Wednesday Morning, August 29th
SITE NEWS
A new article is available in the Ice Cold Stocks "Investor's Health" section:
"Vitamin B3: Hope for multiple-sclerosis treatment"
Read it at: http://icecoldstocks.com/investors_health/vitaminB3.html
New IceMD Recording:
Ginkgo Biloba and Our Health;
Dow Stock News
The Wall Street Journal writes that job losses in the Mexican community are hurting Wal-Mart (WMT) sales.
The Wall Street Journal writes that Home Depot (HD) will continue with plans for a share buy-back.
According to Reuters, Isuzu and GM (GM) will increase their cooperation in South America to improve their share in the truck market.
Ice Man Stocks
For a printable version of the Ice Man's picks, click here.
Regular Trades the Ice Man may consider:
EBS - 9.15
Depressed stocks the Ice Man may buy:
XOM - 80.70 Gap
GME - 43.45 Gap
BA - 93.40 (MA)
MMM - 85.40 Gap
EWZ - 54 Gap
FSLR - 85.25 Gap
RIO - 40.75 Gap
MER - 71.15 Gap
BTJ - 37 Gap
PJC - 47.60 Gap
BEN - 123.70 Gap
GE - 37.20 Gap
NOK - 28.50 Gap
EXPD - 41.75 Gap
CVX - 81.40 Gap
CRNT - 14.75 Gap
Dollar Man Ideas:
JRCC - 4.60
TARR - 1.25
BQI - 5
CORT - 3
Media Commentators
Cramer's Comments:
Bullish: WYNN, LVS, IGT, AMWD, ONXX
Ice Cold Commentators
Break Man Video Summary:
Break out buy (or short sell) watch list for short term gains August 29 includes:SPNC, ARO, HRP, TSL, CRI, BRL, CNET, FAF.
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 Charts:
I have updated charts ( http:icecoldstocks.com/hot_stock_commentary.html ) of the rising wedge patterns that I specifically mentioned on Saturday's conference call and also had forwarded to you last weekend. Well as you can see the rising wedges broke to the downside late in yesterday's trading and thus price moved south as expected. Hopefully you all recognized this bearish pattern which was discussed at length on Saturday.
In addition, I have included a few other charts showing where some key support is with respect to many indices which does not necessarily mean a full re-test of the previous lows. I will be looking at this sell off over the coming days as a terrific buying opportunity and probably the best one you'll see for quite some time. Be on the lookout for positive divergence to form on the 60 minute or daily charts in the days ahead. We did close right on some support levels today so we may get a bounce tomorrow morning.
CNBC Fast Money Review
User´s Guide Volume 2: Trading China:
The Top 3:
1. Trading ADRs, what are the names:
Bolling: YZC is a great play on the fact the most of Chinese power is driven through coal
Adami: PTR – on what seems to be the largest oil find ever, and CHL with 320M subscribers and still room to grow
Najarian: BIDU – they are the next Google with a foothold in China and looking at Japan and the U.S.
Macke: NCTY – ERTS took a 15% stake which provides credibility
2. Chinese ETFs
FXI vs PGJ
Bolling: you would think I like the PGJ because it has more materials stocks but I like FXI due to liquidity
Najarian: let me give you another name which is the VPL. It gives you Chinese exposure but is diversified through other Pacific Rim countries that benefit from Chinese boom
Macke: I like the FXI due to liquidity and less risk on not being able to get out, I also like the VPL idea
Adami: always know the components, in some of these ETFs the weighting is over a small number of stocks so owning CHL and then buying the FXI is really just increasing your CHL exposure.
3. MultiNationals: What U.S. companies with Chinese exposure
Bolling: What is important is there was a concern what the Chinese were going to do with their huge reserves and investing $3B in Blackstone shows they are willing to stay with the U.S.
Macke: watch out for these slow growth companies trying to stimulate action by saying they are going to China, it is becoming cliché
Adami: stay in China until 2008
Chinese Olympics:
Adami: for 2 weeks in August 2008 the world will be watching China and they want to look Westernized and put their best foot forward.
Bolling: I think it makes sense the infrastructure stocks will lead until the games and the building is done but if they get it right the travel agency and hotels like WYN will benefit
Macke: get long NKE into the Olympics
Najarian: if they do it right they could really see growth in the travel industry
The Risks:
Macke: We have had problems recently with products including Pet Food. I believe that what needs to happen is we need to demand better quality and China will eventually be able to provide what we are looking for.
Macau bigger than Vegas:
Bolling: the play here is slot machines, they seem to be everywhere: IGT, DYI
Adami: look at HOT which will have 9 properties in Beijing by 2010
Final Trade:
Macke: NKE, IGT
Najarian: MGM
Adami: CHL
Bolling: HMIN
News and Events Digest
Breaking News
Acacia Research Corporation (ACTG) announced today that Financial Systems Innovation LLC, a wholly owned Affiliate of the Acacia Technologies group, a leader in technology licensing, has entered into a release and covenant not to sue covering a patent that applies to credit card fraud protection technology with The Sherwin Williams Company. This resolves a dispute that was pending before the United States District Court for the Northern District of Georgia.
Media Summary:
Reuters writes that Knight Capital (NITE) may have to refund fees collected by one of its funds which has been affected by market turmoil.
The Wall Street Journal writes that it has told the UAW that it may sell some non-core assets which have union employees
The Wall Street Journal reports that the CFO of Google (GOOG) will step down.
The Wall Street Journal writes that Lockheed Martin is looking for growth in its IT business to offset slowing defence sales.
The New York Times writes that phone companies in Europe are stepping up their investment to bring internet TV to consumer's homes.
The FT writes that BMW and Daimler are warning China that it is copying models of their cars.
The FT writes that Merrill Lynch (MER) is moving aggressively into India.
Barron's writes that Apple (AAPL) may introduce new models of the iPod at a Sept 5 event.
The Inquirer writes that Google (GOOG) may introduce a phone in September.
Stock Splits:
Recent Stock Split Announcements:
On August 22, Blue Coat Systems, Inc. (Nasdaq:BCSI) announced that its board of directors approved a 2:1 stock split to be effective on October 3, 2007.
On August 22, National Oilwell Varco, Inc. (NYSE:NOV) announced that its board of directors approved a 2:1 stock split to be distributed on September 28, 2007.
Companies that have previously announced stock splits which become effective in the next several trading days.
Ex-Date Split Symbol Company
8/29 2:1 NE Noble Corporation
8/30 2:1 SSYS Stratasys, Inc.
8/30 2:1 TISI Team, Inc.
9/4 2:1 FTI FMC Technologies, Inc.
9/5 3:2 NEOG Neogen Corporation
Economic Data:
10:30 Crude Inventories
Upgrades and Downgrades by Sector:
Apparel
KWD Kellwood First Albany Cut Price Target Buy $34 to $24
Biotech
PDLI PDL BioPharma CIBC Wrld Mkts Downgraded from Sector Outperform to Sector Perform
PDLI PDL BioPharma JP Morgan Downgraded from Overweight to Neutral
AMGN AMGN – Williams Blair sees the patent ruling as positive
Brokerage Services
BSC Bear Stearns CIBC Wrld Mkts Downgraded from Sector Outperform to Sector Perform
Business Services
NCTY NCTY - buying opportunity says Oppenheimer, Ouperform
Computer Hardware
IVAC Intevac Brean Murray Upgraded from Sell to Hold $15.50 to $16.50
STX Seagate Tech Caris & Company Price Target Raised Above Average $25 to $30
STX Seagate Tech Brean Murray Price Target Raised Buy $28 to $34
WDC Western Digital Brean Murray Price Target Raised Buy $25 to $28
Computer Services
THK Think Partnership Roth Capital Upgraded from Hold to Buy $3.25 to $2.50
RNOW Rightnow Tech Jefferies & Co Price Target Raised Buy $16 to $18
Computer Software
SPRT SupportSoft Deutsche Securities Upgraded from Hold to Buy $6.25 to $7
LNUX SourceForge JMP Securities Downgraded from Mkt Perform to Mkt Underperform $3
RHT Red Hat Jefferies & Co Cut Price Target Buy $30 to $21.50
MSTR MicroStrategy JMP Securities Coverage Dropped
Foods
FZN Cuisine Solutions BB&T Capital Mkts Initiated at Buy $9
WINN Winn-Dixie Stores Friedman Billings Cut Price Target Outperform $35 to $28
Gaming Operations
SGMS Scientific Games Bear Stearns Upgraded from Peer Perform to Outperform
WYNN Wynn Resorts Bear Stearns Downgraded from Outperform to Peer Perform
Healthcare Equipment
CRYO Cryocor Dawson James Initiated at Strong Buy $6
ALGN Align Tech Jefferies & Co Downgraded from Hold to Underperform $24 to $19
PLMD PolyMedica First Albany Downgraded from Buy to Neutral
PLMD PolyMedica Jefferies & Co Downgraded from Buy to Hold $48 to $53
Healthcare Services
HYTM Hythiam RBC Capital Mkts Initiated at Outperform $13
Industrial Equipment
AME Ametek CIBC Wrld Mkts Initiated at Sector Outperform $45
Insurance
ACGL Arch Capital Stifel Nicolaus Upgraded from Hold to Buy $80
AJG Arthur J. Gallagher Bear Stearns Downgraded from Peer Perform to Underperform
OCAS Ohio Casualty KeyBanc Capital Mkts Coverage Dropped
Internet Travel Agent
OWW Orbitz Stifel Nicolaus Initiated at Buy $16
OWW Orbitz Piper Jaffray Initiated at Outperform $16
Recreation
MVL Marvel Enterprises Matrix Research Upgraded from Hold to Buy
Regional Banks
WM Washington Mutual Friedman Billings Cut Price Target Mkt Perform $44 to $35
REITs
MAA Mid-America Aptmt BMO Capital Markets Upgraded from Market Perform to Outperform
Restaurants
CPKI California Pizza Robert W. Baird Initiated at Outperform $24
PZZA Papa John's Matrix Research Downgraded from Strong Buy to Hold
SONC Sonic JP Morgan Downgraded from Overweight to Neutral
Retail Trade
AZO AutoZone Kevin Dann Upgraded from Hold to Buy $125 to $135
SE Spectra Energy CIBC Wrld Mkts Upgraded from Sector Perform to Sector Outperform $28
HGG HHGregg KeyBanc Capital Mkts / McDonald Initiated at Buy $18
HGG HHGregg Credit Suisse Initiated at Outperform $17
Semiconductors
ISIL Intersil Caris & Company Price Target Raised Above Average $32 to $36
SMTC Semtech Stifel Nicolaus Price Target Raised Buy $21 to $23
XLNX Xilinx UBS Cut Price Target Neutral $31 to $28.50
RTEC Rudolph Tech Merriman Curhan Ford Coverage Dropped
Solar Technology
SPWR SPWR – FACT reiterates a Buy
Technology-Telecom
AIRV Airvana Lehman Brothers Initiated at Overweight
Telecommunications
ANEN Anaren Microwave Needham & Co Downgraded from Buy to Hold
TOMO TOM Online Susquehanna Financial Coverage Dropped
Utilities
PEC Pike Electric Friedman Billings Price Target Raised Mkt Perform $19 to $22
Medical Instruments
A Agilent Citigroup Initiated at Buy