Stock Market Set to Plummet at Start of September

Stocks usually perform poorly in September and from the looks of overseas markets and US futures, the market is set to start off September tumbling down.

Shanghai’s main index plummeted 5.7% (-163, 2,697) and the Hang Seng lost over 1.8%. In Tokyo the Nikkei 225 stock index was down .4% (-38, 10,495).

Currently the XETRA-DAX is trading down .85% (-47, 5,470) and the CAC-40 is down over .6% (-22, 3,671).

US Futures are down sharply:

• S&P 500 - 8.00
• NASDAQ - 14.25
• Dow Jones -67

The stock market looks to open down sharply, it will be a challenge for the market to fight off the early fall.  Due to be released in today’s economic calendar is the Chicago PMI and Motor vehicle sales data.

The Stock Market Set to Open Slightly High

Asian stocks fall due to China’s plan to curb capacity. China said that they will curb overcapacity and investments in industries such as steel and cement. European shares opened the day flat and are slightly higher in early trading.

The Hang Seng closed down 1 percent (-213) and the Nikkei 225 slid 1.6 percent (-165). The London FTSE 100 is currently up approximately .2 percent, German’s DAX was flat and France’s CAC-40 edged up 0.1 percent.

US S&P Futures are up slightly (+.90), NASDAQ (+.50) and the Dow Jones (+12.00). The US market is expected to open slightly higher but may take a cue from Asian markets and close toward the negative side.

Today’s jobless claims numbers are out in the early morning and can set the tone for the trading day.

WFC - Wells Fargo, Inc.

WFC (Wells Fargo, Inc.)

• Entry price: $26.30
• Risk Level: 8
• Profit Potential: 7
• 1 yr Target Price: $28-$35

With investors feeling a little uneasy with the financial market it is hard to believe that Wells Fargo would be a hot stock to invest in, but it is because in June of 2009 the actual EPS is recorded at 0.23 higher than analysts at Yahoo Finance estimated. The same analysts also project next year’s quarter growth to be 131.6% and next year’s growth to 122.7%. Since March of 2009 there is an upward trend from $8.12 a share to the current price. On July 22, 2009 WFC reported revenue of $22.5 billion, up 28% (annualized) from first quarter. Wells Fargo net income of $3.17 billion was also up 81% from last year. WFC also reported net income applicable to common stock of $2.58 billion, up 47% from last year.

Since combining assets with Wachovia Insurance Services on July 1, 2009, Wells Fargo becomes the world’s fourth largest insurance firm and the largest bank-owned insurance brokerage in the U. S.

In addition to the positive growth trend, on August 5, 2009 Wells Capital Management has been selected by Nomura Asset Management to manage the new Emerging Markets Consumer Stock Fund. The fund was launched in Japan on July 24 and total assets exceed $1 billion, with strong subscriptions adding to the initial launch size of $740 million. The fund is distributed in Japan by Nomura Securities.

We wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.

Global Markets and US Futures Down Sharply

Just fresh from Monday’s 6.5% drop, stocks in Shanghai ended the day down 4.3%. Since it’s market peak just two weeks ago, China’s stock market has fallen over 20%. This could be the signal for a Bear market for the Hang Seng. Most of the European markets are down close to 1% in early morning trading.

After the market closed on Tuesday Hewlett-Packard (HPQ) reported a 19% drop in their quarterly report. The drop was mainly due to weak PC and ink sales.

This looks to be a dreadful opening for the US stock market. Investors should have their stops ready and prepare for a rough trading market. The rest of the week can be rough also as options are set to expire this Friday.

AMZN - Amazon.com, Inc.

AMZN (Amazon.com, Inc.)

• Entry Price: $83.49
• Risk Level:9
• Profitability Level:8
• 1year Target Price: $125-$135

Amazon has a product called Kindle, which has been featured on the Oprah Show that could be very profitable. A Cowen analyst Jim Friedland increased his expectations for sales of the Amazon (AMZN) Kindle e-book reader. Friedland now expects Amazon to end 2009 with 1.5 million active Kindle units increasing revenue to $266 million, up 13% from their previous estimate of $235 million. For 2010, he increased his sales forecast by 11% to 1.8 million units. By the end of 2010, he expects 3 million Kindles to be in service. Within 5 years, he estimates, 17% of active Amazon customers will own Kindles which will account for 10% of Amazon’s North American sales, or $2.3 billion in GAAP revenues.

Yahoo Finance analyst predictis positive growth for next quarter as well as a 28.6% growth for next year. This in addition to the increased kindle purchases makes Amazon a hot stock to buy.

We wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.

PCLN Priceline, Inc.

PCLN (Priceline, Inc.)

• Entry Price: $150.24
• Risk Level: 8
• Profitability Level: 8
• 1year Target Price: $180
  

  Despite the recession, consumers are still demanding for summer leisure travel but at a more manageable price. Priceline has offered the ability for many families to take their summer vacation at deep discounted prices. As a result online booking on Priceline.com has risen by13% to $2.38 billion increasing revenue to 17.5% to $603.7 million. Priceline said it expects the value of its travel bookings to increase in the third quarter by 20 percent.

  With reported second-quarter earnings increasing by 35%, income reached $25 million compared to $13.8 million last year. Priceline’s better than expected earnings price of $2.02 per share beat Wall Street analyst’s forecasted price of $1.79 per share.

  Beating analysts forecasted figures by.22 cents and improving conditions in the economy makes Priceline.com a hot stock to buy.

PFE (Pfizer, Inc.)

PFE (Pfizer, Inc.)

• Entry Price: $16.07
• Risk Level:8
• Profitability Level: 7
• 1year Target Price: $20-$25

Having settled the 1996 Trovan clinical study case with the Kano State government in Nigeria, Pfizer can move forward to other developing drugs. Pfizer Inc (NYSE: PFE), together with Medivation, Inc. (NASDAQ: MDVN) has started the initiation of a Phase 3 trial of the investigational drug Dimebon (Latrepirdine) in patients with Huntington disease. In addition, the U.S. Food and Drug Administration (FDA) have granted orphan drug designation to Dimebon for the treatment of Huntington disease.

On January 26, 2009 Pfizer and Wyeth entered into a definitive merger agreement under which Pfizer will acquire Wyeth in a cash-and-stock transaction. The conglomerate company will create one of the most diversified companies in the global health care industry, with product offerings in numerous growing therapeutic areas, a strong product pipeline, and leading scientific and manufacturing capabilities.

Yahoo analysts estimate growth for the following year to be 13.8%; 3.8% over the industry’s projected growth, making Pfizer a hot stock to buy.

We wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.

MRK - MERCK, Inc.

MRK (MERCK, Inc)

• Entry Price: $30.02
• Risk Level: 8
• Profitability Level: 7
• 1year Target Price: $35-$40

Despite all the legal troubles surrounding Merck’s Vioxx drug, the company is still going strong with other marketable drugs. On July 31, 2009 the U.S. Food and Drug Administration (FDA) approved and expanded the use for ISENTRESS®. ISENTRESS can now be used in the treatment of adult patients starting HIV-1 therapy for the first time (treatment-naïve), as well as in treatment-experienced adult patients. ISENTRESS is used in combination with other antiretroviral (ARV) medicines for the treatment of HIV-1 infection in adult patients.

With the announcement of Merck & Co.’s head of vaccine retirement effective Nov. 1 2009, this could be beneficial to the company considering it has been plagued by management decisions that lead to manufacturing deficiencies cited by the Food and Drug Administration which reduced sales significantly. During March 2009 Merck unanimously approved a $41.1 billion acquisition of partner drug maker Schering-Plough Corp. of Kenilworth, N.J. This merger will lead to cost-cutting and give Merck a better edge over the drug industry.

With a cost-cutting merger on the way and reorganization at the management level to come, analysts at Yahoo Finance still estimate a profit margin of 24.59% and 5.0% earnings for the next year making Merck hot stock to buy with a mid to high level of risks.

We wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.