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The end of an upside-down week on Wall Street

Today's Financial News - Posted December 11, 2009

The end of an upside-down week on Wall StreetWhen rap superstars are ringing the opening bell, you know something is up on Wall Street. This week has been anything but ordinary. As we get closer to the end of the year, the hair-raising action will continue.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): We’ve come to the end of a pivotal five days of trading. As soon as Snoop Dogg rang the opening bell on the NYSE on Monday morning, it was obvious this was going to be no ordinary week.

The action didn’t let us down.

All week, it’s been about the dollar. After last Friday’s surprising strong unemployment figures, the value of a buck has climbed steadily. It’s not necessarily because the American economy is looking any stronger or that interest rates will rise anytime soon, but compared to our international brethren, the good old US of A, isn’t looking so bad.

First we had Dubai making credit waves. Then it was Greece. And most recently it’s Spain. As the contagion spreads, the dollar is likely to climb. It’s ready to break the $1.45 barrier against the euro today.

That’s good news for plenty of shareholders.

Even better for Uncle Sam

While the Chinese yuan is anything but free-floating against the dollar, a stronger American currency will certainly have an impact on any country exporting goods to the States.

That’s just part of the reason why shares of AutoChina International (NASDAQ:AUTC) are up by over 15% today. The other major catalyst is the company’s latest fiscal results.

The Chinese auto retailer is a relatively young company with a market value of $270 million and some 25 dealerships spread across the country. In case you’re not familiar with the Asian market, it’s red hot right now.

The quarterly figures prove it. Over the last three months, the company recorded revenues of $242 million, a whopping 110% increase over this time last year. It turned the sales into a bottom line of $7 million, yet another triple-digit increase over last year’s figures.

If you are frequent reader of TFN articles, AutoChina’s action is not new. We’ve been tracking and writing about this stock for months, as it share price quickly climbed from just $7 to over $30 and back to $24 today.

From here, you can expect shares to top out near the $30 range once again in coming months if current macroeconomic trends (including the strengthening dollar) continue.

As for next week, don’t even think about taking your eye off the dollar.


Next Article: TFN eNews 12/11/2009: Top Precious Metal Stocks

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Posted by Andrew Snyder · Filed Under Featuring..., International Investing 

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