Thursday, April 9, 2015

10 Beaten Down Dow Stocks: DIA, JNJ, AXP, XOM, INTC

After a promising close Monday, stocks reversed to the downside in late trading on Tuesday. The Dow Transports bucked the trend while the small- and mid-cap stocks were a bit weaker that the S&P 500.
Clearly, many are on the sidelines ahead of Alcoa, Inc. (AA) earnings after the close today. Expectations are very low, so any stocks that beat expectations are likely to be rewarded and weak results may already be factored into many stock prices.
The large-cap stocks, whose earnings have been hurt by the much stronger dollar, are likely to get most of the focus. The iShares Dow Industrials (DIA) is up 0.83% YTD while the Spyder Trust (SPY) has done a bit better gaining 1.29%. Both are lagging well behind the 4.32% gain in the small-cap iShares Russell 2000 (IWM). (more)

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Philip Morris International (PM) is now yielding more than 5%

One World Dominator is trading at a new 52-week low… and it’s sporting a 5%-plus yield today.
I’m talking about cigarette maker Philip Morris International (PM)…

A 5.2% yield on a safe stock like Philip Morris is spectacular in today’s zero-percent-interest world. But is it time to buy? Before we answer that question, a brief history on the company… (more)
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Is McDonalds MCD About To Fall 20%?

If you own McDonald’s (MCD), you might consider selling the stock right now.
Don’t get me wrong. McDonald’s is one of the world’s greatest blue-chip companies. I’m sure many of you reading this own the stock in one of your retirement accounts like a 401(k) or IRA.
The fast-food king is ranked as one of the top brands in the world. It has rewarded investors pretty well for many years.
The company has generated tens of billions of dollars in free cash flow over the years. It also increased its annual dividend for nearly four decades. (more)

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RPC, Inc. provides a range of oilfield services and equipment for oil and gas companies involved in the exploration, production, and development of oil and gas properties in the United States, Africa, Canada, China, Eastern Europe, Latin America, the Middle East, and New Zealand. The Technical Services segment offers pressure pumping, coiled tubing, snubbing, nitrogen pumping, well control consulting and firefighting, down hole tools, wire line, fishing, and fluid pumping services that are used in the completion, production, and maintenance of oil and gas wells. The Support Services segment provides a range of rental tools, including blowout preventers, high pressure manifolds and valves, Hevi-wate drill pipes, tubing products, production related rental tools, pumps, diverters, drill pipes, drill collars, handling tools, and hoses that are used for onshore and offshore oil and gas well drilling, completion, and work over activities.
Take a look at the 1-year chart of RPC (NYSE: RES) below with my added notations:
1-year chart of RPC (NYSE: RES)
Over the last 4 months RES formed an inverse head and shoulders pattern (green). I have noted the head (H) and the shoulders (s) to make the pattern more visible. The stock’s neckline resistance was at the $14 level (blue). RES confirmed its H&S by breaking through the neckline earlier this week.
Keep in mind that simple is usually better. Had the inverse H&S pattern never been pointed out, one would still think RES was moving higher simply because it broke through its $14 resistance level.

The Tale of the Tape: RES confirmed an inverse head & shoulders pattern. A long trade could be entered on a pull back down to the $14 level. A break back below $14 could negate the forecast for a higher move.
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