Hanes Brands - HBI is being sold from the Speculative portfolio for failure to maintain its price momentum. Here are my sell points:
1 - 72% Barchart technical sell signal [more]
Selling Patni Computer Systems ( PTI ) from both Barchart portfolios. Sorry to see this one go. The reason it was in both portfolios is that it started out as a speculative trade but as the price came up past $10 it was added to the New High portfolio also. In total we we able to get a 222.76% return on this trade. That's what portfolio management is all about: Cut your losses but let your winners ride.
The stock needs to be juddered every day and when it runs out of steam you cut it loose. Here's where we are today:
1 - Down 5 straight day for a weekly loss of 9.55% [more]
This hasn't been a week that gives you confidence in your decision making capabilities. The week was weak sums it up. A lot of readers are happy the the last trading session on Friday was up but let's look at where we really ended. I'm going to use Barchart to get all my data and just look at the numbers not the headlines for my guidance. I use 3 similar yard sticks because each measures the market in a different way.
Value Line Index -- Contains 1700 stocks so its much broader than the S&P 500 or very narrow Dow 30 -- I think it's much more representative of the real market action -- Down but not out
1 - Down 3.57% for the week but still up .39% for the last 20 sessions [more]
On Barchart Portfolio Blogs I bring to your attention stocks you might want to consider for your portfolio. Sunoco, Inc. ( SUN ) is principally a petroleum refiner and marketer with interests in coke making. Sunoco's petroleum refining and marketing operations include the manufacturing and marketing of a full range of petroleum products, including fuels, lubricants and petrochemicals, and the transportation of crude oil and refined products. These operations are conducted principally in the eastern half of the United States. Sunoco's coke making operations are conducted in Virginia and Indiana.
For those of you that are gun shy about offshore drilling accidents here is a stock that spun off it's exploration and drilling divisions and just concentrates on refining and distribution.
Income investors should note that the 60 cent dividend is expected to increase to 80 cents and is covered by an $8.70 per share expected cash flow and a $3.50 per share earnings stream. Right now though price appreciation is the story.
The stock hit new highs in 12 of the last 20 trading sessions for a monthly increase of 23.13%. The stock trades around 34.87 with a 50 day moving average of 30.65. On Barchart the technical indicators have 12 of 13 possible buy signals for an overall buy signal of 96%.
Investor sentiment as measured on Motley Fool is extremely high with the CAPS members voting 560 to 53 that the stock will out perform the market and the All Stars are in agreement 176 to 5.
Wall Street brokerages think this is a long term hold with 13 hold reports published but 3 firms still recommend clients continue to buy. Sales are expected to increase 10.30% this year and continue to increase next year. The recent price jump might be attributed to their earnings projections of 445.50% this year and 99.10% next year.
If you're looking for an oil stock without drilling exposure that has more than adequate coverage on their dividend you might want to consider Sunoco ( SUN ) and maybe get a quick pop on the price appreciation.
Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.Disclosure: No positions in the stock mentioned at the time of publication [more]
On Barchart Portfolio Blogs I bring to your attention stocks you might want to consider for your portfolio. Ultratech Stepper, Inc. ( UTEK ) develops, manufactures and markets photolithography equipment designed to reduce the cost of ownership for manufacturers of integrated circuits, including advanced packaging processes, photomasks, thin film magnetic recording devices and micro-machined components. The Company supplies step-and-repeat systems based on one-to-one and reduction optical technology to customers located throughout North America, Europe, Japan and the rest of Asia.
The stock has been on a roll with 15 new highs in the last 20 trading sessions including 5 in the last 5. Barchart's technical indicators have 12 of 13 buy signals for an overall 96% buy. The stock had a 19.08% increase in the last month and trades around 16.10 with a 50 day moving average of 14.58.
Although this stock doesn't have a high investor sentiment with very mixed comments on Motley Fool; Wall Street brokerage firms are very high on this stock. They have 3 buy and a hold report published.
Their forecasts are out of sight and double digit. Sales are estimated to increase 32.40% this year and 32.10% next year. Earnings are predicted to increase by 400.00% this year, 120.00% next year and continue at a 5 year compounded growth rate of 16.50%. I had to read these twice to make sure they weren't misprints.
I'm adding the stock to the Barchart Van Meerten New High portfolio because:
1 - The stock had recent price appreciation of 19.08% this last month [more]
I made a promise to myself that I would not write any more articles about BP but they just keep on digging themselves deeper into a hole of stupidity. My local paper had 3 headline photos this weekend. The first showing Tony Hayward of BP infamy yachting, the second comparing the environmental impact of the oil spill to the Dust Bowl Disaster and the third of the massive fires in the Gulf to burn off the oil. Flip in one page and there is another picture of the hourly workers in jump suits with hand tools cleaning the beaches.
Immediately, into my mind popped the comparison of how Nero fiddled while Rome was in flames. The next image was of Marie Antoinette being told " The people have no bread" and her reply of "Then let them eat cake!" Sounds very much like " The little people are losing their income" and Tony's reply of "Well I'd like my life back too." I guess maybe the French were smarter than we are, we all remember how they got even with her.
Now today instead of taking care of business in the Gulf and getting this 21 inch pipe plugged he has decided to go to Russia and suck up to them before they shut down BP's operations there.
Bernie Madoff only caused his investors to lose $18 billion but since the April 19th close of 59.48 the stock has tumbled to 30.83; a loss of almost $89 billion to BP investors, many of whom are retirees and pension funds dependent on the dividend for income.
What do I want from BP? How about just trying to make me believe they care. How about a photo of all the Executive Officers and the Board of Directors in jump suits with rakes and shovels cleaning the beaches?
Better yet how about a finding that BP's actions are no longer Gross Negligence but have risen to a finding of Criminal Negligence.
Who is benefiting? The short sellers and hedge funds are making a killing. The day the well is plugged those that jump in will make another quick fortune. Too bad they won't share with the innocent stockholders who put their belief in a stable dividend to pay bills in their golden years or the innocent fisherman, waitresses and maids who depended on the beauty of the Gulf to make a living.
Hey Tony why don't you tell them to eat cake!
Jim Van Meerten is an investor who writes on financial matters on Financial Tides,Barchart Portfolio Blogs, Seeking Alpha, Marketocracy and MSN Top Stocks. Please leave a comment below or email JimVanMeerten@gmail.com [more]
Newmont Mining Corp. (NEM ) is engaged in the production of gold and copper, the exploration for gold and the acquisition and development of gold and copper properties worldwide. The company produces gold from mines in Nevada and California, and, outside of the United States, from operations in Peru, Indonesia, Mexico and Uzbekistan. New mines coming online in the next few years in Peru and Ghana should add to sales in the coming years.
Presently production levels this year are expected to be 5.5 million ounces of gold and 380 million pounds of copper.
The stock had a recent price appreciation of 9.45% last month and hit 5 new highs in the last 5 trading sessions. Barchart is giving buy signals on all 13 of its technical indicators. The stock trades around 59.68 with a 50 day moving average of 54.67.
Investor sentiment is high on Motley Fool with the CAPS members voting that the stock will beat the market by a vote of 899 to 84 and the more experienced All Stars are in agreement 311 to 22. Of the columnists Fool follows, articles have been positive 13 to 2.
Wall Street analysts are also high on this stock with 10 buy and 10 hold recommendations published. They feel sales will increase 20.50% this year and 3.50% next year with earnings increases forcasted to be an increase of 25.80% this year, 10.80% next year and continue at a 5 year compounded EPS growth rate of 20.15%.
Normally mining stocks are triple plays where you can have 3 ways to make money: 1- price appreciation of the underlying commodity, 2 - earnings from the mining operations and 3 - nice dividends.
In the case of NEM this years earnings are expected to be about $4.85 per share & cash flow expected to be $3.50 per share. That means the cash dividend of $.40 looks pretty secure now and for several years in the future but at today's share price of 59.68 the dividend gives you only a .67% yield so income investors should look elsewhere for income.
Why should you buy?
1 - Price appreciation of the underlying gold and copper reserves [more]
This week the market got some legs under it. Each weekend I go back to Barchart to get the data for my 3 market yardsticks. This help me clear my head of all the sensational headlines I've read during the past week and just look at the data. I use 3 because although they usually go in tandem they each measure the market in different ways so I think it gives me a more complete feel of what is happening. Let's see what they tell us.
Value Line Index -- Approximately 1700 stocks so it is much broader than the S&P 500 or very narrow Dow 30 -- Up for the week
1 - The Index was up 2.51% for the week [more]
On Financial Tides I bring you stocks that are worth considering for your portfolio. I'm taking a video course from Professor Michael Starbird of the University of Texas at Austin called Meaning from Data: Statistics made clear. The first thing he emphasises is that raw data is meaningless and has no value until it is properly analyzed. That is what this company does.
Teradata Corporation (TDC) is the world's largest company focused on raising intelligence through data warehousing and enterprise analytics. Teradata is located in more than forty countries. Teradata is a trademark or registered trademark of Teradata Corporation in the United States and other countries. Teradata Corporation employs 5,300 worldwide.
All 13 of Barchart's technical indicators are signaling a buy and the stock hit 5 new highs in the last 5 trading sessions. The stock enjoyed a 6.63% price increase in the past month. The stock trades around 33.63 with a 50 day moving average of 30.92.
Investor sentiment as measured on Motley Fool is strong with CAPS members voting 270 to 17 that the stock will beat the market. The more experienced All Stars have a similar vote of 124 to 5.
Wall Street brokerages like this stock with 7 buy and 2 hold reports published. They feel sales will increase 9.40% this year and 8.10% next year. I like their double digit earrings forecasts of increases in EPS of 12.80% this year, 15.00% next year and a 5 year compounded EPS growth rate of 12.50%,
Last year the total return to stockholders was 73.86%.
The stock should be considered because:
1 - It has had recent price appreciation and a 100% Barchart technical buy signal [more]
On Financial Tides I bring you stocks that are worth considering for your portfolio. I've written about this stock before but it's recent price action shows it deserves to be revisited.
Quanta ( PWR ) is a leading provider of specialty electrical contracting and maintenance services primarily related to electric and telecommunications infrastructure in North America. In addition, the Company provides electrical contracting services to the commercial and industrial markets and installs transportation control and lighting systems. Some of Quantas services include the installation, repair and maintenance of electric power transmission and distribution lines and telecommunication and cable television lines, the construction of electric substations, and the erection of cellular telephone.
Double digit sales growth is almost guaranteed as companies strive to meet the new reliability and renewable energy mandates. Congress has given some investment incentives for new infrastructure that is too good to pass up.
Two of their biggest clients, Verizon and AT&T, are in the middle of major upgrades to their networks and PWR will perform most of that work.
The stock hit 5 new highs in the last 5 trading sessions and had a 6.71% price appreciation last month. The stock is trading above it's 20, 50 & 100 day moving averages and has earned a 100% Barchart technical buy signal. The stock trades around 22.94 with a 50 day moving average of 22.66.
Investor sentiment is very high on this stock. On Motley Fool the CAPS members voted that the stock will beat the market by a vote of 539 to 11 and the more experienced All Stars have a similar vote of 161 to 3. Fool notes that of the last 22 articles columnists have written 21 have been positive.
The Wall Street brokerage analysts are very high on this stock with 14 buy and 4 hold recommendations published. Double digit sales increases of 20.40% this year and 12.60% next year are predicted. Earnings forecasts are even better with and increases of 34.30% this year and 29.80% next year. Long term investors will appreciate a forecast of a 12.18% 5 year compounded annual EPS growth rate.
The stock meets my criteria:
1 - Recent price appreciation and new highs in more than 50% of the recent trading sessions [more]
US Airways Group, Inc., ( LCC ) through its subsidiaries, provides air transportation for passengers and cargo. It operates approximately 3,000 flights daily to 190 communities in the United States, Canada, Mexico, Europe, the Middle East, the Caribbean, and Central and South America. As of December 31, 2009, the company operated 349 mainline jets supported by its regional airline subsidiaries and affiliates operating as US Airways Express, which had approximately 236 regional jets and 60 turboprops. US Airways Group operates a hub-and-spoke network with hubs in Charlotte, Philadelphia, and Phoenix; and a focus city at Ronald Reagan Washington National Airport. The company was founded in 1981 and is headquartered in Tempe, Arizona. ( Press release)
The airline is expanding into both Europe, South America and Asia. That makes this stock a risky business but with taking risks sometimes comes rewards. Let's look at the pros and cons and see if you think this stock belongs in your portfolio.
The stock had recent upward price momentum with 14 new highs in the last 20 trading sessions including 5 new highs in the last 5 sessions. Price appreciation has been 48.38% in the last month earning the stock a Barchart 96% technical buy score with 12 of 13 indicators signaling a buy. The stock trades around 10.64 with a 50 day moving average of 7.68.
Overall investor sentiment as measured on Motley Fool is mixed but still slightly positive with CAPS members voting that the stock will beat the market by a vote of 436 to 340 with the more experienced All Stars equally split 125 to 84. Fool does note that of the financial columnists they follow the articles have been positive 9 to 1.
Wall Street is high on the stock with 4 buy and 3 hold reports published based on an estimated increase in sales of 13.20% this year and 4.60% next year. EPS growth is expected to be 153.60% this year, plus 35.30% next year. Long range the 5 year compounded EPS growth rate is only expected to be 3.00%.
I note that even Value Line is reporting that this is a timely stock and looks for increases sales , earnings and price.
The pros are:
- Recent upward price momentum with consistent new highs better than 50% of the recent trading sessions [more]
Stericycle, Inc. ( SRCL ) is a multi-regional integrated company employing proprietary technology to provide environmentally responsible management of regulated medical waste for the health care industry. The Company is the second largest provider of regulated medical waste management services in the United States.
One of the product lines that has helped the bottom line is recall management. Recalls will be a fact of life and many pharma companies would rather hire an outside contractor to perform this function.
The company has a very aggressive growth through acquisition program and completed 6 new acquisitions in the past year.
The stock came to my attention by hitting 10 new highs in the last 20 trading sessions and 4 in the last 5. New highs in this soft market are hard to come by. In the last month the stock has enjoyed a 12.84% price appreciation and trades around 63.79 with a 50 day moving average of 57.61. The stock has a 100% Barchart technical buy rating.
Investors have noticed this stock and over on Motley Fool the CAPS members vote that the stock will outperform the market by a vote of 245 to 15 with the more experienced All Stars agreeing 67 to 8. Of the Wall Street columnists Fool follows it is noted that all 3 articles have been positive.
Wall Street brokerage analysts are high on the stock with 7 buy and 2 hold recommendations published. They feel the sales will increase 16.20% this year and 8.10% next year. Double digit earnings per share increases of 16.70% this year, 13.58% next year and a 5 year compounded EPS growth rate of 16.44% deserves your attention.
This stock has great prospects:
1 - 2nd largest medical waste management company [more]
TIGERLOGIC ( TIGR ) has an installed customer base that includes more than five lac active users representing more than 20,000 customer sites worldwide, with a significant base of diverse vertical applications. With more than hundred employees and contractors worldwide, TigerLogic offers 24x7 customer support services and maintains a strong international presence.
Their website includes a download link for an application called youlink that purports to be a better search engine than any of the other free applications.
The stock came up on my Barchart screener when I went looking for the stocks hitting the most frequent new highs in the last 20 trading sessions. TIGR hit 13 new highs in the last 20 sessions and 4 in the last 5. The last month has shown a 35.14% price appreciation. Barchart registers 11 buy signals on it's 13 technical indicators for an 88% overall buy signal. The stock trades at 4.50 with a 50 day moving average of 3.52.
Wall Street hasn't discovered this stock yet but the analysts who has this on his watch list thinks the sales will increase by 14.20% next year. Earnings per share are expected to increase by 68.40% this year and 83.30% next year, If these estimates are met this could be a nice pick.
Investors over on Motley Fool that have found this stock vote 39 to 7 that the stock will beat the market. The more experienced All Stars have a similar vote 5 to 1.
If you're looking for a speculative pick that the rest of the herd hasn't discovered yet consider these points:
1 - The stock has recent price appreciation and is trading above it's 20, 50 & 100 day moving average [more]
The mid-day signs do signal an improvement over recent market softness but please don't panic and let your emotions rule over your mind. I just want to remind you that panic buying is just as bad as panic selling. Let's see where we stand.
Value Line Index -- 1700 stocks so it's more representative than the narrow S&P 500 or very narrow Dow 30 -- mixed signals
Bad News [more]
Over my lifetime I've seen the same story unfold over and over again. Someone accumulates raw land with the idea of building an agribusiness like a dairy, cattle farm or orchard and is pretty successful. A city not far away begins to grow and pretty soon the suburbs stretch right to the border of the farm and the farmer becomes a real estate developer.
I grew up in Fort Lauderdale and saw that happen in Davie as dairies, cattle farms and orange groves became housing projects. My brother lives in Loxahatchee west of Palm Beach and now you see shopping centers and high schools surrounded by orange groves. Before Walt Disney changed it all, sleepy Orlando was a cattle and citrus farming town. I watched this happen on the north side of Atlanta and now I'm watching the same thing happen on the south side of Charlotte.
I've never had the capital to make major investments in real estate except for ventures into small rental units and REITs but maybe you can.
When I was screening for stocks hitting new highs in this down market I came across Limoneira ( LMNR ) hitting 10 new highs in the last 20 trading sessions and gaining 37.19% in the last month. The stock has 12 of 13 Barchart technical indicators signaling a buy and trades around 21.95.
At the present time the company farms about 7,300 acres in Ventura County California and produces lemons, avocados oranges plus a few acres of specialty fruits. They have been developing some of the property into income real estate sometime selling, sometimes building and renting the property out themselves. They even have some ventures into solar energy and water management.
The company is a savvy forward thinking company with a great website plus Facebook, Twitter and even You Tube sites.
Website : http://www.limoneira.com/
So why do I think this quirky little company deserves a look? The main revenue stream is from agriculture of $31 million and rental income of almost $3 million with operating expenses of around $29 million ( of which $2.3 million is depreciation). The profits from operations help fund the carrying costs of the 7,300 acres of land.
The company gives you a chance to buy into an old dream of buying some agricultural land and letting the farm pay the overhead until you can turn the farm into a cash cow as you sell of some property and develop the rest. Give it a look.
Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com
Disclosure: No positions in LMNR at the time of publication [more]
Not much positive news from the equities market these days but income investors can find some good news, Since all equities prices are depressed yields are on the rise. Income on this play is guaranteed by Fannie and Freddie.
Cypress Sharpridge Investments, Inc. (CYS) is a specialty finance company that was created with the objective of achieving consistent risk-adjusted investment income. The company seeks to achieve this objective by investing on a leveraged basis exclusively in whole-pool residential mortgage pass-through securities for which the principal and interest payments are guaranteed by the Federal National Mortgage Association, or Fannie Mae, the Federal Home Loan Mortgage Corporation, or Freddie Mac, or the Government National Mortgage Association, or Ginnie Mae, and collateralized by single-family residential mortgage loans. It refers to these securities as Agency RMBS. The Company is managed by Cypress Sharpridge Advisors LLC, a joint venture between Cypress CSI Advisors LLC, a sponsor of private equity funds and leveraged buyouts of U.S. companies, and Sharpridge Capital Management, L.P., a specialist fixed income asset management company.
In my book the stock is both an income and a price appreciation play:
1 - Right now the yield is over 16% -- guaranteed by Fannie and Freddie!!! [more]
On of the hottest reports quoted on the Internet last week was the report called The African Challengers: Global Competitors Emerge for the Overlooked Continent by the Boston Consulting Group.
Why would you want to invest in Africa? Here are some points they make about Africa:
1 - With just 4% of global GDP they have 20% of the world's land and 15% of it's population [more]
Each weekend I forget about all the contradicting talking heads and headlines and look back at my 3 yardsticks of the market to let the numbers not the opinions and prejudices of others tell me what really happened. I use 3 yardsticks for 2 reasons. First, each measures the market in a similar but different way. I want to know the percentage and direction of the market's movement. I want to know how much of the market was involved in that movement. And lastly are we at new tops or new bottoms or just solidly in the middle of a reversal? The second reason I use 3 is in my awe of the wisdom of the Supreme Court. 3 is an odd number so you never have a tie. All my data can be duplicated from Barchart if you'd like to run the numbers yourself during the week.
Value Line Index -- I like this Index better than the S&P 500 or the much narrower Dow 30 because it contains 1700 stocks so it gives me a better feel of the overall market and not just the large caps -- This week the Index is down
1 - For the week the Index lost 3.58% [more]
On Financial Tides we've covered this stock before but Diamond Management and Technology Consultants ( DTPI ) just keeps popping up on my new high list. They are a global management consulting firm that helps leading organizations develop and implement growth strategies, improve operations, and capitalize on technology. Mobilizing multidisciplinary teams from highly skilled strategy, technology, and operations professionals worldwide. Diamond works collaboratively with clients, unleashing the power within their own organizations to achieve sustainable business advantage. They are headquartered in Chicago, with offices across Europe, North America, and South America.
The recent and consistent price momentum deserves a new look. The stock continued to hit 12 new highs in the last 20 trading sessions including 4 in the last 5 days. The stock appreciated 21.05% compared to a loss in the Value Line Index of 8.54%. I use the Value Line Index as my benchmark because it contains 1700 stocks making it broader than the S&P 500 or much narrower Dow 30. Barchart's technical indicators have 12 buy signals out of a possible 13 giving this stock a 96% technical buy score. It trades around 10.40 with a 50 day moving average of 8.73.
Price movement without increases in sales and earnings is meaningless and Wall Street analysts think the company will increase sales 22.40% this year and 12.90% next year. Increases in earnings per share are also forecasted to be a 22.70% increase this year, 22.20% next year and 17.50% a year for the next 5 years. I like double digit estimates of sales and earnings increases. Wall Street has published 4 strong buy recommendations.
The stock has a very positive following on Motley Fool with the CAPS members voting that the stock will beat the market 149 to 4. The more experienced All Stars agree 53 to 1.
This stock continues to ring my bell and I still think it's not too late to get in. The positive points are:
1 - Recent and consistent upward price appreciation [more]
Financial Tides likes Hypercom Corp. ( HYC) a global provider of electronic payment solutions, including multi-function point-of-sale terminals, peripherals, network products, Ascendent payment and transaction software and Internet-based and electronic commerce payment solutions. On a global basis Hypercom delivers the services and technology infrastructure required to quickly integrate and deploy new payment applications. These applications provide competitive value-added programs, improved business performance and low total cost of ownership.
All signs are ripe that the economy is in recovery and there is a lot of pent up consumers consumption about to explode both here and abroad. In this new economy cash and checks are no longer king. Purchases of all sizes will be made on cards: debit or credit - it doesn't matter Hypercom will be properly positioned to take advantage of it.
Wall Street has noticed this stock and has 4 buy reports recently published. Although sales are expected to increase only 9.70% this year and 8.60% next year; Wall Street thinks earnings are the story. They estimate an increase in EPS of 113.30% this year, 43.80% next year and a 5 year compounded EPS growth rate of 28.00%. I like these numbers too.
Recent price appreciation is reflected in Barchart's technical buy signal of 100% -- all 13 of Barchart's technical indicators are on green. The stock has appreciated 22.56% in the last month and hit 13 new highs in the last 20 trading sessions. The stock is trading above its 20, 50 & 100 day moving average. It trades around 5.09 with a 50 day moving average of 4.25.
Investor sentiment as measured on Motley Fool is positive with the CAPS members voting the stock will beat the market by a vote of 91 to 15 with the more experienced All Stars agreeing 30 to 2. Fool notes that of the Wall Street columnist they follow all 3 articles have been positive.
If you think the economy will benefit from a need to spend again here are this stocks points:
1 - Recent and consistent price appreciation [more]
Citigroup Inc., ( C ) has some two hundred million customer accounts and does business in more than hundred countries, providing consumers, corporations, governments, and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, and Banamex. Are they a case of too big to fail?
Sometimes the herd just loses it's way. Every day Citi ( C ) seems to be on the top or near the top of the highest volume list. On certain days over a billion shares have traded hands. Wall Street has 8 buy, 10 hold and only 3 sell or under perform recommendations published.
Next year, the same Wall Street analysts that are recommending a buy are saying that the stock will lose .30% in earning per share and they predict that the stock will continue a 5 year downward EPS "growth" of an 8.00% loss for at least 5 years. How can this be??
Herd mentality over on Motley Fool is just as bad with the CAPS members praying that the stock will beat the market by a vote of 8580 to 1703 with the All Stars in the same pew with a vote of 1570 to 313.
Technical price action hasn't been there with the stock losing 34.88% in price in just the last month. The stock hit 11 new lows in the last 20 sessions and 3 lows out of the last 5 days. Barchart shows a technical sell signal on 6 of it's 13 technical indicators for a 24% sell signal.
Folks, let's look at the facts. Obama still own 27% of this company and will slowly sell his share and for public relations reasons that will always be done at a price higher than he paid. This selling will dilute the upward potential for awhile.
There are still a lot of bad assets on the books that need to unwind that will drive down EPS for quite some time.
If I gave you a stock to buy with the following points to consider what would you do? [more]
Whoa! Before you all jump on me for being some kind of a socialist mole in this capitalist economy hear me out.
When I was back in law school one of the biggest concepts we discussed was how the sentencing should fit the crime or tort. The old "What would God do ?" argument.God would turn back time and make it so the victims would forget the pain and they would be back exactly in the position they were before the incident and the perpetrator would be appropriately punished and could never do that dastardly deed again.
Courts can't do that. They can only restrict the offenders freedom with jail time and award the victims money damages. The pain and loss is still there and there is almost no way the court can make sure it will never happen again.
Was this oil spill an accident? If your definition of an accident is something that was unforeseeable and unavoidable then a big NO! Every environmental group warned that there would be an off shore oil rig spill so the unforeseeable excuse is out the window. Was it unavoidable? Another big NO! They will have to prove how they will avoid the same occurrence in the future or they'll never be allowed to drill another off shore well.
I watched the Washington hearings and heard BP ( BP) , Halliburton ( HAL ) and Transocean (RIG ) management not take responsibility and blame it on each other. It was almost like listening to recordings of the Nuremberg Trial after WWII. " I was just a lowly soldier following orders". Just more choruses of the " I was not a Nazi Polka".
I've read where business in the Gulf region is down 30%. Who will pay the waitresses who will be taking home 30% less tips. Who will pay the maids working in the small hotels and motels when 30% of them are laid off. Who will pay the small business owner whose receipts are 30% less?
I live all the way in Charlotte and read that seafood prices even in our region have sky rocketed. Who will pay the owners of every seafood restaurant across the country who will see their profit margin squeezed because their costs are rising but they can't raise prices to offset it. Who will pay me and you, the patrons of seafood restaurants who raised their prices?
This oil spill is not just an environmental disaster but an economic disaster as well that has ripple effects all across out country and even the world. If we wait months and years for all this to go through the court system can you see all the little people who will lose money but not be reimbursed a dime?
Who got rich because of all the shortcuts taken? The Board, Management and Stockholders of BP, Halliburton and Transocean. Who are the ones who are paying for their greedy mistakes: the little people get kicked in the butt again. How can you punish the Board, Management and stockholders of the 3 horsemen of destruction?
All the courts can do is restrict the freedom and punish with monetary fines. That leaves jail time of the Board, Management and loss of your investment for the stockholders.Who will help the waitresses, maids and small business owners pay their bills next month? Not the Board, Management and stockholders of BP, Halliburton and Transocean.
You are the judge and jury. You see the crime unfold daily on TV. You see and feel the pain of the countless victims across the country. What do you think the punishment should be?
Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com
Disclosure: I hold no positions in BP, HAL or RIG at the time of publication [more]