Wang’s Happy Trading

Submitted by optiondragon

The Killers - When You Were Young

From briefing.com

Media Digest 4/28/2008 Reuters, WSJ, NYTimes, FT, Bloomberg from 24/7 Wallst.
According to Reuters, oil price moved toward $120 on fear for supply interruptions.

Reuters writes that Chrysler is trying to sell two of its North American plants.

Reuters reports that many Wall St. analysts believe that Microsoft (MSFT) will launch a hostile bid for Yahoo! (YHOO).

Reuters writes that Continental (CAL) will not merge with United (UAUA).

Reuters writest that the Fed will probably cut rates but pause from any further reductions.

Reuters reports that Qantas will raise fare due to higher fuel prices.

The Wall Street Journal writes that Berkshire Hathaway (BRK) and Mars are near at $22 billion to wuy Wrigley (WWY).

The Wall Street Journal reports that China may begin to launch satellite for foreign countries.

The Wall Street Journal reports that AMD (AMD) is making a push for getting more small business customers.

The Wall Street Journal writes that profits at China Life (CHL) fell 61%.

The Wall Street Journal writes that Big Oil should report huge profits this week.

The New York Times writes that Google (GOOG) is releasing new software for better image recognition.

The FT writes that investors are pulling huge finds out of large mutual funds.

ISRG: Recent pullback is a buying opportunity@JMPS
JMP Securities believes Intuitive’s valuation indicates some concern about the company’s ability to meet its guidance, but the firm thinks Intuitive is well-positioned to exceed its sales guidance. The firm maintained their Outperform rating.

Visa (V) quiet period has ended and the analysts are out before earnings with their price targets and comments.
V initiated with a Buy, target $88@UBSW
UBS is positive on Visa as they believe secular growth story of “paper to plastic” shows no sign of a slowdown
V initiated with a Neutral@PIPR
While Piper believes that Visa should generate long-term earnings growth and free cash flow, the firm thinks that Visa’s valuation has increased the risk that strong earnings growth may not meet investors’ expectations. However, the firm believes that Visa can still post strong results despite the U.S. consumer slowdown.
V initiated with an Overweight@JPMS
JP Morgan is positive on Visa’s growth and highlights exposure to faster overseas markets.
V initiated with an Equal Weight, target $75@MSCO
V initiated with an Overweight, target $85@HSBC
V initiated with a Buy, target $90@GSCO
V initiated with an Outperform, target $80@RBCM
RBC initiated Visa with an Outperform based on margin expansion opportunities, the secular growth story towards electronic payments, lack of credit risk, and international opportunities.
V initiated with a Neutral, target $70@FBCO
V initiated with a Buy@RHCO
V initiated with an Add, target $82@LYON
V initiated with an In Line@FPKI
V initiated with an Outperform@WCHV
Wachovia views Visa as the best way to play the globalization of formalized payments.

NFX target to $73 from $70 on Woodford Shale performance@LYON
Calyon raised NFX estimates on improved Woodford Shale performance.

POT Estimates raised but valuation full, reiterate Hold@SOLE
Soleil views POT’s valuation as full and maintains their $213 price target.

Research in Motion looks to fend off iPhone-NY Times
The New York Times reports that Research in Motion (RIMM) may have some difficulty dominating the smartphone market’s next phase, especially when it’s competing against Apple’s (AAPL) “wonder gadget,” the iPhone. Currently, RIM is the leader in North America for building smartphones such as its BlackBerry device, but now, the market has begun to shift toward consumers. RIM also faces challenges, including a decreased market share in the North American market, but is expected to announce in May a 3G phone, which has the code name “Meteor”.

POT removed from Conviction Buy List; maintain Buy@GSCO

Range Resources-RRC raises FY08 CapEx by $200M to $1.27B
Range Resources announced that its Board of Directors has approved an increase in the 2008 capital expenditure budget by $200 million to $1.27 billion. The capital budget increase is primarily associated with expanding the Company’s leasehold position in the Marcellus Shale play in Appalachia. In addition, the Company increased its 2008 production growth target from 15% to 19%.

Weekly additions to the Investors Business Daily-100
The following are additions to the Investors Business Daily 100 list for the week of April 25: W S I Industries (WSCI), Occidental Petroleum (OXY), Apple Inc. (AAPL), Gardner Denver Inc. (GDI), Arch Coal Inc. (ACI), A B B Ltd. (ABB), Celanese Corp (CE), China Mobile Ltd (CHL), Cash America Intl. (CSH), Gorman-Rupp Co. (GRC) , Axsys Technologies Inc. (AXYS), Hess Corp. (HES), Exspriss Scripts Inc. (ESRX), Woodward Governor Co. (WGOV), Ritchie Bros. Auctioneers (RBA), Open Text Corp (OTEX), Rofin-Sinar Tech (RSTI).

Weekly subtractions from the Investor’s Business Daily-100
The following are subtractions from the Investor’s Business Daily-100 list for the week of April 25: Foster L B Company (FSTR), Comp Vale D0 Rio (RIO), Coca Cola HBC SA (CCH), Core Laboratories NV (CLB), Amtrust Financial Services (AFSI), Geif Inc. CL A (GEF), Western Digital (WDC), Smith International (SII), Hornbeck Offshore (HOS), Chipotle Mexican Grill A (CMG), Vimpel Communications (VIP), Rowan Companies (RDC), Memc Electronic Materials (WFR), Columbus McKinnon Cor (CMCO), Energen Corp (EGN), Power Integrations (POWI), Covanta Holding (CVA).

SOHU: Better quarter has positive read through for PWRD and SNDA@PACS
PacCrest says SOHU’s EPS beat for Q1 results would have been even better if the company had a lower tax rate in the quarter. PacCrest says their SOHU estimates are likely to go up on conservative guidance. They believe this has a positive read-through for the Chinese Game companies Perfect World (PWRD) and Shanda Interactive (SNDA).

Pre-Market Movers: Ahead of the Bell from flyonthewall.com
The session is marked by positive sentiment from merger and acquisition activity as well as earnings results. Volume is concentrated so far in the merger names with broader pre-market volume lower than average. Ford (F) is the volume leader so far this morning, trading up +7.46% after news that Kerkorian’s Tracinda will make a tender offer for an additional 20M shares of the company at $8.50, a +5.85% premium to the current pre-market price. Sohu.com (SOHU) is up +14.1% following much better than expected Q1 results and very positive Q2 guidance that is 63% above consensus. Wrigley (WWY) which reports earnings today is up +27.86% after the WSJ reported that Berkshire Hathaway and Mars were close to a pact that would offer $22B for the company. Shares are at an all time high as a result. Verizon (VZ) is trading up +2.18% despite coming in light on earnings reported this morning (missed by a penny). Hershey Foods (HSY) is trading up +5.06% in sympathy with WWY. Lihir Gold Ltd (LIHR) jumped to the most active list as this was written with the shares down (-1.0%) on no specific news. The company is in the process of merging with Equigold NL.

SOHU reports Q1 EPS 64c vs. consensus of 37c
Reports Q1 revenue $84.8M vs. consensus of $69.33M.
SOHU sees Q2 EPS 72c-75c vs. consensus of 44c
Sees Q2 revenue $93M-$96M vs. consensus of $77.43M.
Going to watch SOHU and SINA for response to excellent numbers.

Fast Money position recap- Macke Owns (INTC), (MSFT), (DIS), (ATVI), (HAS); Najarian Owns (AAPL), (TSO), (XLF), (YHOO); Najarian Owns (CHK) Calls, (MSFT) Calls, (POT) Calls; Finerman Owns (GS); Finerman’s Firm And Finerman Own (FLS); Finerman’s Firm Owns (MO), (GE), (MSFT), (PM), (SUN), (TSO), (VLO); Finerman’s Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY); Finerman’s Firm And Finerman Own (KALU); Finerman’s Firm Owns (YHOO) Call Spreads.

Going to keep an eye on the brokers today, 4 Horsemen plus BIDU, ICE, MA, and V for pre earnings moves, SOHU, SINA and chinese tech names, ANR, CNX, MEE, coals, CMI, OXY. Going to see how the market reacts to $120 oil today and of course the energy names. Be nimble, stay patient, focus on your goals and focus on positives. Seek plays with a high probability of success, look for great setups. Good Luck and great trading.