Wednesday Morning, September 12th
New IceMD Recording:
Drug Reactions Up But e-Prescribing Up and Coming;
Dow Stock News
Aluminum major Alcoa (AA)intends to sell up to $1.64 billion worth of its shares in Chinese metals giant Aluminum Corp. of China (ACH), or Chalco, at a discount to market price of those shares, reported Dow Jones Newswires Wednesday. The report, which cites a term sheet seen by the news service, says Alcoa's unit Alcoa International (Asia) is selling 700 million Hong Kong-listed shares of Chalco. Alcoa has retained an option to sell up to 884.21 million shares, or its entire stake in Chalco, at a price between HK$17.26 ($2.22) and HK$18.27, according to the report. Chalco's shares closed 0.3% higher at HK$20.40 in Hong Kong trading Wednesday. No reasons were provided for the decision. Alcoa reportedly bought the shares at the time of Chalco's initial public offering in 2001, at HK$1.37 a share.
Intel Corp., the world's largest semiconductor company, was charged with violating South Korean antitrust laws, the company and regulators said Tuesday. - AP
T - will be presenting at the Goldman Sachs 2007 Communacopia Conference in New York on Wednesday, Sept 19 at 9:40 a.m. EST.
Bloomberg writes that McDonald's (MCD) is taking on Starbucks (SBUX) with cheap lattes.
The Wall Street Journal writes that NTP has sused Verizon Wireless, AT&T (T) and Sprint (S) over use of the company's patents.
Ice Man Stocks
Breakouts the Ice Man may consider trading:
SMSC - 38.15
VIP - 25.85
OIIM - 15.10
MDT - 54.90
Regular Trades the Ice Man may consider:
CTRP - 43.50
SAFT - 38.10
JNJ - 62.15
RYAAY - 43.86
TMA - 14
HAL - 36.05
CRS - 120
CCJ - 42
HWAY - 52
CHRW - 50.70
CHDX - 21
VTEL - 20.30
IVN - 10.60
ELON - 30
SPAR - 16.10
D - 85.80
IFN - 47.50
LNET - 26.30
POWI - 30
GD - 80
Trades Coming off the Bottom:
TAM - 22
IMMR - 14.50
TRF - 61.60
JOYG - 45
Dollar Man Ideas:
LUM - 2
CMOS - 3
MCZ - 1.10
FRG - 8.35
SFE - 2.25
GRS - 9.10
PUDC - 1.75
Media Commentators
Cramer's Comments:
Bullish: RIMM, AAPL, ISRG, VMW, T, ED, EPD, IMA, MHS, HLF;
High Chart Patterns:
Trading List: CTRP 44, JEC 68.5, SPWR 75, ALXN 66, NTRI 58, AMX 62, NVT 69;
Zanger Report:
Indices are possed to move higher from here. SPX looks better than the Naz Comp.
BIDU - solid move higher and looks poised for much higher prices.
WYNN - great move;
NOV - great move;
OIH - touched the buy point today but did not extend. Should get going soon.
ACH - needs many weeks of rest, but that might not happen. Next buy point is 68.50
FWLT - Could run anytime. Buy point is 121 on heavy volume;
GRMN - is doing a good job of resting here. I own this stock. Could be making new highs soon;
AMZN
MA - financial stock not doing well. I might take a small position on a trade above 137 on heavy volume.
CROX - been resting since its breakout a few weeks ago. Break out is 61 on good volume.
AAPL - needs to hold here and turn up soon;
Ice Cold Commentators
Break Man Video Summary:
Break out buy (or short sell) watch list for short term gains September 12 includes: GIGM, NTRI, ILMN, NMX, ACAD, ADCT, ASTF, ALXN, BIF, CALM, CYPB.
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. TECH SUPPORT
The headline: JNPR Networks, Tech Stocks Continue 2-Day Breakout; HPQ Gains 2%, While IBM Climbs 1%.
Najarian: the growth is real and sustainable because these companies benefit from the global economy. He also likes SAP and NOK because they too have global exposure.
2. OIL RECORD CLOSE
The headline: Oil Jumps 1% to $78.23 As OPEC Ups Production Less Than Feared.
Dylan Ratigan explains that OPEC increased production by 500,000 barrels a day; still Exxon Mobil rose 3% as crude continues its upward climb.
Macke: OPEC doesn´t matter to the market anymore. He feels that barring anything catastrophic market fundamentals will remain strong.
Finerman: as long as the global economy grows she feels investors can count on an increased demand for oil.
3. HIGH POINT FOR HIGH FINANCE
The headline: LEH, Financials Among Today's Stronger Performers; CFC Sinks After NY Post Says It Is Seeking Multibillion-Dollar Cash Infusion.
Macke: the financials haven´t blown up as a whole, but Tuesday´s rally wasn´t financially led. He still considers the sector a liability for the bulls.
Finerman: agrees with Jeff Macke.
Najarian: reminds the panel he likes GS and thinks they´re going to “blow out earnings.’
4. THEY'RE LOVIN' IT
The headline: MCD Shares See Best Day Since July 2006 On Blowout August Same-Store Sales.
Dylan Ratigan: explains that McDonald's same-store sales for August jumped 8.1% on coffee, breakfast, and snack items.
Macke: likes this stock and recommends owning it, now.
Finerman: also likes McDonald´s numbers, very much.
Adami: MCD beat comps in North America, which he feels is another important item.
5. IT'S A WIRELESS WORLD
As you check e-mail with your BlackBerry and download onto your iPhone, remember that revenues for wireless companies are surging. In fact, Morgan Stanley predicts that global wireless data revenue will triple over the next five years. How do you get behind our wireless world?
Najarian: explains that according to the growth projections the market could reach $73 billion by 2011. He likes JNPR, CSCO, NOK, ERIC, AMT, CCI and RIMM.
Finerman: says her trades are CMVT and FTWR, which she thinks, will benefit from the back haul build.
Macke: prefers SNCR for its technology, which allows users to boot up their cell phones from nearly anywhere.
Adami: prefers CHL.
6. POPS AND DROPS
BX popped 5%: Finerman recommends owning this stock.
EBAY popped 4%: Macke says he´s not surprised.
IHP popped 5%: Finerman likes this stock.
GM popped 5%: Adami says GM CEO Rick Wagoner has figured it out.
AEO popped 9%: Macke doesn´t like this stock either long or short.
NABI popped 20%: Najarian doesn´t expect to see any more upside movement in this stock.
LVS popped 8%: Finerman likes LVS.
CFC dropped 2%: Macke says get out of this stock.
KG dropped 7%: Najarian says KG has a problem.
7. YOUR FIRST TRADE FOR WEDNESDAY
Macke: recommends buying DKS and UA.
Adami: prefers GSK.
Finerman thinks ASD is a buy.
Najarian: likes biotech but doesn't reveal a specific stock pick
News and Events Digest
Breaking News
Bernanke said long-term interest rates have started to rise as lenders grow more risk-averse, a factor that may favor a cut in the Fed's short-term rate target. - WSJ
GMAC obtained a $21.4 billion asset-backed loan facility from Citigroup that replaces a smaller $10 billion credit line. - WSJ
Rio Tinto Ltd. (RTP) has agreed to provide a credit facility of up to US$350 million to Ivanhoe Mines Ltd. (IVN) , its partner in the Oyu Tolgoi copper-gold project in Mongolia. The credit facility is part of an interim funding agreement to keep development work moving at the project and will also lead to Rio Tinto increasing the maximum shareholding it can take in Ivanhoe to 46.65% from the 40% agreed previously.
- MarketWatch
U.S. investor Warren Buffett's Berkshire Hathaway continued to unload his stake in top Chinese oil producer PetroChina (PTR), selling about 92.66 million shares in late August for $136 million, according to a regulatory filing in Hong Kong. - CNBC
Nationwide Financial Services Inc. said Tuesday it has bought roughly 2.9 million shares of its Class A common stock from UBS A.G. as part of an accelerated share repurchase agreement.
Under the agreement, the Columbus, Ohio-based financial services provider bought the stock for $52.19 per share. - AP
Carrizo Oil & Gas Inc. on Wednesday priced a registered direct offering of 1.8 million shares of common stock at $41.40 per share. - AP
H&R Block Inc. said Tuesday it will eliminate 575 positions at its troubled Option One Mortgage Inc. subsidiary, part of a previously announced restructuring plan. - AP
BreitBurn Energy Partners (BBEP) said it's agreed to buy the natural gas, oil and midstream assets in Michigan, Indiana and Kentucky of Quicksilver Resources Inc. (KWK) for $750 million in cash and 24.35 million shares, or roughly $1.45 billion in all. It's also agreed to place $450 million of shares with institutional investors. BreitBurn said the deal fits with its strategy of acquiring long-lived assets with low-risk development opportunities and will lead to a 27% increase in first-quarter cash distribution and a 38% increase in end-2008 distribution. Quicksilver said the deal will make it better prepared to develop higher-return, higher-growth properties in the Fort Worth Basin and other areas. - MarkeWatch
Media Summary:
According to Reuters, Sony (SNE) will begin to launch new versions of it Blu-ray recorders in it battle against the HD DVD format.
Reuters writes that Yahoo! (YHOO) has won exclusive rights to sell display ads for UK social network site Bebo giving the US portal 11 million more users for its marketing network.
Reuters reposts that News Corp (NWS) says it will not pull its video content from Apple (AAPL) iTunes.
The Wall Street Journal writes that Capital One (COF) is launching a money market fund that will offer rewards points depending on the amount of a customer's monthly balance.
The Wall Street Journal writes that OPEC will slightly increase the supply of oil beginning in November.
The Wall Street Journal writes that Amazon (AMZN) will start a contest for start-ups to bring attention to its online storage and software business.
The New York Times writes that BMW has sued a Chinees automaker over copying the design of one of its cars.
The New York Times writes that more studies have cast doubt on the safety of GlaxoSmithKine durg Avandia.
The FT writes that the mortgage industry could cut as many as 100,000 jobs
Barron's writes that Texas Instruments (TXN) narrowed its guidance for the quarter but did not change its mid-point.
CNN Money writes that almost 700 homes in foreclosure will be auctioned off in Detroit this month.
IPO Central:
Babcock & Brown Air on Wednesday filed with the U.S. Securities and Exchange Commission to raise more than $500 million in an initial public offering with underwriters Morgan Stanley, Citi, Merrill, and Credit Suisse. The Dublin-based firm was recently formed to business in the commercial airplane leasing industry. It'll offer up to 21.5 million American depositary receipts, including over allotments, for trading on the New York Stock Exchange under the symbol FLY. - MarketWatch
Stock Splits:
Recent Stock Split Announcement:
On September 11, PACCAR, Inc. (Nasdaq:PCAR) announced that its board of directors approved a 3:2 stock split to be issued on October 9, 2007.
Companies that have previously announced stock splits which become effective in the next several trading days:
Ex-Date Split Symbol Company
9/14 2:1 FMC FMC Corporation
9/18 3:2 LABL Multi-Color Corporation
9/19 11:10 WBNK Waccamaw Bankshares, Inc.
9/28 5:4 LPHI Life Partners Holdings
9/28 3:2 FCSX FCStone Group, Inc.
Economic Data:
10:30 Crude Inventories
Upgrades and Downgrades by Sector:
Investment Banks:
Investment Banks downgraded to Inline at U.S. Atlantic
Advertising
WPPGY WPP Group plc Citigroup Downgraded from Buy to Hold
Beverages
WBD Wimm-Bill-Dann Foods UBS Downgraded from Buy to Sell
Biotech
AMGN Amgen UBS Upgraded from Sell to Neutral
AMGN Amgen Credit Suisse Price Target Raised Neutral $54 to $55
IMCL Imclone Rodman & Renshaw Price Target Raised Mkt Outperform $42 to $55
NPSP NPS Pharm Oppenheimer Initiated at Buy $12
SGXP SGX Pharma Cantor Fitzgerald Initiated at Buy $9
Business Services
PUB Publicis Groupe Citigroup Downgraded from Hold to Sell
Computer Hardware
EMC EMC Corp Caris & Company Upgraded from Above Average to Buy $21 to $25
AAPL Apple UBS Price Target Raised Buy $175 to $182
FFIV UBS Warburg Initiated at Buy
FFIV F5 Networks UBS Initiated at Buy $47
Computer Services
GSIC GSI Commerce Jefferies & Co Upgraded from Hold to Buy $26 to $30
Computer Software
CTSH Cognizant Tech Bernstein Upgraded from Mkt Perform to Outperform
ARBA Ariba Roth Capital Price Target Raised Buy $11 to $12
BPHX Blue Phoenix Roth Capital Price Target Raised Buy $17 to $20
CTXS Citrix Systems Credit Suisse Price Target Raised Outperform $43 to $45
VMW VMware Caris & Company Price Target Raised Above Average $60 to $90
EPIQ EPIQ Systems Northland Securities Initiated at Outperform $20
RNWK RealNetworks Morgan Keegan Initiated at Outperform
COOL Majesco Entertainment Nollenberger Capital Cut Price Target Buy $3 to $2.50
Finance Companies
ACF AmeriCredit Stifel Nicolaus Cut Price Target Buy $30 to $26
WAL Western Alliance Bancorp Credit Suisse Initiated at Underperform $25
Foods
FLOW Flow Northland Securities Upgraded from Market Perform to Outperform $12.50 to $11
IBA Industrias Bachoco SA Citigroup Downgraded from Buy to Hold
FLOW Flow Roth Capital Cut Price Target Buy $15 to $13
Gaming Operations
IGT Intl Game Tech Wachovia Upgraded from Mkt Perform to Outperform
Gold and Silver Mining
AEM Agnico-Eagle Mines UBS Downgraded from Buy to Neutral
Healthcare
ADLR Adolor Brean Murray Upgraded from Sell to Hold
KNDL Kendle UBS Initiated at Buy
DNEX Dionex Matrix Research Upgraded from Sell to Hold
GTIV Gentiva Health Svcs BB&T Capital Mkts Upgraded from Hold to Buy $23
Industrial Equipment
DRC Dresser-Rand Stifel Nicolaus Initiated at Buy $46
Mfg - Wires, Cables
CCIX Coleman Cable Friedman Billings Cut Price Target Outperform $36 to $30
Motion Pictures
MVSN Macrovision Jefferies & Co Downgraded from Buy to Hold $28 to $25
Motor Vehicles
ALV Autoliv Robert W. Baird Upgraded from Neutral to Outperform $60 to $66
Oil and Gas
APA Goldman Sachs Upgraded to Buy
FTO Frontier Oil Banc of America Sec Upgraded from Neutral to Buy $31 to $50
GSF GlobalSantaFe JP Morgan Upgraded from Underweight to Neutral
RIG Transocean JP Morgan Upgraded from Underweight to Neutral
TSO Tesoro Petroleum Banc of America Sec Upgraded from Neutral to Buy $60 to $62
CXO Concho Resources JP Morgan Initiated at Overweight
CXO Concho Resources Banc of America Sec Initiated at Buy $17.50
SGLP Semgroup Energy Wachovia Initiated at Outperform
NFX Goldman Sachs Downgraded to Neutral
SII Smith Intl CapitalOne southcoast Downgraded from Buy to Hold
SUN Sunoco Banc of America Sec Downgraded from Buy to Neutral $90 to $65
WNR Western Refining Banc of America Sec Initiated at Sell $35
Pharmaceutical
SCMP Sucampo Pharma Cowen & Co Initiated at Outperform
Publishing
PRM Primedia Deutsche Securities Downgraded from Buy to Hold $14 to $15.50
Regional Banks
SNV Synovus Bernstein Upgraded from Mkt Perform to Outperform
BBT BB&T Corp Credit Suisse Initiated at Outperform $44
CNB Colnl BancGrp Credit Suisse Initiated at Outperform $25
ZION Zions Bancorp Credit Suisse Initiated at Outperform $85
CYN City National Credit Suisse Initiated at Underperform $71
UB UnionBanCal Credit Suisse Initiated at Underperform $58
REITs
RAS RAIT Invtmt Trust Friedman Billings Cut Price Target Outperform $25 to $20
Retail Trade
CVS CVS Corp Leerink Swann Initiated at Outperform
AEO Merrill Lynch Downgraded
CAO CSK Auto RBC Capital Mkts Cut Price Target Sector Perform $17 to $13
SKX Skechers USA BB&T Capital Mkts Upgraded from Hold to Buy $30
Semiconductors
OIM OPCO Thinks the stock is a Buy here.
Solar Energy
FSLR Goldman Sachs Upgraded to Buy $120
Technology
VRTU Virtusa Cowen & Co Initiated at Outperform
VRTU Virtusa JP Morgan Initiated at Overweight
VRTU Virtusa Bear Stearns Initiated at Outperform $16
MOVE Move CIBC Wrld Mkts Initiated at Sector Outperform $4
Telecommunications
AUDC Audiocodes CIBC Wrld Mkts Upgraded from Sector Perform to Sector Outperform $6.50
GRRF Piper Jaffrey Positive Statements
INTV InterVoice Brean Murray Initiated at Buy $11