-Executive Summary-

• Whipped Around … Down and Up!  The markets were caught with overseas weakness this morning, but recovered to flat-line.  See more below.
• The markets are – in many cases – NOT rewarding risk.  See more below.
• Tech stocks like Dell, Inc. (Ticker: DELL) and Cisco Systems, Inc. (CSCO) are getting the cold shoulder.
• Dendreon, Inc. (Ticker: DNDN) cruised above our $39/$40 line in the sand.  We will see how it holds the day or so before considering an investment.  See more below.
• SMC Holding Ford Motor Co. (F) announced that it will be recalling 1.2 million F-Series pick-ups due to an electrical short that can lead to unintended airbag deployment.  A wire in the steering wheel rubs and gets chaffed, resulting in a short circuit and airbag deployment.  Shares of the Ford stock were naturally weak on this news, but recovered some.  This recall includes all F-150’s produced from 2004 to 2005 and some 2006’s. Here’s a detail article on the subject from the news. If you have an F-Series pick-up manufactured in this time frame, please don’t wait – take it to the dealer for repair!
  As Ford shareholders, we don’t like this news … but so far investors are not over-reacting.
• Google, Inc. (Ticker: GOOG) reports earnings after the close.
• THERE ARE NO ACTIONS that we have taken today.  Please see our observations, below.
• Here’s our SECOND Stock Market Companion Customer Testimony video.
  

– Stock Market Companion – Current Holdings –

Nr.	Co.	Ticker	Action	Entry Date	Current Gain (Loss)
1	Nexxus Lighting	NEXS	Holding	3/18/2011	-21%
2	Dell Inc.	DELL	Holding	3/21/2011	+0%
3	Cisco Inc.	CSCO	Holding	4/6/2011	-4%
4	Ford Motor Co.	F	Holding	4/1/2011	-4%
5	China Shen Zhou Mining	SHZ	Holding	4/7/2011	+24%

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	1,314.12	Index	Flat = +.11 points
DOW-30	12,2285.15	Index	Flat/UP = +14.16 points
NASDAQ	2,760.22	Index	Flat = -1.30 points
NASDAQ 100	2,311.25	Index	Flat = -5.38 points

– Market Trends –

Trend	SP-500	DJ-30	NASDAQ	NASDAQ 100
Short Term	Flat	Flat	Flat	Flat
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 –

This is a peculiar time.  Corporate earnings are excellent, yet the stock market is not giving full tribute to excellent earnings.  For example, Apple, Inc. (Ticker: AAPL) grew revenue last year at a rate of +70%, but the share value of Apple stock is only up approx. +20% from its price last June.  Apple is growing at a tremendous rate, but it only sells for a P/E of approx. 17.

As a rule of thumb, some investors – particularly growth stock investors – are willing to pay a share price that equates P/E  AT / OR sometimes significantly higher than the company’s revenue or earnings growth rate.  Of course value investors won’t do that (they will wait 10 years and try to buy the stock for a P/E of 2), but a broad segment of the professional investing community engages in such purchases – with success.

For example, if Apple, Inc. shares were selling at a P/E of 50, and real earnings are approx. $20/share, and we solve the equation for price, then the Apple share price would be $1000/share (50×20=1000).  Since last summer there have been price targets given of $500 or more for the Apple shares, but the stock still lingers in the $330 range.  Now, we aren’t saying that Apple shares are heading to 1000 any time soon.  We are saying that the shares are not currently carrying ANY premium related to growth – or for re-defining the cell phone or for re-defining the P/C industry with the first successful tablet PC’s and the earnings growth rate that comes from being early in the technology adoption curve.

Last week we watched Texas Instruments, Inc. (TXN) announce its desire to acquire National Semiconductor (NSM) at an approx. +71% premium to the listed market price of the common shares.  Since then, we’ve seen nothing but WEAKNESS in the semiconductor space – as if the institutional investing community is completely ignoring Texas Instrument’s valuation of the marketplace.

Michael Dell went ahead and put down approx. $150 million of cold cash on his company’s stock at open market prices a few weeks ago, and the stock has hardly budged.

Cisco Systems CEO John Chambers publicly announces that he is going to turn the ship around, and the stock – after an initial bounce – heads back south.

Simply peculiar.  One way to look at it is that the market is simply not rewarding “risk” of stock ownership.

We’re proceeding as we always have – finding good growth stories or unusual opportunities and entering the investment at the best time that we possibly can.

Today the markets were pistol-whipped at the open due to concerns that China is not going to be able to get inflationary pressures under control without an abrupt end to high growth there.  There were assertions made that real estate in China will then drop -20 to -30% in many cities.  A month or so ago we calculated the sq. foot price of apartment space in Shanghai and came up with a $330/sq. foot. price tag.  A house in the U.S. heartland at approx. $85/sq. foot sure looks like a bargain compared to such prices.  So the idea of a price correction in Chinese real estate is certainly not out of the question.

European sovereign debt issues – which have been hanging over the markets over a year now – were again front-center in the news concerning Greece and German assertions that Greece will need to restructure their debt.

– Story-Stock Investing –

Goldman Sachs made the assertion this week that oil prices are heading DOWN in the near future (after they sold their holdings the day before they released their thoughts about future oil prices).  We’re keeping an eye on airline stocks.  The story here is –

1. Airlines have increased revenue every way they possibly can over the past 18 months.  (Ticket prices, baggage fees, ticket change fees…)

2. Airlines do have more pricing power than they did 5 years ago.

3. Airlines have CUT capacity by removing flights.

4. The peak season is still ahead, prices look firm, and fuel prices may be coming down a bit.

5.  High, recent oil prices have pushed airline share prices down significantly.  American Airlines (Ticker: AMR) are DOWN -35% since January.  A move above $6/share would get us interested in AMR.

Dendreon, Inc. (DNDN) crossed above our mental $40/share line in the sand on strong volume today.  If the market wasn’t behaving as peculiar as it currently is, we would have gotten on board today.   This time, we are going to give it an extra day or two to demonstrate that it can hold its price.  They are rolling out a full-scale advanced prostate treatment process that costs approx. $94,000/patient.  They received FDA approval last year, but there has been justifiable concern as to whether the government would allow medicare / medicaid to reimburse such costs.  It appears that reimbursement may be soon settled in Dendreon’s favor.

At the Stock Market Companion we do not and cannot give individual investment advice. According to the State of Washington RCW 21.20.005 the Stock Market Companion is not a Registered Financial Advisor and we do not render any advice on the basis of the specific investment situation of a particular individual. This information is for a wide readership and is not intended for any particular individual,  and under no circumstances should our 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.  Please seek the council of a broker or other licensed investment professional for accurate pricing and concerning the suitability of all investments that you may be considering. Disclosure : 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.

– 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	1.4491 USD = 1 Euro	USD / EUR	Dollar = Down some.
Gold	$1,475.30	Ounce	Gold = Up at High’s Again.
Oil	$108.45	Barrel (West Texas Crude)	Oil = Up a buck.
30 Yr. Fixed Mortgage	4.8%	Percent	Flat
10 Yr. Bond Yield	3.48	Percent	Flat
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.