The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
4 November 2009
Date Line: Hong Kong (SAR) China
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The S&P 500 and NAS end higher on deal news The S&P 500 and NAS gained a bit Tuesday on news of a major railroad acquisition, as the DJIA edged a bit lower. The S&P is up 55% since the early March lows on stronger than expected economic data.
Re-cap of the US Stock Market Action for the session ending 2 November 2009 The Dow Jones Transportation Average.DJT rose 5.3% as Warren Buffett's Berkshire Hathaway agreed to buy Burlington Northern Santa Fe Corp in a deal that values the railroad company at US$34B, Burlington shares jumped 27.5% to US$97. The US Federal Open Market Committee (FMOC) began a 2 day meeting Tuesday. Savvy Fed observers expect the Fed to leave interest rates at close to zero, The DJIA gave up 17.53 pts, or 0.18%, to close at 9,771.91, but the S&P 500 gained 2.53 pts, or 0.24%, to close at 1,045.41, and the NAS advanced 8.12 pts, or 0.40%, to close the session at 2,057.32. Deal News: Black & Decker Corp. shares jumped 31% to US$62, a day after Stanley Works Inc said it struck a deal to buy the company. Stanley shares rose 10.1% to US$49.69, and Berkshire Hathaway agreed to buy Burlington Northern Santa Fe Corp in a deal that values the railroad company at US$34B, Burlington shares jumped 27.5% to US$97. US Crude Oil futures shot up US$1.47, or 1.88%, to settle at US$79.60bbl. ConocoPhillips' stock gained 1.5% to US$50.75. Data showed new orders received by US factories rose more than expected in September but had little impact on the broader market. Volume and Breadth: Trade was below average on the NYSE, with 1.38B/shrs changing hands, below last year's estimated daily average of 1.49B'shrs, and on the NAS, about 2.18B/shrs traded, below last year's daily average of 2.28B/shrs. Advancers outnumbered decliners on the NYSE by a ratio of 18 to 11, while advancing stocks beat decliners on the NAS, by about 8 to 5. Stocks to WatchToday. American International Group, Inc. (AIG), ConocoPhillips (COP), Pfizer Inc. (PFE), Pacific Asia Petroleum, Inc. (PFAP) and Textron (TXT).
American International Group, Inc. (AIG) Up-date 18
Last Look: May 8, 2009
November 4, 2009
Paul A. Ebeling, Jnr. Analyst Today let’s have a look at American International Group, Inc. (AIG), one of the World's largest insurance firms, from a Technical POV. The overall indications, after Tuesday’s (November 3, 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: Market Winners & Losers: AIG, Black & Decker, Novellus…
http://www.foxbusiness.com/story/markets/market-winners--losers-black--decker-novellus/ Tuesdayâ€™s Market Action Close
There is a Bullish Engulfing Candle on November 3, 2009 and no Gaps open up or down on the chart, the near term resistance is 46.70, support is 37.21, and the 50 day (EMA) exponential moving average is 38.15. 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
ConocoPhillips (COP) Up-date 11
Last Look: June 1, 2009
November 4, 2009 Paul A. Ebeling, Jnr. 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 Tuesday’s (November 3, 2009) market action is Very Bullish: in the near term Bullish, mid-term Very Bullish, and long term Very Bullish. The recent Candle Stick analysis is: Very Bullish
**Chart by: http://www.stockta.com
Latest News: Form 10-Q for CONOCOPHILLIPS http://biz.yahoo.com/e/091103/cop10-q.html
Tuesdayâ€™s Market Action Close 50.45
There is a Bullish Engulfing Candle on November 3 and one Gap open up on August 21, 2009 at 43.65/43.75, the near term resistance is 53.33, support at 50.49, and the 50 day (EMA) exponential moving average is 48.63. 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.
Pfizer Inc. (PFE) Up-date 4
Last Look: July 8, 2009
November 4, 2009 Paul A. Ebeling, Jnr. Analyst Letâ€™s have a look at Pfizer Inc. (PFE), the Giant manufacturer of prescription medicines for humans and animals worldwide, from a Technical POV. The overall indications, after Tuesdayâ€™s (November 3, 2009) market action is 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: GSK, Pfizer launch HIV company http://triangle.bizjournals.com/triangle/stories/2009/11/02/daily27.html?ana=yfcpc
Tuesday’s Market Action Close 16.89
There is a DOJI on November 3 and one Gap open up on July 21, 2009 at 15.29/15.36 the near term resistance is 17.16, support at 16.88 and the 50 day (EMA) exponential moving average is 16.81. This is Pfizer Inc. (PFE): The Company engages in the discovery, development, manufacture, and marketing of prescription medicines for humans and animals worldwide. Its Pharmaceutical segment offers Lipitor for elevated cholesterol levels in the blood; Norvasc for hypertension; Caduet for cardiovascular events; Chantix/Champix for smoking cessation; Lyrica for neuropathic pain; Geodon/Zeldox, a psychotropic agent; and Aricept for Alzheimer’s disease. It also provides Celebrex for arthritis pain, and inflammation and acute pain; Vfend for esophageal candidiasis and blood stream infections; Zyvox for bacterial infections; and Selzentry/Celsentri for adults infected with only CCR5-tropic HIV-1 detectable. In addition, this segment provides Viagra for erectile dysfunction; Detrol and Toviaz for overactive bladder; Camptosar for metastatic colorectal cancer; Sutent, an oral multi-kinase inhibitor; Xalatan/Xalacom for open-angle glaucoma and ocular hypertension; and Genotropin for growth disorders. The company’s Animal Health segment offers parasiticides, anti-inflammatories, antibiotics, vaccines, antiemetics, and anti-obesity agents. It also provides Revolution/Stronghold for dogs and cats; Rimadyl for pain and inflammation associated with canine osteoarthritis and soft tissue orthopedic surgery; Clavamox/Synulox for skin and soft tissue infections; RespiSureOne/StellamuneOne to prevent pneumonia in swine; Bovi-Shield Gold for reproductive and respiratory protection; Dectomax, an injectable and pour-on formulations; Draxxin, an antibiotic for infections in cattle and swine; and Excede to treat infections in dairy cows, beef cattle, and swine. Pfizer Inc. also involves in contract manufacturing and bulk pharmaceutical chemicals businesses. It serves doctors, nurse practitioners, physician assistants, pharmacists, hospitals, pharmacy benefit managers, managed care organizations, and government agencies. Pfizer, Inc. was founded in 1849 and is headquartered in New York, New York. Competitive Landscape The industry is marked by rapid advances in scientific knowledge that produce ever-more effective medicines. Profitability is determined mainly by the ability to discover new drugs. The industry is dominated by the large manufacturers/marketers that manufacture drugs, have large research operations, and also have large clinical testing, marketing, and distribution capabilities. Small companies are mainly research operations or manufacturers of non-prescription products. Because of the high value of the product, average revenue per employee is a very high US$600,000. Pharmaceutical Manufacture and Sale Industry Forecast The output of US drug manufacturing is forecast to grow at an annual compounded rate of 8 % between 2008 and 2013. Data Sourced: December 2008 Pfizer Inc. (HQ) Chairman, Chief Exec. Officer Jeffrey B. Kindler 235 East 42nd Street New York, NY 10017 United States Phone: 212-573-2323 Fax: 212-573-7851 http://www.pfizer.com
Pfizer Subsidiaries Pfizer Health Solutions Inc Pfizer Ireland Pharmaceuticals Pfizer Limited
Pacific Asia Petroleum, Inc. (PFAP) Up-date 2
Last Look: May 5, 2009
November 4, 2009 Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at Pacific Asia Petroleum, Inc. (PFAP), a USA based independent Chinese Oil and Gas exploration company, from a Technical POV. The overall indications, after Mondayâ€™s (November 3, 2009) market action, are Bullish in the near term Very Bullish , mid-term Bullish, and long term Very Bullish. The recent Candle Stick analysis is: Very Bullish.
**Chart by: http://www.stockta.com
Latest News: Pacific Asia Petroleum Announces Approval for NYSE Amex Listing
Tuesdayâ€™s Market Action Close 5.02 + .69
There is a DOHI on November 2, 2009 and no Gaps open up or down on the Chart, the near term resistance is 5.12, support at 4.66, and the 50 day (EMA) exponential moving average is 3.77. This is Pacific Asia Petroleum, Inc. (PFAP): The Company focuses on the exploration, development, and production of Crude Oil and Natural Gas in Asia and the Pacific Rim countries. The company has a contract to develop and exploit Crude Oil resources in the ShaoGen Contract Area, which comprises an area of approximately 353 square kilometers located in Chifeng, China. It also holds rights to a prospective contract area for coal bed methane and tight gas sand production in the Shanxi Province of China. The company was founded in 2005
Competitive Landscape Demand is driven by Crude Oil and Gas prices. The profitability of individual companies depends on technical expertise and efficiency of operations. Large companies can offer a broad range of services. Small firms can compete effectively by specializing in a particular type of service or geographic area. The industry is relatively labor-intensive: average annual revenue per employee is about US$410,000. Oil and Gas Field Services Industry Forecast
The output of US oil and gas drilling and support activities is forecast to grow at an annual compounded rate of 4 % between 2008 and 2013. Data Sourced: December 2008 Pacific Asia Petroleum, Inc. (HQ) Chief Exec. Officer, Pres, Sec: Frank C. Ingriselli 10600 N De Anza Boulevard Suite 250 Cupertino, CA 95014 United States Phone: 408-873-0400 Fax: 408-873-0550 http://www.papetroleum.com
Textron Inc. (TXT) Up-date 2
Last Look: July 6, 2009 9
November 4, 2009 Paul A. Ebeling, Jnr. Analyst Today let’s look at Textron (TXT), the worldwide manufacturer of Bell Helicopters and Cessna aircraft, from a Technical POV. The overall indications, after Tuesday’s (November 3, 2009) market action, are: Neutral, in the near term Neutral, mid-term Neutral, and long term Bullish. The recent Candle Stick analysis is: Very Bullish
**Chart by: http://www.stockta.com
Tuesday’s Market Action Close 18.51 + .39
There is two Gaps open up between July 15 and 18, 2009 at 9.53/11.32, the near term resistance is 18.90, support at 17.50, and the 50 day (EMA) exponential moving average is 18.05. This is Textron (TXT): Textron, Inc. operates in the aircraft, industrial, and finance businesses worldwide. It operates through five segments: Cessna, Bell, Textron Systems, Industrial, and Finance. The Cessna segment manufactures general aviation aircraft, such as business jets, single engine turboprops, and single engine piston aircraft, as well as provides aftermarket services. The Bell segment manufactures and supplies helicopters, tiltrotor aircraft, and helicopter-related spare parts and services for both military and commercial applications. The Textron Systems segment produces precision weapons; airborne and ground-based surveillance systems; intelligence and situational awareness software; armored vehicles and turrets; reciprocating piston aircraft engines; and aircraft and missile control actuators, valves, and related components for the defense, aerospace, and general aviation markets. The Industrial segment develops and manufactures blow-molded fuel systems cars, light trucks, all-terrain vehicles and watercraft, and windshield and headlamp washer systems; produces metal fuel fillers and engine camshafts for the automotive market; and bottles and plastic containers for food, household, laboratory and industrial uses. It also manufactures powered equipment, electrical test and measurement instruments, hand and hydraulic powered tools, and electrical and fiber optic connectors; golf cars and off-road utility vehicles powered by electric and internal combustion engines; and turfmaintenance equipment and turf-care vehicles. The Finance segment provides aircraft finance, assetbased lending, distribution finance, golf finance, resort finance, and structured capital. The company sells its products through a network of sales representatives, distributors, and authorized independent sales representatives, as well as directly to end users, home improvement retailers, and original equipment manufacturers. Textron was founded in 1923 and is based in Providence, the Rhode Island.
Competitive Landscape Demand is driven by the US military budget and the overall economic climate, which affects airline traffic and demand for new commercial aircraft. The profitability of individual companies depends on technical expertise and the ability to accurately price long-term contracts. Large companies enjoy economies of scale in design, manufacturing, and purchasing. Small companies can compete effectively by concentrating on selected components and parts manufacturing for particular prime contractors. Increasingly, small companies are developing system integration capabilities as large firms outsource more aspects of contracts. Production of aircraft and major aircraft components is highly automated: average revenue per employee is over US$300,000.
Aerospace Products and Parts Manufacture Industry Forecast The output of US aerospace products is forecast to grow at an annual compounded rate of 7% between 2008 and 2013. Data Sourced: December 2008 Textron (HQ) Chairman and Chief Exec. Officer Lewis B. Campbell 40 Westminster St. Providence, RI 02903-2596 United States Phone: 401-421-2800 Fax: 401-457-2220 http://www.textron.com
Textron Subsidiaries 11
AAI Corporation Bell Helicopter Textron Inc. Cessna Aircraft Company
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AIG, COP, PFE, PFAP, TXT