Wang’s Happy Trading

Submitted By Optiondragon

Enigma - Return to innocence

From briefing.com

Periodicals Wrap-Up for Thursday, May 29th
WALL STREET JOURNAL: H.J. Heinz Co. (HNZ) is today expected to increase its sales and profit projections for the next two years, as it reports results of its fiscal year ended April 30. The Wall Street Journal reported that sales are to grow 6% or higher from 4%, while earnings per share growth for the next two years is projected to grow between 8% and 11% from the earlier projection of 7% to 9%…It appears that Vistaprint (VPRT), a graphic design services and printed products company, counts on referral fees from pop up rewards programs on it website for a certain amount of its revenue and profit and also relies on the referral of its customers to outside firms offering rewards programs, which turns out to be a monthly fee for services such as discounts on movies and amusement parks, according to the Wall Street Journal’s “Heard on the Street”. Some believe the stock, whose shares have plummeted over concerns of slowing revenue and slimmer gross margins, may be trading too high for its own good…FINANCIAL TIMES: According to people familiar with their plans, the Financial Times reported that the CEOs of UAL Corp’s (UAUA) United Airlines and US Airways (LCC) will today meet to discuss the carriers’ potential merger agreement…INDEPENDENT: The Independent reported that for the second time this month, Barclays (BCS) revised lower its calculation of analysts’ consensus for its full-year profit, cutting its 2008 figure by nearly 8% to GBP5.876B pre-tax; Barclays cut the calculation 15% two weeks ago…

Microsoft and Yahoo CEOs talk-WSJ
Talks between Microsoft (MSFT) and Yahoo (YHOO), and Google (GOOG) and Yahoo are continuing with no clear resolution as to whether Microsoft is interested in a search ad deal with Yahoo, or if it’s again interested in the entire company, reports the Wall Street Journal. Microsoft CEO Steve Ballmer and Yahoo CEO Jerry Yang golfed together over the weekend. Unclear is where Yahoo’s potential search ad deal with Google stands. Meanwhile, investor Carl Icahn wants Yahoo to go with the Google deal if Microsoft won’t buy the whole company.

UBS suffers “mass defection” from wealth management staff-UK Times
The UK Times reports that about two thirds of front office and support staff at UBS AG’s (UBS) wealth management business have left for rival companies. Sources say Vestra Wealth, a start-up partly financed by Goldman Sachs (GS), has taken 52 staff members, while other senior executives have moved to Credit Suisse (CS), Rothschild and Merrill Lynch (MER) over the past few days. UBS wealth management CEO John Pottage maintains that “only 20 client advisers” have left.

Oil exporters can’t meet demand, trend expected to continue-WSJ
Oil producers worldwide can’t meet demand no matter what the price, and that is expected to continue, reports the Wall Street Journal. The Department of Energy figures show that petroleum shipments declined by 2.5% in 20076 as prices jumped 57%. Among the reasons for the decline are increased demand for oil in Saudi Arabia and throughout the Middle East, meaning less is exported. Also, older fields and a lack of investment have hurt exports from Mexico, Norway and Russia. And OPEC cut production early in 2007 and didn’t restore supply until the fall. Says Lehman Brothers oil analyst Adam Robinson: “The sense in the market is that peak oil is here and that things will only get worse. But the verdict is still out on that.”

Apple watchers expect new, improved iPhone to be launched soon-NY Times
Apple (AAPL) sold just 1.7M iPhones in Q1, meaning it has to sell more than 8M phones during the rest of this year in order to meet its goal of selling 10M iPhones in 2008. Apple watchers believe the company will try to meet the challenge by introducing a new version of the iPhone on June 9, the opening day of its Worldwide Developers Conference. The company has promised that its new iPhone would run on a high-speed wireless data network, and there have been rumors that the phone will also include a higher-resolution camera and a GPS system that would allow new Web services tied to a person’s location.

Offshore driller Atwood Oceanics operates premium rigs-IBD
Offshore oil and gas drilling is a $38B market. Hardly the biggest of the drillers, Houston’s Atwood Oceanics (ATW) is known for premium rigs available to the highest bidder and for long term contracts. These days they get rates that are at historic highs to drill internationally, according to Investor’s Business Daily’s “The New America”. Omar Nokta, an analyst with Dahlman Rose, upped his forecast for average drilling rates by $50,000 a day, which means that the most expensive deep-water rigs could average of $600,000 over the next three years. Atwood earned $1.30 a share in the second quarter, a 29% increase from a year ago. Revenue was up 20% to $113.5M, the ninth straight quarter of a minimum double-digit earnings growth. Atwood remains conservative and doesn’t build rigs on spec no matter what the day rates. It’s a conservative company, and CFO James Holland remembers the downturn that struck drilling contractors in the 1980s and early 1990s.

MasterCard-MA 9am investor meeting 5/29 sponsor Co

Netflix-NFLX: Maintain Buy rating following analyst day@PIPR
Piper believes DVD will not disappear in next several years and that the company is well positioned to exceed estimates through the remainder of 2008.

SPWR volatility low; German Lawmakers consider tariff reductions
SPWR, a manufacturer of solar systems, is recently down $3.30 to $79.70 in pre-open trading. Calyon say’s “The German solar feed-in tariff (FIT) is underfire, as lawmakers are considering an accelerated digression that would reduce rates 25% by 2010 versus 15% under current law.” SPWR over all option implied volatility of 60 is below its 26-week average of 70 according to Track Data, suggesting decreasing risk. SPWR puts are priced higher than calls because SPWR is difficult to borrow.

SPWR downgraded to Sell from Neutral@MLCO
Merrill downgraded SPWR citing a potential reduction in German tariffs.

GOOG : Paid clicks in April appear solid, maintain Hold@STFG
Stanford notes that comScore reported that Google’s paid clicks rose 20% in April year-over-year, possibly indicating that the company’s ad relevancy initiative is starting to work. However, the firm is still concerned about flat sequential U.S. Internet ad growth, as well as slowing U.K. growth and upcoming seasonality.

XTO: Deal adds new growth source, maintain Buy@STFG
After XTO agreed to acquire Headington Oil Williston Properties for $1.9B, Stanford notes that the acquired properties are estimated to contain proven reserves of 68M barrels, or 3%-4% of XTO’s total energy reserves, and 3B barrels of total reserves. The firm raised their 2009 EBITDA estimate for the company to $6.7B from $6.4B. :

ELN July volatility Elevated into Phase 2 Data
ELN’s & WYE’s Bapineuzumab (Alzheimer’s treatment) Phase 2 trail results are expected in Q2. ELN June option implied volatility is at 75, July is at 96 and October is at 80; above its 26-week average of 66 according to Track Data, suggesting larger price movement.

GOOG: Target to $635 from $600, click data accelerates@SUSQ
Susquehanna said comScore April paid click data suggests an acceleration at GOOG. The firm expects paid click growth rates to continue to rebound in the US. Shares are Positive rated.

Internet: April paid click data positive for GOOG, negative for YHOO@JEFF
Jefferies believes comScore’s April data showed an “impressive” recovery in US paid-click growth for Google (GOOG), up 19.6% year over year vs. 2.7% in March. However, the firm points out Yahoo! (YHOO) and MSN (MSFT) paid clicks declined by 4.4% and 9.0%, respectively.

FSLR volatility at low end of range
FSLR closed at $273.18. Calyon say’s “The German solar feed-in tariff (FIT) is underfire, as lawmakers are considering an accelerated digression that would reduce rates 25% by 2010 versus 15% under current law.” FSLR July option implied volatility of 58 is below its 26-week average of 73 according to Track Data, suggesting decreasing price risks.

JOYG reports Q2 EPS 66c vs. consensus of 74c
Reports Q2 revenue $843.1M vs. consensus of $798.25M.
JOYG raises FY08 EPS view to $3.15-$3.30 vs. consensus of $3.28
Raises FY08 revenue view to $3.3B-$3.4B vs. consensus of $3.23B.
JOYG gapping up on raised guidance.

Fed Chrmn Bernanke on Liquidity Provisions 2:30pm in Basel, Switzerland 5/29

ESLR downgraded to Sell from Neutral@MLCO
Merrill downgraded ESLR citing a potential reduction in German tariffs.

SHLD reports Q1 EPS (53c) vs. consensus of 15c
Reports Q1 revenue $11.07B vs. consensus of $11.41B.
SHLD announces $500M stock repurchase program.
Another horrible quarter. The only one buying SHLD stock is the company it seems.

SNDA downgraded to Hold from Buy@SBSH
Citigroup downgraded shares following the company’s lower than expected guidance as they see a lack of positive catalysts. The firm lowered their target price to $35 from $36.

Jim Cramer’s “Mad Money”
Cramer says, “wind power is the cheapest form of renewable energy out there.” A longtime bull of the wind power business, Cramer cited a recent report stating that 30% of our nation’s energy could be derived by wind power by 2040. He reiterated past recommendations of both Trinity Industries (TRN) and Otter Tail (OTTR) as the best stocks to own. He said that Owens Corning (OC) has the best composite materials business for this high-stress application. Cramer identified Woodward Governor (WGOV), Thomas & Betts (TNB) and Kaydon (KDN) as the companies to own for turbines, bearings and the other components. Finally, Cramer said both MasTec (MTZ) and Thomas & Betts are the best companies for the wind power infrastructure. Cramer placed all 7 of these companies into what he called the “Mad Money Wind-ex,” his index of wind power stocks. He said with the American Wind Energy Association’s annual conference beginning in Houston next week, there should be a lot of buzz surrounding all of these names. Next, Cramer welcomed Timothy Wallace, chair/pres/CEO of Trinity Industries to discuss his company’s wind power business in depth. Cramer last recommended Trinity on April 24, and since then, the stock has climbed for a 36.7% gain. Wallace said that he is also very excited about his company’s wind power business. Trinity plans to open a new facility in Iowa in the next 6 months and should begin shipping products by Q1 of next year. According to Wallace, Trinity will remain aggressive in the wind power market, but overall, he sees the company as a strong, multi-industry business manufacturing everything from rail cars, to wind towers, to large propane tanks in its facilities. Cramer reiterated his buy on Trinity, stating that the company’s story just hasn’t been told yet. Cramer welcomed advertising guru and fellow CNBC host Donny Deutsch to the show to discuss his “new tech, old tech” thesis. Deutsch dismissed the notion of new tech vs. old tech and said what these new, innovative companies are really selling is the concept of saving humanity. SUDDEN DEATH: (Bullish) ROSE and MO. (Bearish) NVDA. LIGHTNING ROUND: (Bullish) CHD and SOLF. (Bearish) HEV; ATVI and STO.

U.S. equity futures continue to point to a quiet open; Jobless data released
The futures are still pointing to a relatively quiet open. New jobless data showed initial jobless claims were up 372,000 versus an expected 370,000, and the GDP report showed that GDP had been adjusted to 0.9% versus its original reported number of 0.6%. Investors will now turn their attention to the next economic report which will be the Help Wanted Index for April which is expected to show a reading of 19.

WLL target raised to $101 from $91, maintain Buy@CRTC
CRT Capital raised their target to reflect the company’s Bakken project and other probable reserves.

Fast Money Position recap- First Moves- Guy likes CELG, Karen likes WLP, Pete likes AMLN, Jeff thinks YHOO is a sell. Macke Owns (INTC), (WMT), (MSFT); Adami Owns (C), (GS), (INTC), (MSFT), (AGU), (NUE), (BTU); Najarian Owns (AAPL), (BHI), (BUD), (TSO), (XLF), (HPQ), (ANR), (ENER); Najariain Owns (EXPE) Calls; Najarian Owns (BAC) Puts; Finerman Owns (GS); Finerman’s Firm Owns (AAPL), (AEO), (MSFT), (RL), (SUN), (TSO), (VLO), (WLP); Finerman’s Firm Owns SPX Index Puts; Finerman’s Firm And Finerman Own (C) And (C) Leaps; Finerman’s Firm And Finerman Own (HD); Finerman’s Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY), (BBT).

Solars are gapping down due to the threat of reduction in German solar tariffs. The market has been stabilizing fairly well after the sell off. There have been pockets of strength in the market even though the general market has been lackluster. The financials are still weak. Finding, trading and staying in the areas of strength have proved profitable. My metallurgical coal plays have been outstanding and have been outperforming- ANR, WLT, FDG, CLF, MTL. Do I think it will continue in this space? Yes, the fundamentals are still there and met coal prices are still rising due to global supply constraints and higher demand. Oil inventories will be released today at 7:30 am PT and should move the energy plays as well as the market. Watching the financials, the 4 Horsemen (GOOG, AAPL, RIMM, AMZN), BIDU, FXI, tech, energy. Stay focused, be patient, focus on the positives and pick plays with a high probability of success. Run technicals through supply and demand (support and resistance zones, pivot lines). Good luck and Great trading.