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Coldplay- Life In Technicolor

From Briefing.com

Periodicals Wrap-Up for Tuesday, September 30th
WALL STREET JOURNAL: In a reorganization of its research efforts, Pfizer (PFE) said that it will drop efforts to develop medicines for heart disease, a field that helped to keep the company near the top of the pharmaceutical industry for over 10 years, the Wall Street Journal reported. Pfizer is also expected to leave therapies for obesity and bone health and will instead focus on cancer and more profitable drug areas…The Wall Street Journal also reported that as early as today, Sovereign Bank (SOV), the troubled regional bank, is expected to name Paul Perrault as its new chief executive. He will begin in 2009…REUTERS: Boeing (BA) said that when a strike ends, the company will reassess its delivery schedule for the 787 Dreamline aircraft to the Japanese market. Reuters reported that nearly 27,000 machinists walked off the job in September, adding to development delays of the 787…CNET: Advanced Micro (AMD) said its “Shanghai” next-generation chip is ready to be rolled out — without the mistakes and delays of last generation’s “Barcelona” chip. Analysts believe the success of Shanghai is “absolutely critical” for AMD, which may be on the verge of announcing a major restructuring, CNet reported…

Asian Markets Wrap-Up for Tuesday, September 30
Asian stocks declined following the failure of the U.S. Congress to pass a $700B bailout plan, and over rising concerns of a widespread recession. China’s markets are closed this week for holidays…JAPAN: The Nikkei 225 Stock Average retreated 483.75, or 4.1%, to 11,259.86, while the broader Topix index dropped 40.46, or 3.6%, to 1,087.41. Sumitomo Mitsui fell 7.1% to Y630,000. Mitsubishi UFJ Financial Group (MTU) lost 4.7% to Y893. Nomura (NMR) dropped 7.3% to Y1,326, JFE slid 7.3% to Y3,180. Nippon Steel Corp. (NISTY) was down 6.3% to Y387. Yamazaki Baking Co. gained 5.8% to Y1,269. Nippon Suisan Kaisha added 1.9% to Y385…AUSTRALIA: The S&P/ASX 200 Index declined 4.3% to 4,600.50. BHP Billiton (BHP) slumped A$3.24, or 9.5%, to A$31. Babcock & Brown sank 41 cents, or 17%, to A$1.94. National Australia Bank (NABZY) fell A$1.43, or 5.6%, to A$24.26. Fortescue Metals Group tumbled 94 cents, or 17%, to A$4.66. Equinox Minerals was down 40 cents, or 11%, to A$3.10. Harvey Norman Holdings slid 41 cents, or 12%, to A$3.09. Woodside Petroleum (WOPEY) dropped A$3.55, or 6.5%, to A$51. Santos (STOSY) lost 60 cents, or 3.1%, to A$19.10…AROUND ASIA: In Vietnam, the VN Index retreated 4.7%. South Korea said it will ban short selling on all stocks temporarily. Taiwan will tighten control of short selling through the rest of the year, and Hong Kong will take tougher action against it.

Short selling is not the culprit-WSJ
What short selling problem? The Wall Street Journal’s “Heard on the Street” says that the ban didn’t stop a number of financial firms from failing. The evidence never pointed to a significant increase in short selling, and now the NYSE may extend the ban past the October 2 deadline.

U.S. equity futures continue to point to a higher open
U.S. equity futures continue to point to a higher open. Yesterday action has led to volatility in markets worldwide and the U.S. is being urged by central banks to get a plan in place. Economists say that the failure to pass a plan could cause a painful recession in the U.S. and that it could spread around the globe. Right now the plan right now is to seek a new bailout deal but that will have to wait until Thursday.

Biotech: IMS data indicates Q3 revenue upside unlikely@BERN
Bernstein’s IMS sales analysis suggests it could be challenging for Biotech companies to deliver a revenue beat in Q3. The firm thinks Amgen’s (AMGN) revenues look below consensus based on weakness in Aranesp and Neulasta and Genentech (DNA) could post a miss due to slight weakness across all products.

Suntech Power-STP selected to provide 1.6 MW of solar panels to Sun Devil Solar
Suntech Power Holdings has been selected to supply 1.6 megawatt of solar panels to Sun Devil Solar LLC, a wholly owned subsidiary of Integrys Energy Services, for its project with Arizona State University. The solar installations are to be completed by the end of 2008. The total project size of 1.6 MW makes it one of the largest university installations in the United States.

Apple-AAPL upgraded to Buy from Hold@GABE
Gabelli upgraded Apple on valuation following yesterday’s weakness. The firm finds the stock attractive given their expectation of 15-20% growth over the next three years.

Congress’s failure to pass the bailout plan may result in a better solution-WSJ
From yesterday’s defeat of the $700B bailout plan may come a better plan to deal with the financial crisis, according to the Wall Street Journal’s “Heard on the Street”. Dealing more directly with what caused the collapsing financial system and better helping the banking system may allow the stock market to find a bottom. The Treasury will need more help from the banks involved, and focus on a lack of liquidity and capital, while congressional leaders need specific concessions.

Wells Fargo-WFC upgraded to Neutral from Underperform@BARD
Baird cites WFC’s relatively stronger balance sheet for the upgrade.

Research in Motion-RIMM upgraded to Outperform from Market Perform@JMPS
JMP Securities upgraded RIMM citing valuation. Target $80.

Apple-AAPL shares offer compelling value at current levels@SBSH
Citigroup lowered their Q4 estimate 8c below consensus and dropped their target price to $170 from $287 to reflect growing pressure on consumer spending, but feels slowing growth is fully priced into the stock. The firm sees compelling value after yesterday’s weakness and reiterates a Buy rating.

Morgan Stanley-MS target lowered to $50 from $60@BERN
Bernstein lowered their estimates and target to reflect dilution from the capital raise but thinks Mitsubishi UFJ’s stake is a long-term positive.

Thoughts Ahead of Redemption Window Closing: Opinion
We may be poised for something interesting to happen in the form of a reflexive upside trade in the next day or two based on a few fundamental factors. First, today is the last day of the redemption window which hedge funds have been raising cash for over the prior month. There are risks in assuming the closing of the window is automatically bullish. It is entirely possible that we could see renewed selling today (and hereafter) after the initial pop up this morning. There is a possibility that yesterday’s events may well have pushed investors who were sitting on the fence into the redemption camp. In that event we could still see some very meaty downside action today ahead of the close. So why bother being open to a bullish trade? With the window closed at end of day, tomorrow we are looking at the front of the new quarter that generally sees fresh fund flows on the mutual fund side. Many who have been sidelined for the holidays and who may have sold aggressively yesterday to square also return tomorrow. We have the prospect of some form of push in the Senate toward a new bailout bill which could come down in some form by Thursday or perhaps earlier. And, last, on Thursday we may see the end of the short-ban. That would be a very bullish outcome although it is a distant hope given the political backdrop. Removing the ban would allow funds that have been sidelined by mandate (market neutral, long/short equity, convertible arbitrage) to come back in to provide much needed liquidity. Whether these events will all come together in bullish fashion is an unknown, but given the drubbing of late they may warrant some attention.

Jim Cramer’s “Mad Money”
Cramer called Monday’s 777 point crash “the real deal,” the one he’s been predicting since July of last year and the one he’s been preparing for when he advised viewers to trim their portfolios, raise cash, buy gold and stick to defensive and dividend paying stocks. He said Monday’s decline was only the beginning of the decline if a bailout plan is not passed. Cramer told investors to keep their money in FDIC insured accounts and sit on their hands as the crisis unfolds and until stocks reach a point where it’s safe to invest again. Next, Cramer added Bob Steel, pres/CEO of Wachovia (WB) to his “Wall of Shame” list of the worst CEOs. Reports now indicate that Steel underestimated the company’s exposure to bad loans on the books by more than $32B, when he was last on “Mad Money”. Cramer said there was no way Steel could have known things were as bad as they were. Without a bailout plan, Cramer said Wachovia had no chance to sell its bad assets. Thus when JP Morgan Chase (JPM) valued the assets of Washington Mutual (WM) lower than that of Wachovia’s loans, “Wachovia was toast.” Next, while no one may like to profit from people losing their homes, Cramer said investing in Lender Processing (LPS), who provides loan transaction and default management services, will allow them to do just that. Without a federal bailout plan, Cramer said foreclosures are “here to stay” and should be a continuing boon for Lender Processing. The company doesn’t predict a slowdown in the foreclosure market until 2011. Trading at just 11x its forward earnings, Cramer called Lender Processing a buy. However he cautioned viewers to wait for the stock to move lower before pulling the trigger. Cramer welcomed Robert Katz, CEO of Vale Resorts (MTN) to the show. Katz said the crisis has not affected Vale. He said the company has a terrific balance sheet, has $160M in cash, and is highly profitable during what is proving to be a record year. Cramer called Vale an interesting play, one worth considering on a pullback. LIGHTNING ROUND: (Bullish) AVAV. (Bearish) DNA; V; MA; SNE; JEC; BX; FIG; HOG.

Fast Money position recap- Jeff Macke said there is two positions he likes that is cash and fetal.
Macke Owns (MSFT), (WMT); Adami Owns (AGU), (BTU), (GS), (INTC), (MSFT), (NUE); Najarian Owns (AAPL) and (AAPL) Puts; Najarian Owns (BIIB) Calls; Najarian Owns (GS) Call Spread; Najarian Owns (MS) and (MS) Puts; Najarian Owns (NCC) Call Spread; Najarian Owns (WB) Put Spread; Najarian Owns (XLF) Straddle; Finerman Owns (GS); Finerman’s Firm Owns (MSFT), (DVN); Finerman’s Firm Owns (IMCL) Call Spreads; Finerman’s Firm is short (IYR), (IJR), (SPY), (MDY), (IWM), (COF), (SPG, (BBT); Finerman’s Firm Owns (BIIB) Calls.

Wow what a drop. Our traders in the room especially one guru named Bagger Vance really locked in profits after the drop and went more neutral. Our traders have been able to navigate successfully through this tough time. Being a part of this group in the trading room has been very helpful, insightful, and profitable. I am doing the same in being defensive and keeping nimble and in mostly cash.
Here are some of Bagger’s trades recently:
September 29, 2008
11:54 | Bagger Vance ERTS ($37.00) Sold to Close EZQVG Oct 35 put, at $1.35 +59%
11:46 | Bagger Vance JNPR ($21.30) Sold to Close JUXVE Oct 25 put, at $4.20 +163%
11:43 | Bagger Vance BK ($28.00) Sold to Close BKVG Oct 35 put, at $7.20 +129%
11:42 | Bagger Vance AMZN ($66.00) Sold to Close ZQNVD Oct 73 put, at $8.80 +138%
11:38 | Bagger Vance HD ($23.00) Sold to Close HDVY Oct 28 put, at $3.00 +36%
11:31 | Bagger Vance IBM ($113.40) Sold to Close IBMVC Oct 115 put, at $6.20 +88%
11:28 | Bagger Vance IBM ($113.00) Sold to Close IBMVC Oct 115 put, at $6.20 +68%

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