– The Stock Market Companion –
15Minute Market Update
May 20, 2011
—— Stock Market Investing since the 1980’s ——
Published all Market Days
Monthly Subscription $29.95
[Download not found]
-Executive Summary-
- Markets succumb to selling pressure in the face of a firmer U.S. dollar. Yesterday’s negative economic news sank into the minds of market participants today.
- SMC holding Amarin Corp. PLC (Ticker: AMRN) advanced higher today, in spite of the negative background market. That’s a favorable development. We’ll see what next week brings.
- We cut through the fizz concerning Sodastream International in our Story Stock Investing section, below.
- At the SMC we did not engage the markets today with any additional capital and are keeping the lion’s share of our resources in cash. At this point, we consider AMRN to be outside of a range of purchase for ourselves at the Stock Market Companion.
- We wish you all a wonderful, restful weekend.
- Here is a video interview of a father and son using the Stock Market Companion successfully together – as a teaching and investing tool.
– Stock Market Companion – Current Holdings –
| Nr. | Co. | Ticker | Action | Entry Date | Current Gain (Loss) |
| 1 | Cisco Systems,Inc. | CSCO | Holding (Reduced size) | 5-10-2011 | -8% |
| 2 | Amarin Corp. PLC | AMRN | Re-purchased Today | 5-19-2011 | +5% |
– 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 |
1,333.27 |
Index |
DOWN = -10.33 points |
DOW-30 |
12,512.04 |
Index |
DOWN = -93.28 points |
NASDAQ |
2,803.32 |
Index |
DOWN =-19.99 points |
NASDAQ 100 |
2,351.43 |
Index |
DOWN = -18.24 points |
– Market Trends –
Trend |
SP-500 |
DJ-30 |
NASDAQ |
NASDAQ 100 |
Short Term |
Down |
Down |
Down |
Down |
Intermediate |
*Flat* |
*Flat* |
*Flat* |
*Flat* |
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 –
Yesterday, the market took rather disappointing economic news (Philadelphia Fed Survey, Existing Home Sales, Leading Indicators) with a grain of salt. Today, market participants paid a bit more attention to what was happening around them and decided to sell more than purchase.
There are two relationships that we would like you to keep in mind –
- Currently the U.S. dollar is moving in an inverse relationship with the equity markets. When the U.S. dollar moves higher, the market is moving down.
- The market is not rewarding firms their “full-value”. Today Liberty Media offered to buy Barnes and Noble Inc. at a +20% premium to their recent share price.
The key questions in investor’s minds are –
- How are the markets going to behave when the Federal Reserve’s current stimulus is removed?
- At what point will the U.S. Congress raise the debt ceiling? Will the Republicans push for stronger debt reduction and increased fiscal restraint?
- When firms like Hewlett Packard warn of tough conditions ahead, is it wise to stay engaged with the market?
The U.S. dollar is moving higher in the face of uncertainties in Europe – about debt AND outlook for the next quarter in terms of economic strength.
Today, Apple shares pulled back on a report of an explosion at their contract manufacturing factory in China manufacturing their iPads. Click here for details.
– Story-Stock Investing –
In the face of a strong market pull-back today, Stock Market Companion holding Amarin Corp. PLC (Ticker: AMRN) pressed higher. That’s a good sign. The broader market is still in an intermediate term lateral consolidation, with a short term downtrend. If more selling occurs on the broader market, it will become increasingly difficult for stocks like AMRN to move higher.
The company Sodastream International (Ticker: SODA), which manufactures a consumer household appliance to carbonate and flavor water at home surged higher this week based on favorable earnings. Here’s what we know –
| Quarter | Date | Earnings | Revenue (Million) | Soda Makers Sold |
| Q4 | December 2010 | .28 | $66.3 | 712,000 |
| Q1 | March 2011 | .27 | $64.35 | 592,000 |
When we push away the euphoria and excitement with this company, we see earnings so far stable at approx. 0.27 (euro). When we translate these earnings into annual terms and convert to U.S.$. we can maybe say that annual earnings are approx. $1.57/share. Today, the stock closed at a share price of $55.32/share. So it’s forward looking Price Earnings ratio is approx. 35. It’s growth rate is strong but not clear. For the sake of perspective – at a P/E of 35 it’s selling at a 100% premium to what Apple, Inc. shares are selling at this time.
SODA stock came onto the market with an IPO in November 2010 at approx. $24/share. It rose to approx. $43 and then sold back down to approx. $26/share in January. We know this –
- U.S. retailers are adding SODA to their sales items in their stores (JC Penney will launch the product soon.)
- Japan’s largest trading company has signed a contract in April to begin launching SODA products in Japan.
- Therefore growth is evident among retail outlets and countries.
We would like to see how the stock handles its stock advance this week in the face of current broader market uncertainties. We are going to keep an eye on the stock.
Click here for a picture of our SMC Daily Chart of SODA.
Here are a few more details about the company –
- Company website = http://www.sodastreamusa.com/default.aspx
- The company is Israeli and has an impressive reach -SodaStream is the world’s largest manufacturer, distributor and marketer of Home Carbonation Systems. Our brands are sold in over 40,000 retail stores in 41 countries including home & electrical appliance stores, hypermarkets, supermarkets, department stores, convenience stores, DIY, specialty and “green” stores, water specialists & dealers, as well as online and in catalogs. Click here to see more …
Next week we will report on the implications of strong insider buying at Simple Tech, Inc. (Ticker: STEC), revealed this morning.
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 counsel 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 15Minute Market Update 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 |
1.4153 USD = 1 Euro |
USD / EUR |
Dollar = UP |
Gold |
$1,508.90 |
Ounce |
Gold = Flat/UP |
Oil |
$99.91 |
Barrel (West Texas Crude) |
Oil = Flat |
30 Yr. Fixed Mortgage |
4.69% |
Percent |
Flat |
10 Yr. Bond Yield |
3.152 |
Percent |
Flat |
1 Yr. CD |
1.16 |
Percent |
Flat |
Data Source : Financial Visualizations Inc.
Please help us by sending your valuable feedback to – Support@stockmarketcompanion.com
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.
Categories: Archives, Daily Updates
Tags:
