Street Justice: Eur-o Not So Tough!

Finally, we ended a week on a good note. That'll keep the bears quiet(till Monday). Hey all. No offense to those that consider themselves bearish investors. Someones gotta do it. I've got a bunch of stuff to go over today. So, first things first. I found 3 companies for you to look over this weekend, each of which I ran through the Street Justice ringer.
AAP/Advanced Auto Parts is up first. They are a retail distributor of automotive products(hence the name). These products include replacement parts, accessories, maintenance items, batteries and automotive fluids for cars and small trucks(SUV's, Pick-ups, mini-vans and vans). AAP operates over 6,000 stores throughout the US, Puerto Rico and the Virgin Islands. They also have a wholesale distribution network which consists of independently owned and operated dealer locations. AAP's relative value, timing and safety are all within a solid range and they have an 8% forecasted earnings growth rate. Sales for AAP have increased 5% over last year with net income increasing 3%( net income less than sales due to higher production costs which are subsiding). AAP has a ROE of 23% and have climbed(price) 36% over the past 52 weeks and 17% over the last month. AAP pays a dividend of $.24 per share with an 8% dividend growth rate. Next in line is WDR/Waddell+Reed. They provide investment management, investment product underwriting and distribution. Basically WDR is an investment bank(don't be scared). They cater to high net worth families and businesses. They also manage several funds and provide service to those customers. WDR has great relative value, timing and safety. They have a forecasted earnings growth rate of 21% and a P/E ratio of 16.10. WDR's net income has jumped 172% over the last year and 24% over the last quarter. ROE for WDR is 37% and they have a net margin of 14%. WDR has climbed(price) 33% over the past 52 weeks and 1% over the last month. EPS were up 27% for the quarter as well. As if they needed to they pay a dividend of $.76 per share with a dividend growth rate of 13%. COCO/Corinthian College is last up for today. As I'm sure you guessed they operate as a college. COCO provides degree and diploma granting, for-profit post-secondary schools devoted to career training program training primarily in the health-care, electronics, information technology, criminal justice, auto repair and diesel technical fields. They offer a variety of associates, bachelors and masters degree and diploma programs through 93 colleges in the Us and 17 in Canada. COCO has good relative numbers and a 16% forecasted earnings growth rate. EPS were up 45% over last quarter for COCO and sales were up 3% for the quarter. Net income for COCO was up 46% over last quarter and they have a ROE of 8%.
So even with all the negative buzz coming out of the financial world, we have still managed to close this week on an up note. Investor confidence(and the dollar) continues to rise as oil continues to fall. If these trends continue next week, I have no doubt the market will keep it's momentum.
I know somebody had a good week thanks to the stock market(me). What about you all? How did my readers fare this week? Let me know.
I almost didn't recommend any stocks today because I have so much to go over regarding Forex trading, more specifically the EUR/USD. I'm sure any of you that keep up on economic news know the dollar has been on an upward run against the Euro among other crosses. Do you know how much we've gained though? Let's put it this way, we are at the same levels we were at back in late February. The EUR/USD has dropped below all true support numbers including it's 200 day SMA(simple moving average). Support is now basically being determined by real-time buy prices. I have also found what is almost definitely a "double top pattern" while reviewing the EUR/USD charts. Technical Analysts(which I am not) say a double top pattern signifies a reversal in a trend. The pattern I found begins in the ladder part of February 2008 and reached it's second peak in the beginning of July 2008. If this is indeed a double top pattern the end results(according to the tech rule) would put the EUR/USD at the lowest levels of the year by early September. All this and Europe is feeling some tight economic times too. The ECB hesitated to raise interest rates overseas and don't plan to anytime soon(according to Trichet). The dollar isn't the only currency that the Euro is struggling against. The JPY and GBP have been chipping away at the EUR since mid July. The latest developments with oil and gold(price drop) may just be the straws that break the Euros back(they are priced in USD). I see a whole slew of factors that lead me to believe the Euro is highly overvalued and coming down more.
Have a great weekend everybody and Happy Birthday Mom. I will be back sometime before Monday to make sure we're all ready for the week, cause we're all in this together. Thanks for reading.