Reuters writes that Microsoft (MSFT) has given Yahoo! (YHOO) a dealine for buy-out talks.
Reuters writes that Yahoo! will inform Microsoft that it is not against a buy-out but would expect a higher price.
The Wall Street Journal reports that Private-equity firm TPG and other firms will put $5 billion into Washington Mutual (WM).
The Wall Street Journal writes that federal officials are encouraging Berkshire Hathaway (BRK) to fire the head of its reinsurance unit due to criminal convictions of some of its executives.
The Wall Street Journal writes that a Chinese court has approved going forward with a case by the music industry against Chinese online firms including Baidu (BIDU).
Bloomberg writes that with Bear Strearns gone, Goldman Sachs (GS) is now the Wall St. firm that relies the most on leverage.
AAPL: See iPod and iPhone buying trends likely declining in Q2@HAMR
Hambrecht’s internet poll indicated weak consumer buying trends for the iPod and iPhone products in 2008, but also indicates that many people did buy an iPod or an iPhone in Q1. The firm sees iPod and iPhone buying trends likely declining in the Q2 and likely slower demand overall in 2008 in aggregate.
AAPL upgraded to Overweight from Market Weight@TWPT
Thomas Weisel upgraded AAPL citing a re-set in FY08 expectations and expected growth from Mac market share gains, accelerating iPhone revenue growth, and increased iPhone ASPs. Target to $195 from $185.
RIG announces 5 year drilling contract
Transocean announced that the ultra-deepwater drillship Dhirubhai Deepwater KG2 , which is owned by a joint venture in which the company has 50 percent interest, has been awarded a five-year drilling contract from Reliance Industries. The contract is expected to commence in the first quarter 2010 following shipyard construction, sea trials, mobilization to India and customer acceptance. Contract revenues which could be generated over the first six months and remaining 54 months of the contract period are estimated to be $90 million and $838 million, respectively.
Big positive for RIG expect strength.
WM- Shares are up +14.55% after the WSJ reported the company may arrange for a $5B capital infusion from private capital firm, TPG Inc. Strong positive for the XLF and financials expect to see strength and support in all three, laying a nice back drop for the market to continue higher.
EBAY: Q1 EPS & Revenue tracking ahead of consensus@MSCO
Morgan Stanley said EBAY’s Q1 EPS is tracking to 41c and revenue to $2.115B vs. consensus of 39c/$2.06B. Shares are Overweight rated.
WYE- bullish article in Barron’s this weekend on WYE and ELN’s Alzhiemer’s drug. We wrote an article about this drug in January and have already noted that this as a blockbuster drug in play and see this as an actionable call with a hedged position with longer dated calls.
URBN target raised to $38 from $31, reit Buy@ROTH
After the company reported in a 10-K form that its Q1 comps are running ahead of plan, Roth Capital believes the retailer’s comps are increasing in the mid single digit range. The firm thinks Urban Outfitters is one of the top retail companies due to its diversified growth opportunities, superior management, and strong balance sheet and brand uniqueness.
Big fan of URBN as a retailer and so is my wife.
Google could make major announcement tonight-TechCrunch
TechCrunch is reporting the Google (GOOG) may make a major announcement this evening at “Campfire One,” the second of their developer events. Rumors are swirling that Google’s announcement may pertain to the ‘imminent launch’ of BigTable, their internal database system. Google could announce the launch of additional Web services that will compete head-on with rival offerings from Amazon (AMZN) and others. At the first Campfire One event in November, Google announced details of the OpenSocial initiative.
X target raised to $165 from $130, maintain Buy@DBAB
Deutsche Bank believes the company is the best positioned to benefit from rising steel prices via its integrated business model and thinks its earnings power can push shares higher.
Expect further strength in the steel names X, STLD, CLF, MT, SCHN, RS, AKS, MTL
STLD initiated with a Overweight@MSCO NUE downgraded to Equal Weight from Overweight@MSCO
AKS announces price increase for carbon steel products
AK Steel will increase spot market prices for its carbon steel products by $150 per ton for all new orders, effective immediately. AK Steel said that the price increase is in response to increased demand for carbon steel products, as well as the need to recover unprecedented increases in steelmaking inputs.
POT Estimates and target raised to $225 from $180@GSCO
Goldman raised POT estimates citing strong fertilizer fundamentals.
Big news for the Fertilizer plays. GS raising potash prices for the next 3 years, that bodes well for the companies and earnings outlook for the foreseeable future. MOS, CF, POT, AGU, MON all should see continuing strength off this note.
FMCN added to Alpha List, maintain Buy@PIPR
Piper believes continued strength in out of home advertising and Q1 upside could serve as catalysts over the next ninety days. They find the valuation attractive at current levels and reiterate a Buy rating.
YHOO: Still see sale to Microsoft as the likely outcome@JEFF
Jefferies views Microsoft’s (MSFT) ultimatum to YHOO’s board as a hard ball negotiating tactic to force the Board’s hand and believes it will likely work considering that YHOO’s alternatives are weak, particularly in terms of other suitors. Jefferies thinks YHOO’s only alternative is to stay independent, a scenario that could drive shares back to the high teens/low twenties. Thus, they think a sale to MSFT is the most likely outcome and maintain a Buy rating on YHOO shares.
LDK says SEC does not recommend any enforcement
In an SEC filing, the company said: “The SEC initiated an investigation on October 18, 2007 with respect to the above accounting matters and, on March 24, 2008, we were informed that the SEC staff did not intend to recommend any enforcement action by the SEC against us.” Nice positive for LDK expect any positive news to push this higher due to high short interest in the shares.
Goldman Sachs is not lowering its leverage-Bloomberg
Goldman Sachs (GS) has been the only major investment bank that has refused to reduce its leverage. In fact, Goldman’s adjusted leverage ratio of assets rose to 18.6 at the end of February, from 17.5 at the end of November. “We have no need…to shrink our balance sheet,” Goldman CFO David Viniar told analysts on March 18.
Evergreen Solar to announce major expansion-The Boston Globe
Evergreen Solar (ESLR) is expected to announce today that it will double the size of its manufacturing facility in Massachusetts and add about 350 new jobs as part of its ongoing expansion. The move is the second phase of a growth plan that is expected to more than triple Evergreen’s workforce from its current 300 workers to about 1,000.
Strong positive for ESLR and one to keep an eye on for the foreseeable future in the solar sector.
FSLR & ENER: Targets raised on tight poly supply@LYON
Calyon said poly market supply/demand conditions remain tight, which is a postitive for thin-film’s long-term prospects. The firm raised FSLR price target to $335 from $280 and ENER to $42 from $34, both are Buy rated.
The market looks ready to breakout of its range soon and I’m thinking bullish. I will be focusing on DRYS, the 4 Horsemen, strongly hawking the solars SPWR, STP, ESLR, LDK, YGE. I’ll be hawking my favorite steel plays, MA, the fertilizer plays, BIDU and MELI, CME, coal plays- ANR, CNX, MEE and energy plays- APA, OIH, RIG. The financials will be key to the follow through so I’ll be keeping my eye on that as well- brokers GS, JPM, MS and the banks- WM, C. I don’t have to tell you how bullish I am on the solar sector if my article over the weekend didn’t convey that. I think you have to hawk that area and buy the dips, my favs are SPWR, FSLR, STP, YGE, JASO, LDK, ESLR, ENER and all the other lower tier solars.
Have a great start to a great week. Keep the positive spirit alive, stay focused and goal oriented. Focus on the now and look for great setups and high probability trades. Seek the zone and stay in it. Become the trader and investor you know you can be.
Achieve! Achieve!
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