A Correction So Soon?
It was another hectic day in the CCC Crazy Cronin Crib. I got to escape early to see my colleagues in a video conference in Hetlingen Swizerland. Then we had to run out of the building to meet our Audio contractor so they could pick up our Flat Screen TV from storage (one of the few things we were able to salvage from down stairs.) Then back to the building to be on a 10:00 am conference call which was cancelled. We caught up with a few employees, attacked the e-mails and had lunch in while writing cover letters and magazine articles. Devin was stuck dealing with the contractors through much of the day. Our occasional priest from Utah returned my call and it looks like he will be able to participate in our daughter's wedding this fall.
Then we got a really funny call from our pool contractor. After the flood, it took us about 8 weeks to get the equipment and the water back to a place where it was not producing flesh eating toads.

One of the problems we had was with the controller telling the pool what to do. After calling the factory and speaking with the engineers, (none of them had ever actually driven a train. One of them had taken one on vacation though.) they said they would get me in touch with one of their distributor/technicians. They came out and said they could get everything working fine and all they needed was a check. It was a big check (actually all of our checks are the same size, but we like to say they are big checks.) and they went to work. Four days later we had a new controller. The pool was not doing anything we asked to do, but it is a cool controller with buttons and lights and everything. The technician came out again and messed with the controller and moved the antennae about 4 inches down and to the left. That made all the difference in the world. The pool is still doing what ever it wants to when ever it wants to but that antennae looked stunning in its new position. We called the technician again and he came out and then left. I called him the next day and he said he had to call the factory. Ok, that is kinda how we found you, but this should be fun. He called me the next day and low and behold the mystery was solved. He asked if we or our neighbors had a wireless network in our homes? Dah! He said we were probably getting interference from one or all of the networks. So I went to all the neighbors and asked them to turn their routers off between 7:00 AM and 11:30 PM so we could use our pool. This seems to be working well except for the graffiti sprayed on our garage every night. Something about "Route This" and "Idiot Pool Fool".
| Don't Worry Aunt Kay Its Not Really Our Garage |
Apparently we are the only neighborhood to have pools and a wireless network in our homes. After explaining to him that it would not be practical to have everyone turn off their networks, he called the factory again. He then called me again and gave me the number to factory. He apparently forgot that is how this whole thing started. I asked why I had to call the factory to which he replied they need some information from you. I said Ok, like what. They need your contact number. I told "Mr. Too Close to the muriatic fumes guy" that he had my contact info and he could give them that. He then explained they needed the serial number off the controller he had just installed. I reminded "Mr. Never Mix Chlorine and Muriatic Acid in confined quarters" that he had installed the controller so he had that information as well. To which Mr. "Diatomaceous Earth is not an appetizer" said well then I guess I can call them back. And we wait while this vicious circle continues.
Caution Boring Stock Stuff Ahead
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In The Market Today

The New Correction Is Here or so proclaims IBD. I had a feeling with the increase in volume to the down side over the last few days we would see IBD drop their rating from Uptrend Under Pressure to Market Correction and so they have. What does that mean to you? Well remember the trend is our friend. So if the trend is downward, don't be getting into new positions UNLESS you have really high confidence. Also look at how your stocks are doing against the trend of the day. The S&P 500 and Dow was off a little more than half a point. If your stock went down more than a point, know why? It maybe a weak stock and the market correction shake out the weak first. If your stocks were flat today, it might be a sign of strength creating a buying opportunity. If your stock went up with decent volume, you may have a real work horse. Watch them close, consider adding to their position and have your stops in place.

M & A activity could not keep the market propped up. There was a sell off in commodities and there were two ugly reports today. The ADP employment report was weak and could be an omen for the real report coming out Friday I think. Also the ISM service sector report came out weaker than expected and the retails sector got smacked around a bit. The Dow was down more than 100 points at one point on fairly heavy volume. What is that called boys and girls? Yeah, that's right a Distribution Day. The kind of volume we have seen over the last few sessions can almost assuredly be attributed to the big boys and girls. Actually the Big boys aren't that big. Izzy Englander stood eye to eye with me and I am 5'6" on a good day. In other words Mutual Funds and Hedge Funds are moving this market. You and I are just the blind fluffy monkey in the Casino. When you look at the technicals (The pretty lines you see on those index charts, usually the 20, 50, 100 and 200 day averages.), are indicating a drop for the next several trading sessions. Beyond that, there is room for price support. Unfortunately that price support is about 500 points down from where we are here on the DOW. That would be 12,230 and we closed today at 12,723. You know I watch the S & P. Support is at the 1,317 and it closed today at 1,347. So we could see another 3-4% correction in the weeks ahead.
The Big Mover of the day was RAH Ralcorp Holdings, Inc. provides various food products and ready-to-eat cereal products. The company's Branded Cereal Products segment offers ready-to-eat cereals under Honey Bunches of Oats, Pebbles, Post Selects, Great Grains, Spoon Size Shredded Wheat, Post Raisin Bran, Grape-Nuts, and Honeycomb brands. It was up more than 18% as they became a takeover target by Con Agra. Volume was up 1700 %. |
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Pick Of The Day

It has been a while since we had one for you, but about 2:10 today after we had written two articles for a couple of magazines, some cover letters for some comp lists, and help find some important documents from days gone by, I got an obscure e-mail about a turn around stock called ZMH Zimmer Holdings, Inc., through its subsidiaries, engages in the design, development, manufacture, and marketing of orthopaedic reconstructive implants, spinal and trauma devices, dental implants, and related surgical products. The company offers orthopaedic reconstructive implants that restore function lost due to disease or trauma in joints, such as knees, hips, shoulders, and elbows; dental reconstructive implants, which restore function and aesthetics in patients who have lost teeth due to trauma or disease; spinal devices that are used by orthopaedic surgeons and neurosurgeons in the treatment of degenerative diseases, deformities, and trauma; and trauma products used primarily to reattach or stabilize damaged bone and tissue to support the body's natural healing process. It also provides surgical products, including supplies and instruments designed to aid in orthopaedic surgical procedures and post-operation rehabilitation. In addition, the company offers healthcare consulting services. It primarily serves orthopaedic surgeons, neurosurgeons, oral surgeons, dentists, hospitals, stocking distributors, and healthcare dealers, as well as agents, healthcare purchasing organizations, or buying groups. The company markets and sells its products to healthcare institutions, such as hospitals or direct channel accounts; stocking distributors and healthcare dealers; and directly to dental practices and dental laboratories in the Americas, Europe, and the Asia Pacific. Zimmer Holdings, Inc. was founded in 1927 and is headquartered in Warsaw, Indiana.
We have been avoiding most of the medical sector because no one knows what to do with Obama Care. This stock got my attention because of all the people I know who are obese or older or just inactive enough that knee and hip issues will become their destiny. Tonight we read about the JNJ recall and did some homework. We like what we see.
Do your homework but at the very least put it on a watch list. It is getting late and we can't crunch all the numbers but at face value it has no debt, a reasonable ROE, a sexy margin, we are seeing some target prices being raised, IBD likes it but does not love it, it is taking on some institutional owners of late, and I like the long term aspects of the company. The chart is pointing to a great entry point at $62.40. Let's watch it for a day or two or three and see how close we can come to that price. |
Salve Lucrum |
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BAGAKOAA;
I am not a professional investment advisor. Anybody reading my blog and investing accordingly must be out of their minds. I have made more money than I have lost. There are many more qualified people than I to actually tell you how to invest your money.
BAGAKOAA=Boys And Girls And Kids Of All Ages
Salve Lucrum=Latin for Hurrah for Profit. |
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