Periodicals Wrap-Up for Thursday, May 8th from flyonthewall.com
FINANCIAL TIMES: According to senior industry sources, the Financial Times reported that the Ministry of Defense could ask General Dynamics (GD) to provide the vehicle design for a new generation of armored vehicles for the army. It is unclear whether General Dynamics, in competition with Nexter and Artec, will be awarded the contract or will be named the preferred bidder…Following the collapse in March of Bear Stearns (BSC), the Financial Times also reported that the SEC will soon require Wall Street banks to publicly disclose more details about liquidity and capital positions. Cox also urged lawmakers to pass legislation that would allow the SEC, or another regulator, the “explicit mandate to supervise” investment banks…NEW YORK TIMES: According to the New York Times, Citigroup (C) will move senior investment banker Alberto Verme to Dubai by the end of the month in the hopes of establishing a stronger foothold in the region, a crucial area for global banks…The New York Times also reported that several large oil companies, including BP (BP), ConocoPhillips (COP) and Chevron (CVX), agreed to pay nearly $423M in cash in order to settle a lawsuit that alleged water contamination from methyl tertiary butyl ether, a gasoline additive. Under the terms of the deal, the oil giants also agreed to pay 70% of the future cleanup costs for the next 30 years. ExxonMobil (XOM) and several other companies named in the suit did not agree to the deal…
HANS reports Q1 EPS 29c vs. consensus of 35c
HANS reports Q1 net sales of $212M vs. consensus of $220.7M.
HANS: Maintain Overweight rating after weak Q1 results@JPMS
JP Morgan expects results to improve the remainder of the year.
HANS downgraded to Neutral from Buy@GSCO
Goldman downgraded HANS following the weak Q1 report.
TGT CEO says April SSS ’slightly below’ planned range. TGT reports April SSS up 3.1% vs. consensus of up 4.5%
RIG downgraded to Hold from Buy@STFL
Stifel downgraded RIG based on valuation.
PXD target raised to $84 from $81 after strong quarter@DBAB
Deutsche Bank maintains a Buy rating on the stock.
GOOG target to $700 from $570, reiterate Buy@UBSW UBS said shares of GOOG may test highs due to improving sentiment and new revenue opportunities.
FFIV upgraded to Outperform from Sector Perform@RBCM
RBC Capital believes the worst is over for IT spending and that FFIV will benefit from new product launches. Target to $32 from $25.
CNX downgraded to Equal Weight from Overweight@MSCO
AIG’s troubles keep mounting-WSJ
American International Group (AIG) isn’t expected to report a very good quarter today, thanks to the subprime mortgage mess. That’s not news, but according to the Wall Street Journal’s “Heard on the Street”, what may happen over the next several years may not be very pretty either. “They are more vulnerable, because the capital cushion gets dented,” says Nigel Dally at Morgan Stanley. “The fundamentals are being hit from a lot of different angles.” Their corporate directors insurance business and financial products unit are also troubled, and more write-down may be coming which would pressure its International Lease Finance Corp. as it borrows money to buy planes.
CROX reports Q1 EPS 9c vs. consensus of 10c CROX reports Q1 revenue $198.5M vs. consensus of $196.67M. The company still sees 2008 revenue growth between 15%-20% and EPS ex-charge $1.70-$1.80, and with the charge $1.54-$1.64, vs. consensus of $1.60. CROX guides Q2 EPS ex-charge 45c-50c, and with a charge 42c-47c, vs. consensus of 43c. The charge is 16c due to the shutdown of the company’s Canadian manufacturing operations. CROX Q1 results mixed, maintain Neutral rating@JPMS
JP Morgan believes the company maintaining FY08 guidance and inventories were positives, but that weak gross margin and the sluggish US business were negatives. They do not see any reason to get more positive or more negative on the stock after the quarter. CROX: 1Q EPS a penny short of expectations; maintain estimates@BARD
With weather having improved globally, sell-through improved as well. Management reiterated 2Q and FY08 guidance which is ahead of consensus for both the 2Q and 2008. Quarter-to-date inventory down already $10M and management anticipates a decline of 10%-15% at the end of 2Q, while declining even more by the end of 3Q08.Target price $21 and Outperform rating maintained.
Yingli Green Energy-YGE signs sales contract with IBC Solar
Yingli Green Energy Holding Company Limited announced that it has entered into a sales contract with IBC Solar AG, one of the leading specialists in PV systems worldwide. Under the terms of the contract, Yingli Green Energy is expected to supply a minimum of 35 MW of PV modules to IBC from May 2008 to December 2008. In addition, IBC has an option to purchase a maximum of another 45 MW of PV modules from Yingli Green Energy in 2009.
RIMM needs growth in last month to make Qtr@TDSI
TD Newcrest said it is NOT calling for RIMM to miss but notes the company needs growth in the last month to hit guidance. The firm expects RIMM to meet its 2.2M sub guidance but they do not expect them to beat this number. Shares are Buy rated.
ENER reports Q3 EPS 17c vs. consensus of (6c)
Reports Q3 revenue $70M vs. consensus $66.71M. ENER expects Q4 revenue $73-$78M vs. consenus $73.13M
Actionable.
Fast Money position recap- First Moves- Jeff says to trim positions o the USO, Guy likes DOG, Karen likes YHOO for 3 days, Pete likes UNG.
Adami Owns (C), (GS), (INTC), (MSFT), (AGU), (NUE), (BTU); Pete Najarian owns (AAPL), (C) Calls, (ENER), (MSFT) Calls, (TSO), (XLF), (YHOO) Calls; Macke Owns (INTC), (DIS0, (ATVI), (MSFT); Finerman’s Firm is Short (IYR), (IJR), (SPY), (MDY), (IWM), Owns SPX Index Puts, (AEO), (MSFT), (NYX), (PLCE), (TSO), (VLO), (YHOO) and (YHOO) Call Spreads, Finerman Owns (GS), Finerman and Finerman’s Firm Own (C).
Watching the 4 Horsemen, BIDU, PCLN for earnings, ATW for earnings, DRYS (gap up), MT (gap up)and steels, the sell off yesterday was induced by proposed new SEC rules for the brokers and banks which took down the financials and in turn cascaded into a selloff across the board. So goes the brokers, so goes the market is key still and hawking the XLF will be important for clues for market direction. Watching YGE, CROX, MA, V and ENER (earnings blowout). Watching for a bounce today in the markets.
Have focus and patience and pick plays with a high probability of success. Great trading and great day!
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