28th July, 2009
Paul A. Ebeling, Jr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highlyregarded financial market letter, read by opinion makers, business leaders and organizations around the world. Ebeling has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/ Support Levels.
Paul A. Ebeling, Jr. firstname.lastname@example.org
The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
July 28, 2009
Wall St ends up in the Green in late session rally led by banks
Re-cap of the US Stock Market Action for 27 July 2009 + Stock Talk. US Stocks continued the charge North on Monday in a late rally as investors rotated into financial issues, which had been the laggard recently, but today was the session's strongest sector, Zions Bancorporation (ZION.O) soared 13% to US$12.65 on the NAS (covered today in Stock Talk). The DJIA gained 15.27 pts, or 0.17%, to close at 9,108.51, the S&P 500 rose 2.92 pts, or 0.30%, to close at 982.18, and the NAS tallied + 1.93 pts, or 0.10%, to end the session at 1,967.89. After the Bell, shares of Amgen Inc. rose 3.2%to US$62 .72 as the company raised its full-year earnings forecast and reported a better-than-expected quarterly profit. Volume and Breadth: trade was light on the NYSE, where about 1.04B/shrs changed hands, less than last year's estimated daily average of 1.49B/shrs, and on the NAS, about 2.16B/shrs traded, below last year's daily average of 2.28b/shrs. Advancers out-numbered decliners on the NYSE by a ratio of 9 to 5, and on the NAS, about 13 stocks rose for every 10 that fell.
Stocks to Watch Today
DryShips, Inc. (DRYS), General Electric Company (GE), PepsiAmericas Inc. (PAS), United States Steel Corporation (X), Visa, Inc (V) and Zions Bankcorporation (ZION).
DryShips, Inc. (DRYS) Up-date 9 July 28, 2009 Paul A. Ebeling, Jr. Analyst Today, let’s have a look at DryShips, Inc. (DRYS), the international bulk sea carrier, from a Technical POV. The overall indications, after Monday’s (July 27, 2009) market action, are Neutral; in the near term Bullish, mid-term Neutral, and long term Neutral. The recent Candle Stick Analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News: Drybulk earnings to be mostly in line with expectations http://www.reuters.com/article/marketsNews/idINBNG49346120090727?rpc=44 Monday’s Market Action Close 7.08
There are two Gaps open up between Mar 19 and July 27, 2009 at 4.25/6.38, the near term resistance is 7.34, support at 6.08, and the 50 day (EMA) exponential moving average is 6.22. This is DryShips Inc. (DRYS): DryShips commands a fleet of 40 dry bulk carriers. The company's vessels carry commodities such as coal, iron ore, and grain, as well as bauxite, fertilizers, and steel products. The fleet, which is made up mainly of Panamax vessels but also includes Capesize and Supramax units, has an overall capacity of more than 3.1MM deadweight tons (DWT). Vessels are chartered to shipping companies largely on the spot market, but also on long-term contracts. In addition to its dry bulk operations, Dry Ships is engaged in the offshore drilling business. The Competitive Landscape Demand is driven by macroeconomic trends in global imports and exports. The profitability of individual companies depends on efficient operations and a good safety record. Large companies have advantages in fleet size and port access. Small companies can compete effectively by chartering services out of smaller ports and transporting unusual cargo. Average annual revenue per worker for a typical company is nearly US$500,000. Deep Sea Shipping Industry Forecast The output of US water transportation, which includes deep sea shipping, is forecast to grow at an annual compounded rate of 7.4 % between 2008 and 2013. DryShips Inc. (HQ) Chairman, President, CEO, and Interim CFO George Economou
80 Kifissias Ave., Maroussi 15125 Athens, Greece Phone: +30-210-809-0570 http://www.dryships.com
General Electric Company (GE) Up-date 41 July 28, 2009 Paul A. Ebeling, Jr. Analyst Today letâ€™s look at General Electric Company (GE), a company whose innovative leadership has played a major part in shaping the modern world and how we live and enjoy it, from a Technical POV. The overall indications after Mondayâ€™s (July 27, 2009) market action is 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: Proposed Overhaul Puts a New Spin on GE http://online.wsj.com/article/SB124873366097484967.html?ru=yahoo#mod=yahoo_hs
Monday’s Market Action Close
There are three Gaps open up between Mar 10 and July 13 2009 at 7.83/10.87, the near term resistance is 13.02, support at 12.12 and the 50 day (EMA) exponential moving average is 12.06. This is the General Electric Company (GE): GE manufactures everything from turbines to TVs, from household appliances to power plants, General Electric has innovated businesses that have shaped the modern world and how we live and enjoy it. The company produces; aircraft engines, locomotives and other transportation equipment, kitchen and laundry appliances, lighting, electric distribution and control equipment, generators and turbines, and medical imaging equipment. GE is also one of the preeminent financial services companies in the US. Its General Electric Capital unit comprises commercial finance, consumer finance, aircraft leasing, and energy financial services, is its largest segment. Plus they own and operate the NBC television network.
Industries Where GE Competes Commercial Lending (primary) Aerospace & Defense Automotive & Transport Consumer Products Manufacturers
GE Subsidiaries and Affiliates CFM International, S.A. Société Factofrance Fanuc GE CNC Europe S.A.
General Electric (HQ) Chairman and CEO Jeffrey R. (Jeff) Immelt 3135 Easton Tpke. Fairfield, CT 06828-0001 United States Phone: 203-373-2211 Fax: 203-373-3131
PepsiAmericas Inc. (PAS) Up-date 1 July 28, 2009 Paul A. Ebeling, Jr. Analyst Today letâ€™s look at PepsiAmericas Inc. (PAS), the World's #2 Pepsi bottler, from a Technical POV. The overall indications, after Mondayâ€™s (July 27, 2009) market action, are Neutral: in the near term Neutral, mid-term Bullish, and long term Neutral. The recent Candle Stick analysis is: Bullish.
**Chart by: http://www.stockta.com
Latest News: PepsiCo posts stronger than expected profit http://www.reuters.com/article/marketsNews/idAFN2224089120090722?rpc=44
Mondayâ€™s Market Action Close 26.53
There is a Bullish Engulfing Candle on July 24 and three Gaps open up between Apr 2 and 20, 2009 at 17.84/23.05, the near term resistance is 28.92, support at 26.31, and the 50 day (EMA) exponential moving average is 25.75. This is PepsiAmericas Inc. (PAS): The Company is the World's #2 Pepsi bottler (behind Pepsi Bottling Group) distributes all the familiar Pepsi brands, along with Lipton Iced Teas, Dr Pepper, 7UP, and Crush from the Dr Pepper Snapple Group, Starbucks Frappuccino, and Aquafina bottled water. PepsiAmericas operates in 19 US states (mostly in the Midwest) and holds nearly 20% of the US market for Pepsi products. It also distributes drinks in nearly a dozen European countries and in several Caribbean nations. PepsiCo has agreed to acquire the 60% of PepsiAmericas it doesn't already own.
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 2% between 2008 and 2013. Data Sourced: December 2008
PepsiAmericas Inc. (HQ) Robert C. Pohlad Chairman and Chief Exec. Officer 4000 RBC Plaza 60 South Sixth Street Minneapolis, MN 55402 United States Phone: 612-661-4000 Fax: 612-661-4004 http://www.pepsiamericas.com
United States Steel Corporation (X) Up-date 5 7|Page
July 28, 2009 Paul A. Ebeling, Jr. Analyst 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 Monday’s (July 27, 2009) market action is Bullish: in the near term Bullish, mid-term Very Bullish, and long term Bullish. The recent Candle Stick analysis is: Bullish
**Chart by: http://www.stockta.com
Latest News: Tomorrow's Headliners: U.S. Steel, Valero http://www.thestreet.com/_yahoo/story/10554562/1/tomorrows-headliners-us-steelvalero.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
Monday’s Market Action Close 41.27
Volume 10,588,200/shrs 8|Page
There is a Bullish Engulfing Candle on July 23 and three Gap open up between Apr 9, and Jul 15, 2009 at 24.36/33.40, the near term resistance is at 41.83, support at 37.31, and the 50 day exponential moving average is 34.63. This is United States Steel Corporation: Pittsburgh, PA based United States Steel is the USâ€™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 Pro-Tec Coating Company Transtar, Inc. U.S. Steel Canada Inc.
Visa, Inc. (V) Up-date 1 July 28, 2009 9|Page
Paul A. Ebeling, Jr. Analyst Today let’s look at Visa, Inc. (V), the operator of the World's largest consumer payment system, from a Technical POV. The overall indications, after Monday’s (July 27 2009) market action, are Bullish: in the near term Bullish, mid-term Bullish, and long term Neutral. The recent Candle Stick analysis is: Bullish
**Chart by: http://www.stockta.com
Latest News: Visa says president to leave; meets or tops views http://finance.yahoo.com/news/Visa-says-president-to-leave-rb-1711297259.html?x=0&.v=1
Monday’s Market Action
Close 6819 + .90
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There is a Bullish Engulfing Candle on July 24 and one Gap open up on July 15, 2009 at 60.51/60.67, the near term resistance is 68.43, support at 67.09, and the 50 day (EMA) exponential moving average is 63.51. This is Visa, Inc. (V): Visa operates the world's largest consumer payment system (ahead of MasterCard and American Express) with some 1.6 billion credit and other payment cards in circulation. It licenses the Visa name to member institutions, which issue and market their own Visa products and participate in the VisaNet payment system (authorization, transaction processing, and settlement services). Visa also provides its customers with debit cards, Internet payment systems, value-storing smart cards, and traveler's checks. Visa Inc., which was created by a restructuring of several Visa organizations, went public in 2008 and raised about $17 billion.
Industries Where Visa Inc Competes Financial Services Transaction, Credit & Collections Electronic Payment Systems (primary) Lending Credit Cards
Visa, Inc. (HQ) Joseph W. Saunders, Exec. Chairman and Chief Executive Officer P.O. Box 8999 San Francisco, CA 94128-8999 United States Phone: 415-932-2100
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Zions Bankcorporation (ZION) Up-date2 July 28, 2009 Paul A. Ebeling, Jr. Analyst Today, letâ€™s look at Zions Bankcorporation (ZION), the US western Multibank holding company, from a Technical POV. The overall indications , after Mondayâ€™s (July 27, 2009) market action, are 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: Zions Bancorporation Board Declares Dividend of US$0.01 Per Common Share
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Mondayâ€™s Market Action Close 12.65
There is Bullish Engulfing Candle on July 27 an a Gap open down on July 21, 2009 at 11.58/11.48, the near term resistance is 13.30, support at 12.14, and the 50 day (EMA) exponential moving average is 12.42.
This is Zions Bankcorporation (ZION): Multibank holding company Zions Bancorporation has a strong presence in the US West. It operates eight bank subsidiaries with a total of more than 500 branches in 10 western and southwestern states. The banks and their subsidiaries provide commercial and retail banking and mortgage lending products. They also offer personal banking fare, including lending products like home mortgages, bank cards, and home equity lines of credit ; deposit products such as checking and savings accounts and time certificates; and trust and wealth management services. The company is also a leading Small Business Administration (SBA) and agricultural lender.
Competitive Landscape Demand for banking services is closely tied to economic activity and the level of interest rates. The profitability of individual banks depends on marketing skills, efficient operations, and good risk management. Large economies of scale exist in some segments of the 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 close to US$300,000. Banks and Credit Unions Industry Forecast The output of US banks and credit unions is forecast to grow at an annual compounded rate of 1% between 2008 and 2013. Data Sourced: December 2008
Zions Bancorp. (HQ) Harris H. Simmons Chairman, Chief Exec. Officer & President One South Main Suite 1500 Salt Lake City, UT 84133-1109 United States Phone: 801-524-4787 Fax: 801-524-2129 http://www.zionsbancorporation.com
Zions Bancorporation Subsidiaries Amegy Corporation California Bank & Trust The Commerce Bank of Oregon
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Red Roadmaster Stock Talk featuring DRYS, GE, PAS, X, V, ZION