Tuesday Morning, June 24th
SITE NEWS
New IceMD Recording:
COLONOSCOPY- What It Is And Why We Need It;
Dow Stock News
DuPont Co., (DD) the Wilmington, Del., giant with interests in agriculture and food, building and construction, communications and transportation, reported second-quarter net income was about flat on 5.1% higher revenue. Earnings were $972 million compared with $975 million in the year-earlier period. Share earnings were flat at $1.04. The year-earlier results included a tax benefit of $31 million, or 3 cents a share. Excluding the benefit, year-ago adjusted profit was $1.01 a share. Total revenue reached $8.24 billion from $7.84 billion. Sales rose 5.8% to $7.88 billion. A survey of analysts by Thomson First Call produced consensus estimates of $1.06 of earnings on $7.86 billion of sales. "The year-over-year improvement in underlying results principally reflects higher local prices, favorable currency impact, volume growth outside the U.S. and higher pharmaceutical income ... partly offset by higher ingredient costs and increased cost investments," DuPont said in a statement. The investments, it said, were designed to speed biotech research and development, expand global sales coverage in seeds, and increase production capacity in Kevlar and Nomex, photovoltaics, and select China facilities. DuPont affirmed that it expects to earn an adjusted $3.15 a share in 2007. The figure excludes a 6-cent charge for special items taken in first-quarter 2007. Thomson's survey is looking for $3.18 a share. - MarketWatch
Top U.S. telecommunications service provider AT&T Inc. reported a rise in quarterly profit and revenue Tuesday, helped by growth in wireless and Internet subscribers.
Second-quarter net profit rose to $2.9 billion, or 47 cents a share, from $1.8 billion, or 46 cents a share. - CNN
McDonald's Corporation (MCD) today announced strong operating results for the second quarter fueled by comparable sales growth. Quarterly highlights included:
-- Revenues increased 12% (8% in constant currencies) driven by a global comparable sales increase of 7.4%
-- Company-operated and franchised restaurant margins improved for the sixth consecutive quarter
-- Results for the quarter reflected the impact of the previously announced developmental license transaction in 18 countries in Latin
America and the Caribbean, which resulted in a net loss per share of $0.60. Excluding the $1.31 per share impact of this transaction,
second quarter 2007 earnings per share from continuing operations were $0.71. Second quarter 2006 earnings per share from continuing operations were $0.56
-- The Company repurchased $664 million of its stock
The New York Times writes that Hewlett-Packard (HPQ) has agreed to buy software company Opsware.
Reuters also reports that quarterly earnings rose at American Express (AXP).
The Wall Street Journal reports that Wall St. firms postponed at $3.1 billion offering for an LBO of GM's (GM) Allison unit.
DD DuPont BB&T Capital Mkts Downgraded from Buy to Hold
AXP American Express Stifel Nicolaus Price Target Raised Buy $67 to $71
AXP American Express Friedman Billings Downgraded from Outperform to Mkt Perform $67 to $70 back to top
Ice Man Stocks
For a printable version of the Ice Man's picks, <print.shtml>click here.
Breakouts the Ice Man may consider trading:
SWIR - 28.10
EDU - 59.70 * Best Bet
BOOM - 40.40
ONNN - 12
SAFM - 48
NCTY - 52.50
SKIL - 9.40
SBS - 52
KB - 98 * Best Bet
ASIA - 10.50
ROS - 60
DCI - 39
Regular Trades the Ice Man may consider:
FFHL - 9
DISH - 45.10
ZMH - 90
CCC - 13
MRX - 31.50
KERX - 8.90
MEDX - 15
IMMR - 18.50 = 20.50
FSIN - 13.50
ABBI - 22
Depressed stocks the Ice Man may buy:
AVCI - Breaking Below 10
FFIV - 85.30
TASR - 15.85 G * Best Bet
UPL - 54.25 G
EXPE - 24.60 G
CELG - 56.25 G
SILC - 18.65 G
TXN - 35.05 G
AXP - 61.90 G * Best Bet
DSPG - 16.25 G
AKAM - 48.10 G
TNH - 109 G
CMI - 106.50 G
Dollar Man Ideas:
WON - 5.75
ACRI - 0.52
ANO - 3
BLTI - 6.90
DEPO - 2.56
SOFO - 3 = 3.70 G
PTCH - 2.50
HOTJ - 1.10
Depressed:
ISPH - 5.15
Media Commentators
Cramer's Comments:
Bullish: SNDK, SSW, GMR, FRO, OCNF, SEA
Louis Navallier:
Positive: VSEA
Negative: CAE, HES, NTRI, VCP
Ice Cold Commentators
Break Man Video Summary:
Break out buy watch list for short term gains July 24 includes: CL, ACN, LOCM, TOL, USG, EIX, ANO, SWC, SAPE.
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
CNBC Fast Money Review
Fast Money Review For 7-24-2007
1. Roller Coaster Market Dow Jumps 92
The headline: U.S. Stocks Jump Most in a Week on Merck's Earnings, Takeovers... Drug, Energy Shares Lead Gains; Financials Continue to Trail Market.
Bolling: says M&A activity fueled market Monday. Najarian: adds performance came from T, MCD, and other internationally exposed companies.
Adami: says there’s volatility but he likes this market.
Macke: is cautious.
2. Word On The Street
The headline: TXN Plunges After Hours On Weak Profit, Sales Najarian: says TXN can’t get out of it’s own way. Feels the stock is overvalued.
Adami: and Bolling: are bullish and both recommend buying TXN on the dip.
Macke: says TXN was a sell-off looking for an excuse. The headline: AXP Falls After Hours On Light Revenue Adami likes AXP, says by 2010, 60% of all transactions will be done by credit cards. Calls AXP is a long-term plastic play and says forget the earnings. Macke: thinks it’s ok to buy stock with a stop underneath. Najarian: expects to see pullbacks in all financial names. Bolling: says don’t be a hero and catch the falling knife. He doesn’t like financials.
3. The Top 3
Big Pharma Is Back After weak earnings from PFE last week, MRK and SGP came out with results that blew away the street. How real is Merck’s performance? “Very real’ Says Hackman, Merck has a new diabetes drug called Januvia that’s benefiting from safety concerns that surfaced last month with the diabetes drug Avandia, which is from GSK. Najarian: tells the panel to sell into the news. Take some off the table. Bolling: thinks the stock is a buy for technical reasons. $100 Oil: Not If - But When Not long ago, $50 oil unimaginable. But since clearing $50 almost 3 years ago, the big question has become not if, but when will oil reach $100. Bolling: if oil touches $100, stay out of airlines and homebuilders.
Best trades, integrated oil companies, oil services and SU. Macke says if the scenario plays out consumers will cocoon. He likes HPQ, DELL, INTC. He adds get long online shopping names such as AMZN, EBAY,and FDX. Adami: likes JEC in this scenario. Najarian: prefers solar stocks such as STP if the market gets to $100. Copper's Top Stock Want to make a bet on the expanding global world? You may find the best one in Phoenix, Arizona. It's FCX which became the world's largest copper producer this year and the stock hasn't looked back since. What's the move tomorrow before the earnings Wednesday? Bolling: Commodity bull markets last 10-15 years, we’re 3 years into this one. Stock is a buy. Adami: thinks stock could go to $120.
4. Earning’s Edge – Netflix
NFLX shares tumbled over 12% in trading Monday. The company said it would lower prices in the hopes of trumping rival BBI. Later the same day, the company posted better-than-expected results. NFLX Chief Executive Reed Hastings says “We invented the category of on-line DVD rental, and we have over 2/3 of that market. BBI wants to grow their share so we’re feeling a bit of an intense war.’ Dylan: asks the guys what they think of NFLX? Bolling: doesn’t like the stock. He prefers DISH and CVC. Adami and Najarian: think NFLX could become a buy in the future, but not yet. Macke: NFLX needs to develop a strategic partnership to keep the company alive.
5. Earning’s Edge: Hasbro
HAS shares have been on a tear for the year, but lost 5% Monday despite posting results that beat Wall Street estimates.The culprit? Spider-Man, more accurately, concerns sales of Spider-Man toys have been soft. Dylan: asks the guys what they think of this stock. Jeff Macke, Pete Najarian and Guy Adami all say the stock is a buy on the dip.
6. Final Trade-Your First Move For Tuesday July 24th
Jeff Macke: likes MSFT. Najarian: prefers SLT. Adami: recommends AXP. Bolling: says keep an eye on GOOG and recommends owning IBM.
News and Events Digest
Breaking News
American Superconductor Corporation (AMSC), a leading energy technologies company, today announced that it has received a follow-on $70 million order for wind turbine electrical systems from Beijing-based Sinovel Wind Corporation Limited. The order calls for AMSC's wholly-owned subsidiary, AMSC Windtec, to ship the customized electrical systems to Sinovel in 2008 for use in Sinovel's 1.5 megawatt (MW) wind energy systems. AMSC Windtec turbine electrical systems provide reliable, high-performance wind turbine operation by controlling power flows, regulating voltage and controlling the pitch of wind turbine blades to maximize efficiency.
The Lockheed Martin (LMT) Northrop Grumman (NPC) Transformational Satellite Communications (TSAT) team today announced its partnership with Juniper Networks, Inc. (JNPR) to apply the company's Internet Protocol version 6 (IPv6) routing software and related expertise in the design of the team's TSAT processor/router.
Microvision (MVIS) today announced that it has signed an agreement with Motorola to develop pico projector display solutions for mobile applications leveraging Microvision's ultra-miniature laser based display engine, called PicoP(TM).
Countrywide Financial Corp (CFC) the largest U.S. mortgage lender, said on Tuesday second-quarter profit fell as mortgage banking pre-tax earnings declined by about half.
Net income for the Calabasas, California-based company fell to $485.1 million, or 81 cents per share, from $722.2 million, or $1.15, a year earlier.
Countrywide also cuts its full-year earnings forecast to a range of $2.70 to $3.30 per share from a previous range of $3.50 to $4.30 per share. - Reuters
Media Summary:
According to Reuters, Dow Jones (DJ) controlling Bancroft family met to discuss Rupert Murdoch's bid for the company and should vote later this week.
Reuters writes that revenue and income fell at Texas Instruments (TXN).
Reuters reports that subscribers fell at NetFlix (NFLX) in the most recent quarter and the company moved guidance down.
Reuters also writes that Nissan's earnings fell on a weaker product mix. The company kept its forecast for the year.
The Wall Street Journal writes that BP (BP) posted a slight rise in quarterly profits.
FT writes that Expedia (EXPE) had to cut its share buy-back due to poor conditions for raising debt for the offer.
Barron's writes that Atheros (ATHR) shares fell after that company's earnings announcement.
Upgrades and Downgrades by Sector:
Biotech
AMLN Amylin Pharms Stanford Research Upgraded from Hold to Buy $53
HALO Halozyme Therapeutics Oppenheimer Initiated at Buy $14
STEM StemCells Merriman Curhan Ford Coverage Dropped
AMLN AMLN - added to the Conviction Buy List at Goldman Sachs
Broadcasting
CMLS Cumulus Media Citigroup Upgraded from Sell to Hold
CMLS Cumulus Media BMO Capital Markets Downgraded from Outperform to Market Perform $13 to $12
CMLS Cumulus Media Stifel Nicolaus Downgraded from Buy to Hold
Business Services
SRVY Greenfield Online Friedman Billings Coverage Dropped
Computer Hardware
NICE Nice Systems HSBC Securities Price Target Raised Overweight $37.60 to $46
AAPL AAPL - checks show a significant decline in iPhone demand says Oppenheimer
Computer Services
RNOW Rightnow Tech Credit Suisse Upgraded from Neutral to Outperform $18 to $21
CHINA CDC Corp Brean Murray Initiated at Buy $14
SIFY Sify Limited Kaufman Bros Cut Price Target Hold $8 to $7
Computer Software
JDAS JDA Software Brean Murray Price Target Raised Buy $20 to $28
JDAS JDA Software CIBC Wrld Mkts Price Target Raised Sector Outperform $20 to $26
PMTC Parametric Jefferies & Co Downgraded from Buy to Hold $20
Educational Services
APOL Apollo Group Lehman Brothers Upgraded from Equal-weight to Overweight
Finance Companies
NIDH NIHD - positive comments by Stanford
Healthcare
AFFX AFFX - Leer added to Focus List with $37 price target
Healthcare Equipment
DXCM Dexcom First Albany Downgraded from Buy to Neutral
EW Edwards Lifesci Citigroup Downgraded from Hold to Sell
VMSI Ventana Medical Banc of America Sec Downgraded from Buy to Neutral
Healthcare Facilities
LPNT Lifepoint Hospitals Stifel Nicolaus Downgraded from Buy to Hold
LPNT Lifepoint Hospitals CIBC Wrld Mkts Downgraded from Sector Outperform to Sector Perform $45 to $34
Healthcare Services
LNCR LNCR - Jefferies says to be cautious
Homebuilders
WLT Walter Inds Brean Murray Downgraded from Buy to Hold
Industrial Equipment
ASTE Astec Industries BB&T Capital Mkts Downgraded from Buy to Hold
Internet Services
CCOI Cogent Communications Jefferies & Co Initiated at Buy $40
Jewelry
CTHR Charles & Colvard Northland Securities Cut Price Target Outperform $8 to $7
Manufacturing
AYI Acuity Brands CIBC Wrld Mkts Price Target Raised Sector Perform $65 to $70
WGOV Woodward Governor Friedman Billings Price Target Raised Mkt Perform $44 to $55
TASR TASER Feltl & Co. Downgraded from Buy to Hold
Mining - Steel & Iron
CMC Commercial Metals Matrix Research Upgraded from Buy to Strong Buy
Motion Pictures
NFLX Netflix Needham & Co Downgraded from Buy to Hold
NFLX Netflix Lehman Brothers Downgraded from Overweight to Equal-weight
NFLX Netflix Cantor Fitzgerald Cut Price Target Hold $19 to $18
NFLX Netflix Jackson Securities Cut Price Target Hold $21 to $16
Oil and Gas
HAL Halliburton Friedman Billings Price Target Raised Outperform $40 to $45
CHK Chesapeake Energy Fortis Bank Downgraded from Buy to Hold $36 to $38
GSF GlobalSantaFe Jefferies & Co Downgraded from Buy to Hold $83
SJT San Juan Basin Royalty AG Edwards Downgraded from Buy to Hold
Paper and Packaging
SON Sonoco Products Matrix Research Upgraded from Buy to Strong Buy
Personal Services
CHE Chemed JP Morgan Initiated at Overweight
NVT Navteq Bear Stearns Downgraded from Outperform to Peer Perform
Publishing
LEE Lee Enterprises Wachovia Upgraded from Underperform to Mkt Perform
Regional Banks
WB Wachovia Citigroup Upgraded from Hold to Buy
PFB PFF Bancorp Friedman Billings Cut Price Target Mkt Perform $23 to $21
WSBC WesBanco Inc Friedman Billings Cut Price Target Mkt Perform $33 to $29
Rental Services
URI United Rentals JMP Securities Downgraded from Mkt Outperform to Mkt Perform
URI United Rentals Jefferies & Co Downgraded from Buy to Hold $39 to $34.50
Restaurants
MSSR McCormick & Schmick's Sun Trust Rbsn Humphrey Initiated at Buy $31
Retail Trade
PBY Pep Boys RBC Capital Mkts Upgraded from Underperform to Sector Perform
GME Gamestop Credit Suisse Price Target Raised Outperform $40 to $46
DFS Discover Financial Services Citigroup Initiated at Sell $24
WSM Williams-Sonoma Matrix Research Downgraded from Hold to Sell
Semiconductors
UCTT Ultra Clean Holdings Needham & Co Upgraded from Hold to Buy $23
UCTT Ultra Clean Holdings Stanford Research Upgraded from Hold to Buy
ALTR Altera First Albany Price Target Raised Buy $24.50 to $32
ATHR Atheros Communications Needham & Co Price Target Raised Buy $31 to $34
ATHR Atheros Communications Caris & Company Price Target Raised Above Average $30 to $35
ATHR Atheros Communications First Albany Price Target Raised Buy $32 to $35
TXN Texas Instruments Needham & Co Price Target Raised Buy $40 to $42
TXN Texas Instruments Stifel Nicolaus Price Target Raised Buy $40 to $44
ATHR Atheros Communications Piper Jaffray Downgraded from Outperform to Market Perform
KLAC KLA-Tencor Citigroup Downgraded from Buy to Hold
VLTR Volterra Semi Caris & Company Cut Price Target Above Average $16 to $15
Telecommunications
CRNT Ceragon Morgan Joseph Upgraded from Hold to Buy $16
TU Telus RBC Capital Mkts Upgraded from Sector Perform to Outperform
CRNT Ceragon Sanders Morris Harris Price Target Raised Buy $14 to $17
CRNT Ceragon First Albany Price Target Raised Buy $16 to $18
CELL Brightpoint Credit Suisse Initiated at Outperform $18
ROSG Rosetta Genomics Oppenheimer Initiated at Buy $11
CRNT Ceragon Susquehanna Financial Downgraded from Positive to Neutral
TKC Turkcell Bear Stearns Downgraded from Outperform to Peer Perform
Transpo-Railroads
CNI Canadian Natl Rail Calyon Securities Price Target Raised Neutral $43 to $52
CNI Canadian Natl Rail Stifel Nicolaus Downgraded from Buy to Hold
CNI Canadian Natl Rail Citigroup Downgraded from Buy to Hold
Transportation
AIRM Air Methods CIBC Wrld Mkts Initiated at Sector Outperform $50
PACR Pacer Intl UBS Downgraded from Buy to Neutral
Utilities
XEL Xcel Energy Lehman Brothers Upgraded from Underweight to Equal-weight
NI NiSource Lehman Brothers Downgraded from Equal-weight to Underweight
NRG NRG - bullish outlook says Jefferies with $51 price target
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Ideas from other Sites:
Will New Sec Proposed Rule End The Shell Game As We Know It??
Fellow Market Participants,
Let's get right to it. In a proposed rule by the SEC on June 22, 2007 was the following:
First, we propose to modify the staff interpretation to address securities of all companies, other than asset-backed issuers, that meet the definition of "shell company." These companies would include any company, including a blank check company, that meets the definition. The category of companies to whom the staff interpretation is proposed to apply would be broader than the definition of "shell company" in Rule 405, however, as it would apply to any "issuer" meeting that standard, whereas the Rule 405 definition refers only to "registrants." We believe that this provision better describes the companies that are the subject of the abuse that the staff interpretation is designed to address. For the purposes of the discussion in this release only, we call these companies, "reporting and non-reporting shell companies."
Under the proposed rule, a person who wishes to resell securities issued by a company that is, or was, a reporting or a non-reporting shell company, other than a business combination related shell company would not be able to rely on Rule 144 to sell the securities.
Second, because the reasons for prohibiting reliance on Rule 144 do not appear to be present after a reporting company has ceased to be a shell company and there is adequate disclosure in the market that would serve to protect against further abuse, we propose to permit the availability of Rule 144 for resales under provisions that are similar to our provisions that permit the use of a Securities Act Form S-8. registration statement by reporting companies that were formally shell companies. We propose to permit reliance on Rule 144 for resales by a security holder when:
. the issuer of the securities that was formally a reporting or non-reporting shell company has ceased to be a shell company;
. the issuer of the securities is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act;
. the issuer of the securities has filed all reports and material required to be filed during the preceding 12 months (or for such shorter period that the registrant was required to file such reports and materials); and
. at least 90 days have elapsed from the time the issuer files current "Form 10 information" with the Commission reflecting its status as an entity that is not a shell company.
Form 10 information is equivalent to information that a company would be required to file if it were registering a class of securities on Form 10, Form 10-SB, or Form 20-F under the Exchange Act,131 and such information is ordinarily filed on Form 8-K.