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1. Re: Bank Dividends
By David Peltier
8:36 a.m. EDT
Interesting article to the right by Michael Stichnoth about
within the next year or so. By the way, welcome to the site!
I do disagree with one point, however. I don't think that the government involvement with the banks led to these dividends to be cut. If that was the case, I don't think we'd have seen so many other dividend cuts in other industries.
Rather, the banks raised these dividends in lock step with the robust earnings growth they realized over much of the past decade.
But when the 100-year storm hit and the core business could no longer generate the profits to cover the dividends, it made sense for the dividends to go.
In the meantime, a stock like
has moved at least 3.1% for 13 straight sessions. It's this type of action that has moved dividend stocks of all kinds to the back burner for most investors in recent months.
2. GameStop Disappoints
By Frank Curzio
9:38 a.m. EDT
just lowered next quarter's earnings guidance to 31 cents -- sharply lower than the consensus estimate of 40 cents. The lowest analyst estimate out of the 17 covering the stock was 33 cents, and 14 of those analysts have "buy"/"strong buy" ratings.
Based on today's 12% selloff, valuation is attractive given its strong list of titles coming out in the back-end of the year -- just ahead of the holiday season. But I would wait before buying, or until analysts adjust their estimates and ratings, which should happen shortly after the conference call ends.
3. A Little Elliott Goes a Long Way
By Alan Farley
11:01 a.m. EDT
This morning's gap down looks like a third-wave continuation gap off Wednesday's morning high. This structure predicts the halfway point of the selloff, and the embedded third wave.
In turn, this suggests a decline into last Friday's low, followed by a fourth-wave bounce that fails and breaks that low in a fifth-wave selloff. That could take another day or two.
index futures chart
4. Intuit Ramping
By Gary Morrow
11:02 a.m. EDT
is up over 8% on heavy volume. The stock began the day with a huge gap-higher open that lifted the stock well above heavy resistance near $25.50 and $26.50. The move this morning extends a very powerful month for the stock, reversing the steep and choppy selloff it suffered in April. The shares are now trading just below their 2009 highs set last month at $28.30.
The surge today has left behind strong support between the $25.50 and $26 area. The stock's 200- and 50-day moving averages are in this area and will be able to support a pullback. On the upside, as the weekly chart (below) shows, there is quite a bit of resistance near $28.
The likely course for Intuit over the next few weeks would include a light-volume pullback after a brief struggle near the 2009 highs. This would create a low-risk buying opportunity near support and allow the stock to regain its strength for a successful run to new highs for the year.
I am not in the stock at this time but would be a buyer on weakness.
5. Goldman Sachs
By Timothy Collins
11:36 a.m. EDT
Going long some
at $136.03. If it breaks $135.80, we will keep a close watch on it and would stop ourselves out below $135. A mental stop for now, but we are watching it all day, so we have that ability.
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This article was written by a staff member of RealMoney.com.