The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
September 25, 2009
Date Line: Hong Kong
Despite Thursday's broad-based selling, the blue chips contained its losses helping the DJIA.
Re-cap of the US Stock Market Action for July 24, 2009 + Stock Talk. Wall Street gave up early gains and slid South Thursday as a rebound of the US$ weighed on commodities. The DJIA shed 41.11 pts, or 0.42%, to close the session at 9,707.44, the S&P 500 fell 10.09 pts, or 0.95 %, to 1,050.78, and the NAS fell 23.81 pts, or 1.12%, to end the session at 2,107.61. The negative reading on the housing market overshadowed better-than-forecast jobs data. The U.S. Labor Department said the number of newly-laid-off workers seeking unemployment benefits fell for a third week in a row. The number of people continuing to claim benefits for more than a week also fell, dropping 123,000 to 6.14M. Financials were among worst performers. Bank of America and Citigroup dropped after the US Fed said it will shrink emergency programs that auction loans to commercial banks and Treasuries to bond dealers. Producers of raw materials fell 2% for the steepest decline among 10 SP 500 groups and energy shares lost 1.3%. Gold fell to below US$1000 oz as the US$ rallied and Crude Oil closed off 4.4% to a 1 month low on the New York Merc. US Treasuries showed strong: 10-year T-Note closed about 12 ticks higher, lowering its yield to 3.37%. Treasuries were supported by weakness in stocks and solid results from 7-year T-Note auction, which produced a bid-to-cover ratio of 2.8 and a high yield of 3.05%. Advancing Sectors: (None) Declining Sectors: Materials -2.0%, Financials -1.8%, Industrials -1.4%, Energy -1.3%, Consumer Discretionary -0.9%, Technology -0.6%, Consumer Staples -0.4%, Health Care -0.3%, Telecom -0.1%, Utilities -0.1% DJIA -41.11 NASDAQ -23.81 NQ100 -0.8% S&P500 -10.09 NASDAQ Adv/Vol/Dec 645/2.59 B/2018 NYSE Adv/Vol/Dec 714/1.37B/2306 Stocks to Watch Today American Greetings Corp. (AM), Caterpillar, Inc. (CAT), FedEx Corporation (FDX), and Research in Motion (RIMM)
American Greetings Corp. (AM) Up-date 1 Last Look: June 25, 2009 September 25, 2009 Paul A. Ebeling, Jnr. Analyst Today, letâ€™s look at American Greetings Corp. (AM), #2 US maker of greeting cards (behind Hallmark), from a Technical POV. The overall indications, after Thursdayâ€™s (September 24, 2009) market action, are Bullish: in the near term Bullish, mid-term Bullish, and long term Bullish. The recent Candle Stick analysis is: Very Bearish
**Chart by: http://www.stockta.com
Latest News: American Greetings, A123 Systems: Biggest Price Gainers (AM, AONE) http://online.wsj.com/article/SB10001424052970204488304574433390796449418.html? ru=yahoo&mod=yahoo_hs
Thursdayâ€™s Market Action Close 19.37
There is a Bearish Harami on September 23, and two Gaps open up between June 24 and September 24, 2009 at 6.67/16.63, the near term resistance is NIL, support at 18.10, and the 50 day (EMA) exponential moving average is 13.98. This is American Greetings Corp. (AM): The #2 US maker of greeting cards (behind Hallmark), the company makes American Greetings, Carlton Cards, and Gibson Greetings brand missives. While greeting cards make up more than 60% of sales, the company also produces DesignWare party goods, Plus Mark gift wrap, and DateWorks calendars. The company's AG Interactive subsidiary distributes online greeting cards and other interactive media. American Greetings' products are sold through card and stationary stores, mass merchants, and other retail outlets worldwide. The family of chairman Morry Weiss controls more than 45% of the company. Industries Where American Greetings Competes Media Publishing Greeting Cards (primary) Internet Content Providers Consumer Products Manufacturers Housewares
American Greetings Corp. (HQ) Zev Weiss, Chief Exec. Officer and Director One American Road Cleveland, OH 44144-2398 United States Phone: 216-252-7300 Fax: 216-252-6778 http://www.americangreetings.com
Caterpillar, Inc. (CAT) Up-date 14
Last Look: July 8, 2009
September 25, 2009 Paul A. Ebeling, Jnr. Analyst Letâ€™s have a look at Caterpillar, Inc. (CAT), the World's #1 maker of earthmoving machinery and a leading supplier of agri. equipment, from a Technical POV. The overall indications after Thursdayâ€™s (September 24, 2009) market action is Bullish: in the near term Neutral, mid-term Bullish , and long term Very Bullish. The recent candlestick analysis is Neutral
**Chart by: http://www.stockta.com
Latest News: The Road To 1,200 Is Open Soon even the cave-hardened bears will come around to
the bullish way of thinking as they contemplate the earnings power of this market. http://www.forbes.com/2009/09/24/cisco-ibm-dow-personal-finance-financial-advisor-networkairlines-delta.html?partner=yahootix
Thursdayâ€™s Market Action Close 51.85
There are five Gaps open up between July 15 and September 18, 2009 at 31.96/41.36, the near term resistance is 59.84, support at 51.05, and the 50 day (EMA) exponential moving average is 46.14. This is Caterpillar, Inc (CAT): Caterpillar is the world's #1 maker of earthmoving machinery and a leading supplier of agricultural equipment. It makes construction, mining, and logging machinery; diesel and natural gas engines; industrial gas turbines; and electrical power-generation systems. Caterpillar has plants worldwide and sells its equipment globally via a network of 3,600 locations in 180 countries, offering rental services through more than 1,600 outlets worldwide, and it provides financing and insurance for its dealers and customers. Cat Power Ventures invests in power projects that use Caterpillar power generation equipment, and Caterpillar Logistics Services offers supply chain services Industries Where Caterpillar Competes Construction, Mining & Other Heavy Equipment Manufacturing Agricultural Machinery Manufacturing Financial Services Insurance Transportation Services
Caterpillar, Inc. (HQ) Chairman and CEO James W. (Jim) Owens
100 NE Adams St. Peoria, IL 61629 United States Phone: 309-675-1000 Fax: 309-675-1182 http://www.cat.com
Caterpillar Subsidiaries Caterpillar Logistics Services, Inc. Mitsubishi Caterpillar Forklift America Inc. Progress Rail Services Corporation
FedEx Corporation (FDX) Up-date 1
Last Look: June 15, 2009
September 25, 2009 Paul A. Ebeling, Jnr. Analyst Today, letâ€™s look at FedEx Corporation (FDX), the international transportation and business services provider, from a Technical POV. The overall indications, after Thursdayâ€™s (September 24, 2009) market action, are Bullish: in the near term 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: FedEx boosts delivery capacity with 777Fs http://memphis.bizjournals.com/memphis/stories/2009/09/21/daily14.html?ana=yfcpc
Thursdayâ€™s Market Action Close 75.39
There is a Bullish Harami on September 24, and two Gaps open up between August 9 and September 11, 2009 at 48.34/75.92, the near term resistance is 80.19, support at 75.16, and the 50 day (EMA) exponential moving average is 68.96. This is FedEx Corporation (FDX): FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. The FedEx Express segment offers various shipping services for the delivery of packages and freight. This segment also provides international trade services specializing in customs brokerage and global cargo distribution; customs clearance services, as well as global trade data, an information tool that allows customers to track and manage imports; and international trade advisory services, including assistance with the customs-trade partnership against terrorism program. The FedEx Ground segment provides business and residential money-backguaranteed ground package delivery services. The FedEx Freight segment offers less-than-truckload freight services; long-haul LTL freight services; and airfreight forwarding services between the United States and Puerto Rico. The FedEx Services segment provides sales, marketing, and information technology support, as well as customer service support; office and print services; document solutions and business services; and supply chain solutions. The company was founded in 1971 and is headquartered in Memphis, Tennessee.
Competitive Landscape Demand is driven by domestic manufacturing output and levels of international trade. The profitability of individual companies depends on efficient operations, extensive relationships in shipper and carrier networks, and industry expertise. Large companies have advantages in account relationships and access to advanced logistics technologies. Small operations can compete effectively by serving a local market, specializing in cargo transfer with specific countries, and facilitating the transport of unusual goods. The industry is labor-intensive: average annual revenue per employee is US$170,000. Freight Shipping Services Industry Forecast The output of US railroads, trucking, and water transportation services, all major indicators for freight shipping, is forecast to grow at an annual compounded rate of 2% between 2008 and 2013. Data Sourced: December 2008
FedEx Corporation (HQ) Frederick W. Smith , Founder, Exec. Chairman, Chief Exec. Officer and President 942 South Shady Grove Road Memphis, TN 38120 United States Phone: 901-818-7500 http://www.fedex.com
Research In Motion Ltd. (RIMM) Up-Date 11
Last Look: June 15, 2009
September 25, 2009 Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at the Research In Motion (RIMM), the innovator that bought the world BlackBerry, the tool that keeps us connected, from a Technical POV, The overall indications, after Thursdayâ€™s (September 24, 2009) market action, are Neutral, in the near term it is Neutral, mid-term Bullish, and long term Neutral. The recent Candle Stick analysis is: Very Bearish
Latest News: RIM Results Raise Growth Fears The 2nd straight quarter of disappointing financial results offers proof that Research In Motion is facing pressure from Apple, Google's Android, and others.
Thursday’s Market Action Close 83.06
There is a Bearish Engulfing Candle on September 24 and three Gaps open up between August 18 and September 15, 2009 at 71.49/81.65, the near term resistance is 84.09, the support is 81.75 and the 50 day exponential moving average at 77.37. This is Research in Motion (RIMM): RIM moves with its customers. In the world of personal communications Research in Motion provides wireless hardware, software, and services to customers worldwide. Its signature BlackBerry smart phones handle voice, email, and text messaging, + Internet access. RIM also provides software development tools and makes radio-based modems that other manufacturers incorporate into portable devices. RIM sells to corporations, resellers, and wireless carriers. The ubiquitous BlackBerry devices are offered by service providers including AT&T Mobility, TMobile, and Verizon Wireless. The Competitive Landscape Demand for RIM and their competitor’s products are tied to consumer and business income. The profitability of individual computer companies depends on purchasing and production efficiencies, and on technological expertise. Large companies like RIM 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$500,000. The output of North American computer manufacturing is forecast to grow at an annual compounded rate of 3.9% between 2007 and 2012. Competition RIM’s competitors are primarily in the Handheld Computers & Accessories industry. It also competes in the Computer Networking Equipment, Wireless Software, and Wireless Telecommunications Equipment sectors. RIM competitive landscape includes: Apple, Microsoft, and Nokia. RIM is ranked #107 on the Financial Times Global 500 list with sale of US$ 6+B and 8,400 employees.
Research In Motion, Ltd. (HQ) Co-CEO and Director James L. Balsillie President, Co-CEO, and Director Michael Lazaridis 295 Phillip St. Waterloo, Ontario N2L 3W8, Canada Phone: 519-888-7465 Fax: 519-888-7884
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.