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| PRIME
STOCK NEWSLETTER FOR July 31st, 2009 |
(If you do not see today's edition, please hit the refresh button) |
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. |
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Today's Comments: The overall market finished Thursday solidly higher on combination of positive earnings results and better than expected jobless claims' all though I am somewhat confused as to how jobless claims in the five hundred thousand range is better than expected....? The vast majority of the sector indices I track moved higher on the day. The strongest sectors were the Cyclicals, Banking, Chemicals, Natural Gas, Commodities, Insurance, Telecom, Disk Drive Manufacturers, Broker/Dealers, Transports, Retailer, Oil & Gas, and High Tech indices. There was weakness in Biotech and Healthcare Providers. Bonds were mixed as short term rates moved higher and longer term rates moved lower.
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| Sterling
Calendars for July 31st, 2009 |
| Date: |
Comments: |
| 07/30 |
Colgate-Palmolive 'CL' reports earnings. Time N/A. Est. $1.05 |
| 07/30 |
Genworth Financial 'GNW' reports earnings. Time N/A. Est $0.15 |
| 07/30 |
Walt Disney Co. 'DIS' reports earnings at 4:01pm ET. Est. $0.50 |
| 07/31 |
AutoNation 'AN' reports earnings. Time N/A. Est. $0.24 |
| 07/31 |
Chevron 'CVX' reports earnings. Time N/A. Est. $0.95 |
| 07/31 |
Sempra Energy 'SRE' reports earnings at 9:00am ET. Est. $0.97 |
The
full earnings calendar for this
week can be found (here) |
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Recommendation: BUY
Dollar Tree Stores, Inc. 'DLTR ' |
| Company: Dollar Tree Stores, Inc. |
Symbol: 'DLTR' |
Closing
Price: $46.47 |
Web: www.dollartreestores.com |
YH: $47.28 YL: $27.61 |
EPS: $2.71 P/E: 17 |
Shares
Outstanding: 90 Million |
Forecasted
EPS:.$2.97 |
Market Cap.: $4.2 Billion |
| Dividend: N/A |
Yield: N/A |
Aver.
Daily Trading Volume: 950,000 Shares |
|
| Price Targets: $51.89, and then $69.24 |
Downside Stop: $45.81/share |
| Options Rec.: August 45Calls @ $2.40/contract |
Options
Symbol: DTR HR |
Additional
information on Dollar Tree Stores, Inc. 'DLTR' can be found (here)
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Company Description: Dollar Tree, Inc., through its subsidiaries, operates discount variety stores in the United States. Its stores offer merchandise at the fixed price of $1.00. The company operates stores under the names of Dollar Tree, Deal$, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, basic health, and beauty care; household consumables, such as paper, plastics, and household chemicals, as well as frozen and refrigerated food; variety merchandise, which includes toys, durable house wares, gifts, fashion health and beauty care, party goods, greeting cards, apparel, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise, as well as summer toys, and lawn and garden merchandise. As of January 31, 2009, the company owned and operated 3,591 discount variety retail stores in 48 states. Dollar Tree, Inc. was founded in 1986 and is headquartered in Chesapeake, Virginia..
Chart updates daily |
A
full list of the news headlines
for Dollar Tree Stores, Inc. 'DLTR' can
be found (here) |
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Our Analysis: The shares of Dollar Tree Stores, Inc. 'DLTR' set a new yearly closing high yesterday. In the process they completed a small cup pattern with a measured move to our lower price target of $5.89/share. On a longer term basis, the shares of 'DLTR' have completed a long term cup pattern with a measured move to our upper price target of $69.24/share. I see downside support on the shares 'DLTR' @ $46.24/share, and have set my stops accordingly @ $45.81/share.
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Stocks
Looking Higher |
SBUX, ORLY, MHS, AN, BBBY, CERN, AAP, DISCA, LZ, MV, CDSI, CSCO, HIG, DOW, T, VZ, HPQ, KNC, AAPL, CAT, HD, LOW, WYNN, AVP
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Stocks Looking Lower |
YHOO, INTC, XOM, PCS, MCD, CL, EK
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| Yesterday's
Edition of the Prime Stock Newsletter |
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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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