The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
August 21, 2009 Alert: RR looks at American Axle & Manufacturing Holdings Inc. (AXL) for the 1st time today. The Financials lead the Charge for the 3rd Straight Session
Re-cap of the US Stock Market Action for August 20, 2009 US Stocks rose for a 3rd straight session on Thursday with financial stocks leading the gainers. The S&P 500 is now up about 50% from its 12 yr closing low set on March 9. The Financial Stocks were the big contributors with Citigroup (C) + 8.5% at US$4.48 after veteran bank analyst Richard Bove said some investors are betting the stock's price will triple in the long term. AIG Inc (AIG) surged 21.3% to US$32.30 after newly appointed Chief Executive Robert Benmosche said the bailed-out insurer may be able to repay its federal debts and boost shareholder value in here . The DJIA gained 70.89 pts, or 0.76%, to close at 9,350.05, the S&P 500 rose 10.91 pts, or 1.09%, to finish the session at 1,007.37, and the NAS tallied up + 19.98 pts, or 1.01%, to end the session at 1,989.22. Initial claims for state unemployment insurance benefits rose 15,000, according to the Labor Department. Economists polled by Reuters had forecast a drop in new claims, this number did not effect the market action. Today, US Federal Reserve Chairman Ben Bernanke will speak in Jackson Hole, Wyoming, on the lessons learned from the financial crisis and efforts to aid the economic recovery Volume and Breadth: Trade was light on the NYSE, with 1.05B/shrs changing hands, below last year's estimated daily average of 1.49B/shrs, and on the NAS about 1.99B/shrs traded, this also below last year's daily average of 2.28B/shrs. Advancers outnumbered decliners on the NYSE by a ratio of 11 to 4, and on the NAS, about 17 stocks rose for every nine that fell. Stocks to Watch Today
American International Group, Inc. (AIG), Apple, Inc (AAPL), American Axle & Manufacturing Holdings Inc. (AXL), Citigroup, Inc. (C), and Google, Inc. (GOOG)
American International Group, Inc. (AIG) Up-date 19 August 21, 2009 Paul A. Ebeling, Jr. Analyst Today letâ€™s look at American International Group, Inc. (AIG), one of the World's largest insurance firms, from a Technical POV. The overall indications, after Thursdayâ€™s (August 20, 2009) market action, are Bullish, in the near term Bullish, mid-term Neutral, and long term Neutral. The recent Candle Stick analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News: Market Insider: Friday Look Ahead http://www.cnbc.com/id/32502381/site/14081545?__source=yahoo|headline|quote|text|&par=yahoo
Thursdayâ€™s Market Action Close 32.30 + 5.66
There is a Hammer on August 14 and no Gaps open up or down of the Chart, the near term resistance is 34.47, support is 32.00, and the 50 day (EMA) exponential moving average is 22.06 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) Chairman of AIG Investments and Chief Exec. of AIG Investments Win Jay Neuger CFA 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
Apple, Inc. (AAPL) Up-date 36 August 21, 2009 Paul A. Ebeling, Jr. Analyst Today letâ€™s look at Apple, Inc (APPL), the creator of the iPhone and other wonderful stuff, from a Technical POV. The overall indications, after Thursdayâ€™s (August 20, 2009) market action, are Bullish; in the near term Neutral, mid-term Very Bullish, and long term Bullish. Recent Candle Stick analysis is Neutral.
**Chart by: http://www.stockta.com
Latest News: US drops price-fixing probe into chipmakers http://www.ft.com/cms/s/0/0675196e-8db7-11de-93df-00144feabdc0.html? referrer_id=yahoofinance&ft_ref=yahoo1&segid=03058
Thursday’s Market Action Close 166.33
There is a Bearish Harami on Aug 14 and nine Gaps open up between Mar 11 and Jul 22, 2009 at 89.17/156.11, the near term resistance is at 177.29, support at 165.41, and the 50 day exponential moving average is 152.53. This is Apple, Inc. (AAPL): Apple, the world’s computer/gadget innovator has caused a revolution in personal computing and digital media distribution. The company's desktop and laptop computers feature its OS X operating system, they include its Mac mini, iMac, and MacBook for the consumer and education markets, and powerful Mac Pro and MacBook Pro for high end consumers and professionals involved in design and publishing. Apple posted a huge success with its iPod digital music players, and iTunes, its online music store. Other Apple products: iPhone mobile phones, Xserve, servers, Airport, wireless networking equipment, plus publishing and multimedia software. Apple’s FileMaker sub provides database software. Apple, Inc. ranks #103 in the Fortune 500 Companies List. The Competitive Landscape Computer product demand is directly 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. The output of US computer manufacturing is forecast to grow at an annual compounded rate of 4.7 % between 2008 and 2013. Apple, Inc. (HQ) Steven P. (Steve) Jobs, CEO and Director 1 Infinite Loop Cupertino, CA 95014 United States http://www.apple.com
Apple Subsidiaries Apple Computer (UK) Limited FileMaker, Inc
American Axle & Manufacturing Holdings Inc. (AXL) August 21, 2009 Paul A. Ebeling, Jr. Analyst Today, letâ€™s look at American Axle & Manufacturing Holdings Inc. (AXL), designer and, manufacture of driveline and drive train systems, from a Technical POV. The overall indications, after Thursdayâ€™s (August 20, 2009) market action, are Bullish: in the near term Neutral, mid-term Very Bullish, and long term Neutral. The recent candlestick analysis is Neutral.
**Chart by: http://www.stockta.com
Latest News: American Axle Shares Up Again http://www.thestreet.com/_yahoo/story/10581380/1/american-axle-shares-up-again-update.html? cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
Thursdayâ€™s Market Action Close 6.61 + .35
There are two Gaps open up between May 6 and Aug 18, 2009 at 1.07/3.02, the near term resistance is NIL, support at 5.31, and the 50 day (EMA) exponential moving average is 2.89. This is American Axle & Manufacturing Holdings Inc. (AXL): The Company engages in the engineering, design, manufacture, and validation of driveline and drive train systems, and related components and chassis modules for automotive industry in the United States. The companys driveline and drive train systems include components that transfer power from the transmission and deliver it to the drive wheels. These products comprise axles, chassis modules, drives hafts, power transfer units, transfer cases, chassis and steering components, driving heads, crankshafts, transmission parts, and metal-formed products. It offers these products for light trucks, sport utility vehicles, passenger cars, crossover vehicles, and commercial vehicles. American Axle & Manufacturing Holdings also involves in differential gear, hypoid pinion, and ring gear forging businesses. The company was founded in 1994 and is headquartered in Detroit, Michigan.
Competitive Landscape Demand for auto parts is driven by new car sales, which are strongly affected by interest rates, and by the replacement market. Company profitability industry depends partly on the difficulty of manufacturing products and partly on demand volume, since many costs are fixed. Small companies can compete successfully by focusing on a small number of products or some highly technical ones. Automobile Parts and Accessories Manufacture Industry Forecast The output of US motor vehicle parts manufacturing is forecast to grow at an annual compounded rate of 4% between 2008 and 2013. Data Sourced: December 2008 American Axle & Manufacturing Holdings Inc. (HQ) Richard E. Dauch , Co-Founder, Chairman, Chief Exec. Officer One Dauch Drive Detroit, MI 48211-1198 United States - Map Phone: 313-758-2000 Fax: 313-974-3090 Web Site: http://www.aam.com
Citigroup, Inc. (C) Up-date 44 August 21, 2009 Paul A. Ebeling, Jr. 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 20, 2009) market action, are Neutral: in the near term Very Bullish mid-term Bullish, and long term Neutral. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News: Citigroup shares gain on asset sale optimism
http://www.reuters.com/article/marketsNews/idINN2052606320090820?rpc=44 Thursdayâ€™s Market Action Close 4.48 + .35 Volume 1,058,493,000/shrs
There are three Gaps open up between Mar 11 and Aug 5, 2009 at 1.45/3.29, the near term resistance is Nil, support 4.38., and the 50 day (EMA) exponential moving average is 3.43. 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 mortgagerelated 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 and Affiliates Grupo Financiero Banamex, S.A. de C.V. Bank Handlowy w Warszawie S.A. Citi Commerce Solutions
Google Inc. (GOOG) Up-date 12 August 21, 2009 Paul A. Ebeling, Jr. Analyst Today, letâ€™s look at Google Inc. (GOOG), the Internet Search Engine leader, from a Technical POV. The overall indications, after Thursdayâ€™s (August 20, 2009) market action, are Bullish: in the near term Bullish, mid-term Bullish, and long term Neutral. The recent Candle stick analysis: Bullish
**Chart by: http://www.stockta.com
Latest News: Internet Search Race - Bing Gains Ground http://seekingalpha.com/article/157476-internet-search-race-bing-gains-ground?source=yahoo
Thursdayâ€™s Market Action Close 460.41 + 16.44
There a Bullish Harami on Aug 18 and four Gaps open up between Mar 23 and August 20, 2009 at 332.99/451.23, the near term resistance is 483.34, support at 445.65, and the 50 day (EMA) exponential moving average is 434.43. This is Google Inc. (GOOG): Google operates the leading Internet search engine, offering targeted search results from billions of Web pages. Results are based on a proprietary algorithm -Google's technology for ranking Web pages is called PageRank. The company generates nearly all of its revenue through ad sales. Advertisers can deliver relevant ads targeted to search queries or Web content. Google also operates the Google Network, a network of third party customers that use Google's advertising programs to deliver relevant ads to their own Web sites. Founders Sergey Brin and Larry Page each have nearly 30% voting control of the company. The Competitive Landscape Demand comes largely from corporations that sell consumer products, and telecommunications, entertainment, and financial services. The profitability of individual companies depends on creative skills and good marketing. Large companies are advantaged in being able to serve the varied needs of large customers, but small companies can be competitive through special talent or lower pricing or through special services. The industry is labor intensive, but the high value of the product produces annual revenue per employee of about US$150,000. Advertising and Marketing Industry Forecast
The output of US advertising services is forecast to grow at an annual compounded rate of 5.5 % between 2008 and 2013. Google Inc. (HQ) Chairman & Chief Exec. Officer Eric E. Schmidt Ph.D.
1600 Amphitheatre Parkway Mountain View, CA 94043 United States Phone: 650-253-0000 Fax: 650-253-0001 http://www.google.com
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