Weekly Market Overview

US. stocks sank more than 300 points early this week amid bleak corporate forecasts led by the financial sector. Many economists are also concerned that the Federal Reserve may be acting too strongly to lower interest rates at the expense of the declining U.S. dollar and consumer. Federal Reserve officials also warned that more home foreclosures were coming leading to more bank write-downs despite sound cash levels. All in all, the soft economy and weak consumer spending is creating a difficult profit environment for most firms while investors are quick to sell given the bleak outlook. On a positive note, this could mean that there are many deals to be had in today's market!

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. The 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 Corporation (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.
   

Technical Analysis

1. Arthrocare Corporation (ARTC) - Intermediate-term bullish head and shoulders bottom.
2. Bunge Limited (BG) - Long-term bullish continuation diamond.
3. Harmony Gold Mining Company (HMY) - Long-term bullish megaphone bottom.
4. Viropharma Incorporated (VPHM) - Intermediate-term bullish bottom triangle.
5. Omnivision Technologies (OVTI) - Intermediate-term bullish double bottom.
   

Stock of the Week : Ackman Vs. Whitman (MBI)

Bond insurer MBIA, Inc. (NYSE: MBI) seem to be dropping like rocks, but that isn’t deterring respected value investor Martin Whitman’s Third Avenue Funds from increasing its stake in the company. The move pits him directly against the famous activist investor Bill Ackman’s Pershing Square, which has taken an aggressive short position in the bond insurers and sees imminent bankruptcy. So, where should you place your bets? (Read More)

Article of the Week : Short Selling for the Average Investor

Short selling has traditionally been a technique reserved for the expert traders and investors, but a new set of ETFs released by ProShares may quickly change the landscape. Now, average investors can do more than just sit on the sidelines in a bear market – they can “safely” purchase ETFs that will enable them to profit from declines in the marketplace without being forced to open a margin account. (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 trended down this week as growing concerns about the housing market and consumer spending sparked renewed worries about stagflation. A series of poor jobs reports, declining interest rates, a rise in oil prices, increasing credit card delinquencies, and deepening troubles in the housing market all strongly point to this direction. The Federal Reserve insists that these rate cuts are necessary in order to boost the economy, which it deems more important than the consumer. The result is a bet that the economy will turn around at the cost of skyrocketing consumer prices - a theory that, if wrong, could spark the feared stagflation and send the economy into new lulls. In the end, these negative concerns about the future combined with positive interest rate activity is making this market extremely volatile.

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. The 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 Corporation (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.
   

Technical Analysis

1. Barrick Gold Corporation (ABX) - Intermediate-Term Bullish Continuation Diamond.
2. Central European Distribution Corporation (CEDC) - Intermediate-Term Bullish Symmetrical Continuation Triangle.
3. Omnivision Technologies  Incorporated (OVTI) - Intermediate-Term Bullish Head and Shoulders Bottom.
4. Petroleo Brasileiro Sa Petrobras (PBRA) - Intermediate-Term Bullish Upside Breakout.
5. Cogent Incorporated (COGT) - Intermediate-Term Bullish Double Bottom.
   

Stock of the Week : Elan Corporation (ELN)

Elan Corporation (NYSE: ELN) is a pharmaceutical turnaround story that may soon get even better. The pharmaceutical company had a brush with bankruptcy in 2002 and reported a wider-than-expected loss of $405 million for 2007. However, the company said it expects a sharp turnaround in 2008, forecasing revenue growth of over 30 percent and possibly exceed $1 billion, driven by sales of its flagship multiple sclerosis drug Tysabri. The company currently receives 50 percent of the revenues from the drug when sales exceed $700 million. Altogether this turnaround story already has shares trading near their 52-week high, but many investors believe that they could get much higher next year. (Read More)

Article of the Week : Short Selling for the Average Investor

Short selling has traditionally been a technique reserved for the expert traders and investors, but a new set of ETFs released by ProShares may quickly change the landscape. Now, average investors can do more than just sit on the sidelines in a bear market – they can “safely” purchase ETFs that will enable them to profit from declines in the marketplace without being forced to open a margin account. (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 were mixed today after oil prices soared above $100 barrel and reignited fears that inflation will further injure the already troubled economy. These higher oil prices combined with falling home prices and a volatile stock market has many consumers curbing their spending and worried about the future. The Dow Jones moved down around 11 points while other major indexes also closed lower on the day, but advacing issues are head of decliners on the New York Stock Exchange. In the end, the economy still can add oil back to its concerns today as investors struggle to grip just how severely all of this will affect the all-important consumer.

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. The 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 Corporation (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.
   

Technical Analysis

1. Priceline.Com Inc. (PCLN) - Intermediate-term bullish symmetrical continuation triangle.
2. Hansen Natural Corporation (HANS) - Intermediate-term bullish symmetrical continuation triangle.
3. Millicom International Cellular S.A. (MICC) - Intermediate-term bullish symmetrical continuation triangle.
4. Genentech Inc (DNA) - Intermediate-term bullish triple bottom.
5. Superior Essex Incorporated (SPSX) - Intermediate-term bullish megaphone bottom.
   

Stock of the Week : Verizon and AT&T (VZ, T)

Verizon Communications Inc. (NYSE: VZ) and AT&T Inc. (NYSE: T) shares moved sharply lower after the two telecom providers announced new flat-rate plans. The move marks a shift from high margin services to lower margin staples that could put pressure on margins and may spark further reduction in prices aimed at increasing users. The commoditization of the wireless voice service industry is a move that many investors expected but dreaded as it could end up curbing growth rates and reducing valuations for many telecom providers. So, what does all of this mean for shareholders of VZ and T? (Read More)

Article of the Week : Short Selling for the Average Investor

Short selling has traditionally been a technique reserved for the expert traders and investors, but a new set of ETFs released by ProShares may quickly change the landscape. Now, average investors can do more than just sit on the sidelines in a bear market – they can “safely” purchase ETFs that will enable them to profit from declines in the marketplace without being forced to open a margin account. (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

US stocks started the week lower after investors trimmed positions from last week's rally that saw the greatest increase in months. Financial firms moved lower on a rush of broker downgrades, while technology shares rose after Microsoft made its bid for Yahoo and Google may intervene. Many see this as a pause for the market to catch its breath after a strong rally follow the emergency rate cuts weeks ago. Nevertheless, many remain optimistic in a recovery while others still believe the United States is headed into 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.
   

Technical Analysis

1. Ust Inc. (UST) - Long-term bullish continuation diamond.
2. Aluminum Corporation Of China (ACH) - Intermediate-term bullish continuation wedge.
3. Sandisk Corporation (SNDK) - Intermediate-term bullish continuation wedge.
4. Cal-Maine Foods (CALM) - Intermediate-term bullish upside breakout.
5. W-H Energy Services (WHQ) - Long-term bullish continuation wedge.
   

Stock of the Week : J.C. Penney (JCP)

J.C. Penney (NYSE: JCP) has caught the eye of billionaire activist Carl Icahn who reporedly bought up a substantial stake in the company. The Deal Journal reported that the retailer may be among Icahn’s top five holdings, meaning his stake could run into the hundreds of millions of dollars. The move follows that of other activists, like William Ackman, into retailers that have been beaten down by a slowdown in consumer spending. Shareholders seem to be mixed on the news as shares started the day higher only to drop more than five percent. (Read More)

Article of the Week : Short Selling for the Average Investor

Short selling has traditionally been a technique reserved for the expert traders and investors, but a new set of ETFs released by ProShares may quickly change the landscape. Now, average investors can do more than just sit on the sidelines in a bear market – they can “safely” purchase ETFs that will enable them to profit from declines in the marketplace without being forced to open a margin account. (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 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.