The Red Roadmaster’s US Market Re-cap + Stock Talk ™
September 1, 2009
Date Line: Lugano, CH
The month of August came to a close and the Bull rested as the leading sectors prepare to rotate. Stay alert as the sectors begin their rotation. There some terrific stocks in energy, metals and industrials that have set up well in here and look ready to break out if the money stays put and new money comes to drive the Bull charge further North. Savvy traders are buying into them now as they set up to breakout.
Alert: Red Roadmaster looks at GetFugu, Inc. (GFGU) and TOMI Environmental Solutions, st Inc.(TOMZ) for the 1 time today. Re-cap of the US Stock Market Action for 31 August 2009 Month’s End On the Month: DJIA closed + 3.5%, the S&P 500 up 3.4% and NAS tallied up + 1.5%. In Monday's session, the DJIA closed minus 47.92 pts, or 0.50%, at 9,496.28, the S&P 500 closed off 8.31 points, or 0.81%, at1,020.62, and the NAS gave up 19.71 pts, or 0.97%, to end the session at 2,009.06. The Institute for Supply Management-Chicago's business barometer rose to 50.0 in August. The level was higher than expected, as I noted it would be in the Market Report out at 6.00am today. Walt Disney Co agreed to buy Marvel Entertainment for US$4B, while Baker Hughes Inc said it would buy BJ Services Co for US$5.5B. Marvel shares soared 25.2% to US$48.37, while BJ Services' stock was up 4.1% at US$16.06. Volume and Breadth: Trade was light on the NYSE, with 1.38B/shrs changing hands, below last year's estimated daily average of 1.49B/shrs, and on the NAS, about 2.33B/shrs traded, above last year's daily average of 2.28B/shrs. Decliners outnumbered advancers on the NYSE by a ratio of 11 to 4, and on the NAS, about 19 stocks fell for every seven that rose. Stock to Watch Today Citigroup, Inc.(C), Eastman Kodak Co (EK), GetFugu, Inc. (GFGU), Satyam Computer Services Ltd. (SAY), and TOMI Environmental Solutions, Inc.(TOMZ)
Citigroup, Inc. (C) Up-date 47 September 1, 2009 Paul A. Ebeling, Jnr. Analyst Today letâ€™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 Mondayâ€™s (August 31, 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: Morgan Stanley and Citigroup Inc. have invested US$100MM each to finance separate wind farms in August.
Mondayâ€™s Market Action Close 5.00 - .23
There are four Gaps open up between March 11 and August 21, 2009 at 1.45/4.58, and one Gap open down on August 31, 2009 at 5.23/5.03, the near term resistance is 5.23, support 4.76, and the 50 day (EMA) exponential moving average is 3.68. 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 remains 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 Grupo Financiero Banamex, S.A. de C.V. Bank Handlowy w Warszawie S.A. Citi Commerce Solutions
EASTMAN KODAK CO (EK) Up-date 3 September 1, 2009 Paul A. Ebeling, Jr. Analyst Today let’s look at Eastman Kodak Co (EK), the inventor of the Brownie camera (1900), from a Technical POV. The overall indications, after Monday’s (August 31, 2009) market action, are Very Bullish: in the near term Very Bullish, mid-term Very Bullish, and long term Bullish: The recent Candle Stick analysis is: Very Bullish
**Chart by: http://www.stockta.com
Latest News: Let’s Make A Deal
Mondayâ€™s Market Action
There is a Bullish Engulfing Candle on August 31, 2009 and no Gaps open up or down on the Chart, the near term resistance is 5.54, support at 5.07, and the 50 day (EMA) exponential moving average is 3.87. This is Eastman Kodak Co (EK): The Company is the inventor of the Brownie camera (1900), Kodak has retouched its image from a top maker of photographic film to a provider of imaging technology products and services to the photographic and graphic communications markets. The firm has restructured itself to focus less on sales of film and more on sales of digital cameras and imaging systems. It operates through three business segments: Consumer Digital Group (CDG), Film Products Group (FPG), and Graphic Communications Group (GCG). Kodak's shift to become a digital technology business has involved purging some 30,000 employees, with additional plans to eliminate up to 18% of its workforce in 2009.
Competitive Landscape Demand is tied to consumer and business income. The profitability of individual computer companies depends on purchasing and production efficiencies, and on technological expertise. Large companies 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 highly automated: annual revenue per employee is about US$400,000. Computer Manufacture Industry Forecast The output of US computer manufacturing is forecast to grow at an annual compounded rate of 4% between 2008 and 2013. Data Sourced: December 2008
Eastman Kodak Co (EK) Antonio M. Perez , Chairman, Chief Exec. Officer 343 State Street Rochester, NY 14650 United States Phone: 585-724-4000 Fax: 585-781-5400
GetFugu, Inc. (GFGU) September 1, 2009 Paul A. Ebeling, Jr. Analyst Today, letâ€™s look at GetFugu, Inc. (GFGU), the first technology architect to provide a carrier agnostic, platform agnostic mobile search platform, from a Technical POV. The overall indications, after Mondayâ€™s (August 31, 2009) market action, are Bullish: in the near term Neutral, mid-term Bullish, and long term Bullish. The recent Candle Stick analysis is: Bullish
**Chart by: http://www.stockta.com
Latest News: GetFugu to Debut At GigaOM's Mobilize 09 On 9/9/09; Releases Strategic Direction Video http://finance.yahoo.com/news/GetFugu-to-Debut-At-GigaOMs-pz-1774654510.html?x=0&.v=1
Mondayâ€™s Market Action Close .70 0.00
There is a Bullish Kicking Candle on August 31,2009 and no Gaps open up or down on the Chart, the near term resistance is .80, support at .68 , and the 50 day (EMA) exponential moving average is .58. This is GetFugu, Inc. (GFGU): The Company is the first technology architect to provide a carrier agnostic, platform agnostic mobile search platform. GetFugu will change the way people access the web with their mobile phones. It is designed to encourage use of its applications by simply integrating the mobile phones' core strengths (image recognition, voice recognition, location recognition) into a single customizable application. Additionally, GetFugu offers the only mobile hot-spotting ecommerce platform available worldwide today. The GetFugu platform will be available for 97% of the mobile phones available (over 3.3 billion handsets) worldwide.
Competitive Landscape NIL GetFugu, Inc. (HQ) Bernard Stolar Chief Exec. Officer and President 600 Townsend Street Suite 129 E San Francisco, CA 94103 United States - Map Phone: 415-848-8800 Web Site: http://www.getfugu.com
Satyam Computer Services Ltd. (SAY) Up-date 2 September 1, 2009 Paul A. Ebeling, Jr. Analyst Today letâ€™s look at Satyam Computer Services Ltd. (SAY), the recovering Indian IT services company, from a Technical POV. The overall indications, after Mondayâ€™s (August 31, 2009) market action, are Bullish: in the near term Bullish, mid-term Very Bullish, and long term Very Bullish. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News: Monday Options Update: SAY, UNG, DVN, BJS, AXP, & IP
Mondayâ€™s Market Action Close 6.66 + 1.81
There is a Bearish Engulfing Candle on August 21 and six Gaps open up between April 2 and July 23, 2009 at 1.71/4.81, the near term resistance is 6.93, support at 6.00, and the 50 day (EMA) exponential moving average is 4.85. This is Satyam Computer Services Ltd. (SAY): The Company provides onsite, offsite, and offshore IT services. The company offers a wide range of information technology services, including software development, managed IT services, engineering design, data warehouse development, and systems integration. Satyam provides its services to customers worldwide, but most of the company's sales come from clients in North America and Europe. Satyam's customers have included GE and the US government. In early 2009 the company's chairman, CEO, and CFO resigned after admitting that Satyam had doctored its books for years, with fictitious assets and cash leaving a US$1B shortfall in the company's balance sheet.
Competitive Landscape Demand for IT services is driven by rapid technological advances, but spending for these expensive products depends on the health of the US economy. The profitability of companies depends on offering technical expertise, innovative services, and effective marketing. Large companies have advantages in broad service offerings and global reach, which give them the ability to provide outsourcing services to big corporate customers. Small companies can compete effectively by specializing in market niches or by partnering with larger companies that want to broaden their mix of services. Average annual revenue per employee is close to US$160,000. Information Technology Industry Forecast The output of US computer and data processing is forecast to grow at an annual compounded rate of 3% between 2008 and 2013. Data Sourced: December 2008
Satyam Computer Services Ltd. (HQ) Chief Exec. Officer: A. S. Murty Satyam technology Center Survey No.62/1A, Qutubullapaur Mandal Hyderabad, 500043 India Phone: 91 40 3063 3535 Fax: 91 40 2309 7515 http://www.satyam.com
TOMI Environmental Solutions, Inc.(TOMZ) September 1, 2009 Paul A. Ebeling, Jr. Analyst Today, let’s look at TOMI Environmental Solutions, Inc.(TOMZ), a provider environmental solutions for indoor air pollution through inspection, air quality testing, and indoor cleaning ,from a Technical POV. The overall indications, after Monday’s (August 31, 2009) market action, are Neutral: in the near term Neutral, midterm Neutral, and long term Neutral. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News: TOMI ENVIRONMENTAL SOLUTIONS, INC. Financials
Monday’s Market Action Close 4.00 0.00
The near term resistance is 6.00, support at 3.71, and the 50 day (EMA) exponential moving average is N/A. This is TOMI Environmental Solutions, Inc.(TOMZ): The company provides environmental solutions for indoor air pollution through inspection, air quality testing, and indoor cleaning. It produces ozone through its proprietary UV ozone generators. The company offers its products and services for single homes and multi-unit residences, as well as for various commercial structures, including medical facilities, hotel and motel rooms, and schools. Its products and services are also used for water treatment in agriculture, meat processing plants, laundries, and dairies. The company was formerly known as The Ozone Man, Inc. and changed its name to TOMI Environmental Solutions, Inc. in March 2009. TOMI Environmental Solutions was founded in 2007 and is based in Beverly Hills, California. TOMI Environmental Solutions, Inc. Dr. Halden S. Shane Chairman, Chief Exec. Officer, Principal Financial Officer. 9454 Wilshire Boulevard Suite 600 Beverly Hills, CA 90212 United States Phone: 310-371-4171 Fax: 310-275-2282 www.tomiesinc.com Disclaimer
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