Wang’s Happy Trading

Submitted By Optiondragon

From Briefing.com

Periodicals Wrap-Up for Thursday, July 31st
WALL STREET JOURNAL: According to people briefed on the discussions, the Wall Street Journal reported that Google (GOOG) is in discussions to start a venture-capital arm that will be led by David Drummond, senior vice president of corporate development and chief legal officer. Additionally,Google reportedly hired William Maris to set up the venture, although how the group will be structured currently remains unclear…The Wall Street Journal also reported that as part of its latest cost-cutting initiative, General Motors (GM) will cut 5,000 jobs by November 1, or around 15% of its North American white-collar workforce. Additionally, in a move that could hurt its U.S. sales further, the automaker has confirmed plans to cut back on its leasing operations. GM plans to keep offering subsidized leases on vehicles in the U.S., but will exclude certain vehicles and adjust some of the terms…FINANCIAL TIMES: According to the Financial Times, Morgan Stanley (MS) will use $1B saved from cutting 4,800 jobs this year to bolster its presence in areas that include risk management and derivatives and to hire top-level executives…BLOOMBERG: Bloomberg reported that Luc Francois, the former head of equities at Societe Generale (SCGLY), will join Morgan Stanley to run its European equities and global equity derivatives. A source familiar with the matter said Bear Stearns Co’s (JPM) Thomas Wong will run Morgan Stanley’s proprietary trading and Eric Cole, also from Bear, will run distressed sales, trading and research…

Google may expand its footprint with a new venture-capital arm-WSJ
According to people briefed on the discussions, the Wall Street Journal reports that Google (GOOG) is in discussions to start a venture-capital arm that will be led by David Drummond, senior vice president of corporate development and chief legal officer. Additionally, Google has reportedly hired William Maris to set up the venture, although how the group will be structured currently remains unclear. One advantage Google has is the ability to offer sizable technical resources and already has a brand known by start-ups. The sources were careful to warn that plans for the venture, which would make Google the largest technology giant to take on a “more formal” role and could help it expand some of its online-software products geared at small businesses, may still fall through.

Brokerages to form large energy trading company-FT
Six independent American over-the-counter brokerages are going to announce that they will merge to create an interdealer brokerage that will be a top trader of North American energy futures. The brokerages hope the merger will help prevent stricter regulation of their energy trades by the U.S. government.

Visa-V: Believe Q3 is strong enough to keep recent share gains@JPMS
JP Morgan raised their estimates and reiterates an Overweight rating on the stock.

ImClone-IMCL volatility Flat into BMY $60 cash bid
IMCL is recently trading up $18.91 to $65 in pre-open trading. BMY offered to acquire IMCL for $60 per shares. BMY owns 17% of IMCL. IMCL over all option implied volatility of 42 is near its 26-week average of 45 according to Track Data, suggesting non-directional price movement.

Biotech: Believe smaller companies with partnerships will go first@BWS Financial
BWS believes the deal between Bristol Myers (BMY) and Imclone (IMCL) could trigger further consolidation in the biotechnology industry. The firm thinks smaller biotech companies that have formed collaborations are likely the first ones to be bought and speculate the next company to be bought could be Onyx Pharmaceuticals (ONXX) or OSI Pharmaceuticals (OSIP).

First Solar-FSLR target raised to $447 from $381@PACS
Pacific Crest raised their estimates to reflect FSLR’s outperformance in Q2 and raised guidance. Shares remain Outperform rated.

E&P Stocks look cheap based on reserves@LYON
Calyon said most E&P valuations reflect only proved reserves and look cheap when unproved reserves are factored. The firm said on a proved basis APC, UNT, and APA have the most upside and that BBC, APC, and RRC have the most when unproved reserves are included. The firm’s top picks are RRC and APC.

Garmin-GRMN: Remain on sidelines despite low valuation@NEED
Needham admits that shares look cheap following the company’s soft Q2 results, but they see a lack of catalysts to reverse the slide of PNDs. Shares remain Hold rated.

OSI Pharma-OSIP: Moving up on ImClone
OSI Pharma’s (OSIP) Tarceva is a competitor to ImClone’s Erbitux. On news of BMY’s offer to buy IMCL, the shares are up +3.08% in the early going. Resistance levels to watch as potential upside objectives are at $52.00, 52.95, $54.00, $54.98, $56.25, $57.13, $59.00. Support is at $50.94 based on current pre-market price. It would be bearish if this level were broken to the downside.

First Solar-FSLR: Believe stock is fairly priced, maintain Hold@STFG
After the company reported higher than expected Q2 revenue, Stanford is upbeat about First Solar’s execution and the low cost of its products compared to those of its competitors, but the firm reiterated their Hold rating

MasterCard-MA reports Q2 EPS $2.11 vs. consensus of $2.02
Reports Q2 revenue $1.2B vs. consensus of $1.21B.

Cisco-CSCO: Expect in-line Q4 report@UBSW
UBS expects CSCO to report an in-line quarter of 39c/$10.256B but expects flat guidance for Q1 and not guidance for FY09. Shares are Neutral rated.

First Solar-FSLR: Malaysia drives upside, reiterate Buy@CSTI
Collins Stewart says the key to FSLR’s Q2 upside was the more rapid-than-expected ramp of its first Malaysia facility’s production volume. Collins believes the superb execution shown in bringing this new facility online bodes well for the company’s 3 additional facilities currently being built in Malaysia.

Akamai-AKAM: Believe company faces several obstacles@OPCO
After Akamai reported lower than expected Q2 revenue, Oppenheimer thinks the company is being hurt by increased competition, intensifying problems caused by macroeconomic pressures, and slower Internet traffic growth. The firm believes the company will have difficulty maintaining its present valuation, and they maintained their Market Perform rating.

Urban Outfitters-URBN estimates raised after meeting with management@SBSH
Citigroup raised their estimates and increased their target to $39 from $35 after management indicated the company is seeing no sign of recession and that comp momentum continues. The firm reiterates a Buy rating on the stock.

Barrick Gold-ABX reports Q2 EPS 55c vs. consensus of 56c
reports Q2 revenue $1.97B vs. consensus of $2.11B.

First Solar-FSLR target raised to $330 from $300, maintain Buy@DBAB
Deutsche Bank raised their target following the company’s Q2 upside to reflect solid execution and expectations of ongoing upside.

First Solar-FSLR estimates raised on higher production guidance@UBSW
UBS increased FSLR estimates following the better than expected ramp at Malaysia Plants. The firm raised its price target to $375 from $350 and reiterated its Buy rating.

Digital River-DRIV: Believe stock will rally today@STFG
After the company reported stronger than expected Q2 results and raised its guidance, Stanford believes results from e-commerce outsourcers bode well for Digital River’s outlook. The firm is encouraged that the company’s revenue is becoming less concentrated, and they maintained their Buy rating.

Garmin-GRMN target lowered to $39 from $48 after Q2 shortfall@SOLE
Soleil was surprised by the Q2 miss and believes expectations remain high for Q4 given the difficult consumer environment and tough comps. They maintain a Hold rating.

Consol Energy-CNX reports Q2 EPS 54c vs. consensus of 80c
Reports Q2 revenue $1.21B vs. consensus of $1.16B. The company reiterated its previous production guidance for the second half of 2008.

Parker-Hannifin-PH reports Q4 EPS $1.47 vs. consensus of $1.50
Reports Q4 revenue $3.35B vs. consensus of $3.23B.

Whiting Petroleum-WLL upgraded to Outperform from Sector Perform@RBCM
RBC Capital upgraded WLL following the Q2 report based on impressive Bakken growth.

Solarfun Power-SOLFsigns 30MW sales contract with Martifer Solar
Solarfun Power Holdings announced that Jiangsu Linyang Solarfun, a subsidiary of Solarfun, has entered into a 30MW sales contract with Martifer Solar Sistemas Solares SA, headquartered in Portugal and a leading solar project developer, installer and producer in Europe. Under the terms of the agreement, Solarfun has agreed to supply a total of 30MW of PV modules to Martifer Solar at a fixed price to be delivered according to a binding delivery schedule from January 2009 to December 2009.

Boeing-BA: See high chance of strike following call with union officials@BOFA
After speaking with union officials, Banc of America believes that there is a high chance of a work stoppage in the near-future and notes that shares tend to trade down during strikes. Banc of America maintains a Neutral rating on shares.

United Therapeutics-UTHR reports Q2 EPS 59c vs. consensus of 58c
Reports Q2 revenue $68.6M vs. consensus of $64.34M.

Visa-V upgraded to Buy from Add@LYON
Calyon upgraded Visa following the strong Q2 report. Target to $90 from $82.

SGP upgraded to Buy from Neutral@MLCO
Merrill upgraded SGP citing the company’s better near-term pipeline outlook with two potential blockbusters to be approved over the next year. Target to $23 from $20.

AstraZeneca-AZN reports Q2 EPS $1.25 vs. consensus of $1.08
Reports Q2 revenue $7.96B vs. consensus of $7.58B.
AstraZeneca-AZN sees FY08 EPS $4.60-$4.90 vs. consensus of $4.46

MDC Holdings-MDC reports Q2 EPS ($2.18) vs. consensus of (82c)
Reports Q2 revenue $411.9M vs. consensus of $371.47M. The company said results included an $88.3M pretax asset impairment charge.

Amgen-AMGN: View label changes as benign, reiterate Buy@JEFF
Jefferies believes the FDA label changes for ESA utilization appear benign and unlikely to derail progress with stabilizing this key AMGN franchise. The firm reiterates a Buy rating and $71 target.

Solar Power-SOPW and Solyndra announce long-term supply agreement
Solar Power, Inc. has executed an amendment to its current supply agreement with Solyndra, Inc., a Fremont, California-based manufacturer of Copper indium gallium selenide thin-film photovoltaic panels. The amended agreement, signed July 24, 2008, has a product value of approximately $325 Million for the delivery of solar panels between 2008 - 2012 with yearly increasing volumes and decreasing price per watt of peak output.

Cleveland Cliffs-CLF reports Q2 EPS $2.57 vs. consensus of $1.99
Reports Q2 revenue $1B vs. consensus of $1.02B.

Oceaneering-OII reports Q2 EPS of 93c vs. consensus of 90c
Reports Q2 revenue of $500M vs. consensus of $483.54M.

Apache-APA reports Q2 EPS $4.28 vs. consensus of $4.09
Reports Q2 revenue $3.9B vs. consensus of $3.82B.

Futures indicate lower opening after economic data disappoints investors
Stocks are now pointing to a lower open. The futures were positive after being boosted by better than expected earnings reports from companies such as Disney (DIS), Visa (V), Altria Group (MO) and Tyco (TYC). Also helping investor sentiment was the announcement that Bristol Myers (BMY) offered to pay $60.00 per share for each Imclone (IMCL) share it does not already own. Bristol Myers already owns roughly 17% of the shares. Investors also received economic data a few minutes ago. The personal consumption reading showed an increase of +1.5% versus an expected increase of +1.7% and the initial jobless claims came in at 448k versus an expected 393k. These economic reports brought the futures lower and the markets now seem poised for a lower opening.

Jim Cramer’s “Mad Money”
Cramer stuck his neck out and called a “bottom” in the market. With earnings coming in strong across the board, except in the financial sector, Cramer said the markets may finally be leaving the bears behind. According to Cramer, Merrill Lynch’s (MER) blueprint for jettisoning much of the company’s bad debt is one positive sign that the markets may be turning upward. Cramer also noted strength in such diverse companies as Clorox (CLX), Cummins (CMI), Avon (AVP) and US Steel (X) as further evidence that the market is beginning to turn. With oil prices falling from $148 to $121 a barrel, it will continue to bode well for the markets. He predicted oil could continue to fall as low at $110 a barrel before finally stabilizing. Finally, Cramer called the SEC’s short-selling protection plan for the financial stocks “monumental,” and that it will finally stabilize the financial sector. Cramer proclaimed that August will be Research In Motion (RIMM) month, ahead of the launch of its newest product, the Blackberry Bold. Cramer called RIMM a steal at $119 a share. In addition to the Bold, RIMM is also set to release the Kickstart, dubbed the Motorola (MOT) killer, and the Thunder, which is said to be the first serious iPhone contender. In addition to the new products, Cramer noted the company’s further expansion into overseas markets. Cramer said he’s also not concerned about Apple’s (AAPL) iPhone affecting the company’s bottom line. Finally, Cramer cited his past track record with RIMM as the shares have risen 117% since his recommendation on June 6, 2007 at $53.04. Cramer talked with Jim Whitehurst, pres/CEO of Red Hat (RHT), a company which Cramer said he’s never fully understood or appreciated. Cramer called Red Hat an inexpensive stock when compared to its growth rate and recommended looking into the company as an investment. LIGHTNING ROUND: (Bullish) CLB; NAT; FRO; VZ; CELG; PNRA; AA. (Bearish) IO; F; DHT; RRGB; EK.

Fast Money position recap: First Moves: Guy likes long HSC, Karen likes RIG, Pete likes EMC, Jeff thinks sell XLF.
Najarian Owns (AAPL), (TSO); Najarian Owns (CSCO) Calls, (EMC) Calls, (XLY) Calls, (SU) Calls; Macke Owns (WMT), (MSFT), (COST), (ATVID), (DIS), (EMC); Adami Owns (C), (GS), (INTC), (NUE), (AGU), (MSFT), (BTU); Finerman Owns (GS); Finerman’s Firm And Finerman Own (C) Leaps; Finerman’s Firm Owns (FLS), (MO), (NOK), (PM), (RAI), (SUN), (TSO), (VLO), (RIG), (MCC); Finerman’s Firm Is Short (SPG), (KIM), (XLF), (BBT), (IYR), (IWM), (MDY), (SPY), (IJR).

Horrible Jobless data could weigh the market down today and is more realtime than GDP. Jobless claims were the highest since Hurricane Katrina. Big news for IMCL and the biotech sector will get a push from it. OSIP could also be taken out in the future and is up in sympathy. AZN reported great numbers and UTHR did too. Some cross currents here with a mix of earnings and weak market background. Barney Frank was on CNBC and was talking about putting together a second stimulus package after seeing the jobless claims number. Pick plays with a high probability of success, plan the trade and trade the plan, have focus and patience, run technicals through support and resistance. Great Luck and HappyTrading!