The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
August 28, 2009
Up-Date: Stock market reverses early losses and closes in the Green, the DJIA rose 8 days in a row.
Re-cap of the US Stock Market Action for August 27, 2009 Major US Stock indexes overcame early losses and finished in the Green, the DJIA added 37 pts to set a new Y 2009 high in an eight straight day winning streak, its longest since April 2007. Savvy market observers are saying that the market is running on its own momentum more than anything else, adding that a most of the improving economic data has already been priced into stocks. Traders have been banking on a pullback for the past 4 month only to be met with more buying on the dips, the result of the huge amount of money still on the sidelines. After giving up 84 pts early on the day, the DJIA rose 37.11, or 0.4%, to close at 9,580.63. The DJIA's 8 day advance totals 445 pts, or a whopping 4.9%. The S&P 500 rose 2.86, or 0.3%, to close at 1,030.98, and the NAS tallied up a + 3.30, or 0.2%, to end the session at 2,027.73. Both the S&P 500 and the NAS have finished in the Green seven out of the past eight days, rising about 5 percent over that period. Volume and Breadth: Trade has been light in the extreme as many traders are vacationing. About eight stocks rose for every seven that fell on the New York Stock Exchange, where consolidated volume came to 5.82B/shrs, compared with 5.10B/shrs Wednesday. Stocks to Watch Today
American International Group, Inc. (AIG), Citigroup, Inc.(C), Dell Inc. (DELL), and DryShips, Inc. (DRYS).
American International Group, Inc. (AIG) Up-date 20 August 27, 2009 Paul A. Ebeling, Jnr. Analyst Today let’s look at American International Group, Inc. (AIG), one of the World's largest insurance firms, from a Technical POV. The overall indications, after Thursday’s (August 26, 2009) market action, are Bullish, in the near term Very Bullish, mid-term Very Bullish, and long term Neutral. The recent Candle Stick analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News: Benmosche in No Hurry to Sell Off AIG's Assets http://online.wsj.com/article/SB125141103149364939.html?ru=yahoo&mod=yahoo_hs
Thursdayâ€™s Market Action Close 47.84 + 10.15 Volume 148,914,200/shrs There is one Gap open up on August 27, 2009 at 38.05/39.25, the near term resistance is NIL, support is 42.40, and the 50 day (EMA) exponential moving average is 24.85 This is American International Group, Inc. (AIG): the Company through its subsidiaries provides insurance and financial services in the United States and internationally. It operates in four segments: General Insurance, Life Insurance and Retirement Services, Financial Services, and Asset Management. The General Insurance segment underwrites various business insurance products, including large commercial or industrial property insurance, excess liability, inland marine, environmental, workers compensation, and excess and umbrella coverageâ€™s. This segment also offers various specialized forms of insurance, such as aviation, accident and health, equipment breakdown, directors and officers liability, difference-in-conditions, kidnap-ransom, export credit and political risk, and professional errors and omissions coverageâ€™s. In addition, it provides property and casualty reinsurance products to insurers; automobile insurance products; residential mortgage guaranty insurance products; and second-lien and private student loan guaranty insurance products. The Life Insurance and Retirement Services segment offers individual and group life, payout annuities, endowment, and accident and health policies, as well as retirement savings products consisting of fixed and variable annuities. The Financial Services segment provides aircraft and equipment leasing, capital market transactions, consumer finance, and insurance premium financing. The Asset Management segment operations comprise investment-related services and investment products, including institutional and retail asset management, broker-dealer services, and spread-based investment products. The company was founded in 1967 and is based in New York, New York. 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. Insurance Carriers Industry Forecast The output of US insurance, which is an indicator for insurance carriers, is forecast to grow at an annual compounded rate of 1 % between 2008 and 2013. Data Sourced: December 2008
American International Group, Inc. (HQ) Robert H. Benmosche Chief Exec. Officer, Pres 70 Pine Street New York, NY 10270 United States Phone: 212-770-3099 Fax: 212-425-3499 http://www.aig.com
AIG Subsidiaries and Affiliates
21st Century Insurance Company AIG American General Life Companies AIG Annuity Insurance Company
Citigroup, Inc. (C) Up-date 46 August 28, 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 Thursdayâ€™s (August 27, 2009) market action, are Bullish: in the near term Bullish , mid-term Very Bullish, and long term Neutral. The Recent Candle Stick Analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News: What's Citigroup Really Worth? http://seekingalpha.com/article/158774-what-s-citigroup-really-worth?source=yahoo
Thursdayâ€™s Market Action Close 5.05 + .42
There are four Gaps open up between March 11 and August 21, 2009 at 1.45/4.58, the near term resistance is NIL, support 4.87., 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
Dell Inc. (DELL) Up-date 7 August 28, 2009 Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at Dell Inc. (DELL), one of the world's top suppliers of personal computers, from a Technical POV. The overall indications, after Thursdayâ€™s (August 27, 2009) market action, are Bullish: in the near term Bullish, mid-term Bullish, and long term Very Bullish. The recent Candlestick Analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News: China, India drive Dell's rev growth in 2010 http://www.reuters.com/article/marketsNews/idINTP29216620090828?rpc=44
Thursdayâ€™s Market Action Close 15.65
There is Bullish Engulfing Candle on August 26 one Gap open up on Mar 11, 2009 at 8.76/8.77, the near term resistance is NIL, and support at 15.14, and the 50 day (EMA) exponential moving average is 13.34. This is Dell Inc. (DELL): The Company engages in the design, development, manufacture, marketing, sale, and support of computer systems and services worldwide. It offers desktop PCs and workstations; notebook computers; servers and networking products; and storage solutions, including storage area networks, network-attached storage, direct-attached storage, disk and tape backup systems, and removable disk backup. The company also offers third party software products, which comprise operating systems, business and office applications, anti-virus and related security software, and entertainment software; peripheral products, including software titles, printers, televisions, notebook accessories, networking and wireless products, digital cameras, power adapters, scanners, and other products; and displays, including flat panel monitors and projectors. In addition, it provides infrastructure consulting services, deployment services, asset recovery and recycling services, training services, support services, and managed services. Further, the company provides a range of financial services, including originating, collecting, and servicing customer receivables related to the purchase of Dell products; and financing alternatives, asset management services, and other customer financial services for business and consumer customers. Its customers comprise large corporate, government, healthcare, and education accounts, as well as small and medium businesses, and individual consumers. The company sells its products and services directly to customers through sales representatives, telephone-based sales, and online at www.dell.com, as well as through various indirect sales channels 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 capital-intensive and highly automated: annual revenue per employee is about US$500,000. 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. Dell Inc. (HQ) Founder, Chairman and Chief Exec. Officer Michael S. Dell One Dell Way Round Rock, TX 78682 United States Phone: 512-338-4400 Fax: 512-728-3653 http://www.dell.com
Dell Subsidiaries Alienware Corporation ASAP Software, Inc. Dell Canada Inc
DryShips, Inc. (DRYS) Up-date 11 August 28,2009 Paul A. Ebeling, Jnr. Analyst Today, let’s have a look at DryShips, Inc. (DRYS), the international bulk sea carrier, from a Technical POV. The overall indications, after Thursday’s (August 27, 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: Dry Bulk Stocks Float Higher on COSCO News http://finance.yahoo.com/news/Dry-Bulk-Stocks-Float-Higher-indie-3791100253.html?x=0&.v=1
Thursday’s Market Action Close 6.24
There is a Bullish Engulfing Candle on August 28, and one Gaps open up on Mar 19, 2009 at 4.25/4.92, the near term resistance is 7.13, support at 6.15, and the 50 day (EMA) exponential moving average is 6.21. 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
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