Tuesday Morning, June 12th
Dow Stock News:
According to Reuters, Citigroup (C) has raised its stake in Japan broker Nikkei Cordial to 68%.
FT reports that GE (GE) will not make a bid for Dow Jones (DJ);
SBUX removed from Conviction Buy list and MCD added
TGT removed from Conviction Buy list and WMT added
Breakouts the Ice Man may consider trading:
TNH - 100
JNPR - 25.10
ASIA - 9.15
EDU - 50
GRMN - 66.50
Regular Trades the Ice Man may consider:
AOB - 10
Dollar Man Ideas:
TSYS - 5.80
BMD - 2.95
Depressed stocks the Ice Man may buy:
IDMI - 3.75
Cramer's Comments:
Bullish: TWX, EMC, FNM, AAPL;
Bearish: ALU, Q;
Louis Navellier:
Buys: GMST, GES, MTW, SIMU, RIG;
Sells: AMX, MT, AZZ, VSEA, FWLT, VSEA;
Gorilla Trades:
New Potential Buys:
F5 Networks (FFIV): ABOVE $80.90 with an $88.75 first target, a $100 second target, and a $72.75 stop loss. Confirmation Volume Area = 850K Risk Rating = 4
Global Commerce (GSIC): ABOVE $22.87 with a $25.25 first target, a $31 second target, and a $20.25 stop loss. Confirmation Volume Area = 360K Risk Rating = 5
Break Man Video Summary:
Break out buy watch list for short term gains June 12 includes: SWHC, WFII, AOG, BRKR, CAMP, BAS, CIB, ULTR.
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:
Yesterday the market began the day mixed, but then about an hr after the open, the market began to rally. However, by mid day, the market peaked and sold off into the close. AAPL and GOOD, which had been strong and holding up the techs weakened and both sold off hard into the close.
In the previous updates, I pointed out that the 20 day MA’s had been lost as support on both the Dow and S&P 500. I also stated that aggressive traders could put on short positions on an early week bounce close to those 20 day MAs.
Yesterday near the highs would have been a low risk area for aggressive traders to short the market with objective stops in place for a swing trade.
Both the Dow and S&P 500 rallied early in the day to recover 50% of last weeks sell off and got close to their 20 day MAs, as you can see on the 60 min chart of the S&P 500 below. Also, last week I stated that shorting was not optimal because the stochastic indicator on the 60 min index charts was way oversold.
However, yesterday by late morning, the stochastic indicator had risen to the mid 80s near the overbought condition, thus providing a lower risk short entry.
However, as I stated prevously, the Russell 2000 index has key support at the uptrend line. Until that uptrend line is broken, a bearish trend reversal and market top will not be confirmed. Keep an eye on this chart.
Again, remember that this could be a volatile week with options expiration week and economic news (CPI and PPI at the end of the week).
Also keep an eye on interest rates and bonds, as they are currently have a big effect on the market right now.
___________________
Bond Watch: Slapped Overnight, Again
The market just can't buy a break as another overseas session results in an exodus from treasuries & government debt in general. Despite prices knocking on yearly lows again, investors continue to find reasons to sell. With few signs of a meaningful bid emerging, the recent bottom is looking tenuous.
The 2-10-yr yield spread is winding around at 16.8 as curve trade is settling into its new comfort zone just below highs notched over a year ago. Bond prices in the EuroZone were decimated by expectations of continued growth despite a drop in industrial production while in Japan, bonds were beaten on inflation fears. Treasuries will suffer another lackluster session with no market-moving data but some Fed-speak & supply to keep an eye out for.
Momentum continues to favor the downside as attempts at higher are sold. The buck was generally better, higher on the yen & near the best levels on the euro since early-Apr. The pound gained ground on tough rate talk while the NZ kiwi tries to stay in the spotlight, flaunting the high rates to snag its bid.
Gold has been steady to lower with spot now 652.05 (-1.60), as the dollar does better. Crude is off on complacency about supply, trading 65.77 (-0.20). The day's only data is treasury budget & Fed-speak offers Chicago's Moskow & ex-Fed-head Greenspan with Treasury's Paulson early. The euro is at 1.3345 & the yen is at 121.7900 while the 10-yr yield is at 5.179%.
___________________
CNBC Fast Money Review:
1. Word on the Street
Trader's Market
Najarian: Volitility great for traders not investors.
Bolling: Seems more like flat market.
Crude Realities
Bolling: No news out of OPEC.
Texas Mess
Adami: TXN is fine.
Macke: Get long the dip.
Ford Trading in Jaguar?
Adami: Selling luxury brands good thing short term.
Najarian: Likes DCX for diesel technology.
It's Not a Good Thing
Macke: Something going on at M. Own SKS instead.
The Other Commodities
Bolling: Geopolitics to drag down HSY.
Nucor Poor Forecast
Adami: NUE blaming slow auto and homebuilder sector. Further room on
downside.
Crocs Rocks
Najarian: CROX in midst of short squeeze. Don't get involved.
The War That Never WAs
Macke: DJ worth more to Rupert than anyone else.
Shwarzman's Share
Bolling: Don't buy BLV.
One Giant Step for Mannkind
Najarian: MNKD moving since Thursday, data coming this week on diabetes
drug.
$1.8B Central Park West
Bolling: Sign of times. Lot of money out there.
Apple Disappoints
Bolling: Look for dip and buy AAPL. iPhone will be huge.
2. The Top 3
Yahoo! Showdown Tuesday
Macke: YHOO down 10% over last year. CEO Semel made $107 million last year.
Expect fireworks. Tuesday shareholders meeting will be ugly.
First Ethan-Oil Company
Najarian: BP may gobble up VSE. MRO grabbing more ethanol players.
Bolling: BP/VSE deal doesn't make sense.
Alzheimer's Epidemic?
Najarian: Loves MYGN for pipeline.
Macke: Expects billions of dollars in weight loss and Alzheimer's research.
3. Sector Trade
No More Cash
Bolling: Likes JKHY, but loves WU.
Adami: Buy JKHY on any pullback.
Macke: JKHY will get swallowed up or sell part of business.
4. Fast Money World
Power To The People
Hunter: Trade is HXM, CIB.
Bolling: Likes AVBPF, CX.
5. Final Trade
Bolling: SXR is a buy. $150 uranium.
Adami: DOG is a buy.
Najarian: NOK is a buy.
Macke: T is a buy.
________________
Breaking News:
Vical Inc. (VICL) said that it has been awarded a 3 year grant worth $6.0 million from the National Institute of Allergy and infectious Diseases to further develop a DNA vaccine manufacturing process. The process has the potential to produce several million doses of vaccines in a matter of days, the company said. - MarketWatch
YouTube, responding to demands that it work more aggressively to block unauthorized postings of videos on its site, is developing advanced technology to identify and fingerprint videos, the site's executives told The Wall Street Journal. YouTube is a unit of Google Inc., (GOOG) the Mountain View, Calif., search giant. YouTube's partner-development director, Chris Maxcy, told the paper that the video-sharing site found current tech inadequate for its needs and that it would begin testing its own technology. The tests, with media companies including Time Warner (TWX) and Walt Disney, (DIS) start next month, the Journal reported. - MarketWatch
SpectRx Inc. (SPRX) disclosed Tuesday that it entered a settlement agreement last week that ends pending legal disputes with Abbott Laboratories Inc. (ABT) . - MarketWatch
Goldman Sachs (GS) Asset Management has taken a 13 per cent share in RadioShack (RSH), the US consumer electronics chain, in a move that highlights the continuing investor interest in the prospects for a turnround or buy-out of the retailer. - FT
Geron's Telomerase Inhibitor Cancer Drug Demonstrates Good Pharmacokinetics and Tolerability in Phase I/II Trial - MarketWatch
Lehman Brothers Holdings Inc. (LEH) today reported record net income of $1.3 billion, or $2.21 per common share (diluted), for the second quarter ended May 31, 2007, representing increases of 27% and 31%, respectively, from net income of $1.0 billion, or $1.69 per common share (diluted), reported for the second quarter of fiscal 2006. Net income and earnings per common share (diluted) for the second quarter of fiscal 2007 increased 11% and 13%, respectively, from net income of $1.1 billion, or $1.96 per common share (diluted), reported for the first quarter of fiscal 2007.
Reuters writes that floor brokers at the New York Stock Exchange (NYX) will be permitted to have access to other markets.
Reuters reports that Toyota (TM) sold more vehicles worldwide than GM (GM) in 2006.
Reuters writes that Texas Instruments (TXN) lowered its estimates for the current quarter due to weak calculator sales.
Reuters also writes that Apple (AAPL) has built a version of it Safari internet browser that will work on PCs and compete with Microsoft's (MSFT) Internet Explorer.
The Wall Street Journal writes that Google (GOOG) YouTube will begin testing electronic fingerprinting technology with content from Time Warner (TWX) and Disney (DIS).
The Wall Street Journal also reports that Warner Brothers will launch nationwide on-demand films at the same time that it releases DVD versions of the same content.
The Wall Street Journal also writes that Nokia (NOK) has sued Qualcomm (QCOM) over patented technology.
The New York Times reports that Take-Two (TTWO) reported its sixth consecutive quarterly loss.
Barron's writes that Fidelity Investments has sold its stake in Dow Jones.
M&A Activity:
Cal Dive International Inc., which contracts diving and pipe-laying services for oil and natural gas companies, has agreed to buy Horizon Offshore Inc. (HOFF) in a cash-and-stock deal worth $628 million. - AP
Veolia Energy and TNAI Holdings LLC announced today a definitive agreement under which Veolia Energy North America will acquire from TNAI Holdings all of the capital stock of Thermal North America, Inc. ("TNAI"), the holding company for The Trigen Companies ("Trigen"). Veolia Energy is the energy services division of Veolia Environnement (VE) a global leader in environmental services.
IPO Central:
Pricings:
ComScore on Tuesday set an estimated price range of $14-$16 a share in its upcoming initial public offering. The Reston, Va.-based maker of consumer tracking software plans to issue 5 million shares for proceeds of $75 million. It'll trade on the Nasdaq under the symbol SCOR. Credit Suisse and Deutsche Bank are underwriting the deal. - MarketWatch
Ethanol maker Biofuel Energy Corp. on Tuesday cut the price range of its IPO to $13-$14 a share from $16-$18 a share. The Denver company kept the size of the deal at 9.5 million shares. Under the new terms, the company will raise about $128 million with underwriters J.P. Morgan, Citi and A.G. Edwards. Biofuel Energy plans to trade on the Nasdaq under the symbol BIOF. - MarketWatch
Filing:
Chinese developer KWG Property Holdings Ltd. plans to raise up to US$583 million in an initial public offering in Hong Kong, according to a term sheet seen by Dow Jones Newswires Tuesday. - MarketWatch
Stock Split Announcement:
EMCOR Group, Inc. (Ticker: EME) announced that its board of directors approved a 2 for 1 stock split.
Largest 30 (of 42) Projected BDI Additions to the Russell 1000
Ticker Name Price Trade Value Sector Shares to B/S Days of ADV
SLB SCHLUMBERGER ORD 78.76 2,987,500,000 Energy 37,931,000 37,931,200
TYC TYCO INTL ORD 33.80 2,348,000,000 Industrials 69,467,000 69,466,600
RIG TRANSOCEAN ORD 96.96 899,200,000 Energy 9,274,000 9,273,800
CCL CARNIVAL ORD 49.00 725,900,000 Consumer Discretionary 14,815,000 14,814,900
ACE ACE ORD 61.28 702,400,000 Financials 11,463,000 11,462,800
ACN ACCENTURE A ORD 39.70 579,400,000 Information Technology 14,596,000 14,595,700
WFT WEATHERFORD INTL ORD 53.37 571,800,000 Energy 10,713,000 10,713,300
IR INGER RAND ORD 51.15 545,200,000 Industrials 10,660,000 10,659,600
XL XL CAPITAL ORDINARY A 81.44 532,000,000 Financials 6,532,000 6,532,300
GSF GLOBALSANTAFE ORD 67.93 491,900,000 Energy 7,241,000 7,240,800
STX SEAGATE TECH HLD 20.90 387,800,000 Information Technology 18,556,000 18,556,200
NE NOBLE ORD 89.58 381,300,000 Energy 4,257,000 4,256,800
CBE COOPER INDUSTRIES A ORD 53.68 337,500,000 Industrials 6,287,000 6,287,200
BG BUNGE ORD 75.03 322,300,000 Consumer Staples 4,295,000 4,295,000
NBR NABORS INDSUSTRIES ORD 34.20 310,000,000 Energy 9,064,000 9,063,800
MDR MCDERMOTT INTL ORD 77.08 272,400,000 Industrials 3,534,000 3,534,300
MRVL MARVELL TECHNLGY ORD 16.45 246,700,000 Information Technology 15,000,000 14,999,600
DOX AMDOCS ORD 37.75 237,000,000 Information Technology 6,279,000 6,279,400
GRMN GARMIN ORD 63.82 234,100,000 Consumer Discretionary 3,669,000 3,668,500
RE EVEREST RE GROUP ORD 103.95 233,600,000 Financials 2,248,000 2,247,700
FWLT FOSTER WHEELER ORD 102.54 229,300,000 Industrials 2,237,000 2,236,600
AXS AXIS CAP HOLDINGS ORD 38.03 208,000,000 Financials 5,470,000 5,469,800
RCL ROYAL CARIB ORD 42.59 201,800,000 Consumer Discretionary 4,739,000 4,739,200
WTM WHITE MTN INS ORD 585.90 189,900,000 Financials 324,000 324,100
PRE PARTNERRE ORD 75.16 148,300,000 Financials 1,973,000 1,973,000
RNR RENAISSANCE RE ORD 57.12 146,800,000 Financials 2,571,000 2,570,800
ACGL ARCH CAPITAL GP ORD 71.01 128,600,000 Financials 1,810,000 1,810,400
CETV CENTRAL EURO ORD 88.54 97,200,000 Consumer Discretionary 1,098,000 1,097,600
UTIW UTI WORLDWIDE ORD 27.71 87,100,000 Industrials 3,143,000 3,142,800
LAZ LAZARD ORD 50.04 81,900,000 Financials 1,637,000 1,637,400
Read the complete 8-page document about Russell Rebalancing at:
http://icecoldstocks.com/pdf/RusReb.pdf
Economic Data:
2:00 Treasury Budget
Upgrades and Downgrades by Sector:
Airlines - Passenger
GOL Gol Intelligent Airlines Calyon Securities Upgraded from Add to Buy $34 to $41
TAM TAM S.A. Calyon Securities Upgraded from Add to Buy $29 to $41
Broadcasting
TV Grupo Televisa Credit Suisse Downgraded from Outperform to Neutral
Computer Hardware
AAPL Apple JMP Securities Price Target Raised Mkt Outperform $112 to $125
Computer Software
TTWO Take-Two Kaufman Bros Upgraded from Sell to Hold $18
TTWO Take-Two JP Morgan Upgraded from Neutral to Overweight
TTWO TTWO - upgraded to Overweight at J.P. Morgan Upgraded
ULCM Ulticom Cantor Fitzgerald Cut Price Target Hold $8.50 to $8
VRNT Verint Systems CIBC Wrld Mkts Cut Price Target Sector Outperform $40 to $37
Financial
PNNT Pennant Investment Friedman Billings Cut Price Target Outperform $17.50 to $17
Healthcare
KV.A K-V Pharmaceutical JP Morgan Upgraded from Neutral to Overweight
IMA Inverness Medical Jefferies & Co Price Target Raised Buy $55 to $60
GNBT Generex Biotech Rodman & Renshaw Initiated at Mkt Outperform $6
Healthcare Equipment
CYTC CYTYC Corp RBC Capital Mkts Price Target Raised Sector Perform $32 to $46.46
Healthcare Facilities
FMS Fresenius Medical Wachovia Initiated at Outperform
LCAV LCA Vision Matrix Research Downgraded from Buy to Hold
Household Goods
ECL Ecolab Credit Suisse Upgraded from Neutral to Outperform $49 to $50
Insurance
HLEX HealthExtras First Albany Price Target Raised Strong Buy $34 to $36
PMACA PMA Capital Friedman Billings Price Target Raised Outperform $11.50 to $12.50
Major Pharmaceutical
NRMX Neurochem Piper Jaffray Cut Price Target Underperform $6.50 to $4
Mining - Minerals
POT Potash RBC Capital Mkts Price Target Raised Outperform $75 to $88
Mining - Steel & Iron
X U.S. Steel Bear Stearns Downgraded from Outperform to Peer Perform
Oil and Gas
TTI TETRA Tech Matrix Research Upgraded from Hold to Buy
ECA ECA removed from the conviction sell list Removed
FST FST removed from Conviction Buy list and SU added Removed
RIG Transocean RBC Capital Mkts Price Target Raised Outperform $105 to $118
Paper and Packaging
BOW Bowater Matrix Research Downgraded from Hold to Strong Sell
Regional Banks
CBH Commerce Bancorp Oppenheimer Downgraded from Buy to Neutral
Restaurants
WEN Wendy's UBS Price Target Raised Neutral $36 to $41
Retail Trade
JOSB Jos. A. Bank First Albany Upgraded from Sell to Neutral
Technology - Games
GLUU Glu Mobile Kaufman Bros Initiated at Buy $16
Telecommunications
JDSU JDS Uniphase Bernstein Upgraded from Mkt Perform to Outperform
JNPR Juniper Networks RBC Capital Mkts Price Target Raised Sector Perform $18 to $26
QXM Qiao Xing Mobile Cowen & Co Initiated at Outperform
QXM Qiao Xing Mobile CIBC Wrld Mkts Initiated at Sector Outperform $12
Transportation
ACLI American Comm Lines Cantor Fitzgerald Cut Price Target Buy $44 to $34
CPNO Copano Energy UBS Initiated at Buy
Anonymous comments are disabled
The above content is provided for educational and informational purposes only, does not constitute a recommendation to enter in any securities transactions or to engage in any of the investment strategies presented in such content, and does not represent the opinions of Zecco or its employees.