HPQ and PAL Analysis from my Benzinga Pro Desk

Just got this from the boys on the Benzinga Pro desk and though I'd share it with you:


North American Palladium (NYSE: PAL)

Analyst Sentiment

Analysts are decidedly bearish here, of the most recent 5 ratings, 4 downgraded to Sell, and 1 upgraded.

Taking a closer look. Of those ratings, the most notable firms were RBC Capital, Raymond James, and Stifel Nicolaus, which had Underperform, Market Perform, and Sell ratings respectively.

Essentially analysts are bearish with this one and stepping off the wagon. 

Technical Analysis

Over the last month, North American Palladium continuously fell to a flat $1.00 from $1.40 of over 70 percent depreciation. 

Its 50 day moving average remained stable until early May, and the stock's sharp dip looks to be heading for a bearish cross. 

On its daily chart, the stock’s RSI is showing that its oversold, so that should be taken into account on any action on the stock.

Fundamental Analysis

Comparing it to other precious metal producers and refiners, such as Stillwater Mining Company and Platinum Group Metals Limited, which have EPS 0.48 and -0.04 respectively, North American Palladium looks to be on the lower side with EPS of -0.07, underperforming its competitors.

In the capital asset pricing model, American Palladium has a high Beta coefficient of 2.35, meaning its 135 percent more volatile than the market, making this an incredibly volatile name

News/Coming Events

The company said the estimated production could decrease by about 10 to 15 percent. Moreover, North American Palladium also announced the resignation of its vice president and chief operating officer Greg Struble, effective May 15, 2013. 

Hewlett Packard (NYSE: HPQ)

Analyst Sentiment

Analysts are decidedly Bearish, with 2 Buys, 4 Sells, and 2 Neutral out of the most recent 8 ratings. 

Digging a bit deeper. Of those ratings, the most notable firms were Goldman Sachs, Jefferies, and Morgan Stanley, which had Sell, Underperform, and Overweight ratings respectively.

Essentially analysts are bearish, and most big banks are not willing to take on new stake on it. 

Technical Analysis

The last 3 months Hewlett-Packard experienced a dip in mid-April with a low of $19.59 and increasing ever since. 

Its 20 day average continues to climb. Far below both, the 200 day may soon to be coming back to the picture. 

On its daily chart, the stock’s RSI is nearing overbought territory, which is something to watch for as it nears that bullish cross, and could provide a pullback point.

Fundamental Analysis

Comparing it to other large technology companies like Microsoft, RadiSys, which have EPS of 1.94 and -1.63, Hewlett-Packard stands weak with a low EPS of -6.55.

In the dividend yield department, Hewlett-Packard comes in with a relatively low yield of 2.47 percent, but isnt far off from other technology companies. 

News/Coming Events

The technology giant is struggling today; however, an announcement of its new Android-based tablet, the SlateBook x2, is looking to push to be competitive in the mobile industry. 

The company will release earnings on May 22nd, so that will provide a near-term catalyst


- Kyle

Posted to Learn How to Use Marketfy P… on May 16, 2013 — 5:05 PM
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