June 1, 2009
Recap of the Month ending May 29 in the US Stock Market The action in May: the S&P 500 posted + 5.3%, the DJIA + 4.1 and the NAS + 3.3%. The three month Spring Rally in the S&P 500 is its longest monthly winning streak since the fall of 2007 + 35.9% off of the 12 year low hit on March 9, 2009. The Bull is Charging into Summer On the Day: May 29, 2009 US stocks rose last Friday, making May the 3rd straight monthly advance, as rising commodity prices boosted shares of natural resource companies, and a sinking US$ boosted multinationals, including Coca-Cola Co (KO.N). The DJIA gained 96.53 pts (1.15%),to close at 8,500.33, the S&P 500 tallied up 12.31 pts (1.36%) to close at 919.14, and the leading NAS Composite posted + 22.54 pts (1.29%) to end the session at 1,774.33. Shares of Coca-Cola, which gets the lion's share of its sales from abroad, jumped almost 5% after the the US$ slid to five-month lows against a basket of currencies. Coke was the DJIA top gainer, followed by technology services company International Business Machines Corp, up 1.5% to close at US$106.28. U.S. front-month Crude Oil futures rose US$1.23 (1.8%) to close at US $66.31bbl, supporting gains in such stocks as Chevron, Exxon Mobil and ConocoPhillips. The sinking US$ lifted commodity prices and sent August Gold futures as high as US$982 oz, the highest since late February. Shares of miner Freeport-McMoran Copper and Gold Inc. were up 4.3% to US$54.43 and the Gold BUGS index .HUI gained 3.3%. Shares of Caterpillar Inc, a maker of bulldozers and excavators, whose customers include mining companies, jumped 2.5% to US$35.46, and on the NAS, shares of software maker Microsoft Corp were a top booster, tacking on 2.2% to close at US$20.89. In the US T-bond market, the benchmark 10-year T-note capped its worst two-month sell-off since 2003 though it recovered some on last Friday. Featured Stocks Today Caterpillar, Inc. (CAT), ConocoPhillips (COP), The Coca Cola Company (KO), DryShips, Inc. (DRYS), Exxon Mobil Corp (XOM), First Capital, Inc. (FCAP), Freeport-McMoRan (FCX), and International Business Machines Corporation (IBM)
Caterpillar, Inc. (CAT) Up-date 11 June 1, 2009 Paul A. Ebeling, Jr. Analyst Letâ€™s have a look at Caterpillar, Inc. (CAT), the World's #1 maker of earthmoving machinery and a leading supplier of agri. equipment, from a Technical POV. The overall analysis after Fridayâ€™s (May 29, 2009) market action is Bullish: in the near term Neutral, mid-term Bullish and long term Bullish.
**Chart by: http://www.stockta.com Latest News: Dow Chemical, Caterpillar, CSX Gain http://online.wsj.com/article/SB124363730380967855.html?ru=yahoo#mod=yahoo_hs
Fridayâ€™s Market Action Close 35.46 + .87
There is a Hammer on May 28 and three Gaps open down between Jan 14 and May 28 at 40.55/34.80, the near term resistance is 37.15, support at 34.49, and the 50 day (EMA) exponential moving average is 34.29. This is Caterpillar, Inc: Caterpillar is the world's #1 maker of earthmoving machinery and a leading supplier of agricultural equipment. It makes construction, mining, and logging machinery; diesel and natural gas engines; industrial gas turbines; and electrical power-generation systems. Caterpillar has plants worldwide and sells its equipment globally via a network of 3,600 locations in 180 countries, offering rental services through more than 1,600 outlets worldwide, and it provides financing and insurance for its dealers and customers. Cat Power Ventures invests in power projects that use Caterpillar power generation equipment, and Caterpillar Logistics Services offers supply chain services Industries Where Caterpillar Competes Construction, Mining & Other Heavy Equipment Manufacturing Agricultural Machinery Manufacturing Financial Services Insurance Transportation Services Caterpillar, Inc. (HQ) Chairman and CEO James W. (Jim) Owens 100 NE Adams St. Peoria, IL 61629 United States Phone: 309-675-1000 Fax: 309-675-1182 http://www.cat.com
Caterpillar Subsidiaries Caterpillar Logistics Services, Inc. Mitsubishi Caterpillar Forklift America Inc. Progress Rail Services Corporation
The Coca Cola Company (KO) Up-date 3 June 1, 2009 Paul A. Ebeling, Jr. Analyst Today let’s look at The Coca Cola Company (KO), the world's #1 soft-drink company, from a Technical POV. The overall analysis after Friday’s (May 29, 2009) market action is Bullish: in the near term Bullish, mid-term Bullish, and long term Bullish.
**Chart by: http://www.stockta.com Latest News: Commodity shares, Coca-Cola lift Wall Street http://www.reuters.com/article/marketsNews/idAFN2943992220090529?rpc=44 Friday’s Market Action Close 49.16
+ 2.26 Volume 22,710,400/shrs
There are no Gaps open up or down on the KO chart, the near term resistance is NIL, support at 47.58, and the 50 day (EMA) exponential moving average is 44.53. This is The Coca Cola Company (KO): Coke is It, "It" being the world's #1 soft-drink company. The Coca-Cola Company owns four of the top five soft-drink brands; Coca-Cola, Diet Coke, Fanta, and Sprite. Its other brands include Barq's, Minute Maid, POWERade, and Dasani water. In North America, it sells Groupe Danone's Evian. Coca-Cola sells brands from Dr Pepper Snapple Group (Crush, Dr Pepper, and Schweppes) outside Australia, Europe, and North America. The firm makes or licenses more than 400 drink products in more than 200 nations. Although it does no bottling itself, Coke owns 35% of Coca-Cola Enterprises, the #1 Coke bottler in the world; 32% of Mexico's bottler Coca-Cola FEMSA; and 23% of European bottler Coca-Cola Hellenic Bottling. 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 4.9 % between 2008 and 2013. The Coca Cola Company (HQ) Muhtar Kent , Chairman, Chief Exec. Officer, President Coca-Cola Plaza Atlanta, GA 30313-2499 United States Phone: 404-676-2121 http://www.coca-cola.com Coca-Cola Subsidiaries and Affiliates Coca-Cola FEMSA, S.A.B. de C.V. Coca-Cola GmbH Coca-Cola North America
ConocoPhillips (COP) Up-date 10
June 1, 2009 Paul A. Ebeling, Jr. Analyst Today, let’s look at ConocoPhillips (COP), the # 3 integrated oil and gas company in the USA, from a Technical POV. The overall analysis after Friday’s (May 29, 2009) market action is Bullish: in the near term Neutral, mid-term Bullish, and long term Neutral.
**Chart by: http://www.stockta.com Latest News: Exxon Looks Best Positioned on Emissions http://online.wsj.com/article/SB124362184069267063.html?ru=yahoo#mod=yahoo_hs Friday’s Market Action Close 45.84
There is a Bullish Engulfing Candle on May 26 and two Gap’s open up between Apr 24 and May 4, 2009 at 40.00/42.70, the near term resistance is 46.84, support at 45.10, and the 50 day (EMA) exponential
moving average is 43.07. This is ConocoPhillips: This integrated oil industry giant was formed by the merger of Conoco and Phillips Petroleum, ConocoPhillips is the #3 integrated oil and gas company in the US, behind Exxon and Chevron, and consolidated that position by buying Burlington Resources for a reported US$35B. The company explores for crude oil and gas in more than 30 countries and has estimated proved reserves of 11.2 billion bbls of crude oil and equivalent, excluding its Syncrude, Canadian oil sands assets. COP has a refining capacity of more than 2.7MM bbls per day and sells gasoline and petroleum products at 8,750 retail outlets in the USA under the 76, Conoco, and Phillips 66 brands. Other operations include chemicals, gas gathering, fuels technology, and power generation. The Competitive Landscape Consumer and commercial driving trends drive demand. The profitability of individual stores depends on competitive pricing, effective merchandising, and the ability to secure high-traffic locations. Large companies have advantages in purchasing and finance. Small companies can compete effectively by acquiring superior locations or offering specialized merchandise or services. Average annual revenue per worker is about US$500,000 for gas station/c-store combinations and US$150,000 for c-stores without gas.
ConocoPhillips (HQ) Chairman and CEO James J. (Jim) Mulva 600 N. Dairy Ashford Rd. Houston, TX 77079 United States Phone: 281-293-1000
http://www.conocophillips.com ConocoPhillips Subsidiaries
CFJ Properties Chevron Phillips Chemical Company LLC ConocoPhillips Alaska, Inc.
DryShips, Inc. (DRYS) Up-date 8 June 1, 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 analysis after Friday’s (May 29, 2009) market action is Neutral; in the near term Very Bullish, mid-term Bullish;, and long term Neutral.
**Chart by: http://www.stockta.com Latest News: Too Many Ships Mean Lower Prices Ahead http://secure2.thestreet.com/cap/login/rm_mbp_yho_w-ads.jsp? cm_ven=YAHOO&cm_cat=PREMIUM&cm_ite=003190&flowid=10f180e87fc&url=http://www.thestreet.co m/p/_yahoo/rmoney/transportation/10507014.html Friday’s Market Action Close 8.19
There are three Gaps open up between Mar 19 and May 29, 2009 at 4.25/7.38, the near term resistance is 8.95, support at 7.38, and the 50 day (EMA) exponential moving average is 6.88.
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
Exxon Mobil Corp. (XOM) Up-date 6 June 1, 2009 Paul A. Ebeling, Jr. Analyst
Today let’s look at Exxon Mobil Corp (XOM), the World's largest integrated oil company, from a Technical POV. The overall analysis after Friday’s (May 29, 2009) market action is Neutral: in the near term Neutral, mid-term Bullish, and long term Neutral.
**Chart by: http://www.stockta.com Latest News: Crude Oil Surges to Cap Decade's Best Month http://www.thestreet.com/_yahoo/story/10507340/1/oil-surges-to-cap-decades-best-month.html? cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA Friday’s Market Action Close 69.39
There are four Gaps open down between Dec 18, 2008 and May 21, 2009 at 81.06/68.98, the near term resistance is 70.22, support at 69.02, and the 50 day (EMA) exponential moving average is 69.15. This is Exxon Mobil Corp (XOM): the Company engages in the exploration, production, transportation, and sale of crude oil and natural gas. It also engages in the manufacture of petroleum products, and
transportation and sale of crude oil, natural gas, and petroleum products. The company manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and other specialty products. Exxon Mobil also has interests in electric power generation facilities. As of December 31, 2007, it had 7744 millions of barrels of liquid proved reserves, and 32,610 billions of cubic feet of proved reserves of natural gas. Exxon Mobil also operated 16,797 gross wells. The company operates in the United States, Canada, Europe, Africa, Asia-Pacific, the Middle East, Russia/Caspian region, and South America. Exxon Mobil was founded in 1870. The company was formerly known as Exxon Corporation and changed its name to Exxon Mobil Corporation in 199 Competitive Landscape Demand depends on the overall strength of the US economy, because most industrial chemicals are used in the manufacture of more-complicated products like fibers, plastics, paints, and paper. The profitability of individual companies is closely linked to efficient operations, because most products are commodities. Big producers have large economies of scale in production, which is why some chemicals are made by just a handful of companies. Small companies can compete effectively by making specialized or highlypurified products. The industry is highly automated: average annual revenue per employee is over US$600,000. Exxon Mobil Corp (HQ) Chairman, Chief Exec. Officer & President: Rex W. Tillerson 5959 Las Colinas Boulevard Irving, TX 75039-2298 United States Phone: 972-444-1000 Fax: 972-444-1348 http://www.exxonmobil.com
Exxon Subsidiaries Aera Energy LLC Esso Petroleum Company, Limited ExxonMobil Chemical Company
First Capital Inc. (FCAP) June 1, 2009 Paul A. Ebeling, Jr. Analyst
Dear Reader, Let’s have a look at First Capital, Inc. (FCAP), the holding company for First Harrison Bank, from a Technical POV. The overall analysis after Friday’s (May 29, 2009) market action is Bullish: in the near term Bullish, mid-term Very Bullish, and long term Bullish.
**Chart by: http://www.stockta.com Latest News: First Capital, Inc. Announces Quarterly Dividend http://finance.yahoo.com/news/First-Capital-Inc-Announces-pz-15344950.html Friday’s Market Action Close 17.98
There is a Bullish Kicking Candle on May 29 and one Gaps open up on Mar 24, 2009 at 13.00/14.00, the near term resistance is NIL, support at 17.65, and the 50 day (EMA) exponential moving average is 14.67.
This is First Capital, Inc. (FCAP): The Company operates as the holding company for First Harrison Bank that provides various banking services to individuals and business customers in southern Indiana. It accepts a range of deposit products, including non-interest bearing checking accounts, negotiable order of withdrawal accounts, money market accounts, regular savings accounts, certificates of deposit, and retirement savings plans. The companyâ€™s loan portfolio comprises residential and land mortgage loans, residential and commercial real estate construction loans, commercial real estate loans, commercial business loans, and secured or guaranteed consumer loans, including automobile and truck loans, home equity loans, home improvement loans, boat loans, mobile home loans, and loans secured by savings deposits, as well as unsecured loans. First Capital also offers online banking services and investment products. As of April 24, 2009, it had 12 offices in Corydon, Edwardsville, Greenville, Floyds Knobs, Hardinsburg, Palmyra, New Albany, New Salisbury, Jeffersonville, and Salem communities of Indiana. The company was founded in 1891 and is based in Corydon, Indiana . First Capital Inc. (HQ) William W. Harrod, Chief Exec. Officer, Pres, Director 220 Federal Drive NW Corydon, IN 47112 United States Phone: 812-738-2198 Fax: 812-738-2202 http://www.firstharrison.com
Freeport-McMoRan Copper & Gold Inc. (FCX) Up-date 14 June 1, 2009 Paul A. Ebeling, Jr. Analyst Dear Reader, Letâ€™s have a look at Freeport-McMoRan (FCX), the giant Gold and Copper miner, from a Technical POV.
The overall analysis after Fridayâ€™s (May 29, 2009) market action is Bullish: in the near term Bullish, midterm Bullish, and long term Neutral.
**Chart by: http://www.stockta.com Latest News: US STOCKS-Commodity shares, Coca-Cola lift Wall Street http://www.reuters.com/article/marketsNews/idAFN2943992220090529?rpc=44 Fridayâ€™s Market Action
There is a Hammer on May 29 and three Gaps open up between Dec 8, 2008 and Mar 4, 2009 at 17.16/30.47, the near term resistance is 54.66, support at 52.65, and the 50 day (EMA) exponential moving average is 44.32. This is Freeport-McMoRan (FCX): Freeport-McMoRan Copper & Gold, Inc. engages in the exploration, mining, and production of mineral properties primarily in Indonesia, North America, South America, and Africa. It focuses on the copper, gold, molybdenum, and silver prospects. The company holds interests in
the Grasberg open pit and Deep Ore Zone projects in Indonesia. It also owns interests in the Grasberg, Kucing Liar, Mill Level Zone/Deep Mill Level Zone, and Big Gossan projects in Indonesia. In addition, the company holds interests in the Morenci project in Greenlee County, Arizona; the Safford project in Graham County, Arizona; the Bagdad project in Yavapai County in west-central, Arizona; the Sierrita project in Pima County, Arizona; the Miami project in Gila County, Arizona; the Chino and Tyrone project in southwestern New Mexico in Grant County; the Henderson project located approximately 42 miles west of Denver, Colorado; and the Climax molybdenum mine in Colorado, which are located in North America. Further, it owns interests in the Cerro Verde project located 20 miles southwest of Arequipa, Peru; the Candelaria project situated approximately 12 miles south of Copiapo in northern Chiles Atacama province; the Ojos del Salado project located approximately 10 miles east of Copiapo in northern Chiles Atacama province; the El Abra project situated 47 miles north of Calama in Chiles El Loa province, which are located in South America. Additionally, the company holds interests in the Tenke Fungurume project in the Democratic Republic of Congo; and the Atlantic Copper project in Huelva, Spain. At December 31, 2007, it had total consolidated recoverable proven and probable reserves of approximately 93.2 billion pounds of copper; 41.0 million ounces of Gold; 2.0 billion pounds of molybdenum; 230.9 million ounces of silver; and 0.6 billion pounds of cobalt The Competitive Landscape Demand is driven by industrial demand and economic growth, both domestic and foreign. Individual company profitability depends on volume and operating efficiency. Large companies can afford to discover and develop new deposits and increase reserves. Small companies typically own just one mine, limit exploration to that one property, and operate it as efficiently as possible. Metal ore mining is highly automated: annual revenue per employee is about US$300,000. Metal Ore Mining Industry Forecast The output of US metal mining is forecast to grow at an annual compounded rate of 5.4 % between 2008 and 2013. Freeport-McMoRan (HQ) Chief Exec. Officer, Pres Richard C. Adkerson One North Central Avenue Phoenix, AZ 85004-4414 United States Phone: 602-366-8100 http://www.fcx.com
Freeport-McMoRan Subsidiaries Atlantic Copper, S.A. Chino Mines Company Climax Molybdenum Company
International Business Machines Corporation (IBM) Up-date 9 June 1, 2009 Paul A. Ebeling, Jr. Analyst Today let’s look at “Big Blue”, International Business Machines Corporation (IBM), the World’s #1 provider of computer products and computer services, from a Technical POV. The overall analysis after Friday’s (May 29, 2009) market action is Bullish: in the near term Neutral, mid-term Very Bullish, and long term Bullish.
**Chart by: http://www.stockta.com Latest News: IBM: In the Black and Positioned for Growth http://seekingalpha.com/article/140370-ibm-in-the-black-and-positioned-for-growth?source=yahoo Friday’s Market Action Close 106.28
There is a Bearish Harami on May 27 and two Gaps open up between Mar 31 and Apr 16, 2009 at 94.74/99.18, the near term resistance is 107.91, support at 105.68, and the 50 day (EMA) exponential moving average is 100.68. This is IBM (IBM): “Big Blue” is the world's top provider of computer products and services. IBM is a leader in every market in which it competes, the company makes mainframes and servers, storage systems, and peripherals. Though perhaps still best known for its hardware, IBM's growing services business now accounts for more than half of its sales. Its IT services arm is the largest in the world and the company is also one of the largest providers of both software, ranking #2, behind Microsoft, and semiconductors.
The 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 in the industry depends on maintaining technical expertise and on good marketing. Small companies can compete effectively by specializing in market niches or by partnering with larger companies that want to offer a broad array of services. Only the large companies can provide outsourcing services to big corporate customers. Average annual revenue per employee is close to US$200,000. Information Technology Industry Forecast The output of US computer and data processing is forecast to grow at an annual compounded rate of 6.1% between 2008 and 2013. IBM (HQ) Chairman, President, and CEO Samuel J. Palmisano New Orchard Rd. Armonk, NY 10504 United States Phone: 914-499-1900 Toll Free: 800-426-4968 http://www.ibm.com
IBM Subsidiaries Cognos ULC IBM Australia Limited IBM Canada Ltd. Disclaimer DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE OR IN ONE OF OUR NEWSLETTERS. We are not registered as a securities broker-dealer or an investment advisor either within the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice.
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