Submitted By Optiondragon
From Briefing.com
Periodicals Wrap-Up for Thursday, May 22nd
WALL STREET JOURNAL: Future crude oil supplies may be a lot tighter than thought. That is what the International Energy Agency in Paris is expected to find when it releases its assessment of the world’s 400 major oil fields in November, according to the Wall Street Journal, a reversal from previous reports and is based on a lack of investment and aging oil fields…The Institute for Safe Medication Practices, a nonprofit safety organization, found serious side effects linked to Pfizer’s (PFE) Chantix, a smoking cessation drug. Chantix is already tied to psychiatric issues, including depression and suicide, according to the Wall Street Journal, and the report also points to heart trouble, seizures and diabetes…NEW YORK TIMES: The New York Times reported that the Jacksonville Police and Fire Pension Fund has accused American International Group (AIG), along with several of its executives, of inflating its stock price artificially by understating the company’s exposure to the subprime mortgage crisis. According to the lawsuit, AIG’s Q1 loss of $7.8B shocked investors because the insurance giant assured them that any losses on credit insurance “would be limited”…THE AUSTRALIAN: Following speculation a Chinese entity would look to take a stake in Australian miner BHP Billiton (BHP), Huang Tianwen, the president of Sinosteel Corp, said the company has not formed a bid for the firm. The Australian reported that Chinese steel mills may look to buy into iron ore miner Fortescue Metals Group…
After the iPhone: Apple’s next gadgets?-WSJ
The Wall Street Journal’s “Personal Technology” column looks ahead to what Apple (AAPL) will come up with next and finds, with the help of Forrester Research, a shift to a room to room takeover of the home. Such as? Digital picture frames that function as an HD screen to exhibit photos, and play music and videos tirelessly from a home-based computer. Then there could be a multimedia clock radio, and a a version of Apple’s famous “Genius Bar” to offer technical assistance. Apple’s not talking, but others like to speculate.
AKAM: Demand outlook robust, remain buyers@PACS
PacCrest attended the Streaming Media East conference this week, which validated that the growth outlook for CDN is strong. They say AKAM in best positioned to benefit based on service offerings and customers. PacCrest sees no new increasing threats and pricing has stabilized. The shares are rated Outperform.
NTES target raised to $29 from $25 following Q1 results@PACS
PacCrest is raising their estimates and price target on NTES to $29 from $25, off the huge Q1 results. They said operating margins were significantly better and that NTES has revitalized Old and New game growth. PacCrest would be a buyer today of Outperform rated NTES as well as Shanda Interactive (SNDA) and Perfect World (PWRD).
STP reports Q1 EPS 35c vs. consensus of 27c
Reports Q1 revenue $434.5M vs. consensus of $377.1M.
STP sees Q2 revenue $430M-$440M vs. consensus of $427.68M
Sees FY08 revenue $1.9B-$2.1B vs. consensus of $1.98B.
STP: Strong Q1 should boost confidence in FY outlook@COWN
Cowen said revenues and margins were above expectations and should offset fears that higher raw material costs will dilute margins. The firm rates shares an Outperform.
UTHR: Predict Vivieta will drive earnings growth@OPCO
Oppenheimer believes the Phase III data for the company’s Vivieta was clearly positive, and they expect the FDA to approve the treatment in 2Q09. The firm predicts that Vivieta and possibly oral treprostinil will cause the company’s EPS and revenue to grow, and the firm, which maintained their Outperform rating, recommends buying the shares on any weakness.
GS downgraded to Sell from Neutral@LTCO
Ladenburg Thalmann downgraded shares with a $151 target as they believe the summer will be tough for the brokers. Note the firm also downgraded Merrill Lynch (MER) and Lehman Brothers (LEH) to Sell this morning
LEH downgraded to Sell from Neutral@LTCO
Ladenburg Thalmann downgraded shares as they believe LEH’s hedges to offset markdowns may not be working so well. The firm lowered LEH’s target to $35 from $38.
MER downgraded to Sell from Neutral@LTCO
Ladenburg Thalmann downgraded shares as they believe disruptions in cash and hedge markets will result in lower than expected earnings. The firm lowered MER’s EPS estimates and target to $39 from $49.
CRM target raised to $80 from $70 on business momentum@SBSH
Citigroup believes CRM’s business momentum is strong and that any share weakness from the Q1 results presents an opportunity to accumulate shares. They raised their target to $80 and maintain a Buy rating.
SOLF downgraded to Sell from Neutral@GSCO
Goldman downgraded SOLF based on valuation. Target to $20.
Biotechnology: DNA remains top pick, see short-term trading buy in IMCL@BOFA
After speaking with two leading oncologists, Banc of America has increased confidence that Genentech’s (DNA) Avastin will continue to be the treatment of choice for first-line colorectal cancer and that ImClone’s (IMCL) Erbitux will not cannibalize Avastin’s market share but will be used in Avastin-ineligible patients. DNA remains the firm’s top pick in biotech, and they see a short-term trading opportunity in IMCL into ASCO given the recent share weakness.
BCSI reports Q4 EPS 33s vs. consensus of 40c
Reports Q4 revenue $88.2M vs. consensus $89.51M.
Data says oil’s rally could be traders’ fault-Bloomberg
According to data from the New York Mercantile Exchange, yesterday’s oil rally came as traders bought crude “to cover wrong-way bets” that prices would decline. The data show that the number of outstanding futures contracts fell to 1.36M, 8.1% in a week, as prices rose 2.6%. Stephen Schork, president of Schork Group, said that in a market like today, “which is trending higher while open interest is falling, it’s a sign that money is moving out of the market.”
Asian Markets Wrap-Up for Thursday, May 22
Stocks in a majority of Asian countries dropped, as record oil prices dragged down transportation companies. JAPAN: Shares rose slightly, with refiners and exporters leading the advance as the yen weakened. The Nikkei 225 Stock Average increased 0.4% to 13,978.46. Refiner Nippon Oil (NPOIF) surged 5.3% and another refiner, Idemitsu (IDKOF), jumped 6.5%. Mazda (MZDAF) advanced 2.9%. Battery maker Sanyo Electric (SANYY) fell 4.9% after it estimated that its operating profit in its fiscal year ending March 2009 would be more than 25% lower than analysts’ consensus estimate. HONG KONG: Stocks dropped, led by airlines. The Hang Seng Index dipped 1.6%, to 25,043.12. China Southern Airlines (ZNH) fell 6%, while Cathay Pacific Airways (CPCAY) lost 2.2%. China Resources, a retailer and brewer, slumped 3.7%, following its announcement that its Q1 profits had dropped 14% year-over-year. Oil refiners declined, after the government denied rumors that it would lift price controls on fuel prices. China Petroleum (SNP) dropped 3.2%, while PetroChina (PTR) dipped 1.6%. AROUND ASIA: China’s CSI 300 Index slumped 1.89%, while Taiwan’s Taiex inched down 0.08% and South Korea’s KRX 100 lost 0.76%…India Ltd.’s Shipping Corp. said it would borrow $1.3B to buy more ships as India’s trade increases.
ANR upgraded to Buy from Neutral@MLCO
SPWR: Reiterate short position as stock lacks positive catalysts@PACS
PacCrest says the Solar stocks are likely up today as the ITC bill passed in the House as expected. However, they think the bill will likely die in the Senate. PacCrest reiterates their Underperform rating and short call in SPWR as they see few positive catalysts going forward.
U.S. equity futures now point to a lower open
Futures are pointing to a lower open after two days of steep declines in the equity markets and big gains in the oil market. Oil prices continue to climb, having traded at $135.09 before falling slightly back. Investors had a look into the strength of the economy when the initial jobless claims report showed 365,000 versus an expected 373,000. The prior week’s number was revised to 374,000 so the initial jobless claims fell 9,000 for the week.
ESLR signs new sales contracts valued at approximately $1B
Evergreen Solar, Inc. announced it has signed two new long-term sales contracts. Yesterday, Evergreen Solar and German-based Ralos Vertriebs GmbH signed an agreement valued at approximately $750 million for panel deliveries beginning in 2008 and extending through 2013. Combined with another agreement signed last week with a United States-based installer, Evergreen has new contractual backlog of approximately $1 billion.
SOLF target raised to $20 from $14, maintain Neutral@AMTR
Am Tech raised their target following the company’s strong quarter but feels gross margin results were relatively weak due to increased pressure on poly pricing. They expect this margin weakness to continue through Q2.
Fast Money position recap- First Moves- Jeff likes USO with a $105 stop, Guy likes AMR, Karen likes OIH and USO puts, Pete likes DIS.
Adami Owns (INTC), (BTU), (AGU), (C), (GS), (MSFT), (NUE); Najarian Owns (AAPL), (ANR), (HPQ), (XLF); Najarian Owns (FTO) Calls; Macke Owns (MSFT), (WMT), (DIS); Finerman Owns (GS); Finerman’s Firm Owns (MSFT), (TSO), (VCLK), (VLO); Finerman’s Firm Owns SPX Index Puts; Finerman’s Firm Owns (C) And (C) Leaps; Finerman’s Firm Owns (YHOO) 1X2 Call Spreads; Finerman’s Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY).
The Fed Minutes did not inspire and led to more profit taking and further weakness in the financials. The Fed insinuated that they are done with cuts but lowered growth forecasts and upped inflation forecasts. I am concerned about the financials and will look for some stabilization there before feeling more comfortable with the market environment. Let’s see if the market can start putting in a bottom here and consolidate for a cycle move higher although I am not as confident about the market recently. It seems buying has dried up and there isn’t much bid support and vigorous buying on the dip as has been the case for the past couple months. My concern has to due with the slope of the selloff and the lack of strength and speculative put buying in the XLF and financials. We need the financials, tech and energy to move in sync higher or to stabilize in order to maintain the recent market rally. Watching ESLR, oil prices and the energy sector, NOV, PBR, ANR, CRM, STP, solars, FCX, miners. Going to see how the market ranges for the first hour or two, to get a glimpse of how things could shape up for the rest of the day, looking for a relief rally but will also look for confirmation. Just being cautious during this hopefully short corrective phase. Keeping an eye on my leading market indicators (GAGXX- GOOG, AAPL, GS, XLF, XOM). Focus on the positives, have patience, pick plays with a high probability of success. Great luck to you and great trading.
Did you like this article?
Submitted By 
's
