Wang’s Happy Trading

Submitted By Optiondragon

Drinking tea with chopsticks in microgravity- NASA, Happytrading testing

From Briefing.com

Periodicals Wrap-Up for Monday, June 30th
WALL STREET JOURNAL: After being downgraded by Moody’s, the Wall Street Journal reported that MBIA Inc (MBI) will have to make $2.9B in termination payments and put up an additional $4.5B in collateral on agreements called Guaranteed Investment Contracts. As a result the firm is selling municipal bonds to raise cash…Anheuser-Busch (BUD) introduced a new business plan to help thwart a takeover by rival InBev. As part of its plan, the Wall Street Journal reported its intention to reduce headcount, raise prices and buy back more of its shares…FINANCIAL TIMES: In an attempt to withstand the economic slowdown, the Financial Times reported that Siemens (SI) announced plans to cut 17,200 jobs worldwide. Approximately 6,400 job cuts will be in Germany with a third more, elsewhere in Europe…The Financial Times also reported that Citigroup (C) is planning to change its bonus system for hundreds of its top managers, in an attempt to increase cooperation and reduce competition within the company…TELEGRAPH: John Varley, the CEO of Barclays (BCS), said the GBP4.5B rights issue answered naysayers, and said in an interview with The Sunday Telegraph that extra financing will not be necessary…

Mittal mulling bid for Rio Tinto stake-FT
Arcelor Mittal (MT) Chairman and CEO Lakshmi Mittal is thinking of having his company bid for a stake in mining company Rio Tinto (RTP). Mittal is considering the move because he wants to secure larger iron ore supplies. “Mr. Mittal has considered some involvement in the {Rio} takeover, such as the idea of taking a stake in Rio through buying from existing shareholders,” said a banker, adding that the CEO may instead elect to buy iron ore assets from Rio Tinto after an acquisition has been made.

Demand for U.S. steel is still strong-FT
In spite of the slowing U.S. economy, the American steel industry is still benefiting from strong demand for its products. “Our business in the U.S. is holding up very well. We are selling everything we can make.” said Louis Schorsch, CEO of the flat steel division in North and South America for ArcelorMittal (MT).
THERE ARE SUBSTITUTES AND ALTERNATIVES FOR OIL BUT THERE IS NO SUBSTITUTE FOR STEEL AND WE ARE IN THE MIDST OF A GLOBAL INFRASTRUCTURE BOOM.

Anglo American prepares to study BHP and Rio’s iron ore mines-Telegraph
Anglo American (AAUK) has formed a team to examine the iron ore assets of BHP Billiton (BHP) and Rio Tinto (RTP). Anglo American set up the group to prepare for a scenario in which BHP and Rio are forced to divest their operations, in order to allow BHP’s bid for Rio to progress. Anglo is believed to be interested in obtaining iron ore mines in Australia.

CLF target raised to $150 from $115, maintain Buy@DBAB
Deutsche Bank raised their target and estimates to reflect the company’s realization prices for both iron ore and coal. I have a nice position in this name built 2 weeks ago.

Computer chips by Qualcomm could cost less than Intel chips-NY Times
The New York Times reports that Intel (INTC), a dominant company in the chip market, could face a challenge by chips being designed by Qualcomm (QCOM). Qualcomm’s Snapdragon will reportedly drive the display with less than half the power of Intel’s recently-introduced chip, and, designers believe it will cost less. Additionally, many see the battle between ARM Holdings (ARMH), whose processors supply the world’s 1.1B cellphones, will grow as mobile internet devices become more popular. Qualcomm, Nvidia (NVDA), along with others, share a chip design from ARM.

Google forms deal with creator of “Family Guy”-NY Times
The New York Times reports that “Family Guy” creator Seth MacFarlane has formed a deal with Google (GOOG), which is experimenting with a new method of distributing original material on the Web. MacFarlane’s new project will appear exclusively on the Internet beginning in September, and Google will syndicate the program using its AdSense advertising system to incorporate ads into the project’s clips. The series will be served in 50 two-minute episodes.

Microsoft scheduled to stop selling Windows XP OS-Detroit News
Despite protests from some PC users, Microsoft (MSFT) will today stop selling its Windows XP operating system to major computer makers and retailers. Microsoft will still allow smaller PC builder shops to buy XP for resale through the end of January, 2009.

FDA slow to approve new drugs say drug company executives-WSJ
It started in 2004 with the Merck (MRK) Vioxx scare. The FDA was accused of not being focused enough on drug safety. Now the pendulum has swung the other way and drug company executives say the FDA is too slow approving new drugs, forcing companies to change the way they develop drugs, reports the Wall Street Journal. “What will it take to get new drugs approved? The point is, we don’t know,” says Schering-Plough (SGP) CEO Fred Hassan. He thinks the FDA has little tolerance for side effects, and that has already forced him to pull two drugs. In 2007 the FDA approved 19 new medicines, the lowest total in nearly a quarter century. It also put out about 75 new or revised “black-box” warnings about potential side effects, double the number in 2004. The FDA says they’re not being more conservative, and point to faulty drug company research.”There is no question that the FDA is more safety-oriented than it has been in years,” says Ira Loss with Washington Analysis, a research firm.

If Prudential Financial exercises option, Wachovia would need $5B-NY Post
It’s unclear what they’ll do, but Prudential Financial (PRU) could decide to exercise an option and force Wachovia Bank (WB) to buy out their joint venture formed in 2003. Under terms of the deal –which saw Prudential’s retail brokerage operation work with Wachovia’s brokerage platform– beginning tomorrow Prudential can force troubled Wachovia to buy its 23% share of their partnership, valued at about $5B.

Apple-AAPL: Data indicates pent-up demand for 3G iPhone@RBCM
RBC’s proprietary data suggests “unprecedented” advanced demand for iPhone 3G. They believe AAPL and Research in Motion (RIMM) are expanding the addressable smartphone market and reiterates an Outperform rating on AAPL shares.

Biotechnology: Expect better than expected Q2 reports@LEHM
Lehman is positive on DNA ahead of Q2 results but recommends moving to the sidelines after on expectations for weak AVDO data for Avastin in mBC and Erbitux headwinds from ASCO. The firm prefers CELG & GENZ over BIIB heading into Q2 results.

Canadian Solar-CSIQ signs 800MW wafer supply agreement with LDK Solar-LDK
Canadian Solar signed a ten-year supply contract with LDK Solar, a leading manufacturer of multi-crystalline and mono- crystalline solar wafers. LDK has been a key supplier to CSI since summer of 2006. This new ten-year supply contract is in addition to the three-year supply contract signed between CSI and LDK in October 2007. LDK expects to begin the ramp up of its in-house polysilicon manufacturing project in the second half of 2008. Under the terms of the new agreement, LDK will supply an additional 800 megawatts of solar wafers to CSI through 2018.

U.S. equity futures off the morning’s lows; Crude oil is slightly lower
U.S. equity futures are off of their lows of the morning and the price of crude is below its highs. The markets will be looking to stabilize this week after its big sell-off last week. But because it’s the last day of trading in the quarter it may have to wait another day or two. Many final trading days in a quarter are typically met with volatility as traders and asset managers attempt to “window dress” their portfolios by selling the losers and buying stocks that have performed well during the quarter. Given the carnage in the market in the past week, finding those winners may prove to be difficult.

NFLX: Near-term risks make the shares unattractive@PACS
PacCrest’s checks reveal NFLX is cutting back on its online content acquisitions this quarter to help offset higher spending of its Instant Watch functionality. While the cost cuts may have a positive near-term benefit on financials, PacCrest believes they are a negative sign of Netflix�s broader business trends. Shares remain Sector Perform rated.

FSLR upgraded to Buy from Hold@CSTI
Collins Stewart upgraded shares as they believe the company’s new Malaysian production facilities are progressing well. The firm set a $320 target on shares.

Gaming: Price targets lowered on LVS, WYNN, & MGM@UBSW
UBS lowered multiples for Macau and Las Vegas based on increased EBITDA uncertainty. The firm lowered price targets on: LVS to $55 from $74, WYNN to $93 from $118, and MGM to $39 from $54.

AMGN: IMS data suggests Aranesp tracking ahead of expectations@DBAB
Deutsche Bank believes the April/May 2008 IMS sales suggest U.S. Aranesp sales will be $396M in Q2, ahead of their estimate of $389M and consensus estimate of $373M. They believe upside in Q2 could be a near-term positive for shares, but think Aranesp sales are likely to continue to erode as private payors adopt Medicare’s reimbursement policy. Shares remain Buy rated.

Research in Motion-RIMM: Recent weakness a buying opportunity@JPMS
JP Morgan said the recent sell-off in shares provides and opportunity to build positions as the company has strong growth momentum heading into a new product cycle. Shares are Overweight rated.

PCLN target lowered to $142 from $161, reiterate Hold@SBSH
Citigroup lowered their target price to reflect weakening European macro trends and increasing search advertising competition.

NBR: Expect U.S. land drilling to have bullish 2Q outlook@FBRC
Due to their expectations of a solid performance within the U.S. land drilling segment, as well as the offshore drilling segment to strongly pick up from the 1Q, the firm increased their 2Q and 2008/09 EPS estimates and target price to $56 from $45. FBRC also anticipates the company to be the largest beneficiary of the demand from incremental shale development rig requirements. Reiterate Outperform.

DVN: Advise buying shares heading into 2Q earnings@FBRC
The firm increased their 2008/09 EPS/CPS estimates to reflect drilling success YTD and increased their 2008/09 YoY production growth projection as well. Target price raised to $140 from $125 and Outperform rating reiterated.

GRMN: Growth opportunities remain, valuation compelling@BARD
Baird said concerns regarding the consumer environment and incremental competition are overdone and that GRMN has strong risk/reward. The firm adds that that the Aviation, Outdoor, & Marine markets are being overlooked and that the company can gain share in Europe. Shares are Outperform rated.

James River Coal-JRCC agrees to acquire reserves and permits Appalachia
James River Coal Company announced that it has entered into a definitive Asset Purchase Agreement pursuant to which the Company will acquire certain coal reserves and permits from Cheyenne Resources. The transaction includes approximately 10.2 million tons of proven and probable surface reserves and 3.6 million tons of proven and probable underground reserves, plus additional surface resources. Permits necessary to begin mining a portion of the reserves immediately are currently in place. No equipment, workforce or other assets will be acquired in the transaction.

UTHR submits NDA for inhaled treprostinil
United Therapeutics and its wholly-owned subsidiary, Lung Rx, Inc., announced the submission of a New Drug Application to the U.S. Food and Drug Administration for marketing approval of an inhaled formulation of treprostinil for the treatment of pulmonary arterial hypertension, a chronic, life-threatening disease. The submission starts a 60-day period during which the FDA will examine the application for completeness. If the FDA accepts the ITRE NDA for review, then it is expected to be subject to the standard 10- to 12-month review period before an action letter is issued.

Federal government to cut tax breaks for hybrid vehicles-LA Times
The LA Times reports that the federal government is set to cut tax incentives for some of the most popular hybrid vehicles. Beginning tomorrow, the credit Honda’s (HMC) Civic hybrid will be slashed to $525 from $1,050, while the credits for Toyota’s (TM) Prius and Camry were cut last fall. Despite the cuts, the LA Times says sales of the Prius or the Civic don’t appear to be hurting. Nissan’s (NSANY) Altima still offers a tax break, which the company hopes will give it an edge over the Prius and Civic. The hybrid vehicles that still qualify for significant tax incentives include the Ford Escape (F), Chevrolet Malubu and Honda Civic GX.

GOOG added to Top Picks Live List, maintain Buy@SBSH
Citigroup’s checks indicate GOOG’s Q2 is on track to meet their estimates and they find the risk/reward very favorable at current levels. The firm maintains a Buy rating and $630 target.

MER Q2 estimate lowered to ($1.56) from 38c@KBWI
Keefe Bruyette believes a combination of more writedowns largely from ABS CDO exposures, residential mortgage and financial quarantor exposure will weigh heavily on EPS this quarter. The broker also lowered MER’s 2008 estimate to ($1.99) from 30c and target to $41 from $52. Shares remain Market Perform rated.

China Petroleum, PetroChina fall on fears subsidies will be halted-Bloomberg
Bloomberg reports China Petroleum & Chemical (SNP) and PetroChina (PTR) declined in trading in Shanghai and Hong Kong on record crude prices and speculation the government may halt oil subsidies.

Weekly additions to the Investors Business Daily-100
The following are additions to the Investors Business Daily- 100 list for the week of June 27: Williams Companies (WMB), Yamana Gold (AUY), Darwin Professional Underwriters (DR), China Medical Technology (CMED), Intrepid Potash (IPI),Petroleo Brasileiro SA (PBR), Rowan Companies (RDC), Morningstar Inc (MORN), Natus Medical (BABY), Permian Basin Royalty Trust (PBT), Robbins & Myers(RBN), Superior Energy Services (SPN), Canadian Natural Resources (CNQ).

Weekly subtractions from the Investor’s Business Daily-100
The following are subtractions from the Investors Business Daily-100 list for the week of June 27: ReneSola Ltd. (SOL), GeoResources Inc. (GEOI), Monolithic Power Systems (MPWR), Terra Nitrogen Company (TNH), NetLogic Microsystems (NETL), Sun Hydraulics Corp. (SNHY), Axsys Technologies Inc. (AXYS), ABB Ltd. (ABB), Diana Shipping Inc. (DSX), NVE Corp. (NVEC), Sadia SA (SDA), Amphenol Corp. (APH), Oceaneering Intl. (OII)

Petrobras-PBR: Opportunity to “strike it rich” - Barron’s
Brazil’s Petrobras (PBR) could become one of the world’s top oil companies if its three new deepwater wells are as plentiful as some expect. Petrobras is sitting atop what appears to be the Western Hemisphere’s biggest find in 30 years. The Tupi oil field, discovered off Rio de Janeiro two years ago and 65% owned by Petrobras, may contain as much as 8 billion barrels of oil, an amount that would boost Brazil’s reserves by more than 50%. Also, the company has since found three other potentially lucrative, deepwater wells in the same area. Petrobras’ president, Jose Sergio Gabrielli, told the Wall Street Journal this month, the risk of finding no oil in the basin where it is drilling is “practically zero.” Investors already have struck it rich with Petrobras’ stock. Recently trading around $70, it has more than doubled over the past 12 months, far outpacing such rivals as ConocoPhillips (COP), Chevron (CVX) and ExxonMobil (XOM). Yet, bulls say the stock could climb another 25% or so within a year, perhaps hitting $90.

Cover Story: Wall Street is likely to reinvent itself in coming years - Barron’s
Wall Street is in self-preservation mode. And if historical form holds, Wall Street will reorient itself toward new businesses and fresh opportunities. Barron’s says, although most eyes are fixed on the mayhem of the moment, at $140-a-barrel oil, a fresh Sell recommendation on Citigroup (C) and a 2008 low for the market, the time seems ripe to take the long view, gauging the ways in which Wall Street is likely to reinvent itself in the next couple of years. Barron’s conversations with a score of industry analysts, consultants, professional investors and investment-banking executives have yielded some answers that might surprise investors. They say Wall Street firms will undergo an historic transformation in the next two years such as: Broker balance sheets, leverage levels, payrolls and possibly the ranks of independent firms will shrink. Specifically, Barron’s says the recent rounds of layoffs, often targeting 5% of a company’s staff, are just the start; some firms eventually will jettison 10% of their employees, including plenty of high-paid senior types. Also, a new regulatory structure will look holistically at the finance systems without regard for bank/broker distinctions. More trading will migrate toward regulated exchanges and away from the over-the counter- market. Compensation practices will become more disciplined, less capricious. The virtues of stable revenue streams and a diverse set of businesses will be rediscovered. The largest, most globally far-flung firms will have an increasing advantage as mediators of capital flows.

Jim Cramer’s “Mad Money”
On Friday, Cramer told viewers that Wednesday’s release of the oil inventory number could offer investors a chance to buy oil stocks. Cramer called the inventory number a “contrary indicator, ” and despite the noise traders create surrounding the release, it doesn’t affect the price of oil. Indeed, “if you go against it, you get your best trade of the week,” said Cramer. His oil inventory game plan: If the number shows a big inventory build-up, you should be buying while everyone else is selling off oil stocks, he said. If the oil inventories drop, take a pass and try again next week. A relatively safe oil stock is BP (BP). A bigger play is Permian Basin Royalty Trust (PBT). For something with more pop, try ConocoPhillips (COP), an integrated balanced refiner with a natural gas focus is the choice. For a pick in the coastal drilling sector, CGG Veritas (CGV), Smith International (SII), FMC Tech (FTI) and Oceaneering (OII) are good buys. Another is Cramer’s favorite, El Paso (EP) which he says to “Take advantage of the fact it is hanging around $21 and pull the trigger.” SPECULATION FRIDAY: Britannia Bulk Holdings (DWT) is a dry bulk shipping company that has pulled back hard since its IPO last week. DWT’s IPO was negatively affected by a quick downturn in the Baltic Dry Index, after the Chinese government ordered a reduction in ore stockpiles. Cramer is a fan of DWT’s 8.8.% dividend. He didn’t recommend the IPO because $15 a share was too high,” but he would be a buyer of the stock at Friday’s close of $12.80. Because DWT is a small company, Cramer cautioned to buy the shares in increments and use limit orders and wait for pullbacks. “If you pay over $13 a share, you are not getting a good deal,” he says. Cramer also asked listeners to pass on Navios Maritime (NM) as it doesn’t have great growth on yield. His oil play is Nordic American Tanker (NAT). Friday’s pick in cleaner off shore drilling technology is Hornbeck Offshore Services (HOS). Hornbeck makes offshore support vessels (OSVs) that are the lifeblood of offshore drilling. OSVs enable rigs to remain upright during extreme weather. There’s a shortage of OSVs right now and there’s a need to update vessels. With the second largest fleet off the Gulf of Mexico, Hornbeck is in a position to command better rates for their OSVs. It is a small company with only 20M shares traded. Cramer said use limit orders when buying and wait for a pull back before you pull the trigger. Next, Cramer gave his stamp of approval to Baldor Electric (BEZ), which makes a large variety of industrial motors. John McFarland, chairman and CEO told Cramer that “We have done a very good job of transforming the company.” McFarland said, “Our business is solid and we are quite pleased with how we are doing in Europe, Asia and North America.” Cramer agrees. Stick with Baldor, he said. LIGHTNING ROUND: (Bullish) ARLP; PM; CBRL; SIM. (Bearish) OSK; JRJC.

Pre-Market Movers: Ahead of the Bell
There is very little volume behind the moves this morning. The session so far is dominated by the futures, which are volatile, and the major index ETFs. This is going to be a potentially wild week into the holiday. It will likely be the mirror of last week with most of the action packed into the front of the week. As the hedge fund redemption window closes today (with possible effects still felt tomorrow) and a new quarter begins we may well see bounce attempts, especially ahead of earnings starting next week. The pre-announcement pace has been quite light so far which may embolden the bulls. The volume leader this morning is Myriad Genetics (MYGN), trading down (-3.2%) on greater than average daily volume following poor Phase III results for their Alzheimer’s drug Flurizan. RBC Capital Markets has a $37 price target on the name, a (-19.7%) discount to the current pre-market price. H&R Block (HRB) is trading up +7.8% after posting better than expected results in an earnings report this morning. Apple (AAPL) is trading up +0.2% on positive broker comments on the company’s prospects from Thomas Weisel Partners and RBC Capital Markets.

Fast Money Position Recap- First Moves: Joe likes JPM, Guy likes CELG, Karen Likes MRK, Pete Likes shorting HBC.
Adami Owns (AGU), (C), (BTU), (NUE), (GS), (INTC), (MSFT); Pete Najarian Owns (ANR), (TSO), (XLF); Pete Najarian Owns (AAPL) Calls, (EK) Calls, (QID) Calls, (RIMM) Calls, (YHOO) Calls, (WLT) Calls; Pete Najarian Owns (HRB) Puts, (MER) Puts, (HBC) Puts; Finerman Owns (GS); Finerman’s Firm Owns (MSFT), (NYX), (SUN), (TSO), (MRK), (PPH); Finerman’s Firm And Finerman Own (C) And (C) Leaps; Finerman’s Firm Is Short (SPY), (IYR), (IJR), (MDY), (IWM); Finerman’s Firm Is Short SPX Index Puts; Finerman’s Firm Owns (VLO) And (VLO) Call Spreads; Terranova Owns (BNI), (CME), (FXC), (LUV), (GOOG), (FCX), (INTC), (IYT), (XLF), (SU), (YHOO); Terranova Owns Dollar Index Futures

Terranova is chief alternatives strategist at Phoenix Investment Partners;; Phoenix Investment Partners Ltd. Owns (RWX), (DBC), (DBV), (IGE), (AAI), (ALK), (AMR,) (APA), BP plc, British Airways plc, (CHK), (CVX), (COP), (CAL), (DAL), ENI SPA, (XOM), Gazprom, (HA), (HES), (HOC), (HSE), (JBLU), Lukoil, (MRO), (MUR), (OXY), Petrobras Intl Fin, Petro-Canada, (PBR), Petroleos De Venezuela, (QAN), (RJET), Royal Dutch Shell plc A Shares, (SKYW), (LUV,) (SU), (TSO), Texaco Capital, Total SA, (UAUA), (LCC), (VLO).

There is no substitute for steel, there are substitutes and alternatives to oil. In order to produce steel in this global infrastructure boom they must have metallurgical coal. 55% of the electricity produced in the US is from coal fired plants. Utility plants are working in overtime right now as peak electricity usage is causing some brown outs in some areas of the US. America is the Saudi Arabia of Coal. There is a changing of the guard in this respect happening right now in this sector and in our prominence in the energy sector due to global demand for steel and for coal for use in electricity (now seam coal is starting to be talked about). Will there be pullbacks? Yes. Will the demand for steel and power for global consumption end. No not for a looooooog time. The global infrastructure boom commences and never ceases…..just wait when the US has to upgrade our antiquated railroad network, where will all that steel come from? It just goes on and on….
Looks like coal, energy and shale plays are in the hotness category still. Coal: ANR, MEE, CLF, CNX, WLT, ICO, FDG, JRCC, ACI, BUCY TCK, BTU, MTL. Shale plays: CLR, XCO, SM, NFX, HK, CRK, XTO, GMXR, SD, GDP, WLL.
Pick plays with a high probability of success, be patient and have focus and conviction. Risk management is of utmost importance. Great Luck, great trading.