– The Stock Market Companion –
15Minute Market Update
May 26, 2011
—— Stock Market Investing since the 1980’s ——
Published all Market Days
Monthly Subscription $29.95
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-Executive Summary-
- Marginally higher. The markets again attempted to rally today, but volume continues to be light. See below.
- U.S. Treasury 10 Year Bonds continue to be in DEMAND – forcing yields down lower. Risk is being avoided. We are mindful of this.
- Tonight at 7.00 PM PST, we are planning – FREE to our subscribers – our first Stock Market Companion – Market and Individual “Story-Stock” Briefing and Question and Answer Session (Live Webinar). For those interested, please click on this link – https://freetrial.webex.com/freetrial/j.php?ED=148529552&UID=493594052&RT=MiM0 and click “join as a participant” in the upper left corner to register your name and email address to attend. Be sure to bring whatever questions you have about stock investing and we will do our best to answer them. See more below.
- Today at the SMC we purchased shares of Hewlett Packard Co. (Ticker: HPQ) at $36.43 and placed our stop at $35.48/share. See what we like about HPQ, below.
- Down-and-out electronics retailer HH Gregg (shares recently at approx. $12/share, after peaking at $26/share in October 2010) posted excellent earnings today. (Ticker: HGG). We mentioned the stock yesterday. See more below.
– 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 | -9% |
| 2 | Amarin Corp. PLC | AMRN | HOLDING | 5-19-2011 | +9% |
| 3 | Hewlett Packard Co. | HPQ | Purchased Today | 5/26/2011 | +/-0%
|
– 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 |
1,325.69 |
Index |
UP = +5.22 points |
DOW-30 |
12,402.76 |
Index |
UP = +21.54 points |
NASDAQ |
2,782.92 |
Index |
UP =+15.22 points |
NASDAQ 100 |
2,325.93 |
Index |
UP = +14.98 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 –
Over the past 3 weeks, the broader market has retraced 50% of its last leg higher – off its rally from the March 2011 lows – following the earthquake and devastating tsunami in Japan. This is a natural place for the market to find initial support – and it has.
There is not much news today driving the markets. Two retailers – Tiffany&Co. and Guess? posted good numbers and helped prop up the retail sector for the day.
The U.S. dollar retraced south a bit and the market responded inversely to the greenback’s performance. Volume is low as market participants eye the up-coming long Memorial Day weekend.
– Story-Stock Investing –
Today, Hewlett-Packard Co. (Ticker: HPQ) shares started strong out of the gate, in spite of a negative performance in the market. We liked what we saw, so we purchased shares and sent out this SMC Intra-Day Alert –
Dear Subscriber-Friend –
Hewlett-Packard (Ticker: HPQ) shares are improving in the face of a difficult market. We just purchased some at $36.43/share.
Our stop is at approx. $35.48/share (just below recent lows).
The market continued to perform poorly, and HPQ shares stabilized at around the $36.40 line. Then the broader market began to improve and HPQ shares continued higher. So far so good. Here’s what we like about Hewlett-Packard –
- HPQ’s trailing 12 month earnings is = $5.01. In other words, HPQ made $5.01/share net earnings over the last 12 months. At a share price of $36.43 – which we paid today for our shares, HPQ is selling at 7.27 time earnings. That isn’t much compared to the broader market average of approx. 17. In fact, this means that HPQ is selling at a -57% discount to the broader market. That’s cheap – as long as the company can keep posted good earnings.
- They are neck and neck with Dell, Inc. on PC production. HP may be the current leader.
- They’ve hired a good CEO. Leo Apotheker is a strong CEO and knows the industry. He’s shaking things up. Here’s a link to an article about some recent upper management changes at the co., thanks to our SMC banker-friend in Tacoma. Click here for the link –http://online.wsj.com/article/SB10001424052702303654804576345693663298956.html?mod=googlenews_wsj
- HPQ can print money with their printer business and needs to keep their eye on the ball in the PC and enterprise space. A new CEO with something to prove – who is hiring new lieutenants who want to make their mark (and earn their bonuses) may be just the ticket.
- Mr. Apotheker was frank with his upper management with a memo recently about upcoming difficult times. The market pummeled HPQ stock, but the last downgrades couldn’t push the stock further south. Under normal conditions, we expect that a bounce to at least the $40 area may be in the cards for the stock. That would be an approx. +9.7% run for the stock.
On to another SMC Story-Stock. Yesterday we mentioned HH Gregg stores (Ticker: HGG) – an electronics retailer. Today HGG posted quarterly earnings and blew the doors off the house (comparatively speaking) – They earned (ex one time items) 39 cents a share. The last three quarters, the company earned 0.66; 0.10; 0.07 per share. Cumulatively, that’s $1.22/share. Today the shares closed at $15.24/share, representing a P/E of $12.49. Now this isn’t quite as cheap as Hewlett Packard may be, but still a large discount to the overall market. They added 42 NET new stores over the last 12 months and are targeting more. Their main competition is Best Buy, AMAZON.com, and Target… Who are all pretty tough and not who you want to compete with – BUT – HGG may have their market niche right. HGG shares are -41% off their October 2010 highs of $26.03, closing today at $15.24 UP +19%! Here’s a Reuter’s article to go along with today’s move in the stock.
Yields on the 10 Yr. U.S. Treasuries continue to drop as investors avoid riskier investments at this time. We are mindful of this.
TONIGHT at 7:00 PM PST !! Don’t miss it … Your first Stock Market Companion – Market and Individual Stock Briefing and Question and Answer session (Live Webinar). We will be using Cisco System’s WEBEX conferencing tool (free-trial mode).For those interested, please click on this link – https://freetrial.webex.com/freetrial/j.php?ED=148529552&UID=493594052&RT=MiM0 and register your name and email address to attend. Our intent is to quickly go through how we are seeing the market and individual stocks, and give lots of time for question and answers that you can communicate by typing your questions in the chat window as we go along. Barring any unforeseen technical difficulties, my voice will be audible for you – so for those attending you will want to test your PC speakers to make sure things are “on” and functioning. Since this is our first such Webinar event, please be prepared to be patient. Technical issues may arise. We talked with WEBEX customer service and asked what the number 1 problem is with such events. Their answer = Participants not understanding how to join the meeting. You will need to follow your screen directions slowly and carefully. We will be doing the same on our side to make this a success! Our hope is to be able to post the recorded session on the website soon after completing the event. Those who cannot attend or whose time zone is simply not compatible with our scheduled live event will be able to enjoy the recorded session. Things will get better as we do more of these. It is our hope to offer 1 such event free/month for subscribers.
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 |
1.4136 USD = 1 Euro |
USD / EUR |
Dollar = Down |
Gold |
$1,523.70 |
Ounce |
Gold = UP |
Oil |
$100.10 |
Barrel (West Texas Crude) |
Oil = Flat |
30 Yr. Fixed Mortgage |
4.69% |
Percent |
Flat |
10 Yr. Bond Yield |
3.06 |
Percent |
Down some more. |
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.
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