Wang’s Happy Trading

Posted By Optiondragon for myhappytrading.com

From Briefing.com

Periodicals Wrap-Up for Monday, November 17th
WALL STREET JOURNAL: The Wall Street Journal reported that the seven top executives at Goldman Sachs (GS), including CEO Lloyd Blankfein, decided to forgo their 2008 bonuses. The executives will only be eligible for their $600K base salaries…FINANCIAL TIMES: After suffering a $25.3B quarterly loss on credit related writedowns, Freddie Mac (FRE) asked the U.S. government for a $13.8B “lifeline,” the Financial Times reported…TELEGRAPH: The Telegraph revealed that, according to people familiar with the matter, JP Morgan (JPM) has begun plans to cut jobs in a similar fashion to its peers. This move may result in the loss of thousands of jobs worldwide…CNBC: Citigroup (C) CEO Vikram Pandit is expected to announce large new reductions in the bank’s workforce this morning, inside sources said, and will likely say that the company will dismiss more employees than the 23K it said it would cut at the end of Q3. CNBC reported that Pandit is expected to announce that nearly 40K Citi employees could eventually lose their jobs, depending on the extent of the bank’s asset sales, according to the sources…ALL THINGS DIGITAL: Yahoo (YHOO) sources informed All Things Digital that the previously announced lay offs of “at least” 10% are set for December 10…

Asian Markets Wrap-Up for Monday, November 17
Stocks across Asia fell as global economies continued to slow, oil prices slid and recession in Japan and Hong Kong deepened…JAPAN: The Nikkei 225 Stock Average gained 60.19, or 0.7%, to 8,522.58, while the broader Topix index climbed 3.58, or 0.4%, to 850.49. Daiichi Sankyo increased 5.4% to Y1,964. Tsumura & Co. added 3.4% to Y3,050. Takeda Pharmaceutical Co. was up 2.8% to Y4,820. West Japan Railway advanced 6% to Y423,000. Central Japan Railway Co. rose 5.9% to Y820,000. Osaka Gas Co. gained 5.4% to Y374. Oji Paper was up 2.4% to Y435. Tokai Rubber Industries added 3.6% to Y905. GS Yuasa jumped 15% to Y390. Mitsubishi Estate dropped 5.4% to Y1,396. Mitsui Fudosan Co. lost 5.2% to Y1,383. Daiwa System Co. tumbled 20% to Y190…CHINA: The CSI 300 Index advanced 14.21, or 0.7%, to 1,957.86. China Southern Airlines (ZNH) jumped 9.9% to 3.67 yuan. China Eastern Airlines Corp. (CEA) climbed the 10% daily limit to 3.85 yuan. Sany Heavy Industry was up 3.6% to 17.60 yuan. China Railway Erju Co. surged 9.4% to 9.93 yuan. PetroChina Co. (PTR) fell 0.4% to 11.47 yuan. Aluminum Corp. of China (ACH) rose 1.7% to 8.05 yuan.Yunnan Aluminium Co. increased 4.7% to 5.08 yuan. China Nonferrous Metal Industry’s Foreign Engineering and Construction Co. climbed 5.5% to 7.05 yuan…HONG KONG: The Hang Seng Index retreated 13.13, or 0.1%, to 13,529.53. Wing Hang Bank sank 4.5% to HK$37.10. Greentown China plunged 14% to HK$2.30. Agile Property Holdings lost 7.6% to HK$2.68. Bank of East Asia (BKEAY) was up 3.2% to HK$15.28. Li & Fung increased 22 cents, or 1.5%, to HK$14.46…AUSTRALIA: The S&P/ASX 200 Index declined 95.10, or 2.54%, to 3,653.00. BHP Billiton (BHP) dropped 4.9% to A$25.10. Babcock fell 15% to 41 Australian cents. GPT dived 8.9% to A$1.02. James Hardie Industries (JHX) lost 7.4% to A$4.40. Coca-Cola Amatil (CCLAY) leapt 13% to A$9.31.

Weekly additions to the Investor’s Business Daily-100
The following are additions to the Investors Business Daily-100 list for the week of November 14 : Ralcorp (RAH), Shaw Communications (SJR), Meridian Bioscience (VIVO), Capitol Federated Finl. (CFFN), Edwards Lifesciences (EW), American Science & Engineering (ASEI), Green Mtn Coffee Roasters (GMCR), Sabine Royalty Tr (SBR), Medco Health Solutions (MHS), SAIC Inc (SAI), Perrigo (PRGO), Cass Information System (CASS), Abbott Laboratories (ABT), General Mills (GIS), Family Dollat Stores (FDO), Open Text (OTEX), Fresenius Medical (FMS)

Weekly subtractions from the Investor’s Business Daily-100
The following are subtractions from the Investors Business Daily-100 list for the week of November 14: Southwestern Energy (SWN), Compass Minerals (CMP), Ebix Inc (EBIX), Synaptics (SYNA), Ensign Group (ENSG), Websense (WBSN), Cornell Companies (CRN), Panera Bread(PNRA), Somanetics (SMTS), First Cash Financial (FCFS), Tractor Supply (TSCO), Forrester Research (FORR), Genesee & Wyoming (GWR), Balchem Corp (BCPC), Grainger WW (GWW), Franklin Electric (FELE), BJs Wholesale (BJ)

Technology Trader: Silicon Valley is not expecting a happy new year- Barron’s
Columnist Eric Savitz says, with the last few major earnings announcements now behind us, it seems a reasonable time to do some damage assessment. From the end of September through Thursday’s close, the Nasdaq Composite fell 495 points, or about 24%, and that’s after Thursday’s hefty rally. Savitz says, “What is becoming increasingly clear, however, is that the tectonic shifts that have ripped through the financial sector have led to mammoth collateral damage in Silicon Valley.” It has been apparent for weeks now that companies are slashing spending, and consumers are tapped out. Savitz noted that the real issue heading into Q3 results was not the results for the September quarter; it was what the companies would say about the December quarter and beyond. Most of what they had to say wasn’t good. Not good at all. A vivid example of this was comments and guidance from Best Buy’s (BBY) COO Brian Dunn who said, “rapid, seismic changes in consumer behavior have created the most difficult climate we’ve ever seen.” Add to that Intel (INTC), which made a breathtaking reduction in its outlook. Then there was chip-maker National Semiconductor’s (NSM) reduced outlook, and semiconductor manufacturer Applied Materials (AMAT). Estimate reductions by analysts in theses tech leaders trickled down to the likes of Dell (DELL), Hewlett-Packard (HPQ) and Apple (AAPL). The Intel forecast also raised serious questions about recent forecasts from Microsoft (MSFT).

Hedge funds tried to sell their risky assets before Saturday’s deadline-NY Post
Hedge funds rushed to unload their higher risk stocks and bonds in the weeks before Saturday’s deadline for investors to remove their money from the hedge funds. The withdrawals could force up to 25% of all hedge funds to close their doors, industry sources say.

Mining companies see demand plunge-WSJ
In a rapid reversal, big mining companies worldwide are seeing demand and prices decline as recession halts economic growth. As production is cut, thousands of mining workers are losing their jobs, reports the Wall Street Journal. Unclear if the industry will be able to soon stabilize itself.

U.S. equity futures continue to point to a lower open
Stock futures continue to point to a lower open. Citigroup (C) has made a series of announcements related to the streamlining of their operations and to implement cost reductions. Layoffs at the firm could total as many as 50,000 employees. Citigroup, which employs 352,000, said it felt it was necessary to put these strategies into effect in addition to cutting risky assets to help strengthen its capital position. The Citigroup news, in addition to a lack of action from the G-20 summit over the weekend, has the futures well below fair value.

Commercial property market troubles hit private firms-WSJ
When DBSI, a private real estate firm, last week filed for bankruptcy, it affected 8,500 investors and 240 commercial properties in 30 states valued at $2.4B. Clearly, reports the Wall Street Journal, commercial real estate is in its worst period in almost two decades. And now that is taking its toll on smaller owners out of sight of the public markets. “Whatever a depression is, in the real-estate industry, we are in one,” says Richard Lipton, a partner at law firm Baker & McKenzie.

Analysts Upgrade Summary for Monday, November 17th
MOST NOTEWORTHY: McDonald’s (MCD), Nokia (NOK) and UCBH Holdings (UCBH) were today’s noteworthy upgrades: UBS upgraded McDonald’s to Buy from Neutral based on expectations the it can deliver on 2009 EPS expectations and potential for accelerating share gains. Bernstein upgraded Nokia to Outperform from Underperform on valuation following the company’s profit warning. Merrill upgraded shares to Buy from Neutral to reflect valuation and Nokia’s new product portfolio. Shares were also upgraded to Hold from Sell at WestLB. B. Riley raised UCBH Holdings to Buy from Neutral to reflect the improved valuation and the company’s stronger capital position provided by the US Treasury investment…OTHER UPGRADES: Parexel (PRXL) was upgraded to Buy from Hold at Jefferies. CTS Corp (CTS) was lifted to Neutral from Underweight at JP Morgan. Hospitality Properties (HPT) was upgraded to Equal Weight from Underweight at Morgan Stanley.

Analysts Downgrade Summary for Monday, November 17th
MOST NOTEWORTHY: Disney (DIS), Dell (DELL) and MDS Inc (MDZ) were today’s noteworthy downgrades: Soleil downgraded Disney to Hold from Buy to reflect the weakening macro-economic outlook and their belief consensus estimates may be too high. The firm lowered their target to $23 from $40. Merrill downgraded Dell to Neutral from Buy on expectations PC sales will decline next year amid the slowing economy. The firm lowered Dell’s target price to $13 from $22. Jefferies cut MDS Inc to Hold from Buy to reflect slowing demand and a lack of catalysts to unlock the company’s assets. The firm lowered their target to $10.50 from $15…OTHER DOWNGRADES: Alcoa (AA) was lowered to Neutral from Buy at UBS. Tesco PLC (TSCDY) was downgraded at JP Morgan to Underweight from Neutral. Merrill downgraded SAP AG (SAP) to Neutral from Buy. Goldman added Altera (ALTR) to the Conviction Sell List.

Analysts Initiation Summary for Monday, November 17th
MOST NOTEWORTHY: AutoZone (AZO), Advance Auto Parts (AAP) and Sunway Global (SUWG) were today’s noteworthy initiations: Citigroup thinks AutoZone will benefit from the slowdown in car sales and thinks the recent pullback is overdone. Shares were initiated with a Buy rating and $146 target. Citigroup also believes Advance Auto Parts will benefit from the slowdown in car sales and started shares with a Buy rating and $35 target. After Sunway reported higher than expected revenue, Roth Capital thinks the company is poised for substantial growth, but the firm thinks its remaining warrants may keep the shares trading at a modest valuation for a significant amount of time. The firm started shares with a Hold rating and $3.60 target…OTHER INITIATIONS: Mechel Steel (MTL) was initiated with a Neutral rating at Merrill Lynch. China Life Insurance (LFC) was assumed with a Buy rating at UBS. Gap (GPS) was started at Cowen with a Neutral rating.

Jim Cramer’s “Mad Money”
Cramer’s Friday “Mad Money” show had him pondering what the economy would look like if the government allows General Motors (GM) to fail. The economic consequences of a GM failure would be staggering, and the mass surge in unemployment would be felt immediately by the 2/3 of the U.S. economy that depends on consumer spending. Cramer predicted the impact would translate to another 2,000-point drop in the DJIA. General Motors, he said, would have double the impact of the Lehman Brothers collapse. Until the Federal government acts, Cramer sees only two options: sit on the sidelines and wait, or sell ahead of the news. Cramer said, if GM is left to fail, he’d be a buyer only after his predicted 2,000 point freefall. Cramer talked with Sandy Cutler, chairman and CEO of power management company Eaton (ETN). Cutler said, Eaton began preparing for the downturn last year. He’s pleased with Eaton’s current mix of businesses and expects them to continue to deliver growth, even in the downturn. Cutler said the company’s dividend remains solid. Cramer said Eaton is exactly the kind of stock he wants to buy on the big down days in the market. Cramer surprised viewers with a change of heart and recommended chipmaker Advanced Micro Devices (AMD) as one tech stock that simply can’t go much lower. Cramer said he still doesn’t expect a rally in technology stocks any time soon, but after falling 67% so far this year, AMD may be one speculative stock investors should consider. With the company now trading near it’s cash value of $2.20 a share, Cramer said the news is beginning to look up for AMD, and he’d be a buyer. MAD MAIL: L-1 Identity Systems (ID) fits his model for what to buy in this market, he’s holding judgment on the company until he can talk with its CEO. Cramer told another viewer that if forced to choose, he likes Kinder Morgan (KMP) more than his favorite utility Duke Energy (DUK). LIGHTNING ROUND: (Bullish) KMP; NAT; LPS; DUK. (Bearish) NRGY; STI; TK; MGM; FPL.

Fast Money position recap- Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Macke Is Short (TM); Macke Owns (MSFT), (UUP), (MGM), (WMT), (MCD); Finerman’s Firm Owns (MSFT); Finerman’s Firm Is Short (IYR), (IJR), (MDY), (SPY), (USO), (BBT), (GNK), (COF); Seymour Owns (AAPL), (BAC), (EEM), (F), (FXI)