Friday, November 1, 2013

Kiss Your Pension Goodbye!

I was on the reunion committee for my 50-year high school class reunion a few years back. As we tried to track down classmates, we discovered that many—including a few I had known quite well—had died from lung cancer. These folks would light up a cigarette, joke about cancer sticks, cough, and make fun of their addiction. They ignored their symptoms and the constant warnings from their families and doctors, and they suffered the ugly consequences.
Former US Comptroller General David Walker appeared on 60 Minutes back in July 2007. His message? Our country is suffering from a fiscal cancer far more dangerous than any external threat. The federal government is broke. It has promised entitlement benefits—health care in particular—that it cannot afford. While few economists disagreed with Walker's projections, politicians were unwilling to actually address the problem. From their standpoint, it's always better to push the problem off to a later date in the vain hope (or delusion) that it will simply disappear.  (more)

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Wendy's Company (NASDAQ: WEN) Should Continue to Prove the Bears Wrong

There are two things that I really enjoy. The first one is a great hamburger, and the second is proving bearish stock market pundits wrong. These two things come together nicely in today's trade: The Wendy's Company (NASDAQ: WEN)
This burger chain has always attracted naysayers who talk about its struggles gaining market share. While it's true that Wendy's takes a clear backseat to McDonalds (NYSE: MCD) and Burger King (NYSE: BKW), I believe it leads in creative marketing and food quality.
From personal experience, I can unequivocally say the taste of its food has improved. Particularly, I think its new pretzel bun will draw in customers. Put generic tasting meat on an average bun and you have a generic sandwich. Put the same meat on a great tasting pretzel bun and it creates a great tasting sandwich. I think this simple switch will go a long way in the long term-viability of the chain.  (more)

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VeriFone Systems Inc (NYSE: PAY)

VeriFone Systems, Inc. designs, markets, and services electronic payment solutions worldwide. It provides countertop electronic payment systems that accept magnetic, smart card, contactless or radio frequency identification cards, and near field communication(NFC) payment options, as well as support credit, debit, check, EBT, and pre-paid products; an array of software applications and application libraries; and mobile solutions that support CDMA, GPRS, Bluetooth, and WiFi technologies. The company also offers products for consumer-facing functionality at the point of sale; contactless/NFC payment solutions consisting of contactless readers for consumer-facing transactions for indoor and outdoor payment system solutions; and integrated electronic payment systems that combine electronic payment processing, fuel dispensing, and ECR functions, as well as payment systems for integration.
To review Verifone's stock, please take a look at the 1-year chart of PAY (Verifone Systems, Inc.) below with my added notations:
1-year chart of PAY (Verifone Systems, Inc.) PAY has consistently hit resistance at $24 (red) during the last (6) months. In addition, the stock has formed a clear trendline of support (blue) starting back in June. The resistance has been tested on a dozen different days and the support has been tested on 9 different occasions. At some point, the stock has to break through one of those two levels.

The Tale of the Tape: PAY has a clear level of support and resistance. A long trade could be made on a pull back to $22 (trendline support) or on a break above $24. A break back below $22 would set up a possible short trade.
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Baltic Dry Index Shows The Global Economy Headed For A Slowdown

While the mainstream media and politicians are telling us the economy is improving…key economic indicators point to a global economy headed the wrong way.
The Baltic Dry Index is an indicator of demand in the global economy. If the Baltic Dry Index is declining, it means the global demand for goods is softening. When you look at the chart below, you’ll see the devastated Baltic Dry Index—the index is saying demand never came back after the credit crisis of 2008.
baltic dry index
Another key indicator for growth in the global economy is the major stock Caterpillar Inc. (NYSE:CAT)—a worldwide company involved in the capital goods sector.  (more)

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Apple (NASDAQ: AAPL): 3 Reasons Why Apple Is Headed to $600

Apple (NASDAQ: AAPL) has taken a lot of flak on Wall Street in the last year.

Slowly but surely, however, the stock is making a comeback — and it may only be the beginning of a longer rally for the world’s largest technology company.

Apple shares have shot up 33% since dipping below $400 in late June. The turnaround was long overdue.

The stock had been in a nine-month tailspin entering June, falling all the way from $700 last September. Now the stock has finally gotten out of its funk.  (more)

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Google (NASDAQ: GOOG), Google's Chart Predicts a Breakout That Could Lead to Fast Profits

Momentum remains on the side of technology giant Google (NASDAQ: GOOG) despite the large gains already made in 2013. Following a big post-earnings rally in mid-October, the stock consolidated and is forming a tight bullish wedge pattern. This offers traders another juicy long-side breakout trade.
Tight patterns often lead to quick moves. A break to new highs would keep the momentum on the side of the bulls, while any break below the consolidation pattern would be equally bearish and serve as an automatic stop-out area.
The company reported third-quarter results after the close on Oct. 17, beating analysts' estimates on all fronts. Earnings per share (EPS) were up 19% to $10.74 from the same quarter a year ago, beating estimates of $10.34 by a good margin. Revenue was up 12% to $14.9 billion, slightly better than the consensus estimate.  (more)

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