Early Financial Fireworks Hit the Markets; Will the U.S. Emerge the Leader in the Second Half of Year?

Glimpses of Great American Entrepreneurial Growth

Recession leader Chipotle (CMG) is still proving the burrito craze is here to stay for the new decade with affordable, healthy quick food. Chipotle could be the McDonald's (MCD) of this new decade.

If you are looking for other steady growers, then you should look at Best Buy's (BBY) dark horse competitor Systemax (SYX). Electronics retailer Systemax has delivered record sales growth over the past year.

These are just two examples of companies setting the stage for growth. Here are some other reasons I see positive signs on the horizon:

M&A is Heating Up Again while IPOs Climb

This week, the National Venture Capital Association (NVCA) reported some very compelling data illustrating early signs of a gradual recovery process for the U.S. economy. On the M&A front, 92 mergers and acquisitions occurred in the quarter, up 42% over last year. Dow Jones reported 79 mergers and acquisitions valued at $4.3 billion, vs. 82 deals and $2.9 billion a year ago. The largest M&A deal in the U.S. in the second quarter was Google's (GOOG) acquisition of AdMob for $750 million.

According to other reports released this week, the most IPOs were filed in two and a half years in the second quarter of this year. The National Venture Capital Association said the 2nd quarter experienced 17 venture-backed IPOs valued at $1.3 billion. The most largest and most notable IPO of the year came this week from Tesla Motors (TSLA), a California maker of electric cars, valued at around $200 million dollars.

June Stock Buybacks are Good for Future Stock Prices

Stock buybacks decrease the number of shares outstanding and increase the value of each remaining share. Here are some companies returning value to shareholders:

On June 11th, Netflix (NFLX) authorized a $300 million stock-buyback program. On June 14th, CVS Caremark (CVS) announced a new $2 Billion share repurchase plan. On June 16th, AutoZone (AZO) raised its buyback plan to $500 million. On June 17th, Northrop Grumman (NOC) announced a $2 Billion share repurchase plan. On June 18th, Genzyme (GENZ) declared a $1 Billion accelerated stock buyback. On June 21st, Dollar Tree (DLTR) announced a $500 Million stock buyback. On June 22nd, Adobe Systems (ADBE) topped earnings and announced a $1.6 Billion stock buyback. On June 24th, Kroger (KR) announced a $500 Million stock buyback.

Lastly, on June 30th, the biggest of them all, internet bellwether Yahoo! (YHOO) authorized a $3 billion stock-buyback program over the next three years.

Keep your eye out for more stock buybacks, because it proves executives are not hoarding cash in fear of a Great Depression.

Happy 4th to the Entrepreneurial Spirit

Here's a toast to independence, freedom, and the opportunistic pursuit of the American Dream. Think about what you can do to help the U.S. heal faster and recover more quickly as you watch the fireworks on this 2010 4th of July weekend. Positivity yields progression, negativity yields regression. Let your second half 2010 ambitions marinate under the fireworks...

The Wall St. Cheat Sheet Premium Newsletter has delivered 15 out of 16 winning picks since inception in November 2008. Let the Hoffman Brothers give you their best investing and trading ideas.