Technical analysis vs Fundamental analysis ?

[sebfr]

Today, CEM...

News on zacks.com :
"Chemtura is in the midst of a price/raw material squeeze"
http://www.zacks.com/newsroom/commentary/index_pdf.php?id=3752

Technical analysis :
1. Majour downtrend
2. An descending triangle is formed.

Strategy :
1. SELL if triangle is broken.

[sebfr]

TELK for BUY strategy..

News :
"Telik is a relatively early stage biotechnology company, so it doesn't have earnings yet. However, results thus far have been encouraging. Second-quarter results exceeded estimates by almost 15%. In fact, the company has surpassed expectations in each of the past 10 quarters, with seven of them registering double-digit surprises. Seven analysts have raised their numbers for this year, while four have done so for next year. "

"TELCYTA is in phase 3 clinical trials for the treatment of platinum resistant or refractory ovarian cancer and lung cancer. The company's other product TELINTRA is a small molecule bone marrow stimulant that activates signaling pathways and lead to the growth and differentiation of blood cells."

"Another strength of the company is its strong cash position. As of June 30th of this year, TELK had almost $174 million in cash and cash equivalents on its balance sheet. It is important for biotechnology companies to have ample cash on hand in order to fund operations and invest in its future."

Technical analysis :
1. TELK was in a major downtrend since breakaway gap...But an ascending triangle is formed with good volume

Advise :
Wait for a breakout of an ascending triangle

SSCC for a BUY strategy...

News
"Select Comfort is targeting annual sales growth of 15%-20% and earnings growth of 20%-25% over the long term."

Technical analysis :
1. Symetrical triangle with good volume

Strategy :
Wait for a triangle breakout


Good trade

[sebfr]

Today,
ALO...

News :
Alpharma, Inc. (ALO) is a pharmaceutical company with operations in human and animal pharmaceuticals. The company recently divested its generic business in order to focus more on specialty pharmaceuticals. With the sale of the generics business, Alpharma should see sizable improvement in its operating margin.

However, we think Alpharma is entering into a lengthy transition period and needs to drive growth across all its business segments through new indications and acquisitions. Visibility on new products is limited and we would remain on the sidelines until certainty of growth improves.

Technical analysis :
An inverted Head and shoulders is forming..

Strategy :
Wait for a breakout of the neckline

[sebfr]

Today...FLR

Fundamental analysis : GOOD
"Fluor Corporation (FLR), a Zacks #1 Rank stock, exceeded analysts' earnings expectations in four out of the past five quarters, most recently by 11.1%. On Aug 3, the Board of Directors declared a quarterly cash dividend of 20 cents per common share of stock. FLR is currently yielding 1.0% and has a five-year average dividend yield of 1.5%.

"FLR beat the Street's earnings estimate in four out of the past five quarters by an average margin of 26.0%. In each of the four quarters the company produced a double-digit earnings surprise. Earnings per share grew 10% over the past five years and are forecasted to grow by a larger magnitude going forward—14% over the next 3-5 years. The company is expected to release its third-quarter results on Nov 6.

"For the first six months of 2006, FLR posted profits of $155.4 million. This compares with $31.0 million achieved in the first six months of 2005, which included a pre-tax charge of $65.0 million for a hotel project in the Caribbean. Revenues jumped 22.4% to $7.1 billion from $5.8 billion

"On Aug 7, FLR reported second-quarter earnings per share of 80 cents. This amounted to an 11.1% positive earnings surprise and a 37.9% year-over-year improvement. Revenues came in at $3.46 billion versus $2.92 billion in the second quarter of 2005. The company said it received a record $5.75 billion in total new contracts compared to $3.23 billion a year earlier."

BUT

Technical analysis : BAD
1. Major downtrend
2. Descending triangle breakout
3. Low volume on the last pullback..
4. Strong resistance at about 82.5...

Strategy :
1. Short-term : SELL
2. Long-term : wait for better chart

[sebfr]

Today LRCX...

Fundamental analysis :
Lam Research's earnings estimates have dramatically increased since the company beat expectations. This year's numbers have jumped 10% just in the past week. Next year's estimates have increased 12.3% over the past week. The company has exceeded earnings estimates in 13 straight quarters. Nine analysts have raised their numbers for this year, while five have done so for next year.

The company more than tripled third-quarter earnings over last year. LRCX said net income was $163.9 million, or $1.13 per share. Analysts were predicting earnings per share of $1.02. Revenue for the quarter soared to $604.4 million from $320.9 million for the same period last year and ahead of the average analyst estimate of $593.3 million. New orders for the company increased 13% to $725 million from the second fiscal quarter.

"September results reflect another quarter of strong revenue and earnings growth for Lam Research," stated Steve Newberry, Lam Research's president and chief executive officer. "Operating margins and income achieved record levels, and demonstrate the leverage throughout our business model."

LRCX is trading at 11.9x this year's estimate of $4.19 per share, well below the long-term growth rate of 17.14%, giving the stock a PEG ratio of 0.69.

Technical analysis :
1. Great momentum : MAJOR UPTREND
2. a CUP AND HANDLE is forming..

Strategy :
BUY on breakout of neckline with high volume

[sebfr]

Hi,

OS today

Fundamental analysis : Good
"Oregon Steel exceeded earnings estimates in its second quarter by almost 26%. All five analysts covering the stock lifted their earnings projections both for this year and next. Over the past 90 days, this year's estimates have increased 13.1% to $5.11 per share.

"OS will report third-quarter earnings in early-November. Analysts currently expect $1.35 per share, up 10 cents from three months ago and more than double the 57 cents earned last year.

The stock is attractively valued at 9.8x next year's estimates of $5.55 per share, below the long-term growth rate of 15%, giving the stock a PEG ratio of 0.66.

Technical analysis : Good
1. Major UPTREND
2. New high -> trendline breakout on high volume

[nikkir]

SENSEX
Mode-Flat
Resistance-17169/17221/17306
Support-17066/17015/16929
Above resistance= Strong
Below support =Weak
If NIFTY breaches 5167 and stays above 5151 with good volume then NIFTY may see 5190.If Nifty breaches 5104 and stays below 5120 then NIFTY trend is bearish.Then expected lower target is 5080 and 5050.
If SENSEX breaches 17221 and stays above 17169 with good volume then possible upper target is 17300.If Sensex crosses 17015 and stays below 17066 level then Sensex trend is bearish.Then expected lower target is 16930 and 16820.
NB:-Today market may open Gap down ahead of weak global cues.Be careful while trading.