I’m going to keep it short and sweet for today. I definitely don’t agree with how stocks have been trading. The weakness is sickening and at times it seems like there is no hope. Yes the direction of stocks is uncertain. Money is definitely not being made. It seems that people are very nervous about the economy. Housing sales this week weren’t very reassuring, but a small glimmer of hope came when jobless claims fell more than expected. I was somewhat excited when I saw the market open to the upside this morning. Once again that positive was put to rest as the sellers came in and sold off the gains they had incurred from yesterday.
You see investing at this current moment is heavily tied to the psychological aspect of trading. Panic has set in and no one wants to invest. You can see the data as many flee to the bond market investing billions over the past few months. Gold is near an all time high and statistically is higher when investors are nervous. Investors flee to the safety of gold. To me it’s just another piece of metal. Gold is an overvalued commodity that has run up over the past few years. It’s really funny to me that people put their confidence in a piece of metal. What are you going to do with gold? Keep it in your pocket and show it off to your friends! It's ridiculous when you think about it. We don't barter for gold anymore. Those days are long gone. This isn't the Robin Hood era!
Instead of investing in gold we should be investing in ourselves. Invest money in jobs and creating value from all the intelligent people we have in the work force. The United States has great potential, but the perception of this country is bleak. Think about the fact the United States has overcome all obstacles in its path when is has come to the economy. The only way this stock market will go higher is with confidence. Without confidence Wall Street is useless. The creation of jobs will bring money back into the economy. How can you spend money to fuel the economy when you don’t have any? It’s that simple! The government needs to step up to the plate and brainstorm to create value for our workforce. People are desperate to go back to work. I’ve been unemployed and it’s a terrible feeling. My confidence was way down, but I decided to carry on and stay optimistic. I’m here to tell you that the psychological factor of this market is beating us down. It needs to change!
That being said Fed Chairman Ben Bernanke will be talking tomorrow about the future of the economy. This guy is no dummy. I believe he has what it takes to regain the confidence of the market. Traders will be waiting patiently to hear what he has to say. We need direction and Ben will give that direction with his take on the economy. Beware that the market could still drop over the next couple weeks, but a lot of the pain has already been felt. Many stocks are in oversold status. As Jim Cramer would say “Nobody every made any money panicking” Panic means someone has an opportunity to make money. It may be slow to develop, but overtime buying when everyone is selling is the best time to buy! Stay Positive!
Have a great night! In advance there is a good chance I will not be blogging on Sunday as I will drafting my team for Fantasy Football. Yes football is back for all of you NFL lovers!
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower (This gives me an accurate number of readership) I would like to see this number grow! Click the follow button on the right hand side of the screen and follow the prompts. It's easy!
Thursday, August 26, 2010
Sunday, August 22, 2010
Quiet Week For The Stock Market
Well it was a pretty quiet week for the market. Not much action as the Dow closed down 89.53 points from last Friday’s close. This works out to be a little under 1.0%. Like I said from previous posts the market hasn’t found a sense of direction. Jobs continue to be weak and there was no real data for investors to have a reason to put money to work this week.
The next economic data point will be released on Tuesday when the existing home sales are released at 10:00 a.m. Obviously we would like this number to improve to allow the inventory in housing to decrease. The expected number is 4.75 million. A significant rise above this number would be great as it gives the market a positive catalyst to invest upon. Decreasing the inventory in housing will allow prices to stabilize as I learned in my economics class back in High School that it’s all about supply and demand. If you reduce the supply the demand will increase and vise versa. Increased demand = stable/higher home prices. This is what we want.
The one economic data point that will truly move this market higher is to release on Thursday at 8:30 a.m. This would be the Initial and Continuing jobless claims. This has been the reoccurring sore spot on the market. A positive surprise to the upside (lower jobless claims) will be a plus for Thursday trading. However, the jobless claims need to continue to decrease in back to back months in order for investors to change their negative approach to the job market.
I hate to say it but with the inconsistent economic data this stock market will continue to be volatile. Positive news will send the market higher. Negative news will do just the opposite. We will continue to go from one extreme to the other week after week. I have never experienced a market that is so confusing. Consistent improvement in the economic data is the only true remedy. Even though this will be a short term negative, investing is meant for the future. Right now the market is actually buying you time to invest at great prices. So please take advantage of the ups and downs of the market! Invest more! At least the stock market isn’t dropping like a rock like it did back in 2008.
With no economic data for tomorrow I think we may get lucky with a positive day as short term investors will position themselves for the upcoming data later in the week. Yes this is very short term thinking, but that is the way investors have come to respond. Short term data = short term responses. My advice is to think beyond week to week. Think long term! Get use to long term thinking as investing is for your future. Your future well being!
Happy Sunday!
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower (This gives me an accurate number of readership) I would like to see this number grow! Click the follow button on the right hand side of the screen and follow the prompts. It's easy!
The next economic data point will be released on Tuesday when the existing home sales are released at 10:00 a.m. Obviously we would like this number to improve to allow the inventory in housing to decrease. The expected number is 4.75 million. A significant rise above this number would be great as it gives the market a positive catalyst to invest upon. Decreasing the inventory in housing will allow prices to stabilize as I learned in my economics class back in High School that it’s all about supply and demand. If you reduce the supply the demand will increase and vise versa. Increased demand = stable/higher home prices. This is what we want.
The one economic data point that will truly move this market higher is to release on Thursday at 8:30 a.m. This would be the Initial and Continuing jobless claims. This has been the reoccurring sore spot on the market. A positive surprise to the upside (lower jobless claims) will be a plus for Thursday trading. However, the jobless claims need to continue to decrease in back to back months in order for investors to change their negative approach to the job market.
I hate to say it but with the inconsistent economic data this stock market will continue to be volatile. Positive news will send the market higher. Negative news will do just the opposite. We will continue to go from one extreme to the other week after week. I have never experienced a market that is so confusing. Consistent improvement in the economic data is the only true remedy. Even though this will be a short term negative, investing is meant for the future. Right now the market is actually buying you time to invest at great prices. So please take advantage of the ups and downs of the market! Invest more! At least the stock market isn’t dropping like a rock like it did back in 2008.
With no economic data for tomorrow I think we may get lucky with a positive day as short term investors will position themselves for the upcoming data later in the week. Yes this is very short term thinking, but that is the way investors have come to respond. Short term data = short term responses. My advice is to think beyond week to week. Think long term! Get use to long term thinking as investing is for your future. Your future well being!
Happy Sunday!
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower (This gives me an accurate number of readership) I would like to see this number grow! Click the follow button on the right hand side of the screen and follow the prompts. It's easy!
Thursday, August 19, 2010
Wall Street Make Up Your Mind Already!
Wall Street Make Up Your Mind Already! This is what I have been saying to myself for quite sometime. Wall Street needs a sense of direction. The one thing that is nagging this market is jobs! Jobs! Jobs! Jobs! It was only months ago that the stock market was trucking along and then the jobless claims started to rise. The perception is jobs will not improve anytime soon. Today's report was more fuel to add to the fire. Another disappointing number!
Jobs continue to disappointment! The numbers were worst then expected, with a weekly initial jobless claims of 500,000. That’s 25,000 claims more than the 475,000 expected by the analysts. This is truly the only thing that is stopping this market from going higher. Every time claims come out we sell off! It’s obviously a negative to the market and the economy, but jobs have been terrible for quite sometime.
Everyone (I mean traders) are too quick to judge and any piece of bad news is an immediate sell. That to me isn’t logical. Why would you want to waste your time and energy selling a stock that you liked just a few days ago? This is what the stock market does. I’m here to tell you not to worry. The short term gyrations are meant to make people panic and sell their stock. There are many fund managers out there that still have plenty of money to put into the market. Lower prices are great for people that still need to get into the market. Negative news allows people to accumulate. To me that’s a good thing. A market that continues to move higher without stopping to take a break is a recipe for disaster.
As of today I’m not worried. I get excited at the potential of buying stock at lower prices. If you put in the time to do your research and build a great case for owning a company the short term sell-offs will be a blessing and not a curse. Buy more! It’s that simple. Investing is all about the future. If you can picture a better future for stock prices you will come to peace with the market. 6 months from now everyone will be laughing at how ridiculous it was to fret over the short term volatility.
If stocks were perfectly priced and in line with all the data there would be no reason to invest. No one would be able to make money. That’s why these sell-offs create opportunities in some stocks because the underlying value doesn't reflect the current price. It’s just like buying a house for less than market value, or a used car for a bargain. The potential to make a profit is there! I continue to stay optimistic as I see great potential for stocks.
Look at the market this way. Yes jobs are weak, but look at how well the earnings have been for the majority of companies over earnings season. Earnings have been great! If companies are improving their balance sheets and earnings are on the rise, the potential is huge! What will happen to stock prices when the economy turns and revenue increases? Earnings will explode! That’s why you invest now. Then you won’t miss the gobs of money on the way up as stock prices soar! It’s all about the Future! Future! Future!
On a positive note on a down day Intel (INTC) decided to buy software/security maker MCAFFE (MFE) for $7.7 Billion or $48.00 a share. Just yesterday MCAFFE closed at $29.93. Today MFE closed at $47.01. That’s a +57.07% return in one day! If that doesn’t get you excited that I don’t know what will. Companies wouldn’t be acquiring other companies if things weren’t getting better. I truly believe this is a sign of better things to come. So should you!
All research derived from http://finance.yahoo.com/
Have a great night! I’ll be back on Sunday.
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower (This gives me an accurate number of readership) I would like to see this number grow! Click the follow button on the right hand side of the screen and follow the prompts. It's easy!
Jobs continue to disappointment! The numbers were worst then expected, with a weekly initial jobless claims of 500,000. That’s 25,000 claims more than the 475,000 expected by the analysts. This is truly the only thing that is stopping this market from going higher. Every time claims come out we sell off! It’s obviously a negative to the market and the economy, but jobs have been terrible for quite sometime.
Everyone (I mean traders) are too quick to judge and any piece of bad news is an immediate sell. That to me isn’t logical. Why would you want to waste your time and energy selling a stock that you liked just a few days ago? This is what the stock market does. I’m here to tell you not to worry. The short term gyrations are meant to make people panic and sell their stock. There are many fund managers out there that still have plenty of money to put into the market. Lower prices are great for people that still need to get into the market. Negative news allows people to accumulate. To me that’s a good thing. A market that continues to move higher without stopping to take a break is a recipe for disaster.
As of today I’m not worried. I get excited at the potential of buying stock at lower prices. If you put in the time to do your research and build a great case for owning a company the short term sell-offs will be a blessing and not a curse. Buy more! It’s that simple. Investing is all about the future. If you can picture a better future for stock prices you will come to peace with the market. 6 months from now everyone will be laughing at how ridiculous it was to fret over the short term volatility.
If stocks were perfectly priced and in line with all the data there would be no reason to invest. No one would be able to make money. That’s why these sell-offs create opportunities in some stocks because the underlying value doesn't reflect the current price. It’s just like buying a house for less than market value, or a used car for a bargain. The potential to make a profit is there! I continue to stay optimistic as I see great potential for stocks.
Look at the market this way. Yes jobs are weak, but look at how well the earnings have been for the majority of companies over earnings season. Earnings have been great! If companies are improving their balance sheets and earnings are on the rise, the potential is huge! What will happen to stock prices when the economy turns and revenue increases? Earnings will explode! That’s why you invest now. Then you won’t miss the gobs of money on the way up as stock prices soar! It’s all about the Future! Future! Future!
On a positive note on a down day Intel (INTC) decided to buy software/security maker MCAFFE (MFE) for $7.7 Billion or $48.00 a share. Just yesterday MCAFFE closed at $29.93. Today MFE closed at $47.01. That’s a +57.07% return in one day! If that doesn’t get you excited that I don’t know what will. Companies wouldn’t be acquiring other companies if things weren’t getting better. I truly believe this is a sign of better things to come. So should you!
All research derived from http://finance.yahoo.com/
Have a great night! I’ll be back on Sunday.
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower (This gives me an accurate number of readership) I would like to see this number grow! Click the follow button on the right hand side of the screen and follow the prompts. It's easy!
Tuesday, August 17, 2010
Dow Jones Up +103.84 Today! Not Bad.
Finally we had the stock market move to the upside! That is what happens with indecision. Indecision creates a perfect opportunity for buyers to jump in when stock prices are low. Big point gains happen when you least expect it. Maybe it was because I was bored. LOL! The new technical indicator should be the Clayton Boredom Indicator. In all seriousness I have experienced a feeling of disgust many times and yesterday was one of those times. This happens to be the perfect time to buy. It's time to buy when the news is bad and fear is in the air.
Well that's it for today. Just wanted to shed some positive light on the stock market. It has been a long time coming! Oh yeah I forget nice job to anyone that had Potash (POT) on the possible takeover bid by BHP drove this stock up 27.66% to close up $31.02 a share at $143.17. See! This kind of opportunity is possible when you invest in the stock market. I love it!
Clay-
Well that's it for today. Just wanted to shed some positive light on the stock market. It has been a long time coming! Oh yeah I forget nice job to anyone that had Potash (POT) on the possible takeover bid by BHP drove this stock up 27.66% to close up $31.02 a share at $143.17. See! This kind of opportunity is possible when you invest in the stock market. I love it!
Clay-
Monday, August 16, 2010
I'm Looking For A Move To The Upside! Rally Up!
Can you say boring! When the market has little action something is about to occur. I have seen the stock market time and time again trade with little direction similar to the past couple weeks and when you least expect it the buyers come in and flood the market creating a powerful move to the upside. I'm going to go out on a limb and say with the beating the market took last week were do for a move upward. Plus I need to make some money! When I'm bored things happen!
Have a good night!
Clay-
Have a good night!
Clay-
Sunday, August 15, 2010
What Do You Want To Know About Investing? Anyone Interested in Personal Finance?
Good Afternoon!
Today I would like to find out what you want to know about investing or what topic you would like me to discuss in the near future.
Obviously, I'm new to blogging and I'm trying to build my readership. I don't want to write about something that no one is interested in. So please send me your feedback. Post a comment of your topic of interest or send a direct email to wheatleycsmk@gmail.com
I'm here to answer all your questions and improve your education on stocks and investing. Here is a list of topics that may be of interest
1. Retirement
2. Individual Stocks
3. Mutual Funds
4. Index Funds
5. Small Cap Stocks
6. Mid Cap Stocks
7. Large Cap Stocks
8. Dividends
9. Bond Funds
10. How to do your own research
11. How to purchase a stock
12. When to buy a stock
13. When to sell a stock
14. What books to read to get started in investing
15. Reviews on investment books
16. Personal Finance (Actually goes hand in hand with investing)
17. How to manage risk in investing
18. What is the stock market
19. Investing for College
20. Dividend paying stocks
These are general topics and I can elaborate in much more detail if requested. If you don't see your topic or have a different question please let me know. I've also noticed that a great deal of people have personal finance questions. With the economy the way it is finding money to invest can be difficult. I have been in the same boat and have experienced the ups and downs. If I have enough interest I may launch a personal finance blog as this would help others build a solid financial base in order to invest. With lots of debt it's counterproductive to invest. If this would be something of interest please send your feedback. I'm full of information and I'm ready to answer your questions. This is fun to me! Ask me anything!
One last thing. I appreciate everyone that has shown interest in my blog and I would like to say Thank You! If feels good to know that I'm helping others. Investing and personal finance is a passion of mine and it would be wrong for me not to share my thoughts and ideas. Money is essential to everyday life and being in control of your money is a must.
On that note I don't want to put anyone on the spot, but I know more than 16 people follow this blog. If you haven't joined as a follower please do so as this shows the increased readership. This helps me determine if I'm doing a good job. Without readership this blog means nothing. So click that follow button if you haven't already done so. Once again I really appreciate the support of my followers!
Thank You,
Clay-
Post a comment or send a response to wheatleycsmk@gmail.com
Today I would like to find out what you want to know about investing or what topic you would like me to discuss in the near future.
Obviously, I'm new to blogging and I'm trying to build my readership. I don't want to write about something that no one is interested in. So please send me your feedback. Post a comment of your topic of interest or send a direct email to wheatleycsmk@gmail.com
I'm here to answer all your questions and improve your education on stocks and investing. Here is a list of topics that may be of interest
1. Retirement
2. Individual Stocks
3. Mutual Funds
4. Index Funds
5. Small Cap Stocks
6. Mid Cap Stocks
7. Large Cap Stocks
8. Dividends
9. Bond Funds
10. How to do your own research
11. How to purchase a stock
12. When to buy a stock
13. When to sell a stock
14. What books to read to get started in investing
15. Reviews on investment books
16. Personal Finance (Actually goes hand in hand with investing)
17. How to manage risk in investing
18. What is the stock market
19. Investing for College
20. Dividend paying stocks
These are general topics and I can elaborate in much more detail if requested. If you don't see your topic or have a different question please let me know. I've also noticed that a great deal of people have personal finance questions. With the economy the way it is finding money to invest can be difficult. I have been in the same boat and have experienced the ups and downs. If I have enough interest I may launch a personal finance blog as this would help others build a solid financial base in order to invest. With lots of debt it's counterproductive to invest. If this would be something of interest please send your feedback. I'm full of information and I'm ready to answer your questions. This is fun to me! Ask me anything!
One last thing. I appreciate everyone that has shown interest in my blog and I would like to say Thank You! If feels good to know that I'm helping others. Investing and personal finance is a passion of mine and it would be wrong for me not to share my thoughts and ideas. Money is essential to everyday life and being in control of your money is a must.
On that note I don't want to put anyone on the spot, but I know more than 16 people follow this blog. If you haven't joined as a follower please do so as this shows the increased readership. This helps me determine if I'm doing a good job. Without readership this blog means nothing. So click that follow button if you haven't already done so. Once again I really appreciate the support of my followers!
Thank You,
Clay-
Post a comment or send a response to wheatleycsmk@gmail.com
Thursday, August 12, 2010
We Need A Break Occasionally!
Since the last time I posted the Dow Jones Industrial Average has dropped more than 333 points just over 3.0% to close at 10,319.95. It has dropped for good reason. We need a break! Or you can say the increased trade deficit, China slow down, or the continued weakness in jobs brought down the market. This negative data is nothing new and it’s a great excuse for a sell off. I feel quite confident in a minor pullback. A market pull back of 3-5% is always healthy when stocks run up to far to fast.
Although I can’t predict the market I definitely see weakness, but I did however notice today some positive action in the small/mid cap stocks. That’s stocks that have a market cap of roughly under $5 Billion. These stocks are very attractive to fund managers looking for growth. Small and Mid cap stocks do very well when the economy is improving and during an economic boom. They have the potential to have accelerated revenue growth and an explosion of earnings during good times. I believe there is more upside potential at the moment and growth is scarce in the larger companies especially with the potential of a slowdown. (Perceived slow down. I don't believe in the so called slowdown.)
My recommendation is to go find yourself a small/mid cap company that you can add to your portfolio to supercharge your returns. Also, continue to add to your favorite stocks on these pullbacks. Think of pullbacks as a gift to purchase your favorite stocks at lower prices. It’s a great feeling when the market turns back up and you can say to yourself “I’m glad I bought more” and it gives you a great confidence boost which is necessary to your success in a volatile market. We all need some reassurance from time to time!
Stay Positive!
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower (This gives me an accurate number of readership) I would like to see this number grow! Click the follow button on the right hand side of the screen and follow the prompts. It's easy!
Although I can’t predict the market I definitely see weakness, but I did however notice today some positive action in the small/mid cap stocks. That’s stocks that have a market cap of roughly under $5 Billion. These stocks are very attractive to fund managers looking for growth. Small and Mid cap stocks do very well when the economy is improving and during an economic boom. They have the potential to have accelerated revenue growth and an explosion of earnings during good times. I believe there is more upside potential at the moment and growth is scarce in the larger companies especially with the potential of a slowdown. (Perceived slow down. I don't believe in the so called slowdown.)
My recommendation is to go find yourself a small/mid cap company that you can add to your portfolio to supercharge your returns. Also, continue to add to your favorite stocks on these pullbacks. Think of pullbacks as a gift to purchase your favorite stocks at lower prices. It’s a great feeling when the market turns back up and you can say to yourself “I’m glad I bought more” and it gives you a great confidence boost which is necessary to your success in a volatile market. We all need some reassurance from time to time!
Stay Positive!
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower (This gives me an accurate number of readership) I would like to see this number grow! Click the follow button on the right hand side of the screen and follow the prompts. It's easy!
Sunday, August 8, 2010
Friday's Jobs Data???
The stock market action for Friday showed how resilient the market can be even when negative news floods the news wire. I mentioned on Thursday’s blog post that the July nonfarm payrolls would be released on Friday. I stated that if the numbers were negative stocks would most likely head lower. This is a very important number to pay attention to.
Well the numbers weren’t good! Non farm payrolls fell to 131,000. Analyst’s predicted the total number was to be about 65,000 jobs lost. That’s double the amount of jobs lost compared to what was predicted. The other key number taken from this report is the addition of private employment jobs and the number fell short of expectations adding only 71,000 compared to the analyst’s number of 90,000. Private employment is a better gauge of the health of the economy. Also, the unemployment rate stayed unchanged at 9.5%
Although the overall numbers weren’t very good there were a few positives that came out of this report. Those 2 positives were 1. The average hourly earnings were up 0.2% and 2. The totals hours worked in a week were up slightly by 0.1%. Any increase in these 2 numbers is positive as this shows improvement to the internal data towards to recovery of the jobs market.
All numbers and research was derived from
http://www.reuters.com/article/idUSTRE6752JM20100806
In my opinion jobs will continue to be a sore spot in the stock market over the next few months. This is the single most important short term catalyst to take this market higher. Seeing the stock market basically unchanged on Friday shows the indecision of investors. Without some data point I believe the market will gradually go lower. Don’t get me wrong I’m a true optimist, but the indices have run up through the month of July due in part to the spectacular earnings we have seen from many of the large companies. With earnings season coming to a close and the weak jobs report I see the market trading sideways if not to the downside in the short term. Hopefully I’m dead wrong and the market trucks higher, but after all 3 major indices have run up roughly 9.0% since July 1st I don’t see this happening.
Next week the FED will be speaking about the state of the economy and my recommendation is to sit tight and not buy any stock until after the FED meeting. We haven’t had a major sell off in quite sometime so please be prepared and have some money sitting on the sidelines to buy when an opportunity presents itself.
Have a great weekend!
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower (This gives me an accurate number of readership) I would like to see this number grow! Click the follow button on the right hand side of the screen and follow the prompts. It's easy!
Well the numbers weren’t good! Non farm payrolls fell to 131,000. Analyst’s predicted the total number was to be about 65,000 jobs lost. That’s double the amount of jobs lost compared to what was predicted. The other key number taken from this report is the addition of private employment jobs and the number fell short of expectations adding only 71,000 compared to the analyst’s number of 90,000. Private employment is a better gauge of the health of the economy. Also, the unemployment rate stayed unchanged at 9.5%
Although the overall numbers weren’t very good there were a few positives that came out of this report. Those 2 positives were 1. The average hourly earnings were up 0.2% and 2. The totals hours worked in a week were up slightly by 0.1%. Any increase in these 2 numbers is positive as this shows improvement to the internal data towards to recovery of the jobs market.
All numbers and research was derived from
http://www.reuters.com/article/idUSTRE6752JM20100806
In my opinion jobs will continue to be a sore spot in the stock market over the next few months. This is the single most important short term catalyst to take this market higher. Seeing the stock market basically unchanged on Friday shows the indecision of investors. Without some data point I believe the market will gradually go lower. Don’t get me wrong I’m a true optimist, but the indices have run up through the month of July due in part to the spectacular earnings we have seen from many of the large companies. With earnings season coming to a close and the weak jobs report I see the market trading sideways if not to the downside in the short term. Hopefully I’m dead wrong and the market trucks higher, but after all 3 major indices have run up roughly 9.0% since July 1st I don’t see this happening.
Next week the FED will be speaking about the state of the economy and my recommendation is to sit tight and not buy any stock until after the FED meeting. We haven’t had a major sell off in quite sometime so please be prepared and have some money sitting on the sidelines to buy when an opportunity presents itself.
Have a great weekend!
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower (This gives me an accurate number of readership) I would like to see this number grow! Click the follow button on the right hand side of the screen and follow the prompts. It's easy!
Thursday, August 5, 2010
Westport Innovations W P R T
Today I would like to come back to a company I initially talked about investing in back in June. That company is Westport Innovations. If you have haven’t read the article I wrote about Westport follow this link back to June 13th.
http://stockmarketmonster.blogspot.com/2010/06/can-you-say-westport-innovations.html
Okay so yesterday after the market closed Westport Innovations (WPRT) reported earnings for the 1st qtr of fiscal 2011 a net loss of (-$0.21) a share beating analyst expectations by $0.01 on revenues of $25.5 million compared to a year ago of $21.8 million that’s a 17% increase. Not to bad. Although the revenue didn’t meet analyst expectations of $32 Million I listened to the conference call and a few large orders of product missed the cutoff to report on this quarters earnings. That is why they missed on revenues.
The CEO David Demers was very upbeat. The tone of his voice gave me an indication that good things are still yet to come for WPRT. Westport is on track to meet their expectations for earnings on the year. Nothing has changed and they have a lot of business in the pipeline.
Recently if you have been watching this stock it ran up drastically to hit a 52 week high of $21.34 and has been taken down to $18.18 or about 15%. The reason behind this move was the excitement that the Senate was going to pass an energy bill that is beneficial to Westport. After the bad news that the Senate was going to postpone the bill for further discussion after the Senate break (little vacation) the short term catalyst came to a screeching halt.
Although this wasn’t positive news David Demers continues to see a lot of orders and pent up demand for Westport’s engines in North America awaiting the energy bill. This energy bill will help give direction to companies on what to expect for the future of energy. The monetary incentives alone for natural gas conversion is one of the reasons companies are standing on the sidelines. If the law passes it would be a no brainer for companies to take advantage of the incentives along with the bonus of trimming fuel costs substantially by taking the natural gas route. Yes this would be a huge win for Westport, but they also do business in Canada, Australia, Europe, and China. That means this business is growing with or without the energy bill.
This company has a great long term growth story. I have recently over the passed week personally invested my own money in this company. This is a perfect time to buy now that the excitement of the possible passage of the energy bill has been postponed. Any stock bought between $16.00-18.00 is a good buy.
Look at it this way. An insider purchased 500,000 shares at a price between $17.66-18.79 on July 14th a little less than 3 weeks ago. That’s $9.3 million in stock. You can get in at the same price as this insider. Remember insiders buy stock to make money and show confidence in their company. An insider investing a substantial amount of money is definitely positive for any stock.
My recommendation is to see what happens tomorrow with the July nonfarm payrolls report to see if the number is positive or negative. If positive buy a little over the next few days. If the number is negative it will be a gift as stocks will most likely head lower and you will be able to buy Westport (WPRT) on the cheap. Oh yeah remember never buy all at once!
Have a great night!
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
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http://stockmarketmonster.blogspot.com/2010/06/can-you-say-westport-innovations.html
Okay so yesterday after the market closed Westport Innovations (WPRT) reported earnings for the 1st qtr of fiscal 2011 a net loss of (-$0.21) a share beating analyst expectations by $0.01 on revenues of $25.5 million compared to a year ago of $21.8 million that’s a 17% increase. Not to bad. Although the revenue didn’t meet analyst expectations of $32 Million I listened to the conference call and a few large orders of product missed the cutoff to report on this quarters earnings. That is why they missed on revenues.
The CEO David Demers was very upbeat. The tone of his voice gave me an indication that good things are still yet to come for WPRT. Westport is on track to meet their expectations for earnings on the year. Nothing has changed and they have a lot of business in the pipeline.
Recently if you have been watching this stock it ran up drastically to hit a 52 week high of $21.34 and has been taken down to $18.18 or about 15%. The reason behind this move was the excitement that the Senate was going to pass an energy bill that is beneficial to Westport. After the bad news that the Senate was going to postpone the bill for further discussion after the Senate break (little vacation) the short term catalyst came to a screeching halt.
Although this wasn’t positive news David Demers continues to see a lot of orders and pent up demand for Westport’s engines in North America awaiting the energy bill. This energy bill will help give direction to companies on what to expect for the future of energy. The monetary incentives alone for natural gas conversion is one of the reasons companies are standing on the sidelines. If the law passes it would be a no brainer for companies to take advantage of the incentives along with the bonus of trimming fuel costs substantially by taking the natural gas route. Yes this would be a huge win for Westport, but they also do business in Canada, Australia, Europe, and China. That means this business is growing with or without the energy bill.
This company has a great long term growth story. I have recently over the passed week personally invested my own money in this company. This is a perfect time to buy now that the excitement of the possible passage of the energy bill has been postponed. Any stock bought between $16.00-18.00 is a good buy.
Look at it this way. An insider purchased 500,000 shares at a price between $17.66-18.79 on July 14th a little less than 3 weeks ago. That’s $9.3 million in stock. You can get in at the same price as this insider. Remember insiders buy stock to make money and show confidence in their company. An insider investing a substantial amount of money is definitely positive for any stock.
My recommendation is to see what happens tomorrow with the July nonfarm payrolls report to see if the number is positive or negative. If positive buy a little over the next few days. If the number is negative it will be a gift as stocks will most likely head lower and you will be able to buy Westport (WPRT) on the cheap. Oh yeah remember never buy all at once!
Have a great night!
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower (This gives me an accurate number of readership) I would like to see this number grow! Click the follow button on the right hand side of the screen and follow the prompts. It's easy!
Monday, August 2, 2010
Monster Day In The Stock Market!
Who says you can't make money in stocks? Not me! LOL. The money machine was rolling today!
Dow was up 208.44 Points (+1.99%)
NASDAQ closed up 40.66 Points (+1.80%)
S&P 500 up 24.26 Points (+2.20%)
These are the days that you patiently wait to happen! If your nervous about stocks this is a perfect reason not to be. Stay in the game. Oh yeah how about Weatherford International (WFT) up 2.41% I told you it was a good one. WFT is not done going higher.
Have a great night!
Clay-
Dow was up 208.44 Points (+1.99%)
NASDAQ closed up 40.66 Points (+1.80%)
S&P 500 up 24.26 Points (+2.20%)
These are the days that you patiently wait to happen! If your nervous about stocks this is a perfect reason not to be. Stay in the game. Oh yeah how about Weatherford International (WFT) up 2.41% I told you it was a good one. WFT is not done going higher.
Have a great night!
Clay-
Sunday, August 1, 2010
52 Week High List (A great place for investment ideas)
Have you run out of investing ideas? Individuals only have a certain amount of research capacity when it comes to investing in stocks. This is the reason you tend to buy your favorite stocks over and over again. To add a little spin on finding your next investment keep tabs on the 52 week high list. This is the list of stocks that have recently surpassed their highest price for the year. You may be somewhat reluctant to want to invest in these companies, but I'm here to tell you that these are the best companies for future investments.
Stocks that have hit their 52 week high are in favor. Fund managers continue to buy stocks that are working. These stocks are making money and doing what's right to add value for investors. As long as a company is liked it will continue to have buyers to take the price of the stock higher. Here is the recent list for companies that have hit their 52 week high. I happen to like stockpickr so please follow this link to research for yourselves. http://stockpickr.com/today/52-Week-Highs/ (Deere (DE) is on there)
My recommendation for the 52 week high list is to find a few companies that you like. Once you do your research wait for the stock to pull back about 3 to 5% then make your 1st initial purchase. Continue accumulating this stock over a period of time at multiple prices. This way you can get a better price overtime. Also, dig a little deeper and find out what sector/industry these stocks are in. Look at their competitors as they may be a great investment as well. This will broaden your investment selection and you may find a stock that is undervalued and has yet to realize the success of the stocks that have hit their 52 week high. Remember as Jim Cramer would say 50% of a stocks price movement has to do with the sector. If the sector is in favor the stocks in that sector will have the momentum to go higher.
That's it for me. Have a great weekend!
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower (This gives me an accurate number of readership) I would like to see this number grow! Click the follow button on the right hand side of the screen and follow the prompts. It's easy!
Stocks that have hit their 52 week high are in favor. Fund managers continue to buy stocks that are working. These stocks are making money and doing what's right to add value for investors. As long as a company is liked it will continue to have buyers to take the price of the stock higher. Here is the recent list for companies that have hit their 52 week high. I happen to like stockpickr so please follow this link to research for yourselves. http://stockpickr.com/today/52-Week-Highs/ (Deere (DE) is on there)
My recommendation for the 52 week high list is to find a few companies that you like. Once you do your research wait for the stock to pull back about 3 to 5% then make your 1st initial purchase. Continue accumulating this stock over a period of time at multiple prices. This way you can get a better price overtime. Also, dig a little deeper and find out what sector/industry these stocks are in. Look at their competitors as they may be a great investment as well. This will broaden your investment selection and you may find a stock that is undervalued and has yet to realize the success of the stocks that have hit their 52 week high. Remember as Jim Cramer would say 50% of a stocks price movement has to do with the sector. If the sector is in favor the stocks in that sector will have the momentum to go higher.
That's it for me. Have a great weekend!
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower (This gives me an accurate number of readership) I would like to see this number grow! Click the follow button on the right hand side of the screen and follow the prompts. It's easy!
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