Stock Research

Over and over again I’m writing about prices for oil. This theme arouses interest of the majority of population of the Earth. The World prices for oil on July, 27th 2006 have considerably risen. So, on results of the trades at leading oil stock exchanges InterContinental Exchange Futures (ICE Futures) and New York Mercantile Exchange (NYMEX) the official prices of oil futures of the nearest month of delivery have accordingly made (London):
- IPE Brent Crude – $75.01 (+1.01) for barrel;
- Light Sweet Crude Oil – $74.54 (+0.60) for barrel.

The Securities and Exchange Commission of the USA is measured to toughen requirements to the financial reporting given by the companies. In particular, the companies will be obliged to give full data on the sizes of indemnifications received by their top management. Besides the commission will demand from the companies precisely to define and inform concrete terms of carrying out of auctions and time of validity of offers under those or other transactions. Associated Press informs about it.

Visa USA, MasterCard Inc. and Diners Club have agreed to pay in total 336 million dollars under the claim for overestimate of cost of converting of currencies and concealment of cost of services at service of electronic credit cards. As representatives of American law firms Berger & Montague PC and Lerach, Coughlin, Stoia, Geller, Rudman & Robbins have informed, the agreement on pre-judicial payment of indemnifications should be approved by one of courts of New York. On conditions of the agreement, money will go on payment of indemnifications to owners of credit cards and on a covering of a legal costs, Associated Press informs.

Japanese motor-car manufacturer Honda Motor Co. plans to begin manufacture of planes. As Associated Press informs referring to anonymous sources in the company, reception of orders will begin already in the end of 2006. Earlier some American mass-media have published the information that Honda is going to debut in the market small business-planes. Representatives of the company yet do not give official comments in occasion of these messages. We shall remind, that development compact business-planes Honda has started still in 1986, using the engines given by other manufacturers. In December 2003 Honda Motor Co. has successfully finished tests HondaJet - the new experimental plane of a business class. HondaJet, equipped by turbofan engines Honda HF118, represents the first developed Honda the plane (the occupancy is 4-8 person), on whom the engines created by the company are established.

The prices for oil futures on July, 25th have noticeably decreased. If in the morning price showing exceeded a mark $75 for barrel, to evening the prices under transactions have again returned on a level $73 for barrel. Results of the trades at stock exchanges contracts of the nearest month of delivery on July, 25th have made:
- in New York on New York Mercantile Exchange (NYMEX) the official price of future Light, Sweet Crude Oil (September) has fallen to 1 dollars of 30 cents (-1,7 %) and was established on a mark $73.75 for barrel (the lowest price of closing for a week) at the prices under transactions for session $73.55-75.78 for barrel;
- in London on InterContinental Exchange Futures (ICE Futures) the official price of future IPE e-Brent Crude Futures Electronic (September) has fallen off on 1 dollars 33 cents (-1,8 %) and was established on a mark $73.28 for barrel (the lowest official parameter more than for two weeks) at the prices under transactions for session $73.10-75.41 for barrel.
High Volatility under transactions at the trades on July, 25th it has been caused by expected development of a situation in the Near East. On the one hand, continuation of a confrontation and threat of its distribution on the countries next to Lebanon pushed oil quotations upwards. On the other hand, across the Near East and firm intentions of the Arabian countries to accept drastic measures for cease-fire in Lebanon formed international meeting forthcoming on July, 26th in Rome in the market of that expectation that the conflict in region joint efforts will manage to be extinguished. The prices for oil have gone down after the state the Secretary of State of the USA Condoleezza Rice has suggested entering into Lebanon the international forces.
Futures for gasoline and residual oil on NYMEX on July, 25th have gone down within the limits of 1.5 %. During first half of day the steady rise in prices on gasoline and residual oil was observed, that technically supported growth of oil quotations. The prices for petroleum products grew because of expectations of reduction of their deliveries to a home market of the USA. We shall remind that in connection with a stop of manufacture on several oil refineries in the USA oil refining in the country has decreased approximately on 500 thousand barrel per day. The rise in prices on gasoline also was promoted by expectations of falling since August on the following of 5-7 months of its import Venezuela - the country which is the main external supplier of gasoline in the USA. Deliveries of gasoline from Venezuela since August can essentially be reduced in connection with carrying out after a fire of repair work on the world’s largest oil refining complex Amuay-Cordon (throughput - the order 940 thousand barrel per day). At the same time the rise in prices on petroleum products, first of all gasoline, on July, 25th has been complicated in connection with the high prices of the retail market. We shall remind, that retail prices for gasoline in the USA have already exceeded a mark of $3 for gallon and now concede to the absolute record very little.
The high prices for gasoline, participants of the market consider, can become the reason of decrease in consumption of automobile fuel.
Decrease in the end of day of petrol quotations also was promoted by expectations of the publication of the weekly report of the Ministry of power of the USA forthcoming on July, 26th about a condition in the country of stocks of crude oil and petroleum products.

Adjusting bodies of the European Union (EU) have approved merge of manufacturers of the telecommunication equipment - French Alcatel SA and American Lucent Technologies Inc., Associated Press informs.
The federal trading commission of the USA has passed the positive decision concerning the given transaction in June 2006. Alcatel SA and Lucent Technologies Inc. have made a decision on merge in the beginning of April of current year. The proceeds of the incorporated company, by calculations, will reach 21 billion euro (26.5 billion dollars) a year.
In management Alcatel-Lucent representatives of two companies will be presented in an equal parity. The head of the incorporated company becomes present Lucent’s executive director Patrisija Russo. Alcatel’s chairman and the main executive director Serge Tchuruk now becomes chairman of board of directors Alcatel-Lucent without executive powers. Both companies plan to finish the transaction up to the end 2006.

One of the subjects under discussion is the price for oil and gasoline. That’s why I time and again advert to this subject. So, in the USA retail prices for gasoline have reached record values, representatives of research company Lundberg Survey have declared. By results of comparison of the prices for gasoline on 7 thousand American gas stations, an average of retail price it has been certain at a level 3,015 dollars for gallon. Thus the minimum price for gasoline has been noted at the gas station in state of South Carolina – 2.77 dollars for gallon, while maximal - on filling stations of San Diego – 3.28 dollars for gallon. The previous maximal value of an average retail price for gasoline in the USA – 3.0117 dollars for gallon - has been noted in September 2005.

The Largest Brazilian air company Varig which is on the verge of bankruptcy, today has been sold on auction to former subsidiary - VarigLog. How absurd! The sum of the deal has made 500 million dollars. VarigLog was the unique participant of auction, Associated Press informs.
Initially the group of its employees applied for purchase of the company - TGV. The sum of their offer was below (449 million dollars). However court on affairs of bankruptcies has cancelled already planned and coordinated sale as group TGV did not manage to make the first payment at a rate of 75 million dollars. Company VarigLog (the former branch Varig) engaged transportations of cargoes, has been bought in 2006. Company Volo do Brasil. However this deal still should receive approval by authorities, as foreign investors supervise Volo. Under the law, foreigners can own only 20 % of the Brazilian airlines.
The court has declared that will not undertake actions on liquidation of the company while company’s creditors will not apply with the request for it.
Airline Varig has financial problems within several last years. Its duty makes 8 billion real (3.5 billion dollars). In June 2005 Varig became the first Brazilian company which has got under action of the new law on bankruptcies. Varig remains the largest international air carrier of Brazil though in a home market has conceded to the competitors - TAM and Gol. This is small wonder after financial problems during several YEARS!

Today I’d like to analyze financial positions of several world-known companies such as Intel Corp., Motorola Inc., Apple Computer Inc. and American AMR Corp. To my mind this information will be useful for each investor and will help him to make prognosis.
Net profit of the largest in the world manufacturer of microchips (corporations Intel Corp.) on results of 1st half of 2006 year has fallen to 46.8 % and has made 2.24 billion dollars. A year earlier it has made 4.22 billion dollars. Such data contain in the financial report of the company that has been published today. Proceeds of Intel for first six months 2006 has decreased on 9.2 % - up to 16.95 billion dollars, whereas in 2005 this it has been fixed at a level 18.67 billion dollars. Operational profit has decreased on 50.9 % - up to 2.79 billion dollars instead of 5.68 billion dollars in 2005. The profit before tax has decreased on 47 % - about 5.91 billion dollars up to 3.13 billion dollars.
Net profit of Intel on results of 2nd quarter of 2006 has decreased for 56.6 % and has made 885 million dollars In April-June 2005. The net profit of the company has made 2.04 billion dollars. Proceeds for accounting quarter have decreased on 13.2 % - about 9.23 billion dollars up to 8.01 billion dollars. The Operational profit has decreased on 59.5 % - up to 1.07 billion dollars (in comparison about 2.65 billion dollars year earlier). Profit before tax in 2nd quarter of 2006 has decreased for 54.5 % - about 2.75 billion dollars up to 1.25 billion dollars.
Oh, it’s the bed information for shareholders of Intel…:(

Net profit of one of the leading world manufacturers of mobile phones American Motorola Inc. on results of first six months 2006 has grown on 27.4 % and has made 2.07 billion dollars in comparison about 1.63 billion dollars a year earlier. Such data contain in financial report Motorola published today. The Sales volume of the company in the 1st half of 2006 has grown on 26.6 % - up to 20.48 billion dollars in 2005. This criterion has made 16.18 billion dollars. Operational profit for the accounting period has grown on 30.7 % - up to 2.37 billion dollars in comparison about 1.81 billion dollars year earlier.
Net profit of Motorola in 2nd quarter of 2006 has grown on 48.3 % - up to 1.38 billion dollars instead of 933 million that have been received in April-June 2005. The Sales volume has grown on 29.4 % - up to 10.88 billion dollars in 1st quarter of 2005. This criterion has made 8.41 billion dollars. Operational profit has grown on 58.9 % - about 958 million dollars up to 1.52 billion dollars.
Geronimo! I like products of this company and I am unfeignedly glad to its achievements :)

Net profit of the American manufacturer of computer techniques Apple Computer Inc. for the first 9 months 2005-2006 has grown on 59.9 % and has made 1.45 billion dollars. A year earlier this criterion has made 905 million dollars. Such data contain in the financial report of the company published today. Sales volume of Apple since October 2005 till June 2006 has grown on 41.2 % - up to 14.48 billion dollars in comparison about 10.25 billion dollars year earlier. The operational profit has grown on 49.8 % - about 1.23 billion dollars up to 1.85 billion dollars.
Net profit Apple in 3rd quarter of 2006, which has come to the end on July, 1st 2006, has grown on 47.5 % - up to 472 million dollars instead of 320 million the dollars received on year earlier. The Sales volume for accounting quarter has grown on 24.1 % - up to 4.37 billion dollars Year earlier this criterion has made 3.52 billion dollars. Operational profit has grown on 32.6 % - about 427 million dollars up to 566 million dollars. Growth of financial parameters Apple has been reached in many respects owing to successful sales MP3-players iPod and computers Macintosh on the basis of processors Intel.
My congratulations to company! It’s always pleasant to achieve a success!

Net profit of the American AMR Corp., the parent company of the largest air carrier in USA American Airlines, in 2nd quarter of 2006 has grown in 5 times and has reached 291 million dollars against 58 million dollars year earlier. Such data are presented in the report of the company published today. Proceeds of AMR for the last quarter of 2006 has made 5.98 billion dollars, on 12.5 % having exceeded a criterion in 5.31 billion dollars for the similar period of 2005. Analysts predicted proceeds at level 5.93 billion dollars.
Successful activities, according to representatives AMR, are caused by a significant sales volume and the high prices for tickets which have helped the company to overcome negative consequences of a rise in prices on fuel. The company finishes in plus works the second quarter successively. Prior to the beginning of 2006 AMR 22 quarters reported about losses.
Such great results!!! Let’s keep that up! :):)

 As I have promised I tried to find as many as I can advices for those investors who only begin to trade. So herewith you can find several advices for keeping of profitable positions and output from them.
1. Do not fix small fast profit on transactions in directions of the main trends. In particular, if you are absolutely assured of the transaction, never fix profit in the first day.
2. Do not hasten to close a position after occurrence of break in your direction. Use break as an initial stop; then enter following stops.
3. Try to use following stops, placing them proceeding from development of a market situation instead of fixing profit at target levels. Use of the purposes often prevents to realize completely the opportunities given by the main trends. Remember, from time to time greater victories are necessary to you to block failures.
4. Despite of the previous rule, all the same it is useful to define the initial purpose during the moment of opening of the transaction that will allow to apply a following rule: if during a short time interval after the open position the most part of target profit (for example, 50-60 % for one week or 75-80 % for two or three weeks) it is necessary to fix profit parts is reached, meaning restoration of the liquidated contracts at correction of the market. The idea consists that would be correct to take fast significant profit. Though this rule can often lead to loss of the remained part of profit on the liquidated position, keeping of a position in a similar case can often conduct to feverish liquidation at the first sharp return of the prices.
5. If the purpose is reached, but the position still is pleasant to all of you, leave it, using a following stop. This rule is important from the point of view of opportunity to trade in a direction of the main trend. Remember, the patience is necessary not only during those moments, when you wait for good transactions but also to not close a position when it makes a profit. Inability to receive adequate profit on the correct transaction in a direction of a trend is the key factor limiting profitableness of trade.
6. One private exception of the previous rule is that if at you very much the greater position and cost of your actives grows on eyes it is necessary to consider an opportunity of partial fixing of profit. When all goes too well to be the truth, be on the alert! Probably, it is time to start to fix gradually profit and to place close following stops.
7. At fixing of profit have arrived in the transaction which, in your opinion, still has long-term potential (but, probably, it is vulnerable from the point of view of short-term correction), develop the plan of renewal of a position. If the market will not make the essential return, allowing to renew a position, watch occurrence of price models which can be used for a choice of the moment of a new input in the market. Be not afraid to open again a position even if the new point of an input in the market appears worse, than a point of an output if representations about long term of a trend and an estimation of a present situation assume renewal of a position. Inability to return to the market at the worst price can often conduct to loss of the basic part of greater trends.
8. When trade in several contracts, avoid an emotional trap which consists in desire to be right on 100 %. In other words, fix profit parts. Always try to keep, at least, a partial position in a direction of a trend - until the market will not generate convincing turning figure or will not reach the important protective stop.