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PRIME
STOCK NEWSLETTER FOR October 21st, 2008 |
(If you do not see today's edition, please hit the refresh button) |
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. |
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Today's Comments:
The overall market moved sharply higher yesterday in a broad based move that saw every sector index I track move higher. It looks like the market is poised for at least a short term rally, as I am expecting the Dow Jones Industrial Average to continue to move higher and test 10,325.38 However I think any rally beyond that level may prove to be difficult. The Bottom Line: The overall market should move higher.
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Sterling
Calendar for October 21st, 2008 |
Date: |
Misc. Calendar: |
10/21 |
3M Company 'MMM' announces earnings. Time N/A. Est. $1.39 |
10/21 |
Apple, Inc. 'AAPL' announces earnings after the close. Est. $1.11 |
10/21 |
BlackRock 'BLK' announces earnings before the open. Est. $2.06 |
10/21 |
Caterpillar 'CAT' announces earnings before the open. Est. $1.42 |
10/21 |
DuPont 'DD' announces earnings before the open. Est. $0.51 |
10/21 |
E*Trade 'ETFC' announces earnings after the close. Est. ($0.26) |
10/21 |
Freeport McMoran 'FCX' announces earnings before the open. Est. $1.52 |
10/21 |
National City 'NCC' announces earnings before the open. Est. $0.31 |
10/21 |
US Bancorp. 'USB' announces earnings before the open. Est. $0.47 |
10/21 |
UAL Corp. 'UAUA' announces earnings before the open. Est. ($2.48) |
10/22 |
Amazon 'AMZN' announces earnings. Time N/A. Est. $0.26 |
10/22 |
Amgen 'AMGN' announces earnings after the close. Est. $1.26 |
10/22 |
McDonalds 'MCD' announces earnings before the open. Est. $0.97 |
10/22 |
Boeing 'BA' announces earnings before the open. Est. $0.99 |
10/22 |
Wachovia 'WB' announces earnings before the open. No est. |
The
full earnings calendar for this week can
be found (here) |
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Recommendation: Sell/Short
Research In Motion 'RIMM' |
Company:
Research In Motion |
Symbol: 'RIMM |
Closing
Price: $53.91 |
Web: www.rim.net |
YH: $148.13
YL: $50.22 |
EPS: $3.07 P/E: 17.6 |
Shares
Outstanding: 565 Million |
Forecasted
EPS:.$4.76 |
Market Cap.:
$30.5 Billion |
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Dividend:
N/A |
Yield: N/A |
Aver.
Daily Trading Volume: 25 Million Shares |
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Price Targets:
$51.61, $49.44 and then $48.92 |
Upside Stop:
$55.43/share |
Options Rec.:
November 50 Puts @ $3.55/contract |
Options
Symbol: RFYWJ |
Additional
information on Research In Motion "RIMM'' can be found (here) |
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Company Description: Research In Motion Limited engages in the design, manufacture, and marketing of wireless solutions for the mobile communications market worldwide. It provides platforms and solutions for access to time-sensitive information, including email, phone, short messaging service, Internet, and intranet-based applications. The company�s technology enables an array of third party developers and manufacturers to enhance their products and services with wireless connectivity to data. Its portfolio of products includes the BlackBerry wireless platform, the RIM Wireless Handhelds product line, software development tools, and other hardware and software solutions. The company�s BlackBerry wireless solution comprises wireless devices, software, and services. It also enables the use of personal information management functions, such as calendar, address book, task list, and other functions associated with personal organizers. In addition, Research In Motion offers BlackBerry Mobile Data System that allows users to access data from enterprise applications and the Internet; BlackBerry Internet Service, which allows the integration of up to 10 supported email accounts on the same BlackBerry smartphone; and BlackBerry Enterprise Solution and BlackBerry Internet Service that allow Internet browsing and full phone functionality on the user�s smartphone, as well as offers a range of multimedia capabilities. Further, it licenses BES software, as well as offers client access licenses, technical support, and upgrades. The company distributes its products through wireless communications carriers or carrier partners. Research In Motion was founded in 1984 and is headquartered in Waterloo, Canada.
Chart updates daily |
A
full list of the news headlines
for Research In Motion "RIMM" can
be found (here) |
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Our Analysis: The shares of Research In Motion "RIMM" set a new yearly closing low on heavier than normal trading volume yesterday. This is a very bearish trading signal. The shares of "RIMM" should continue to move lower and test $51.61/share, a former point of upside resistance established in early May of last year that is now downside support. If the shares of 'RIMM' close below that level then they should continue to move lower and test $49.44/share, another point of former upside resistance that is now downside support. I think there is a reasonable chance we will see the shares of 'RIMM' close below that level and test our lower target of $48.92/share. I see upside resistance on the shares of "RIMM" at $55.05/share, and have set my stops accordingly at $55.43/share. |
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Stocks
Looking Higher |
EBS, LPHI, UFI, GE, PFE, TWX, CHK, MOT, BTU, UAUA, SU, AKS, HK
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Stocks Looking Lower |
SNDK, SSCC |
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Yesterday's
Edition of the Prime Stock Newsletter |
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by Sterling Investment Services, Inc. If
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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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