Looking forward to seeing everyone at surf fest on Saturday evening!
what's we are looking at....
PowerRatings Weekly Outlook: ABC, IBM, ABV, AMAG, KO
Friday February 20, 9:11 am ET
Uncertainty in the economy has led to another down week in the stock market. The economic stimulus package is not yet being accepted as business as usual. The market appears to be rebelling against government intervention by trying to shake out any remaining bulls.
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Monday was Presidents' Day with the markets being closed. Tuesday saw the hammer of rebellion as fears of consumer credit defaults knocked down stocks while the Stimulus Package was being signed. Midweek, the Fed cut economic growth forecasts and housing hit a record low. Despite the continued dire news, stocks closed relatively flat on the day. A dramatic jump in wholesale inflation greeted investors on Thursday, knocking stocks near major lows. Friday is starting out with the DJIA futures down sharply on the heels of rising inflations and core consumer prices.
These types of situations create opportunity for savvy long term investors. I remain solid in the belief that the government cash infusion, bargain hunters, and a tremendous amount of cash just waiting to be deployed should lead stocks upward in 2009.
However, no one really knows what's going to happen in the future, we can just analysis the evidence and make the best educated decisions. EDiT EDiT EDiT
edit:
Amerisourcebergen (NYSE:ABC - News) - This 5 Long Term PowerRated pharmaceutical service company just announced a 12% increase in diluted EPS for the fiscal first quarter. Operating margins were up 3 basis points and Revenue gained by .3%. Technically, price has been uptrending nicely since November 24th. However, today price fell below the 200-day SMA at $37.00/share. The 50-day SMA looks like the next technical support level at $35.44/share.
International Business Machines (NYSE:IBM - News) - This computer giant has been awarded a 4 Long Term PowerRating and is the top rated stock in the DJIA. They recently announced record revenues, record pre-tax profits, record EPS, and record free cash flow for 2008. The firm has provided strong guidance into 2009 with an expectation of at least $9.20/EPS. They are constantly innovating and developing new ideas/products to stay on the cutting edge. The latest initiative involves cloud computing which seems to be one the most recent hot topic in techno-industrial circles. Technically, shares have been uptrending since December 24th. Price is nicely above the 50-day SMA yet still below the 200-day SMA at $105.58/share. Price was rejected off the $97.50/share level and is currently trading around $91.00/share.
AMBEV (NYSE:ABV - News) - This Brazilian based brewery trades in the U.S. as an ADR. They are the world's 5th largest brewery with operations in 14 countries including the United States. They also distribute Pepsi products in Latin America. The brewery is the number 1 Long Term PowerRated stock on the screener, but only has only been awarded the lowest PowerRating of a 1. They were positive by most metrics in the 3rd quarter, but strong results in North America couldn't fully offset a terrible beverage market in their home country. Technically, price was uptrending since February 1st, but recently steeply dropped off the trend line. It is now trading below the 50-day SMA around $42.00/share.
Advanced Magnetics (NasdaqGM:AMAG - News) - Another lowly 1 Long Term PowerRated stock hitting the second most requested level on the screener. They are a biopharmaceutical company with a proprietary iron compound used in diagnoses of cancer and other diseases. Costs were up due to research, and the company posted a loss in the 3rd quarter. They are working hard on getting their new substance Ferumoxytol on the market. Technically, price was in a gentle uptrend since mid January, making it above both the 50 and 200-day SMA's. However, over the last 2 days, shares have dropped back down to be sitting on the 200-day SMA at $36.62/share.
Coca Cola (NYSE:KO - News) - This soft drink giant is the highest ranked company on the most requested list earning a 4 Long Term PowerRating. They just announced volume increase of 4% and a 6% increase in cash flow in the 4th quarter. China and India saw huge jumps in sales volume. EPS was up 17% on the year. The company is continuing to show solid fundamentals and provided strong guidance into the future. Technically, price doubled bottomed around $40.50/share between November 2008 and now, bounced back up to the 50-day SMA 5 days ago, and has dipped back down to the $42.60/range.
Stocks In The News
Here are a few names catching my eye this week:
American Express (NYSE:AXP - News) - The larhest U.S. credit card company by purchases fell on rising consumer defaults.
Deere (NYSE

E - News) - The farm equipment maker was cut to sell by Goldman, dropped on the news.
General Motors (NYSE:GM - News) - Led the DJIA lower since they may need more government aid to survive.
Research in Motion (NasdaqGS:RIMM - News) - The blackberry maker after the CEO stated that the profit margin decline may be permanent.
UBS AG (NYSE:UBS - News) - News hit the wire at the close of trading that Swiss official are allowing the firm to hand over client data to U.S. officials despite solid Swiss bank secrecy laws. Plus negative news of an SEC investigation hit the wire with shares reacted by dropping.
Comcast Corp (NasdaqGS:CMCSA - News) - Dipped after canceling a share buy back program.
Volcano Corp (NasdaqGM:VOLC - News) - Climbed after the medical company said it would beat analysts estimates for 2009-02-18.
This Week's Top Performers
MACAU Capital (Nasdaq:MCIM - News)
Buffalo Wild Wings (NasdaqGS:BWLD - News)
Innovative Solutions (NasdaqGS:ISSC - News)
This Week's Worst Performers
Terex Corp (NYSE:TEX - News)
Life Partners (NasdaqGS:LPHI - News)
Penske Automotive (NYSE

AG - News)
What To Watch For Next Week
Tuesday - Consumer Confidence, Home Price Index
Wednesday - Home Sales, Crude Inventory
Thursday - Durable Goods, Initial Claims
Friday - GDP, PMI