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  • Why The S&P 500 Could Hit 1,800 Before The Year's End

    It's time to look at the charts again. The S&P 500 scored yet another record high of 1,759.33 on Tuesday and is now up over one percent from its mid-September high.

    I must admit: the S&P 500 looks pretty good on the chart, driven by bullish sentiment and a desire to reach higher. The breakout appears to be holding, so 1,800 looks reachable by the year's end. Of course, a lot will depend on whether shoppers spend in the upcoming holiday season and if the Federal Reserve starts tapering its bond buying.

    For now, as shown by the long-term yearly chart of the S&P 500 below, you'll notice the two plateaus highlighted by the horizontal blue line, which stretch from 1965 to 1980, when stocks did nothing, and from 2000 to the present. As shown on the chart, the S&P 500 staged an impressive breakout that resulted in a two-decade-long rally extending from 1980 to 2000, based on my technical analysis.

    Back in 1985, the S&P 500 was trading at a mere 200 points. We are up nearly eight-fold since.

    Now, is the S&P 500 headed for another extended breakout like the one it experienced more than 30 years ago? It could definitely happen, that is, if all the stars are aligned.

    Read More : Why The S&P 500 Could Hit 1,800 Before The Year's End

    Oct 25 10:13 AM | Link | Comment!
  • J. C. Penney, Coach Joining The Losers In The Retail Sector?

    The retail sector is fierce and competitive, and the reality is that in this sector, a bad move or investment strategy could set a company up for continued miscalculations down the road. Of course, Blockbuster is a classic example.

    However, my modern-day example of a total screw-up in the retail sector is J. C. Penney Company, Inc. (NYSE/JCP). The company is a perfect case of continued miscalculations and just horrible decision-making that could inevitably bankrupt this century-old American retail icon, sending it in the direction of Blockbuster to settle in the retail graveyard.

    The chart of J. C. Penney below shows the horrific damage caused by its poor execution in the retail sector, which makes the events in Congress seem trivial in comparison.

    The crossing of the 50-day moving average (NYSE:MA) below its 200-day MA in December 2012 (as shown by the shaded sideways oval on the chart below) was a good indication that the worst was yet to come, based on my technical analysis.

    Just take a look at the subsequent decline following the "death cross" on the chart, especially the major fallout from the $15.00 to the $6.00 level in just a matter of weeks.

    Full Story : J. C. Penney, Coach Joining The Losers In The Retail Sector?

    Oct 24 9:19 AM | Link | Comment!
  • This New Trend In Printing A Boon For Tech Investors?

    All kinds of companies are listing on the stock market and one of the hottest sectors remains three-dimensional (3D) printing. This is an investment theme with real staying power and a sector that every risk-capital investor should be scrutinizing at this time.

    One of the stock market's hottest initial public offerings (IPOs) this year is voxeljet AG (NYSE:VJET), which is a German manufacturer of industrial 3D-printing systems. This small but growing micro-cap recently sold 6.5 million American depositary shares (NYSE:ADS) for $13.00 each, raising $64.5 million after fees. The rest of the proceeds went to selling shareholders.

    On its first day of trading last week, the position opened at approximately $24.50 and is now near $39.00. This incredibly strong action reveals just how attractive 3D printing is becoming to the eyes of institutional investors. It's definitely a bright spot for stock market traders. A whole new industry is being formed right now.

    Voxeljet is the latest IPO related to 3D printing, following The ExOne Company (NASDAQ:XONE). We looked at ExOne recently after the position pulled back on the stock market. The company's shares experienced a strong reversal at the beginning of October and are now settling around the $50.00 mark. (See "Wall Street Lowered Expectations for This Stock, But It Got NASA's Attention.")

    Wall Street expects ExOne's sales to grow an average consensus of approximately 68% to $48.0 million this year. Sales are expected to grow another 50% in 2014, as the company turns profitable.

    There are still only a handful of 3D-printing companies that trade on the stock market. There is 3D Systems Corporation (NYSE:DDD), out of Rock Hill, South Carolina. And then there's also Stratasys Ltd. (NASDAQ:SSYS), out of Eden Prairie, Minnesota, whose 3D-printing machines are used to create prototype parts, mostly serving the manufacturing sectors, including automotive, aerospace, computer, and defense customers.

    In terms of stock market performance, 3D Systems has outperformed the group. The stock is very pricey, but it illustrates the desire that investors have to bid up this developing industry.

    Read More : This New Trend in Printing a Boon for Tech Investors?

    Oct 23 9:18 AM | Link | Comment!
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