Thursday Morning, June 28th
Dow Stock News
According to Reuters, Citigroup (C) was cleared in an insider trading case in Australia.
The Wall Street Journal writes that Microsoft (MSFT) will sell low-cost computers in India set up with educational software.
INTC Intel Lehman Brothers Upgraded from Equal-weight to Overweight $24 to $28
Ice Man Stocks
Breakouts the Ice Man may consider trading:
JCI 1.16
NVTL 26
CRDN 75.50
NOC 78
LLL 100
ANAD 14
IRF 38
KLAC 57
ADSK 78
Regular Trades the Ice Man may consider:
EMAG Above 9.75
UTSI Above 5.40
AEIS Above 22.50
VCLK Above 29.60
PFCB Warning 36.20 Above 36.75
PNRA 47
NUAN 17.20 Warning, 17.95 Gap
CCMP 37
SYX 21.50 Warning 22 Breakout
DMRC 10.05 Bid
NTE 12.25 Bid
MENT 12.30 Bid Coming Off A Bottom
Dollar Man Ideas:
FTRS Above 1.00
TNL Above .29
Media Commentators
Cramer's Comments:
Part 3 of Cramer´s Education segments will be posted under our Education section today.
Gorilla Trades:
Special Situation Picks:
A. M. Castle & Co. (CAS)
New Potential Buys:
Orbital Sciences (ORB): ABOVE $21.20, with a $23.50 first target, a $27 second target, and a $19 stop loss. Confirmation Volume Area = 570K Risk Rating = 5
Ice Cold Commentators
Break Man Video Summary:
Break out buy watch list for short term gains June 28 includes: AMAT, ANAD, AMSC, VRGY, ERES, LBIX.
Several candidates for break out or pullback plays for at least short term gains by buying the break out on good volume and selling at least some on the first day. http://stocktiger.com
Swing Man Market Recap:
The market staged an impressive rally today that was lead by the techs and semiconductors. The Dow/S&P gained 0.7%-0.9%, the Nadaq/NDX gained about 1.3%, the Russell 2000 gained 1.5%, and the SOX gained a whopping 2.2%. Review my Live Alert email from last night, I stated the following, which is exactly what occured on Wednesday:
'If the general market is going to avoid breaking down from current levels, the Techs will have to come to the rescue again. I'd watch them closely during tomorrow's action. Durable goods orders will be reported before the open tomorrow, and the FED starts their FOMC meeting.
The market currently appears to be at a 'breakpoint' it needs to rally here or else it could begin to break down. I now see strong positive divergence in many of the 15 min index charts, and the beginnings of divergence on the 60 min index charts, therefore there is a good chance that the market puts on an oversold bounce soon. '
Today the Techs and SOX lead and pulled up the market.
Because the Nasdaq, NDX, and SOX are so important at the moment, there is no need to show the charts of the Dow and S&P as they are simply being lead by the tech area.
Both the Nasdaq and NDX bounced exactly off their uptrend lines and respective 50 day MA's. Again, no need to show all the index charts, here's the chart of the Nasdaq for simplicity purposes. As long as that uptrend lines holds, then so does the market. Also, the SOX closed right on the 20 day MA. Again, as long as tech remains strong, then the market will hold up and still has the potential to push back up to new highs. Again, I've been saying all along to keep your eye on tech.
Remember, Thursday could be a big day and very volatile! The Fed makes their overnight policy announcement at 2:15. The market would like to see any indications that inflation is in check. Again, it could be volatile and whippy so use caution tomorrow.
Thursday could be a crutial day for the markets and could decide if the market is going to push up to new highs or fizzel out here. Todays rally looked pretty impulsive so we'll just have to see.
Also Friday marks the end of the second quarter, therefore it's also possible that we could see some 'window dressing'.
CNBC Fast Money Review
1. Word on the Street
Is the Market Trapped in a Summer Slide?
Najarian: Brokers on fire Wednesday. BSC hedge fund not as bad as expected.
Macke: Tech stocks also rallied.
Adami: ORCL numbers were great. All boats rise.
Inventory Story
Bolling: Demand for gasoline is immense. Own refiners on higher gas prices.
Good Golly, Holly
Bolling: Buy HOC on dip.
Trade To Black
Bolling: Trade is EXC, ETR, CEG.
Rolling iPhone Gathers Moss
Macke: Skeptical about iPhone.
Priceless?
Adami: MA is rich valuation compared to AXP. Buy MA on pullback.
Trade Update: Is NYMEX Still a Buy?
Adami: By Labor Day NMX gets taken out at $165.
Dendreon Daze
Najarian: DNDN is a takeover candidate.
2. The Top 3
Out of Apple's Shadow
Bolling: T will benefit from iPhone sales. Stay away from PALM.
Adami: If RIMM earnings disappoint and sells off, buying opportunity in RIMM.
The Black Box Buyout
Najarian: 30% of all US trading driven by companies with black box.
Macke: Floor of NYX will be ghost town in 2 years.
Bearish Pattern Forming?
Bolling: Sucker's double top. Only 5 days in between peaks. Some short term negatives. Bullish long term.
Macke: Get long stocks when S&P gets down to 1490 and breaks out.
3. Burrito Bull Market
Adami: CMG is a buy.
Bolling: CMG is a buy.
Macke: CMG is a buy.
Najarian: CMG is a buy.
4. Final Trade
Macke: PETM, GTRC are buys.
Najarian: DNDN is a buy.
Adami: RIMM is a buy.
Bolling: USU is a buy.
News and Events Digest
Breaking News
Beazer said it fired its chief account Michael T. Rand for trying to destroy documents as it faces a federal mortgage-lending probe. - WSJ
IIG - the state of Florida has filed complaints against the company.
TOP Tankers Inc. (TOPT) it fired its chief account Michael T. Rand for trying to destroy documents as it faces a federal mortgage-lending probe. - Reuters
Business Objects (BOBJ) said a U.S. appeals court denied an appeal by MicroStrategy Inc. (MSTR) in a patent infringement suit and upheld the verdict in favor of Business Objects. - Reuters
Novellus Systems Inc. (NVLS) said it will cut executive salaries for the rest of 2007 and undertake shutdowns in the third and fourth quarters, as part of a plan to tackle weak semiconductor equipment demand. - Reuters
IBD has an article on Monsanto that says their corn crop is helping the company.
SNP has gone into a heavy oil deal with Venezuela.
C, BAC, and JPM - The Wall Street Journal says be wary of risky debt, they may all be under pressure.
Sphinx has taken a 10.72 percent stake in TOPT.
TASR got an order for 1420 guns.
AOB priced their secondary at 8.50 by Piper.
Media Summary:
Reuters reports that Ford (F) is offering significant month-end incentives to bring buyers in for some of its brands.
Reuters writes that Redhat (RHT) had patent talks with Microsoft (MSFT) a year ago, but the negotiations broke down.
Reuters writes that Nokia (NOK) has seen small local rivals emerge in China as Motorola's (MOT) sales in the country have plummetted.
The Wall Street Journal writes that British Tobacco and CVS could make competing bids for Spanish tobacco firm Altadis that would value the company over $17 billion.
The Wall Street Journal writes that Google (GOOG) is having more trouble hiring and retaining the best talent as stock options vest and some key employees move to start-ups.
The Wall Street Journal also writes that Southwest (LUV) is cutting back on rapid expansion and the purchase of airplanes as its runs into increasing competition.
The New York Times writes that Rupert Murdoch's offer to Dow Jones (DJ) how includes his ability to hire and fire editors.
The New York Times also writes that Nielsen will begin tracking media use on cellphones.
The FT reports that companies around the world are pulling debt deals due to fears that problems in sub-prime markets will cause a rise in interest rates.
Barrons' reports that the iPhone will cause major challenges to the businesses of Palm (PALM) and Research In Motion (RIMM).
M&A Activity:
Canada's Yamana Gold Inc. (AUY) and Northern Orion Resources Inc. (NTO) said on Wednesday they have agreed to merge and cooperate on a proposal buy Meridian Gold Inc. (MTG) creating a three-way merger to form a gold producer with a strong presence in Latin America. Under the deal, Norther Orion shareholders would receive 0.543 of a Yamana share, or C$7.07 based on Yamana's Wednesday closing price. Meridian shareholders would receive 2.235 of a Yamana share plus C$3.15 in cash, totaling C$32.35 per share, Yamana and Northern said. - Reuters
NTAP - sells 16M shares on a financing
IPO Central:
Polypore International Inc. (PPO) priced 15 million shares at $19, raising $285 million in its initial public offering trading for the first time Thursday. The maker of filtration membranes, which is owned by affiliates of private equity firm Warburg Pincus, priced below its estimated range of $20-$22 a share. - MarketWatch
CIT Group Inc. (CIT) and Care Investment Trust Inc. (CRE), a real estate investment and finance company, said they closed the initial public offering of 15 million shares of Care Investment Trust at $15 a share. Care Investment Trust also granted the underwriters a 30-day option to purchase an additional 2.25 million shares to cover any over-allotments. Care Investment Trust is managed and advised by CIT Healthcare, a unit of CIT.The net proceeds of the offering, after deducting underwriting discounts, commissions and expenses related to the offering, will be approximately $209.8 million. Care Investment Trust issued approximately $78.8 million in common shares and used approximately $204.3 million of the net proceeds of the offering to purchase a portfolio of healthcare-related mortgage assets from CIT Real Estate Holding Corporation, a wholly-owned subsidiary of CIT. - MarketWatch
Economic Data:
8:30 - GDP - final
8:30 - Initial Claims
10:00 - Help-wanted Index
2:15 - FOMC policy statement
Upgrades and Downgrades by Sector:
Aerospace Design
SPR Spirit Aerosystems Banc of America Sec Initiated at Buy
Airlines - Passenger
ALK Alaska Air JP Morgan Upgraded from Underweight to Neutral
AMR AMR Corp JP Morgan Upgraded from Neutral to Overweight
CAL Continental Air JP Morgan Upgraded from Underweight to Overweight
LUV Southwest Air JP Morgan Upgraded from Underweight to Neutral
RJET Republic Airways JP Morgan Downgraded from Overweight to Neutral
SKYW SkyWest JP Morgan Downgraded from Overweight to Underweight
Apparel
LIZ Liz Claiborne Credit Suisse Upgraded from Neutral to Outperform $37 to $45
Biotech
CRL Charles River Banc of America Sec Downgraded from Buy to Neutral
Broadcasting
CRWN Crown Media Oppenheimer Initiated at Buy $9.25
Business Services
PRAA Portfolio Recovery Assoc. Jefferies & Co Upgraded from Hold to Buy $50 to $68
Business Services
UAL UAL Corp JP Morgan Upgraded from Underweight to Overweight
Computer Hardware
ELX Emulex RBC Capital Mkts Downgraded from Outperform to Sector Perform
Computer
Intel was upgraded to a target of $28 by Lehman. Upgraded
CISCO - Upgraded to Buy from Neutral with $31 target by Merrill Lynch. Upgraded
Computer Software
RHT RHT - SOLE does not like, continue to sell. Cut
DRIV DRIV - Piper says to continue to buy, but they lowered their target to $61, particularly buy on weakness.
Environmental Prod
TRS Trimas Jefferies & Co Initiated at Buy $14
Finance Companies
COF COF - Target $96 from $80 by First Boston. Cut
Gaming Operations
GTM GulfTerra Energy Morgan Keegan Upgraded from Mkt Perform to Outperform
Gaming Operations
TRMP Trump Entertainment Bear Stearns Upgraded from Underperform to Peer Perform
Health-Beauty Prod
BARE Bare Escentuals Banc of America Sec Upgraded from Neutral to Buy
Healthcare Equipment
LUX Luxottica UBS Upgraded from Neutral to Buy
Healthcare Info Tech
EIHI Eastern Insurance Keefe Bruyette Initiated at Outperform $19
Healthcare Services
BIOS Bioscrip Piper Jaffray Upgraded from Market Perform to Outperform
Healthcare Services
CVD Covance Banc of America Sec Upgraded from Neutral to Buy
Industrial Equipment
AME Ametek Friedman Billings Initiated at Outperform $44
Insurance
CNA CNA Financial Credit Suisse Downgraded from Neutral to Underperform $46
Mining - Minerals
LCC US Airways JP Morgan Upgraded from Neutral to Overweight
Mining Non-Ferr Metal
FCL Foundation Coal Banc of America Sec Initiated at Buy
Publishing
SSP EW Scripps JP Morgan Upgraded from Neutral to Overweight
Real Estate
BPO Brookfield Pptys BMO Capital Markets Upgraded from Market Perform to Outperform
Real Estate
YSI U-Store-It Lehman Brothers Downgraded from Overweight to Equal-weight
Recreation
OPCO CRWN was upgraded by OPCO to 9.25. Upgraded
REITs
EXR Extra Space Storage Lehman Brothers Initiated at Overweight $20
KIM KIM - reiterate Sell at Smith Barney and could go below $66 price target
Restaurants
SBUX SBUX - upgraded to Overweight at TWPT Upgraded
Retail Trade
BBBY BBBY - price target lowered to $36 at Piper Cut
BBBY BBBY - price target lowered to $34 at Bear Stearns Cut
Semiconductors
MXIM Maxim Integrated Bear Stearns Upgraded from Peer Perform to Outperform
IMOS IMOS - Merriman is positive on the stock and thinks it could be a takeover in the $15.32 range. Positive
Telecommunications
TESO Tesco Bear Stearns Initiated at Outperform $40
TESO TESO - initiated with Outperform Bear Stearns Initiated
CHA China Telecom UBS Downgraded from Neutral to Reduce
RCCC Rural Cellular Stanford Research Downgraded from Hold to Sell $34
Telecommunications
CHA CHA, a Chinese Stock was downgraded by UBS Warburg, and has support around 58.65. Downgraded
Utilities
PNM PNM Resources Jefferies & Co Upgraded from Underperform to Hold $23 to $27.50
Utilities
PNM PNM - upgraded to Buy at Jefferies Upgraded