Wang’s Happy Trading

Submitted by Optiondragon

I Turn My Camera On- Spoon

From Briefing.com

Periodicals Wrap-Up for Friday, May 9th
WALL STREET JOURNAL: Harris Corp (HRS), concerned about its future growth, may see limited opportunity and may consider selling itself, the Wall Street Journal reported. If it does decide to sell, suitors could include Raytheon (RTN), BAE Systems (BAESY) and Northrop Grumman (NOC)…The Wall Street Journal reported that, in an attempt to toughen its regulation standards, SEC chairman Christopher Cox said earlier this week the agency would push Wall Street investment houses will have to reduce borrowing and rely less on short-term financing…FINANCIAL TIMES: As part of plans to reduce costs and restore profit growth, people close to the situation said that Citigroup (C) is likely to today identify up to $400B in non-core assets that could be sold. Additionally, the Financial Times reported that Citigroup CEO Vikram Pandit will confirm his pledge to cut the bank’s cost base by about 20% at a meeting with analysts today. Sources familiar with the matter believe Pandit will dismiss calls for a break-up of the company…NEW YORK POST: According to sources, the New York Post reported that the ax may fall as early as next week on some investment bankers at Bear Stearns (BSC)…

PCLN reports Q1 EPS 76c vs. consensus of 60c
PCLN reports Q1 revenue of $403.2M vs. consensus of $377.2M. Expects Q2 EPS $1.25-$1.40 vs. consensus of $1.30. Sees FY08 EPS $5.25-$5.65 vs. consensus of $5.12.

PCLN target raised to $155 from $125, reiterate Buy@BOFA
Banc of America raised their estimates and target after the company’s beat and raise quarter and continues to believe PCLN should continue to outperform as it penetrates the growing international online travel market and captures domestic share.
PCLN target raised to $161 from $137, maintain Hold@SBSH
Citigroup raised their target following the March quarter upside but maintains a Hold rating waiting for a better entry point.
PCLN target raised to $175 after strong Q1 results@PIPR
PCLN remains Piper’s Top eCommerce Pick.

TBSI reports Q1 EPS $1.62 vs. consensus of $1.19
Reports Q1 revenue $131.57M vs. consensus $84.18M

CNQ reports Q1 EPS $1.35 vs. consensus of $1.18
Reports Q1 revenue $3.96B vs. consensus of $2.46B.
Actionable.

AIG reports Q1 EPS ($1.41) vs. consensus of (76c)
AIG also announced a plan to raise approximately $12.5B in capital to fortify its balance sheet and provide increased financial flexibility. (Q1 EPS includes a pre-tax charge of approximately $9.11B for a net unrealized market valuation loss related to the AIG Financial Products Corp. super senior credit default swap portfolio

LEAP reports Q1 EPS (27c) vs. consensus of (2c)
Reports Q1 revenue $468.4m vs. consensus $459.49M
Actionable.

ATW reports Q2 EPS $1.30 vs. consensus of $1.15
Reports Q2 revenue $113.53M vs. consensus of $109M.
Actionable.

OII: solid growth story and attractive valuation - Barron’s Online
Oceaneering Int’l (OII) should benefit from the rise of underwater oil and natural-gas exploration. It has carved itself a rather lucrative niche. OII is the leading provider of remotely operated vehicles (ROVs) to support underwater drilling activity. OII also supplies “umbilicals,” tubular structures that let floating drilling rigs supply power, communications, chemicals and other support needed at the well sites on the seafloor. Over the past 2 years, OII has widely outperformed the oil-field services group, due to strong growth and their market leading position in these service areas. Day rates for the ROVs have been climbing with the rising number of offshore projects. Its customer base include Exxon Mobil (XOM), and Brazil’s Petrobras (PBR), as well as specialty exploration-and-production firms. But since October, the stock has lost 20% of its value. Delayed underwater projects, due in part to weather conditions in the Gulf of Mexico and the North Sea, have in turn delayed customers from signing contracts for umbilicals with OII. Also, investors have been chasing after hot natural-gas plays, according to RBC Capital Markets. Evan Smith, co-manager of U.S. Global Investors’ Global Resources Fund, says that with the $300B expected to be poured into offshore E&P over the next several years, “the market opportunity continues to grow and OII is the leader in their industry.” He expects a slew of upcoming contracts for umbilicals and an increase in related manufacturing activity at the company’s plants to propel the stock to previous highs and hopefully hit new highs. OII shares trading 17.6x estimates for the next four quarters, is cheaper than when Barron’s Online first wrote about the company, then at 19x, more than 2 years ago.

RIMM estimates raised for FY10 and beyond@JPMS
JP Morgan believes the Blackberry upgrade cycle is driving faster unit shipment growth than they previously anticipated and that RIMM will win 2.5% share of the global handset market in 2009. As such, the firm raised their unit shipment forecast for FY10 to 33.6M and for FY11 to 43.5M. Their FY10 EPS estimate goes to $5.09 from $4.90. JP Morgan reiterates an Overweight rating on the stock.

SNCR: Expect shares to recover near-term@GSCO
Following a management meeting, Goldman said it believes the low end of guidance factors in iPhone revenue expectations that are close to zero should the activation process shift away from the current on-line model. The firm does not believe AAPL will allow this change and that trends outside the iPhone remain robust. Shares are Buy rated. Target $19.

Strong demand benefits U.S. Steel-IBD
These days three steel companies account for 70% of production. With demand–and prices–high, U.S. Steel (X) is one of the biggest beneficiaries, according to Investor’s Business Daily’s “The New America”. The company gets half of its prices from the spot market and the other half from contracts. It manufactures flat-rolled and tubular steel products for the auto, container, construction and appliance sectors, and operates through flat-rolled products, U.S. Steel Europe and the tubular products segments. It also has its own supplies of iron ore and coke, two key ingredients needed to make steel products. “That gives it a cost advantage over other domestic producers that buy from third parties,” says Bob Richard at Longbow Research. In the first quarter, U.S. Steel’s earnings actually missed expectations, mostly because of outages at its Canadian plants. Profit fell 24% to $1.77 a share ex items, analysts expected $1.81, but revenue climbed 38% to $5.2B. CEO, John Surma is unfazed: “We anticipate that our second-quarter flat-rolled average realized price will track the sharp increase in spot market pricing, affecting about 50% of the company’s shipments.” He expects income from operations to increase “substantially in the second quarter. “I have never seen a company use the word ’substantially,’ so clearly they see a dramatic improvement in the second quarter,” says Mark Parr at KeyBanc Capital Markets.

C to ‘Get Fit’ by reducing legacy assets, focus on returns
Citigroup said in order to create value they will Get Fit (reduce legacy assets, focus on returns, increase asset productivity, manage risk and re-engineer cost base), Restructure Citi (clear goals, strategy and structure, get the right business mode, and have transparency and accountability) and to Maximize Citi (fully leverage the model, performance based culture, focus on talent, innovation and creativity and harness information advantage).

NVDA upgraded to Buy from Sell@STFL
Stifel upgraded NVDA as they believe downside risk is limited and is outweighed by the potential for an improving outlook for the company’s earnings ability. Target $26.

ATVI upgraded to Buy from Hold@KBRO
Kaufman Bros. upgraded shares as they believe the company’s guidance argues for a richer post-deal valuation and there is a long trade into the merger with Videndi. Target raised to $34 from $27.50

First Solar-FSLR initiated with a Buy, target $450@SBSH
Citigroup believes FSLR’s 2-3 year lead on the competition and the power of the model should become more apparent as the company ramps the new Malaysia facility in the first half of 2008.

TRLG reports Q1 EPS 29c vs. consensus of 26c
Reports Q1 revenue $53.4M vs. consensus of $46.12M. Sees FY08 EPS $1.52-$1.56 up from prior $1.48-$1.52 vs. consensus of $1.51. Sees FY08 revenue $220M-$225M up from prior $210M-$215M vs. consensus of $214.24M.
Actionable. I had this name into earnings.
Brean Murray upgrade to buy and price target raised to $29 from $24.

MYL: Guidance now appears achievable@GSCO
Goldman said MYL’s updated guidance now appears achievable albeit it is lower than expected. The firm said it is important to note that guidance excludes DEY, removing an overhang from future dilution created from the sale. The firm rates shares a Buy.

URBN: Recommend following Q1 sales@COWN
Cowen raised Q1 EPS estimate following solid Q1 sales and believes inventory is well managed to support continued solid business trends. Shares are Outperform rated.

Energy Conversion-ENER downgraded to Neutral from Buy@BPSG
Broadpoint downgraded shares on valuation.

Apple job listsing may point to multi-carrier iPhone - AppleInsider
Apple’s (AAPL) new job opportunities signals a multi-carrier strategy in Australia, Brazil, and Mexico following the America Movil (AMX) and Vodafone (VOD) international deals.

DRQ reports Q1 EPS 62c vs. consensus of 69c
Reports Q1 revenue $132.4M vs. consensus of $136.11M.

NOV target raised to $92 from $87, reiterate Buy@SBSH
Citigroup raised their estimates to reflect the accretive Grant Prideco acquisition.

BID reports Q1 EPS (9c) vs. consensus of 10c
Reports Q1 revenue $129.3M vs. consensus of $141.41M.

VLO removed from Conviction Buy List; maintain Buy@GSCO

SunPower-SPWR initiated with a Hold, target $105@SBSH
Citigroup believes SPWR is faced with high cell production costs its silicon cost and installation cost advantages are increasingly commoditized and finds the risk/reward even at current levels.

HES upgraded to Equal Weight from Underweight@LEHM
Lehman upgraded HES based on valuation.
Actionable.

CRZO upgraded to Add from Neutral@SOCO
Capital One Southcoast upgraded CRZO following the Q1 report. Target $74.

Fast Money Position recap- First Moves- Guy Likes CSCO, Karen Llikes JPM, Pete like NKE, Jeff says take profits on ATVI. Adami Owns (C), (GS), (INTC), (MSFT), (BTU), (AGU), (NUE); Najarian Owns (AAPL), (ENER), (TSO), (XLF), (BKC); Najarian Owns (AA) Calls, (EK) Calls, (MSFT) Calls, (BID) Calls, (YHOO) Calls, (C) Calls, Najarian Owns (BUD) Calls; Macke Owns (MSFT), (INTC), (ATVI); Finerman Owns (GS); Finerman’s Firm And Finerman Owns (C) And (C) Leaps; Finerman’s Firm And Finerman Own (HD), (KALU); Finerman’s Firm Owns (YHOO) And (YHOO) Call Spreads; Finerman’s Firm Owns SPX Index Puts; Finerman’s Firm Owns (AEO), (MSFT), (NYX), (PLCE), (TSO), (VLO); Finerman’s Firm Is Short (IYR), (MDY), (IWM), (SPY), (IJR).

Watching the financials (brokers -GS, JPM, LEH, MER and XLF) for reaction and follow through on the AIG news.
Watching the energy stocks- NG, Oil, Coal, solar, OIH plays. The 4 Horsemen, UUP and currencies, TLT.
PCLN, CNQ, NOV, TRLG, HES, TBSI, ATW, FXI weakness. Keep focused, have patience and pick plays with a high probability success. Seek the zone and remember to run technicals through supply and demand (resistance and support). Buy oscillator dips on objective pivot point support levels, reverse for shorts. Good Luck and great trading.