Tuesday Morning, September 11th
Dow Stock News
AIG´s (AIG) private banking unit is aiming to take 10 percent of Taiwan's wealth management market within five years, targeting residents who have made big money in China, a top executive said on Tuesday. - Reuters
HP (HPQ) and Crospon, a medical device developer based in Galway, Ireland, today announced they have entered a licensing agreement for a drug delivery platform that enables painless, controlled release of one or more drugs in a single patch applied to the skin.
McDonald's Corporation announced today that global comparable sales rose 8.1% in August. Systemwide sales for McDonald's restaurants worldwide increased 12.3% for the month (9.3% in constant currencies).
The Wall Street Journal writes that GM (GM) has made two proposals to the UAW. One would provide money for a healthcare fund run by the UAW. The other includes substantial job cuts.
Ice Man Stocks
Breakouts the Ice Man may consider trading:
OIIM - 15.10
FDRY - 19.10
SMSC - 38.15
VIP - 25.70
Regular Trades the Ice Man may consider:
FMD - 35, 36.10
DNDN - 8.50
UNG - 37.40
SAFT - 35.50
SAI - 19 B = 19.59 G
CL - 67.05
CLX - 60.55
USU - 13.30
XTO - 57.55
JNJ - 62
RSYS - 11.50
BTJ - 38.50
AOB - 10.50
Depressed stocks the Ice Man may buy:
XOM - 80.70 G
BRG - 78.40 G
MGA - 81.10 G
MMM - 85.40 G
JCI - 104.60 G
CBE - 48.15 G
FCSX - 46.80 G
ANF - 72.80 G
Breakdown Shorts:
PAC - Breaking 48 = 45.30 G
Dollar Man Ideas:
CNOA - 2
NRMX - 3
CORT - 3.50
XTLB - 2
EEE - 4.60
Depressed Dollar:
CRDC - 7.50
Media Commentators
Cramer's Comments:
Bullish: PEP, MHS, MO, NOC, MCD, PG, XOM, SLB, HPQ, DE, UTX, FWLT, COH
Louis Navellier:
Positive on NOK, QMAR, SHPGY and cautious on SINA;
Ice Cold Commentators
Break Man Video Summary:
Break out buy (or short sell) watch list for short term gains September 11 includes: ARNA, FLO, DNDN, WBS, FXPE, ADBL, TGIC, WHQ.
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. ANOTHER BILLIONAIRE BUY-IN
The headline: Bahama-Based Billionaire Joseph Lewis Takes 7% Stake In Bear Stearns
Adami: likes Goldman Sachs and Morgan Stanley for their trading revenues.
Najarian: recommends owning GS until earnings, then he says, “Get out!’
Macke: doesn´t agree. He thinks GS stock has already rallied.
Finerman: GS will “get creamed’ this quarter. She thinks their asset management has taken an enormous blow.
2. CHIPS
The headline: INTC Boosts Sales Outlook In Bid To Overshadow AMD Barcelona Chip Release
Najarian: thinks Intel is a buy. He also likes AMD for global growth.
Adami: tells the panel to trade AMD “at your own risk.’
Macke: reveals that he´s long INTC as an investment.
3. DEFENSE ON OFFENSE BEFORE CONFERENCE
The headline: LMT, NOC Jumping Ahead Of Morgan Stanley Conference Tomorrow
Adami: recommends buying both LMT and BA in the low $90´s. He also likes LLL.
Najarian: look at HON as a way to play defense technology.
4. Private Equity Party Over?
Private equity giant KKR has reportedly made a concession to the banks financing its $26 billion buyout of FDC. Meanwhile, tougher lending terms amid the credit crunch sent BX to another low Monday. Is the party completely over for private equity?
Najarian: believes BX is finally getting to a level where it´s a buy. He also feels the downside puts are cheap as protection.
Adami: agrees.
Finerman: the wheels are starting to turn again for private equity. She tells the panel if you´re short BX, it might be time to cover.
Macke: doesn´t agree. He thinks private equity deals are over.
5. TEXAS INSTRUMENTS
The headline: Texas Instruments To Provide Mid-Quarter Update Tuesday After The Bell.
Adami: anticipates TXN will narrow guidance Tuesday. On a related note, at these levels he likes this stock.
Najarian: tells the panel TXN makes him nervous.
6. POPS AND DROPS
AAPL popped 4%: Adami says he can´t embrace Apple at this level.
SNCR popped 6%: Najarian likes this stock.
NMX popped 5%: Adami says speculation suggests NYX might soon buy NMX.
DNDN popped 5%: Najarian says there´s speculation in the market that one of Dendreon´s drugs may get the fast track from the FDA.
M dropped 2%: Macke thinks Macy´s is a sell.
HOV dropped 5%: Macke says sell.
LM dropped 4%: Adami believes the stock will go lower.
7. YOUR FIRST MOVE FOR TUESDAY
Macke: says sell the RTH – or if you´re an aggressive trader short it.
Adami: recommends buying NMX on takeover talk.
Finerman: prefers COP for the long haul.
Najarian: likes DNDN on recent options activity.
News and Events Digest
Breaking News
Countrywide Financial Corp. is putting together another multi-billion dollar bailout plan as the nation's largest home lender continues to struggle amid the global credit crunch and declines in the housing market, The Post has learned.
Sources familiar with Countrywide's plans said the lender continues to work with Goldman Sachs and law firm Wachtell Lipton Rosen & Katz to structure another strategic investment similar to the deal Bank of America struck last month. - NY Post
Nabi Biopharmaceuticals (NABI) said it's agreed to sell its Nabi Biologics strategic business unit to Biotest Pharmaceuticals for $185 million in cash. Nabi said the move puts the company on a "success outcome of our strategics alternatives process." Biotest said the deal will give it a share of the U.S. plasma protein market to complement its European plasma protein business. - MarketWatch
United State-based engine manufacturer Cummins Inc. (CMI) and Beijing-based truck Beiqi Foton Motor Co. have been given approval from the Chinese government to set up a joint-venture engine plant, according to reports Tuesday. Beiqi Foton said Tuesday the National Development and Reform Commission had approved the venture, Dow Jones Newswires reported, citing a company statement. The two companies will jointly invest 2.7 billion yuan ($358.89 million) in the venture, the report said. The venture will reportedly produce 2.8-liter and 3.8-liter Cummins light-duty diesel engines and target annual output of 400,000 units a year. Cummins and a wholly-owned unit in China will own 50% of the venture while Beijing Foton and a related unit will hold the remaning 50%, the report said. - MarketWatch
Roche Holding AG (RHHBY) said Tuesday it is suing Teva Pharmaceutical Industries Ltd. (TEVA) over a generic version of the Swiss drug company's Boniva, a treatment against osteoperosis. - MarketWatch
Capital Source (CSE) said it's completed $1.07 billion term financing of commercial real estate loans from its portfolio, which it will use to repay indebtedness from its credit facilities. The note may be increased to $1.5 billion over the next two months. After the transaaction, CapitalSource will have approximately $2.8 billion of undrawn commitments under its commercial loan credit facilities, and its balance of commercial loan term debt will be $4.4 billion. - MarketWatch
Senate Investigators have sent letters to at least 30 companies seeking details of past tax-cutting transactions. - WSJ
Sepracor, (SEPR) the Marlborough, Mass., drugmaker, and GlaxoSmithKline, (GSK) the U.K. health-care giant, agreed to commercialize eszopiclone worldwide except in the U.S., Canada, Mexico and Japan. Sepracor's eszopiclone treats insomnia. GlaxoSmithKline will market the drug under the name Lunivia. Sepracor will receive $20 million up front plus as much as $155 million in milestone and license fees, and royalties. Eszopiclone is currently under EMEA review for clearance in the European Union. The drug is marketed in the U.S. under the brand name Lunesta. - MarketWatch
ImClone Systems Inc. and Bristol-Myers Squibb Co. said Tuesday the drug Erbitux improved the survival rate of lung cancer patients in a late-stage study.
The drug, already approved to treat colon cancer and head and neck cancer, was given to patients with advanced non-small cell lung cancer in combination with chemotherapy treatment including vinorelbine and cisplatin. The study compared the combination to chemotherapy alone. - AP
Media Summary:
According to Reuters, oil prices jumped to $78 on news the pipelines in Mexico had been blown up.
Reuters reports that any possible extra OPEC crude supplies will be offset by planned maintenance on United Arab Emirates oilfields in late October and November, traders said on Tuesday.
The Wall Street Journal reports that hedge funds lost 1.3% in August, their worst performance in over a year.
The New York Times reports that a billionaire has bought a 7% stake in Bear Stearns (BSC).
The FT writes that a new report says that the push toward biofuels could drive food prices to levels to high for consumers to support.
Barron's writes that forecasts from Take-Two (TTWO) drove its share price higher.
Bloomberg reports that a large market for fake iPhones has emerged in Asia.
BusinessWeek reports that Apple (AAPL) may bid for the rights to a wireless spectrum auctioned by the Federal Communications Commission,
Silicon Alley Insider reports that the growth of YouTube's audience and its struggles with ad revenue could bring down reveue growth at Google (GOOG).
Economic Data:
8:30 Trade Balance
Upgrades and Downgrades by Sector:
Biotech
ALNY Alnylam Pharmaceuticals Cantor Fitzgerald Upgraded from Hold to Buy $20 to $32
OMRI Omrix Biopharma Rodman & Renshaw Initiated at Mkt Outperform $46
HALO Halozyme Therapeutics Morgan Joseph a Initiated at Sell $6
Broadcasting
CHTR Charter Comm Lehman Brothers a Initiated at Underweight
Business Services
CVG Convergys Wachovia Initiated at Outperform
DM Dolan Media Piper Jaffray Initiated at Outperform
G Genpact JP Morgan Initiated at Overweight
Chemicals
AGU Agrium CIBC Wrld Mkts Price Target Raised Sector Outperform $49 to $56
Computer Hardware
WDC Western Digital Bear Stearns Upgraded from Peer Perform to Outperform
WDC Western Digital Caris & Company Price Target Raised Above Average $25 to $27
SMOD Smart Modular Tech Needham & Co Downgraded from Buy to Hold
SMOD Smart Modular Tech JMP Securities Downgraded from Strong Buy to Mkt Outper $20 to $12
Computer Services
SNDA Shanda Interactive Citigroup Initiated at Buy $38
Computer Software
SYMC Symantec Jefferies & Co Price Target Raised Buy $21 to $22
LNUX SourceForge Stanford Research Initiated at Buy $4
VDSI VASCO Data Security Friedman Billings Downgraded from Outperform to Mkt Perform $36
VRNT Verint Systems CIBC Wrld Mkts Cut Price Target Sector Outperform $37 to $34
VRNT Verint Systems Friedman Billings Cut Price Target Outperform $37 to $35
Finance Companies
DLLR Dollar Financial Roth Capital Price Target Raised Buy $35 to $36
Gaming Operations
SHFL Shuffle Master Roth Capital Cut Price Target Hold $18 to $15
SHFL Shuffle Master Nollenberger Capital Cut Price Target Buy $29 to $23
Healthcare Facilities
OCR Omnicare Matrix Research Downgraded from Buy to Hold
Hotels and Motels
HOT TWPT Upgraded to Overweight
Industrial Equipment
IRBT IRobot First Albany Price Target Raised Buy $23 to $26
Insurance
KMA KMG America Friedman Billings Downgraded from Outperform to Mkt Perform $6 to $6.20
Mining Non-Ferr Metal
RT Ruby Tuesday KeyBanc Capital Mkts Upgraded from Underweight to Hold
Pharmaceutical
SCMP Sucampo Pharma CIBC Wrld Mkts Initiated at Sector Outperform $17
REITs
TMA Thornburg Mortg UBS Upgraded from Neutral to Buy
RAS RAIT Invtmt Trust RBC Capital Mkts Downgraded from Outperform to Underperform
Semiconductors
LSI DBAB Upgraded to Buy
Telecommunications
CMVT Comverse Tech Merriman Curhan Ford Upgraded from Neutral to Buy
Transportation
EGLE Eagle Bulk Shipping Cantor Fitzgerald Price Target Raised Buy $31 to $33
GNK Genco Shipping Trading Cantor Fitzgerald Cut Price Target Buy $71 to $69