Weekly Market Overview

U.S. stocks dropped for a fifth straight session today but largely recovered from a dramatic open sparked by a global sell-off in equities around the world. The Dow opened nearly 465 points lower after the futures market predicted a 500 point drop on Monday's holiday. The average ended up down just 128 points at close, however, as investors looked towards an economic stimulus package and an emergency rate cut to help stocks recover. Recession concerns still remain strong, especially abroad where many are predicting problems.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Tyco Electronics (TEL) - After recently spinning off from Tyco this stock is down almost 10%, but is starting to catch the attention of value investors. The company is trading well below its peers with strong cash flows. It is also a victim of the spin-off effect, which has made it an even greater value to opportunistic investors. We believe that this company will outperform in the long-term.
2. Capital Southwest (CSWC) - Activist investor Ned Sherwood came out with an analysis on this company showing a $200/share valuation. The only thing holding shares back are practices by the company that can easily be changed if they so desire. Unfortunately, the company seems resistant to change now, but this is definitely a stock to watch incase they change their mind.
3. United Online (UNTD) - Classmates.com is one of the fastest growing social networking websites on the Internet and this company plans to spin it off real soon. Investors should keep an eye on this development as spin-offs not only represent great investment opportunities, but the social networking space is red hot with names like Facebook and Myspace in the news constantly.
4. Brinks Company (BCO) - Activist hedge funds Pirate Capital and MMI Investments are still fighting the company to unlock value through a divesture of several key businesses. Given the difficult credit market, some are now questioning whether or not this is possible. However, if credit markets improve and they hedge funds are successful during the next annual meeting, this stock could soar.
5. Ceridian Corp. (CEN) - This activist target has agreed to bend to the pressure of the hedge funds and is definitely a company to watch ahead of its annual meeting where it will fight to retain its incumbant board members. If Pershing Square is successful in installing its own board members, we could see significant share appreciation.
   

1. Beacon Roofing Supply Inc (BECN) - Intermediate-term bullish bottom triangle.
2. Knight Capital Group Incorporated (NITE) - Intermediate-term bullish megaphone bottom.
3. Patterson Companies Inc. (PDCO) - Intermediate-term bullish bottom triangle.
4. Fannie Mae (FNM) - Intermediate-term bullish head and shoulders bottom.
5. Seattle Genetics Inc. (SGEN) - Intermediate-term bearish megaphone top.
   

Stock of the Week : Borders Group (BGP)

Sprint Nextel Corporation (NYSE: S) shares dropped over 25 percent last week after the company announced major layoffs of 4,000 workers and the closing of approximately 125 stores in order to cut costs by $700 to $800 million per year. The telecom giant deemed these measures necessary in order to offset the loss of approximately 885,000 subscribers. Now, there is speculation that the company might be on the verge of a price war designed to win back some of its customers from rivals. (Read More)

Article of the Week : Activists Can Fail Too

Many activist investors, like Carl Icahn and Bill Ackman, are well known for taking an activist stance in their investments and producing strong returns. However, the best investors are not always perfect and following them blindly could be a bad idea. Target Corporation (NYSE: TGT) and Sears Holdings Corporation (NDAQ: SHLD) are two recent examples of how activist investors can make big bets in the wrong direction. (Read More)

Final Words

The market remains depressed and investors should be careful when investing in these climates. It is best to keep in stocks with international exposure and no credit risk.

Weekly Market Overview

U.S. stocks closed higher this week with the Dow moving up in triple-digits triggered by strong results from IBM and oversold conditions from last week (which was the worst first-eight-trading-days-of-a-year run in 17 years!). The markets were also helped by oil, technology, and financial services which all performed strongly. Meanwhile, the rest of the week's tone is expected to be set by banks like Citigroup and others that are expected to report earnings. Obviously, there is a lot of trouble left in the market but it appears as if corporate spending and international growth may be enough to avoid a recession.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Tyco Electronics (TEL) - After recently spinning off from Tyco this stock is down almost 10%, but is starting to catch the attention of value investors. The company is trading well below its peers with strong cash flows. It is also a victim of the spin-off effect, which has made it an even greater value to opportunistic investors. We believe that this company will outperform in the long-term.
2. Capital Southwest (CSWC) - Activist investor Ned Sherwood came out with an analysis on this company showing a $200/share valuation. The only thing holding shares back are practices by the company that can easily be changed if they so desire. Unfortunately, the company seems resistant to change now, but this is definitely a stock to watch incase they change their mind.
3. United Online (UNTD) - Classmates.com is one of the fastest growing social networking websites on the Internet and this company plans to spin it off real soon. Investors should keep an eye on this development as spin-offs not only represent great investment opportunities, but the social networking space is red hot with names like Facebook and Myspace in the news constantly.
4. Brinks Company (BCO) - Activist hedge funds Pirate Capital and MMI Investments are still fighting the company to unlock value through a divesture of several key businesses. Given the difficult credit market, some are now questioning whether or not this is possible. However, if credit markets improve and they hedge funds are successful during the next annual meeting, this stock could soar.
5. Ceridian Corp. (CEN) - This activist target has agreed to bend to the pressure of the hedge funds and is definitely a company to watch ahead of its annual meeting where it will fight to retain its incumbant board members. If Pershing Square is successful in installing its own board members, we could see significant share appreciation.
   

1. Novatel Wireless Inc. (NVTL) - Intermediate-term bullish continuation wedge.
2. Cardinal Health Incorporated (CAH) - Intermediate-term bullish double bottom.
3. Banco Bradesco Sa. (BBD) - Intermediate-term bullish continuation diamond.
4. Nasdaq Stock Market Incorporated (NDAQ) - Intermediate-term bullish continuation diamond.
5. Arch Capital Group Ltd. (ACGL) - Long-term bullish continuation diamond.
   

Stock of the Week : Borders Group (BGP)

Borders Group, Inc. (NYSE: BGP) is quickly catching the attention of many investors as it continues to pursue a turnaround strategy that is beginning to show results. The company’s stock is down over 50% since the beginning of 2007 as it continues to struggle against larger competitors and online sales. However, many investors are hoping that newcomer CEO George Jones can successfully orchestrate a turnaround for the troubled bookseller. (Read More)

Article of the Week : Activists Can Fail Too

Many activist investors, like Carl Icahn and Bill Ackman, are well known for taking an activist stance in their investments and producing strong returns. However, the best investors are not always perfect and following them blindly could be a bad idea. Target Corporation (NYSE: TGT) and Sears Holdings Corporation (NDAQ: SHLD) are two recent examples of how activist investors can make big bets in the wrong direction. (Read More)

Final Words

The market remains optimistic despite questionable yields and other economic data. While this is good news for investors in the short term, be sure to use caution and only invest prudently.

Weekly Market Overview

U.S. stocks plummeted this week after Countrywide Financial denied bankruptcy speculation and AT&T announced softness in its broadband and phone line business, pushing the Nasdaq Composite into an eighth day of losses. Meanwhile, the financials continued to weigh down the NYSE as the largest mortgage originator in the country continues to trade like it's going out of business. In the end, it is still an uncertain market with no real direction from economic indicators. But for now, people are assuming the worst...

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Tyco Electronics (TEL) - After recently spinning off from Tyco this stock is down almost 10%, but is starting to catch the attention of value investors. The company is trading well below its peers with strong cash flows. It is also a victim of the spin-off effect, which has made it an even greater value to opportunistic investors. We believe that this company will outperform in the long-term.
2. Capital Southwest (CSWC) - Activist investor Ned Sherwood came out with an analysis on this company showing a $200/share valuation. The only thing holding shares back are practices by the company that can easily be changed if they so desire. Unfortunately, the company seems resistant to change now, but this is definitely a stock to watch incase they change their mind.
3. United Online (UNTD) - Classmates.com is one of the fastest growing social networking websites on the Internet and this company plans to spin it off real soon. Investors should keep an eye on this development as spin-offs not only represent great investment opportunities, but the social networking space is red hot with names like Facebook and Myspace in the news constantly.
4. Brinks Company (BCO) - Activist hedge funds Pirate Capital and MMI Investments are still fighting the company to unlock value through a divesture of several key businesses. Given the difficult credit market, some are now questioning whether or not this is possible. However, if credit markets improve and they hedge funds are successful during the next annual meeting, this stock could soar.
5. Ceridian Corp. (CEN) - This activist target has agreed to bend to the pressure of the hedge funds and is definitely a company to watch ahead of its annual meeting where it will fight to retain its incumbant board members. If Pershing Square is successful in installing its own board members, we could see significant share appreciation.
   

1. Entergy Corporation (ETR) - Intermediate-term bullish upside breakout.
2. China 3c Group (CHCG) - Intermediate-term bullish bottom triangle.
3. King Pharmaceuticals Inc. (KG) - Intermediate-term bullish double bottom.
4. Gilead Sciences (GILD) - Intermediate-term bullish continuation diamond.
5. Sepracor (SEPR) - Intermediate-term bullish head and shoulders bottom.
   

Stock of the Week : Vonage Holdings (VG)

E*Trade Financial (NYSE:ETFC) is set to make several changes as a part of its broad restructuring plan. The brokerage announced that it will close its institutional trading business and sell its $3 billion asset-backed security portfolio. E*Trade also appointed a former Wachovia official and mortgage industry veteran Robert Burton as chief operating officer of its banking segment. Shareholders are hoping that these and other changes will help change the fortunes in the troubled brokerage. (Read More)

Article of the Week : Recession-Proof Your Portfolio

There’s a lot of talk about a recession these days from both politicians and economists, making many investors very nervous about the future. Recession is defined as two consecutive quarters of negative gross domestic product (GDP) growth. Currently, there is no consensus on whether we are in a recession, going into a recession, or simply in a bad market, but it never hurts to learn how to protect your stock portfolio. (Read More)

Final Words

The market remains optimistic despite questionable yields and other economic data. While this is good news for investors in the short term, be sure to use caution and only invest prudently.

Weekly Market Overview

The stock market fell today moving into the new year as investors continue to worry about the U.S. housing market and a credit crunch. The stock market is likely to continue to experience significant volatility as a result that will likely not subside until the middle of 2008 when the mess gets sorted out. Some economists are also concerned about a slowdown in consumer spending and a global credit crunch that could affect the world as a whole.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Tyco Electronics (TEL) - After recently spinning off from Tyco this stock is down almost 10%, but is starting to catch the attention of value investors. The company is trading well below its peers with strong cash flows. It is also a victim of the spin-off effect, which has made it an even greater value to opportunistic investors. We believe that this company will outperform in the long-term.
2. Capital Southwest (CSWC) - Activist investor Ned Sherwood came out with an analysis on this company showing a $200/share valuation. The only thing holding shares back are practices by the company that can easily be changed if they so desire. Unfortunately, the company seems resistant to change now, but this is definitely a stock to watch incase they change their mind.
3. United Online (UNTD) - Classmates.com is one of the fastest growing social networking websites on the Internet and this company plans to spin it off real soon. Investors should keep an eye on this development as spin-offs not only represent great investment opportunities, but the social networking space is red hot with names like Facebook and Myspace in the news constantly.
4. Brinks Company (BCO) - Activist hedge funds Pirate Capital and MMI Investments are still fighting the company to unlock value through a divesture of several key businesses. Given the difficult credit market, some are now questioning whether or not this is possible. However, if credit markets improve and they hedge funds are successful during the next annual meeting, this stock could soar.
5. Ceridian Corp. (CEN) - This activist target has agreed to bend to the pressure of the hedge funds and is definitely a company to watch ahead of its annual meeting where it will fight to retain its incumbant board members. If Pershing Square is successful in installing its own board members, we could see significant share appreciation.
   

1. Dryships Incorporated (DRYS) - Intermediate-term bullish symmetrical continuation triangle.
2. Cal-Maine Foods Inc. (CALM) - Intermeidate-term bullish symmetrical continuation triangle.
3. Yamana Gold Incorporated (AUY) - Intermediate-term bullish continuation wedge.
4. Ascent Solar Technologies Incorporated (ASTI) - Intermediate-term bullish symmetrical continuation triangle.
5. Nalco Holding Co. (NLC) - Intermediate-term bullish double bottom.
   

Stock of the Week : Vonage Holdings (VG)

Vonage Holdings Corporation (NYSE:VG) shares rose more than ten percent today after the company announced that it has settled its patent dispute with Nortel Networks without paying any money out of pocket. Investors have been concerned for some time that the VOIP provider may be forced into bankruptcy if it was ordered to pay hefty fines to old-telecom companies that it walked over. Shareholders applauded the move as it marks one of the final lawsuits hovering over the company. (Read More)

Article of the Week : How to Analyze the Retail Industry

Consumer spending is perhaps the most vital aspect of our economy and no industry feels its effects more than the retail industry. The industry is one of the largest in the United States and its growth is largely dependent on the economy as a whole. This article will take a look at how to analyze retailers... (Read More)

Final Words

The market remains optimistic despite questionable yields and other economic data. While this is good news for investors in the short term, be sure to use caution and only invest prudently.

Weekly Market Overview

The markets moved down today on talk from Alan Greenspan that the economy may be facing possible stagflation. Unfortunately, the rise in inflation means that investors won't be able to count on the Federal Reserve to cut interest rates much further. This notion was further enforced by the fact that the Fed only cut rates by a quarter point last week amid high-than-expected gains in wholesale and consumer prices. The problem with these prospects is that higher inflation will put pressure on consumers and therefore profits. Meanwhile, corporations will not be helped by a rate cut, which enables them to borrow money at a cheaper rate. This could spell trouble in the near future...

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Tyco Electronics (TEL) - After recently spinning off from Tyco this stock is down almost 10%, but is starting to catch the attention of value investors. The company is trading well below its peers with strong cash flows. It is also a victim of the spin-off effect, which has made it an even greater value to opportunistic investors. We believe that this company will outperform in the long-term.
2. Capital Southwest (CSWC) - Activist investor Ned Sherwood came out with an analysis on this company showing a $200/share valuation. The only thing holding shares back are practices by the company that can easily be changed if they so desire. Unfortunately, the company seems resistant to change now, but this is definitely a stock to watch incase they change their mind.
3. United Online (UNTD) - Classmates.com is one of the fastest growing social networking websites on the Internet and this company plans to spin it off real soon. Investors should keep an eye on this development as spin-offs not only represent great investment opportunities, but the social networking space is red hot with names like Facebook and Myspace in the news constantly.
4. Brinks Company (BCO) - Activist hedge funds Pirate Capital and MMI Investments are still fighting the company to unlock value through a divesture of several key businesses. Given the difficult credit market, some are now questioning whether or not this is possible. However, if credit markets improve and they hedge funds are successful during the next annual meeting, this stock could soar.
5. Ceridian Corp. (CEN) - This activist target has agreed to bend to the pressure of the hedge funds and is definitely a company to watch ahead of its annual meeting where it will fight to retain its incumbant board members. If Pershing Square is successful in installing its own board members, we could see significant share appreciation.
   

1. Andersons  Inc. (ANDE) - Intermediate term bullish continuation wedge.
2. Aventine Renewable Energy Holdings (AVR) - Intermediate term bullish megaphone bottom.
3. Honeywell International (HON) - Long term bullish continuation diamond.
4. Indevus Pharmaceuticals (IDEV) - Long term bullish continuation diamond.
5. Salesforce.Com (CRM) - Intermediate term bullish ascending triangle.
   

Stock of the Week : PDL BioPharma (PDLI)

PDL BioPharma (NDAQ:PDLI) announced that it has successfully sold the rights to its transplant drug IV Busulfex to Japan's Otsuka Pharmaceuticals for $200 in cash in deal that will close in the first quarter. The move should lessen the pressure on the drug maker by activist shareholders who have been pushing the company to unlock shareholder value for the past few months. (Read More)

Article of the Week : How to Analyze the Retail Industry

Consumer spending is perhaps the most vital aspect of our economy and no industry feels its effects more than the retail industry. The industry is one of the largest in the United States and its growth is largely dependent on the economy as a whole. This article will take a look at how to analyze retailers... (Read More)

Final Words

The market remains optimistic despite questionable yields and other economic data. While this is good news for investors in the short term, be sure to use caution and only invest prudently.

Weekly Market Overview

US stocks declined today, after four consecutive days of gains, after manufacturing reports came out showing falling activity in December amid growing concerns about the direction of the economy. Many are worried about the two million subprime mortgages, worth around $350 billion, that are expected to reset to a higher interest rate over the next 18 months. This combined with the resets on near-prime loans are expected to continue to climb until at least 2010, which caused many to call the strength of the economy - or at least the financial sector - into serious question. Stocks were bullish last week, however, ahead of a widely-anticipated rate cut by the Fed that many hope will help bolster the economy. In the end, investors should be very cautious...

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Tyco Electronics (TEL) - After recently spinning off from Tyco this stock is down almost 10%, but is starting to catch the attention of value investors. The company is trading well below its peers with strong cash flows. It is also a victim of the spin-off effect, which has made it an even greater value to opportunistic investors. We believe that this company will outperform in the long-term. (Read More)
2. Capital Southwest (CSWC) - Activist investor Ned Sherwood came out with an analysis on this company showing a $200/share valuation. The only thing holding shares back are practices by the company that can easily be changed if they so desire. Unfortunately, the company seems resistant to change now, but this is definitely a stock to watch incase they change their mind. (Read More)
3. United Online (UNTD) - Classmates.com is one of the fastest growing social networking websites on the Internet and this company plans to spin it off real soon. Investors should keep an eye on this development as spin-offs not only represent great investment opportunities, but the social networking space is red hot with names like Facebook and Myspace in the news constantly. (Read More)
4. Brinks Company (BCO) - Activist hedge funds Pirate Capital and MMI Investments are still fighting the company to unlock value through a divesture of several key businesses. Given the difficult credit market, some are now questioning whether or not this is possible. However, if credit markets improve and they hedge funds are successful during the next annual meeting, this stock could soar. (Read More)
5. Ceridian Corp. (CEN) - This activist target has agreed to bend to the pressure of the hedge funds and is definitely a company to watch ahead of its annual meeting where it will fight to retain its incumbant board members. If Pershing Square is successful in installing its own board members, we could see significant share appreciation. (Read More)

1. Cummins Incorporated (CMI) - Intermediate-term bullish continuation wedge
2. Goodyear Tire & Rubber Company (GT) - Long-term bullish symmetrical continuation triangle
3. Hlth Corporation (HLTH) - Long-term bullish continuation diamond
4. Corinthian Colleges Inc. (COCO) - Intermediate-term bullish ascending triangle
5. Hoku Scientific Inc. (HOKU) - Long-term bullish continuation wedge
   

Stock of the Week : Nelson Jilted on Wendy’s Bid (WEN)

Wendy’s International (NYSE:WEN) shareholders are in for another surprise after Citigroup and Merrill Lynch have reportedly withdrawn their funding for Nelson Peltz’s bid for the company. Meanwhile, JP Morgan and Lehman Brothers have also supposedly declined to offer bidders staple financing on the transaction. The activist investor will still have funding from Deutsche Bank and Royal Bank; however, increased trouble among the banking sector may prompt those two banks to withdraw their support as well. (Read More)

Article of the Week : How to Analyze the Retail Industry

Consumer spending is perhaps the most vital aspect of our economy and no industry feels its effects more than the retail industry. The industry is one of the largest in the United States and its growth is largely dependent on the economy as a whole. This article will take a look at how to analyze retailers... (Read More)

Final Words

The market remains optimistic despite questionable yields and other economic data. While this is good news for investors in the short term, be sure to use caution and only invest prudently.

Weekly Market Overview

The markets began the week on a negative note as worries about the subprime markets escalated yet again. News also surfaced that at least one hedge fund managed to profit handsomely by shorting credit and mortgage markets, leading to speculation that there is more money behind a short position that could fuel the fire. Several economic reports also surfaced showing a weaker US Dollar amid improving oil prices. Meanwhile, analysts remain divided as to whether the current market prices are bargains or whether we have only seen the tip of the iceburg when it comes to the credit mess. In the end, investors should be very cautious...

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Tyco Electronics (TEL) - After recently spinning off from Tyco this stock is down almost 10%, but is starting to catch the attention of value investors. The company is trading well below its peers with strong cash flows. It is also a victim of the spin-off effect, which has made it an even greater value to opportunistic investors. We believe that this company will outperform in the long-term. (Read More)
2. Capital Southwest (CSWC) - Activist investor Ned Sherwood came out with an analysis on this company showing a $200/share valuation. The only thing holding shares back are practices by the company that can easily be changed if they so desire. Unfortunately, the company seems resistant to change now, but this is definitely a stock to watch incase they change their mind. (Read More)
3. United Online (UNTD) - Classmates.com is one of the fastest growing social networking websites on the Internet and this company plans to spin it off real soon. Investors should keep an eye on this development as spin-offs not only represent great investment opportunities, but the social networking space is red hot with names like Facebook and Myspace in the news constantly. (Read More)
4. Brinks Company (BCO) - Activist hedge funds Pirate Capital and MMI Investments are still fighting the company to unlock value through a divesture of several key businesses. Given the difficult credit market, some are now questioning whether or not this is possible. However, if credit markets improve and they hedge funds are successful during the next annual meeting, this stock could soar. (Read More)
5. Ceridian Corp. (CEN) - This activist target has agreed to bend to the pressure of the hedge funds and is definitely a company to watch ahead of its annual meeting where it will fight to retain its incumbant board members. If Pershing Square is successful in installing its own board members, we could see significant share appreciation. (Read More)

1. Novartis Ag Ads (NVS) - Intermediate-term bullish megaphone bottom.
2. Par Pharmaceutical Companies  Inc. (PRX) - Intermediate-term bullish bottom triangle.
3. Exxon Mobil Corporation (XOM) - Long-term bullish continuation diamond.
4. Noble Corporation (NE) - Long-term bullish continuation diamond.
5. Abbott Laboratories (ABT) - Intermediate-term bullish diamond bottom.
   

Stock of the Week : Stake n Shake (SNS)

Steak n Shake (NYSE:SNS) may be in for a shake-up of its own after Sardar Biglari's Lion Fund increased its stake in the company from 7.3% to 8.6%, according to a Schedule 13D/A filing with the SEC. The activist hedge fund has been targeting the company lately, voicing their concern about mismanagement of the company by the present board of directors. (Read More)

Article of the Week : How to Analyze the Retail Industry

Consumer spending is perhaps the most vital aspect of our economy and no industry feels its effects more than the retail industry. The industry is one of the largest in the United States and its growth is largely dependent on the economy as a whole. This article will take a look at how to analyze retailers... (Read More)

Final Words

The market remains optimistic despite questionable yields and other economic data. While this is good news for investors in the short term, be sure to use caution and only invest prudently.