Weekly Market Overview

Wall Street began the week on a negative note after investors experienced anxiety over the government's plan to buy $700 billion in bank mortgage debt. Investors sought out safety in hard assets like gold and oil, which logged best-ever gains for a single session. The dollar has also headed lower while credit markets remain unease though not showing the frantic trading they saw last week. The Dow lost 370 points on the session today.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. The Procter & Gamble Company (PG) - The Procter & Gamble Company shares are up some 15% from their lows in 2008 as successful price hikes helped preserve margins. Many investors are now watching the consumer goods manufacturer as commodity and energy prices begin to fall, which could prove to be a further boost to margins. So, should investors take a second look at this non-cyclical consumer goods company? (Read More)
2. Freeport-McMoRan Copper & Gold Inc. (FCX) - Freeport shares dropped sharply as copper dropped to its lowest level in more than seven months. The London Metal Exchange fell as low as $6,980 a tonne as inventories posted their largest one-day surge in four years. Notably, the price is also below the key technical level of $7,000 a tonne, which means a further drop could be in the cards. The news sent miners like Freeport sharply lower on the day. (Read More)
3. America's Car-Mart, Inc. (CRMT) - America's Car-Mart shares dropped in mid-day trading after rival Carmax Inc. (KMX) reported weaker-than-expected earnings for the second quarter. However, many investors remain confident in a clever plan that has helped Car-Mart not only increase its sales during a tough economic environment, but also increase the selling prices of its vehicles. And on a valuation basis, their may be much more upside for the small turnaround play. (Read More)
4. Bank of Marin Bancorp (BMRC) - Bank of Marin is one regional bank that not only avoided the credit crisis, but may also become a quality takeover target. The bank has a squeaky clean balance sheet and posted five consecutive quarters of healthy earnings growth while achieving an impressive net interest margin of 5.52 percent. This was achieved by avoiding risky real estate loans and instead focusing on building more customer assets in non-interest bearing checking accounts. (Read More)
5. Longs Drug Stores Corp. (LDG) - Longs recently and accepted a buyout offer from CVS Caremark (CVS) for $71.50 per share ealier this month. Later, Walgreen Company (NYSE: WAG) submitted their own $75 per share bid for the company that was later rejected. So, how much is Long's really worth? Well, at least one activist investor believes it's worth nearly $90 a share and has an analysis to back it up. William Ackman's Pershing Square hedge fund outlined its ideas in regulatory filings with the SEC. (Read More)
   

Technical Analysis

1. Coleman Cable Incorporated (CCIX) - Intermediate-term bullish bottom triangle.
2. Bryn Mawr Bank Corporation (BMTC) - Intermediate-term bullish upside breakout.
3. Global Diversified Industries Incorporated (GDI) - Intermediate-term bullish continuation wedge.
4. Clayton Williams Energy Inc. (CWEI) - Intermediate-term bullish continuation wedge.
5. Osi Systems Inc. (OSIS) - Intermediate-term bullish bottom triangle.
   

Stocks of the Week : Ackman Attacks Long's Deal

Longs Drug Stores Corp. (NYSE: LDG) recently accepted a buyout offer from CVS Caremark (NYSE: CVS) for $71.50 per share ealier this month. Later, Walgreen Company (NYSE: WAG) submitted their own $75 per share bid for the company that was later rejected. So, how much is Long's really worth? Well, at least one activist investor believes it's worth nearly $90 a share and has an analysis to back it up. William Ackman's Pershing Square hedge fund outlined its ideas in regulatory filings with the SEC. (Read More)

Article of the Week : Who Really Benefits from Higher Oil Prices?

Oil prices rose today to hit a new record of $126.98 per barrel as inflation continues to soar. Higher oil prices tend to hit the same groups of stocks day after day: Exploration and production companies tend to increase sharply, transportation companies rise marginally, and refiners tend to drop sharply. The rationale for this price movement is simple... (Read More)

Final Words

The future of the U.S. economy remains uncertain as inflation continues to rise. Overall, the economy seems to be healing, but consumers may lag a bit behind as weakness in spending is seen for at least a couple more quarters.