Wang’s Happy Trading

Submitted By Optiondragon

Smashing Pumpkins - 1979

From Briefing.com

Periodicals Wrap-Up for Friday, June 6th
WALL STREET JOURNAL: The banking unit of National City Corp. (NCC) recently entered into a “memorandum of understanding” with federal regulators, the Wall Street Journal reported. The banking unit has bad loans, and the agreement basically means that the bank is on probation, as the government pressures financial institutions…The Wall Street Journal also reported that Justice Department criminal prosecutors and its U.S. attorney’s office in Brooklyn, NY are investigating American International Group (AIG) to see if they overstated the value of contracts tied to subprime mortgages…NEW YORK POST: Lehman Brothers (LEH) is thinking of releasing its Q2 results a week earlier than planned, and announcing a capital raising plan at the same time, according to the New York Post, in order to reduce negative speculation about its future…ECONOMIC TIMES: The Economic Times reported that Indian auto companies Tata Motors (TTM) and Mahindra and Mahindra may be interested in acquiring Hummer from General Motors (GM)…

Lehman may release earnings early, announce capital raising plan-NY Post
Lehman Brothers (LEH) is thinking of releasing its Q2 results a week earlier than planned, and announcing a capital raising plan at the same time, in order to reduce negative speculation about its future. The investment bank was planning to announce its results during the week of June 16, but negative sentiment from a large number of short-sellers has led Lehman to consider releasing the results sooner. Along with its earnings, Lehman will announce a plan to raise capital through a share offering in a process known as a “rights offering,” a source said.

SEC investigating AIG over value of contracts related to subprime mortgages-WSJ
Justice Department criminal prosecutors and its U.S. attorney’s office in Brooklyn, NY are investigating American International Group (AIG) to see if they overstated the value of contracts tied to subprime mortgages, reports the Wall Street Journal.

China Architectural Eng. -Business booming in and out of China - Business Week
China Architectural Engineering which has traded on the American Stock Exchange as RCH but will move on June 9 to the Nasdaq with a new symbol of CAEI, has seen its business booming designing wall and roofing systems for government and commercial projects in China. CAEI is also busy outside China: 45% of its revenues come from Australia, Dubai, Qatar, the U.S., and European countries. Michael Cox of Piper Jaffray, who rates it a buy with a $13 target, says CAEI’s growth will stretch way beyond the Olympic Games because of robust orders in foreign markets. Buzz Heidtke of MidSouth Investor Fund, which owns shares, says CAEI’s order backlog of over $100M bodes well for its future.

Photo may indicate that Apple is sending out 3G iPhones-MacTalk
MacTalk displayed a photo of a package mailed to Australia with the Apple (AAPL) logo and the text, “Do Not Open Until June 10th, 2008″ on the outside of the package. There have been rumors that Apple will launch its 3G iPhone during its Worldwide Developers Conference, which begins on June 9. MacTalk reports that one of its “very reliable” sources believes the package contains the 3G iPhone. There have been rumors that resellers across Australia have received similar packages.

NYSE Euronext cuts trading fees by up to 30%-Independent
In an effort to repel competition from rival markets, NYSE Euronext (NYX) announced that at the beginning of July it would cut fees by up to 30% in the “high-frequency” computerized trading. NYSE is competing in Europe against Deutsche Borse and the London Stock Exchange. Others, including Turquoise, BATS Trading and Nasdaq OMX, which will launch alternative venues in Europe, will begin trading in September.

Investors say $65 per share offer for Anheuser would be reasonable-Reuters
Shareholders of Anheuser-Busch (BUD) said a $65 per share offer by Belgium’s InBev NV would “be reasonable,” and that a takeover is likely to boost Anheuser’s growth, add marketing leverage and distribution strength. A source familiar with the matter told Reuters that Anheuser has hired financial advisors in anticipation of a bid. InBev has reportedly been considering the $65 per share offer and has been looking to arrange a $50B funding package from banks.

Coal: ACI, BTU, and MEE upgraded to Buy from Hold@MLCO
Merrill upgraded ACI, BTU, and MEE citing higher coal prices.

WGOV: Look to buy sharse in the low-to-mid-$30s@BARD
BARD is incrementally bullish on the shares after attending a wind energy trade show. The firm raised their FY09 EPS estimate and their wind energy-related sales assumptions for FY09, as WGOV’s products seem to be well-positioned. Increased target to $42 from $40 and maintain Neutral rating.

EBAY: Remain on sidelines until momentum seem in core buisness@PACS
PacCrest says that while listings are up across all the major markets, most of the upside is due to aggressive promotional activity. As a result, PacCrest believes there could be risk to their Q2 Marketplace revenue estimate of $1.23M. They maintain a Sector Perform rating.

U.S. May payrolls fall 49,000; unemployment rate at 5.5%-Bloomberg
U.S. equity futures continue to point to a lower open; Unemployment rate at 5.5%
The futures are now pointing to a lower open after the release of the monthly jobs data. The much anticipated report showed that the economy lost -49,000 non-farm jobs versus an expected loss of -60,000, and it lost -26,000 jobs in the manufacturing sector versus an expected loss of -40,000. The unemployment rate jumped to 5.5% versus an expected rate of 5.1%. The futures reaction was an immediate weakening, pointing to a lower open.

NSM: Impressive results, but prefer ISIL, MXIM and MPWR@PACS
PacCrest says margin expansion was driven by cost savings coming in ahead of expectations. While impressed with NSM’s Q4 results, they prefer ISIL, MXIM and MPWR as better analog plays.

QCOM target raised to $60 from $50, reiterate Buy@THNK
ThinkPanmure still favors Qualcomm in the handset sector, as the firm’s checks give them increased confidence in the company’s guidance and prospects. The firm raised their target to account for their greater confidence as well as the current valuation being given to Qualcomm.

National Semi-NSM target raised to $30 from $22, maintain Outperform@JMPS
JMP Securities raised their target after the company reported significantly stronger than expected results for its Q4. The firm believes the company will continue to grow in 2H08, as a result of its success in high-end analog and power management products, as well as newer areas including industrial and communications.

E&P Group: Oil and Natural Gas forecasts raised@LEHM
Lehman raised its FY08 oil price estimate to $113/bbl and FY09 to $90/bbl and also its FY08 natural gas price forecast to $9.00/MMBtu from $8.75. The firm’s FY09 natural gas price forecast is unchanged at $8.00/MMBtu. As a result, the analyst raised E&P estimates and price targets on the following Overweight rated names: APC target to $89 from $85, APC to $152 from $144, CNQ to $47 from $44, DVN to $135 from $128, EOG to $140 from $136, NBL to $110 from $103, NXY to $47 from $44, TLM to $28 from $25, and XTO to $68 from $66.

AKNS: Reiterate Buy and $12 target after field checks@KBRO
Kaufman Bros. believes AKNS has the top market share of residential solar installations in Connecticut. They believe Connecticut is now seeing 100 residential solar grid connections per month, the majority of which are being handled by AKNS.

Drought in Chile affecting copper prices and the mining sector-WSJ
Chile’s worst drought in a half century has affected available hydroelectric power used to mine for copper and other metals. That has directly resulted in higher copper prices which are near all-time highs. It also means that there are more deals for copper, according to the Wall Street Journal’s “Heard on the Street”. Recently, for example, India’s Vedanta Resources said it would pay $2.6B to buy the assets of Asarco, a bankrupt U.S. copper miner. The stock prices of other mining firms are up, such as BHP Billiton (BHP), Rio Tinto (RTP) and Alcoa (AA). Possible takeover candidates include Freeport McMoRan Copper & Gold (FCX), said to be in the sites of Companhia Vale Do Rio Doce, and Alcoa.

Study says contract given to Boeing rival will cost 14,000 jobs-Chicago Business
According to a think tank study, a recent aerial refueling tanker contract awarded by the Air Force to a rival of Boeing (BA) will cost “at least 14,000 U.S. jobs”. The study came out the same day that Air Force Secretary Michael Wynne and Chief of Staff T. Michael Moseley were forced to resigned. In a press release, Senator Patty Murray said the resignations were further proof that awarding the contract to a joint venture between Airbus and Northrop Grumman (NOC) was “a flawed decision”. Boeing estimated the $35B tanker contract would have created 44,000 U.S. jobs.

MON target raised to $187 from $160 on price increases@SOLE
Soleil keeps a Buy rating.

CMP target raised to $95 from $80@SOLE
Soleil raised their estimates and target to reflect higher pricing assumptions and maintain a Buy rating.

Libya’s top oil official says oil to reach $140/barrel in June-Bloomberg

Genentech (DNA) The biotech of choice - Business Week
With many pros predicting that biotechs will be the next in line to rally, Genentech (DNA) is the stock of choice for investors who want a strong presence in the complex biotech universe, according to Business Week. Carl Birkelbach of Birkelbach Investment Securities says, “Genentech is due for a big bounce on its technicals and fundamentals.” At the May 30 American Society of Clinical Oncology meeting in Chicago, Genentech presented favorable new data on its products, and the stock rose to $72.47 by June 4. Birkelbach is impressed with Genentech’s pipeline, with 15 compounds set to come out in 2 years and 30 within 5 years. Genentech plans to seek approval for a new application for its chief drug, Avastin, for an aggressive brain cancer known as GBM. Avastin is now approved for first-time treatment of metastatic colorectal and breast cancers. Birkelbach figures, DNA will shoot to $100 in 24 months. Goldman Sachs’ May-Kin Ho who rates Genentech a buy says Avastin’s potential in other types of cancer–including ovarian, prostate, and brain, with a combined sales potential of more than $1.2B, “is underappreciated.”

KDN: Firm remains buyers of the stock; reiterate Outperform@BARD
The company’s wind contribution in the L-T could be markedly higher than stated N-T targets due to market opportunity and potential consolidation in the supply chain. $70 price target.

WTI Crude could reach $150/bbl by July 4th@MSCO
Morgan Stanley believes oil could reach $150/bbl by July 4th due to declining inventories and increased Asian demand.

Fast Money Position Recap- First Moves- Jeff bullish on MSFT, Guy likes INTC, Pete likes EXM, Karen likes JCG.
Macke Owns (ATVI), (MSFT), (WMT), (INTC); Adami Owns (AGU), (C), (GS), (INTC), (BTU), (MSFT), (NUE); Najarian Owns (EXM), (HPQ), (AAPL), (BHI), (CHK), (HD), (TSO), (XTO), (XLF); Najarian Owns (LEH) Puts; Najariain Owns (NUE) Calls; Finerman Owns (GS); Finerman’s Firm And Finerman Own (HD); Finerman’s Firm And Finerman Own (C), (C) Leaps; Finerman’s Firm Owns (MO), (PM), (JCG), (AAPL), (AEO), (MSFT), (NYX), (SUN), (TSO), (VLO); Finerman’s Firm Owns SPX Index Puts; Finerman’s Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY)

Watching energy and coals today as well as the other areas we have been keeping an eye on: Tech, Financials.
MEE, BTU, ACI got upgrades from Merrill Lynch last night so those might be a focus area. The unemployment rate took down premarket futures, it will be interesting to watch how the market reacts throughout the day on the news. I expect AAPL to unveil the 3G iphone on Monday so I will be watching AAPL today for action. The momentum stocks are all down on the morning news and I will be watching the first couple hours to see how things settle. Keep patient, stay focused and pick plays with a high probability of success. Run technicals through supply and demand (support and resistance zones, pivot points). Have a great weekend!