The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
October 7, 2009
Date Line: Hong Kong
Alert: Australia became the first G-20 country to raise interest rates since the onset of the financial crisis, saying that the worst danger for the economy had passed, which underscored for many that the global economy was on the mend.
The S&P 500 is now up 56% about since hitting 12-year lows on March 9, 2009.
Re-cap of the US Stock Market Action for the session ending October 6, 2009 Stocks in the US and around the World rose Tuesday; investor's are optimistic that corporate earnings reports will beat expectations. The DJIA closed up 131.50 pts, or 1.37% at 9,731.25, the S&P 500 added 14.26 pts, or 1.37%, to close at 1,054.72, and the NAS tallied up + 35.42 pts, or 1.71%, to end the session at 2,103.57. Expectations for Q-3 earnings are positive, remember that about 70 % of companies beat estimates for Q-2 on aggressive cost cutting and weak consensus estimates, and since the economy has shown some signs of improvement since then, it's reasonable to think corporate results will be better US Gold futures tapped a all-time high at US$1,045 oz Tuesday, adding to gains in commodity-related shares. Freeport-McMoRan Copper & Gold Inc advanced 3.4% at US $69.61/shr. Volume and Breadth: Trade was below average on the NYSE, with 1.23B/shrs changing hands, under last year's estimated daily average of 1.49B/shrs, and on the NAS, about 2.42B/shrs traded, above last year's daily average of 2.28B/shrs. Advancers outnumbered decliners on the NYSE by a ratio of 4 to 1, and advancers beat decliners on the NAS, by about 10 to 3. Stocks to Watch Today
Alcoa, Inc. (AA), Exxon Mobil Corp (XOM), Freeport-McMoRan (FCX), and Yum! Brands Inc. (YUM)
Alcoa Inc. (AA) Up-date 11 October 7, 2009
Last Look: September 3, 2009
Paul A. Ebeling, Jnr. Analyst Today let’s look at Alcoa, Inc. (AA), one of the world’s top producers of aluminum, from a Technical POV. The overall indications, after Tuesday’s (October 6, 2009) market action, are Bullish: in the near term Bullish , mid-term Very Bullish and long term Bullish. The recent CandleStick analysis; Neutral.
**Chart by: http://www.stockta.com
Latest News: A Dow Double in 10 years? Easy http://seekingalpha.com/article/165318-a-dow-double-in-10-years-easy Tuesday’s Market Action Close 13.89
There are four Gaps open up between July 30 and October 6, 2009 at 11.14/13.64, the near term resistance is 14.50, support at 13.51 and the 50 day (EMA) exponential moving average is 12.58. This is Alcoa, Inc. (AA): Alcoa is among the world's top producers of alumina (aluminum's principal ingredient, processed from bauxite) and aluminum. Its vertically integrated operations include bauxite mining, alumina refining, and aluminum smelting; primary products include alumina and its chemicals, automotive components, and sheet aluminum for beverage cans. The company's non-aluminum products include fiber-optic cables. Major markets include the aerospace, automotive, and construction industries. In 2007 Alcoa offered to buy what was then the world's #3 aluminum producer, Alcan, for US$33B but was trumped by Rio Tinto's US$40B offer. The next year it sold its packaging business to the Rank Group.
The Competitive Landscape Demand comes largely from the manufacturers of durable goods like motor vehicles, machinery, containers, and construction steel. The profitability of individual companies depends largely on efficient operations, because most products are commodities sold based on price. Big companies have large economies of scale in production. Accordingly, most producers of secondary products buy raw metal from the large producers. Small companies can compete by operating efficient local mini-mills or producing specialty products. The industry is highly automated: average annual revenue per worker is close to US$300,000. Alcoa, Inc (HQ) Chairman Alain J. P. Belda
390 Park Ave. New York, NY 10022-4608 United States Phone: 212-836-2600 Fax: 212-836-2815 http://www.alcoa.com
Alcoa Subsidiaries Alcoa Alunimio S.A. Alcoa Home Exteriors, Inc. Kawneer Company, Inc.
Exxon Mobil Corp. (XOM) Up-date 8
Last Look: August 20, 2009
October 7, 2009 Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at Exxon Mobil Corp (XOM), the World's largest integrated oil company , from a Technical POV. The overall indications, after Tuesdayâ€™s (October 6, 2009) market action, are Neutral: in the near term Neutral, mid-term Neutral, and long term Neutral. The recent Candle Stick analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News: Exxon Mobil reports spark deal talk http://www.marketwatch.com/story/exxon-sparks-deal-talk-with-reported-ghana-move-2009-10-07? siteid=yhoof
Tuesdayâ€™s Market Action Close 68.66
There is one Gap open down on July 15, 2009 at 73.10/72.96, the near term resistance is 69.36, support at 68.47, and the 50 day (EMA) exponential moving average is 69.19. 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.
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
Freeport-McMoRan Copper & Gold Inc. (FCX) Up-date 17Last Look: September 23, 2009 October 7, 2009 Paul A. Ebeling, Jnr. Analyst Dear Reader, Let’s have a look at Freeport-McMoRan (FCX), the giant Gold and Copper miner, from a Technical POV. The overall indications, after Tuesday’s (October 6, 2009) market action, are Neutral: in the near term Neutral, mid-term Bullish, and long term Very Bullish. The recent Candle Stick analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News: Freeport says revives El Abra copper extension http://www.reuters.com/article/marketsNews/idAFN0737901020091007?rpc=44
Tuesdayâ€™s Market Action Close 69.61 + 2.30
There are three Gaps open up between July 30 and October 6, 2009 at 59.93/68.55, the near term resistance is 73.30, support at 68.11, and the 50 day (EMA) exponential moving average is 64.84. 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 and Climax Molybdenum Company
Yum! Brands Inc. (YUM) Up-date 1
Last Look: April 23, 2009
October 7, 2009 Paul A. Ebeling, Jnr. Analyst Letâ€™s have a look at Yum! Brands Inc. (YUM), the company that brings you Kentucky Fried Chicken +, from a Technical POV. The overall indications, after Tuesdayâ€™s (October 6, 2009) market action, are Neutral: in the near term Neutral, mid-term Neutral , and long term Neutral. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News: It's Finger-Lickin' Good, Get Some Yum! The operator of KFC, Taco Bell and Pizza Hut beats profit views, but shares are weak. Scoop up a few for a feast.
Tuesdayâ€™s Market Action Close
There is a Bearish Harami on October 1 and a Gap open up on October 5, 2009 at 33.38/33.57, the near term resistance is 34.87, support at 34.73, and the 50 day (EMA) exponential moving average is 34.02. This is Yum! Brands Inc. (YUM): The Company operates as a quick service restaurant company. The company develops, operates, franchises, and licenses a system of restaurants, which prepare, package, and sell various food items. Its restaurants specialize in chicken, pizza, Mexican-style food, and quickservice seafood categories. As of December 27, 2008, it operated approximately 36,000 restaurants in 110 countries and territories under the KFC, Pizza Hut, Taco Bell, Long John Silverâ€™s, and A&W AllAmerican Food Restaurants brands. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to YUM! Brands, Inc. in May 2002. Yum! Brands, Inc. was founded in 1997 and is headquartered in Louisville, Kentucky.
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. Fast Food and Quickservice Restaurants Industry Forecast The output of US food and drinking places, which includes fast food restaurants, is forecast to grow at an annual compounded rate of 4.3% between 2007 and 2012.
Yum! Brands Inc. (HQ) David C. Novak, Exec. Chairman, Chief Exec. Officer and President 1441 Gardiner Lane Louisville, KY 40213 United States Phone: 502-874-8300 Fax: 502-454-2410 http://www.yum.com
YUM! Subsidiaries A&W Restaurants, Inc. KFC Corporation Long John Silver's, Inc.
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 “forward looking statements” 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 company’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.