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| PRIME
STOCK NEWSLETTER FOR DECEMBER 29th, 2005 |
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 $0.375 above the
purchase price and moved higher as the position
moves higher. |
|
Today’s Comments: The overall
market finished Wednesday slightly higher in
a relatively broad based move that saw the majority
of the sector indices I track move higher. The
strongest sectors on the day were the Gold/Silver,
Oil & Gas, Commodities, Natural Gas, Biotech,
Cyclicals, Insurance, Retailers, Consumer, Interactives,
Chemicals, Internet, Semiconductors, and High
Tech indices. There was weakness in the Airlines,
DIsk Drive Manufactures, and Computer indices.
There was weakness in the bond market as interest
rates moved higher. I am expecting some erratic
trading through the end of the week and the
market should return to normal after the 1st
of the year. The Bottom Line:
The market should move higher.
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|
Recommendation:
Goldcorp,
Inc. 'GG' |
| Company:
Goldcorp, Inc. |
Symbol:
'GG' |
Closing
Price: $21.72 |
Web
http://www.goldcorp.com
|
YH: $12.04
YL: $21.85 |
EPS: $0.65
P/E: 33 |
| Shares
Outstanding: 339 Million |
Forecasted
EPS: $0.80 |
Market Cap.:
$7.36 Billion |
|
| Dividend:
$0.18 |
Yield:
0.90% |
Aver.
Daily Trading Volume: 2.9
Million Shares |
|
|
| Price Targets:
$23.87 and then $25.96 |
Downside Stop:
$18.98 /share |
| Options Rec.:
January $22.50 Calls @ $0.50 |
Options
Symbol: GGAX |
|
Company Description:
Goldcorp,
Inc. engages in the acquisition, exploration,
and operation of precious metal properties
in North and South America, and in Australia.
The company owns one gold deposit, Red
Lake mine, located in Ontario, Canada.
It also has 100% interests in the Luismin
gold/silver mines in Mexico; Peak gold
mine in Australia; and Wharf gold mine
in South Dakota, the United States.
In addition, the company has a 37.5%
interest in the Alumbrera gold/copper
mine in Argentina. Goldcorp is headquartered
in Vancouver, Canada.
|
|
Our
Analysis: The shares Goldcorp, Inc.
'GG' are a component of the Amex Gold/Silver
index 'XAU' which set a new 5 year high
yesterday, it should be no surprise that
the shares of 'GG' did the same on heavier
than normal trading volume. This is a
very bullish trading signal. In the process
they completed a small "cup pattern"
with a measured move to our lower price
target of $23.87/share. The shares of
'GG' have also completed a medium term
"cup pattern" with a measured
move to $25.96/share, our upper price
target. I see downside support on the
shares of 'GG' @ $19.39/share, and have
set our stops accordingly at $18.98/share.
For a more detailed discussion on the
'XAU' please see the December
12th edition of the Sterling
Weekly. |
|
|
|
| INDICES |
Dow
Jones Industrial Average (INDU):
Closed @ 10,796.26 Last Signal:
Called Higher with the close of 10,823.72 on December
13th. Current Expectations:
I am expecting the Dow Jones Industrial Average
to move higher and test 10,940.55 on a closing
basis. |
|
S&P
500 (SPX): Closed
@ 1,258.17 Last Signal: Called higher
with the close of 1,267.43 on December 13th.
Current Expectation: I am expecting the S&P
500 to continue to move higher and test
1,312.54 on a closing basis.
|
|
NASDAQ
100 (NDX): Closed
@ 1,667.10 Last Signal: Called
Higher with the close of 1,705.77 on December
13th. Current Expectations: I am expecting
the NDX to continue to move higher and test 1,720.91
on a closing basis. Note:
We may see some short term weakness
through the end of the year before the up trend
resumes after the 1st. |
|
CBOE
Ten Yr Treasury Index (TNX):
Closed @ 4.378% Last Signal:
Called Lower after the close of trading on December
16th with a close of 4.448% Current Expectations:
This index should move lower and test then 4.176%
on a closing basis. |
|
Stocks
Looking Higher |
MEDX,
DPTR, NEM, MSTR, ARTC, UNM, RHAT, AMD, RDN, SPSS,
GLG, NEU, PSS, CELG, SNDK, JNPR, HD, AIG, AA, IDTI,
GG |
|
Stocks Looking Lower |
MSFT,
INTC, VZ, DELL, JPM, C, BAC, S, AMZN, KO, VRSN,
BSX, A |
|
| Yesterday's
Edition of the Prime Stock Newsletter |
The
Sterling Investment series of newsletters is produced
by Sterling Investment Services, Inc. If
you would like to receive a chart on any index
or stock mentioned in this report please contact
us at the below mentioned numbers. We also
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If you would like to contact us our # is 800-275-6901,
fax # (404)-816-8830 Email address is: enelson@sterlinginvestments.com
Sterling Investment Services may hold positions
in the securities recommended or may be providing
consulting services to the companies mentioned
within this report. |
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1992-2005 Sterling Investment Services, Inc.
P.O. Box 191767, Atlanta, GA. 31119-1767
Fax 404-816-8830
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