Friday Morning, August 10th
SITE NEWS
Read the latest Investor's Health article, "Garlic, the Virus Killer."
http://icecoldstocks.com/investors_health/garlic2.html
Ice Man Stocks
Breakouts the Ice Man may consider trading:
BWA - 95 warning, 96.16 breakout
Regular Trades:
GOL - 25.50
HMIN - 31
RACK - 14
CROX - 48
Depressed stocks the Ice Man may buy:
SBS - 44.10 G, 39.60 G
AMZN - 69.25 G
BIDU - 183.50 G
BOBJ - 39.50 G
AGN - 60.80 G
WHR - 90.35 G
MW - 45.60 G
SHLD - 117.30
BP - 62.35 G
Dollar Man Ideas:
COSI - 5.35
IOTN - 3.50
Media Commentators
Cramer's Comments:
Bullish: INTC, TXN, CSCO, MSFT, SNDK
Zacks:
Sell - KMB
CNBC Fast Money Review
1. DOW PLUNGES ON CREDIT CRUNCH:
The headline: Dow Unravels For Near 400 Point Loss as Bad Home Loan Woes Spread...French Bank BNP Started the Selloff in Morning After Suspending Three Funds With Bad U.S. Securities...
Bolling: The main problem is transparency. Recommends going back and looking at some stocks that were once expensive and have now become cheap. Not all stocks are broken even if the market seems to be breaking down.
Adami: Thinks from a technical standpoint, we have a broken down market. "It doesn´t mean you can´t make money". Buy HPQ.
Macke: “I don´t think anyone makes money in a market like this.’
Najarian: “Every day is a new day in this market,’ good stocks are still worth holding onto. He has a put position in Goldman Sachs which provides him an element of safety, but he also likes KO.
2. CUT-RATE MARKET:
The headline: Fed Stabilized Market Today By Injecting More Liquidity Into Banking System – Will It Go Even Further And Cut Interest Rates This Year?
Adami: Futures traders are now pricing in a Fed rate cut before the September meeting. If the Fed were to do this, the U.S. dollar would get Crushed
Macke: The real danger of a Fed cut here is that the dollar would collapse and that would bring the market down.
Najarian: A cut might prove necessary in the September meeting, but it isn´t necessary today. FRE and FNM are providing enough liquidity for now.
3. The Top 3
1. Tech:
Big tech stocks have been showing resilience this summer in the face of distress from much of the rest of the market.
Najarian: CSCO is holding onto its earnings gains, and e-commerce like EBAY, PCLN, and YHOO have been showing strength.
Adami: This resurgence is because money is flowing out of the energy and commodities sectors and going right into the under-owned tech sector.
Macke: The tech sector is largely protected against issues in the subprime, credit and mortgage industries.
Bolling: : Recommends the Technology Sector ETF (XLF)
2. Drugs:
Another pocket of relative tranquility that seems to be immunized from the financial distress is Big Pharma, which is currently outperforming the market.
Najarian: Cautions drug stocks are faring well but are not bulletproof. Likes names like WYE, GSK and LLY.
Adami: Likes GSK
3. Get Short
If you can´t beat the bears, why not join ‘em? The problems in the credit and housing markets is nothing to downplay and it has exposed many stocks that could be under pressure for a long time to come.
Macke: Short SNE and HD
Bolling: Isn´t selling here; he´s looking for buying opportunities.
Adami: If you believe the dollar is going lower against the yen, the FXY is your move.
Macke: Keep it simple. “Sell until you can´t sleep, If you´re up all night, you´re overexposed.’
4. AFTER-HOURS ACTION: NVDA
The headline: NVDA Jumps After-Hours As Earnings Top Estimates
Adami: NVDA seems to go up whenever the market goes down, “something clearly is in play here.’ Thinks the stock has gotten ahead of itself but it still is worth owning on any dip.
5. HOME DEPOT WRECKED:
The headline: HD Tumbles After Saying It May Cut Deal Price For Supply Unit; A Private Equity Consortium Had Agreed To Buy HD Supply For $10.3B; HD Also Lowers Amount It Will Pay For Buyback.
Bolling: Had been recommending HD because of an active hurricane season. Now that the new predictions are calling for fewer hurricanes he is out of HD.
Macke: A one-time buyer of HD would avoid it now. The news about the deal for its supply unit is a disaster for the company and was a factor in Thursdays broader sell-off.
6. The Final Trade: Your First Move For Friday
Macke: Likes BRK for Warren Buffet. Also, he cautions traders that the last 2 Fridays have been train wrecks for the market.
Najarian: Recommends buying stock in NDAQ for its record volume.
Adami: Thinks the floor is in GSK making it a buy.
Bolling: Likes HPQ.
News and Events Digest
Breaking News
The European Central Bank made a second move to boost liquidity in the financial market Friday, putting 61.05 billion ($83.6 billion) into the euro money markets, having already injected 94.8 billion euros Thursday. - CNBC
Investment Banks including GS, MER, and BSC maybe guilty of not coming clean in earnings reports says the WSJ.
Shamrock takes an activist 5.2% stake in ERES
FCX - added to the Goldman Sachs Conviction Buy List
CTRP - prices a 13M share secondary at $38
Pride International Inc. (PDE) entered a definitive agreement to sell its Latin American land-based drilling and workover business, and its E&P Services unit to GP Investments Ltd. (GPIV11.BR), a Brazilian private-equity firm, for $1 billion. The Houston-based offshore drilling contractor said the deal is expected to close by the end of the third quarter. Pride said proceeds from the sale could be used for general corporate and strategic purposes, including potential funding for the construction of two ultra-deepwater drillships. Pride said the Latin America land business includes 73 land drilling rigs, 135 workover rigs and two lake drilling rigs. The E&P Services unit provides services to complete, maintain and enhance production from gas and oil wells. - MarketWatch
Media Summary:
According to Reuters the Asia central banks put extra cash into the banking systems as markets there fell sharply.
Reuters writes that Man Group, the UK hedge fund, has delays its IPO.
Reuters writes that Toyota (TM) sees slower growth in the US.
Reuters writes that Buick tied Lexus in the JD Power reliability study, the first time the US brand has finished in first place.
The Wall Street Journal writes that Countrywide Financial (CFC) said the credit markets could affect its financial position.
The Wall Street Journal reports that the SEC is checking the books of banks including Bear Stearns (BSC) and Goldman (GS) to see whether they may be hiding mortgage investment loses.
The WSJ writes that profits at refiners are dropping as the price of gas comes down.
The WSJ writes that chip demand drove up profits at Nvidia (NVDA).
The WSJ reports that Electronic Arts (ERTS) and Hasbro (HAS) will create video games based on popular games like Monopoly.
The WSJ reports the niche channels are moving off cable to the internet.
The New York Times reports that Goldman Sachs (GS) size has not protected its stock price.
The NYT reports the Universal Music will begin selling music without copy protection.
FT writes that Chrysler is trying to expand in markets outside the US.
Barron's reports that shares in Emulex (ELX) fell after it reported modest earnings
IPO Central:
IPOs on schedule for week of 8/13/2007:
Cross Match Tech. (CROS). The company provider of biometric technologies, including fingerprint/hand scanning devices and document readers. The company is selling 11.8M shares at the initial range between $14-$16. The company announced Revenues for the last 12 months of $77M and Net Income of $(-11)M. The Lead Manager is Credit Suisse and UBS is Co. Manager. Cross Match Tech. (CROS) is headquartered in Palm Beach Gardens, FL and their website is www.crossmatch.com.
Cumberland Pharmaceuticals (CPIX). The company sells specialty pharmaceuticals to the hospital and gastroenterology markets. The company is selling 6.3M shares at the initial range between $14-$16. The company announced Revenues for the last 12 months of $18M and Net Income of $4M. The Lead Manager is UBS and Jefferies is Co. Manager. Cumberland Pharmaceuticals (CPIX) is headquartered in Nashville, TN and their website is www.cumberlandpharma.com.
Horsehead Holding (ZINC). The company is a zinc recycler producing specialty zinc and zinc-based products. The company is selling 5.6M shares at the initial range between $18-$20. The company announced Revenues for the last 12 months of $553M and Net Income of $76M. The Lead Manager is Friedman Billings and CIBC is Co. Manager. Horsehead Holding (ZINC) is headquartered in Monaca, PA and their website is www.horsehead.net.
MercadoLibre (MELI). The company operates the largest online trading platform in Latin America. The company is selling 16.1M shares at the initial range between $16-$18. The company announced Revenues for the last 12 months of $52M and Net Income of $1M. The Lead Managers are J.P. Morgan and Merrill. MercadoLibre (MELI) is headquartered in Buenos Aires, Argentina and their website is www.mercadolibre.com.
NanoDynamics (NDMX). The company Develops and markets products, advanced materials and technologies for clean energy and infrastructure solutions. The company is selling 6.6M shares at the initial range between $12-$14. The company announced Revenues for the last 12 months of $4M and Net Income of $(-15)M. The Lead Manager is Jefferies and Canaccord is Co. Manager. NanoDynamics (NDMX) is headquartered in Buffalo, NY and their website is www.nanodynamics.com.
Stock Split Announcement:
NVIDIA Corporation (Ticker: NVDA) announced that its board of directors approved a 3 for 2 st stock split and posted stronger-than-forecast quarterly earnings. - MarketWatch
Economic Data:
8:30 Export Prices
8:30 Import Prices
2:00 Treasury Budget
Upgrades and Downgrades by Sector:
Aerospace
DCO Ducommun BB&T Capital Mkts Upgraded from Hold to Buy
Audio-Video Equipmnt
DTSI DTS Kaufman Bros Price Target Raised Buy $28 to $30
Beverages
PAS PepsiAmericas JP Morgan Upgraded from Underweight to Neutral
Biotech
BCRX BioCryst Pharm Caris & Company Price Target Raised Above Average $9.50 to $10
Broadcasting
DTV DIRECTV Credit Suisse Upgraded from Underperform to Neutral $21 to $25
Business Services
LLNW Limelight Networks Friedman Billings Cut Price Target Outperform $25 to $15
MCHX Marchex Kaufman Bros Cut Price Target Hold $15 to $11
ICFI ICF International Stifel Nicolaus Price Target Raised Buy $27 to $28
Chemicals
CHD Church & Dwight Deutsche Securities Upgraded from Hold to Buy $71
GGC Georgia Gulf UBS Cut Price Target Sell $17 to $16
Computer Hardware
ELX Emulex Friedman Billings Upgraded from Mkt Perform to Outperform $20 to $22
NICE Nice Systems First Analysis Sec Upgraded from Equal-Weight to Overweight
PANL Universal Display First Albany Price Target Raised Buy $20 to $23.50
SYNA Synaptics First Albany Price Target Raised Buy $46 to $54
ELX Emulex Caris & Company Cut Price Target Above Average $22 to $20
ELX Emulex UBS Cut Price Target Buy $28 to $24
LXK Lexmark UBS Cut Price Target Sell $44 to $36
STST Argon ST Friedman Billings Cut Price Target Outperform $30 to $26
Computer Services
INSP InfoSpace Stanford Research Upgraded from Sell to Hold
SAPE Sapient Piper Jaffray Downgraded from Outperform to Market Perform
Computer Software
CDNS Cadence Design Matrix Research Upgraded from Sell to Hold
MANH Manhattan Assoc Bear Stearns Upgraded from Peer Perform to Outperform
SPSS SPSS Inc Robert W. Baird Upgraded from Neutral to Outperform $44
BBBB Blackboard Banc of America Sec Resumed Coverage Buy $50
FNDT Fundtech Ferris Baker Watts Price Target Raised Buy $16.50 to $17
UNCL MRU Holdings Kaufman Bros Initiated at Buy $9
APTM Aptimus Merriman Curhan Ford Downgraded from Buy to Neutral
Construction
STRL Sterling Construction Morgan Joseph Price Target Raised Buy $26 to $27
URS URS Morgan Joseph Price Target Raised Buy $53 to $54
Electronics
DEIX Directed Electronics Needham & Co Cut Price Target Buy $12 to $10
Gaming Equipment
CKNN Cash Systems Northland Securities Cut Price Target Outperform $9 to $8
Gold and Silver Mining
HL Hecla Mining CIBC Wrld Mkts Upgraded from Sector Underperform to Sector Perform $9.50
Health-Beauty Prod
SBH Sally Beauty Oppenheimer Cut Price Target Neutral $8.80 to $7.60
Healthcare
KG King Pharms First Albany Upgraded from Underperform to Neutral
SNTS Santarus UBS Downgraded from Buy to Neutral $7 to $3
HWAY HWAY - downgraded to Sell at GS Downgraded
VITL Vital Signs Needham & Co Cut Price Target Buy $66 to $58
MGLN Magellan Health Credit Suisse Upgraded from Neutral to Outperform $49 to $50
Hotels and Motels
RLH Red Lion Hotels Robert W. Baird Upgraded from Neutral to Outperform $14
Industrial Equipment
KTEC Key Technology Needham & Co Price Target Raised Buy $27 to $30
AMSC Am Superconductor Needham & Co Downgraded from Buy to Hold
AMSC Am Superconductor RBC Capital Mkts Downgraded from Sector Perform to Underperform
BGG Briggs & Stratton Robert W. Baird Downgraded from Neutral to Underperform $34 to $29
FLS Flowserve Friedman Billings Downgraded from Outperform to Mkt Perform $78
Insurance
PNX The Phoenix Cos UBS Upgraded from Neutral to Buy
MTG MGIC Investment JP Morgan Downgraded from Overweight to Underweight
AFL AFL - downgraded to Equal Weight at Morgan Stanley Downgraded
Mfg - Paper
UFS Domtar Citigroup Upgraded from Sell to Hold
Mfg-Industrial Goods
KOP Koppers Holdings UBS Upgraded from Neutral to Buy $35 to $38
Mining - Minerals
JRCC James River Coal Bear Stearns Downgraded from Outperform to Peer Perform
Motion Pictures
LGF Lions Gate Entain Wedbush Morgan Cut Price Target Buy $13 to $12
Motor Vehicles
AIT Applied Industrial Soleil Upgraded from Gradually Accumulate to Buy $38
Oil and Gas
CEP Constellation Energy Ptnrs Citigroup Upgraded from Hold to Buy
HLND Hiland Partners Wachovia Upgraded from Mkt Perform to Outperform
HOC Holly Deutsche Securities Upgraded from Sell to Hold $65 to $58
HP Helmerich & Payne Credit Suisse Upgraded from Underperform to Neutral $34
HPGP Hiland Holdings Wachovia Upgraded from Underperform to Mkt Perform
MRO Marathon Oil Citigroup Upgraded from Hold to Buy
NE Noble Corp Credit Suisse Upgraded from Neutral to Outperform $129
TSO Tesoro Petroleum Citigroup Upgraded from Sell to Hold
VLO Valero Energy Citigroup Upgraded from Sell to Hold
Paper and Packaging
BKI Buckeye Tech Citigroup Upgraded from Sell to Buy
Personal Services
CHE CHE - upgraded to Buy at DBAB Upgraded
Regional Banks
UB UnionBanCal AG Edwards Upgraded from Sell to Hold
REITs
ESS Essex Property Banc of America Sec Upgraded from Neutral to Buy
FCH FelCor Lodging Lehman Brothers Upgraded from Equal-weight to Overweight
EQR Equity Res Banc of America Sec Downgraded from Buy to Neutral
Restaurants
EAT Brinker JP Morgan Upgraded from Neutral to Overweight
CPKI California Pizza Friedman Billings Cut Price Target Outperform $26 to $23
Retail Trade
FDO Family Dollar Oppenheimer Downgraded from Buy to Neutral
RSTO Restoration Hrdwr BB&T Capital Mkts Downgraded from Buy to Hold
BKRS Bakers Footwear Roth Capital Cut Price Target Hold $8 to $7
PSUN Pacific Sunwear Roth Capital Cut Price Target Buy $25 to $20
WTSLA Wet Seal Roth Capital Cut Price Target Buy $10 to $8
Savings & Loan
FMD First Marblehead Friedman Billings Cut Price Target Underperform $33 to $32
DFC Delta Financial Roth Capital Coverage Dropped
Semiconductors
ACTL Actel Northland Securities Upgraded from Market Perform to Outperform $14
NVDA NVIDIA BMO Capital Markets Upgraded from Market Perform to Outperform
ZRAN Zoran JP Morgan Upgraded from Neutral to Overweight
NVDA NVIDIA Needham & Co Price Target Raised Buy $43 to $50
NVDA NVIDIA Stifel Nicolaus Downgraded from Hold to Sell
SYMM Symmetricom Needham & Co Downgraded from Buy to Hold
SYMM Symmetricom Roth Capital Downgraded from Buy to Hold $12.60 to $7
SYMM Symmetricom Cantor Fitzgerald Downgraded from Buy to Hold $13 to $7
NVDA NVDA - downgraded to Neutral at Merrill Downgraded
BRKS Brooks Automation Needham & Co Cut Price Target Buy $25 to $20
BRKS Brooks Automation Caris & Company Cut Price Target Average $19 to $15
QLGC QLogic UBS Cut Price Target Neutral $18 to $14
SYMM Symmetricom First Albany Cut Price Target Buy $12 to $9
Tankers
FRO Smith Barney wants to avoid tankers and sees OSG, FRO, and TNP as the most overvalued. Avoid
Telecommunications
ADCT ADC Telecom Robert W. Baird Upgraded from Neutral to Outperform $18 to $19
RCNI RCN Morgan Joseph Upgraded from Hold to Buy $20
TMRK Terremark Worldwide Merriman Curhan Ford Upgraded from Neutral to Buy
PAET PAETEC Holding Kaufman Bros Price Target Raised Buy $17 to $19
IDCC Interdigital Comm Boenning & Scattergood Cut Price Target Market Outperform $39 to $35
INPC InPhonic Kaufman Bros Cut Price Target Buy $12 to $6
Transportation
PACR Pacer Intl UBS Upgraded from Neutral to Buy
Utilities
CWT California Water Brean Murray Downgraded from Buy to Hold
SJW SJW Corp Brean Murray Downgraded from Buy to Hold
SWWC Southwest Water Brean Murray Downgraded from Buy to Hold
CWT CWT, SJW, SWWC - downgraded at Brean Murray Downgraded