Friday Morning, August 17th
SITE NEWS
New IceMD Recording:
Nanoparticles and The Future Of Medicine;
Hidden Treasure News:
NNRF, INC. Announces Commencement Of Feecom AndBiecom Sales Activities
MOSCOW, August 16, 2007 (PRIME NEWSWIRE) - NNRF, Inc. (NNRF), formerly known as NUCO-RF, today announced that it has successfully completed the testing and certification of its radiation shielding technologies, FEECOM and BIECOM. Based on the results of the radiological, mechanical and technological investigations, NNRF is now able to commence manufacturing and sales.
The final report of the testing of these technologies is being presented at a seminar at the Fachhockschule Hannover, in Hannover, Germany on September 18, 2007. This seminar is being conducted for the plant and technical site managers of the largest German utility company, E.ON. There will also be a roundtable discussion between NNRF's shielding managers and the E.ON personnel in attendance to discuss the applications and installations of the materials at their nuclear power plants. NNRF is also in contract discussions with other utility holding companies in Germany, Western Europe and South Korea.
The traditional use of lead as a shielding material is being phased out as the European Union has banned the use of lead in all facilities after the year 2010. Completion of the testing phases of FEECOM and BIECOM permits NNRF to market these technologies directly to nuclear utility managers. Presently, one German nuclear utility evaluating the use of NNRF's shielding materials has 95 metric tons of lead that must be replaced. In Germany, there are 17 nuclear utilities with 1,615 metric tons of lead, which is the equivalent of 1,300 metric tons of BIECOM. A replacement program of 10% per year would require 130 metric tons of BIECOM annually in Germany. Similar quantities of BIECOM may be required at other utilities in Western Europe. Further, the site managers of the nuclear power stations are currently considering the use of FEECOM and BIECOM to cover the tubes and pipes within the power stations. These applications have also been successfully tested and engineered and are being included in present contract discussions.
The successful results of the testing and certification concluded that the shielding characteristics of FEECOM and BIECOM were greater than previously announced. As a result of these findings, a proposal was received by NNRF in which NNRF and the Federal State of Lower Saxony will each contribute 50% of the funding for the creation of a manufacturing production facility and preparation of technical manuals for the field installations of the materials. The forms necessary to start manufacturing have been fabricated and the equipment and raw materials ordered. A copy of the latest public report on FEECOM/BIECOM can be found at www.nnrf.com.
This manufacturing facility will also undertake the completion of the final specifications for applications of FEECOM and BIECOM in the Northern Dimension Environmental Partnership in Northwestern Russia (http://ec.europa.eu/external_relations/north dim/). NNRF has already been chosen as a sub-contractor in this US$4 Billion G-8 funded project in Northwestern Russia and it anticipates that it will be listed as a sub-contractor in the Far-Eastern projects that are to be announced. NNRF shielding and disposal technologies for these G-8 funded projects are currently undergoing final engineering specification, and NNRF anticipates commencing field installations in the fourth quarter of 2007.
Dow Stock News
H-P posted a 29% jump in net on a 16% sales rise, driven by its PC business, and raised its outlook for the quarter and year. - WSJ
HPQ Hewlett-Packard Needham & Co Price Target Raised Buy $52 to $54
HPQ Hewlett-Packard Friedman Billings Price Target Raised Outperform $53 to $54
The Wall Street Journal writes that IBM (IBM) will start to sell the Sun (SUNW) operating system.
The Wall Street Journal writes that Wal-Mart (WMT) is considering opening smaller high-end stores.
HD Home Depot UBS Upgraded from Sell to Neutral
Ice Man Stocks
Breakouts the Ice Man may consider trading:
RADS - 15.05
PODD - 17
Regular Trades the Ice Man may consider:
SOV - 17.50 * Best Bet
CCRT - 23.45
CMA - 56.60
INSP - Great Chart
Depressed stocks the Ice Man may buy:
BG - 80.15 Gap
TSL - 37 Gap
ATK - 95 Gap
PCLN - 65.20 Gap
ZNH - 36.25 Gap
Watch for a bottom on:
AKAM
ASA
CPA
Dollar Man Ideas:
FMT - 3.85
CTDC - 4
KOG - could be putting in a bottom
Media Commentators
Cramer's Comments:
Bullish: WFC, RAI, MO
Bearish: VMW, HRB, COF, FBR, LMS, SIX
Ice Cold Commentators
Break Man Video Summary:
Break out buy (or short sell) watch list for short term gains August 17 includes: CMG, RADS, LRCX, CPNLQ, MRK, MEAS, COP, UA.
Several candidates for break out or short sell plays for at least short term gains by buying the break out (or selling the break down) on good volume and closing at least some on the first day.
CNBC Fast Money Review
1. Crazy Comeback
The headline: Dow Finishes Flat after Late Turnaround Erases 340-Point Loss; S&P 500 Reverses Course Right After 1-Month Loss Reaches 10% ‘Correction´ Threshold.
Najarian: BSC led the charge higher and brought the rest of the group with it. He also notes that the XLF was much higher than it was just two days ago.
Bolling: Agrees, “Keep your eye on the XLF."
Adami: Thinks the next 500 points in the Dow will be to the upside.
Macke: This is the snap-back rally we´ve been looking for.’ He doesn´t think the market is out of the woods yet but things “look a little brighter.’
2. WORST TO FIRST
The headline: JP Morgan, Financials Post Biggest Gain in a Week.
Bolling: It appears that the things that led us down now may be the thinks that lead us back up. He thinks the financials have bottomed and that the market will follow.
Adami: Urges investors to pay attention to USB because Warren Buffett just increased his stake in the bank.
3. The Top 3
1. Trade Like The Pros
Market volatility today reached its highest levels since October 2002. What are you supposed to do when all fundamentals and trends get thrown out the window?
Najarian: Used the volatility in CFC Thursday to his advantage. He got long and short CFC throughout the day. He is now a buyer of TMA on the dip. After doing some research, he is confident that TMA doesn´t have the same types of problems that Countrywide does.
Adami´s advice is to stay with what´s working. Likes HPQ and BIIB.
Macke: Still cautious of this market and thinks everyone is oversold. It´s not a time to take huge chances, which is why the best move is to sell into rallies.
2. You Got Us Into This Mess
The bank stocks -- which started this whole calamity -- were strong throughout the day; even when the Dow was down 340 points. Was the relative strength Thursday in stocks such as C and BSC a sign that its okay to step in and start buying these distressed names?
Adami: The banks, including BAC and USB, are a buy.
Najarian: Is paying attention to WFC, which was the only name in the space that stayed positive for today´s entire trading session. Says, A lot of the lenders are going out of business and it is going to create opportunities for big money centers like WFC, BAC, and JPM.
Macke: looking at GS, which came down to below $160 today on two-and-a-half times normal volume. He thinks GS is a buy for a trade – but not for an investment.
3. Atlas Shrugs
Commodity stocks – the names most-linked to the global growth story and the biggest moneymakers of the bull market – got slaughtered today. Has the time come to retire these names from your portfolio? Dennis Gartman, a renowned commodities trader and editor of the Gartman Letter, joins the guys for his take on the market.
Gartman says: The volatility within the market, not just in commodities, is “incredible,’ wouldn´t be surprised, given Thursday´s reversal in the financials, if the commodities stocks opened “briskly higher.’ He believes we´re in a bear market for equities and a bull market for volatility. Believes that there are still commodity-based opportunities amidst the nature of this market. He would also buy crude oil at present levels. Gartman recommends that if investors believe his theory that we´ve entered a bull market for volatility and a bear market for stocks, the best idea is to sell into market strength and not buy into weakness.
4. COLD COMMODITY
The headline: Metal Stocks Get Murdered as FCX Plummets 8%; AA, X, Suffering Heavy Losses Thursday
Bolling: Commodity stocks got hurt because world markets ran for cover in the U.S. dollar. When the dollar goes up, commodities and commodity-based stocks go down.
Najarian: AA may have reached a bottom. It has been so beaten down and now the calls are going up. “The opportunity for the turn is now for AA.’
5. Pops And Drops
C popped 4% Macke says the financials were enormously over sold.
KFN popped 26% Adami predicted this stock would pop after it dropped Wednesday on a down grade.
CAT dropped 3% Bolling likes CAT for global growth.
AAPL dropped 3% Najarian says look at where AAPL started the year!
F dropped 4% Adami calls the drop a heart breaker.
FCX dropped 6% Bolling says stay away.
GLD dropped 2% Bolling likes owning gold.
BID dropped 5% Macke says play it for a bounce.
6. The Final Word: Your First Move For Friday
Macke: Likes GM, thinks the stock has bottomed.
Najarian: Likes TMA and suggests it might be a takeover target.
Adami: Prefers NTAP, feels this name has performed well in a difficult tape.
Bolling: Recommends buying the XLF, thinks the financials have bottomed
News and Events Digest
Breaking News
Midwest said it will accept a cash offer to be acquired by private-investment firm TPG Capital, rejecting a revived cash-and-stock offer from AirTran. - WSJ
The Japanese yen on Friday continued its blistering pace, as investors moved to exit previous trades in which they borrowed the currency on worries about how deep the global credit crisis will run. - MarketWatch
Parker Hannifin Corp., which makes motion control systems for the industrial and aerospace markets, said Thursday it will buy back $500 million in common shares.
The company will initially buy back common shares from Morgan Stanley, which will then purchase an equivalent number of shares of Parker Hannifin's stock in the open market over a period of up to four months.
Parker Hannifin Corp., which makes motion control systems for the industrial and aerospace markets, on Thursday raised its quarterly dividend more than 21 percent and authorized a 3-for-2 stock split. - AP
RYAAY - reports an increased stake in Air Lingus
Media Summary:
According to Reuters, Dell (DELL) will restate four years of results after an audit that lasted over a year.
Reuters writes that Bear Steans (BSC) will cut 240 jobs in its sub-prime operations.
Reuters writes that Nokia (NOK) has filed a complaint against Qualcomm (QCOM) with the ITC asking for more bans on the import of QCOM chips.
Reuters reports that Wall St. still has doubts about Amgen's (AMGN) future, even after the biotech cut 12% of its workforce.
The Wall Street Journal reports that Whole Foods (WFMI) won a round in its merger with Wild Oats (OATS) when a judge refused to issue an injuction to stop the deal.
The Wall Street Journal reports that Sprint (S) may spend $5 billion on its WiMax initiative.
The New York Times writes that Boston Scientific (BSX) will put two more units on the market to bring in cash to pay down debt.
FT reports that buy-out firms are still in the market for deal despite credit problems.
Barron's reports that Ebay's (EBAY) Skype VoIP unit was down for a day due to software problems.
M&A Activity:
Whole Foods and Wild Oats scored a victory as a federal judge refused to temporarily block their $565 million deal. - WSJ
Darden Restaurants (DRI), which operates the Olive Garden and Red Lobster restaurant chains, on Thursday said it agreed to buy Rare Hospitality International (RARE) for some $1.19 billion. Darden said it would buy all of the company's outstanding shares in a tender offer with a price of $38.15 per share. The price is a 39 percent premium to Rare's closing price Thursday of $27.51. The deal value is based on 31.1 million shares outstanding. - CNBC
El Paso Corporation (EP) announced today that it is acquiring Houston-based Peoples Energy Production Company (Peoples Production), for $875 million in cash through its wholly-owned subsidiary, El Paso Exploration & Production Company (EPEP). Peoples Production, which is a subsidiary of Integrys Energy Group (TEG), owns an estimated 305 billion cubic feet equivalent (Bcfe) of proved reserves with current production of 72 million cubic feet equivalent per day (MMcfe/d).
IPO Central:
Chimera Investment Corp., a unit of Annaly Capital Management (NLY), on Friday filed to raise up to $250 million in an initial public offering. Anally Capital Management serves as the investment advisor for Chimera Investment Corp., which will invest in residential mortgage loans, residential mortgage-backed securities and other asset classes. Chimera plans to trade on the New York Stock Exchange under the symbol CIM. Merrill Lynch is underwriter of the deal. Matthew Lambiase, 41, serves as CEO of Chimera. - MarketWatch
IPOs on schedule for week of 8/13/2007 yet to come out:
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.
CCS Medical (CCSM). The company Distributes medical supplies to patients living with diabetes, respiratory and other chronic conditions. The company is selling 10M shares at the initial range between $14-$16. The company announced Revenues for the last 12 months of $473M and Net Income of $(-12)M. The Lead Managers are Lehman and Goldman. CCS Medical (CCSM) is headquartered in Clearwater, FL and their website is www.ccsmed.com.
Tully's Coffee (TULY). The company operates coffeehouses in the Western United States and sells coffee wholesale. The company is selling 3.5M shares at the initial range between $10-$12. The company announced Revenues for the last 12 months of $59M and Net Income of N/A. The Lead Manager is KeyBanc Capital and D.A. Davidson is Co. Manager. Tully's Coffee (TULY) is headquartered in Seattle, WA and their website is www.tullys.com.
Stock Split Announcement:
Parker-Hannifin Corporation (Ticker: PH) announced that its board of directors approved a 3 for 2 st stock split.
Economic Data:
10:00 Michigan Sentiment
Upgrades and Downgrades by Sector:
Aerospace
CW Curtiss-Wright CIBC Wrld Mkts Downgraded from Sector Outper to Sector Per $50
Biotech
ALNY Alnylam Pharmaceuticl Cantor Fitzgerald Price Target Raised Hold $17 to $20
ROSG Rosetta Genomics Cantor Fitzgerald Cut Price Target Buy $15 to $9
Broadcasting
CBS CBS Corp BMO Capital Markets Initiated at Outperform $42
VIA.B Viacom UBS Cut Price Target Neutral $47 to $44
Business Services
WNS WNS JP Morgan Downgraded from Overweight to Neutral
Business Svcs-Data
RVBD Riverbed Technology Nollenberger Capital Initiated at Buy $55
Chemicals
AGU Agrium CIBC Wrld Mkts Upgraded from Sector Perform to Sector Outperform $49
LZ Lubrizol KeyBanc Capital Mkts Upgraded from Hold to Buy $73
Computer Hardware
EMC EMC Corp Caris & Company Upgraded from Average to Above Average $20 to $21
NICE Nice Systems Friedman Billings Upgraded from Mkt Perform to Outperform $36 to $38
STX Seagate Tech FTN Midwest Upgraded from Neutral to Buy
Computer Services
CAI CACI Intl JP Morgan Upgraded from Underweight to Overweight
RATE Bankrate RBC Capital Mkts Upgraded from Outperform to Top Pick $59
Computer Software
ADSK Autodesk Bear Stearns Upgraded from Peer Perform to Outperform
SAP SAP AG JP Morgan Upgraded from Underweight to Overweight
ADSK Autodesk Needham & Co Price Target Raised Strong Buy $54 to $55
ADSK Autodesk Kaufman Bros Price Target Raised Buy $47 to $50
TMWD Tumbleweed Comms Morgan Keegan Initiated at Outperform
VDSI VASCO Data Security Morgan Keegan Initiated at Mkt Perform
ADSK Autodesk Credit Suisse Cut Price Target Neutral $48 to $45
Finance Companies
CFC Countrywide Banc of America Sec Upgraded from Sell to Neutral
CIT CIT Group Stifel Nicolaus Cut Price Target Buy $62 to $55
Foods
MGPI MGP Ingredients Roth Capital Cut Price Target Hold $21 to $16
Healthcare
PCYC Pharmacyclics BWS Financial Upgraded from Sell to Hold $2
ISTA ISTA Pharm Banc of America Sec Initiated at Buy
Healthcare Equipment
CMED China Medical Tech Brean Murray Upgraded from Hold to Buy $35
NUVA NuVasive Dawson James Price Target Raised Buy $30 to $36
ARAY Accuray CIBC Wrld Mkts Cut Price Target Sector Underperform $19 to $16
Healthcare Facilities
HCR HCR Manor Care Friedman Billings Cut Price Target Outperform $71 to $67
Insurance
CPS ChoicePoint Sun Trust Rbsn Hum Downgraded from Neutral to Reduce $32
Mining - Coal
AHGP Alliance Holdings AG Edwards Downgraded from Buy to Hold
Mining Non-Ferr Metal
OMG OM Group First Analysis Sec Upgraded from Equal-Weight to Overweight
Motion Pictures
BBI Blockbuster JP Morgan Upgraded from Neutral to Overweight
Oil and Gas
COG Cabot Oil & Gas BMO Capital Markets Upgraded from Underperform to Market Per
RIG Transocean Stifel Nicolaus Upgraded from Hold to Buy $115
Publishing Services
GHS Gatehouse Media BMO Capital Markets Initiated at Market Perform
Real Estate
AIV Apt Inv & Mgt RBC Capital Mkts Cut Price Target Underperform $56 to $50
Recreational Vehicles
HOG Harley-Davidson Matrix Research Upgraded from Buy to Strong Buy
Regional Banks
FITB Fifth Third RBC Capital Mkts Cut Price Target Sector Perform $40 to $38
REITs
GGP Gen Growth Prop Stifel Nicolaus Initiated at Hold
REG Regency Centers Stifel Nicolaus Initiated at Hold
BXP Boston Prpts UBS Downgraded from Buy to Neutral
SLG SL Green Rlty UBS Downgraded from Buy to Neutral
Restaurants
DRI Darden Restaurants Bear Stearns Downgraded from Outperform to Peer Perform
RARE Rare Hospitality KeyBanc Capital Mkts Downgraded from Buy to Hold
RRGB Red Robin Gourmet Friedman Billings Cut Price Target Mkt Perform $44 to $43
Retail Trade
BGP Goldman Sachs Upgraded to Neutral
ANF Abercrombie Friedman Billings Upgraded from Mkt Perform to Outperform $81 to $90
KSS Kohl's Deutsche Securities Upgraded from Hold to Buy $75
SHRP Sharper Image BMO Capital Markets Upgraded from Underperform to Market Perform
CAO CSK Auto Friedman Billings Cut Price Target Mkt Perform $15 to $11
Retail Trade - Auto
AN Goldman Sachs Downgraded to Sell
Semiconductors
AATI Advanced Analogic Tech Needham & Co Upgraded from Buy to Strong Buy $11
OWW Orbitz Soleil Upgraded from Hold to Buy $13
BRCM Broadcom Charter Equity Initiated at Buy
ENTG Entegris Matrix Research Downgraded from Buy to Hold
ZIGO Zygo Needham & Co Coverage Dropped $23
Telecommunications
CHL FBR Upgraded to Outperform
SONS Sonus Networks Brean Murray Upgraded from Sell to Hold
CNTF China Techfaith Wrls Brean Murray Cut Price Target Buy $11 to $6
Transpo-Railroads
CNI Canadian Natl Rail Stifel Nicolaus Upgraded from Hold to Buy $62
Transportation
CHRW Steiffel Nicholas Upgraded to Hold
CHRW C.H. Robinson Stifel Nicolaus Upgraded from Sell to Hold
LSTR Landstar System Stifel Nicolaus Upgraded from Hold to Buy $62
PACR Pacer Intl Stifel Nicolaus Upgraded from Hold to Buy $27
XPRSA U.S. Xpress Stifel Nicolaus Upgraded from Hold to Buy $22
SSW Seaspan Cantor Fitzgerald Initiated at Buy $36
Utilities
EXC Exelon Banc of America Sec Upgraded from Neutral to Buy
EGN Energen Sanders Morris Harris Initiated at Buy
HNP Huaneng Power Citigroup Downgraded from Buy to Sell