Stock Preacher

Intellon Corp. (Nasdaq: ITLN)

Intellon Corp. (ITLN), a leader in powerline communication (PLC) technology, designs and sells integrated circuits (ICs) that enable PCs, broadband modems, set-top boxes, gaming consoles, audio/video players, flat screen displays, security cameras and other electronics devices to communicate instantly over existing power lines , allowing consumers to create instant networks in their homes and small businesses. Aside from home networking, ITLN’s HomePlug® – compliant and other powerline ICs are also used in applications such as networked entertainment, Ethernet-over-Coax (EoC), smart grid management, and Broadband over Powerline (BPL) access.
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Popularity: unranked [?]

Credit Suisse Group AG switched its preference for government bonds in favor of stocks and raised its estimate for the Standard & Poor’s 500 Index by 14% to 1,050, citing improving economic indicators and earnings. Investors should increase holdings of global equities to “overweight” and reduce government bonds to “benchmark,” reversing a decision made in June, according to London-based global strategist Andrew Garthwaite. The VIX and investment- grade corporate bond spreads have returned to more “normal levels” and this will allow money market funds to buy into the stock market, Garthwaite told clients in a note today. Valuations on equities are “not expensive” and consensus estimates for earnings in the US are now being increased, something which precedes a rising stock market in the subsequent two to three months, he wrote. “Bonds no longer look attractive,” Garthwaite wrote. We expect “a positive macro surprise in the second half of the year. We believe that we are halfway through the first ‘V’ of an upward sloping W-shaped recovery, with a likely peak in the early Q-4.” Goldman Sachs Group Inc.’s David Kostin yesterday increased his estimate for the S&P 500 index, saying the benchmark for US equities will advance 15% from its June 30 level to 1,060 on Dec. 31, an increase from his prior projection of 940.

Popularity: 2% [?]

Savvy stock market strategists are seeing the up arrows as the Big Q on the Street is: how much further the Bull can Charge before it stalls and lays down?.
Some traders believe a pullback has got to come and that this week is as good as any for that to happen, because of the low trade volume of trading, but others, many others several strategists say in notes they see stocks moving higher warning the naysayers could be proven wrong, and that this could be the beginning of a new Bull Market and a above average one at that..
Goldman Sachs strategists said they see progress on a number of economic fronts and are now boosting their exposure to cyclical stocks. Laszlo Birinyi says, if you look at history, it looks like the market’s still moving higher.
Citigroup’s Levkovich, chief U.S. equities strategist, said the investment community is “almost shocked” by the near 30 percent rise in the S&P 500 since early March, and that the case is building for a second half of Y 2009 recovery, that many investors are ignoring the fundamentals and following only the technicals in here.

Since early March, financials have risen 74%; cyclical consumer discretionary are + 46%; industrials gained 44%, and materials are up 41%, as the defensive sectors are under-performing. The move higher in the stock market is boosting US consumer confidence. For that reason, the market is seeing much better that average movement higher. A Key factor is that there are many of investors who missed the moves and are sitting with large cash hordes, about US$9.2Trillion.

Laszlo Biriniy says the market’s 53-day gain and 10 percent move above the 50-day moving average are second only to the market’s performance in 1933. He also says in a note that the net advances over the past 10 days are the third strongest in market history, and he makes a case for even more gains.
Brown Brothers Harriman’s Brian Rauscher, a long-time Bear turned Bullish in early March. He was concerned last month that the market could be showing signs of moving too far, too fast. But last Friday when asked does he think the market will go higher. He answered: “May have take a deep breath to get through 900 (a day or so), but this market is moving higher.”

Popularity: 4% [?]

Sumner Redstone, the Chairman of CBS Corp, said last Wednesday that he believes that the US stock market is in the early stages of a new Bull Market. The octogenarian media mogul also said he has no plans to step down anytime soon or give up his controlling positions in CBS or Viacom. ”The one thing I would never do is lose control of CBS and Viacom,” he said, adding, “I have no intention of retiring or dying. I could live and work forever,” he said, attributing his robust health to antioxidants, exercise and a shot of Vodka a day.

Popularity: 3% [?]

With at announcement Fed Chairman Ben Bernanke is signaling that he clearly understands the severity of the US economic situation and is willing to take “all” necessary action as he lives up to his nickname “Helicopter Ben.” In last week’s Federal Open Market Committee Meeting, the Fed announced that it would spend another US$1.1T to purchase debt securities, specifically Treasury notes, in open market operations. This is an extremely aggressive attempt to re-inflate the economy, and it should encourage bank lending, and the closest thing to running the US money printing press full on and throwing money out of helicopters…The consensus is that US Fed’s action will provide a necessary “kick” to the US economy and stock markets in the short term. Remember, take what the market gives.

The Big Q is that the long term effects from this action may cause even more problems. Steve Forbes once said: “If printing money alone can create wealth, then poverty stricken Zimbabwe (a country plagued by hyperinflation) would be the richest country in the world.” So in the short run, Bernanke’s actions will help stimulate the economy and the stock market, but the long-term picture isn’t bright.

Popularity: 5% [?]

It took me two to three years to figure out how to put the whole system together. It doesn’t happen overnight. For most people the learning curve is about the same. As the years go by, you should get better and better at stock selection, and the number of individual 7% or 8% losses should drop significantly. Plus, these small losses will be offset by much larger profits from your big winners.

Think of a number of controlled losses as your tuition to Wall Street. Most people think that investing in college degree is a sound decision. They don’t think of it as a waste of money because they have hopes of having that degree pay off in future success. Why should success in stock market by any different?

Anything worth succeeding at takes time to learn. Professional ballplayers are not made in three months and neither are successful investors. The only difference between the successful person and everyone else is determination and persistence.

Popularity: 1% [?]