Submitted By Optiondragon
From Briefing.com
Periodicals Wrap-Up for Monday, July 28th
WALL STREET JOURNAL: The Wall Street Journal reported that Motorola (MOT) is reorganizing its home and networks mobility unit into three distinct units, a move which may make it easier for Motorola to sell some of the businesses in the future…In a victory for high-tech companies and consumers, the FCC later this week is expected to rule that Comcast (CMCSA,CMCSK) violated federal policy when it prevented some of its customers the ability to share videos online though file sharing services, the Wall Street Journal reported…NEW YORK TIMES: The issue about the health of Steve Jobs, Apple’s (AAPL) CEO, has been a persistent one as of late, with “multiple sources…troubled by his thin appearance.” Needham analyst Charles Wolf believes that as long as Jobs is healthy, “he doesn’t have to disclose,” but is careful to remind that “Apple is Steve Jobs and Steve Jobs is Apple”. Sanford analyst A.M. Sacconaghi says that because the company has not effectively squashed the rumors once and for all “is really unsatisfactory to most investors,” the New York Times reported…ASSOCIATED PRESS: The Associated Press reported that Time Warner’s (TWX) AOL will close down three data storage services in order to reduce its costs and focus on advertising. AOL Pictures, media-sharing site BlueString and online backup service Xdrive will probably be eliminated by the end of the year. However, AOL is seeking to sell at least Xdrive…TECH CRUNCH: Google (GOOG) had entered final negotiations to buy content sharing website Digg for about $200M, but the search engine giant decided during the due diligence stage of the process not to make the deal, Tech Crunch reported…
Apple keeps health of CEO under wraps-NY Times
The issue about the health of Steve Jobs, Apple’s (AAPL) CEO, has been a persistent one as of late, with “multiple sources…troubled by his thin appearance.” In response to an analyst’s question last week about the health of Jobs, CFO Peter Oppenheimer neither confirmed nor denied that he was cancer-free, bringing up the issue of whether or not “Steve’s health is a private matter”. Powers Pyles Sutter & Verville laywer Larry Gondelman said that there is “no bright line test” to help make the choice to disclose a medical condition, as was done with former McDonald’s (MCD) CEO Charles Bell, who passed away from colorectal cancer in 2004. Needham analyst Charles Wolf believes that as long as Jobs is healthy, “he doesn’t have to disclose,” but is careful to remind that “Apple is Steve Jobs and Steve Jobs is Apple”. Sanford analyst A.M. Sacconaghi says that because the company has not effectively squashed the rumors once and for all “is really unsatisfactory to most investors”. Joe Nocera of the New York Times spokes with Jobs and while his health problems are not life-threatening and there is no recurrence of cancer in the picture, his recent health problems “amounted to a good deal more than a common bug”.
Intel is preparing to unveil its dual-core Atom-APC Magazine
Intel (INTC) is expected to demonstrate the new dual-core version of its Atom processor at the Intel Developer Forum in August. The new Atom, which features two 1.6 GHz engines rather than one, is slated to be officially launched in late September.
Google torpedoes Digg deal-TechCrunch
Google (GOOG) had entered final negotiations to buy content sharing website Digg for about $200M, but the search engine giant decided during the due diligence stage of the process not to make the deal.
FCC to rule that Comcast can’t slow Internet traffic to its customers-WSJ
In a victory for high-tech companies and consumers, the FCC later this week is expected to rule that Comcast (CMCSA,CMCSK) violated federal policy when it prevented some of its customers the ability to share videos online though file sharing services, reports the Wall Street Journal. Comcast has said it did slow some traffic to prevent an overburdening of its network.
Lehman is being hammered by higher borrowing costs-Bloomberg
Lehman Brothers (LEH) has been hurt the most by the increase in interest rates on Wall Street debt. The interest rate on the investment bank’s five-year bonds has jumped to 7.7%, compared with 5.2% just six months ago.
Nokia has no plans to merge Symbian with Android-Silicon Alley Insider
According to Nokia (NOK) vice president David Rivas, the company has no plans to roll its Symbian mobile operating system into Google’s (GOOG) Android. The comment was made after mobile analyst Jack Gold predicted that the two would begin fusing their operating systems into one big project within six months. While an eventual merger of the OS businesses is “possible,” the Silicon Alley Insider says, “we’d label this one as unlikely”
Former executives at Google prepare new search engine-NY Times
Anna Patterson, a former employee of Google (GOOG) who helped build some of its index of Web pages, and her husband Tom Costello and other Google alumni, will today unveil a new search engine through their company, Cuil. Costello has promised that the new engine will be more comprehensive than Google’s and hope will give users more relevant results. Some analysts believe that Cuil does have potential, in part because of the “pedigree” of its founders.
SEC’s market manipulation investigation probes four Lehman-related rumors-WSJ
The SEC investigation of possible market manipulation is currently focused on four rumors related to Lehman Brothers Holdings (LEH), according to the Wall Street Journal. The agency wants to know if the alleged rumors helped to drive Lehman’s shares down over the past two months, and they want to pinpoint their source. Lehman executives have said that short sellers were spearing rumors to force their share price lower.
Cleveland-Cliffs, investor Falcone, to meet over controversial takeover-WSJ
Philip Falcone, head of hedge fund Harbinger Capital Partners and the largest shareholder of Cleveland-Cliffs (CLF), is soon expected to meet with company executives to discuss a takeover by the company that he opposes, reports the Wall Street Journal. Cleveland-Cliffs, an iron ore producer, wants to buy Alpha Natural Resources (ANR) for $10B, but Falcone thinks the company should instead be selling itself.
Apple stores open earlier to accommodate demand for iPhone 3g-Apple Insider
Due to the unprecedented demand for Apple’s (AAPL) new iPhone, the company’s retail outlets will open up to two hours earlier each day. Stores that normally open at 10 am will not open at 8 am, according to the company’s availability page, and will additionally ramp up staff. Apple will also pre-qualify some customers who line up at the store and will set aside an iPhone 3G “to be picked up later”.
Earnings surge at connector maker Amphenol -IBD
Amphenol (APH) makes connectors for electronic and fiber optic systems. It’s growth is strong and it also is very successful at making timely acquisitions and increasing their margins. In a fragmented but growing market Amphenol has tripled its sales over the past six years, according to Investor’s Business Daily’s “The New America”. The company raised its earnings estimates for 2008 to $2.34 to $2.38 a share or more than five times what it made back in 2002. It also raised revenue guidance for the year to about $3B, 15% higher tha last year. Their sales are to the military, and commercial aerospace and mobile device industries.”They are the consolidators in an extremely fragmented marketplace,” says Amit Daryanani at RBC Capital Markets.
XTO Energy-XTO: Estimates and target lowered, maintain Outperform@FBCO
Credit Suisse said XTO’s recent deals are designed to extend growth, not hide problems. The firm said the Q2 report was slightly better than expected on price, while production and operating costs were in line. The analyst lowered XTO estimates to reflect the $1.25B equity offering, higher DD&A rate, and higher interest expense. Target to $67 from $78.
Sohu.com-SOHU reports Q2 EPS $1.07 vs. consensus of 67c
Reports Q2 revenue $102M vs. consensus of $96.52M
Sohu.com-SOHU sees Q3 EPS $1.00-$1.05 vs. consensus of 71c
SOHU sees Q3 revenue $112M-$116M vs. consensus of $106.75M.
SOHU volatility at 70 into Q2 revenues up 162% year-on-year
SOHU, Chinese portal, is recently up $5.89 to $88.71. SOHU say’s Q2 2008 total revenues up 162% year-on-year and 20% quarter-on-quarter; Non-GAAP fully diluted EPS up 417% year-on-year and 68% quarter-on-quarter. SOHU over all option implied volatility of 70 is above its 26-week average of 64 according to Track Data, suggesting larger price movement.
American Int’l-AIG August volatility Elevated at 104 into EPS & Guidance
AIG is scheduled to report Q2 EPS on August 7. AIG August option implied volatility is at 104, September is at 75; above its 26-week average of 50 according to Track Data, suggesting larger price movement.
U.S. equity futures still point to a lower open
Stocks are still looking lower to start the week but are off of their earlier lows. The price of crude oil is higher on concerns about Iran’s nuclear program and the state of the U.S. economy. The futures also received a boost from better than expected earnings from Kraft (KFT) and Dow component Verizon Communications (VZ). The financial sector received another dose of bad news over the weekend when more banks were shut down, including First Nation Bank of Nevada and First Heritage Bank NA of California. Both banks’ deposits were taken over by Mutual of Omaha.
Ceradyne-CRDN: See potential for revenue growth after 2008@NEED
After Ceradyne reported higher than expected Q2 EPS, Needham maintained their Strong Buy rating on the shares, as they believe the company can grow its revenue after 2008 from vehicle armor, as well as several other sectors, including aluminum and oil extraction, and ceramic materials.
Coal: China concerns overstated, fundamentals remain strong@LYON
Calyon believes concerns regarding China’s slowing economy are overstated and that domestic coal equities are discounting this. The firm reiterates their Buy rating on ACI, BTU, and FCL.
Bucyrus-BUCY initiated with a Buy@GABE
Gabelli thinks the current cycle for mining equipment will last at least another 6-8 quarters.
MasterCard-MA: View risk/reward as balanced into the quarter@JPMS
JP Morgan thinks upside is likely and remains bullish longer term with an Overweight rating, but finds the risk/reward as balanced into MA’s Q2 results.
Visa-V estimates raised ahead of Q3 results@JPMS
JP Morgan believes the company’s pricing initiatives on U.S. crossborder transactions will more than offset slower U.S. growth. They recommend the shares ahead of the quarter and keep an Overweight rating on the stock.
PCLN upgraded to Overweight from Market Weight@TWPT
Thomas Weisel raised its PCLN estimates above guidance based on acceleration in the domestic business, potential increase in online sales due to the European hotel slowdown, and a potential Q2 beat. Target $145.
AKAM: Expect company to report strong Q2 results@KBRO
Kaufman Bros. predicts that Akamai will report in-line Q2 results, as they note that the company’s media and e-commerce sectors have tracked well. However, the firm maintained their Hold rating, as they think the company’s valuation adequately reflects its outlook.
AMGN upgraded to Overweight from Equal Weight@MSCO
Morgan Stanley upgraded AMGN based on the positive denosumab data and share valuation. Target to $74.
Lehman-LEH: Estimates and target cut, maintain Neutral@MLCO
Merrill believes LEH can post a further writedown of $2.5B in Q3 due to further reductions in mortgage assets. The firm lowered its Q3 EPS estimate to ($1.59) from 37c and price target to $25 from $28. The firm adds that Lehman’s core business remains intact.
Emerging Technology: Expect AMSC, ESE and ITRI to outperform@DBAB
Deutsche Bank thinks American Superconductor (AMSC), ESCO Technologies (ESE) and Itron (ITRI) are well positioned to benefit from increasing concerns about electricity prices, energy security and climate change. They expect all three stocks to continue outperforming during the economic slowdown. AMSC is their top pick with a $48 target.
Amgen-AMGN initiated with a Buy, target $77@MLGA
Morgan Joseph believes AMGN’s positive FREEDOM trial results will have a profound and lasting impact on the company’s growth but also on its scientific credibility.
Putin says Mechel Steel-MTL has evaded taxes-Reuters
Technicals are horrible here looking like investors were bracing for negative news.
Microsoft-MSFT: Believe shares are due for a recovery@SBSH
Citigroup believes the stock is cheap at current levels and feels a favorable valuation, strength in the core business, and possibility for an increased buyback plan should bring a recovery. They maintain a Buy rating and $36 target.
Federal Reserve Governor Mishkin to speak at 12:30pm on 7/28 in Washington, D.C.
Governor Mishkin will speak at the Peterson Institute for International Economics on “Federal Communication”
Research in Motion-RIMM: Reiterate Buy following positive checks@BOFA
Banc of America believes net subscriber additions are tracking ahead of their 2.6M estimate for the August quarter following channel checks. The firm reiterates a Buy rating and $160 target.
Range Resources-RRC upgraded to Buy from Neutral@RHCO
Suntrust upgraded RRC based on improving Marcellus share economics and valuation. Target $70.
AMGN upgraded to Buy from Hold@JEFF
Jefferies upgraded shares following the positive top-line efficacy and safety results for Denosumab in PMO as they view it as a “big win.” The firm raised their target to $71 from $47.
GTX Inc.-GTXI announce sPhase III Toremifene review
GTx, Inc. announced that following a planned safety review, an independent Data Safety Monitoring Board has recommended that the company continue as planned the pivotal Phase III clinical trial evaluating toremifene 20 mg for the prevention of prostate cancer in men with high grade prostatic intraepithelial neoplasia. The DSMB meets every six months to review unblinded safety data from the toremifene Phase III clinical trials. :
Onyx Pharm-ONXX China’s SFDA approves Nexavar to treat liver cancer@LEER
The State Food & Drug Administration of China approving Nexavar is a slight positive for ONXX. The firm maintains their Market Perform rating.
Fast Money Position Recap: First Moves- Tim likes shorted dated options on RDX. Joe like SLB, Quint likes geting long EEV and getting long FXI against it for a paired trade. Pete thinks CSCO is a buy.
Najarian Owns (AAPL), (TSO), (ICO); Najarian Owns (XLF) Puts, (YHOO) Calls; Najarian Owns (CSCO) Calls; Seymour Owns (AAPL), (BAC), (F), (MER), (MSFT), (TSO); Seygem Asset Management Owns (FXI), (EEM), (NIHD) ;Seygem Asset Management Owns (RSX) Calls; Terranova Owns (YHOO), (XLF), (BNI), (IYT), (SU), (RIMM), (VLO), (SA), (CME), (GOOG), (INTC),( KOL); Terranova Is Long Gold December Futures; Terranova Is Long Crude Oil September $154 Calls; Terranova Is Short Crude Oil September $130 Calls; Terranova Is Short Crude Oil September $130 Puts
Terranova Is Chief Alternatives Strategist Of Phoenix Investment Partners, Ltd.; Phoenix Investment Partners Owns More Than 1% Of (DBV), (RWX), (LNET), (EXR), (SKT), (DLR), (IGE), (ARE), (DBC), (ABD), (OFC), (CLB), (BLV), (CNTY), (FL), (HPC), (PSPT), (ESS), (OIIM), (BIG),(ENG),(PFD),(DRH)
Terranova Is Co-Portfolio Manager Of The Phoenix Diversifier PHOLIO; Phoenix Diversifier PHOLIO Owns (IGE), (DBC), (DBV)
Quint Tatro Is The Principal Of Tatro Capital; Tatro Owns (C), (GS), (JPM), (FSLR); Tatro Capital Owns (CHK), (JNJ), (QQQQ), (SPY), (DUG), (XLF), (GRMN), (ASTI), (JASO), (EEV)
(Important note on how to use this upgrade/downgrade list with analyst comments and news….you must parse out the factual data (Factual data is the most important) from the opinionated data and always take all analyst comments with a grain of salt. Do not follow blindly with their recommendations. Remember that technicals are the most powerful force in short term direction for stock prices due to the law of supply and demand. Besides if they were so good at predicting price they would be trading for a living. lol)
Some quick looks show me ONXX popping on China news, SOHU long, AMGN long, MTL short, ALXN long, RIMM long, SLM good LT play, this week is full of energy earnings so we could see some action in those names.
Art Cashin says it is a neandering day possibly through the week. The market probably has an eye to the economic data later in the week. So he doesn’t expect much from the markets for the week. Some earnings of note for tomorrow morning are MOS, CLR, NOV. Mr. Sparkle has his earnings list up for the week which analyzes companies reporting earnings with excellent quick snapshots of the float, shares short, 52 week ranges, P/E ratios and option liquidity! 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!
Did you like this article?
Submitted By 
's
