Wang’s Happy Trading

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From Breifing.com

Periodicals Wrap-Up for Wednesday, May 14th
WALL STREET JOURNAL: According to people familiar with American International Group’s (AIG) board, some directors feel that another big loss in the current quarter could prompt them to re-evaluate their support for CEO Martin Sullivan. The sources said a decision on Sullivan’s fate isn’t likely to be made until the company sees results over the next several months, the Wall Street Journal reported…FINANCIAL TIMES: According to the Financial Times, Kohlberg Kravis Roberts, Blackstone (BX) and Apax Partners are among the private equity groups that have been blocked from bidding int he first round of the GBP7B auction of Royal Bank of Scotland’s (RBS) insurance business…SEATTLE TIMES: Boeing (BA) closed a helicopter production line for several hours yesterday due to possible irregularities found in two military helicopters, the Seattle Times reported. The company did not disclose exactly why it shut down the production of the H-47 Chinooks…MAC RUMORS: According to Mac Rumors, citing French LeMatin.ch, a source in Swisscom (SCMWY) said Switzerland will be getting the iPhone device from Apple (AAPL) this summer, and it will feature GPS, Video Conferencing and Mobile TV…

Research in Motion prepping two new Blackberry smartphones?-APC Magazine
There is buzz on the Street that Research in Motion (RIMM) is prepping two new BlackBerry smartphones, including the touchscreen “Thunder” and dual mode keyboard-plus-touchscreen “Storm”. At the Wireless Enterprise Symposium in Orlando, RIM�s Vice President of Product Marketing Mike McAndrew did not rule out a touchscreen BlackBerry, and denied assertions that some aspects of the BlackBerry Bold 900’s shape and design are very similar to the iPhone’s (AAPL).

New iPhone may be unveiled “in the coming weeks”-Guardian
After the announcement of O2’s Q1 results, Matthew Key, the chairman and CEO of Telefonica Europe (TEF) said the company is slated to make an announcement with Apple (AAPL) “in the coming weeks”. O2, Apple’s exclusive mobile partner in the UK and Ireland, and Apple could reveal the 3G iPhone at Apple’s Worldwide Developers’ Conference in San Francisco.

Australia Coal-Mine Floods Raise Costs of Cars, Planes, Washers
May 13 (Bloomberg) — At about 1 a.m. on Jan. 19, some of the heaviest rains in a century caused the Nogoa River in Queensland to burst its banks, sending 32 billion gallons of water into one of the largest coal mines in Australia.

“It was like watching Niagara Falls,” said Peter Westerhuis, 46, general manager of operations for the mine’s owner, Ensham Resources Pty. “It filled the whole pit up in five hours.”

Almost four months later, two of Ensham’s six coal mines, along with others owned by companies including Melbourne-based BHP Billiton Ltd., remain submerged. The greatest damage was in the Bowen Basin, the source of 40 percent of the world’s steelmaking coal. As production fell, the price of coking coal tripled to a record $300 a metric ton last month, raising costs for the steel that goes into automobiles, airplanes and washers.

“There are only a couple of key producing coking coal regions in the world and this is the key one,” said Mark Pervan, a commodity strategist with Australia and New Zealand Banking Group Ltd. in Melbourne. “Anytime you put that sort of supply under a question mark, it’s no surprise we have extremely high prices.”

The region’s coal production this year may decline by as much as 15 million tons, or about 12 percent of Australia’s annual exports, Macquarie Bank Ltd. analyst Jim Lennon said in a May 5 report. Meanwhile, global demand for steel will rise 6.7 percent this year, led by an 11.5 percent increase from China, according to the Brussels-based International Iron and Steel Institute.

`Huge Impact’

“When you look at it from a supply point of view, it is a huge impact,” said Gerard Burg, a minerals and energy economist at National Australia Bank Ltd. in Melbourne.

The rise in coal’s cost, combined with record contract iron ore prices of at least $79 a ton, will add $160, or 18 percent, to the average cost of producing a ton of the grade of steel used in cars and appliances this year, according to Lennon’s report.

In response, Asia’s leading steelmakers, including Japan’S Nippon Steel Corp., China’s Baoshan Iron & Steel Co., South Korea’s Hyundai Steel Co. and Posco, Asia’s third-biggest producer, all raised prices last month. Tokyo-based Nippon, the world’s second-largest steel producer, agreed last month to pay $300 a ton, a threefold increase, for coal from the Bowen Basin.

Effects in Europe

The effects of Australia’s flood also reached Europe. Luxembourg-based ArcelorMittal, the world’s largest steelmaker, said last month it would add a surcharge of $250 a ton on some fixed-price contract shipments.

The average price for hot rolled coil, a benchmark steel product, will rise by $311 to $904 a ton this year because of the increase in raw materials costs, according to Lennon’s report. Hot-rolled sheet steel used to make consumer products has already more than doubled in price in the past five years.

Toyota Motor Corp., Japan’s biggest automaker, raised prices for some models in North America this month because of the jump in steel costs. The retail price for the Prius hybrid car will increase by 1.8 percent to $21,500, and a Yaris sedan, by 1.6 percent to $12,425, Toyota said May 4.

Prices for coking coal may rise again next year because of the extent of the flooding damage in Australia. Coal supplies are “likely to remain extremely tight over the next 2-3 years,” and the price may increase to more than $350 a ton in 2009, Credit Suisse Group analysts said in an April 28 report.

Widespread Disruption

“You are talking months here, not weeks,” Ensham’s Westerhuis said, referring to his timetable for repairs. “This will be the biggest obstacle anybody has ever faced anywhere running a mine.”

Most of the 33 coal mines in the Bowen Basin lost production as a result of the floods, the Queensland Resources Council said.

Other companies with waterlogged mines include London-based Rio Tinto Group, the world’s third-largest mining company, which last month reported a 27 percent quarterly decline in coking coal output and said shipment delays would continue.

BHP-Mitsubishi Alliance, the world’s top exporter of coking coal, said output declined 25 percent in the quarter ended March 31. Limited coal production has resumed as repairs continue, the company said last month. BHP-Mitsubishi is a joint venture of BHP Billiton, the world’s biggest mining business, and Tokyo-based Mitsubishi Corp., Japan’s largest trading company.

Australians selling water removal equipment, on the other hand, are bullish.

“Business is fantastic,” said Dave Miller, 38, the owner of Total Water Management in the Queensland coastal town of Mackay whose pumps are bailing water from the biggest mines in the Bowen Basin.

The Ensham mine, owned by Japanese oil refiner Idemitsu Kosan Co., won’t be fully operational until early 2009 as it continues the cleanup, President Akihiko Tempo said in March.

About a third of the 32 billion gallons in the pits have so far been removed and deposited back into the Nogoa River.

“It might take a year to get 100 percent operation back at these affected pits,” Westerhuis said.

FRE Q1 beat due to difference in accounting methods@GSCO
Goldman said FRE’s Q1 beat was due to a difference in accounting methods and they reiterate their Sell rating.

U.S. equity futures are now pointing to a higher open. The Consumer Price Index for April was released and it showed an increase of 0.2% versus an expected increase of 0.3%. However, if you remove the volatile components of food and energy, the number came in at an increase of 0.1% versus an expected increase of 0.2%. Earlier this morning a private research firm released its real estate findings which stated that foreclosures surged 65% in April versus the same period a year ago, which contributed to a deepening slide in home values.

HMIN: Q1 results likely represent an inflection point@DBAB
Deutsche Bank thinks HMIN’s Q1 results will prove an inflection point for margins due to the volume of conversions underway. They think the company’s outlook is improving and find the risk/reward compelling. Shares remain Buy rated.

SOL announces six-year 525 MW solar wafer supply agreement
Under the terms of the agreement, ReneSola will supply Gintech Energy Corp with 525 MW of solar wafers over a six-year period commencing in mid-2008. Gintech is a leading manufacturer of solar cells and is publicly traded on the Taiwan Stock Exchange.
SOL sees 2008 revenue $570M-$590M vs. consensus of $533.78M
Previous guidance was for 2008 revenue $530M-$550M.

RIMM: Believe BlackBerry Bold is a winner@BOFA
Banc of America tested the device and thinks the platform is a significant improvement from current platform. They believe Bold will drive significant upgrades and new subs. Further, they expect RIMM to introduce a clamshell and touch screen device in Q3. They maintain a Buy rating and $160 target.

RRC coverage resumed with an Outperform, target $85@BMOC

Details of the BlackBerry Thunder-Boy Genius Report
The Boy Genius Report has learned the specifics of Research in Motion’s (RIMM) new touchscreen BlackBerry device. The BlackBerry “Thunder,” or BlackBerry 9500, is slated to launch in Q3 and is a full touchscreen BlackBerry with four keys and no slide out keyboard. Additionally, the device will launch as a “worldwide lifetime exclusive” on Verizon (VZ) and Vodafone (VOD). The device may also launch with a 4G solution.

EBAY removed as an Internet Top Pick@PIPR
Piper removed EBAY as an Internet Top Pick as they believe weakness in U.S. GMV will likely be a near-term overhang. They maintain a Buy rating on valuation, but lower their target to $38.

GNK downgraded to Neutral from Outperform@FBCO
Credit Suisse downgraded GNK based on valuation. Target to $80 from $70.

ICE merger approval in Europe is very positive@WBLR
William Blair believes the approval should help alleviate some concern regarding the company’s move to self-clearing. Shares remain Outperform rated.

DSX reports Q1 EPS 71c vs. consensus of 68c
Reports Q1 revenue $78.8M vs. consensus of $73.81M.

Recommend swapping out of gas producers to oil producers@LEHM
Lehman recommends rotating out of gas producers and into oil producers due to supply growth and valuation. The firm recommends APA, CNQ, NBL, and TLM and recommends natural gas investors swap into DVN. The firm also upgraded NXY to Overweight from Equal Weight.

CHINA: The CSI 300 Index advanced 124.09, or 3.2%, to 3,975.78. Commodities producers led the gainers on speculation that the country’s massive earthquake has disrupted the supply of metals, leading to price increases. Zhuzhou Smelter Group Co., jumped 10%, the daily limit. Chongqing Iron & Steel Co. was up 10%, the daily limit, after saying it was not affected by the earthquake. China said that its industrial production growth was less than expected, causing the yuan to decline on speculation the government will cap its gains to protect exporters…

MT reports Q1 sales up 22% to $29.8B
Reports Q1 shipments of 29.2M metric tonnes, EBITDA of $5B, net income of $2.4B and cash flow from operations of $2B.

Fast Money Position recap- First Moves- Guy likes AA, Karen likes GLNG, Pete likes CNX, Jeff likes DOG. Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Najarian Owns (AAPL), (AMAT), (ENER), (NOK), (TSO), (XLF); Najarian Owns (C) Calls, (MSFT) Calls, (YHOO) Calls, (AES) Calls; Macke Owns (WMT), (INTC), (DIS), (EMC), (ATVI), (MSFT), (HAS); Finerman Owns (GS); Finerman’s Firm Owns (KSS), (MSFT), (TSO), (VLO), (GLNG); Finerman’s Firm Owns (YHOO) Call Spreads; Finerman’s Firm Owns SPX Index Puts; Finerman’s Firm Owns (C) And (C) Leaps; Finerman’s Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY).

The market reacted positively to the CPI report. We have oil inventories at 7:30 am PT, we will be watching the energy sector’s reaction to the report. Watching the shippers , solars and coal plays today. Keeping an eye on the tech leaders and 4 Horsemen +BIDU, XLF and the brokers. DRYS, CNX, ACI, ANR, SOL, BTU, APA, SOHU, RIG, FSLR, DSX, MT and steel plays (X, SCHN, NUE, AKS, MTL).
Stay focused, pick plays with a high probability of success, and run technicals through support and resistance levels. Good Luck and great trading!