The Red Roadmaster’s US Market Re-cap + Stock Talk ™
September 2, 2009
Date Line: USA
Alert: Red Roadmaster looks at America's Car-Mart, Inc. (CRMT) for the 1st time.
Re-cap of the US Stock Market Action for 1 September 2009 Month’s Beginning US stocks fell for a 3rd straight day on Tuesday. September began living up to its reputation as the worst month for stocks and on Day 1 all the three major US indexes finished minus 2% on the day (similar to the action on August 17) sending the S&P 500 below 1,000, but not braking the up-trend line. The DJIA gave up 185.68 pts, or 1.96%, to close at 9,310.60, the S&P 500 lost 22.58 pts, or 2.21%, to end the session at 998.04, and the NAS finished minus 40.17 pts, or 2.00% at 1,968.89. The sell of led to a sharp rise in the CBOE Volatility Index .VIX or VIX. Known as Wall Street's barometer of choice for investor Fear as the VIX shot up 12.1% to 29.15, the highest level since early July, as savvy investors used options to take out insurance against further declines in stocks. With all of that action solid evidence that the economy was pulling out of the worst recession in 70 yrs came from the Institute for Supply Management's August manufacturing index, which grew for the first time in 19 months, partially driven by the US Government's Cash-for-Clunkers program. Volume and Breadth: Trade was heavy, unusual for the last week of August, on the NYSE, where 1.63B/shrs changed hands, above last year's estimated daily average of 1.49B/shrs, and on the NAS about 2.76B/shrs traded, solidly above last year's daily average of 2.28B/shrs. Declining stocks outnumbered advancers on the NYSE by a ratio of 5 to 1, and on the NAS, about seven stocks fell for every two that rose.
Stocks to Watch Today America's Car-Mart, Inc. (CRMT), AVI Biopharma, Inc. (AVII), Citigroup, Inc.(C), Oracle Corp. (ORCL), Qualcomm Inc (QCOM), and Wells Fargo & Company (WFC).
America's Car-Mart, Inc. (CRMT) September 2, 2009 Paul A. Ebeling, Jr. Analyst Today, letâ€™s look at America's Car-Mart, Inc. (CRMT), the US seller of affordable automobile transportation, from a Technical POV. The overall indications, after Tuesdayâ€™s (August 1, 2009) market action, are 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: America's Car Mart Profit Up 33% http://www.foxbusiness.com/story/markets/americas-car-mart-profit/ Tuesdayâ€™s Market Action Close 24.05 + 3.45 Volume 981,000/shrs
There is a DOJI on August 26, and two Gaps open up between June 23 and September 1, 2009 at 18.01/22/26, the near term resistance is 24.44, support at 21.86, and the 50 day (EMA) exponential moving average is 19.92. This is America's Car-Mart, Inc. (CRMT): the company targets car buyers with poor or limited credit histories. Car-Mart's subsidiaries operate 90 used-car dealerships in more than half a dozen states, primarily in smaller urban and rural markets throughout the South-Central region of the US. The dealerships focus on America's Car-Mart, Inc. (CRMT (average selling price about $8,700). The company is expanding primarily in Alabama, Oklahoma, and Missouri. While its traditional business plan has focused on cities of 20,000 to 50,000 in population, the company has begun opening dealerships in more populous cities, including Tulsa, Oklahoma. America's Car-Mart was founded in 1981 as the Crown Group.
Competitive Landscape Consumer spending and interest rates drive demand. The profitability of individual companies depends on the volume and mix of cars and services sold. Large companies can offer a wider selection of cars and have advantages in marketing, purchasing, and finance. Small companies can compete effectively by offering superior customer service or serving a local market. Annual revenue per worker averages $600,000 for new car dealerships and US$700,000 for used. Automobile Dealerships Industry Forecast US personal consumption expenditures of new and used autos and other motor vehicles are forecast to grow at an annual compounded rate of 1% between 2008 and 2013. Data Sourced: December 2008
America's Car-Mart Inc. (HQ) Tilman J. Falgout III. Chairman and Gen. Counsel 802 Southeast Plaza Avenue Suite 200 Bentonville, AR 72712 United States Phone: 479-464-9944 Fax: 479-273-7556 http://www.car-mart.com
AVI Biopharma, Inc. (AVII) Up-date 1 September 2, 2009 Paul A. Ebeling, Jr. Analyst Today let’s look at AVI BioPharma, Inc. (AVII), a developer of biopharmaceutical compounds, from a Technical POV. The overall indications, after Tuesday’s (September 1, 2009) market action, are Bullish: in the near term Bullish, mid-term Neutral, and long term Bullish. The recent Candle Stick analysis is: Very Bullish
**Chart by: http://www.stockta.com
Latest News: China's Vaccine Approval Sends Flu Stocks Soaring http://finance.yahoo.com/news/Chinas-Vaccine-Approval-Sends-indie-2150491809.html?x=0&.v=1 Tuesdayâ€™s Market Action
There is a Bearish Engulfing Candle on August 31, and one Gap open up on September 1, 2009 at 1.75/1.76, the near term resistance is 2.12, support at 1.98, and the 50 day (EMA) exponential moving average is 1.69. This is AVI Biopharma, Inc. (AVII): The Company is a developer of biopharmaceutical compounds, AVI's investigational therapies are based on its NeuGene antisense drug technology which can halt disease processes at the genetic level. BioPharma is developing antisense drugs used in the treatment of a wide range of diseases, including hepatitis C, Dengue Fever, cancer, and genetic diseases. Its lead candidate, Resten-NG, is undergoing clinical testing as a treatment for restenosis, or narrowing of the arteries. Additionally, Cook Group is using the drug to develop drug-eluting stents that prop open clogged arteries.
Competitive Landscape Demand is driven by the health of the US economy because chemicals are used to make a wide variety of industrial and consumer products. The profitability of individual companies is closely tied to efficient operations. Big companies have large economies of scale in production. Small companies can compete effectively by producing specialty products, of which there are a large number, or by operating a single plant highly efficiently. The industry is highly automated: average annual revenue per employee is over US$500,000. Chemicals Industry Forecast The output of US chemicals is forecast to grow at an annual compounded rate of 2% between 2008 and 2013. Data Sourced: December 2008
AVI Biopharma, Inc. (HQ) Leslie Hudson Ph.D.,Chief Exec. Officer, Pres, & Principal Operating Officer 4575 SW Research Way Suite 200 Corvallis, OR 97333 United States Phone: 541-753-3635 http://www.antivirals.com
Citigroup, Inc. (C) Up-date 48 September 2, 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 Tuesdayâ€™s (September 1, 2009) market action, are 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: Smart Money Analysis-Hedge funds bet big on BofA, C, and other banks http://www.reuters.com/article/marketsNews/idINN0151200220090902?rpc=44
Tuesdayâ€™s Market Action Close 4.54 - .46
There are three Gaps open up between March 16 and August 21, 2009 at 1.89/4.58, the near term resistance is 4.56, support 4.37, and the 50 day (EMA) exponential moving average is 3.82. 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
Oracle Corp. (ORCL) Up-date 7 September 2, 2009 Paul A. Ebeling, Jr. Analyst Today letâ€™s look at Oracle Corp. (ORCL), the Giant enterprise software company, from a Technical POV. The overall indications, after Tuesdayâ€™s (September 1, 2009) market action, are Bullish; in the near term Bullish, mid-term Neutral, and long term Bullish. The recent Candle Stick analysis is: Bullish
**Chart by: http://www.stockta.com
Latest News: Oracle/Sun Deal Could Get EC Delay http://www.thestreet.com/_yahoo/story/10593461/1/oraclesun-deal-could-get-ec-delayreport.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
Tuesdayâ€™s Market Action Close 21.94 + .06 Volume34,849,500/shrs There is a Homing Pigeon on August 28, and there are three Gaps open up between Mar 19, and July 15, 2009 at 16.09/20.77, the near term resistance is 22.04, support at 21.44, and the 50 day (EMA) exponential moving average is 21.45. This is Oracle Corp. (ORCL): Oracle is an enterprise software company, engages in the development, manufacture, distribution, servicing, and marketing of database, middleware, and application software
worldwide. The company’s New Software Licenses segment provides licenses for database and middleware software, including database management software, application server software, business intelligence software, identification and access management software, analytics software, content management software, development tools, and data integration software; and applications software that offers enterprise information for customer relationship management, financials, insurance, human resources, maintenance management, manufacturing, marketing, order fulfillment, product lifecycle management, procurement, projects, sales, services, enterprise resource planning, and supply chain planning sectors. It’s Software License Updates and Products Support segment offers customers with rights to unspecified software product upgrades and maintenance releases, and Internet access to technical content, as well as Internet and telephone access to technical support personnel. The company’s Consulting segment designs, implements, deploys, and upgrades database, middleware, and applications software. Its On Demand segment provides multi-featured software and hardware management, and maintenance services for clients deploying its software products; and support centers, assistance, technical account management, configuration and performance analysis, personalized support, annual on-site technical services, and other related services. The company’s Education segment offers online courses and self paced media training on CD-ROMs. It distributes its products and services to resellers, system integrators/implementers, consultants, education providers, Internet service providers, network integrators, and independent software vendors. Competitive Landscape The US 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. Computer Software Development Industry Forecast
The output of US software publishers is forecast to grow at an annual compounded rate of 6 % between 2008 and 2013. Data Sourced: December 2008 Oracle Corp. (HQ) Co-Founder, Chief Exec. Officer: Lawrence J. Ellison 500 Oracle Parkway Redwood Shores, CA 94065 United States Phone: 650-506-7000 Fax: 650-506-7200 http://www.oracle.com
Oracle Subsidiaries Crystal Ball i-flex Solutions Limited Oracle Corporation Canada Inc.
Qualcomm Inc (QCOM) Up-date 2 September 2, 2009 Paul A. Ebeling, Jr. Analyst 10
Today, let’s look at Qualcomm Inc (QCOM), one of US’s oldest and largest manufacturers of digital wireless and services, from a Technical POV. The overall indications, after Tuesday’s (September 1,2009) market action, are 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: Analyst downgrades Qualcomm, sees limited growth http://finance.yahoo.com/news/Analyst-downgrades-Qualcomm-apf-2346711453.html?x=0&.v=1
Tuesday’s Market Action Close
45.35 - 1.07
There is a Bearish Harami on August 27, 2009 and there are no Gaps open up or down on the chart. Near term resistance is 45.78, and near term support is at 44.98. The 50 day exponential moving average is moving up to 45.70.
This is Qualcomm (QCOM): incorporated in 1985, designs, manufactures and markets digital wireless telecommunications products and services based on its code division multiple access (CDMA) technology and other technologies. The Company operates through four segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); Qualcomm Wireless & Internet (QWI), and Qualcomm Strategic Initiatives (QSI). QCT is a developer and supplier of integrated circuits and system software for wireless voice and data communications, multimedia functions and global positioning. QTL grants licenses to use portions of its intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of CDMA products. In December 2007, the Company acquired San SoftMax Inc. In March 2008, the Company acquired Xiam Technologies Limited (Xiam), an Ireland-based provider of wireless content targeting solutions. The Competitive Landscape Telecom market growth is leveraged on capital expenditures from large corporations. The industry has adopted a more cautious approach with regard to over expanding due to improvements forecasting demand in the sector and saturation. However, a bright spot for the industry is that service operators cannot prolong spending on equipment to expand network bandwidth because of the risk of disrupting business operations. Large cash stores in corporate coffers that are typically seen in this industry are used for purchases and acquisitions of smaller competitors. Communications and Equipment Index Performance Year to date, through May 15, the S&P Communications Equipment Index increased 15.3%, versus a 2.1% decrease for the S%P 1500. During 2008, the index declined 40.8%, compared to 38.2% drop for the S&P 1500. Qualcomm Corp (HQ) Chairman & Chief Exec. Paul E Jacob 5775 Morehouse Dr. San Diego, CA 92121 United States Phone: 858-587-1121 Fax: 858-458-9096 http://www.qualcomm.com
Wells Fargo & Company (WFC) Up-date 26 September 2, 2009 Paul A. Ebeling, Jr. Analyst 12
Today let’s look at Wells Fargo & Company (WFC), the Western USA banking Giant, from a Technical POV. The overall indicators, after Tuesday’s (September 1, 2009) market action, are Bullish: in the near term Neutral, mid-term Neutral, and long term Very Bullish. The recent Candle Stick analysis is: Very Bullish.
**Chart by: http://www.stockta.com
Latest News: Bailed-out banks paid execs handsomely in 2008 http://www.reuters.com/article/marketsNews/idINN0149470420090902?rpc=44
Tuesday’s Market Action Close 26.21 0.00
There is a Homing Pigeon on Sept 1, and one Gap open up on Apr 9, 2009 at 15.17/17.42, the near term resistance is 27.02, support at 24.59, and the 50 day (EMA) exponential moving average is 23.57.
This is Wells Fargo & Company (WFC): Wells Fargo & Company, through its subsidiaries, operates as a financial services company in the United States. It operates in three segments: Community Banking, Wholesale Banking, and Wells Fargo Financial. Community Banking segment offers deposit products, including checking accounts, savings deposits, market rate accounts, retirement accounts, time deposits, and debit cards; and loan products comprising lines of credit, equity lines and loans, equipment and transportation loans, education loans, residential mortgage loans, and credit cards. This segment also provides receivables and inventory financing, equipment leases, real estate financing, small business financing, venture capital financing, cash management, payroll services, retirement plans, health savings accounts, merchant payment processing, and securities brokerage. Wholesale Banking segment provides a range of commercial, corporate, and real estate banking products and services, including commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, mezzanine financing, high-yield debt, international trade facilities, foreign exchange services, treasury management, investment management, institutional fixed income sales, interest rate, commodity and equity risk management, online products, insurance, investment banking, and mortgage brokerage services. Wells Fargo Financial segment comprises consumer finance operations that make direct consumer and real estate loans to individuals and purchase sales finance contracts from retail merchants; and auto finance operations, which purchase sales finance contracts directly from auto dealers and make loans secured by autos. This segment also provides credit cards and lease, and other commercial financing services. As of December 31, 2007, the company operated 5,964 branches and 6,900 ATMs. Wells Fargo & Company was founded in 1852 and is headquartered in San Francisco, California.
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 5.1% between 2008 and 2013. Wells Fargo & Company (HQ) Chairman Richard M. Kovacevich 420 Montgomery Street San Francisco, CA 94104 United States Phone: 866-249-3302 Fax: 651-450-4033 http://www.wellsfargo.com
Wells Fargo Subsidiaries Wachovia Corporation Disclaimer
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