According to Reuters, Bank of America (BAC) will pay the president of Countrywide (CFC) $28 million to stay and run the company after the buy-out is complete.
Reuters reports that JP Morgan (JPM) is trying to integrate Bear Stearns operations as they begin to fall apart.
The Wall Street Journal writes that ad-click data for Google (GOOG) was disappointing for the second time in two months.
The Wall Street Journal writes that tech firms holding auction-rate securities are beginning to post write-offs due to their falling value.
The Wall Street Journal writes that AT&T (T) plans to launch a mobil TV service for its handset subscribers.
The Wall Street Journal writes that the number of cellphones with GPS is rising rapidly.
The Wall Street Journal writes that recent numbers suggest that China may have passed the US in total number of internet users.
The New York Times writes that a China anti-monopoly law could hurt Microsoft’s (MSFT) bid for Yahoo! (YHOO).
The FT writes that M&A activity is at a four-year low.
The FT writes that rice prices are up 30% to an all-time high.
Bloomberg writes that Fannie Mae (FNM) and Freddie Mac (FRE) may have to raise $20 billion in new capital.
RIMM: Raised estimates & target to $150 from $140@RBCM RBC Capital expects RIMM to report an in line Q4 and guidance to be materially above consensus due to strong momentum. The firm’s checks indicate strong Q1 momentum and they believe the company will guide EPS to 81c-86c and revenues to $2.1B-$2.2B vs. Street estimates of 74c/$1.98B.
RIMM estimates raised after strong channel checks@PIPR
Piper raised their FY09 estimate to $3.59 from $3.40 after March channel checks showed continued strong sell-through trends for BlackBerry at the four largest U.S. carriers. Shares remain Neutral rated.
RIMM: Positive comments following channel checks@CRTC CRT Capital thinks RIMM is well positioned to gain share in both the smart phone and the broader handset market and expects solid February quarter results. However, they think weak guidance could pressure shares and would use any sell-off as a buying opportunity.
RIMM: Checks indicate solid demand, estimates raised@LEHM
Lehman raised RIMM estimates citing strong prosumer expectations and steady enterprise demand. The firm’s checks indicate strong carrier net add momentum and they see a unit resurgence in Q1.
JASO initiated with a Buy@LAZA LEH: Popping on Upgrade
Citigroup upgraded shares of Lehman Brothers (LEH) to Buy from Hold and maintained their $65 price target on the shares (a +60% premium to current pre-market price).
Immediate future for student loans is unclear-WSJ
At this time of year, students are accepted at colleges and are directed to lenders for loans. But with the credit crisis, many institutions have pulled back from making those loans, and the U.S. Department of Education is being looked to for direction. So far, reports the Wall Street Journal, it hasn’t provided any.
KBH reports Q1 EPS ($3.47) vs. consensus of ($1.17)
Reports Q1 revenue $794M vs. consensus of $805.72M.
MON- Smith Barney say’s “Price target to $145- We have raised our EPS targets due to stronger margins and growth in Ag productivity, as well as Seeds & Genomics.” MON target raised to $145 from $140, maintain Buy@SBSH
Citigroup raised their estimates and target after being surprised by the magnitude of the company’s guidance increase.
Solar: Reiterate Buy ratings on FSLR & SPWR due to utility exposure@LYON
Calyon said U.S. utilities are turning to solar, which is a large opportunity. The firm expects upcoming solar conferences to be a catalyst for the group. Solars could see some further volatility.
FSLR initiated with a Buy, target $325@ADAM
Canaccord Adams believes FSLR’s management and business model are among the best of any PV company. and that execution has led to strong profitability plus a successful aggressive capacity ramp
MOS- MOS announces contracts with Indian customers
The Mosaic Company announced that Canpotex Limited, the export association of Saskatchewan potash producers, has reached an agreement to supply 1.3 million metric tonnes of potash to its key Indian customers at $625 per metric tonne CFR. This represents a volume increase of 350,000 metric tonnes and a price increase of $355 per metric tonne from the prior year contract. Shipments will occur during the period between May 2008 and March 2009. The contract includes credit terms of 180 days.
This is great for MOS and was probably behind the strength yesterday.
APOL target lowered to $57 from $92, maintain Buy@PIPR
Piper lowered their estimates following the company’s Q2 miss.
AOL missed earnings and lowered guidance. Stock is gapping down and will probably flatline here.
AAPL: Checks show 3G phones likely launched in Q2@BOFA
Banc of America’s channel checks indicate a significant production build of a 3G iPhone beginning in the month of June, after an initial small build in May. They believe this implies a Q2 launch and that their 2008 iPhone estimate of 8M is conservative. Shares remain Buy rated. :theflyonthewall.com
Very good news for AAPL if they launch the 3G phone sooner rather than later.
This could also give them a head start on year targets for iPhone sales.
No escaping it: New phone service finds you wherever you are-WSJ
Thanks to Global Positioning Systems, colored marks on a map viewable on cellphone screens will soon be here, and whoever wants to find you will be able to, reports the Wall Street Journal. Sprint Nextel has it, and Verizon Wireless is not far behind. Others will follow. The service is called Loopt, and the software was created by Sam Altman, a 22 year old, while he was a student at Stanford. One obvious concern is misuse, and restrictions will be applied such as users can make their whereabouts available only to others who also buy the service. What’s next? Whrrl, a service from Pelago will soon log the places cellphone users visit, and be specific enough to name the place where you are.
X upgraded to Buy from Neutral@MLCO. Merrill upgraded US Steel citing higher steel prices. Target $150.
GRMN initiated with a Sell, target $46@STFG
Stanford believes the company’s products are becoming commoditized as a result of competition from mobile handsets and wireless operators. The firm thinks Garmin’s risks outweigh its potential appreciation.
Could be a good short candidate.
Tessera (TSRA), trading up +44.1% after the International Trade Commission overturned a stay order in the company’s legal battle with Motorola, Qualcomm and Freescale. Look for further strength or stabilization.
Amazon tells book on demand publishers to use their printing plants-WSJ
“It’s a strategic decision,” says a spokeswoman for Amazon.com (AMZN). ” What we’re looking to do is have a print-on-demand business that better serves our customers and authors. When we work with some other publishers, it’s not truly a print-on-demand business” Amazon says its not an ultimatum to ask on demand book publishers to sue their printing facilities, according to the Wall Street Journal. They want to take advantage of its position as an online bookseller to grow in other areas of the selling and manufacturing books. Its market share is estimated at about 15%, and this move is expected to increase profits.
Mad Money recap- Cramer advised swapping out of LIZ into URBN. MAD MAIL: AK Steel (AKS) he likes it, but it is not as cheap as Cramer’s earlier recommendation of US Steel (X). LIGHTNING ROUND: (Bullish) EXC; DUK; CAG. (Bearish) CROX; CFC; CPN; ACAD; ZOLT; IACI; AYR; PNM.
I’ll be watching to see if the market can hold some ground here. Keeping an eye on the 4 Horsemen and the financials (MER, C, WM, UBS in particular), lately as the brokers go the market goes. More of the same today and with the LEH upgrade that could help support the market. RIMM and MOS earnings next week. Keep nimble and look for great setups. Good luck and great trading. Have a wonderful start to your weekend.
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