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PRIME STOCK NEWSLETTER FOR NOVEMBER 17th, 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.

Today's Comments: The overall market moved solidly higher on Monday in a broad based move that saw the vast majority of the sector indices I track move higher on the day. The strongest sectors were the Oil Services, Gold/Silver, Transports, Cyclicals, Commodities, Natural Gas, Airlines, Semiconductors, Oil & Gas, Pharmaceuticals, Chemicals, Banking, Healthcare, Networking, Broker/Dealer, Telecom indices. There was strength in bonds as interest rates moved lower. Additionally Oil was higher by $2.54 to $78.89/barrel, and Gold was sharply higher, up $23.70 to $1,140.40/ounce.

Please note: that I will be traveling on the 18th & 19th of this week, and has a result I will not be publishing a Prime Stock Newsletter for the 19th, but should resume publication on the 20th.


Sterling Calendars for the Week of November 17th, 2009
Economic Calendar
Date Est. Time Release

For

Consensus Prior
11/17 8:30am Core PPI Oct. 0.1% (0.1%)
11/17 8:30am PPI Oct. 0.5% (0.6%)
11/17 9:00am Net Long Term TIC Flows Sep. $30.0B $30.0B
11/17 9:15am Capacity Utilization Oct. 70.8% 70.5%
11/17 9:15am Industrial Production Oct. 0.4% 0.7%
11/18 8:30am Housing Starts Oct. 600K 590K
11/18 8:30am Building Permits Oct. 580K 573K
11/18 8:30am Core CPI Oct. 0.1% 0.2%
11/18 8:30am CPI Oct. 0.2% 0.2%
11/18 10:30am Crude Inventories 11/13   1.76M
11/19 8:30am Initial Claims 11/14 504K 502K
11/19 8:30am Continuing Claims 11/13 5,600K 5,631K
11/19 10:00am Leading Indicators Oct. 0.4% 1.0%
11/19 10:00am Philadelphia Fed. Nov. 12.0 11.5

Recommendation: BUY

Rockwell Automation, Inc. 'ROK'

Company: Rockwell Automation, Inc. Symbol: 'ROK' Closing Price: $45.25

Web: www.rockwell.com

YH: $45.59 YL: $17.50 EPS: $2.22 P/E: 20

Shares Outstanding: 143 Million

Forecasted EPS:.$2.32 Market Cap.: $6.5 Billion
Dividend: $1.16 Yield: 2.70% Aver. Daily Trading Volume: 1.40 Million Shares  
Price Targets:  $48.74 & then $52.87 Downside Stop:  $44.11/share
Options Rec.: December 45 Calls @ $2.15/contract Options Symbol: ROK L45

Additional information on Rockwell International, Inc. 'ROK' can be found (here)

Company Description: Rockwell Automation, Inc. provides industrial automation power, control, and information solutions primarily in the United States. The company’s Architecture and Software segment’s products include programmable logic controllers, electronic operator interface devices, electronic input/output devices, communication and networking products, industrial computers, and condition based monitoring systems; and information-enabled Logix controllers. Its products also include configuration and visualization software used to operate and supervise control platforms; and process control software and manufacturing execution software that addresses information needs between the factory floor and a customer’s enterprise business system, as well as rotary and linear motion control products, sensors, and machine safety components. This segment serves food and beverage; automotive; oil and gas; metals and mining; and home, health, and beauty markets. The company’s Control Products and Solutions segment offers low voltage and medium voltage electro-mechanical and electronic motor starters, motor and circuit protection devices, AC/DC variable frequency drives, contactors, push buttons, signaling devices, termination and protection devices, relays and timers, and condition sensors; packaged solutions, including configured drives, motor control centers, and custom engineered panels for OEM and end-user applications; automation and information solutions, including custom-engineered hardware and software systems for discrete, process, motion, drives, and manufacturing information applications; and various services, such as life-cycle support, including multi-vendor customer technical support and repair, asset management, training, and predictive and preventative maintenance services. This segment serves food and beverage, automotive, oil and gas, metals and mining, and pulp and paper industries. Rockwell Automation was founded in 1928 and is based in Milwaukee, Wisconsin..

Chart for Mosaic Company

Chart updates daily

Recent News:
11/09 Rockwell Automation fiscal 4Q profit falls AP (Mon, Nov 9)
  11/04 Rockwell Automation Declares Quarterly Dividend on Common Stock Business Wire (Wed, Nov 4
  09/29 Rockwell Automation upgraded by Barclays Capital Briefing.com (Tue, Sep 29)
A full list of the news headlines for Rockwell Automation, Inc. 'ROK' can be found (here)

Our Analysis: The shares of Rockwell Automation, Inc. 'ROK' set a new yearly closing high yesterday on slightly higher than normal trading volume. In the process they completed a "cup pattern" with a measured move to our lower price target of $48.74/share. This is a bullish trading signal. If the shares of 'ROK' close above $48.74/share, as I think their is a good chance they will, then they should continue to move higher and test $52.87/share, the point from which they gapped lower on the open of trading in late June of this year. I see downside support on the shares of 'ROK' @ $44.51/share, and have set my stops accordingly @ $44.11/share.


Stocks Looking Higher
Pretty much everything
Stocks Looking Lower
MBI

Yesterday's Edition of the Prime Stock Newsletter
The Sterling Investment series of newsletters is produced by Sterling Investment Services, Inc.  If you would like to receive a chart on any index or stock mentioned in this report please contact us at the below mentioned numbers.  We also offer custom research reports on any stock investment that you may desire information on.  To receive further information on these services please visit our web page at:  www.sterlinginvestments.com   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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