Tuesday Morning, June 26th
Dow Stock
News
:
VZ Verizon SOLE Downgraded to Sell;
Hidden Treasure
News
:
NUCON-RF, Inc. (NNRF), with offices in Moscow, Russia, and Berlin, Germany, provides cutting edge solutions for the management of nuclear waste and power quality challenges facing the Russian, European, Asian and other markets. NNRF recently acquired 50% of ZAO Electro Machinery Building Plant ATOLL, with more than 200 employees. ATOLL had 2006 revenue of $43,137,000 and is expected to realize revenue of $120 million and pre-tax profit of $22.2 million in fiscal 2007. NNRF owns 50% of ATOLL, the maximum permitted under Russian law. NNRF 's participation in ATOLL's profits shall be received in the form of quarterly cash dividends from ATOLL.
This is compelling since NNRF’s customers through its investment in ATOLL include: Rosenergoatom, the operating utility of Russia’s nuclear facilities; Atomstroyexport, established by the Russian government to promote the export of Russian construction, operation and modernization of nuclear power plants abroad; Stroikomplektinvest, a construction supply distributor serving as Nucon’s marketing partner for power quality equipment in the Republic of Tatarstan; and the International Center for Environmental Sciences of the Federal Ministry of Nuclear Energy.
NNRF is at the forefront of providing product, technological and technical service support addressing radioactive waste, wastewater and power quality challenges including compliance, shielding, transport and storage requirements, plant equipment protection and energy efficiency. NNRF also has in-house expertise in radiological protection and radiological waste management. In addition, with the acquisition of ATOLL, NNRF, via ATOLL, is manufacturing and supplying parts and equipment for both new and existing nuclear facilities in the Russian Federation.
Read the rest of the 4-page article:
http://www.otcstockreview.com/Files/NNRF/nnrf_review.pdf
Breakouts the Ice Man may consider trading:
AMKR - 15.15
LFL - 85
RE - 108
AG - 46
Regular Trades the Ice Man may consider:
CERN - 56.70
HMC - 36.05
SNIC - 13.25
BIIB - 52.50
XRAY - 37.50
EHTH - 19.50
OSIR - 14.20 * Best Bet
Depressed stocks the Ice Man may buy:
CHDN - 49.50
ISIL - 30.80
GE - 37.80
CCJ - 50.60
Dollar Man Ideas:
ONT - 3.20
DSTI - 6.25
SKYT - 8.70 * Best Bet
SRFDF - 1.41
UPSN - 0.45
Cramer's Comments:
Cramer’s Summary will be posted under our Education Section later in the day with a link under the What’s New section. Please visit the article since it has some very intelligent comments.
Break Man Video Summary:
Break out buy watch list for short term gains June 26 includes: TONE, NSH, XRAY, AOI, IOC, THE, VZ, EWBC.
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:
It was another wild day for the market; the market sold off during the first 15 min of trading, but then quickly reversed and rallied up through lunch time. However, by lunch time the market stalled, and then began to sell off hard and took out the lows from the morning. Then a late day end of bounce materialized, however all the major indexes closed down. The Dow lost 0.1%, the S&P 500 lost about 0.3%, the Nasdaq and NDX lost 0.5%, and the Russell 2000 lost 0.9%. However, the SOX performed the worst and lost 1.5%. Financials, Brokers, and Housing were some of the hardest high sectors for the day with many of the stocks losing more than 2%. Commodity stocks didn't fare well either, such as oil/energy stocks and especially gold stocks, which both lost over 2% for the day.
I need to add a few words regarding the current trading environment: Trading has been very difficult lately with many breakout picks now following through very well and a lot of 'chop and slop'. Therefore be picky and stay mostly in cash and trade only the best setups that are taking big volume on the long side. Remember, cash is a position! The best traders wait for opportunity and for ideal setups with good risk/reward, they do not chase setups. If a setup is not ideal, don't take it! Also, buying support and selling resistance currently appears to be working the best right now.
Please View The Charts In The Swing Man Section:
The Dow and S&P 500 both fell below their 50 day MA's, which had been acting as support; this is potentially bearish. The negative thing is that I do not see any positive divergence yet on the 60 min charts. The S&P lost its 50 day MA today, however there might be some support at the bottom of this triangle, however the market needs to bounce right away in order to hold support.
However the Nasdaq, NDX, and Russell 2000 all look pretty much the same and are still holding their uptrend lines and 50 day MA's, but barely. All these indexes closed RIGHT AT their uptrend lines. So its do or die here folks.
DUG, which is the double inverse ETF to the oil/gas stock sector and the XLE and OIH ETF's, rallied today and it sure looks like it could soon break that downtrend line to trigger a bullish trend reversal. Strong positive divergence accompanies the chart via the MACD. Be on the lookout for a buy signal on DUG. However, realize that when it finally breaks the downtrend line that it could pullback and backtest the broken trendline to confirm it as support, which would actually offer a second buying opportunity.
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CNBC Fast Money Review:
1. Word on the Street
Dow Gives Up 129 Point Rally
Najarian: Brokers were spoilers. Volatile market. BSC fiasco could be bigger.
Bolling: Rumor GS could have similar problems. Could be a problem.
Adami: Sell first ask questions later. Problems could last couple weeks,
could be widespread.
Black Stone
Adami: BX still rich, probably go lower.
Macke: No reason to own.
Najarian: Overpriced.
Bolling: Wait till it finds bottom.
One Yahoo! of a Weekend
Bolling: YHOO doing right thing. Jumped on GOOG ad model.
Coming To Terms
Najarian: DJ/NWS more likely to get done. Likes July call options.
Macke: Upside is negligible.
Bolling: Would rather buy PSO.
Take Chips Off the Old Portfolio?
Adami: NVDA still rich. Take some positions off.
Najarian: At $43 good time to exit.
Tender Offer
Bolling: Brazillian meat processors on fire. PDA up 110%, SDA up 100% over last year.
Lose Some of Your Religion
Bolling: Stick with TRLG, trended higher today.
Diabetes Trade Update
Najarian: Bearish on GSK, bullish on LLY. Also like BMY on takeover rumors.
Adami: Likes MRK.
2. The Top 3
Will You Merge With Me?
Macke: Not convinced LVMUY buyout of TIF is coming, but stil go long TIF.
Adami: Global economy propelled by the rich. Good upside for TIF.
Smooth Sailing For Oracle?
Adami: ORCL up 54% since January, still own it.
Najarian: Tomorrow's earnings will be phenominal.
Bolling: Database biz is real deal. ORCL is king. No analyst sells.
Macke: Thinks earnings will be great, but take some off table.
Chartology: Gold
Bolling: Don't own gold if price drops $20 from here.
3. Face 2 Face
Inside the Housing Slump
Adami: Condos overbuilt, especially in Miami.
Bolling: Decline isn't over. Stay away.
Macke: Inventory overhang.
4. Sector Trade
Try Harder?
Macke: Rental car companies have rising expenses, no real pricing power.
Get more bullish on car makers, sell rental companies.
Adami: Get into JCI, GT, CTB. F could go to $10.
5. Final Trade
Macke: DJ is a sell.
Najarian: CNC is a buy.
Adami: DOG is a buy.
Bolling: GOOG is a buy.
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Breaking
News
:
A diabetes pill being developed by Bristol-Myers Squibb (BMY) treated patients effectively in a late-stage trial, researchers said on Monday, suggesting it could compete with Merck's (MRK) already approved Januvia, a similar treatment. - CNBC
FreightCar America Inc., (RAIL) the Chicago producer of railroad-freight cars, with particular expertise in coal-carrying railcars, said it expects second-quarter net income to range 85 to 95 cents a share. A survey of four analysts by Thomson Financial produced a consensus estimate of $1.20 for the quarter. "The North American market for most railcar types has softened considerably since last year and industry orders and backlogs have declined," the company said in a statement. FreightCar America also said it received a customer's commitment to purchase 1,900 hopper railcars. - MarketWatch
Mylan Laboratories Inc. (MYL) received final clearance from the Food and Drug Administration for ondansetron hydrochloride tablets and orally disintegrating tablets. The drug is the generic version of GlaxoSmithKline's Zofran, which treats nausea associated with cancer treatments. - MarketWatch
BlackRock Inc. (BLK) said it's agreed to buy the funds of funds business of Quellos Group for up to $1.7 billion. BlackRock said the deal will make it one of the largest funds-of-funds provider, with over $25.4 billion under management. Terms are for BlackRock to pay $562 million in cash and $188 million in stock upfront, and up to another $970 million in cash over three-and-a-half years depending on performance. Jeffrey Greenstein, CEO of Quellos, will retire while Quellos chief investment officer, Bryan White, will be global head of the combined funds of funds platform. None of the Quellos activities being probed on tax strategies will be acquired and none of the related potential liabilities will be assumed by BlackRock in this transaction. - MarketWatch
Textron Inc (TXT) said on Monday it has won a $255.5 million increase to an existing contract to build 369 more M1117 Armored Security Vehicles (ASV) for the U.S. Army. - Reuters
SNDK - earnings raised after trip to Asia at Citigroup;
Media Summary:
Reuters writes that the Justice Department has begun a probe of BEA Systems over the firm's compliance with anti-corruption laws.
Reuters writes that a US tire importer, Foreign Tire Sales, has asked the US government for help recalling 450,000 defective Chinese tires made by Hangzhou Zhongce Rubber.
The Wall Street Journal writes that Bear Stearns (BCS) shares fell near a one-year low on concerns that the company's hedge fund problems could get worse.
The Wall Street Journal writes that a good deal of the refinery capacity in the US remains idle due to "maintenance shutdowns, outages that will likely help keep fuel prices high"
The Wall Street Journal writes that a UAW cost-cutting deal with Delphi is raising hope that the Big Three can get improved financial arrangement with the big union.
The Wall Street Journal writes that the European Union is likely to recommend Nokia's (NOK) mobile-TV technology as its standard, giving it the nod over Qualcomm's (QCOM) MediaFlo.
The Wall Street Journal writes that ConocoPhillips (COP) will walk away from its operations rather than take a government deal to give it a minority interest in projects there.
The New York Times writes that Legendary, the production company of the venture capitalist Thomas Tull, will invest $1 billion in a portfolio of films co-produced by Warner Brothers Pictures.
The FT reports that Google (GOOG) has requested that the Justice Department extend the time period of its oversight of Microsoft's (MSFT) compliance with antitrust laws.
Barron's writes that money manager DE Shaw has take a 5% interest in Autozone.
M&A Activity:
Iberdrola agreed to pay $4.58 billion for Energy East, as the Spanish utility expands in the U.S., especially in renewable energy. - WSJ
Applied Materials, Inc. today announced that it has agreed to acquire HCT Shaping Systems SA (HCT), a privately-held company based in Switzerland. HCT is the world's leading supplier of precision wafering systems used principally in manufacturing crystalline silicon (c-Si) substrates for the solar industry. Under terms of the agreement, Applied will pay approximately CHF 583 million (or approximately US$475 million at the current exchange rate) in cash for all of the outstanding shares of HCT. The acquisition is part of Applied's strategy to accelerate customers' ability to reduce the costs of photovoltaic (PV) cell manufacturing to make solar energy more competitive with grid electricity.
Roche Holding AG unveiled an unsolicited tender offer of about $3 billion, or $75 a share, for Ventana Medical Systems Inc., in a move aimed at broadening the Swiss health-care company's diagnostic portfolio. - WSJ
IPO Central:
Filing:
CampusU Inc. on Tuesday filed to raise up to $29 million in an initial public offering with underwriters Maxim Group LLC. The Leesburg, Va. Internet-based, interactive merchandising, marketing and media company focused on the college student market plans to trade on the Nasdaq under the symbol CMPS. The company rang up a net loss of $2 million on revenue of nearly $5 million in the three months ended March 31. - MarketWatch
Economic Data:
10:00 - Consumer Confidence
10:00 - New Home Sales
Upgrades/Downgrades:
Advertising
VCLK ValueClick OPCO Upgraded to Buy $36
Beverages
CSG Cadbury Schweppes Citigroup Downgraded from Buy to Hold
Biotech
CELG Celgene Lehman Brothers Upgraded from Equal-weight to Overweight
GENZ Genzyme Lehman Brothers Upgraded from Equal-weight to Overweight
EURX Eurand Deutsche Securities Initiated at Buy $23
EURX Eurand Banc of America Sec Initiated at Buy $19
TRBN Trubion Pharma Friedman Billings Initiated at Mkt Perform $35
BIIB Biogen Idec Lehman Brothers Downgraded from Overweight to Equal-weight
Business Services
TTGT Techtarget RBC Capital Mkts Initiated at Outperform
TTGT Techtarget Lehman Brothers Initiated at Equal-weight $16
Computer Hardware
AAPL Apple RBC Capital Mkts Initiated at Outperform $160
Computer Services
RATE Bankrate Oppenheimer Initiated at Neutral $53
TLVT Telvent Merrill Lynch Downgraded from Buy to Neutral
Computer Software
PMTC Parametric Technology Goldman Sachs Upgraded to Buy
BPHX CEUT Price Target Raised $23
CVLT Commvault Systems JMP Securities Initiated at Mkt Outperform $20
SMSI Smith Micro Software JP Morgan Initiated at Overweight
ADBE Adobe Systems Goldman Sachs Downgraded to Neutral
Foods
WINN Winn-Dixie Stores Friedman Billings Upgraded from Mkt Perform to Outperform $35
Gaming Equipment
CKNN Cash Systems Merriman Curhan Ford Initiated at Buy
Gaming Operations
WMS WMS Industries Morgan Joseph Pirce Target Raised Buy $31 to $34
Healthcare
HGSI Human Genome Lehman Brothers Downgraded from Overweight to Equal-weight
MLNM Millennium Pharm Lehman Brothers Downgraded from Overweight to Equal-weight
ZOLL ZOLL Medical Sun Trust Rbsn Humphrey Initiated at Buy $28
Mfg-A/V Equip
DLB Dolbys Labs JP Morgan Upgraded from Neutral to Overweight
Mining - Steel & Iron
MT Arcelor Mittal Merrill Lynch Downgraded to Neutral
Real Estate
YSI U-Store-It Wachovia Upgraded from Underperform to Mkt Perform
Restaurants
CMG Chipotle Mexican Grill Lehman Brothers Initiated at Equal-weight
Retail Trade
DLIA Delia*s First Albany Initiated at Neutral
Telecommunications
DGIT DG FastChannel(b;) Roth Capital Resumed Coverage Buy $29
RIMM Research in Motion Friedman Billings Price Target Raised $170
Utilities
AYE Allegheny Energy Jefferies & Co Upgraded from Hold to Buy $56 to $61
EAS Energy East Jefferies & Co Upgraded from Underperform to Hold
EIX Edison Jefferies & Co Upgraded from Hold to Buy $56 to $62
Water Treatment Equipment
BWTR Basin Water Nollenberger Capital Initiated at Buy $12.80
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