The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
August 31, 2009
Date Line: Lugano, CH
All three major US indexes posted their 2nd weekly advance. On the week, the DJIA + 0.4%, the S&P 500 + 0.3% and the NAS + 0.4%; modest but in the GREEN.
Re-cap of the US Stock Market Action for the week ending 31 August 2009 Early in Friday's session the S&P 500 rose to 1,039.47, its highest intra-day level since October 14, 2008, before fading a bit on profit taking as US stocks held close to the line on Friday after the consumer sentiment report offset good news from tech stalwarts: Dell Inc and Intel Corp. as the leading NAS closed once again in the GREEN. The DJIA closed minus 36.43 pts, or 0.38%, at 9,544.20, the S&P 500 slid 2.05 pts, or 0.20%, to close at 1,028.93, but the NAS tallied a + 1.04 pts, or 0.05%, to end the session at 2,028.77. Consumer sentiment in August was reported at a 4 month low on worries about high unemployment and personal finances by a Reuters/University of Michigan. Intel led the NAS' major gainers rising 4% to US$20.25 after the chip maker raised its Q-3 Y 2009 revenue outlook on strong demand for its microprocessors and chip sets. (See Stock Talk below). Dell tracked North by 1.8% to US$15.93 after reporting Q-3 Y 2009 earnings late Thursday that beat expectations. Tiffany & Co charged North 11.3% to US$37.57 on the NYSE after it reported strong Q-2 Y 2009 results and lifted its outlook (See Stock Talk Below). Citigroup rose 3.6% to US$5.23 leading the S&P financial index up 0.2%. In the Headlights: Shares of the two largest US home funding companies, Fannie Mae and Freddie Mac, gained sharply, extending a trend seen earlier this past week: Freddie Mac was up 7.1% at US$2.40 and Fannie Mae gained 6.3% to US$2.04. Volume and Breath: Trade was light on the NYSE, with 1.19b/shrs changing hands, below last year's estimated daily average of 1.49B/shrs, and on the NAS, about 2.36b/shrs traded, a bit above last year's daily average of 2.28B/shrs. Advancers outnumbered decliners on the NYSE by 1,507 to 1,490, and on the NAS, though, the opposite: about 17 stocks fell for every 9 that rose. Stocks to Watch Today Echelon Corp (ELON), Intel Corporation (INTC), ING Groep NV (ISP), Marvell Technology Group (MVRL), and Tiffany & Co. (TIF).
Echelon Corp (ELON) August 31, 2009 Paul A. Ebeling, Jr. Analyst Today, let’s look at Echelon Corp (ELON), the linker of automated equipment, from a Technical POV. The overall indications, after Friday’s (August 28, 2009) market action, are Bullish: in the near term Bullish, mid-term Very Bullish, and long term Bullish. The recent candlestick analysis is Neutral.
**Chart by: http://www.stockta.com
Latest News: Echelon and Stewardship Financial lead small-cap percentage gainers http://finance.yahoo.com/news/Trubion-Pharmaceuticals-smallcapinvestor-3333753912.html?x=0&.v
Friday’s Market Action Close 12.25 + 2.15
There are three Gaps open up between July 15 and Aug 28, 2009 at 7.50/10.40, the near term resistance is NIL, support at 11.45, and the 50 day (EMA) exponential moving average is 9.11. This is Echelon Corp (ELON): The Company designs hardware and software that link and automate industrial equipment, building environments, and devices ranging from light switches to conveyor belts. Its open-source operating system, LonWorks Network Services, lets equipment interact through local networks and the Internet. Echelon's hardware, transceivers, routers, network interfaces, can sense, monitor, and control such equipment as automatic doors, security systems, and railcars. Echelon also provides an automated electricity metering system called Networked Energy Services (NES).
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
Echelon Corporation (HQ) M. Kenneth Oshman Chairman, Chief Exec. Officer 550 Meridian Avenue San Jose, CA 95126 United States - Map Phone: 408-938-5200 Fax: 408-790-3800 Web Site: http://www.echelon.com
Intel Corporation (INTC) Up-date 9 August 31, 2009 Paul A. Ebeling, Jr. Analyst Today let’s look Intel Corporation (INTC), the World’s #1 manufacturer of semiconductors, from a Technical POV. The overall analysis after Friday’s (August 28, 2009) market action is Bullish Very Bullish: in the near term Bullish, mid-term Bullish, and long term Very Bullish. The recent Candle Stick analysis is: Very Bearish
**Chart by: http://www.stockta.com
Latest News: Intel raises Q-3 Y 2009 revenue forecast to US$9B http://albany.bizjournals.com/albany/stories/2009/08/24/daily62.html?ana=yfcpc
Friday’s Market Action Close 20.25
There is a DOJI on August 28, and no Gaps open up on July 15 and Aug 28, 2009 at 16.89/20.17, the near term resistance is 20.73, support at 19.52, and the 50 day (EMA) exponential moving average is 18.22. This is Intel Corporation (INTC): Intel is #1 in semiconductors. The company holds the lion’s share in the market for microprocessors that go into desktop and notebook computers, and also into computer servers. For a time rival AMD took some of Intel’s market share, but Intel fought back with faster processors and advanced manufacturing technology and ate AMD. Intel makes embedded semiconductors for the industrial equipment and networking gear markets. Most computer makers use Intel processors; PC giants Dell (18% of sales) and Hewlett-Packard (17%) are the company’s largest customers. The Asia/Pacific region generates more than half of Intel’s revenues.
Competitive Landscape The industry depends highly on demand from the computer industry and makers of telecommunications products, which can vary sharply from year to year. Companies can be successful producing standard parts at low cost or by producing highly specialized components. Small companies can compete effectively with large ones by producing specialized products or developing new applications. Technological expertise is extremely important. The industry is highly automated: average annual revenue per employee is about US$250,000.
Intel Corporation (HQ) Chairman Craig R. Barrett 2200 Mission College Blvd. Santa Clara, CA 95054-1549 United States Phone: 408-765-8080 Fax: 408-765-3804 Toll Free: 800-628-8686
http://www.intel.com Intel Corp. Subsidiaries Havok.com Inc. IM Flash Technologies, LLC Intel (China) Ltd.
ING Group NV (ISP) August 31, 2009 Paul A. Ebeling, Jr. Analyst Today, letâ€™s look at ING Group NV (ISP), the Dutch hybrid of banking, insuring, and assetmanaging services, from a Technical POV. The overall indications, after Fridayâ€™s (August 28, 2009) market action, are Bearish, in the near term Neutral, mid-term Neural, and long term Bearish. The recent candlestick analysis is Neutral
**Chart by: http://www.stockta.com
Latest News: N/A
Fridayâ€™s Market Action Close 13.16 + 1.16
There is a Bearish Engulfing Candle on August 25, and five Gaps open up between April 2 and May 4, 2009 at 8.31/10.94, the near term resistance is 13.85, support at 13.85, and the 50 day (EMA) exponential moving average is 15.18. This is ING Group NV (ISP): This is a Dutch hybrid of banking, insuring, and asset-managing services. One of the world's largest insurance and financial services companies, its operations are focused on its home Benelux market, as well as the rest of Europe, Asia/Pacific, and North America. Key products include life and non-life insurance, pensions, and retirement services. Its banking operations include wholesale and retail banking and mortgage lending. The company's ING Direct business offers online retail banking for individuals in nine countries in North America, Europe, and the Pacific. ING provides asset management for individuals and institutional investors through both its insurance and banking businesses.
Competitive Landscape Demand is driven by demographics and commercial transactions. Demand is also driven by legal or financial requirements. Consumers are usually required by states to buy auto insurance and by lenders to buy homeowners insurance, for example. 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, as well as advertising and marketing. Small companies can compete successfully by specializing in particular products or industries. Average annual revenue per worker is around US$400,000, so the industry is not labor-intensive. 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
ING Locations (HQ) Chairman Executive Board and CEO: Jan H. M. Hommen ING House, Amstelveenseweg 500 1081 KL Amsterdam, The Netherlands Phone: +31-20-541-5411 Fax: +31-20-541-5497 http://www.ing.com ING Subsidiaries ING Bank, fsb ING Belgium SA/NV ING Clarion Partners, LLC
Marvell Technology Group Ltd. (MRVL) Up-date 1 August 31, 2009 Paul A. Ebeling, Jr. Analyst Today, letâ€™s look at Marvell Technology Group (MVRL), the maker of digital and mixed-signal integrated circuits for data storage and broadband communications applications, from a Technical POV. The overall indications, after Fridayâ€™s (August 28, 2009) market action, are Very Bullish: in the near term Bullish, in the mid-term Very Bullish, and in the long term Very Bullish. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News: NAS post another gain as Dell, Marvell, Intel rise
http://www.marketwatch.com/story/techs-jump-on-news-from-dell-marvell-intel-2009-08-28? siteid=yhoof Fridayâ€™s Market Action Close
15.36 + .73
There is a Bearish Engulfing Candle on August 24, and two Gaps open up between July 15 and August 28, 2009 at 12.34/15.91, the near term resistance is NIL, support at 15.19, and the 50 day (EMA) exponential moving average is 13.22. This is Marvell Technology Group (MVRL): The Company offers digital and mixed-signal integrated circuits for data storage and broadband communications applications. Products include read channels (which convert analog data from a magnetic disk into digital data for computing), preamplifiers, and Ethernet switch controllers and transceivers. The fabless semiconductor company draws most of its sales from a few customers, including Western Digital (21% of sales), Toshiba, and Samsung Electronics. Marvell gets more than 80% of sales from the Asia/Pacific region.
Competitive Landscape The industry depends highly on demand from the computer industry and makers of telecommunications products such as cell phones, which can vary sharply from year to year. Companies can be successful producing standard parts at low cost or by producing highly specialized components. Small companies can compete effectively with large ones by producing specialized products or developing new applications. Technological expertise is extremely important. The industry is highly automated: average annual revenue per employee is about US$300,000. Electronic Components & Semiconductor Manufacture Industry Forecast The value of US electronic components manufacturing output is forecast to grow at an annual compounded rate of 4% between 2008 and 2013. Data Sourced: December 2008
Marvell Technology Group Ltd. (HQ) Sehat Sutardja Ph.D., Co-Founder, Exec. Chairman, Chief Exec. Officer & President Canon's Court 22 Victoria Street Hamilton, HM 12 Bermuda Phone: 441-296-6395 Fax: 408-328-0120
Tiffany & Company (TIF) August 31, 2009 Paul A. Ebeling, Jr. Analyst Today, letâ€™s look at Tiffany & Company (TIF), the specialty is fine jeweler, from a Technical POV. The overall indications, after Fridayâ€™s (August 28, 2009) market action, are Bullish: in the near term Bullish, mid-term Bullish, and long term Very Bullish. The recent candlestick analysis is Bearish
**Chart by: http://www.stockta.com
Latest News: Tiffany Rallies 11%; Dell, Intel Advance
Friday’s Market Action Close 37.57 + 3.82
There is a DOJI on August 26 and four Gaps open up between April 9 and August 28, 2009 at 22.49/35.50 , the near term resistance is NIL, support at 35.50, and the 50 day (EMA) exponential moving average is 29.73. This is Tiffany & Co. (TIF): Tiffany & Company is a bountiful buffet, complete with the finest crystal and flatware, as well as more ubiquitous fare. Its specialty is fine jewelry, but the company also puts its name on timepieces, silverware, china, stationery, and other luxury items. Many products are packaged in the company's trademarked Tiffany Blue Box. To entice budget-minded Buffys to do more than window shop, Tiffany has broadened its merchandise mix to include key chains and other items that sell for much less than the typical Tiffany price tag. The firm sells its goods exclusively through more than 180 Tiffany & Co. stores and boutiques worldwide, its Web site, business-to-business accounts, and catalogs.
Competitive Landscape Jewelry sales depend partly on consumer income. Small jewelers can effectively compete with large chains because price isn't the main factor determining sales. Profitability depends on merchandising and effective marketing. Jewelry Retail Industry Forecast US personal consumption expenditures for jewelry and watches are forecast to grow at an annual compounded rate of 2% between 2008 and 2013. Data Sourced: December 2008 Tiffany & Company (HQ) Michael J. Kowalski, Chairman and CEO 727 5th Ave. New York, NY 10022 United States (Map) Phone: 212-755-8000 Fax: 212-605-4465 Toll Free: 800-843-3269 http://www.tiffany.com
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