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Friday July 23rd, 2010

MTT Quarterly Earnings Newsletter
Monday July 19th -- Friday July 23rd
(This Week In Review)
Welcome

Fellow Traders & Investors,

To another week of our Quarterly Earnings Newsletter! If you are visiting for the first time -- I'm glad you took the time to review my newsletter -- hopefully you'll get some good ideas to put on your (Opportunities List) for the coming weeks. If you have not taken the 7-Day Free Trial of my software program, get your copy downloaded today and see how much simpler this program makes your stock price calculations!

Get the answers to your most Frequently Asked Questions (FAQs) -- Click Here!

This weeks comments: Once again -- Just like the past few weeks -- more of the same this week as financial news, economic reports, and crude oil prices topped the headlines.

If you missed a few good opportunities this week -- not to worry, there's still time to buy other opportunities for the weeks to come.

The Big News This Week:
This week was another week of major earnings -- overall most major companies reported good numbers -- beat analyst estimates, but still some share prices traded down initially, then recovered mostly the same day (AMZN, ISRG, NFLX and through the week).
* Homebuilders sentiment reported lowest since April 2009.
* June housing starts lowest level in 8 months.
* Weekly initial Jobless Claims reported higher than expected.
* Comments from the FED Chairman Ben Bernanke again this week concerning the economic outlook potentially being "unusually uncertain" caused concern for investors and the market sold off on Wednesday. Market recovered nicely on Thursday.


If you want to review the Day-By-Day breakdown of major activity in the stock market. Check out "www.nbr.com" Slide your mouse pointer over the wording "The Program", then select "Transcript Archives". Here you'll find the daily headlines for stocks in the news for this week. Click Here!

As I have mentioned the past weeks, sentiment will be changing from week to week as investors are still nervous about how this recovery is moving along. It's already half a year gone by, and unemployment hasn't improved,,,,so look for some PUT Options protection opportunities also in your investment plans during the last 2 weeks of the month.

For the next several weeks the focus is going to be on "preparation for investment opportunities coming up for August Stock Options". Most of the major companies and financials are still reporting earnings, so we'll take some time to do our Due Diligence and look for what's coming up. Right now it's all about "Timing", "Price Tracking", and "Planning for opportunities to buy!"

Special Note:
A new stock options series has just been made available for a select group of investments. This is call the "Weekly Expiration Series" and one of my top buys list companies (Apple Inc.) now offers a series of stock options that expire on a weekly basis. You can find these options listed as part of the "Options Chain" for the symbol AAPL, AMZN,GOOG, and MSFT . The premium prices for these options are lower than the regular "monthly" stock options premiums, this gives another opportunity to find low-cost positions for short-term weekly gains (for CALL and PUT Options). Click Here! For full details!!



One of the best "price mover" opportunities (for both CALL & PUT Options) over the past few months is "NDX"! This is the "CBOE Nasdaq 100 Index." Click Here! to see the information I put together for this opportunity -- you definitely want this one on your "Stock Options Investment List"!

Congratulations to some of you that took some risk this week -- if you didn't buy any positions this week,,,,that's OK -- We'll have more opportunity next week. Not to worry,,,there's more opportunity coming to recover and find low cost stock options after any pull-back in prices.

So,,,What does all of this mean?? Just like every week -- Once again -- Price Movement!!! That's the key! We want the market to have something to churn and talk about.....that's what makes it move up and down -- and in turn we'll take some profits along the way!!! This week was another great example of the volatility the stock market can have in some sectors. If you are just sitting on the sidelines watching, now is a good time to start planning your next move. Opportunities will open up as prices continue to go lower,,,after a big sell off is when you do your planning strategies and look for buying opportunities.

Important Up-Coming Events: (Activities that generally contribute to stock price movement) Note: These are tentative dates and sometimes change.

• X - U.S. Steel Corp. (Q2 2010 Earnings scheduled for 7/27/10) Before Market Opens
• V - Visa Inc. (Q3 2010 Earnings scheduled for 7/28/10) After Market Closes
• FSLR - First Solar Inc. (Q2 2010 Earnings scheduled for 7/29/10) After Market Closes
• MA - Mastercard Inc. (Q2 2010 Earnings scheduled for 8/03/10) Before Market Opens
• PCLN - Priceline.com (Q2 2010 Earnings scheduled for 8/09/10) Before Market Opens
  
  Alternative List Companies:
• CMI - Cummins Inc. (Q2 2010 Earnings scheduled for 7/27/10) Before Market Opens
• AMED - Amedisys, Inc. (Q2 2010 Earnings scheduled for 7/27/10) Before Market Opens
• WYNN - Wynn Resorts, Limited (Q2 2010 Earnings scheduled for 7/29/10) Before Market Opens
• CSTR - Coinstar Inc. (Q2 2010 Earnings scheduled for 7/29/10) After Market Closes
• WFMI - Whole Foods Market (Q3 2010 Earnings scheduled for 8/03/10) After Market Closes
  
  Note: It is not recommended that you hold stock option positions going into the earnings announcement. That's a crucial time when share prices and stock option prices can significantly drop if there is any negative earnings news or negative future outlook. Wait until the earnings news and company conference calls are completed, then check the pricing to see what has happened -- you will have a better opportunity to make the right decision on when to buy into a position after the news is announced instead of buying into a position ahead of earnings news.
  
  If you want to take a small risk -- just go with "1" low-cost CALL option if you think the share price will trade up once the earnings news is released. If you think the share price will trade down once the earnings news is released -- go with "1" low-cost PUT option. Another idea is to go with one of each (1 call and 1 put at the same time). If there is a big price swing (to one side or the other) you give yourself added advantage for making a "overall" profit when you close out both positions and total up the profits. More details. >>>> Click Here!

Now is a good time to start "Practicing" with "PUT OPTIONS" (which allow you to make money when stock prices trade lower). You can find out all about this strategy from the information in my FREE Education section and use my stock price calculation program to help you see what your calculations would be!

If you have any questions about the PUT Option Strategy -- let me know, I buy "PUT OPTIONS" also and try to keep a simple straight forward approach!! Click Here! To see an example!

See a few of the special articles on the "Right" side of the screen and click on the "Click Here" pointers to take you directly to the Free Information that will also help you in your investment efforts!

Major "Earnings Announcements" this week:

• IBM - International Business Machines (Q2 2010 Earnings scheduled for 7/19/10) After Market Closes.
  Note: $128.38 +2.91 (on Friday). Earnings report beat estimates, but revenue reported lighter than analyst expected -- share price traded down under $122 (down -$6.00 on Tuesday), but recovered quickly during the week to close up over $128 on Friday. Good solid buy opportunity to plan for ahead of the next earnings timeframe.
  
  
• WHR - Whirlpool Corp. (Q2 2010 Earnings scheduled for 7/20/10) Before Market Opens.
  Note: $85.97 -2.66 (on Tuesday). Earnings report beat estimates, but investors sentiment on sustained momentum appeared to be a concern. Share price traded down from over $91 on Monday to close the week under $86. Despite the good earnings news, again we see cautious comments cause the stock to trade down!
  
  
• GS - Goldman Sachs Group (Q2 2010 Earnings scheduled for 7/20/10) Before Market Opens.
  Note: $147.38 +.88. Earnings beat estimates, but revenue reported lighter than expected, profits drop 82%. Despite beating estimates -- share price still traded down initially, but recovered mostly by the end of Tuesdays session. Watch for another opportunity like this again ahead of the next earnings timeframe.
  
  
• AAPL - Apple Inc. (Q3 2010 Earnings scheduled for 7/20/10) After Market Closes.
  Note: $259.94 +12.66 (this week) Earnings beat estimates handily, great report and no sell-off on the news this time. Apple doesn't give guidance, so investors thought the share price might sell off after the news. Initially the share price was down $5.00 on Tuesday morning (before earnings news), then rallied up to close over $6.00 higher before the close. Look to buy again ahead of the next earnings timeframe. Great earnings report -- growth expected to continue....share price will trade up and down.
  
  
• ISRG - Intuitive Surgical Inc. (Q2 2010 Earnings scheduled for 7/21/10) After Market Closes.
  Note: $334.37 +17.39 (on Friday) Earnings beat estimates, also raised its full-year revenue growth -- but share price traded down -$16 in after-hours trading on comments about the current "valuation"! Despite the cautious comments, the share price rebounded to actually close up in positive territory on Tuesday, then gained another big price move on Friday (up $17.00)
  
  
• BIDU - Baidu, Inc. (Q2 2010 Earnings scheduled for 7/21/10) After Market Closes.
  Note: $78.06 +3.61 (on Friday) Earnings reported better than expected results. Share price usually up over $20 on earnings news, but market-makers kept price down most of the week. Great earnings numbers, outlook still expecting good growth for the China search engine market.
  
  
• CAT - Caterpillar Inc. (Q2 2010 Earnings scheduled for 7/22/10) Before Market Opens.
  Note: $69.31 +4.00 (this week). Earnings report beat estimates, share price traded up every day this week ahead of earnings. Strong sales and forecast expected to continue for CAT. Look for another opportunity ahead of the next earnings timeframe.
  
  
• AXP - American Express Co. (Q2 2010 Earnings scheduled for 7/22/10) After Market Closes.
  Note: $44.79 +1.60 (on Friday). Earnings report beat estimates -- no big share price move on the news -- share price did trade up Thursday and Friday. Look to buy the low-cost options ahead of the earnings news. Share price traded up ahead of the report as it usually does -- take profits before the earnings news to lock in the gains.
  
  
• CMG - Chipotle Mexican Grill Inc. (Q2 2010 Earnings scheduled for 7/22/10) After Market Closes.
  Note: $145.50 +12.34 (on Friday). Earnings report beat estimates -- nice price move on the news. CMG has been a price moving stock on the earnings news for the past quarters. Look for the price to pull back from this big runup...look for another opportunity ahead of the next earnings timeframe.
  
  
• MCD - McDonalds Corp. (Q2 2010 Earnings scheduled for 7/23/10) Before Market Opens.
  Note: $69.90 -1.50 (on Friday). Earnings report beat estimates -- but same-store-sales numbers reported lighter than expected -- share price traded down despite the overall positive earnings news. Just like AXP, look to pick up some low-cost options about 1 week ahead of earnings -- take profits before the earnings news.
  
  Alternative List Companies -- potential buys ahead of earnings:
  
• HAL - Halliburton Co. (Q2 2010 Earnings scheduled for 7/19/10) Before Market Opens.
  Note: $30.59 +2.90 (this week). Earnings report beat estimates, profits reported up 83%. Low cost call options did well this week. Look for another opportunity ahead of the next earnings timeframe.
  
  
• PEP - Pepsico Inc. (Q2 2010 Earnings scheduled for 7/20/10) Before Market Opens.
  Note: $64.73 +2.68 (on Tuesday). Earnings reported better than expected results. Share price traded up on the news. Look for another opportunity ahead of the next earnings timeframe.
  
  
• HOG - Harley-Davidson (Q2 2010 Earnings scheduled for 7/20/10) Before Market Opens.
  Note: $26.83 +3.22 (on Tuesday). Earnings reported better than expected results despite sales slower than expected for this time of the year. Good report for the quarter.
  
  
• UNP - Union Pacific Corp. (Q2 2010 Earnings scheduled for 7/20/10) Before Market Opens.
  Note: $73.90 +4.78 (Thursday & Friday). Earnings report beat estimates. Share price traded up on the news. Low cost call options did well.
  
  
• APA - Apache Corp. (Q2 2010 Earnings scheduled for 7/20/10) After Market Closes.
  Note: $92.79 +3.51 (on Friday). Earnings report beat estimates -- Q2 profits nearly doubles. Share price traded up on the news all week. One of the top energy/basic materials sector stocks to watch. Low cost call options did well.
  
  
• FCX - Freeport-McMoran Co. (Q2 2010 Earnings scheduled for 7/21/10) Before Market Opens.
  Note: $71.08 +9.00 (this week). Earnings reported better than expected results on strong sales. Share price traded higher on the news and through the week. Metals and Mining are in favor now -- look for another opportunity ahead of the next earnings timeframe.
  
  
• MS - Morgan Stanley Co. (Q2 2010 Earnings scheduled for 7/21/10) Before Market Opens.
  Note: $26.89 +1.58 (this week). Earnings reported better than expected results. Shares traded up on the news. Financials are starting to rebound -- look for another opportunity ahead of the next earnings timeframe.
  
  
• BLK - BlackRock, Inc. (Q2 2010 Earnings scheduled for 7/21/10) Before Market Opens.
  Note: $154.49 +11.00 (Thursday & Friday). Earnings reported 2nd quarter profits doubles -- better than expected results. Shares price initially traded down on Wednesday, then rebounded to trade up $7 on Thursday, and another $3.00 on Friday. Again, financials are starting to recover and BLK should continue to improve. Look for another opportunity ahead of the next earnings timeframe.
  
  
• NFLX - Netflix Inc. (Q2 2010 Earnings scheduled for 7/21/10) After Market Closes.
  Note: $107.70 +4.14 (on Friday). Earnings report beat estimate, but revenues fell short of expectations. Share price dropped $16 on the news to open down under $103 Friday morning from the $121 price on Thursday. NFLX had been trading up significantly the past month, so it's not surprising to see a price drop on the earnings news. Investors still like the growth potential on NFLX -- it's also a price mover. Look for the same type of scenario ahead of the next earnings timeframe if the share price runs up ahead of the earnings.
  
  
• UPS - United Parcel Services (Q2 2010 Earnings scheduled for 7/22/10) Before Market Opens.
  Note: $63.57 +3.50 (nice move Thursday). Earnings reported Q2 profits up 90% -- better than expected results. Company also raised guidance despite the slowing economy. Look to take advantage of UPS again ahead of the next earnings timeframe. FDX also traded up on the UPS news.
  
  
• FFIV - F5 Networks Inc. (Q2 2010 Earnings scheduled for 7/20/10) After Market Closes.
  Note: $57.15 +5.64 (on Friday). Earnings reported better than expected results. Share price traded higher on the news. Network sector still in favor. Look to next earnings timeframe for another opportunity.
  
  Major "Special Notes" this week:
  
  
• My Best “Top Buy” Investment -- Apple Inc. (AAPL) -- One of the Top Quality Technology companies with great product lines, consistently good earnings, and high volume activity on their stock options. Major investors quietly buy and sell large volumes of Apple Stock and Options every week – and it’s one of my top buys every month. After earnings, look for a pull-back in the share price. Share price target was raised by JP Morgan to $350 -- Follow the price movement and activity on Apple Inc. over the next 6 months – this will give you good experience and first-hand exposure to following a Top Quality company investment.
  
  Here's more details on previous low cost (AAPL) Stock Options! -- Click Here!
  
  
• Note: Baidu.com Inc. (BIDU) NASD: $78.xx -- Company performed a "10 to 1" stock split recently -- share price was over $630. Company reported another good earnings report this week -- but no big price spike on the news as it normally trades up $20 or more after the earnings. Share price started to move up gradually on Friday to end the week above $78. Watch for more price movement on any positive market news. BIDU is a big price mover, and should do well again ahead of the next earnings timeframe.
  
  
• Note: Goldman Sachs Group (GS) NYSE: $147.38 -- Share price traded down initially on earnings -- then started a rebound on Friday. Look for more price movement now that most of the major issues have been resolved for GS. I think GS will still be the best opportunity in the financials!
  
  
• Note: International Business Machines (IBM) NYSE: $128.03 -- Share price traded back up after initially selling off on the earnings Tuesday. Still a good solid buy. Overall earnings are still positive. Trading range should stay around $120 - $130. Watch for another pull back after the earnings!
  
  
• Note: Intuitive Surgical Inc. (ISRG) NASD: $325.10 -- Big price drop on the earnings news -- share price recovered the same day to trade all the way back up into positive territory, and gained more in share price the next two days. Healthcare sector still in the news due to the healthcare reform issues. Continue to track news and price movement for the upcoming weeks! Any positive news in the healthcare sector also helps boost the ISRG share price. Stock Options prices generally move higher too and are lowest during the last week before option expiration!
  
  
• Note: McDonalds Corp. (MCD) NASD: $69.94 -- Good solid buy opportunity -- earnings reported good numbers but same-store-sales numbers reported lighter than expected. Share price usually gets a good boost on any specific good news or just ahead of earnings timeframe. Another turnaround opportunity. Look to buy low-cost stock options on any pull-backs in the $66 -- $67 range!
  
  
• Note: Potash Corp. (POT) NASD: $98.38 -- Share price traded higher again this week! Investors still see this sector as undervalued now and starting to bid up the price. Share price had been well over $122 three months ago. Commodities and Agriculture are still in favor -- watch for upgrade in the sector, then the share prices for Agriculture stocks will start to trade up again. Nevertheless, this is a big price mover for the agriculture sector -- Look for another opportunity on any positive news for commodities!
  
  
  

This months FEATURED Article is "How To Find Low Cost Stock Options"! Click here!

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If you working with a Financial Planner, Investment Advisor, or Investment Group of friends, this is a great program to have that will definitely help to quickly automate your planning strategies, quickly see figures for making adjustments and most of all eliminates those hard to figure calculations for buying company stocks or stock options!!

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Jimmie V. Smith Jr.
markettrading@juno.com