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PRIME
STOCK NEWSLETTER FOR AUGUST 22nd, 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 $0.25 above the
purchase price and moved higher as the position
moves higher. |
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Today’s Comments: The overall
market finished Friday mixed with the Dow Jones
Industrial Average and the S&P 500 finishing
slightly higher; while the NASDAQ finished the
day slightly lower. The strongest sectors on
the day were the Oil & Gas, Natural Gas,
Biotech, Commodities, Utilities, Telecom, Gold/Silver,
Cyclicals, Broker/Dealers, Banking, Chemicals,
Semiconductors, Internet, Interactive, Insurance,
and High TEch indices. There was weakness in
the Airlines, Retailers, Healthcare, Pharmaceuticals,
and Computer indices. The Bottom Line:
The overall market continues to look weak and
should move lower.
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Sterling Calendar for
August 22nd, 2005
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Date: |
Comments: |
8/22 |
HJ Heinz 'HNZ' reports earnings
before the open. est. $0.49 |
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Recommendation: SELL/SHORT
DR Horton, Inc. 'DHI' |
Company:
DR. Horton, Inc. |
Symbol:
'DHI' |
Closing
Price: $35.01 |
YH:
$42.82 YL: $20.40 |
EPS: $3.96 P/E: 9 |
Forecasted
EPS: $5.24 |
Shares
Outstanding: 312 Million |
Float: N/A |
Market
Cap.: $11 Billion |
Dividend:
$0.37 |
Yield: 1.05% |
Average
Daily Trading Volume: 2.9 Million |
Price
Targets: $33.13, and then
$31.59
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Upside Stop: $36.08/share |
Options
Rec.: September 35 Puts @ $1.50/contract |
Options
Symbol: DHIUG |
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Company
Description: D.R. Horton, Inc. engages in
the construction and sale of single-family homes
in the United States. As of September 30, 2004,
the company owned approximately 24,000 homes under
construction, including approximately 1,600 model
homes and 200 unsold homes. It markets and sells
its homes through commissioned employees and independent
real estate brokers, located in 21 states and
63 metropolitan markets of mid-Atlantic, midwest,
southeast, southwest, and west regions of the
United States. The company also provides financial
services, including mortgage banking and title
agency services to its customers. D.R. Horton
was founded in 1978 and is based in Fort Worth,
Texas. |
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Our
Analysis: The shares of DR Horton, Inc. 'DHI'
have been in a downward trend since early August.
Friday they closed at a new monthly lower and
below what appears to be a key support level.
The shares of 'DHI' should continue to move lower
and test $33.13/share, the point from which they
gapped higher on the open of trading on May 26th.
If the shares of 'DHI' close below $33.13/share,
then they should continue to move lower and test
$31.59/share, the point from which they gapped
higher on the open of trading on May 18th. I see
upside resistance on the shares of 'DHI' @ $35.78/share,
and have set our stops accordingly at $36.08/share. |
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INDICES |
Dow
Jones Industrial Average (INDU):
Closed @ 10,559.23 Last Signal:
Called Lower on August 5th with the previous day's
close of 10,0610.10
Current Expectations: I am expecting the Dow
Jones Industrial Average to pullback over the
short term and move lower and test 10,432.51 |
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S&P
500 (SPX): Closed @ 1,219.71 Last
Signal: Called Lower on August 5th with the
previous day's close of 1,235.86 Current Expectation:
I am expecting the S&P 500 to to pullback
over the short term and test 1,216.96 |
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NASDAQ
100 (NDX): Closed @ 1,573.72 Last
Signal: Called Lower on August 5th with
the previous day's close of 1,608.74 Current
Expectations: I am expecting the NDX to pullback
over the short term and test 1,568.96 |
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CBOE
Ten Yr Treasury Index (TNX): Closed @
4.211% Last Signal: Called Lower
on August 15th with the previous day's close of
4.238% Current Expectations:
The TNX should move lower and test 4.196% and
then 4.177% on a closing basis. |
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Stocks
Looking Higher |
CHKR,
HUM, USG, BCO, CCI, HHGP, ODP, KAMMA, GYI, MWY,
HNT, MHP, FORR, PCP, CNXS, AGN, RIMM, COST |
|
Stocks Looking Lower |
MRK,
INTC, MSFT, PFE, ORCL, DELL, TWX, WMT, AAPL, TXN,
MOT, EBAY, CMCSA, HD, STJ, SGP, GOOG, BBY, RX,
SNDK, MWD, NVDA, JCP, FSL |
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Yesterday's
Edition of the Prime Stock Newsletter |
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within this report. |
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