Wall Street to Main Street: News, Views and Commentary: June 9, 2006
It’s Friday June 9, 2006, and yesterday was a wild day, the Dow dropped over 177 points at one point and was down for most of the day and the money started flowing in at about 2:50pm EST giving a small boost to the Dow and it finally closed up a pinch, just over 7 points.. The bottom line here is that you have to begin looking at stocks on an individual basis and don’t continue to look at the S&P, the Dow or the Nasdaq Composite as a gauge because it will not guide you through this rollercoaster ride.
This is why we feature individual stocks and give our outlook based on the company and the industry. If the stock is not a slave to the Dow but gets dragged down in the process you should be all over it because that is an opportunity.
This market will continue to go up and down and sideways until there is some clarity in regards to an interest rate hike. This is not just a problem for U.S. markets but worldwide and if anyone tells you any different they are not doing you a service. Interest rates around the globe were raised yesterday as inflation worries loom.
We received plenty of emails from our listeners вытяжка Pyramida and readers asking for direction, asking us whether they should buy, sell or hold a particular issue. We do not feature each and every email or question because when you ask for our direction we do our homework so that we are giving you our best outlook on the stock, and not doing it on the fly because that could cause more harm than good.
Yesterday we had more new subscribers to “Wall Street to Main Street” than ever, and that just shows you that investors are looking for guidance, and we’re trying hard to do that for you. Investment advisers, stockbrokers, and even several investment clubs added themselves to the list of subscribers yesterday, so we have to be doing something right.
Now that we established where we stand lets move forward and try to cherry pick those stocks that have been oversold by not only institutions but by investors.
Movers and Shakers
Some major movers in yesterdays trading session include Overstock.com (NASDAQ: OSTK), which traded up $1.56 to close at $23.16, now we are talking about a company that has negative earnings to the tune of $1.20a a share. It is bouncing off of its 52 week low of $20.89, so in other words this is a dead cat bouncing. Even with they added a quicker checkout process on their site by implementing AuctionCheckout.com’s online payment service, this still won’t bring it back to life. Companies that actually earn money were driven down on Thursday and there was no real reason why this puppy made upward movement, it’s an anomaly I guess.
Allegheny Technology (NYSE: ATI) traded up $3.50 to close on $62.75, now it wasn’t as simple as the stock just moving up, it went down with the rest of the market, traded as low as $54 78 before the buying starting flowing back into the stock. When you see a stock like Allegheny Tech traded down that low and that fast you have to find out why, nothing fundamentally changed with the company. Actually Leo Larkin an Analyst with Standard & Poor’s Equity Research recently upgraded the stock from a Sell to a Hold., he actually forecasted 2006 earnings of $4.40 for the company, they posted an EPS of $3.60 for 2005, so S&P sees growth. These are the type of companies that you have to seek out, those that are oversold for no good reason. The demand for Stainless Steel will continue to grow in aerospace and power generation, so they may live up to Larkin’s expectations.
Fluor Corp (NYSE: FLR) traded up $3.24 to close at акустические системы Bose $88.58, the global engineering, procurement, construction, operations, maintenance and project management service provided dropped over $3 on Wednesday, traded as low as $82.93 on Thursday and powered up to close up over $3.24 for the day. The stock was trading over $100 a share this past May and was hammered down, this is one that could creep back up to the $95
Autozone (NYSE: AZO) traded up $2.48 to close at $93.00, this came on the heels of the former President, Vice Chairman and Director of Borders (NYSE: BGP) George R. Mrkonic, Jr joined the board of directors of Autozone. So that is the reason for the movement, this all came to light on Wednesday after the close. Now Autozone is about $10 off its 52 week high and sits with an EPS of $7.30 and a P/E of 12. With Mrkonic giving his input at Autozone you’ll see this one back in the triple digits.
Other stocks that made moves on the upside include Allergan Inc (NYSEL AGN) which traded up $3.79 to close at $102.27, Giant Industries (NYSE: GI) traded up $3.19 to close at $62.70, Noble Corporation (NYSE: NE) traded up $2.39 to close at $67.53, Occidental Pertroleum (NYSE: OXY) traded up $22.6 to close at $96.98 on its way back to $100, Apple Computer (NASDAQ: AAPL) traded up $2.19 o close at $60.76, this is a stock that
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