Volume 1 No. 3 September 24, 2000
Newsletter from StockG.com
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CONTENTS
----------------
1. Market Overview
2. Week in Review
3. Upcoming Week's News
4. Investing Web-site
of the Week =>"http://vision.yahoo.com"
5. Stock of the Week =>"SUNW"
6. Stocks to Watch =>"KREM,
HGSI"
7. Strategy of the Week =>"Sell
50% of a stock that has doubled"
8. Book of the Week =>"Telecosm
by George Gilder"
9. Articles of the Week
10. Investing Contest =>"Ends
Sep. 30"
11. Wizard's Quote of the
Week =>"Sell your losers"
12. Monkey Picks
13. Hot Links
14. Ask Us a Question =>"What
is Bid size?"
15. Disclaimer
16. Miscellaneous
----------------------------
1. MARKET OVERVIEW
----------------------------
The market was down a little for the previous week. The Dow was
down 79 points or 0.73%, the Nasdaq was down 31 points or 0.82%
and the S&P 500 was down 17 points or 1.17%. September is
living up to its poor performance record. Nasdaq is down 9.6%
for the month so far. On Friday, Intel's sales warning caused
the market to gap down to the 3614 level, but it was straight
up from there to close almost 200 pts. from the open at 3803.
Nasdaq held support at 3800, which is a good technical indicator
for the following week. See Nasdaq Candlestick chart below. Intel
traded 308 million shares which is a record for a stock in one
day.
------------------------
2. WEEK IN REVIEW
------------------------
Earnings
===================
Week started with earning warnings from a number of companies
and ended with a revenue warning from Intel. All warned that
future earnings or sales will be lower than previously estimated.
The weak Euro is being blamed for revised earnings. What
ever happened to hedging currency risk?
Euro and Oil
===================
The Euro was trading below $0.85 , a new low, and crude oil hit
new high of over $37 a barrel. The falling Euro and rising
oil prices are throwing serious doubt on estimates of future earnings,
especially in Old Economy companies. By end of the week the White
House announced that it will release crude oil from the Strategic
Petroleum Reserve. The European Central Bank, and Japan and the
US, plan to support the Euro by buying the currency.
Intel will miss revenue targets
===============================
This caused a near panic in the markets with the Nasdaq opening
212 points lower. Intel traded over 308 million shares which is
a record and was down 13 35/64 points, a 22% loss to close at
47 15/16.
http://www.msnbc.com/p/cnbc/464738.asp?bt=cnbc
Other News
======================
* The Motley Fools picked HGSI as a Rule Breaker stock
http://www.fool.com/portfolios/rulebreaker/2000/rulebreaker000921.htm
* AOL and Time warner will find out if there merger will be approved
within the next 30 days.
http://www.reuters.com/news_company.jhtml?storyid=NEWS.REUT.20000922.DEL000039rtr&ticker=AOL
* HP announces 1 Billion Stock Buy back, and said they are comfortable
with earning estimates
http://www.reuters.com/news_company.jhtml?storyid=NEWS.REUT.20000922.N22242932rtr&ticker=HWP
* Ebay expects revenues to reach $3 billion by 2005, a growth
rate of roughly 50% a year
http://www.thestreet.com/_yahoo/brknews/internet/1089368.html
On the positive side:
======================
* Important support level of 3800 for the Nasdaq has been held
* CSCO closed above $60, which is an important support level for
the stock and as Cisco goes usually so goes the Nasdaq
* Friday after Intel announced revenue shortfall, the market made
an amazing comeback from 212 point deficit to close down only
25 points to come back from the 3600 level to close above the
3800 level.
* 3M is forecasting strong growth for the next three years and
upcoming quarterly earnings would meet expectations
---------------------------
3. UPCOMING WEEKS NEWS
---------------------------
IPO's
=====
More than 20 new stocks are on the calendar for next week, including
several companies in the popular networking and biotech sectors.
The performance of these IPOs will indicate whether the Investment
Banks will slow the flow of them.
The most interesting IPOs are:
CoSine Communications(COSN)
Elastic Networks (ELA) a spinoff from Nortel
Head (HED) - maker of tennis equipment
Genomica (GNOM) - software for drug companies
Simple Technology Inc. - STEC
AdvantGo Inc. (AVGO) - Mobile infrastructure software
Interesting Upcoming Earnings
==========================
Cabletron Systems (CS)
Tibco Software(TIBX)
Corel Corp (CORL)
Biotechnology General (BTGC)
Complete list see http://biz.yahoo.com/research/earncal/20000927.html
Interesting Upcoming Stock Splits
==========================
None
Complete list see http://biz.yahoo.com/c/s.html
Lockups Expiring
================
http://www.ipo.com/ipoinfo/lockup.asp?p=IPO
Economic Calendar
=================
See http://biz.yahoo.com/c/00/09/cal4.html
-----------------------------------------------
4. INVESTING WEB-SITE OF THE WEEK
-----------------------------------------------
Missed CNBC because you were working? Our Web-site of the week
is http://vision.yahoo.com#here,
Yahoo's Finance Vision. This is a great site, though you need
a fast Cable Modem, DSL, or other broadband connection to really
appreciate it. Get up to the minute analysis with very high quality
video.
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------------------------------
5. STOCK OF THE WEEK
------------------------------
Our stock of the week is not a recommendation to buy or sell, just an interesting company you might want to follow. Please see our disclaimer at the end of this newsletter.
Our stock of the week is Sun Microsystems ticker (SUNW). Sun's
home page is at http://www.sun.com/.
Get a quote at yahoo at http://quote.yahoo.com/q?s=sunw&d=v1
Sun Microsystems, Inc. is a worldwide provider of products,
services and support solutions for building and maintaining network
computing environments. The Company sells scalable computer systems,
high-speed microprocessors and high performance software for operating
network computing equipment and storage products. The Company
also provides support, education and professional services. The
Company's products are used for many demanding commercial and
technical applications in various industries including telecommunications,
manufacturing, financial services, education, retail, government,
energy and healthcare. They are the creators of the Java
programming language. Recently acquired Cobalt Networks.
If you invest in this stock please use only an amount you are willing to lose as it is risky. We also recommend cutting your loses at 8% of your original investment which is a stop price of 108.62. The stock is currently in a weak MACD up trend, . Stock is up 36% in the last 3 months, 17% in the last 6 months and up 161% in the last 12 months and its performed better than stocks in its industry group. Its 52-week high is $129.31 and it's currently trading at 118 1/16. Resistance at $120 and support at $110. According to their 10Q there are no legal proceedings against Sun, but Sun has a suit against Microsoft. Their revenues for the previous 12 months was $15.7 Billion with $1.8 Billion in income. Morningstar.com rates Sun as an "B" for Growth, "A+" for profitability, "A-" for financial health, and an "D" for valuation which is a great rating but a bit overvalued. Barchart.com rates 20% short term sell, 75% Medium term buy and long-term 67% buy. Stock has a 1.43 rating on Yahoo, which is good. VectorVest rate it good value, good safety, excellent timing. for an overall rating of very good and they have a buy recommendation on the stock. To do a complete analysis go to http://StockG.com/q.htm?em. Steeper competition with new servers coming from HP, Compaq Computer, SGI and especially IBM. Stock will split on Nov. 9, 2000. We predict a split price of $144. Fidelity Management & Research is the top institutional holder with $7.8 Billion in stock
Find out more about Sun at http://www.amazon.com/exec/obidos/ASIN/0471297135/etopinvestorcom
One risk of many is that this stock is overvalued, and the
Nasdaq has been performing poorly.
Click below for research link on SUNW:
* Motley Fools at http://quote.fool.com/uberdata.asp?symbols=sunw
* Money Central at http://moneycentral.msn.com/investor/research/wizards/srwfund.asp?Symbol=sunw
* Morningstar.com at http://quicktake.morningstar.com/Stocks/StockGrade/_gern.html
* Barchart.com at http://quotes.barchart.com/texpert.asp?sym=sunw&code=1
* SmartMoney.com at http://smartmoney.com/si/tools/eqsnaps/index.cfm?story=competition&symbol=sunw&fk=7272
* ClearStation.com at http://www.clearstation.com/cgi-bin/details?Event=peek&Symbol=sunw&Refer=http://www.clearstation.com/
* Yahoo at http://quote.yahoo.com/q?s=sunw&d=b
* Second Opinion at http://suretrade.stkwtch.com/Suretrade/Secop/SUNW.asp
* Thomson I-watch at http://iw.thomsoninvest.net/iwatch/cgi-bin/iw_page?ticker=sunw
* Raging Bull at http://www.ragingbull.altavista.com/mboard/boards.cgi?board=sunw
* 10Q at http://moneycentral.msn.com/investor/sec/mda.asp?Symbol=sunw
* Broker Reports at http://www.cnetinvestor.com/reports-single-company.asp?symbol=sunw
* Momentum report at http://www.cnetinvestor.com/momentum-rating-single-company.asp?symbol=SUNW
* Vector Vest at http://www.vectorvest.com
Please note that author currently holds shares of this stock.
News
===============
Sun announces stock split amid sales surge
http://yahoo.cnet.com/news/0-1003-200-2549885.html?pt.yfin.cat_fin.txt.ne
YTD (Year-to-date) Chart
----------------------------
6. STOCKS TO WATCH
----------------------------
* KREM - Just hit $100, up too fast, ridiculous P/E for food company,
* HGSI - Just named as Rule Breaker by the Motley Fools http://www.fool.com/portfolios/rulebreaker/2000/rulebreaker000921.htm
-----------------------
7. STRATEGY OF THE WEEK
-----------------------
Sell 50% of a stock that has doubled
If a stock doubles, you should sell half of it. This way you cannot
lose any of your initial investment in the stock. Though had you
done this with a stock like Microsoft early on you would have
lost a tremendous amount over time
-----------------------------
8. BOOK OF THE WEEK
-----------------------------
Telecosm "How Infinite Bandwidth will Revolutionize the World"
by George Gilder
http://www.amazon.com/exec/obidos/ASIN/0684809303/etopinvestorcom
Rated 3 1/2 out of 5 stars. $20.80, list $26.00. A bit technical,
George Gilder is the tech guru that everyone listens to. Great
analysis of the Fiber Optic market and how it will revolutionize
the world. If your interested in fiber optics this is must read.
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------------------------------
9. ARTICLES OF THE WEEK
------------------------------
SEC Makes Kid Return Fortune
http://www.wired.com/news/politics/0,1283,38939,00.html
The Best Chip Stocks For the Future
http://www.wallstreetcity.com/commentary/Prosearch_full_story.asp?CommentaryID=16000
The Best Value in Chip Stocks
http://www.wallstreetcity.com/commentary/Prosearch_full_story.asp?CommentaryID=16012
Special Report: Euro's Bruising Effects
http://www.cnbc.com/commentary/commentary_full_story_Markets.asp?StoryID=23463
Ashok Kumar on Intel
http://wwwrd.0mm.com/nbc486044
-------------------------------
10. INVESTING CONTEST
-------------------------------
You can enter our contest and win the book "The Gorilla Game"
http://StockG.com/FI_contest.htm?em
by guessing the value of the Nasdaq on the last trading day of
the year. The last day of the contest is Sep. 30, 2000.
-----------------------------------------------
11. WIZARD'S QUOTE OF THE WEEK
-----------------------------------------------
"Sell your losers". One of the most common pieces of
advice the experts give, also to do it quickly. A stock that's
down 50% needs a 100% rise to break even, down 67% need a 300%
return to break even. How many stocks do you know that have returned
300%. Also you can lose in what's called opportunity costs. While
your losing stock is trying to recover, your investment money
is tied up, when it might be better off in another stock.
Ask the Stock Wizard a question at http://stockg.com/FI_StockWizard.htm?em
-------------------------------------
12. MONKEY PICKS
-------------------------------------
Our Monkey has picked the following stocks for the week of September
24, 2000
* SUPG (Supergen)
* GGB (Gerdau USA)
* SGI (Silicon Graphics)
* MEA (Mead Corp.)
* ANN (Ann Taylor Stores)
Get a quote at yahoo here http://quote.yahoo.com/q?s=supg+ggb+sgi+mea+ann&d=v1
You can visit our monkey at http://stockg.com/FI_Monkey.htm?em
For the previous weeks picks our monkey was down 5.82% vs.
the S&P 500 down 1.17%. Our monkey did worse than all three
indexes last week, he has a 3 - 3, won-loss record against the
S&P, Dow and Nasdaq indexes
* PRIA (PRI Automation) -15.17%
* LE (Lands End) -0.28%
* SFN (Spherion Corp) -2.42%
* GGa (Gold Corp A)-7.8%
* CTC (Comp De Telecom)-0.36%
-------------------
13. HOT LINKS
-------------------
* Quick Research: http://StockG.com/q.htm?em
* Stock Wizard: http://stockg.com/FI_StockWizard.htm?em
* Stock Picking Monkey: http://stockg.com/FI_Monkey.htm?em
* Software: http://stockg.com/FI_Downloads.htm?em
* Random: http://stockg.com/FE_random.htm?em
* Books: http://stockg.com/FI_Books.htm?em
* Glossary: http://StockG.com/FI_Glossary.htm?em
* Biotech: http://www.eBiotechInvestor.com?em
* What's New: http://StockG.com/FI_New.htm?em
* Technology: http://StockG.com/FI_Technology.htm?em
* Top sites: http://StockG.com/t.htm?em
-------------------------
14. ASK US A QUESTION
-------------------------
Please explain what is the meaning of BID SIZE 30 and ASK SIZE
11. I found these terms together with other terms provided by
a Quote and I can not understand what the values indicate?
Bid size 30 means there are 30 * 100 or 3000 shares that some is willing to buy at the Bid price, the 11 means 11 * 100 or 1100 shares that someone is willing to sell at the ask price. If the bid price is 50 1/4 and the ask is 50 1/2, this means someone is willing to sell 1100 shares (the Ask times 100, since the bid and ask are quoted in round lots of 100 shares) at 50 1/2 and someone else is willing to buy 3000 shares at 50 1/4. These prices are set mostly by market makers and specialists. You can affect the bid and the ask by placing a limit order that is within the spread (bid and ask). Say if you want to buy 100 shares at 50 3/8 and put in a limit order, then the bid x ask will be 1 x 11 with the bid 50 3/8 and the ask of 50 1/2.
Submit you questions to
--------------------
15. DISCLAIMER
--------------------
We are not responsible for any losses or profits that may result from the application of information contained with this website or newsletter. This site and its owners are not registered Investment Advisers nor a Broker/Dealer. This site is issued solely for informational and educational purposes only and is not constructed as an offer to sell or the solicitation of an offer to buy. The information provided on this site is in no way a verification of the methodology used for stock picking by the site or guarantees the accuracy of the information, that is your responsibility. The opinions and analysis included herein are based from sources believed to be reliable and in good faith but no representation or warranty, expressed or implied is made as to their accuracy, completeness or correctness. The inclusion of a link to a site does not, in any way, represent or imply an approval of, or a determination of the quality of that product or service, by StockG.com. The links provided herein are maintained by their respective organizations and they are solely responsible for their content. Users agree to hold StockG.com harmless for any and all damages arising out of use of this service. Users are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report should be independently verified with the companies mentioned. The data and materials are provided by StockG.com on an "AS IS" basis. Purchasing securities is risky. You may lose some or all of your investment. Past performance is no guarantee of future performance. StockG.com and its owners may invest in the companies that are profiled. We reserve the right to buy or sell any of these profiled stocks before and after they are posted to the site or recommended.
-----------------------------------
16. MISCELLANEOUS
-----------------------------------
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