Submitted By Optiondragon
Red Hot Chili Peppers - Road Trippin’
From Briefing.com
On The Fly: Periodicals Wrap-Up for Wednesday, May 7th
WALL STREET JOURNAL: The Wall Street Journal reported that an alliance of cable, Internet and chip titans will announce plans to invest $3.2B in a company that will deliver Web access for laptops and cellphones using WiMax. The venture, valued at over $12B, includes Sprint Nextel (S) and Clearwire (CLWR) and will be backed by Comcast (CMCSA), Time Warner Cable (TWC), Intel (INTC) and Google (GOOG)…According to people familiar with the matter, Robert Verrone, one of the most zealous commercial real-estate lenders during the industry’s boom, will leave Wachovia Corp (WB) within the next week…BLOOMBERG: Bloomberg reported that the Department of Justice is probing whether UBS AG (UBS) helped clients evade American taxes. In an e-mailed statement, the firm said one senior bank employee was “briefly detained” by authorities…TECHCRUNCH: According to a rumor, TechCrunch reported that the Yahoo (YHOO) board of directors yesterday authorized Yahoo chairman Roy Bostock, rather than CEO Jerry Yang, to call Microsoft (MSFT) CEO Steve Ballmer about re-starting negotiations…
CEPH: FDA votes against Fentora label expansion; still a Top Pick@FBRC
Fentora sales estimate in 2008 is $161M increasing to $199M in 2012 and the lack of label expansion doesn’t have an impact on solid L-T growth trajectory. FBRC finds the stock to be attractively valued given the company’s solid L-T EPS growth being maintained by Amrix and Treanda. Target price $95 and Outperform rating maintained. :
CSCO: Believe stock will perform in-line with large-cap tech@JMPS
After Cisco reported Q1 results in-line with JMP Securities’ estimates, the firm believes the stock will trade in-line with the market for large cap tech stocks, due to the company’s lack of visibility, according to the firm. JMP Securities maintained their Market Perform rating.
CSCO: Remain buyers of the stock, reiterate Buy@DBAB
Deutsche Bank believes CSCO is at the beginning stages of several major product cycles and reiterates a Buy rating following the company’s Q3 results. Target $30.
CLF: Estimates raised, remains a top metal pick@JPMS
JP Morgan said CLF’s guidance demonstrates the company’s leverage to rising iron ore and met coal prices. The firm views valuation as attractive and said CLF is an increasingly attractive acquisition target for its North American steel customers. Shares are Overweight rated.
STP to supply BIPV solar system in France
SuntechPower Holdings Co., announced it has signed an agreement with Hanau Energies SAS to supply a 4.5MW building integrated PV system to a farm located in Alsace, France. The project will be one of the largest BIPV installations ever built and will employ Suntech’s ‘Just Roof’ modules to form complete weatherproof roofs on five agricultural warehouses on a farm in the Alsace region of France. The 4.5MW installation is anticipated to be completed by January 2009 with an additional 1MW already being planned.
STP gapping up on this news. Looks actionable to the long side.
MTL announces contract for new melting complex
Mechel OAO announces that its subsidiary, Southern Urals Nickel Plant OAO, and Bateman Engineering have signed a contract on the construction of a new melting complex for Mechel’s nickel plant. The contract, which is signed in accordance with the investment program of Southern Urals Nickel Plant, provides fundamental re-equipment of the plant and includes the design and supply of a 12 MW DC furnace. The furnace will be erected at Southern Urals Nickel’s existing facility. The total project value is US$31 million.
APC: Raised 2008 EPS/CFPS to reflect increased production estimate@FBRC
The firm believes the higher end of production guidance through 2010 is attainable. Increased target price to $95 from $82 with an Outperform rating.
CSCO: Shares will likely be range-bound@OPCO
After Cisco reported results for its Q3 that Oppenheimer views as solid, Oppenheimer thinks the shares will be range-bound until there is more visibility on a U.S. recovery. However, the firm is still optimistic about Cisco’s growth prospects, and they maintained their Outperform rating.
NVDA target raised to $25 from $23, maintain Hold@SBSH
Citigroup expects NVDA to issue guidance below consensus estimates, but points out that is widely anticipated. However, they see further downside to estimates after checks suggested that from 1 week of inventory in February, levels have increased to 3 weeks in March and now sit at 4 weeks.
RIG reports Q1 EPS $3.71 vs. consensus of $3.34
Reports Q1 revenue $3.11B vs. consensus $3.05B.
APC upgraded to Outperform from Market Perform@BERN
Bernstein upgraded APC based on expectations that international investments will improve, driven by success in offshore Ghana. Target to $87 from $66.
PXD reports Q1 EPS $1.07 vs. consensus of 84c
Reports Q1 revenue $584.2M vs. consensus of $546.84M.
KWK reports Q1 EPS 25c vs. consensus of 25c
Reports Q1 revenue $157.5M vs. consensus of $154.59M.
CTRP downgraded to Neutral from Buy@PIPR
Piper downgraded CTRP based on valuation. Target $68.
SOHU downgraded to Hold from Buy@DBAB
Deutsche Bank downgraded shares on valuation and expects 2009 growth to be modest. Target raised to $78 from $75.
DVN reports Q1 EPS $2.74 vs. consensus of $2.33
Reports Q1 revenue $2.97B vs. consensus $3.28B.
Gapping up.
FWLT reports Q1 EPS 85c vs. consensus of 73c
Reports Q1 revenue $1.8B vs. consensus of $1.48B.
Gapping up.
CHK gapping up.
FSLR gapping up.
Jim Cramer’s “Mad Money” recap- Cramer has called 2008 “the year of natural gas”. He especially likes Anadarko Petroleum (APC), which he called a “must buy” on March 25, and since then the shares are up $11.51. Cramer says APC could rise to $100 in the next 18 months. Cramer extended his optimism to the entire natural gas sector and the drillers in particular, as growth rates for the natural gas drillers are averaging 15%, and the sector’s excellent visibility is another plus. Rounding out his favorite natural gas drillers, Cramer also recommended DVN, APA, SWN, UPL, ECA, XTO, EL, COP, NBR, and HAL. Regarding the prices of oil itself, Cramer raised his price target from $125 to $150 a barrel, and that you “haven’t missed the move yet.”
Fast Money position recap- First Moves-
Jeff likes XLF, Guy likes MRK, Pete likes AAPL, Karen thinks KALU is a buy before earnings.
Adami Owns (C), (GS), (INTC), (MSFT), (NUE), (BTU), (AGU); Najarian Owns (AAPL), (TSO), (XLF); Najarian Owns (BSC) Calls, (BUD) Calls, (CSCO) Calls, (EP) Calls, (MSFT) Calls, (YHOO) Calls, ( C) Calls; Macke Owns (DIS), (INTC), (MSFT); Finerman Owns (GS); Finerman’s Firm And Finerman Own (HD), (KALU); Finerman’s Firm Owns (MSFT), (NYX), (PLCE), (TSO), (VLO), (JCP), (AEO); Finerman’s Firm Owns (YHOO) And (YHOO) Call Spreads; Finerman’s Firm Owns SPX Index Puts; Finerman’s Firm And Finerman Own (C) And (C) Leaps; Finerman’s Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM); Finerman’s Firm Is Short The British Pound.
Watching solars (esp. FSLR, STP) and energy going into and after oil inventory reports. Hawking MA, V, Shippers- DRYS, GNK, DSX, FRO, EXM, TBSI, DVN and RIG after earnings gaps, 4 Horsemen esp AAPL, MTL and steels, Met coal plays- MEE, CNX, ICO, FDG, ANR, WLT, CLF, TCK, Chinese plays and FXI is gapping down which is something to watch. Focus on the positives, pick plays with a high probability of success, run technicals through supply and demand (pivot lines, support and resistance levels). Great trading and good luck!
