Submitted By Optiondragon
From Briefing.com
Periodicals Wrap-Up for Friday, August 1st
WALL STREET JOURNAL: The Wall Street Journal reported that Carlyle Group is set to liquidate its $600M Blue Wave hedge fund. Blue Wave, a joint venture between Carlyle Group and Rick Goldsmith and Ralph Reynolds, formerly of Deutsche Bank (DB), looked to make a variety of investments and was meant to diversify the buyout firm’s business, but instead forayed into residential mortgage-backed securities in the midst of its collapse…In what may cast a dark cloud over the revival of Biogen’s (BIIB) Tysabri drug, the Wall Street Journal reported that two multiple-sclerosis patients treated contracted a potentially deadly brain infection. Biogen and Elan (ELN), its marketing partner, said there are no plans in the pipeline to recall the once-withdrawn drug or restrict its use, and said both patients who contracted progressive multifocal leukoencephalopathy are alive…FINANCIAL TIMES: According to people close to the companies, the Financial Times reported that ArcelorMittal (MT) is considering a counter-bid for miner Alpha Natural Resources (ANR), a move which may disrupt a bid by Cleveland-Cliffs (CLF) for Alpha. ArcelorMittal is said to be mulling other options, including waiting for the deal to fall apart or waiting to buy the combined company…HANDELSBLATT: A person familiar with the situation said that General Motors (GM) will report a multi-billion dollar Q2 loss that will be higher than Ford’s (F). The source called General Motor’s numbers “disastrous,” Handelsblatt repoted…
Apple-AAPL: An overreaction to Jobs’ poor health rumors - BusinessWeek
Despite continued strong demand for its new 3G iPhones, some of Apple’s (AAPL) investors remain concerned, mainly about CEO Steve Jobs’ health. Also, Apple’s modest forecast on profit margins for 2009 shocked investors. Shares have slumped to $160, down from $189 on June 5. Matthew Kather of WR Hambrecht, is one pro that thinks things really aren’t so bad for Apple. Kather expects Apple’s stock to continue to outperform the broader tech market, and despite possible near-term consumer spending challenges, Apple will demonstrate excellent growth. He advises clients to use pullbacks in the stock to accumulate shares. Kather says people are overreacting to rumors regarding Jobs’ health. He recently raised his 2009 target to $257 from $238. Charlie Wolf of Needham, who rates Apple a strong buy, with a $240 target, says the rumor isn’t material to the stock because Jobs, according to his sources, isn’t sick and continues to run the company.
Two patients treated with Biogen’s Tysabri report brain disease-WSJ
In what may cast a dark cloud over the revival of Biogen’s (BIIB) Tysabri drug, the Wall Street Journal reports that two multiple-sclerosis patients treated contracted a potentially deadly brain infection. Biogen and Elan (ELN), its marketing partner, said there are no plans in the pipeline to recall the once-withdrawn drug or restrict its use, and said both patients who contracted progressive multifocal leukoencephalopathy are alive. The drug was removed from the market in 2005 after three cases of PML were reported; the new cases are the first reported since Tysabri was returned to the market in 2006. The WSJ says that uncertainties over the risks of the drug are included in the reasons why no major pharmaceutical company offered to bid for Biogen last year.
General Motors to report multi-billion dollar Q2 loss-Handelsblatt
According to a person familiar with the situation, General Motors (GM) will report a multi-billion dollar Q2 loss that will be higher than Ford’s (F). The source called General Motor’s numbers “disastrous.”
ArcelorMittal may make a new offer for Alpha Natural Resources-FT
Steelmaker ArcelorMittal (MT) is considering making a counter bid for U.S. coal mining company Alpha Natural Resources (ANR). Cleveland Cliffs (CLFQM), an American iron ore mining company, has made a cash and stock bid for Alpha. ArcelorMittal may decide to buy Cleveland Cliffs and Alpha after they have merged, or attempt to wait for the deal to fail.
Even bullish investors worry about home-equity-WSJ
According to the Wall Street Journal’s “Heard on the Street,” even bullish investors are beginning to worry about home-equity loans. Despite a recent improvement in the loans, a sign of encouragement for banks, certain types of loans including “piggyback” loans still pose problems. Analysts at Goldman Sachs believe home-equity losses won’t peak until Q109, even though JP Morgan (JPM) CEO Jamie Dimon recently commented delinquencies could be stabilizing. The WSJ believes investors should use caution when it comes to First Horizon National (FHN), Wells Fargo (WFC) and E*Trade (ETFC), lenders with heavy exposure to home-equity loans written by third parties, and stick with banks that made their own loans such as Comerica (CMA), Regions Financial (RF) and BB&T (BBT).
Investment banks can recover, Deutsche Bank’s Ackermann says-NY Times
Investment banks may be able to rebound strongly from the credit crisis, Deutsche Bank (DB) CEO Josef Ackermann said. In order to do so, the banks will have to reduce the complexity of some of their financial assets, disclose more of their balance sheets, and agree to closer regulation of their activities, he said.
Lehman trying to unload mortgage securities-New York Post
Lehman Brothers (LEH) is following Merrill Lynch’s (MER) lead to clean up the balance sheet in order to reduce its leverage as it tries to shop around billions of dollars in mortgage securities. The bank is engaged in talks for over $30 billion in commercial assets with potential buyers.
Nokia-NOK cuts prices of handsets-UK Times
Nokia (NOK) has decreased prices of its handsets up to 10% as global market share competition increases. Manufacturers are seeing less demand in Western Europe, especially for expensive handsets, whereas emerging market sales are surging for cheaper phones.
Gates fund trashes Waste Management bid-Reuters
Bill Gate’s investment arm has asked Waste Management (WMI) to walk away from its offer for Republic Services Inc. (RSG).
Nvidia to call it quits with its chipset business-DigiTimes
According to sources close to the situation, Nvidia (NVDA) has decided to “throw in the towel” and will quit the chipset business.
Better than expected jobs data sends futures higher
U.S. equity futures are now pointing to a higher open. The market eagerly awaited the monthly employment figures and they were not disappointed. A loss of 51K jobs was reported, versus an expected loss of -75K. On the other hand, the unemployment rate increased more than anticipated, reaching 5.7% versus an expected 5.6%. However, the futures immediately jumped after the release of the numbers and are now pointing to a higher open.
Biogen Idec-BIIB & Elan Corp-ELN host a conference call at 8:30am on 8/1
Conference Call will discuss the recent events related to TYSABRI
Las Vegas Sands-LVS target to $56 from $85, maintain Positive@SUSQ
Susquehanna said LVS’s results were mixed but they remain bullish on the company’s long-term prospects.
Biogen Idec-BIIB estimates lowered after two new cases of PML@DBAB
Deutsche still expects Tysabri sales to grow to $2B, but thinks near-term growth could slow following the two news cases of PML. The firm lowered their target to $58 and maintains a Hold rating.
Dolby Laboratories-DLB: Impressed by company’s results, reiterate Buy@KBRO
Kaufman Bros. believes that Dolby’s shares are undervalued at these levels.
Thinkorswim-SWIM upgraded to Outperform from Market Perform@BMOC
BMO Capital upgraded SWIM following the better than expected Q2 report. Target $15.
Biogen Idec-BIIB: Worry that new PML cases are just the beginning@BARD
Baird said the new PML cases will erode sentiment beyond today, and when combined with Avonex competition, they recommend avoiding the stock. Target to $55 from $67. Shares are Neutral rated.
Yingli Green Energy-YGE volatility Elevated into EPS
YGE, a vertically integrated photovoltaic (PV) product manufacturer in China, closed at $16.86. YGE is scheduled to report Q2 EPS on August 6. YGE August option implied volatility is at 101, September is at 90; above its 26-week average of 88 according to Track Data, suggesting large price movement.
Schering-Plough-SGP receives “not-approvable” letter from FDA for Sugammadex
The U.S. Food and Drug Administration has issued a “not-approvable” letter for sugammadex sodium injection for the reversal of muscle relaxation during general anesthesia. “We are surprised and disappointed with this action, especially given that sugammadex received a unanimous recommendation for approval by the FDA Advisory Committee on Anesthetics and Life Support in March of this year,” said Thomas P. Koestler, Ph.D., executive vice president and president of Schering-Plough Research Institute. “Sugammadex represents the first major pharmaceutical innovation in the field of anesthesia in two decades. We remain committed to bringing this important medical advance to those who are waiting for it in the United States, and plan to work with the agency to address the issues, which are primarily related to hypersensitivity/allergic reactions.” There were no issues related to the efficacy of sugammadex.
ImClone-IMCL downgraded to Hold from Buy@SBSH
Citigroup downgraded shares despite thinking the initial offer from Bristol Myers (BMY) will be raised as they do not advise chasing shares at current levels. Target raised to $73 from $56.
United Therapeutics-UTHR target raised to $134 from $108@LTCO
Ladenburg raised their target after the company reported better than expected Q2 results and recommends investors buy on any price weakness. Shares remain Buy rated
Biotech: BIIB & ELN stocks could experience substantial volatility today@LEER
It has been reported that two cases of PML have been confirmed in MS patients being treated with Tysabri in Europe. By showing a successful intervention with the use of plasmapharesis, this event could create an environment which would be positive in the L-T for the drug. LEER doesn’t believe the FDA would take Tysabri off the market as there haven’t been any confirmed cases in the U.S.
Jim Cramer’s “Mad Money”
Cramer defended calling the bottom in the markets on last night’s show. He said he did not mean that all stocks had bottomed, but rather that the time is right to begin buying stocks as they go down. Cramer then returned to a theme which he said investors should be celebrating 365 days a year, the wind and solar stocks. Cramer said he expects at least four more years of strength in the green stocks, and reiterated his buys on Owens Corning (OC), Trinity Industries (TRN) Cramer’s favorite in wind power, and Mastec (MTZ). In the solar industry, Cramer reiterated his buy on First Solar (FSLR), a company he called the best of breed in the solar industry. Cramer did warn that Congress’ eighth delay in passing a bill to provide investment tax credits for wind and solar may hurt both industries to the tune of $11B in lost investments. However he remains confident that the measure will eventually pass. Next, Cramer talked with Peter Miller, National Oilwell Varco (NOV) chairman, president and CEO, about the company’s outlook amidst falling oil prices. Miller said the demand for new oil rigs is not declining with oil prices. He said the company’s backlog extends well into 2011. Miller touted the company’s current oil rigs as extremely safe and environmentally friendly. Cramer reiterated his buy on National Oilwell Varco, calling it the “single best drilling-related company to own.” In the “Sell Block” segment, Cramer looked at a recent New York Times article which reported that the instances of Type 2 Diabetes in children increased 10% to 12% a year. Prescriptions for these children between 2001 to 2007 were up 151%. In light of the news, Cramer released Novo Nordisk (NVO), the global leader in insulin, from the sell block, called the company a buy. Cramer called the company’s new diabetes and weight-loss drug, Liraglutide, one of the biggest prospective drugs he’s ever seen. MAD MAIL: Cramer defended his positive call on Research In Motion (RIMM) by again stating that the market is big enough for both it and Apple’s (AAPL) iPhone. SUDDEN DEATH: (Bullish) none; (Bearish) CHA and GW. LIGHTNING ROUND: (Bullish) HK; AGN; KO; PEP; FRO; NAT. (Bearish) MA; ALJ; SBLK; CBS; ACE.
Fast Money position recap: First Moves- Jeff says stay away form ELN, Guy likes long CELG Tim likes FCX, Karen likes short BBT.
Macke Owns (EMC), (DIS), (ATVID), (MSFT); Adami Owns (C), (AGU), (BTU), (GS), (INTC), (MSFT), (NUE); Finerman Owns (GS); Finerman’s Firm Owns (MSFT), (SUN), (TSO), (TYC), (VLO), (RIG), (UFS); Finerman’s Firm And Finerman Own (C) Leaps; Finerman’s Firm Is Short (XLF), (BBT), (IYR), (IJR), (MDY), (SPY), (IWM), (COF); Seymour Owns (AAPL), (CSCO), (F), (MER), (MSFT), (INTC); Seygem Asset Management Owns (VIP), Gazprom; Seygem Asset Management Is Short (RSX).
Financials could find some footing today on the positive jobs data this morning. Keeping things short and sweet with timeframes has been working. BIIB looks to fall with ELN and could find further weakness without buyers wanting to buy this knife into uncertainty. Tech and financials could show some muster today. TGIF. Pick plays with a high probability of success, run technicals through support and resistance, plan the trade and trade the plan, have focus and patience. Great luck and HappyTrading. This is a snapshot of our CNBC portfolio which ended at #173 out of 700,000 portfolios, dlbnext a trader in our room calculated that we ended up in the TOP .00247 percentile. In the near future we will be managing a couple portfolios for everyone to follow and we will kick ass. #25 rank had $2.5 million and we ended up at $2.1 million but on the picture below, they actually pegged ours at $2.65 million but after the contest was over based on locked prices for the next day I believe. We would have won the contest had it ran for 2 days longer due to our all-in on the airliners before airliners exploded on July 22nd Tuesday! Again this is not a guess, it is a fact. 
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