Todays Stocktalk

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The Red Roadmaster’s US Market Monthly Re-cap + Stock Talk ™ 15 February 2010 Date Line: Bangkok, Thailand You can now follow us on Twitter please go to http://twitter.com/EbelingHefferna and join in. Tech sector leadership helped stocks trim losses stemming from a stronger "Greenback" Re-cap of the US Stock Market Action for the Week ending 12 February 2010 Despite its inability to break into positive ground, the S&P 500 was able to settle the week with a 0.9% gainer, marking s its 1 st weekly advance in 5 weeks. On the Day: The DJIA lost 126.29 pts, or 1.24%, to close at 10,017.90, the S&P 500 gave up11.63 pts, or 1.08%, to close at 1,066.84, and the NAS tallied up a minus 15.77 pts, or 0.72%, to end the session at 2,161.64. On the Week: Despite its inability to break into Green Territory, the S&P 500 was able to settle the week with a 0.9% gain marking its 1st weekly advance in 5 weeks. US economic data is coming in mixed: consumer sentiment slipped in early February, but business inventories fell unexpectedly in December, and sales at retailers rose more than expected in January. Volume and Breadth: Trading volume was strong on Friday as the number of shares exchanged on the NYSE exceeded the recent averages. The spike in the action came ahead of a 3 day US holiday weekend for the markets, which a closed Monday in observance of Presidents Day. Advancing Sectors: Tech (+0.1%) 1

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Red Roadmaster Stock Talk

Transcript of Todays Stocktalk

Page 1: Todays Stocktalk

The Red Roadmaster’s US Market Monthly Re-cap + Stock Talk ™

15 February 2010 Date Line: Bangkok, Thailand

You can now follow us on Twitter please go to http://twitter.com/EbelingHefferna and join in.

 Tech sector leadership helped stocks trim losses stemming from a stronger "Greenback"

 Re-cap of the US Stock Market Action for the Week ending 12 February 2010

Despite its inability to break into positive ground, the S&P 500 was able to settle the week with a 0.9% gainer, marking s its 1st weekly advance in 5 weeks.

On the Day: The DJIA lost 126.29 pts, or 1.24%, to close at 10,017.90, the S&P 500 gave up11.63 pts, or 1.08%, to close at 1,066.84, and the NAS tallied up a minus 15.77 pts, or 0.72%, to end the session at 2,161.64.

On the Week: Despite its inability to break into Green Territory, the S&P 500 was able to settle the week with a 0.9% gain marking its 1st weekly advance in 5 weeks.

US economic data is coming in mixed: consumer sentiment slipped in early February, but business inventories fell unexpectedly in December, and sales at retailers rose more than expected in January.

Volume and Breadth: Trading volume was strong on Friday as the number of shares exchanged on the NYSE exceeded the recent averages. The spike in the action came ahead of a 3 day US holiday weekend for the markets, which a closed Monday in observance of Presidents Day.

Advancing Sectors: Tech (+0.1%)

Declining Sectors: Utilities (-0.7%), Industrials (-0.7%), Energy (-0.6%), Telecom (-0.5%), Financials (-0.3%), Health Care (-0.3%), Consumer Staples (-0.2%), Materials (-0.1%)

Unchanged: Consumer Discretionary

Stocks to Watch Tuesday

The ALLSTATE Corp. (ALL), JDS Uniphase Corporation (JDSU), Motorola (MOT), Office Depot (ODP), Saks Incorporated (SKS).

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The Allstate Corporation (ALL) Up-date 3 Last Look: December 21, 2009

February 16, 2010

Paul A. Ebeling, Jnr. Analyst

Today, let’s look at The ALLSTATE Corp. (ALL), the large US insurance company, from a Technical POV. The overall indications, after Friday’s (February 12) market action, are Neutral: in the near term Bearish mid-term, Neutral., and long term Neutral.. The recent candlestick analysis is: Bullish.

**Chart by: http://www.stockta.com

Latest News and Opinion: Friday Options Recap: MOT, ALL, BWLD, BONT

http://seekingalpha.com/article/188360-friday-options-recap-mot-all-bwld-bont?source=yahoo

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Friday’s Market Action Close 29.53 + .12 Volume 5,884,400/shrs

There is a Bullish Engulfing Candle on February 11, and no Gaps open up or down on the Chart, the near term resistance is 29.98, support at 29.45, and the 50 day (EMA) exponential moving average is 29.78.

This is The Allstate Corporation (ALL): the company engages in the personal property and casualty insurance business, as well as in the life insurance, retirement, and investment products business in the United States and Canada. It operates in two segments: Allstate Protection and Allstate Financial. The Allstate Protection segment sells private passenger auto and homeowner’s insurance under ‘Encompass’ and ‘Deerbrook’ brand names primarily through agencies. Allstate Financial segment provides life insurance, retirement and investment products, and voluntary accident and health insurance products to individual and institutional customers. Its principal individual products comprise deferred, immediate, and indexed fixed annuities; interest-sensitive, traditional, and variable life insurance; and voluntary accident and health insurance. This segment markets its products through multiple intermediary distribution channels, including agencies and financial specialists, independent agents, banks, broker-dealers, and specialized structured settlement brokers. The Allstate Financial segment also offers various banking products and services consisting of certificates of deposit, money market accounts, savings accounts, checking accounts, and agency loans. The Allstate Corporation was founded in 1931.

Competitive Landscape

Demand is driven by demographics and commercial transactions. Demand is also driven by legal or financial requirements. Consumers are usually required by states to buy auto insurance and by lenders to buy homeowners insurance, for example. The profitability of individual companies depends on effective marketing and on the ability to accurately estimate future payments. Large companies have big economies of scale in administration and in access to capital, as well as advertising and marketing. Small companies can compete successfully by specializing in particular products or industries. Average annual revenue per worker is around US$400,000, the industry is not labor-intensive.

Insurance Carriers Industry ForecastThe output of US insurance, which is an indicator for insurance carriers, is forecast to grow at an annual compounded rate of 1% between 2008 and 2013. Data Sourced: December 2009

Allstate Corp. (HQ)

Thomas J. Wilson II, Chairman, Chief Exec. Officer and President,

2775 Sanders RoadNorthbrook, IL 60062United States Phone: 847-402-5000Fax: 847-402-2351

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http://www.allstate.com

JDS Uniphase Corporation (JDSU) Up-date 5 Last Look: December 7, 2009

February 16, 2010

Paul A. Ebeling, Jnr. Analyst

Today, let’s look at JDS Uniphase Corporation (JDSU), suppliers of network monitoring and test instruments, from a Technical POV. The overall indications, after Friday’s (February 12) market action, are Bullish: in the near term Bullish, mid-term Bullish, and long term Neutral. The recent Candle Stick analysis is: Bullish

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**Chart by: http://www.stockta.com

Latest News and Opinion: Movers roundup: JDS Uniphase shares rise on Agilent acquisition, McAfee gains on 4Q sales http://finance.yahoo.com/news/Movers-roundup-JDS-Uniphase-apf-474432974.html?x=0&.v=1

Friday’s Market Action Close 9.25 + .57 Volume 13,651,100/shrs

There is a Bullish Engulfing Candle on February 10, and two Gaps open up between November 6 and 9, 2009 at 6.14/6.60, the near term resistance is 9.28, support at 9.03, and the 50 day (EMA) exponential moving average is 8.14.

This is JDS Uniphase Corporation (JDSU): Through a series of acquisitions, primarily suppliers of network monitoring and test instruments, the company reorganized into three main businesses. Communications Test & Measurement consists of JDSU's test and measurement instruments acquisitions. Optical Communications makes components, modules, and equipment used to build fiber-optic telecommunications, data, and cable television networks. Advanced Optical Technologies contains

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JDSU's Flex Products and Custom Optics businesses. JDSU sells to customers in the communications, commercial, consumer, and military markets.

The Competitive Landscape

The industry depends on purchases from businesses, telephone companies, cable companies, data communications providers, and TV and radio broadcasters. Profitability for individual companies is linked to technical innovation and the ability to secure high-volume contracts from large customers. Small companies can be successful if they make highly specialized products. There are large economies of scale in manufacturing standard products, but many products are specialized and produced in small manufacturing plants. Annual revenue per employee in a large plant varies from US$500,000 to US$1MM.

Telecommunications Equipment Manufacturers Industry Forecast

The output of US communication equipment manufacturing is forecast to grow at an annual compounded rate of 2% between 2008 and 2013.

JDS Uniphase Corporation (HQ)

Chairman Martin A. (Marty) Kaplan

430 North McCarthy BoulevardMilpitas, CA 95035United States Phone: 408-546-5000Fax: 408 546-4300

http://www.jdsu.comt

JDS Uniphase Subsidiaries American Bank Note Holographics, Inc.da Vinci Systems, LLC

Motorola (MOT) Up-date 5 Last Look: February 4, 2010

February 16, 2010

Paul A. Ebeling, Jnr. Analyst

Today, let’s look at Motorola (MOT), a top choice for mobile phone users worldwide, from a Technical POV. The overall indications, after Friday’s (February 12) market action, are Neutral: in the near term Neutral, mid-term Neutral, and long term Bearish. The recent candlestick analysis is: Neutral

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**Chart by: http://www.stockta.com

Latest News and Opinion: Motorola Finally Starts to Get It, Should Double From Here

http://seekingalpha.com/article/188520-motorola-finally-starts-to-get-it-should-double-from-here?source=yahoo

Friday’s Market Action Close 7.15 + .50 Volume 89,737,200/shrs

There is a DOJI on December 7, and Gap open up on July 30, 2009 at 6.77/6.98 the near term resistance is 9.32, support at 8.53, and the 50 day (EMA) exponential moving average is 8.33.

This is Motorola (MOT): Motorola is still a top choice for mobile phone users worldwide despite flagging handset sales. The company is the #3 manufacturer of wireless telephone handsets (behind leaders Nokia and Samsung) and it also sells wireless network infrastructure equipment such as cellular transmission base stations and signal amplifiers. Motorola's home and broadcast network products include set-top boxes, digital video recorders, and network equipment used to enable video broadcasting, IP telephony, and high-def television. Its products for business and government customers consist mainly

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of wireless voice and broadband data systems used to build private networks and public safety communications systems.

Competitive Landscape

The industry depends on purchases from businesses, telephone companies, cable companies, data communications providers, and TV and radio broadcasters. Profitability for individual companies is linked to technical innovation and the ability to secure high-volume contracts from large customers. Small companies can be successful if they make highly specialized products. There are large economies of scale in manufacturing standard products, but many products are specialized and produced in small manufacturing plants. Annual revenue per employee in a large plant varies from US$500,000 to US$1M.

Telecommunications Equipment Manufacturers Industry Forecast

The output of US communication equipment manufacturing is forecast to grow at an annual compounded rate of 2% between 2008 and 2013. Data Sourced: December 2008

Motorola Inc. (HQ)

Gregory Q. Brown , Co-Chief Exec. Officer, Pres, Exec. Director, Co-Chairman of Exec. Committee and Chief Exec. Officer of Broadband Mobility Solutions

1303 East Algonquin RoadSchaumburg, IL 60196United States Phone: 847-576-5000Fax: 847-576-5372

http://www.motorola.com

Office Depot, Inc. (ODP) Up-date 2 Last Look: January 11, 2010

February 16, 2010

Paul A. Ebeling, Jnr. Analyst

Today let’s look at Office Depot (ODP), the World's #2 chain of office supply stores, from a Technical POV. The overall analysis after Friday’s (February 12) market action is Neutral: in the near term Neutral, mid-term Neutral, and long term Neutral. The recent Candle Stick analysis is: Bullish.

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**Chart by: http://www.stockta.com

Latest News and Opinion: Women’s Business Enterprise National Council (WBENC) Names Office Depot One of America’s Top Corporations for Women’s Business EnterprisesCompany Joins Elite Group of 20 Companies on Prestigious List

http://finance.yahoo.com/news/Office-Depot-Recognized-for-bw-1046190697.html?x=0&.v=1

Friday’s Market Action Close 6.17 +.35 Volume 8,614,800/shrs

There is a Bullish Engulfing Candle on February 11, and no Gaps open up or down on the Chart, the near term resistance is 6.28, support at 6.12, and the 50 day (EMA) exponential moving average is 6.22.

This is Office Depot (ODP): The Company operates the world's #2 chain of office supply stores (behind Staples), the company sells office supplies through more than 1,150 company-owned and licensed locations throughout North America and at about another 160 locations worldwide. The big-box retail stores sell to both consumers and small and medium-sized businesses. In addition to typical office

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supplies, its stores offer computer hardware and software, office furniture, art and school supplies, and printing and copying services. Office Depot also sells goods through catalogs and call centers, the Internet, and a contract sales force.

Competitive Landscape

Demand is closely tied to the level of business activity. The profitability of individual companies depends on merchandising and an efficient delivery system. Big companies have economies of scale in distribution because they can supply a wide range of products to the same customer. Small companies can compete successfully by distributing specialty products or providing superior customer service. Operations are highly automated. Within the wholesale segment of the industry, annual revenue per employee is about US$300,000.

Office Supply and Paper Distribution Industry ForecastDomestic demand for US paper and paperboard mills, stationery products, and non-paper office supplies, an indicator for wholesaler demand, is forecast to grow at an annual compounded rate of 1% between 2008 and 2013. Data Sourced: December 2009

Office Depot, Inc. (HQ)

Steve Odland Chairman and Chief Exec. Officer

2200 Old Germantown RoadDelray Beach, FL 33445United States Phone: 561-438-4800Fax: 561-438-4400

http://www.officedepot.com

Saks, Incorporated. (SKS) Up-date 2 Last Look: November 30, 2009

February 16, 2010

Paul A. Ebeling, Jnr. Analyst

Today, let’s look at Saks Incorporated (SKS), the US fashion retailer, from a Technical POV. The overall indications, after Friday’s (February 12) market action, are Neutral: in the near term Neutral, mid-term, Neutral., and long term Neutral. The recent Candle Stick analysis is: Neutral

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**Chart by: http://www.stockta.com

Latest News and Opinion: Saks proposes to declassify board

http://finance.yahoo.com/news/Saks-proposes-to-declassify-apf-1597075827.html?x=0&.v=1

Friday’s Market Action Close 6.77 +.09 Volume 3,456,200/shrs

There is a Inverted Hammer on February 8, and no Gaps open up or down on the Chart; the near term resistance is 6.84, support at 6.60, and the 50 day (EMA) exponential moving average is 6.64.

This is Saks Incorporated (SKS): a fashion retail company, together with its subsidiaries, operates fashion retail stores under the brand names of Saks Fifth Avenue (SFA), Off Fifth, and Club Libby Lu (CLL) offering a range of luxury fashion apparel, shoes, accessories, jewelry, cosmetics, and gifts. SFA stores are principally free-standing stores in shopping destinations or anchor stores in upscale regional malls. Off Fifth stores are primarily located in upscale mixed-use and off-price centers. CLL stores consist of mall-based specialty stores, targeting girls aged 4-12 years old. As of August 2, 2008, Saks operated 53 SFA stores, 48 Off Fifth stores, and 98 CLL specialty stores, which include 78 standalone stores and

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20 store-in-stores. The company also sells its products through catalog or Internet at www.saks.com. It has a credit card strategic alliance with HSBC Bank Nevada. The company was founded in 1919 and is headquartered in New York, New York.

The Competitive Landscape

Demand is driven by consumers’ personal income. Profitability of individual companies depends on effective marketing to build a customer base. Larger firms enjoy central purchasing efficiencies and economies of scale in inventory management, customer service and telecommunications. Smaller firms compete on outstanding customer service and providing niche products. Average annual revenue per worker for a typical company is about US$400,000.

Industries Where Saks Fifth Avenue Competes

RetailDepartment Stores (primary)Apparel & Accessories RetailFootwear & Related Products RetailNonstore RetailInternet Retail

Saks 5th Avenue, Inc. (HQ)

Exec. Chairman and Chief Exec. Officer Stephen I. Sadove12 E. 49th St.New York, NY 10017 United State

http://www.saksincorporated.com

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DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE OR IN OUR NEWSLETTERS. Red Roadmaster is not registered as a securities broker-dealer or an investment advisor either within the US Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. The information contained on our website or in any of our newsletters should be viewed as commercial advertisement and is not intended to be investment advice. Any information found on our website, or in any of our newsletters is not provided to any particular individual with a view toward their individual circumstances. The information contained on our website, and in any newsletter we distribute, is not an offer to buy or sell securities. We distribute opinions, comments, and information free of charge exclusively to individuals who wish to receive them.

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Information contained in the Redroadmaster Stock Talk report will contain “forward looking statements” as defined under section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

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