The Red Roadmaster’s US Market Re-cap + Stock Talk ™
Alert: The Red Roadmaster Looks at LM Ericsson (ERIC) for the 1st time. The NAS rose yesterday for the 11th day running for the longest winning streak since September 1996
Re-cap of the US Stock Market Action for July 23, 2009 + Stock Talk The DJIA ran for seven straight day, and paused on Wednesday ending just in the Red, as the S&P 500 ended the session flat on light volume. The DJIA lost 34.68 pts, or 0.39%, to close at 8,881.26, the S&P 500 ended the day minus a half a pt, or 0.05%, at 954.07, the leading NAS tallied up +10.18 pts, or 0.53% to end the session at 1,926.38, and the Russell 2000 rose 3.48, or 0.7% on the day 528.70. US Crude Oil futures settled at off 21c at US$65.40bbl, or 0.3%, on the New York Mercantile Exchange. Federal Reserve Chairman Ben Bernanke reiterated in testimony to the Senate Banking Committee on Wednesday that the US economic outlook is improving. The yield on the 10 yr US T-note ticked down to 3.54% down from 3.55% late Wednesday. The US$ was mixed, Gold prices rose. Breath and Volume: Advancing stocks lead decliners by 4-to-3 on the NYSE where volume came to 4.7B/shrs compared with 5.2B/shrs on Tuesday. Overseas markets: Britain's FTSE 100 rose 0.3%, Germany's DAX index gained 0.5%, France's CAC-40 added 0.1%, and Japan's Nikkei average rose 0.7%. Stocks to Watch Today Amazon.com, Inc. (AMZN), American Express Company (AXP), Telefonaktiebolaget LM Ericsson (ERIC), McDonald’s Corporation (MCD), The 3M Company (MMM), and Microsoft Corporation (MSFT).
Amazon.com, Inc. (AMZN) Up-date 10 July 23, 2009 Paul A. Ebeling, Jr. Analyst Today let’s look at Amazon.com, Inc. (AMZN), the premier online (AKA World’s Biggest) marketer/seller, from a Technical POV. The overall indications, after Wednesday’s (July 22, 2009) market action, are Neutral: in the near term Neutral, mid-term Bullish, and long term Neutral. The Recent Candle Stick analysis is Very Bearish.
**Chart by: http://www.stockta.com
Latest News: Amazon Opens Wallet, Buys Zappos
http://online.wsj.com/article/SB124829443610573361.html?ru=yahoo#mod=yahoo_hs Wednesday’s Market Action Close 88.79
There is a DOJI on July 22, are two Gaps open up between Mar 31 and July 15, 2009 at 71.67/82.78, the near term resistance is 92.83, support is 87.30, and the 50 day (EMA) exponential moving average is 81.29. This is Amazon.com, Inc.(AMZN); Not too long ago, remember?, Jeff Bezos, Amazon.com’s founder/24% owner, opened the World’s biggest book store, since then Amazon.com has become the world’s biggest sell everything and all store, as the expansion pushed Amazon.com in multiple directions. The main web site www.amazon.com offers millions of books, music, DVDs, and videos, which account 60% + of company sales. Amazon.com also sells auto parts, toys, tools, electronics, home furnishings, apparel, health and beauty aids, prescription drugs, groceries, and lots of services like film processing, etc.. Amazon.com has been the model for Internet companies that put market share ahead of profits, and those huge profits led to acquisitions funded by rocketing market capitalization, begetting a model that is now focused on profits. AMZN is ranked #171 in FORTUNE 500 & #301 in FT Global 500. The Competition Amazon.com’s competitors are primarily in the Music, Video, Book & Entertainment Retail industry. Amazon.com also competes in the Apparel & Accessories Retail, Auto Parts Retail, and Camera & Optical Goods Retail sectors. Examples: Barns & Noble, Borders, Columbia House and eBay.
Amazon.com (HQ) Chairman, President, and CEO Jeffrey P. (Jeff) Bezos SVP and CFO Thomas J. (Tom) Szkutak 1200 12th Ave. South, Ste. 1200 Seattle, WA 98144-2734 United States (Map) Phone: 206-266-1000 http://www.amazon.com
Amazon.com Subsidiaries Amazon.co.uk Ltd Amazon.de GmbH Audible, Inc
American Express Company (AXP) Up-date 6 July 23, 2009 Paul A. Ebeling, Jr. Analyst Today let’s look at American Express Company (AXP), one of the World’s largest travel agencies, from a Technical POV. The overall indications, after Wednesday’s (July 21, 2009) market action, are Bullish: in the near term Bullish, mid-term Bullish, and long term Bullish. The recent Candle Stick analysis is Neutral.
**Chart by: http://www.stockta.com
Latest News: AmEx Investors Look for Flashing Plastic http://online.wsj.com/article/SB124830136254773619.html?ru=yahoo#mod=yahoo_hs
Wednesdayâ€™s Market Action Close 28.76 - .62
There is a Bearish Harami on July 17, and four Gaps open up between Apr 9 and July 15, 2009 at 16.08/24.81 and the near term resistance is 31.33, support at 28.38, and the 50 day (EMA) exponential moving average is 24.45. This is American Express Company (AXP): The Company is one of the world's largest travel agencies, but it is better known for its charge cards and revolving credit cards. And yes, the company still issues traveler's checks and publishes such magazines as Food & Wine and Travel & Leisure through its American Express Publishing unit. Its travel agency operations have more than 2,200 locations worldwide and its Travelers Cheque Group is the world's largest issuer of traveler's checks (it also issues gift cards). But the company's charge and credit cards are its bread and butter; American Express has more than 92 million cards in circulation worldwide. Competitive Landscape Demand is driven by consumer income and demographics. The profitability of individual companies depends on the correct assessment of repayment likelihood and effective collections activities. Large companies have an advantage in using computers to serve large portfolios of mortgage and credit card loans, and also have access to cheaper sources of funds, but small companies can compete effectively in the cash lending or sales finance segments, where personal contact is more important. Consumer Finance Industry Forecast The output of US credit cards and finance companies, which includes consumer finance, is forecast to grow at an annual compounded rate of 1% between 2008 and 2013. Data Sourced: December 2008
American Express Company (HQ) Chairman, Chief Exec. Officer: Kenneth I. Chenault World Financial Center 200 Vesey Street New York, NY 10285 United States Phone: 212-640-2000 Fax: 212-619-9230 http://www.americanexpress.com
Telefonaktiebolaget LM Ericsson (ERIC) July 23, 2009 Paul A. Ebeling, Jr. Analyst Today, let’s look at Telefonaktiebolaget LM Ericsson (ERIC), The World’s leader in broadband infrastructure, from a Technical POV. The overall indications, after Wednesday’s (July 22, 2009) market action, are Bullish: in the near term Neutral, mid-term Bullish, and long term Bullish. The recent Candle Stick Analysis is Neutral.
**Chart by: http://www.stockta.com
Latest News: Ericsson reports Q-2 Y 2009 financial results http://finance.yahoo.com/news/STEricsson-reports-second-iw-1212468828.html?x=0&.v=1
Wednesdayâ€™s Market Action Close 10.24 + .10
There is a on , and three Gaps open up between and , 2009 at , the near term resistance is , support at , and the 50 day (EMA) exponential moving average is. This is Telefonaktiebolaget LM Ericsson (ERIC): The world's leading maker of mobile broadband infrastructure provides the equipment that telecom service providers use to build and expand networks. The company also provides wireline broadband, metro-area Ethernet, and optical transport equipment. Its services unit handles operations ranging from systems integration to managed networks. The company also provides content-related products such as Internet television systems. Ericsson's joint venture with Sony, Sony Ericsson Mobile Communications, ranks among the top providers of mobile handsets.
Competitive Landscape The industry depends on purchases from businesses, telephone companies, cable companies, data communications providers, and TV and radio broadcasters. Profitability for individual companies is linked to technical innovation and the ability to secure high-volume contracts from large customers. Small companies can be successful if they make highly specialized products. There are large economies of scale in manufacturing standard products, but many products are specialized and produced in small manufacturing plants. Annual revenue per employee in a large plant varies from US$500,000 to US$1 million. Telecommunications Equipment Manufacturers Industry Forecast The output of US communication equipment manufacturing is forecast to grow at an annual compounded rate of 2 percent between 2008 and 2013. Data Sourced: December 2008 Telefonaktiebolaget LM Ericsson (HQ) Michael Treschow, Chairman Torshamnsgatan 23, Kista SE-164 83 Stockholm, Sweden Phone: +46-8-719-0000 Fax: +46-8-719-4222 http://www.ericsson.com
Ericsson Subsidiaries Ericsson Canada Inc. Ericsson Inc. Ericsson Slovakia Spol s.r.o.
McDonald's Corporation (MCD) Up-date 10 July 23, 2009 Paul A. Ebeling, Jr. Analyst Today let’s look at McDonald’s Corporation (MCD), the world's #1 fast-food company, from a Technical POV. The overall indications, after Wednesday’s (July 22, 2009) market action, are Neutral: in the near term Neutral, mid-term Bullish, and long term Bullish. The recent Candle Stick analysis is: Very Bearish.
**Chart by: http://www.stockta.com
Latest News: McDonald’s Ready To Issue Q-2 Amid Strong Sales, US$’s Strength
Wednesday’s Market Action Close
58.82 - .19 Volume 9,146,300/shrs
There a Inverted Hammer on July 22 and one Gap open up May 20, 2009 at 54.46/55.02, the near term resistance is 59.22, support at 58.06, and the 50 day (EMA) exponential moving average is 57.22. This is McDonald’s Corporation (MCD): "McDonald's is the world's #1 fast-food company by sales, with more than 31,000 restaurants serving burgers and fries in 120 countries, with about 14,000 Golden Arches locations are in the USA. The popular chain is well-known for its Big Macs, Quarter Pounders, and Chicken McNuggets. Most of its outlets are free-standing units, but McDonald's also has many quickservice kiosk units located in airports and retail areas. Each unit gets its food and packaging from approved suppliers and uses standardized procedures to ensure that a Big Mac purchased in Pittsburgh tastes the same as one bought in Beijing, I lived in Beijing for 4 years and it’s true. More than 75% of its restaurants are run by franchisees or affiliates.
The Competitive Landscape Demographics and personal income drive demand. The profitability of individual companies depends on efficient operations, effective marketing, and the ability to provide fast service. Large companies have advantages in purchasing, financing, and marketing. Small companies can compete by offering unique products or serving a local market. The industry is highly labor-intensive: average annual revenue per worker is just under US$40,000. McDonald's Corporation (HQ) Chairman; Andrew J. (Andy) McKenna Sr.
2111 McDonalds Dr. Oak Brook, IL 60523 United States Phone: 630-623-3000 Fax: 630-623-5004 Toll Free: 800-244-6227 http://www.mcdonalds.com
McDonald's Subsidiaries McDonald's Restaurants Limited Ronald McDonald House Charities, Inc.
3M Company (MMM) Up-date 5 July 23, 2009 Paul A. Ebeling, Jr. Analyst Today letâ€™s look at the 3M Company (MMM), the leader in tape and adhesive manufacturing, from a Technical POV. The overall indications, after Wednesdayâ€™s (July 22, 2009) market action is Bullish: in the near term Bullish, mid-term , Bullish and long term Bullish. The recent Candle Stick Analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News: MMM Preview: A Basic Materials Play in Disguise http://secure2.thestreet.com/cap/login/rm_mbp_yho_w-ads.jsp? cm_ven=YAHOO&cm_cat=PREMIUM&cm_ite=003190&flowid=49c2daf122&url=http://www.thestreet.co m/p/_yahoo/rmoney/industrials/10549859.html
Tuesdayâ€™s Market Action Close 64.67 + .47
There is a Bullish Harami on July 17 and no Gaps open up or down on the Chart, the near term resistance is NIL, support at 63.53, and the 50 day (EMA) exponential moving average is 59.48.
This is the 3M Company (MMM): 3M makes everything from masking tape to asthma inhalers. The company has six operating segments: display/graphics, specialty film, traffic control materials; health care (dental and medical supplies, and health IT); safety, security, and protection (commercial care, occupational health and safety products); electro and communications (connecting, splicing, and insulating products); industrial and transportation (specialty materials, tapes, and adhesives); and consumer and office. Well-known brands include Scotchgard fabric protectors, Post-it Notes, ScotchBrite scouring products, and Scotch tapes. Sales outside the US account for about two-thirds of 3M's sales. Top 3M Competitors Avery Dennison Avery Dennison Johnson & Johnson The 3M Company (HQ) Chairman, President, and CEO George W. Buckley 3M Center St. Paul, MN 55144 United States Phone: 651-733-1110 Fax: 651-733-9973 Toll Free: 800-364-3577 http://www.mmm.com 3M Subsidiaries 3M Digital Signage 3M Health Care 3M Health Care Ltd. (UK)
Microsoft Corporation (MSFT) Up-date 13 July 23, 2009 Paul A. Ebeling, Jr. Analyst Today letâ€™s look at Microsoft Corporation (MSFT), the World's #1 software company, from a Technical POV. The overall indications, after Wednesdayâ€™s (July 22, 2009) market action, are Bullish: in the near term Neutral, mid-term Very Bullish, and long term Bullish. The recent candlestick analysis is Very Bearish.
**Chart by: http://www.stockta.com
Latest News: MSFT Preview: Two Tailwinds, One Headwind http://secure2.thestreet.com/cap/login/rm_mbp_yho_w-ads.jsp? cm_ven=YAHOO&cm_cat=PREMIUM&cm_ite=003190&flowid=c37419d787&url=http://www.thestreet.co m/p/_yahoo/rmoney/software/10549861.html
Wednesday’s Market Action Close 24.80 - .03
There is a Hammer on July 21 and three Gaps open up between Mar 31 and July 15, 2009 at 17.76/23.56, the near term resistance is 25.66, support 24.66, and the 50 day (EMA) exponential moving average is 22.55. This is Microsoft Corporation (MSFT): The World's #1 software company provides a variety of products and services, including its Windows operating systems and Office software suite. The company has expanded into markets such as video game consoles, server and storage software, and digital music players. Microsoft has reached settlements to end a slew of antitrust investigations and lawsuits, including agreeing to uniformly license its operating systems and allowing manufacturers to include competing software with Windows. In 2008 Microsoft made repeated efforts to acquire Yahoo! but was rebuffed by that company's board of directors.
Microsoft Corporation (HQ) Steven A. Ballmer Chief Exec. Officer and Exec. Director One Microsoft Way Redmond, WA 98052-6399 United States Phone: 425-882-8080 Fax: 425-936-7329 http://www.microsoft.com
Microsoft Subsidiaries Avanade Inc. ContentGuard, Inc. Ensemble Studios Disclaimer
DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT OR WEBSITE. We are not registered as a securities broker-dealer or an investment adviser either with 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. The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice. The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.
Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company. An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report. Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research. Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing. This website is a service of BlueWave Advisors, LLC, a financial public relations firm that has been compensated by the companies profiled. All direct and third party compensation received has been disclosed within each individual profile in accordance with section 17(b) of the Securities Act of 1933. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled companies. BlueWave Advisors, LLC, and/or its affiliated will hold, buy, and sell securities in the companies profiled. When compensated in shares, all readers should be aware that is our policy to liquidate all shares immediately. We reserve the right to buy or sell the shares of any the companies mentioned in any materials we produce at any time. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled companies. Information contained in our report will contain â€œforward looking statementsâ€? as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company's most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements. We are committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company's plans or ability to effect any planned or proposed actions. We have no firsthand knowledge of any profiled companyâ€™s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable. To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information). We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.
AMZN, AXP, ERIC, MCD, MMM, MSFT