Wang’s Happy Trading

Submitted By Optiondragon

U2 - Beautiful Day

From briefing.com

Media Digest 4/10/2008 Reuters, WSJ, NYTimes, FT, Bloomberg from 24/7 Wallst.
According to Reuters, Yahoo! (YHOO) is seeking a merger with Time Warner’s (TWX) AOL which Microsoft (MSFT) and News Corp (NWS) at a joint bid for the No.2 search company.

Reuters writes that AMR (AMR) shut down about 1,000 flights for safety inspections.

Reuters reports that GM (GM) and Toyota (TM) recalled 662,000 cars in the US.

Reuters writes that airlines are beginning to ask Boeing (BA) for compensation due to the delay of the 787 Dreamliner.

Reuters reports that a large number of Asian hedge funds will be bought out or closed this year.

Reuters reports that Merrill Lynch (MER) is considering expanding its brokerage operations in China.

The Wall Street Journal writes that worldwide inflation is likely to reach the highest level in a decade.

The Wall Street Journal writes that both gas and oil prices reached record highs.

The Wall Street Journal reports that banks are selling risky assets as the debt markets become more active but the extent of these sales may be very limited as risk is still a major Wall St. concern.

The Wall Street Journal reports that Boeing (BA) has delayed the launch of its Dreamliner again.

The Wall Street Journal writes that IAC/Interactive is launching several websites to expand its internet presence.

The Wall Street Journal reports that Dell (DELL) will enter the low-priced PC market.

The Wall Street Journal reports that many hedge funds had their worst quarters in years.

The Wall Street Journal reports that buyers of the riskiest mortgage-backed debt are gaining influence in the market by taking on pool of paper likely to have some defaults.

The Wall Street Journal reports that Circuit City (CC) had its first profit in over a year.

The New York Times writes that George Soros sees the credit crisis topping $1 trillion.

The FT writes that money markets are signaling more concerns about bank due to the difference between overnight lending rates set by central banks and three-month Libor.

Bloomberg writes that China’s trade surplus dropped for the first time in three years

AIG: Predict lower book value per share@WCHV
After attending an analyst meeting about AIG’s foreign life insurance and retirement services business, Wachovia believes the business’ fundamentals are positive, but Wachovia thinks AIG’s book value per share will probably drop when it reports its Q1 results.

WMT sees Q1 EPS 74c-76c vs. prior guidance of 70c-74c. Raising outlook. Retail sales announced show sluggish results for March. The figures indicate that shoppers remained focused on buying basics at discounters and wholesale clubs, and held off on purchasing clothes and other items. Wal-Mart (WMT), however, raised their earnings outlook, noting that better inventory control helped to limit markdowns on merchandise.
Consensus is for EPS of 72c. This call is actionable and will look for some early strength.

PSA: Believe the Street is underestimating growth prospects@JPMS
JP Morgan believes consensus FFO estimates for 2008/2009 are too low and maintains an Overweight rating on the stock.

AAPL March quarter estimate raised to $1.09 from $1.05@JPMS
JP Morgan raised their March quarter estimate as they believe AAPL will report better than expected MacBook shipments in the quarter. They see an attractive trading opportunity in the stock over the next couple of weeks, but maintain a Neutral rating on macro concerns.

MA: Target to $275 from $220, fundamentals on track@UBSW
UBS said MA’s volume growth trends remain a track and they continue to be positive on shares. The firm reiterates their Buy rating. Will see if MA shows some muster early and throughout the day.

CSCO: See potential upside to Q3@MSCO
Morgan Stanley’s checks indicate potential Q3 upside said only modest risk to Q4 guidance. The firm adds that Enterprise weakness is reflected in valuation. Shares are Overweight rated.

Solar: Continue to recommend FSLR, ENER, SPWR, & ESLR@LYON
Calyon said interest in upgraded metallurgical-grade silicon (UMG-Si) has increased but supply can not be ensured. The firm continues to expect the poly market to remain tight despite what happens with UMG-Si and cotinues to recommend FSLR, ENER, SPWR, and ESLR.

Mosaic-MOS meetings with management in NY 4/9 - 4/10 sponsor JPMS

LEH: Continue to expect more write-downs to equity, maintain Buy@DBAB
Deutsche Bank met with LEH’s CFO and notes the company expects the markets to remain difficult. Deutsche expects more write-downs to equity in Q2 of $2B and tougher revenues this year. Their Q2 estimate remains 43c, below consensus of $1.07.

Microsoft could join with News Corp for Yahoo! bid-NY Times
According to people involved in the discussions, News Corp (NWS) is reportedly in talks about joining with Microsoft (MSFT) in a bid to acquire Yahoo! (YHOO). With News Corp’s help, Microsoft would be able to raise its bid for Yahoo!, which is said to have held conversations with Time Warner’s (TWX) AOL and News Corp, and put increased pressure on the company and its shareholders. Additionally, a joint News Corp-Microsoft bid would leave Yahoo! with few alternatives. The people familiar said it remains a possibility that News Corp will participate in a deal with Yahoo! on its own. Yahoo!’s board is expected to meet this week to discuss its options

YHOO shares more ‘in play’ than current share price implies@SBSH
Citigroup believes that YHOO has more strategic options than the market has believed and reiterates a Buy rating with a $34 target. They continue to think a MSFT-YHOO deal is the most likely outcome.

AGU to acquire European distribution network
Agrium announced that it has entered into an exclusive agreement to acquire a 70 percent equity position in Common Market Fertilizers’ one of Western Europe’s largest fertilizer distribution companies. CMF has annual sales revenues of $500 to $600 million, crop nutrient sales volumes of 2 to 2.5 million tonnes and an annual EBITDA of approximately $10-million. The purchase price for 70 percent of the business is $16-million plus working capital of approximately $50-million. The transaction is expected to close in the second quarter of 2008, subject to concluding a definitive purchase and sale agreement, due diligence and regulatory approval. Oscar Geyer will remain as CEO of CMF, and will continue to hold an equity position in the company.
Will see if this pushes AGU higher.

IBM estimates raised ahead of Q1 results, reiterate Buy@SBSH
Citigroup raised their Q1 estimate to $1.48 from $1.43 as they expect solid results across all divisions. :

ISRG initiated with a Buy, target $420@LAZA
Lazard sees further upside driven by da Vinci market penetration.
ISRG initiated with an Outperform, target $400@JMPS
JMP Securities expects ISRG to benefit from the under penetrated US systems market and da Vinci systems adoption.

Weakening economy reduces Las Vegas casino’s winnings-WSJ
In February, revenue from gambling in Las Vegas slipped 3.1% to $556.6M, bringing down the shares of some casinos as well. January saw a 1.3% decline, as analysts reacted negatively to the poor start of the year. That has affected room rates, which are down, meaning less visitors, reports the Wall Street Journal. “With room rates down this quarter and gaming revenue declining, it is clear that Las Vegas is feeling the impact of a difficult economic environment,” wrote Deutsche Bank casino analyst Bill Lerner recently. A greater reliance on tourism has placed Las Vegas in the same spot as other destinations: When the economy is down, so is traffic. What are they doing? Offering more discount and package deals.
Will look for casino weakness, MGM, LVS, WYNN

Fast Money position update: First moves- Jeff likes BA, Adami likes AMR, Najarian likes puts on PPC, Seymour prefers shorting MTL and buying it back at $130.
Najarian Owns (AAPL), (AMR), (BIIB), (CSCO), (NOK), (TSO), (XLF), (YHOO), (EMC),  (WLT); Najarian Owns (CHK) Calls, (COP) Calls, (MSFT) Calls, (SLB) Calls; Najarian Owns (LEH) Puts, (OIH) Puts; Macke Owns (YHOO), (INTC), (DIS), (MSFT); Seymour Owns (AAPL), (BX), (CHL), (CSCO), (INTC), (MSFT), (SBUX), (TSO), (TIE); Seygem Asset Management Owns (COP).

Keeping a close eye on the energy patch since oil prices are strating to hover at $110. Going with the flow as the market looks weak at the start here. Keep disciplined and keep positive. Have a short list and long list and move with the market. Good luck and great trading.