Wang’s Happy Trading

Submitted By Optiondragon

Band Of Horses - The Funeral

From Briefing.com

Media Digest 4/11/2008 Reuters, WSJ, NYTimes, FT, Bloomberg- from 24/7 Wallst
According to Reuters, Bernanke says that the current financial system can be fixed.

Reuters writes that Google (GOOG) is using Frank Quattrone as its investment bank advisor.

Reuters reports that banks involved in the Clear Channel (CCU) buy-out argued that the case against them should be dismissed.

Reuters reports that Delta (DAL) and its pilot’s union have reached an agreement that will let a merger with Northwest (NWA) move forward.

The Wall Street Journal writes that most observers believe that a Microsoft (MSFT) deal to buy Yahoo! (YHOO) is the most likely outcome of the struggle between the two companies.

The Wall Street Journal writes that Fontier Airlines (FRNT) has filed for Chapter 11.

The Wall Street Journal reports that a poll of economists shows they believe the economy will ger worse.

The Wall Street Journal writes that Verizon (VZ) is in a legal dispute with Time Warner Cable (TWC) about connection speeds of the two company’s broadbands offerings

The Wall Street Journal reports that Lehman (LEH) repackaged some of its unsold buyout loans into a new security that it used as collateral to obtain cash loans from the Fed.

The Wall Street Journal writes that profits at Genentech (DNA) rose on solid revenue gains.

The New York Times writes that George Soros has given a dire forecast for the economy.

The New York Times reports that March retail sales for most big chains were weak.

The FT writes that AMR (AMR) has cancelled another 1,500 flights.

The FT reports that Wal-Mart (WMT) had strong March sales and lifted its outlook.

The FT writes that a number of airlines want compensation for delays in Boeing’s (BA) 787.

Bloomberg writes that GE’s (GE) push for revenue overseas may help the company weather the US downturn.

Biggest news this morning is GE’s miss. GE reports Q1 EPS 44c vs. consensus of 51c
GE reports Q1 revenue $42.2B vs. consensus of $43.68B. GE lowers 2008 EPS guidance to $2.20-$2.30
Consensus estimate is $2.43. Guidance reflects growth of 0-5%.
GE sees Q2 EPS 53c-55c vs. consensus of 58c.
Watch for continuing market weakness due to this surprising news. GE blamed the miss on its financial services business, saying disruptions in the credit markets was the cause. The earnings miss has had a ripple effect throughout the markets because GE is considered a proxy for the economy. The credit crisis and a weakening economy remain front and center for investors.
GE downgraded to Neutral from Outperform@FBCO
GE downgraded to Neutral from Buy@GSCO

Merrill’s Thain sees growth from abroad-WSJ
Speaking in Beijing, Merrill Lynch (MER) CEO John Thain said he wants the firm to shift focus on where it will seek growth: “Clearly the growth is to come outside the U.S., to come from those rapidly growing parts of the world, in terms of both wealth management and investment banking.” He cited countries such as China, India, Brazil and Russia. Thain also said that Merrill has sufficient capital for “the foreseeable future,” reports the Wall Street Journal.

V initiated with a Buy, target $77@STFL
Stifel has a positive sector view and notes the company’s dominant market share and strong product set, which should benefit from the ongoing worldwide shift from cash to plastic spending.

CLF target raised to $170 from $135, reiterate Buy@DBAB
Deutsche Bank believes the current outlook for iron and coal provide potential upside to estimates and they strongly reiterate a Buy rating on the stock.

DNA: 1Q08 EPS upside; advise buying into mid-$80s range@BARD
Driving the stock this year will be a re-acceleration of Avastin revenue in the 2H08, along with numerous other catalysts. The firm reduced their Avastin estimate modestly, which was offset by a reduction in their expense estimate. Reiterate $88 price target and Outperform rating.

Nike and Apple “definitly” have a future together-Engadget.com
Engadget is reporting that the official word about Nike’s (NKE) future plans with Apple (AAPL), is that the Nike+ system will be “definitely” extend beyond the iPod nano to support the iPhone and iPod touch. Also it will take advantage of WiFi and eventually 3G, moving away from the proprietary RF link between the shoe module and nano adapter.

PXD added to Top Picks Live list in place of APC@SBSH
Citigroup swapped out of Anadarko Petroleum (APC) and into PXD as they see greater near-term visibility. Shares of both stocks are Buy rated.

WM See $17B-$23B in losses, recommend shorting shares@GSCO
Goldman said WM’s mortgage portfolio has between $17B-$23B in losses, of which only $3B have been recognized. The firm recommends being long WM bonds and shorting shares. WM price target to $10 from $12. Shares are Sell rated.
This is actionable.

MHS upgraded to Outperform from Neutral@FBCO
Credit Suisse upgraded MHS citing valuation. Target $58.

BLK downgraded to Market Perform from Outperform@WCHV
Wachovia downgraded BLK citing the weak start for equity performance, difficult comps, and lower utilization rates.

DO upgraded to Overweight from Neutral@JPMS
JP Morgan said DO has the best exposure to strong US Gulf deepwater demand.

TSL: Raising Street high 2008 estimate@COWN
Cowen raised its Street high 2008 E/ADS to $4.05 vs. consensus of 2.90 citing the new GCL supply agreement. Shares are Outperform rated.

School shares rally on loan legislation.
DV, ESI, CECO, STRA, APOL

SanDisk (SNDK) which has been a good performer over the last several weeks is trading down (-3.1%) after a Barron’s Online article suggested the risk in the name was much higher than it appears.

Mad Money recap- Cramer loves CEDC as an emerging market play in Poland. Cramer recommended Baker Hughes (BHI) as another company that has fallen behind its peers and is due for a rally. He noted recent positive comments from Chesapeake Energy (CHK), Devon Energy (DVN), Anadarko Petroleum (APC) and XTO Energy (XTO), as positive signs for BHI, which supplies all four companies. Cramer said that BHI is a classic under-promise, over-deliver situation. BHI does 58% of its business overseas, including in Russia and Brazil, two markets Cramer likes. GOLD: Cramer says, gold stocksa re still worth owning, noting the recent weakness in gold and gold stocks as signs of a classic bull market pullback. Three reasons why gold is now heading higher: (1) the Fed still has to lower interest rates even more, which will make stocks less attractive and gold more attractive. (2) perfect way to play the uncertainly of the upcoming presidential election cycle. (3) he says “we simply don’t have enough of the stuff”.
LIGHTNING ROUND: (Bullish) BMY; MRK; VZ; TXCO; PBR. (Bearish) GCI; Q; YHOO; MIC; PZE; NVDA; SNDK; BAM; ABK.

Fast Money position Update- Macke likes WMT. Adami likes CEPH. Seymour likes COP. Jon Najarian likes CCJ. Macke Owns (INTC), (MSFT), (YHOO), (EMC); Jon Najarian Owns (AAPL), (AG), (AGU), (AMGN), (AMR), (BG), (BHI), (C), (CCJ), (DD),  (DE), (HON), (MLNM), (MON), (MOS), (TSO), (YHOO); Seymour Owns (AAPL), (CCJ), (CSCO), (F), (INTC), (MER), (MSFT), (SBUX), (TSO); Seygem Asset Management Owns (COP), (FMCN); Seygem Asset Management Owns Shares Of Uranium One.

Will be watching the key levels in the S&P of 1340 and 1350. I will watching to see if the market can shake off the bad news from GE. Shorts are the high prob play this morning and will watch for continued weakness throughout the day to see if shorts are good trades at the end of the day. Trade your game plan and be patient. Stay focused and trade what’s in front of you. Great trading and good luck!