Weekly Market Overview
Stocks began the week lower after economic concerns and higher oil prices dragged down the averages. Alan Greenspan hinted towards a possible U.S. recession raised some concerns; however, many are glad to see some corrective action after such rapid growth earlier this year. Tuesday will provide more economic data, including durable goods, consumer confidence, and existing home sales followed by Wednesday's GDP and new home sales reports. Major sectors targeted by sellers included transportation, financials, industrials, and semiconductors. This week should be an interesting one, but don't be overly optimistic...


Top 10 Stocks to Watch this Week
Fundamental Analysis
Our top five stocks to watch for fundamental investors are:

1. Cost-U-Less, Inc. (CULS) - There are two hedge funds currently involved with this stock, both calling for the company to put itself up for sale. One of the hedge funds has even said it would make an offer. If the two hedge funds are successful in lobbying management, the company should sell for at least $12 per share - a 40% gain. (More CULS articles...)
   
2. Temple Inland Inc. (TIN) - The company announced today that it would be following Carl Icahn's advice and breaking up the company. Shares spiked over 14% on the news, up almost 30% since we first began coverage! We believe that the value unlocked in these transactions will exceed the premium seen today; however, it may take awhile for these actions to materialize.
   
3. Ceridian Corporation (CEN) - Bill Ackman propposed that Ceridian spin off its Comdata division since the two share almost no synergies. Moreover, he said that the segment was being held back by the parent company. This is another great spin off opportunity that would help both the parent company and the child company... and Bill Ackman definitely knows what he is doing! Meanwhile, those close to the situation say that investment bankers are trying to find buyers for both businesses - a move which is angering the two activist hedge funds. (More CEN articles...)
   
4. Applebees International Inc. (APPB) - The Breeden Partners recently filed a series of Schedule 13Ds suggesting that the company improve several defficiencies, including its excessive executive compensation. If these issues are appropriately addressed, it could help the company save millions and increase their share price significantly. (More APPB articles...)
   
5. Electro Scientific Industries (ESIO) - Nierenberg Investment Management first lobbied this company to take several actions to return shareholder value. Since then, they have been joined by another hedge fund. Combined, these two should have enough leverage to at least warrant a response by management. If they are successful, it could mean special dividends or other measures aimed at unlocking value. (More ESIO articles...)
   

Technical Analysis
Our top five stocks to watch for technical analysts are:

1. Evergreen Solar, Inc. (ESLR) - Double bottom, long-term bullish
2. ENSCO International Incorporated (ESV) - Continuation diamond, long-term bullish
3. EMCORE Corporation (EMKR) - Continuation wedge, long-term bullish
4. Corinthian Colleges, Inc. (COCO) - Megaphone bottom, intermediate-term bullish
5. DayStar Technologies, Inc. (DSTI) - Head and shoulders bottom, intermediate-term bullish
   

Stock of the Week : Ceridian Corporation (CEN)
We believe that this Ceridian is a stock worth a second look in today's market. Everyone knows that Pershing Square and Relational Investors are attempting to force Ceridian to spin-off its Comdata unit, which could unlock millions in value. However, the company recently announced that it has hired an investment banker and those close to the situation are saying that these bankers are approaching private equity and corporate buyers who may be interested in acquiring the whole company. This is a win-win situation for investors, who stand to gain from a buyout premium and/or a Comdata spin-off! This makes CEN a stock worth watching closely over the next few weeks!

Read More on SECInvestor.com…


Filing of the Week : Form 10-K
Most investors look to 10-K filings when looking for information about a company. These filings are classified as "Annual Report" filings that encompass a company's yearly financials and relevent information. They contain an overview of the company, how they did last year, a detailed overview of their financials, and management discussion and analysis. Newer 10-Ks may also contain executive compensation discussion and analysis. These filings are required reading before investing in any company!

You can easily track these SEC filings with e-mail and RSS alerts using SECFilings.com!


Tip of the Week : Stocks Versus Forex
Many individual investors are only familiar with the stock and bond markets along with their derivatives (like options); however, there are many other opportunities in other markets like the foreign exchange market, where currencies are traded. There are several differences between trading stocks and trading forex contracts. First, unlike stock market accounts, almost all forex accounts are margined, sometimes as high as 500:1. This is because forex takes advantage of changes as small as one-thousandth of a cent - known as a pip. Secondly, the forex market is open 24 hours a day, since trading moves around the world until the weekend. Third, there are no commissions involved with trading forex - only the spread. And finally, the vast majority of forex traders use technical analysis as primary means to profit because of the high volatility. In general, many individuals find the market to be extremely risky, so it is important to practice trading on a demo or mini account before using any kind of real money.


Final Words
This week should be mostly mixed as investors await a clearer sign of economic direction. However, investors to date have shown significant optimism in their decision to stay vested in stocks and bonds, so there may be a bias to the upside towards the end of the week. Good luck trading!

Weekly Market Overview
U.S. markets were closed on Monday for Presidents Day, but quickly picked up where things left off on Tuesday. The week started off with several big stories, including oil spiking back above $60/barrel, the yen weakening vs. the dollar driving the Nikkei, and gold rallying on inflation worries. Meanwhile, Latin American markets reversed recent losses to make record closes, making a continued upward trend that has already lasted through last year. Domestic markets ended down so far this week with inflationary concerns and Fed uncertainties weighing down on stocks. Overall, this week should be mixed for most stocks as the economic climate struggles to find a balance.


Top 10 Stocks to Watch this Week
Fundamental Analysis
Our top five stocks to watch for fundamental investors are:

1. Cost-U-Less, Inc. (CULS) - There are two hedge funds currently involved with this stock, both calling for the company to put itself up for sale. One of the hedge funds has even said it would make an offer. If the two hedge funds are successful in lobbying management, the company should sell for at least $12 per share - a 40% gain. (More CULS articles...)
   
2. Temple Inland Inc. (TIN) - Carl Icahn said that this company is being held back due to its conglomorate structure. Consequently, he recommended that the company be broken up and its different division spun off into new companies. This presents a great spin off opportunity led by one of the best activist investors of our time. (More TIN articles...)
   
3. Ceridian Corporation (CEN) - Bill Ackman propposed that Ceridian spin off its Comdata division since the two share almost no synergies. Moreover, he said that the segment was being held back by the parent company. This is another great spin off opportunity that would help both the parent company and the child company... and Bill Ackman definitely knows what he is doing! (More CEN articles...)
   
4. Applebees International Inc. (APPB) - The Breeden Partners recently filed a series of Schedule 13Ds suggesting that the company improve several defficiencies, including its excessive executive compensation. If these issues are appropriately addressed, it could help the company save millions and increase their share price significantly. (More APPB articles...)
   
5. Electro Scientific Industries (ESIO) - Nierenberg Investment Management first lobbied this company to take several actions to return shareholder value. Since then, they have been joined by another hedge fund. Combined, these two should have enough leverage to at least warrant a response by management. If they are successful, it could mean special dividends or other measures aimed at unlocking value. (More ESIO articles...)
   

Technical Analysis
Our top five stocks to watch for technical analysts are:

1. UTStarcom, Inc. (UTSI) - Chart shows a head and shoulders bottom pattern, intermediate-term bullish signal.
   
2. FuelCell Energy, Inc. (FCEL) - Chart shows a megaphone bottom, intermediate-term bullish signal.
   
3. Kohl's Corporation (KSS) - Chart shows an upside breakout, intermediate-term bullish signal.
   
4. L-1 Identity Solutions, Inc. (ID) - Charts shows a symmetrical continuation triangle, intermediate-term bullish signal.
   
5. Smart & Final, Inc. (SMF) - Chart shows an ascending continuation triangle, intermediate-term bullish signal.
   

Stock of the Week : CSK Auto Corporation (CAO)
We believe that this company presents great opportunities for investors to profit over the next year. Karsch Capital Management has been involved with the company for some time, attempting to unlock value through a sale. The problem is that the company has been struggling with earnings restatements to satisfy both the SEC and exchange listing requirements. These restatements have caused uncertainty, which has led to a depressed share valuation. Consequently, Karsch believes that once the company has solved these problems, they could become an attractive takeover target. While the company has denied their request to voluntarily accept proxy solicitations to make this plan materialize, the hedge fund vowed to continue their fight. They insist that they have been contacted by several private equity parties interested in a potential acquisition. And with a 9% stake in the company, they may have enough say to make it happen at a nice premium for shareholders. This makes CAO a stock definitely worth watching!

Read More on SECInvestor.com…


Filing of the Week : Form 8-K
Most information reported by a company comes in the form of an 8-K filing. These filings are classified as "Current Event" filings that encompass almost anything that may happen to a company. One trick that investors can use when evaluating a company's news is to skip past the standard media which can be biased and move directly to the related 8-K statement to find the exact numbers and information behind the story. Recently, executive compensation laws have also made compensation discussion and analysis an important part of 8-K filings covering changes in executive compensation contracts and agreements. These make for interesting reading when evaluating such information for potential investments.

You can easily track these SEC filings with e-mail and RSS alerts using SECFilings.com!


Tip of the Week : Stocks Versus Commodities
Many individual investors are only familiar with the stock and bond markets along with their derivatives (like options). While both of these offer the most liquidity and investment information, there are many other opportunities in the futures and commodities markets. Commodities like corn, wheat, and other grains actually offer greater volatility, and therefore greater opportunities for profit or loss. Rather than transacting shares of stock, futures traders buy and sell contracts for future delivery of goods. Factors affecting pricing of these commodities are far more supply and demand based rather than fundamentally driven. Specifically, factors like weather and worker strikes can greatly affect prices. Recently, corn has appreciated significantly in value due to shortages in Mexico along with the dramatic growth in corn-based fuels (ie. Ethanol). While this market can be complex for beginners, it offers opportunities for more advanced investors looking to move into the trading aspect of the capital markets.


Final Words
This week should be mostly mixed as investors await a clearer sign of economic direction. However, investors to date have shown significant optimism in their decision to stay vested in stocks and bonds, so there may be a bias to the upside towards the end of the week. Good luck trading!

Weekly Market Overview
The market began the week with a move to the downside today as failed deals and Fed uncertainties put a drag on stock prices. Specifically, news of Nasdaq's abandonment of a deal with the LSE along with reports that Sanofi-Aventis has ended merger talks with Bristol-Myers Squibb dampened the usual merger Monday news. The Federal Reserve  is scheduled to release several key figures as traders will pay close attention to Chairman Ben Bernanke's rhetoric during his testimony before Congress later this week. Many are expecting to see some consolidation after several weeks of strong moves to the upside.


Top 10 Stocks to Watch this Week
Fundamental Analysis
Our top five stocks to watch for fundamental investors are:

1. Cost-U-Less, Inc. (CULS) - There are two hedge funds currently involved with this stock, both calling for the company to put itself up for sale. One of the hedge funds has even said it would make an offer. If the two hedge funds are successful in lobbying management, the company should sell for at least $12 per share - a 40% gain. (More CULS articles...)
   
2. Temple Inland Inc. (TIN) - Carl Icahn said that this company is being held back due to its conglomorate structure. Consequently, he recommended that the company be broken up and its different division spun off into new companies. This presents a great spin off opportunity led by one of the best activist investors of our time. (More TIN articles...)
   
3. Ceridian Corporation (CEN) - Bill Ackman propposed that Ceridian spin off its Comdata division since the two share almost no synergies. Moreover, he said that the segment was being held back by the parent company. This is another great spin off opportunity that would help both the parent company and the child company... and Bill Ackman definitely knows what he is doing! (More CEN articles...)
   
4. Applebees International Inc. (APPB) - The Breeden Partners recently filed a series of Schedule 13Ds suggesting that the company improve several defficiencies, including its excessive executive compensation. If these issues are appropriately addressed, it could help the company save millions and increase their share price significantly. (More APPB articles...)
   
5. Electro Scientific Industries (ESIO) - Nierenberg Investment Management first lobbied this company to take several actions to return shareholder value. Since then, they have been joined by another hedge fund. Combined, these two should have enough leverage to at least warrant a response by management. If they are successful, it could mean special dividends or other measures aimed at unlocking value. (More ESIO articles...)
   

Technical Analysis
Our top five stocks to watch for technical analysts are:

1. Palm, Inc. (PALM) - Charts show a diamond bottom, which is an intermediate term bullish pattern.
   
2. Visteon Corporation (VC) - Charts show a symmetrical triangle, intermediate term bullish pattern.
   
3. W&T Offshore, Inc. (WTI) - Charts show a head and shoulders bottom, intermediate term bullish pattern.
   
4. Chico's FAS, Inc. (CHS) - Charts show a bottom triangle, long term bullish pattern.
   
5. AngloGold Ashanti Limited (AU) - Charts show an ascending continuation triangle, intermediate term bullish pattern.
   

Stock of the Week : Cost-U-Less Inc. (CULS)
We believe that this company presents great opportunities for investors to profit over the next year. Two hedge funds are actively engaged in forcing the company up for sale with one of them expressing interest in making a bid of their own. CULS currently trades at roughly 3.5x EBITDA with its peers trading at around 16x EBITDA, which values CULS at roughly $12 per share at the low end of the spectrum. With the company’s annual meeting coming up soon, look for these hedge funds to take a more active stance in their investment and unlock value for shareholders. Specifically, watch for future Schedule 13D or 14A Proxy filings made by hedge funds, which may contain letters to management, additional demands, or proxy materials in the event of a proxy battle.

Read More on SECInvestor.com…


Filing of the Week : Form 4
Many investors have heard of the Form 4 filing - it lets us know when an insider has made a stock transaction and gives us all the details. However, many investors do not know how to properly read these filings. Even if an insider is acquiring stock (code A), it is not necessarily a positive sign. After all, "insider buying" is reported every time an insider receives free stock options from the company... nobody would turn those down, even if the company was doing poorly! The key thing to look for when watching Form 4 filings if the P-code, which means that the insider financed the stock purchase with his own cash. Typically, P-codes where the insider is purchasing a large dollar volume is a positive indicator for that company.

You can easily track these SEC filings with e-mail and RSS alerts using SECFilings.com!


Tip of the Week : Trailing Stop Losses
Many brokers are now offering more flexible ways for investors to manage their investments in order to attract more capital. One of these newer innovations is what is known as a "trailing stop loss". Normal stop losses give you the ability to put in a price below the current market price in which you'd like to automatically sell the stock. This is often used as a "fail-safe" in case the company experiences a sudden drop. Trailing stop losses enable you to place a stop loss that moves up along with your stock position. This allows you to have a "fail-safe" in place that can also help you lock in profits automatically. Many technical traders use this in breakout situations. Once a stock breaks out, they will set a trailing stop 8% below the day's opening price and let it ride. This way they can benefit from all the upside while protecting their profits automatically for any downside! This is definitely an excellent new tool to check out if it is available to you!


Final Words
This week promises to be an interesting one as the market decides which direction it would like to move. Be cautious when investing in this market, as it has moved up a lot without a significant retracement. It is likely that many investors will take profits off the table on any major sign of weakness, which could move the market down even further. Good luck trading!

Weekly Market Overview
This week promises to be an interesting one with Retail Thursday's metrics being released, twelve new issues in a hot IPO market, and increasing M&A driving the marketplace. The larger indexes are likely to remain mixed, however, as investors take a break from the extraordinary week last week. Additionally, several weaker-than-expected economic reports confirmed moderating growth and eased concern that the Fed might resume hiking interest rates. Some investors have also expressed concerns over a possible larger retracement in the markets. Combined, this should be a week of continued uncertainty but active trading volumes.


Top 10 Stocks to Watch this Week
Fundamental Analysis
Our top five stocks to watch for fundamental investors are:

• NetManage (NETM) - Riley Investment Management is pushing for a sale of this company. A prior offer stands at $5.25 per share (slightly below the company's trading price); however, there could be future offers for a greater amount. (More NETM articles...)
  
• Columbia Equity Trust (COE) - Several large shareholders are voicing concern over the company's questionable bidding process whereby they failed to effectively put the company up for auction and instead opted to sell to one party exclusively. If this is overturned, there could be room for other bidders. (More COE articles...)
  
• Equity Office Properties (EOP) - The bidding for the United States' largest office rental properties owner continues to heat up as Vornado and Blackstone continue to fire back and forth. If the vote doesn't go through in the upcoming election we could see further bidding price escalations. (More EOP articles...)
  
• PYR Energry (PYR) - Samson's $1.23 bid for the company was rejected in the form of a poison pill that was adopted last week. If Samson decides to take a more active stance in their investment or partner with other large holders to collectively vote out the board, there could be significant share appreciation as the price currently sits at $1.12 or so. (More PYR articles...)
  
• Cost-U-Less, Inc. (CULS) - There are two hedge funds currently involved with this stock, both calling for the company to put itself up for sale. One of the hedge funds has even said it would make an offer. If the two hedge funds are successful in lobbying management, the company should sell for at least $12 per share - a 40% gain. (More CULS articles...)

Technical Analysis
Our top five stocks to watch for technical analysts are:

• Take-Two Interactive Software, Inc. (TTWO) - Symmetrical continuation triangle indicating an intermediate term bullish breakout.
  
• AnnTaylor Stores, Inc. (ANN) - Double bottom indicating an intermediate term bullish move.
  
• Champion Enterprises, Inc. (CHB) - Continuation wedge indicating an intermediate term bullish breakout.
  
• Lumera Corporation (LMRA) - Continuation wedge indicating an intermediate term bullish breakout.
  
• Elizabeth Arden, Inc. (RDEN) - Head and shoulders bottom indicating a long-term bullish move.
  

Stock of the Week : Flow International Corporation (FLOW)
Flow International recently announced that CEO Stephen Light would be stepping down as soon as the company found a successor. Many investors were disappointed with this announcement since the turnaround specialist has been so instrumental in helping the company reduce its debt-load and improve its operating margins. One of these investors happened to be Daniel Loeb - a very well known activist hedge fund manager - who had initially invested because of Mr. Light. Loab disclosed in a Schedule 13D filing with the SEC that he thought the company should be sold rather than attempt to find a new CEO. He reasoned that the company was small compared to its peers and suffered from excessive expenses related to being a public company (relative to revenues). These are good arguements making this stock worth keeping an eye on.

Read More on SECInvestor.com…


Filing of the Week : Schedule 13F
Have you ever wondered what stocks hedge funds are holding? Well, it turns out that it is possible to get a glimpse into their portfolios through an SEC filing called Schedule 13F. This is a year-end required filing for hedge funds and other Schedule 13D/G investors that can help investors generate a watch list or track their favorite hedge funds! The information contained in these filings includes a description of the fund, their overall strategy, portfolio holdings, and amounts.

You can easily track these SEC filings with e-mail and RSS alerts using SECFilings.com!


Tip of the Week : M&A Investing Risks
Often times in M&A situations where a deal was just announced, investors will jump in and purchase the stock. What many fail to realize are the risks that are still evident in these situations. Obviously, one of the largest risks is the termination of the definitive merger agreement, which can happen for a multitude of reasons. The second major risk to consider is the amount of time before the merger goes through. Sometimes it can take months for a company to finalize merger plans and pay out shareholders - could your money be spent better elsewhere? Sometimes stocks will trade at 5% or even 10% discounts to the buyout prices, but this doesn't necessarily mean that it is a good idea to invest. It is very important to look into the strength of the definitive merger agreement as well as the amount of time expected to pass before the deal closes.


Final Words
This week promises to be an interesting one as the market decides which direction it would like to move. Be cautious when investing in this market, as it has moved up a lot without a significant retracement. It is likely that many investors will take profits off the table on any major sign of weakness, which could move the market down even further. Good luck trading!