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| PRIME
STOCK NEWSLETTER FOR June 22nd, 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 Friday mixed with the Dow Jones Industrial Average finishing slightly lower, and the S&P500 and the NASDAQ 100 finishing the day slightly higher. The vast majority of the sector indices I track finished the day to the upside. The strongest sectors on the day were the Banking, Insurance, High Tech, Retailers, Airlines, Broker/Dealer, Cyclicals, Biotech, Healthcare, Chemicals, and Consumer indices. There was weakness in the Natural Gas, Telecom, Commodities, Oil & Gas, and Transport indices. There was strength in the bond market as interest rates moved slightly lower.
A couple of things I noticed from my review of the charts from Friday's trading activity; the 1st that due to futures and options expiration on Friday, the volume was extremely heavy, and typically as a result of this it is not uncommon to see the unwinding of positions create a short term reversal of the trend prior to options expiration Friday, and then have that trend resume a day or two later. The 2nd thing I noticed with the major market indices is that we have the 200 day moving average and the 40 day moving average converging on the current price and level. That indicates a large amount of consolidation at the current price level.
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| Sterling
Calendars for June 22nd, 2009 |
| Date |
Est.
Time |
Release |
For |
Consensus |
Prior |
| 06/23 |
10:00am |
Existing Home Sales |
May |
4.83M |
4.68M |
| 06/24 |
8:30am |
Durable Orders |
May |
(0.9%) |
1.9% |
| 06/24 |
8:30am |
Durable Orders Ex - Trans. |
May |
(0.5%) |
0.8% |
| 06/24 |
10:00am |
New Home Sales |
May |
360k |
352k |
| 06/24 |
10:30am |
Crude Inventories |
06/19 |
|
(3.87M) |
| 06/24 |
2:15pm |
FOMC Minutes |
|
|
|
| 06/25 |
8:30am |
Initial Claims |
06/20 |
608K |
|
| 06/25 |
8:30am |
Q1 GDP Final |
Q1 |
(5.7%) |
(5.7%) |
| 06/26 |
8:30am |
Personal Income |
May |
0.2% |
0.5% |
| 06/26 |
8:30am |
Personal Spending |
May |
0.4% |
(0.1%) |
| 06/26 |
8:30am |
PCE Core |
May |
0.2% |
0.3% |
| 06/26 |
9:55am |
Mich Sentiment-Rev. |
Jun |
69.0 |
69.0 |
| Date: |
Comments: |
| 06/22 |
Walgreen 'WAG' announces earnings at 8:00am ET. Estimate $0.56 |
| 06/23 |
Jabil Circuit 'JBL' announces earnings @ 4:00pm ET. Est. $0.22 |
| 06/23 |
Oracle 'ORCL' announces earnings after the market closes. Est. $0.44 |
| 06/23 |
Kroger Co. 'KR' announces earnings. Time N.A. Est. $0.61 |
| 06/24 |
American Greeting Corp. 'AM' announces earnings before the open. Est. $0.20 |
| 06/24 |
Bed Bath & Beyond 'BBY' announces earnings. TIme N/A. Est $0.24 |
| 06/24 |
Monsanto Co. 'MON' announces earnings. TIme N/A. Est. $1.18 |
| 06/24 |
Nike 'NKE' announces earnings at 4:15pm ET. Est. $0.96 |
| 06/24 |
Red Hat 'RHT' announces earnings after the close. Est. $0.14 |
| 06/25 |
Conagra 'CAG' announces earnings at 7:30am ET. Est. $0.42 |
| 06/26 |
Micron Tech. 'MU' announces earnings. Time N/A. Est. ($0.43) |
| 06/26 |
Palm, Inc. 'PALM' announces earnings after the close. Est. ($0.64) |
| 06/26 |
Gerber Scientific 'GB' announces earnings before the open. Est. $0.01 |
| 06/26 |
KB Home 'KBH' announce earnings before the open. Est. ($0.64) |
The
full earnings calendar for this
week can be found (here) |
|
|
Recommendation: SELL/SHORT
XTO Energy, Inc, 'XTO' |
| Company: XTO Energy, Inc. |
Symbol: 'XTO' |
Closing
Price: $39.54 |
Web: www.xtoenergy.com |
YH: $73.40 YL: $41.17 |
EPS: $3.47 P/E: 11.4 |
Shares
Outstanding: 579 Million |
Forecasted
EPS:.$3.39 |
Market Cap.: $22.9 Billion |
| Dividend: $0.50 |
Yield: 1.30% |
Aver.
Daily Trading Volume: 8.1 Million Shares |
|
| Price Targets: $37.01, and then $32.55 |
Upside Stop: $40.91/share |
| Options Rec.: July 40 Puts @ $2.25/contract |
Options
Symbol: XJV SH |
Additional
information on XTO Energy, Inc. 'XTO'' can be found (here)
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Company Description: XTO Energy Inc., together with its subsidiaries, engages in the acquisition, development, exploitation, and exploration of producing oil and gas properties in the United States. It also engages in the production, processing, marketing, and transportation of oil and natural gas. The company’s properties are concentrated in Texas, Arkansas, Montana, Louisiana, Oklahoma, New Mexico, Utah, Kansas, West Virginia, Colorado, Wyoming, Pennsylvania, and North Dakota. As of December 31, 2008, it had estimated proved reserves of 11.80 trillion cubic feet of natural gas, 76 million barrels of natural gas liquids, and 268 million barrels of oil; and owned interests in 18,235.7 net producing wells. XTO Energy markets its gas to brokers, local distribution companies, and end-users. The company was formerly known as Cross Timbers Oil Company and changed its name to XTO Energy Inc. in June 2001. XTO Energy was founded in 1986 and is headquartered in Fort Worth, Texas..
Chart updates daily |
A
full list of the news headlines
for XTO Energy, Inc. 'XTO' can
be found (here) |
|
Our Analysis: The shares of XTO Energy, Inc. 'XTO' finished Friday by closing below a trio of support levels. In addition, I have the NYSE/ARCA Natural Gas Index 'XNG' rated as moving lower from its current levels. This is a bearish trading signal. The shares of 'XTO' should continue to move lower and test $39.91/share, the point from which they gapped higher on the open of trading on May 6th of this year. If the shares of 'XTO' close below that level, then they should continue to move lower and test $32.55/share, the point from which they gapped higher on the open of trading on April 24th of this year. I see upside resistance on the shares of 'XTO' @ $40.51/share, and I have set my stops accordingly at $40.91/share
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|
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Stocks
Looking Higher |
PAR, SAFM, EEFT, APKT, NDN, NVEC, EW, CRAY, BRLI, HWKN, ATRI, MSFT, DELL, PALM, GNW, HPQ, AAPL, TXN, WYE, RMD, CVS, STX, CI, MCK |
|
Stocks Looking Lower |
GE, CSCO, RIMM, XOM, CHK, MOT, ODP, VLO, HAL, CAT, IP, OMX, XTO, DVN, WU, BJS, TXT, EOG, HK, APA, ITW, SP, DE, RCII, MNRO. |
|
| Yesterday's
Edition of the Prime Stock Newsletter |
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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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