Goldman Sachs ( GS) and JPMorgan Chase ( JPM) beat the Street. Ben Bernanke sees tentative signs that the decline in economic activity is slowing. Now make money. Frank Curzio is the portfolio manager of Stocks Under $10 and shows you how to profit off of fear and forced selling. Watch his video on whether or not to buy Talbot's ( TLB) after this week's weaker than expected retail sales.
News of the WeekOne under $10 stock, Citigroup ( C), reported better than expected first-quarter results on Friday. General Electric ( GE), which isn't under $10 these days but was as recently as March 30, also posted its numbers and exceeded estimates. Shares of Bank of America ( BAC) came under slight pressure during the week as the Securities and Exchange Commission said it was reviewing Merrill Lynch's bonus payments. AIG ( AIG) sold its auto insurance unit to Zurich Financial Services for $1.9 billion and its AIG Private Bank to Aabar Investments for $253 million. Discussions between General Motors ( GM) and the United Auto Workers union were put on hold as the UAW aggressively pursued talks with Chrysler. Any deal could be a template for GM contracts. Reportedly, the government is considering taking an equity stake in GM, swapping some of the $13.4 billion the carmaker borrowed from the Treasury Department.
Week AheadThe focus continues on banks. Bank of America, Wells Fargo ( WFC), PNC Financial ( PNC) and State Street ( STT) will report earnings. BofA and Wells have signaled that their quarters will be strong, but if they or other banks disappoint, the market isn't going to be very happy. Also, the government will reportedly have remarks about the assumptions of the stress tests on 19 big banks, with full results to follow May 4.
Tune into the Real Story Podcast where Curzio takes you beyond the headlines to tell you what's really going on in the market. Click on this link to subscribe to the podcast today! This week one listener wanted to know when an investor should buy stocks in the under $10 universe. Curzio recommends a healthy mix of technical analysis, news cycle information, fundamentals and gut instinct. He recently added EPIQ Systems ( EPIQ) to his portfolio based on current news, not technicals. The Associated Press reported a jump in U.S. bankruptcies, and EPIQ, a product and services provider for law firms specializing in bankruptcy, will benefit from this trend. Technical analysis had this stock as a potential buy at $19.01. Curzio bought it at $11. On the flip side, Curzio bought McDermott ( MDR) based on fundamentals, but since then the stock has been trading well on technicals. Curzio says investing is hard, and traders have to be flexible, especially when it comes to the volatile stocks trading under $10. Frank and his guests make great calls all the time and you need all the help you can get in this volatile market, so don't miss his podcast.