Submitted By Optiondragon
Ben Harper – Strawberry Fields Forever
From Briefing.com
Bernstein upgrading the Natural Gas plays ECA to Market Perform, APA and XTO to Outperform. Look for strength in the NG plays today include coal plays with that if energy shows strength.
According to Reuters, Comcast (CMCSA) and Time Warner Cable (TWC) are in talks to fund a wireless venture to be operated by Clearwire (CLWR) and Sprint (S).
The Wall Street Journal writes that the stock market is trading where it was nine years ago moving in the direction of downturns in the 1930s and 1970s.
The Wall Street Journal writes that the Clear Channel (CCU) buy-out is near a collapse.
The New York Times writes that China shipped $12 billion in engine auto parts last year, pressuring the industry in North America.
The FT writes that banks are hoarding money and not passing on rates from centrail banks to customers.
The FT reports that banks in the The Federal Home Loan Banking system want to start a “mononline” insurance business to help local government bonds.
Bloomberg writes that Goldman Sachs believe write-offs at US banks and brokerages may hit $460 billion, four times that amounts already disclosed.
CCU gapping down hard after the deal collapse. Probably will show a flatline or additional weakness here.
DLB risk/reward has improved following recent decline@PACS
Pacific Crest believes downside is limited from current levels but maintains a Sector Perform rating.
GRMN: Valuation attractive, don’t see correlation with SIRF@JMPS
After GPS chip supplier SIRF (SIRF) lowered its revenue guidance, JMP Securities maintained their Outperform rating on Garmin. as the firm notes that Garmin has reported stronger than expected results in the past when SIRF reported disappointing results.
Good vote of confidence for GRMN and some upward confidence.
The markets had been anticipating the Durable Goods Orders for the month of February, and a core reading of -0.3%. The core reading is durable goods orders minus transportation items, and the number came in at -2.6%. The market showed weakness after the number in the futures premarket.
Handsets: Believe market remains solid, see 10% growth for 2008@BEST
VRTX: Telaprevir progress remains on track@GSCO
Following a management meeting, Goldman said Telaprevir’s progress remains on track. Shares are Buy rated.
ELN downgraded to Sell from Hold@ADAM
Canaccord Adams downgraded ELN citing valuation.
CSUN reports Q4 EPS (6c) vs. consensus of (10c)
Reports Q4 revenue $71.5M vs. consensus of $61.04M. The Company is revising its 2008 production target to 125-145 MW with approximately 65 to 85 MW expected to come from high efficiency cell products. The Company anticipates its gross margin for first quarter of 2008 to be between 7.5% and 8.5%.
Google hopes for big profits with YouTube-Fortune
Many believe that Google (GOOG) has not yet figured out how to make a profit from its acquisition of YouTube. The search engine has gone after major brand advertisers that see video as an opportunity to ‘connect’ with consumers, but advertisers may see YouTube’s collection of user-uploaded clips as unmarketable. Google has been testing several types of ad formats and has had moderate success so far, but analysts believe it may stillt ake some time to ‘turn up the dial on monetization.’
Manitowoc-MTW initiated with a Buy, target $48@SALI
Netease.com-NTES initiated with a Buy, target $24@MLCO
As J.P. Morgan moves to absorb Bear Stearns, protests continue-WSJ
As many Bear Stearns (BSC) employees await their future, J.P. Morgan (JPM) is moving forward to take over the firm. While several competitors have been looking over the talent pool there, any potential moves are affected by the current round of cut backs throughout the industry. J.P. Morgan told Bear employees that they will absorb the prime brokerage and global trade-processing business, but that’s just 800 of Bear’s 14,000 employees. Meanwhile, according to the Wall Street Journal’s “Heard on the Street”, two pension funds for retired employees of Detroit’s police and fire departments, and other employees of Wayne County, in Michigan, have filed a motion in Delaware state chancery court seeking an injunction against the deal, and say the $10-a-share price is “grossly inadequate.”
LULU : Checks indicate strong demand, would be buyers of stock@OPCO
Coal Sector upgraded to Neutral from Cautious@GSCO
Goldman upgraded the Coal sector citng valuations. The firm upgraded ANR to Buy from Sell; CNX to Buy from Neutral; and ACI, ICO, & MEE to Neutral from Sell. The analyst recommends the pair trade Long ANR and short FCL. This is actionable.
MOT to create two separately traded companies
Motorola, Inc. announced that the Company’s Board of Directors has commenced a process to create two independent, publicly-traded companies. The decision follows the Company’s January 31, 2008 announced evaluation of the structural and strategic realignment of its businesses and represents affirmative steps to position its Mobile Devices and Broadband & Mobility Solutions businesses for success, while creating value for all Motorola shareholders.
BAC: See potential $3B in Q1 write down@GSCO
JASO named Best Pick in group, reiterate Buy@THNK
ThinkEquity said JASO has achieved the lowest cell production cost without the benefit of being the largest. The firm expects the company’s aggressive expansion plan and R&D roadmap to lead to outperformance and has named JASO its Best Pick.
MON target raised to $160 from $145 on higher estimates@SOLE
U.S. Banks: Estimates lowered again, led by Citigroup@OPCO
Oppenheimer cut their Q1 estimates for U.S. banks, led by Citigroup (C), to reflect mortgage and CDO related write-downs. Citigroup’s Q1 estimate was lowered to ($1.15) from (28c) and 2008 estimate to (15c) from 75c to reflect potential Q1 write-downs on leveraged loans and collateralized debt obligations of $13.1B. OPCO’s analyst believes this will not be the last of the estimate cuts and thinks stocks have further downside.
Mad Money recap- Interviewed APC CEO and loves the stock and the CEO. On Canadian National Railway (CNI) it may be a good investment given the recent strength of CSX Corp. (CSX), and Cramer is going to research CNI further. LIGHTNING ROUND: (Bullish) AAPL; AEM; AUY; GS; JPM; CVX; COP; BP. (Bearish) HANS; LULU; TIR; CSE; WM.
Fast Money Positions- First moves- Macke likes INTC, Seymour likes TSO, Finerman likes MO, Najarian thinks ORCL is a buy ahead of earnings. The following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (YHOO), (INTC); Najarian Owns (AAPL), (CSCO), (ETFC), (MS), (MSFT), (NOK), (TSO), (XLF), (YHOO); Najarian Owns (COP) Calls, (BSC) Calls; Finerman Owns (GS); Finerman’s Firm And Finerman Own (HD); Finerman’s Firm Owns (MO), (MO-W),(MSFT), (PM-WI), (TSO), (VLO), (YHOO), (SUN), (AAPL); Finerman’s Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY), (COF); Seymour Owns (AAPL), (BX), (CSCO), (DELL), (F), (INTC), (MER), (TMA), (TSO); Seygem Asset Management Owns (IBN), (CX) (TTM).
My RIO calls are looking real good this morning.
I’ll be keeping an eye on the Rails today as well. They have been showing some surprising strength. UNP, BNI, CSX, CNI, NSC. Let’s see if they can sustain these recent gains. SLV and the gold plays such as AEM look to be positioning for some short term bullish moves. Keep an eye on gold prices(GLD).
The market has moved over 400 points in the past 3 days so it could get a breather today.
Stay nimble today. Look for great setups and find the zone. Good luck and great trading.
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