SHREVEPORT, La., Dec. 2, 2004 (PRIMEZONE) -- Stock-Letter-Daily.Com (http://www.stock-letter-daily.com - an affiliate site of StockPickReport, the web's only non-mainstream stock rating service), rates Intel, Texas Instruments Inc., Coca-Cola Company.
STOCKPICKREPORT RATINGS:
Intel (Nasdaq:INTC) - SELL
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=INTC
Google (AMEX:GOOG) - BUY
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=
Texas Instruments Inc (NYSE:TXN) - BUY
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=TXN
Coca-Cola Company (NYSE:KO) - WEAK SELL
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=KO
Thursday, December 2, 2004 StockPickReport Commentary
And You Thought You Had Problems?: The SEC suspended 26 companies from trading, today. This move was in response to the companies' failure to file financial reports correctly. The SEC makes these kind of suspensions from time to time, but not in the large number seen today.
Of particular interest is DrKoop.Com. You may recall that DrKoop.Com was one of the "high flying" internet stocks during the internet "bubble". Today, DrKoop.Com was suspended along with 25 other companies.
Now, imagine if you were an investor in one of those companies. Talk about "sleepless nights". Can you imagine what you'd feel like if a stock you held was suspended for two weeks. You can bet you'll see some lawsuits when this whole thing shakes out.
At the peak of the internet bubble, DrKoop.Com had a market cap of $1 Billion. Let's look at that with all the zeros: At the peak of the Internet bubble, DrKoop.Com had a market cap of $1,000,000,000.
The upshot is that, according to the Associated Press, C. Everett Koop (the "Dr" in DrKoop.Com), former U.S. surgeon general was only paid $10,000 for the use of his name.
One last thing: In bankruptcy proceedings the assets of DrKoop.Com were sold off. Most notably, the company's web domain names were sold for $186,000.
That was only a loss of 99.84%.
OVERBOUGHT NO MORE?
Uh, no.
Before "mainstream Wall Street" strains an elbow, patting itself on the back, we are not ready to jump on the bandwagon. Here's what one "analyst" had to say:
"Oil futures go down, stocks go up. I think that'll be a pattern for a long time, and the good news is that if we keep getting inventory reports like this, oil prices will be ready for a big correction downward," said Brian Belski, market strategist at Piper Jaffray. "Overall, this market has clearly turned to a growth mode over the past few months, and should continue to grow." (Source: http://biz.yahoo.com/ap/041201/wall_street_15.html)
But, in the same article came this:
"The dollar was again a concern, but was generally overlooked by investors in favor of the strong economic data. The dollar fell to a 12-year low against the British pound, while the euro continued its record-setting gains against the greenback."
We, at StockPickReport do not "overlook" the weak U.S. dollar. We also do not overlook the fact that while oil prices generally rose this last year, SO DID THE STOCK MARKET. The price to pay for the increased costs incurred to the US economy due to the sustained rise in oil prices has yet to be calculated.
You know, we probably sound like a broken record, but we find a more compelling case for caution right now than the unbridled gusto of, say, Brian Belski (see above).
If you are in any dollar-related stocks (retail, Internet, tech, etc) we believe that the "smart money" is in either profit-taking or capital preservation at this point.
Look at what the market has done every time Stochastics reached the current level. Note, too, that the last time RSI was at these levels, the market sold off to START THE YEAR, 2004. Notice also, that before the move down really took off, there was short move UP.
We could be wrong, but we are just not ready to say the market will continue higher at its current pace. Now, if you think this is "bad" news, or "negative", please understand that our take is based on - predominantly - the "black and white" view of standard technical analysis tools.
When the indicators point in the other direction, we will ABSOLUTELY make as big a point then about the relative "oversold" nature of the market. But, brace yourself - the atmosphere will probably be GLOOMY and DEPRESSING if you watch "the news". So, we will look as contrary then as we do now!
For More Commentary Go Here:
http://www.stock-letter-daily.com/index.htm
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If the links to our ratings above do not work, please use these:
Intel (Nasdaq:INTC) - SELL http://www.stockpickreport.com/rating.php?sym=INTC Google (AMEX:GOOG) - BUY http://www.stockpickreport.com/rating.php?sym= Texas Instruments Inc (NYSE:TXN) - BUY http://www.stockpickreport.com/rating.php?sym=TXN Coca-Cola Company (NYSE:KO) - WEAK SELL http://www.stockpickreport.com/rating.php?sym=KO