Weekly Market Overview

The markets began the week mixed as investors appeared unethusiastic about acquisition news and were cautious of upcoming earnings and economic reports. The big news of the day was Mars Inc.'s offer to purchase Wm. Wrigley Jr. Co. for about $23 billion in cash, which will be financed with the help of billionaire investor Warren Buffett. Activist Kirk Kerkorian also plans to make an offer to extend his stake in Ford, saying he sees signs that the firm's turnaround plan is working. On the flip side, Continental Airlines decided that it would not join with United Airlines despite rumors to the contrary last week. Meanwhile, the Federal Reserve is expected to cut interest rates by a quarter point before leaving them steady for the remainder of the year.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Alliance Resource Partners (ARLP) - The coal industry is starting to reignite after Alliance Resource Partners reported strong quarterly earnings that beat analyst expectations. Record revenues and coal sales volume helped the coal company report an increase in EBITDA despite lower net income due to the loss of synfuel-related benefits along with capital expenditures associated with various growth initiatives. Regardless, the bottom-line improvement has many investors bullish on the news. (Read More)
2. Baidu.com Inc. (BIDU) - China's Internet presence is growing and several companies are well positioned to reap the rewards. Baidu.com Inc. and Sohu.com Inc. are two portal operators that stand to benefit the most as China's online adult population now stands at 221 million, which puts them on par with the United States. However, great potential remains with just 16% of China's population online, compared to 71% of the United States population. (Read More)
3. Hyperdynamics Corporation (HDY) - Hyperdynamics Corporation surged more than 50% Friday after confirming it has discovered giant structures in West Africa usually associated with oil and gas reserves. The Texas-based oil and gas exploration and production company owns the rights to 31,000 square miles of land off the coast of the Republic of Guinea in West Africa where these geological discoveries were made. (Read More)
4. Tenet Healthcare (THC) - Tenet Healthcare shares soared over 10 percent last week after it was upgraded by Credit Suisse to outperform from neutral based on improving hospital pricing trends and progress in its turnaround. The analyst also raised the price target on the stock to $8 per share from $6 per share. (Read More)
5. Goodrich Corporation (GR) - Goodrich Corporation, the world’s largest maker of airplane landing gear, is up nearly 10% today after beating first quarter earnings expectations and increasing its full year profit outlook. (Read More)
   

Technical Analysis

1. E Trade Financial Corporation (ETFC) - Intermediate-term bullish diamond bottom.
2. Wells Fargo & Company (WFC) - Intermediate-term bullish diamond bottom.
3. Foundry Networks Incorporated (FDRY) - Intermediate-term bullish double bottom.
4. Home Depot Incorporated (HD) - Long-term bullish diamond bottom.
5. Qlogic Corporation (QLGC) - Intermediate-term bullish continuation diamond.
   

Stock of the Week : Candidates' Plans Could Boost Cable Operators

Broadband Internet has become a hot topic for debate among the U.S. presidential candidates. Many believe that broadband is one of the key components needed to maintain competitive advantage over other nations. The Internet not only affords a vast amount of information, but can also create information jobs and support small businesses. Unfortunately, the United States has already dropped from a #1 position in worldwide broadband penetration down to #15. (Read More)

Article of the Week : Retirement Savings with Roth IRAs

Roth IRAs are a great way to supplement your retirement income without paying the government too much. The retirement account was designed in 1998 as part of the Taxpayer Relief Act and enables individuals to forego deductions on contributions to instead cash out all of your earnings tax free. The program also provides some more lenient guidelines on early withdrawal for valid purposes. (Read More)

Final Words

The future of the U.S. economy remains uncertain despite an improvement in the financial sector thanks to dealmaking. 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 U.S. markets pulled back today amid weaker-than-expected earnings reports from Bank of America, which reignited concerns about the health of the economy. Back of America reported that its first quarter earnings fell 77% thanks to more writedowns and widening credit losses. The move ruined the positive mood seen last week among corporations reporting strength both domestically and abroad. Major indexes erased some of last weeks 4% gains as the market looks forward to future reports.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Sun Microsystems (JAVA) - Sun Microsystems shares continued their rally this week despite concerns about the future of its flagship database product MySQL. The technology giant was hit with a wave of criticism from open source advocates after officials disclosed plans to reserve some of its key upcoming features for paying customers. (Read More)
2. First Solar (FSLR) - First Solar has beat earnings expectations by a wide margin for every quarter in its short history. The company is set to announce its first quarter financial results on April 30th. The solar industry leader is expected to post earnings per share between $0.36 and $0.63 with an average analyst estimate of $0.47. However, shareholders are more bullish with shares trading at a lofty 204.1x current earnings with a P/E to growth ratio of 2.01x. (Read More)
3. Wendy's International (WEN) - Wendy's shares are up sharply this week after the company disclosed an activist investor unveiled two takeover proposals. Unfortunately, both were rejected by the fast food chain despite hefty premiums to the going market price. Nelson Peltz's Trian Fund Management has not stopped fighting, however, as the company progresses with its review of strategic alternatives. (Read More)
4. Baidu.com Inc. (BIDU) - Chinese Internet search giant Baidu.com is benefiting heavily today from Google Inc. unexpectedly strong results. Baidu.com is up significantly on sentiment that Google is a good barometer for the entire Internet search sector, but especially Baidu.com. (Read More)
5. Silver Wheaton Corp. (SLW) - Silver stocks declined today following a 5.1 percent drop in the commodity amid a rise in the value of the dollar. The move comes after the metal had climbed 23 percent this year on the rush into commodities during the weak economy. Other metals, including gold and palladium, also declined sharply on the day. (Read More)
   

Technical Analysis

1. Gemstar-Tv Guide International (GMST) - Intermediate-term bullish diamond bottom.
2. Fiserv Incorporated (FISV) - Long-term bullish continuation diamond.
3. Verisign Incorporated (VRSN) - Intermediate-term bullish symmetrical continuation triangle.
4. Express Scripts Incorporated (ESRX) - Intermediate-term bullish ascending continuation triangle.
5. Memc Electronic Materials Incorporated (WFR) - Long-term bullish continuation diamond.
   

Stock of the Week : The Wendy's Versus Peltz Drama Unfolds (WEN)

Wendy's International (NYSE: WEN) shares are up sharply this week after the company disclosed an activist investor unveiled two takeover proposals. Unfortunately, both were rejected by the fast food chain despite hefty premiums to the going market price. Nelson Peltz's Trian Fund Management has not stopped fighting, however, as the company progresses with its review of strategic alternatives. (Read More)

Article of the Week : Retirement Savings with Roth IRAs

Roth IRAs are a great way to supplement your retirement income without paying the government too much. The retirement account was designed in 1998 as part of the Taxpayer Relief Act and enables individuals to forego deductions on contributions to instead cash out all of your earnings tax free. The program also provides some more lenient guidelines on early withdrawal for valid purposes. (Read More)

Final Words

The future of the U.S. economy remains uncertain despite an improvement in the financial sector thanks to dealmaking. 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

Stocks ended the session quietly after investors spent the majority of the day trying to determine the health of corporate profits. Wachovia Corporation and Royal Philips Electronics dominated the news by posting disappointing earnings while energy prices also continued their rise. However, investors appeared to be pausing following Friday's sell-off ahead of a slew of quarterly results and economic data due to arrive this week.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. PDL BioPharma Inc. (PDLI) - PDL BioPharma annnounced today that it would spin-off its antibody humanization royalty assets from its biotechnology operations to unlock shareholder value. Simultaneously, the company declared a special dividend of $4.25 per share payable to stockholders of record on May 5th using proceeds from recent asset sales. (Read More)
   
2. Select Comfort Corporation (SCSS) - Select Comfort shares may be well off of their $19/share 52-week highs, but at several professional investors are giving this stock a second look. The depressed levels have led to several analyst upgrades as well as at least one activist hedge fund that has taken a positive stance. (Read More)
3. Mac-Gray Corporation (TUC) - A large Mac-Gray shareholder expressed disappointment on Friday in a Schedule 13D/A filing with the SEC. Fairview Capital, which has pushed for changes in the past without success, told the board that the "rising tide of discontent" amongst shareholders has reached a peak and changes are necessary now to preserve shareholder value. (Read More)
4. Bassett Furniture Industries Inc. (BSET) - Bassett management was caught sitting around on the job, according to at least one activist hedge fund. Costa Brava, which owns just over five percent of the company, recently expressed its disappointment with the furniture business and initiated a proxy contest in order to install its own board members to enforce change. So, should shareholders support these new board candidates? (Read More)
5. Dillard's Inc. (DDS) - Dillard's announced an agreement with many of its dissident shareholders in a move designed to avoid an expensive proxy contest. Activist hedge funds Barington Capital and the Clinton Group agreed to forgo a proxy contest in exchange for the voluntary nomination of four of its proposed directors. Additionally, the board agreed to review whether the company's real estate assets and capital are being optimally deployed to build shareholder value. (Read More)
   

Technical Analysis

1. Scientific Games Corporation (SGMS) - Intermediate-term bullish double bottom.
2. Lsi Corporation (LSI) - Intermediate-term bullish bottom triangle.
3. Myriad Genetics Inc. (MYGN) - Intermediate-term bullish head and shoulders bottom.
4. Thoratec Corporation (THOR) - Intermediate-term bullish megaphone bottom.
5. Pioneer Natural Resources Company (PXD) - Long-term bullish upside breakout.
   

Stock of the Week : Circuit City (CC)

Blockbuster Inc. (BBI) announced today that it has offered to acquire Circuit City Stores, Inc. (CC) for between $6.00 and $8.00 per share in cash. The original offer was made back in late February, but rebuffed by the electronic retailers' board, which refused to provide the due diligence necessary to make a definitive proposal. (Read More)

Article of the Week : Need More Time to Pay Your Taxes?

Taxes comes up quicker than most people expect and sometimes it can be difficult to come up with the cash. Those who are not able to file their taxes by April 15th can file a Form 4868, or an application for automatic extension, with the Internal Revenue Service (IRS) to get an additional six months to pay. The extension is an affordable way to get more time to come up with the money to pay your taxes. (Read More)

Final Words

The future of the U.S. economy remains uncertain despite an improvement in the financial sector thanks to dealmaking. 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

Stocks rose today after reports of potential corporate deals surfaced and sent the indexes higher. Washington Mutual led the pack with speculation that it might get a $5 billion investment from private equity firms. Such deal-making is often seen as a bullish sign and could signal that stocks are starting to recover from a decline in consumer credit amid a slowing economy. The other big story was the exchange between Yahoo and Microsoft where a three week deadline was established but no further news emerged. All in all, this deal-making is great news for the markets after last week's disappointing employment data.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Motorola Inc. (MOT) - Motorola Inc. will be calling upon two of Carl Icahn's nominees for election to its board as part of a truce with the activist shareholder. Let's just hope their using Motorola phones: The cellphone-maker's shares have fallen nearly 50% over the past year thanks slowing sales. (Read More)
2. Select Comfort Corporation (SCSS) - Select Comfort shares may be well off of their $19/share 52-week highs, but at several professional investors are giving this stock a second look. The depressed levels have led to several analyst upgrades as well as at least one activist hedge fund that has taken a positive stance. (Read More)
3. Southwest Airlines (LUV) - Airlines are struggling to get any lift amid record oil prices and a weakening economy. ATA Airlines and Aloha Airlines both shut down operations and filed for bankruptcy this week alone while larger carriers like Northwest Airlines are raising prices and cutting routes to stay alive. In fact, the only airline eking out a profit seems to be Southwest Airlines. (Read More)
4. Bassett Furniture Industries Inc. (BSET) - Bassett management was caught sitting around on the job, according to at least one activist hedge fund. Costa Brava, which owns just over five percent of the company, recently expressed its disappointment with the furniture business and initiated a proxy contest in order to install its own board members to enforce change. So, should shareholders support these new board candidates? (Read More)
5. Dillard's Inc. (DDS) - Dillard's announced an agreement with many of its dissident shareholders in a move designed to avoid an expensive proxy contest. Activist hedge funds Barington Capital and the Clinton Group agreed to forgo a proxy contest in exchange for the voluntary nomination of four of its proposed directors. Additionally, the board agreed to review whether the company's real estate assets and capital are being optimally deployed to build shareholder value. (Read More)
   

Technical Analysis

1. JDS Uniphase Corporation (JDSU) - Intermediate-term bullish bottom triangle.
2. Crocs Incorporated (CROX) - Long-term bullish continuation wedge.
3. Corinthian Colleges Inc. (COCO) - Intermediate-term bullish bottom triangle.
4. Lam Research Corporation (LRCX) - Intermediate-term bullish double bottom.
5. Coach Incorporated (COH) - Intermediate-term bullish megaphone bottom.
   

Stock of the Week : Bassett Furniture Industries Inc. (BSET)

Bassett Furniture Industries Inc. (NDAQ: BSET) management was caught sitting around on the job, according to at least one activist hedge fund. Costa Brava, which owns just over five percent of the company, recently expressed its disappointment with the furniture business and initiated a proxy contest in order to install its own board members to enforce change. So, should shareholders support these new board candidates? (Read More)

Article of the Week : Need More Time to Pay Your Taxes?

Taxes comes up quicker than most people expect and sometimes it can be difficult to come up with the cash. Those who are not able to file their taxes by April 15th can file a Form 4868, or an application for automatic extension, with the Internal Revenue Service (IRS) to get an additional six months to pay. The extension is an affordable way to get more time to come up with the money to pay your taxes. (Read More)

Final Words

The future of the U.S. economy remains uncertain despite an improvement in the financial sector thanks to dealmaking. 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.