Wang’s Happy Trading

Submitted By Optiondragon

Amazing time-lapse video

From Briefing.com

Periodicals Wrap-Up for Wednesday, June 25th
WALL STREET JOURNAL: The stock is up 150% over the last year but with its move into the consumer marker BlackBerry maker Research in Motion (RIMM) is entering the fickle world of consumer trendiness, reported the Wall Street Journal’s “Heard on the Street”. Analysts are concerned about how big the consumer market can be for them, and then there’s Apple (AAPL) and Nokia (NOK) beating down the consumer path. Smart products will help, but price is an issue, and the shares could face a hard fall…The Wall Street Journal reported that Wachovia (WB) acknowledged it has hired Goldman Sachs (GS) to study its troubled portfolios of mortgages, a move which many believe indicates the bank is gauging the market value of the loans in order to eventually sell them…NEW YORK POST: Lazard (LAZ) was hired by UBS (UBS) to undertake a strategic review of the Swiss bank’s businesses, the New York Post learned…The New York Post also reported some reported turmoil at Live Nation (LYV), following the abrupt departure of the concert promoter’s chairman, Michael Cohl. Employees in the unit that was led by Cohl fear that the company will lay some of them off, and CEO Michael Rapino is accused of not being strongly committed to the company’s mega-deal strategy…BOSTON HERALD: The Boston Herald reported that its unions were told the newspaper will lay off 130 to 160 workers, under its new plan to outsource printing operations elsewhere in the state…

Risky Business for Research in Motion:The consumer market-WSJ
The stock is up 150% over the last year but with its move into the consumer marker BlackBerry maker Research in Motion (RIMM) is entering the fickle world of consumer trendiness, reports the Wall Street Journal’s “Heard on the Street”. The key is how corporate business subscribers grow–its bread and butter–as compared to consumer numbers. In RIM’s fiscal fourth quarter ended March 1, consumer subscribers grew about 150% from a year ago versus corporate subscribers, up about 55%.That growth has lead analysts to estimate that the company will earn $3.88 a share in the year ending February 2009, a 70% jump from the previous period. With the stock trading at 36 times forecast earnings. it’s a bargain. But analysts are concerned about how big the consumer market can be for them, and then there’s Apple (AAPL) and Nokia (NOK) beating down the consumer path. Smart products will help, but price is an issue, and the shares could face a hard fall.

Airlines alter airplane orders because of high fuel prices-WSJ
Thanks to escalating oil prices airplane makers Boeing (BA) and Airbus may lose a third of their orders for new jet airplanes, reports the Wall Street Journal. But while the manufacturers are fully booked over the next three years, some airlines are seeking to delay or outright cancel their orders, idle some planes or sell them off. “Everything is on the table when an airline is looking for cash,” says Steven Udvar-Hazy, chairman of aircraft-leasing company International Lease Finance Corp., a part of American International Group (AIG) and a key customer of the manufacturers.

SEC wants to lift obstacles to trading with foreign brokerage firms-WSJ
Looking to a global securities market, the SEC is today expected to release a proposal that seeks to remove barriers to U.S. institutional and individual investors trading with foreign brokerage firms, according to the Wall Street Journal.

Wachovia to evaluate troubled mortgages portfolio-WSJ
Wachovia Corp. (WB), with the help of Goldman Sachs Group (GS), will be looking to sell its portfolio of mortgages, and the issues are price–most likely at a loss–and if the company will then become a takeover target, reports the Wall Street Journal. Wachovia has over $120B of “Pick-a-Pay” mortgages, also referred to as “option ARM” loans.

China Telecom, China Unicom delay CDMA deal-Pacific Epoch
As a result of disagreements on how to distribute certain assets, the National Business Daily reported that China Telecom (CHA) and China Unicom (CHU) have delayed their CDMA deal. An industry insider said the companies are disagreeing on who should own the rights to certain base station resources and how to distribute China Telecom’s wireless connection equipment. The sale of the CDMA network could be delayed from June 23 to no later than August 31. China Telecom is expected to buy the CDMA network for RMB110M.

Lampert’s latest strategy for Sears-Fortune
In an effort to bring shareholder value back to shares of Sears (SHLD), Eddie Lampert disclosed that he us looking for an executive to oversee the company’s multi-billion dollar collection of private brands. This individual would need to make the brands more innovative and distribute them more broadly.

New iPhone expected to carry initial BOM, manufacturing cost of $173-iSuppli
According to a preliminary “virtual teardown” done by iSuppli, Apple’s (AAPL) upcoming second-generation iPhone will carry a $173 initial hardware Bill of Materials and manufacturing cost. Despite major improvements, iSuppli says the new iPhone is significantly less expensive to produce than the first generation device. The firm expects the 3G iPhone’s BOM costs will decrease over time.

BlackBerry Bold pushed back to August on AT&T-BoyGenius
According to sources, RIM’s (RIMM) Bold is delayed until August on AT&T (T). AT&T has not confirmed the delay yet, but it seems like both companies are having software issues with battery life and overheating.

SandRidge-SD 2M share Block Trade priced@64.00; mgr FBCO

Atwood Oceanics-ATW target raised to $184.50 from $159@JSLC
Jesup & Lamont raised their estimates to reflect the company’s Atwood Hunter contract announced last night and keeps a Buy rating on the stock.

MasterCard-MA settle litigation with American Express-AXP
The form of the agreement calls for 12 quarterly payments by MasterCard, beginning in the third quarter of 2008, of $150 million, contingent upon the performance of American Express’s U.S. Global Network Services business. On a tax-affected net present value basis, the settlement payments are estimated to be, in the aggregate, approximately $1 billion. MasterCard will take a charge for the settlement in the current quarter. The maximum nominal amount of the settlement is $1.8 billion.

American Express-AXP settles antitrust claims against MasterCard-MA for $1.8M
American Express announced that it has reached an agreement with MasterCard Inc. to drop a lawsuit alleging that MasterCard had illegally blocked American Express from the bank-issued card business in the United States. Under the terms of the agreement, MasterCard will pay American Express up to $1.8 billion. This follows an earlier agreement with Visa to settle similar claims for up to $2.25 billion. Subject to certain performance criteria, American Express would receive more than $4 billion for agreeing to drop its claims against the two credit card networks. The combined antitrust settlement is the largest in U.S. history.

ITRI target raised to $125 from $105, maintain Outperform@RBCM
RBC remains a buyer of the stock after channel checks confirmed the company’s selection as an AMI provider in San Diego, with an expected announcement in late summer.

HK target raised to $65 from $38@Coker & Palmer
Coker & Palmer raised their target to reflect the company’s Haynesville Shale exposure and reiterates a Buy rating on the stock.

BIDU: Checks indicate Q2 revenue likely to beat estimate@PACS
Pacific Crest’s industry checks indicate BIDU is likely to exceed their Q2 revenue estimate, which the firm believes should offset some investments and margin pressure. Pacific Crest remains a buyer of the stock with an Outperform rating.

MON reports Q3 EPS $1.45 vs. consensus of $1.34
Reports Q3 revenue $3.59B vs. consensus of $3.71B.
MON sees FY08 EPS $3.40 vs. cosnensus of $3.39.

EP: Haynesville deal could raise shares $1-$3, maintain Outperform@WCHV
After El Paso said it had raised its Haynesville shale acreage, Wachovia believes Haynesville could add $1-$3 to the company’s shares, as they think the region seems very promising. The firm noted that the shares trade far below peers’ valuation range.

Microvision stock drops on Mulcahy article-Seattle Post-Intelligencer
Microvision (MVIS) shares dropped up to 20% on Monday after Liam Mulcahy wrote an article for SeekingAlpha.com, saying that investors “need to see the light and realize that the dream is rapidly becoming a nightmare.” Mulcahy had written only one previous article on the Web site and Bill Singer, a securities lawyer and Microvision investor, says Mulcahy may have illegally manipulated the stock. Further, several of his assertions, including that the company is possibly facing a shortage of cash and that a rival product is “available in mass quantities today,” are questionable. Seeking Alpha pulled the article Tuesday “pending investigation of claims of material inaccuracies.”

Refiners: Top Recommendations continue to be HOC/OP and VLO/OP@FBRC
Several factors which impacted 1Q08 EPS negatively have continued into the 2Q and will probably generate disappointing results. FBRC expects for the rest of the year refining margins and stocks to be under pressure. Therefore, FBRC reduced their 2Q08 EPS estimates, as well as price targets, including FTO to $35 from $40, HOC to $64 from $70, SUN to $49 from $60, TSO to $27 from $33 and VLO to $65 from $77.

AMLN: FDA seems favorable to company’s drug@PIPR
Piper believes that the FDA’s briefing document indicates that the agency has a favorable bias to diabetes drugs with no weight gain or hypoglycemia. The firm believes this bias should be positive for Amylin’s LAR drug, and they maintained their Buy rating.

U.S. equity futures are higher ahead of the weekly energy inventory report
U.S. equity futures are higher this morning as oil hovers near the flat line ahead of the weekly energy inventory report. Although the price of oil fluctuated yesterday, it closed up just 26 cents at $137 a barrel. The report will be looked at today with an eye towards whether demand has weakened slightly or if supplies have been drawn down due to continued high demand. The weekly report is due out at 10:35 am.

Guess-GES: See 20%-plus growth in Europe over 3-5 years, reit Buy@PIPR
After visiting the company’s European headquarters, Piper believes the company has numerous growth markets there. The firm thinks the company’s shares don’t adequately reflect its potential overseas growth.

Amazon.com’s CEO takes stake in Twitter
According to Twitter’s blog, Amazon.com’s (AMZN) CEO Jeff Bezos has taken a stake in Twitter.

RIG target raised to $193 from $182, reiterate Buy@MLCO
Merrill Lynch thinks RIG may begin paying special dividends, which could drive the stock near $200.

BHP refuses to accept Rio’s iron ore price agreement-Australian Financial Review
BHP Billiton (BHP) CEO Marcus Randolph said the company would not accept rival Rio Tinto’s (RTP) iron ore price agreement , which implied a premium of $7.50 per ton on the price achieved by Vale (RIO) earlier this year. Randolph also criticized Rio as failing to come close to covering the $45 a ton freight difference that allows Australian ores to be the cheapest delivered into China. Randolph said that while existing customers wish to stay with a benchmark system, he would like it to reflect better spot prices and is determined to settle all new tonnages using indexed prices. A Citigroup analyst said that if BHP does not agree to the same increase as Rio, “it lays all sorts of minefields for them, especially as far as the EU negotiations are concerned”.

NVDA initiated with an Outperform@COWN
Cowen believes NVDA product strategy is poised to bear results and that shares appear to be discounting significantly more risk than the company’s true fundamentals reflect.

PPL Corp-PPL Add to Short-Term Buy List; reiterate Buy@UBSW
UBS sees several near-term catalysts for PPL that include the PA legislature achieving a resolution on energy policy issues in the next few weeks.
Interesting call and one to watch for an announcement.

WMI added to Conviction Buy List@GSCO

Aerospace sector downgraded to Cautious from Neutral@GSCO
Goldman downgraded the sector to reflect high oil prices and the weak economy. Note Goldman also downgraded Boeing (BA) to Sell from Neutral as well as Textron (TXT) and Precision Castparts (PCP) to Neutral from Buy.

Jim Cramer’s “Mad Money”
Cramer, continuing his week-long series on companies that make clean offshore drilling possible, recommended Oceaneering International (OII). He says, OII is a buy because it’s the market leader for robotic operated vehicles (ROV), unmanned robots that make offshore drilling safe by remotely inspecting pipelines, making repairs, assisting in drilling and cleaning up debris on the sea floor. OII controls 34% of global market for ROVs and 75% of its revenues come from the ROV business. Cramer first recommended OII on May 17, 2006 at $34.24 a share. Since then, OII has gained 128% in value. Cramer still considers the stock a buy, especially after the company’s 5.4% pullback Tuesday. He noted that OII is also a hurricane play, with its post hurricane inspection and cleanup services. Cramer called OII cheap at today’s prices, as it is expected to grow at 30% a year. Next, Cramer called the current U.S. ethanol mandate the “single biggest blunder” he can recall. The program, which converts 30% of the nation’s corn crop into just 3% of its gasoline needs, benefits no one except corn growers, he said. Instead the program just increases food prices and further promotes a global famine, he added. Cramer welcomed Senator Kay Bailey Hutchinson (R., Texas) to discuss her recent bill to freeze the bio-fuel levels at their current amount, and not gradually raise them through 2022 as current law mandates. Hutchinson supported both a short-term plan with more oil and a long-term plan that that pushes increased alternative energy such as wind, solar and nuclear power. Hutchinson also expressed support for increased offshore drilling. Then, Cramer recommended graphite electrode maker GrafTech (GTI) as “the steel play you’ve never heard of.” A long time bull of the steel industry, Cramer last featured the group on March 26 where he recommended US Steel (X), which has risen 50% since then. He says, GTI, which makes electrodes for arc furnaces, is one of the primary beneficiaries of the “steel boom”. Cramer says, GTI was able to raise its prices three times in the past year, it is cleaning up its balance sheet, buying back debt and initiating a 3M share repurchase program. Together with GTI, Cramer again recommended X, along with Reliant Steel (RS) and Nucor (NUE). MAD MAIL: Cramer still stands by his game plan recommendations of Wells Fargo (WFC), Toll Brothers (TOL) and Owens-Corning (OC) from last week, but reminds viewers that these calls are for a trade only, and he’s not a buyer of any of the names over the long haul. He advised viewers to sell all three if the oversold market doesn’t produce a pop in the names within the next week. LIGHTNING ROUND: (Bullish) CHK; AA; MDT; BMY. (Bearish) WB; CX; IPI.

Dow Jones Industrials Index-DJX: Pivot Points
The following are the pivot points for the Dow Jones Industrials Index (DJX). Pivot High: 11855.875, Pivot Low: 11677.075. These were calculated using the DeMark method. It is generally believed to be bullish when price breaks out above the pivot high or bearish when price breaks down below the pivot low.

Nasdaq 100 Index-NDX: Pivot Points
The following are the pivot points for the Nasdaq 100 Index (NDX). Pivot High: 1914.920, Pivot Low: 1876.830. These were calculated using the DeMark method. It is generally believed to be bullish when price breaks out above the pivot high or bearish when price breaks down below the pivot low.

S&P 500-SPX: Pivot Points
The following are the pivot points for the S&P 500 (SPX). Pivot High: 1320.155, Pivot Low: 1298.555. These were calculated using the DeMark method. It is generally believed to be bullish when price breaks out above the pivot high or bearish when price breaks down below the pivot low.

Russell 2000 Index-RUT: Pivot Points
The following are the pivot points for the Russell 2000 Index (RUT). Pivot High: 713.170, Pivot Low: 701.950. These were calculated using the DeMark method. It is generally believed to be bullish when price breaks out above the pivot high or bearish when price breaks down below the pivot low.

DJ Transportation Average-$DJT: Pivot Points
The following are the pivot points for the DJ Transportation Average ($DJT). Pivot High: 5045.900, Pivot Low: 4913.940. These were calculated using the DeMark method. It is generally believed to be bullish when price breaks out above the pivot high or bearish when price breaks down below the pivot low.

Fast Money Position Recap- First Moves: Guy likes HD, Karen likes PPH, Pete thinks MCD. Adami Owns (AGU), (C), (GS), (INTC), (BTU), (NUE), (MSFT); Macke Owns (DIS), (WMT), (MSFT); Najarian Owns (AAPL), (HD), (NOK), (TSO), (XLF); Najarian Owns (WFMI) Puts, (MER) Puts, (DHI) Puts; Najarian Owns (YHOO) Calls, (EK) Calls, (UBS) Calls; Finerman Owns (GS)
Finerman’s Firm Owns (AXP), (MSFT), (NYX), (PZN), (TSO), (VLO), (PPH); Finerman’s Firm Owns SPX Index Puts; Finerman’s Firm And Finerman Own (C) And (C) Leaps; Finerman’s Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY); Finerman’s Firm And Finerman Own (HD) And (HD) Puts.

Today is a big day for the markets with the Fed slated for its policy decision and remarks. Expect knee jerk reactions to the stateement at first but it should settle down by tomorrow morning. Technically the market looks broken and way oversold. A technical bounce should occur at some point but its duration and strength are questionable. I’m still in defensive mode although I have been staying and trading in the areas of strength with my longs. Oil inventories at 7:30am PT should move the energy plays today. Pick plays with a high probability of success, be patient and run your technicals through supply and demand for analysis. Great luck and great trading.