About Author: Gino Lattarulo

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Posts by Gino Lattarulo

4

Sirius Is Still My Mistress

By
Gino Lattarulo
– May 17, 2011
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By: Gino Lattarulo

Well what can I say. Even the most careful people can be suckers for a sexy long shot. I mean, I am a monogamous conservative with my trading; working solely from  good solid chart patterns and steady companies. But, I confess, Sirius (NASDAQ:SIRI)  has been my mistress for almost seven years now.  She has punished me, rewarded me, made me sweat, made me sing, and made me so mad that I swore her off for good. She has been the best single malt scotch I have ever had and has caused headaches worse than a tequila hangover on New Years Day. But,  in the last two years Sirius has really made some terrific money for those who truly believed in the product. So how does the  firecracker of Wall Street measure up these days? I think this girl is still smokin’ hot and the charts agree.  At the beginning of May Siri plowed right the $2.00 mark and peaked just over $ 2.40  after the earnings report.  In typical fashion many Wall Street analysts scrambled to adjust their price targets  to avoid looking stupid for failing to do any meaningful research.  Profit taking is now moving the stock down to steadier levels so it can form a new base.  We can see that the price action is near the 20 day  average and  it may retest the    $ 2.00 mark before settling down completely.   If you pull up a weekly chart on Siri you will see the 50 MA starting to thread through the 200 MA, which is exceptional. The next long term resistance point is around $4.00 so unless the world actually ends in 2012, Sirius should be stretching those long legs again and continuing the climb.

NOTE:  Getting into the market right now is very dicey . The leading averages seem to be holding while many stocks are selling off.    Some of the bell weather stocks like  Amazon (NASDAQ: AMZN) , Apple (NASDAQ: AAPL), and Google (NASDAQ: GOOG) all seem to be slipping back to  support levels.  Right now I am 95% in cash and avoiding buying stocks  until we see where things are heading.

As we always said in the military, ” Stand By To Stand By “

Peace

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0

Wabash National Chart Breaks Bullish – The Trade

By
Gino Lattarulo
– October 5, 2010
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wabBy: Gino Lattarulo

I’m going to deviate from my normal tech sector rantings and post a beautiful looking chart from Wabash National (NYSE: WNC) . Wabash National Corporation is a company in the consumer goods sector that designs, manufactures, and markets customized truck trailers and related transportation equipment mostly in North America. We can see on the daily chart that the stock action has been in a period of consolidation since late May of this year, resulting in a very nice looking triangle pattern. It has recently broken out of this pattern at the  $ 8.00 mark. Although volume has not dramatically spiked, it has remained liquid within its average range. The price action has found its bottom on the 200 EMA (purple line) at the $6.00 area. The 10 day Moving Average crossed up through the 50 Moving Average as well to help confirm the Support.

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7

Sirius XM’s Chart Breaks Out

By
Gino Lattarulo
– September 22, 2010
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By: Gino Lattarulo

On Sept 8th the stock action for Sirus XM (NASDAQ:SIRI) broke out of the triangle pattern it had been forming since early May of this year.  The stock gained further strength out of the pattern when Mel Karmazin re-affirmed 2010 guidance of revenue around the $2.8 billion mark.

siri

After a consolidation period of  four plus months we can see on the daily chart where it broke upward through the trend line at approximately $1.02. Coincidentally this is the same point in which it broke through the ever important 50 day Moving Average. Usually after this type of pattern breakout a stock’s price action will re-test the trend line before continuing upward. We can see in the chart that this did not happen. The price moved sideways in a 4 day continuation pattern before continuing its upward movement. It is important to note that although the volume did not spike  dramatically it has not declined from its average and Relative Strength has remained close to or above the 50 mark.  January 2011 call options activity is seeing some action at the $ 1.50  strike and interestingly enough the $2.00 strike seems to be waking up a bit with some respectable volume.  Open interest for that $2.00 strike is currently around 23,000 . This is not overly significant because there could be bears out there looking for insurance policies but in any case it does show some bullish sentiment.

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11

Sirius XM Would Be Fine Without Howard Stern

By
Gino Lattarulo
– September 17, 2010
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scBy: Gino Lattarulo

The big question on people’s minds lately is whether or not the departure of Howard Stern will cause major problems for Sirius XM Radio (NASDAQ:SIRI) . Will he leave? Will he stay? What will they do without him?  The sky is falling ! The sky is falling! Mommy help!  Enough already. The time for Stern to have such a significant impact on Sirius has long passed.  He is the not backbone. Don’t get me wrong, Howard has done wonderful things for the  company. He is an absolute benefit to have and if he stays it would certainly be good for business. But please….  The notion that Sirius would be in really serious trouble without Howard Stern is utterly ludicrous. Does anyone really think the company would be so distraught without him that there would be severe repercussions? Obviously so.  I think one dim-bulb author actually wrote that the company would go bankrupt without him.

Let me say this. Sirius will be just fine if Stern leaves. And Heaven knows that the cost savings can be re-directed elsewhere into additional talent content.  Sure, Howard is credited with adding two million subscribers when he first came on board four years ago but the notion that two million people will cancel if he leaves is very difficult to believe when you consider the amount of content available. We also have to take into consideration the stock action. We all know that a mere RUMOR of negativity will send a stock down let alone a potentially real occurrence.  Sirius’ stock action has made no indication that the significant masses will lose any sleep if Stern leaves. Half a million subscribers per quarter in todays economic climate tells me that there is much more going on than just one person or one entity. Stern was defintely the hype that Mel needed at the beginning, of the company but not anymore. It’s a much broader content arena now.

So if you are going to worry about the long term success of this company, divert your brain power toward the real backbone of Sirius, which is the continued growth of auto sales and the success of the big companies that make it happen. Ford (NYSE:F), General Motors (TBA), Toyota (NYSE:TM), Honda (NYSE:HMC), Nissan, Hyundai, Volkswagon, Chrysler, BMW, Kia, Mercedes, etc.

Remember  at the end of the day that hype is just hype and opinions are like…. well, you get the idea.

Position: Long Siri.

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3

Google Aims A Cannon At Skype

By
Gino Lattarulo
– August 30, 2010
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By: Gino Lattarulo

Google-KingWhen I was in the military during the early 90′s I can remember racking up disturbing amounts of long distance charges talking with my family and girl friend (mostly my girl friend) each month. Cell phone plans were still in their infancy and each minute cost more than a gallon of gas. Remember the “Brick” phone? Yeah, that baby cost four grand when it first came out. Nowadays cell phones plans are so cheap they are replacing traditional landlines. I admit it, I have no traditional  ”home” phone. Phone companies like Verizon (NYSE:VZ), AT&T (NYSE:T), and Time Warner (NYSE: TWX) who had recognized this trend began offering unlimited home Voice Over Internet Protocol (VOIP) plans, and voila, Talk is literally cheap.

Enter Skype:  Well, actually Skype is one of the pioneers of the VOIP revolution and is one of the main reasons phone companies had to jump on board in the first place.  In 2004 when VOIP became commercially accepted as a viable source of communicating, companies like Skype and Vonage became innovators in marketing the service to consumers.  Vonage (NYSE:VG) went public a few years ago with their broadband modem format and now Skype is jumping on the IPO bandwagon with their proprietary software based system. Skype to Skype calls are free while traditional calls are pennies per minute.

Enter Google Inc. (NASDAQ:GOOG):  Once again it looks like the mega giant of the Internet is doing everything to continue its omnipotent presence. As Skype nears IPO status, Google has recently launched a free VOIP service from within Gmail that offers free calling to any phone or phone number in the United States and Canada.  Perfect timing don’t you think?  Although  Google Voice will have little effect on the Google’s income structure, if embraced widely enough it will almost certainly pose a disturbing threat to Skype who charges $.02 per minute for domestic calling and relies on those charges to support their business.

As  Google continues its path toward world domination, it will be a mind bending experience to say the least to see which companies it simply gobbles up and which ones are just pounded into dust.  With pockets so deep they have mold growing on the cash, Google can pretty much do what it wants.  And it does.

Disclosure: No positions in GOOG and VG

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