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Industry Group Analysis
This Week: Big Chart Update for the Week of January 7 1. Introduction 2. Groups That Are Heating Up 3. Groups That Are Cooling Off 4. On The Radar Screen This Week 5. Disclaimer ***********************Our Sponsor************************* New FREE Report. "Armadillo Stocks: 5 Investments That Win By Never Losing" shows how to make BIG PROFITS without big risks. It's FREE. Nothing to buy, try or cancel. Click here: http://www.ppi-orders.com/index.htm?promo_code=0ZX110 *********************************************************** 1. Introduction Sentiment that the economy will rebound later this year has resulted in investors looking past the upcoming earnings season and instead increasing their level of risk tolerance. This change in sentiment has resulted in industry groups such as Electronics/Semiconductors {.DSE} and Homes/Hotels-Motels-Inns {.HOT} rising on the Big Chart. Industry Group Analysis is just another of the many great reasons to be a subscriber to the WallStreetCity website. Besides great industry group analysis and incredible stock analysis, you also get access to the world's most powerful stock screening tool on the planet, ProSearch, all in one subcription package. However, we give you a 30-day FREE trial to this service to make sure it suits you, so give us a try. Click below to take a 30-day FREE trial. http://subs.wallstreetcity.com/c/go/XPRO/WSCE-bc010802?s=S601&D=XWSC ____________________________________________________________ 2. Groups That Are Heating Up Growing optimism for an economic recovery has driven the ranking for Electronics/Semiconductors {.DSE} up to the 98th percentile. Investors have been ignoring valuations in order to avoid risking the next big run up in chip stocks. Historically, semiconductor stocks have appreciated in price 6-9 months before a recovery occurs and with news of price increases coming out of Asia, the current sentiment is that a bottom has been reached by the industry. Chip stocks that have recently traded upwards include Globespan {GSPN}, Amkor Technology {AMKR}, Taiwan Semiconductor {TSM}, Micron Technology {MU}, and ASM International {ASMI}. Homes/Hotels-Motels-Inns {.HOT} has been making a material rebound, rising from the 2nd percentile to the 50th percentile during the past five weeks. Analysts have been gradually upping their ratings on stocks such as Fairmont Hotels {FHR}, Host Marriott {HOT}, and Hilton {HLT} on the basis of an expected economic recovery, a decrease in the rate of revenue decline, and valuation. Notably, growth for many companies in this group is not expected to return until the second half of the year, at the earliest, but increased confidence over airport security could cause industry conditions to improve sooner. Other groups with rising rankings include Basic/Metal {.MET}, Broadcasting/Television {.BTV}, Computer/Components {.DCO}, Home/Pet & Supplies {.PET}, Machinery/Machine Tools {.MMT}, Publishing/Graphics/Supplies {.GSE}, and Services/Advertising {.ADV}. To view the Big Chart click the link below. http://www.wallstreetcity.com/commentary/commentary_group_rotation.asp ____________________________________________________________ 3. Groups That Are Cooling Off Despite the increased level of risk tolerance being priced into the market, Drugs/Biotechnology {.DBI} has lagged on the Big Chart. Rankings for the industry group have fallen for five consecutive weeks. Part of this decline has been caused by news events over the past few days. First, Abgenix {ABGX} announced on Thursday that its rheumtoid arthritis drug, ABX-IL8, failed to show stastical improvements. Then, ImClone Systems {IMCL} began tumbling on Friday as word about a negative article in the The Cancer Letter spread. The newsletter stated that FDA is refusing to review IMCL's application for Erbitux, a treatment for colon cancer. The two announcements are sharp a reminder of the risks inherent with with many biotechnology companies. Other groups with rising rankings include Basic/Metal {.MET}, Broadcasting/Television {.BTV}, Computer/Components {.DCO}, Home/Pet & Supplies {.PET}, Machinery/Machine Tools {.MMT}, Publishing/Graphics/Supplies {.GSE}, and Services/Advertising {.ADV}. To view the Big Chart click the link below. http://www.wallstreetcity.com/commentary/commentary_group_rotation.asp ____________________________________________________________ 4. On The Radar Screen This Week Services/Advertising {.ADV} has improved its rank for four consecutive weeks and now sits just shy of the top quintile. The industry group is very dependant on economic cycles for revenue growth and and optimism over a recovery has resulted in several stocks testing their six-month highs, including Publicis Group {PUB}, WPP Group {WPPGY}, Catilina Marketing {POS}, and Omnicom Group {OMC}. With little in the way of economic news this week, expect short-term sentiment to determine the price direction of this group. To view the Big Chart click the link below. http://www.wallstreetcity.com/commentary/commentary_group_rotation.asp ***********************Our Sponsor************************* Tech Buyback Portfolio Posts Stellar Gains: +39.23% YTD! David Fried knows a stock is undervalued when the company buys back its shares. That's how he earned 39.23% YTD in techs while the benchmark Nasdaq fell 21.82%. 'Buy these 5 techs today,' Fried says. Get them with a FREE trial: http://www.investools.com/c/go/BACK/WSCE-backTX3 ********************************************************** 5. Disclaimer WallStreetCity's Industry Group Analysis is published solely for informational purposes and is not a solicitation or an offer to buy or sell any stock, mutual fund or other security. The information obtained from internal and external sources is considered reliable, but has not been independently verified for accuracy and completeness. WallStreetCity, its employees, and/or officers and directors, may from time to time have a position in the securities mentioned and may sell or buy such securities. Trading involves risk, including possible loss of principle and other losses. Trading results may vary. No representations are being made that these techniques will result in or guarantee profits in trading. Past performance is no indication of future results. 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