The Red Roadmaster’s US Market Re-cap + Stock Talk ™
September 9, 2009
Date Line: USA
Wall Street closes up on strong M&A and Commodities Action
Re-cap of the US Stock Market Action for September 8, 2009 US stocks advanced Tuesday on corporate deal making activity, and a weaked US$ led to gains in commodities, oil and mining companies. The US$ fell to its lowest this year against the Euro, sending Crude Oil up 4.5% and Gold into the resistance at US$1,000 oz. The DJIA closed up 56.07 pts, or 0.59%, at 9,497.34, the S&P 500 rose 8.98 pts, or 0.88%, to close at 1,025.38, and the NAS tallied up +18.99 pts, or 0.94%, to end the session at 2,037.77. Health insurance stocks .HMO lost 1.6% ahead of US President Barack Obama's address to Congress on Wednesday, where he will outline his proposed revamp of the healthcare system. On the NAS, shares of iPod maker Apple Inc rose 2.6% to US$172.93 after Morgan Stanley raised its price target to US$200 from US$195. Volume and Breadth: Volume was light on the NYSE where 1.32B/shrs changed hands, below last year's estimated daily average of 1.49B/shrs, and on the NAS, about 2.01B/shrs traded, also below last year's daily average of 2.28B/shrs. Advancers outnumbered decliners on the NYSE by a ratio of about 22 to 7, and on the NAS, about 16 stocks rose for every 10 that fell. Stocks to Watch Today
Apple, Inc. (AAPL), Amazon.com, Inc. (AMZN), Google Inc. (GOOG), LDK Solar Co. Ltd. (LDK), and PepsiCo, Inc. (PEP)
Apple, Inc. (AAPL) Up-date 37 September 9, 2009 Paul A. Ebeling, Jr. Analyst Today let’s look at Apple, Inc (APPL), the creator of the iPhone and other wonderful stuff, from a Technical POV. The overall indications, after Tuesday’s (September 8, 2009, 2009) market action is Bullish; in the near term Neutral, mid-term Very Bullish, and long term Bullish. Recent Candlestick analysis: Very Bearish.
**Chart by: http://www.stockta.com
Latest News: As AT&T struggles to keep up with iPhone-delivered videos and apps, its leadership in the market for smartphone Web access is at stake http://www.businessweek.com/technology/content/aug2009/tc20090823_412749.htm?campaign_id=yhoo
Tuesday’s Market Action Close 172.92
+ 2.62
Volume 11,245,600/shrs
There is a Bearish Doji Star on September 8, and eight Gaps open up between April 2, and September 8, 2009 at 109/172, the near term resistance is at 1179.09, support at 168.53, and the 50 day exponential moving average is 158.66 This is Apple, Inc. (AAPL): Apple, the world’s computer/gadget innovator has caused a revolution in personal computing and digital media distribution. The company's desktop and laptop computers feature its OS X operating system, they include its Mac mini, iMac, and MacBook for the consumer and education markets, and powerful Mac Pro and MacBook Pro for high end consumers and professionals involved in design and publishing. Apple posted a huge success with its iPod digital music players, and iTunes, its online music store. Other Apple products: iPhone mobile phones, Xserve, servers, Airport, wireless networking equipment, plus publishing and multimedia software. Apple’s FileMaker sub provides database software. Apple, Inc. ranks #103 in the Fortune 500 Companies List. The Competitive Landscape Computer product demand is directly tied to consumer and business income. The profitability of individual computer companies depends on purchasing and production efficiencies, and on technological expertise. Large companies 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 US computer manufacturing is forecast to grow at an annual compounded rate of 4.7 % between 2008 and 2013. Apple, Inc. (HQ) Steven P. (Steve) Jobs, CEO and Director 1 Infinite Loop Cupertino, CA 95014 United States http://www.apple.com
Apple Subsidiaries Apple Computer (UK) Limited FileMaker, In
Amazon.com, Inc. (AMZN) Up-date 11 September 9, 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 Tuesday’s (September 8, 2009) market action, are Neutral: in the near term Bullish, mid-term Neutral, and long term Neutral. The Recent Candle Stick analysis is Bullish.
**Chart by: http://www.stockta.com
Latest News: Battle Continues Over ‘Amazon Tax’ in New York http://blogs.wsj.com/digits/2009/09/08/battle-continues-over-“amazon-tax”-in-new-york/?mod=yahoo_hs
Tuesday’s Market Action Close 80.90 + 2.03
Volume 7,037,900/shrs
There is a Bullish Harami on September 3, and one Gap open up between Mar 31,2009 at 71.67/72.12, the near term resistance is 81.94, support is 79.75, and the 50 day (EMA) exponential moving average is 82.55. 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
Google Inc. (GOOG) Up-date 12 September 9, 2009 Paul A. Ebeling, Jr. Analyst Today, let’s look at Google Inc. (GOOG), the Internet Search Engine leader, from a Technical POV. The overall indications, after Tuesday’s (September 8, 2009) market action, are Bullish: in the near term Neutral, mid-term Very Bullish, and long term Very Bullish. Candle stick analysis: Neutral
**Chart by: http://www.stockta.com
Latest News: Legal arguments pan, praise Google's book deal
http://finance.yahoo.com/news/Legal-arguments-pan-praise-apf-1095323411.html?x=0&.v=7 Tuesday’s Market Action Close 458.62
- 2.68
Volume 2,656,600/shrs
There are four Gaps open up between Mar 23 and Aug 20, 2009 at 332.99/451.23, the near term resistance is 470.65, support at 457.59, and the 50 day (EMA) exponential moving average is 430.77. This is Google Inc. (GOOG): Google operates the leading Internet search engine, offering targeted search results from billions of Web pages. Results are based on a proprietary algorithm -Google's technology for ranking Web pages is called PageRank. The company generates nearly all of its revenue through ad sales. Advertisers can deliver relevant ads targeted to search queries or Web content. Google also operates the Google Network, a network of third party customers that use Google's advertising programs to deliver relevant ads to their own Web sites. Founders Sergey Brin and Larry Page each have nearly 30% voting control of the company. The Competitive Landscape Demand comes largely from corporations that sell consumer products, and telecommunications, entertainment, and financial services. The profitability of individual companies depends on creative skills and good marketing. Large companies are advantaged in being able to serve the varied needs of large customers, but small companies can be competitive through special talent or lower pricing or through special services. The industry is labor intensive, but the high value of the product produces annual revenue per employee of about US$150,000. Advertising and Marketing Industry Forecast
The output of US advertising services is forecast to grow at an annual compounded rate of 5.5 % between 2008 and 2013. Google Inc. (HQ) Chairman & Chief Exec. Officer Eric E. Schmidt Ph.D.
1600 Amphitheatre Parkway Mountain View, CA 94043 United States Phone: 650-253-0000 Fax: 650-253-0001 http://www.google.com
LDK Solar Co. Ltd. (LDK) Up-date 1 September 9, 2009 Paul A. Ebeling, Jr. Analyst Today, let’s look at LDK Solar Co. Ltd. (LDK), the manufacturer and seller of multicrystalline solar wafers, from a Technical POV. The overall analysis after Tuesday’s (September 8, 2009) market action is Neutral in the near term Neutral, mid-term Bullish and long term Neutral. The recent Candle Stick analysis is: Very Bullish.
**Chart by: http://www.stockta.com
Latest News: First Solar Moves into China http://www.forbes.com/2009/09/08/dollar-oil-solar-markets-transcript-amd.html?partner=yahootix
Tuesday’s Market Action Close 10.24
+ 1.30
Volume 5,970,900/shrs
There is a Hammer on September 4, and one Gap open up on September 8, 2009 at 8.94/9.01, the near term resistance is 10.47, support at 9.82, and the 50 day (EMA) exponential moving average is 9.74. This is LDK Solar Co. Ltd. (LDK): The Company, operating through its subsidiaries, the company turns polysilicon into multicrystalline solar wafers, which are used to produce solar cells and solar modules that convert sunlight into energy. It also provides wafer processing services to solar cell makers and sells polysilicon scrap. LDK uses virgin polysilicon and recycled material in its production process; its capacity is about 420 megawatts (MW) annually. Major customers include Canadian Solar, Chinalight Solar, Q-
Cells, Solarfun Power (about 12% of sales), and Solland Solar Energy. The company gets more than twothirds of its sales from Asia/Pacific, primarily China and Taiwan. Industries Where LDK Solar Competes Electronics Semiconductor Equipment & Materials (primary) Electrical Products Power Generation & Storage LDK Solar Co. Ltd. (HQ) Xiaofeng Peng Founder, Chairman, Chief Exec. Officer Hi-Tech Industrial Park Xinyu City, 338032 China Phone: 86 79 0686 0171
http://www.ldksolar.com
PepsiCo, Inc. (PEP) Up-date 5 September 9, 2009 Paul A. Ebeling, Jr. Analyst Today let’s look at PepsiCo, Inc. (PEP), the World's #2 carbonated soft drink maker, from a Technical POV. The overall analysis after Tuesday’s (September 8, 2009) market action is Bullish, in the near term Bullish, mid-term Bullish, and long term Neutral. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News: Slow Economy, Advancing at Warp Speed http://www.businessweek.com/managing/content/sep2009/ca2009098_811074.htm?campaign_id=yhoo
Tuesday’s Market Action
Close 58.28 + .74 Volume 13,031,000/shrs
There are no Gaps open up or down on the Chart: the near term resistance is 59.18, support at 57.96 and the 50 day (EMA) exponential moving average is 56.28. This is PepsiCo, Inc. (PEP): The PepsiCo vs. KO challenge never ends for the world's #2 carbonated softdrink maker. Its soft drinks include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage: Pepsi sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. The company also owns Frito-Lay, the world's #1 snack maker with offerings such as corn chips (Doritos, Fritos) and potato chips (Lay's, Ruffles). Its Quaker Foods division offers breakfast cereals (Life), pasta
(Pasta Roni), rice (Rice-A-Roni), and side dishes (Near East). A true global giant, Pepsi's products are available in some 200 countries. The Competitive Landscape Demand for non-alcoholic beverages is driven by consumer tastes and demographics. The profitability of individual companies depends on effective marketing. Large manufacturers have economies of scale in production and distribution, with average annual revenue per production worker close to US$1MM. Small companies can compete by producing new products, catering to local tastes, or selling at lower prices. Beverage Manufacture and Bottling Industry Forecast
The output of US soft drinks and ice manufacturing is forecast to grow at an annual compounded rate of 4.9% between 2008 and 2013. PepsiCo, Inc. (HQ) Chairman and CEO Indra K. Nooyi 700 Anderson Hill Rd. Purchase, NY 10577-1444 United States Phone: 914-253-2000 Fax: 914-253-2070 http://www.pepsico.com
PepsiCo Subsidiaries Frito-Lay North America The Gatorade Company Naked Juice Company
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 “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.