The Red Roadmaster’s US Market Re-cap + Stock Talk ™
1 December 2009
Date Line: Hong Kong (SAR) China
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Red’s Bull Alert: US stocks ended their Thanksgiving rest Monday and rallied strong into the close on light trade; the DJIA setting up to tap at 10,500+ in here. Gold Reaching for US$1200 + oz.
Re-cap of the US Stock Market Action for the session ending 1 December 2009 US stocks rose Monday as the DJIA posted its 5th straight monthly gain. The markets have decided that the Dubai matter is a relatively small event that was expected and accounted for several months ago. An index of bank stocks rose more than 3% as investors bet bank exposure to Dubai's debt problems are limited. The DJIA gained 34.92 pts, or 0.34%, to close at 10,344.84, the S&P 500 rose 4.14 pts, or 0.38%, to close at 1,095.63, and the NAS tallied up a + 6.16 pts, or 0.29% to end the session at 2,144.60. For the DJIA, this action marked its 5th straight monthly gainer, and the DJIA and the S&P 500 had their largest monthly percentage advances since July with Dow average rising 6.5%, the S&P 500 adding 5.7% and the NAS gaining 4.9%. Online retailers' shares rose after analytics firm comScore said that online spending was the highest it had ever been on Black Friday, with Cyber Monday spending expected to be even stronger. Amazon.com Inc shares hit an all-time high of US$136.08 in intra-day trading on the NAS Monday after it said its Kindle electronic book reader posted its best sales yet in the month of November. At the close, the stock was up 3.2% at US$135.91/shr. During the regular session, major US department stores' stocks took a beating, with Macy's down 3.9% at US$16.31 and Saks Inc down 6.4% at US$6.11 on the day. Volume and Breadth: Trade was below average on the NYSE, with about 1.35B/shrs changing hands, under last year's estimated daily average of 1.49B/shrs and on the NAS about 2.02B/shrs traded, below last year's daily average of 2.28B/shrs. Advancers outnumbered decliners on the NYSE by a ratio of about 18 to 13, and on the NAS, advancing stocks slightly outnumbered the decliners. Stocks to Watch Today JP Morgan Chase (JPM), eBay (EBAY), Potash Corp of Saskatchewan Inc.(POT), and Wynn Resorts (WYNN).
JP Morgan Chase & Company (JPM) Up-date 22
Last Look: June 9, 2009
December 1, 2009 Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at JP Morgan Chase (JPM), the # 3 financial services firm in the USA from a Technical POV. The overall analysis after Mondayâ€™s (November 30, 2009) market action is Neutral: in the near term Neutral, mid-term Neutral, and long term Neutral. The recent Candle Stick analysis is: Bullish
**Chart by: http://www.stockta.com
Latest News and Opinion: WaMu Is Gone, but the Parent Is Fighting On
http://online.wsj.com/article/SB10001424052748703300504574568343362391968.html? ru=yahoo&mod=yahoo_hs Mondayâ€™s Market Action Close 42.49 + 1.16
There is Homing Pigeon on November 25, and a Gap open up on August 3, 2009 at 38.65/38.99, the near term resistance is 44.18, support at 42.39, and the 50 day (EMA) exponential moving average is 43.18. This is JP Morgan Chase & Company (JPM): JPM is the #3 financial services firm in the USA behind Citi and Bank of America with more than 3,000 bank branches and growing. It is also among the nation's top mortgage lenders, automobile loan writers, and credit card issuers. JPM is also into investment banking and asset management. The company's subsidiaries include JPMorgan Private Bank and institutional investment manager JPMorgan Asset Management with US$1.6T in assets under management. In 2008 JPMorgan Chase bought Bear Stearns and Washington Mutual.
The Competitive Landscape Demand for banking services in the USA is closely tied to economic activity and the level of interest rates. The profitability of individual banks depends on their marketing abilities, efficient operations, and good risk management. Large economies of scale exist in some segments of the banking industry, which has encouraged industry consolidation. Smaller banks can compete successfully in segments where customer service or knowledge of the local market is more important. The industry is capital intensive and highly automated: annual revenue per employee is about US$300,000. Banks and Credit Unions Industry Forecast The output of banks and credit unions in the USA is forecast to grow at an annual compounded rate of 5.1% 2008 and 2013. JP Morgan Chase & Company (HQ) Chairman, President, and CEO James (Jamie) Dimon
270 Park Ave. New York, NY 10017 United States Phone: 212-270-6000 Fax: 212-270-1648 http://www.jpmorganchase.com
JPMorgan Chase Subsidiaries Bear Stearns Merchant Banking Bear, Stearns Securities Corp. Bear Wagner Specialists LLC Chase Co (formally Washington Mutual)
eBay, Inc. (EBAY) Up-date 5
Last Look: October 22, 2009
December 1, 2009 Paul A. Ebeling, Jnr. Analyst Today let’s look at eBay (EBAY), the premier online (AKA World’s Biggest) marketer/seller, from a technical POV. The overall indications, after Monday’s (November 30, 2009) market action, are Bullish: in the near term Bullish, mid-term Bullish, and long term Bullish. The recent Candle Stick Analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News and Opinion: France: eBay Fined for Luxury Sales
http://www.nytimes.com/2009/12/01/business/global/01fobriefs-EBAYFINEDFOR_BRF.html? partner=yahoofinance Monday’s Market Action Close
There is a Gap open up on July 23, 2009 at 19.05/120.72; the near term resistance is at 25.46, support at 24.35, and the 50 day exponential moving average is 23.84. This is eBay, Inc. (EBAY): In the lexicon of the modern consuming idiom the term “I got it on eBay" has become fully establish and is making eBay online auctioneer the world leader. eBay is a cyber-forum for selling more than 50,000 categories of merchandise, from junk to fine antiques, and hosting about 500,000 online stores worldwide. eBay, which generates revenue through listing/ selling fees and advertising, has more than 27%MM registered users. In 2007, eBay acquired one of the fastest growing online ticket sellers, StubHub, for US$307MM. eBay, Inc. ranks #326 in FORTUNE 500 and #213 in FT Global 500.
The Competitive Landscape. eBay competitors are primarily in the Auctions industry. eBay also competes in the Messaging, Conferencing & Communications Software, Transaction, Credit & Collections, and Fixed-line Voice Services Providers sectors
eBay’s competition includes Amazon.com Google Yahoo!
eBay, Inc. (HQ)
Chairman Pierre M. Omidyar SVP & CFO Robert H. (Bob) Swan 2145 Hamilton Ave. San Jose, CA 95125 United States Phone: 408-376-7400 Fax: 408-376-7401
Potash Corp of Saskatchewan Inc (POT) Up-date 3 Last Look: November 20, 2009 December 1, 2009 Paul A. Ebeling, Jnr. Analyst Today, letâ€™s have a look at Potash Corporation of Saskatchewan Inc.(POT), the world leader in the production of potash fertilizer, from a Technical POV. The overall indications, after Mondayâ€™s (November 30, 2009) market action, are Bullish: in the near term Bullish, mid-term Very Bullish, and long term Bullish. The recent Candle Stick analysis is:Neutral
**Chart by: http://www.stockta.com
Latest News and Opinion: Agriculture M&A: Deals Will Happen Soon, One Way or Another
http://seekingalpha.com/article/175435-agriculture-m-a-deals-will-happen-soon-one-way-or-another? source=yahoo Mondayâ€™s Market Action Close 112.42
There is Homing Pigeon on November 24 and one Gap open up on October 6, 2009 at 86.64/87.35, the near term resistance is 113.17, support at 104.62, and the 50 day exponential moving average is 102.41. This is Potash Corp: Potash Corp, is the world's leading producer of potash fertilizer. The company also produces nitrogen used in fertilizer plus many industrial and consumer products, and phosphate for feed products, food products, and detergents. Its annual production capacity of 10MM tons of potash accounts for more than 20% of the world's capacity. Potash Corp also sells these minerals as phosphate feed ingredients for animal nutrition and as nitrogen products for the industrial chemicals market. The company has 20 plants in North America, Brazil, Chile, and Trinidad.
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 4.2% between 2008 and 2013.
Potash Corporation (HQ) President, CEO & Director William J. (Bill) Doyle 500-122 1st Ave. South Saskatoon, Saskatchewan S7K 7G3, Canada Phone: 306-933-8500 Fax: 306-933-8844 Toll Free: 800-667-3930
Potash Corp Subsidiaries Canpotex Limited PCS Nitrogen, Inc. PCS Phosphate Company, Inc.
Wynn Resorts Ltd. (WYNN) Up-date 5
Last Look: August 6, 2009 7
December 1, 2009 Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at Wynn Resorts Ltd. (WYNN), the brainchild of gaming wizard Steven Wynn, from a Technical POV. The overall indications, after Mondayâ€™s (November 30, 2009) market action is Bullish: in the near term Bullish, mid-term Bullish, and long term Neutral. The recent Candle Stick analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News and Opinion: Cramer: 'Stop Trading': Citi, Wynn, MGM http://www.thestreet.com/_yahoo/story/10634829/1/cramers-stop-trading-citi-wynn-mgm.html? cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
Monday’s Market Action Close 64.54 + 1.56
There is a Homing Pigeon on November 24, and three Gaps open up between July 15, and November 9, 2009 at 34.05/62.23, the near term resistance is 67.74, support at 63.05, and the 50 day (EMA) exponential moving average is 62.66 This is Wynn Resorts Ltd. (WYNN): Wynn Resorts is the brainchild of gaming mogul and former Mirage Resorts chairman Steve Wynn. The US$2.4B resort and casino, built on the site of the former Desert Inn on the Las Vegas Strip, boasts more than 2,700 rooms, a casino with nearly 2,000 slots and about 140 table games, some 20 restaurants, a golf course, an art gallery (featuring Wynn's personal collection), two wedding chapels, and a Ferrari and Maserati dealership. Wynn Resorts also includes Encore at Wynn Las Vegas, a hotel and casino adjacent to its Wynn Las Vegas property, and the Wynn Macau, a hotel and casino in China. Steve Wynn owns about 21% of the company.
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 clientèle. The industry is fairly labor-intensive: annual revenue per employee is US$90,000. Gambling Operations Industry Forecast US 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 4 % between 2008 and 2013. Data Sourced: December 2008
Wynn Resorts Ltd. (HQ) Chairman and Chief Executive Officer: Stephen A. Wynn 3131 Las Vegas Boulevard South Las Vegas, NV 89109 United States Phone: 702-770-7555 Fax: 702-770-1571 http://www.wynnresorts.com
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