Wang’s Happy Trading

Submitted by Optiondragon

AC/DC– Money Talks

From briefing.com

Reuters writes that New York City will probe whether Bear Streans (BSC) misled investors.
Reuters writes that Fannie Mae (FNM) and Freddie Mac (FRE) have won relief from stringent capital rules and so can pump about $200 billion into a shaky mortgage market.
The Wall Street Journal writes that firms are reluctant to borrow from the Fed’s new facility because of concerns that it may make them like they have weak balance sheets.
The Wall Street Journal writes that Exxon (XOM) suffered a set-back when a judge reversed a decision that it could freeze some assets from the Venezuela state oil company.
The Wall Street Journal reports that Adobe (ADBE) is working on a media player for the Apple (AAPL) iPhone.
The New York Times reports that Intel (INTC) and Microsoft (MSFT) are creating a research budget to design a new generation of computing systems.
The FT says Apple (AAPL) may launch a free iTunes program.
Bloomberg says that Sony Ericsson believes lower mobile phone sales will hit its profits.

FDA’s decision on Cephalon cancer drug key to company’s fortunes-WSJ
Tomorrow, the FDA will render its opinion on Cephalon’s (CEPH) cancer drug Treanda. The decision is expected to mark a turning point for the company, as it seeks to move into the cancer treatment market, according to the Wall Street Journal. “We think given a positive decision [from the FDA] it will outperform the market,” says Larry Neibor at Robert Baird & Co., who expects approval. The FDA granted Treanda priority review, which cuts the review time frame to six months, and not the usual 10 months

Remain positive on NOK, RIMM and QCOM@BOFA
Banc of America believes that while the Smartphone market has gotten crowded, only a few vendors dominate industry profits. Nokia (NOK) remains the firm’s top pick, and they also remain positive on Research in Motion (RIMM) and Qualcomm (QCOM). Their checks on RIMM have been positive and they expect the company to post its best quarter yet. Big positive for RIMM.

FMCN- reports Q4 EPS of 52c vs. consensus of 48c
Reports Q4 revenue of $184.6M vs. consensus of $168M. Sees Q1 EPS of 33c-34c vs. consensus of 33c, sees Q1 revenue of $160M-$165M vs. consensus of $157.45M
FMCN sees FY08 EPS of $2.06-$2.21 vs. consensus of $2.08.
Sees FY08 revenue of $900M-$920M vs. consensus of $835.98M.
-FMCN target raised to $86 from $82, remains a top pick@PIPR
Piper believes the strong Q4 results, higher than expected guidance, increased comfort with the wireless business, and the Chairman’s commitment to staying with the company should serve as strong catalysts for shares. They reiterate the stock as a top pick and maintain a Buy rating
-FMCN: Recommend investors buy into today’s strength@OPCO
Oppenheimer expects shares to react positively to the Q4 upside and recommends buying into the rally as they continue to see FMCN benefiting from pre-Olympic spending and higher advertiser budgets. Shares remain Outperform rated.

Goldman Sachs-GS target lowered to $185 from $195, maintain Neutral@BOFA
Banc of America believes that continued markdowns are likely to continue to depress results.

YHOO: View 2009-2010 guidance as ’somewhat aggressive’@BOFA
Banc of America believes the guidance offered yesterday is “somewhat aggressive” and is likely meant to raise Microsoft’s (MSFT) $31 bid for the company. They maintain a Neutral rating on the stock.

IMCL upgraded to Buy from Hold@SBSH
Citigroup upgraded shares to reflect a favorable risk/reward profile ahead of the FLEX data release at ASCO in early June and the company’s attractiveness as an M&A candidate. They raised their target to $52 from $49. IMCL one of my favorite biotech’s going forward.

VCLK: View risk/reward as compelling at current levels@SBSH
Citigroup believes the company has yet to see a material impact on its fundamentals from the macro environment and names the company their top small cap internet long idea. They maintain a Buy rating and $30 target

For J.P. Morgan: WIll it try to dump Bear’s debt?
If J.P. Morgan (JPM) wins Bear Stearns (BSC), it will also inherit $16B of Bear’s commercial real estate loans, points out the Wall Street Journal’s “Property Report”. While the commercial mortgage securities market struggles, the question is, will J.P. Morgan attempt to dump that debt on the cheap, adding to a weak market? Some analysts doubt that that will happen. “J.P. Morgan is perfectly comfortable with the assets that we’re acquiring” because of the Fed’s guarantee,” according to Bill Winters, the co-CEO J.P. Morgan’s investment-banking division. And of course the Fed guaranteed $30B of Bear’s holdings.

MS reports Q1 EPS $1.45 vs. consensus of $1.03
Reports Q1 revenue $8.3B vs. consensus of $7.19B.
MS beats expectations and is gapping higher this morning.

V- Today, investors will be looking at the initial public offering of credit card company Visa (V). The company priced its shares at $44.00, raising $17.9B in the deal, the largest ever for an IPO.

PCLN downgraded to Neutral from Positive@SUSQ
Susquehanna downgraded PCLN as they believe upside may be difficult given the macro environment, competition, and currency headwinds. This downgrade could lead to a pullback since the recent run.

Jim Rogers says ‘we have a long way to go’ in commodities rally - Bloomberg TV

BG upgraded to Overweight from Neutral@JPMS
JP Morgan expects BG to benefit from higher grain prices and to potentially beat FY08 guidance.
Look for strength in shares.

Discover-DFS reports Q1 EPS 50c vs. consensus of 40c

Apple (AAPL) is negotiating an agreement with the major music companies that would allow the computer maker to offer its customers free access to the entire iTunes music library, in exchange for paying a premium for iPod and iPhone devices. Sources say the sticking point in the negotiations is the amount per device that Apple would pay the music companies for unlimited access to their songs. Apple has offered $20 per device, while Nokia (NOK) has offered almost $80 per handset.

Baidu.com faces obstacles to its growth plans-WSJ
Baidu.com (BIDU), the Chinese Internet search firm, is poised for aggressive growth but must also confront a number of obstacles, according to the Wall Street Journal’s “Heard in Asia”. Baidu.com, which has about 60% of the Chinese market, ahead of Google’s 26% and Yahoo’s 17%, wants to add instant messaging, customer-to-customer online auctions, and the ability to receive search results by telephone. But a number of lawsuits regarding its music services and a vacancy in the CFO position are factors investors are looking at. Overall, the potential is huge, with 225 million Chinese users and just 5% o China’s advertising directed to the online market

Cramer on Mad Money last night says this huge oversold market may have finally hit a bottom. Cramer reiterated a buy on AAPL. The markets will bottom in part to the VISA IPO, which was priced at $44 a share Tuesday evening. He anticipates the IPO will prove lucrative for those able to get in and will instill some confidence back into the market. Cramer then recommended Owens Illinois (OI) as a stock that’s in bull market mode, but one that no one knows about. LIGHTENING ROUND: (Bullish) GS; FWLT; HCBK; FTI; GSK; SGP; USB; WFC; RIMM; AAPL; FRO; FCX. (Bearish) MER; FLR; PENN; MBI; FTK; F; DRYS; CRN; CROX; APP; PCU; WB.

Fast Money- They were bullish on MS. Macke urged investors to get out of gold. Guy likes Oracle off of ADBE.
Tim Seymour would short FXE. Pete likes TSO. Macke Owns (INTC), (YHOO), (EMC); Najarian owns (AAPL), (AMR), (BBBY) Puts, (C), (COP) Calls, (CSCO), (JEF) Calls, A Neutral Put Spread In (LEH), (MS), (MSFT), (TSO), (USB) Puts, (YHOO), (XLF); Seymour Owns (AAPL), (BX), (CSCO), (F), (INTC), (MBI), (MER), (MSFT), (SBUX),  (TMA), (TSO)

It is option expiration week so watch the volatility and work with it. Have focus and patience and pick plays with a high probability of success. Seek the zone and stay in it as long as you can. Good Luck and great trading.