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| PRIME
STOCK NEWSLETTER FOR September 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 finished Monday 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 Airlines, Natural Gas, Commodities, Disk Drive Manufacturers, Retailers, Oil & Gas, Cyclicals, High Tech, Transports, Telecoms, and Chemicals. There was strength in the Broker/Dealers, and Biotech indices. The Banking and Healthcare related indices were mixed. Bonds saw strength as interest rates moved lower. Oil was down sharply finishing the day down $3.17 to $69.57, and Gold was down $5.30 to finish the day at $952.20/ounce.
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| Sterling
Calendars for the Week of September 1st, 2009 |
| Date |
Est.
Time |
Release |
For |
Consensus |
Prior |
| 09/01 |
10:0am |
Construction Spending |
July |
(0.2%) |
(0.3%) |
| 09/01 |
10:00am |
ISM Index |
Aug. |
50.2 |
48.9 |
| 09/01 |
2:00pm |
Auto Sales |
Aug. |
N/A |
4.2M |
| 09/01 |
2:00pm |
Truck Sales |
Aug. |
N/A |
4.2M |
| 09/02 |
8:15am |
ADP Employment Change |
|
(246k) |
(371k) |
| 09/02 |
8:30am |
Productivity-Revised |
Q2 |
6.1% |
6.4% |
| 09/02 |
10:00am |
Factory Orders |
July |
1.5% |
0.4% |
| 09/02 |
10:30am |
Crude Inventories |
|
|
+128k |
| 09/02 |
2:00pm |
FOMC Minutes |
08/12 |
|
|
| 09/03 |
8:30am |
Initial Claims |
08/29 |
570K |
570K |
| 09/03 |
10:00am |
ISM Services |
Aug. |
48.0 |
46.4 |
| 09/04 |
8:30am |
Average Workweek |
Aug. |
33.1 |
33.1 |
| 09/04 |
8:30am |
Hourly Earnings |
Aug. |
0.1% |
0.2% |
| 09/04 |
8:30am |
NonFarm Payrolls |
Aug. |
(225k) |
(247k) |
| 09/04 |
8:30am |
Unemployment Rate |
Aug. |
9.5% |
9.4% |
|
|
Recommendation: SELL/SHORT
Petroleo Brasileiro 'PBR' |
| Company: Petroleo Brasileiro |
Symbol: 'PBR' |
Closing
Price: $39.64 |
Web: www.petrobras.com.br |
YH: $46.10 YL: $14.73 |
EPS: N/A P/E: N/A |
Shares
Outstanding: 174 Million |
Forecasted
EPS:.N/A |
Market Cap.: $6.9 Billion |
| Dividend: $0.07 |
Yield: 0.20% |
Aver.
Daily Trading Volume: 26 Million Shares |
|
| Price Targets: $35.44, and then $32.43 |
Upside Stop: $41.29/share |
| Options Rec.: September 40 Puts @ $1.85/contract |
Options
Symbol: PBR UN |
Additional
information on Petroleo Brasileiro 'PBR' can be found (here)
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Company Description: Petroleo Brasileiro S.A.—Petrobras, together with its subsidiaries, engages in the exploration, exploitation, and production of oil and gas, and energy in Brazil and internationally. The company operates in four segments: Exploration and Production, Supply, Gas and Energy, and Distribution. The Exploration and Production segment engages in the exploration, development, and production of oil, liquefied natural gas, and natural gas in Brazil; and sells petroleum and bye products produced in natural gas processing plants. The Supply segment involves in the refining, logistic, transportation, and sale of oil products, petroleum, and alcohol. It also holds interests in petrochemical companies and fertilizer plants. The Gas and Energy segment involves in the purchase, sale, and transportation of natural gas produced in or imported into Brazil. This segment also generates and distributes electric power; and holds interests in national gas transporters and distributors, and thermoelectric power stations. The Distribution segment distributes oil products, fuel alcohol, and compressed natural gas in Brazil. The company also engages in the exploration, production, supply, and distribution of oil and gas in the Americas, Africa, Europe, and Asia. Petroleo Brasileiro was founded in 1953 and is headquartered in Rio de Janeiro, Brazil.
Chart updates daily |
A
full list of the news headlines
for Petroleo Brasileiro 'PBR' can
be found (here) |
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Our Analysis: The shares of Petroleo Brasileiro 'PBR' gapped lower on the open of trading yesterday. They finished the day by closing below a recently established support level on significantly heavier than normal trading volume. This is a bearish trading signal. The shares of 'PBR' should continue to move lower and test $35.44/share, a point of support established on July 8th of this year. If the shares of 'PBR' close below that level, as I think there is a good chance they will, then they should continue to move lower and test $32.43/share, the point from which they gapped higher on the open of trading on April 29th of this year. I see upside resistance on the shares of 'PBR' @ $40.87/share, and have set my stops accordingly @ $41.29/share..
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|
Stocks
Looking Higher |
ATHN, AB, CAG, DWA, RVSN, ISH, TWC, GNW, PG, BSX, CVS, TRV, V |
|
Stocks Looking Lower |
ACN, GE, CSCO, DIS, BRCD, PBR, XOM, Q, AA, GLW, WMT, HAL, PBR, CAT, RFMD, XTO, LUV, WU, ADBE, SU, STP, POT, JCP, AMSN, SWN, INTU, MEE, DISH, AMT, KWK, WYNN, CCJ |
|
| Yesterday's
Edition of the Prime Stock Newsletter |
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Sterling Investment Services may hold positions
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consulting services to the companies mentioned
within this report. |
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