1:45pm (EST)
The market is mixed as we head into the second half of trading with the blue-chips showing strength while Tech is slipping. Earnings continue to pour in, some good, some not so good, while economic news came in the same way. It seems that the companies that “beat-and-raise guidance” are doing well but the one that are matching estimates and lowering guidance, their shares are getting hammered.
As far as economic news, first-quarter Gross Domestic Product (GDP) rose 1.8% versus estimates for 2%. Elsewhere, initial jobless claims for last week came in at 429,000, which was more than the 390,000 initial claims that had been expected. The latest initial claims was an increase of 25,000 from the prior week while continuing claims fell to 3.64 million from 3.71 million. And finally, Pending Home Sales for March increased 5.1%.
The Dow is currently up 31 points to 12,722 while the S&P 500 is higher by a point to 1,356. The Nasdaq is lower by 7 points to 2,863.
There is one stock we want to mention, Rediff.com India (REDF, $16.30, up $0.10), which is a member of our Weekly Wrap portfolio. We profiled the stock three weeks ago when shares were just under $8 and added it to our portfolio when shares broke $10 over a week later and we haven’t looked back.
Here were a few of our thoughts on this diamond in the rough (quotes are from that day):
“Indian portal Rediff.com (REDF, $7.72, down $0.09) has been making headlines and soaring lately. A macroeconomic trend as well as a company specific trend may continue boosting the stock price. As noted by iBank.com, the Indian stock index, as shown below, is set to surge after forming a nice 2 ½ year cup and a 6-month handle. Such formations are usually bullish.
The other more company-specific trend is that India has 700 million mobile-phone users but only 10 million broadband connections. Astonishing enough is the fact that only 6.9% of the country has internet compared to 77.3% for the United States. Rediff.com is the 10th most popular portal in India and provides internet content focused on the Indian community as well as mobile phone messaging subscription services. All this should help the company grow.” (END)
Folks, our Weekly Wrap publication has gone 9-for-9 so far this year, and we expect to continue that streak as we head into the second half of 2011. These trades are safer recommendations on stocks that are undervalued or ready to breakout. We use options to lower our cost basis and are trying to make 8%-10% a month. If we can do that every month for you then it will double your money in a year or less.
If you are not yet a subscriber, we urge you to jump on board as we may release a new trade on Friday for the publication. As far as our Daily publication, we plan on releasing one or two NEW trades on Friday (or Monday) as we get ready for the next major battle between the bulls and bears. Next week could be exciting and we are expecting even more volatility as earnings wind down and we start to head into May. Subscribers, check the Members Area for the current updates.
]]>