SUMMARY OF THE FIRST QUARTER
The DOW closed at 10,856
The S&P closed at 1,169
The NASDAQ closed at 2,397
Let’s see the results of my recommendations for this quarter.
JASO on 2/28/2010 was recommend to buy at $5 a share on 3/30/2010. It traded at $5.90 - a gain of almost 20% .
SOLF on 2/28/2010 was recommended to buy at $6 a share. Today it traded at $7.95 - up almost 33% .
MSFT was recommended 3/2/2010 to buy at $28.50. On 3/28/2010 it traded at $30.50-up almost 9%.
C on 3/4/2010 was recommended to buy at $3.40. On 3/28/2010, it traded at $4.35- a gain of 33%.
AMAT was recommended to buy on 3/9/2010 at $12.40 a share. Today, it traded at $13.73- up almost 11%.
Additionally, there were buy recommendations issued on other stocks last month. I shall revisit them next month to see how they appreciated.
The point is, investors selling stocks to secure a profits it is what is all about. Sometimes a profit can be achieved in few days and sometimes they have to wait weeks or months. Therefore, each time the opportunity comes along to secure a profit, TAKE IT.
Wednesday, March 31, 2010
Tuesday, March 30, 2010
Citi shares feel the heat as Treasury prepares to sell stake 03/29 02:57 PM
Citigroup Inc. (C:$4.06,00$-0.12,00-2.87%) declined 3% to close at $4.18 Monday after the Treasury Department said it will begin to unwind its sizable stake in the banking giant this year.
The Treasury plans to sell 7.7 billion shares of Citi it owns as a result of the financial bailout over the course of 2010 subject to market conditions.
"Treasury intends to sell its Citigroup (C:$4.06,00$-0.12,00-2.87%) common shares into the market through various means in an orderly and measured fashion," it said in a statement.
As I said in the past, as soon as ’C’ become free of the Treasury holding the company will do well and the stock price will be much higher by the end of the year.
(See Blog March 4, 2010.)
Citigroup Inc. (C:$4.06,00$-0.12,00-2.87%) declined 3% to close at $4.18 Monday after the Treasury Department said it will begin to unwind its sizable stake in the banking giant this year.
The Treasury plans to sell 7.7 billion shares of Citi it owns as a result of the financial bailout over the course of 2010 subject to market conditions.
"Treasury intends to sell its Citigroup (C:$4.06,00$-0.12,00-2.87%) common shares into the market through various means in an orderly and measured fashion," it said in a statement.
As I said in the past, as soon as ’C’ become free of the Treasury holding the company will do well and the stock price will be much higher by the end of the year.
(See Blog March 4, 2010.)
Friday, March 26, 2010
WET SEAL Inc, (WTSLA)
Wet Seal Inc. Reports Un-audited Consolidated Earnings Results for the Fourth Quarter and Year Ended January 30, 2010; Provides Earnings Guidance for the First Quarter of Fiscal 2010; to Open 25 to 40 Net Stores; Provides Capital Expenditure Guidance for the Full Year 2010.
The Wet Seal (WTSLA:$4.68,00$0.08,001.74%) reports Q4 sales of $151 million, down from $154.9 mln a year ago. Net income was $0.79 per share, vs. $0.04 per share a year ago. Ex a benefit, EPS was $0.10 per share, ahead of the company's guidance of $0.08 to $0.09 per share, and up from $0.09 per share last year. The Street view was $151 mln in revs and earnings of $0.08 per share.
For Q1, the company is guiding for sales between $138 and $140 million, vs. the Street view of $136 million. Today the price of WTSLA is $4.80 a share.
Many institutions, as a general rule, will not invest in a company which it’s stock is trading below $5 a share. As per the guidance of WTSLA it seems to be that the company is on the right track to be a major ten-age choice of shopping destination. If this is the case than WTSLA can earn as much as a $1 a share for the year 2011, and the stock price can reach $12 a share by the end of the year
Wet Seal Inc. Reports Un-audited Consolidated Earnings Results for the Fourth Quarter and Year Ended January 30, 2010; Provides Earnings Guidance for the First Quarter of Fiscal 2010; to Open 25 to 40 Net Stores; Provides Capital Expenditure Guidance for the Full Year 2010.
The Wet Seal (WTSLA:$4.68,00$0.08,001.74%) reports Q4 sales of $151 million, down from $154.9 mln a year ago. Net income was $0.79 per share, vs. $0.04 per share a year ago. Ex a benefit, EPS was $0.10 per share, ahead of the company's guidance of $0.08 to $0.09 per share, and up from $0.09 per share last year. The Street view was $151 mln in revs and earnings of $0.08 per share.
For Q1, the company is guiding for sales between $138 and $140 million, vs. the Street view of $136 million. Today the price of WTSLA is $4.80 a share.
Many institutions, as a general rule, will not invest in a company which it’s stock is trading below $5 a share. As per the guidance of WTSLA it seems to be that the company is on the right track to be a major ten-age choice of shopping destination. If this is the case than WTSLA can earn as much as a $1 a share for the year 2011, and the stock price can reach $12 a share by the end of the year
Thursday, March 25, 2010
STOCK MARKET AT 18 MONTHS HIGH
At 11:30 am the DOW was up over 100 points to 10933, the S&P was trading at 1178 while the NASDAQ was up 30 points to 2428. All those markets were at 18 months high. About 50 companies which are part of the S&P 500 were trading at 52 weeks high.
At the same time the US BONDS lose ground. The 10 years bonds were trading at 97.875 with a yield of 3.90 In other words, a $1,000 face value 10 years bonds is valued today only at $978.75
So, where are we going from this point.
The stock market is a forward looking mechanism . It tells us that companies will do very well in the next six to nine months, The economy will improve somewhat while the unemployment will stay high.
The stock market will keep going up, and the value of US bonds will go down.
At 11:30 am the DOW was up over 100 points to 10933, the S&P was trading at 1178 while the NASDAQ was up 30 points to 2428. All those markets were at 18 months high. About 50 companies which are part of the S&P 500 were trading at 52 weeks high.
At the same time the US BONDS lose ground. The 10 years bonds were trading at 97.875 with a yield of 3.90 In other words, a $1,000 face value 10 years bonds is valued today only at $978.75
So, where are we going from this point.
The stock market is a forward looking mechanism . It tells us that companies will do very well in the next six to nine months, The economy will improve somewhat while the unemployment will stay high.
The stock market will keep going up, and the value of US bonds will go down.
Wednesday, March 24, 2010
Home-builder sector up slightly as new-home sales slow 03/24 08:39 AM
Home-builder stocks showed gains on Wednesday even as government data showed a continued slowing of new-home sales.
Lennar Corp. (LEN:$17.90,00$0.84,004.92%) led the pack with gains of 4.7% after the home builder's first-quarter loss narrowed to $6.5 million, or 4 cents a share, as revenue fell 3.1% to $574.4 million, beating Wall Street estimates. Lennar (LEN:$17.90,00$0.84,004.92%) , however, reported that new home orders for the quarter rose 18% to 2,577.
Other home builders showed gains on the day. Hovnanian Enterprises Inc. (HOV:$4.875000,$0.205000,4.39%) shares rose 3%. Shares of “BZH’ rose to $4.90 a share , up 2%. Sales of new homes fell for the fourth-straight month according to February data to its lowest rate since the Commerce Department started keeping figures in 1963. Seasonally adjusted, new-homes sales declined 2.2% to an annual pace of 308,000. The number of new homes for sale increased 1.3% to 236,000, or a 9.2 month inventory based on the current sales rate.
Home-builder stocks showed gains on Wednesday even as government data showed a continued slowing of new-home sales.
Lennar Corp. (LEN:$17.90,00$0.84,004.92%) led the pack with gains of 4.7% after the home builder's first-quarter loss narrowed to $6.5 million, or 4 cents a share, as revenue fell 3.1% to $574.4 million, beating Wall Street estimates. Lennar (LEN:$17.90,00$0.84,004.92%) , however, reported that new home orders for the quarter rose 18% to 2,577.
Other home builders showed gains on the day. Hovnanian Enterprises Inc. (HOV:$4.875000,$0.205000,4.39%) shares rose 3%. Shares of “BZH’ rose to $4.90 a share , up 2%. Sales of new homes fell for the fourth-straight month according to February data to its lowest rate since the Commerce Department started keeping figures in 1963. Seasonally adjusted, new-homes sales declined 2.2% to an annual pace of 308,000. The number of new homes for sale increased 1.3% to 236,000, or a 9.2 month inventory based on the current sales rate.
Tuesday, March 23, 2010
SAKS, Inc (SKS)
Today, J. P. Morgan raised ‘SKS’ to overweight from neutral. They had a target price on the stock at $7 a share. Yesterday ’SKS’ closed at $8.76 way over J. P. Morgan target price. Where they were when the stock was trading as low as $6.25 earlier this year ? It is an example how analysts” take a cover” after a stock move up or down and the only way to be right is to change their opinion on a stock after it made it’s move.
I personally believe that ’SKS’ will move much higher to as high as $20 a share by the end of the year, also there is the possibility that the company will be a target of “take over”.
COLDWATER CREEK, Inc (CWTR)
At $7 a share, I believe ‘CWTR’ that it is a under value. The company had it’s challenges in the past and with some personal changes it moves in the right direction. Sales will increase, as the economy getting better and with inventory control ’CWTR‘ can reach $12 a share
Today, J. P. Morgan raised ‘SKS’ to overweight from neutral. They had a target price on the stock at $7 a share. Yesterday ’SKS’ closed at $8.76 way over J. P. Morgan target price. Where they were when the stock was trading as low as $6.25 earlier this year ? It is an example how analysts” take a cover” after a stock move up or down and the only way to be right is to change their opinion on a stock after it made it’s move.
I personally believe that ’SKS’ will move much higher to as high as $20 a share by the end of the year, also there is the possibility that the company will be a target of “take over”.
COLDWATER CREEK, Inc (CWTR)
At $7 a share, I believe ‘CWTR’ that it is a under value. The company had it’s challenges in the past and with some personal changes it moves in the right direction. Sales will increase, as the economy getting better and with inventory control ’CWTR‘ can reach $12 a share
Monday, March 22, 2010
Monday after Quadruple Witching.
As written on Friday, the DOW reversed itself and was up 40 point during the morning . The same amount it lost on Friday. This reversal was exactly as I anticipated.
.
Many of the stocks that closed Friday were just under strike price also reversed their course. Listed below are just a few examples,
STX closed Friday under just under $19 a share . In today’s the morning trading, the stock rose to over $19.50.
MU closed Friday under $10 a share . On opening this morning, the stock rose to $10.25 a share .
Others such ax BX, C, RFMD and many more followed suit.
On the flip side, stocks that closed over their strike price opened down. Owners of the calls sold the stocks in order to profit from the application of the options. Just one example was AMD . AMD closed Friday at over $9 a share. The stock opened on Monday morning trading as low $8.80. Once again there are numerous examples to validate my claim.
As written on Friday, the DOW reversed itself and was up 40 point during the morning . The same amount it lost on Friday. This reversal was exactly as I anticipated.
.
Many of the stocks that closed Friday were just under strike price also reversed their course. Listed below are just a few examples,
STX closed Friday under just under $19 a share . In today’s the morning trading, the stock rose to over $19.50.
MU closed Friday under $10 a share . On opening this morning, the stock rose to $10.25 a share .
Others such ax BX, C, RFMD and many more followed suit.
On the flip side, stocks that closed over their strike price opened down. Owners of the calls sold the stocks in order to profit from the application of the options. Just one example was AMD . AMD closed Friday at over $9 a share. The stock opened on Monday morning trading as low $8.80. Once again there are numerous examples to validate my claim.
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