Wang’s Happy Trading

Submitted By Optiondragon

Spoon– “The Way We Get By”

From Briefing.com

Media Digest 4/21/2008 Reuters, WSJ, NYTimes, FT, Barron’s from 24/7 Wallst.
According to Reuters, National City (NCC) will raise as much as $7 billion.

Reuters writes that Viacom (VIA) will launch a pay TV channel to compete with Time Warner’s (TWX) HBO. Its partners will include MGM and Lionsgate.

Reuters writes that The National Association for Business Economics members are becoming more concerned about the economy.

Reuters writes that drivers are paying record prices for gas.

Reuters reports that a German magazine wrotes that Boeing’s (BA) Dreamliner will be delayed again.

The Wall Street Journal reports that Blockbuster (BBI) may not be able to finance its plan to buy Circuit City (CC).

The Wall Street Journal writes that the Saudis are reluctant to start more oil project which could drive prices higher.

The Wall Street Journal writes that losses at Citigroup (C) and Merrill Lynch (MER) could have been worse but an accounting feature allowed them to keep some write-downs off their books.

The Wall Street Journal reports that The Bank of England plans to put $100 billion into the banking systems to try to offset mortgage losses.

The Wall Street Journal writes that Yahoo! (YHOO) hope that a solid quarter will improve its leverage with Microsoft (MSFT).

The Wall Street Journal writes that Microsoft is starting to sell software on a subscription-based model.

The New York Times writes that biotech grains are becoming more popular as food prices rise.

The FT writes that Bank of America (BAC) will sell part of its China bank venture to raise money.

Bloomberg reports that emerging market oil use has passed that by the US for the first time

ASIA recap- Asia Markets 4/21/2008 (HMC)(SNE)(LFC)(PTR)
Most markets in Asia were up.

The Nikkei rose 1.6% to 13,697. Canon was up 6.1% to 5380. Honda (HMC) was up 8.8% to 3330. NEC was up 7.3% to 468. Sony (SNE) was up 5.7% to 4640.

The Hang Seng rose 2.6% to 24,818. China Life (LFC) rose 4% to 29.90. China Petroleum (SNP) rose 3% to 7.56. Petrochina (PTR) rose 3.7% to 10.18.

The Shanghai Composite was up .7% to 3,117.

SLB target raised to $120 from $91, maintain Sector Perform@RBCM
RBC raised their target as they believe SLB is likely to track in line with the broader oil service group driven by international growth prospects and potential improvement in margin.

SLB target raised to $117 from $97, maintain Buy@DBAB

HOC: Firm reiterates HOC as their Top Pick in their covered universe@FBRC
With the company’s current line-up of capital projects coming online, the firm’s analysis implies HOC’s EBITDA should double from 2008 through 2010. FBRC raised target price to $70 from $65 and reiterates their Outperform rating.

JASO signs long-term wafer supply agreement
JA Solar Holdings Co., Ltd. announced that it has signed a new long-term silicon wafer supply agreement with Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd., a subsidiary of GCL Silicon Technology Holdings Ltd. Under the agreement, GCL Silicon Technology will supply a total of approximately 6,000 MW of silicon wafers to JA Solar from April 2008 to December 2015 at predetermined prices. Delivery of wafers has commenced in the current month.

ACI reports Q1 56c EPS vs. consensus of 46c
Reports Q1 revenue $699.4M vs. consensus of $686.82M. The company said, “In 2008, we expect supply tightness in the eastern United States to trigger a meaningful reduction in generator stockpiles by year-end. This tightness already has begun to manifest itself in terms of rising eastern coal index prices and declining eastern stockpile levels. We believe these trends will translate into increased demand for western coal, particularly during the second half of the year.”
Great news for coal plays looking forward. FDG has earnings tonight.

MSFT: Expect upside to Q3 consensus estimates@PACS
Pacific Crest believes MSFT is likely report upside to Q3 estimates due to laptops and currency and finds the valuation low at current levels. Shares remain Outperform rated. :

C 2008 EPS estimate lowered to (45c) from (15c)@OPCO
Oppenheimer also reduced their 2009 EPS estimate for Citigroup, to 90c from $2.50.

Crude oil pushes past $117 a barrel
To begin the week, the futures are pointing to a lower open. The price of crude oil hit a record high of $117.40 per barrel after a Japanese tanker was hit by a rocket near Yemen, and two attacks were reported on pipelines in Nigeria. OPEC denied requests to increase production, saying that the supply of oil is not the problem but rather speculators who are driving up the price. Also, over the weekend, Iranian President Ahmadinejad was quoted as saying that crude prices at $115. a barrel are too low and that oil must “discover its real value.”

CELG: Survey indicates Revlimid pressure@BARD
Baird’s survey indicates MLNM’s Velcade is seeing a more dramatic uptake than CELG’s Revlimid. The firm expects Revlimid to meet Q1 expectations but said it expects Velcade’s mid-2008 approval to pressure Revlimid in 2H08.

AAPL Q1 estimate raised ahead of Wednesday’s results@SBSH
Citigroup raised their Q1 estimate to $1.23 from $1.14 as they now expect PC unit shipments of 2.1M, up from 2.0M, and iPod unit shipments of 9.5M, down from 10.0M and consensus of 10.5M. AAPL remains the firm top pick for 2008 with a $212 target. Shares are Buy rated.

Google looks to catch up with Baidu in China’s online search market-Bloomberg
In an effort to catch up with Baidu.com (BIDU), Google (GOOG) is reportedly planning by 2011 to process more local Web queries through mobile phones than computers. Through an alliance with China Mobile (CHL), Google is leading Baidu, which accounted for 60% of China’s market for searched-based online advertising sales in Q4, in Chinese wireless search.

Pre-Market Movers: Ahead of the Bell from flyonthewall.com
The session is light on the volume side with a significant number of shares moving in price. ImClone (IMCL) is trading up +2.3% after Genentech’s (DNA) drug Avastin, competitor to ImClone’s Erbitux, failed its European trial. The company reports on April 24th. Merck (MRK) is trading up +2.48% after reporting better than expected earnings this morning. Nissan (NSANY) is trading down (-0.2%) on no specific news. Apple (AAPL) is trading up +0.7% ahead of earnings on April 23rd. Citigroup took up estimates this morning. EMC Corp (EMC) is trading up +2.1% ahead of earnings to be reported on April 23rd. Microsoft (MSFT) is trading up +1.2% ahead of earnings to be reported on April 24th. Broker reactions were mixed on the name this morning with Deutsche Bank lowering its price target to $36 while Pacific Crest expected upside to Q3 consensus EPS. Google (GOOG) is up fractionally at +0.2% continuing gains from Friday’s upside rip. Crocs (CROX) is trading up +1.8% despite an article in the WSJ in which the Japanese government was reported to have asked the company to make design changes for safety reasons. The stock has been hammered down enough that a dead cat bounce may be in progress. JA Solar (JASO) is trading up +3.8% after news that it signed a long-term wafer supply agreement.

Fast Money recap- Macke and Karen like MSFT. Pete likes EMC. Guy likes WB. Macke Owns (DIS), (INTC), (MSFT), (YHOO); Najarian Owns (AAPL), (AMR), (BIIB), (CSCO), (MSFT), (NOK), (TSO), (XLF), (YHOO),  (ETFC), (EMC), (NVS); Najarian Owns (BKC); Najarian Owns (BHI) Calls, (BSC) Calls, (COP) Calls, (DD) Calls; Finerman Owns (GS); Finerman’s Firm Owns (JCP), (MSFT), (NOK), (PZN), (TSO), (VCLK), (VLO), (YHOO), (GE),  (NOK); Finerman’s Firm Owns (FNM) Calls; Finerman’s Firm Is Short (COF).

Looking at strength in energy with my coal plays from yesterday’s post and OIH plays. IMCL should do well today after the DNA Avastin failure. Watching and hawking the 4 horsemen and BIDU going into earnings. AAPl and AMZN is focused with a GOOG watch for continuing strength. Keep smart and watch for high probability setups and stay positive. Its a beautiful day. Great trading and good luck!