Posts Tagged ‘apple’

M&A Season Heating Up Early

Monday, August 23rd, 2010

For the month of August alone there has been $2.3 Trillion mergers and acquisitions announced worldwide, the most ever for this month. $1.3 Trillion of that is in the Technology spectrum alone. Just this morning HP announced to trump Dell’s initial offer for 3Par by 33%. 3Par was trading in the $9 range and is now trading in the mist of double digits to $25. HP was willing to pay 100% over 3Par’s 2010  earnings. Things are beginning to heat up in the M&A market.There’s a been a slew of reasoning behind the recent robust M&A activity. Here’s a few that I came up with.

  • In the environment of a crisis leads to opportunity. Companies with heavy cash flows are forced to be competitive and why not better to strike while the competitors are weak. Through history during times hard economic hardships companies become adapt to spend and make heavy investments as opposed to R&D. That’s how Microsoft evolved during the 70′s through ripe opportunities. Law of Darwinism per se.
  • Companies have cash to spend. Some companies like Cisco, Apple, IBM, HPQ, and etc…are sitting on piles of cash. Some prefer to make to acquisitions while other prefer to increase dividends (i.e. Banks) while others prefer stock buy-backs. Expansion into business to be more competitive is the better route but in the banks case financial regulations are proving to be difficult
  • Bush’s Tax rate expires this year. Many companies are pushing to rush the M&A so the tax burden is less impacted. Consider it as a discount. It’s a better environment now as the future holds uncertainty.
  • Consolidation. What’s a better way to make a company more competitive and increase your rate of return on your COC (cost of capital). Acquisitions 90% of the time will make a company more efficient. It will free up cash at times when R&D outstrips the investment into a company as for example what Intel’s acquisition into MCafee or HPQ’s into 3Par for the cloud computing aspect of the business.

Stay tuned for the M&A to heat up further.

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Unemployment Benefits Bill Clears Senate

Tuesday, July 20th, 2010

After months of deliberating and bickering about adding to the deficit, the Senate has now passed a key vote to extend unemployment benefits. Millions of Americans (approx 1.5 million people qualify for the extension which equates to 1% of the unemployment rate) can now pay off their mortgages and continue to pay bills with the assistance of the Government and essentially the tax payers footing the bill.

The Senate broke a stalemate on Tuesday over extending unemployment benefits for Americans who have been out of work for six months or more, voting to override Republican objections that the bill’s costs would add to the federal deficit. On a 60-to-40 vote, the Democratic-led Senate agreed to cut off debate on the $34 billion plan to distribute added unemployment compensation through November for those who have exhausted their standard 26 weeks of aid.

The 60 “Yes” were the minimum needed to overcome the threat of a filibuster and advance the bill to a final vote, expected later on Tuesday, when it is all but certain to pass. Two Republicans, Senators Susan Collins and Olympia J. Snowe of Maine, joined 56 Democrats and two independents in voting for the legislation; 39 Republicans and one Democrat, Senator Ben Nelson of Nebraska, opposed it.

An estimated 2 million Americans have seen their benefits run out over the past two months while the legislation has been stalled in the partisan impasse. “Finally, finally, finally,” said Senator Barbara A. Mikulski, Democrat of Maryland. She called the unemployment insurance program a social compact with American workers that meant “when you hit a speed bump and have to be laid off through no fault of your own, there will be a safety net so that you do not fall.”

Republicans said they backed the idea of extending benefits, but were determined to prevent the costs from being piled onto the mounting deficit. “We believe the federal debt has grown to an alarming level, where it is threatening the future of our children and grandchildren,” said Senator Lamar Alexander of Tennessee, the No. 3 Republican in the Senate.

After the Senate completes its final vote on the measure, the House must still act on it, a vote that is expected to come on Wednesday. President Obama would then quickly sign the bill into law at the White House, freeing the aid. The Senate action came just minutes after Carte Goodwin was sworn in as the new Democratic senator from West Virginia, replacing the late Robert C. Byrd. While the seat was vacant, Democrats lacked the votes to overcome the Republican filibuster. At age 36, Mr. Goodwin, a former legal adviser to Gov. Joe Manchin III, becomes the youngest member of the Senate; Mr. Byrd, at 92, had been the oldest.

Both parties expect the fight over the unemployment extension to figure in midterm election campaigns in the fall. Republicans say they believe their stand will strengthen them with voters worried about the rising deficit. Democrats will criticize Republicans’ willingness to set aside deficit concerns when they pushed through tax cuts for the affluent, but not when unemployment pay for ordinary workers was at stake.

Market News

Stocks closed higher Tuesday, recovering from steep loses earlier in the session, on optimism about quarterly earnings from Apple and speculation about possible moves by the Federal Reserve.  The DJIA rose 75 points, while the S&P rose 12 points. 

The tone improved in the afternoon on chatter that the Fed is considering additional steps to encourage bank lending. Ben Bernanke, chairman of the U.S. central bank, is scheduled to testify before Congress on Wednesday. But that’s all speculation and another reason to sell into strength. 

Apple is among the many companies slated to report quarterly results after the closing bell. Investors have been focused largely on corporate financial results, with over 120 companies due to report this week.

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Markets In Shambles, DJIA Down 200

Thursday, May 20th, 2010

Congrats to all our loyal followers of the Wall Street Grand Blog! If you had followed my advice on 4/28  and 5/5 to steer clear away from the markets you have either A) saved a tons of losses or B) made a killing on shorting or purchasing Puts in just about any stock out there -my particular favorite -SPY or QQQQ’s. We still have ways to go. This will we be a long and steady decline to the 9500 - 9800 range in the DJIA. FYI the SPY puts in the May $110 Puts are up today 110% and up 1100% since my April 26th call. (My Pick for the month – Short APPLE currently $243)

We’ll have our up weeks as today was an obvious sign over exaggerated selling. As I had been stating all along play the bounce off the 200 day Moving Averages. At this level I anticipate a short rally before our next leg down. Analysts must now realign there estimates to the conservative side as I had anticipated the economy is shooting FALSE GREEN SHOOTS

Todays catalyst of the 200 point drop……JOBS

Stocks fell sharply at the open Thursday after an unexpected spike in jobless claims and as global jitters pushed the dollar higher. the CBOE volatility index spiked above 40. The Dow and S&P are on track to have their worst month since February 2008. 

The market was already pointing lower today as volatility surged in global markets amid worries about financial reform and the sovereign debt crisis, when the jobless claims report came out and further rattled the market. Initial claims for unemployment benefits shot up by 25,000 to 471,000 last week. Economists had expected claims to drop to 440,000. The dollar surged against the euro. Commodity prices fell, with crude oil dropping below $68 a barrel and gold falling to near $1,180 an ounce. Treasurys, particularly longer-dated securities, jumped on the stock market turmoil. The 30-year bond gained more than one point in price, sending its yield to 4.16 percent, its lowest since Oct. 20, 2009. Prices and yields move in opposite directions.

Uncertainty grew on the back of concerns about the euro zone’s economic health, and whether Germany’s financial reforms will backfire on stocks. Other European nations, including France, the Netherlands and Finland, announced they have no plans to follow Germany’s ban on naked short selling of specific instruments, to control what Chancellor Angela Merkel called “destructive” markets. Also in Europe, more protests are scheduled to take place in Greece today against the new austerity measures.

Asian markets were lower, with Tokyo, Seoul and Sydney down more than 1.5 percent each, as political divisions in Europe, again, and fears of more market regulation pressured stocks.

Still to come: The Philadelphia Fed Index will be announced at 10 am New York time, forecast up to 21.2 from 20.2 last month. At the same time, the Conference Board issues its monthly index of leading economic indicators, with consensus forecasts calling for an increase of 0.2 percent on top of last month’s 1.2 percent rise.

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Technology Stock Updates

Wednesday, April 21st, 2010

Shares of ebay EBAY 24.05, fell 8.3% to $24.09 in heavy volume after the company said it expects second-quarter adjusted earnings of 37 cents to 39 cents a share on revenue of $2.15 billion to $2.2 billion. Analysts expect earnings of 40 cents a share on $2.2 billion in revenue. For the first quarter, eBay said net earnings rose to $398 million, or 30 cents a share, as it saw improvements in its core marketplace business as well as strong growth in its PayPal business. Earnings excluding charges would have been 42 cents a share. Revenue rose 9% to $2.2 billion. Excluding the results from Skype from the previous quarter, revenue rose 18%. Analysts were expecting earnings of 41 cents a share on revenue of $2.18 billion for the quarter.

Qualcomm QCOM 39.10, shares slid 8.1% to $39.16 after the company said it expects fiscal third-quarter pro forma earnings of 51 cents to 55 cents a share on revenue of $2.5 billion to $2.7 billion. The current Thomson Reuters consensus estimate is for earnings of 55 cents a share on $2.66 billion in revenue. Qualcomm did raise its fiscal 2010 earnings view, to a range of $2.21 to $2.32 a share. The current consensus is for $2.31 a share. The company swung to a fiscal second-quarter profit of $774 million, or 46 cents a share. A year ago, it lost $289 million, or 18 cents a share. Revenue at Qualcomm in the most recent period rose to $2.7 billion from $2.45 billion. Adjusted earnings were 59 cents a share. Analysts were looking for 57 cents a share on revenue of $2.6 billion.

Netflix Inc. NFLX 88.40, shares bounced back from losses during the session to rise 1.2% to $88 after the online-movie rental company said its first-quarter profit rose 44% from the year-ago period. Netflix’s shares ended the regular session with a year-to-date surge of 58%.

Apple hit a new 52 week high again to close above $258

In other news involving Apple, Adobe Systems Inc. said Wednesday it has ceased efforts to get its Flash technology into Apple Inc.’s popular iPhone and iPad devices. Adobe’s principal product manager for developer relations for Flash, Mike Chambers, noted in a posting on a company Web site that Apple’s AAPL 258.58, -0.64, -0.25%) developer terms for the iPhone and iPad seem intended to keep Flash off the devices. As a result, Chambers wrote, Adobe will no longer invest in features making Flash compatible with them. An Apple spokeswoman said that the iPhone and iPad support several technologies “that are open and standard, while Adobe’s Flash is closed and proprietary.” Chambers wrote that Adobe will now be focusing on developing Flash for devices based on Google Inc.’s GOOG 551.60, Android software. On Wednesday, Google disclosed that it has acquired a start-up run by former Apple employees who developed semiconductor technology used in the iPad. That’s fueled speculation that Google may be preparing its own tablet device. This is not good news as investors have built in the price of Flash being utilized on the Apple products. Expect the stock to sputter for the remaining of the week. Google is also knocking on the door steps of Apple’s market ipad. I think the 2 month $60 run has run it’s course. Be prepared to protect your profit with some puts.

VMW up 9.5% today!!! Also on my conviction buy list

DELL has now run up 20% from my initial announcement and is on the verge of breaking the $17.26 52 week high. Mark my words. I also would like to annouce our very first 1,253% gain on our option pick that expired April 16. On March 10, 2010 I announced to buy April $15 Calls worth at the time $ .15 a contract. Well ladies and gentlemen I sold April 15 @ $1.88 prior to expiration well above the break-even point. It managed to close, I believe $2.00. Contact your broker to verify my statement. It was a great ride. Also FYI I opted not to exercise as I preferred the cash to invest in my next upcoming pick to be announced soon. Stay tuned.

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S&P at 1,200, Apple Soars After Hours

Tuesday, April 20th, 2010

U.S. stocks rose Tuesday for a second day as Energy, financials and utilities, lifted confidence that consumers are spending and spurred hopes of higher energy demand. But IBM and Goldman Sachs declined. Energy stocks got a boost as oil prices finished above $83 a barrel. The dollar slipped on improving global risk appetite while gold prices ended above $1,138 an ounce.

Investors underestimated corporate America’s ability to earn money. There’s a large amount that investors assumed was priced into the market, but it wasn’t. So far, 84 percent of S&P 500 companies that have reported earnings have beat expectations and of those, 65 percent have shown better-than-expected revenues.

IBM late Monday reported profits that topped forecasts, but its gross margins disappointed, sending its shares down 1.9%. Goldman Sachs GS 159.60, also released better-than-expected results, with the investment banking giant’s first-quarter earnings nearly doubling to $3.3 billion. But shares of Goldman fell 2.1%, with its earnings losing ground to continued concerns over the fraud suit filed against the firm Friday by U.S. regulators. The headline that Goldman was “posting massive profits doesn’t resonate well for the average American. We expect the White House would use the latest news regarding Goldman to push its case for financial reform forward.

Apple Earnings

Apple Inc. shares jumped Tuesday evening after the company posted a sharp rise in earnings on increased sales of  IPhones and Mac computers. Apple shares AAPL 257.47, climbed 5.4% to $257.54 in after-hours trading, reaching new highs following the company’s report of a second-quarter profit of $3.07 billion, or $3.33 a share, up from $1.62 billion, or $1.79 a share, a year ago. Revenue leapt 49% to $13.5 billion. Amazing!!! The company also said it sold 8.75 million iPhones during the quarter. Analysts were looking for IPhones sales of a little more than 7 million. It sold 2.94 million Mac units, compared with expectations of 3 million units.

The company’s first-quarter net revenue came in at $1.13 billion, lighter than the $1.17 billion in sales estimated by analysts polled by Thomson Reuters. The company’s profit nearly tripled to $310 million, or 22 cents a share, from $118 million, or 8 cents a share.

On March 3 we noted that it was a good time to pick up Apple shares at $209. Click Here. We are now up 23%!!

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Verizon to Get IPhone Within 12 Months

Tuesday, March 30th, 2010

On March 3rd I stated here, that Apple would be on the Verizon market within time. News broke across headlines this morning stating just that. Apple Inc., trying to build on the success of its iPhone, is developing a new version, one of which will work over the Verizon Wireless network.

Mass production of the Verizon Wireless phone is rumored to be scheduled for September. The other new iPhone may debut this summer.

AT&T Inc. has been the exclusive US carrier for the iPhone since its debut in 2007, gaining an advantage over rivals in the smart-phone market. An agreement with Apple would let Verizon Wireless tap rising demand for the iPhone, which has sold more 42 million units. The iPhone, which lets users surf the Web, listen to music, and watch videos, consumes about twice the bandwidth of other smart-phones. That’s strained AT&T’s network, particularly in major cities such as New York and San Francisco. The company has said it is spending an extra $2 billion this year to help ease capacity crunches. Apple continues to refuse to comment on rumor and speculation.

Apple named AT&T as the provider of wireless service for its iPad tablet computer in January. Verizon and AT&T are both beginning to offer more kinds of devices, such as low-cost computers, as they seek new ways to keep growing. The Ipad seems to have experienced a minor shipping delay has just made its debut that much more exciting. According to published reports, Apple moved back the shipping date for its iPad tablet to April 12th for customers who placed pre orders. (However, those who ordered the tablet before Sunday, March 28th will still get it Saturday, April 3rd.)  Although there’s no comment for Apple about the delay it could be due to overwhelming demand. Analysts for Morgan Stanley wrote in a note Monday they expect Apple to ship about 2.5 million units in its first quarter on the market, and more than 6 million units this year.

Two Taiwanese companies are rumored, Hon Hai Precision Industry Co. and Pegatron Technology Corp., are making the new phones on the CDMA network.

If the iPhone were to become available on Verizon, it could be a significant blow to AT&T T 26.10, which has enjoyed great success with the phone since it hit the market in 2007. Shares of AT&T slumped nearly 3% in after-hours trading on Monday following the report. Verizon shares were up 3.7%, while Apple rose 2.5% in the evening. This proves another devastating blow to RIMM and only strengthens my play on Apple that I had advised on March 3rd post. It will continue to trade at an all time highs. Currently trades $237.00 Up 14% from my initial announcement.

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Stocks Soar to New Highs, Dell on Fire

Tuesday, March 23rd, 2010

The major market indexes continued to explore new heights today, with help from a batch of better-than-expected housing data. More specifically, the National Association of Realtors said existing home sales backpedaled by 0.6% to an annual rate of 5.02 million in February, narrower than the expected decline to 5 million units. While sales of previously owned homes are now at their lowest level in eight months, today’s data left the Street optimistic ahead of the Commerce Department’s monthly report on new home sales, slated for release tomorrow. Against this backdrop and thanks to some long-awaited closure on the health care front stocks extended their rally into the close, with the bulls on pace for a solid first-quarter finale.

The DJIA gained 102.94, or 1 percent, to close at 10,888.83, another 1  1/2-year closing high. Kraft KFT  30.78 and Pfizer PFE  17.54 were the biggest gainers. The S&P 500 gained 0.7 percent, with industrial and technology the best-performing sectors. The tech-heavy Nasdaq climbed 0.8 percent.

Several large caps hit new 52-week highs, including Kraft KFT  30.78, Apple AAPL  228.40 and Cisco CSCO  26.64. Two of my plays mentioned in my Large Cap Fund here.

This came after stocks rose Monday, with the Dow closing at a 1 1/2-year high as investors were relieved that uncertainty surrounding health-care reform was lifted with the weekend passage of the bill. The President signed the legislation into law earlier today. The Senate this week will take up a package of changes suggested by the House.

Commodities

Crude futures finished a choppy session in the black, overcoming an early deficit stemming from a stronger dollar. Helping black gold rebound was a promising report from MasterCard, which indicated that U.S. gasoline demand jumped by 1.4% to 9.66 million barrels in the week ended March 19 – the highest level of weekly consumption since late June 2009. By the close, crude oil for May delivery – which assumed front-month status today – added $0.31, or 0.4%, to settle at $81.91 per barrel.

Gold futures also nudged higher today, snapping a two-session retreat as the greenback trimmed its lead against a basket of foreign currencies. In addition, some analysts attributed the metal’s rebound to steady demand from Asia, with India – the global leader in gold consumption – wrapping up its wedding season. Against this backdrop, April-dated gold futures advanced $4.20, or 0.4%, to finish at $1,103.70 an ounce.

DELL

On March 10, I reported that DELL was set to breakout. Read here. Dell was priced @ $14.18 at the time while the April $15 Calls were priced at .15. Well ladies and gentlemen, sure enough with patience on our side, it has now broken resistance today to close @ $15.22. Dell is now up 7.33% while the call closed up to .53 for a 253% gain. The best part, we’re not done. As I mentioned last week there’s plenty of leg on this run. My target here is $16.50-17 by the April16 expiration which by then should garnish us a +500% gain. Sit tight and enjoy the ride!!! If you haven’t joined us, it’s not too late.

ACE

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Happy Anniversary to The 1 Year Bull Market!!

Tuesday, March 9th, 2010

Traders had expected some profit-taking today — even on stocks with good news — given how far the market has come in a year. Since March 9, 2009, the Dow is up 59 percent, the S&P rose 67 percent and the NASDAQ gained more than 80 percent.

The bulls have been forced to fight for every inch during the past several weeks, and this week is shaping up no differently. The S&P 500 Index (SPX) is now challenging its early January high near 1,150, while 10,600 appears to be the new 10,500 for the Dow Jones Industrial Average (DJIA). What’s more, the SPX has the added weight of its 160-month moving average overhead, a trendline that marked the index’s 2002 bottom and whose breach in October 2008 provided a clear demarcation between bull and bear markets. Additionally, the CBOE Market Volatility Index (VIX) rebounded yesterday, after sinking to within striking distance of a fresh multi-year low. The VIX was halted by resistance near the 18 level yesterday, but we could see the fear barometer spike to the 19 level and its 10-day moving average today. It appears that the bears have taken charge this morning, with futures on the Dow and SPX trading 35 points and 5.8 points below fair value, respectively.

Cisco CSCO  26.1599 has a big announcement slated for 11 a.m. ET. The networking-gear maker is expected to debut tools that will allow network-service providers to build their own high-speed networks. Cisco is taking a page out of Apple’s playbook, building hype in advance of the announcement. The company said yesterday that it’s announcement will “forever change the Internet and its impact on consumers, businesses and government.

China’s chief currency regulator reiterated the country’s commitment to U.S. Treasury’s for its foreign-exchange reserves, adding that China is not into short-term currency market speculation. He also said that it was “impossible” for gold to become a major investment channel for the country’s foreign exchange reserves.

In Europe

Greece Prime Minister George Papandreou is scheduled to meet President Barack Obama and is likely to press the U.S. to regulate hedge fund which Greece says had an important role in its debt problems. I highly doubt this will make an impact as regulating will delineate a free market concept.

Fitch issued a report about sovereign ratings in Europe in which it warned that Britain’s credit profile has deteriorated, pushing the pound to a 1-week low against the dollar.

A report by temporary-hiring firm Manpower showed that the outlook for U.S. hiring is dipping in the coming quarter, casting a shadow over hopes for a recovery in jobs.

Happy Anniversary to The 1 Year Bull Market!!

ACE

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Large Cap Plays Towards Growth!!!

Wednesday, March 3rd, 2010

To my fellow long term investors that thirst for yield, safe plays, and growth! I have spent countless hours readjusting my portfolio towards the new age. The age of the Y2K’ers. Hold and forget investing ideology has been broken by the lost decade. Several “Baby Boomers” have made boat loads until 2000 and through 2006, either by real estate or stocks. They had built up positions through out their lives, but to only their surmise lose 40% during the Tech Bubble of the 2000 Recession and then lose 50-80% of their value during the Asset Bubble of the current Great Recession. The world has significantly changed and will continue to adjust as world economies unravel debt loads that one throughout history had never experienced. The next 10 years will be tough as Power House countries (i.e. United States, Germany, Japan, Canada, United Kingdom) battle the debt dilemma which I fear will mean Inflation will rear it’s head, cost of goods and food will rise, and low or even stagnate economic growth will be the norm. You’re beginning to see the start of inflation as companies increase the price of a service or cost of goods.

Here’s a few examples that have gone unnoticed:

  • UPS and FedEx increased shipping rates in 2009
  • Coca Cola and Pepsi raised prices for 2L sodas by 15-29%. They used to be  $0.99 
  • Soda Bottles and Chips have smaller serving size but yet have the audacity to charge the same rate
  • College tuition and health care continues it’s upward push
  • Sporting event tickets ever so high

Here at Wall Street Grand we strive to educate our readers and investors to the forth coming and strongly suggest adjusting one’s portfolio geared for retirement or even your children’s education. I encourage all to take the appropriate measure to adjust your portfolio on a yearly basis. If Warren Buffet adjusts his holdings quarterly and yearly, it would be naive not adjust yours.

The sectors that I see growth will be in the Renewable energy, Technology, Bio Tech, and commodities.

So on to what I believe will provide growth and financial prosperity for the future. Here are my picks in the Large Cap arena:

Apple : AAPL $209.00 Has  great growth potential which continues to untap uncharted markets. The Ipod, Iphone, and now the newly introduced Ipad. I believe the Ipad will set the new norm of portable computing. It will set the stage for digital printing for Newspapers and publishers. Hard cover books will be almost non existent. Yet my strongest argument here is the Iphone. Currently in the states with only 1 carrier that has the authority to distribute the smart-phone and that is AT&T. It’s rumored that the sole licence agreement with AT&T is set to expire end of this year into 2011, it will then open up to Verizon. Verizon currently has a market of 50 million users. This could potentially add $2- $4 per earnings. Apple is currently cash liquid of $25 Billion. They have voted against distributing dividends which paves way to several near term acquisitions!

Cisco Systems Inc: CSCO $24.50 This company is involved in every aspect of the Internet and the Video Conferencing. They have splashed their industry 2008-2009 with cash purchases of integral players to direct them to future growth. They have yet to unleash the full earning potential of the newly acquired. On top of it all they sit on a hefty $35 billion of liquid cash

EBAY:EBAY $23.75 I agree their fees are a little out of touch to the likes of Amazon, but their true value is in the little acquisition of Pay Pal. The reason I’ve chosen ebay is do to the Governments recent Credit Card overhaul. Credit has been hard to come by lately. Pay-pal has offered different avenues that does not require to abide by the federal requirement. Secondly, the sale of Skype has improved their bottom line as it contributed as a laggard to the business. Last but not least Mobile commerce. Pay-pal has become the Internet version of Visa, Mastercard, and American Express of a fee based middle man transaction. They recently finalized an agreement with Facebook as being the sole provider and distributor of funds. They have also stepped up the play into as being the mobile app provider to all users. Growth this year has amounted to 61%. That alone shows the earning potential the smart-phone age has brought to this company. Lastly, Standard & Poor’s Ratings Services said Tuesday it upgraded its corporate credit rating on Internet e-commerce and payment company to A from A- with a stable outlook, reflecting the firm’s expectation that eBay will benefit from its leadership position in e-commerce and associated payment offerings.

VMware: VMW $51.25.  VMware, Inc.is a provider of virtualization solutions from the desktop to the data center. The Company’s suite of virtualization solutions addresses a range of information technology (IT) problems that include cost and operational inefficiencies, business continuity, software lifecycle management and desktop management. It works closely with over 900 technology partners, including server, microprocessor, storage, networking and software vendors. In September 2009, the Company announced the completion of its acquisition of SpringSource, an enterprise and Web application development and management. In February 2010, the Company acquired Zimbra, the vendor of open source email and collaboration software, from Yahoo! Inc. Virtualiztion can be read here. This service could potentially save a company millions of dollars. Computers in several companies are outdated. Rather than puchasing an operating a system for each station, VMware is capable of having one central system that provides support and an operating system to 1,000′s of computers and eliminate the need to buy software for each station.

Valero Energy Corp: VLO $18.75 Valero Energy Corporation (Valero) owns 15 refineries located in the United States, Canada and Aruba. The Company’s refineries can produce conventional gasolines, distillates, jet fuel, asphalt, petrochemicals, lubricants, and other refined products, as well as a slate of products, including conventional blendstock for oxygenate blending (CBOB) and reformulated gasoline blendstock for oxygenate blending (RBOB). Valero markets branded and unbranded refined products on a wholesale basis in the United States and Canada through an extensive bulk and rack marketing network. It also sells refined products through a network of about 5,800 retail and wholesale branded outlets in the United States, Canada and Aruba. It also owns 10 ethanol plants located in the Midwest with a combined ethanol production capacity of about 1.1 billion gallons per year. The Company operates in three segments: refining, ethanol and retail. With an abundance amount of Gas reserves in the Midwest Region Valero is in the ideal position for growth as they have expanded and constructed new refineries throughout the US.

Williams Companies Inc: WMB $22.50 The Williams Companies, Inc. (Williams) is a natural gas company. The Company primarily finds, produces, gathers, processes and transports natural gas. Its operations are concentrated in the Pacific Northwest, Rocky Mountains, Gulf Coast, Eastern Seaboard, and the province of Alberta in Canada. As of December 31, 2009, the Company operated in five segments: Exploration & Production, which produces, develops and manages natural gas reserves primarily located in the Rocky Mountain and Mid-Continent regions of the United States; Gas Pipeline, which includes its interstate natural gas pipelines and pipeline joint venture investments organized; Midstream Gas & Liquids, which includes its natural gas gathering, treating and processing business; Gas Marketing Services, which manages its natural gas commodity risk through purchases, sales and other related transactions, and Other.

More Large Cap Picks to Come, but Let’s Start with these.

I hope you take this time to research and adjust your portfolio accordingly. Please join me as we venture to financial prosperity!!! Cheers

ACE

Any questions feel free to contact me @ ACE@wallstreetgrand.com

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