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Red Roadmaster

STOCK TALK


Red Roadmaster


6th August, 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.

Contact

Paul A. Ebeling, Jr. redroadmaster@aol.com


The Red Roadmaster’s US Market Re-cap + Stock Talk ™

August 5, 2009 Dateline Los Angeles, CA. Summer Edition

The Bull Rested after a four-day rally that drove the three major US stock indexes to close on Tuesday at their highest levels in Nine + months.

Re-cap of the US Stock Market Action for August 5, 2009 US stocks took a breather Wednesday after a four-day rally that drove the three major US stock indexes to close on Tuesday at their highest levels in Nine + months. AIG, covered in Stock Talk earlier this week, closed up 62.7% to US$22 ahead of the company's Q-2 earnings on Friday. The DJIA closed minus 39.22 pts, or 0.42% at 9,280.97, the S&P 500 gave up 2.93 pts, or 0.29%, to close at 1,002.72, the NAS lost 18.26 pts, or 0.91%, to end the session at 1,993.05. There was positive data early in the session as the US Commerce Department said new orders received by US factories unexpectedly rose in June, advancing for a third-straight month. Volume and Breadth: Trade was active on the NYSE, with 1.88B/shrs changing hands, above last year's estimated daily average of 1.49b/shrs, and on the NAS, about 2.41B/shrs traded, above last year's daily average of 2.28B/shrs. Decliners outnumbered advancers on the NYSE by a ratio of 8 to 7, while on the NAS, more than eight stocks fell for every five that rose. Stocks to Watch Today Berkshire Hathaway Inc. (BRK.A), Citigroup, Inc. (C), Fifth Third Bankcorp (FITB), Las Vegas Sands Corp. (LVS), Modavox Inc (MDVX), and Wynn Resorts Ltd. (WYNN).


Berkshire Hathaway Inc. (BRK.A) Up-date 6 August 6, 2009 Paul A. Ebeling, Jr. Analyst Dear Reader, Today, let’s look at Berkshire Hathaway Inc (BRK.A), the company home of the world’s now 2nd richest man, from a Technical POV. The overall indications, after Wednesday’s (August 5, 2009) market action, are Bullish; in the near term Neutral, mid-term Bullish, and long term Neutral. The recent Candle Stick analysis is: Neutral

**Chart by: http://www.stockta.com Latest News: Warren Buffett gets it right


http://www.reuters.com/article/marketsNews/idINN0524275820090805?rpc=44 Wednesday’s Market Action Close 104,800

+ 4,490.00

Volume 1,500/shrs

There are three Gaps open up between July 15 and August 3, 2009 between 89,40/97,802, the near term resistance is NIL, support is 100,463, and the 50 day (EMA) exponential moving average is 97,134.85 This is Berkshire Hathaway Inc. (BRK.A): Berkshire Hathaway, Inc. is a publicly owned investment manager. Through its subsidiaries, the firm primarily engages in the insurance and reinsurance of property and casualty risks business. It invests in the public equity markets of the United States and Canada. It employs a value investing approach, investing across sectors. Berkshire Hathaway is based in Omaha, Nebraska. Competitive Landscape Demand is driven by demographics and commercial transactions. The profitability of individual companies depends on effective marketing and on the ability to accurately estimate future payments. Large companies have big economies of scale in administration and in access to capital. Small companies can compete successfully by specializing in particular products or industries. Berkshire Hathaway Inc. (HQ) Chairman and Chief Exec. Officer Warren E. Buffett Vice Chairman Charles Munger 1440 Kiewit Plaza Omaha, NE 68131 United States Phone: 402-346-1400 Fax: 402-346-3375 http://www.berkshirehathaway.com Some Berkshire Hathaway Subsidiaries Acme Brick Company Albecca Inc. Ben Bridge Jeweler Inc.


Citigroup, Inc. (C) Up-date 45 August 6, 2009 Paul A. Ebeling, Jr. Analyst Today let’s look at Citigroup, Inc.(C), perhaps the largest financial services company in the world (now dismantling), from a Technical POV. The overall indications, after Wednesday’s (August 5, 2009) market action is Neutral: in the near term Neutral, mid-term Bullish, and long term Neutral. The recent Candle Stick analysis is: Neutral

**Chart by: http://www.stockta.com


Latest News: 'Mad Money Lightning Round': Bank on Citigroup http://www.thestreet.com/_yahoo/story/10564861/1/mad-money-lightning-round-bank-oncitigroup.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA Wednesday’s Market Action Close 3.58

+ .33

Volume 2,147,483,647/shrs

There are three Gaps open up between Mar 11 and Aug 5, 2009 at 1.45/3.29 the near term resistance is 3.63, support 3.50., and the 50 day (EMA) exponential moving average is 3.10. This is Citigroup, Inc. (C): Citi is perhaps the largest financial services firms on the planet, Citigroup, AKA Citi, has about 3,000 bank branches and consumer finance offices in the US and Canada, + more than 2,000 additional locations in a 100 other countries. Citi is the first US bank to come with more than US$1T in assets, Citi offers deposits and loans, mainly through Citibank, investment banking, brokerage, wealth management, alternative investments, and other financial services. Former CEO Chuck Prince resigned in 2007 as Citi deals with some $60 billion in write downs and losses on mortgage-related securities and other investments. Robert Rubin, Key Advisor/Director recently announced his resignation. The Competitive Landscape Demand for banking services is tied to economic activity and interest rates levels. The profitability of individual banks depends on marketing, efficient operations, and competent risk management. Large economies of scale exist in some segments of the industry, which has experienced 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 US banks and credit unions growth forecast is a question. Industries Where Citigroup Competes Banking Money Center Banks (primary) Financial Services Asset Management Investment Banking Lending Citigroup, Inc. (HQ) Chief Exec. Officer, Director Vikram S. Pandit 399 Park Ave. New York, NY 10043 United States Phone: 212-559-1000 Toll Free: 800-285-3000


http://www.citigroup.com Citigroup Subsidiaries and Affiliates Grupo Financiero Banamex, S.A. de C.V. Bank Handlowy w Warszawie S.A. Citi Commerce Solutions Fifth Third Bancorp (FITB) Up-date 4 August 6, 2009 Paul A. Ebeling, Jr. Analyst Dear Reader, Today, let’s look at Fifth Third Bankcorp (FITB), the large regional full service customer friendly bank, from a Technical POV. The overall indications, after Wednesday’s (August 5, 2009) market action is Bullish; in the near term Bullish, mid-term Bullish, and long term Bullish. The recent Candle Stick analysis is Very Bullish


**Chart by: http://www.stockta.com Latest News: Analyst says regional banks' earnings likely to begin showing recovery in coming months http://finance.yahoo.com/news/Ahead-of-the-Bell-Regional-apf-707345167.html?x=0&.v=1 Wednesday’s Market Action Close 9.99 -.03

Volume 39,903,206/shrs

There is a Bullish Engulfing Candle on August 4, 2009 and one open Gap on Jul 23, 2009 at 7.21/7.77; the near term resistance is NIL, support at 9.58, and the 50 day (EMA) exponential moving average is 7.48. This is Fifth Third Bankcorp (FITB): The Company operates as a diversified financial services holding company. The company’s Commercial Banking segment offers banking, cash management, and financial services; traditional lending and depository products and services; other services, including foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial


leasing, and syndicated finance for business, government, and professional customers. Its Branch Banking segment provides a range of deposit and loan, and lease products to individuals and corporations. Its products include checking and savings accounts, home equity loans and lines of credit, and credit cards and loans for automobile and personal financing needs. The company’s Consumer Lending segment involves in mortgage and home equity lending activities, such as origination, retention, and servicing of mortgage and home equity loans; other indirect lending activities, which include loans to consumers through mortgage brokers, automobile dealers, and federal and private student education loans. Its Investment Advisors segment offers a range of investment alternatives for individuals, companies, and not-for-profit organizations. This segment also offers investment, trust, asset management, retirement planning, and custody services, as well as retail brokerage services to individual clients and broker dealer services to the institutional marketplace. Its Fifth Third Processing Solutions segment offers electronic funds transfer, debit, credit, and merchant transaction processing services; and data processing services. As of March 18, 2008, Fifth Third Bancorp. operated 1,227 full-service banking centers, including 102 Bank Mart locations and 2,211 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, and Georgia. The company was founded in 1862 and is headquartered in Cincinnati, Ohio 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 Fifth Third Bankcorp (HQ) Chairman, Chief Exec. Officer, Pres, Kevin T. Kabat Fifth Third Center 38 Fountain Square Plaza Cincinnati, OH 45263 United States Phone: 513-534-5300 Fax: 513-579-6246 http://www.53.com Las Vegas Sands Corp. (LVS) Up-date 5 Aug 6, 2009 Paul A. Ebeling, Jr. Analyst


Today, let’s look at Las Vegas Sands Corp. (LVS), the international casino/resort operator, from a Technical POV. The overall indications, after Wednesday’s (Aug 5, 2009) market action, are Neutral: in the near term Neutral, mid-term Neutral, and long term Neutral. The recent Candle Stick Analysis is: Very Bullish.

**Chart by: http://www.stockta.com Latest News: The world's biggest casino operators http://www.reuters.com/article/marketsNews/idINHKG33853020090806?rpc=44 Wednesday’s Market Action Close 11.17 + .26

Volume 40,427,100/shrs

There is a Bearish Doji Star on August 5 and, are five Gaps open up between Apr 1 and July 20, 2009 at 3.07/8.96, the near term resistance is 11.28, support at 10.72, and the 50 day (EMA) exponential moving average is 8.95.


This is Las Vegas Sands Corp. (LVS): The Venetian Casino Resort (owned by Las Vegas Sands) brings a touch of Venice to the Las Vegas Strip. Replete with gondoliers and a replica of the Rialto Bridge, the Venetian offers a 120,000-sq.-ft. casino and a 4,000-suite hotel, as well as a shopping, dining, and entertainment complex. Las Vegas Sands also operates the Congress Center conference facility that links the casino to the nearby Sands Expo Center trade show and convention center. In addition, the firm operates The Sands Macao casino in China, and The Palazzo Casino next door to the Venetian in Las Vegas. Chairman and CEO Sheldon Adelson and trusts for his family own nearly 70% of the firm. The 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 laborintensive: annual revenue per employee is US$90,000. Gambling Operations Industry Forecast USA 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 5 % between 2008 and 2013. Las Vegas Sands Corp. (HQ) Chairman, CEO, and Treasurer Sheldon G. Adelson 3355 Las Vegas Blvd. South Las Vegas, NV 89109 United States Phone: 702-414-1000 Fax: 702-414-4884 http://www.lasvegassands.com

Modavox Inc (MDVX) Up-date 2 August 6, 2009


Paul A. Ebeling, Jr. Analyst Today, let’s look at Modavox Inc (MDVX), the US a producer of audio video streaming products on the internet, from a Technical POV. The overall indications, after Wednesday’s (August 5, 2009) market action , are Bullish: in the near term Bullish, mid-term Bullish, and long term Very Bullish. The recent Candle Stick analysis is: Neutral

**Chart by: http://www.stockta.com Latest News: N/A Wednesday’s Market Action Close 4.00 +.02

Volume 115,300/shrs

There is a Bearish Harami on July 31 and one Gap open up Apr 6, 2009 at 2.65/2.85 near term resistance is 4.37, support at 3.94, and the 50 day (EMA) exponential moving average is 3.77.


This is Modavox, Inc (MDVX): the owner of the “Method and System for Adding Function to a Webpage”, their first US patent the “BoomBox Radio” trademark catapulted the business to the front line of the industry. The customized communications company is a pioneer in Internet broadcasting, producing and syndicating online audio and video, offering innovative, effective, and comprehensive online tools for reaching targeted niche communities worldwide. Through patented Modavox technology, Modavox delivers content straight to desktops and Internetenabled devices. Modavox provides managed access for live and on-demand Internet radio broadcasting, e-learning and rich media advertising. They currently boast nearly 100 private and corporate institutions as clients. Their managed sites draw in 5 millions unique visitors per month. Internet radio accounts for 75% of total revenue, and interactive media for 25%. The Competitive Landscape The success of this industry is in the ability of the company engaged in operations to monetize online content. Content monetization is achieved through targeted advertising, platform, subscription, and ecommerce fees along with the sale of highly developed content publishing and distribution software products. The ability of the firm to align their services with consumers needs is one part of the equation to create a profitable business model online. The internet is fiercely competitive and those who stand out as successful traditionally benefit from high margins of profitability due to the nature of business. Software and Programming Industry Performance Year to date through April 24th, the Internet Software & Services index was up 23.8%, versus 3.7% decline in the S&P 1500. In 2008, the index fell 54.2% versus a 38.2% drop for the 1500. Modavox Inc. Chairman and Chief Director: Shelly J Meyers 4636 East University Drive Phoenix, AZ 85034 Phone: 602-648-6080 http://www.modavox.com


Wynn Resorts Ltd. (WYNN) Up-date 4 August 6, 2009 Paul A. Ebeling, Jr. Analyst Today let’s look at Wynn Resorts Ltd. (WYNN), the brainchild of gaming wizard Steven Wynn, from a Technical POV. The overall indications, after Wednesday’s (August 5, 2009) market action is Neutral: 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: Form 10-Q for WYNN RESORTS LTD http://biz.yahoo.com/e/090805/wynn10-q.html Wednesday’s Market Action Close 56.57

- 1.43

Volume 40,427,100/shrs


There are five Gaps open up between Apr 2, and August 3, 2009 at 21.64/52.23, the near term resistance is NIL, support at 53.94, and the 50 day (EMA) exponential moving average is 40.74 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 laborintensive: 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

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

Red Roadmaster Stock Talk  

Red Roadmaster Stock Talk featuring BRK.A, C, FITB, LVS, MDVX, WYNN

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