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Dear Subscribers,
I am highly amused by the different reactions that took place after the FOMC Meeting Announcement came out Tuesday afternoon. In particular day traders acted like hyperactive children at a birthday party. Instead of screaming for more cake, candy and cola they pounded the table for more stimulus. So when they saw the Fed leaning more in that direction they pushed up the Dow by 100 points in just minutes.
Investors came in a bit later to find the traders crashing from the "sugar high". You could say that the investors were like the parents who needed to clean up after the children's mess. What investors heard from the announcement was "if the Fed is ready to use more stimulus, then economy must be a LOT worse off than we suspected". From there the traders rally was deflated and the market ended the day in the red. It will be interesting to see which sentiment prevails going forward. I personally did not read it as positive news for the economy or the stock market. That does not mean sell everything and head for the hills. It means this recent leg of the rally is probably nearing an end and we are likely to head lower in the trading range.
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Best,
Steve Reitmeister
Executive VP, Zacks Investment Research
Today's Top Stories: Wednesday- September 22, 2010
ZACKS RANK BUY STOCKS
- Aggressive Growth - Stoneridge, Inc. (SRI) Zacks Consensus Estimate for 2010 is currently 49 cents, up considerably from the $1.25 loss in 2009. Next year's forecasts are averaging $1.30, a 165% growth rate. Read More...
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Growth & Income - Lorillard Inc. (LO) Zacks Consensus Estimate for 2010 is $6.55 per share, which represents 13.7% growth from 2009. The 2011 estimate is currently $7.14, or 9% higher than 2010 EPS. Read More...
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Momentum - RPC, Inc. (RES) second-quarter revenue doubled from last year, jumping to $253 million. Earnings also came in strong at 32 cents, 78% ahead of the Zacks Consensus Estimate. Read More...
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Value - Ultra Clean Holdings Inc. (UCTT) Zacks Consensus Estimate has jumped to 31 cents from 20 cents. The full year has climbed 27% to $1.04 per share in the last 60 days. This is earnings growth of 308.7%. Read More...
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ZACKS MUTUAL FUND RANK
- Top 5 Aggressive Growth Mutual Funds
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BEST OF ZACKS EQUITY RESEARCH
- Bull Of The Day:
CIGNA Corp. (CI)
Full Zacks research report: Read More...
- Bear Of The Day:
Kirkland's, Inc. (KIRK)
Full Zacks research report: Read More...
- ZACKS INDUSTRY OUTLOOK: Health Care Review & Outlook - Sept. 2010
The health care industry is currently undergoing a period of tremendous uncertainty due to the implications of the recent Health Care Reform Act -- named the PPACA -- after it becomes fully effective. We remain favorable on CIGNA (CI) and UnitedHealth. Read More...
- Athenahealth (ATHN) Reaches CHRISTUS
- Airgas (ARG) Wins BA Deal, Contracts Galore
- St. Jude's (STJ) Athena DBS Gets CE Mark
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BEST OF ZACKS.COM PARTNER COMMENTARY
EDUCATION: Aggressive Growth
Companies "Buyback" Their Own Stock Read More...
PeopleAndPicks.com:
VIP "Eversar" forecasted the market drop gaining some profit with BUY calls in (AGN), (CPA), (MEOH) and (WBD). Read More...
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Best,
Steve Reitmeister
Executive VP, Zacks Investment Research
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