The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
9 December 2009
Date Line: Hong Kong (SAR) China
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US Stocks closed lower Tuesday after disappointing corporate news from 3M Co and McDonald's and pressure from a stronger USD.
Re-cap of the US Stock Market Action for the session ending 8 December 2009 The "Greenback" gained 0.5% against a basket of 6 other major currencies, pressuring risk associated assets such as Gold and Crude Oil, which closed minus 1.4% to US$72.96 bbl. The DJIA dropped 104.14 pts, or 1.00%, to close at 10,285.97, the S&P 500 fell 11.31 pts, or 1.03%, to close at 1,091.94, and the NAS tallied a minus 16.62 pts, or 0.76%, to end the session at 2,172.99. Diversified manufacturer 3M fell 1% to US$77.11 on a weaker than expected outlook, and McDonald's closed off 2.1% at US$60.61 after reporting disappointing sales for a 2nd straight month. In another sign of weak consumer spending, Kroger Co shares lost 11.9% to US$20.13 after the supermarket operator reported quarterly results far below expectations and cut its full-year forecast. The disappointing earnings news overshadowed optimism late Monday from FedEx Corp, which gained 2.7% to US$89.88/shr after forecasting earnings would beat analysts' estimates. Advancing Sectors: (None) Declining Sectors: Energy (-1.7%), Materials (-1.7%), Industrials (-1.3%), Consumer Staples (-1.2%), Telecom (-1.0%), Financials (-0.9%), Consumer Discretionary (-0.8%), Tech (-0.8%), Health Care (0.8%), Utilities (-0.4%) Volume and Breadth: trade was light on the NYSE, with 1.18B/shrs changing hands, below last year's estimated daily average of 1.49B/shrs, and on the NAS, about 1.97B/shrs traded, below last year's daily average of 2.28B/shrs. Decliners outnumbered advancers on the NYSE by a ratio of 20 to 9, and on the NAS, 18 stocks fell for every 8 that rose. Stocks to Watch Today
3M Company (MMM), First Solar, Inc. (FSLR), Motorola (MOT), and Verizon Communications Inc. (VZ).
3M Company (MMM) Up-date 3
Last Look: April 24, 2009
Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at the 3M Company (MMM), the leader in tape and adhesive manufacturing, from a Technical POV. The overall indications, after Tuesdayâ€™s (December 8, 2009) 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: Weak economic data out of Japan underlined the negative tone in Asian markets on Wednesday following a tumble on Wall Street and a resurgent dollar overnight. http://www.ft.com/cms/s/0/7e219354-e48b-11de-96a2-00144feab49a.html? referrer_id=yahoofinance&ft_ref=yahoo1&segid=03058
Tuesdayâ€™s Market Action Close
There is a Bearish Engulfing Candle on Apr 17 and one Gap open down on Apr 20, 2009 at 53.64/52.61, the near term resistance is 52.90, support at 47.79, and the 50 day (EMA) exponential moving average is 51.16. This is the 3M Company (MMM): 3M makes everything from masking tape to asthma inhalers. The company has six operating segments: display/graphics, specialty film, traffic control materials; health care (dental and medical supplies, and health IT); safety, security, and protection (commercial care, occupational health and safety products); electro and communications (connecting, splicing, and insulating products); industrial and transportation (specialty materials, tapes, and adhesives); and consumer and office. Well-known brands include Scotchgard fabric protectors, Post-it Notes, Scotch-Brite scouring products, and Scotch tapes. Sales outside the US account for about two-thirds of 3M's sales. Top 3M Competitors Avery Dennison Johnson & Johnson
The 3M Company (HQ) Chairman, President, and CEO George W. Buckley 3M Center St. Paul, MN 55144 United States Phone: 651-733-1110 Fax: 651-733-9973 Toll Free: 800-364-3577 http://www.mmm.com
3M Subsidiaries 3M Digital Signage 3M Health Care 3M Health Care Ltd. (UK)
First Solar, Inc. (FSLR) Up-date 3
Last Look: July 30, 2009
December 8, 2009 Paul A. Ebeling, Jnr. Analyst Today let’s look at First Solar, Inc. (FSLR), the developer and maker of photovoltaic (PV) cells, from a Technical POV. The overall indications, after Wednesday’s (July 29, 2009) 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: First Solar Inks Deal for Huge Solar Plant http://www.thestreet.com/_yahoo/story/10640807/1/first-solar-inks-deal-for-huge-solar-plant.html? cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
Tuesday’s Market Action Close 133.54 - 1.64.
There is a Bearish Harami on December 8 and two Gaps open down between July 31 and October 29, 2009 at 171.11/129.23, the near term resistance is 137.63, support at 131.02, and the 50 day (EMA) exponential moving average is 131.45. This is First Solar, Inc. (FSLR): The Company designs, manufactures, and sells solar electric power modules using a proprietary thin film semiconductor technology. The companyâ€™s solar modules employ a thin layer of cadmium telluride semiconductor material to convert sunlight into electricity. It sells its products to project developers, system integrators, and operators of renewable energy projects primarily in Europe. First Solar also focuses on designing and deploying commercial solar projects for utilities in the United States. The company was founded in 1999. It was formerly known as First Solar Holdings, LLC, and changed its name to First Solar Holdings, Inc. and subsequently to First Solar, Inc. in 2006. The company is headquartered in Tempe, Arizona .
Industries Where First Solar Competes Electronics Electrical Products Power Generation & Storage (primary)
First Solar, Inc. (HQ) Chairman and Chief Exec. Officer; Michael J. Ahearn 350 West Washington Street Suite 600 Tempe, AZ 85281-1244 United States Phone: 602-414-9300 Fax: 602-414-9400 http://www.firstsolar.com
Motorola (MOT) Up-date 3 December 9, 2009
Last Look: November 3, 2009
Paul A. Ebeling, Jnr. Analyst Today, let’s look at Motorola (MOT), a top choice for mobile phone users worldwide, from a Technical POV. The overall indications, after Tuesday’s (December 8, 2009) market action, are Bullish: in the near term Bullish, mid-term Neutral, and long term Bullish. The recent candlestick analysis is: Very Bullish
**Chart by: http://www.stockta.com
Latest News and Opinion: Motorola shares jump after analyst examines break-up scenario,
sets US$11/shr target http://finance.yahoo.com/news/Analyst-eyes-Motorola-breakup-apf-1622946507.html?x=0&.v=1 Tuesday’s Market Action Close 8.62
There is a DOJI on December 7, and Gap open up on July 30, 2009 at 6.77/6.98 the near term resistance is 9.32, support at 8.53, and the 50 day (EMA) exponential moving average is 8.33.
This is Motorola (MOT): Motorola is still a top choice for mobile phone users worldwide despite flagging handset sales. The company is the #3 manufacturer of wireless telephone handsets (behind leaders Nokia and Samsung) and it also sells wireless network infrastructure equipment such as cellular transmission base stations and signal amplifiers. Motorola's home and broadcast network products include set-top boxes, digital video recorders, and network equipment used to enable video broadcasting, IP telephony, and high-def television. Its products for business and government customers consist mainly of wireless voice and broadband data systems used to build private networks and public safety communications systems.
Competitive Landscape The industry depends on purchases from businesses, telephone companies, cable companies, data communications providers, and TV and radio broadcasters. Profitability for individual companies is linked to technical innovation and the ability to secure high-volume contracts from large customers. Small companies can be successful if they make highly specialized products. There are large economies of scale in manufacturing standard products, but many products are specialized and produced in small manufacturing plants. Annual revenue per employee in a large plant varies from US$500,000 to US$1M. Telecommunications Equipment Manufacturers Industry Forecast The output of US communication equipment manufacturing is forecast to grow at an annual compounded rate of 2% between 2008 and 2013. Data Sourced: December 2008
Motorola Inc. (HQ) Gregory Q. Brown , Co-Chief Exec. Officer, Pres, Exec. Director, Co-Chairman of Exec. Committee and Chief Exec. Officer of Broadband Mobility Solutions 1303 East Algonquin Road Schaumburg, IL 60196 United States Phone: 847-576-5000 Fax: 847-576-5372 http://www.motorola.com
Verizon Communications Inc. (VZ) Up-date 3 December 9, 2009 Paul A. Ebeling, Jnr. Analyst
Last Look: May 14, 2009
Today let’s look at Verizon Communications Inc. (VZ), the 2nd largest US telecommunications services provider, from a Technical POV. The overall indications, after Tuesday’s (December 8, 2009) 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: 'Anatomy of a Data Breach' Sheds New Light on How and Why Attacks Occur http://finance.yahoo.com/news/Verizon-Business-Issues-2009-prnews-977350488.html?x=0&.v=1
Tuesday’s Market Action Close 33.39 +. 14
There is a Bearish Doji Star on December 8, and two Gaps open up between November 9 and 23, 2009 at 29.59/30.57 the near term resistance is NIL, support at 33.29, and the 50 day (EMA) exponential moving average is 30.04.
This is Verizon Communications Inc. (VZ): The Company provides communication services in the United States and internationally. It operates in two segments, Wireline and Domestic Wireless. The Wireline segment provides voice, Internet access, broadband video and data, next generation Internet protocol (IP) network services, network access, and long distance services to consumers, carriers, businesses, and government customers. It operates a fiber-to-the-premises (FTTP) network under the FiOS service mark that offers bandwidth, and designed to handle future broadband and video applications. As of December 31, 2008, this segment’s wireline network included approximately 36,161,000 wireline access lines, 8,673,000 broadband connections, and 1,918,000 FiOS TV customers. The Domestic Wireless segment offers in wireless voice and data products, and other value-added services, as well as sells equipment. This segment serves approximately 80 million customers. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000.
Competitive Landscape Demand is driven by technological innovation and by growth in business activity. The profitability of individual companies depends on efficient operations and good marketing. Large companies have big economies of scale in providing a highly automated service to large numbers of customers, and have the financial resources required to build and maintain a large network. Smaller companies can compete effectively only in small markets or by providing specialty services. Because of the large degree of automation, average revenue per employee is a high US$300,000. Telecommunication Services Industry Forecast The output of US telecommunications is forecast to grow at an annual compounded rate of 4 % between 2008 and 2013. Data Sourced: December 2008
Verizon Communications Inc. (HQ) Chairman and Chief Exec. Officer: Ivan G. Seidenberg 140 West Street New York, NY 10007 United States Phone: 212-395-1000 Web Site: http://www.verizon.com
Verizon Subsidiaries Alltel Corporation Cellco Partnership Idearc Inc.
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