Weekly Market Overview

The markets moved higher on better-than-expected consumer confidence numbers today despite poor housing news. The S&P/Case-Shiller home-price index showed a 14% drop in the first quarter compared with a year earlier, which is the sharpest drop in nearly two decades. Meanwhile, the dollar gained against the Euro and Yen, which helped relieve oil prices while the market continues to attempt to gauge the threat of inflation. Other big news of the day included Bank of America's interesting plan to acquire an 11% stake in China Construction Bank. In the end, investors are still waiting to see just how quickly the market will be able to recover, or if we are headed into a recession.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Petroleo Brasileiro (PBR) - Petroleo Brasileiro SA (NYSE: PBR), known as Petrobras, announced a discovery in the Gulf of Mexico today. The diversified oil and gas company confirmed the discovery of hydrocarbons in ultra-deep waters in the Central Gulf of Mexico. The Stones #3 well, located in Block WR 508, found oil in multiple sandy lower tertiary reservoirs and is 25% owned by Petrobras. Future drilling and assessment activities are planned to define size and viability. (Read More)
2. EMC Corporation (EMC) - announced earlier this week that it plans to keep its 86% stake in VMWare Inc. (NYSE: VMW). Many investors may have been looking forward to at least some divesture given the fact that the market doesn't appear to be valuing its VMWare stake anywhere close to its intrinsic value. However, the company is clearly betting that the market will eventually come around. (Read More)
3. Cheniere Energy, Inc. (LNG) - Cheniere shares fell sharply today amid a broad decline in oil futures and weakening prospects for the company itself. The liquid natural gas producer has dropped from over $40 per share just a year ago to its current levels around $5 per share amid growing operational losses and a liquidity crisis. (Read More)
4. MercadoLibre, Inc. (MELI) - MercadoLibre shares continued their free fall today after it announced disappointing earnings earlier this week. Shares in the Latin American eBay-clone are down nearly 20 percent this week, but how much more will this stock drop. After all, the results may have been negative on the surface but are a bit better when you look under the hood and consider growth characteristics for such businesses. (Read More)
5. Verigy Ltd. (VRGY) - Verigy shares moved up about 9% in pre-market trading Friday after besting estimates with its second quarter results Thursday. The Singapore-based semiconductor company reported a drop in net income for the quarter to $14 million, or 23 cents per share, from $22 million, or 36 cents per share, a year earlier. Verigy's revenue was also down, dropping 11% to $162 million; however, both results beat Wall Street estimates of net income of 19 cents per share on $161.5 million in revenue. (Read More)
   

Technical Analysis

1. Matrixx Initiatives (MTXX) - Intermediate-term bullish bottom triangle.
2. Washington Mutual (WAHCU) - Intermediate-term bullish bottom triangle.
3. Kforce Inc. (KFRC) - Intermediate-term bullish diamond bottom.
4. Synovis Life Technologies (SYNO) - Intermediate-term bullish diamond bottom.
5. Universal Display Corporation (PANL) - Intermediate-term bullish diamond bottom.
   

Stock of the Week : EMC Corporation (EMC)

EMC Corporation (NYSE: EMC) announced earlier this week that it plans to keep its 86% stake in VMWare Inc. (NYSE: VMW). Many investors may have been looking forward to at least some divesture given the fact that the market doesn't appear to be valuing its VMWare stake anywhere close to its intrinsic value. However, the company is clearly betting that the market will eventually come around. (Read More)

Article of the Week : Who Really Benefits from Higher Oil Prices?

Oil prices rose today to hit a new record of $126.98 per barrel as inflation continues to soar. Higher oil prices tend to hit the same groups of stocks day after day: Exploration and production companies tend to increase sharply, transportation companies rise marginally, and refiners tend to drop sharply. The rationale for this price movement is simple... (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 stock market was mixed early today while investors awaited a report on leading economic indicators from last month. The reports are expected to show that the economy, after two quarters of slow growth, remains sluggish due to the ongoing housing slump. The sluggish earnings by the two largest home improvement chains only intensified such concerns. Meanwhile, Microsoft has renewed talks with Yahoo about a possible deal to bolster the companies' position in the online search and advertising market. There is no indication as to whether or not these talks will lead to an acquisition, but Yahoo said its directors remain open to the idea at the right price.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Transocean Inc. (NYSE: RIG) - Transocean continued its rise today on the heels of surging oil prices. Saudi Arabia disclosed a boost in production, but it wasn't enough to stop a rise in oil. World prices crept towards $127 during the Asian trading session after hitting a record high of $127.98 on Friday. Further weakness in the U.S. dollar has caused many analysts to revise their target prices for oil much higher. (Read More)
2. Zoltek Companies Inc. (NDAQ: ZOLT) - Zoltek was up more than 15% in midday trading Friday on about double average trading volume. Though there have been no major news developments Friday, the company has had a strong week after announcing a second quarter profit compared to a loss a year earlier. Possibly more important for Friday's share movement, Zoltek CEO Zsolt Rumy said in the second quarter conference call that no more accounting errors at the company have been discovered in the wake of Kevin Schott's forced departure as Chief Financial Officer. (Read More)
3. China Precision Steel Inc. (NYSE: CPSL) - China Precision Steel shares are surging more than 30% on more than ten times average trading volume Friday after releasing third quarter results. Though based in Colorado, the company primarily conducts business in China through a wholly owned subsidiary and reported a 230% increase in net income to $4.6 million, or 10 cents per share, from $1.4 million, or 5 cents per share, the third quarter a year earlier. China Precision Steel was able to record staggering growth in net income on only a 61.3% increase in revenue to $18.7 million from $11.6 million. (Read More)
4. Noah Education Holdings Ltd. (NYSE: NED) - Noah Education is up more than 10% on four times average trading volume Friday after releasing third quarter results. The China-based provider of interactive learning materials usually included in Chinese grade school and high school textbooks reported a 114% increase in net income to $7.9 million for the third quarter of the company's fiscal year. Noah Education's diluted earnings per share rose to 20 cents on an 8.5% increase in net revenue from a year earlier to $26.3 million. (Read More)
5. China TechFaith (NDAQ: CNTF) - China Techfaith shares moved sharply higher in pre-market trading today following a strong close on Friday. Shares surged more than 20% last week ahead of an earnings announcement set to be released tonight. Historical earnings growth rates suggest a strong quarter, but some investors worry that restructuring charges will hurt the company's first quarter. (Read More)
   

Technical Analysis

1. Mobile Telesystems Ojsc Ads (MBT) - Intermediate-term bullish diamond botom.
2. Mcdermott International Inc. (MDR) - Long-term bullish ascending continuation triangle.
3. Amphenol Corporation Cl A (APH) - Long-term bullish continuation diamond.
4. Compania de Minas Buenaventura SA ADS (BVN) - Intermediate-term bullish continuation wedge.
5. Acergy S.A. American Depositary Shs (ACGY) - Intermediate-term bullish bottom triangle.
   

Stock of the Week : VeraSun Energy Corporation (VSE)

VeraSun Energy Corporation’s (NYSE: VSE) down-trodden shares are surging Monday on the strength of the ethanol sector. South Dakota-based VeraSun, which owns five ethanol production facilities with a combined capacity of 560 million gallons of ethanol a year, had its shares near an all-time record low last week as increasing corn prices raised concerns about the company’s ability to maintain profitability. (Read More)

Article of the Week : Who Really Benefits from Higher Oil Prices?

Oil prices rose today to hit a new record of $126.98 per barrel as inflation continues to soar. Higher oil prices tend to hit the same groups of stocks day after day: Exploration and production companies tend to increase sharply, transportation companies rise marginally, and refiners tend to drop sharply. The rationale for this price movement is simple... (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

Wall Street opened the week little changed despite rising gasoline and oil prices that threaten consumer spending. Today, investors got a little relief from a retail sales report showing an increase in consumer spending. However, the big question is whether the short term effects of an economic stimulus will be enough to offset a troubling trend. Federal Reserve Chairman Ben Bernake also eased concerns by stating that the turmoil in the financial markets is beginning to wane. However, he was careful to caution that the credit crisis is still "far from over".

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. JA Solar Holdings (JASO) - Chinese solar stocks spiked on higher-than-average volume this week following earnings announcements from many industry players. JA Solar Holdings, China Sunergy Company, ReneSola, and Trina Solar are just four Chinese solar companies that rose today as several companies reported strong earnings. (Read More)
2. Deere & Company (DE) - Deere shares surged higher this week after CNBC's Jim Cramer recommended the stock in his latest Mad Money broadcast. The television superstar hailed the $37 billion company as being in the sweet spot between the two biggest shortages of our time, oil and food. We agree. (Read More)
3. Baidu.com, Inc. (BIDU) - Baidu shares extended their losses from yesterday despite positive earnings this week from fellow Chinese firm Alibaba.com. The top Chinese e-commerce firm more than doubled its first quarter earnings on strong demand for online trade and better profit margins after cost cutting. However, the broader Chinese indexes sold off in recent weeks thanks to fears of rate hikes and inflationary concerns in mainland China. (Read More)
4. Hyperdynamics Corporation (HDY) - Hyperdynamics shares surged higher after Executive VP Jim Speer announced that he would be presenting to a group of pominent Canadian Geoscientists intersted in exploration offshore West Africa, and several of the expected attendees represent potential joint venture partners. The meeting is designed as a way to drum up interest in the company's 31,000 square mile concession area and pave the way for drilling. (Read More)
5. Spanish Broadcasting (SBSA) - Spanish Broadcasting is finding itself under increased pressure from dissident shareholders seeking to put the company up for sale. Discovery Equity Partners, which owns a 9.8% stake, encouraged shareholders to vote in favor of their candidates for the board of directors at the company's next annual meeting. The activist hedge fund said it intends to retain an investment banker to pursue strategic alternatives to enhance shareholder value. (Read More)

Technical Analysis

1. Informatica Corporation (INFA) - Long-term bullish continuation diamond.
2. Gigamedia Limited (GIGM) - Intermediate-term bullish double bottom.
3. Shengdatech Incorporated (SDTH) - Intermediate-term bullish double bottom.
4. Depomed Inc. (DEPO) - Intermediate-term bullish bottom triangle.
5. Venoco Incorporated (VQ) - Intermediate-term bullish head and shoulders bottom.
   

Stock of the Week : JA Solar Holdings (JASO)

Chinese solar stocks spiked on higher-than-average volume today following earnings announcements from many industry players. JA Solar Holdings (NDAQ: JASO), China Sunergy Company (NDAQ: CSUN), ReneSola (NYSE:SOL), and Trina Solar (NYSE: TSL) are just four Chinese solar companies that rose today as several companies reported strong earnings. (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 markets ended lower today as investors were downbeat on the Yahoo-Microsoft situation over the weekend. Mergers and acquisitions activity has traditionally worked to boost shareholder value and Microsoft's decision to abandon their bid led to an immediate decline in Yahoo shares. Meanwhile, investors continued to digest economic reports from last week that suggested a recovery in the credit crisis may be closer than once thought.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Monsanto Company (MON) - Monsanto is up about 2% in midday trading Monday to $117.55 on a quiet day for a stock that almost exactly a year ago closed at $59.71 per share. The obvious question is with a market capitalization of over $64 billion, how much more phenomenal share price growth can the company muster? Based on recent results, market developments, and Wall Street sentiment Monsanto may have only started to blossom. (Read More)
2. Polo Ralph Lauren Corporation (RL) - Ralph Lauren's high-end apparel may not be the best market right now, but the economic decline may create a buying opportunity for bargain hunters. Apparel makers dropped today amid a broader market decline fueled by last week's economic reports and the failed merger between Yahoo and Microsoft. (Read More)
3. Companhia Vale do Rio Doce (RIO) - Vale is the world's largest producer of iron ore which is used as a raw material in the production of the steel. The company has seen record growth in recent years as developing nations like China have consume an increasing amount of steel to build up their infrastructure. (Read More)
4. Freeport-McMoRan Copper & Gold Inc. (FCX) - Freeport shares surged higher today amid strength in the two commodities. Gold prices rose $7 per ounce to $857.90 while copper prices jumped $0.12 per pound to $3.82. Many investors are also bullish on the firm's prospects as copper price assumptions for 2009 have been raised substantially from $2.75 per pound to $4.50 per pound. The result has been at least one analyst raising his target to $200 per share. (Read More)
5. iStar Financial Inc. (SFI) - iStar shares are up nearly 10% in midday trading Friday after reporting mixed first quarter results. The New York city-based financial company that primarily lends to owners of commercial real estate announced earnings of 87 cents per share for the first three months of the year compared to 93 cents per share a year earlier. Despite this 6.5% drop in earnings, the company matched Wall Street estimates of 87 cents per share earnings, while revenues of $422.4 million actually beat estimates of $411 million. (Read More)
   

Technical Analysis

1. Marathon Oil Corporation (MRO) - Intermediate-term bullish bottom triangle.
2. Micron Technology Inc (MU) - Long-term bullish double bottom.
3. Whole Foods Market Incorporated (WFMI) - Intermediate-term bullish double bottom.
4. Regions Financial Corporation (RF) - Long-term bullish head and shoulders bottom.
5. Sun Healthcare Group Incorporated (SUNH) - Intermediate-term bullish double bottom.
   

Stock of the Week : Ag Giant Monsanto Poised for More Growth

Monsanto Company (NYSE: MON) is up about 2% in midday trading Monday to $117.55 on a quiet day for a stock that almost exactly a year ago closed at $59.71 per share. The obvious question is with a market capitalization of over $64 billion, how much more phenomenal share price growth can the company muster? Based on recent results, market developments, and Wall Street sentiment Monsanto may have only started to blossom. (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.