Wednesday Morning, August 22nd
SITE NEWS
New IceMD Recording:
The Virus That Can Make You Fat;
Dow Stock News
Dow Jones News:
The head of General Motors Corp.'s (GM) Latin America, Africa and Middle East region said Tuesday that the economic growth that's helped the auto maker post solid gains in South America looks poised to continue despite a history of volatility. - MarketWatch
The Wall Street Journal writes that GM's venture in China will offer interest free loans to drive market share.
According to Reuters, GM (GM) sees revenue in Latin America, Africa, and the Middle East growing by several billion a year for the next several years.
C - Citigroup Punk, Ziegel & Co Cut Price Target Mkt Perform $57 to $53;
Ice Man Stocks
For a printable version of the Ice Man's picks, click here.
Breakouts the Ice Man may consider Trading:
SIGM - 35.75
NVDA - 48
RTIX - 12
MHS - 87
Regular Trades the Ice Man may consider:
GOOG - 509 = 520
APLX - 13.80
CVC - 33.50
SPAR - 16.15
CC - 11.30
TSRA - 35
EWZ - 55.20
NTAP - 26.50
Depressed stocks the Ice Man may buy:
SPWR - 57.70 Gap
CMG - 96 Gap
Dollar Man Ideas:
ANDS - 2.50
SYNM - 1.80
IFON - 2.20
SIGM - 6
LTON - 2.50
Depressed:
OCTL - 3.65
Media Commentators
Cramer's Comments:
Bullish: PG, PETM, GOOG, AAPL, AMZN, RIMM, MO, LVS, WYNN;
Ice Cold Commentators
Break Man Video Summary:
Break out buy (or short sell) watch list for short term gains August 22 includes: HLX, DPTR, PTEN, ONT, LYO, NVDA, ARRO, SCON.
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 Swing Man will be teaching a Free Educational Seminar Saturday at 7 am California Time.
CNBC Fast Money Review
Word on the Street:
Which way do we go ( Volatility):
Najarian: See Volatility basing here
Adami: in waiting mode
Macke: Buy Volatility
Hunter: Buy the Vix
Correction over or calm before the storm?
Najarian: If the Fed cuts then look at Big Money center banks: COF, BAC, C, WFC
Oil Below $70:
Adami - oil getting cheap
Chip Stocks:
Najarian: likes NVDA, EMC, NMW, RIMM
Target´s numbers, Sign of Economic strength?
Macke: consumer does not want to roll over yet and also look at ZUMZ (which he would take some off here as a trade) and GME
Hunter: Real wages were up 7% year over year, consumer is healthy
Medtronic Miss:
Najarian: numbers would great but missed estimates, I would buy the dip
Dell Computer:
Adami: terrible time to have production delays with school starting
Agricultural Plays:
Hunter: POT, AGU; people are eating more meat which drives up grain demand and Bio-diesel is hot
China Rate increase:
Adami: we should be worried about Chinese inflation
Macke: sell china
Hunter: get long the EWH on money flow to Hong Kong
Najarian: sell China on Beijing games
The Top 3:
1. All signs point to a rate “cut’. What should we own?
Najarian: own Big Money center banks: COF, BAC, C, WFC; JNJ, KFT, maybe some rails
Adami: own GS
Hunter: DRF is an International Financial Fund
Macke: cut is already in the market, trade is over and look at Big cap tech.
2. Is Target a measure of the economy?
Macke: numbers looked fine, economy is fine and the consumer is not dead
Hunter: Real wages have increased 7% year over year which is strong
3. Oil below 70 per barrel
Najarian: Further to go on the downside in energy stocks and could be good for oil
Adami: dodged a bullet on the hurricane miss, look at XOM at $80 and HOC. If one storm hit´s, oil prices are off to the races
Macke: sell airlines
Dick´s stellar earnings with Ed Stack from Dicks Sporting Goods:
Ed´s comments;
- August is a very important month for Dick´s with back to school and the emergence of Fall sports
- Scandals in sports does not effect our business negatively because people just want to play the game they love
- their products are not commodities that can be bought anywhere because they offer products for serious players and exclusive products to their store
- we feel that the purchase of Golf Galaxy will provide a chance to gain market share in the industry (this was after a comment that rounds of golf played are not increasing)
Najarian: advised Ed (who had reluctance to answer) that football is your major sport and asked how much UA is doing. Ed said UA is large player in their stores with good management, but also stated that they have many great brands and are not tied to one sport or product line.
Hunter: don´t like the bad golf investment, play is ZMH on boomers getting more active
Adami: didn´t want to leave the store when he was there
Macke: Dick´s cracked the code for success in this business, Buy
Pops & Drops:
SNCR:
Najarian: stay away
RNWK:
Macke: not taking down AAPL itunes
TOL:
Adami: How many times can the CEO say “they suck’
Airlines:
Hunter: short covering
UST:
Najarian: they have a problem with MO getting into their business
VWM:
Adami: IPO of the year but I wouldn´t chase it here
AMZN:
Macke: I would be looking at Blue Nile
HES:
Hunter: just following the oil trade lower
TTWO:
Macke: SELL
Home Foreclosures up 95%
Adami: damn straight we need to be worried
INFY:
Hunter: big buying opportunity with subprime mess not a sell
COST:
Macke: you can buy Costco anytime
SKS:
Adami: last year they would have been up on those number, now its time to do real work
HOT:
Najarian: I am watching this one with rumors of Kerkorian being around
Face 2 Face:
Hunter: likes the EWD which gets you long Sweden. This index has the hot retailer H&M in it.
Final Trade:
Adami: Buy TGT
Najarian: Buy UA
Macke: Sell TTWO
Hunter: Buy HXM (which is a Mexican homebuilder)
News and Events Digest
Breaking News
MGM Mirage´s board approved a $5 billion deal for Dubai World to eventually acquire a 9.5% stake in the casino company and 50% of its CityCenter project. - WSJ
YouTube is rolling out its first approach for selling ads within videos, nearly 10 months after Google agreed to buy the site. - WSJ
Toll Brothers posted an 85% drop in quarterly net income as the luxury-home builder recorded more land writedowns amid a slowdown in new home construction. - WSJ
Apple has succeeded in committing European mobile phone operators that want exclusively to sell its new iPhone to share parts of their revenues with the technology group. The contract, which was signed by three European mobile operators in recent days, requires that the operators hand over to Apple 10 per cent of the revenues made from calls and data transfers by customers over iPhones. - FT
Communications service provider CenturyTel Inc. said Tuesday its board of directors authorized a repurchase of up to $750 million of its common stock.
The company said the program, which represents about 15 percent of the company's outstanding shares, will expire on Sept. 30, 2009. - AP
Media Summary:
Reuters writes that Toyota (TM) believes that it can sell 10.4 million cars in 2009, a record.
Reuters reports that it is still likely that Google (GOOG) will bid for wireless spectrum.
The Wall Street Journal writes that TD Ameritrade (AMTD) and E*Trade (ET) are in merger talks to create the largest disount broker with 11 million customers
The Wall Street Journal writes that Google (GOOG) will begin to sell video ads on YouTube.
The Wall Street Journal writes that delays in laptop shipments are hurting Dell's (DELL) turnaround.
The Wall Street Journal reports that Sprint (S) want to use it WiMax effort to send signals to digital cameras and billboards.
The New York Times writes that Apple (AAPL) is already selling refurbished iPhones.
The FT writes that Vodafone (VOD) faces delays in getting a dividend from its stake in Verizon Wireless.
Barron's writes that shares in Analog Devices (ADI) fell on the prospects of higher costs.
M&A Activity:
TD Ameritrade and E*Trade are holding merger talks. A deal would create a dominant player in the online-brokerage industry. - WSJ
Splits:
Recent Stock Split Announcements:
On August 14, KHD Humboldt Wedag International, Ltd. (NYSE:KHD) announced that its board of directors approved a 2:1 stock split to be distributed on September 7, 2007.
On August 16, Parker Hannifin Corporation (NYSE:PH) announced that its board of directors approved a 3:2 stock split to be issued on October 1, 2007.
On August 17, FMC Corporation (NYSE:FMC) announced that its board of directors approved a 2:1 stock split to be payable on September 13, 2007.
On August 17, Multi-Color Corporation (Nasdaq:LABL) announced that its board of directors approved a 3:2 stock split to be payable on September 17, 2007.
Companies that have previously announced stock splits which become effective in the next several trading days.
Ex-Date Split Symbol Company
8/22 3:2 AAON AAON, Inc.
8/22 3:2 ARO Aeropostale, Inc.
8/27 2:1 TXT Textron Inc.
8/29 2:1 NE Noble Corporation
8/30 2:1 SSYS Stratasys, Inc.
8/30 2:1 TISI Team, Inc.
Economic Data:
10:30 Crude Inventories
Upgrades and Downgrades by Sector:
Automotive:
Brokerage Comment:
While investors have been dumping shares of Japanese exporter companies since the dollar's drop against the yen, Goldman Sachs says shares in some auto makers such Toyota Motor Corp. (TM) are still good buys due to their relative lack of exposure to the U.S. economy.
Aerospace
TGI Triumph Group UBS Initiated at Buy
Brokerage Services
ETFC E*TRADE UBS Downgraded from Buy to Neutral
AMTD TD Ameritrade UBS Cut Price Target Buy $21 to $20
Chemicals
GGC Georgia Gulf UBS Upgraded from Sell to Neutral
Computer Services
NTES Netease.com Susquehanna Financial Upgraded from Neutral to Positive
ACS Affiliated Computer UBS Cut Price Target Neutral $62 to $56
Computer Software
VMW VMware Needham & Co Price Target Raised Buy $42 to $74
DRIV Digital River Lazard Capital Initiated at Buy $54
Environmental Prod
MPR Met-Pro Corp Brean Murray Upgraded from Hold to Buy $18
Finance Companies
ACAS American Capital Jefferies & Co Downgraded from Buy to Hold $40
Foods
CPB Campbell Soup UBS Upgraded from Neutral to Buy
Health-Beauty Prod
EL Estee Lauder Credit Suisse Downgraded from Outperform to Neutral $53 to $44
Healthcare Services
ECLP Eclipsys Avondale Partners Price Target Raised Mkt Outperform $25 to $27
Industrial Equipment
TNC Tennant Needham & Co Initiated at Buy $49
Manufacturing - Tires
CTB Cooper Tire Matrix Research Upgraded from Sell to Buy
Oil and Gas
E ENI S.p.A. Credit Suisse Upgraded from Neutral to Outperform
TLM Talisman Energy Matrix Research Downgraded from Buy to Hold
Regional Banks
DRL Doral Fincl Soleil Downgraded from Hold to Sell
ZION Zions Bancorp Stifel Nicolaus Cut Price Target Buy $90 to $87
Retail Trade
TGT Goldman Sachs Upgraded to Buy
LOW Lowe's UBS Upgraded from Sell to Buy
LOW Lowe's JP Morgan Upgraded from Neutral to Overweight
DKS Dick's Sporting Goods Friedman Billings Price Target Raised Outperform $66 to $68
FDO Goldman Sachs Downgraded to Neutral
AAP Advance Auto Credit Suisse Cut Price Target Outperform $45 to $41
AEO American Eagle Friedman Billings Cut Price Target Mkt Perform $29 to $26
Semiconductors
AATI TWPT Upgraded to Overweight
Technology - Games
GLUU Glu Mobile Banc of America Sec Upgraded from Neutral to Buy $13
BYI Bally Technologies CIBC Wrld Mkts Upgraded from Sector Per to Sector Outper $28 to $35
BYI Bally Technologies Roth Capital Price Target Raised Buy $32 to $39
Telecommunications
CTL Centurytel Bear Stearns Upgraded from Peer Perform to Outperform
PSO Pearson Plc Deutsche Securities Downgraded from Buy to Hold
LTON Linktone Susquehanna Financial Coverage Dropped Positive
Transportation
DRYS Cantor Price Target Raised and Reiterated at Buy $61