Stock Pick: Embarq

Embarq showed strong Q1 result

The company announced its quarterly result for the first quarter of 2008, including record earnings and cash flow. The company reported total revenues of $1.57 billion, operating income of $434 million, diluted earnings per share of $1.38 and cash flow before dividends of $286 million.

The company paid a dividend of $0.6875 per share in the first quarter, and repurchased approximately 3.35 million common shares at a cost of $135 million. Through April 25, 2008, the company purchased an additional 2.62 million shares at a cost of $104 million.

The company ended the quarter with net debt of $5.6 billion, a sequential reduction of $187 million.

The company reported a decline of 120,000 access lines in the first quarter, ending with 6.19 million access lines. During the quarter, the company added 63,000 high-speed Internet subscribers, bringing the total to 1.34 million. Video net additions totaled 17,000 during the quarter, resulting in the company ending the quarter with 217,000 of its customers subscribing to video services.

About Embarq Corporation

Embarq Corporation (NYSE: EQ), headquartered in Overland Park, Kansas, offers a complete suite of common sense communications services. The company has approximately 19,000 employees and operates in 18 states. EMBARQ is included in the S&P 500.

For consumers, EMBARQ offers an innovative portfolio of services that includes reliable local and long distance home phone service, high-speed Internet, wireless, and satellite TV from DISH Network® - all on one monthly bill.

For businesses, EMBARQ has a comprehensive range of flexible and integrated services designed to help businesses of all sizes be more productive and communicate with their customers. This service portfolio includes local voice and data services, long distance, Business Class High-Speed Internet, wireless, enhanced data network services, voice and data communication equipment and managed network services. EMBARQ believes that by focusing on the communities the company serves and by employing common sense and practical ingenuity, it is able to provide customers with a committed partner, dedicated customer service and innovative products for work and home.

Technical Analysis

Technically, the stock shows strong support at $39, but at the same time has strong resistant at $42. Once the stock crosses $42 successfully with high volume, the stock can easily touch $48 with long term target of $65+.

Short Term Target: $48
Medium Term Target: $58
Long Term Target: $65+

Disclaimer: The views, investment and stock trading tips expressed on this online stock trading blog are solely from the blog owner. The blog owner advises users to check with certified experts before taking any stock trading or stock investing decision.

Stock pick - Universal Health Services Inc

Universal Health Services Inc (UHS) posted a descent quarterly result on Thursday 28 Feb, 2008. The USH Inc Posted 17% increase in 4th quarter profit on back of higher revenue from its acute care and behavioral health facilities.

Universal health earned $40 million, or 75% per share, compared with $34.2 million, or 63 cents per share, for the same quarter in 2006.

Revenue for the quarter rose 12% to $1.19 billion as expected with Wall Street estimates of $1.20 billion.

Universal forecast 2008 earnings from continuing operations of $3.37 to $3.42 per share on revenue of $5.13 billion. Wall Street analysts' are estimating earnings of $3.37 per share.

The main revenue source from acute care hospitals rose 7.6 %, while revenue at behavioral health facilities rose 9.5 %.

With ongoing bloodbath on Wall Street, it becomes evident to stay in more profitable and defensive stock which will help you to keep your stock investment safe. According to me USH stock comes in that defensive stock category. This stock has unique presence in healthcare sector. The healthcare sector is said to be more defensive and less impacted with any financial crisis.

Looking at technical chart of this stock, it looks like the stock has strong resistant at $54. According to me the stock should cross $54 irrespective of what is happening in overall stock market. Still I would remain cautions and will avoid doing any stock trading in this stock until the stock crosses $54 with high volume. Once the $54 is taken out successfully with high volume and stock remains above $54 for couple of days then I would like to take long position with price target of $62 and then $67.

Median target: $62
High target: $67

Disclaimer: The views, investment and stock trading tips expressed on this online stock trading blog are solely from the blog owner. The blog owner advises users to check with certified experts before taking any stock trading or stock investing decisions.

Online stock trading tips

Here are some of the online stock trading tips that online stock trader can use in their stock trading strategy. There are certain parameters that need to be taken into account by the stock trader while doing stock trading. These parameters help significantly for stock trader to make a successful stock trade.

Momentum – Stock momentum illustrates you the velocity at which stock prices move happens over a certain period of time. High momentum stocks are highly preferable for trading stock on short term basis.

Volume – Volume is another parameter where one can easily make out to select stock for trading. Significant increase in volume against average volume in stock over the last 7 days can give you clear picture that there is more number of stock traders as well as stock investor’s interest in this stock and with the knowing of direction one can easily buy or can short that stock.

Direction – Direction is one of the most important things for trading stock. Stock volume, trend and direction moves hand in hand. Increase in volume and change in direction tells you to buy or to sell the stock.

Trends – Trend illustrates the pushiness of prices to move in a particular direction over a certain period of time.

Stock strength – Stock strength tells you the intensity of interest in a stock. High volumes specify more participants and therefore more strength.

Volatility – Volatility describes the degree of day-to-day stock price fluctuations. More volatility arise nervousness to stock investors but there is some community in stock trader who likes to do stock trading in highly volatile stock. Volatility increases the risk but also gives high returns.

Support and Resistance – Support and Resistance represent the occurrence of stock prices repeatedly rising and falling between certain prices levels. When stock prices breakout support or resistance levels, they tend to create new support and resistance levels.

Stock chart patterns – Chart patterns provides you hits of identifiable shapes on a stock chart. Certain stock chart patterns preempt changes in stock direction and price.

Cycles – Many a time some stock sectors show a propensity to move in cycle patterns. For example after a good participation in technology sector, the stock investor turns their attention towards any other stock sector say energy sector and after the momentum in finished in energy section their tends to move their attention in steel sectors and so on and this gives an opportunity for stock investors as well as stock investor to monitor closely the sectors which are presently performing well and tries to do stock trading or stock investing in such sectors as these sectors are in momentum chances of making money is good enough that sectors which are not showing any strength or momentum.

The above following online stock trading tips can be highly useful for online stock traders as well as stock investor to make vice decision to conduct any stock trading or stock investing.

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