– The Stock Market Companion –

15MinuteStocks

Market Update

March 21, 2011

—— Stock Market Investing since the 1980’s ——

Published all Market Days
Monthly Subscription $29.95

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-Executive Summary-

  • Higher!  The markets moved higher, but with little conviction.
  • The National Association of Realtors posted their Existing Home Sale data for February.  We included a link to their interesting press release below.  The information is insightful.
  • At the SMC, we purchased shares of DELL, Inc, as information was released revealing very significant purchases by CEO, Michael Dell.  We sent out an SMC Intra-Day Alert ASAP which we include below – with a list of the reasons why we like the stock.
  • Here’s our first Stock Market Companion Customer Testimony video.  THANK YOU, Everett!  Thanks also to OTM Video Productions for their excellent work.

– Stock Market Companion – Current Holdings –

Nr. Co. Ticker Action Entry Date Current Gain (Loss)
1 Nexxus Lighting NEXS Holding 3/18/2011 -3%
2 Dell Inc. DELL Purchased TODAY 3/21/2011 -1.6%

If the above “Current Holdings” table is empty it means that we are not holding ANY stocks at this time and that we are therefore 100% in cash.

– Markets “At a Glance” –

(Please scroll down to the end of the report to see your favorite benchmarks – Dollar, Oil, Gold … closing prices and daily direction.)

Market

Price (Today’s Close)

Unit of Measure

Today’s Direction

SP-500

1,298.38

Index

UP = +19.18 points

DOW-30

12,036.53

Index

UP = +178.01 points

NASDAQ

2,692.09

Index

UP = +48.42 points

NASDAQ 100

2,262.70

Index

UP = +41.63 points

– Market Trends –

Trend

SP-500

DJ-30

NASDAQ

NASDAQ 100

Short Term

Down

Down

Down

Down

Intermediate

UP

UP

UP

UP

Long Term

Lateral

Lateral

Lateral

Lateral

*Summary of terms from Trader Vic II-Principles of Professional Speculation (pg. 140-141)
*_________* Represents a change in trend rating.

– Market Perspectives –

For your added perspective, we’ve included this chart of the broader market (Successful stock investors develop and start with a minds-eye view of the broader market and keep it clear) –

1. SMC SP-500 ETF Daily Chart (Click to open helpful chart in a separate browser window).

– Today’s Highlights –

Money was made today by those willing to take specific risks over the weekend – as the Japan and Libya events were unresolved.  To be successful in the stock market, it is NOT necessary to take such risks.  Best is to keep an eye out for good growth stories, or oversold conditions of excellent stocks and engage them as the market transitions into a more favorable stance.  So far, the market is bouncing off recent lows but is still in a short term down trend.

Today we awoke to news that AT&T (Ticker: T 28.26) had made an offer to purchase T-Mobile from Deutsche Telekom for $39 billion.  Strong news like this gives the market some foundation.  This isn’t however the time to run out and by AT&T shares.

National existing home sales numbers were released for February by the National Association of Realtors.  Here is their press-release.  It’s an easy read and good to know.

The number of existing homes sold FELL in February, after 3 months of increases.  What stood out to us in the report were these sentences –

“Housing affordability conditions have been at record levels and the economy has been improving, but home sales are being constrained by the twin problems of unnecessarily tight credit, and a measurable level of contract cancellations from some appraisals not supporting prices negotiated between buyers and sellers.

Uncertainties relative to Japan and Libya remain a drag on the overall market.


– Story-Stock Investing –

Today, LEGAL insider trading news was released by the SEC.  The news showed significant purchases by Dell, Inc. CEO, Michael Dell last Wednesday through Friday.  We got right on it!  From many aspects, we liked this news and sent out this SMC Intra-Day Alert –

Dear Subscriber-Friend –

We have gone ahead this morning and initiated a modest purchase of Dell Inc. (Ticker: DELL) at $14.92/share and $14.98/share.

It is public knowledge this morning that  Michael Dell himself purchased approx. 10 million shares of his company at around $14.20/share last week.

Earnings reported by Dell on February 15th were excellent.

We will report more later in our SMC 15MinuteStocks Market Update

We’ve placed our stop wide, at $13.98/share.

For your protection and our own, we would like to remind everyone that this is not an investment recommendation for any particular individual.  We cannot possibly know the risk tolerance and investment suitability of such investments for any particular subscriber. Successful investors know their own objectives, purposes, and risks associated with any investment – whether in real estate, stocks, or other investments.  Each investor is on their own.

We are simply reporting the SMC actions in the market place.

Your – Stock Market Companion


Here’s what we like about Dell, Inc –

1. Excellent quarterly earnings and up – almost DOUBLE year ago levels.

2. For the year, Dell guided earnings expectations HIGHER.

3. When the CEO has his name on the company, and his name is Michael Dell, and the stock has gone nowhere for a long time, while APPLE Inc. has soared – Michael Dell may have something to prove!

4. At today’s prices in the $14/share range, the stock has retraced its Feb. 16th gap-UP following earnings.  At these prices, we aren’t paying for immediate “earnings excitement” following blow-out earnings.

5. An approx. $150 million investment in the company is a strong statement by Mr. Dell.

6. The company is selling at around a P/E of 9 – if Dell, Inc. can maintain a 40 cents/share quarterly earnings level.  That’s almost a 50% discount to the overall market average selling price of stock.


– Stock Market Companion – Performance –

Please click on this chart to see the Stock Market Companion 15MinuteStocks stock performance versus the SP-500.  It will open in a separate browser window.
* Gains (losses) do not include brokerage fees.   Our returns are very strong … BUT …  WE have to remind everyone just like all other financial sites in America – Past Performance is No Guarantee of Future Returns.  Unlike others however, our objective is to teach you to be able to make these types of strong returns On Your Own.

All of the investments – stocks, entries, and exits are listed on our Stock Market Companion Watchlist at the bottom of the spreadsheet, in the section labelled Former Holdings.

– Benchmarks “At a Glance” –

US Dollar

1.4211 USD = 1 Euro

USD / EUR

Dollar = Down

Gold

$1,426.80

Ounce

Gold = UP

Oil

$102.34

Barrel (West Texas Crude)

Oil = UP a bit.

30 Yr. Fixed Mortgage

4.87%

Percent

Flat

10 Yr. Bond Yield

3.323

Percent

Up a bit.

1 Yr. CD

1.16

Percent

Flat

Data Source : Financial Visualizations Inc.


Signing-Off for Today,

Your -Stock Market Companion

** Stock Market Companion Disclaimer **

The Stock Market Companion (SMC) Market Update and Watchlist are published documents to subscribers that show how we (SMC) are viewing the markets and what we are watching, investing in or selling today.  This information is for a wide readership and is not intended for any particular individual,  and under no circumstances should this Market Update or Watchlist be considered an investment recommendation or plan for any specific individual.  By accessing this material, you agree that the Stock Market Companion will not be held liable for any actions taken by a subscriber or other parties.  You understand that the Stock Market Companion holds positions in the above mentioned securities.  Based on market related or personal events these positions may change without notice.

Furthermore, the Stock Market Companion, Inc. is a content provider and publisher and not a registered broker-dealer or licensed investment professional.  Our intent is to publish very accurate market information for an audience of subscribers (1000+ subscribers).  By accessing the Stock Market Companion website and/or using the Stock Market Companion products and services such as this Market Update and accompanying Watchlist, you understand and agree that the material provided in the Stock Market Companion products and services is for informational and educational purposes only, and that no mention of a particular security in a Stock Market Companion product or service constitutes a recommendation to buy, sell, or hold that or any other security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.  To the extent any of the information contained in any Stock Market Companion product or service may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.  Before selling or buying any stock or other investment you should consult with a qualified broker or other financial professional to verify pricing information and to solicit advice as to the appropriateness of a given transaction or investment.


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