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The Sterling Small Cap. Review for the week of September 22nd, 2008 is now available. In this edition of the Small Cap. Review we take a look at a growing company that is trading with a P/E ratio of 2.33 and at 1/3 of book value.

Sterling Investment Services has recently initiated research coverage on WWA Group, Inc. We feel that this company has excellent long term potential and is worth taking a serious look at. Additional information on WWA Group, Inc. (OTC BB: WWAG) can be found (here)


The September 29th edition of the Sterling Weekly is now available. A copy of which can be viewed (here). Please feel free to sign up to receive this edition of the Sterling Weekly when it is available.

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Hottest Deals of the Week

PRIME STOCK NEWSLETTER FOR September 26th, 2008
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 Thursday strongly higher in a broad based move that saw the vast majority of the sector indices I track move higher on the day. Strongest sectors on the day were the Technology, Oil & Gas, Computers, Banking, Retailers, Insurance, Pharmaceuticals, Healthcare providers, Commodities, and Consumer indices. The market remains in a continuing state of flux, with major events unfolding continuously and changes occurring without warning. The entire financial system is in disarray at this point in time with people pinning their hopes for a recovery on Congress, which has got to be the mother of all Hail Mary passes. Let us not forget that while President Bush may not be the most popular politician in America right now, Congress's approval rating is about half of the President's. What the US economy needs right now is real structural reform. Things I have been writing about, and will be continuing to write about in the Sterling Weekly. Unfortunately, I do not see this happening with the current Congress; and as much as I support the principals behind the current plan, I do agree with several the Congressional Republicans such as Senator Shelby who are pressing for needed reform. Until we get something concrete and passed, the trend of the market is going to remain lower. The Bottom Line: The overall market should move lower.


Sterling Calendar for September 26th, 2008
Economic Calendar
Date Est. Time Release For

Briefing.com

Consensus Prior
09/26 8:30am Chain Deflator-Final Q2 1.2% N/A 1.2%
09/26 8:30am GDP-Final Q2 3.4% 3.4% 3.3%
09/26 10:00am Michigan Sent.-Rev. Sep. 74.0 N/A 73.1
Date: Comments:
09/26 KB Home 'KBH' reports earnings before the open. Est. ($1.25)
  The full earnings calendar for this week can be found (here)

Recommendation: SELL/SHORT

Alcoa, Inc. 'AA '

Company: Alcoa, Inc. Symbol: 'AA' Closing Price: $24.92
Web www.alcoa.com YH: $44.77 YL: $23.09 EPS: $2.42 P/E: 10.31

Shares Outstanding: 813 Million

Forecasted EPS:.$3.37 Market Cap.: $20.27 Billion
Dividend: $0.68 Yield: 2.7% Aver. Daily Trading Volume: 14.5 Million Shares  
Price Targets:  $22.85 and then $18.80 Upside Stop:  $25.59/share
Options Rec.: Jan 25 Puts @ $2.89/contract Options Symbol: AAME
Additional information on Alcoa, Inc. "AA'' can be found (here)

Company Description: Alcoa, Inc. engages in the production and management of primary aluminum, fabricated aluminum, and alumina worldwide. The company involves in the technology, mining, refining, smelting, fabricating, and recycling of aluminum. Its products include precision castings, industrial fasteners, consumer products, food service and flexible packaging products, plastic closures, and electrical distribution systems for cars and trucks. The company offers flat-rolled products, such as sheet and plate, foil products, and can reclamations; extruded and end products, including extrusion, tube, and architectural products; engineered solutions that comprise aerospace products, automotive components, Alcoa electrical and electronic solutions, castings, auto engineering products, and fasteners; and packaging and consumer products, which include flexible packaging, foodservice packaging, closures, and polymerization and extrusions. Alcoa�s products are used in aircraft, automobiles, commercial transportation, packaging, consumer products, building and construction, and industrial applications. The company has bauxite mining interests in Australia, Brazil, Guinea, Jamaica, and Suriname. It also has a joint venture with China International Trust & Investment Company to produce aluminum rolled products in China; and with Elkem Aluminium ANS, a supplier of metals and materials. The company was founded in 1888 and is based in New York, New York.

Chart for Sun Microsystems

Chart updates daily

Recent News: Sept. 19th, 2008 Alcoa Announces Dividend Business Wire (Fri, Sep 19)
  Sept. 18th, 2008 Aluminum Producers Change Plans as Prices, Demand Fall  at The Wall Street Journal Online (Thu, Sep 18)
Sept. 17th, 2008 Alcoa upgraded by Soleil Briefing.com (Wed, Sep 17)
A full list of the news headlines for Alcoa, Inc 'AA'' can be found (here)
Our Analysis: The shares of Alcoa, Inc. 'AA' set a new multi-year closing year low yesterday on heavier than normal trading volume. This is a very bearish trading signal. The shares of 'AA' are also a component of the Dow Jones Industrial Average 'INDU' which I have rated as moving lower from their current levels. In the process of setting a new multiyear closing low yesterday the shares of 'AA' closed below a key support level. As a result they should continue to move lower and test $22.85/share, a point of support establishing in early October of 2005. If the shares of 'AA' close below that level, then they should continue to move lower and test $18.80/share, another point of support that was established in March of 2003. I see upside resistance on the shares of 'AA' @ $25.17/share, and have set my stops accordingly at $25.59/share.

Stocks Looking Higher
ESSA, FL, MYGN, SWS, JPM, XOM, T, HAL, MRK, VLO, TSO, NVDA

Stocks Looking Lower
WM, INTC, WFC, ABK, GM, COF, AA, X, SBUX, JBL, UTX, CDNS, DE

Yesterday's Edition of the Prime Stock Newsletter
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