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| PRIME
STOCK NEWSLETTER FOR MARCH 24th,
2005 |
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Position
Statement: In
our Prime Recommendation Letter
we attempt to identify the
recommendation with the highest
probability of moving higher.
We recommend that stop orders
be placed at the time of purchase,
and once the position has
moved profitable we recommend
a stop be placed a minimum
of $0.25 above the purchase
price and moved higher as
the position moves higher.
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Today’s Comments:
The overall market finished
Wednesday mixed with the
Dow Jones Industrial Average
finishing slightly lower,
while the S&P 500 and
the NASDAQ finished the
day slightly higher. While
it appears the Dow Jones
Industrial Average is entering
an area of support; I still
have concerns that the current
downward trend of the market
may not be over just yet
as the vast majority of
the heavy volume stocks
I looked at still appear
to be moving lower. While
a reversal could come at
any time, I am not convinced
it will be today.The
Bottom Line: The
overall market should move
lower
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| Sterling
Calendar for March 24th,
2005 |
| Date: |
Comments: |
| 3/24 |
Conagra (CAG) Announces
Earnings at 8:30am |
| 3/24 |
TIBCO Software (TIBX)
Announces Earnings After
the Close |
|
Recommendation: SELL/SHORT
Amazon.Com, Inc. 'AMZN' |
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Company:
Amazon.Com, Inc.
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Symbol: 'AMZN' |
Closing
Price: $33.18 |
|
YH:
$54.70 YL:
$32.53 |
EPS:
$1.39 P/E: 24 |
Forecasted
EPS:
$1.05 |
| Shares
Outstanding: 410
Million |
Float:
300 Million |
Market
Cap.: $14
Billion |
| Dividend:
None |
Yield: N/A |
Average
Daily Trading Volume:
8.8 Million Shares |
| Price
Targets:
$31.56, $27.76 and
then $25.12 |
Upside Stop: $34.43share |
| Options
Recommendation:
April $30 Puts @ $0.30/contract |
Options
Symbol: ZQNPF |
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Company
Description:
Amazon.com, Inc.
is a customer-centric
company that sells
a range of products
that it purchases
from manufacturers
and distributors
through its six
global Websites:
www.amazon.com,
www.amazon.co.uk,
www.amazon.de, www.amazon.fr,
www.amazon.co.jp
and www.amazon.ca.
The Company offers
new, used, refurbished
and collectible
items, in categories
such as apparel,
shoes and accessories,
home, garden and
outdoor living products,
baby care products,
jewelry and watches,
books, kitchenware
and housewares,
camera and photography,
magazine subscriptions,
cellular telephones
and service, music,
computers and computer
add-ons, office
products, consumer
electronics, software,
DVDs (Digital Video
Discs) and videos,
sports and outdoors,
gourmet food, tools
and hardware, health
and personal care
and toys. Through
its Syndicated Stores
program, Amazon
utilizes its e-commerce
services, features
and technologies
to sell its products
through other businesses'
Websites. |
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Our
Analysis: The
shares of Amazon.Com,
Inc. 'AMZN' set
a new multi-year
low yesterday. This
is a bearish trading
signal. I am expecting
the shares of 'AMZN'
to continue to move
lower and test $31.56/share,
a point of support
that was established
in mid May of 2003.
If the shares of
'AMZN' close below
$31.56/share, then
I am expecting them
to continue to move
lower and test $27.76/share,
a former point of
upside resistance
established in late
March of 2003 that
has now become downside
support. Our lower
price target of
$25.12/share, is
the point from which
the shares of 'AMZN'
gapped higher on
the open of trading
on April 25th of
2003. I do think
there is a very
good chance the
shares of 'AMZN'
will reach our lower
price target. I
see upside resistance
on the shares of
'AMZN' at $34.14/share,
and have set our
stops accordingly
at $34.43/share. |
INDICES |
| Dow Jones
Industrial Average
(INDU):
Closed @ 10,456.02 Last
Signal: Called
Lower on March 11th
with a Sell Signal @
10,774.36
Current Expectations:
I am expecting a short
term pullback in the
Dow Jones Industrial
Average to 10,440.58
If the Dow closes below
that level then it should
move lower and test
10,428.02 |
| S&P 500
(SPX): Closed
@ 1,172.53 Last Signal:
Called lower on
March 10th with a close
at 1,209.25 Current
Expectation: I am
expecting the S&P
500 to move lower and
test 1,171.36 If the
S&P 500 closes below
1,171.36 then it should
continue to move lower
and test 1,163.75 |
| NASDAQ
100 (NDX):
Closed @ 1,471.77 Last
Signal: Called
Lower on March 9th with
a close of 1,521.08
Current Expectations:
The NDX should move
lower and test 1,425.21 |
| CBOE
Ten Yr Treasury Index
(TNX): Closed
@ 4.607 Last
Signal: Called
Higher on March 7th
with a close of 4.304%
Current Expectations:
The TNX should move
higher and test 4.695%
on a closing basis.
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| Stocks
Looking Higher |
AMAT,
PFE, XMSR, VLO, JNJ,
WAG, HCA, CMTL, PSYS,
ICUI, SMBI |
|
| Stocks Looking Lower |
CSCO,
LU, XOM, GM, WMT,
JPM, EBAY, HD, YHOO,
MOT, HPQ, RIM, AXP,
CVX, MER, AA, EP,
CHK, KO, SLB, COP,
OXY, DVN, KMG, X |
Yesterday's
Edition of the Prime Stock
Newsletter
| The
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or may be providing
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|
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