Weekly Market Overview

The stock market opened the week lower as investors reacted to the government’s refusal to commit additional capital to the automakers. The refusal marked a turning point for many market participants, who believed that the government would continue to back domestic industries for as long as necessary. Financials, energies, and commodities also dropped sharply on the news as it increased concerns over the health of the U.S. economy going forward.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Kraft Foods Inc. (NYSE: KFT) may not be in the most appetizing industry, but it seems to be well-positioned for success in this tough economic climate. The food processing company sees long-term growth rates of 7 to 9 percent, while it continues to pay a strong 5 percent dividend yield. However, not everyone is optimistic about the future of premium food companies. (Read More)
2. Trico Marine Services Inc. (NASDAQ: TRMA) shares moved higher after the company rejected a proposal submitted by Kistefos in a DEF14A filing with the SEC. The letter rebuffs the proposals by stating that it can only consider proposals that company with Delaware law and the company’s governing documents. Some of Kistefos’s proposals violate these laws and therefore cannot be considered at the company’s next annual meeting of shareholders. (Read More)
3. CKE Restaurants, Inc. (NYSE: CKR) reported its fourth quarter earnings Wednesday, but it’s the future that concerns many investors. The restaurant chain saw a challenging year in 2008 (fiscal 2009), with record commodity prices, the collapse of the credit markets, and a significant decline in consumer spending in the latter half of the year. However, the company was able to post an 18.9% increase in net income for the year. The big question for investors is: Are these increases sustainable? (Read More)
4. Williams-Sonoma, Inc. (NYSE: WSM) shares opened higher after the company announced that it is continuing to explore additional traffic drivers through paid and natural search, target-driven direct response, and affiliate programs to boost revenues. The company also plans to increase productivity and enhance its profit margins through a variety of initiatives outlined in its investor conference call. (Read More)
5. Multimedia Games Inc. (NASDAQ: MGAM) shares opened lower despite positive comments out of an analyst. Roth Capital noted that, according to an Associated Press article, a judge ruled that the White Hall gambling center in Alabama, where the company owns 400 out of 950 total charity bingo games, can re-open without the threat of another raid by the Governor’s Task Force on Illegal Gambling. Despite the legal uncertainty, the firm continues to find shares undervalued and maintains a buy rating. (Read More)
   

Technical Analysis

1. GameStop Corp. (GME) - Intermediate-term bullish diamond bottom.
2. Nuveen Dividend Advantage (NZF) - Intermediate-term bullish bottom triangle.
3. Blackrock Muniyield Insurance (MYI) - Intermediate-term bullish bottom triangle.
4. Skillsoft Plc. (SKIL) - Intermediate-term bullish bottom triangle.
5. YRC Worldwide Inc. (YRCW) - Intermediate-term bullish megaphone bottom.

Stocks of the Week : CKE Restaurants (CKR)

CKE Restaurants, Inc. (NYSE: CKR) reported its fourth quarter earnings Wednesday, but it’s the future that concerns many investors. The restaurant chain saw a challenging year in 2008 (fiscal 2009), with record commodity prices, the collapse of the credit markets, and a significant decline in consumer spending in the latter half of the year. However, the company was able to post an 18.9% increase in net income for the year. The big question for investors is: Are these increases sustainable? (Read More)

Article of the Week : Understanding Market Makers

Market makers play a big role in over the counter markets like the OTC-BB and Pinksheets. Often times, there is not a lot of liquidity and trading volume in these markets, which creates a need for market makers to step in and create a trading environment. This article will explore how market makers function, especially in the OTC markets where they play a vital role. (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 and confidence is seen for a lot longer.

Weekly Market Overview

The U.S. stock market rallied today after the Treasury announced a $1 trillion program to reduce the number of toxic assets contaminating U.S. banks. The financial sector led the rally as any reduction in toxic assets could lead to an increase in lending and improved balance sheets for banks and financial institutions. Meanwhile, oil and commodity prices opened higher due to increased inflationary concerns before moving down marginally on profit-taking.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Wilshire Enterprises Inc. (AMEX: WOC) shareholders have been presented with two conflicting stories throughout this lengthy proxy battle. Management believes that Full Value’s fire-sale of assets would not fetch a fair premium in today’s markets. Meanwhile, Full Value believes that management simply wants to entrench itself for another year and continue draining the company’s capital. (Read More)
2. Target Corporation (NYSE: TGT) shares opened sharply higher amid a broad market rally on the Treasury’s new plan to buy up toxic assets. However, investors have another good reason to be happy after looking at a Form 4 filing with the SEC. Executive Officer Gregg Steinhafel purchased 150,000 shares on March 18th at an average price of $30.35 per share. However, is this a real sign of confidence or something else entirely? (Read More)
3. Capital One Financial Corporation (NYSE: COF) has been hit hard by the economic downturn as higher defaults caused significant deterioration in their credit card portfolio. The stock fell from a high of around $65 per share to a low of around $8 per share before rebounding. However, many investors now believe that the tide may be turning for the credit card issuer. (Read More)
4. Image Entertainment, Inc. (NASDAQ: DISK) shares fell sharply after the company announced the departure of President and Chief Operating Officer David Borshell in an 8-K filing with the SEC. The executive will be replaced by Jeff Framer, who has served as Chief Financial Officer since April 1993. The announcement comes just a year after the retirement of Marty Greenwald who Borshell replaced. (Read More)
5. DayStar Technologies Inc. (NASDAQ: DSTI) shares opened lower after the company’s auditors expressed doubt about its ability to continue as a going concern in its latest 10-K filing with the SEC. These comments are typically reserved for companies that do not have adequate capital, and may not be able to raise adequate capital, to fund their operations. (Read More)
   

Technical Analysis

1. Dreyfus Strategic Muni (DSM) - Intermediate-term bullish bottom triangle.
2. VisionChina Media Inc. (VISN) - Intermediate-term bullish bottom triangle.
3. United States Gasoline (UGA) - Intermediate-term bullish head and shoulders bottom.
4. Take Two Interactive (TTWO) - Intermediate-term bullish megaphone bottom.
5. Cal-Maine Foods Inc. (CALM) - Long-term bullish continuation wedge.
   

Stocks of the Week : Wilshire Enterprises (WOC)

Wilshire Enterprises Inc. (AMEX: WOC) shareholders have been presented with two conflicting stories throughout this lengthy proxy battle. Management believes that Full Value’s fire-sale of assets would not fetch a fair premium in today’s markets. Meanwhile, Full Value believes that management simply wants to entrench itself for another year and continue draining the company’s capital. (Read More)

Article of the Week : Understanding Market Makers

Market makers play a big role in over the counter markets like the OTC-BB and Pinksheets. Often times, there is not a lot of liquidity and trading volume in these markets, which creates a need for market makers to step in and create a trading environment. This article will explore how market makers function, especially in the OTC markets where they play a vital role. (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 U.S. markets opened in positive territory and moved even higher before giving up much of the gains before close. President Obama's $15 billion plan to help small businesses helped improve the banking sector and helped offset the AIG's much-anticipated largest loss in corporate history. Many experts now believe that much of the bad news may be priced in, but investors are not out of the woods quite yet. Most investors may still want to keep their money on the sidelines until things improve.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Joy Global (NDAQ: JOYG) shares opened higher after CNBC’s Jim Cramer recommended the stock on his Mad Money Lightning Round. The hedge fund manager turned television star believes that the coal company is substantially undervalued and recommended that investors pick up some shares in the infrastructure play as the Chinese are ordering equipment and the U.S. is set to rebound. (Read More)
2. Accenture Ltd. (NYSE: CAN) shares opened lower despite positive comments from CNBC’s Jim Cramer. The hedge fund manager turned television star suggested that the company could benefit from continued IT outsourcing on his Mad Money Lightning Round. Cramer recommended viewers pick up some shares of this “terrific company” at around $30 a piece. (Read More)
3. The Mosaic Company (NYSE: MOS) shares opened lower after CNBC’s Jim Cramer recommended rival Terra Nitrogen Company, L.P. (NYSE: THN) on his Mad Money Lightning Round. The hedge fund manager turned television star remains cautious on the fertilizer sector and suggested that Terra Nitrogen has been one of the few survivors, in part thanks to its strong dividend yield. (Read More)
4. Osteotech, Inc. (NDAQ: OSTE), a leader in the emerging field of biologic products for regenerative healing, is planning on regenerating profits for shareholders, too. After a tough fourth quarter, the company believes it is well-positioned or long-term profitable revenue growth in fiscal 2010 and well into the future as several new promising drugs and devices in its pipeline come to fruition. (Read More)
5. Johnson & Johnson (NYSE: JNJ) shares opened higher following positive comments by CNBC’s Jim Cramer on his Mad Money Lightning Round. The hedge fund manager turned television star believes that the firm may put a competitive bid in for Schering-Plough and is well-positioned for future growth. Cramer recommended that viewers step in and “pull the trigger” on JNJ. (Read More)
   

Technical Analysis

1. Aracruz Celulose SA (ARA) - Intermediate-term bullish continuation wedge.
2. Iconix Brand Group (ICON) - Long-term bullish diamond bottom.
3. IntercontinentalExchange (ICE) - Intermediate-term bullish double bottom.
4. Intevac Inc. (AVAC) - Intermediate-term bullish megaphone bottom.
5. IRIS International (IRIS) - Intermediate-term bullish bottom triangle.
   

Stocks of the Week : GMX Resources Inc. (GMXR)

GMX Resources Inc. (NASDAQ: GMXR) shares opened sharply higher after an activist investor hinted they may take future action to unlock value at the firm in a Schedule 13D/A filing with the SEC. (Read More)

Article of the Week : High End Retailers Suffer during Holidays

Macy’s Inc. (M), Saks Incorporation (SKS), and other high end retailers fell after reports of a weak holiday season hit the market. Retailers’ sales fell around 4 percent during the holiday season as the weak economy took its toll on consumer spending, according to a report earlier this week by MasterCard’s SpendingPulse. Many experts have seen this holiday season as one of the most difficult on record with soaring unemployment and a sharply lower stock market eating into consumer spending. (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 U.S. markets opened the week sharply lower on the heels of an additional $30 billion government package to help insurance giant AIG. Approximately 94% of the companies listed on the S&P 500 are trading lower, while the Dow Jones Industrial Average dropped to its lowest levels in 12 years. The only good news was that consumer spending edged up 0.6% for the first time in six months on higher wages, especially among government employees.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. The Walt Disney Company (NYSE: DIS) shares opened lower despite receiving a positive recommendation by CNBC’s Jim Cramer on his Mad Money Lightning Round. The hedge fund manager turned television star believes that Disney remains a strong company and suggested viewers buy it for the long-term, but cautioned that things would likely be bad for the next three to six months. Cramer also recommended that investors buy in increments as the stock drops to average in lower. (Read More)
2. ConAgra Foods, Inc. (NYSE: CAG) shares opened lower despite receiving a positive recommendation by CNBC’s Jim Cramer on his Mad Money Lightning Round. The hedge fund manager turned television star believes that ConAgra remains a strong company with a good dividend despite the peanut scare, and recommended that viewers buy in four increments as the stock moves lower. (Read More)
3. Target Corporation (NYSE: TGT) shares opened lower after a key activist announced that he would be seeking board representation. Bill Ackman’s Pershing Square disclosed a reduced stake in the retailer, but unveiled talks with Target about naming potential directors to the company’s board. (Read More)
4. PPL Corporation (NYSE: PPL) shares opened lower despite positive comments by CNBC’s Jim Cramer on his Mad Money Lightning Round. The hedge fund manager turned television star is bullish on utilities in this market and recommended PPL along with Exelon Corporation (NYSE: EXC) and Consolidated Edison Inc. (NYSE: ED), which he insists has better growth rates in recent months and years. (Read More)
5. Maximus, Inc. (NYSE: MMS) shares opened lower despite positive comments by CNBC’s Jim Cramer on his Mad Money Lightning Round. The hedge fund manager turned television star believes that the firm is a great play on Obama’s administration as it provides healthcare and human services management for the government. As a result, Cramer recommended viewers pick up some shares of the stock. (Read More)
   

Technical Analysis

1. Netease.com Inc. (NTES) - Long-term bullish continuation diamond.
2. AptarGroup Inc. (ATR) - Intermediate-term bullish continuation wedge.
3. Citigroup Capital IX (C.S) - Intermediate-term bullish continuation wedge.
4. Leap Wireless (LEAP) - Intermediate-term bullish bottom triangle.
5. Big Lots Inc. (BIG) - Intermediate-term bullish diamond bottom.
   

Stocks of the Week : Tarrant Merger Gets a lot more Likely

Tarrant Apparel Group (NASDAQ: TAGS) shares more than doubled late last week after a large shareholder announced his support of the merger proposal with Sunrise Acquisition Company. Interim Chief Executive Gerard Guez will vote his 48.3% stake of common stock in favor of the merger. This development makes it very likely that the merger agreement will be consummated. (Read More)

Article of the Week : High End Retailers Suffer during Holidays

Macy’s Inc. (M), Saks Incorporation (SKS), and other high end retailers fell after reports of a weak holiday season hit the market. Retailers’ sales fell around 4 percent during the holiday season as the weak economy took its toll on consumer spending, according to a report earlier this week by MasterCard’s SpendingPulse. Many experts have seen this holiday season as one of the most difficult on record with soaring unemployment and a sharply lower stock market eating into consumer spending. (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.