Financial Tides -- A Stock Market Investing Newsletter by Jim Van Meerten

Wednesday, April 27, 2011

5 stocks under $10 on the move

This morning I used Barchart to screen for stocks trading under $10 that are hitting the most frequent new highs and came up with 5 stocks you might want to put on your watch lists.

Goldfield (GV) -- is a leading provider of electrical construction and maintenance services in the energy infrastructure industry in the southeastern United States. The company specializes in installing and maintaining electrical transmission lines for a wide range of electric utilities. Goldfield is also involved in the development of high-end condominium projects on Florida's east coast.

Technical Factors:

96% Barchart technical buy signal
Trend Spotter buy signal
21 new highs and up 27.27% in the last month
Relative Strength Index
Trades at .42 with a 50 day moving average of .36

There are no Wall Street brokerage analysts following this stock

On Motley Fool there is only one member giving an opinion but it is a buy

PDL BioPharma (PDLI) -- Protein Design Labs Inc. is a biopharmaceutical company focused on the research, development and commercialization of novel therapies for inflammation and autoimmune diseases, acute cardiac conditions and cancer. PDL markets several biopharmaceutical products in the United States through its hospital sales force and wholly-owned subsidiary, ESP Pharma, Inc. As a leader in the development of humanized antibodies, PDL has licensed its patents to numerous pharmaceutical and biotechnology companies, some of which are now paying royalties on net sales of licensed products.

Technical Factors:

96% Barchart technical buy signal
Trend Spotter buy signal
14 new highs and up 14.65% in the last month
Relative Strength Index 67.12% and rising
Trades around 6.36 with a 50 day moving average of 5.68

Fundamental Factors:

Wall Street brokerage analysts published 3 buy and 4 hold recommendations
Sales projected to increase by 12.50% this year and 9.10% next year
Earnings are estimated to increase by 31.50% this year,19.70% next year and 26.00% annually for the next 5 years

General Investor Sentiment:

1,213 investors following this stock on Motley Fool
CAPS members 860 to 42 that the stock will beat the market
The more experienced All Stars agree 299 to 12

NOTE: Since Jim Cramer advised a sell on this stock on 3/8/2011 the stock surged up 11.62%

Guaranty Bancorp (GBNK) -- is a bank holding company with one wholly owned bank subsidiary, Guaranty Bank and Trust Company. Guaranty Bank and Trust Company provides banking and other financial services, including real estate, construction, commercial and industrial, energy, consumer and agriculture loans, to consumers and small and medium-sized businesses, including the owners and employees of those businesses, through 36 community banking branches in the Colorado Front Range. Guaranty Bank also provides trust services, including personal trust administration, estate settlement, investment management accounts and self-directed IRAs.

Technical Factors:

100% Barchart short term technical buy signals
Trend Spotter buy signal
13 new highs and up 10.85% in the last month
Relative Strength Index 42.11% and rising
Trades around 1.43 with a 50 day moving average of 1.29

Fundamental Factors:

Only 1 Wall Street brokerage is following this stock and he has a hold recommendation released
Sales are expected to increase by 26.70% next year
Earnings are expected to increase by 73.80% this year and increase annually by 10.70% for the next 5 years

General Investor Sentiment:

The 46 investors following this stock on Motley Fool are very split on its future
CAPS members are evenly split 18 to 18 that the stock will continue to beat the market
The experienced All Stars are negative by a 3 to 7 vote

Medallion Financial (TAXI) -- is a specialty finance company that originates and services loans that finance taxicab medallions and various types of commercial loans.

Technical Factors:

100% Barchart technical buy signal
Trend Spotter buy signal
13 new highs and up 5.74% in the last month
Relative strength Index 63.60% and rising
Trades around 8.89 with a 50 day moving average of 8.39

Fundamental Factors:

Only 1 Wall Street brokerage analysts following this issue and he has a hold
Sales are projected to be just slightly negative this year
Earnings are another thing with a growth of 51.00% projected for this year, 6.20% for next year and 10.00% annually for the next 5 years

Vonage (VG) -- is a leading provider of digital phone services with over two million subscriber lines. Their award-winning technology enables anyone to make and receive phone calls with a touch tone telephone almost anywhere a broadband Internet connection is available. They offer feature-rich and cost-effective communication services that offer users an experience similar to traditional telephone services.The Residential Premium Unlimited and Small Business Unlimited calling plans offer consumers unlimited local and long distance calling, and popular features like call waiting, call forwarding and voicemail - for one low, flat monthly rate. Vonage's service is sold on the web and through national retailers including Best Buy, Circuit City, Wal-Mart Stores Inc. and Target and is available to customers in the U.S., Canada and the United Kingdom.

Technical Factors:

96% Barchart technical buy signal
Trend Spotter buy signal
13 new highs and up 26.35% in the last month
Relative Strength Index 68.388% and rising
Trades around 5.21 with a 50 day moving average of 4.45

Fundamental Factors:

Wall Street brokerage analysts have 1 strong buy, 1 buy and 1 hold recommendations released
Sales are expected to increase by 1.00% this year and 2.00% next year
Earnings are estimated to increase by 285.70% this year, 3.80% next year and 2.50% annually for the next 5 years

General Investor Sentiment:

Over 1900 investors on Motley Fool have expressed opinions on this stocks
CPAS members vote 475 to 1,105 taht the stock will NOT beat the market
The more experienced All Stars are also negative 83 to 330

Jim Van Meerten is an analyst for Marketocracy Capital Management. He shares his knowledge and experience from over 40 years of investing in stocks, mutual funds and ETFs on Barchart.com in his daily blog -- Barchart Portfolio Blogs.

Synchronoss Technologies -- SNCR -- sell signal

This morning I detected sell signals from Synchronoss Technologies (SNCR) and deleted it from the Barchart Van Meerten New High portfolio.

80% Barchart short term technical sell signal
Trend Spotter sell signal
Trading below its 20, 50 and 100 day moving averages
Off 13.69% from its recent high
Relative Strength Index 40.53% and falling

Barchart Morning Call - 4/27

Barchart Morning Call

Barchart.com - 55 mins ago

Overnight Developments

Global stocks are mixed with the European Euro Stoxx 50 up +0.69% and June S&Ps up +5.20 points. Treasuries are weaker ahead of the conclusion of the 2-day Fed meeting later today and most commodities are higher with gasoline rising to a 2-3/4 year high. Better-than-expected company earnings results are lifting European and US stocks with Ericsson AB up over 9% after the biggest maker of mobile-phone networks reported Q1 net income of 4.1 billion kroner ($675 million), well ahead of analysts' estimates of 3.06 billion kroner. Volkswagen is up over 4% after Europe's largest automaker reported Q1 profit of 1.71 billion euros ($2.51 billion), beating analysts; estimates of 1.63 billion euros, while Volvo climbed 2.6% after it raised its 2011 sales forecast for Europe and North America to 230,000 to 240,000 tucks from a previous forecast of 220,000 vehicles. The dollar index recovered from a 2-1/2 year low after credit-default swaps to insure the government debts of Greece, Portugal and Ireland all rose to records.
The Asian stock markets today closed mixed with Japan up +1.39%, Hong Kong -0.48%, China -0.66%, Taiwan +1.13%, Australia -0.83%, Singapore +0.34%, South Korea +0.24%, India -0.49%. The yen retreated from a 1-month high against the dollar after Standard & Poor's cut Japan's sovereign-rating outlook to "negative" from "stable," saying the nation's reconstruction needs following last month's earthquake will likely boost net government debt to 145% of GDP in fiscal 2013, higher than an earlier forecast of 137%. Mar Japan retail sales weakened more than expected after they tumbled -8.5% y/y, the biggest decline in 13 years. Despite the negative news, Japanese stocks finished higher after the larger-than-expected increase in US consumer confidence boosted the outlook for Asian exporters along with the statement from Japan's Trade Ministry that 60% of factories in earthquake-stricken areas have restarted production. Australia's S&P 200 Stock Index finished lower and the Australian dollar climbed to a record against the US dollar after Q1 Australia consumer prices rose +1.6% q/q, higher than expectations of +1.2% q/q and the biggest increase in 5 years, which gives the RBA more reason to continue their interest rate tightening campaign.

Overnight U.S. Stock News

June S&Ps this morning are trading up +5.20 points at a fresh contract high as company earnings results continue to surprise to the upside. The US stock market yesterday finished with solid gains on improved company earnings results along with stronger-than-expected consumer confidence: Dow Jones +0.93%, S&P 500 +0.90%, Nasdaq Composite +0.77%. The Dow and S&P 500 climbed to 2-3/4 year highs and the Nasdaq catapulted to a 10-year high. Bullish factors included (1) continued strong company earnings results as 79% of the 154 companies in the S&P 500 that reported earnings results since Apr 11 have beaten analysts' estimates, (2) the stronger-than-expected Apr US consumer confidence (+1.6 to 65.4 versus expectations of +1.4 to 64.8), which reduced concern that rising fuel costs will slow consumer spending, and (3) reduced interest rate concerns after the yield on the 10-year T-note fell to a 1-month low of 3.306%.
Bearish factors for stocks included (1) concern the European sovereign-debt crisis may worsen after credit-default swaps to insure Greek and Portuguese government debt jumped to records, (2) the as-expected -3.3% y/y decline in the Feb S&P/CaseShiller composite-20 home price index, the biggest y/y decline in 15 months and a sign that the US housing market remains depressed, and (3) the unexpected decline in the Apr Richmond Fed manufacturing index which fell to its lowest level in 5 months (-10 to 10 versus expectations of unchanged at 20).

Today's Market Focus

June 10-year T-notes this morning are down -6 ticks ahead of the conclusion of the FOMC meeting later today. T-note prices yesterday rallied to a 1-month high and settled higher on speculation the Fed on Wed will announce steps to keep Treasury yields from rising as the June end of the QE2 asset-purchase program approaches: TYM11 +11, FVM11 +7.2, EDU11 +0.5. The 10-year T-note yield slipped to a 1-month low of 3.306%. Bullish factors included (1) the as-expected -3.3% y/y decline in the Feb S&P/CaseShiller composite-20 home price index, the biggest y/y decline in 15 months and a sign that the US housing market remains depressed, (2) increased safe-haven demand for Treasuries on concern the European debt crisis may worsen after credit-default swaps to insure Greek and Portuguese government debt jumped to records, (3) the unexpected decline in the Apr Richmond Fed manufacturing index which fell to its lowest level in 5 months (-10 to 10 versus expectations of unchanged at 20), (4) strong foreign demand for the Treasuries $35 billion 2-year T-note auction in which indirect bidders bought 37.9% of the notes, stronger than the 33.5% average of the past 10 auctions, and (5) the Fed's action to purchase $1.99 billion of Treasuries as part of its QE 2 asset-purchase program. Bearish factors included (1) the stronger-than-expected Apr US consumer confidence (+1.6 to 65.4 versus expectations of +1.4 to 64.8), and (2) supply pressures ahead of the Treasury's $35 billion 5-year T-note auction on Wednesday.
The dollar index this morning is weaker and posted a fresh 2-1/2 year low in overnight trade with the dollar/yen +0.69 yen and the euro/dollar +0.29 cents. The dollar index yesterday closed lower on speculation that the FOMC on Wednesday will keep interest rates at a record low along with strength in the euro which rallied to a 16-1/4 month high against the dollar on hawkish comments from ECB President Trichet: Dollar Index -0.149, USDJPY -0.277, EURUSD +0.0630. Bearish factors included (1) speculation that the FOMC on Wednesday will keep interest rates at a record low, which may prompt inventors to shy away from the dollar in favor of higher yielding assets, (2) comments from ECB President Trichet who said the ECB must continue "solidly anchoring" inflation expectations, which bolstered speculation for further ECB rate hikes, and (3) reduced safe-haven demand for the dollar after stock prices rallied to 2-3/4 year highs. Bullish factors included (1) a possible increase in the safe-haven demand for the dollar after credit-default swaps to insure Greek and Portuguese government debt jumped to records, which raises concern the European sovereign-debt crisis will worsen, (2) the stronger-than-expected Apr US consumer confidence, which is dollar supportive, and (3) comments from Treasury Secretary Geithner who reaffirmed the US commitment to a "strong dollar".
June crude oil prices this morning are trading up +39 cents a barrel and June gasoline is +1.28 cents per gallon at a contract high. Crude oil and gasoline prices yesterday finished mixed as a weak dollar, strong equities and stronger-than-expected US consumer confidence lifted gasoline while comments from Saudi Arabia's national oil company undercut crude: CLM11 -$0.07, RBM11 +2.87. Jun gasoline posted a contract high and nearest-futures May gasoline climbed to a 2-3/4 year high. Bullish factors included (1) the weak dollar which encourages investment demand in commodities, (2) the stronger-than-expected US Apr consumer confidence, which may lead to increased consumer spending and fuel demand, (3) strength in gasoline prices on the outlook for weekly DOE gasoline supplies to fall for the tenth consecutive week when they are reported on Wed, and (4) the rally in the S&P 500 to a 2-3/4 year high, which bolsters confidence in the economic outlook and energy demand. Bearish factors included (1) comments from the CEO of Saudi Arabia's state oil company who said it is "not comfortable" with the current price of oil and is concerned about its effect of global economic growth, which fueled speculation of an increase in Saudi Arabian oil production, and (2) the outlook for weekly DOE crude oil stockpiles to increase for the seventh time in eight weeks when they are released on Wed. Expectations for the DOE's weekly inventory report are for crude supplies to gain 1.7 million bbl, gasoline stockpiles to fall -1.0 million bbl, distillate inventories to rise +500,000 bbl and the refinery utilization rate to increase +0.9 to 83.4%.

Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap) COP-ConocoPhillips (BEST earnings consensus $1.93), BA-Boeing (0.70), BIDU-Baidu (0.46), EBAY-Ebay (0.46), NOV-National Oilwell Varco (1.00), SO-Southern Co. (0.51), PX-Praxair (1.26), BHI-Baker Hughes (0.78), GLW-Corning (0.44), SBUX-Starbucks (0.34), WLP-WellPoint (1.89), HES-Hess Corp. (1.86), EXC-Exelon (1.05), GD-General Dynamics (1.61), NSC-Norfolk Southern (0.89), AFL-Aflac (1.52), TMO-Thermo Fisher Scientific (0.88).
Global Financial Calendar

Wednesday 4/27/11
United States
0700 ET	Weekly MBA mortgage applications, last market index +5.3% with purchase mortgage sub-index +10.0% and refinancing sub-index +2.7%.
0830 ET	Mar durable goods orders expected +2.3% and +2.0% ex transportation, Feb –0.6% and –0.3% less transportation.
1230 ET	FOMC announces interest rate decision (expected no change to the 0.00% to 0.25% Fed funds rate).
1300 ET	Treasury auctions $35 billion 5-year T-notes.
1415 ET	Fed Chairman Ben Bernanke speaks at a press conference after the FOMC meeting.
Germany
0200 ET	May German GfK consumer confidence survey expected -0.1 to 5.8, Apr -0.1 to 5.9.
n/a	Apr German CPI (EU harmonized) expected +0.2% m/m and +2.6% y/y, Mar +0.6% m/m and +2.3% y/y.
France
0245 ET	Apr French consumer confidence indicator expected unchanged at 83, Mar -2 to 83.
1200 ET	Mar French jobseekers expected -10,000, Feb -2,100. Mar total jobseekers, Feb 2,701,100.
United Kingdom
0430 ET	Q1 UK GDP expected +0.5% q/q and +1.8% y/y, Q4 -0.5% q/q and +1.5% y/y.
1901 ET	Apr UK GfK consumer confidence survey expected +1 to -27, Mar unchanged at -28.
Euro-Zone
0500 ET	Feb Euro-Zone industrial new orders expected +1.8% m/m and +22.6% y/y, Jan +1.1% m/m and +22.2% y/y.
Canada
0900 ET	Feb Canada Teranet/National Bank home price index, Jan +0.4% m/m and +3.9% y/y.
Japan
1915 ET	Apr Japan Markit/JMMA manufacturing PMI, Mar -6.5 to 46.4.
1930 ET	Mar Japan overall household spending expected -8.0% y/y, Feb -0.2% y/y.
1930 ET	Mar Japan jobless rate expected +0.2 to 4.8%, Feb -0.3 to 4.6%. Mar job-to-applicant ratio expected +0.61, Feb 0.62.
1930 ET	Apr Tokyo CPI expected -0.1% y/y, Mar -0.3% y/y. Apr Tokyo CPI ex-fresh food expected +0.2% y/y, Mar 0.3% y/y. Apr Tokyo CPI ex food & energy expected -0.1% y/y, Mar -0.3% y/y.
1930 ET	Mar Japan national CPI expected unchanged y/y, Feb unchanged y/y. Mar national CPI ex-fresh food expected 0.2% y/y, Feb -0.3% y/y. Mar national CPI ex food & energy expected -0.6% y/y, Feb -0.6% y/y.
1950 ET	Preliminary Mar Japan industrial production expected -11.1% m/m and -8.5% y/y, Feb +1.8% m/m and +2.9% y/y.

Barchart.com provides Financial Quotes, Charts and Technical Analysis for Stock and Commodity Traders.

Caterpillar -- CAT -- Barchart Chart of the Day

Barchart.com's Chart of the Day - Caterpillar (CAT)

Barchart Research Team - Barchart.com - Tue Apr 26, 4:33PM CDT

Related Stocks

CAT - Caterpillar

Sym	Last	Chg	Pct
CAT	111.94	+3.09	+2.84%

The "Chart of the Day" is Caterpillar (CAT), which showed up on Tuesday's list of stocks that had a new "Buy" signal from the Barchart "TrendSpotter" trading system and also on the Barchart "Gap Up" list. Caterpillar on Tuesday rallied by 2.84% and posted a new 3-week high. A rally above the all-time high of 113.46 posted on April 4 would be a particularly bullish technical development. CAT on Tuesday rallied going into its earnings report before the open on Friday due to carry-over support from the recent spate of positive earnings reports. CAT, with a market cap of $70 billion, is the world's largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines.

cat_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 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: 100% Buy
Medium-Term Indicators: 100% Buy
Long-Term Indicators: 100% Buy
Overall Average 88% Buy

Barchart links for further information:

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Technicals Summary
Trader's Cheat Sheet™

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Income Statement-Quarterly
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Chart of the Day Archive
View Past Chart of the Day Reports

Tuesday, April 26, 2011

5 Large Cap Pharmas on the move but I voice caution

The Large Cap Pharma sector is the fastest rising sector on Barchart when screening for the 1 month price change. The general investing public is very interested in this sector as evidenced by the 25,409 opinions expressed on Motley Fool on the 5 stocks I selected. Before buying make sure a pharma fits into your asset allocation plan and then please do you own further due diligence. Read my opinion at the end of this article. Let's look at these 5.

Merck (MRK) - a global research-driven pharmaceutical company dedicated to putting patients first. Established in 1891, Merck discovers, develops, manufactures and markets vaccines and medicines to address unmet medical needs. The company devotes extensive efforts to increase access to medicines through far-reaching programs that not only donate Merck medicines but help deliver them to the people who need them. Merck also publishes unbiased health information as a not-for-profit service.

Technical Factors:

100% Barchart short term technical buy signal
Trend Spotter buy signal
8 new highs and up 7.43% in the last month
Relative Strength Index is 69.87% and climbing
Trades around 35.60 with a 50 day moving average of 32.84

Fundamental Factors:

Wall Street brokerages have published 6 strong buy, 11 buy and 7 hold recommendations
Sales are expected to increase by 2.20% this year and decline by (1.30%) next year
Earnings are estimated to increase by 7.90% this year, 2.70% next year and 4.90% annually for the next 5 years

General Investor Sentiment:

3,596 opinions on Motley Fool
CAPS members vote 2,670 to 203 that the stock will beat the market
All Stars agree 681 to 42

Eli Lily (LLY) discovers, develops, manufactures, and sells products in one significant business segment -pharmaceutical products. The company directs its research efforts primarily toward the search for products to diagnose, prevent and treat human diseases. The company also conducts research to find products to treat diseases in animals and to increase the efficiency of animal food production.

Technical Factors:

100% Barchart overall technical buy signal
Trend Spotter buy signal
11 new highs and up 6.58% in the last month
Relative Strength Index 71.87% and rising
Trades around 36.66 with a 50 day moving average of 34.94

Fundamental Factors:

Wall Street brokerages have released 1 strong by, 2 buy and 13 hold recommendations
Sales expected to increase by 1.70% this year and decrease by (6.10%) next year
Earnings are expected to decrease by (9.90%) this year, (13.10%) next year and (4.79%) annually for the next 5 years

General Investor Sentiment:

1,1776 opinions expressed on Motley Fool about this stock
CAPS members vote 1,247 to 89 that the stock will beat the market
The more experienced All Stars agree 420 to 20

Johnson & Johnson (JNJ ) is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. The company's worldwide business is divided into three segments: Consumer; Pharmaceutical; and Professional.

Technical Factors:

100% Barchart short term technical buy signal
Trend Spotter buy signal
9 new highs and up 10.36% in the last month
Relative Strength Index 80.34% and rising
Trades around 65.10 with a 50 day moving average of 60.17

Fundamental Factors:

Wall Street brokerages have published 4 strong buy, 5 buy and 13 hold recommendations to their clients
Sales are expected to increase by 4.40% this year and 4.20% next year
Earnings are expected to increase by 1.70% this year, 6.40% next year and 6.33% annually for the next 5 years

General Investor Sentiment:

One of the most widely followed stocks on Motley Fool with 16,722 readers expressing an opinion
CAPS members vote 13,139 to 488 that the stock will beat the market
The All Stars vote 3,042 to 53 for the same result

Sanofi-Aventis (SNY) a global pharmaceutical company that contributes to enhance life by providing medicines, vaccines, and integrated health care solutions adapted to local needs and means primarily in Europe and the United States. The company is engaged in the research, development, manufacture and marketing of health care products. Its strategy is built around three priorities to reach its goals and ensure sustainable growth. The priorities are: increasing innovation in Research and Development, adapting Group structures to future challenges and seizing external growth opportunities. Sanofi-Aventis specializes in six therapeutic areas: thrombosis, cardiovascular, metabolic disorders, oncology, central nervous system (CNS) and internal medicine. The Company offers vaccines in five areas: pediatric combination vaccines, influenza vaccines, adult and adolescent booster vaccines, meningitis vaccines, and travel and endemic vaccines. Sanofi-Aventis is headquartered in Paris, France.

Technical Factors:

96% Barchart overall technical buy signal
Trend Spotter buy signal
17 new highs and up 12.11% in the last month
Relative strength Index 73.76% and rising
Trades around 38.84 with a 50 day moving average of 35.32

Fundamental Factors:

Wall Street brokerages have released 1 strong buy, 1 buy and 3 hold reports for their brokers to call clients about
Sales are expected to decrease by (.50%) this year, but increase by 4.00% next year
Earnings are expected to increase by 24.80% this year but decrease by (25.90%) next year. The 5 year EPS projection is a decrease of (2.45%) annually

General Investor Sentiment:

Only 1,282 opinions on Motley Fool
CAPS members vote 899 to 43 that the stock will beat the market
The more experienced All Stars vote in the same direction 332 to 8

Novartis (NVS) is committed to improving health and well-being through innovative products and services. The company aspires to capture and hold a leadership position in all of their businesses with a strong, sustainable performance based on continuous innovation. Their long-term success is founded on meeting the expectations of all our stakeholders - their customers, their people, their shareholders and the communities in which they live and work.

Technical Factors:

96% Barchart overall technical buy signal
Trend Spotter buy signal
6 new highs and up 3.37% in the last month
Relative strength Index 62.33% and rising
Trades around 57.64 with a 50 day moving average of 55.19

Fundamental Factors:

Wall Street brokerages have 5 strong buy 1 buy and no hold recommendations
Sales are expected to increase by 13.20% this year and 1.80% next year
Earnings are expected to increase by 3.00% this year, 5.80% next year and 4.65% annually for the next 5 years

General Investor Sentiment:

2,033 members have expressed opinions on Motley Fool
CAPS members vote 1,462 to 48 that the stock will beat the market
All Stars agree 516 to 7

I sorry but I'm not as high on this sector as everyone else is. You may ask why? The technical indicators are positive, Wall Street has buy recommendation out and the general investing public thinks the sector will beat the market. My view is wishing won't make it so. There are too many "IF's" here. Sales projections in the future are good only "IF" new drugs are discovered. Profit projections are good only "IF" subsidized medical care is approved.

For me to put my money down I need to see all the planets in alignment: growing economy, rising stock market, solid double digit projections of sales and earnings and strong and consistent price momentum.

This sector lacks double digit growth projections and strong and consistent price momentum. Only traders and stop loss disciplined investors should be in this sector.

http://www.barchart.com/

Barchart Moning Call 4/26

Barchart Morning Call

Barchart.com - 1 hr 25 mins ago

Overnight Developments

Global stocks are mixed with the European Euro Stoxx 50 up +0.14% and June S&Ps up +4.40 points. The euro rose to a 16-1/4 month high against the dollar after ECB President Trichet said the ECB must continue "solidly anchoring" inflation expectations, which bolstered speculation of further ECB rate hikes. Crude oil weakened after the CEO of Saudi Arabia's state oil company, Saudi Arabian Oil Co., said it is "not comfortable" with the current price of oil and is concerned about its effect of global economic growth. UBS AG surged nearly 6% and is leading European stocks higher after Switzerland's biggest lender reported Q1 net income of 1.81 billion francs, beating analysts' estimates of 1.69 billion francs, as the bank attracted the most new money from wealthy customers since the end of 2007. Credit-default swaps to insure Greek government debt jumped 13 bp to a record 1,345 bp after Europe's statistics agency reported Greece's 2010 budget gap was 10.5% of GDP, more than the 9.4% the Greek government reported back in Feb. A member of German Chancellor Merkel's council of economic advisers said Greece will have to restructure its debt and should avoid waiting too long to do it, while ECB Council member and ECB Chief Economist Stark said a debt restructuring by a euro country risks triggering a banking crisis that in a "worst case" could exceed the effects of the failure of Lehman Brothers Holdings.
The Asian stock markets today closed lower with Japan down -1.17%, Hong Kong -0.54%, China -0.57%, Taiwan -0.03%, Australia closed for holiday, Singapore -0.50%, South Korea -0.45%, India -0.20%. Chinese bank stocks weakened and led the Shanghai Stock Index lower after 3 people with knowledge of the matter said China's banking regulator set capital targets for the nation's 5 biggest lenders above the minimum 11.5% ratio last month amid concern that credit risks may rise. A report in the Economic Information Daily by a member of China's State Council Development Research Center said the PBOC may raise interest rates and bank reserve requirement ratios in Q2 to control liquidity. Japanese stocks closed lower after the yen rallied to a 4-week high against the dollar, which may hurt exporters' earnings as they repatriate overseas profits back into yen, while Nintendo fell 1.6% after it said sales and profits this year may grow less than analysts' estimates.

Overnight U.S. Stock News

June S&Ps this morning are trading up +4.40 points. The US stock market yesterday settled mixed as a drop in consumer-staples companies offset stronger-than-expected Mar new home sales: Dow Jones -0.21%, S&P 500 -0.16%, Nasdaq Composite +0.20%. The Dow climbed to a 2-3/4 year high, the Nasdaq posted a 2-1/4 month high and the S&P 500 posted a 1-1/2 week high. Bullish factors included (1) the stronger than expected Mar US new home sales along with the upward revision to Feb (Mar +11.1% to 300,000 versus expectations of +12.0% to 280,000 and Feb revised up to a -13.5% drop to 270,000 from the originally reported -16.9% decline to 250,000), and (2) continued earnings optimism as corporate earnings results so far this earnings season have exceeded projections by 9.6%.
Bearish factors for stocks included (1) weakness in consumer-staples companies after Kimberly-Clark cut its profit forecast due to an increase in material costs, which raises concern that the bottom line of other companies may be hurt be rising commodity prices, (2) the slide in energy producers after crude oil fell back from a 2-1/2 year high, and (3) the action by Morgan Stanley to cut its estimate for US home price declines to down -39% from their 2006 peak from an earlier estimate of down -35%.

Today's Market Focus

June 10-year T-notes this morning are up +1 tick. T-note prices yesterday finished higher after the stock market erased an early rally and as the Fed bought Treasuries as part of its QE2 asset-purchase program: TYM11 +11, FVM11 +8.2, EDU11 -0.5. Bullish factors included (1) increased safe-haven demand for Treasuries after the stock market declined, and (2) the Fed's action to purchase $7.24 billion of Treasuries as part of its QE 2 asset-purchase program. Bearish factors included (1) the stronger than expected Mar US new home sales along with the upward revision to Feb (Mar +11.1% to 300,000 versus expectations of +12.0% to 280,000 and Feb revised up to a -13.5% drop to 270,000 from the originally reported -16.9% decline to 250,000), and (2) supply pressures ahead of the Treasury's $35 billion 2-year T-note auction on Tuesday.
The dollar index this morning is weaker with the dollar/yen -0.17 yen and the euro/dollar +0.25 cents. The dollar index yesterday weakened on speculation that the FOMC this week will keep interest rates at a record low, which will keep the dollar's interest rate differentials weak: Dollar Index -0.122, USDJPY -0.017, EURUSD +0.00288. Bearish factors included (1) an early rally in commodity currencies against the dollar after crude oil rose to a 2-1/2 year high, and (2) speculation that the FOMC this week will keep interest rates at a record low, which may prompt inventors to shy away from dollar assets in favor of higher yielding ones. Bullish factors included (1) increased safe-haven demand for the dollar as the stock market declined, and (2) weakness in the yen against the dollar on speculation the BOJ this week will signal an increase in stimulus to help Japan's economy recover from its earthquake crisis.
June crude oil prices this morning are trading down -41 cents a barrel and June gasoline is +0.28 of a cent per gallon. Crude oil and gasoline prices yesterday retreated after an early rally faded and prices finished mixed on profit taking: CLM11 -$0.01, RBM11 +0.62. June crude rallied to a 2-1/2 year high but closed lower and Jun gasoline posted a contract high and nearest-futures May gasoline climbed to a 2-3/4 year high. Bearish factors included (1) the decline in the equity market which erodes optimism in the economic outlook and energy demand, and (2) technical selling after the energy markets failed to hold its gains to 2+ year highs. Bullish factors included (1) the weak dollar which encourages investment demand in commodities, and (2) comments from a Saudi Arabian oil official who said his country's oil output will stay at 12.5 million barrels a day, squashing rumors that the country was considering hiking output to 15 million barrels a day.

Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap) KO-Coca-Cola (BEST earnings consensus $0.87), AMZN-Amazon.com (0.86), UPS-United Parcel Service (0.85), MMM-3M Co. (1.44), F-Ford Motor (0.50), LMT-Lockheed Martin (1.51), ITW-Illinois Tool Works (0.84), BRCM-Broadcom (0.59), CMI-Cummins (1.44), BDX-Becton Dickson (1.30), COH-Coach (0.60), VLO-Valero Energy (0.36), GGP-General Growth Properties (0.04), ALTR-Altera (0.64), LO-Lorillard (1.56), WU-Western Union (0.34).
Global Financial Calendar

Tuesday 4/26/11
United States
0745 ET	ICSC (Int?l Council of Shopping Centers) weekly retailer sales.
0855 ET	Redbook weekly retailer sales.
0900 ET	Feb S&P/CaseShiller composite-20 home price index expected -0.4% m/m and -3.3% y/y, Jan ?0.2% m/m and 3.1% y/y.
0900 ET	FOMC begins 2-day policy meeting.
1000 ET	Apr U.S. consumer confidence expected +1.4 to 64.8, Mar ?8.6 to 63.4.
1000 ET	Apr Richmond Fed manufacturing index expected unchanged at 20, Mar ?5 to 20.
1130 ET	Weekly 4-week T-bill auction.
1300 ET	Treasury auctions $35 billion 2-year T-notes.
Japan
1950 ET	Mar Japan retail trade expected -6.0% m/m and -6.2% y/y, Feb +0.8% m/m and +0.1% y/y.
United Kingdom
n/a	Apr UK nationwide house prices, Mar +0.5% m/m and +0.1% y/y.

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Capital One -- COF --Barchart Chart of the Day


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Barchart.coms Chart of the Day - Capital One Financial (COF)

Barchart Research Team - Barchart.com - Mon Apr 25, 5:55PM CDT

Related Stocks

COF - Capital One Financial Corp.

Sym	Last	Chg	Pct
COF	54.45	+1.19	+2.23%

The "Chart of the Day" is Capital One Financial (COF), which showed up on Monday's list of stocks that had a new "Buy" signal from the Barchart "TrendSpotter" trading system. Capital One on Monday rallied by 2.23% to post a new 2-1/2 year high. In recent news on the stock, Capital One last Thursday posted strong Q1 earnings of $2.21 per share, far above the analyst consensus of $1.55. CLSA on Monday then upgraded Capital One to Outperform from Underperform. Capital One, with a market cap of $23 billion, is a leading U.S. credit card company.

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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

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

Monday, April 25, 2011

Websense is a 2 for 1

Not only is Websense (WBSN) a sound company but it may also be a buy out canidate from Qatalyst Partners. The stock is hitting new highs on Barchart for a number of reasons.

Websense Inc. (WBSN) provide employee Internet management products that enable businesses to monitor, report and manage how their employees use the Internet. The Websense Enterprise software and database product gives managers the ability to implement Internet access policies for different users and groups within their businesses, and supports their efforts to improve employee productivity, conserve network bandwidth and mitigate potential legal liability.

Technical Factors:

100% Barchart technical buy signals
Trend Spotter buy signals
10 new highs and up 8.85% in the last month
Relative Strength Index 75.47% and climbing
Trades around 24.85 with a 50 day moving average of 22.32

Fundamental Factors:

Wall Street brokerage analysts have 3 strong buy, 3 buy and 9 hold recommendations on this stock
Sales are expected to grow by 7.80% this year and 4.20% next year
Earnings are estimated to increase by 21.40% this year, 10.50% next year and 13.75% annually for the next 5 years

Investor Sentiment:

This S&P 600 stock has a decent following with 1713 investors on Motley Fool expressing an opinion
CAPS members vote 83 to 16 that the stock will beat the market
The more experienced All Stars agree with a vote of 29 to 1

In this sharks eats minnows world many of the successful S&P 600 stocks are buy out candidates. Here's one that appears to have buy out interest but even if a buyout at a premium doesn't occur the projections for growth in both sales and earnings are a reason to watch this stock.

NYSE Watchlist 4/25

Add these to your watch lists. They are NSYE stocks hitting the most frequent new 20 day highs on Barchart:

KFT - Kraft

Kraft Foods, Inc. (KFT) is the largest branded food and beverage company headquartered in the U.S. and the second largest in the world. They have a superior brand portfolio created and supported through dynamic product innovation, world class marketing, experienced management, global scale and strategic acquisitions. Consumers of all ages around the world enjoy their brands across the entire spectrum of food and beverage occasions: breakfast, lunch, dinner and snacks. Brands include Kraft, Nabisco, Oscar Mayer, Post, Maxwell House, Philadelphia, and Jacobs.

96% Barchart technical buy signal
Trend Spotter buy signal
19 new highs and up 9.06% in the last month
Relative Strength Index 74.30% and climbing
Trade around 33.38 with a 50 day moving average of 31.43

GSK - GlaxoSmithKline

GlaxoSmithKline (GSK) is one of the world's leading research based pharmaceutical and health care companies and is committed to improving the quality of human life by enabling people to do more, feel better and live longer. They also have leadership in four major therapeutic areas: anti-infectives, central nervous system (CNS), respiratory and gastro-intestinal/metabolic.

96% Barchart technical buy signal
Trend Spotter buy signal
18 new highs and up 9.44% in the last month
Relative Strength Index 71.68% and rising
Trades around 41.38 with a 50 day moving average of 38.76

BTH - Blyth

Blyth, Inc. (BTH) operates in the home fragrance products market. The company is engaged in the design, manufacture, marketing and distribution of an extensive line of home fragrance products primarily including scented candles, potpourri, outdoor citronella candles and environmental fragrance products. The company also offers a broad range of candle accessories, decorative gift bags and tags and seasonal decorations. It is also a producer of portable heating fuel and other institutional products sold, under various brand names, both domestically and internationally.

80% Barchart technical buy signal
Trend Spotter buy signal
17 new highs and up 46.11% in the last month
Relative Strength Index 87.48% and climbing
Trades around 46.61 with a 50 day moving average of 35.50

PEP - Pepisco

PepsiCo, Inc. (PEP) consists of: Frito-Lay Company, Pepsi-Cola Company, and Tropicana Products. PepsiCo brands are among the best known and most respected in the world and are available in countries and territories throughout the world. PepsiCo's success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of its people.

80% Barchart technical buy signal
Trend Spotter buy signal
17 new highs and up 5.16% in the last month
Relative Strength Index 69.41% and rising
Trades around 67.41 with a 50 day moving average of 64.40

SFUN - Soufun

SouFun Holdings Limited (SFUN) is a real estate Internet portal and home furnishing and improvement website in China. SouFun obtains its advertisements from online real estate advertisers. It has built a large and active community of users who are attracted by the comprehensive real estate, home furnishing and improvement content available on its portal which form the foundation of the Company's service offerings. SouFun maintains many offices in order to focus on local market needs and covers many cities providing real estate-related content, search services, marketing and listing services in China. SouFun Holdings Limited is headquartered in Beijing, China.

96% Barchart technical buy signal
Trend Spotter buy signal
16 new highs and up 35.60% in the last month
Relative Strength Index 74.18% and climbing
Trades around 22.78 with a 50 day moving average of 19.38

Watch these for current market action.

Barchart Morning Call 4/25

Barchart Morning Call

Barchart.com - 18 mins ago

Overnight Developments

Global stocks are mixed with the European Euro Stoxx 50 index closed for Easter Monday holiday, while June S&Ps are up +3.60 points. Treasuries are up slightly and the dollar weakened, which has prompted gains in commodities with gold posting yet another record high. Oil prices rose as escalating violence in the Middle East and Africa threatens to prolong supply disruptions. Crude oil prices also gained after a Saudi Arabian oil official said his country's oil output will stay at 12.5 million barrels a day, squashing rumors that the country was considering hiking output to 15 million barrels a day.
The Asian stock markets today closed mostly lower with Japan down -0.11%, China -1.53%, Taiwan -0.21%, Singapore -0.22%, South Korea +0.64%, India -0.09% Asian stock markets were undercut after China International Capital Corp. said that China's consumer prices may accelerate to +5/5% y/y this month. Japanese stocks also weakened after the Nikkei newspaper reported that the BOJ may cut its forecast for GDP growth in half for fiscal 2011 to +0.8% annualized from +1.6% annualized as a result of last month's earthquake crisis. Japanese automakers fell after Honda reported a 63% drop in auto production last month and Toyota reported a 30% decline in global auto output due to last month's earthquake. India's Sensex 30 Stock Index closed lower, led by a 3% drop in Reliance Industries, India's biggest company, after it reported Q1 net income of 53.8 billion rupees ($1.2 billion), below analysts' projections of 54.3 billion rupees. Korean automakers rose, which led South Korea's Kospi 200 Stock Index higher, after Kia Motors said it sold a record number of vehicles in Q1.

Overnight U.S. Stock News

June S&Ps this morning are trading up +3.60 points. The US stock market last Thursday closed higher as stronger-than-expected company earnings results trumped weaker-than-expected economic data: Dow Jones +0.42%, S&P 500 +0.53%, Nasdaq Composite +0.63%. The Dow climbed to a 2-3/4 year high, the Nasdaq posted a 2-1/4 month high and the S&P 500 posted a 1-1/2 week high. Bullish factors included (1) continued strong company earnings results as 81% of the 115 companies in the S&P 500 that posted earnings results since Apr 11 have beaten estimates, which bolsters confidence in the economic outlook, (2) the larger-than-expected increase in Mar leading indicators which have risen for 9 straight months along with the upward revision to Feb (Mar +0.4% versus expectations of +0.3% and Feb revised up to +1.0% from he originally reported increase of +0.8%), and (3) strength in mining and raw-material companies as gold surged to an all-time high and silver soared to a 31-year high.
Bearish factors for stocks included (1) the smaller-than-expected increase in weekly initial unemployment claims (-13,000 to 403,000 versus expectations of -22,000 to 390,000), (2) the larger-than-expected decline in the Apr Philadelphia Fed manufacturing index which fell to its lowest level in 5 months (-24.9 to 18.5 versus expectations of -7.0 to 36.4), and (3) the larger-than-expected decline in Feb FHFA home prices along with the downward revision to Jan (Feb -1.6% m/m versus expectations of -0.3% m/m and Jan revised down to -1.0% m/m from the originally reported -0.3% m/m).

Today's Market Focus

June 10-year T-notes this morning are up +2.5 ticks. T-note prices last Thursday finished higher as weaker-than-expected economic data offset the negative effects of a strong stock market: TYM11 +2.5, FVM11 +0.5, EDU11 +0.5. Bullish factors included (1) the smaller-than-expected decrease in weekly initial unemployment claims (-13,000 to 403,000 versus expectations of -22,000 to 390,000), (2) the larger-than-expected decline in the Apr Philadelphia Fed manufacturing index which fell to its lowest level in 5 months (-24.9 to 18.5 versus expectations of -7.0 to 36.4), and (3) the larger-than-expected decline in Feb FHFA home prices along with the downward revision to Jan (Feb -1.6% m/m versus expectations of -0.3% m/m and Jan revised down to -1.0% m/m from the originally reported -0.3% m/m). Bearish factors included (1) the larger-than-expected increase in Mar leading indicators which have risen for 9 straight months along with the upward revision to Feb (Mar +0.4% versus expectations of +0.3% and Feb revised up to +1.0% from the originally reported increase of +0.8%), and (2) reduced safe-haven demand for Treasuries after the stock market rallied.
The dollar index this morning is lower with the dollar/yen +0.06 yen and the euro/dollar +0.58 cents. The dollar index last Thursday dropped to a 2-2/3 year low as weaker-than-expected US economic data fueled speculation the Fed will keep its overly easy monetary policy intact and further weaken the dollar's interest rate differentials: Dollar Index -0.373, USDJPY -0.708, EURUSD +0.00291. The yen climbed to a 3-week high against the dollar and the euro soared to a 16-month high. Bearish factors included (1) the smaller-than-expected decline in weekly US jobless claims along with the larger-than-expected decline in the Apr Philadelphia Fed manufacturing index to a 5-month low, which hints at economic weakness and is dollar negative, (2) the rally in the British pound to a 16-month high against the dollar after Mar UK retail sales unexpectedly rose, and (3) supportive interest rate differentials for the euro after the 3-month Euribor rate rose to a 1-3/4 year high of 1.356%. Bullish factors included (1) the surge in yields on Greek, Portuguese and Irish government debt to euro-era records, which may boost the safe-haven demand for the dollar as it suggests a worsening of the European sovereign-debt crisis, and (2) the larger-than-expected decline in the Apr German IFO business climate, which is euro negative.
June crude oil prices this morning are trading up +45 cents a barrel and June gasoline is +1.53 cents per gallon. Crude oil and gasoline prices last Thursday fluctuated on either side of unchanged and finished higher as the weak dollar offset the larger-than-expected decline in the Apr Philadelphia Fed manufacturing index: CLM11 +$0.84, RBM11 +2.39. June crude rallied to a 1-1/2 week high and Jun gasoline posted a contract high and nearest-futures May gasoline climbed to a 2-3/4 year high. Bullish factors included (1) the plunge in the dollar index to a 2-2/3 year low, which encourages investment demand in commodities, and (2) the rally in the S&P 500 to a 1-1/2 week high, which bolsters confidence in the economic outlook and energy demand. Bearish factors included (1) the larger-than-expected decline in the Apr Philadelphia Fed manufacturing index which fell to a 5-month low and suggests weakened energy demand, and (2) the smaller-than-expected drop in weekly US jobless claims, which indicates labor market weakness that may limit fuel demand.

Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap) ESRX-Express Scripts (BEST earnings consensus $0.69), JCI-Johnson Controls (0.56), KMB-Kimberly-Clark (1.17), AMP-Ameriprise Financial (1.33), NFLX-Netflix (1.13), CBE-Cooper Industries PLC (0.84), BUCY-Bucyrus International (1.20), PCL-Plum Creek Timber (0.24), JEC-Jacobs Engineering Group (0.62), MAS-Masco (-0.03), ACGL-Arch Capital Group Ltd. (-0.91), RGA-Reinsurance Group of America (1.57), WRB-WR Berkley (0.65), BEAV-BE Aerospace (0.46), LPLA-LPL Investment Holdings (0.48).
Global Financial Calendar

Monday 4/25/11
United States
1000 ET	Mar new home sales expected +12.0% to 280,000, Feb -16.9% to 250,000
1130 ET	Weekly 3-mo and 6-mo T-bill auctions.
Germany
n/a	Markets closed for Easter Monday.
Euro-Zone
n/a	Markets closed for Easter Monday.
United Kingdom
n/a	Markets closed for Easter Monday.
France
n/a	Markets closed for Easter Monday.

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Wednesday, April 27, 2011

Tuesday, April 26, 2011

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Monday, April 25, 2011