Wang’s Happy Trading

Submitted By Optiondragon

The Smashing Pumpkins - Thirty-Three

From briefing.com

Medial Digest 4/22/2008 Reuters, WSJ, NYTimes, FT, Reuters from 24/7 Wallst.
According to Reuters, earnings from Texas Instruments (TXN) disappointed investors and the company issued a weak forecast.

Reuters report that RBS (RBS) will raise $24 billion to help the bank which is likely to write-down $6 billion in assets.

Reuters writes that the net rose at Boston Scientific (BSX) due to cost cuts.

Reuters writes that Tribune plans to sell the huge newspaper Newsday to News Corp (NWS).

The Wall Street Journal writes that banks will have to raise more money to cover loan loss reserves.

The Wall Street Journal reports that Air France will drop its bid for Alitalia.

The Wall Street Journal writes that Saudi Arabia will begin pumping oil from the largest new field found since the 1970s.

The New York Times writes the the government has found tainted Herparin in 11 countries and it has caused 81 deaths in the US.

The New York Times writes that gas prices have hit $3.50 and will probably continue to rise.

The FT reports that OPEC supply concerns have pushed oil above $117.

Bloomberg writes that Warburg Pincus has raised $15 billion for its new fund.

Asian Recap- Asia Markets 4/22/2008 (CHL)(SNP)
Markets in Asia were mixed

The Nikkei fell 2% to 13,548. NIkon was off 3.8% to 2915 Nomura was down 3.9% to 1639.

The Hang Seng was off .1% to 24,704. China Mobile (CHL) was off 2.5% to 131.3.China Petroleum (SNP) was up 3% to 7.69.

The Shanghai Composite rose 1% to 3,148.

FSLR downgraded to Hold from Buy@CSTI
Collins Stewart downgraded shares on valuation as they believe the company’s strengths are priced into shares.

VRTX: Still predict that shares will rally@OPCO
After the company reported a higher than expected Q1 loss, Oppenheimer predicts that the stock will rally into and throughout 2H08, due to what they think will be multiple upcoming telaprevir-related catalysts. The firm maintained their Outperform rating.

Potash is a hot commodity, and so is Calgary’s Agrium-IBD
Agrium (AGU) is one of three Canadian companies that’s a part of Canpotex, a marketing group created by the country’s three biggest potash producers. Their target? China, which needs potash because its a mineral used for fertilizer, and which recently agreed to pay $576 a ton for a million tons, according to Investor’s Business Daily’s “The New America”. Demand is greater than supply. Agrium’s stock is trading near its all-time high. Ten days ago the company opened an office in Beijing. It also bought 70% of Common Market Fertilizers, which distributes throughout Western Europe, and is just one of nine buyouts it has made in the last decade. With its wholesale fertilizer business and retail stores, last year Agrium added a third division, Agrium Advanced Technologies. For the company, fourth quarter profit was up 396% from the year before to $1.24 a share, as sales jumped 59% to $1.43B. Profit for the entire year nearly quadrupled to $3.25 a share. Analysts now expect 2008 earnings to be up 82% to $5.90 a share.

GENZ: Stock could be down this morning, maintain Market Perform@OPCO
Oppenheimer predicts that the stock could be down significantly, following news that the FDA will require Genzyme to submit a separate BLA for Myozome produced at its 2,000L facility, delaying the launch until 1Q09 at the earliest. However, the firm thinks the pullback could create an interesting entry point for investors. :t

AAPL target raised to $170 from $160, maintain Buy@BOFA
Banc of America raised their Q2 estimate to $1.16 from $1.07 (consensus is $1.07) to reflect expected upside to PC unit following Asian channel checks and gross margins. However, they point out that near-term upside could be limited given the recent rally in shares.

AAPL: Target to $190 from $175 on Mac Momentum & iPhone upside@RBCM
RBC Capital expects AAPL to beat Q2 Street estimates given sustained Mac momentum and report conservative guidance. The firm’s Q2 estimates is $1.11/$7.2B vs. consensus of $1.06/$6.9B. The analyst expects Q2 Mac shipments of 2.2M and iPod shipments of 10M.

AAPL initiated with an Overweight, target $195@LEHM
Lehman initiated AAPL with an Overweight as they expect the company to benefit from continued Mac momentum, new iPhones and new products in 2H08.

AAPL: Expect slight upside to consensus estimates tomorrow@PIPR
Piper expects AAPL to report slight upside to consensus estimates of $1.07/$6.95B when it reports tomorrow and believes the Mac number will be the key. Piper thinks the results will be positive for shares despite the recent move. Shares remain Buy rated.

AAPL initiated with an Overweight, target $195@LEHM

BIDU: Target to $375 from $325, see modest upside to Q1@SUSQ
Susquehanna expects BIDU to report modest Q1 upside to guidance and Street estimates. The firm expects non-GAAP EPS of 69c and revenues of $78.4M.

Apples files for iPhone IM patent - AppleInsider
According to a USPTO filing, Apple (AAPL) has laid the groundwork for an instant messaging system for the iPhone that is similar to the existing SMS text messaging service that is currently offered.

NFLX removed from Alpha List, maintain Buy@PIPR
Piper maintains a Buy rating and $45 target following NFLX’s results but removed the stock from their Alpha List. They believe the company continues to gain market share and will benefit from the Blu-ray cycle; even with the lower than expected gross margin reported in Q1.

Chevron-CVX reinstated with a Buy, target $110@MLCO
ExxonMobil-XOM reinstated with a Buy, target $105@MLCO
Hess Corp-HES reinstated with a Buy, target $125@MLCO

CME reports Q1 EPS $4.67 ex-items vs. consensus of $4.81
Reports Q1 revenue $625M vs. consensus of $629.26M.

ECA reports Q1 EPS $1.39 vs. consensus of $1.28
HAL target raised to $58 from $52, reiterate Buy@JEFF
Jefferies believes the company’s outlook “remains excellent” following its Q1 results.

FCX: Estimates and target raised to $200 from $130@LEHM
Lehman raised FCX estimates following an increase in copper price forecasts. FCX is the firm’s Top Pick in the group.
This is the best call today IMO. Hawk this and PCU for action.

AK Steel-AKS c reports Q1 EPS 90c vs. consensus of 82c
Reports Q1 revenue $1.79B vs. consensus $1.78B.
Steel names came out with great earnings with STLD reporting last night so we could see some action in steel.

S&P 500-SPX: Pivot Points
The following are the pivot points for the S&P 500 (SPX). Pivot High: 1389.230, Pivot Low: 1378.460. These were calculated using the DeMark method. It is generally believed to be bullish when price breaks out above the pivot high or bearish when price breaks down below the pivot low.

Dow Jones Industrials Index-DJX: Pivot Points
The following are the pivot points for the Dow Jones Industrials Index (DJX). Pivot High: 12837.965, Pivot Low: 12738.225. These were calculated using the DeMark method. It is generally believed to be bullish when price breaks out above the pivot high or bearish when price breaks down below the pivot low.

Solar: Believe new Solar initiatives in Spain could be delayed@JEFF
Jefferies believes changes in key Spanish government positions dealing with solar incentives may result in further delays in the enactment of new solar incentives.

Trina Solar-TSL key suppliers sign investment agreements in China
Trina Solar Limited announced that five of its key suppliers have signed investment agreements to establish production facilities in the Changzhou Trina Photovoltaic Industrial Park. With the help of Trina Solar, these suppliers signed agreements today with the Changzhou National High Tech District in conjunction with Trina Solar’s 10th Anniversary celebration. “We welcome these suppliers to Changzhou and are very happy to assist Trina Solar in reaching its aggressive expansion goals,” said Vincent Dai, Vice-Director of the Administrative Committee.

Pre-Market Movers: Ahead of the Bell from flyonthewall.com
The pre-market session today is extremely active with a large number of issues moving in terms of price and volume. We will cover just the highlights today of stocks trading over $10 as a result. As we continue through earnings season over the next few weeks we can expect the early morning sessions to be far more active than is typical. The volume leader this morning is CIT Group (CIT) which is trading down (-13.1%) after it price a $1B secondary at $11 per share. The stock is trading just above that level this morning. UnitedHealth (UNH) is trading down (-12.7%) after it missed its Q1 EPS estimate and dramatically lowered its FY08 EPS (see note here for details). Texas Instruments (TXN) is trading down (-3.07%) after it reported an inline Q1 last night after the bell but also lowered the lower band of its Q2 outlook. Medco Health (MHS) is trading up +7.8% after it announced a Pharmacy Services agreement with UNH. The shares were upgraded at Citigroup and Jefferies & Company with the latter raising its price target on the shares to $65. BJ Services (BJS) is trading down (-12.8%) after it badly missed its Q2 numbers this morning and lowered its Q3 outlook well below consensus (see note here for details). Lexmark (LXK) is trading up +2.5% after it beat its Q1 EPS expectations by a wide margin. Moderating the upside is the widening of the lower band of Q2 EPS. Logitech (LOGI) is trading up +5.5% after it reported an inline Q4 EPS after the bell last night with a higher than expected revenue number.

IBM initiated with an Overweight, target $144@LEHM
Lehman views IBM as a defensive play and notes the company’s progress with its services business and views Street estimates as conservative.

Fast Money position update: First Moves: Macke likes HAS, Guy likes INTC, Pete likes BHI, Karen likes shorting the FXB.
Macke Owns (DIS), (YHOO), (MSFT), (HAS), (INTC); Najarian Owns (AAPL), (XLF), (YHOO), (UA) (NOK); Najarian Owns (BHI) Calls, (CHK) Calls, (MSFT) Calls, (RSH) Calls, (POT) Calls, (ICO) Calls; Finerman Owns (GS); Finerman’s Firm And Finerman Own (MSFT); Finerman’s Firm Owns (SUN), (TSO), (VLO), (WMT), (YHOO), (BJS); Finerman’s Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM); Finerman’s Firm Owns Shares Of Expro International Group PLC; Finerman’s Firm Is Short Pounds.

Look for IPI to IPO very soon. Looking at the steels but really hawking the miners today with FCX at the top of the list to see how it reacts to the big upgrade to $200. Watching sympathy plays and other great setups like PCU. Watching to see if TSL moves on the partnership agreement and if it has any impact on other solar shares although the percieved delay in Spanish subsidies could hold them back. Watching the market tides to see the action of today. Stay positive and focused on your goals. Keep disciplined and nimble. Stay focused and seek the zone. Great trading and great day!