have a good weekend, enjoy!
surf
Every week is providing more and more opportunity for traders and investors. The unprecedented volatility just hit another all time high today with the VIX striking an astounding 89.53 which is truly "off the charts" by any standard.
ADVERTISEMENT
The market downturn will provide long term investors with once in a lifetime opportunities to purchase quality companies at deeply discounted prices. This is not the popping of the dot com bubble wherein the inherent value of the names themselves was highly questionable but rather fundamentally strong companies with solid offerings and balance sheets.
Traders can thank their lucky stars for the wide swings and active markets. There has never in history been such phenomenal and repeatable chances for the skilled short term market player to profit. Lets take a closer look at what happened during this exceptional week.
Monday saw the previous weeks ending rally continued on Ben Bernanke's and George Bush's positive guidance regarding the financial rescue package. Profit takers hit the market on Tuesday. This fact combined with billionaire Kurt Kerkorian's liquidation of his Ford (NYSE:F - News) shares pushed the market lower. Wednesday was another down day with a few bright spots. Airlines climbed sharply due to plummeting fuel prices and Apple (NasdaqGS:AAPL - News) performed nicely based on the ubiquitous iPhone smashing sales projections. Positive news hit the market on Thursday with bouncing oil lifting energy companies, leading to the DJIA and S&P 500 closing up on the day. Interestingly, Alan Greenspan admitted flaws in his free market ideology on Thursday, which may have panicked the market, as witnessed Friday.
Friday morning the index futures were locked limit down and the Moscow exchange actually closed its doors until Tuesday due to major losses. Stocks are down today, but not near as much as traders expected based on the morning future activity. The futures looked clearly like today was going to be the big drop.
Long term investors can gain an edge in these conditions by usingEDIT EDIT EDIT EDIT #$#%$%$%$#$#$#$#4343434343
Lexmark International (NYSE:LXK - News) - If you know computer printers, you know this popular computer printer and scanner maker. This $5 billion dollar revenue company was just upgraded from a 5 to a 6 long term PowerRating. Price has been down trending since September, but looks like a base may be forming here around the $25 to $28 per share range. They release third quarter results on October 21, 2008. Second quarter was strong with 50% year to year operating income growth, and a $158 million dollar share repurchase.
Tech Data Corp (NasdaqGS:TECD - News) - This Clearwater Florida based wholesale distributor of IT products was just upgraded from a 7 to an 8 long term PowerRating. Strong European results in the fiscal 2nd quarter of 2009 lifted most of the traditional metrics over last year same time. However, US performance was lagging over all this quarter. The CEO stated that they will be revamping the shipping and handling policy among other things in the next quarter to help lift performance. Technically, the stock has been in a downtrend over the last several weeks. It may have found a bottom here around the $20.00/share area.
Mc Donalds (NYSE:MCD - News) - This 6 rated international fast food hamburger king hit a low of 46 last week, but has since bounced up over 10 points from this low. Fundamentally, They recently announced a 6.1% global sales increase, strong growth in franchised and corporate owned stores and a 44% increase in adjusted EPS.
Service Corporation International (NYSE:SCI - News) - The premiere company in this field with a network of over 2000 funeral homes and cemeteries. The company is Service Corporation International SCI. It is resting with a 6 long term PowerRating and appears to be basing here, around $6.00/share, after a significant pull back on the chart.
Stocks In The News
Here is a sampling of stocks that caught my eye this week from the wires:
AT&T (NYSE:T - News) - Telephone, as its affectionately called on trading floors secured a $600 million dollar contract from Tennessee to revamp the state's phone system.
Emcore (NasdaqGM:EMKR - News) - Barron's suggested that the stock may hit $10.00/share if its successful with the creation and production of a more efficient solar cell.
OptionsXpress (NasdaqGS:OXPS - News) - The option broker crushed analyst profit estimates jumping on the news.
Carters Inc (NYSE:CRI - News) - The baby clothes maker beat third quarter earnings estimates.
This weeks top performers
Nektar Tech (NasdaqGS:NKTR - News)
Ikon Office Solutions (NYSE:IKN - News)
iShares Treasury Bond Fund LT
This weeks worst performers
Colonial Bancgroup (NYSE:CNB - News)
General Growth (NYSE:GGP - News)
Coventry Health (NYSE:CVH - News)
What to look for next week
Monday - New Home Sales
Tuesday - Consumer Confidence
Wednesday - FOMC Policy Statement
Thursday - Advanced GDP
Friday - Initial Claims, Personal Spending, Income
surf
Every week is providing more and more opportunity for traders and investors. The unprecedented volatility just hit another all time high today with the VIX striking an astounding 89.53 which is truly "off the charts" by any standard.
ADVERTISEMENT
The market downturn will provide long term investors with once in a lifetime opportunities to purchase quality companies at deeply discounted prices. This is not the popping of the dot com bubble wherein the inherent value of the names themselves was highly questionable but rather fundamentally strong companies with solid offerings and balance sheets.
Traders can thank their lucky stars for the wide swings and active markets. There has never in history been such phenomenal and repeatable chances for the skilled short term market player to profit. Lets take a closer look at what happened during this exceptional week.
Monday saw the previous weeks ending rally continued on Ben Bernanke's and George Bush's positive guidance regarding the financial rescue package. Profit takers hit the market on Tuesday. This fact combined with billionaire Kurt Kerkorian's liquidation of his Ford (NYSE:F - News) shares pushed the market lower. Wednesday was another down day with a few bright spots. Airlines climbed sharply due to plummeting fuel prices and Apple (NasdaqGS:AAPL - News) performed nicely based on the ubiquitous iPhone smashing sales projections. Positive news hit the market on Thursday with bouncing oil lifting energy companies, leading to the DJIA and S&P 500 closing up on the day. Interestingly, Alan Greenspan admitted flaws in his free market ideology on Thursday, which may have panicked the market, as witnessed Friday.
Friday morning the index futures were locked limit down and the Moscow exchange actually closed its doors until Tuesday due to major losses. Stocks are down today, but not near as much as traders expected based on the morning future activity. The futures looked clearly like today was going to be the big drop.
Long term investors can gain an edge in these conditions by usingEDIT EDIT EDIT EDIT #$#%$%$%$#$#$#$#4343434343
Lexmark International (NYSE:LXK - News) - If you know computer printers, you know this popular computer printer and scanner maker. This $5 billion dollar revenue company was just upgraded from a 5 to a 6 long term PowerRating. Price has been down trending since September, but looks like a base may be forming here around the $25 to $28 per share range. They release third quarter results on October 21, 2008. Second quarter was strong with 50% year to year operating income growth, and a $158 million dollar share repurchase.
Tech Data Corp (NasdaqGS:TECD - News) - This Clearwater Florida based wholesale distributor of IT products was just upgraded from a 7 to an 8 long term PowerRating. Strong European results in the fiscal 2nd quarter of 2009 lifted most of the traditional metrics over last year same time. However, US performance was lagging over all this quarter. The CEO stated that they will be revamping the shipping and handling policy among other things in the next quarter to help lift performance. Technically, the stock has been in a downtrend over the last several weeks. It may have found a bottom here around the $20.00/share area.
Mc Donalds (NYSE:MCD - News) - This 6 rated international fast food hamburger king hit a low of 46 last week, but has since bounced up over 10 points from this low. Fundamentally, They recently announced a 6.1% global sales increase, strong growth in franchised and corporate owned stores and a 44% increase in adjusted EPS.
Service Corporation International (NYSE:SCI - News) - The premiere company in this field with a network of over 2000 funeral homes and cemeteries. The company is Service Corporation International SCI. It is resting with a 6 long term PowerRating and appears to be basing here, around $6.00/share, after a significant pull back on the chart.
Stocks In The News
Here is a sampling of stocks that caught my eye this week from the wires:
AT&T (NYSE:T - News) - Telephone, as its affectionately called on trading floors secured a $600 million dollar contract from Tennessee to revamp the state's phone system.
Emcore (NasdaqGM:EMKR - News) - Barron's suggested that the stock may hit $10.00/share if its successful with the creation and production of a more efficient solar cell.
OptionsXpress (NasdaqGS:OXPS - News) - The option broker crushed analyst profit estimates jumping on the news.
Carters Inc (NYSE:CRI - News) - The baby clothes maker beat third quarter earnings estimates.
This weeks top performers
Nektar Tech (NasdaqGS:NKTR - News)
Ikon Office Solutions (NYSE:IKN - News)
iShares Treasury Bond Fund LT
This weeks worst performers
Colonial Bancgroup (NYSE:CNB - News)
General Growth (NYSE:GGP - News)
Coventry Health (NYSE:CVH - News)
What to look for next week
Monday - New Home Sales
Tuesday - Consumer Confidence
Wednesday - FOMC Policy Statement
Thursday - Advanced GDP
Friday - Initial Claims, Personal Spending, Income
CG - News) - A California based electric/gas utility company that was just upgraded from a 4 to a 5 long lerm PowerRating. Like Northrup above, the shares have been in a downtrend but appear to have found support around the $30/share level and have stabilized over the last several days. Net income under GAAP rules was up .06 cents and guidance has been reaffirmed at $3.15 to $3.25/share. This is another company that deserves serious consideration.
