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PRIME
STOCK NEWSLETTER FOR June 1st, 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 moved moderately higher Friday in a broad based move that saw the majority of the sector indices I track move higher on the day. The strongest sectors were the Transports, Chemicals, banking, Cyclicals, Airlines, Oil & Gas, healthcare Providers, Commodities, Insurance, Retailers, Broker/Dealer, and High Tech indices. There was weakness in the Disk Drive Manufacturers. There was strength again in the bond market as interest rates moved lower. .
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Sterling
Calendars for June 1st, 2009 |
Date: |
Comments: |
06/01 |
Apollo Investment Corp. 'AINV' announces earnings after the close. Est. $0.35 |
06/01 |
Lions Gate Entertainment 'LGF' announces earnings after the close. Est. ($0.11) |
06/02 |
HH Gregg Appliances 'HGG' announces earnings before the open. Est. $0.41 |
06/03 |
Toll Brothers 'TOL' announces earnings. Time N/A. Est. ($0.33) |
06/04 |
KMG Chemicals 'KMGB' announces earnings before the open. Est. $0.20 |
06/04 |
Vail Resorts 'MTN' announces earnings before the open. Est. $1.55 |
06/04 |
Wind River Systems 'WIND' announces earnings after the close. Est. $0.05 |
06/05 |
Exide 'XIDE' announces earnings. Time N/A. Est. ($0.22) |
The
full earnings calendar for this
week can be found (here) |
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Recommendation: BUY
Massey Energy Company 'MEE' |
Company: Massey Energy Company |
Symbol: 'MEE' |
Closing
Price: $22.89 |
Web: www.masseyenergyco.com |
YH: $95.70 YL: $9.62 |
EPS: $4.25 P/E: 36 |
Shares
Outstanding: 85.5 Million |
Forecasted
EPS:.$1.40 |
Market Cap.: $2.1 Billion |
Dividend: $0.24 |
Yield: 1.00% |
Aver.
Daily Trading Volume: 7.4 Million Shares |
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Price Targets: $25.20, and then $33.87 |
Downside Stop: $22.07/share |
Options Rec.: June $22.50 Calls @ $1.90/contract |
Options
Symbol: MEE FX |
Additional
information on Massey Energy Corp. 'MEE' can be found (here)
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Company Description: Massey Energy Company, through its subsidiaries, produces, processes, and sells bituminous coal primarily in the United States. The companys customers include electric utilities, steel manufacturers, industrial customers, and energy traders and brokers. As of January 31, 2009, it owned and operated approximately 160 wells, 200 miles of gathering line, and a range of small compression facilities in Appalachian Basin. The company also operated 66 mines, including 46 underground and 20 surface in West Virginia, Kentucky, and Virginia. Massey Energy Company distributes its products through freight and terminal agreements with various providers, including railroads, barge lines, ocean-going vessels, bulk motor carriers, and terminal facilities. The company was founded in 1912 and is headquartered in Richmond, Virginia..
Chart updates daily |
A
full list of the news headlines
for Massey Energy Company 'MEE'' can
be found (here) |
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Our Analysis: The shares of Massey Energy Company 'MEE' gapped higher on the open of trading on Friday and finished the day by closing above a recently established upside resistance level on heavier than normal trading volume. This is a bullish trading signal. The shares of 'MEE' should continue to move higher and test $25.20/share, the point from which they gapped lower on the open of trading on October 22nd, of last year. If the shares of 'MEE' close above that level , then they should continue to move higher and test $33.87/share, the point from which they gapped lower on the open of trading on October 2nd of last year. I see downside support on the shares of 'MEE' at $22.52/share, and have set my stops accordingly at $22.07/share.
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Stocks
Looking Higher |
IMGN, STAR, ARQL, IAG, ARRS, PALM, PAS, EGO, WGW, MSFT, MRK, GNW, YHOO, KO, PBR, WYE, AAPL, X, SU, LNC, NE, ATM, EP, SLB, NYW, IBM, OXY, XCO, HES |
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Stocks Looking Lower |
BBY, PH |
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Yesterday's
Edition of the Prime Stock Newsletter |
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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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