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Red Roadmaster Stock Talk

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Red Roadmaster Stock Talk featuring C, GE, MSO, MGM, WYNN

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Page 1: Red Roadmaster Stock Talk
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The Red Roadmaster’s US Market Re-cap + Stock Talk ™

September 16, 2009 Date Line: USA

Yesterday's gains boosted the S&P 500 above 1,050 for the first time since early October 2008 as stocks charged North logging their 7th gainer in 8 sessions.

Re-cap of the US Stock Market Action for September 14, 2009

US Stocks rose Tuesday to new 2009 highs on strong manufacturing and retail sales data + higher commodity prices and materials companies shares.

The Reuters-Jefferies CRB index of commodity prices jumped 2.2% for its biggest gain in more than a month, while the S&P materials sector added 2.4% in the frame.

Comments by Federal Reserve Chairman Ben Bernanke that the recession was likely at an end favored basic materials companies. The commodities sector was helped by continued deterioration in the US$ which took the Dollar Index down to new 11 month lows before easing up to close out the day with a 0.2% loss.

The DJIA closed up 56.61 pts, or 0.59%, at 9,683.41, the S&P 500 was up 3.29 pts, or 0.31%, to close at 1,052.63, and the NAS tallied up a + 10.86 pts, or 0.52% to end the session at 2,102.64.

Shares of General Electric jumped 4.2% to US$16, on the rebound of 170% from its 2009 lows augurs for more room on the Northside for the broader stock market down the line. (see the profile of GE in Stock Talk today).

Trade was 1.5B/shrs on the NYSE. Longer-term averages stand closer to 1.4B/shrs. The DJIA +56.61 NAS +10.86, R2K +0.8%, S&P 400 +0.8%, S&P 500 +3.29, and the NAS Adv/Vol/Dec 1566/2.39 bln/1098 NYSE Adv/Vol/Dec 2142/1.50B/893

Stocks to Watch Today

Citigroup, Inc.(C), General Electric Company (GE), Martha Stewart Living Omnimedia Inc. (MSO): MGM MIRAGE (MGM), and Wynn Resorts Ltd. (WYNN)

Page 5: Red Roadmaster Stock Talk

Citigroup, Inc. (C) Up-date 50

September 16, 2009

Paul A. Ebeling, Jnr. Analyst

Today let’s look at Citigroup, Inc.(C), perhaps the largest financial services company in the world, from a Technical POV. The overall indications, after Tuesday’s (September 15, 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: http://www.stockta.com

Latest News: Citi's Cost of Smaller Government http://online.wsj.com/article/SB125304929854413463.html?ru=yahoo&mod=yahoo_hs

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Tuesday’s Market Action Close 4.12 -. 40 Volume 1,318,860,000/shrs

There is a DOJI on September 14 and one Gap open up on August 5, 2009 at 3.25/3.29 the near term resistance is 4.25, support 3.92, and the 50 day (EMA) exponential moving average is 4.05. This is Citigroup, Inc. (C): Citi is perhaps the largest financial services firms on the planet, Citigroup, AKA Citi, has about 3,000 bank branches and consumer finance offices in the US and Canada, + more than 2,000 additional locations in a 100 other countries. Citi is the first US bank to come with more than US$1T in assets, Citi offers deposits and loans, mainly through Citibank, investment banking, brokerage, wealth management, alternative investments, and other financial services. Former CEO Chuck Prince resigned in 2007 as Citi deals with some $60 billion in write downs and losses on mortgage-related securities and other investments. Robert Rubin, Key Advisor/Director recently announced his resignation. The Competitive Landscape Demand for banking services is tied to economic activity and interest rates levels. The profitability of individual banks depends on marketing, efficient operations, and competent risk management. Large economies of scale exist in some segments of the industry, which has experienced consolidation. Smaller banks can compete successfully in segments where customer service or knowledge of the local market is more important. The industry is capital-intensive and highly automated: annual revenue per employee is about US$300,000. Banks and Credit Unions Industry Forecast

The output of US banks and credit unions growth forecast remains a question

Industries Where Citigroup Competes Banking Money Center Banks (primary) Financial Services Asset Management Investment Banking Lending Citigroup, Inc. (HQ) Chief Exec. Officer, Director Vikram S. Pandit 399 Park Ave. New York, NY 10043 United States Phone: 212-559-1000 Toll Free: 800-285-3000 http://www.citigroup.com

Citigroup Subsidiaries Grupo Financiero Banamex, S.A. de C.V. Bank Handlowy w Warszawie S.A. Citi Commerce Solutions

Page 7: Red Roadmaster Stock Talk

General Electric Company (GE) Up-date 42

September 16, 2009

Paul A. Ebeling, Jnr. Analyst

Today let’s look at General Electric Company (GE), a company whose innovative leadership has played a major part in shaping the modern world and how we live and enjoy it, from a Technical POV. The overall indications after Tuesday’s (September 15, 2009) market action is Bullish: in the near term Bullish, mid-term Very Bullish:, and long term Bullish:. The recent Candle Stick Analysis is Bullish .

**Chart by: http://www.stockta.com

Latest News: How 'Buy American' Can Hurt U.S. Firms http://online.wsj.com/article/SB125306012124114135.html?ru=yahoo&mod=yahoo_hs

Page 8: Red Roadmaster Stock Talk

Tuesday’s Market Action Close 16.00 0.00 Volume 209,198,500/shrs

There is a Bullish Engulfing Candle on September 14 and five Gaps open up between April 2 and September 15, 2009 at 10.26/15.46, the near term resistance is NIL, support 15.47, at and the 50 day (EMA) exponential moving average is 13.74. This is the General Electric Company (GE): GE manufactures everything from turbines to TVs, from household appliances to power plants, General Electric has innovated businesses that have shaped the modern world and how we live and enjoy it. The company produces; aircraft engines, locomotives and other transportation equipment, kitchen and laundry appliances, lighting, electric distribution and control equipment, generators and turbines, and medical imaging equipment. GE is also one of the preeminent financial services companies in the US. Its General Electric Capital unit comprises commercial finance, consumer finance, aircraft leasing, and energy financial services, is its largest segment. Plus they own and operate the NBC television network.

Industries Where GE Competes

Commercial Lending (primary) Aerospace & Defense Automotive & Transport Consumer Products Manufacturers

GE Subsidiaries and Affiliates CFM International, S.A. Société Factofrance Fanuc GE CNC Europe S.A.

General Electric (HQ) Chairman and CEO Jeffrey R. (Jeff) Immelt 3135 Easton Tpke. Fairfield, CT 06828-0001 United States Phone: 203-373-2211 Fax: 203-373-3131

http://www.ge.com

Page 9: Red Roadmaster Stock Talk

MGM Mirage (MGM) Up-date 7

September 16, 2009

Paul A. Ebeling, Jnr. Analyst

Today let’s look at MGM Mirage (MGM), one of the World's largest gaming firms, from a Technical POV. The overall indications, after Tuesday’s (September 15, 2009) market action, are Bullish: in the near term Bullish, mid-term Very Bullish, and long term Bullish. Recent Candle Stick Analysis is: Neutral

**Chart by: http://www.stockta.com

Latest News: What Happens in LVS...: Mad About Options http://www.thestreet.com/_yahoo/video/10598338/what-happens-in-lvs-mad-about-options.html?cm_ven=YAHOOV&cm_cat=FREE&cm_ite=NA&s=1#40228009001

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Tuesday’s Market Action Close 13.37 0.00 Volume 67,777,400/shrs

There is a Bearish Doji Star on September 11, and four Gaps open up between April 2 and September 15, 2009 at 2.63/12.51, the near term resistance is 13.50, support at 13.41, and the 50 day (EMA) exponential moving average is 8.82.

This is MGM MIRAGE (MGM): MGM Mirage through its subsidiaries owns and operates casino resorts in the United States. The company’s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2008, the company’s properties consisted of 17 wholly-owned casino resorts and 50% investments in 4 other casino resorts. It has a strategic alliance with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort under the MGM Grand brand name in Ledyard, Connecticut. The company, formerly known as MGM Grand, Inc., was founded in 1986 and is based in Las Vegas, Nevada. MGM MIRAGE is a subsidiary of Tracinda Corporation.

Competitive Landscape

Growth in consumer income and state spending has driven expansion of the US gambling industry. The profitability of individual companies depends on efficient operations and effective marketing. Large operators have the financial resources to make large investments in facilities and efficient computer operations, and have cross-marketing opportunities. Small gambling facilities can thrive by catering to a local clientèle. The industry is fairly labor-intensive: annual revenue per employee is US$90,000. Gambling Operations Industry Forecast US personal consumption expenditures for participant amusements and pari-mutuel net receipts, which include gambling operations, are forecast to grow at an annual compounded rate of 4% between 2008 and 2013. Data Sourced: December 2008

MGM Mirage (HQ)

James J. Murren: Chairman, Chief Exec. Officer and President

3600 Las Vegas Boulevard South Las Vegas, NV 89109 United States Phone: 702-693-7120 Fax: 702-693-8626

http://www.mgm-mirage.com

Page 11: Red Roadmaster Stock Talk

Martha Stewart Living Omnimedia Inc. (MSO) Up-date 1

September 16, 2009

Paul A. Ebeling, Jnr. Analyst

Today, let’s look at Martha Stewart Living Omnimedia Inc. (MSO), Martha Stewart’s testimonial to recovering from extreme misfortune, from a Technical POV. The overall indications, after Tuesday’s (September 15, 2009) market action, are Very Bullish: in the near term Bullish, mid-term Very Bullish, and long term Very Bullish. The recent candlestick analysis is Bullish

**Chart by: http://www.stockta.com

Latest News: Jim Cramer Loves Martha

http://seekingalpha.com/article/161686-cramer-s-mad-money-cramer-loves-martha-9-15-09?source=yahoo

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Tuesday’s Market Action Close 8.14 + .65 Volume2,746,100/shrs

There Bullish Engulfing Candle on September 14, are three Gaps open up between August 21 and September 15, 2009 at 4.40/7.11, the near term resistance is NIL, support at 7.54, and the 50 day (EMA) exponential moving average is 5.28.

This is Martha Stewart Living Omnimedia Inc. (MSO): The company has its fingers in many money-making pies: publishing (magazines and books), broadcasting (TV programs, satellite radio), Internet, and merchandising. The bulk of MSLO's business comes from its publishing activities, which are driven by its flagship magazine Martha Stewart Living. Stewart controls about 50% of MSLO's stock and about 90% of voting stock.

Competitive Landscape

Demand for magazines is driven largely by growth in consumer income. The profitability of individual companies depends highly on marketing expertise. Small companies can compete by specializing in niche topics and markets, while larger companies benefit from a wide selection of magazine titles to offer advertisers. Large companies also have economies of scale in production and distribution. The industry is labor-intensive: average annual revenue per worker is US$120,000. Magazine Publishers Industry Forecast The output of US periodical publishing and printing, which includes magazine publishing, is forecast to grow at an annual compounded rate of 1% between 2008 and 2013. Data Sourced: December 2008

Martha Stewart Living Omnimedia Inc. (HQ)

Charles Koppelman Exec. Chairman, Principal Exec. Officer

11 West 42nd Street 25th Floor New York, NY 10036 United States Phone: 212-827-8000 Fax: 212-827-8204

http://www.marthastewart.com

Page 13: Red Roadmaster Stock Talk

Wynn Resorts Ltd. (WYNN) Up-date 5

September 16, 2009, 2009

Paul A. Ebeling, Jnr. Analyst

Today let’s look at Wynn Resorts Ltd. (WYNN), the brainchild of gaming wizard Steven Wynn, from a Technical POV. The overall indications, after Tuesday (September 15, 2009) market action, are Bullish: in the near term Neutral, mid-term Bullish, and long term Very Bullish. The recent Candle Stick analysis is: Neutral

**Chart by: http://www.stockta.com

Latest News: The Short Sellers Shoot Themselves (9/15/09)

Page 14: Red Roadmaster Stock Talk

http://seekingalpha.com/article/161684-cramer-s-stop-trading-the-short-sellers-shoot-themselves-9-15-09?source=yahoo

Tuesday’s Market Action Close 72.47 + 3.36 Volume 8,093,600/shrs

There are six Gaps open up between Apr 2, and September 11, 2009 at 21.64/63.60, the near term resistance is NIL, support at 71.03, and the 50 day (EMA) exponential moving average is 52.77.

This is Wynn Resorts Ltd. (WYNN): Wynn Resorts is the brainchild of gaming mogul and former Mirage Resorts chairman Steve Wynn. The US$2.4B resort and casino, built on the site of the former Desert Inn on the Las Vegas Strip, boasts more than 2,700 rooms, a casino with nearly 2,000 slots and about 140 table games, some 20 restaurants, a golf course, an art gallery (featuring Wynn's personal collection), two wedding chapels, and a Ferrari and Maserati dealership. Wynn Resorts also includes Encore at Wynn Las Vegas, a hotel and casino adjacent to its Wynn Las Vegas property, and the Wynn Macau, a hotel and casino in China. Steve Wynn owns about 21% of the company.

Competitive Landscape

Growth in consumer income and state spending has driven expansion of the US gambling industry. The profitability of individual companies depends on efficient operations and effective marketing. Large operators have the financial resources to make large investments in facilities and efficient computer operations, and have cross-marketing opportunities. Small gambling facilities can thrive by catering to a local clientèle. The industry is fairly labor-intensive: annual revenue per employee is US$90,000. Gambling Operations Industry Forecast

US personal consumption expenditures for participant amusements and pari-mutuel net receipts, which include gambling operations, are forecast to grow at an annual compounded rate of 4 % between 2008 and 2013. Data Sourced: December 2008

Wynn Resorts Ltd. (HQ)

Chairman and Chief Executive Officer: Stephen A. Wynn

3131 Las Vegas Boulevard South Las Vegas, NV 89109 United States Phone: 702-770-7555 Fax: 702-770-1571

http://www.wynnresorts.com

Disclaimer

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE OR IN OUR NEWSLETTERS. Red Roadmaster is not registered as a securities broker-dealer or an investment advisor either

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within the US Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice.

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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 companies’ 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 “forward looking statements” 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 company’s 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.

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