June 9, 2011

TEXAS INSTRUMENTS (TXN) SWOON DUE TO NOKIA (NOK)

Texas Instruments (TXN) provided mid-quarter update after the close yesterday. First the stock swooned on lower projections but then bounced right back when Texas Instruments on the conference call stated that the short fall was due to Nokia (NOK).

The analysis of the conference call shows that the business of Texas Instruments is stable. Texas Instruments can still beat estimates for the second half.

We will provide an actionable signal on Texas Instruments in real-time on the ZYX Buy Change Alert when all six screens of the ZYX Change Method are met.… Please click here or the title below to read more.

June 9, 2011

CAUTION NEEDED ON OUR MCDONALD’S CORP (MCD) TRADE-WE ARE EXITING

There were two immediate triggers to our McDonald’s (MCD) trade. First McDonald’s reported less than expected same store sales increase. Second in the premarket McDonald’s broke the support at $78.82, its 50 moving average.

The macro picture is not favorable for a number of reasons. First McDonald’s is feeling the pinch of higher commodity costs, second McDonald’s is unable to increase prices to offset costs. Third the overall market has pulled back but McDonald’s shares are still near all time high. And fourth McDonald’s trades at 16 time forward earnings, which is a premium to the S&P 500.

Based on the data, the stop should have ended up under $78.… Please click here or the title below to read more.

June 9, 2011