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| PRIME
STOCK NEWSLETTER FOR DECEMBER 19th, 2005 |
Position
Statement: In our Prime
Recommendation Letter we attempt to identify the
recommendation with the highest probability of
moving higher. We recommend that stop orders
be placed at the time of purchase, and once
the position has moved profitable we recommend
a stop be placed a minimum of $0.375 above the
purchase price and moved higher as the position
moves higher. |
|
Today’s Comments: The overall
market finished Friday slightly lower. The overall
trend of the market continues to remain positive,
the economy remains strong. As a result, I am
expecting continued upward movement through
the end of the year. The Bottom Line:
The market should move higher.
|
|
Recommendation:
Capital
One Financial 'COF' |
| Company:
Capital One Financial |
Symbol:
'COF' |
Closing
Price: $85.74 |
Web
http://www.capitalone.com
|
YH: $86.00
YL: $69.09 |
EPS: $6.63
P/E: 13 |
| Shares
Outstanding: 266 Million |
Forecasted
EPS: $7.69 |
Market Cap.:
$23 Billion |
|
| Dividend:
$0.11 |
Yield:
0.10% |
Aver.
Daily Trading Volume: 2.6
Million Shares |
|
|
| Price Targets:
$97.47 and then $98.87 |
Downside Stop:
$85.03 /share |
| Options Rec.:
January 85 Calls @ $3.10/contract |
Options
Symbol: COFAQ |
|
Company Description:
Capital One
Financial Corporation operates as a
holding company, which provides various
consumer financial products and services,
primarily in the United States. The
company, through its subsidiary, Capital
One Bank, offers credit card products
and accepts retail deposits, including
certificates of deposit, money market
accounts, and individual retirement
accounts. Its other subsidiary, Capital
One, F.S.B. offers consumer and commercial
lending, and consumer deposit products.
The company, through Capital One Auto
Finance, Inc., offers automobile and
other motor vehicle financing, including
financing for the purchase of new and
used vehicles, as well as refinancing
of existing motor vehicle loans. Capital
One Financial also manages installment
lending, healthcare financing, and small
business lending activities. In addition,
the company invests in the U.S. Treasury
and other U.S. government agency obligations,
collateralized mortgage obligations,
and mortgage backed securities. Capital
One Financial also operates in the United
Kingdom and Canada. The company is headquartered
in McLean, Virginia.
|
|
Our
Analysis: The shares of Capital One
Financial 'COF' set a new yearly closing
high on heavier than normal trading volume
Friday. In the process they completed
a series of "cup patterns" with
measured moves to our stated price targets.
I see downside support on the shares of
'COF' at $85.44/share, and have set my
stops accordingly at $85.03/share. |
|
|
|
| INDICES |
Dow
Jones Industrial Average (INDU):
Closed @ 10,875.59 Last Signal:
Called Higher with the close of 10,823.72 on December
13th. Current Expectations:
After feeling that we would see some profit taking
in the Dow following its rise above 10,800 in
late November, I now think that weakness has passed
and we will resume our move upwards towards the
end of the year. I am expecting the Dow Jones
Industrial Average to move higher and test 10,940.55
on a closing basis. |
|
S&P
500 (SPX): Closed
@ 1,267.32 Last Signal: Called higher
with the close of 1,267.43 on December 13th.
Current Expectation: I am expecting the S&P
500 to continue to move higher and test
1,312.54 on a closing basis.
|
|
NASDAQ
100 (NDX): Closed
@ 1,688.68 Last Signal: Called
Higher with the close of 1,705.77 on December
13th. Current Expectations: I am expecting
the NDX to continue to move higher and test 1,720.91
on a closing basis. |
|
CBOE
Ten Yr Treasury Index (TNX):
Closed @ 4.448% Last Signal:
Called Higher after the close of trading on November
30th with a close of 4.500% Current Expectations:
This index should move higher and test then 4.6579%
on a closing basis. NOTE:
With yesterday's trading there is a chance we
may see a trend reversal in the TNX. |
|
Stocks
Looking Higher |
LUV,
BSC, STXN, MHS, VRTX, MSTR, SNA, FLS, ABC, RHAT,
JLL, COF, GOOG, SNDK, JPM |
|
Stocks Looking Lower |
MSFT,
DELL, XOM, AAPL, QCOM, MOT, DIS, GM, HPQ, VLO,
TXN, DOW |
|
| Yesterday's
Edition of the Prime Stock Newsletter |
The
Sterling Investment series of newsletters is produced
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or stock mentioned in this report please contact
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If you would like to contact us our # is 800-275-6901,
fax # (404)-816-8830 Email address is: enelson@sterlinginvestments.com
Sterling Investment Services may hold positions
in the securities recommended or may be providing
consulting services to the companies mentioned
within this report. |
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1992-2005 Sterling Investment Services, Inc.
P.O. Box 191767, Atlanta, GA. 31119-1767
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