Tuesday Morning, October 16th
SITE NEWS
SIBLING THEATRICALS, INC., HAS ENTERED INTO AN AGREEMENT TO FORM RICHFIELD ENTERTAINMENT, LLC TO DEVELOP AND FUND NEW PROJECTS
NEW YORK CITY, NY, October 16, 2007-Sibling Entertainment Group Holdings, Inc. [SIBE: OTCBB] ["Sibling Holdings"] announced Sibling Theatricals, Inc. ["Sibling Theatricals"], a wholly-owned subsidiary of Sibling Entertainment Group, Inc., has signed an agreement with Garlin Holdings Limited to form Richfield Entertainment, LLC, (a Delaware limited liability company) for the purpose of developing and funding new projects. Sibling Entertainment Group, Inc. is the company with which Sibling Holdings has previously signed an Agreement of Acquisition and Plan of Reorganization, the closing of which is currently pending. (see "Note to Editor" below for an explanation of Sibling Holdings relationship to Sibling Entertainment Group, Inc. and Sibling Theatricals).
Richfield Entertainment LLC ("Richfield Entertainment") is a joint venture between Sibling Theatricals and Garlin Holdings Limited (a Jersey private limited company) ("Garlin Holdings") which will allow Sibling Theatricals to expand its operations in the United States and to pursue entertainment ventures in Russia, Asia, and Europe. Sibling Theatricals will retain a twenty-five (25%) interest in Richfield Entertainment. Richfield Entertainment has been granted a limited option to finance and fund future projects developed by Sibling Theatricals with the primary source of funding to be provided by Garlin or sources introduced by Garlin Holdings.
"We are excited to create a joint venture with Garlin Holdings Limited that will help fund some of our new projects being developed for Broadway. The creation of Richfield Entertainment supports our long range strategy to build a world-class entertainment company," said Mitchell Maxwell, Chairman and CEO of Sibling Entertainment Group, Inc. (and Sibling Holdings).
In addition, "On September 30, 2007, Richfield completed the first round of financing of $700,000 for the development of new works by Sibling Theatricals with Richfield Entertainment," he said.
Richfield Entertainment LLC will announce its plans for 2 upcoming Broadway productions shortly.
The above-referenced agreement provides for the acquisition of Sibling's subsidiaries: Sibling Theatricals, Inc., (STI); Sibling Pictures, Inc., (SPI); Sibling Music Corporation (SMC): and Sibling Properties, Inc., (SPPI).
On February 9, 2007, the shareholders of Sibling Holdings approved the above-referenced agreement, the closing of which is subject to the filing, and effectiveness, of a Form S-4 registration statement with the SEC. The Form S-4 was filed on August 14, 2007 by Sibling Holdings.
About Sibling Entertainment Group, Inc.
Sibling Entertainment Group, Inc., a company filing voluntarily with the SEC as a 1933 Securities Act company, is an entertainment development and production company based in New York City that finances, develops and produces plays and musicals for the live stage, independent feature films and other entertainment projects through four wholly-owned subsidiaries: Sibling Theatricals, Inc., (STI); Sibling Pictures, Inc., (SPI); Sibling Music Corporation (SMC); and Sibling Properties, Inc., (SPPI). We seek to create synergies that will enable each subsidiary to build off of one another's successes.
For more information, access the Sibling website at www.siblingentertainment.biz.
Dow Stock News
Johnson & Johnson (JNJ) today announced third-quarter sales of $15.0 billion, an increase of 12.7% as compared to the third quarter of 2006. Operational growth was 9.7% and currency contributed 3.0%. Domestic sales were up 5.8%, while international sales increased 21.5%, reflecting operational growth of 14.7% and a positive currency impact of 6.8%. On a pro-forma basis, including the net impact of the acquisition of Pfizer Consumer Healthcare in both periods, worldwide sales increased 2.4% operationally.
The Wall Street Journal says that GM (GM) outlined billions of dollars of savings from its UAW deal.
The Wall Street Journal writes that orders of Intel (INTC) chips are growing faster than PC sales, an indications that customers may have over-ordered.
GM General Motors Bear Stearns Downgraded from Peer Perform to Underperform
T Smith Barney Speculates they will Take Over Dish around $65
Ice Man Stocks
Breakouts the Ice Man may consider trading:
BHI - 99.70
Regular Trades the Ice Man may consider:
SORL - 9.50
JDSU - 16
SIRT - 18.90
NXY - 30.65
LPHI - 38.40 = 40.50 Gap
Depressed stocks the Ice Man may buy:
BA - 92.75 Gap
GM - 38.20 Gap
MON - 89 Gap
CI - 48.75 Gap
AIG - 65 Gap
RIMM - 100.50 Gap
WMS - 32.90 Gap
WMT - 45.60 Gap
Dollar Man Ideas:
FTRS - 1
VGZ - 5
BMD - 2
ANDS - 2.15
YCKM - 2.40
SSTI - 3.64 Bid - could continue
Depressed Dollar:
ORS - 3.70
Media Commentators
Cramer's Comments:
Bullish: MOT, CPRT, SKS
Ice Cold Commentators
Break Man Video Summary:
Break out buy (or short sell) watch list for short term gains October 16 includes: CHDX, BCRX, CHN, ABAX, KAD, T, MMSI, VGZ, ANAD.
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.
Swing Man Market Recap:
The market opened mixed this morning and for awhile the tech led NDX/Nasdaq attempted to rally the market. However, the cyclicals struggled to make much progress and as a result profit taking became the theme of the day. I was looking for the NDX to make another attempt at testing its recent highs, which it did, but it fell short by nine points. Truthfully, I was not surprised that today´s rally attempt failed rather abruptly since the technicals were indicating a pullback was likely on the horizon. This was discussed in length in yesterday´s update so no one should be surprised by today´s selling.
Everyone should realize that it´s very necessary and healthy for extremely overbought markets to pullback on occasion. Simply put, it allows you to purchase many stocks at lower prices. Think of it in terms of a sale price. It you have been tracking some stocks to purchase and they are experiencing orderly selling, a small correction provides you with a great opportunity. Look to add to longs at or near support to minimize risk. The one thing you can control is where you elect to buy which in turn determines the level of risk you´re willing to tolerate.
One needs to understand that some selling at this stage does not imply that the recent uptrend is over. Stocks do not typically trend straight up but instead traverse they´re way higher. They move up for a period, pause/go sideway, and pullback some during up trends. Such movement can be thought of in terms of waves and are simply normal price action. The primary (impulsive) waves are up while the reflexive waves are down in bullish trending markets.
Currently, many indices may be in the process of forming handles over the near term. Handles are exemplified by choppy back and forth trading which tends to cause frustration amongst traders. This back and forth action serves to help relieve the overbought readings on the oscillators and simultaneously improve our sentiment measures by moving some players into the bearish camp. In total, this process serves to provide the necessary fuel needed to propel the market higher. During this time, one should trade lighter by only playing the best setups. The time to get aggressive will be when this process is near completion and positive divergences begin to appear.
Good Trading.
CNBC Fast Money Review
1. BANK STOCKS
Chuck Prince's C Reports 57% Profit Plunge, Dragging Down Financials, Market.
Dylan Ratigan says Citigroup warned of accelerating defaults and fixed-income losses.
Finerman says she wasn´t surprised by Citigroup´s results.
Adami says they´re not going to buy stock back until early ´08 and that spooked some investors. He recommends stopping out at $45.
Macke feels there´s no reason to get long C.
2. OIL SOARS TO RECORD $86
The headline: Crude Surges 3% To $86.13, New Record Close; Oil Has Gained 9% Over The Past 5 Sessions.
Dylan Ratigan explains both XOM and CVX climbed Monday as crude hit a new highs.
Najarian says the refiners did not participate in the oil rally. He thinks that investors are starting to look more
closely at coal. Also Najarian says the surge in oil crushed the transports.
3. CHINA
The headline: China Financial Power In Full Display Monday As CSI 300 Index, Hong Kong's Hang Sang Reach New Records.
Dylan Ratigan says China and Hong Kong markets soared to new heights even as the government kept tightening monetary policy. He adds PTR
surpassed GE as the world's 2nd-biggest company after it reached $434b market cap.
Najarian feels that China has made such a magnificent run that, for the first time, he says the top could come before the Olympics.
4. TECH EARNINGS
Thanks to some late buying, tech stocks held strong in a rough day ahead of earnings from IBM, YHOO and INTC Tuesday after the bell.
Should you sell your big tech winners before the earnings storm?
Macke expects IBM to be the least surprising tech titan that reports Tuesday. He anticipates they will beat expectations and thinks they announce a buy-back.
Najarian likes INTC ahead of earnings because he thinks they will benefit from global growth.
Macke is bullish on YHOO long term because he believes they might be a takeover target. He adds any signs
from the company, which suggest they could break-up will send the stock considerably higher.
5. COKE AND SMOKE
Coke and smoke, your doctor may disapprove of all that sugar and nicotine, but your portfolio won't. What´s the trade ahead of earnings KO and MO on Wednesday.
Finerman likes MOP for it´s balance sheet and she expects the company to use it in a way that´s positive for
shareholders.
Adami likes MO, as well.
Macke tells the panel to look for international growth from KO. This stock, he says is a “Steady Freddie!’
6. POPS AND DROPS
X popped 2.5%: Najarian says there´s speculation of a deal but he
doesn't buy it.
SKS popped 4%: Macke recommends selling.
MDT dropped 11%: Najarian says stay away.
SLM dropped 4%: Finerman doesn´t like the stock
XAL dropped 1.5%: Adami recommends selling.
LVLT dropped 11%: Najarian doesn´t expect a pop until they find new management.
KRE dropped 3%: Adami is now worried about USB earnings coming out Tuesday.
7. YOUR FIRST MOVE FOR TUESDAY
Macke likes NRG, as an alternative energy
play.
Adami recommends shorting the Dow with DOG.
Finerman prefers FLS as a long-term investment.
Najarian says CY is a buy.
News and Events Digest
Breaking News
Bernanke said the housing downturn is likely to remain "a significant drag" on economic growth through early 2008 but income growth is propping up consumer spending. - WSJ
Movie Gallery Inc., the No. 2 North American video-rental company, said it filed for protection from creditors under Chapter 11 of U.S. bankruptcy law. - MarketWatch
Lululemon Athletica Inc. (LULU) on Tuesday raised its third-quarter same-store sales growth target to the mid-30% range from its earlier view of mid-to-high teens. The Vancouver-based clothier cited strong sales volumes, with additional benefit coming from the impact on sales of a strengthening Canadian dollar against the U.S. dollar. The company expects to exceed its previous profit estimate of 5 to 6 cents a share for the third quarter. Analysts surveyed by Thomson Financial forecast earnings of 6 cents a share, on average. - MarketWatch
Xerox Corp. (XRX) said Tuesday that it has been awarded a seven-year, $82 million contract to manage the office and production print services, invoice processing and customer-service centers for Europart, a commercial vehicle parts distributor based in Germany. Shares of Xerox closed Monday at $17.17. - MarketWatch
Northrop Grumman Corp. (NOC) on Monday was awarded an information technology contract from the National Security Agency to develop an advanced information management and data storage system.
The 51-month contract is a cost-plus-award-fee contract worth up to $220 million. - bizjournals.com
European shares weakened on Tuesday, as investors took in a profit warning from Swedish telecommunications-equipment maker Ericsson (ERIC) and record gains for oil prices fueled concerns about the direction of interest rates. - MarketWatch
Tidewater Inc. (TDW), which owns one of the world's largest vessel fleets serving the offshore energy industry, on Tuesday issued a fiscal second-quarter outlook under Wall Street expectations, citing increased drydock and maintenance time. - AP
Olin Corp. (OLN) said Monday it agreed to sell its metals business to a unit of Global Brass and Copper Holdings Inc. for $400 million in cash. - AP
CSCO announced an 8% stake in VM Ware (VMW).
A bank owned by the investment arm of China's cabinet is bidding for a stake in U.S. securities firm Bear Stearns Cos., a Chinese regulator and an executive said Tuesday.- AP
Media company E.W. Scripps Co. on Tuesday said its board of directors has authorized management to pursue a plan to separate Scripps into two publicly traded companies, one focused on creating national lifestyle media brands and the other on building local media franchises. - MarketWatch
Media Summary:
According to Reuters, China CITIC Bank is bidding to buy a stake in Bear Stearns (BSC)
Reuters reports that the National Retail Federation's survey of its members shows retail sales are expected to grow under 4% this holiday season.
The Wall Street Journal writes that earnings at big oil producers should drop because the increased price of crude will not offset falling refinery margins.
The Wall Street Journal writes that Genentech (DNA) earnings rose 21%.
The Wall Street Journal writes that Motorola (MOT) will buy half of a mobile software business owned by Sony Ericsson in a possible challenge to Nokia (NOK)
The New York Times writes that Google (GOOG) has launched video piracy software for YouTube.
The New York Times reports that oil prices rose above $86 a barrel.
The FT writes that shares of Ericsson dropped sharply on a profit warning.
Barron's writes that NetFlix (NFLX) and Blockbuster (BBI) should be helped by the demise of Movie Gallery (MOVI).
Economic Data:
9:00 Net Foreign Assets
9:15 Industrial Production
9:15 Capacity Utilization
Upgrades and Downgrades by Sector:
Aerospace
ETN Eaton Friedman Billings Upgraded from Mkt Perform to Outperform $102 to $104
ORB Orbital Sciences Morgan Joseph Initiated at Buy $30
Biotech
BIIB Biogen Idec BMO Capital Markets Price Target Raised Market Perform $62 to $84
GENZ Genzyme Fortis Bank Price Target Raised Buy $72 to $79
CADX Cadence Pharma Susquehanna Financial Initiated at Positive
BIIB Biogen Idec BWS Financial Downgraded from Hold to Sell $64 to $72
BIIB Biogen Idec Piper Jaffray Downgraded from Market Perform to Underperform
DNA Genentech BMO Capital Markets Cut Price Target Market Perform $85 to $79
Broadcasting
VIA.B Viacom JP Morgan Upgraded from Neutral to Overweight
Bus Svc-Card Proc
TNS TNS Inc Friedman Billings Coverage Dropped
Business Services
VPRT Vistaprint Stifel Nicolaus Downgraded from Buy to Hold
Chemicals
SYT Syngenta Lehman Brothers Downgraded from Overweight to Equal-weight
Computer Hardware
SNDK Bear Stearns Makes Positive Comments
TEK Tektronix JP Morgan Downgraded from Overweight to Neutral
TEK Tektronix McAdams,Wright,Ragen Downgraded from Buy to Sell $35 to $38
Computer Software
CTXS Citrix Systems RBC Capital Mkts Upgraded from Sector Perform to Outperform
ERTS Electronic Arts Broadpoint Capital Downgraded from Buy to Neutral
THQI THQ Inc UBS Downgraded from Buy to Neutral
Foods
WINN Winn-Dixie Stores Lehman Brothers Initiated at Overweight $21
Gaming Operations
SGMS Scientific Games Roth Capital Coverage Dropped
Healthcare
SXCI SXC Health Solutions CIBC Wrld Mkts Initiated at Sector Outperform $18
POZN POZEN Broadpoint Capital Downgraded from Neutral to Underperform
SRX SRA Intl Citigroup Downgraded from Buy to Hold
Healthcare Equipment
MDT Medtronic BMO Capital Markets Cut Price Target Market Perform $59 to $55
ELRN Elron Electronic CIBC Wrld Mkts Coverage Dropped
ISRG CIBC Cautious since the stock is priced to perfection
NSTR Northstar Neuroscience Jefferies & Co Initiated at Buy $21
Healthcare Facilities
HCR HCR Manor Care Friedman Billings Downgraded from Outperform to Mkt Perform $67
Industrial Equipment
RSTI Rofin-Sinar Technology Friedman Billings Initiated at Outperform $92
Insurance
NAVG Navigators Group Friedman Billings Downgraded from Outperform to Mkt Perform $62
Internet Services
GOOG Google Needham & Co Price Target Raised Buy $575 to $690
Manufacturing
AEIS Advanced Energy Needham & Co Cut Price Target Buy $24 to $20
Mfg - Fiber Lasers
IPGP IPG Photonics Friedman Billings Initiated at Outperform $28
Oil and Gas
WEL Boots & Coots RBC Capital Mkts Initiated at Outperform
REITs
SLH Solera Barrington Research Initiated at Outperform $27
Restaurants
SONC Sonic Friedman Billings Price Target Raised Outperform $28 to $29
Retail Trade
KMX CarMax Kevin Dann Initiated at Buy $28
AMZN Steiffel Nicholas Downgraded to Sell
AMZN Amazon.com Stifel Nicolaus Downgraded from Hold to Sell
OSTK Overstock.com Stifel Nicolaus Downgraded from Hold to Sell
Semiconductors
BRCM Broadcom Citigroup Upgraded from Hold to Buy
SPRD Spreadtrum Comms Roth Capital Initiated at Buy $18
Telecommunications
IIVI II-VI Inc Friedman Billings Resumed Coverage Outperform $43
PAG Penske Auto Kevin Dann Initiated at Buy $25
ALU West LB Downgraded to Reduce
Training Software
EDU New Oriental Education & Technology Brean Murray Price Target Raised Buy $65 to $80
Transportation
DRYS DryShips Jefferies & Co Price Target Raised Buy $108 to $160
DSX Diana Shipping Jefferies & Co Price Target Raised Buy $35 to $44
EGLE Eagle Bulk Shipping Jefferies & Co Price Target Raised Buy $36 to $39
EXM Excel Maritime Carriers Jefferies & Co Price Target Raised Buy $57 to $92
GNK Genco Shipping & Trading Jefferies & Co Price Target Raised Buy $82 to $93
QMAR Quintana Maritime Jefferies & Co Price Target Raised Buy $24 to $31
TBSI TBS International Jefferies & Co Price Target Raised Buy $47 to $72
KNX Knight Transportation BB&T Capital Mkts Downgraded from Buy to Hold
Utilities
AES AES Corp HSBC Securities Initiated at Overweight $28
Technology
A Agilent JP Morgan Upgraded from Neutral to Overweight