Friday Morning, July 13th
Dow Stock News
General Electric Co., one of the world's largest conglomerates, said Friday that second-quarter earnings rose 10% as revenue climbed 12%.
GE (GE) posted net income of $5.42 billion in the quarter, or 53 cents a share, up from 48 cents earned a year earlier. Revenue rose 12% to $42.3 billion vs. $37.7 billion a year earlier.
GE will also raise its 2007 share buyback program to $14 billion, from a previous level of $12 billion. - MarketWatch
Reuters writes that GE (GE) plans to sell its WMC mortage unit.
The Wall Street Journal also reports that the Financial Times (PSO) and CNBC (GE) are considering sharing editorial resources.
In an extraordinary board of directors meeting, directors of Chilean carrier Lan Airlines (LFL) agreed to order 32 new Boeing Co. (BA) 787 Dreamliner jets to go into service between 2011 and 2016, the airline said Thursday. - MarketWatch
Reuters reports that Boeing's (BA) orders for the year still trail Airbus's.
Barron's writes that a Bank of America research upgrade sent Intel (INTC) shares up sharply.
AA Alcoa Credit Suisse Price Target Raised Outperform $45 to $55
Ice Man Stocks
Breakouts the Ice Man may consider trading:
KB - 98
MGA - 94.15
CCC - 13.25
WCG - 95
LYO - 40
ORCL - 20.55
INFA - 15.40 warning, 16.25
JDAS - 20
ATHR - 32.60
SII - 62
BEN - 139.50
BHI - 90
WMB -34
XRX - 20
PII - 56
JKHY - 27
CSCT - 19.50
WGOV - 59
BAX - 58.50
ESI - 121
LLL - 100.16 Bid
ELX - 23.40
CL - 69
NVT - 46
SWK - 64
ASD - 62
ROS - 60
URRE - 12
SLB - 89.20
Regular Trades the Ice Man may consider:
FRG - 12.90
GYI - 49.50
LNET - 32.10 Bid
JOBS - 21
MOS - 40
ADM - 36.50
MRK - 51.10
PFE - 26.10
Trades Coming off the bottom:
HTCH - 19.50
QLGC - 17.65
MTB - 112
FORM - 38
AMD - 15.40
WBSN - 22.60
EZPW - 12.90
NICE - 36.15 = 37.80
AVCT - 30 * Best Bet
VRTX - 29.50
REGN - 18.30 * Best Bet
NTAP - 30.25
OPWV - 6.50
MENT - 13.30
PNW - 40.20 Bid
ROCM - 15.30
VIMC - 7.11
UNFI - 27.75
MTEX - 12.20
Depressed stocks the Ice Man may buy:
KMGB - 20.45 Gap
Dollar Man Ideas:
Dollar Man:
BQI - 3.41 Bid
TIBX - 9.25
PCTI - 8.85
PWER - 4.40
BMD - 4
APAC - 2.60
ICGN - 2.10
Media Commentators
Cramer's Comments:
Bullish: APA, RAD, TXN, GPRO, MTW
Bearish: BX, and private equity IPOs
Zack´s Buy List additions:
GIVN, PEP
Ice Cold Commentators
Break Man Video Summary:
Break out buy watch list for short term gains July 13 includes: CBG, CSTR, PCS, JCG, URRE, BJ, LLL, ISIL.
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
News and Events Digest
Breaking News
Cameron (CAM) said Friday it's been awarded a $100 million contract worth to provide equipment for Apache Energy Ltd.'s (APA)Van Gogh project offshore Western Australia. Cameron will provide engineering and project management services, 13 wellhead and subsea tree systems, control systems, two subsea manifold structures with the associated flowline connection system and related equipment. - MarketWatch
Idenix Pharmaceuticals (IDIX) Friday it put development of its valopicitabine treatment for hepatitis C on hold after talks with the Food and Drug Administration. The company said it is in discussions with Novartis (NVS) to evaluate future options for the drug. Idenix said it has about $160 million in cash and securities on hand. - MarketWatch
The Dutch Supreme Court on Friday ruled that ABN Amro can proceed with its $21 billion sale of LaSalle to Bank of America, taking Barclays a step closer to winning control of ABN in the world's biggest banking takeover. - MarketWatch
RVBD - positive article in today´s IBD
Baker Hughes (BHI) said Friday it expects second-quarter net income of $1.07-$1.09 a share, below the year-ago level of $1.17 a share. Analysts surveyed by Thomson Financial forecast earnings of $1.18 a share for the latest period, on average. The Houston energy firm cited "significant deterioration" of activity and profitability in Canada in its drilling and evaluation segment. - MarketWatch
Media Summary:
According to Reuters, Energizer (ENR) will buy Playtex (PYX) for just under $1.2 billion.
Reuters also reports that shares in Target (TGT) rose sharply after news that a corporate raider had taken a stake.
Reuters also writes that the head of Google (GOOG) said that Facebook will probably stay independent.
The Wall Street Journal writes that the CEO of Jones Apparel (JNY) stepped down as the company is looking at options in a tough clothing environment.
The Wall Street Journal reports that the CEO of Westwood One (WON) has left as the company is in the midst of negotiations with CBS (CBS) over a management contract.
The New York Times reports that Chinese cars are quietly entering the European market.
The FT writes that Google (GOOG) faces a lawsuit from an Australian goverment agency which says it does not distinquish enough between search results and text ads.
M&A Activity:
Energizer (ENR) will buy Playtex (PYX) for about $1.16 billion, the company said Thursday.
Energizer Holdings, Inc. is offering $18.30 per share in cash.
The offer price represents an 18 percent premium over Playtex's closing stock price Thursday. The transaction was approved unanimously by the boards of directors of both companies. Playtex, according federal filings, had 63.46 million shares outstanding as of April 30.
Energizer is also assuming an undisclosed amount of debt in the deal, which it said would boost total purchase price to $1.9 billion. - AP
IPO Central:
Pricing:
Lululemon Athletica Inc. (LULU) on Friday cut the size of its upcoming initial public offering to 16.4 million shares from 18.2 million. The apparel firm kept the price range of the IPO at $10-$12 a share. Under the new terms, the company will riase about $180 million with underwriters Goldman Sachs (GS) and Merrill Lynch (MER). - MarketWatch
Biotech company Dyax (DYAX) Friday announced the pricing of 10.5 million shares at $3.67 a share. In connection with this offering, Dyax has granted a 30-day option to the underwriters to purchase up to 1.575 million additional shares of common stock at the public offering price to cover over-allotments, if any. - MarketWatch
IPOs on Schedule for week of 7/16/07
Airvana (AIRV). The company provides network infrastructure products to provide mobile broadband services. The company is selling 8.3M shares at the initial range between $8-$10. The company announced Revenues for the last 12 months of $170M and Net Income of $74M. The Lead Manager is Morgan Stanley and Lehman is Co. Manager. Airvana (AIRV) is headquartered in Chelmsford, MA and their website is www.airvana.com.
Dice Holdings (DHX). The company operates career websites for technology and financial services professionals. The company is selling 16.7M shares at the initial range between $11-$13. The company announced Revenues for the last 12 months of $87M and Net Income of $7M. The Lead Managers are Credit Suisse and Morgan Stanley. Dice Holdings (DHX) is headquartered in New York, NY and their website is about.dice.com.
Encore Bancshares (EBTX). The company is a bank holding company and wealth management organization that manages offices in Texas and Florida. The company is selling 2M shares at the initial range between $20-$22. The company announced Revenues for the last 12 months of $111M and Net Income of $7M. The Lead Manager is Keefe Bruyette Woods and Sandler O‘Neill is Co. Manager. Encore Bancshares (EBTX) is headquartered in Houston, TX and their website is www.encorebank.com.
hhgregg (HGG). The company sells video products and home appliances via 79 retail stores under the hhgree and Fine Lines names in 8 states. The company is selling 9.4M shares at the initial range between $15-$17. The company announced Revenues for the last 12 months of $1,059M and Net Income of $21M. The Lead Managers are Credit Suisse and Lehman Brothers. hhgregg (HGG) is headquartered in Indianapolis, IN and their website is www.hhgregg.com.
ImaRx Therapeutics (IMRX). The company is developing novel therapies for vascular disorders associated with blood clots. The company is selling 3M shares at the initial range between $6.50-$7.50. The company announced Revenues for the last 12 months of $2M and Net Income of $0M. The Lead Manager is Credit Suisse and I-Bankers Securities are Co- Manager.. ImaRx Therapeutics (IMRX) is headquartered in Tucson, AZ and their website is www.imarx.com.
Stock Split Announcement:
InvestmentHouse (Ticker: FCSX) announced that its board of directors approved a 3 for 2 stock split.
Economic Data:
8:30 Export Prices
8:30 Import Prices
8:30 Retail Sales
10:00 Business Inventories
10:00 Michigan Sentiment
Upgrades and Downgrades by Sector:
Biotech
CELG Smith Barney thinks CELG, GILD, and IMCL could stand out and reiterates Sells on AMGN and CVTX
Broadcasting
WON Westwood One Citigroup Downgraded from Hold to Sell
Business Services
BSCI HAMR Price Target Raised $65
VSCN Visual Sciences Friedman Billings Downgraded from Outperform to Mkt Perform $18 to $20
Computer Hardware
MRVC MRV Comms Roth Capital Upgraded from Hold to Buy $4 to $3.90
NATI Natl Instruments Thomas Weisel Upgraded from Market Weight to Overweight
ZBRA Zebra Tech Thomas Weisel Upgraded from Market Weight to Overweight $42 to $47
EMC EMC Corp Morgan Keegan Downgraded from Outperform to Mkt Perform
Computer Software
VRSN VeriSign Jefferies & Co Upgraded from Hold to Buy $27 to $39
Cruise Lines
CCL Carnival JP Morgan Upgraded from Neutral to Overweight
Finance Companies
BLK BlackRock Wachovia Initiated at Outperform
CIT CIT Group CIBC Wrld Mkts Downgraded from Sector Outperform to Sector Perform
Foods
DLM Del Monte Matrix Research Upgraded from Hold to Buy
SEB Seaboard Corporation Jefferies & Co Upgraded from Hold to Buy
Gold and Silver Mining
AUY Yamana Gold Credit Suisse Initiated at Outperform
Healthcare
UTHR United Thera Brean Murray Price Target Raised Buy $70 to $80
PPDI PPD Inc. Jefferies & Co Downgraded from Buy to Hold $41 to $39
MEND Micrus Endovascular Susquehanna Financial Initiated at Positive
Major Pharmaceutical
AOB American Oriental CIBC Wrld Mkts Initiated at Sector Outperform $14
Manufacturing
KDN Kaydon Friedman Billings Price Target Raised Outperform $53 to $62
ESIO Electro Scientific Merriman Curhan Ford Downgraded from Buy to Neutral
Medical Information
LIMS Starlims Tech Oppenheimer Initiated at Buy $16
Mfg - Building Mat
CRH CRH Plc. BB&T Capital Mkts Initiated at Buy $23
Mining - Minerals
CNX CONSOL Energy Friedman Billings Cut Price Target Outperform $72 to $70
Multi-National Banks
HDB HDFC Bank Jefferies & Co Initiated at Buy $107
IBN ICICI Bank Jefferies & Co Initiated at Buy $62
Oil and Gas
HAL Halliburton Credit Suisse Upgraded from Neutral to Outperform
CLB Core Labs Friedman Billings Price Target Raised Outperform $128 to $132
Personal Services
CHE Chemed Deutsche Securities Downgraded from Buy to Hold $71
Pharmaceutical
WCRX Warner Chilcott PLC Oppenheimer Downgraded from Buy to Neutral $17 to $20
Recreation
DWA Dreamworks Animation Stifel Nicolaus Initiated at Buy $37
Recreational Vehicles
FLE Fleetwood BB&T Capital Mkts Upgraded from Hold to Buy
THO Thor Industries Matrix Research Downgraded from Strong Buy to Sell
REITs
FRT Fedrl Rlty Inv Trst Cantor Fitzgerald Upgraded from Hold to Buy $88 to $92
FPO First Potomac Realty Cantor Fitzgerald Initiated at Buy $27
Retail Trade
BJ BJ's Wholesale Lehman Brothers Upgraded from Underweight to Equal-weight
NDN 99 Cents Only Deutsche Securities Upgraded from Hold to Buy
SWY Safeway Lehman Brothers Upgraded from Underweight to Equal-weight
BGFV Big 5 Sports CIBC Wrld Mkts Downgraded from Sector Outperform to Sector Perform
RSH RadioShack Banc of America Sec Downgraded from Neutral to Sell
Semiconductors
ATML Atmel Wedbush Morgan Price Target Raised Buy $7 to $7.50
Stock Funds
TYG Tortoise Energy Infrastructure Ferris Baker Watts Downgraded from Buy to Neutral
Telecommunications
USM US Cellular Soleil Downgraded from Hold to Sell
Transportation
RCL Royal Caribbean JP Morgan Upgraded from Neutral to Overweight
FRO Frontline UBS Downgraded from Neutral to Reduce