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Company name Cubist Pharmaceuticals, Inc.
Stock ticker CBST
Live stock price [stckqut]CBST[/stckqut]
P/E compared to competitors Fair
MANAGEMENT EXECUTION
Employee productivity Good
Sales growth Good
EPS growth Poor
P/E growth Fair
EBIT growth Poor
ANALYSIS
Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $47.11
Target stock price (averages with growth) $48.02
Target stock price (averages with no growth) $20.36
Target stock price (manual assumptions) $47.35

The following company description is from Google Finance: http://www.google.com/finance?q=cbst

Cubist Pharmaceuticals, Inc. (Cubist) is a biopharmaceutical company focused on the research, development and commercialization of pharmaceutical products that address unmet medical needs in the acute care environment. The Company?s products are used primarily in hospitals, but also may be used in acute care settings, including home infusion and hospital outpatient clinics. As of December 31, 2010, Cubist?s derived all of its revenues from CUBICIN (daptomycin for injection), which is a once-daily, bactericidal, intravenous (I.V.) antibiotic with activity against certain Gram-positive organisms, including methicillin-resistant Staphylococcus aureus (S. aureus), (MRSA). As of December 31, 2010, CUBICIN had been used in the treatment of more than an estimated 1.1 million patients in the United States.

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

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The Wall Street Journal had an interesting column on Monday.  The article warned that the technicals of the market imply that a downturn is quite likely.

Investors are desperate for any map to help navigate today’s treacherous stock markets. One that might leave them seasick is relying on technical analysis from charts. First, there is the question of whether stocks are filling out a "head-and-shoulders" pattern, or an "island reversal." If the S&P 500 falls below its June lows, it would complete the head-and-shoulders (a high, a low, a higher high, a low, a lower high). Meanwhile, there are ominous signs of an island reversal. In that case, indexes fall rapidly between sessions, forming a "gap" in the days’ trading ranges, and then quickly "gap" back higher. Should they occur, the two patterns are thought to signal a downturn ahead.

Before these patterns could be completed, the S&P would have to fall under its 200-day moving average, 1277, itself another key chart figure. To complete the head and shoulders, the number is 1265—only 3.1% below Monday’s closing level of 1305.

It is important to understand technical analysis but I honestly do not believe that you can completely rule your investment life by looking at charts. There has to be some understanding of the business of the company that you are choosing for an investment. You need to understand how the company makes money and its historical ability to grow. However, there is momentum in the market and sectors tend to move together so technical analysis does give us insight into the market direction.

It is also important to remember that some companies will still be winners during a market downturn.  Just like there are loser companies during boom times. So while the market may be doing badly, your particular choice for an investment may be doing quite well.

Should you react to this thought process?  Maybe.  You should at least be a bit defensive in your positions.  If you have made a significant gain in a stock, it may be time to take some of that profit off the table. Also, major market moves invariably hit larger cap stocks more heavily, so you may want to be a bit more defensive in your position in large caps. This would surely apply to the DOW 30.

Just as all boats rise and fall with the tide, stocks are influenced by the other companies in their sector and in the market in general. When news of government defaults are constantly in the news, it is simply wise to be extremely cautious with your hard-earned money.

In the next 4-6 weeks, I strongly advise you to watch the technical indicators. I personally watch the 10- and 20-day EMA for my investments. If you think that is too quick, you should at least be watching the 35- or 50-day averages.

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Company name bebe stores, inc.
Stock ticker BEBE
Live stock price [stckqut]BEBE[/stckqut]
P/E compared to competitors Fair
MANAGEMENT EXECUTION
Employee productivity Poor
Sales growth Poor
EPS growth Poor
P/E growth Poor
EBIT growth Poor
ANALYSIS
Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $0.52
Target stock price (averages with growth) $1.5
Target stock price (averages with no growth) $2.28
Target stock price (manual assumptions) $15.36

The following company description is from Google Finance: http://www.google.com/finance?q=bebe

bebe stores, inc. designs, develops and produces a line of contemporary women’s apparel and accessories. The Company?s product offering includes a range of separates, tops, dresses, active wear and accessories in the lifestyle categories, such as career, evening, casual and active. It designs and develops the majority of its merchandise in-house, which is manufactured to the Company?s specifications, or is sourced directly from third-party manufacturers. As of July 3, 2010, the Company marketed its products under the bebe, BEBE SPORT, bbsp, PH8 and 2b bebe brand names through its 297 retail stores, its online store at www.bebe.com, and its 49 international licensee operated stores. As of September 2010, the Company?s store operations were organized into four regions and 32 districts.

Confident Investor comments: I realize that the stock price of this company has done quite well over the past year and that many analysts have a very nice growth target on this company. At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock.

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Company name Atlas Pipeline Partners, L.P.
Stock ticker APL
Live stock price [stckqut]APL[/stckqut]
P/E compared to competitors Good
MANAGEMENT EXECUTION
Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good
ANALYSIS
Confident Investor Rating Good
Target stock price (TWCA growth scenario) $49.92
Target stock price (averages with growth) $33.98
Target stock price (averages with no growth) $13.35
Target stock price (manual assumptions) $50.2

The following company description is from Google Finance: http://www.google.com/finance?q=apl

Atlas Pipeline Partners, L.P. (the Partnership) is a provider of natural gas gathering, processing and treating services in the Anadarko and Permian Basins located in the southwestern and mid-continent regions of the United States and a provider of natural gas gathering services in the Appalachian Basin in the northeastern region of the United States. The Company conducts its business in the midstream segment of the natural gas industry through two segments: Mid-Continent and Appalachia. The Partnership?s operations are conducted through subsidiary entities whose interests are owned by Atlas Pipeline Operating Partnership, L.P. (the Operating Partnership), a wholly owned subsidiary of the Partnership. Its partner, Atlas Pipeline Partners GP, LLC (the General Partner), manages its operations and activities through its ownership of its general partner interest.

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

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Company name South Jersey Industries
Stock ticker SJI
Live stock price [stckqut]SJI[/stckqut]
P/E compared to competitors Fair
MANAGEMENT EXECUTION
Employee productivity Fair
Sales growth Poor
EPS growth Good
P/E growth Poor
EBIT growth Fair
ANALYSIS
Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $50.24
Target stock price (averages with growth) $46.45
Target stock price (averages with no growth) $38.92
Target stock price (manual assumptions) $50.21

The following company description is from Google Finance: http://www.google.com/finance?q=sji

South Jersey Industries, Inc. (SJI) is an energy services holding company that provides energy related products and services through its subsidiaries, South Jersey Gas Company (SJG), South Jersey Resources Group, LLC (SJRG), Marina Energy, LLC (Marina), South Jersey Energy Company (SJE) and South Jersey Energy Service Plus, LLC (SJESP). SJG is a regulated natural gas utility. SJG distributes natural gas in the seven southernmost counties of New Jersey. SJRG markets wholesale natural gas storage, commodity and transportation in the mid-Atlantic and southern states. Marina develops and operates onsite energy-related projects. SJE acquires and markets natural gas and electricity to retail end users and provides total energy management services to commercial and industrial customers. SJESP provides residential and light commercial service and installation of heating, ventilation, and air conditioning (HVAC) systems, plumbing services, and appliance repair and service/maintenance contracts.

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock.