The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
10 December 2009
Date Line: Hong Kong (SAR) China
You can now follow us on Twitter please go to http://twitter.com/EbelingHefferna and join in.
US Stocks rebounded after falling 2 days running
Re-cap of the US Stock Market Action for the session ending 9 December 2009 US Stocks ended higher Wednesday as a weaker USD boosted shares of financial, technology and natural resource companies. The DJIA closed up 51.08 pts, or 0.50%, at 10,337.05, the S&P 500 rose 3.95 pts, or 0.36%, to close at 1,095.89, the NAS tallied up + 10.74 pts, or 0.49%, to end the session at 2,183.73. The USD index, inversely correlated with equities since March 9, 2009, dropped 0.4% on the day. US Treasury Secretary Geithner said the government would extend its US$700B financial aid fund to October 2010 to further fight home foreclosures, ease credit for small businesses, and spur job growth. The extension will help medium and small banks. The KBW bank index gained 0.3%, and the S&P financial index was up 0.5%. In the materials sector, shares of US Steel Corp rose 5.7% to US$46.74/shr, and Alcoa Inc was up1.6% to US$13.08/shr. Advancing Sectors: Materials (+1.3%), Tech (+0.9%), Health Care (+0.6%), Financials (+0.4%), Utilities (+0.4%), Energy (+0.1%) Declining Sectors: Consumer Discretionary (-0.2%) Unchanged: Consumer Staples, Industrials, Telecom Volume and Breadth: Trade was light on the NYSE, with 1.08B/shrs changing hands, below last year's estimated daily average of 1.49B/shrs, and on the NAS, about 1.92B/shrs traded, below last year's daily average of 2.28b/shrs. Advancers outnumbered decliners on the NYSE 16 to 13, and the NAS advancers and decliners were about even. Stocks to Watch Today
Brocade Communications Systems, Inc. (BRCD), Pfizer Inc. (PFE), Research In Motion (RIMM), and United States Steel Corporation (X)
Brocade Communications Systems (BRCD) Up-date 3 Last Look: October 8, 2009 December 10, 2009 Paul A. Ebeling, Jnr. Analyst Today, letâ€™s look at Brocade Communications Systems, Inc. (BRCD), the maker of fiber channel switches, from a Technical POV. The overall indicators, after Wednesdayâ€™s (December 9, 2009) market action, are Neutral: in the near term Neutral, mid-term Bearish, and long term Neutral. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News and Opinion: Brocade Rises; Oppenheimer Upgrades http://blogs.barrons.com/techtraderdaily/2009/12/07/brocade-rises-oppenheimer-upgrades/? mod=yahoobarrons
Wednesdayâ€™s Market Action
Close 7. 67 + .30
There are two Gaps open down on November 12 and 24, 2009 at 9.06/7.60, the near term resistance is 7.90, support at 7.62, and the 50 day (EMA) exponential moving average is 8.02. 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 USAâ€™s economy heavily influences business spending for software products. The success of programming companies depends heavily on strong technical expertise. The success of packagedsoftware 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
Brocade Communications Subsidiaries Foundry Networks, Inc.
Pfizer Inc. (PFE) Up-date 5
Last Look: November 4, 2009
December 10, 2009 3
Paul A. Ebeling, Jnr. Analyst Let’s have a look at Pfizer Inc. (PFE), the Giant manufacturer of prescription medicines for humans and animals worldwide, from a Technical POV. The overall indications, after Wednesday’s (December 9, 2009) market action is Bullish: in the near term Neutral, mid-term Very Bullish, and long term Very Bullish. The recent Candle Stick Analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News and Opinion: Pfizer gains ground as analyst predicts company will raise dividend by midDecember
http://finance.yahoo.com/news/Pfizer-rises-as-analyst-apf-2728366634.html?x=0&.v=2 Wednesday’s Market Action Close 18.24
There is a DOJI on November 3 and one Gap open up on July 21, 2009 at 15.29/15.36 the near term resistance is 17.16, support at 16.88 and the 50 day (EMA) exponential moving average is 16.81.
This is Pfizer Inc. (PFE): The Company engages in the discovery, development, manufacture, and marketing of prescription medicines for humans and animals worldwide. Its Pharmaceutical segment offers Lipitor for elevated cholesterol levels in the blood; Norvasc for hypertension; Caduet for cardiovascular events; Chantix/Champix for smoking cessation; Lyrica for neuropathic pain; Geodon/Zeldox, a psychotropic agent; and Aricept for Alzheimerâ€™s disease. It also provides Celebrex for arthritis pain, and inflammation and acute pain; Vfend for esophageal candidiasis and blood stream infections; Zyvox for bacterial infections; and Selzentry/Celsentri for adults infected with only CCR5-tropic HIV-1 detectable. In addition, this segment provides Viagra for erectile dysfunction; Detrol and Toviaz for overactive bladder; Camptosar for metastatic colorectal cancer; Sutent, an oral multi-kinase inhibitor; Xalatan/Xalacom for open-angle glaucoma and ocular hypertension; and Genotropin for growth disorders. The companyâ€™s Animal Health segment offers parasiticides, anti-inflammatories, antibiotics, vaccines, antiemetics, and anti-obesity agents. It also provides Revolution/Stronghold for dogs and cats; Rimadyl for pain and inflammation associated with canine osteoarthritis and soft tissue orthopedic surgery; Clavamox/Synulox for skin and soft tissue infections; RespiSureOne/StellamuneOne to prevent pneumonia in swine; Bovi-Shield Gold for reproductive and respiratory protection; Dectomax, an injectable and pour-on formulations; Draxxin, an antibiotic for infections in cattle and swine; and Excede to treat infections in dairy cows, beef cattle, and swine. Pfizer Inc. also involves in contract manufacturing and bulk pharmaceutical chemicals businesses. It serves doctors, nurse practitioners, physician assistants, pharmacists, hospitals, pharmacy benefit managers, managed care organizations, and government agencies. Pfizer, Inc. was founded in 1849 and is headquartered in New York, New York. Competitive Landscape The industry is marked by rapid advances in scientific knowledge that produce ever-more effective medicines. Profitability is determined mainly by the ability to discover new drugs. The industry is dominated by the large manufacturers/marketers that manufacture drugs, have large research operations, and also have large clinical testing, marketing, and distribution capabilities. Small companies are mainly research operations or manufacturers of non-prescription products. Because of the high value of the product, average revenue per employee is a very high US$600,000. The output of US drug manufacturing is forecast to grow at an annual compounded rate of 8 % between 2008 and 2013. Data Sourced: December 2008 Pfizer Inc. (HQ) Chairman, Chief Exec. Officer Jeffrey B. Kindler 235 East 42nd Street New York, NY 10017 United States Phone: 212-573-2323 Fax: 212-573-7851 http://www.pfizer.com
Pfizer Subsidiaries Pfizer Health Solutions Inc Pfizer Ireland Pharmaceuticals Pfizer Limited
Research In Motion Ltd. (RIMM) Up-Date 12
Last Look: September 25, 2009
December 10, 2009 Paul A. Ebeling, Jnr. Analyst 5
Today let’s look at the Research In Motion (RIMM), the innovator that bought the world BlackBerry, the tool that keeps us connected, from a Technical POV, The overall indications, after Wednesday’s (December 9, 2009) market action, are Neutral, in the near term it is Neutral, mid-term Neutral, and long term Neutral. The recent Candle Stick analysis is: Neutral
Latest News and Opinion: RIM option bulls line up for China deal, earnings http://finance.yahoo.com/news/RIM-option-bulls-line-up-for-rb-2374378988.html?x=0&.v=2 Wednesday’s Market Action
There are two Gaps open down between September 25 and October 16, 2009 at 82.72/67.94, the near term resistance is 65.31, the support is 61.05 and the 50 day exponential moving average at 63.20.
This is Research in Motion (RIMM): RIM moves with its customers. In the world of personal communications Research in Motion provides wireless hardware, software, and services to customers worldwide. Its signature BlackBerry smart phones handle voice, email, and text messaging, + Internet access. RIM also provides software development tools and makes radio-based modems that other manufacturers incorporate into portable devices. RIM sells to corporations, resellers, and wireless carriers. The ubiquitous BlackBerry devices are offered by service providers including AT&T Mobility, TMobile, and Verizon Wireless. The Competitive Landscape Demand for RIM and their competitorâ€™s products are tied to consumer and business income. The profitability of individual computer companies depends on purchasing and production efficiencies, and on technological expertise. Large companies like RIM 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$500,000. The output of North American computer manufacturing is forecast to grow at an annual compounded rate of 3.9% between 2007 and 2012. Competition RIMâ€™s competitors are primarily in the Handheld Computers & Accessories industry. It also competes in the Computer Networking Equipment, Wireless Software, and Wireless Telecommunications Equipment sectors. RIM competitive landscape includes: Apple, Microsoft, and Nokia. RIM is ranked #107 on the Financial Times Global 500 list with sale of US$ 6+B and 8,400 employees.
Research In Motion, Ltd. (HQ) Co-CEO and Director James L. Balsillie President, Co-CEO, and Director Michael Lazaridis 295 Phillip St. Waterloo, Ontario N2L 3W8, Canada Phone: 519-888-7465 Fax: 519-888-7884
United States Steel Corporation (X) Up-date 7 Last Look: August 27, 2009 December 10, 2009 Paul A. Ebeling, Jnr. Analyst 7
Today let’s look at United States Steel Corporation (X), one of the world’s steelmaking leaders, from a Technical POV. The overall indications, after Wednesday’s (December 9, 2009) market action is Bullish: in the near term Bullish, mid-term Bullish, and long term Neutral. The recent Candle Stick Analysis is: Very Bullish
**Chart by: http://www.stockta.com
Latest New and Opinion: Steel Can Lift Despite Weak Oil http://secure2.thestreet.com/cap/login/rm_mbp_yho_w-ads.jsp? cm_ven=YAHOO&cm_cat=PREMIUM&cm_ite=003190&flowid=769a4fe991&url=http://www.thestreet.co m/p/_yahoo/rmoney/jimcramerblog/10642225.html
Wednesday’s Market Action Close 46.74
There is a DOJI on December 8, and three Gaps open up between July 14 and November 11, 2009 at 31.69/47.61, the near term resistance is at 47.60, support at 42.33, and the 50 day exponential moving average is 42.48. This is United States Steel Corporation: Pittsburgh, PA based United States Steel is the US’s #2 integrated steelmaker behind Mittal Steel USA. US Steel operates mills throughout the US Mid-west, Ontario, Canada, and in Serbia and Slovakia. U.S. Steel produces sheet and semi-finished steel, tubular and plate steel, and tin products. Its customers are primarily in the automotive, construction, chemical and steel service center industries. Further, U.S. Steel offers services in mineral resource management, engineering and consulting. In 2007 the company acquired tubular goods maker Lone Star Technologies for US$2.1B and Stelco for US$1.1B. US Steel is ranked #146 in FORTUNE 500.
The Competitive Landscape United States Steel's competition in the primary Metals Manufacturing sector is Mittal Steel USA. The industry is highly concentrated and the major companies control 90% of the market. The output of US primary ferrous and non-ferrous metals manufacturing is forecast to increase at an annual compounded rate of 4.4 % between 2008 and 2013.
United States Steel Corporation (HQ) Chairman & CEO John P. Surma Jr. EVP & COO John H. Goodish 600 Grant St. Pittsburgh, PA 15219-2800 United States Phone: 412-433-1121 Fax: 412-433-5733 http://www.ussteel.com
United States Steel Subsidiaries and Affiliates Pro-Tec Coating Company Transtar, Inc. U.S. Steel Canada Inc 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 within the US Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. The information contained on our website or in any of our newsletters should be viewed as commercial advertisement and is not intended to be investment advice. Any information found on our website, or in any of our newsletters is not provided to any particular individual with a view toward their individual circumstances. The information contained on our website, and in any newsletter we distribute, is not an offer to buy or sell securities. We distribute opinions, comments, and information free of charge exclusively to individuals who wish to receive them.
Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company. An individual should never invest in the securities of any of the companies’ profiled based solely on information contained in our report. Individuals should assume that all information contained on our website or in one of our newsletters about profiled companies is not trustworthy unless verified by their own independent research.
Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment adviser or licensed stock broker before investing.
Information contained in the Redroadmaster Stock Talk report will contain “forward looking statements” as defined under section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.
Red Roadmaster is committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable. To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in this report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information). We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org