What's in Store for Next Week?

Next week is a holiday abbreviated session in the Wall Street. Market is closed on Monday February 19, 2007 and will open on February 20, 2007.

Recap from last week's economic numbers and events:
1. PPI eased 0.6% in January and the Core Index rose 0.2%, both matching forecasts. The Core rate advanced 1.8% matching Federal Reserve's range of 1% to 2%.
2. Ben Bernake's comments rejuvenated a sideways consolidating market. The market's direction is still to the upside.
3. Rate hike is unlikely per Ben Bernake, and possible rate cuts might be in store by 25 basis points.

Economic numbers for next week:

Date Time
Feb 21 8:30 AM Core CPI Jan - NA NA 0.2%
Feb 21 8:30 AM CPI Jan - 0.2% 0.1% 0.4%
Feb 21 8:30 AM Core CPI Jan - 0.2% 0.2% 0.1%
Feb 21 10:00 AM Leading Indicators Jan 0.3% 0.2% 0.3%
Feb 21 10:30 AM Crude Inventories 02/1 -589K
Feb 21 2:00 PM FOMC Minutes Jan 31
Feb 22 8:30 AM Initial Claims 02/17 325K
Feb 22 10:00 AM Help-Wanted Index Jan 34 33

Be sure to keep an eye on CPI, if there is a spike we can expect the market to over-react and sell off will ensue. This should be a short lived event and should be seen as a buying opportunity.

Stocks to watch:
1. Baidu- we will see if the company can regain their footing after a sell off after earnings failed meet revenue estimates and the company gave poor forward guidance. It is anticipated that the company will test the 200 DMA and that will be a strong tell if the company continues downard momentum or institutions step up their buying. Irreverant Stock List projection is that the company will test the 200 DMA next week which is near $93.

2. Ruth's Chris Steak House- reports earning on Wednesday 2/21/2007 5:00PM EST. It is widely anticipated that the company will give raised forward guidance and beat consensus estimates. They preannounced projections in January. Consensus analyst estimates are .36 with revenue estimate of 83.80M. On January 4, Ruth also reported surge in sales over 44%. Irreverant Stock List is looking for EPS of .39 and revenue of $88 million.

3. Cisco Systems- We are anticipating resumption of uptrend after the stock was "pinned" at $27.50. Irreverant Stock List i looking for $29 by end of March. The company increased EPS yoy by 40% and deserves a higher multiple in line with Juniper as their growth has been rejuvenated based on increased product cycle. Irreverant Stock List price target is $35 by July 2007.

4. Caterpillar- Strong uptrend initiated 2 weeks ago. Now, 50DMA and is crossing up over 200 DMA, a bullish signal. The volume has been increasing on the buy side. With interest rate hike unlikely, CAT should have no problems regaining $75 by May. Irreverant Stock List encourages accumulation of these shares. Especially, May $70 looks appealing below $2.07 per contract.

5. EMC- Ready to break out $14.60 closing price. Accumulation is in progress. Irreverant Stock List encourages accumulation of July $15 contracts below $1.05. Upside price projection is $18 by July 2007.

6. Carter's- This children's clothing and apparel retailer announced that they will lower revenue guidance for the entire 2007 due to weakness in the retail segment. While their direct distribution business is robust and because of it they were able to beat EPS estimates. However, the weak guidance has brought the shares down from $24 to $22 level in one week. Irreverant stock list still considers this a strong value play and recommends long term holding. Shares look ripe for accumulation here. Options play are not recommended for this stock. Please stick with commons if initiating position. Irreverant stock list anticipates turn around in retail latter 1/2 of the year. The head aches associated with integrating Osh Kosh Be Gosh retailer is weighing down on the retailer. Accumulate under $23.00.

Good Luck!