Submitted By Optiondragon
From Briefing.com
Periodicals Wrap-Up for Thursday, August 7th
WALL STREET JOURNAL: Nissan Motor (NSANY) and Chrysler are already working together on pickups and subcompact cars. Now the two are discussing jointly producing mid-size cars that would be sold in the U.S. under Chrysler’s name, the Wall Street Journal reported…Citigroup (C) may buy back $5B to $8B of auction-rate securities from its own customers, though the Wall Street Journal said this move may pressure other Wall Street firms to give investors of those securities their money back. One person familiar with the matter said Citigroup was nearing a deal with regulators to resolve allegations of wrongdoing, and a preliminary agreement could be reached as early as today…INVESTOR’S BUSINESS DAILY: Back in March home health nursing company Amedisys (AMED) paid $395M for TLC Health Care Services and it immediately took them to a higher level. At the time CEO William Borne said: “This is a transformative transaction for Amedisys.” And so it was, according to Investor’s Business Daily’s “The New America”. The company picked up TLC’s 92 home health agencies and 11 hospice agencies in 22 states, and it boosted its nursing agencies to 442 and its hospice agencies to 240. It also gave Amedisys a national presence by expanding its operations to a number of new states…BOSTON GLOBE: The Boston Globe reported that Procter & Gamble (PG) will close its second Gillette packaging plant in Devens by by the end of 2010. Additionally, Procter will cut 215 jobs, or about 9% of its Massachusetts workers, at its manufacturing plant in South Boston…
Asian Markets Wrap-Up for Thursday, August 7
Stocks declined in most major Asian countries, after several companies reported lower than expected profits. JAPAN: Banks spearheaded a retreat after Chuo Mitsui, a bank, reported that its Q1 earnings sank 52%. The Nikkei 225 lost 0.98%, to 13,124.99. Chuo Mitsui dropped 4% and Mizuho Financial Group (MFG) declined 3.5% while Shinsei Bank (SKLKF) fell 6.7%. Nippon Telegraph & Telephone (NTT) retreated 6.6%, after earnings at two of its regional subsidiaries dropped sharply. Some exporters rose, after the yen weakened against the dollar. Suzuki Motor (SZKMF) advanced 2.7%, while Fuji Heavy Industries (FUJHY) climbed 4.4%. HONG KONG: Stocks advanced slightly, as a decline in oil prices increased optimism about companies’ profits. The Hang Seng Index increased 0.7%, to 22,104.20. Clothing retailer Espirit rose 3.8%, while Li & Fung, which manufactures various consumer items, advanced 3.1%. Standard Chartered (STAN), a bank, gained 4.4% after reporting that its 1H08 profit surged 31%. Cathay Pacific Airways (CPCAY) declined 3.9% after reporting a 1H08 loss of $85M. AROUND ASIA: China’s CSI 300 Index inched down 0.05%, while South Korea’s KRX 100 declined 0.97% and Taiwan’s Taiex inched down 0.02%… Toyota (TM) said its net income sank 28.1% in Q2.
As Citigroup cleans up its auction rate securities, other firms pressured-WSJ
Under intense government pressure, Citigroup (C) is working to settle its problems in the auction rate securities market, including possible buy backs totaling as much as $8B, according to the Wall Street Journal’s “Credit Markets” column. As the largest issuer of municipal related auction rate securities, other firms may follow Citigroup’s lead to pay back its investors.
U.S. equity futures point to a lower open
U.S. equity futures are pointing to a lower open as the price of oil is moving higher on renewed concerns that tensions over Iran’s nuclear program could lead to higher oil prices. With Iran developing nuclear capabilities has come strong words for the world’s powers to place economic sanctions on Iran. Despite those cries Iran said it will not scale back its nuclear program. The averages started lower yesterday and slowly rallied throughout the day to extend the previous day’s rally. It will be interesting to see if the market can make it three days in a row.
U.K. denies advanced kidney cancer treatment drugs-BBC
The National Health Service in the U.K. has denied patients with advanced kidney cancer four drugs because they have concluded that they do not offer value for the cost. Some studies say they offer significant rates of survival. About 1,7000 of the nearly 7,000 people annually diagnosed with kidney cancer in the U.K. have advanced kidney cancer. The drugs are Genentech’s (DNA) Avastin (bevacizumab), Bayer’s (BAYRY) Nexavar (sorafenib), Pfizer’s (PFE) Sutent (sunitinib), and Wyeth’s (WYE) Torisel (temsirolimus).
U.S. equity futures continue to point to a lower open
Futures continue to point to a lower open. Two Dow components reported disappointing earnings and the price of crude oil is moving higher are some of the reasons for the weakness today. There was also the release of the initial jobless claims for the week and they came in at 455,000 versus an expected 425,000. The continuing claims were 3.3M versus an expected 3.25M. The report had a negative effect on the futures.
Israel buys 90 F-161 fighter jets capable of reaching Iran-AP
In a response to Iran’s growing nuclear capability, Israel has purchased 90 F-161 fighter jets and will receive another 11 late next year, reports the Associated Press. The planes carry enough fuel to each Iran. Israel also bought two Dolphin submarines from Germany that are reportedly capable of carrying nuclear warheads.
Lehman’s Fuld pursuing multiple strategies to raise capital-NY Post
According to sources, Dick Fuld, the CEO of Lehman Brothers (LEH), has held discussions in recent days with various private-equity and foreign investors about the possibility of raising more capital, while, at the same time, ensuring the investment bank “remains in one piece”. Along with president Bart McDade, Fuld is said to be “upbeat” and working on several strategies and looking for the “most feasible way” to restore confidence in the company, including talks with investors from Asia. Sources say several private-equity firms have expressed interest in acquiring a majority stake of Lehman’s asset management business, although no formal sale has been launched. The sources also say Fuld isn’t looking to “dump securities at rock-bottom prices.”
Martin Marietta-MLM reports Q2 EPS $1.52 vs. consensus of $1.84
Reports Q2 revenue $598.7M vs. consensus $611.56M
Transocean-RIG upgraded to Buy from Hold@STFL
Stifel upgraded RIG citing valuation. Target $158.
Devon Energy-DVN target raised to $136 after solid Q2 results@DBAB
Deutsche Bank raised their estimates to reflect the company’s Haynesville Shale potential and finds the stock significantly undervalued at current levels. Shares remain Buy rated.
Flowserve-FLS to Supply Coke-Cutting Pumping System to refinery in India
Flowserve Corporation announced it will supply Indian Oil Corporation’s Gujarat Refinery with a special coke-cutting pumping system for the heavy oil upgrading project.
Concur Tech-CNQR extends and expands stock repurchase program
Concur has modified its current stock repurchase program by increasing the number of shares of its common stock eligible for repurchase from 2M to 5M and extending the program through January 2011. The company has repurchased over 1.4 million shares under the current program, all within the first three quarters of the current fiscal year.
Citrix Systems-CTXS added to Conviction Buy List; maintain Buy@GSCO
CA, Inc.-CA removed from Conviction Buy List; maintain Buy@GSCO
First Solar-FSLR initiated with an Overweight, target $344@TWPT
Thomas Weisel believes FSLR’s low cost structure insulates it from pricing pressure that traditional PV is facing.
Alexion Pharma-ALXN secures patent for ALXN6000
Alexion Pharmaceuticals, Inc. announced that the U.S. Patent and Trademark Office has issued Patent Number 7,408,041 titled, “Polypeptides and Antibodies Derived from Chronic Lymphocytic Leukemia Cells and Uses Thereof.” The patent is assigned to Alexion and includes claims that encompass the composition-of-matter of Alexion’s anti-CD200 humanized monoclonal antibody, which is known by its working name, ALXN6000.
Fast Money Position Recap- First Moves: Jeff says sell WMT, Guy likes ANF, Joe likes X.
Macke Owns (MSFT) (IMAX) (COST) (WMT), Macke Is Short (TM), Finerman’s Firm Is Short (IYR) (IJR) (SPY) (MDY) (IWM),Finerman’s Firm Owns (ANF) Call Spread, Finerman’s Firm And Finerman Own (C) Leap (FLS), Finerman Owns (GS), Finerman’s Firm Owns (MSFT) (SUN) (TSO) (VLO), Finerman’s Firm Is Short (XLF) (BBT) (COF), Adami Owns (AGU) (C) (BTU) (GS) (INTC) (MSFT) (NUE), Terranova Owns (YHOO) (CME) (SA) (VLO) (KOL) (RIMM) (IYT) (GOOG) (SU) (FCX) (INTC) (XLF) (BNI).
The market hit 1290 and now is weak after a slew of negative news in the premarket. There should be a pullback today, how big the pullback will be is the unknown. Looking for shorts over longs but i want to see how the market ranges this morning and trades. Pick plays with a high probability of success, have focus and patience, run technicals through supply and demand. Great luck and great trading.
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