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September 25th, 2009 Issue
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A Week of Volatility as Buffet Says
Recession is Over
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Earlier this week stocks again were pushed
to one year highs as the market continued
its rally. Markets closed Thursday down for
the second day in a row as a surprising
housing report showed a decline in home
sales last month. The report breaks a 4
month streak of increases with a 2.7% dip in
August. According to the Labor Department
there were 530,000 initial unemployment
claims filed in the week ending Sept. 19,
down 21,000 from the previous week and
6,138,000 people filed continuing claims in
the week ended Sept. 12. Both numbers are
down for the third consecutive week.
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 The
market is recovering from historic lows, but
volatility still reigns supreme. INW has
uncovered 10 Mutual Funds specificaly
designed to profit in 2009.
Countless hours of research has produced
these 10 Blockbuster Mutual Funds that you
should BUY TODAY.
Follow this link to access INW's latest
report. Don't touch your brokerage account
without reading this first!
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| Warren Buffet joined the chorus this
week of experts that say the recession is
over. That may be true, but there are still
economic indicators that show that the
recovery may slower than expected. So we
remain cautious and our Bull recommendations
are still based on companies that have low
debt, strong cash flow, will enjoy a nice
lift as the economy recovers, but will also
be ok in continued turmoil. Our Bullish pick
for this week fits that bill and has a
decent dividend to help us sleep better at
night. The Bearish pick for this week is a
company that has the worst numbers in a list
of companies that might fail, is in a sector
know for bankruptcy and is up over 100%
recently. It’s a real nightmare waiting to
happen. |
 Koninklijke
Philips Electronics (PHG) - A
true global giant, Phillip's management
has proven to have foresight with their
move to LED lighting and their advance
in medical technology. The balance sheet
is strong and although we like the
company right now at a $24.14 price, we
are targeting this European blue chip at
$23.00 if we see a pullback in the
markets. Their investment in emerging
markets (27 percent in 2009 over 2008)
is paying off as it should rise from 1/3
to an estimated 1/2 in 2015. The move
for energy conservation around the world
coupled with the ease to buy and replace
the incandescent bulb with the LED bulb
makes this an attractive long term
investment. Don't forget it pays a nice
dividend too.
Full Story
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AMR Corp (AMR) - The company's
current debt is double their book value
plus their TTM Net Income, not a good
sign. The stock price is up over 100% in
the last three months on news of its
last refinance. Although they have cut
many unprofitable routes from their
schedule, the airline sector has too
many better managed companies to support
long term profitability. Also, in 2010
AMR is looking at significant pension
obligations that will cut whatever
profits are made. Out of the 6 companies
in the article we include with this
review, this company seems the most
likely to see a bankruptcy in the
future.
Full Story
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September 18th, 2009 Issue
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Markets Hit a Year High as Rally Continues
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U.S. stocks kept climbing this week to 1-yr
highs midweek on continued optimism about
the economy. Thursday brought new reports
showing that a recovery is underway, but the
response from investors was more muted with
worries that the market is already
overbought and a pull back is on its way.
There were 545,000 initial jobless claims
filed in the week ending Sept. 12, down
12,000 from the previous week, according to
the Labor Department. Americans are still
feeling the continued affects of the
recession as shown by a CNN poll released
this week, 86% still believe we are in a
recession while only 13% say the economic
downturn has ended.
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The
market is recovering from historic lows, but
volatility still reigns supreme. INW has
uncovered 10 Mutual Funds specificaly
designed to profit in 2009.
Countless hours of research has produced
these 10 Blockbuster Mutual Funds that you
should BUY TODAY.
Follow this link to access INW's latest
report. Don't touch your brokerage account
without reading this first!
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| This week we are looking at the retail
sector. The current rally has been lifting
all ships, but retail has not enjoyed the
same surge and we see a good opportunity
with some companies that will enjoy a
continuous lift if we are truly coming out
of this recession but also have less risk if
we aren’t. Our Bearish pick is also a retail
pick but unlike this week’s Bullish pick,
their main product is not a necessity, their
outlook is flat at best and seems to be an
overbought stock currently. |
Wal-Mart
Stores (WMT) - Retailers have
not shown the recovery that the some of
the other sectors are experiencing, even
as the economy shows signs of recovery
and Fed Chairman Ben Bernanke stating
the recession is likely over. Wal-Mart
is not just a retailer, it’s not high
end retailer relying on expendable
income to survive. Wal-Mart still
represents savings and value to most
Americans and with their mail-delivery
drug service going nationwide, it’s
easier to see this company as a safer
investment than most retailers, when
considering a sector that has yet to
catch up to the recovery.
Full Story
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Bebe Stores (BEBE) - Unlike our
Bullish pick this week, Bebe does
require some expendable income. Their
clothes are pricier than most of its
competitors like, New York and Company
and French Connection. Not only is this
company’s stock price overbought against
it’s sector, its up 62% in the last six
months, trading at 95 times forward
earnings. Two weeks ago Bebe reported
that it will post a first quarter loss
and their YTD numbers are horrible.
Full Story
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September 11th, 2009 Issue
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Short Week Sees Gains Everyday as Confidence
Grows
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Markets have been up every day this week,
and the surge continued on Thursday after a
Federal Reserve report added further
indications that the economy is stabilizing.
The S&P 500 and Nasdaq both approached their
highest levels for the year on news that
initial jobless claims declined last week.
There were 550,000 initial jobless claims
filed in the week ending Sept. 5, down
26,000 from a revised 576,000 the previous
week. Gold prices surged past the
$1,000-an-ounce mark Tuesday and oil prices
posted their biggest gain in almost three
weeks as the dollar weakened.
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The
market is recovering from historic lows, but
volatility still reigns supreme. INW has
uncovered 10 Mutual Funds specificaly
designed to profit in 2009.
Countless hours of research has produced
these 10 Blockbuster Mutual Funds that you
should BUY TODAY.
Follow this link to access INW's latest
report. Don't touch your brokerage account
without reading this first!
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With the market potentially starting
another rally this week, finding good
companies to buy at bargain prices is
getting hard. So we rolled up our sleaves,
did our homework and found a company that
has an undeniable growth streak, is run by a
smart management team, is not a 52 week high
and has a nice cash flow. The company has a
nice short and long term outlook and is even
under $10 per share right now.
Our Bear pick is in the car rental business.
The business travel industry continues to
slow as companies look for ways to save
money and our Bear pick is right in the
middle of it. The stock price has seen a
very nice recovery since March based on
better than expected profits the last
quarter, but the economy is far from
recovered. Simply put, this stock is
currently overbought and we can't see
anything but a pullback coming. |
SmartBalance
(SMBL) - If you've seen them in
the supermarket, you may have noticed
that they are adding new products to
their line of spreads. The surprise is
that SmartBalance has been able to
continually increase its market share
even during a time when everyone is
buying the cheaper generic brands. The
company outsources most of its
manufacturing, so its costs are
controllable and it runs lean.
SmartBalance may also be buyout target
for some of the big boys in the sector,
like Heinz or Kraft.
Full Story
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Hertz Global (HTZ) - Hertz was
one of the most beaten up stocks back in
March when everyone was looking to get
out of retail and travel related stocks.
It's up over 360% since then, it just
hit a 52 week high at 11.99 and the
outlook for the company doesn't look
that good. With the ZipCar business
growing by leaps and bounds in urban
areas, this company looks like a bad
investment to us both short and long
term. Hertz's recent run is a classic
speculation surge; any investor taking
the time to look at the numbers would be
hesitant to buy it.
Full Story
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Copyright © 2009 InvestingNewsWeekly.com
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September 4th, 2009 Issue
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Wall Street's Sixth Month Rally in Danger?
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Wall Street was volatile this week as
investors worried that a weak job market
will trip up a recovery in the economy.
Stocks traded in a tight range but were
essentially flat midweek after the Dow Jones
industrial average tumbled 186 points
Tuesday on renewed worries about banks and
concerns that a six-month rally of more than
50 percent has run its course. Initial
claims for state unemployment insurance
benefits fell 4,000 to a seasonally adjusted
570,000 in the week ending Aug. 29 from an
upwardly revised 574,000 the prior week.
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|
 The
market is recovering from historic lows, but
volatility still reigns supreme. INW has
uncovered 10 Mutual Funds specificaly
designed to profit in 2009.
Countless hours of research has produced
these 10 Blockbuster Mutual Funds that you
should BUY TODAY.
Follow this link to access INW's latest
report. Don't touch your brokerage account
without reading this first!
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| This week we are looking at an airline.
That’s right, an American airline company
and not for our Bear pick either. This
company warrants our recommendation through
its smart, responsible growth and attention
to customer satisfaction. It is not without
hesitation that we would choose to pick an
airline, but the more you look at their
numbers and see the innovative approach
towards growth, the more you feel like you
are investing in a solid industry leader
that is profitable in a very tough
environment for airlines. Our Bearish pick
is a true American disaster story that
investors are looking to make short term
money on with no new relevant information
other than it's in a rally. That is a very
dangerous place to be. |
JetBlue
(JBLU) - Since we first started
reviewing stocks, we have always been
very careful about the airline industry
in general. It’s a tough business where
profit margins are tight; fuel costs and
economic downturns can bankrupt an
airline that looked solid yesterday.
That being said, JetBlue stands apart in
this industry and has managed to turn
profits as its competitors post billion
dollar losses. They recently promoted a
$599 All-You-Can-Jet pass that allows
unlimited travel between Sept. 8 and
Oct. 8. Showing they are innovative and
not content with their current success.
They have great customer communication
through Twitter and Facebook and have
topped J.D. Power and Associates best
customer service 5 years in a row.
Full Story
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American International Group (AIG)
- AIG has seen a nice rally in its stock
price this month up over 150%. The new
CEO, Hank Greenberg has said all the
right things, painting the long term
future of the company in bight colors.
The problem is that the company's
financials are complicated and there
isn't much analyst coverage to make a
rational decision. Investors just see a
potential rebounding giant but the truth
is, they couldn't pay back the TARP
funds even if they sold every asset the
company owns. Perhaps investors didn't
notice the 1 to 20 reverse stock split.
Full Story
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Copyright © 2009 InvestingNewsWeekly.com
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The Wall Street Rally Continues
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Investors hoping to see a continuation of
last week’s rebound into this week must be
happy as gains were seen every day. Thursday
threatened to stop the trend, but a late day
surge by investors kept the 7 day win streak
going. The session all but guarantees a
positive finish to the summer rally as
Thursday’s ascent was broad-based, but
financial stocks garnered the most support
while the tech sector lagged. Positive news
included the reported jump in sales of newly
constructed homes in July, hitting their
highest level since last September. Other
data showed weekly jobless claims fell to
570,000 last week from an upwardly revised
580,000 the week prior, still slightly more
than the expected 565,000.
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The market is recovering from historic lows,
but volatility still reigns supreme. INW has
uncovered 10 Mutual Funds specificaly
designed to profit in 2009.
Countless hours of research has produced
these 10 Blockbuster Mutual Funds that you
should BUY TODAY.
Follow this link to access INW's latest
report. Don't touch your brokerage account
without reading this first!
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| This week we are looking at some of the
investment stories and how we can profit
from them. One of the big stories is the
"off and on" release of Boeing's Dreamliner
which is now on again and looks to be real
this time. Buying Boeing this week may not
be the best way to get in so we are looking
at other players that will benefit from the
headline and why. Our Bullish pick will
benefit, but it can also stand on its own
and pays a great dividend to boot. Our
Bearish pick, like our other recent Bullish
picks is what we consider overbought. The
markets continue their climb and some
companies that have seen obscene gains have
serious fundamental problems. The newspaper
business is in trouble and there has been no
solution for the loss in circulation and ad
revenue that has been ongoing for years now.
This week's Bearish pick has done an
admirable job staying afloat and even
churning out profits, but like the American
SUV, its future doesn't look good. |
Honeywell
International, Inc. (HON) - We
recommended Boeing as a Bullish pick
just 30 days ago not only because we
believe it’s a strong company but we
felt the much awaited Dreamliner would
be making headlines soon. Well, if you
can't bring yourself to buy Boeing today
after the Dreamliner announcement and
the 9% spike in stock price, then you
should look at Honeywell. Honeywell is a
strong and diversified company, focusing
on aerospace, advanced materials, retail
security and home products. It's not
necessarily a short hold if you are
looking for a sharp rise and it's also a
nice dividend play (3.3%) so you can
sleep easy.
Full Story
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Gannett
Co, Inc. (GCI) - An
international media information company
whose flagship USAToday has managed to
remained profitable, Gannett has been on
a monster surge in the current market
rally. The stock has more than
quadrupled since bottoming out at $1.85
in March. The problems are its debt,
more than 3.5 billion, and a current
movement to short the stock. Not only do
we see this company as being overbought
recently, but it is also in a dying
industry. Gannett has done a great job
to this point cutting expenses and it
has been proactive in the internet
revolution, but it has too much in
newspapers both in the US and in the
United Kingdom. With ad revenue taking a
32% drop and circulation slowing, we
recommend investors take their profits
and walk.
Full Story
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Copyright © 2009 InvestingNewsWeekly.com
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Investors Jittery as Volatility Dominates the
Week
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Stocks started the week with their worst losses since
early July as news of U.S. consumers' confidence last
week spread doubt all around the world. The rest of the
week was up and down as light volume and volatility was
seen every day. A worse than expected jobless report on
Thursday limited what seemed to be a big rally. A report
from the Mortgage Bankers Association said 13% of
Americans are either late on their mortgage payments or
in foreclosure, a record-high number.
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The market is recovering from historic lows, but
volatility still reigns supreme. INW has uncovered 10
Mutual Funds specificaly designed to profit in 2009.
Countless hours of research has produced these 10
Blockbuster Mutual Funds that you should BUY TODAY.
Follow this link to access INW's latest report.
Don't touch your brokerage account without reading this
first!
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| As positioning for this year's best selling video
game platform is gearing up, who will be the winner and
should you invest in that company? We don't think it's
that simple and this week's Bullish pick is a way to
play that industry without buying Sony, Microsoft or
even the only profitable one, Nintendo. Our Bearish pick
is once again a stock that has been on fire since March,
has serious financial questions and is dependent on
consumer confidence and their disposable income. |
GameStop
(GME) - It's been almost exactly a year
since we first recommended GameStop, and although
the company has fallen hard since (yet to fully
recover), we believe this is a good company that
benefits anytime Sony, Microsoft or Nintendo
energize the video game market. That is exactly what
is going on right now. Sony slashed its Playstation
3 price by $100 in preparation for the upcoming
holiday season, we expect the other two platform
makers to follow with similar promotions. All of
which mean sales of games and accessories will
increase for GameStop.
Full Story
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Las
Vegas Sands Corp. (LVS) - Back in March
there was a stay away from Vegas Casino movement, as
the U.S. economy has backed off the brink and in a
recovery mode, Casino stocks have been recovering,
Las Vegas Sands has more than quadrupled. We
understand there needed to be a correction on the
overselling, but even investors bullish on this
stock think it's due for a drop after such a drastic
recovery.
Full Story
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Copyright © 2009 InvestingNewsWeekly.com
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Investors Ready for a Drop After Strong Rally
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The rally continued early this week with many companies
hitting 52 week highs, but stocks slipped on Thursday,
with investors bailing out of technology and consumer
stocks. Investor jitters concerning disappointing
outlook reports from Cisco and P&G overshadowed any
relief felt by the government's weekly jobless claims
report which showed a surprising drop. 550,000 initial
jobless claims were filed in the week ending Aug. 1,
down 38,000 from a revised 588,000 the previous week,
according to the Labor Department's weekly report. The
number of people requesting on-going benefits rose,
confirming that even as job losses continue to lessen,
job creation is not rising.
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The market is recovering from historic lows, but
volatility still reigns supreme. INW has uncovered 10
Mutual Funds specificaly designed to profit in 2009.
Countless hours of research has produced these 10
Blockbuster Mutual Funds that you should BUY TODAY.
Follow this link to access INW's latest report.
Don't touch your brokerage account without reading this
first!
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| The markets are on a real rally and it seems like a
pull back is coming. Is the economic turnaround
underway? More signs are pointing to yes, but the way
that stocks are surging it looks like investors are
building in more than just a recovery into expectations.
The way we see it, value is hard to find and now is a
time to stick to buying companies that have real
products, good management and a potential for growth.
Our Bullish pick has all that and is much closer to
their 52 week low than their 52 week high. Our Bear pick
is a tech company that is getting thrashed by its
competitors on all sides, and it's managed to disappoint
on estimates even as most companies in its space are
thriving. We don't see a light at the end of this
tunnel, just more darkness. |
Hasbro
(HAS) -Hasbro is not a hidden jewel
anymore. Investors have seen the link between the
success of Marvel's blockbuster comic book inspired
movies and the Hasbro toys they sell. The company's
revenue has fallen, like most retailers, but cash
flow is still strong and delivering a profit of
$0.26 a share was an unexpected surprise. G.I. Joe
opens this week and it's another franchise that will
probably come back with more than a sequel, adding
to Transformers, Xmen, Hulk, Ironman and the rest of
Marvel’s never ending library of titles, all
promising to keep Hasbro making toys. Plus, there is
a nice dividend to bookend the reasons to own this
stock.
Full Story
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Advanced Micro Devices (AMD) - Every time
AMD launched a promising new chip, Intel came along
and topped it. Those were the good old days.
Recently, the company that promised to pose a
serious threat to Intel's market dominance is no
longer keeping step with its mammoth competitor. In
fact, it has increased its debt and looks slow to
cash in on the Netbook market. Earnings and new
product outlook are a concern, but Intel is not
standing still, they have substantially increased
R&D for 2009 and 2010 as well as boosted the
advertising of their current products and overall
image.
Full Story
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Copyright © 2009 InvestingNewsWeekly.com
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| Disclaimer
Investing News Weekly and its affiliated companies and publications
("INW" or "Letters" or "Publications") are not registered as a broker
dealer or investment advisers with the U.S. Securities and Exchange
Commission or any state securities authority. Letters and their
information and content providers make no representations or warranties
of any kind in connection with the subject matter, performance or the
suitability of the information contained in publications for any purpose
and are not liable for the timeliness, accuracy, or completeness of the
information contained herein. The information contained in publications
is provided for general informational purposes, and is not a substitute
for obtaining professional advice from a qualified person, firm or
corporation familiar with your personal circumstances. Please seek the
advice of professionals, as appropriate, regarding the evaluations of
any specific security, report, opinion, advice or other content. INW is
not responsible for any trades placed by the recipients of INW based on
the information included therein. Investment recommendations are not
intended to be construed to be personalized advice, or recommendations
to buy, hold, or sell mentioned securities and readers should consider
their personal situation before making any investment. All opinions
expressed and information and data provided therein are subject to
change without notice. INW, its officers, directors, employees, and/or
associated entities may have positions in and from time to time make
purchases, or sales of the securities discussed or mentioned in INW. INW
shall have no liability for any e-newsletter that is lost, intercepted
or not received by you in a timely manner, or at all, for any reason. |
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Dow Over 9,200 as the Rally Continues
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Wednesday the Federal Reserve released its latest beige
book report detailing economic conditions across the
country, indicating that although the economy is not in
full recovery mode, it is showing signs of stabilizing.
The jobless claims increased, but the good news is that
the 4 week moving average of total individuals on
unemployment is declining, falling to the lowest in 3
months. Stocks rose Thursday, hitting their highest
levels in nearly 9 months, as investors received another
batch of better than expected profit reports.
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The market is recovering from historic lows, but
volatility still reigns supreme. INW has uncovered 10
Mutual Funds specificaly designed to profit in 2009.
Tireless research and smart fundamentals bring you these
10 Blockbuster Mutual Funds that you should BUY TODAY.
Follow this link to access INW's latest report.
Don't touch your brokerage account without reading this
first!
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| This week's Bullish pick was doing fine before the
recession and even through it has had a drop in sales it
should still show growth in 2008. It is the leading
company in its industry but the stock price has not
picked up as Wall St recovers and it pays a near 4%
dividend. We see this as a value opportunity during a
time where similar companies are being overbought. Our
Bearish pick this week is a company that is above its 52
week high and with good reason. It’s shown a 2nd quarter
profit for the first time in a long time. The analysts
are falling over themselves to upgrade this stock as
investors start to jump on the bandwagon. Truly it would
be a good sign for everyone if this American automaker
regains its status and more importantly starts to take
market share worldwide. But this sudden rise looks like
an over reaction right now from the same people that
told you not to touch it with a 10 foot pole just 3
months ago. |
Boeing
(BA) -Boeing is a tricky company to gauge;
it’s tied to the airline industry, which we tend to
stay away from. But at the same time it's a
diversified company that has only one major
competitor and seems to be pulling away. The article
below makes great points for being bullish on the
company, but what we like most is that the stock is
lower than in 1996, but profits have tripled since
that time. The postponement of the much awaited
Dreamliner has limited investor enthusiasm and kept
the stock from rebounding, but the truth is the
company is expected to have double digit growth this
year without it.
Full Story
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Ford (F) - It's a far cry from the numbers
posted last year same quarter, a profit that
exceeded everyone's expectations and a nice surge in
the stock. But, if you look at the numbers behind
this rise in profit, you realize that it didn't come
from an increase in product sales or lower costs or
anything that indicates continuity. Ford isn't
trying to fool anyone; they show the profit as a
shift of debt and one time cuts, and rumors of a
stock offering in 2010 are being ignored as the
stock price passes 52 week highs. We think Ford will
eventually emerge as the leading American automaker
as it gains from the restructured auto-worker union
agreements and pushes out a new line of fuel
efficient cars, but the stock price will first fall
as consumer confidence lags on durable goods.
Full Story
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Copyright © 2009 InvestingNewsWeekly.com
|
|
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| Disclaimer
Investing News Weekly and its affiliated companies and publications
("INW" or "Letters" or "Publications") are not registered as a broker
dealer or investment advisers with the U.S. Securities and Exchange
Commission or any state securities authority. Letters and their
information and content providers make no representations or warranties
of any kind in connection with the subject matter, performance or the
suitability of the information contained in publications for any purpose
and are not liable for the timeliness, accuracy, or completeness of the
information contained herein. The information contained in publications
is provided for general informational purposes, and is not a substitute
for obtaining professional advice from a qualified person, firm or
corporation familiar with your personal circumstances. Please seek the
advice of professionals, as appropriate, regarding the evaluations of
any specific security, report, opinion, advice or other content. INW is
not responsible for any trades placed by the recipients of INW based on
the information included therein. Investment recommendations are not
intended to be construed to be personalized advice, or recommendations
to buy, hold, or sell mentioned securities and readers should consider
their personal situation before making any investment. All opinions
expressed and information and data provided therein are subject to
change without notice. INW, its officers, directors, employees, and/or
associated entities may have positions in and from time to time make
purchases, or sales of the securities discussed or mentioned in INW. INW
shall have no liability for any e-newsletter that is lost, intercepted
or not received by you in a timely manner, or at all, for any reason. |
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How Long Will This Market Rally Last?
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Better than expected performance from different
companies have kept the rally going this week as the Dow
industrials reach 9,000 for the first time since the
start of the year. Apple, Yahoo, Ford and AT&T all
reported higher numbers than expected. That, and a rise
in existing home sales led investors to take money out
of safer options and put it into stocks. Oil also has
seen a sudden rise as it reached $67 a barrel on
Thursday, the highest in two weeks. There were 554,000
initial jobless claims filed in the week ended July 18,
up 30,000 from an upwardly-revised 524,000 the previous
week, the Labor Department said in a weekly report
released Thursday.
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Stock Guru Dennis Slothower Gives You 3 Absolute Steals
to Buy Now!
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This week we are looking at one of those
recession proof companies with a nice dividend that we
like so much, but the main business of this company is
not the reason we recommend it. This is also a green
company that has a growing alternative energy arm which
should start to make serious money. No one is paying
attention to how federal "green" regulations will
positively affect this company’s bottom line. Our
Bearish pick is on a mini rally as it rides the markets
recent surge, but its outlook isn't positive as it
recently has analysts downgrading it and will most
likely see a pull back even if Wall Street continues to
climb.
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Waste
Management (WMI) - Waste Management is
already an industry leader in a recession proof
business (trash collection), the company serves
about 21 million residential, industrial,
commercial, and municipal customers in the United
States and Canada. The company looks to keep growing
and become more efficient as its uses its size to
leverage pricing, but the company also has other
revenue streams that look promising. The companies
recycling business which should benefit from the
rise in commodities will add to its growth in 2009
and its landfills are now producing methane gas,
enough to be considered a serious revenue generator
moving forward.
Full Story
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Harley Davidson (HOG) - 91% drop in profits
reported a few days ago seems to have been forgotten
because Harley Davidson is on a surge. Their main
product is based on discretionary income, something
that is going into mattresses these days and their
once "never enough" inventory is now over following.
Lets not forget that their financial arm will be
hurting the company’s overall numbers, probably into
2010. This is one of stocks we see going into
reverse on any market pullback.
Full Story
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Copyright © 2009 InvestingNewsWeekly.com
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| Disclaimer
Investing News Weekly and its affiliated companies and publications
("INW" or "Letters" or "Publications") are not registered as a broker
dealer or investment advisers with the U.S. Securities and Exchange
Commission or any state securities authority. Letters and their
information and content providers make no representations or warranties
of any kind in connection with the subject matter, performance or the
suitability of the information contained in publications for any purpose
and are not liable for the timeliness, accuracy, or completeness of the
information contained herein. The information contained in publications
is provided for general informational purposes, and is not a substitute
for obtaining professional advice from a qualified person, firm or
corporation familiar with your personal circumstances. Please seek the
advice of professionals, as appropriate, regarding the evaluations of
any specific security, report, opinion, advice or other content. INW is
not responsible for any trades placed by the recipients of INW based on
the information included therein. Investment recommendations are not
intended to be construed to be personalized advice, or recommendations
to buy, hold, or sell mentioned securities and readers should consider
their personal situation before making any investment. All opinions
expressed and information and data provided therein are subject to
change without notice. INW, its officers, directors, employees, and/or
associated entities may have positions in and from time to time make
purchases, or sales of the securities discussed or mentioned in INW. INW
shall have no liability for any e-newsletter that is lost, intercepted
or not received by you in a timely manner, or at all, for any reason. |
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Stocks Move Higher as Goldman and Intel Lead
the Rally
|
It was a week of gains on Wall Street as Tuesday and
Wednesday saw substantial rallies, pushing the DOW above
8,700 and the S&P over 940. But the Nasdaq was the big
winner as the Intel rally boosted the index close to
1,900, its highest number YTD. Intel’s reported profit
and revenue (after market close on Tuesday) dipped from
a year ago, but surpassed forecasts. They also predicted
better revenue growth for the second half of the year
thanks to improved demand for PCs. Initial unemployment
insurance claims fell to the lowest level in 6 months,
according to a government report on Thursday, but the
news was received with caution as the number seemed to
have more to do with the timing of the auto industry's
job cuts than a sudden turn in economic confidence.
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Stock Guru Dennis Slothower Gives You 3 Absolute Steals
to Buy Now!
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This week we are going to recommend a
company that is both a dividend stock and a play on the
ageing "boomer" population. It’s a solid company that
has a long history of boosting its payouts and being
profitable, even this year. The sector has fallen on
regulations, litigation and patent issues but our pick
should be a leader as it will eventually comes back.
Our Bearish pick is a company we love, but it has become
too expensive as the tech sector has had a tremendous
rally. It's no doubt a market leader, a tech bell
weather and as close as you come to a monopoly in
today's economy, but short term we see a pull back.
|
Abbott
Laboratories (ABT) - Pharmaceutical
companies have been beaten down lately and Abbott
has not been immune. The company is in much better
shape than its competitors as it is both well
diversified and specifically suited to profit from
the aging population. Its rheumatoid arthritis
medication, Humira is the leading prescription for
the disease and its patent protected till 2016. It
also is a player in Lasik eye surgery equipment;
glucose monitors for diabetics and produces the top
drug-delivery stent, used to unblock coronary
arteries. Abbott is a solid performer with current
P/E of 13 and it routinely invests heavily into R&D.
Full Story
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Google (GOOG) - Google is an advertising
monster. As an internet company that deals with
online advertising, we recognize its power and
potential and it’s not easy to make a call like
this. The truth is that Google has always been
expensive for its P/E and forward earnings only look
unrealistic until you look at its track record of
beating predictions quarter after quarter. The
downturn in the economy has affected its bottom line
and as the rally started, Google's stock price is
approaching pre crash highs rather quickly. This
recommendation is based on the assumption that the
stock price either rises or stays above $430 after
its earnings report on Thursday.
Full Story
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Copyright © 2009 InvestingNewsWeekly.com
|
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| Disclaimer
Investing News Weekly and its affiliated companies and publications
("INW" or "Letters" or "Publications") are not registered as a broker
dealer or investment advisers with the U.S. Securities and Exchange
Commission or any state securities authority. Letters and their
information and content providers make no representations or warranties
of any kind in connection with the subject matter, performance or the
suitability of the information contained in publications for any purpose
and are not liable for the timeliness, accuracy, or completeness of the
information contained herein. The information contained in publications
is provided for general informational purposes, and is not a substitute
for obtaining professional advice from a qualified person, firm or
corporation familiar with your personal circumstances. Please seek the
advice of professionals, as appropriate, regarding the evaluations of
any specific security, report, opinion, advice or other content. INW is
not responsible for any trades placed by the recipients of INW based on
the information included therein. Investment recommendations are not
intended to be construed to be personalized advice, or recommendations
to buy, hold, or sell mentioned securities and readers should consider
their personal situation before making any investment. All opinions
expressed and information and data provided therein are subject to
change without notice. INW, its officers, directors, employees, and/or
associated entities may have positions in and from time to time make
purchases, or sales of the securities discussed or mentioned in INW. INW
shall have no liability for any e-newsletter that is lost, intercepted
or not received by you in a timely manner, or at all, for any reason. |
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Investors Nervous as Negative Economic Numbers Persist
|
Fears of a continued and even deepening recession caused
stocks to plunge on Tuesday, falling to 2 month lows.
The sudden drop was felt most in the commodities
markets, with oil nearing the $60/barrel range. Stocks
have been slowly going lower since the 2nd week of June
as the 3 month stock market rally has hit a wall.
Wednesday started out with another drop in stocks until
Wall Street erased most of its losses by end of day, as
investors set aside concerns about the economy to gear
up for the quarterly reporting period. The initial
jobless claims came in lower than expected for the week,
calming investors for at least a day.
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Stock Guru Dennis Slothower Gives You 3 Absolute Steals
to Buy Now!
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This week we have seen a rush towards
safer stocks as investors seek protection from the
volatility of market swings as the Dow falls closer to
8,000. Although some of the commodity stocks (oil) that
we’ve recommended the last few months are attractive
during the overreaction, we also recognize that it would
be wise to diversify into solid blue chips and that’s
exactly what our Bullish pick is. Our Bearish pick is a
company that has had a tremendous ride the last 3
months, but we think it’s more likely to drop than rise
in the short term and we also don’t like its long term
outlook or the 90% dividend cut.
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HJ
Heinz Company (HNZ) - This week we have
seen a rush towards safer stocks as investors seek
protection from the volatility of market swings as
the Dow falls closer to 8,000. Although some of the
commodity stocks (oil) that we’ve recommended the
last few months are attractive during the
overreaction, we also recognize that it would be
wise to diversify into solid blue chips and that’s
exactly what our Bullish pick is. Our Bearish pick
is a company that has had a tremendous ride the last
3 months, but we think it’s more likely to drop than
rise in the short term and we also don’t like its
long term outlook or the 90% dividend cut.
Full Story
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International Paper (IP) - The last 3
months have seen a nice rally that has carried up
many companies. IP is one of those whose incredible
rise makes us think that it’s not a company that can
sustain such an upward swing and most likely will
drop in the short term. They have surpassed
expectations in profit mainly due to a tax credit
for a chemical process they were already doing.
Although the company has reported that demand for
their product will increase as China increases their
consumption, the truth is that the “paperless”
office and the move towards other green initiatives
is hurting the bottom line.
Full Story
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Copyright © 2009 InvestingNewsWeekly.com
|
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| Disclaimer
Investing News Weekly and its affiliated companies and publications
("INW" or "Letters" or "Publications") are not registered as a broker
dealer or investment advisers with the U.S. Securities and Exchange
Commission or any state securities authority. Letters and their
information and content providers make no representations or warranties
of any kind in connection with the subject matter, performance or the
suitability of the information contained in publications for any purpose
and are not liable for the timeliness, accuracy, or completeness of the
information contained herein. The information contained in publications
is provided for general informational purposes, and is not a substitute
for obtaining professional advice from a qualified person, firm or
corporation familiar with your personal circumstances. Please seek the
advice of professionals, as appropriate, regarding the evaluations of
any specific security, report, opinion, advice or other content. INW is
not responsible for any trades placed by the recipients of INW based on
the information included therein. Investment recommendations are not
intended to be construed to be personalized advice, or recommendations
to buy, hold, or sell mentioned securities and readers should consider
their personal situation before making any investment. All opinions
expressed and information and data provided therein are subject to
change without notice. INW, its officers, directors, employees, and/or
associated entities may have positions in and from time to time make
purchases, or sales of the securities discussed or mentioned in INW. INW
shall have no liability for any e-newsletter that is lost, intercepted
or not received by you in a timely manner, or at all, for any reason. |
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Short Week Ends on Market Drop
|
In a short week with limited business stories, the most
noticeable headline for investors was the employment
report released on Thursday. The June employment report
from the Labor Department showed a net loss of 467,000
jobs in June, making June the first month in four in
which job losses rose from the previous month. The news
sent stocks lower, closing out the week on a negative
note. The dollar rose against the euro after the report.
Oil futures extended their slide, falling $1.60 a
barrel, nearing the $65 mark.
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Get the Big Idea within today’s Financial News. Try it
for Free.
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| This week for our Bullish pick we are looking at
another energy company that has been a reliable
performer, whose management has proven it can cope with
all economic climates (including this one). The balance
sheet on this company is strong and it has an
unbelievable history of dividend payouts. Our Bearish
pick for this week has been on our "bearish" radar ever
since we looked at smart phones a few issues ago. At the
time we were evaluating the awaited Pre from Palm and
the affect on the smart phone industry. Although we did
end up picking Palm as our bearish pick for that issue,
it seems like the real loser will be this week's
selection. |
Emerson
Electric (EMR) - This is not the sexiest
energy company, but it's a safe company with a
predictable business that should remain stable
during times of increasing volatility. They have a
history of growing dividends, increasing it for the
past 52 years. Long-term EMR should see continued
organic revenue growth from international sales, new
product introductions and bolt-on acquisitions. The
company has a good debt to cash ratio and has been
beaten down in the past week, making this a good
time for a buy recommendation.
Full Story
|
Research In Motion (RIMM) - One thing that
stuck out to us in our research a few months ago on
Palm's Pre, is that although we don't believe that
it would be replacing the iPhone as the "must have"
communication gadget, the Pre might be a serious
concern to RIMM and their smart phone line. The
iPhone's popularity among consumers, the good review
from Palm's Pre, along with the new Nokia messaging
phone make one thing clear - either RIMM market
share or profits are going to take a hit.
Full Story
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Copyright © 2009 InvestingNewsWeekly.com
|
|
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| Disclaimer
Investing News Weekly and its affiliated companies and publications
("INW" or "Letters" or "Publications") are not registered as a broker
dealer or investment advisers with the U.S. Securities and Exchange
Commission or any state securities authority. Letters and their
information and content providers make no representations or warranties
of any kind in connection with the subject matter, performance or the
suitability of the information contained in publications for any purpose
and are not liable for the timeliness, accuracy, or completeness of the
information contained herein. The information contained in publications
is provided for general informational purposes, and is not a substitute
for obtaining professional advice from a qualified person, firm or
corporation familiar with your personal circumstances. Please seek the
advice of professionals, as appropriate, regarding the evaluations of
any specific security, report, opinion, advice or other content. INW is
not responsible for any trades placed by the recipients of INW based on
the information included therein. Investment recommendations are not
intended to be construed to be personalized advice, or recommendations
to buy, hold, or sell mentioned securities and readers should consider
their personal situation before making any investment. All opinions
expressed and information and data provided therein are subject to
change without notice. INW, its officers, directors, employees, and/or
associated entities may have positions in and from time to time make
purchases, or sales of the securities discussed or mentioned in INW. INW
shall have no liability for any e-newsletter that is lost, intercepted
or not received by you in a timely manner, or at all, for any reason. |
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Unemployment Slows But Dow Drops
|
The Dow dropped 187 points early this week as little
company-specific or economic news let bears control
investor sentiment. On Thursday the market rallied on
news that the number of ongoing unemployment claims fell
for the first time since the start of the year. The
number of Americans filing new claims for unemployment
rose slightly last week to 608,000 from a revised
605,000 in the prior week, reported by the Labor
Department. Nationwide gas prices now average $2.679
based on reports from motorist group AAA. Prices have
risen every day since April 29, when the national
average stood at $2.05 a gallon.
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Get the Big Idea within today’s Financial News. Try it
for Free.
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|
This week we are looking at the telecommunication
business. With the new smart phones that are being
released we wanted to see which companies are going to
benefit. What we found is that our Bullish pick is not
only very strong in wireless cell phone service, but a
growing power in cable. Its growth in the cable business
in undeniable and consumer satisfaction indicates that
it will soon overtake the existing cable companies. Our
Bear pick comes from the healthcare industry. President
Obama will be giving a “State of Healthcare” speech in a
hometown environment on national TV. We believe this is
aimed at pushing a Public Option system that was thought
to not have enough support to pass. With 85% of
Americans now favorable to the Public Option, it has
become a real possibility. What it will do for the
private healthcare providers is too soon to tell, but
investors are likely to start selling these companies.
|
Verizon
(VZ) - Verizon is considered the best
network for cell phone service, better than ATT&T
and Sprint. The only knock thus far has been their
selection of cell phones, that's about to change
with the new line of models due out summer and if
rumors of a deal with Apple for their Iphone are
true it would mean a serious surge in growth. This
company has shown 15% growing earnings during the
worse of the recession so far and it's Fios network
is expanding faster than analysts expected. Did I
mention it has a 6.2% dividend?
Full Story
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Humana (HUM) - Humana is not a bad company
to invest in if you look at the numbers, but this
isn't about the numbers. It's about investors'
outlook on the industry and concerns on the clarity
of who will benefit. The White House Health Care
Special on ABC next week will most likely cause a
drop in companies that currently provide private
health care service, as investors will no doubt view
this as negatively impacting profits.
Full Story
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Copyright © 2009 InvestingNewsWeekly.com
|
|
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| Disclaimer
Investing News Weekly and its affiliated companies and publications
("INW" or "Letters" or "Publications") are not registered as a broker
dealer or investment advisers with the U.S. Securities and Exchange
Commission or any state securities authority. Letters and their
information and content providers make no representations or warranties
of any kind in connection with the subject matter, performance or the
suitability of the information contained in publications for any purpose
and are not liable for the timeliness, accuracy, or completeness of the
information contained herein. The information contained in publications
is provided for general informational purposes, and is not a substitute
for obtaining professional advice from a qualified person, firm or
corporation familiar with your personal circumstances. Please seek the
advice of professionals, as appropriate, regarding the evaluations of
any specific security, report, opinion, advice or other content. INW is
not responsible for any trades placed by the recipients of INW based on
the information included therein. Investment recommendations are not
intended to be construed to be personalized advice, or recommendations
to buy, hold, or sell mentioned securities and readers should consider
their personal situation before making any investment. All opinions
expressed and information and data provided therein are subject to
change without notice. INW, its officers, directors, employees, and/or
associated entities may have positions in and from time to time make
purchases, or sales of the securities discussed or mentioned in INW. INW
shall have no liability for any e-newsletter that is lost, intercepted
or not received by you in a timely manner, or at all, for any reason. |
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Dow Jones Turns Positive
|
The Dow Jones moved into positive territory for 2009,
after a strong retail sales report and a dip in jobless
claims raised hopes that the pace of the recession is
slowing. Although the retail sales reports do look
positive, economist point to increased in gasoline and
car sales as the main factors in the overall rise, both
are usually stripped out for a more realistic look at
consumer health. There were 601,000 initial jobless
claims filed in the week ended June 6, down 24,000 from
625,000 the previous week, based on a report by the
Labor Department.
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Get the Big Idea within today’s Financial News. Try it
for Free.
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| This week we are looking at the healthcare industry
and how it’s being affected by the restructuring ideas
of Washington D.C. Investors are buying into reports
that the reforms to the healthcare industry may be
disastrous for the pharmaceutical industry, but we have
a feeling that the new "healthcare for everyone" idea
may actually be beneficial to drug makers as more access
will mean more usage and lower margins will be eclipsed
by volume. Our Bearish pick is a semiconductor giant
that has been all the talk as it has given an upbeat
outlook and investors are jumping in to get in on the
recovery. We think that the good expectations are
already built in and then some, making this popular pick
a not so cheap investment. |
Abbott
Laboratories (ABT) - Abbott is a solid drug
company that seems to have been beaten down for no
good reason. Unlike its competitors, Abbott doesn't
have any of their main drug patents near expiration.
Abbott's diabetes department and its new medical
optics division will be solid foundation for
continued growth and profit. A strong balance sheet
and a strong dividend that has a history of
increasing make this company a bargain with not a
lot of risk.
Full Story
|
Texas Instruments Inc (TXN) - The chip
maker hiked its profit and sales estimates for the
year sending a signal to investors that the
semiconductor sector might be rebounding and so far
the stock has been surging. Despite the good news
and the articles on how Texas Instruments is leading
the rebound for its industry, the chance to truly
profit from TI has passed as everyone jumps on board
and chases the herd. If you want to get into this
sector it's better to do it with a smaller leaner
chipmaker that is likely to be more competitive and
have more growth.
Full Story
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Copyright © 2009 InvestingNewsWeekly.com
|
|
|
| Disclaimer
Investing News Weekly and its affiliated companies and publications
("INW" or "Letters" or "Publications") are not registered as a broker
dealer or investment advisers with the U.S. Securities and Exchange
Commission or any state securities authority. Letters and their
information and content providers make no representations or warranties
of any kind in connection with the subject matter, performance or the
suitability of the information contained in publications for any purpose
and are not liable for the timeliness, accuracy, or completeness of the
information contained herein. The information contained in publications
is provided for general informational purposes, and is not a substitute
for obtaining professional advice from a qualified person, firm or
corporation familiar with your personal circumstances. Please seek the
advice of professionals, as appropriate, regarding the evaluations of
any specific security, report, opinion, advice or other content. INW is
not responsible for any trades placed by the recipients of INW based on
the information included therein. Investment recommendations are not
intended to be construed to be personalized advice, or recommendations
to buy, hold, or sell mentioned securities and readers should consider
their personal situation before making any investment. All opinions
expressed and information and data provided therein are subject to
change without notice. INW, its officers, directors, employees, and/or
associated entities may have positions in and from time to time make
purchases, or sales of the securities discussed or mentioned in INW. INW
shall have no liability for any e-newsletter that is lost, intercepted
or not received by you in a timely manner, or at all, for any reason. |
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Volatility High in Short Week on Wall Street
|
Markets were up and down all week as investors got mixed
news on economic indicators and oil surged to $65 a
barrel for the first time this year. US manufacturing is
expected to fall 12% this year, showing how the
recession is hitting factories particularly hard so far.
The number of unemployment starts declined by 13,000 to
623,000 last week, while the number of people collecting
state unemployment benefits rose by 110,000 to a record
6.79 million the week earlier, the Labor Department
reported Thursday.
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Get the Big Idea within today’s Financial News. Try it
for Free.
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| We have recommended that our subscribers keep on eye
on oil and start to buy some of the oil producers like
Exxon, Chevron and BP. As we thought oil is rising as we
get closer to the summer months and it might break the
$70 mark in June. Our Bullish pick is going to directly
profit from the slow rise of oil and has already posted
better than expected performance. Our Bearish pick
reminds us of the old dot com days where popular tech
companies with questionable business models surged only
to be overtaken by hungrier smarter versions. |
Diamond
Offshore Drilling, Inc (DO) - It was a
close call between Diamond and TransOceanic, but we
like the outlook for Diamond better as well as the
dividend. Earlier this year their first-quarter
profit rose 20 percent on rising contract drilling
sales, beating Wall Street expectations. Brazil’s
oil discoveries in the deep waters of the Santos
Basin will keep Diamond busy and as oil rises in
price, the price of their contracts will also rise.
Full Story
|
Open Table (OPEN) - Even during a booming
economy we would be hesitant to recommend Open Table
as a buy, but this IPO reminds us of the old tech
IPOs of the 90s. A new web service that is well
known goes public and show a nice surge on the first
week, only to come back to reality within the year.
Open Table already seem overvalued at 50 times
forward earnings and this business model is
vulnerable to competition (see Monster.com or
MySpace.com). We've seen too many "hot" IPO
companies like fall victim to management focusing on
stock price and take their eye off growth and
production the year after going public, proceed with
caution.
Full Story
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Copyright © 2009 InvestingNewsWeekly.com
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Investors Search For Signs, But Stability in the
Economy Not Clear
|
The week started win a bang as the housing sector lifted
the markets with good news from Lowes earnings outlook.
Investor optimism was short-lived as Germany, Japan and
Mexico reported double digit drops in their economies.
On the domestic front, the Fed expects the gross
domestic product to post a drop of between 1.3% and 2%
this year. It had previously expected only a 0.5% to
1.3% decline.
Oil prices sank Thursday, retreating from six-month
highs reached in the previous session, as all three
major U.S. stock indexes fell hard and the U.S. dollar
gained ground. The number of people filing for
first-time jobless benefits totaled 631,000 last week,
slightly more than expected. But those filing claims on
an ongoing basis rose to 6.6 million, an all-time high.
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Get the Big Idea within today’s Financial News. Try it
for Free.
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| This week we bring you a bullish pick that we
consider a long term hold. Its the kind of stock that
should make you money at a nice and steady pace, if
anything, based on its dividend alone. We list its
prodocuts, and its outlook based on our ageing
baby-boomers. For our Bearish pick we had to do a little
research in the smartphone market and we see a company
hoping its new product will be its saving grace. The
stock has been on a sharp rise bases on its new
smartphone but the conditions for its release are not
the best even if it's a homerun product. Too many things
have to come into place and we see it already built into
the stock price. |
Bristol
Myers Squibb (BMY) - Bristol Myers is set
to have continued growth as the baby boomer
generation is more and more in need of medications.
It has a nice dividend that pays 6% and it’s a
cheaper stock than most of it rivals. Recently, the
anti-drug company policies that are being talked
about in Washington have beaten down the price of
drug related stocks, but the push for more coverage
for more people will actually help Bristol Myers
long term. The expiration of patents on Plavix and
Avapro in 2011 and 2012 should be offset by
increasing sales of Sprycel (cancer), Orencia
(rheumatoid arthritis) and Reyataz (HIV- Aids).
Full Story
|
Palm Inc (PALM) - Palm as a company seems
to be in trouble but the stock is up huge since
December. The reason is the awaited release of its
new smart phone the Palm Pre, it is suppose to
invigorate the company, taking the smart phone
market by storm. The problem is that it’s not an
IPhone or Blackberry killer and that’s what it’s
gonna take to take market-share away from top dogs
in this category. At the same time, the Sprint
network better be as good as promised and the phone
(in its first generation) can’t afford to have major
bugs. This is a tough assignment in a rough economy,
where people are cutting down on luxury products.
Full Story
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Copyright © 2009 InvestingNewsWeekly.com
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S&P Falls Below 900 This
Week
|
This week the Commerce Department reported retail sales
fell 0.4% last month when economists had expected no
change. The markets did not react favorably, falling
more than 2% amd giving back most of this month’s gains.
Thursday, the Labor Department reported that new claims
for unemployment jumped to 637,000, from a revised
605,000 the previous week. The negative news in the
unemployment numbers did not see a continued drop in the
markets as investors seemed to think the previous days
drop was enough. In energy, oil prices increased
Thursday, crude traded up 62 cents to $58.64.
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Get the Big Idea within today’s
Financial News. Try it for Free.
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| This week we learned that consumer confidence is
still low, lower than expected. The retail numbers
released this week surprised investors and speculators
that forecasted a recession recovery was underway. The
news is no real surprise if you've been reading our
newsletter, unemployment numbers are still at an
all-time high and credit is tight. So, we are
recommending a strong recession resistant stock for our
Bullish pick this week. Our Bearish pick also takes into
consideration the prospect of continued consumer
confidence problems. Once a leading electronics
producer, this company now wields too many products and
it doesn’t seem to be profiting from any of them. |
Kraft
(KFT) - Kraft is a safety pick in this
uncertain economy. As this week's numbers show, we
aren't out of the recession woods yet and it's
likely that the summer will be seeing more bad
retail numbers. Kraft is not going to make you an
overnight millionaire, but its value at $25 with its
4.7% dividend and stable product lines. If it makes
you feel better, Warren Buffet bought this stock at
$33, so for once you can say you got a much better
deal than Mr. Buffet.
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Sony (SNE) - Sony was once a “Top 3” name
brand in the TV category. Those days are gone with
Panasonic and Samsung leading in consumer reviews
and Pioneer at the top at the higher end components.
Sony also does not have a lock on the portable music
market as it did in the Walkman days; that’s Apple's
turf now. Its venture into the SLR camera market has
not made the splash they thought when they released
their line of high quality lenses and cameras to
compete with Canon and Nikon. PS3 sales have
improved and it is becoming a favorite among the
24-35 age group, but it still doesn’t show the
profit the unit has been waiting for. Unless this
new management team finds a way to cut costs while
producing some innovative products, it’s hard to see
a positive outlook for Sony.
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Copyright © 2009 InvestingNewsWeekly.com
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Report Cards for 19 Banks Are Finally Here
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The rally continued on Monday as the S&P crossed into
positive territory for the year. It rose 3.4% ahead of
the stress test that are being announced Thursday. Ben
Bernanke said the economy is healing and showing signs
of recovery, and banks could now raise capital on their
own. Initial reports from the government say that 7 of
the big banks must boost their capital a combined $67
billion. Although the number of people on unemployment
is still at the highest rate ever, the last 3 weeks have
seen a slowdown in initial unemployment claims, a sign
that there is a least some stabilization. The labor
department’s report showed that a total of 601,000
people filed initial claims last week, down 34,000 from
the previous week.
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Learn How to Buy Cheap Stocks That Will Bring Big
Profits. Free Report.
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| This week we are looking at the tech sector, it has
been outperforming the S&P and some investors think its
vulnerable as the current rally is about to end with a
sharp drop. We truly don’t see our bull pick falling too
far if there is a drop off, but if it does fall it’s a
good buy to hold long term. Our Bear pick is not going
to be a tech pick; we believe the tech market will
continue to lead the recovery even on a pullback.
Selling off tech stocks doesn't seem wise short term, so
we are turning to a finance stock. We don't expect a
negative report on the stress tests, not because the
banks are healthy, but because the government can't
afford a run on the banks, so a disastrous report even
against 2 or 3 seems unlikely. That means that the
reports may paint a rosier picture than they should and
investors will jump on some of these banks. |
Cisco
Systems (CSCO) - This company has great
upside, already it dominates the data-networking
industry, they absolutely own the switch market and
now they are making servers. Cisco is becoming a one
stop solution for all data management, hardware,
routers and VOIP phones. They have a deep pockets
and little debt, so we are recommending a buy on any
serious pullback.
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Wells Fargo (WFC) - I hate going against
Warren Buffet, but I expect Wells Fargo to jump at
the end of the week because the government's stress
test will falsely shore up investor's confidence in
the banks. At which point I would sell all my banks,
including Wells Fargo. No one really knows what
these banks own; the bad news about the toxic assets
the banks own has not changed. Yes, some banks were
oversold, but they are being overbought right now
and there are much safer ways to make money today.
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Copyright © 2009 InvestingNewsWeekly.com
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Mixed News Leaves Investors in Uncertain Mood
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The Federal Reserve said Wednesday that although the
economy is still declining the rate of decline has
slowed and the outlook is getting better. Jobless claims
fell unexpectedly by 14,000 from revised numbers last
week. The overall number of people on unemployment still
remains at a record high. The combination of those 2
headlines spurred a rally on Thursday, but then the news
of Exxon Mobil's drop in earnings and the confirmation
that Chrysler will be filing for Chapter 11 erased all
gains. A 20% increase in foreclosures was another piece
of negative news that was reported late Thursday.
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Learn our 7 Golden Strategies. Make a Killing with our
Free Report
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This week we are looking at a company
that gives us a cheap alternative to our favorite
weekend entertainment activity during these tough
economic times, staying home and renting a movie. With
its biggest competitor facing the continued negative
sales growth while it continues to show positive growth,
this company should be the eventual winner. Our Bearish
pick is a known name brand and once celebrated stock
that has fallen and investors might be falsely thinking
its time to get on board after it beat expectations this
week and had a nice rally. The problem is that its
product is still high priced and one of the first things
people mention when asked what they are cutting on an
everyday basis to combat the recession. |
NetFlix
(NFLX) - Netflix has been on our radar for
a while and we have been waiting for a pullback to
recommend it. It’s down about 10% over the last 3-4
days and we don’t see it going below $40. What
really make us look at Netflix as a potential long
term buy is the demise of Blockbuster. Anyone that
has used Redbox or Netflix will most likely not go
back to Blockbuster. If Blockbuster goes belly up
which is a real possibility with its negative sales
growth over the past 4 years and its ballooning
debt, Netflix will be the direct beneficiary.
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Starbucks (SBUX) - Starbucks has been
beaten up over the last year and if you were lucky
enough to unload this company from your portfolio,
you might be thinking of picking some up before
everyone else jumps back on. The problem is that the
landscape has changed and although some of its
restructuring and cuts have had a positive affect on
its bottom line, Starbucks faces a market still in
recession and a growing number of competitors that
have also been restructuring to take market share of
the gourmet coffee market.
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Copyright © 2009 InvestingNewsWeekly.com
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