009) market action is Very Bullish , in the near term Very Bullish , mid-term Very Bullish , and long term Very Bullish . The Recent Candle Stick analysis is: Very Bullish.
**Chart by: http://www.stockta.com
Latest News: PepsiCo, an important consumer staple, reports earnings Thursday
before the bell. Competitor Coca-Cola reports next week. http://www.forbes.com/2009/10/07/pepsi-bottlers-earnings-markets-equities-preview.html? partner=yahootix W ednesdayâ€™s Market Action Close 61.17 0.00 Volume 6,436,700/shrs
There is a Homing Pigeon on October 7, 2009 and there are no Gaps open up or down on the Chart, the near term resistance is 61.47, support at 60.85 and the 50 day (EMA) exponential moving average is 58.23. 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
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