Weekly FIS Stock Analysis Report - Oct. 14, 2007

This is the stock analysis report for Fidelity National Information Services (Symbol: FIS) for week 10/08-10/12.

News of the week

• Overall Market: The market was still bullish with Nasdaq led the way. The S&P 500 index was stable throughout the week and only gained 0.27%, even though it followed Nasdaq sell-off (down 0.52%) on Thursday which some explained as profit-taken due to recently the new highs.
• Financial Service Industry: The industry itself was quiet this week, but US home foreclosure filings doubled in September 2007 from a year ago and the nation’s biggest mortgage lender CountryWide Financial said late payments rose, suggesting the US mortgage crisis is not abating. Jump in foreclosures was in part due to subprime borrowers being unable to make payments after their initially low interest rates reset to higher levels.
• FIS company: FIS will announce 3rd quarter 2007 financial results after the close of regular market trading on Wednesday, October 24, 2007; FIS rolled out Valuation Solutions' HQ Certified Valuation, an end-to-end appraisal solution to satisfy the valuation needs of loan originators, servicers and capital markets firms.

Market movement

• S&P500 was swinging between 1540 and 1580 this week, and closed at 1561.8, well above major support 1540.

FIS and Financial Service Industry

• FIS movement did not follow the pace as the industry, but it did start to catch up this week. (chart source: http://www.marketwatch.com/)

FIS Movement

• This is the 2nd week that FIS recovered with good volume after hitting the major support $43.5 two weeks ago. Overall FIS gained 3.62% this week, which showed a positive sign of recovery. FIS tried to break major resistance $48 Thursday and Friday, even though it did not successfully close above $48, it was not too bad to close at $47.86 considering the big market sell-off on Thursday.
• Interesting enough to point out: on Wednesday, above normal trading volume around price $47 suggested institutional interest of FIS at $47.

What to Watch Next Week

• Market: The market is still bullish, watch the market to play major support 1540 and potential new high, but the earning season will make the market voitile.
• FIS: FIS is going uptrend now. If next week FIS can break major resistance $48 with good volume, then the next target area is around $50-$51. If FIS does not break $48, but still hold above $47, then it is still worth holding.
• Please note: next week the earning reports from several big banks such as Citigroup, Bank of America, and JP Morgan may have substantial impact on FIS stock.
  

Disclaimer: This report is my personal opinions and thus does not constitute a recommendation. In no event I will be liable to you for any direct, special, indirect, consequential, incidental damages or any other damages of any kind.