Weekly Market Overview

Stocks rose moderatley today as investors await data on the manufacturing sectors and details of a government plan to overhaul the way Wall Street is regulated. Volume was also light as many institutional investors had closed their books for the quarter that ended with this session. The quarter itself was disappointing as financial conmpanies continue to experience credit market losses while the poor economy wiped out any appetite for individual investors. There were a few up days, but the overall market still trended down. Whether or not it improves during the next week and quarter depends largely on an economic recovery.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Gannett Company (GCI) - The newspaper industry is making the news, but not in a good way. The Newspaper Association of America reported that ad revenues in the industry have fallen by 9.5 percent in the biggest drop in any year since 1950. The decline comes at the heels of an economic slowdown and an increase in online advertising that together have put a damper on the fourth quarter - a peak period for ad sales. (Read More)
2. Citigroup Inc. (C) - Investors are looking for change and new chief executive Vikram Pandit is ready to act. The bank announced a broad restructuring move after the banking giant loss half of its market value in six months thanks to the sub-prime crisis. The new additions to the larger restructuring plan involve breaking up the consumer banking group into regional divisions and separating its credit card division. (Read More)
3. Take-Two Interactive (TTWO) - As reported here Wednesday, Take-Two Interactive Software's board rejected Electronic Art's most recent buyout offer, saying that it was not in the best interest of shareholders. Instead, the company also confirmed that it would explore strategic alternatives to maximize shareholder value in other ways that could deliver a higher value than the current $2 billion EA offer. (Read More)
4. Captaris Inc. (CAPA) - Captaris may be able to efficiently manage business data, but a strategic review of its own company is another story. Private equity firm Vector Capital offered to acquire the software company for $4.75 per share just last week, but the deal fell through after the company failed to take any decisive action. Now many shareholders are left wondering whether any deal will be done at all. (Read More)
5. Motorola Inc. (MOT) - Motorola Inc. may have agreed to Carl Icahn's proposed spin-off, but they are not out of the woods yet. The billionaire activist investor sent another letter to the board (via a Schedule 13D/A filing) earlier this week bringing up several concerns about the speed and manner in which a new management team is selected for the mobile devices division. (Read More)
   

Technical Analysis

1. Sohu.Com Inc. (SOHU) - Intermediate-Term Bullish Symmetrical Continuation Triangle.
2. Novartis Ag Ads (NVS) - Intermediate-Term Bullish Megaphone Bottom.
3. Energy Conversion Devices Inc. (ENER) - Long-Term Bullish Diamond Bottom.
4. Fuel Systems Solutions Inc. (FSYS) - Intermediate-Term Bullish Head and Shoulders Bottom.
5. Dealertrack Holdings Inc. (TRAK) - Intermediate-Term Bullish Continuation Wedge.
   

Stock of the Week : Google Inc. (GOOG)

New research data shows that online advertising is beginning to run out of steam at what could become a turning point for the industry. Many analysts have been concerned that such trends would continue as the industry began to mature, but the decline in consumer spending could expedite the process as fewer consumers click on ads while more publishers are looking to fill ad inventory. The big question is whether or not this trend will be permanent. (Read More)

Article of the Week : Predict Stock Momentum with the MACD

Moving Average Convergence/Divergence (MACD) is one of the most common tools used by traders to determine the direction and momentum of a given stock. The standard MACD formula involves subtracting a stock's 26-day exponential moving average (EMA) from its 12-day EMA to create a single line that fluxuates above and below zero. The theory is that the movements of this line can be used to make accurate predictions. This article will take a look at what exactly the MACD is and how you can use it to profit! (Read More)

Final Words

The future of the U.S. economy remains uncertain desite an improvement in the financial sector. Overall, the economy seems to be heeling, but consumers may lag a bit behind as weakness in spending is seen for at least a couple more quarters.

Weekly Market Overview

The big news on Wall Street today was J.P. Morgan's quintupled buyout price for the trouble Bear Stearns, which came as a result of one faulty line in the original buyout offer that promised to cover liabilities indefinitely. Meanwhile, the housing market got some good news when the number of home sales increased quarter over quarter for the first time in seven months, signaling that a bottom may be in sight. However, on the other side of the coin prices dropped over 8% in the largest downward move on record. All in all, the financials are continuing to improve this week while consumers may still have awhile to go!

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Capital Senior Living (CSU) - Activist investors have successfully pushed this company towards a sale situation. The operator of senior living centers announced that it has appointed two new activist directors while agreeing to explore a potential sale.
2. Borders Group (BGP) - Activist investor Bill Ackman offered the company financing along with a low-ball offer to purchase its international businesses. While the activist's offer is low, it may prompt other bidders to pursue the company that can now afford to stay alive for at least another year.
3. Micrel Inc. (MRCL) - Shareholders in this company have demanded that it immediately pursue a sale to unlock value. Given their 9.6% ownership in the company, this is a situation that is definitely worth watching.
4. General Mills (GIS) - This well-known company has benefited from a well-timed derivatives hedge against rising commodity prices while also outperforming many of its peers. These strong fundamentals make this company one worth watching over the next few months.
5. NYSE Euronext (NYX) - The most popular exchange in the world unveiled two new plans to boost shareholder value: a dividend and share buyback. Combined, these can only mean good news for shareholders despite minor concerns by ratings agencies that it may weaken their balance sheet.
   

Technical Analysis

1. Knight Capital Group (NITE) - Intermediate-term bullish continuation diamond.
2. Mastercard (MA) - Long-term bullish continuation diamond.
3. Telefonos De Mexico Sab De C.V. (TMX) - Intermediate-term bullish continuation diamond.
4. Alliance Data Systems (ADS) - Intermediate-term bullish bottom triangle.
5. Janus Capital Group (JNS) - Intermediate-term bullish continuation wedge.
   

Stock of the Week : Bear Stearns (BSC)

The Bear Stearns (NYSE: BSC) roller coaster ride took another sharp turn today after J.P. Morgan (NYSE: JPM) agreed to quintuple its offer for troubled investment bank. The move came amid widespread criticism that J.P. Morgan was getting a free ride on the backs of Bear Stearns shareholders. The new $10 per share takeover is slated to close by April 8th and now has much greater shareholder support. (Read More)

Article of the Week : Recover from Investment Losses more Quickly

Many investors have experienced a loss on an investment and simply want to break even on the trade. Unfortunately, this isn't possible without committing more capital to your losing position in order to "average in" at a lower price. Or is it? The Stock Repair is an options strategy that lets you give up any profit potential in exchange for a new, reduced break even point, without committing any new capital! (Read More)

Final Words

The future of the U.S. economy remains uncertain desite an improvement in the financial sector. Overall, the economy seems to be heeling, but consumers may lag a bit behind as weakness in spending is seen for at least a couple more quarters.

Weekly Market Overview

The big news on Wall Street this week was JP Morgan's buyout of the troubled Bear Stearns for a mere $2 per share. The markets dropped several hundred points early in the day on the news, but ended up 21 points as investors were encouraged by actions taken by the Federal Reserve. The trend on the street has been a clear move towards blue-chips and out of small-caps as investors look for reliability in a weak economy. Finally, investors are also looking forward to today's Federal Reserve meeting where the central bank is expected to sharply lower interest rates.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Magellan Health Services (MGLN) - The firm is under pressure from Shamrock to unlock value through the declaration of a special $12 per share dividend financed through free cash and debt.
2. Captaris Inc. (CAPA) - The technology company received an unsolicited $4.75 per share buyout offer along with several other expressions of interest. The firm is now undergoing a review of its strategic options.
3. Enzon Pharmaceuticals (ENZN) - Billionaire activist Carl Icahn disclosed a 7% stake in the company and suggested that it explore strategic alternatives relating to its royalty streams and other relatively intangible assets.
4. Conseco Inc. (CNO) - The firm is under pressure from Steel Partners to explore strategic alternatives including the possibility of a sale. The company is trading at depressed levels and Steel believes it is undervalued.
5. Electronic Arts (ERTS) - The firm is continuing its attempt to takeover Take-Two Interactive after an unsuccessful initial attempt to buy the firm at $26 per share despite the steep premium.
   

Technical Analysis

1. Solarfun Power (SOLF) - Intermediate-term bullish continuation wedge.
2. US Steel Corp. (X) - Intermediate-term bullish ascending continuation triangle.
3. Dick's Sporting Goods (DKS) - Intermediate-term bullish bottom triangle.
4. Waddell & Reed (WDR) - Long-term bullish continuation diamond.
5. Smith & Wesson (SWHC) - Intermediate-term bullish bottom triangle.
   

Stock of the Week : Magellan Heath Services (MGLN)

Magellan Heath Services (NDAQ: MGLN) may be good at managing the health of its patients but the company is another story. The healthcare company's stock is trading more than 20 percent off of its 52-week highs and many shareholders are now demanding the company take action to unlock shareholder value. Unfortunately, the company has been unresponsive to these shareholders who are now threatening to take their argument public. (Read More)

Article of the Week : How Much Do You Need?

Retirement may draw images of sunny beaches and pina coladas, but many preparing for retirement do nothing but stress. Financial advisors say that the you can live on 70 to 80 percent of your current income, but does that hold true in all cases? Unfortunately, there is no perfect number for all situations particularly when the economic climate changes so rapidly. So, how do you know how much you'll need to retire comfortably? (Read More)

Final Words

The future of the U.S. economy remains uncertain with more problems in the financial markets. The Bear Stearns blow-up did a number of the financial sector while consumer spending is also very week, Many are hoping that steeply lower interest rates will help boost the economy, but others are skeptical that it will only send inflation more out of control.