Posted By Optiondragon for myhappytrading.com, a site made by traders and investors for traders and investors.
From Briefing.com
Periodicals Wrap-Up for Friday, August 29th
WALL STREET JOURNAL: The Wall Street Journal reported that doubts have been once again raised about the ability of Delphi Corp (DPHIQ) to survive as a stand-alone company, increasing speculation the auto-parts maker will be liquidated. People involved in the process said some of Delphi’s U.S. plants could be taken over by General Motors (GM), its former parent…The Wall Street Journal suggested that after “another dismal quarter” that showed that Sears Holdings’ (SHLD) strategy is failing, activist investor Edward Lampert should fire the company’s chairman — himself…SEATTLE TIMES: The Seattle Times reported that the $31M acquisition of Celebrate Express (BDAY) by Liberty Media (LMDIA) is expected to today become final after shareholders approved the deal yesterday…REUTERS: According to Brad Stevens, Starbucks’ (SBUX) vice president of customer relationship management, Reuters reported that the coffee chain will use more special deals, including free product coupons, in an effort to increase sagging U.S. coffee sales…WSAZ.COM: Officials confirmed that one person died and another was burned in an explosion in a Bayer CropScience Plant (BAYRY) located in Institute, West Virginia, WSAZ.com reported…
Asian Markets Wrap-Up for Friday, August 29
Exporters led gains in most Asian countries, following the release of a report showing that U.S. GDP grew more than expected in Q2. JAPAN: The Nikkei 225 surged 2.39%, reaching 13,072.87. Nippon Steel (NISTY) climbed 5.4%, and JFE Holdings (JFEEF), another steelmaker, rose 4.7%. Mazda Motor (MZDAF) advanced 3.4% and Nintendo (NTDOY) rallied 8.4%, after increasing its 2008 profit guidance. Fujifilm Holdings Corp. (FUJI) retreated 12%, after the company slashed its EPS guidance by 27%. CHINA: Steelmakers and banks spearheaded an advance, as the CSI 300 Index jumped 2.39% to 2,391.64. Baoshan Steel gained 3.82%, after reporting higher than expected profits. Shanxi Taigang Stainless Steel Co. surged 4.7%. Bank of China (BACHF) added 1.36% after reporting higher than expected profits. Bank of Communications Co. rose 1.7%. AROUND ASIA: South Korea’s KRX 100 added 0.13%, while Australia’s S&P/ASX 200 climbed 1,36% and Indonesia’s Jakarta Composite gained 0.98%…India’s economy expanded 7.9% in Q2, the slowest advance since 2004.
Companhia Vale do Rio Doce-RIO: Overreaction to economic concerns- BusinessWeek
Shares of Brazil’s Vale do Rio Doce (RIO), the world’s largest producer of such iron ore, have been pressured on concern that the U.S. economic slump will soften the demand for the iron ore used in steelmaking. In addition, Vale is a top producer of nickel, and its other businesses include copper, gold, and potash. David Riedel, president of Riedel Research Group, says the Vale stock decline is an overreaction to near-term economic weakness. A major acquisition is in the works, he says, “which should drive the stock up, and we rate it a buy.” Leo Larkin of Standard & Poor’s, who also rates Vale a buy, with a target of $35.
4 Kids Entertainment, like many others, lose big in auction-rate securities-WSJ
Auction-rate securities are putting a strangle hold on hundreds of companies. 4 Kids Entertainment (KDE), for one, has lost millions and is not included among those–individuals, charities and municipalities–who are as part of Wall Street’s $50B of settlements, reports the Wall Street Journal. “The strength of the claim counts, and the smaller investors with less financial expertise have a better case,” says Andrew Cuomo, New York state’s attorney general. However, companies like 4 Kids say they were not given sufficient information about what they were sold or the circumstances surrounding their losses. Legal battles will follow. Says Michael Kim, a New York attorney who represents 4 Kids, Northgate Minerals Corp. (NXG), ABM Industries (ABM) and others who have about $600M in illiquid auction-rate securities: “If a broker puts inappropriate securities in your account on its own, it does not matter how sophisticated you are.”
For oil traders it’s the weather that matters-WSJ
For oil traders the bigger story is Tropical Storm Gustav and not the affects of Russia’s invasion of Georgia and the impact on crude, according to the Wall Street Journal’s “Heard on the Street”. Just look at West Texas Intermediate crude. It’s been up as Gustav makes its presence felt in the Gulf of Mexico, and the 1.4M barrels of daily oil production there. And there’s Louisiana, its 17% of U.S. refinery capacity and nightmares of hurricanes Katrina and Rita. What can help the oil bulls? OPEC could, but there’s always the hope for a bitter winter up ahead.
New BlackBerry could be released October 2-BoyGeniusReport
According to a source at AT&T (T), the upcoming BlackBerry Bold from Research in Motion (RIMM) will appear in stores on October 2, fully launching on October 6. BoyGeniusReport notes that this information “has not been double or triple confirmed”.
Google, Yahoo! to start ad partnership by October-Seattle Post-Intelligencer
Google (GOOG) CEO Eric Schmidt said even if federal regulators have not approved the deal, the company and Yahoo! (YHOO) will begin their advertising partnership by “early October”. Under the terms of the agreement, Yahoo! will receive from Google online advertisements, which are expected to generate $800M in additional annual revenue for Yahoo!. A representative for the Justice Department did not comment on the status of the partnership review.
U.S. equity futures remain down
Personal income fell 0.7% in July, the biggest drop since August 2005. Real disposable incomes fell 1.7% in July. This is the second straight large monthly drop in the wake of the government stimulus payments. Inflation surged in the month. The core personal consumption expenditure price index rose 0.3% in July compared with June and is up 2.4% in the past year. This is the largest gain since September 2006. Wall Street economists had expected a 0.4% decline in incomes, a 0.2% gain in nominal spending and a 0.3% rise in the core PCE. S&P 500 futures fell 2.80 points to 1,295 and Nasdaq futures dropped 2.5 points to 1,903. Dow industrial futures fell 17 points to 11,678.
Energy Conversion-ENER estimates and target raised@FBCO
Creidt Suisse raised its 2010 EPS estimate following the solid quarter report. Target to $86 from $80. Shares are Outperform rated.
Marvell Tech-MRVL: Company’s margins are increasing@OPCO
Oppenheimer raised their EPS estimates for Marvell’s 2009 and 2010, and the firm maintained their Outperform rating.
Marvell Tech-MRVL: Would be buyers of shares on weakness@NEED
Needham would be buyers on weakness related to the company’s conservative sales guidance and reiterates a Buy rating on the stock.
Potash-POT: See rising supply risk as strike continues@JPMS
JP Morgan believes the strike at Allan further limits supply in an already tight global potash market. Without a settlement, JP Morgan thinks POT may soon be forced to declare force majeure due to an inability to meet current contractual commitments. Shares remain Overweight rated.
Energy Conversion-ENER solid beat despite some confusion@COWN
Cowen said Q4 EPS was above the Street but there was some confusion caused by some news services comparing GAAP actual to Street non-GAAP. Also, Q1 gross margin guidance was for PV product only and did not include higher-margin royalty revenue as Street estimates did.
Google-GOOG: Channel checks suggest solid business trends@WBLR
William Blair’s checks indicate GOOG’s fundamentals are likely trending in line with or slightly ahead of Street expectations. However, they point out the strengthening dollar could be more of a drag than currently expected, and have reduced their estimates slightly to reflect this. Shares remain Outperform rated.
Energy Conversion-ENER downgraded to Neutral from Buy@PIPR
Piper downgraded shares on valuation but raised their target to $73 from $58.
Energy Conversion-ENER target raised to $96 from $57, reiterate Buy@JEFF
Jefferies raised their estimates following ENER’s strong quarter.
Dell Inc-DELL reports Q3 EPS 31c vs. consensus of 36c
DELL reports Q3 revenue $16.4B vs. consensus of $15.95B.
LDK Solar-LDK signs 7-year wafer supply agreement
LDK Solar Co., Ltd announced that it has signed a seven-year contract to supply multicrystalline solar wafers to Republic of Korea-based Hyundai Heavy Industries Co., Ltd. Under the terms of the agreement, LDK Solar will deliver approximately 440 MW of multicrystalline silicon solar wafers to Hyundai Heavy Industries Co., Ltd over a seven-year period, commencing in 2009 and extending through 2015. Hyundai Heavy Industries Co., Ltd will make a down payment representing a portion of the contract value to LDK Solar.
Presentation offers insight into Freddie Mac’s reassurances-Washington Post
A presentation by top executives at Freddie Mac (FRE) offered some perspective into why claims of the amount of capital on hand has failed to reassure investors thus far, the Washington Post reported. In the presentation, the mortgage giant acknowledged it may have some difficulty meeting a government standard that requires it to maintain a financial cushion, capital, to absorb potential losses. Additionally, Robert Willens, a consultant, believes Freddie Mac may face a charge of $10B, although the company believes it will not need such a steep write-down.
Speculation is McCain to name Alaska Governor Sarah Palin as V.P.-CNBC
Fast Money position recap- First Moves: Joe likes AMZN, Guy likes LMT, Karen likes GS, Jon likes AFL.
Adami Owns (AGU), (C), (BTU), (GS), (INTC), (MSFT), (NUE); Jon Najarian Owns (C), (JPM); Jon Najarian Owns (AAPL) Calls, (MRVL) Calls, (NKE) Calls, (XLF) Calls, (AFL) Calls, (PMCS) Calls, (TIE) Calls; Jon Najarian Owns (UNG) Call Spreads; Finerman Owns (GS); Finerman’s Firm Owns (MSFT), (SUN), (TSO), (VLO); Finerman’s Firm And Finerman Own (C) Leaps; Finerman’s Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM); Finerman’s Firm Is Short The British Pound; Terranova Owns (AAPL), (RIMM), (EOG), (FCX), (GS), (KOL), (NOV), (POT), (SA), (X), (VLO); Terranova Owns (AIG) Puts; Terranova Is Long Dec. 2008 Reformulated Gasoline Futures; Terranova Is Long Crude Oil Time Spread (Long Oct. 2008 Crude Oil Futures, Short Dec. 2012 Crude Oil Futures).
Last day of summer and the bigger traders and investors will be back after the holiday weekend. Have a great weekend! The JPM note on POT should move the fert names. The market looks to cycle down from yesterday’s highs….here we are at 1300 again, if we can hold these levels and consolidate here for the foreseeable future that would be bullish for the market. Pick plays with a high probability of success, have focus and patience, run technicals through supply and demand. Great Luck and Happytrading, please visit our new site at myhappytrading.com!
Think Fractally, nature and the markets are both run on formulas.
The end of a rainbow spotlights a solitary car traveling down a remote road in North America. Since a rainbow is an optical illusion, it doesn’t have an actual endpoint. Instead, a rainbow’s position continually shifts depending on the viewer’s perspective.
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