Thursday, January 20, 2011

Are projections for the solar industry too bright?

Am I the only one who is having butterflies about the solar industry?  Is there a market for this renewable energy resource or is it all just smoke and mirrors? Using Barchart I found 4 solar stocks that on average are up over 20% in the last month alone.  The brokerages have fantastic projections, there is very high investor sentiment but my intuition is holding me back from making a recommendation.  Here's what others think, let me hear your opinions.

JKS - Jinkosolar -- a solar product manufacturer with operations based in Jiangxi Province and Zhejiang Province in China. JinkoSolar has built a vertically integrated solar product value chain from recovered silicon materials to solar modules. JinkoSolar's principal products are silicon wafers, solar cells and solar modules which are all along the photovoltaic value chain, with a global network spanning across Europe, North America and Asia.

  • Barchart Trend Spotter (tm) technical buy signal
  • 9 new highs and up 29.13% in the last month
  • Relative Strength Index 64.33% and rising
  • Trades around 28.16 with a 50 day moving average of 24.63
  • Wall Street brokerages have 4 buy, 1 hold and 2 under perform recommendations
  • Revenue projected to increase 177.40% this year and 43.10% next year
  • EPS estimated to increase 1,302.30 this year and increase annually 15.00% for at least 5 years
  • Motley Fool CAPS members vote 75 to 22 and All Stars vote 14 to 8 that the stock will beat the market
SOL - Rensola --   RENESOLA and its subsidiaries are engaged in manufacturing solar wafers in the People's Republic of China. The company's solar wafers are sold to both Chinese and international photovoltaic cell and module manufacturers. The company's customers include some of the leading manufacturers of solar cells and modules, such as JA Solar Co., Ltd., Motech Industries Inc., Solarfun Power Holding Ltd., Suntech Power Co. Ltd. and Topco Technologies Corp.
  • Barchart Trend Spotter (tm) technical buy signal
  • 8 new highs and up 23.40% in the last month
  • Relative Strength Index 55.18%
  • Trades around 10.23 with a 50 day moving average of 9.42
  • Wall Street brokerages have 8 buy and 2 hold recommendations published
  • Revenue projected to increase 131.50% this year, 16.80% next year
  • EPS estimated to increase 324.40% this year, 11.90% next year and 11.67% annually for at least 5 years
  • Motley Fool CAPS members vote 1,103 to 29 and the All Stars vote 297 to 4 that the stock will beat the market
LDK - LDK Solar -- a manufacturer of multicrystalline solar wafers, which are the principal raw material used to produce solar cells. LDK sells multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, the company provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. LDK's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi province in the People's Republic of China. The company's office in the United States is located in Sunnyvale, California.
  • 88% Barchart technical buy signal
  • 5 new highs and up 21.09% in the last month
  • Relative Strength Index 62.40% and rising
  • Trades around 12.72 with a 50 dy moving average of 11.11
  • Wall Street brokerages have published 10 buy, 6 hold and 5 under perform recommendations
  • Revenue projected to increase 111.60% this year and 27.60% next year
  • EPS estimated to increase by 188.10% this year, 19.90% next year and 23.35% annually for the next 5 years
  • Investor sentiment on Motley Fool is high with the CAPS members voting 1,372 to 94 and the All Stars 320 to 33 that the stock will bet the market
TSL - Trina Solar --  currently one of the few private manufactures who has developed a vertically integrated business model from the production of monocrystalline ingots, wafers and cells to the assembly of high quality modules.They are led by an international management team from over 6 different countries with deep solar private industry experience.They has reached long term partnerships with leading technology suppliers in Switzerland, Italy and Germany, which provide the latest technology for Their production facilities in China. These partnerships are another quality guarantee for Their end customers and enable Them to work jointly towards a brighter future.
  • 80% Barchart short term technical buy signal
  • 13 new highs and up 18.66% in the last month
  • Relative Strength Index 65.16% and rising
  • Trades around 27.37 with a 50 day average of 24.35
  • Wall Street brokerages have published 25 buy, 3 hold and 2 under perform recommendations
  • Revenue projected to increase by 104.10% this year and 18.10% next year
  • EPS estimated to increase 100.00% this year, 8.00% next year and 18.98% annually for the next 5 years
  • Investor sentiment on Motley Fool high with the CAPS members voting 1,034 to 186 and the All Stars 267 to 64 that the stock will beat the market.
As I write this post this song keeps ringing in my head:

Everybody's wrong everybody's right
Someone must be wrong when someone else is right
Everybody's wrong everybody's right
You tell me that I'm wrong
Then you tell me that I'm right

Are too many people expecting too much from the solar industry?  Is the industry already over valued?  Should I get on board or hop off?    IS everybody wrong or is everybody right?

Comments please!!!!
Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs.  He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.


Beneficial Mutual makes money the old fashion way.

This morning I added Beneficial Mutual Bancorp (BNCL) to the Barchart Van Meerten Speculative portfolio.  This bank makes money the old fashion way -- they take in deposits and they make loans in the local community markets they are familiar with.  Community banks with strong, local, long term ties should be able to make the most of the recovery in their home local markets.

The Company is a community-based, diversified financial services company providing consumer and commercial banking services. Its principal subsidiary, Beneficial Bank, has served individuals and businesses in the Delaware Valley area for more than 150 years. The Bank is the oldest and largest bank headquartered in Philadelphia, Pennsylvania with 72 offices in the greater Philadelphia and Southern New Jersey regions. Insurance services are offered through Beneficial Insurance Services, LLC and wealth management services are offered through Beneficial Advisors, LLC, both wholly owned subsidiaries of the Bank.

Although the bank is local it is well known nationally.

The stock hit 14 new highs and appreciated 13.99% in the last month earning it a 72% Barchart overall technical buy signal.  The Relative Strength Index is 65.42% and it trades around 9.21 with a 50 day moving average of 8.32.

Wall Street brokerages have this on their buy list of regional banks with 5 buy and 2 hold recommendations published.  They expect revenue to increase by 11.30% this year.   The real story is in next years EPS which is estimated to increase by 387.50% and continue by another 10.00% annually for at least 5 years.

For a small regional bank it's gotten notice by the general investor over on Motley Fool with the CAPS members thinking the stock will beat the market by a vote of 24 to 10 and the All Stars are in agreement 6 to 3.  Fool notes that there have been 3 positive Wall Street columnists articles recently.

If you want to get on board the economic recovery then consider this regional bank who has gained national notice not only by the Wall Street brokerages but the small retail investor as well.


Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs.  He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.

6 Hot Penny Stocks

I found these stocks by screening on Barchart for those OTCBB stocks hitting the most frequent new highs.

Penny stocks are not investments and should be considered to be speculative or pure gambling - Lotto tickets legal in all states.  These are not buy recommendations just something to put on your watch
list and have some fun with.

ENTB - Entest Biomedical

  • 100% Barchart technical buy signal
  • 18 new highs and up 150.00% in the last month
  • Relative Strength Index 91.37% and rising
  • Trades around 3.50 with a 50 day moving average of 1.60
SNRV - Sun River Energy
  • 96% Barchart technical buy signal
  • 17 new highs and up 50.00% in the last month
  • Relative Strength Index 82.71% and rising
  • Trades around 3.60 with a 50 day moving average of 2.44
CHME - China Medicine
  • 60% Barchart short term technical buy signal
  • 16 new highs and up 40.93% in the last month
  • Relative Strength Index 64.23% and rising
  • Trades around 2.07 with a 50 day moving average of 1.80
DYSC - Derycz Scientific
  • 88% Barchart technical buy signal
  • 15 new highs and up 40.93% on the last month
  • Relative Strength Index 76.97% and rising
  • Trades around 3.20 with a 50 day moving average of 2.32
LFVN -- Lifevantage Corp 
  • 88% Barchart technical buy signal
  • 15 new highs and up 100.00% in the last month
  • Relative Strength Index 84.25
  • Trades around .72 with a 50 day moving average of .40
PAMT - Parametric Sound
  • Trading less than 6 month so not rated by Barchart
  • 14 new highs and up 85.71% in the last month
  • Relative Strength Index 80.84
  • Trades around .65 with a 50 day moving average of .37
Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs.  He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.


Barchart Morning call --1/20

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Barchart Morning Call
Overnight Developments
  • Global stocks are trading mixed with the European Euro Stoxx 50 index down -0.30% and March S&Ps off by -1.40 points. The dollar index weakened to its lowest level in 1-3/4 months, which has given most commodities a lift. The British pound strengthened against eh dollar after Dec UK jobless claims unexpectedly fell -4,100 to their lowest level in 21 months, while Nov Spain home sales fell -6.2% y/y, their third month of declines. Greek 10-year government bonds fell, which widened the yield spread with German bunds by 24 bp to 856 bp, after Die Zeit newspaper reported that the German government is considering a plan that would help Greece "restructure" its debt. ECB officials are toning down their threat to raise interest rates, saying financial markets have over-reacted to their change in tone on inflation when ECB Council member Nowotny said that ECB President Trichet's CPI statements were interpreted in a "one-sided-way" and that he "sees present rates adequate" for the "foreseeable future."
  • The Asian stock markets today closed mostly higher with Japan up +0.36%, Hong Kong +1.10%, China +2.26%, Taiwan +1.09%, Australia +0.68%, Singapore -0.23%, South Korea +0.96%, India -0.60%. Asian technology stocks rose after US bellwethers Apple and IBM reported earnings that exceeded analyst expectations. Phoenix Television reported that an unidentified official with the PBOC said economic figures due tomorrow were leaked and will show Dec China CPI rising +4.6% y/y, right on market expectations, and that China's economy grew 10.3% last year, which would exceed market expectations of 10.2% y/y. Jan Australia consumer confidence plunged -6.4 to 104.6, its lowest level in 7 months on concern that flood damage in Queensland state will weaken the country's economy. The worst floods in 50 years in Australia may cost as much as A$20 billion ($19.9 billion), or about 1.5% of GDP, according to the Australia & New Zealand Banking Group Ltd., and prompt the RBA from raising interest rates in the foreseeable future.
Overnight U.S. Stock News
  • March S&Ps this morning are trading down -1.40 points. The US stock market yesterday gyrated on both sides of unchanged into early afternoon when it rallied into the close as weakness in the technology sector was offset by strength in European markets on optimism that EU leaders will increase efforts to stem the debt crisis: Dow +0.43%, S&P 500 +0.14%, Nasdaq Composite +0.38%. The Dow and S&P 500 both posted 2-1/3 year highs and the Nasdaq posted a 9-3/4 year high. Bullish factors for stocks included (1) carry-over support from a rally in European stocks on speculation EU leaders will increase efforts to stem the sovereign-debt crisis, (2) strength in energy and raw-material producers after a slide in the dollar index to a 1-3/4 month low prompted a broad-based rally in commodities, and (3) strong foreign demand for US dollar assets after the Nov long-term TIC flows increased by $85.1 billion, much larger than expectations of $40.0 billion.
  • Bearish factors included (1) the slide in homebuilders on concern the housing crisis may linger after the unexpected stagnation in the Jan NAHB housing market index (unchanged at 16 versus expectations of +1 to 17), (2) weakness in technology stocks after Apple fell on leadership concerns when the company reported that CEO Steve Jobs will take a leave of absence to focus on his health, and (3) the warning from the IEA that the current price of oil is "alarming" and may endanger the recovery in the global economy.
  • Apple (AAPL) rose 1.9% in pre-market trading after it reported late yesterday Q1 profit of $6.43 a share, easily surpassing analysts' estimates of $5.41 a share.
  • International Business Machines (IBM) rose 2.4% in pre-market trading after it reported Q4 profit of $4.18 a share, topping analysts' estimates of $4.08 a share.
Today's Market Focus
  • March 10-year T-notes this morning are down -2 ticks. T-note prices yesterday erased an early rally and sold-off on an increase in inflation concerns: TYH11 -8.5, FVH11 -2.2, EDM11 +1.0. Bearish factors included (1) as increase in inflation concerns as the yield curve steepened to an all-time high after the yield spread between 2-year T-notes and 30-year T-bonds widened to a record 409 bp, the steepest since data began in 1977, (2) comments from Philadelphia Fed President Plosser who said he won't rule out raising interest rates despite unemployment remaining too high for the foreseeable future, and (3) reduced safe-haven demand for Treasuries after the S&P 500 climbed to a 2-1/3 year high. Bullish factors included (1) strong foreign demand for US Treasuries after the Nov long-term TIC data showed total foreign purchases of US Treasury notes and bonds were $61.7 billion in Nov, up from $24.7 billion in Oct, the prediction from the CIBC that the Fed will be on hold until 2013 as the US housing and labor markets struggle to recover, and (3) the unexpected stagnation in the Jan NAHB housing market index (unchanged at 16 versus expectations of +1 to 17).
  • The dollar index this morning is weaker and at a 1-3/4 month low with the dollar/yen -0.32 yen and the euro/dollar +0.91 cents. The dollar index yesterday slid to a 1-3/4 month low and finished weaker on speculation Euro-Zone finance ministers will increase efforts to prevent the sovereign-debt crisis from deepening: Dollar Index -0.375, USDJPY -0.442, EURUSD +0.00142. Bearish factors included (1) a rally in the euro to a 1-month high against the dollar on speculation that European leaders will increase their efforts to stem the debt crisis after European Union Economic and Monetary Affairs Commissioner Rehn said, "We shall improve our current existing financial backstops so that the so-called market forces cannot have even the slightest doubt about our capacity to act even in the most stresses scenarios," (2) the larger-than-expected increase in the Jan German ZEW economic sentiment survey to a 6-month high, which is euro supportive, (3) strength in the British pound which climbed to a 1-3/4 month high against the dollar after Dec UK CPI matched its highest level in 2 years and fuels speculation the BOE may need to raise interest rates, and (4) the prediction from the Canadian Imperial Bank of Commerce that the Fed will be on hold until 2013 as the US housing and labor markets struggle to recover. Bullish factors included (1) comments from Philadelphia Fed President Plosser who said he won't rule out raising interest rates despite unemployment remaining too high for the foreseeable future, and (2) the larger-than-expected increase in the Nov long-tern TIC flows, which signals strong foreign demand for US dollar assets.
  • February crude oil prices this morning are trading up +58 cents a barrel and February gasoline is +1.75 cents per gallon. Crude oil and gasoline prices yesterday fluctuated on either side of unchanged and finally settled lower after the IEA said that global crude supplies are ample: CLG11 -0.16, RBG11 -1.54. Feb gasoline climbed to a 2-1/3 nearest-futures high but erased its gains and finished lower. Bearish factors included (1) comments from the IEA that global oil supplies in the most developed economies still "looks relatively comfortable," with North American inventories "well above" the 5-year average, (2) IEA data that shows OPEC compliance with its late 2008 crude oil production cuts fell to 45% in Dec from 51% in Nov as the recent rise in prices encouraged OPEC members to cheat and overproduce from their quotas. Bullish factors included (1) the slide in the dollar index to a 1-3/4 month low, which boosts investment demand for commodities, and (2) the action by the IEA to raise their 2011 global oil demand forecast for a fourth month after they hiked their global oil consumption estimate for 2011 to 89.1 million barrels a day, up 360,000 barrels a day from last month's forecast.
Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap) WFC-Wells Fargo (BEST earnings consensus $0.63), GS-Goldman Sachs Group (3.79), USB-US Bacncorp (0.47), BK-Bank of New York Mellon (0.57), EBAY-eBay (0.47), STT-State Street Corp. (0.85), KMP-Kinder Morgan Energy Partners (0.43), NTRS-Northern Trust (0.71), FFIV-F5 Networks (0.83), APH-Amphenol (0.73), XLNX-Xilinx (0.51), CMA-Comerica (0.31), HCBK-Hudson City Bancorp (0.22), SLM-SLM Corp. (0.71), STX-Seagate Technology PLC (0.34), RJF-Raymond James Financial (0.53). 

Barchart -- Chart of the Day -- Kubota -- KUB


Chart of the Day - Kubota Corp (KUB)
Related Stocks
 KUB - Kubota Corporation
Sym Last Chg Pct
KUB 49.79 +0.12 +0.24%
The "Chart of the Day" is Kubota Corp (KUB), which showed up on Wednesday's Barchart "NYSE 12-month High" list. Kubota on Wednesday closed 0.24% higher and edged to a new 1-year high of $50.07. A rally above the current 4-year high of 51.08 posted in Jan 2010 would be a particularly bullish technical development. TrendSpotter has been long Kubota since Nov 5 at $47.16. Kubota Corp, with a market cap of $12.7 billion, is the world's largest maker of small tractors and Japan's second largest manufacturer of farm equipment.

kub_700
How we found the Chart of the Day:
We found the "Chart of the Day" by scanning the Barchart "New Highs/Lows" page. Then we clicked on the entry for NYSE 12-month highs. A new 12-month high is a popular sign of upside momentum. We then clicked on the "12-Month # Highs" column heading twice in order to sort the list in ascending order. Stocks with the fewest number of 12-month highs over the past 12 months are stocks that have only recently broken out to a new 12-month high and may have better upside potential then stocks that have already rallied sharply and have posted many new 12-month highs.
Barchart's Opinion trading systems are mostly a Buy and Barchart's daily TrendSpotter trading system is a "Buy." Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.
  • TrendSpotter: Buy
  • Short-Term Indicators: 80% Buy
  • Medium-Term Indicators: 100% Buy
  • Long-Term Indicators: 100% Buy
  • Overall Average 96% Buy


Barchart links for further information:

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View Past Chart of the Day Reports

Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs.  He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.

Wednesday, January 19, 2011

Aegon NV -- AEG -- added

This morning I added Aegon NV (AEG) to the Barchart Van Meerten New High portfolio as a turnaround opportunity.  Aegon N.V. is an international insurance group which writes life and health insurance and offers related pension, savings and investment products in Europe, North America and the Caribbean. The Company's other lines of business include property and casualty insurance and financial services.

AEG is paying off their bail out from the Dutch government and will be a turn around opportunity much like our banks and insurance stocks.

The stock came to my attention when screening for stocks hitting new highs on Barchart.  The 18 new highs and price appreciation of 19.73% in the last month has earned the stock a 100% Barchart technical buy signal.  With a climbing Relative Strength Index of 80.95% the stock trades around 7.19 which is well ahead of its 50 day moving average of 6.21.


Wall Street brokerages look for revenues to hold steady -  this is an insurance stock but predict a turn around in EPS of 711.10% this year and an annual EPS growth of 74.30% a year for at least the next 5 years.

The general investor as measured on Motley Fool agrees with the CAPS members voting 190 to 22 that the stock will beat the market.  The All Stars are even more upbeat with a vote of 85 to 1.

As the world economy in general and the European economy begins to recover, you can expect the financial stocks; especially insurance companies to prosper.



Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs.  He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.



Weyerhauser -- WY -- added

This morning I put in a buy order for Weyerhauser (WY) in the Barchart Van Meerten New High portfolio.

Weyerhaeuser Company is principally engaged in the growing and harvesting of timber and the manufacture, distribution and sale of forest products, real estate development and construction, and other real estate related activities. Its business segments are timberlands; wood products;pulp, paper and packaging; and real estate and related assets.  In reality they are a timber land REIT.

The company came to my notice when I was screening on Barchart for companies hitting the most frequent new highs.  The 18 new highs and price appreciation of 19.73% in the last month has earned the stock a 96% Barchart technical buy signal.  The stock trades around 21.52 which is well above its 50 day moving average of 18.49.  The upward move is steady and the Relative Strength Index is 75.51%,

Wall Street brokerages have bright projections for increases in sales and earnings and have published 5 buy and 9 hold recommendations for their clients.  Revenues are projected to increase 16.90% this year and also by another 4.60% next year. The real story is in the EPS estimates of an increase of 120.00% this year, 41.50% next year and another 2.50% annually for the next 5 years.

The general investor sentiment is high with the Motley Fool CAPS members voting 338 to 69 that the stock will beat the market.  The All Stars agree with a vote of 129 to 21.

I think the steady income stream plus efficiencies planned will make this a really great total return stock.  Dividend could easily double in the next few years.


Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs.  He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.

Cree Inc - CREE -- Deleted

This morning I deleted Cree Inc (CREE) from the Barchart Van Meerten New High portfolio for negative price trends:

  • 60% Barchart short term technical sell signal
  • Trend Spotter (tm) sell signal
  • Trading below its 20 and 50 day moving averages
  • 9.39% off its most recent high
  • Relative Strength Index 38.04% and falling
Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs.  He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.

Barchart Morning Call -- 1/19

Barchart Morning Call
Overnight Developments
  • Global stocks are trading mixed with the European Euro Stoxx 50 index down -0.30% and March S&Ps off by -1.40 points. The dollar index weakened to its lowest level in 1-3/4 months, which has given most commodities a lift. The British pound strengthened against eh dollar after Dec UK jobless claims unexpectedly fell -4,100 to their lowest level in 21 months, while Nov Spain home sales fell -6.2% y/y, their third month of declines. Greek 10-year government bonds fell, which widened the yield spread with German bunds by 24 bp to 856 bp, after Die Zeit newspaper reported that the German government is considering a plan that would help Greece "restructure" its debt. ECB officials are toning down their threat to raise interest rates, saying financial markets have over-reacted to their change in tone on inflation when ECB Council member Nowotny said that ECB President Trichet's CPI statements were interpreted in a "one-sided-way" and that he "sees present rates adequate" for the "foreseeable future."
  • The Asian stock markets today closed mostly higher with Japan up +0.36%, Hong Kong +1.10%, China +2.26%, Taiwan +1.09%, Australia +0.68%, Singapore -0.23%, South Korea +0.96%, India -0.60%. Asian technology stocks rose after US bellwethers Apple and IBM reported earnings that exceeded analyst expectations. Phoenix Television reported that an unidentified official with the PBOC said economic figures due tomorrow were leaked and will show Dec China CPI rising +4.6% y/y, right on market expectations, and that China's economy grew 10.3% last year, which would exceed market expectations of 10.2% y/y. Jan Australia consumer confidence plunged -6.4 to 104.6, its lowest level in 7 months on concern that flood damage in Queensland state will weaken the country's economy. The worst floods in 50 years in Australia may cost as much as A$20 billion ($19.9 billion), or about 1.5% of GDP, according to the Australia & New Zealand Banking Group Ltd., and prompt the RBA from raising interest rates in the foreseeable future.
Overnight U.S. Stock News
  • March S&Ps this morning are trading down -1.40 points. The US stock market yesterday gyrated on both sides of unchanged into early afternoon when it rallied into the close as weakness in the technology sector was offset by strength in European markets on optimism that EU leaders will increase efforts to stem the debt crisis: Dow +0.43%, S&P 500 +0.14%, Nasdaq Composite +0.38%. The Dow and S&P 500 both posted 2-1/3 year highs and the Nasdaq posted a 9-3/4 year high. Bullish factors for stocks included (1) carry-over support from a rally in European stocks on speculation EU leaders will increase efforts to stem the sovereign-debt crisis, (2) strength in energy and raw-material producers after a slide in the dollar index to a 1-3/4 month low prompted a broad-based rally in commodities, and (3) strong foreign demand for US dollar assets after the Nov long-term TIC flows increased by $85.1 billion, much larger than expectations of $40.0 billion.
  • Bearish factors included (1) the slide in homebuilders on concern the housing crisis may linger after the unexpected stagnation in the Jan NAHB housing market index (unchanged at 16 versus expectations of +1 to 17), (2) weakness in technology stocks after Apple fell on leadership concerns when the company reported that CEO Steve Jobs will take a leave of absence to focus on his health, and (3) the warning from the IEA that the current price of oil is "alarming" and may endanger the recovery in the global economy.
  • Apple (AAPL) rose 1.9% in pre-market trading after it reported late yesterday Q1 profit of $6.43 a share, easily surpassing analysts' estimates of $5.41 a share.
  • International Business Machines (IBM) rose 2.4% in pre-market trading after it reported Q4 profit of $4.18 a share, topping analysts' estimates of $4.08 a share.
Today's Market Focus
  • March 10-year T-notes this morning are down -2 ticks. T-note prices yesterday erased an early rally and sold-off on an increase in inflation concerns: TYH11 -8.5, FVH11 -2.2, EDM11 +1.0. Bearish factors included (1) as increase in inflation concerns as the yield curve steepened to an all-time high after the yield spread between 2-year T-notes and 30-year T-bonds widened to a record 409 bp, the steepest since data began in 1977, (2) comments from Philadelphia Fed President Plosser who said he won't rule out raising interest rates despite unemployment remaining too high for the foreseeable future, and (3) reduced safe-haven demand for Treasuries after the S&P 500 climbed to a 2-1/3 year high. Bullish factors included (1) strong foreign demand for US Treasuries after the Nov long-term TIC data showed total foreign purchases of US Treasury notes and bonds were $61.7 billion in Nov, up from $24.7 billion in Oct, the prediction from the CIBC that the Fed will be on hold until 2013 as the US housing and labor markets struggle to recover, and (3) the unexpected stagnation in the Jan NAHB housing market index (unchanged at 16 versus expectations of +1 to 17).
  • The dollar index this morning is weaker and at a 1-3/4 month low with the dollar/yen -0.32 yen and the euro/dollar +0.91 cents. The dollar index yesterday slid to a 1-3/4 month low and finished weaker on speculation Euro-Zone finance ministers will increase efforts to prevent the sovereign-debt crisis from deepening: Dollar Index -0.375, USDJPY -0.442, EURUSD +0.00142. Bearish factors included (1) a rally in the euro to a 1-month high against the dollar on speculation that European leaders will increase their efforts to stem the debt crisis after European Union Economic and Monetary Affairs Commissioner Rehn said, "We shall improve our current existing financial backstops so that the so-called market forces cannot have even the slightest doubt about our capacity to act even in the most stresses scenarios," (2) the larger-than-expected increase in the Jan German ZEW economic sentiment survey to a 6-month high, which is euro supportive, (3) strength in the British pound which climbed to a 1-3/4 month high against the dollar after Dec UK CPI matched its highest level in 2 years and fuels speculation the BOE may need to raise interest rates, and (4) the prediction from the Canadian Imperial Bank of Commerce that the Fed will be on hold until 2013 as the US housing and labor markets struggle to recover. Bullish factors included (1) comments from Philadelphia Fed President Plosser who said he won't rule out raising interest rates despite unemployment remaining too high for the foreseeable future, and (2) the larger-than-expected increase in the Nov long-tern TIC flows, which signals strong foreign demand for US dollar assets.
  • February crude oil prices this morning are trading up +58 cents a barrel and February gasoline is +1.75 cents per gallon. Crude oil and gasoline prices yesterday fluctuated on either side of unchanged and finally settled lower after the IEA said that global crude supplies are ample: CLG11 -0.16, RBG11 -1.54. Feb gasoline climbed to a 2-1/3 nearest-futures high but erased its gains and finished lower. Bearish factors included (1) comments from the IEA that global oil supplies in the most developed economies still "looks relatively comfortable," with North American inventories "well above" the 5-year average, (2) IEA data that shows OPEC compliance with its late 2008 crude oil production cuts fell to 45% in Dec from 51% in Nov as the recent rise in prices encouraged OPEC members to cheat and overproduce from their quotas. Bullish factors included (1) the slide in the dollar index to a 1-3/4 month low, which boosts investment demand for commodities, and (2) the action by the IEA to raise their 2011 global oil demand forecast for a fourth month after they hiked their global oil consumption estimate for 2011 to 89.1 million barrels a day, up 360,000 barrels a day from last month's forecast.
Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap) WFC-Wells Fargo (BEST earnings consensus $0.63), GS-Goldman Sachs Group (3.79), USB-US Bacncorp (0.47), BK-Bank of New York Mellon (0.57), EBAY-eBay (0.47), STT-State Street Corp. (0.85), KMP-Kinder Morgan Energy Partners (0.43), NTRS-Northern Trust (0.71), FFIV-F5 Networks (0.83), APH-Amphenol (0.73), XLNX-Xilinx (0.51), CMA-Comerica (0.31), HCBK-Hudson City Bancorp (0.22), SLM-SLM Corp. (0.71), STX-Seagate Technology PLC (0.34), RJF-Raymond James Financial (0.53).


Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs.  He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.

Barchart - Chart of the day - Timberland -- TBL


Chart of the Day - Timberland Co (TBL)
Related Stocks
 TBL - Timberland Company

Sym Last Chg Pct
TBL 26.89 +0.68 +2.59%
The "Chart of the Day" is Timberland Co (TBL), which showed up on Tuesday's list of stocks that had a new "Buy" signal from the Barchart "TrendSpotter" trading system. Timberland on Tuesday rallied by 2.59% to post a new 3-1/2 year high. The stock has rallied sharply in the past week on above-average volume, a sign of active buying. In recent news on the stock, the WSJ reported on Dec 28 that Timberland's CEO foresees that Timberland, which already has 110 stores in China, will be able to double its sales in China over the next three years. Timberland, with a market cap of $1.3 billion, wells premium-quality footwear products for men, women and children and apparel and accessories products for men and women.

tbl_700
How we found the Chart of the Day:
We found the "Chart of the Day" by scanning the Barchart "Trading Signals" page. That page provides a summary of changes in the Barchart signals. We then clicked on the TrendSpotter "Buy" category to obtain a list of all the stocks for which the Barchart TrendSpotter trading system has just turned to a buy. We then clicked on the "Today's Opinion" column header in order to sort the list with the strongest stocks on top. Further information is available at Barchart Signals Guide help page and at TrendSpotter help page.
Barchart's Opinion trading systems are all a Buy and Barchart's daily TrendSpotter trading system is a "Buy." Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.
  • TrendSpotter: Buy
  • Short-Term Indicators: 100% Buy
  • Medium-Term Indicators: 100% Buy
  • Long-Term Indicators: 100% Buy
  • Overall Average 100% Buy


Barchart links for further information:

Quotes and Charts
Quote
Detailed Quote
Chart

Technical Analysis
Technicals Summary
Trader's Cheat Sheet™

Barchart Opinions
Barchart Opinion
Barchart Snapshot
Trading Strategies

Company Info
Company Profile
Key Statistics
Ratios
Income Statement-Quarterly
Income Statement-Annual
Balance Sheet-Current
Balance Sheet-Annual


Chart of the Day Archive
View Past Chart of the Day Reports



Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs.  He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.

Tuesday, January 18, 2011

3 Great Electrical Manufacturing Stocks

Today when screening sectors on Barchart I found 3 great stocks in the Electrical Manufacturing sector.  The sector is climboing and so are these stocks and here is why I think you should include them on your watch lists.

UTEK - Ultratech -- develops, manufactures and markets photolithography equipment designed to reduce the cost of ownership for manufacturers of integrated circuits, including advanced packaging processes, photomasks, thin film magnetic recording devices and micromachined components. The Company supplies step-and-repeat systems based on one-to-one and reduction optical technology to customers locatedthroughout North America, Europe, Japan and the rest of Asia.

  • 100% Barchart technical buy signal
  • 4 new highs in the last 5 days and up 10.12% for the month
  • Relative Strength Index 71.38%
  • Trading at 22.98 which is above its 50 day moving average of 19.46
  • Wall Street brokerages have 2 buy and 1 hold recommendations
  • Sales projected to increase 44.30% this year and 29.80% next year
  • Earnings per share expected to increase 644.40% this year, 77.60% next year and 16.00% annually for the next 5 years
  • Investor sentiment on Motley Fool mixed with CAPS members voting 107 to 124 that the stock won;t beat the market with the All Stars in agreement 25 to 63.
  • Someone is wrong on this stock big time
UCTT - Ultraclean --  a developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, solar and medical device industries. Ultra Clean offers its customers an integrated outsourced solution for gas delivery systems and other subassemblies, improved design-to-delivery cycle times, component neutral design and manufacturing and component testing capabilities. Ultra Clean's customers are primarily original equipment manufacturers for the semiconductor capital equipment, flat panel, solar and medical device industries. Ultra Clean is headquartered in Menlo Park, California.
  • 100% Barchart technical buy signal
  • 5 new highs and up 32.69% in the last month
  • Relative Strength Index 84.34% and rising
  • Trading around 12.70 which is above its 50 day moving average of 8.92
  • Wall Street brokerages have 3 buy recommendations
  • Sales projected to increase 172.80% this year and 10.90% next year
  • EPS per share expected to increase 288.00% this year, 24.50% next year and 20.00% per year for the next 5
  • Investor sentiment on Motley Fool high with CAPS members voting 382 to 9 that the stock will beat the market and the All Stars agree 136 to 1
TSRA -- Tessera Technologies -- develops semiconductor packaging technology that meets the demand for miniaturization and increased performance of electronic products. Tessera licenses its technology to its customers, enabling them to produce semiconductors that are smaller and faster, and incorporate more features. These semiconductors are utilized in a broad range of communications, computing and consumer electronic products.
  • 100% Barchart technical buy signal
  • 7 new highs and up 11.92% in the last month
  • Relative Strength Index 73.26% and rising
  • Trades around 23.05 which is above its 50 day moving average of 21.19
  • Wall Street brokerages have 3 buy and 3 hold recommendations
  • Sales projected to increase 8.30% next year
  • EPS expected to increase by 13.30% next year and 24.00% annually for 5 years 
Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs.  He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.

PDL Biopharma -- PDLI -- deleted

This morning I deleted PDL Biopharma (PDLI)  from the Barchart Van Meerten Speculative portfolio for negative price trends:

  • 40% Barchart technical sell signal
  • Trend Spotter (tm) sell signal
  • Trading below its 20, 50 and 100 day moving averages
  • Lost 18.02% from its most recent high
  • Relative Strength Index 30.40% and falling
Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs.  He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.

Barchart Morning Call

Barchart Morning Call
Overnight Developments
  • Global stocks are trading higher with the European Euro Stoxx 50 index up +1.03% and at an 8-1/2 month high and March S&Ps up +1.60 points at a fresh contract high. The dollar index slipped to a 1-3/4 month low and most commodities strengthened after Euro-Zone finance ministers pledged to strengthen the safety net for debt-strapped countries. After a meeting with Euro-Zone finance ministers in Brussels yesterday, European Union Economic and Monetary Affairs Commissioner Rehn said, "We shall improve our current existing financial backstops so that the so-called market forces cannot have even the slightest doubt about our capacity to act even in the most stresses scenarios." Also helping to boost European stocks was the larger-than-expected increase in the Jan German ZEW survey of economic sentiment, which rose +11.1 to 15.4, a 6-month high. European bank stocks rallied after Belgium's finance minister pushed for a "common view" on bank stress tests with the IMF and said greater transparency in stress tests can be achieved by having "the same criteria in the US and Europe." Undercutting stock market gains was a 4.5% slump in Apple stock in European trading after CEO Jobs announced he would take a leave of absence to focus on his health. The British pound surged to a 1-3/4 month high against the dollar after Dec UK CPI rose more-than-expected and climbed to a 2-year of +3.7% y/y, which fueled speculation that the BOE may need to raise interest rates.
  • The Asian stock markets today closed mostly higher with Japan up +0.15%, Hong Kong -0.01%, China +0.11%, Taiwan +0.70%, Australia +0.81%, Singapore +0.34%, South Korea -0.16%, India +1.11%. Asian technology stocks closed higher and led the broader market with gains after the Nikkei newspaper reported Elpida Memory, the world's third-largest maker of computer memory chips, will raise prices on its dynamic random-access memory chips by 10% as early as this month. China's Ministry of Commerce reported that foreign direct investment in China rose +17.4% y/y in 2010 to a record $105.7 billion, which underscores global confidence in the Chinese economy and puts pressure on the PBOC's policy of restraining yuan appreciation. India's Sensix Stock Index closed higher after Tata Consultancy Services Ltd., India's biggest software services company, posted record profit.
Overnight U.S. Stock News
  • March S&Ps this morning are trading up +1.60 points and posted a frech contract high in overnight trade. The US stock market last Friday shook off early weakness on China's decision to raise bank reserve requirements and finished on its high after JPMorgan Chase reported record profits: Dow +0.47%, S&P 500 -0.17%, Nasdaq Composite -0.07%. The Nasdaq posted a 9-3/4 year high and the Dow and S&P 500 posted 2-1/3 year highs. Bullish factors for stocks included (1) the larger-than-expected increase in Dec industrial production which posted its biggest gain in 5 months (+0.8% versus expectations of +0.5%), (2) the larger-than-expected jump in Dec capacity utilization which rose to its highest level in 2-1/3 years (+0.6 to 76.0 versus expectations of +0.4 to 75.6%), (3) strength in semiconductor-companies after Intel, the world's biggest chipmaker, said it would boost spending on plants and equipment this year, and (4) a rally in financial stocks after JPMorgan Chase, the second-largest US bank by assets, posted a record $4.83 billion profit for Q4, helped by $2 billion in reserve reductions as credit quality and the US economy improved.
  • Bearish factors included (1) carry-over weakness from a plunge in European and Asian stock markets after China raised banks reserve requirements for the fourth time in 2 months, which may slow its economy and the global economy as well, (2) the weaker-than-expected Dec US retail sales (+0.6% and +0.5% less autos versus expectations of +0.8% and +0.7% less autos, (3) the unexpected decline in the Jan US University of Michigan consumer confidence (-1.8 to 72.7 versus expectations of +1.0 to 75.5), and (4) concern that the European sovereign-debt crisis may worsen after Fitch Ratings cut Greece's long-term foreign and local currency issuer default ratings to BB+, or junk, from BBB- with a negative outlook.
  • Apple (APPL) slipped 4.5% in pre-market trading after the company reported that CEO Steve Jobs will take a leave of absence to focus on his health, leaving Tim Cook in charge for the third time in 7 years.
Today's Market Focus
  • March 10-year T-notes this morning are up +2.5 ticks. T-note prices last Friday climbed early to a 1-1/4 month high on weak economic data high but then shed their gains and closed lower after the stock market rallied: TYH11 -8, FVH11 -3.2, EDM11 unchanged. Bearish factors included (1) the larger-than-expected gain in Dec CPI which posted its biggest monthly increase in 1-1/2 years (+0.5% m/m and +1.5% y/y versus expectations of +0.4% m/m and +1.3% y/y), (2) the larger-than-expected increase in Dec industrial production which posted its biggest gain in 5 months (+0.8% versus expectations of +0.5%), (3) the larger-than-expected jump in Dec capacity utilization which rose to its highest level in 2-1/3 years (+0.6 to 76.0 versus expectations of +0.4 to 75.6%), and (4) reduced safe-haven demand for Treasuries after the S&P 500 rallied to a 2-1/3 year high. Bullish factors included (1) the weaker-than-expected Dec US retail sales (+0.6% and +0.5% less autos versus expectations of +0.8% and +0.7% less autos, (2) the unexpected decline in the Jan US University of Michigan consumer confidence (-1.8 to 72.7 versus expectations of +1.0 to 75.5), (3) increased safe-haven demand for Treasuries after Fitch Ratings cut Greece's long-term foreign and local currency issuer default ratings to BB+, or junk, from BBB- with a negative outlook, and (4) the Fed's action to buy $7.306 billion of Treasuries as part of its QE2 asset-purchase program.
  • The dollar index this morning is weaker and at a 1-3/4 month low with the dollar/yen -0.14 yen and the euro/dollar +1.11 cents. The dollar index last Friday rebounded from a 2-week low to settle little changed: Dollar Index -0.029, USDJPY +0.186, EURUSD +0.00096. Bearish factors included (1) weaker-than-expected US economic data on retail sales and consumer confidence, (2) strength in the euro after euro supportive comments from ECB Council member Weber who said "the economic outlook has brightened considerably" and that inflation risks "could well move to the upside," (3) the action by Citigroup to revise its forecast for the ECB's first rate increase to the second half of this year from the first quarter of 2012, and (4) the recommendation from BNP Paribas that investors buy the euro against the dollar after recent comments from ECB President Trichet and fellow council member Weber "are a significant change in tone" and will prompt the market to price in earlier rate hikes from the ECB. Bullish factors included (1) the stronger-than-expected Dec US industrial production and capacity utilization, and (2) the prediction from Brown Brothers Harriman that he euro may weaken to $1.18 by Jun as the European debt crisis weighs on sentiment.
  • February crude oil prices this morning are trading down -17 cents a barrel and February gasoline -0.03 of a cent per gallon. Crude oil and gasoline prices last Friday settled higher on a weak dollar and on Royal Dutch Shell's action to shut a 340,000 barrel-a-day refinery in Texas for unscheduled repairs: CLG11 +0.14, RBG11 +4.87. Bullish factors included (1) the fall in the dollar index to a 2-week low, which boosts investment demand in commodities, (2) the bigger-than-expected increases in Dec US industrial production and capacity utilization, which signals strength in the economy that may lead to increased energy demand, and (3) strength in gasoline after Royal Dutch Shell Plc shut a 340,000 barrel-a-day refinery in Texas for unscheduled repairs, which may limit gasoline supplies. Bearish factors included (1) China's action to boost banks reserve ratio requirements for the fourth time in 2 months, which may slow its economy and energy demand, and (2) the weaker than expected Dec US retail sales along with an unexpected drop in Jan US University of Michigan consumer confidence, which signals a possible slowdown in consumer spending that may limit fuel demand.
Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap) AAPL-Apple (BEST earnings consensus $5.42), IBM-International Business Machines (4.08), C-Citigroup (0.08), SCHW-Charles Schwab (0.16), AMTD-TD Ameritrade Holdings (0.24), DAL-Delta Air Lines (0.25), FRX-Forest Labs (0.98), FAST-Fastenal (0.45), LLTC-Linear Technology (0.63), WDC-Western Digital (0.58), CREE-Cree Inc. (0.58), EDU-New Oriental Education & Technology (0.09), FULT-Fulton Financial (0.16), MMR-McMoRan Exploration (-0.28). 

Barchart of the Day -- Veolia Enviornnement -- VE



Chart of the Day - Veolia Environnement (VE)
Related Stocks
 VE - Veolia Environnement
Sym Last Chg Pct
VE 31.14 +0.40 +1.30%
The "Chart of the Day" is Veolia Environnement (VE), which showed up on last Friday's list of stocks that had a new "Buy" signal from the Barchart "TrendSpotter" trading system. Veolia last Friday rallied 0.92% and posted a new 2-month high of $30.74 that was just 0.07 points shy of the 9-month high of $30.81 posted on Nov 19. A breakout above that 9-month high of $30.81 would be a particularly bullish technical development. Veolia Environnement, with a market cap of $15 billion, offers a range of environmental services in the water, waste management, energy and transportation sectors.

ve_700
How we found the Chart of the Day:
We found the "Chart of the Day" by scanning the Barchart "Trading Signals" page. That page provides a summary of changes in the Barchart signals. We then clicked on the TrendSpotter "Buy" category to obtain a list of all the stocks for which the Barchart TrendSpotter trading system has just turned to a buy. We then clicked on the "Today's Opinion" column header in order to sort the list with the strongest stocks on top. Further information is available at Barchart Signals Guide help page and at TrendSpotter help page.
Barchart's Opinion trading systems are all a Buy and Barchart's daily TrendSpotter trading system is a "Buy." Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.
  • TrendSpotter: Buy
  • Short-Term Indicators: 100% Buy
  • Medium-Term Indicators: 100% Buy
  • Long-Term Indicators: 100% Buy
  • Overall Average 100% Buy


Barchart links for further information:

Quotes and Charts
Quote
Detailed Quote
Chart

Technical Analysis
Technicals Summary
Trader's Cheat Sheet™

Barchart Opinions
Barchart Opinion
Barchart Snapshot
Trading Strategies

Company Info
Company Profile
Key Statistics
Ratios
Income Statement-Quarterly
Income Statement-Annual
Balance Sheet-Current
Balance Sheet-Annual


Chart of the Day Archive
View Past Chart of the Day Reports