Wang’s Happy Trading

Submitted By Optiondragon

Breaking the Girl-Red Hot Chili Peppers

From briefing.com

Periodicals Wrap-Up for Tuesday, May 6th
WALL STREET JOURNAL: Three years into its $35B takeover of Nextel, the Wall Street Journal reported that Sprint Nextel (S) is considering selling or spinning off the troubled unit. Few details were available and a deal is not imminent…The Wall Street Journal also reported that pressure is mounting on Citigroup’s (C) CEO Vikram Pandit to show that he can turn around the troubled bank. Executives believe Pandit, who has been praised for his cautious and deliberate approach, has been taking “too long” to make crucial decisions…REUTERS: According to a person close to Google (GOOG), Reuters reported that it and Yahoo (YHOO) are still “hammering out the intricacies” of a potential advertising and search deal. The source said no final agreement has been reached yet…ABC NEWS: ABC News learned that if Rupert Murdoch does not testify in a lawsuit accusing one of his companies of “corporate espionage,” it may cost News Corporation (NWS.A) hundreds of millions of dollars, a federal judge overseeing the trial said. News Corp has denied any wrongdoing, and lawyers maintain Murdoch had no direct knowledge of the unit’s alleged hacking into EchoStar Corporation (SATS)/DISH Network’s (DISH) security code and posting it on the Internet…

Google and Yahoo haven’t finished negotiating a deal yet-Reuters
Google (GOOG) and Yahoo (YHOO) are still hammering out the details of a potential advertising and search deal, an inside source said. No final agreement has been reached yet, and the two sides are also sharing their plans for a potential deal with antitrust regulators, the source added.

Crude oil heading to $200?-Bloomberg
A Goldman Sachs Group (GS) report from analysts including Arjun N. Murti say the price of crude oil may climb to between $150 and $200 a barrel within two years as supply fails to keep up with demand from developing nations.
Oil prices likely to hit $150-$200/bbl in next 6-24 months@GSCO
Goldman raised its oil price forecast and said $150-$200/bbl oil is likely in the next 6-24 months due to lack of supply growth. . The firm raised its 2008 price estimates to $108/bbl from $96, 2009 to $110 from $105, 2010 to $120 from $110, and 2011 to $120 from $110. The analyst added that the ultimate peak in oil prices as well as the duration of the upcycle remains a major uncertainty.

Apple one network strategy may be unraveling - Times Online
Italy became the first country to sell Apple’s (AAPL) iPhone on a non-exclusive basis ending a year-long stretch in which only one operator had the right in each country. Vodafone (VOD) and Telecom Italia (TI) announced that they had both won contracts for the iPhone which means that Apple could face revolt in other countries against the existing one-carrier terms.

Blackrock will by sub-prime portolio from UBS - FT
Sources say that Blackrock (BLK) will pay UBS AG (UBS) $15B for a portfolio of subprime mortgage debt. The bank is expected to make the announcement when it reports today. This latest move fuels growing optimism about the credit markets followed by Goldman Sachs (GS) and other private equity firms buying mortgage assets.

Marvel Entertainment-MVL: Believe there will be better entry points@RBCM
RBC raised their target to $37 from $30 following the quarterly results and Iron Man release but believes there will be better entry points following Hulk’s June 13th release as they are no catalysts after that until 2010. Shares remain Sector Perform rated.

Sprint Nextel-S: Unlikely to sell iDEN business@LEHM
Lehman said it is unlikely Sprint will be able to sell its iDEN business given the complexity of the unwind. :

U.S equity futures still point to a lower open; Fannie Mae posts big loss
U.S. equity futures are still pointing to a lower open. The futures had been pointing to a relatively flat open until Fannie Mae (FNM) released its quarterly earnings report. The company posted a higher than expected loss, announced they would cut their dividend, and said they would raise $6B to shore up their balance sheet. Foreclosure filings surged 23% in the first quarter and were more than double last year. The company said that home price declines and rising foreclosures that started in the subprime market have spread to high quality loans that make up the bulk of their business. In other subprime news, UBS (UBS) posted an $11B loss and said they would cut 5,500 jobs. These results helped to drop the futures well below fair value.

Martin Marietta-MLM reports Q1 EPS 50c vs. consensus of 64c
Reports Q1 revenue $399M vs. consensus of $454M. Sees FY08 EPS $6.25-$7.00 vs. consensus of $6.37.

Agrium-AGU resumed with an Outperform from Sector Perform@RBCM
RBC resumed coverage of AGU and upgraded the stock to Outperform as they view shares as attractively valued at current levels. RBC raised their target to $115 from $67.

Louis Navellier’s Quantum Growth Update
Louis Navellier’s Quantum Growth Update is positive on ADBE, CMP, GLW, SOHU, and TEX; cautious on GTLS, GEOY, RICK, and SWIR.

PCLN: More cautious about results, maintain Market Weight@TWPT
Thomas Weisel is more cautious about Priceline.com’s ability to beat Q1 consensus estimates by a large margin. The firm is more cautious about the stock in general due to their expectation for higher marketing spending by the company and little visibility into its international business. The firm maintained their Market Weight rating.

NVDA: Expect in-line EPS for April quarter@JMPS
JMP Securities believes Nvdia is experiencing increasing pricing pressure in mid-range PC graphics. The firm believes that Street estimates for the company may have to fall 5%-10%, and they recommend waiting for a better entry point before buying the stock. They maintained their Market Perform rating.

JRCC reports Q1 EPS (78c) vs. consensus of (50c)
Reports Q1 revenue $138.2M vs. consensus of $140.48M.

Tesoro-TSO coverage resumed with an Underweight@JPMS
JP Morgan expects the West Coast margins to remain weak given the decline in the gasoline demand and capacity increases of the majors.

JOYG is recently trading down $2.84 to $75.80 in pre-open trading. JOYG lowered its forecast for 2008 earnings to $2.96 to $3.22 a shares from earlier views of $3.15 to $3.45 a share. JOYG kept revenue guidance at $3.1 billion to $3.3 billion. JOYG is a manufacturer and service provider of surface and underground mining equipment.
Let’s see how both BUCY and JOYG react to the lower view.

FNM is recently trading at $25.80 in pre-open trading, below its close of $28.29. FNM reported Q1 EPS ($2.57) verses consensus estimates of (81c). FNM announced plans to raise $6 billion through common and preferred offerings. OFHEO will reduce FNM’s capital requirement to 15% from 20%. FNM will reduce its 3Q dividend to 25c.

STP initiated with a Buy, target $64@JSLC
Jesup & Lamont initiated STP with a Buy based on the company’s leading position in solar PV, industry growth and polysilicon supply agreements in place.

CLF: Recommend accumulating shares on any weakness@DBAB
Deutsche Bank believes the company’s guidance for 2008 was upbeat and remains on track and reiterates a Buy rating with a $170 target.

SHLD: Continue to recommend investors avoid the shares@DBAB
Deutsche Bank left SHLD’s shareholder meeting with more questions than answers and believes the company does not have the systems or operational procedures to control its business in this difficult retailing environment. They maintain a Sell rating on the stock and lowered their target to $87 from $89.

PRGO reports Q3 EPS 47c vs. consensus of 42c
Reports Q3 revenue $504M vs. consensus of $451M.

SUN downgraded to Underweight from Neutral@JPMS
JP Morgan downgraded SUN citing expected margin pressure due to high leverage to sweet crude. Note that Goldman downgraded shares of SUN to Neutral from Buy.

AG upgraded to Buy from Neutral@GSCO
Note that the firm downgraded CNH to Neutral from Buy. AG target $71.

AZO initiated with an Outperform, target $155@BERN

HES upgraded to Buy from Neutral@GSCO
Goldman upgraded HES citing the company’s leverage to higher oil prices. The firm said oil is likely to hit $150-$200/bbl in the next 6-24 months. Note that SUN was downgraded to Neutral from Buy. Target $130.
Actionable call. Hawking.

AAPL Additional iPhone distribution is very positive for company@AMTR
After Vodafone (VOD) said it would offer iPhone in 10 of its markets this year and Telecom Italia (TI) said it would sell iPhone, Am Tech believes their forecast of 10M iPhone shipments for 2009 is very conservative, and they maintained their Buy rating on Apple. —Great News for AAPL

AMZN says jewelry store retail diamond sales up by more than 100%
Amazon.com, Inc. announced that retail diamond sales by Amazon.com LLC increased more than 100 percent in the first quarter of 2008. Each quarter, an increasing number of Amazon.com’s tens of millions of customers are shopping the Amazon.com Jewelry store and Watches store, especially for important gift-giving occasions such as Mother’s Day and graduation. :

Pre-Market Movers: Ahead of the Bell
In volume terms it is a relatively quiet session this morning without much in the way of a theme or trend as yet. As this was written Yahoo (YHOO) was the volume leader, trading up +2%. This continues a rise off lows in the low 20s yesterday following the withdrawal of the Microsoft bid for the company. Cantor Fitzgerald lowered their price target to $24. Fannie Mae (FNM) is trading down (-5.8%) after reporting a wider than expected loss in their earnings report this morning. Freddie Mac (FRE) is trading down (-4.66%) in sympathy. Washington Mutual (WM) is trading down (-1.96%) after it filed to sell 605M shares for holders. Hess Corp (HES) is on of the bright spots this morning, trading up +2.15% after it was upgraded to Buy at Goldman Sachs. Apple (AAPL) is trading up fractionally at +0.4% despite a note in Times Online suggesting the company’s decision to allow two carriers to market the iPhone in Italy may create trouble in others where only a single carrier has exclusive rights. Broadcom (BRCM) is trading down (-2%) on no specific news we can see. This may be in response to Cisco’s (CSCO) upcoming earnings report after the close today. Cisco Systems (CSCO) are trading down (-0.8%) ahead of results.

Fast Money position recap- First Moves-Jeff likes HAS, Guy likes BUD, Karen Likes VCLK, Pete likes T.
Macke Owns (MSFT), (DIS), (INTC), (HAS); Adami Owns (AGU), (NUE), (BTU), (C), (GS), (INTC), (MSFT); Najarian Owns (AAPL), (TSO), (XLF); Najarian Owns (C) Calls, (MSFT) Calls, (POT) Calls, (BUD) Calls; Najarian Owns (YHOO) And Is Short (YHOO) Calls; Finerman Owns (GS); Finerman’s Firm And Finerman Own (HD); Finerman’s Firm Owns (MSFT), (TSO), (VLO), (VCLK); Finerman’s Firm Owns (YHOO) And (YHOO) Call Spreads; Finerman’s Firm Owns S&P 500 Puts; Finerman’s Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM); Finerman’s Firm Is Short The British Pound; Finerman’s Firm And Finerman Own (C) And (C) Leaps; Finerman’s Firm Owns (FNM) Calls.

Watching the usuals and seeing how the XLF and brokers will take the news from FNM. Watching, RIG for earnings, HES upgrade, ANR, coals and energy, MT (hawking long), X and steels, AG (upgrade from GS and beaten down technicals).
Keep positive and focus on your goals. Pick plays with a high probability of success! Good Luck and Great Trading!