Meltdowns & Middle East Make Markets Morose

Top Quote Japan tsunami and nuclear reactor effect to world stock. End Quote
  • (1888PressRelease) April 17, 2011 - Kinetic Securities announced a new securities report regarding latest disaster at Japan. Tsunami and a nuclear reactor meltdown are the main headlines. The disaster news followed by political view over Libya where UN forces will engaged Gaddafi troops in near future. More events still could erupt in no time makes Oil and Energy stocks continue to advance.

    Kinetic Securities reported S&P500 ended the week down 1.9%. It was a fair result regarding their down at 4.2% in the past. Dow30 closed at 11858.52 (-1.5%), Nasdaq 2643.67 (-2.6%) and Russell2000 794.66 down by -1.0%. The markets have been hit with multiple shocks at the same time but are still holding the position, which is a good sign. Kinetic Securities forecast that traders will continue to be nervous in the week ahead as any more bad news from the Middle East or Japan will set them off selling again. Despite the bad news and European sovereign debt, Kinetic Securities still forecast it will be a good sign to trade in both short and long term trading.

    Kinetic Securities mentioned Japan two decade recession will not relieved in near time despite the market beliefs that the tragic events in Japan will stimulate growth in Gross Domestic Product. "The belief out there is simply not true, all that will happen is the money that was going to be spent elsewhere will now spent rebuilding. It will just be moved around so it will not add to Gross Domestic Product nor pull them out the recession" said Matthew, Kinetic Securities insider.

    One piece of overlooked news Kinetic Securities reported this week was the Federal Reserve announcing their investigations regarding major banks dividends. The major banks including JP Morgan Chase (JPM), Wells Fargo (WFC) and US Bank (USB) now allowed resuming dividend payouts up to 30% of expected earnings. Before the crisis major banks routinely paid out half their earnings as dividends.

    Kinetic Securities has Grupo Finan Galicia -GGAL and Texas Capital Bank Shares - TCBI as this week stock in focus. GGAL is the Argentine holding company for Banco Galicia and other financial service companies in Argentina. GGAL operate from 237 branches around the country and have EPS growth rate of 47%. With a PE of 15, GGAL is fairly priced at current earnings and has no debt. GGAL stock has come off nicely in this recent round of selling and now represents good value around the $13 mark.

    TCBI is the holding company for Texas Capital Bank which operates 10 offices in Dallas, Bexar and 5 other Texas Counties. TCBI earnings for 2010 were $1.00 and 2011 is forecasted at $1.42 which why the PE is a little high at 25. Texas has had on of the most stable house prices in the US plus the bank sales machine topped at 18% per year is a great formula for increasing earnings. TCBI stock is already to move up, Kinetic Securities recommend it if you can get under $26, that would be a good investment.

    Kinetic Securities insider said that this week is very volatile week on global ETFs. Increased volatility seen in the Alternative Energy ETF like Power Shares Global Nuclear ETF (PKN). PKN has 80% of its assets in Nuclear Stocks, having meltdown as much as 19% before recovering to settle at 10% down for the week. Another example is First Trust ISE Global Wind Energy (FAN), that investing in the wind energy industry. FAN moved over 11% higher broken its 2010 highs. Taking a view from technical perspective, wind energy industry looks like gaining its momentum.

    Kinetic Securities insider, Matthew Sharratt welcomes any questions regarding ETFs at Kinetic Securities office. "we are always happy to help out, have a great week", says Matthew Sharratt as the closure.

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