Wang’s Happy Trading

Posted By Optiondragon for myhappytrading.com a site made y traders and investors for traders and investors.

From Briefing.com

Periodicals Wrap-Up for Wednesday, September 3rd
WALL STREET JOURNAL: The Wall Street Journal reported that four Chinese banks including China Construction Bank and Industrial & Commercial Bank of China have cut their holdings in debt related to U.S. mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE); at the end of June, the banks held a total $23.28B of debt issued or guaranteed by the two, likely down to ease concerns about their earnings outlook…The Wall Street Journal also reported that the Interior Department is preparing to lease tracts of the outer continental shelf off the coast of the U.S. to companies that are looking to build huge wind turbines…VANITY FAIR: News Corp (NWS) Chairman and CEO Rupert Murdoch would very much like to buy The New York Times, owned by The New York Times Co. (NYT), Vanity Fair author Michael Wolff reported. Murdoch said he finds the Times “irresistible” as a takeover target, but there are regulatory barriers to the deal and the Sulzberger family, which owns part of The Times, would never agree to a Murdoch acquisition of the newspaper, members of Murdoch’s staff told him…CHOSUN ILBO: Korean Banks including Woori (WF) and Shinhan Financial Group (SHG) may look to join a consortium the Korea Development Bank is trying to form to acquire 25% of Lehman Brothers (LEH) shares, Chosun Ilbo reported…

Asian Markets Wrap-Up for Wednesday, September 3
Asian markets were mixed as oil prices were lower and energy stocks fell…JAPAN: The Nikkei added 0.6% to 12,689.59, while the broader Topix index was up 0.7% to 1,220.55. Honda (HMC) was down 1.21 to 31.35…AUSTRALIA: The S&P/ASX 200 index lost 1.1% to 5,060. Rio Tinto (RTP) slid 39.73 to 339.99. BHP Billiton (BHP) was off 5.76 to 64.75…AROUND ASIA: In Hong Kong, the Hang Seng index dropped 2.2% to 20,585.06. China Huiyuan Juice Group sky rocked 164% after Coca-Cola (KO) said it would buy the company for about $2.4B. Cnooc (CEO) slid 12.52 to 143.24. HSBC Holdings (HBC) fell 0.23 to 78.48. PetroChina (PTR) was down 1.65 to 127.55…In South Korea, the Kospi added 1.4% to 1,426.89.

Google may be challenged by Microsoft over Chrome-Independent.ie
Microsoft (MSFT) will examine whether Google (GOOG) acted anti-competitively with its new Chrome Internet browser and promised that new features will be available for Internet Explorer.

Despite baby boom Natus Medical diversifies-IBD
With a record 4.3M babies born in the U.S. last year baby stocks are getting a lot of play. For Natus Medical (BABY), which primarily screens newborns for hearing impairments, and holds over 90% of that market, that means expanding into new markets. The birth rates are expected to decline and the company is prepared, according to Investor’s Business Daily’s “The New America.” Where? Overseas. Of 10M babies born each year in developed countries, only 3.5M are tested for hearing at birth, says CEO Jim Hawkins: “So there are 6.5M that are not being tested, and that’s our growth opportunity.” Natus has about 80% to 85% of the worldwide screening market outside the U.S. Its strength is in Japan, Australia and Belgium. Plus, Hawkins has made seven acquisitions since he took over in 2004. Some analysts think that Natus will be sold to a larger company after its stated $250M revenue goal is reached. The company’s’ profit over the last five quarters has grown faster than revenue. In the second quarter, profit was up 50% from a year earlier to 15 cents a share, and revenue gained 41% to $39.9M. Analysts expect earnings to climb 49% this year to 70 cents a share, and then see profit increasing by 23% in 2009.

JP Morgan expects Japanese real estate to rebound-Reuters
Gregory Guyett, CEO of JP Morgan (JPM) Securities Japan, said the Japanese property market is attractive to both domestic and foreign investors and that the company plans to use employees from the Bear Stearns acquisition to develop its real estate securitization business.

JP Morgan CEO may go bargain hunting-Fortune
Fortune reports that Jamie Dimon, the CEO of JP Morgan (JPM) is in a position to go bargain hunting, and may look to expand the lucrative middle markets franchise and fill in gaps in the retail branch network. Fortune believes targets may include Washington Mutual (WM), as it has a smaller market cap and beaten-down stock price, Wachovia (WB), which has a strong retail footprint in Florida and California, SunTrust (STI), with a strong presence in the Southeast and Florida, or American Express (AXP), attractive because of its high-end credit card franchise.

U.S. equity futures point to a lower open
U.S. equity futures are pointing to a lower open today. Crude oil prices are also lower and the dollar continues to strengthen against other world currencies. Investors will be looking to a couple of economic reports for clues as to the health of the economy. The weekly mortgage applications report has already been released and it showed an increase of 7.5% in mortgage applications from the prior week. Also due out today is a report from the Commerce Department on factory orders for the month of July. There will also be the release of domestic vehicle sales throughout the day as well as the Fed’s Beige Book report.

Apple to make announcement on September 9th-LA Times
The LA Times reports that Apple (AAPL) is set to make an announcement on September 9. Judging from the invitation, a man jumping with headphones, the announcement is likely to be music-related, possibly a refreshed line of iPods or a new iTunes with a rating system and social network. Sources say the announcement will not be about a digital music subscription service because it “isn’t going anywhere at the moment”.

Chinese banks lower U.S. mortgage debt-WSJ
Nervous about the financial status of Fannie Mae (FNM) and Freddie Mac (FRE), China’s four largest banks are cutting back on their holdings of the two firms, reports the Wall Street Journal.The banks are Bank of China, China Construction Bank Corp., Bank of Communications Co., and Industrial & Commercial Bank of China. Now they’re deciding where to invest these foreign currency holdings.The four sold or allowed to mature $4.6B of the $17.3B it held as of June 30, and that was down from over $20B at the end of 2007.

Medivation-MDVN & Pfizer-PFE enter int global agreement for Dimbeon
Pfizer and Medivation announced that they have entered into an agreement to develop and commercialize Dimebon, Medivation’s investigational drug for treatment of Alzheimer’s disease and Huntington’s disease. Dimebon currently is being evaluated in an international, confirmatory Phase III trial in patients with mild-to-moderate Alzheimer’s disease. Under the terms of the agreement, Medivation will receive an up-front cash payment of $225 million. Medivation also is eligible to receive payments of up to $500 million upon the attainment of development and regulatory milestones plus additional undisclosed commercial milestone payments. Medivation and Pfizer will collaborate on the Phase III program in Alzheimer’s disease, Huntington’s disease development and regulatory filings in the United States. The companies will share all U.S. development and commercialization expenses along with U.S. profits/losses on a 60 percent/40 percent basis, with Pfizer assuming the larger share of both expenses and profit/losses. In addition, Medivation will co-promote Dimebon to specialty physicians in the U.S.

Medivation-MDVN will host a conference call at 8:30am on 9/3
Conference Call will discuss partnering plans for Dimebon

Goldman Sachs-GS Q3 and 2008 estimates lowered@FBCO
Credit Suisse lowered GS estimates again citing cost of asset price declines/widening spreads across all products, lower trading volumes, and reduced M&A. The firm lowered its Q3 EPS estimate to $1.50 from $2.15 and 2008 EPS estimate to $13.50 from $14.50. Shares are Outperform rated.

American Int’l-AIG has expanded footprint in China-CC
AIG received more licenses in China and will be operational in Beijing by 1st or 2nd quarter of FY09. This information is from KBW Insurance conference

AMBAC Fin’l-ABK receives regulatory approval for Connie Lee Capital contribution
Ambac AssuranceCorporation has received regulatory approval from the Commissioner of Insurance of the State of Wisconsin to capitalize and reactivate Connie Lee Insurance Company, its financial guarantee subsidiary. Connie Lee will conduct business under a new name and will focus on the U.S. municipal and global public purpose financing markets. Ambac Assurance will inject $850 million into Connie Lee which will operate as a separate corporate and legal entity within Ambac Financial Group, Inc.. Ambac is seeking to obtain stand-alone triple-A ratings for Connie Lee, and has worked extensively with Moody’s and Standard and Poor’s towards that goal. Connie Lee expects to write new insurance policies no later than the fourth quarter of 2008.

Canadian Solar-CSIQ, GCL Silicon Technology sign long-term supply agreements
On August 21, 2008, the two signed new long-term supply agreements in which GCL will supply 510 MT of high-purity poly-silicon feedstock in 2008 and 2009 and approximately 1.8 GW of wafers to CSI from 2010 to 2015.

Potash-POT: Reflected potash price in shares is well below market@RBCM
RBC believes the potash price implied in the current share price is well below spot market prices. Shares remain Outperform rated.

Apple-AAPL: Checks suggest 4M iPhone sales is approaching@RBCM
RBC believes AAPL may announce it reached 4M iPhone sales at its September 9 event, which they point out would beat Street expectations. Shares remain Outperform rated. :

Joy Global-JOYG reports Q3 EPS ex-items 81c vs. consensus of 88c
Reports Q3 revenue $904M vs. consensus of $884M. The company reports EPS of $1.03 which included a 22c benefit from the realization of foreign tax credits. :
Joy Global-JOYG raises FY08 EPS view to $3.37-$3.53 from $3.15-$3.30
Consensus for FY08 EPS is $3.29. The company sees FY08 revenue $3.3B-$3.4B vs. consensus of $3.36B. :

US Steel-X upgraded to Sector Outperformer from Sector Performer@CIBC

Vertex Pharmaceuticals-VRTX downgraded to Perform from Outperform@OPCO
Oppenheimer downgraded shares as they see few clinical data catalysts to drive shares higher.

Google-GOOG Chrome should increase search volume, maintain Buy@JEFF
Jefferies believes Chrome’s seemingly faster, more stable and more secure capabilities should help increase Google’s search volume. The firm maintains a Buy rating and $600 target on shares.

Cisco-CSCO CEO says customers expect turnaround in first half of next year-CNBC

(Important note on how to use this upgrade/downgrade list with analyst comments and news….you must parse out the factual data (Factual data is the most important) from the opinionated data and always take all analyst comments with a grain of salt. Do not follow blindly with their recommendations. Remember that technicals are the most powerful force in short term direction for stock prices due to the law of supply and demand.)

Jim Cramer’s “Mad Money”
Cramer says the rally Tuesday morning was the “real deal”. Cramer said he was buying into the afternoon selloff for his charitable trust Action Alerts PLUS and said now is the time to start building positions. Cramer told viewers not to pay any attention to the DJIA, but instead concentrate on the KBW Bank Index and Philadelphia Housing Sector Index, which he says are the real indicators of where the market is headed. “The markets need home prices to stabilize,” he said. Cramer reiterated his views that the markets will not re-test the lows of July 15, noting his prediction of a bottom in the housing market is now just 302 days away. He said a market rally will likely precede that bottom. Reasons why he feels a market rally is on the horizon: (1) will be an uptick in consumer spending when gasoline hits just $3 a gallon; (2) Fed won’t raise interest rates as long as commodity prices continue to fall; (3) any companies who raised prices due to higher commodity costs will now reap the rewards as those commodities begin to recede in price. Cramer told viewers not to wait until next year to start buying, instead start buying now ahead of the positive news that’s on its way. Cramer talked with Clean Energy (CLNE) pres/CEO Andrew Littlefair about his company’s outlook as interest in natural gas as an alternative fuel heats up ahead of the November elections. Littlefair said that passage of Proposition 10, a California ballot initiative, will devote $3B to alternative fuels, signaling a boon for not only his company, but also for the entire alternative fuel industry. Cramer told viewers it makes sense to invest in Clean Energy if they believe as he does that natural gas is the wave of the future. Cramer said he’s reluctantly giving the boot to drug maker Schering-Plough (SGP). While Cramer admitted that the company’s anti-cholesterol drug Vytorin does have problems, he said it’s the onslaught of press coverage that’s made the stock ‘radioactive’ and one that needs to be avoided. MAD MAIL: Cramer told a viewer that he’s tempted to start a position in Corning (GLW) and feels the stock has been over done to the downside. LIGHTNING ROUND: (Bullish) FWLT; UPS; JOE; FCX. (Bearish) CHRW; C; SNDK.

Fast Money Position Recap- First Moves: Macke Owns (WMT), (MSFT), (UUP); Macke Is Short (TM); Najarian Owns (ETFC); Najarian Owns (LEH) Put Spread, (LMT) Put Spread; Najarian Owns (SCHW) Call Spread, (LEH) Call Spread; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (AAPL) And An (AAPL) Collar; Najarian Owns (XLF) And An (XLF) Collar; Adami Owns (C), (GS), (INTC), (AGU), (MSFT), (NUE), (BTU); Finerman Owns (GS); Finerman’s Firm And Finerman Own (KALU); Finerman’s Firm Owns (MSFT), (SUN), (VLO), (TSO); Finerman’s Firm Is Short (BA); Finerman’s Firm Owns (AAPL) Calls, (JCG) Calls; Finerman’s Firm And Finerman Own (C) Leaps; Finerman’s Firm Is Short (IYR), (IJR), (SPY), (IWM), (MDY).

CIBC Gartman Index Is Short Crude Oil And Is Long Natural Gas; CIBC Gartman Index Is Short Sugar; CIBC Gartman Index Is Long Grains.
Gartman Owns (SJT), (UNH), (QCOM), (TRLG), (CSCO), (AAPL), (SU), (PBR), (MCD),  (SDS), Gartman Owns (ANDE) And Is Short (ADM); Gartman Is Short (TAP), (GS), (GRMN), (UYG), (GOOG), (POT)

The move down yesterday was very bearish in nature and it will be seen if the markets can hold up under the weigth of selling. Keeping an eye on short MOO, Ag plays, long MDVN possibly and getting out of my ABK long. Keeping nimble. Pick plays with a high probability of success, have focus and patience, run technicals through supply and demand. Great Luck and Happytrading!
Pick plays with a high