Red Roadmaster Stock Talk

The Red Roadmasterrsquos US Market Re-cap + Stock Talk trade

August 20 2009 Asian stocks rally led by energy and finance as Crude Oil prices surge Re-cap of the US Stock Market Action for August 19 2009 US Stocks rose Wednesday as investors responded favorably to a drop in Crude Oil stockpile auguring that an economic recovery is in the headlights

The DJIA gained 6122 ps or 066 to close at 927916 the SampP 500 rose 679 pts or 069 to close at 99646 the NAS tallied up a +1332 pts or 068 ending the session at 196924 and the Russell 2000 rose 522 or 09 to close at 56165 on the day

Front month light sweet Crude Oil surged 47 or US$323 to settle at US$7242 bbl on the NY Merc on a report showing the biggest drop in inventories since May

News from the Energy Department that the USAs Crude Oil inventory fell by more than 8M bbls in the past week sent Crude Oil prices higher followed by stocks as investors now believe that the decline in stockpiles of Crude is a clear indication that energy demand is rising and the economy is improving

The yield on the benchmark 10 yr T-note fell to 346 from 352 late Tuesday prior to the Crude Oil report it was trading at about 344

Volume and Breadth Lots of traders are on vacation now contributing to light volume on the NYSE with only about 988Mshrs changing hands sharply below last years estimated daily average of 149Bshrs and on the NAS about 199Bshrs traded well below last years daily average of 228Bshrs Advancers outnumbered decliners on the NYSE by a ratio of about 3 to 2 while on the NAS about 17 stocks rose for every 9 that fell

Stock to Watch Today

International Business Machines Corporation (IBM) Qualcomm Inc (QCOM) Exxon Mobil Corp (XOM) and ChevronTexaco Corporation (CVX)

International Business Machines Corporation (IBM) Up-date 7

August 20 2009

Paul A Ebeling Jr Analyst

Today letrsquos look at ldquoBig Bluerdquo International Business Machines Corporation (IBM) the Worldrsquos 1 provider of computer products and computer services from a Technical POV The overall indications after Wednesdayrsquos (August 19 2009) market action are Bullish in the near term Bullish mid-term Bullish and long term Very Bullish The recent Candle Stick analysis is Neutral

Chart by httpwwwstocktacom

Latest News IBM Enters Nanotechnology httpfinanceyahoocomnewsIBM-Enters-zacks-2999901340htmlx=0ampv=1

Wednesdayrsquos Market Action Close 11857 + 94 Volume 4837800shrs There are thre Gaps open up between Mar 31 and July 17 2009 at 947411316 the near term resistance is 12137 support at 11836 and the 50 day (EMA) exponential moving average is 11261 This is IBM (IBM) ldquoBig Bluerdquo is the worlds top provider of computer products and services IBM is a leader in every market in which it competes the company makes mainframes and servers storage systems and peripherals Though perhaps still best known for its hardware IBMs growing services business now accounts for more than half of its sales Its IT services arm is the largest in the world and the company is also one of the largest providers of both software ranking 2 behind Microsoft and semiconductors

The Competitive Landscape

Demand for IT services is driven by rapid technological advances but spending for these expensive products depends on the health of the US economy The profitability of companies in the industry depends on maintaining technical expertise and on good marketing Small companies can compete effectively by specializing in market niches or by partnering with larger companies that want to offer a broad array of services Only the large companies can provide outsourcing services to big corporate customers Average annual revenue per employee is close to US$200000 Information Technology Industry Forecast The output of US computer and data processing is forecast to grow at an annual compounded rate of 61 between 2008 and 2013 IBM (HQ) Chairman President and CEO Samuel J Palmisano New Orchard Rd Armonk NY 10504 United States Phone 914-499-1900 Toll Free 800-426-4968 httpwwwibmcom

IBM Subsidiaries

Cognos ULC IBM Australia Limited IBM Canada Ltd

Qualcomm Inc (QCOM) Up-date 2

August 20 2009

Paul A Ebeling Jr Analyst

Today letrsquos look at Qualcomm Inc (QCOM) one of USrsquos oldest and largest manufacturers of digital wireless and services from a Technical POV The overall indications after Wednesdayrsquos (August 19 2009) market action are Neutral in the near term Neutral mid-term Neutral and long term Bullish The recent Candle Stick Analysis is Bullish

Chart by httpwwwstocktacom

Latest News The Commoditization of the Dellphone httpseekingalphacomarticle157004-the-commoditization-of-the-dellphonesource=yahoo

Wednesdayrsquos Market Action Close 4572 + 57 Volume 11224900shrs

There is a Bearish Doji Star on August 13 2009 and there are no Gaps open up or down on the chart Near term resistance is 4580 and near term support is at 4517 The 50 day exponential moving average is moving up to 4532

This is Qualcomm (QCOM) incorporated in 1985 designs manufactures and markets digital wireless telecommunications products and services based on its code division multiple access (CDMA) technology and other technologies The Company operates through four segments Qualcomm CDMA Technologies (QCT) Qualcomm Technology Licensing (QTL) Qualcomm Wireless amp Internet (QWI) and Qualcomm Strategic Initiatives (QSI) QCT is a developer and supplier of integrated circuits and system software for wireless voice and data communications multimedia functions and global positioning QTL grants licenses to use portions of its intellectual property portfolio which includes certain patent rights essential to andor useful in the manufacture and sale of CDMA products In December 2007 the Company acquired San SoftMax Inc In March 2008 the Company acquired Xiam Technologies Limited (Xiam) an Ireland-based provider of wireless content targeting solutions

The Competitive Landscape

Telecom market growth is leveraged on capital expenditures from large corporations The industry has adopted a more cautious approach with regard to over expanding due to improvements forecasting demand in the sector and saturation However a bright spot for the industry is that service operators cannot prolong spending on equipment to expand network bandwidth because of the risk of disrupting business operations Large cash stores in corporate coffers that are typically seen in this industry are used for purchases and acquisitions of smaller competitors

Communications and Equipment Index Performance

Year to date through May 15 the SampP Communications Equipment Index increased 153 versus a 21 decrease for the SP 1500 During 2008 the index declined 408 compared to 382 drop for the SampP 1500

Qualcomm Corp (HQ)

Chairman amp Chief Exec Paul E Jacob

5775 Morehouse Dr San Diego CA 92121 United States Phone 858-587-1121 Fax 858-458-9096

httpwwwqualcommcom

Exxon Mobil Corp (XOM) Up-date 7

August 20 2009

Paul A Ebeling Jr Analyst

Today letrsquos look at Exxon Mobil Corp (XOM) the Worlds largest integrated oil company from a Technical POV The overall indications after Wednesdayrsquos (August 19 2009) market action are Bearish in the near term Neutral mid-term Neutral and long term Bearish The recent Candle Stick analysis is Very Bullish

Chart by httpwwwstocktacom

Latest News Your First Move for Thursday August 20th httpwwwcnbccomid32477131site14081545__source=yahoo|headline|quote|text|amppar=yahoo

Wednesdayrsquos Market Action Close 6800 + 151 Volume 28434300shrs

There is a Bullish Engulfing Candle on August 19 and three Gaps open down between July 15 and Aug 17 2009 at 73106737 the near term resistance is 6837 support at 6772 and the 50 day (EMA) exponential moving average is 6936

This is Exxon Mobil Corp (XOM) the Company engages in the exploration production transportation and sale of crude oil and natural gas It also engages in the manufacture of petroleum products and transportation and sale of crude oil natural gas and petroleum products The company manufactures and markets commodity petrochemicals including olefins aromatics polyethylene and polypropylene plastics and other specialty products Exxon Mobil also has interests in electric power generation facilities As of December 31 2007 it had 7744 millions of barrels of liquid proved reserves and 32610 billions of cubic feet of proved reserves of natural gas Exxon Mobil also operated 16797 gross wells The company operates in the United States Canada Europe Africa Asia-Pacific the Middle East RussiaCaspian region and South America Exxon Mobil was founded in 1870 The company was formerly known as Exxon Corporation and changed its name to Exxon Mobil Corporation in 199

Competitive Landscape

Demand depends on the overall strength of the US economy because most industrial chemicals are used in the manufacture of more-complicated products like fibers plastics paints and paper The profitability of individual companies is closely linked to efficient operations because most products are commodities Big producers have large economies of scale in production which is why some chemicals are made by just a handful of companies Small companies can compete effectively by making specialized or highly-purified products The industry is highly automated average annual revenue per employee is over US$600000

Exxon Mobil Corp (HQ)

Chairman Chief Exec Officer amp President Rex W Tillerson

5959 Las Colinas Boulevard Irving TX 75039-2298 United States Phone 972-444-1000 Fax 972-444-1348

httpwwwexxonmobilcom

Exxon Subsidiaries Aera Energy LLC Esso Petroleum Company Limited ExxonMobil Chemical Company

ChevronTexaco Corporation (CVX) Up-date 11

August 20 2009

Paul A Ebeling Jr Analyst

Today letrsquos have a look at ChevronTexaco Corporation (CVX) the US Oil Giant from a Technical POV The overall indications after Wednesdayrsquos (August 19 2009) market action are Neutral in the near term Neutral mid-term Bullish and long term Neutral The Recent Candle Stick analysis is Very Bullish

Chart by httpwwwstocktacom

Latest News Wall Street gains as oil data rekindles recovery expectations httpfinanceyahoocomnewsWall-Street-gains-as-oil-data-rb-1171559773htmlx=0ampv=14

Wednesdayrsquos Market Action Close 6816 + 122 Volume 11183600shrs

There is a Bullish Engulfing Candle on August 18 and one Gap open up on July 18 2009 at 63346400 the near term resistance is 7047 support at 6800 and the 50 day (EMA) exponential moving average is 6745

This is ChevronTexaco Corporation (CVX) Texacos star and its Chevron stripes allow this US Oil Giant to have market clout It is the 2nd largest US integrated oil company behind Exxon Mobil and has proved reserves of 108 B bbls of crude oil equivalent and a daily production of 26 MM bbls of crude oil equivalent and it also owns interests in chemicals pipelines and power production businesses The company which is restructuring its refinery and retail businesses owns or has stakes in 9700 gas stations in the US which operate under the Chevron and Texaco brands Outside the US it owns or has stakes in 15400 gas stations which also use the Caltex brand The Competitive Landscape

Demand is driven by federal legislation and regulations that establish a government-mandated market for bio-fuels The profitability of bio-fuel production facilities depends on prices of gas and diesel which fluctuate based on world petroleum demand and domestic refinery utilization Economies of scale in ethanol production are limited due to the transportation costs associated with gathering feed stocks (corn and other biomasses) and transporting the ethanol to blending sites As a result large companies operate multiple production facilities Small companies can compete effectively by developing business relations with distributors and being able to assure delivery consistently Revenue per employee in ethanol production facilities is about US$1MMper year Industries Where Chevron Competes

Energy amp Utilities Oil amp Gas Refining Marketing amp Distribution Alternative Energy Sources Chemicals Financial Services Retail

ChevronTexaco Corporation (HQ)

Chairman and CEO David J (Dave) OReilly 6001 Bollinger Canyon Rd San Ramon CA 94583 United States Phone 925-842-1000 Fax 925-842-3530 httpwwwchevroncom

Chevron Subsidiaries and Affiliates

Bridgeline Holdings LP Caltex Australia Limited Chevron Mining Inc

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The information contained on our website or in any of our newsletters should be viewed as commercial advertisement and is not intended to be investment advice Any information found on our website or in any of our newsletters is not provided to any particular individual with a view toward their individual circumstances The information contained on our website and in any newsletter we distribute is not an offer to buy or sell securities We distribute opinions comments and information free of charge exclusively to individuals who wish to receive them

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company An individual should never invest in the securities of any of the companiesrsquo profiled based solely on information contained in our report Individuals should assume that all information contained on our website or in one of our newsletters about profiled companies is not trustworthy unless verified by their own independent research

Any individual who chooses to invest in any securities should do so with caution Investing in securities is speculative and carries a high degree of risk you may lose some or all of the money that is invested Always research your own investments and consult with a registered investment adviser or licensed stock broker before investing

Information contained in the Redroadmaster Stock Talk report will contain ldquoforward looking statementsrdquo as defined under section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934 Subscribers are cautioned not to place undue reliance upon these forward looking statements These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated Factors that could affect performance include but are not limited to those factors that are discussed in each profiled companyrsquos most recent reports or registration statements filed with the SEC You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements

Red Roadmaster is committed to providing factual information on the companies that are profiled However we do not provide any assurance as to the accuracy or completeness of the information provided including information regarding a profiled companyrsquos plans or ability to effect any planned or proposed actions We have no first-hand knowledge of any profiled companyrsquos operations and therefore cannot comment on their capabilities intent resources nor experience and we make no attempt to do so Statistical information dollar amounts and market size data was provided by the subject company and related sources which we believe to be reliable

To the fullest extent of the law we will not be liable to any person or entity for the quality accuracy completeness reliability or timeliness of the information provided in this report or for any direct indirect consequential incidental special or punitive damages that may arise out of the use of information we provide to any person or entity (including but not limited to lost profits loss opportunities trading losses and damages that may result from any inaccuracy or incompleteness of this information) We encourage you to invest carefully and read investment information available at the websites of the SEC at httpwwwsecgov and FINRA at httpwwwfinraorg