Wang’s Happy Trading

Submitted by Optiondragon

The Fratellis - Flathead

From breifing.com

Media Digest from 24/7 Wall St.
According to Reuters, Alcoa (AA) profits fell by half due to high energy costs and a weak dollar.

Retuers reports that AMD (AMD) cut guidance and will lay-off 10% of its staff.

Reuters reports that Washington Mutual (WM) is near to getting a $5 billion investment.

Reuters reports that summer gas use is expected to drop for the first time since 1991.

Reuters writest that car makers are trying to create vehicles similar to the successful Toyota (TM) Prius.

The Wall Street Journal writes that Alan Greenspan is defending his legacy at the Fed as the current financial crisis causes some people to question it.

The Wall Street Journal writes that the Big Three will attempt to export cars to make money because of the weak dollar and lower labor costs.

The Wall Street Journal writes that earnings concerns as weighing on the stock market.

The Wall Street Journal writes that Google (GOOG) will let outside deverlopers to run their applications on the company’s servers.

The Wall Street Journal writes that Starbucks (SBUX) is launching a new coffee product in the hope of getting back some customers.

The Wall Street Journal writes that the SEC has begun to probe the marketing of auction rate securities.

The Wall Street Journal writes that financial companies are raising money from their own investors using rights offerings.

The Wall Street Journal writes that Venezuela will take control of top cement producers.

The Wall Street Journal writes that PC makers are rushing to market with small, inexpensive PCs.

The Wall Street Journal reports that online retail sales are expected to rise 17% this year.

The New York Times writes that inflation in Asia is raising the costs of US imports.

The New York Times writes that CBS (CBS) may outsource some if its news gathering to Time Warner’s (TWX) CNN.

The FT writes that US reviews of sovereign funds investments will increase.

The FT writes that John Paulson and Phil Falcone, of New York’s Harbinger Capital, who was estimated to have made $1.5bn-$2bn last years. According to Trader monthly several US managers made huge sums: Jim Simons of Renaissance Technologies ($1.5bn-$2bn); Steve Cohen of SAC Capital ($1bn-$1.5bn); Ken Griffin of Citadel Investment ($1bn-$1.5bn); and Paul Tudor Jones of Tudor Investment ($600m-$700m).

Bloomberg writes that US home prices may stop falling well before early next year.

Fannie Mae (NYSE: FNM) raised to Overweight at Lehman.
Freddie Mac (NYSE: FRE) raised to Overweight at Lehman.
Apple (NASDAQ: AAPL) Cut to Underperform from Market Perform at Morgan Keegan.

Alcoa’s (AA) earnings failed to impress investors. The company did report better than expected revenues and said its fundamentals allow them to be very well positioned when the economy in North America turns for the better.

WLT downgraded to Hold from Buy@GABE
Gabelli downgraded shares following the seaborne settlement between Posco and Australian producers at $309 per metric tonne FOB port, more than 200% above last year’s price, as they believe the settlement may lead to an end of force majeure declarations among the same Australian producers.

DNA: Continue to like the stock and advise buying it; target $88@BARD
The stock has many catalysts on tap, along with anticipated Avastin reaccleration and seemingly still-attractive valuation. Reiterate Outperform rating.

BIDU: Would be buyers ahead of expected Q1 upside@PACS
Pacific Crest’s checks indicate that advertising on Baidu.com was strong in March, offsetting a seasonally weak January and February. They now expect revenue to be flat to up 5% sequentially, compared with their forecast of down 3.5%, which should drive 2c-5c in EPS upside. They would be buyers of the stock in anticipation of Q1 upside and maintain an Outperform rating.

CELG: Anticipate upside to 1Q08 results when reports 5/8@BARD
The firm reduced their 1Q08 and FY08 EPS estimates due to their concern related to Revlimid’s competitive pressure from MLNM’s Velcade, particularly in the 2H08 following Velcade’s expected front-line MM approval. Reiterate $61 price target and Neutral rating.

Advanced Micro (AMD) is trading down (-3.75%) but has been much lower following a negative pre-announcement last night after markets were closed. This has hurt many semiconductor names in Europe such as ASML Holdings (ASML) which is trading down (-4.8%). Although not yet actively traded Novellus (NVLS) is down over (-5%), KLA-Tencor (KLAC) is down (-2%) and Intel (INTC) is off (-1.2%).

NutriSystem (NTRI) which is now up +16.1% after the company announced its CEO transition plan.

Semiconductors: Risk/reward remains positive@COWN
Cowen said lean inventory in the channel is being misunderstood and has positive implications. The firm believes semis are being priced for a much more negative scenario than is likely to materialize. The analyst believes stocks with the best risk/reward are INTC, IDTI, TXN, and ONNN.

AA target raised to $50 from $48, reiterate Buy@SBSH
Citigroup notes that Q1 operating EPS of 50c exceeded their 46c estimate. They raised their estimates and target to reflect operating improvements, lagged benefits from current Aluminum prices, and higher commodity forecasts.

Salesforce.com, Google may announce partner agreement next week-TechCrunch
TechCrunch reports that Salesforce.com (CRM) is slated to announce several partnerships at at event next Monday. The site has learned that Salesforce will begin reselling applications from Google (GOOG) such as Google Documents to its customers. The potential partnership also heightens rumors that CEO Marc Benioff Salesforce would be happy ‘to sell [the on-demand enterprise software company] to Google,’ a move which would aid Google’s efforts to sell into enterprise accounts

GRMN downgraded to Hold from Buy@SOLE
Soleil downgraded shares to reflect the weak U.S. consumer spending environment and concerns that TomTom will continue to be aggressive on price. Target lowered to $60 from $90. :

LDK Files To Sell $300M In Senior Convertible Notes. Probably one reason LDK had so much weakness yesterday.

DLB added to Alpha List, maintain Buy@PIPR
Piper believes concerns of a CE market slowdown are overblown and continues to expect March quarter and 2008 upside. They think the 15% sell-off over the past three weeks is unwarranted.

Japanese seek sovereign investors to help lift its stock market-WSJ
Japanese funds, including Nomura Securities, part of Nomura Holdings (NMR), and Daiwa Securities SMBC, are targeting foreign investors to help breath life into its anemic stock market, according to the Wall Street Journal’s “Heard in Asia”. They’re speaking with investment firms owned by foreign governments from Russia to the Middle East to Scandinavia. And a number of deals have already taken place, such as the purchase of Tokyo’s Westin hotel by the Government of Singapore Investment Corp. Others have invested in Sony (SNE) and Cosmo Oil. With many stocks at bargain prices, more foreign investors are expected to step forward. “A lot of people now realize the competitive edge in technology, research-and-development capabilities and human resources,” says Takeo Sumino, at Nomura.

CHTT reports Q1 EPS $1.01 ex-items vs. consensus of 95c
CHTT reports Q1 EPS 75c vs. consensus of 95c, includes expense
Reports Q1 revenue $120.8M vs. consensus of $114.48M. The company said that Q1 results included $6M, or 20c per share, in product recall expenses.

Rio Tinto CEO says company doesn’t need BHP-Globe and Mail
In a presentation to the Canadian Club of Montreal, Rio Tinto (RTP) CEO Tom Albanese said that the company ‘doesn’t need’ the help of BHP Billiton (BHP) to create shareholder value, as the company has ‘an exceptional growth pipeline’ to feed global demand for commodities. Rio Tinto turned down BHP’s $135B hostile takeover offer, explaining that the bid undervalues the company. Albanese sees specific growth opportunities for Rio in iron ore, aluminum and copper, and argues that a U.S. recession will likely only have a minimal impact on China’s demand for the commodities.

Anadarko Petroleum-APC reinstated with a Buy@MLCO
Devon Energy-DVN reinstated with a Buy@MLCO
FLS downgraded to Neutral from Outperform@BARD
Baird downgraded FLS citing valuation. Target $120.

AAPL downgraded to Underperform from Market Perform@MOKE
Morgan Keegan downgraded AAPL citing increased evidence of broad -based weakness in consumer technology spending in the US & Europe. Additionally, the firm expects challenges in the company’s education vertical due to state and local budget issues, which could lead to decelerating growth over the next 2-3 quarters.

Brokers and Asset Managers sector upgraded to Attractive from Neutral@GSCO
Goldman upgraded the sector as they believe an inflection point has been reached for stocks with minimal credit exposure, or where exposure is marked to market. Goldman expects the problem to shift to regional banks and specialty finance from brokers. As such, Goldman upgraded American Express (AXP), Metlife (MET), Bank of New York Mellon (BK), Franklin Resources (BEN), Janus Capital (JNS) and NYSE Euronext (NYX) to Buy from Neutral, and downgraded Marshall & Ilsley (MI) to Sell from Neutral as well as Wells Fargo (WFC) and Zions Bancorp (ZION) to Neutral from Buy.

NTRI sees Q1 revenue $216M vs. consensus of $203.46M
The company sees Q1 adjusted EBITDA of $24M-$27M and operating profit of $21M-$24M.

Fast Money position update: First moves- Macke likes MSFT, Karen likes GS, Pete likes CHK, Adami says take profits on X. Macke Owns (YHOO), (MSFT); Pete Najarian Owns (AAPL), (NOK), (YHOO), (NVS), (XLF); Pete Najarian Owns (AA) Calls, (CHK) Calls, (MSFT) Calls, (BHI) Calls; Finerman Owns (GS); Finerman’s Firm And Finerman Own (CROX); Finerman’s Firm Owns (FLS), (MSFT), (YHOO); Finerman’s Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM).

Art Cashin says that the interim bottom is in but the consumer is hitting the wall. He says watch rice. Rice is being hoarded and could be a destabilizing factor to governments around the world. He expects the earnings season to be slightly disappointing and he will be watching guidance going forward.

The market looks to take a breather this morning based on premarket action. Keep focused on your goals and keep positive. Move with the market and be nimble, look for great setups. Great trading and good luck!