|
| PRIME
STOCK NEWSLETTER FOR July 29th, 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. |
|
Today's Comments: The overall market finished Tuesday mixed with the Dow Jones Industrial Average and the S&P 500 finishing lower on the day, and the NASDAQ 100 finishing slightly higher on the day. The strongest sectors were the Airlines, Disk Drive Manufacturers, Biotech, Retailers, Banking, High Tech, Healthcare Providers, and Telecom indices. There was weakness in the Commodities, Natural Gas, Insurance, Broker/Dealer, Oil & Gas, Networking, Chemicals, Transports, and Cyclicals. Bonds were mixed on the day. Oil was down $0.44 to $66.79, and Gold finished the day up $0.60 to $939.70 an ounce.
|
| Sterling
Calendars for July 29th, 2009 |
| Date: |
Comments: |
| 07/28 |
US Steel Corp. 'X' reports earnings. Time N/A. Est. ($3.45) |
| 07/29 |
FBR Capital Markets 'FBCM' announces earnings before the open. Est. ($0.17) |
| 07/29 |
Hartford Financial Services 'HIG' announces earnings after the close. Est. $1.16 |
| 07/29 |
O'Reilly Automotive 'ORLY' announces earnings at 6:30pm. Est. $0.55 |
| 07/30 |
Automatic Data Processing 'ADP' announces earnings before the open. Est. $0.45 |
| 07/30 |
Barrick Gold 'ABX' reports earnings before the open. Est. $0.38 |
| 07/30 |
Colgate-Palmolive 'CL' reports earnings. Time N/A. Est. $1.05 |
| 07/30 |
ExxonMobile 'XOM' reports earnings before the open. Est. $1.03 |
| 07/30 |
Genworth Financial 'GNW' reports earnings. Time N/A. Est $0.15 |
| 07/30 |
Goodyear Tire 'GT' reports earnings before the open. Est. ($0.64) |
| 07/30 |
Walt Disney Co. 'DIS' reports earnings at 4:01pm ET. Est. $0.50 |
| 07/31 |
AutoNation 'AN' reports earnings. Time N/A. Est. $0.24 |
| 07/31 |
Chevron 'CVX' reports earnings. Time N/A. Est. $0.95 |
| 07/31 |
Sempra Energy 'SRE' reports earnings at 9:00am ET. Est. $0.97 |
The
full earnings calendar for this
week can be found (here) |
|
|
Recommendation: BUY
Discovery Communications, Inc. 'DISCA' |
| Company: Discovery Communications |
Symbol: 'DISCA' |
Closing
Price: $24.40 |
Web: www.corporate.discovery.com |
YH: $24.45 YL: $10.02 |
EPS: $1.12 P/E: 16 |
Shares
Outstanding: 281 Million |
Forecasted
EPS:.$1.28 |
Market Cap.: $6.8 Billion |
| Dividend: N/A |
Yield: N/A |
Aver.
Daily Trading Volume: 1.7 Million Shares |
|
| Price Targets: $26.50, and then $27.01 |
Downside Stop: $23.11/share |
| Options Rec.: August 25 Calls @ $0.70/contract |
Options
Symbol: UIQ HE |
Additional
information on Discovery Communications, Inc. 'DISCA'' can be found (here)
|
|
Company Description: Discovery Communications, Inc., through its subsidiaries, operates as a media and entertainment company worldwide. It provides original and purchased programming across various distribution platforms with approximately 100 television networks in 35 languages. The company operates cable and satellite television networks in the United States, including Discovery Channel, TLC, Animal Planet, Discovery Health, Discovery Kids, Science Channel, Planet Green, Investigation Discovery, Military Channel, FitTV, and HD Theater. It also distributes a network of 21 international television brands, including Discovery Channel; Discovery Channel; Discovery Science; Investigation Discovery; Discovery Turbo; Discovery World; HD Networks, Discovery Lifestyle Networks, such as Discovery Travel & Living, Discovery Home & Health, and Discovery Real Time; DMAX; Discovery Kids; People+Arts, Discovery en Español, and Discovery Familia. In addition, the company provides education services, including Discovery Education Streaming, an online video-on-demand teaching service; and Discovery Education Assessment, a service that enables K-12 educators to measure student progress. Additionally, it offers sound, music, mixing sound effects, and other related services to motion picture studios, independent producers, broadcast networks, cable channels, advertising agencies, and interactive producers; and operates an e-commerce site, DiscoveryStore.com. Discovery Communications has a joint venture agreement with Hasbro Inc. The company is headquartered in Silver Spring, Maryland..
Chart updates daily |
A
full list of the news headlines
for Discovery Communications, Inc. 'DISCA'' can
be found (here) |
|
Our Analysis: The shares of Discovery Communications, Inc. 'DISCA' set a new yearly closing high on heavier than normal trading volume. In the process they completed a cup pattern with a measured move to our upper price target of $27.01/share. Prior to reaching this upper price target the share of 'DISCA' should obviously continue to move higher and test $26.50/share, a point of upside resistance that was established on May 15th of last year. I see downside support on the shares of 'DISCA' @ $23.55/share and have set my stops accordingly at $23.11/share.
|
|
|
Stocks
Looking Higher |
IRM, SMG, WFMI, CREE, CAAS, MHS, ACF, MFE, GE, DELL, TXT, AET, MOT, AMGN, NWSA, CAT, MO, MRVL
|
|
Stocks Looking Lower |
INTC, ODP, HAL, VLO, AXP, FCX, QCOM, SLB, BJS
|
|
| 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 |
|
