SEC Investor Newsletter

Newsletter for October 21, 2008

editor@secinvestor.com (SECInvestor.com) — Mon, 20 Oct 2008 18:40:51 GMT

Weekly Market Overview

Wall Street received a boost today after bank-to-bank lending rates (known as Libor rates) dropped sharply. After two weeks of extreme volatility, many investors are hoping that an improvement in the credit markets will signal a bottom in the stock market. Meanwhile, hundreds of companies are set to report earnings this week while Federal Reserve Chairman Ben Bernanke is also set to testify before the House Budget Committee on the state of the economy.

Top 10 Stocks to Watch this Week

Fundamental Analysis

Emerson Electric Co. (EMR) - Emerson shares are trading near their 52-week lows despite a lack of any bad news. The world's largest maker of power equipment for oil companies beat estimates last quarter with a 6.6% rise in quarterly profits on strong overseas demand for software that manages oil refineries and power plants. Net income reached $612 million or 87 cents per share, compared to 72 cents a year earlier. The company also increased the lower end of its full-year forecast in a further show of confidence. (Read More)
Sears Holdings Corporation (SHLD) - Sears shares dropped sharply as the pressure on U.S. retailers continues to rise. The economic crisis has already claimed one of the largest home retail chains in the United States, Linens N' Things, and there are very few signs of recovery. In fact, many economists don't expect retailers to turn around until the second quarter of 2009 with consumer spending and commercial credit continuing to slow down. (Read More)
Petroleo Brasileiro SA (PBR) - Petroleo Brasileiro, or Petrobras as it's known in the investment community, shares recovered today after oil prices surged higher. OPEC is expected to announce a cut production to help boost prices, but a continued economic decline has many concerned about a further deterioration of demand. Despite this uncertainty, Petrobras continues to experience record oil production and continued successes in its deep water drilling off the coast of Rio de Janeiro. (Read More)
ConAgra Foods, Inc. (CAG) - ConAgra shares may be trading well off of their 52-week highs, but some investors believe this stock is a bargain. The food processing company lost ground over the past year as commodity prices rose, putting pressure on its profit margins. However, the recent retreat in commodities has not jumped the stock up to its historic levels despite its hefty dividend yield of over four percent. (Read More)
Sysco Corporation (SYY) - Sysco shares opened lower despite a positive recommendation by CNBC's Jim Cramer on his Mad Money Lightning Round. The hedge fund manager turned television star believes that the company is well run and management is capable of doing well even in a difficult time for the industry. As a result, Cramer recommended that his viewers buy it other than on a pullback, which means that investors may have to wait a bit before getting in this week. (Read More)

Technical Analysis

Gold Fields Ltd. Adr (GFI) - Intermediate-term bullish diamond bottom.
Innovative Solutions & Support (ISSC) - Intermediate-term bullish diamond bottom.
Hudson City Bancorp Inc. (HCBK) - Intermediate-term bullish continuation wedge.
Imclone Systems Inc. (IMCL) - Intermediate-term bullish ascending triangle.
Vulcan Materials Co (VMC) - Intermediate-term bullish continuation wedge.

Stocks of the Week : Why You Should Check Out Emerson Electric

Emerson Electric shares are trading near their 52-week lows despite a lack of any bad news. The world's largest maker of power equipment for oil companies beat estimates last quarter with a 6.6% rise in quarterly profits on strong overseas demand for software that manages oil refineries and power plants. Net income reached $612 million or 87 cents per share, compared to 72 cents a year earlier. The company also increased the lower end of its full-year forecast in a further show of confidence. (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.

Newsletter for September 29, 2008

editor@secinvestor.com (SECInvestor.com) — Mon, 29 Sep 2008 17:28:11 GMT

Weekly Market Overview

The United States stock markets got off to a weaker start as the financial markets displayed uncertainty ahead of the planned House vote on an unpopular $700 billion plan to bailout troubled financial companies. Investosr are also examining a last-second deal struck by WAchovia - the second major commercial bank to fail amid the crisis. Demand for safe government debt surged as the markets began the day 180 points lower and continued to drop from there. Many are speculating that it could be awhile before a turnaround takes effect even if a $700 billion package is passed.

Top 10 Stocks to Watch this Week

Fundamental Analysis

Sysco Corporation (SYY) - Sysco shares opened lower despite a positive recommendation by CNBC's Jim Cramer on his Mad Money Lightning Round. The hedge fund manager turned television star believes that the company is well run and management is capable of doing well even in a difficult time for the industry. As a result, Cramer recommended that his viewers buy it other than on a pullback, which means that investors may have to wait a bit before getting in this week. (Read More)
Blockbuster Inc. (BBI) - Blockbuster shares have fallen sharply over the past few months as competition has heated up, but many experts believe that this move was not fundamentally driven. Same-store revenues have increased 9% as general and administrative expenses have dropped $17 million compared to a year ago. Rather, investors believe that it is the fear of an industry change that led to the decline - a concern that Blockbuster has plans to combat. (Read More)
First Solar, Inc. (FSLR) - First Solar shares led the decline of the solar sector after the House of Representatives moved to jeopardize solar energy tax breaks that were renewed in the Senate's original bill. The revised bill retains the eight-year tax extension for solar energy, but alters their value to be much lower than anticipated. However, the bill faces a veto by the White House as it raises taxes and separates the Alternative Minimum Tax proposal from the main bill. (Read More)
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)
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)

Technical Analysis

Darling International Inc. (DAR) - Intermediate-term bullish continuation wedge.
Ezcorp Incorporated (EZPW) - Intermediate-term bullish symmetrical continuation triangle.
Nike Inc. (NKE) - Long-term bullish continuation diamond.
Omega Healthcare Investors Inc. (OHI) - Long-term bullish continuation diamond.
Palm Harbor Homes Inc. (PHHM) - 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.

Newsletter for September 22, 2008

editor@secinvestor.com (SECInvestor.com) — Mon, 22 Sep 2008 21:27:20 GMT

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

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)
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)
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)
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)
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

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

Newsletter for September 8, 2008

editor@secinvestor.com (SECInvestor.com) — Mon, 08 Sep 2008 17:59:04 GMT

Weekly Market Overview

The market soared higher at the open after the government bailed out Fannie Mae and Freddie Mac. The government's new plan boosts confidence in sectors like financials and home builders, but does not immediately alleviate worries about other areas of the economy. The Dow Jones gained over 300 points before falling substantially as the day came to an end. Meanwhile, bond prices fell sharply as emboldened investors looked for riskier but high-yielding bets. Finally, the U.S. dollar increased and helped oil move into lower territory.

Top 10 Stocks to Watch this Week

Fundamental Analysis

Petroleo Brasiliero (PBR) - Petroleo Brasiliero SA shares began the week on a positive note after CNBC's Jim Cramer recommended the stock on his Mad Money program last week. The hedge fund manager turned television star believe that Petrobras is a buy at these levels as it buys back stock and continues to drill for natural gas and oil. The Brazilian state-owned energy giant continues to be one of the largest oil companies in the world and recently discover significant new reserves. (Read More)
99 Cents Only Stores (NDN) - 99 Cents Only Stores may be getting more than they bargained for with one large investor. Akre Capital Management disclosed an 11.26 percent stake in the discount chain and recommended that it explore strategic alternatives to unlock shareholder value in a Schedule 13D/A filing with the SEC last week. These alternatives may include discontinuing certain businesses, repurchasing shares with excess cash and refocusing on maximizing profitability rather than expanding. (Read More)
Target Corporation (TGT) - Target shares started the week on a positive note as lower oil prices and a stronger dollar helped the recovering retailer. Oil futures dropped $7 per barrel after Hurricane Gustav hit the Gulf region with less force than initially feared. Prices were also impacted by a stronger dollar and concerns that the economic slowdown has curbed demand for energy. Retail stocks benefited as they tend to trade opposite of energy prices. (Read More)
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)
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)

Technical Analysis

Systemax Incorporated (SYX) - Intermediate-term bullish bottom triangle.
Universal Health Services Inc. (UHS) - Long-term bullish continuation diamond.
Perini Corporation (PCR) - Intermediate-term bullish bottom triangle.
Access Pharmaceuticals Incorporated (ACCP) - Long-term bullish bottom triangle.
Advance America Cash Advance Centers (AEA) - Intermediate-term bullish diamond bottom.

Stocks of the Week : Baidu Shares Surge Higher

Baidu.com, Inc. (NDAQ: BIDU) shares started the week on a positive note after falling sharply from its highs of $429 per share. Many investors had been concerned that the firm would not be able to keep up the growth rates needed to maintain its lofty valuation. Currently, Baidu trades at 81.99x earnings compared to Google's more modest 29.1x earnings and Yahoo's 25.32x earnings. However, continued bullish sentiment by investors and analysts has shares higher. (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.

Newsletter for September 2, 2008

editor@secinvestor.com (SECInvestor.com) — Tue, 02 Sep 2008 19:22:54 GMT

Weekly Market Overview

Stocks started the week on a positive note after oil prices plunged on reports that the Gulf Coast and its oil facilities have been spared from heavy damages from Hurricane Gustav. Light sweet crude is now down more than $8 per barrel on the New York Mercantile Exchange, easing Wall Street's concerns about Gustav and inflation's impact on the broader econom. The market optimism was also boosted by news that Korea Development Bank is in talks about taking part in a possible acquisition of Lehman Brothers.

Top 10 Stocks to Watch this Week

Fundamental Analysis

99 Cents Only Stores (NDN) - 99 Cents Only Stores may be getting more than they bargained for with one large investor. Akre Capital Management disclosed an 11.26 percent stake in the discount chain and recommended that it explore strategic alternatives to unlock shareholder value in a Schedule 13D/A filing with the SEC last week. These alternatives may include discontinuing certain businesses, repurchasing shares with excess cash and refocusing on maximizing profitability rather than expanding. (Read More)
Smith International, Inc. (SII) - Smith International shares moved marginally higher after CNBC's Jim Cramer recommended the stock on his Mad Money Lightning Round. The hedge fund manager turned television star believes the stock is a cheap oil driller that has been hammered by the market. With politicians increasingly in support of offshore drilling to relieve oil prices, Cramer believes that Smith is a winner going forward and a buy at these levels. (Read More)
Transocean Inc. (RIG) - Transocean shares began the week lower as oil prices dropped and the dollar strengthened. Any sustained drop in oil prices could make deepwater drilling projects less viable and decrease business for companies like Transocean. Meanwhile, a higher dollar tends to hurt pricing points for companies based in the United States. However, many experts remain bullish on the stock given their solid operating results and hefty backlog. (Read More)
Target Corporation (TGT) - Target shares started the week on a positive note as lower oil prices and a stronger dollar helped the recovering retailer. Oil futures dropped $7 per barrel after Hurricane Gustav hit the Gulf region with less force than initially feared. Prices were also impacted by a stronger dollar and concerns that the economic slowdown has curbed demand for energy. Retail stocks benefited as they tend to trade opposite of energy prices. (Read More)
Emerson Electric Co. (EMR) - Emerson shares rose marginally after CNBC's Jim Cramer recommended the stock on his Mad Money Lightning Round. The hedge fund manager turned television star is very bullish on the stock, saying that shares should be trading $5 higher. However, many analysts are bearish on the stock, citing a downturn in the U.S. industrial sector. So, where are Emerson Electric shares headed in the future? (Read More)

Technical Analysis

Syngenta Ag For Nvs (SYT) - Intermediate-term bullish continuation wedge.
Schnitzer Steel Industries Inc. (SCHN) - Intermediate-term bullish continuation wedge.
Tele Norte Leste Partticipacoes Sa (TNE) - Intermediate-term bullish symmetrical continuation triangle.
Geomet Incorporated (GMET) - Intermediate-term bullish symmetrical continuation triangle.
Calgon Carbon Corporation (CCC) - Intermediate-term bullish ascending continuation triangle.

Stocks of the Week : Target Corporation Moves Higher

Target Corporation (NYSE: TGT) shares started the week on a positive note as lower oil prices and a stronger dollar helped the recovering retailer. Oil futures dropped $7 per barrel after Hurricane Gustav hit the Gulf region with less force than initially feared. Prices were also impacted by a stronger dollar and concerns that the economic slowdown has curbed demand for energy. Retail stocks benefited as they tend to trade opposite of energy prices. (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.

Newsletter for August 25, 2008

editor@secinvestor.com (SECInvestor.com) — Mon, 25 Aug 2008 19:34:56 GMT

Weekly Market Overview

Stocks started the week lower on concerns about the financial sector despite positive reports about the housing sector. All of the Dow 30 declined, led by AIG that saw declines of more than five percent. Wall Street also has a close eye on oil prices, which have risen after last week's sharp decline. The only sector seeing a positive rebound was the housing market, which was helped by a successful auction at Freddie Mac and positive home sales news from an economic report. However, some weren't so sure about the news, saying that foreclosures boosted existing home sales, but ended up depressing home prices.

Top 10 Stocks to Watch this Week

Fundamental Analysis

99 Cents Only Stores (NDN) - 99 Cents Only Stores may be getting more than they bargained for with one large investor. Akre Capital Management disclosed an 11.26 percent stake in the discount chain and recommended that it explore strategic alternatives to unlock shareholder value in a Schedule 13D/A filing with the SEC last week. These alternatives may include discontinuing certain businesses, repurchasing shares with excess cash and refocusing on maximizing profitability rather than expanding. (Read More)
NVIDIA Corporation (NVDA) - Nvidia shares dropped marginally despite a positive recommendation by Joe Terranova on CNBC's Fast Money Final Trade. Shares declined today on analyst reports that the chipmaker may be falling behind compared to rival AMD Corporation's (AMD) products gained from its acquisition of ATI Technologies. Analysts hailed AMD's "asset lite" strategy to revamp its manufacturing operations as a great move in the right direction. (Read More)
Textron Inc. (TXT) - Textron shares rose marginally after CNBC's Jim Cramer recommended the stock on his Mad Money Lightning Round. The hedge fund manager turned television star believes that shares are coming off of their lows and the stock represents a compelling buy at these levels. The stock is trading at an affordable 9.73x earnings with a dividend yield of 2.41%, which makes it a buy for many value investors looking to get in at low levels. (Read More)
Genesco Inc. (GCO) - Genesco shares moved sharply higher after rival Foot Locker (NYSE: FL) announced better than expected earnings. The footwear retailer earned $0.25 per share in the second quarter, which is $0.23 better than analysts' $0.02 estimate. The better-than-expected earnings were driven by improvements in gross margins despite the poor economy. News of these improvements led to bullishness in Genesco and other companies in the sector. (Read More)
Smith International, Inc. (SII) - Smith International shares moved marginally higher after CNBC's Jim Cramer recommended the stock on his Mad Money Lightning Round. The hedge fund manager turned television star believes the stock is a cheap oil driller that has been hammered by the market. With politicians increasingly in support of offshore drilling to relieve oil prices, Cramer believes that Smith is a winner going forward and a buy at these levels. (Read More)

Technical Analysis

Carbo Ceramics Inc. (CRR) - Intermediate-term bullish symmetrical triangle.
Burlington Northern Santa Fe Corporation (BNI) - Intermediate-term bullish symmetrical triangle.
Oneok Partners Limited Partnership (OKS) - Intermediate-term bullish triple bottom.
H & E Equipment Services Incorporated (HEES) - Intermediate-term bullish double bottom.
Diebold Incorporated (DBD) - Intermediate-term bullish ascending continuation triangle.

Stocks of the Week : Activist Gives NDN Its 2 Cents

99 Cents Only Stores (NDN) may be getting more than they bargained for with one large investor. Akre Capital Management disclosed an 11.26 percent stake in the discount chain and recommended that it explore strategic alternatives to unlock shareholder value in a Schedule 13D/A filing with the SEC last week. These alternatives may include discontinuing certain businesses, repurchasing shares with excess cash and refocusing on maximizing profitability rather than expanding. (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.

Newsletter for August 18, 2008

editor@secinvestor.com (SECInvestor.com) — Mon, 18 Aug 2008 19:28:12 GMT

Weekly Market Overview

Wall Street fluctuated in early trading today as a rebound in oil prices sparked more uncertainty in the stock market. A rebound in oil could hurt consumers, the major drivers of the economy, who are already struggling with higher consumer prices and inflation. Meanwhile, Lowe's Company issued an outlook that came in below analyst expectations, but its 7.9 percent decline in Q2 profits was smaller than predicted. Overall, markets declined sharply towards the close and erased some of last week's gains.

Top 10 Stocks to Watch this Week

Fundamental Analysis

PetroChina Company Limited (PTR) - PetroChina shares continued their fall this week on oil and inflation fears. Chinese markets fell to their lowest level in 19 months following a 10% rise in China's producer price index, which measures the price of goods as they leave the factories. The rise is primarily due to rising energy costs, which is squeezing profit margins. Meanwhile, oil prices continue to fall on the spot market while existing contracts are still in place at higher prices. (Read More)
Chesapeake Energy Corporation (CHK) - Chespeake Energy shares may be well off of their highs this year, but a recovery isn't out of the question, according to many experts. The largest natural gas producer in the United States has come under pressure recently thanks to lower natural gas prices. However, many experts believe that natural gas prices have bottomed and that companieslike Chesapeake Energy are a bargain at these low levels. So, is this a company that investors should keep an eye on going forward? (Read More)
Walgreen Company (WAG) - Walgreen Company's shares extended their gains today after receiving a bullish recommendation by CNBC's Jim Cramer on his Mad Money Lightning Round. The hedge fund manager turned television star noted that he loved the drug store chain more than competitor CVS Caremark Corporation (CVS) and has been buying WAG consistantly for his charitable trust. The comments sparked a rally last week that many are expecting to extend through this week. (Read More)
Potash Corporation (POT) - Potash shares are continuing to fall last week amid worker strikes and the implications associated with the strike; however, the company expects expansion work on its Canadian potash mines to continue. These expansions will help boost capacity by 76 percent to 18 million tons by 2012 to help meet soaring demand. For now, the 500 workers on strike are likely to be a temporary supply disruption that will only end up jumping prices. (Read More)
Target Corporation (TGT) - Target's largest shareholder may get even larger as the retailer begins to buy back its own shares. William Ackman's Pershing Square already owns a 9.5 percent stake in Target, but announced it would seek regulatory approval if its stake goes above 10 percent during the retailer's repurchasing program. Target's actions to buy back shares would result in less shares on the market and could push Pershing's stake above 10 percent and trigger a "change of control" rule requiring such approval. (Read More)

Technical Analysis

Allion Healthcare Incorporated (ALLI) - Intermediate-term bullish bottom triangle.
Sanofi-Aventis Ads (SNY) - Intermediate-term bullish bottom triangle.
Wal-Mart Stores Incorporated (WMT) - Intermediate-term bullish continuation diamond.
Cascade Corporation (CAE) - Long-term bullish double bottom.
Energy Conversion Devices Inc. (ENER) - Intermediate-term bullish symmetrical continuation triangle.

Stocks of the Week : Ackman Continues Bet on Target

Target Corporation's (TGT) largest shareholder may get even larger as the retailer begins to buy back its own shares. William Ackman's Pershing Square already owns a 9.5 percent stake in Target, but announced it would seek regulatory approval if its stake goes above 10 percent during the retailer's repurchasing program. Target's actions to buy back shares would result in less shares on the market and could push Pershing's stake above 10 percent and trigger a "change of control" rule requiring such approval. (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.

Newsletter for August 11, 2008

editor@secinvestor.com (SECInvestor.com) — Mon, 11 Aug 2008 19:36:46 GMT

Weekly Market Overview

Stocks started the week with a modest decline in a volatile session amid mixed concerns about the economy. Oil prices fluxuated on concerns over fighting between Russia and Georgia as traders speculation on whether or not there would be supply disruptions as a result. Meanwhile, the dollar was mixed while gold prices rose slightly on the day. Light, sweet crude rose 52 cents to $115.72 per barrel on the New York Mercantile Exchange. Despite Monday's moves, Wall Street is relieved that the price of oil has fallen more than $30 from its July 11 high of $147.27, easing worries about overall inflation and a key pressure point for consumers.

Top 10 Stocks to Watch this Week

Fundamental Analysis

Petrohawk Energy (HK) - Petrohawk shares surged higher in recent weeks after CNBC's Jim Cramer recommended the stock on his Mad Money Lightning Round. The hedge fund manager turned television personality reiterated his belief that selling natural gas at $8 is a mistake and recommended that investors start looking at natural gas stocks. (Read More)
Honda Motor Company (HMC) - Japan's second-largest automaker has avoided much of the sector's troubles by boosting its international sales as well as marketing itself in the United States as the most gas-efficient brand. These efforts have made it one of the best performing car companies in the world. (Read More)
99 Cents Only Stores (NDN) - 99 Cents Only Stores rose sharply after MKM Partners maintained their "buy" rating and reduced their 12-month price from $11.50 to $9.50. The downward revision was far less than many were expecting and remains above the average analyst estimates for the company. (Read More)
PetroChina Company Limited (PTR) - PetroChina shares continued their fall this week on oil and inflation fears. Chinese markets fell to their lowest level in 19 months following a 10% rise in China's producer price index, which measures the price of goods as they leave the factories. The rise is primarily due to rising energy costs, which is squeezing profit margins. Meanwhile, oil prices continue to fall on the spot market while existing contracts are still in place at higher prices. (Read More)
Petroleo Brasileiro SA (PBR) - Petroleo Brasileiro, better known as Petrobras, shares have fallen sharply in recent weeks along with the price of oil. The brazilian oil giant is trading well off of its 52-week high of $77.61 and now resides in the low $50s. The big question now is whether or not the move is justified or simply another Wall Street overreaction. (Read More)

Technical Analysis

Optium Corporation (OPTM) - Long-term bullish bottom triangle.
Actuant Corporation (ATU) - Long-term bullish bottom triangle.
Meritage Home Corporation (MTH) - Long-term bullish diamond bottom.
First Bancorp Puerto Rico (FBP) - Intermediate-term bullish head and shoulders bottom.
Urban Outfitters Incorporated (URBN) - Intermediate-term bullish continuation diamond.

Stocks of the Week : Ethanol's Struggle with Corn Prices Continues

VeraSun Energy Corporation (NYSE: VSE) and Aventine Renewable Energy Holdings (NYSE: AVR) shares declined in early trading after Pacific Ethanol Inc. (NDAQ: PEIX) reported a steep second-quarter loss. The ethanol producer posted a 74% increase in net sales, but a wider net loss of $8.3 million compared to a net income of $2.2 million during the same period in 2007. The catalyst behind the drop has been the 67% increase in the price of corn, which is used in the production of ethanol. (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.