Submitted By Optiondragon
From Briefing.com
Periodicals Wrap-Up for Thursday, July 24th
WALL STREET JOURNAL: The Wall Street Journal’s “Smartmoney Stock Screen” looks at eight companies whose valuations make them ripe to buy, and they also may be in the sites of corporate buyers. The big eight include Asbury Automobile (ABG), Crane (CR), Scholastic (SCHL) and Scotts Miracle-Gro (SMG)…The Wall Street Journal’s Walter Mossberg said in the “Personal Technology” column he cannot recommend Apple’s MobileMe, as it has “too many flaws to keep its promises”…The Wall Street Journal also speculated that the collapse this week of SemGroup LP, which is the parent of SemGroup Energy Partners (SGLP), may have played a role in the 14% drop in crude oil over the past 10 days…FINANCIAL TIMES: In a move that could take advantage of the gap in the financing markets, Goldman Sachs (GS) raised $10B to invest in loans backing leveraged buyouts. The fund will reportedly buy senior loans, the Financial Times reported…NEW YORK POST: Former American International Group (AIG) CEO Hank Greenberg is reportedly in settlement talks with New York Attorney General Andrew Cuomo over charges that Greenberg improperly inflated corporate books to show improved profits, the New York Post said…
Goldman to launch new fund for financing buyouts-FT
Goldman Sachs (GS) has created a $10B fund which will buy loans that finance leveraged buyouts. The investment bank is trying to exploit a void in the financing markets caused by the credit crisis. The new fund will enable Goldman to finance deals on its own.
Trading revenue concerns affect CME Group and IntercontinentalExchange-WSJ
The effects of the credit crisis have come to the Chicago Mercantile Exchange’s CME Group (ICE) and the IntercontinentalExchange (NMX), as investors are concerned that the exchanges’ trading revenue will be hurt because of fewer market bets by banks and hedge funds, according to the Wall Street Journal’s “Heard on the Street”. This despite record high trading in commodities. Regulatory concerns are also playing a role.
AMZN: Recommend selling the relief rally, reiterate Sell@AMTR
AmTech recommends selling the relief rally in AMZN shares as they expect weaker consumer spending in 2H08 and see significantly higher risk to top and or bottom-line shortfalls. Target reduced to $60 from $65.
AMZN: Company’s profitability level does not justify valuation@GABE
After Amazon reported that its Q2 revenue jumped 41%, Gabelli still finds the company’s valuation unattractive, and they maintained their Hold rating.
Diamond Offshore-DO upgraded to Buy from Add@LYON
Calyon upgraded DO following the strong Q2 report. Target $156.
Baidu.com-BIDU: Target to $440 from $420 on strong top-line growth@SUSQ
Shares are Positive rated.
U.S. equity futures continue to point to a lower open
Oil prices have edged up this morning after shedding nearly $4 a barrel yesterday because of concerns that high fuel prices are dampening demand for the world’s biggest energy consumer. A weekly report from the U.S. Energy Department’s Energy Information Administration showed that gasoline demand over the four weeks ended July 18 was 2.4% lower than a year ago, offering further evidence that Americans are cutting back on fuel consumption. Oil currently is up 67 cents to $125.11.
Baidu.com-BIDU: View Q3 guidance as conservative@PACS
Pacific Crest believes BIDU’s growth in Q2 was balanced and sustainable and would be buyers of the stock in anticipation of Q3 upside given the conservative guidance. The firm maintains an Outperform rating on the stock.
Russia will supply to Iran advanced anti-aircraft systems-Reuters
Reuters reports that Iran will receive S-300 missile batteries, an advanced Russian-made anti-aircraft system, by the end of 2008. Senior Israeli defense sources say the system could help fend off strikes against its nuclear facilities. One source believes the first delivery may occur as early as September, though it may take up to 12 months for the missile batteries to be deployed an operable.
CFTC to announce enforcement case related to national crude oil probe later Thur
Reuters is reporting that the CFTC will announce enforcement action related to national crude oil probe later on Thursday.
Qualcomm-QCOM: Continue to recommend shares despite strength@FBCO
Credit Suisse said QCOM is very under-owned and believes the stock is going to the $70’s. Shares are Outperform rated.
Qualcomm-QCOM: Settlement with NOK a huge win@COWN
Cowen said QCOM’s settlement with NOK is a huge win and removes a major barrier to shares moving higher. The firm said the deal is worth approximately 8c a quarter to QCOM. Shares are Outperform rated.
Chipotle Mexican Grill-CMG: Shares defended, story playing out@COWN
Cowen said the near-term short story in CMG is well played out and that today’s reduced eps is more than reflected in shares. Cowen rates shares Outperform.
Potash-POT downgraded to Sector Perform from Outperform@Scotia
Agrium-AGU downgraded to Sector Perform from Outperform@Scotia
Chipotle Mexican Grill-CMG.b downgraded to Neutral from Overweight@JPMS
JP Morgan downgraded CMG Class B shares to Neutral following the Q2 miss. CMG Class A shares remain Neutral rated.
Celgene-CELG reports Q2 EPS 37c vs. consensus of 35c
Reports Q2 revenue $571.5M vs. consensus $538.93M.
U.S. equity futures point to a lower open
U.S. stock futures are moderately weaker this morning ahead of more data on the troubled housing market and another wave of earnings. Amazon.com (AMZN) is expected to be one bright spot. Today, weekly jobless claims numbers are on the docket for the week of July 19, and will be released at 8:30 am. The survey calls for 380,000, up from the prior 366,000. At 10:00 am existing-home sales are expected to show that they fell slightly further in June, and are approaching a record low. That will signal tumbling real estate values and dampened consumer confidence. The survey estimates that resales fell 1% to a 4.94M annual rate in June. This morning, the S&P 500 futures fell 5.90 points to 1,276.50 and Dow industrial futures fell 47 points to 11,566. The Nasdaq 100 futures edged up 0.2 of a point to 1,849.2 after the Amazon.com report. Investors are also digesting yesterday’s House of Representative’s approval of legislation that seeks to slow the steep slide in house prices, rescue hundreds of thousands of homeowners at risk of foreclosure, and reassure global markets that mortgage finance giants Fannie Mae (FNM) and Freddie Mac (FRE) will not be allowed to fail.
Memc Electronic Mat-WFR: View shares near $40 as ‘extremely undervalued’@SOLE
Soleil believes investors are overreacting to the disappointing last couple of quarters and the firm expects better results heading into 2009. They maintain a Buy rating and $103 target.
Agnico-Eagle-AEM upgraded to Buy from Neutral@UBSW
UBS upgraded AEM based on valuation. Target to $77 from $82.
Qualcomm-QCOM: Would be buyers after Nokia settlement@OPCO
After Nokia (NOK) and Qualcomm settled their legal dispute and signed a licensing agreement for 3G and 4g technologies, Oppenheimer believes Qualcomm will significantly beat consensus estimates for its 2009 and they think its multiple will expand.
Diamond Offshore-DO declares special dividend of $1.25 per share
Diamond Offshore Drilling, Inc. announced that its Board of Directors has declared a special cash dividend of $1.25 per share of common stock and a regular quarterly cash dividend of $0.125 per share of common stock. Both dividends are payable on September 1, 2008 to shareholders of record on August 1, 2008.
Allstate-ALL: Still concerned about write-downs@WCHV
After Allstate reported lower than expected Q2 EPS, Wachovia is still worried that the company will take additional write-downs, since it has one of the largest amount of subprime holdings among property and casualty insurers they cover. The firm maintained their Market Perform rating.
Qualcomm-QCOM added to Top Picks Live list, maintain Buy@SBSH
Citigroup added QCOM and removed Texas Instruments (TXN) following QCOM’s settlement with Nokia. Citigroup believes the settlement could add 26c to QCOM’s 2009 EPS and has a $61 target on the stock.
Bunge Limited-BG reports Q2 EPS $5.45 vs. consensus of $2.27
Reports Q2 revenue $14.36B vs. consensus of $13.25B.
Bunge Limited-BG raises FY08 EPS view to $11.60-$11.90 from $9.35-$9.65
Consensus is for EPS of $9.16.
Strayer Education-STRA reports Q2 EPS $1.50 vs. consensus of $1.47
Reports Q2 revenue $97.9M vs. consensus of $96.91M.
Auxilium Pharmaceuticals-AUXL downgraded to Hold from Buy@SBSH
Citigroup downgraded shares after their analysis indicated a smaller patient pool for Xiaflex than management expectations. The firm lowered their target to $37 from $43.
Potash-POT reports Q2 EPS $2.82 vs. consensus of $2.61
Reports Q2 revenue $2.62B vs. consensus of $2.55B.
Potash-POT raises FY08 EPS view to $12-$13 from $9.50-$10.50
Consensus is for EPS of $11.67.
EnCana-ECA reports Q2 EPS $1.63 vs. consensus of $1.84
Reports Q2 revenue $7.32B vs. consensus of $5.95B.
First Solar-FSLR to build 10 MW solar PV plants for Sempra Generation
First Solar announced that it will build a 10 megawatt photovoltaic power plant for Sempra Generation near Boulder City, Nevada. First Solar will design, engineer and construct the turnkey PV power plant and will provide monitoring and maintenance services for the plant over its lifetime. Sempra Generation will be the developer for the project, and will own and operate the PV power plant once completed. Construction began in July, and the 10 MW PV power plant is expected to be completed by the end of 2008. The solar modules to be deployed in this ground-mount project will be produced at First Solar’s manufacturing facility in Perrysburg, Ohio.
Jim Cramer’s “Mad Money”
Cramer says, there is an incredible opportunity here for investors to buy General Electric (GE) now, after it has been taken down with financial stocks and hasn’t rallied back, he says. Cramer cited an article is this weekend’s BusinessWeek, which called into focus GE’s exposure to the financial sector. GE, with many other businesses, actually made money this quarter, beating Wall Street’s expectations, he said. Furthermore, Cramer noted that the company has plans to sell of its under-performing consumer and industrial segment. The remaining segments, such as its infrastructure division, should all perform well in the coming year. Other infrastructure companies like Fluor (FLR), Jacobs Engineering (JEC) and ABB (ABB), are all up substantially, while GE is down 28% over the same period. Cramer said he also likes GE’s international exposure, the company’s 4.5% dividend yield, its wind power business and sees its healthcare segments as an additional driver of growth. And perhaps GE’s strongest case, said Cramer, is its recent plans to partner with Abu Dhabi’s Mubadala sovereign wealth fund. Cramer said Panera Bread (PNRA), which fell more than $2 on Wednesday after reporting better than expected earnings, has the ability to be the “next big thing.” Panera is increasing service, cutting labor costs, has expanded margins and is offering a healthy menu. He talked with Panera’s co-founder, chairman and CEO, Ron Shaich. Shaich said he doesn’t extrapolate anything from weakness in the last three weeks of the quarter. Shaich said the company sees a lot of growth to come as it carries out its strategy of becoming an alternative to traditional restaurants. MAD MAIL: Cramer told a viewer that while he now believes the merger between Sirius Satellite (SIRI) and XM Satellite (XMSR) will get done, with the additional financing needed, he’s not a fan of the common stock. He recommended Sirius as a speculative stock only. Cramer is a buyer of XTO Energy (XTO) given its recent retreat. LIGHTNING ROUND: (Bullish) SMS; RIMM; GOOG; AMZN; ENS; CI; SBAC. (Bearish) TIVO; EBAY; CRME; FCEL; F; MSFT; NHWK.
Fast money position recap- Macke Owns (WMT), (COST), (MSFT), (EMC); Najarian Owns (AAPL), (COST), (TSO); Najarian Owns (YHOO) Calls, (CSCO) Calls, (SKF) Calls; Finerman Owns (GS); Finerman’s Firm Owns (MSFT), (PPH), (SUN), (TSO), (VLO); Finerman’s Firm And Finerman Own (C) And (C) Leaps; Finerman’s Firm Is Short (IYR), (IJR), (MDY), (SPY); Terranova Owns (BNI), (CME), (RIMM), (VLO), (SA), (FCX), (GOOG), (INTC), (IYT), (XLF), (SU), (YHOO); Terranova Is Long September Crude Oil $154 Call; Terranova Is Short September Crude Oil $130 Put; Terranova Is Short September Crude Oil $130 Call
Watching the earnings movers this morning BG, QCOM, TUP, AMZN, ESI, BIDU. Again going to let the market range in the morning and keeping my eye on oil prices. FSLR power plant contract should give it a good boost.
Market slightly overbought in the short term but is showing good strength by moving higher and consolidating at higher levels rather than giving it all up quickly, this rally is led by the financials and i will be focusing on that area closely. Pick plays with a high probability of success, have focus and patience, plan the trade and trade the plan, run technicals through support and resistance! Great Luck and HappyTrading!
Down below is our 2 CNBC portfolios and how they finished the contest. We were as high as #143 during the contest and constantly had both portfolios in the top 1000. We went all in on the airliners last week with $2 million and we undoubtedly would be #1 and the grand champion if the contest ran for only one week more because we would have made an extra million on the airliners putting our portfolio over $3 million not bad for 10 weeks!!! 
Missed it by a hair! Literally by 2 days! OOOHHH! As Vince Lombardi once said, “We didn’t lose, we just ran out of time.” We will probably end up in the top 100 and that is still something to be proud of out of several hundred thousand portfolios! Til next time CNBC!
Did you like this article?
Submitted By 
's
