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Red Roadmaster Stock Talk featuring BA, IP, SJM

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

August 24, 2009 Date Line: Newport Beach, CA.

The Bull got up and Charged last week, the S&P 500 and the NAS hit 10-month intra-day highs, while the DJIA rose to their highest level in 9 months. On the week, the DJIA rose 2%, the S&P 500 climbed 2.2% and the NAS tallied up + 1.8%.

The S&P 500 is now up 51.7% from its 12-year closing low set on March 9.

Re-cap of the US Stock Market Action for the week ending August 14, 2009 US Stocks ended the session last Friday at 2009 highs after a rise in home sales and optimistic comments from Federal Reserve Chair Ben Bernanke reassured investors about the prospects of this economic recovery. At the Fed's annual conference in Jackson Hole, Wyoming, Bernanke gave his clearest signal to date that the global economy is emerging from a recession. The DJIA surged 155.91 pts, or 1.67%, to close at 9,505.96, the S&P 500 Index climbed 18.76 points, or 1.86 percent, to 1,026.13, and the NAS tallied up + 31.68 pts, or 1.59%, closing the week at 2,020.90. J.M. Smucker climbed 4.3% to US$54.10 after the company reported a higher Y 2009 Q-1 profit and gave a strong full-year outlook. See the picture in Stock Talk below. The NAS advance was led by Apple Inc, up 1.7 % closing at US$169.22, and Microsoft Corp, up 3.1% at US$24.41. Both recently covered in Stock talk American International Group shares rose 1.7% closing at US$32.85. Earlier, AIG's stock rose to an intraday high at $35.00 on news that the insurer had won dismissal of a federal lawsuit. AIG’s stock price has more than doubled since the beginning of August. Recently covered in Stock Talk. Energy shares also were in the Bright Headlights, with US Crude Oil futures prices climbing to a 2009 high at US$74.72 bbl. The front-month Crude Oil contract gained 98 cents, or 1.3%, to settle at the close last Friday at US$73.89 bbl on the New York Merc Exchange. Chevron advanced 1.6% to US$69.73 and Exxon Mobil rose 1.9% to US$69.92. Covered in Stock Talk last week as well. Stock Talk is a good guide for your continuing Market Technical Resource (MTR), it is all about the Technicals IMO. Volume and Breadth: Trade was moderate on the NYSE, with 1.48B/shrs changing hands, just below last year's estimated daily average of 1.49 billion, and on the NAS, about 2.28B/shrs traded, matching last year's daily average. Advancers outnumbered decliners on the NYSE by a ratio of slightly more than 4 to 1, and on the NAS about 20 stocks rose for every 7 that fell.

Stocks to Watch Today

The Boeing Company (BA), International Paper Co. (IP), The J. M. Smucker Company (SJM), and

The Boeing Co (BA) Up-date 8

August 24, 2009

Paul A. Ebeling, Jnr. Analyst

Today let’s have a look at The Boeing Company (BA), the US Aerospace and Defense Giant, from a Technical POV. The overall indications, after Friday’s (August 21, 2009) market action, are Neutral: in the near term Neutral, mid-term Bullish, and long term Neutral. The recent Candle Stick analysis is:Bullish.

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

Latest News: Boeing gets US$1.16B Air Force deal for C-17 transport aircraft http://finance.yahoo.com/news/Boeing-gets-116B-Air-Force-apf-1622414803.html?x=0&.v=1

Friday’s Market Action Close 45.87 + 1.13 Volume 5,529,800/shrs

There is a DOJI on August 19two Gaps open up between Apr 2, and Aug 21 at 35.60/44.61, the near term resistance is 48.12, support at 45.09 and the 50 day (EMA) exponential moving average is 43.88. This is the Boeing Company (BA): The Company conducts business through three operating segments. Boeing Commercial Airplanes (46% of revenue & 26% of operating profit) and EADS’s Airbus division which is the world’s only maker of 130-plus seat passenger jet. BCA family of planes includes 747, 767, 777, and 787 wide body models. Integrated Defense Systems (IDS; 53%, 71%) is the world’s second largest military contractor, closely following Lockheed Martin Corp. Their primary customer is the Department of Defense. Finally, Boeing Capital Corp. (1%, 3%) primarily finances commercial aircraft for airlines.

The Competitive Landscape

The industry has a relatively high barrier of entry considering the extreme capital intensive nature of building airplanes. Contracts tend to be long-term in nature and competition among few major companies is fierce. General outlook on defense spending is negative due to expected budget cuts of the industry’s biggest client (DOD). Global economic decline is weighing significantly on the commercial aerospace segment of the industry. Aerospace & Defense Industry Performance The S&P Aerospace & Defense index fell 37.6% in 2008, versus 38.2% decline in the S&P 1500. Year to date through May 8th, the sub industry rose 2.5%, vs. 3.3% rise in the S&P 1500.

The Boeing Company

Chairman and Chief Director: W. James McNerney 100 N. Riverside Plaza Chicago, IL 60606 Phone: 312-544-2000 http://www.boeing.com

International Paper Co. (IP) Up-date 1

August 24, 2009

Paul A. Ebeling, Jnr. Analyst

Today, let’s look at International Paper Co. (IP), the world's largest forest products company, from a Technical POV. The overall indications, after Friday’s (August 21, 2009) market action, are Neutral: in the near term Neutral, mid-term Bullish, and long term Bullish. The recent candlestick analysis is Very Bearish.

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

Latest News: US Fed says: Mid-Atlantic manufacturing turns positive http://finance.yahoo.com/news/Fed-MidAtlantic-manufacturing-apf-846907008.html?x=0&.v=4

Friday’s Market Action Close 21.18 + .98 Volume 8,007,200/shrs

There is a Bearish Doji Star on August 20 and seven Gaps open up between March 10 and July 21, 2009 at 4.45/17.21, the near term resistance is 21.42, support at 19.97, and the 50 day (EMA) exponential moving average is 17.43.

This is International Paper Co. (IP): this is the world's largest forest products company produces uncoated paper, industrial and consumer packaging, and pulp. Together, paper and packaging account for nearly two-thirds of the company's sales. IP also distributes printing, packaging, and graphic-art supplies in North America through subsidiary xpedx and in Europe through multiple subsidiaries. Slimming down, the company has sold its specialty chemicals operations, the majority of its lumber and wood products business, and most of the 6.3 million acres of US forestland it once owned. It retains 300,000 acres of US land and owns or has harvesting rights to nearly 250,000 acres of forestland in Brazil.

Competitive Landscape

Demand is driven by general commercial activity and population growth. The profitability of individual companies depends on efficient operations, as products are sold mainly based on price. Big companies have advantages in distribution and can supply large customers. There are few economies of scale in manufacturing; large and small producers operate the same kinds of plants -- large producers just have more of them. Small companies can compete successfully by making specialty products or serving a small geographical market. The industry is capital-intensive: average annual revenue per worker is close to US$300,000, although the figure varies by product segment.

Paper Products Manufacture Industry Forecast

The output of US pulp, paper, and paperboard products manufacturing is forecast to grow at an annual compounded rate of 2 percent between 2008 and 2013. Data Sourced: December 2008 International Paper Co. (HQ) John V. Faraci , Chairman, Chief Exec. Officer and Chairman of Exec. Committee 6400 Poplar Avenue Memphis, TN 38197 United States Phone: 901-419-7000 Fax: 901-419-4539 http://www.internationalpaper.com

The J. M. Smucker Company (SJM) Up-date 1

August 24, 2009

Paul A. Ebeling, Jnr. Analyst

Today, let’s look at The J. M. Smucker Company (SJM), the Giant Jellies and Jamer, from a Technical POV. The overall indications, after Friday’s (August 21, 2009) market action, is Bullish: in the near term Neutral, mid-term Very Bullish, and long term Bullish. The recent Candle Stick analysis is: Very Bearish

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

Latest News: J.M. Smucker's fiscal Y 2009 Q-1 profit more than doubles, beats expectations on sales boost

http://finance.yahoo.com/news/JM-Smucker-fiscal-1Q-earnings-apf-11580066.html?x=0&.v=8

Friday’s Market Action Close 54.10 + 2.22 Volume 2,555,800/shrs

There is a Bearish Doji Star on August 21, and four Gaps open up between June 1 and August 21, 2009 at 40.26/53.56, the near term resistance is NIL, support at 53.66, and the 50 day (EMA) exponential moving average is 48.88.

This is The J. M. Smucker Company (SJM): Company engages in the manufacture and marketing of branded food products in the United States, Canada, and internationally. Its products include peanut butter, shortening and oils, fruit spreads, canned milk, baking mixes and ready-to-spread frostings, flour and baking ingredients, juices and beverages, frozen sandwiches, dessert toppings, syrups, pickles and condiments, packaged coffee products, and potato side dishes. The company offers its products under the brand names of Smacker’s; Jif; Crisco; Eagle Brand; Mary Ellen; Dutch Girl; Martha White; LaPina; White Lily; Hungry Jack; Uncrustables; Simply Jif; Golden Temple; Softasilk; Dickinson’s; Crosse & Blackwell; Funfetti; Adams; Laura Scudder’s; Goober; Pet; Magic Shell; Simple Measures; Plate Scapers; Bick’s; Five Roses; Robin Hood; Carnation; Europe’s Best; R. W. Knudsen Family; Santa Cruz Organic; Double Fruit; Simply Nutritious; Recharge; and Red River. It also markets its products under the Pillsbury, Pillsbury Doughboy, Carnation, Borden, and the Elsie design brand names that are used under license, as well as under Folgers and Millstone brands. It sells products primarily through brokers to food retailers, food wholesalers, club stores, mass merchandisers, discount stores, and military commissaries, as well as through retail channels, including foodservice distributors and operators, such as restaurants, schools and universities, and healthcare operators; and health and natural foods stores and distributors. The company was founded in 1897 and is headquartered in Orrville, Ohio.

Competitive Landscape

Demand is driven by food consumption, which depends on population growth. The profitability of individual companies depends on efficient operations because products are commodities subject to intense price competition. Companies compete largely based on cost and their ability to distribute the finished product. Large companies have advantages in distribution operations. Small companies can compete effectively in local or regional markets.

Fruit and Vegetable Processing Industry Forecast

The output of US frozen foods and canned and dried fruits and vegetables, an indicator for fruit and vegetable processing, is forecast to grow at an annual compounded rate of 3% between 2008 and 2013. Data Sourced: December 2008

The J. M. Smucker Company (HQ)

Timothy P. Smucker Chairman and Co-Chief Exec. Officer

One Strawberry Lane Orrville, OH 44667-0280 United States - Map Phone: 330-682-3000 Fax: 330-684-6410 Web Site: http://www.smucker.com

Texas Instruments (TXN) Up-date 4

August 24, 2009

Paul A. Ebeling, Jnr. Analyst

Today let’s look at Texas Instruments (TXN), the market leader in digital signal processors (DSPs), from a Technical POV. The overall analysis after Friday’s (August 21, 2009) market action is Bullish; in the near term Neutral, mid-term Very Bullish, and long term Very Bullish. The recent Candle Stick analysis is Neutral.

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

Latest News: Texas Instruments agrees to bid US$172.5M for Qimonda's Virginia chip factory http://finance.yahoo.com/news/TI-offers-to-bid-on-Qimondas-apf-2433540908.html?x=0&.v=1

Friday’s Market Action Close 24.54 + .43 Volume 10,667,400/shrs

There are two Gaps open up on June 9, and July 15 2009 at 19.99/21.51, the near term resistance is 24.60, support at 23.94, and the 50 day (EMA) exponential moving average is 22.61.

This is Texas Instruments Inc. (TXN): TI is one of the world's oldest and largest semiconductor makers, Texas Instruments is the market leader in digital signal processors (DSPs). Many of the wireless phones sold worldwide contain TI's DSPs, which are also found in other products, such as DVD players, automotive systems, and computer modems. TI jockeys back and forth with European chip giant STMicroelectronics to be the world's top maker of analog chips; both companies far outpace other analog rivals. Additional TI semiconductor offerings include logic chips, microprocessors, microcontrollers, and display components. The company also makes handheld calculators. Nokia accounts for about 20% of sales.

Competitive Landscape

The industry depends highly on demand from the computer industry and makers of telecommunications products such as cell phones, which can vary sharply from year to year. Companies can be successful producing standard parts at low cost or by producing highly specialized components. Small companies can compete effectively with large ones by producing specialized products or developing new applications. Technological expertise is extremely important. The industry is highly automated: average annual revenue per employee is about US$300,000.

Electronic Components & Semiconductor Manufacture Industry Forecast

The value of US electronic components manufacturing output is forecast to grow at an annual compounded rate of 4% between 2008 and 2013. Data Sourced: December 2008

Texas Instruments Inc. (HQ)

Richard K. Templeton Chairman, Chief Exec. Officer and President 12500 TI Boulevard PO Box 60199 Dallas, TX 75266-0199 United States Phone: 972-995-2011 Fax: 972-995-4360 http://www.ti.com Disclaimer

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