You can read the original version online:
http://ymlp331.net/zzlIrh ——————————————————————————– September 30, 2012 Week & Month In Review…
Week & Month In Review For September 24 to September 28, 2012 Canadian Companies mentioned include:
* Lachian Star Ltd. (TSX:LSA) * PetroFrontier Corp. (TSX-Venture:PFC) * Fancamp Exploration Ltd. (TSX-Venture:FNC) * Yukon-Nevada Gold Corp. (TSX:YNG) * Condor Petroleum Inc. (TSX:CPI) U.S. Companies mentioned include:
* FuelCell Energy Inc. (NASDAQ:FCEL) * CytoDyn Inc. (OTCBB:CYDY) * Dex One Corp. (NYSE:DEXO) * CD International Enterprises Inc. (OTCBB:CDII) * Denison Mines Corp. (AMEX:DNN) * Omega Commercial Finance Corp. (OTCQB:OCFN) This week on AllPennyStocks.com:
* Article Published, September 25, 2012: Juniors DoMark and Respect Your Universe Getting Seasoned With the UFC (http://www.allpennystocks.com/aps_us/special-reports/297/juniors-domark-and-respect-your-universe-getting-seasoned-with-the-ufc.htm) (U.S. / CDN Company) * Article Published, September 25, 2012: Volume Surges on Amaya Gaming with Acquisition News (http://www.allpennystocks.com/aps_ca/special-reports/299/volume-surges-on-amaya-gaming-with-acquisition-news.htm) (CDN Company) * Article Published, September 26, 2012: Green Energy Solutions Advancing Waste Reduction Projects in Michigan and Puerto Rico (http://www.allpennystocks.com/aps_us/special-reports/298/green-energy-solutions-advancing-waste-reduction-projects-in-michigan-and-puerto-rico.htm) (U.S. Company) Video charts for the week:
* September 25th Technical Video Chart For PFC:CA. PetroFrontier has had five straight closes in the green, but finds itself at a tough resistance point heading into Tuesday`s open. The indicators show a shifting trend and momentum, so traders will be watching for the resistance to fall as the upside to the next resistance is 30 cents away. view:
( http://www.youtube.com/user/AllPennyStocks#p/a/u/1/QcphGGbcDVA ).
* September 26th Technical Video Chart For CYDY. They CytoDyn chart is a low float play that has risen above resistance at $1. The MACD and RSI show a strong shift in trend and momentum which puts this thinly-traded stock on watch for upward pressure towards primary resistance at $1.75. view:
( http://www.youtube.com/user/AllPennyStocks#p/a/u/1/MVOlxBiRQOQ ).
Follow AllPennyStocks.com on Twitter: Click here: ( http://www.allpennystocks.com/aps_common/twitter.asp ) to join AllPennyStocks.com on Twitter. Find out about the penny stocks to watch before anyone else, only on Twitter. Following AllPennyStocks.com is free, get all the details here: ( http://www.allpennystocks.com/aps_common/twitter.asp ).
WEEKLY & MONTHLY UPDATE -MARKETS FLAT AS QE3 GLEE FADES Stocks in North America were weak to bring to an end a third quarter riddled with economic concerns both here and abroad. Global turmoil accelerated this past week with violence rearing its ugly face in countries as protestors take to the streets to challenge government plans to fix broken economies. A calming seemed to be happening with the European Central Bank recently announcing plans to inject billions into EU countries teetering on bankruptcy, but anti-austerity riots in Greece escalated to their largest – and most dangerous – level yet; ending any respite. To the west, protests in Spain left more than 60 people injured and led to the detention of 34 others.
Protestors in Greece are furious over ongoing cuts as the country looks to shrink its debt mountain and get its next tranche of 31.5 billion euros as part of its larger bailout package. Greece will be unveiling its draft budget for 2013 tomorrow which is expected to include deeper cuts into public spending – including salaries, pensions and welfare benefits – as Greece tightens its fiscal belt in order to impress the European Commission, ECB and International Monetary Fund so they will release the next batch of funds. Greek Prime Minister Antonis has signed-off on the package of 11.5 billion euros ($14.3 billion U.S.) in spending cuts and now needs to get his coalition partners and parliament to agree to it.
More than 70,000 angry citizens marched on Syntagma Square in Athens in the first demonstration and general strike since the new Greek coalition took control in June. Riot police were met by protestors throwing petrol bombs, rocks and other debris at them. The general strike disrupted air travel, ferries, trains and shuttered the entire public sector.
With the chaos, investors are once again worried about Greece abandoning the euro and going back to its previous currency, the drachma, in a move that has now been dubbed a “Grexit.” The protestors in Madrid are calling for a new election and the ousting of Prime Minister Mariano Rajoy and the conservative government that imposed tax hikes and slashed spending to try and strengthen its debt-ridden economy. Spain has an unemployment rate of nearly 25 percent, the highest of any of the 17 nations in the euro zone. Spain`s main bank warned last week that their economy is contracting “significantly,” sending yields on bonds back above 6 percent. Treasury Minister Cristobal Montoro said that debt will probably reach 85.3 percent of Spanish economic output in 2012 and rise to 90.5 percent in 2013. An audit of Spain`s major banks showed they would need extra capital to survive a further economic downturn.
The stress tests showed the nation’s banks have a combined capital shortfall of 59.3 billion euros ($76.2 billion U.S).
Tens of thousands of people in Portugal and Spain are protesting Spain`s 2013 budget that will cut spending by 40 billion euros ($51.4 billion U.S.) through implementation of measures such as cutting public sector salaries, education, health and social services.
It is widely believed that it is only a matter of time before Spain joins Greece, Portugal and Ireland in requiring a full-blown bailout from the ECB and IMF. Governments want to avoid bailouts because of strict terms which put timelines on spending cuts and repayment of debt.
Also releasing a new budget plan to shore-up its fragile economy, France`s Socialist President Francois Hollande unveiled higher levies on business and a 75-percent tax for the super-rich in a 2013 budget.
China, the world`s second biggest economy and largest consumer of metals, remains in focus as it searches for ways to jump-start its economy. Manufacturing data was released that showed contraction for the eleventh straight month. As China`s marquee Shanghai Composite Index dove to three-year lows, the People`s Bank of China made the move to inject a record 365 billion yuan ($57.92 billion U.S.) into money markets to avoid a liquidity crunch at commercial banks. Banks need to have an abundance of cash to meet mandated reserve requirements and for regulatory escrow payments due on October 8 in addition to meeting guidelines for withdrawals during the week-long holiday that has just begun. With foreign investment in China waning, the central bank has been forced to assume the role of net cash supplier to Chinese markets.
Back Stateside, optimism was hampered not only by the global unrest, but on the words of Federal Reserve Bank of Philadelphia president Charles Plosser, who said the central bank`s latest round of stimulus measures is unlikely to help growth. The Federal Reserves initiating of a third iteration of quantitative easing earlier, which includes an open-ended term of bond buying of mortgage-backed securities to the tune of $40 billion per month and extension of Operation Twist, has helped lift the market to multi-year highs over recent months.
Investors largely overlooked positive housing data and a rise in consumer confidence and instead concentrated on weakness in manufacturing data across the center of the U.S.
This week, the markets will certainly key on activity from the euro zone again, but will also be keen on manufacturing data from the Institute of Supply Management early in the week. The latest minutes from the Federal Open Markets Committee will be delivered on Thursday.
How the fourth quarter kicks-off will also be measured by the closely watched reports on unemployment statistics coming from both Canada and the United States on Friday.
To at least exit this monologue on a positive note, stocks may have trimmed gains these past two weeks, but it has been a very fruitful third quarter. The Dow Jones wrapped the quarter ahead by 4.7 percent, the S&P 500 up by 5.8 percent, the Nasdaq grew 6.4 percent taller, The TSX Composite advanced 6.2% and the TSX-Venture regrouped after a second quarter face plant to jump ahead 12.1 percent.
Lukewarm economic data from the States and falling stock prices put some pressure on the Canadian dollar this past week. Two straight weeks of broad losses across North American markets has investors taking a conservative position which means pulling-out of riskier currencies. Weak equities, commodities and shaky global economies contributed to the loonie losing ground to its U.S. peer for the second straight week. The ICE dollar index, which measures the greenback against a basket of six other currencies, rose 0.71 percent on the week. Across the week, the Canadian dollar edged lower by 0.65% on the US dollar, so next week will begin with one Canadian dollar buying US$1.01735.
* Gold futures tracked sideways for the second straight week with a volatile down day on Wednesday when gold hit two-week lows on euro zone concerns and a recovery on Thursday based on stimulus news from China. With the month ending, traders exited positions on Friday as Monday is first-notice day, meaning that traders with October futures contracts must take delivery. Broadly speaking, investors are concerned about physical demand for gold, although strikes in South African mines are offsetting those concerns with possible supply issues of their own. December contracts were the most actively traded; slipping 0.23%, or $4.10 per ounce, to close the week at $1,778.00 on the Comex division of the New York Mercantile Exchange.
On the month, the precious yellow metal added 5.11%, or $86.30 per ounce.
* Silver futures traded alongside gold with a big swing on Wednesday and Thursday followed by tempered moods on Friday to close the week basically flat. Silver had hit a six-month high the week prior at $35.26 an ounce. Contracts reaching expiration had fund managers doing some position squaring in silver as well. From a technical perspective, silver bulls are retaining control with the white metal in a nine-week uptrend and consolidating while looking for a breakout past a tough resistance at $36 per ounce. Silver for December delivery was the most actively traded; fading 0.18%, or $0.061, higher to $34.577 per ounce. On the month, silver outpaced the gains of its higher-priced cousin gold by rising 9.97%, or $3.135, per ounce.
* Copper prices rose on Thursday and Friday as Spain made moves to buttress its economy to pare losses in its second consecutive down week. Demand issues from China and its limping economy are still weighing-on copper futures; keeping the red metal in limbo the last two weeks after a stout run since the beginning of August. It is notable that some liquidity may exit the copper markets with China, the world`s largest consumer of copper, shuttering its markets from October 1st to 5th for holidays. December contracts were the most actively traded on New York`s COMEX exchange during the week; dipping 3.1 cents, or 0.82%, to $3.758 per pound. Even with back stepping the last two weeks, copper had a strong month; advancing 30.1 cents, or 8.71%, per pound.
* Oil prices edged lower again this past week; continuing their fall from over $100 per barrel two weeks ago. Geopolitical tensions in the oil-rich middle east are still firmly in focus with Israeli Prim Minister Benjamin Netanyahu calling for a “clear red line” to be drawn to stop Iran from developing a nuclear bomb. Netanyahu said that at the pace Iran is collecting uranium for the mass-destruction weapon, that the country could create a bomb as early as next summer.
Moderating any supply concerns, however, is the economic climate globally which doesn`t exactly scream demand and tepid economic data from the U.S., the largest oil consumer. November contracts for West Texas Intermediate crude were the most actively traded and closed the week down by $0.70, or 0.57%, at $92.19 per barrel. Despite the early September run, crude prices dumped $4.28, or 4.44%, per barrel across the month.
Equity Market Snapshot:
(All percentages on a weekly basis unless otherwise noted) * It was a tough week for major gold miners with bullion suffering a setback. Agnico-Eagle Mines (TSX:AEM, +0.67%) continued its winning ways for the tenth straight week, but Barrick Gold (TSX:ABX, -1.30%), Yamana Gold (TSX:YRI, -0.48%), Goldcorp (TSX:G, -1.35%), Newmont Mining (TSX:NMC, -1.12%) and Kinross Gold (TSX:K, -0.49%) all sifted-off points.
* Energy stocks were hit again by the drop in crude prices. Talisman Energy (NYSE:TLM, -4.65%), Imperial Oil (NYSE:IMO, -2.33%), Canadian Natural Resources (NYSE:CNQ, -6.87%), Suncor Energy (NYSE:SU, -2.90%), Exxon Mobil (NYSE:XOM, -0.51%) and Cenovus Energy (NYSE:CVE, -1.16%) were all in the red.
* Shares of Forbes & Manhattan Coal Corp. (TSX:FMC, +6.06%) perked as the company reported that it`s buying majority stakes in an operating coal mine and an undeveloped anthracite deposit in South Africa from Rio Tinto PLC (NYSE:RIO, -5.38%) for about $52.3 million plus royalties.
* The biggest of banks in the US have recently been leading market performers, but back peddeled last week. Bank of America (NYSE:BAC, -3.07%), Citigroup (NYSE:C, -2.82%), JPMorgan Chase (NYSE:JPM, -0.98%), UBS AG (NYSE:UBS, -5.73%), Wells Fargo & Co. (NYSE:WFC, -1.26%) and Goldman Sachs Group (NYSE:GS, -2.60%) all lost value. XLF (NYSE:XLF, -1.52%), the financials select sector SPDR that tracks the financial stocks in the S&P 500, surrendered points for the second time in as many weeks after two straight months of green weeks.
* Bank of America announced a $2.43-billion settlement in a class action lawsuit to pay shareholders who alleged the company had hidden losses from them related to Merrill Lynch before they voted on the acquisition in 2009.
* The biggest banks in Canada once again were better performers than their American peers. National Bank of Canada (TSX:NA, +0.46%), Royal Bank of Canada (TSX:RY, +0.98%), Bank of Montreal (TSX:BMO, +0.19%) and Toronto-Dominion Bank (TSX:TD, +0.28%) ended the week ahead while Canadian Imperial Bank of Commerce (TSX:CM, -0.30%) and The Bank of Nova Scotia (TSX:BNS, -0.20%) nipped lower.
* Apple (NASDAQ:AAPL, -4.71%) said that it sold over 5 million iPhone 5`s in the first week of sales to the disappointment of Wall Street.
Analysts were calling for between 5 and 8 million sales. Even more interesting, on Friday, Apple chief executive Tim Cook apologized to customers frustrated with complications in its new Maps service. Cook even went as far as suggesting that users download rival Google`s map app in the Apple Store while it works to fix its product.
* Embattled smartphone maker Research In Motion Ltd. (TSX:RIM, +20.32%) finally produced some news that assuaged shareholders in providing some details on its Blackberry 10 operating system and saying that it added almost two million new subscribers in the latest quarter. The Waterloo, Ontario-based technology company also said that its quarterly loss was $235 million or 45 cents per diluted share compared with a profit of $329 million or 63 cents per share a year ago. RIM`s adjusted loss was $142 million or 27 cents per share, a number far better than analysts predicted.
* Google (NASDAQ:GOOG) stock hit an all-time high of $764.89, eclipsing the previous record set in November 2007. Shares of the tech giant have closed higher in each of the last eleven weeks and are up about 16% in 2012 as it continues to dominate in search and further cements itself in the mobile markets with its Android product.
* A brawl involving thousands of workers at Foxconn Technology Group, a major supplier of computer components to global electronics companies, including Hewlett Packard (NYSE:HPQ, -3.01%), Sony (NYSE:SNE, -7.87%), Apple and Microsoft (NASDAQ:MSFT, -4.58%), sent 40 people to the hospital and resulted in operations being suspended at a Taiyuan, China factory.
* Canaccord Financial Inc. (TSX:CF, -6.89%) said that it is closing 16 branches of its wealth management firms across Canada and reducing the number of advisors at the remaining locations.
* Questcor (NASDAQ:QCOR, -38.70%) continued its nosedive from the prior week. Shares started tumbling the previous week as Aetna (NYSE:AET, even) said that it is reducing reimbursements of the company`s leading drug Acthar, used for about 20 different indications currently. Questcor shares took a further hit on news this past week of a government investigation into marketing practices of the company.
* Lennar Corp. (NYSE:LEN, -7.30%) outpaced estimates in saying that it earned 40 cents a share in its latest quarter as net orders spiked 44 percent. Experts were calling for earnings of 28 cents per share.
Shares of LEN have been on a tear, doubling in the last year, but lost momentum with the markets following an initial spike after the earnings beat.
* Shares of Sealy (NYSE:ZZ, -0.91%) rose initially after rival mattress maker Tempur-Pedic (NYSE:TPX, -0.70%) said it was buying the company in a deal valued at $1.3 billion. Sealy cancelled its earnings call upon the news, but did report zero earnings per share, falling short of expectations.
* Citigroup (NYSE:C, -2.82%) downgraded big steel firms U.S. Steel (NYSE:X, -4.36%) and AK Steel (NYSE:AKS, -8.57%). Analysts lowered their rating on U.S. Steel to “neutral” from “buy” and AK Steel to “sell” from “neutral,” sending shares lower.
* Deutsche Bank upgraded Cooper Tire (NYSE:CTB, -3.81%) to a “buy” rating from a “hold” a couple days after KeyCorp (NYSE:KEY, -1.91%) downgraded it from a “buy” to a “hold”. Goldman Sachs also chimed-in with an upgrade to “buy” and put a $17 six-month price target on the stock this past week. In other things rubber, Goodyear Tire & Rubber (NYSE:GT, -4.24%) revealed a new road vehicle tire, one that will meet the European Union`s highest fuel efficiency standards, rules which go into effect in November.
* Shares of Peregrine Pharmaceuticals (NASDAQ:PPHM, -80.89%) disclosed that they had previously provided unreliable clinical data from a mid-stage cancer drug trial. Shares had risen more than one-thousand-percent since the end of June on hopes for the trials, but gave back most of those gains with the news.
* Investment manager AGF Management Ltd. (TSX:AGF.B, -12.26%) said that it lost $13.3 million, or 14 cents per share, in the most recent quarter, compared with a profit of $15.4 million or 16 cents per share in the same period last year. Revenue totaled $119.8 million, down from $151.4 million.
* UnitedHealth (NYSE:UNH, -1.37%), the U.S.`s largest health insurer, debuted this past week on the Dow as it replaced, soon to be split-up Kraft (NASDAQ:KFT, -1.02%). Kraft plans to split itself into a snack company called Mondelez International and a North American grocery business with the Kraft name.
* The world`s biggest construction and mining equipment maker Caterpillar (NYSE:CAT, -6.19%) was an anchor on the markets after it cut its forecast for 2015. Cat said that its profit will be $12 to $18 per share, down from prior estimates of $15 to $20 per share, citing global economic headwinds.
* Shares of Tesla (NASDAQ:TSLA, -2.47%) slipped after the electric car maker said production of its new Model S sedan will be slower than anticipated and that it needs to do a capital raise in order to meet payment plans on loans with the Department of Energy.
* Valeant Pharmaceuticals International, Inc. (TSX:VRX, -2.47%) said it paid $62.5 million to acquire the U.S. rights to Visudyne, a treatment for a common form of age-related blindness. Under the deal with Vancouver-based QLT Inc. (TSX:QLT, +4.45%), which developed Visudyne, Valeant could pay up to an additional $20 million.
* In a separate matter, QLT reported that it plans to buy back up to 3.4 million of its shares over the next year as the first step in a plan to return $100 million to stockholders.
* Onex Corp. (TSX:OCX, -1.55%) said that it is spearheading a $718-million deal to acquire a 4,000-employee German manufacturing company, the first European investment for the Toronto-based company`s flagship private equity fund.
* American Greetings (NYSE:AM, +14.69%) sprung from lows after the company said its board of directors received an offer from its CEO and president to take the company private for $17.18 U.S. per share; putting a value of about $532 million on the company.
* Facebook (NASDAQ:FB, -5.25%) shares slumped after a Barron`s article called the social media company overvalued, put a $15 price tag call out and told its audience to stay away. Shares did manage to pare the losses, though, as late in the week Facebook introduced “Gifts,” a service that will allow users to ship physical presents to their friends through the Facebook interface. Cynicism is abound regarding the new plan to generate revenue to the world`s biggest social networking site.
Weekly Indices Results:
The S&P TSX Composite Index pulled-up from lows, but fell for the second straight week; carving away 66.14 points, or 0.53%, to 12,317.46. The TSX Venture Exchange stalled after three straight advancing weeks; giving-back 11.21 points, or 0.83%, to 1,334.51.
In the States, the Dow Jones Industrial Average lost further traction; accelerating the prior week`s losses by 142.34 points, or 1.05%, to 13,437.13. The much-broader S&P 500 felt a little steeper of a drop; unloading 19.48 points, or 1.33%, to close at 1,440.67. The tech-rich NASDAQ Composite completed the red week for big boards; pacing the laggards with a drop of 63.73 points, or 2.00%, to 3,116.23 on the week.
Canadian Economic Data:
* Statistics Canada reported that retail sales rose 0.7% to $39.0 billion in July, more than offsetting the decline in June. Gains were reported in eight of 11 subsectors, representing 72% of total retail trade. The increase was led by higher sales at motor vehicle and parts dealers, and general merchandise stores.
* In the latest report on the health of Canada`s economy, StatsCan said that gross domestic product grew by 0.2 percent in July, but a downwardly revised reading for June (from 0.2 percent growth to 0.1 percent) ultimately kept growth inline with analyst predictions of 0.1 percent gains in July. Helping with the modest advance was a turnaround in manufacturing which rose 0.6 percent in July after a decline of 0.7 percent in June. The manufacturing rise helped offset weakness in crude oil extraction. “On a year-over-year basis, output was up 1.9 percent, consistent with an economy that is still struggling to crack the 2 percent growth mark,” said Robert Kavcic, economist at BMO Capital Markets. The Bank of Canada had forecast third-quarter annualized economic growth of 2 percent and will be releasing an updated economic outlook on October 24. With the output stagnant, it is unlikely that Canada`s main bank will consider raising interest rates before the second half of 2013.
Next week, economic data will include Industrial Product and Raw Material Prices on Monday; IVEY Purchasing Manager`s Index updates on Thursday; and Building Permits and Unemployment information on Friday.
U.S. Economic Data:
* In its latest report on manufacturing activity in the Texas area, the Federal Reserve Bank of Dallas said that business activity picked-up in August from a sharp drop in July, but still remains in negative territory. The Fed`s index rose from -13.2 in July to -1.6 in August. Readings below zero indicate contraction in the sector.
* According to the S&P Case/Shiller Home Price Index, housing prices rose again in July with builders reporting an increase in orders. The 20-city home price index showed a 1.6 percent increase in average home prices after a 1.5 percent increase in June. For the first time in two years, all three of the Case/Shiller indices (the national, 10-city and 20-city) showed positive growth.
* The Commerce Department reported that new home sales slipped 0.3 percent to an annual pace of 373,000 in August, but still hover near two-year highs, indicating that the housing market is still working towards recovery. The rate for August came in just below the upwardly revised number of 374,000 for July. Record low lending costs are continuing to attract buyers.
* Orders for durable goods, items that are expected to last at least three years, plummeted 13.2 percent in August, according to the Commerce Department. A stark drop in bookings for airplanes and automobiles fueled the decline. Stripping out the volatile transportation sector, orders still slinked 1.6 percent lower from July. Orders for “core capital goods,” those which don`t count the transportation or the defense sectors, rose 1.1 percent after dropping 5.2 percent and 2.7 percent in July and June, respectively.
* The Department of Commerce revised its second quarter estimate of gross domestic product downward to 1.3 percent from original estimates of 1.7 percent. GDP is the broadest measure of goods and services produced by a country. The summer drought in the Midwest and weak consumer spending contributed to the revised figure. Growth below 2 percent is generally regarded as an economy heading towards a recession.
* First time applications for jobless benefits fell 26,000 to a seasonally-adjusted rate of 359,000 for the week ended September 22, as reported by the Labor Department. The new figure, which is the lowest since July, beat economists` predictions of a decline to 375,000. The more stable four-week average declined by 4,000 to 374,000.
* After hitting a two-year high in July, pending home sales – contracts signed, but not yet closed to buy a house – backpedalled in August, according to the National Association of Realtors. The NAR index faded to 99.2 in August from an upwardly revised 101.9 in July.
An index reading of 100 is equal to the average level of contract activity during 2001. Year-over-year, August transactions were up 10.7 percent, marking the 15th straight month of monthly gains compared to the year prior.
* Consistent with the slowdown in manufacturing across the States, the Institute for Supply Management Chicago PMI fell to 49.7 in September from 50.3 in August, representing the first month since September 2009 that business activity in the Midwest decelerated. A reading below 50 indicates contraction in manufacturing activity.
“There are no encouraging signs in this report,” said Jefferies` analyst Thomas Simons, referring to the index losing momentum over the last seven months.
* The University of Michigan/Thomson Reuters Consumer Sentiment Index rose to 78.3 in September from 74.3 in August, marking the highest reading since May. Economists were calling for a rise to 79.5, bolstered by the rises in the stock market and home values.
* Spurred by higher prices for products, consumer spending rose in August and outpaced increases in wages. The Commerce Department said that personal consumption expenditures – which measure purchases for items ranging from food to services to cars – increased 0.5 percent during August compared to July. Personal incomes rose only 0.1 percent. Disposable income, or total income minus taxes, fell 0.3 percent in August; its first drop since November last year. What this activity reflects is not a willingness of Americans to spend more money, but a situation where spending was increased because of rising prices in necessities, such as gasoline and food.
Next week, data in the States will bring ISM Manufacturing Index updates on Monday; Motor Vehicles Sales on Tuesday; the ADP Employment Report and ISM Non-Manufacturing Index on Wednesday; Jobless Claims and Factory Orders on Thursday; and the latest Employment Situation on Friday.
Penny Stocks to Watch & Company Spotlight Results:
Among the stocks we watched this week, energy company PetroFrontier Corp. (TSX-Venture:PFC) came out strong and hammered on resistance at 82 cents for its weekly high, but couldn`t break through, eventually closing the week at 76 cents for a gain of a penny, or 1.33%. The other Canadian stock on our radar, mineral explorer Lachian Star Ltd.
(TSX:LSA) leapt immediately to its intraweek high of $1.57 on Monday before giving the gains back to close the week at $1.44 for a loss of 6 cents, or 4.0%.
In the States, biotech CytoDyn Inc. (OTCBB:CYDY) advanced early and held gains near its intraweek high of $1.11 with a close on Friday at $1.07 for a gain of 7 cents, or 7.0%. The other U.S. stock on our watchlist, industrial goods company FuelCell Energy Inc. (NASDAQ:FCEL) limped along with the rest of the Nasdaq, closing the week down by $0.041, or 4.45%, at 88 cents with an intraweek high of 93 cents.
If you`d invested in all four stocks and held them to the end, you`d have seen an average loss of 0.03%. However, if you`d bought all four at the beginning of the week and sold each at its peak, you`d have realized gains of 6.49%.
Next week, we focus on Fancamp Exploration Ltd. (TSX-Venture:FNC) and Yukon-Nevada Gold Corp. (TSX:YNG). In the States, look for big things from Dex One Corp. (NYSE:DEXO) and CD International Enterprises Inc.
Our most recent U.S. spotlight, Omega Commercial Finance Corporation (OTCQB:OCFN), said that it has authorized the facilitation of a proven capital markets strategy available to public companies that will structure its own internal version of a credit facility. For compliance considerations, limited information can be disclosed however this strategy will be promoted to designated institutional investors and facilitated by licensed financial services firms, yet to be determined. Management`s motivation behind this proven capital markets strategy is to generate up to $1-billion in potential lending proceeds for its subsidiary lending companies. This established capital markets strategy in many ways should create an imminent competitive advantage over other small-cap finance companies and private lenders that primarily compete in originating, investing, acquiring, and managing senior-performing commercial real estate mortgage loans, CMBS`s, CRE Corporate-debt, and other commercial real estate debt investments in the U.S. and globally.
President, Jon S. Cummings IV states, “With institutional investors seeking yield coupled with the US Treasury benchmarks trading at record lows and the recent initiation of QE3, we think yields are going to remain at these low levels for the foreseeable future. Hence, Omega has created a competitive strategy specifically by offering an attractive risk-adjusted premium, which could make this eye-catching to Yield-Hungry participants.” More importantly and operationally, OCFN has formulated strong back-office support teams for this potential massive inflow of capital.
The Month at a Glance – September Investors often tend to be nearsighted and while these last two weeks may put a sour taste in our mouths, September was actually a strong month for the North American markets. All five indices that we track rose considerably with the smaller Toronto Venture exchange posting its second consecutive green month with a stellar 7.55 percent appreciation. U.S. markets and Canada`s benchmark TSX Composite notched their fourth straight month of gains in September despite the dismal final weeks. In short, the markets were teflon-like in that no bad news was going to stick to it or detour a rise in values.
Clearly, the driving force of the markets was aggressive monetary policies by central banks to provide liquidity for financial systems.
The month began with cautious trading ahead of meetings of the European Central Bank that kept traders holding their breath for words from ECB president Mario Draghi about new policies to spark growth in the euro zone. Moody`s warned that the European Union`s Aaa credit rating was at risk, but also revised its outlook on the EU to “negative” from “stable,” giving some stability to the EU`s economic shakiness. The market roared ahead when Draghi delivered the news the ECB was initiating a bond buying program designed to help alleviate higher borrowing costs that were crushing vulnerable members of the euro-zone, including Spain and Italy.
The new program, dubbed “Monetary Outright Transactions,” or OMTs, included the ECB buying government bonds on the secondary bond market, where previously issued securities are traded. Following through on his pledge to do “whatever it takes to save the euro,” Draghi`s scheme effectively amounts to an ECB commitment to buy unlimited amounts of short-term bonds from euro countries that request help.
Investors even looked past feeble jobs updates from North America.
The States missed estimates of 125,000 new jobs by only reporting an increase of 96,000 in August. The unemployment rate dropped mildly to 8.1 percent, representing the 43rd month in a row with joblessness above 8 percent. North of the U.S. border, Canadian employment rose by 34,000 in August, the result of an increase in part-time work, as the unemployment rate held steady at 7.3%.
Following the initiatives of the ECB, the markets went into an outright happy dance when Fed Chairman Ben Bernanke stepped to the podium and announced that the U.S. Federal Reserve was immediately starting a third round of quantitative easing, or QE3, and also extending “Operation Twist,” a bond buying policy that converts short term debt to long-term. The Fed said that the latest purchases will be an open-ended plan to purchase $40 billion in mortgage-backed securities each month. Coupled with Operation Twist, the government will be snapping-up $85 billion each month in bonds, with no end specified to try and keep the economic recovery moving forward. The central bank also said that it will keep its benchmark interest rates at historic lows until mid-2015 instead of the late-2014 date it had originally offered. By the time all is said and done, QE3 should easily top the $600 billion that was spent on QE2.
Letting investors know that Germany is on board with easing policy, Germany`s high court (the Federal Constitutional Court in Karlsruhe) rejected six requests to block the European Union`s permanent rescue fund, called the European Stability Mechanism, or ESM. Opponents of the 500-billion-euro fund for the 17 countries in the euro zone had argued the terms of the fund violated Germany`s constitution and were fighting to keep the country`s president from signing it into law. The ESM is an important tool for the euro zone to contain its three-year debt crisis. Germany being blocked from participating in the fund could have proved catastrophic to the plan. German Chancellor Angela Merkel told the German parliament that the ruling sends “yet another strong signal to Europe and beyond: Germany is accepting its responsibility as the largest economy and reliable partner in Europe.” China also jumped on the easing bandwagon in September in addition to the capital injections mentioned above. At the World Economic Forum in Tianjin, Premier Wen Jiabao said that China has a budget surplus in 2012 of about 1 trillion yuan ($158 billion) and another CNY100 billion in a special reserve fund. The Premier stated that the country “will not hesitate to use [the funds] for the fine-tuning of the economy.” Subsequently, the leading country began a massive string of infrastructure projects with the 1 trillion yuan. Further, China`s central bank is keeping key interest rates and bank reserve requirement ratios unchanged, a sign that the government is loosening monetary policies to spark growth. The moves contributed to the rise in metals as China is a top metal consumer and the world`s largest user of copper.
Not to be left out, the Bank of Japan jumped in with an announcement that its central bank would extend its own asset-purchasing model. The bank increased the size of its asset purchases by 10 trillion yen ($126.7 billion) to a new total of 80 trillion yen ($1.01 trillion) through several types of purchases, including government bonds and T-bills. The overall plan is designed to be completed within the next 15 months. The BoJ also informed that it will keep its key interest rate unchanged at 0.0 to 0.1 percent.
The bulls were firmly in control with sentiment underpinned by the global monetary easing initiatives to jumpstart economies.
The mood towards gold may have been tempered into the close of the month, but the precious metal posted its biggest quarterly gain in more than two years as stimulus plans boosted bullion`s inflation-hedge appeal. Right now gold is near its 2012 high.
Jeffrey Sica, chief investment officer of SICA Wealth Management, said that gold should rise to a record $2,000 an ounce in the fourth quarter.
The teflon analogy reference above may now be showing signs of wear and scratches. Bad news, violent protests, lower guidance and fleeting economic data seem to have swatted the rose-colored glasses of the faces of investors. The economic situation in Europe simply remains dire. As we mentioned in last week`s review, the glee of monetary easing across three continents is abating and concrete information is moving to the forefront of sentiment. Whether or not news, not speculation, will stick to market direction or not remains to be seen, but the wave of optimism since Team Bernanke and his Global Legion of Bankers scattered money across the planet seems to be dissipating.
Monthly Indices Results:
* S&P TSX Composite: up 3.08% (+368.20 pts.) * TSX-Venture: up 7.55% (+93.65 pts.) * Dow Jones Industrial Average: up 2.65% (+346.29 pts.) * S&P 500: up 2.42% (+34.09 pts.) * NASDAQ: up 1.61% (+49.27 pts.) Monthly Equity Market Snapshot:
(All percentages on a monthly basis unless otherwise noted) * Shares of Netflix (NASDAQ:NFLX, -8.84%) tumbled after Amazon.com (NASDAQ:AMZN, +2.44%) announced a licensing deal with the cable channel Epix to provide streaming movies. Amazon shares were also lifted by the company unveiling a new front-lit Kindle e-reader earlier in the month. The device, called the Paperwhite, will sell for $119 U.S. and will ship Oct. 1. The Paperwhite with 3G capabilities will sell for $179 U.S. The company also dropped the price of its low-end Kindle to $69 from $79 U.S.
* Shares of Pandora (NYSE:P, -8.67%) took a dive after Apple (NASDAQ:AAPL, +0.28%) announced plans to launch a competing live streaming music option. Shares of Apple made a new all-time high again in September at $705.07 as the company released the latest version of its iPhone with 5 million units being sold in the first week.
* Toronto-based conglomerate Onex Corp. (TSX:OCX, +0.10%) announced that it is buying Louisville, Kentucky-based SGS International Inc.
for $813 million. SGS is a provider of packaging graphics services.
* U.S.-listed shares of Nokia (NYSE:NOK, -8.69%) ducked lower after the Finnish mobile-phone maker unveiled its latest smartphone. The new Lumia 920 runs on Windows 8, the latest version of Microsoft`s (NASDAQ:MSFT, -3.44%) mobile platform.
* Chesapeake Energy (NYSE:CHK, -2.48%) agreed to sell most of its properties in the Permian Basin in West Texas for about $6.9 billion.
The natural gas company will sell the Delaware Basin portion to Royal Dutch Shell (NYSE:RDS.A, -0.80%) in a deal valued just below $2 billion. Chevron (NYSE:CVX, +3.92%) and privately-held Global Infrastructure Partners will also buy portions of the acreage.
* Hewlett-Packard (NYSE:HPQ, +1.84%) finally stopped its monthly slide at 4 straight, even though it said that it is planning on laying-off 29,000 workers over the next two years, or 2,000 more than it had originally said.
* Shares of homebuilders continued to advance on the QE news; figuring that the real estate market will escalate its recovery pace.
* Digital Domain Media Group (Pink Sheets:DDMGQ, -97.10%), the company behind the Tupac hologram that was a hit at the Coachella music festival earlier this year, filed for bankruptcy protection and is now relocated to the Pink Sheets with a “Q” added to their ticker.
Private investment firm Searchlight Capital Partners will buy the company`s main operating unit, Digital Domain Productions, for $15 million.
* FedEx (NYSE:FDX, -3.28%), the world`s second largest package delivery company and a barometer of global economic health, saw shares slide as the company exceeded analysts` predictions for net profit last quarter, but lowered its anticipated earnings for its fiscal year, citing the softening global economy.
* Research In Motion Ltd. (TSX:RIM, +14.46%) reported that it signed a licensing deal with Microsoft related to patents involving the Microsoft’s latest Extended File Allocation Table, or exFAT, technology. The technology facilitates the exchange of large media files between desktop PCs and wireless devices. Financial terms of the agreement weren’t disclosed. RIM was also slapped with another analyst downgrade and suffered another black eye because of a network failure throughout several countries in Europe. Shares made a new all-time low of $6.10 before springing ahead on its latest earnings report. Shares had fallen the previous five months.
* Shares of Yahoo! (NASDAQ:YHOO, +9.04%) rose on news that the company would return $3.65 billion of the $4.3 billion in proceeds from its sale of Alibaba to shareholders.
* Air Canada (TSX:AC.B, +17.59%) reported that it will hire more than 900 employees over the next 12 months to meet its planned workforce requirements. Further, as part of the commencement of its low-cost carrier that is slated to launch in 2013, the company will be hiring an additional 50 pilots and 150 flight attendants.
* Yellow Media Inc. (TSX:YLO, +8.33%) said the Quebec Supreme Court suspended all its debt-related obligations starting from Sept. 30, as it readies to consider the company`s recapitalization plan next month.
* In IPO news, online real estate company Trulia (NYSE:TRLA) had a strong showing through raising about $102 million at a $17 per share price point that was above its estimated range. Shares rose as high as $26.57 before settling the month at $21.42.
Monthly Penny Stocks To Watch Leaders & Company Spotlight Results:
Among the stocks that we watched in August, the champion of the month in Canada was energy outfit Condor Petroleum Inc. (TSX:CPI) whom we selected as a penny stock to watch at the start of the month at a price of 30.5 cents per share. Shares mushroomed immediately to hit 49 for a gain of 60.66% and are still holding a large portion of those gains. September was a particularly strong month for our Canadian penny stocks to watch with many other winners yielding gains in the area of 50 percent. In the U.S., the winner for August was Denison Mines Corp. (AMEX:DNN) which we selected in the third week of the month when shares were at $1.46. Again, shares launched quickly to hit a high of $1.72 for a gain of 17.81%, but have since retraced to find support just above the initial price point. We congratulate all the followers of our “Penny Stocks to Watch” who were able to reap rewards from these most recent write-ups and look forward to another solid month of penny stocks to watch in October. Be sure to check each weekend for our Companies as we continue to find gems that are regularly producing solid gains.
————————- Forward Looking Statements This report includes forward-looking statements that reflect the mentioned companies current expectations about its future results, performance, prospects and opportunities. the mentioned companies has tried to identify these forward-looking statements by using words and phrases such as “may,” “will,” “expects,” “anticipates,” “believes,” “intends,” “estimates,” “plan,” “should,” “typical,” “preliminary,” “we are confident” or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause the mentioned companies actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company`s growth expectations and ongoing funding requirements, and specifically, the Company`s growth prospects with scalable customers, and those outlined above. Other risks include the Company`s limited operating history, the Company`s history of operating losses, consumers` acceptance, the Company`s use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company`s securities, the possible volatility of the Company`s stock price, the concentration of ownership, and the potential fluctuation in the Company`s operating results.
Disclaimer AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable.
For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company`s expectations and estimates.
This is an advertisement for the above mentioned companies. The purpose of this advertisement, like any advertising, is to provide coverage and awareness for the company. The information provided in this advertisement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.
© 1999-2012 AllPennyStocks.com. All rights reserved.
AllPennyStocks.com is not a Registered Broker/Dealer or Financial Advisor, nor do we hold ourselves out to be. All materials presented on our web site and individual reports released to the public through this web site, e-mail or any other means of transmission are not to be regarded as investment advice and are only for informative purposes.
Before making a purchase or sale of any securities featured on our web site or mentioned in our reports, we strongly encourage and recommend consultation with a registered securities representative. This is not to be construed as a solicitation or recommendation to buy or sell securities. As with any stock, companies we select to profile involve a degree of investment risk and volatility. Particularly Small-Caps and OTC-BB stocks. All investors are cautioned that they may lose all or a portion of their investment if they decide to make a purchase in any of our profiled companies. Past performance of our profiled stocks is not indicative of future results. The accuracy or completeness of the information on our web site or within our reports is only as reliable as the sources they were obtained from. The profile and opinions expressed herein are expressed as of the date the profile is posted on site and are subject to change without notice. No investor should assume that reliance on the views; opinions or recommendations contained herein will produce profitable results. AllPennyStocks.com may hold positions in securities mentioned herein, and may make purchases or sales in such securities featured on our web site or within our reports. In order to be in full compliance with the Securities Act of 1933, Section 17(b), AllPennyStocks.com will disclose in it`s disclaimer, what, if any compensation was received for our efforts in researching, presenting and disseminating this information to our subscriber database and featuring the report on the AllPennyStocks.com web site. AllPennyStocks.com has been compensated six thousand dollars and two thousand five hundred dollars worth of barter services by a third-party, SmallCapVoice.com Inc. for its efforts in presenting the OCFN profile on its web site and distributing it to its database of subscribers as well as other services. Information presented on our web site and within our reports contain “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be “forward looking statements.” Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as “expects”, “will,” “anticipates,” “estimates, “believes,” or that by statements indicating certain actions “may,” “could,” or “might” occur.
THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SMALL CAP SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK.
We encourage our readers to invest carefully and read the investor information available at the web sites of the Securities and Exchange Commission (SEC) at: http://www.sec.gov ( http://www.sec.gov ) and/or the National Association of Securities Dealers (NASD) at:
http://www.nasd.com ( http://www.nasd.com ). Readers can review all public filings by companies at the SEC`s EDGAR page. The NASD has published information on how to invest carefully at its web site.
_____________________________ Change email address / Leave mailing list: http://ymlp331.net/ugjheqmgsgeyyqygubssggmqbybw Powered by YourMailingListProvider