HSD – Twitter (TWTR)

The Hot Stock of the Day is Twitter Inc (TWTR). Twitter was on a tear today up 5.80% to close at $51.99 and is up 24.85% since the beginning of last week. Twitter has been an interesting stock to follow since it just IPOed on November 6th, for $26 a share. Investors have been, and still are, cautious thinking that this will be another Facebook (FB) .

Twitter’s revenue model is still being developed and their user base is still growing. They have not fully tapped into the potential revenue generation that they will see moving forward. A lot of investors are sitting on the sideline and waiting to see where they will go.

Twitter is still fairly speculative at this point. I am bullish on this company, but cannot justify it at its current valuation.

Disclaimer: I currently do not hold a position in the above mentioned investment. I may look to add to a position in the above mentioned investment, within the next 30 days. I may take a short position in the above mentioned investment within the next 30 days.

ITD – December 10

The Investment Tweet of the Day comes from @CassSunstein He is currently a Professor of Law at Harvard University. He also served under President Obama as an Administrator of the Office of Information and Regulatory Affairs, from September 10, 2009 until August 21, 2012. This article comes from a similar vein as yesterday’s ITD.

This article dives down into how the top 1% have continually enjoyed an annual income increase of 86.1% from 1993 to 2012. Whereas the rest of the income pool has only seen a 6.6% annual increase. This equates to the top 1% receiving 68% of the total income growth over that period. See the source article for more details.

Source : Bloomberg, TweetSunstein’s Wiki

TriQuint Semiconductor Inc (TQNT)

Today’s stock pick of the day is TriQuint Semiconductor Inc (TQNT) TriQuint has been up 9.92% over the past month and is up 67.49% YTD. This stock still has plenty of upside, with projected next quarter earnings looking to $0.12 a share and a revenue set to increase almost 6% quarter over quarter. TQNT is looking to return to solid profitability in 2014. Look for this to take off with the increase in demand for mobile devices.

TQNT is sitting at a solid support level now at a little shy of $8.00. I expect no resistance until about $9.00 per share, then again at $9.50

TriQuint Semiconductor Inc

TriQuint is a supplier of chips for radiofrequency solutions both active and passive. They have done quite well over the course of the mobile revolution. As more and more mobile/wireless devices come to the market, TQNT is posed to do even better. They also have some clients out of what people think of as the mobile space, they also make devices for satellite comminications, electronic warfare and navigation for military applications.

Disclaimer: I currently do not hold the above mentioned investment. I may be looking to add to a position in the above mentioned investment, within the next 30 days. I am not looking to take a short position in the above mentioned investment within the next 30 days.

ITD – December 9

The Investment Tweet of the Day came from @CNBC For more information please follow the links contained within.

Change in Income Gap by Age Group 1992-2012

This article talks about the widening income gap is currently the fastest between ages 35 and 44, at 21%. This is according to analysis performed by bankrate.com. Along with this there is an increasing disparity between the rich and the poor. (See below)

Average Incomes in US (2012)

Source, CNBC, Tweet

Intel Corporation (INTC)

Today’s Stock Pick of the Day is Intel Corporation (INTC) . I have been quite bullish on Intel, despite all of the news of the declining PC market. Intel has been positioning themselves to be able to succeed in mobile moving forward. They have the leg up when it comes to manufacturing technologies, that no other competitor really has. They have a current analyst recommendation of 2.68 with 39 out of 47 analysts having it at a hold or better.

Last week Intel was up 4.15%, and 20.37% YTD. They just passed their dividend pay date at 3.63%. Their 4th quarter earnings are currently expected after market close on January 15, 2014, with a ~1.5% revenue growth over the previous quarter.

From a technical analysis Intel may have a little resistance as it seems as if it is making a multi-top, and an RSI of 62.89. Look for this stock to breakthrough the $25 resistance level, then settle back down. Below is a chart of INTC.

Intel Chart;

Disclaimer: I currently hold the above mentioned investment. I am not looking to add to my current position in the above mentioned investment, within the next 30 days. I am not looking to subtract from my current position in the above mentioned investment within the next 30 days. 

Weekly Investment Advice

After the news at the end of the previous week, this coming week is probably looking quite bullish. Jobless claims last week were much lower than expected, down to 298K claims, bringing the unemployment percentage down to 7.0%. Last week ended up fairly flat, but this coming week’s should see some upside in the equity market. Expect to have a slight decline in the bond pricing through the end of the week.

Look for the equity market to have gains for at least the first three days, then look for next weeks unemployment numbers to be a key market indicator. Along with the uneploment numbers we also have retail sales and Producer Price Index (PPI) numbers. PPI is used as a major indicator for commodity pricing in the manufacturing sector. Retail sales consensus is to increase 0.6%, and 0.2% if you don’t include autos & gas. PPI numbers are looking to a consensus of -0.1%, and 0.1% less food and energy. Treasury budget will also come late on Wednesday, so look to that as a possible market mover.

November Monthly Market Performance

Overall for the month of November, the equity market had a very solid return. NASDAQ had the best return at 3.58% over the the month, the DJI had just shy of a 3.5% return (but included an all-time high of 16166.94), and the S&P lagged at 2.8%. As we tail off to the end of the year, we are still seeing very good gains month over month. Year to date S&P has seen returns of 26.62% where the midcaps have seen a stellar return of 34.56%. Currently we re predicting a year end close of 1,820-1,825 for the S&P representing a 0.82-1.1% return through December.

Institutional investors are being very timid around what the Fed is going to do moving forward. There is talk of taper in the month of December, but we feel that the current economic conditions to not meet the point at which the Fed will start to taper. A lot of people seem to think that as the economy improves the Fed will completely remove their stimulus of bond buying. We are still a long way from where the economy will need to be, so even if we see improvemnt, they will simply pull back on the total amount of monthly bond buying. We feel as that this pullback will not be a major factor in the total return over december or the following months.

Through the month of November, the leading sector was Healthcare with a return of 3.94%. The lagging sector was Utilities with a return of -1.62%.

Gainers and Losers

Gainers 🙂

MSFT – Microsoft Corporation (+7.7%) with issuing a $0.28 dividend, ex 11/19, due for payment 12/12. This stock is still being eyed by many investors, due to the declining PC market. However this company has and is taking steps to strongly improve its mobile development.

JCP – J.C. Penny Company Inc (35.87%) JCP has been extremely volatile over the year. Even though this stock was up, it still could be seen as speculation due to concerns over it’s future.

PCLN – Priceline.com Inc (13.14%) Priceline came dangerously close to closing at  1200, but came up shy, still managed to reach an all-time high of 1192.33.

Losers 😦

TSLA – Tesla Motors Inc (-20.42%) Tesla has been quite a volatile stock as of late. People have been struggling with valuation of this company and if it is worth the current price that people are paying for it.

FTNT – Fortinet Inc (-15.05%) due to an announcement of a CFO transition, after a short period of time in office.

GLD – SPDR Gold ETF (-5.51%) When it comes to commodities gold has been seriously lagging. Who knows when we will see a bottom to this commodity.

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