chartSo the markets took a minor dive today after a surprise slump in September consumer sentiment. The Conference Board reported that its widely watched consumer confidence index fell to 53.1 in September from 54.5 in August, reversing part of August’s nearly seven-point gain. Economists were looking for a rise to 57, based on higher stock prices, lower gas prices and fewer layoffs. On an upside, the single family home prices in July were higher than expected which initially had the markets jumping.

Now, let me get to something juicy. Comstock Homebuilding Companies (CHCI) is a stock I have been watching and finally got into on Friday for 2500 shares. Slowly, the company have been negotiating the trimming of debt load on their balance sheets and once again, the final hour of trade was significantly higher on volume and price thanks to yet another trimming of $7 million in debt.

So far, the debts in order of latest to oldest have been: $7 million, $5.2 million, and $12.1 million. These might be small amounts for some companies, but at the end of the day, Comstock is getting leaner and more attractive. I was keen on selling towards the close today but will hold the stock longer. Its still a risky play, but one that could pay off for me. Let see this is the next Value Vision (VVTV) type of pick.

Here is the market summary for Tuesday:

News:
Starbucks’ next fix: Instant coffee (SBUX)

CIT’s future in question ahead of lender meeting (CIT)
-this is a dead stock. I did play this a few times when it was on its lifeline earlier this year, but this article and the after-hours trading (down 30%) are nails in the coffin in my opinion. The shorts are going to rejoice on this one.

Micron Loss Narrows After Memory-Chip Prices Rebound (MU)

Cost Cutting Aids Nike As Profit Rises Slightly

Walgreen Profit Tops Estimates as Drug Sales Jump 9% (WAG)
– they will also be selling alcohol at their stores which is going to boost future profits. I will be buying this stock on any retraction opportunities.

Happy Investing!

Aman, MBA

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