Tuesday Morning, July 17th
Dow Stock News
AXP - upgraded to Buy at Goldman Sachs
Johnson & Johnson today announced second-quarter sales of $15.1 billion, an increase of 13.2% as compared to the second quarter of 2006. Operational growth was 10.8% and currency contributed 2.4%. Domestic sales were up 9.0%, while international sales increased 18.4%, reflecting operational growth of 13.0% and a positive currency impact of 5.4%. On a pro-forma basis, including the net impact of the acquisition of Pfizer Consumer Healthcare in both periods, worldwide sales increased 3.6% operationally.
Coca-Cola (KO) Co. posted a 1% increase in second-quarter net income amid charges and a year-earlier gain, with the company continuing to see strong international results.
The Atlanta beverage giant, whose brands include its namesake soda as well as Sprite, Minute Maid and Dasani, reported net income of $1.85 billion, or 80 cents a share, compared with $1.84 billion, or 78 cents a share, a year earlier. The latest period included charges of five cents a share primarily related to restructuring and an equity investee. Prior-year results included a four-cent investment gain. - WSJ
Wall St. brokerage firm Merrill Lynch (MER) said Tuesday that its second quarter net income rose 31% to $2.14 billion, or, $2.24 a share, compared to $1.63 billion, or, $1.63 a share a year ago. Analysts polled by Thomson First Call had expected the company to earn $2.02 for the quarter. Revenue climbed 19% in the quarter to $9.73 billion from $8.17 billion. Analysts polled by First Call had expected revenue of $9.25 billion for the quarter. - MarketWatch
According to Reuters, the CEO of McDonald's (MCD) believes that the company can still grow a great deal in the US. back to top
Ice Man Stocks
Breakouts the Ice Man may consider trading:
RS - 64
CERN - 59
IBM - 110.05
Regular Trades the Ice Man may consider:
HUM - 62.85
NHWK - 19
Depressed stocks the Ice Man may buy:
CFC - 33.65 Gap
TSL - 58.20 Gap
AEM - 41 Gap
AKAM - 47.50 Gap
RIO - 49.40 Gap
RYAAY - 37.80 Gap
AVR - 15.70 Gap
NAT - 40.90 Gap
Dollar Man Ideas:
PWER - 4.50
GOAM - 5.50
CRWN - 7.50
Depressed Dollar Man
CHCG - 6.65
Media Commentators
Cramer's Comments:
Bullish: PHG, WGOV, ASD, DYN
Ice Cold Commentators
Break Man Video Summary:
Swing Man Market Recap:
CNBC Fast Money Review
News and Events Digest
Breaking News
Google is developing a new search service for cellphones that will help consumers find and buy ringtones, games and other mobile content. - WSJ
Acergy S.A. (ACGY) announced today that Murphy Sabah Oil Co had awarded a contract for the Kikeh Gas Pipeline Project to TL Offshore Sdn. Bhd. The deepwater pipeline installation part of this contract will be performed by the Sapura 3000 deepwater pipelay vessel which is owned by the SapuraAcergy joint venture. The contract is for the construction of the gas export pipeline from the deepwater Kikeh field offshore Malaysia to the onshore Labuan Gas Terminal.
Medtronic Inc. (MDT) on Monday said it received approval from the Food and Drug Administration to market its artificial neck disc in the U.S. - MarketWatch
Isle of Capri Casinos Inc. on Monday delayed the filing its reports for its fourth quarter and fiscal year due to ongoing restatements of 2006 results, and said it expects to report a loss for 2007. - AP
Media Summary:
Reuters writes that Hollywood is starting labor negotiations with screenwriters with revenue from the internet as a major deal point.
The Wall Street Journal writes that a special committee of the Dow Jones (DJ) has accepted Rupert Murdoch's offer of $5 billion. The deal now goes to the board and founding Bancroft family.
The Wall Street Journal writes that Google (GOOG) is developing a new search engine for phones.
The Wall Street Journal writes that Sprint (S) will launch a new service that will allow customers to find and track their friends using GPS technology.
The FT writes that a lawsuit charges that Facebook may have taken its source code from another project.
The FT also writes that oil prices are near their all-time high.
The FT also writes that Barclays (BCS) will sweeten its bid fof ABN Amro (ABN) now that a competing bid has been increased.
The New York Times writes that Nintendo is getting more support for its game system from video game publishers.
The New York Times also writes that Ford (F) is having success selling cars in Russia.
Barron's writes that Novellus (NVLS) announced earnings inline with expectations.
M&A Activity:
Basell agreed to buy Lyondell for $12.66 billion, or $48 per share, less than a week after its bid for chemical manufacturer Huntsman was rejected in favor of a better offer. - WSJ
News Corp. reached a tentative agreement to buy Dow Jones at its original $5 billion offer price, although the Bancroft family remains divided. The deal will be put to the full Dow Jones board on Tuesday evening. - WSJ
LKQ Corp., which recycles parts from damaged cars, said Tuesday it is buying Keystone Automotive Industries Inc. for about $811 million in cash, in a move to expand its presence in the distribution of auto replacement parts. - AP
Radiological services provider NightHawk Radiology Holdings Inc. (NHWK) said it acquired two units of St. Paul Radiology, including its business services division, for $62.5 million in cash to expand its service offering. - Reuters
Economic Data:
8:30 PPI
9:00 Net Foreign Purchases
9:15 Industrial Production
9:15 Capacity Utilization
Upgrades and Downgrades by Sector:
Aerospace
ORB Orbital Sciences Wachovia Upgraded from Mkt Perform to Outperform
EDO EDO Corp Friedman Billings Price Target Raised Outperform $40 to $44
ETN Eaton Friedman Billings Price Target Raised Mkt Perform $93 to $102
Airlines
CPA Copa Holdings JP Morgan Upgraded from Neutral to Overweight
Airlines - Passenger
AMR AMR Corp UBS Upgraded from Reduce to Neutral
DAL Delta Air Lines UBS Upgraded from Reduce to Neutral
UAUA UAL Corp. UBS Upgraded from Reduce to Neutral
Broadcasting
IACI InterActive Banc of America Sec Initiated at Neutral $37
Brokerage Services
GFIG GFI Group Citigroup Downgraded from Buy to Hold
Chemicals
ROH Rohm and Haas Citigroup Upgraded from Hold to Buy
Computer Hardware
DELL Dell Credit Suisse Price Target Raised Outperform $32 to $35
SNDK SanDisk Oppenheimer Price Target Raised Buy $53 to $60
MERX Merix Needham & Co Cut Price Target Buy $11 to $10
INVX Innovex Needham & Co Coverage Dropped Buy $2
Computer Services
SAPE Sapient Friedman Billings Upgraded from Mkt Perform to Outperform $7.50 to $10
GSIC GSI Commerce Jefferies & Co Initiated at Hold $26
SVVS SAVVIS Comm(b;) Kaufman Bros Hold $55
Computer Software
BEAS BEA Systems Credit Suisse Upgraded from Neutral to Outperform $14 to $17
COGN Cognos JMP Securities Upgraded from Mkt Outperform to Strong Buy $50
VRNT Verint Systems Friedman Billings Price Target Raised Outperform $35 to $37
INFN Infinera Lehman Brothers Initiated at Equal-weight $27
KNXA Kenexa Soleil Initiated at Buy $50
Construction
FIX Comfort Sys USA KeyBanc Capital Mkts / McDonald Initiated at Hold
JEC Jacobs KeyBanc Capital Mkts / McDonald Initiated at Buy $73
AMWD American Wdmrk Matrix Research Downgraded from Strong Buy to Hold
Finance Companies
AMG Affiliated Managers AG Edwards Downgraded from Buy to Hold
Foods
IPSU Imperial Sugar BWS Financial Downgraded from Hold to Sell
HSY Hershey Foods UBS Cut Price Target Neutral $54 to $52
Healthcare
PPDI PPD Inc. Friedman Billings Price Target Raised Outperform $40 to $46
KG King Pharms Citigroup Downgraded from Hold to Sell
SEPR Sepracor Friedman Billings Cut Price Target Underperform $40 to $37
Healthcare Equipment
WAT Waters Deutsche Securities Initiated at Hold $60.50
DJO DJ Orthopedics Banc of America Sec Downgraded from Buy to Neutral
SENO Senorx Citigroup Downgraded from Buy to Hold
Homebuilders
EME EMCOR Group KeyBanc Capital Mkts / McDonald Initiated at Buy $43
Hotels - China
HMIN Home Inns Brean Murray Price Target Raised Buy $36 to $38
Hotels and Motels
MAR Marriott Matrix Research Upgraded from Hold to Buy
Insurance
AIZ Assurant KeyBanc Capital Mkts / McDonald Downgraded from Buy to Hold
Internet Services
VSCN Visual Sciences Deutsche Securities Downgraded from Hold to Sell
Major Pharmaceutical
PWR Quanta Services KeyBanc Capital Mkts / McDonald Initiated at Buy $36
Mining - Minerals
BTU Peabody Energy HSBC Securities Downgraded from Overweight to Neutral $55
CNX CONSOL Energy HSBC Securities Downgraded from Neutral to Underweight $40
Motor Vehicles
LEA Lear JP Morgan Upgraded from Neutral to Overweight
Oil and Gas
RAME RAM Energy Resources Jefferies & Co Price Target Raised Buy $6 to $6.75
DK Delek US Holdings Deutsche Securities Initiated at Hold $25
BHP BHP Limited Deutsche Securities Downgraded from Buy to Hold
CRZO Carrizo Oil & Gas Jefferies & Co Downgraded from Buy to Hold $44
WNR Western Refining(b;) Deutsche Securities Sell $48
Personal Services
CSTR Coinstar First Analysis Sec Initiated at Overweight $40
Regional Banks
LKFN Lakeland Financial Stifel Nicolaus Upgraded from Hold to Buy $26
LKFN Lakeland Financial Keefe Bruyette Upgraded from Mkt Perform to Outperform
WIBC Wilshire Bancorp Friedman Billings Upgraded from Underperform to Mkt Perform $14.50 to $13
MCBC Macatawa Bank Corporation RBC Capital Mkts Downgraded from Sector Perform to Underperform
SNBC Sun Bancorp Sterne Agee Downgraded from Buy to Hold $19
Retail Trade
TWB Tween Brands Friedman Billings Upgraded from Mkt Perform to Outperform $41 to $54
TGT Target HSBC Securities Price Target Raised Overweight $72 to $80
WTSLA Wet Seal Merriman Curhan Ford Initiated at Buy
GTRC Guitar Center Piper Jaffray Downgraded from Outperform to Market Perform
NLS Nautilus Grp Avondale Partners Downgraded from Mkt Outperform to Mkt Perform
NLS Nautilus Grp RBC Capital Mkts Downgraded from Outperform to Sector Perform
BONT Bon-Ton Stores Credit Suisse Cut Price Target Neutral $50 to $40
Security - China
CSCT China Security and Surveillance Brean Murray Price Target Raised Buy $20 to $25
Semiconductors
STEC STEC Inc CIBC Wrld Mkts Upgraded from Sector Per to Sector Outper $9
AUTH AuthenTec Morgan Keegan Initiated at Mkt Perform
WFR MEMC Elec UBS Cut Price Target Buy $80 to $77
NVLS - Smith Barney would not chase the stock here
SMDI - price target raised to $17 at HAMR
Telecommunications
IDSY I.D. Systems Dougherty & Company Initiated at Buy $14
Transportation
DRYS DryShips Jefferies & Co Price Target Raised Buy $50 to $75
DSX Diana Shipping Jefferies & Co Price Target Raised Buy $25 to $35
EGLE Eagle Bulk Shipping Jefferies & Co Price Target Raised Buy $26 to $31
EXM Excel Maritime Carriers Jefferies & Co Price Target Raised Buy $31 to $38
GNK Genco Shipping & Trading Jefferies & Co Price Target Raised Buy $52 to $59
QMAR Quintana Maritime Jefferies & Co Price Target Raised Buy $20 to $24
TBSI TBS International Jefferies & Co Price Target Raised Buy $25 to $38
Utilities
PEC Pike Electric KeyBanc Capital Mkts Initiated at Hold
Wireless Services
RCI Rogers Comms JP Morgan Initiated at Overweight
AMX and NIHD - upgraded to Buy at Goldman Sachs
TMX - downgraded to Sell at Goldman Sachs
Solar:
FSLR - price target raised to $145 at THNK
Consumer Services:
NTRI - Oppenheimer thinks it is a buy
Personal Services:
WOOF - Piper made positive comments this morning
Business Services:
CME - upgraded to Outperform at William Blair