Wang’s Happy Trading

Submitted By Optiondragon

Johnny Cash- God’s Gonna Cut You Down

From Briefing.com

News Digest 4/23/2008 Reuters, WSJ, NYTimes, FT, Reuters from 24/7 Wallst.
According to Reuters, Yahoo! (YHOO) earnings met expectations. Microsoft (MSFT) indicated it would not raise its bid.

Reuters writes that the price of corn and rice moved up sharply.

Reuters reports that Tribune is closer to selling Newsday to News Corp (NWS).

Reuters writes that Ebay (EBAY) sued classified site Craigslist over dilution of the auction company’s interest.

Reters reports that the FCC once again attacked Comcast’s (CMCSA) web practices.

THe Wall Street Journal reports that the turnaround at Ford (F) is starting to take hold.

The Wall Street Journal writes that IBM (IBM) will offer multi-server computers.

The Wall Street Journal reports that the FDA is short of funds to support inspections.

The Wall Street Journal writes that Nintendo is counting on big sales from its new “Wii Fit”.

The Wall Street Journal will examine whether Amazon’s (AMZN) earnings show that its fight against Apple (AAPL) iTunes is making any progress.

The Wall Street Journal writes that Sony (SNE) delayed it PS3 virtual community.

The New York Times reports that UnitedHealth cut forecasts saying few businesses and people were signing up for insurance.

The New York Times reports that rising energy costs are cutting deeply into airline earnings.

The FT writes that US regulators fear a surge of bank failures.

The FT reports that oil again moved toward $120

Bloomberg writes that Toyota’s (TM) first quarter unit sales moved up 2.7% on strong sales in China.’

Asian Recap- Asia Markets 4/23/2008 (TM)(SNP)(PTR)
Markets in Asia were mixed.

The .2% to 13,579. NEC was up 2.7% to 482. Toyota (TM) was donw 1.7% to 5140.

The Hang Seng was up 1% to 25,197. China Petroleum (SNP) was up 3.3% to 8.11. PetroChina (PTR) was up 4.6% to 11.28.

The Shanghai Composite rose 4.2% to 3,278.

BUCY: Continue to view company’s growth prospects favorably@BARD
The recently proposed joint venture with Huainan Mining could accelerate BUCY’s penetration of the Chinese market as well as eventually producing various underground mining products for domestic use. Target $130 and Outperform rating maintained.

FCX reports Q1 EPS $2.64 vs. consensus of $2.12
Reports Q1 revenue $5.67B vs. consensus of $4.69B. :t
Great earnings from FCX should show strength today.

YHOO: See little increase in negotiating power, mantain Hold@STFG
After Yahoo reported stronger than expected Q1 results, Stanford does not believe the company’s results were strong enough to give it more negotiating power over Microsoft (MSFT). The firm believes Microsoft will likely launch a hostile bid, and they predict that the takeover could take a long time to complete.

POT upgraded to Buy from Hold@TDSI
TD Newcrest upgraded POT based on higher potash pricing outlook. Target to $280 from $215.

Allegheny Tech-ATI reports Q1 EPS $1.40 vs. consensus of $1.48
Reports Q1 revenue $1.34B vs. consensus of $1.3B.

Yahoo (YHOO) reported its quarterly numbers, and said its profit tripled, surpassing Wall Street’s revenue estimates. The company hopes that the better than expected report lends credence to the company’s contention that a turnaround is underway, and that a higher buyout price from Microsoft (MSFT) is justified. Microsoft has repeatedly said that it will not raise its offer, and is prepared to walk away.

Apple agrees to buy PA Semi-Forbes
A spokesperson from Apple (AAPL) has confirmed the company has agreed to buy PA Semi, a boutique microprocessor design company, a move that may indicate a new future for Apple’s iPhone and iPod devices. The spokesperson declined to comment on the purchase price, but a person familiar with the matter put the value around $278M in cash.

SU downgraded to Market Perform from Outperform@RAJA
ECA downgraded to Market Perform from Outperform@RAJA

STLD downgraded to Hold from Buy@SBSH
Citigroup downgraded STLD citing valuation. Target $40.

Pre-Market Movers: Ahead of the Bell from flyonthewall.com
Once again the pre-market session is broadly active as is likely to be the case for the next few weeks as we work through earnings season. Given the number of names moving we can only focus on a select group based largely on volume. The high volume mover this morning is EMC Corp (EMC) which is trading up +6.9% after an inline report but with positive guidance for the full year. The stellar results from VMware (VMW) last night are likely helping as well. Ericsson (ERIC) is trading up +1.5% on no specific news but much larger than normal pre-market volume. Sirtris Pharmaceuticals (SIRT) is trading up +81.8% after Glaxosmithkline (GSK) agreed to acquire the company for $22.50 per share. Eaton (ETN) is trading down (-1.22%) after it priced a 17.5M secondary at $84 per share. Schering-Plough (SGP) is trading up +6.53% after reporting better than expected results for Q1 this morning and announcing a 10% reduction in the workforce. Apple (AAPL) is trading up +1.7% ahead of the company’s earnings report after market close today. Yahoo (YHOO) is trading down (-1.3%) after reporting essentially inline last night after the close. Microsoft has suggested that they would not increase their $31 bid for the company. Broadcom (BRCM) is trading up +7.9% following earnings last night. Friedman Billings Ramsey urged buying shares and raised their price target to $36.

Fast Money position recap- First Moves- Karen likes MSFT before earnings. Guy likes AAPL into earnings. Pete likes EMC but not over $17. Jeff thinks YHOO is a sell. Macke Owns (YHOO), (MSFT), (INTC); Finerman Owns (GS); Finerman’s Firm Owns (DAI), (MSFT), (NYX), (TSO), (VLO), (YHOO); Finerman’s Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY),(COF); Najarian Owns (AAPL), (ENER), (NOK), (TSO), (XLF), (YHOO), (EMC); Najarian Owns (BHI) Calls, (DD) Calls, (MSFT) Calls, (POT) Calls, (CHK) Calls.

Watching the earnings plays this morning to see how it shakes out and watching for the trading ranges. Watching VMW (my strangle looks good), POT dip buying going into earnings tomorrow could be a great strangle play, DRYS, FCX and PCU, BUCY, 4 Horsemen plus BIDU esp AAPL and AMZN for earnings (pre run stochastic dip buying), and of course the hot sectors recently and corresponding sympathy plays. Watch the market tide stay focused and keep positive. Focus on your goals and blaze your own path. Great trading and Great Luck!