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| PRIME
STOCK NEWSLETTER FOR January 28th, 2009 |
(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 finished Tuesday slightly higher on a day that saw the majority of the sector indices I track higher. The strongest sectors on the day were the Banking, Insurance, Broker/Dealer, Healthcare Providers, Networking, Cyclicals, Internet, Biotech, and High Tech indices. There was weakness in the Airlines, Retailers, Telecom, and Chemical indices. The Bottom Line: The market should go lower.
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Sterling Calendar for January 28th, 2009 |
| Date |
Est.
Time |
Release |
For |
Consensus |
Prior |
| 01/28 |
10:30am |
Crude Inventories |
01/23 |
|
6.1m |
| 01/28 |
2:15om |
FOMC Rate Decision |
|
|
0-0.25% |
| Date: |
Comments: |
| 01/27 |
Bristol Meyers 'BMY' announces earnings. Time N/A. Est. $0.41 |
| 01/27 |
E*Trade 'ETFC' announces earnings after the close. Est. ($0.23) |
| 01/27 |
FPL Group 'FPL' announces earnings. Time N/A. Est. $0.89 |
| 01/27 |
Yahoo 'YHOO' announces earnings after the close. Est. $0.13 |
| 01/28 |
Airtran 'AAI' announces earnings. Time N/A. Est. ($0.03) |
| 01/28 |
AT&T 'T' announces earnings. Time N/A. Est. $0.65 |
| 01/28 |
ConocoPhillips 'COP' announces earnings before the open. Est $1.42 |
| 01/28 |
Legg Mason 'LM' announces earnings before the open. Est. ($3.79) |
| 01/28 |
Wells Fargo 'WFC' announces earnings before the open. Est. $0.33 |
The
full earnings calendar for this
week can be found (here) |
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Recommendation: BUY
Aetna, Inc. 'AET' |
| Company: Aetna, Inc. |
Symbol: 'AET' |
Closing
Price: $31.48 |
Web: www.aetna.com
|
YH: $54.72
YL: $14.21 |
EPS: $3.27 P/E: 9.6 |
Shares
Outstanding: 461 Million |
Forecasted
EPS:.$3.92 |
Market Cap.:
$14.5 Billion |
| Dividend: $0.04 |
Yield: 0.10% |
Aver.
Daily Trading Volume: 5.6 Million Shares |
|
| Price Targets: $35.11, and then $44.11 |
Downside Stop: $29.97/share |
| Options Rec.: February 30 Calls @ $2.80/contract |
Options
Symbol: AETBF |
Additional
information on Aetna, Inc. 'AET' can be found (here) |
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Company Description: Aetna, Inc. operates as a diversified health care benefits company primarily in the United States and Canada. The company provides health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life, and disability plans, as well as medical management capabilities and health care management services for Medicaid plans. It operates in three segments: Health Care, Group Insurance, and Large Case Pensions. The Health Care segment provides medical, pharmacy benefits management, dental, and vision plans offered on both an insured basis and an employer-funded basis. Its medical products include point of service, preferred provider organization, health maintenance organization, and indemnity benefit plans, as well as health savings accounts and Aetna HealthFund. This segment also provides specialty products, such as medical management and data analytics services, behavioral health plans, and stop loss insurance, as well as products that provide access to its provider networks. The Group Insurance segment offers life, disability, and long-term care insurance products principally to employers that sponsor its products for the benefit of their employees and their employees’ dependents. The Large Case Pension segment manages various retirement products, including pension and annuity products primarily for tax qualified pension plans. Aetna primarily serves employer groups, individuals, college students, part-time and hourly workers, health plans, governmental units, government-sponsored plans, labor groups, and expatriates. The company was founded in 1982 and is based in Hartford, Connecticut. Aetna Inc. (NYSE:AET) operates independently of Lion Connecticut Holdings Inc. as of December 13, 2000.
Chart updates daily |
A
full list of the news headlines
for Aetna, Inc. "AET" can
be found (here) |
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Our Analysis: The shares of Aetna, Inc. 'AET' closed yesterday above a key upside support level on heavier than normal trading volume. This is a bullish trading signal. the shares of 'AET' should continue to move higher and test $35.11/share, the point from which they gapped lower on the open of trading on October 15th, 2008. If the shares of 'AET' close above that level, as I expect there is a reasonable chance they will, then the shares of 'AET' should continue to move higher and test $44.11/share, a point of upside resistance established on August 8th of last year. I see downside support on the shares of 'AET' @ $30.36/share, and have set my stops accordingly at $29.97/share..
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Stocks
Looking Higher |
CSCO, INTC, RIMM, MS, UNH, MOT, IBM, LLTC, ADI, PWR, MHS, HUM |
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Stocks Looking Lower |
DAL, CAT, AMZN, MAS, ANF, KBH, SNY |
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| Yesterday's
Edition of the Prime Stock Newsletter |
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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
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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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P.O. Box 191767, Atlanta, GA. 31119-1767
Fax 404-816-8830
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