Weekly Market Overview

The United States stock markets got off to a weaker start as the financial markets displayed uncertainty ahead of the planned House vote on an unpopular $700 billion plan to bailout troubled financial companies. Investosr are also examining a last-second deal struck by WAchovia - the second major commercial bank to fail amid the crisis. Demand for safe government debt surged as the markets began the day 180 points lower and continued to drop from there. Many are speculating that it could be awhile before a turnaround takes effect even if a $700 billion package is passed.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Sysco Corporation (SYY) - Sysco shares opened lower despite a positive recommendation by CNBC's Jim Cramer on his Mad Money Lightning Round. The hedge fund manager turned television star believes that the company is well run and management is capable of doing well even in a difficult time for the industry. As a result, Cramer recommended that his viewers buy it other than on a pullback, which means that investors may have to wait a bit before getting in this week. (Read More)
2. Blockbuster Inc. (BBI) - Blockbuster shares have fallen sharply over the past few months as competition has heated up, but many experts believe that this move was not fundamentally driven. Same-store revenues have increased 9% as general and administrative expenses have dropped $17 million compared to a year ago. Rather, investors believe that it is the fear of an industry change that led to the decline - a concern that Blockbuster has plans to combat. (Read More)
3. First Solar, Inc. (FSLR) - First Solar shares led the decline of the solar sector after the House of Representatives moved to jeopardize solar energy tax breaks that were renewed in the Senate's original bill. The revised bill retains the eight-year tax extension for solar energy, but alters their value to be much lower than anticipated. However, the bill faces a veto by the White House as it raises taxes and separates the Alternative Minimum Tax proposal from the main bill. (Read More)
   
4. The Procter & Gamble Company (PG) - The Procter & Gamble Company shares are up some 15% from their lows in 2008 as successful price hikes helped preserve margins. Many investors are now watching the consumer goods manufacturer as commodity and energy prices begin to fall, which could prove to be a further boost to margins. So, should investors take a second look at this non-cyclical consumer goods company? (Read More)
5. Freeport-McMoRan Copper & Gold Inc. (FCX) - Freeport shares dropped sharply as copper dropped to its lowest level in more than seven months. The London Metal Exchange fell as low as $6,980 a tonne as inventories posted their largest one-day surge in four years. Notably, the price is also below the key technical level of $7,000 a tonne, which means a further drop could be in the cards. The news sent miners like Freeport sharply lower on the day. (Read More)

Technical Analysis

1. Darling International Inc. (DAR) - Intermediate-term bullish continuation wedge.
2. Ezcorp Incorporated (EZPW) - Intermediate-term bullish symmetrical continuation triangle.
3. Nike Inc. (NKE) - Long-term bullish continuation diamond.
4. Omega Healthcare Investors Inc. (OHI) - Long-term bullish continuation diamond.
5. Palm Harbor Homes Inc. (PHHM) - Intermediate-term bullish bottom triangle.
   

Stocks of the Week : Ackman Attacks Long's Deal

Longs Drug Stores Corp. (NYSE: LDG) recently accepted a buyout offer from CVS Caremark (NYSE: CVS) for $71.50 per share ealier this month. Later, Walgreen Company (NYSE: WAG) submitted their own $75 per share bid for the company that was later rejected. So, how much is Long's really worth? Well, at least one activist investor believes it's worth nearly $90 a share and has an analysis to back it up. William Ackman's Pershing Square hedge fund outlined its ideas in regulatory filings with the SEC. (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 as inflation continues to rise. Overall, the economy seems to be healing, 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 began the week on a negative note after investors experienced anxiety over the government's plan to buy $700 billion in bank mortgage debt. Investors sought out safety in hard assets like gold and oil, which logged best-ever gains for a single session. The dollar has also headed lower while credit markets remain unease though not showing the frantic trading they saw last week. The Dow lost 370 points on the session today.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. The Procter & Gamble Company (PG) - The Procter & Gamble Company shares are up some 15% from their lows in 2008 as successful price hikes helped preserve margins. Many investors are now watching the consumer goods manufacturer as commodity and energy prices begin to fall, which could prove to be a further boost to margins. So, should investors take a second look at this non-cyclical consumer goods company? (Read More)
2. Freeport-McMoRan Copper & Gold Inc. (FCX) - Freeport shares dropped sharply as copper dropped to its lowest level in more than seven months. The London Metal Exchange fell as low as $6,980 a tonne as inventories posted their largest one-day surge in four years. Notably, the price is also below the key technical level of $7,000 a tonne, which means a further drop could be in the cards. The news sent miners like Freeport sharply lower on the day. (Read More)
3. America's Car-Mart, Inc. (CRMT) - America's Car-Mart shares dropped in mid-day trading after rival Carmax Inc. (KMX) reported weaker-than-expected earnings for the second quarter. However, many investors remain confident in a clever plan that has helped Car-Mart not only increase its sales during a tough economic environment, but also increase the selling prices of its vehicles. And on a valuation basis, their may be much more upside for the small turnaround play. (Read More)
4. Bank of Marin Bancorp (BMRC) - Bank of Marin is one regional bank that not only avoided the credit crisis, but may also become a quality takeover target. The bank has a squeaky clean balance sheet and posted five consecutive quarters of healthy earnings growth while achieving an impressive net interest margin of 5.52 percent. This was achieved by avoiding risky real estate loans and instead focusing on building more customer assets in non-interest bearing checking accounts. (Read More)
5. Longs Drug Stores Corp. (LDG) - Longs recently and accepted a buyout offer from CVS Caremark (CVS) for $71.50 per share ealier this month. Later, Walgreen Company (NYSE: WAG) submitted their own $75 per share bid for the company that was later rejected. So, how much is Long's really worth? Well, at least one activist investor believes it's worth nearly $90 a share and has an analysis to back it up. William Ackman's Pershing Square hedge fund outlined its ideas in regulatory filings with the SEC. (Read More)
   

Technical Analysis

1. Coleman Cable Incorporated (CCIX) - Intermediate-term bullish bottom triangle.
2. Bryn Mawr Bank Corporation (BMTC) - Intermediate-term bullish upside breakout.
3. Global Diversified Industries Incorporated (GDI) - Intermediate-term bullish continuation wedge.
4. Clayton Williams Energy Inc. (CWEI) - Intermediate-term bullish continuation wedge.
5. Osi Systems Inc. (OSIS) - Intermediate-term bullish bottom triangle.
   

Stocks of the Week : Ackman Attacks Long's Deal

Longs Drug Stores Corp. (NYSE: LDG) recently accepted a buyout offer from CVS Caremark (NYSE: CVS) for $71.50 per share ealier this month. Later, Walgreen Company (NYSE: WAG) submitted their own $75 per share bid for the company that was later rejected. So, how much is Long's really worth? Well, at least one activist investor believes it's worth nearly $90 a share and has an analysis to back it up. William Ackman's Pershing Square hedge fund outlined its ideas in regulatory filings with the SEC. (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 as inflation continues to rise. Overall, the economy seems to be healing, but consumers may lag a bit behind as weakness in spending is seen for at least a couple more quarters.

Weekly Market Overview

The market soared higher at the open after the government bailed out Fannie Mae and Freddie Mac. The government's new plan boosts confidence in sectors like financials and home builders, but does not immediately alleviate worries about other areas of the economy.  The Dow Jones gained over 300 points before falling substantially as the day came to an end. Meanwhile, bond prices fell sharply as emboldened investors looked for riskier but high-yielding bets. Finally, the U.S. dollar increased and helped oil move into lower territory.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Petroleo Brasiliero (PBR) - Petroleo Brasiliero SA shares began the week on a positive note after CNBC's Jim Cramer recommended the stock on his Mad Money program last week. The hedge fund manager turned television star believe that Petrobras is a buy at these levels as it buys back stock and continues to drill for natural gas and oil. The Brazilian state-owned energy giant continues to be one of the largest oil companies in the world and recently discover significant new reserves. (Read More)
2. 99 Cents Only Stores (NDN) - 99 Cents Only Stores may be getting more than they bargained for with one large investor. Akre Capital Management disclosed an 11.26 percent stake in the discount chain and recommended that it explore strategic alternatives to unlock shareholder value in a Schedule 13D/A filing with the SEC last week. These alternatives may include discontinuing certain businesses, repurchasing shares with excess cash and refocusing on maximizing profitability rather than expanding. (Read More)
3. Target Corporation (TGT) - Target shares started the week on a positive note as lower oil prices and a stronger dollar helped the recovering retailer. Oil futures dropped $7 per barrel after Hurricane Gustav hit the Gulf region with less force than initially feared. Prices were also impacted by a stronger dollar and concerns that the economic slowdown has curbed demand for energy. Retail stocks benefited as they tend to trade opposite of energy prices. (Read More)
4. The Procter & Gamble Company (PG) - The Procter & Gamble Company shares are up some 15% from their lows in 2008 as successful price hikes helped preserve margins. Many investors are now watching the consumer goods manufacturer as commodity and energy prices begin to fall, which could prove to be a further boost to margins. So, should investors take a second look at this non-cyclical consumer goods company? (Read More)
5. Freeport-McMoRan Copper & Gold Inc. (FCX) - Freeport shares dropped sharply as copper dropped to its lowest level in more than seven months. The London Metal Exchange fell as low as $6,980 a tonne as inventories posted their largest one-day surge in four years. Notably, the price is also below the key technical level of $7,000 a tonne, which means a further drop could be in the cards. The news sent miners like Freeport sharply lower on the day. (Read More)
   

Technical Analysis

1. Systemax Incorporated (SYX) - Intermediate-term bullish bottom triangle.
2. Universal Health Services Inc. (UHS) - Long-term bullish continuation diamond.
3. Perini Corporation (PCR) - Intermediate-term bullish bottom triangle.
4. Access Pharmaceuticals Incorporated (ACCP) - Long-term bullish bottom triangle.
5. Advance America Cash Advance Centers (AEA) - Intermediate-term bullish diamond bottom.
   

Stocks of the Week : Baidu Shares Surge Higher

Baidu.com, Inc. (NDAQ: BIDU) shares started the week on a positive note after falling sharply from its highs of $429 per share. Many investors had been concerned that the firm would not be able to keep up the growth rates needed to maintain its lofty valuation. Currently, Baidu trades at 81.99x earnings compared to Google's more modest 29.1x earnings and Yahoo's 25.32x earnings. However, continued bullish sentiment by investors and analysts has shares higher. (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 as inflation continues to rise. Overall, the economy seems to be healing, but consumers may lag a bit behind as weakness in spending is seen for at least a couple more quarters.

Weekly Market Overview

Stocks started the week on a positive note after oil prices plunged on reports that the Gulf Coast and its oil facilities have been spared from heavy damages from Hurricane Gustav. Light sweet crude is now down more than $8 per barrel on the New York Mercantile Exchange, easing Wall Street's concerns about Gustav and inflation's impact on the broader econom. The market optimism was also boosted by news that Korea Development Bank is in talks about taking part in a possible acquisition of Lehman Brothers.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. 99 Cents Only Stores (NDN) - 99 Cents Only Stores may be getting more than they bargained for with one large investor. Akre Capital Management disclosed an 11.26 percent stake in the discount chain and recommended that it explore strategic alternatives to unlock shareholder value in a Schedule 13D/A filing with the SEC last week. These alternatives may include discontinuing certain businesses, repurchasing shares with excess cash and refocusing on maximizing profitability rather than expanding. (Read More)
2. Smith International, Inc. (SII) - Smith International shares moved marginally higher after CNBC's Jim Cramer recommended the stock on his Mad Money Lightning Round. The hedge fund manager turned television star believes the stock is a cheap oil driller that has been hammered by the market. With politicians increasingly in support of offshore drilling to relieve oil prices, Cramer believes that Smith is a winner going forward and a buy at these levels. (Read More)
3. Transocean Inc. (RIG) - Transocean shares began the week lower as oil prices dropped and the dollar strengthened. Any sustained drop in oil prices could make deepwater drilling projects less viable and decrease business for companies like Transocean. Meanwhile, a higher dollar tends to hurt pricing points for companies based in the United States. However, many experts remain bullish on the stock given their solid operating results and hefty backlog. (Read More)
4. Target Corporation (TGT) - Target shares started the week on a positive note as lower oil prices and a stronger dollar helped the recovering retailer. Oil futures dropped $7 per barrel after Hurricane Gustav hit the Gulf region with less force than initially feared. Prices were also impacted by a stronger dollar and concerns that the economic slowdown has curbed demand for energy. Retail stocks benefited as they tend to trade opposite of energy prices. (Read More)
5. Emerson Electric Co. (EMR) - Emerson shares rose marginally after CNBC's Jim Cramer recommended the stock on his Mad Money Lightning Round. The hedge fund manager turned television star is very bullish on the stock, saying that shares should be trading $5 higher. However, many analysts are bearish on the stock, citing a downturn in the U.S. industrial sector. So, where are Emerson Electric shares headed in the future? (Read More)
   

Technical Analysis

1. Syngenta Ag For Nvs (SYT) - Intermediate-term bullish continuation wedge.
2. Schnitzer Steel Industries  Inc. (SCHN) - Intermediate-term bullish continuation wedge.
3. Tele Norte Leste Partticipacoes Sa (TNE) - Intermediate-term bullish symmetrical continuation triangle.
4. Geomet Incorporated (GMET) - Intermediate-term bullish symmetrical continuation triangle.
5. Calgon Carbon Corporation (CCC) - Intermediate-term bullish ascending continuation triangle.
   

Stocks of the Week : Target Corporation Moves Higher

Target Corporation (NYSE: TGT) shares started the week on a positive note as lower oil prices and a stronger dollar helped the recovering retailer. Oil futures dropped $7 per barrel after Hurricane Gustav hit the Gulf region with less force than initially feared. Prices were also impacted by a stronger dollar and concerns that the economic slowdown has curbed demand for energy. Retail stocks benefited as they tend to trade opposite of energy prices. (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 as inflation continues to rise. Overall, the economy seems to be healing, but consumers may lag a bit behind as weakness in spending is seen for at least a couple more quarters.