|
| PRIME
STOCK NEWSLETTER FOR October 22nd, 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. |
|
Today's Comments:
The overall market moved moderately lower in a broad based move that saw the majority of the sector indices I track move lower on the day. The weakest sectors were the Networking, Chemicals, Interactives, Internet, Commodities, Oil & Gas, Computers, Disk Drive Manufacturers indices. Our technical indicators are still pointing for a rally up to the 10,325.38 level, however if the market is down sharply over the next day or so we may see a trend reversal back downward. The Bottom Line: The overall market should move higher.
|
|
| Sterling
Calendar for October 22nd, 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) |
|
|
Recommendation: Sell/Short
Potash Corp. Saskatchewan 'POT' |
| Company: Potash Corp. Saskachewan |
Symbol: 'POT' |
Closing
Price: $73.36 |
| Web: www.potashcorp.com |
YH: $241.62
YL: $66.81 |
EPS: $6.45 P/E: 11.4 |
Shares
Outstanding: 305 Million |
Forecasted
EPS:.$20.85 |
Market Cap.:
$22 Billion |
|
| Dividend:
$0.40 |
Yield: 0.5% |
Aver.
Daily Trading Volume: 16 Million Shares |
|
|
| Price Targets:
$71.35, and then $64.98 |
Upside Stop:
$74.83/share |
| Options Rec.:
June 2009 $70Puts @ $17.00/contract |
Options
Symbol: PVZRN |
Additional
information on Potash Corp. of Saskatchewan "POT'' can be found (here) |
|
Company Description: Potash Corporation of Saskatchewan, Inc. (PotashCorp) engages in the production and sale of fertilizers, and related industrial and feed products in North America. The company manufactures and sells solid and liquid phosphate fertilizers; animal feed supplements; and industrial acid, which is used in food products and industrial processes. It also produces nitrogen fertilizers, as well as nitrogen feed and industrial products, including ammonia, urea, nitrogen solutions, ammonium nitrate, and nitric acid. PotashCorp's primary customers for fertilizer products include retailers, dealers, cooperatives, distributors, and other fertilizer producers. It sells purified phosphoric acid directly to consumers of the product. The company was founded in 1953 and is based in Saskatoon, Canada.
 Chart updates daily
|
A
full list of the news headlines
for Potash Corp. of Saskatchewan "POT" can
be found (here) |
|
Our Analysis: The shares of Potash Corp. of Saskatchewan 'POT' closed below a recently established support level on heavier than normal trading volume. In the process the shares of 'POT' set a new yearly closing low. This is a negative trading signal. The shares of 'POT' should continue to move lower and test $71.35/share, a point of downside support established in early June of last year. If the shares of 'POT' close below that level, then I expect them to continue to move lower and test $64.98/share the point from which they gapped higher on the open of trading on May 25th, 2007. I see upside resistance on the shares of 'POT' at $74.43/share, and have set my stops accordingly @ $74.805/share. |
|
|
Stocks
Looking Higher |
GE, AXP, DAL, UAUA, DNA, GIS, AEO
|
|
Stocks Looking Lower |
INTC, RIIMM, TXN, QCOM, HPQ, JAVA, DELL, WU, BRCM, GLW, CAT, MRVL, EBAY, DOW, LSI, TXT, PCAP, VIP, TEX, GD |
|
| 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
offer custom research reports on any stock investment
that you may desire information on. To receive
further information on these services please visit
our web page at: www.sterlinginvestments.com
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. |
Copyright
1992-2008 Sterling Investment Services, Inc.
P.O. Box 191767, Atlanta, GA. 31119-1767
Fax 404-816-8830
404-816-8240 |
|
|
| Providing
Investment Banking Consulting Services to Public
Companies |
|
